Document:

Exhibit
      4.2

    

     

    AEGIS
      ASSET BACKED SECURITIES TRUST 20[  ]-[  ],

     

    Issuer

     

    AEGIS
      ASSET BACKED SECURITIES CORPORATION,

     

    Depositor
      

     

    [AEGIS
      MORTGAGE CORPORATION] [AEGIS REIT CORPORATION],

     

    Seller

     

    [          ],

    Master
      Servicer, Administrator and Custodian

     

     

    [          ],

    Servicer

     

    [[          ],

    Credit
      Risk Manager]

     

    and
      

     

    [          ],

    Indenture
      Trustee

     

    
      
        

      

    FORM
      OF

     

    TRANSFER
      AND SERVICING AGREEMENT

    Dated
      as
      of [          ],
      20[  ]

     

    
      
        

      

    

     

    AEGIS
      ASSET BACKED SECURITIES TRUST 20[  ]-[  ] 

    MORTGAGE
      BACKED NOTES

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

     

     

    
      	 	Page 
	
               

              ARTICLE
                I DEFINITIONS

            	
              2

            
	
              Section
                1.1

            	
              Definitions.

            	
              2

            
	
              Section
                1.2

            	
              Calculations
                Respecting Mortgage Loans.

            	
              39

            
	
              Section
                1.3

            	
              Calculations
                Respecting Accrued Interest.

            	
              39

            
	
               

              ARTICLE
                II CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND
                WARRANTIES

            	
              40

            
	
              Section
                2.1

            	
              Creation
                and Declaration of Trust Estate; Conveyance of Mortgage
                Loans.

            	
              40

            
	
              Section
                2.2

            	
              Acceptance
                by Indenture Trustee of the Trust Estate; Review of
                Documentation.

            	
              44

            
	
              Section
                2.3

            	
              Representations,
                Warranties and Covenants of the Servicer, the Master Servicer, the
                Seller
                and the Depositor.

            	
              46

            
	
               

              ARTICLE
                III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

            	
              54

            
	
              Section
                3.1

            	
              Servicer
                to Service Mortgage Loans.

            	
              54

            
	
              Section
                3.2

            	
              Subservicing;
                Enforcement of the Obligations of the Servicer;
                Subcontractors.

            	
              57

            
	
              Section
                3.3

            	
              Rights
                of the Depositor and the Indenture Trustee in Respect of the
                Servicer.

            	
              58

            
	
              Section
                3.4

            	
              Successor
                Servicer or Master Servicer to Act as Servicer.

            	
              59

            
	
              Section
                3.5

            	
              Collection
                of Mortgage Loan Payments; Custodial Account; Collection Account;
                Note
                Payment Account and Certificate Distribution Account.

            	
              61

            
	
              Section
                3.6

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

            	
              65

            
	
              Section
                3.7

            	
              Access
                to Certain Documentation and Information Regarding the Mortgage
                Loans.

            	
              65

            
	
              Section
                3.8

            	
              Permitted
                Withdrawals from the Custodial Account, the Collection Account, the
                Note
                Payment Account and the Certificate Distribution.

            	
              66

            
	
              Section
                3.9

            	
              Maintenance
                of Hazard Insurance; Maintenance of Primary Insurance
                Policies.

            	
              69

            
	
              Section
                3.10

            	
              Enforcement
                of Due-on-Sale Clauses; Assumption Agreements.

            	
              70

            
	
              Section
                3.11

            	
              Realization
                Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage
                Loans.

            	
              72

            
	
              Section
                3.12

            	
              Administrator
                to Cooperate; Release of Mortgage Files.

            	
              75

            
	
              Section
                3.13

            	
              Documents,
                Records and Funds in Possession of Servicer to be Held for the Indenture
                Trustee.

            	
              76

            
	
              Section
                3.14

            	
              Servicing
                Compensation.

            	
              76

            
	
              Section
                3.15

            	
              Access
                to Certain Documentation.

            	
              77

            
	
              Section
                3.16

            	
              Annual
                Statements as to Compliance.

            	
              77

            

    

     

     

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                3.17

            	
              Annual
                Independent Public Accountants’ Servicing Statement; Financial
                Statements.

            	
              79

            
	
              Section
                3.18

            	
              Errors
                and Omissions Insurance; Fidelity Bonds.

            	
              80

            
	
              Section
                3.19

            	
              Delinquency
                Advances.

            	
              80

            
	
              Section
                3.20

            	
              Advance
                Facility.

            	
              81

            
	
              Section
                3.21

            	
              Prepayment
                Penalties.

            	
              83

            
	
              Section
                3.22

            	
              Actions
                with Respect to Distressed Mortgage Loans.

            	
              83

            
	
              Section
                3.23

            	
              [Duties
                of the Credit Risk Manager.]

            	
              84

            
	
              Section
                3.24

            	
              [Limitation
                Upon Liability of the Credit Risk Manager.

            	
              85

            
	
              Section
                3.25

            	
              [Removal
                of Credit Risk Manager.

            	
              85

            
	
               

              ARTICLE
                IIIA ADMINISTRATION AND MASTER SERVICING OF MORTGAGE LOANS

            	
              85

            
	
              Section
                3A.1

            	
              Master
                Servicer.

            	
              85

            
	
              Section
                3A.2

            	
              Reserved

            	86
	
              Section
                3A.3

            	
              Monitoring
                of Servicer.

            	
              86

            
	
              Section
                3A.4

            	
              Fidelity
                Bond.

            	
              87

            
	
              Section
                3A.5

            	
              Power
                to Act; Procedures.

            	
              87

            
	
              Section
                3A.6

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

            	
              88

            
	
              Section
                3A.7

            	
              Indenture
                Trustee to Retain Possession of Certain Insurance Policies and
                Documents.

            	
              89

            
	
              Section
                3A.8

            	
              Compensation
                for the Master Servicer.

            	
              89

            
	
              Section
                3A.9

            	
              Annual
                Officer’s Certificate as to Compliance.

            	
              89

            
	
              Section
                3A.10

            	
              UCC.

            	
              90

            
	
              Section
                3A.11

            	
              Obligation
                of the Master Servicer in Respect of Prepayment Interest
                Shortfalls.

            	
              90

            
	
               

              ARTICLE
                IV DEPOSITS AND PAYMENTS TO HOLDERS

            	
              90

            
	
              Section
                4.1

            	
              Deposits
                and Payments from the Trust Accounts.

            	
              90

            
	
              Section
                4.2

            	
              Method
                of Distribution.

            	
              95

            
	
              Section
                4.3

            	
              [Reserved]

            	
              96

            
	
              Section
                4.4

            	
              Reports
                to the Depositor, the Administrator and the Indenture
                Trustee.

            	
              96

            
	
              Section
                4.5

            	
              Reports
                by or on Behalf of the Indenture Trustee.

            	
              96

            
	
              Section
                4.6

            	
              Control
                of the Trust Accounts.

            	
              99

            
	
              Section
                4.7

            	
              [The
                Swap Agreement and the Cap Agreements.

            	
              103

            
	
              Section
                4.8

            	
              [Rights
                of Swap Counterparty.

            	
              105

            
	
              Section
                4.9

            	
              [The
                Pre-Funding Account] [The Revolving Account].

            	
              105

            
	
              Section
                4.10

            	
              [The
                Capitalized Interest Account.

            	
              106

            
	
               

              ARTICLE
                V [Reserved]

            	
              106

            
	
               

              ARTICLE
                VI THE DEPOSITOR, THE SERVICER, THE MASTER SERVICER, THE SELLER AND
                [THE
                CREDIT RISK MANAGER]

            	
              106

            
	
              Section
                6.1

            	
              Respective
                Liabilities of the Depositor, the Servicer, the Master Servicer,
                the
                Seller and [the Credit Risk Manager].

            	
              106

            

    

     

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                6.2

            	
              Merger
                or Consolidation of the Depositor, Servicer, the Master Servicer,
                the
                Seller and [the Credit Risk Manager].

            	
              107

            
	
              Section
                6.3

            	
              Limitation
                on Liability of the Depositor, the Master Servicer, the Servicer,
                the
                Seller and Others.

            	
              108

            
	
              Section
                6.4

            	
              Limitation
                on Resignation of Servicer.

            	
              109

            
	
              Section
                6.5

            	
              Reporting
                Requirements of the Commission and Indemnification.

            	
              109

            
	
               

              ARTICLE
                VII DEFAULT; REPORTS

            	
              109

            
	
              Section
                7.1

            	
              Events
                of Default.

            	
              109

            
	
              Section
                7.2

            	
              Notification
                to Noteholders.

            	
              114

            
	
              Section
                7.3

            	
              Filings.

            	
              115

            
	
              Section
                7.4

            	
              Reporting
                Requirements of the Commission and Indemnification

            	
              116

            
	
              Section
                7.5

            	
              The
                Custodian and the Administrator.

            	
              117

            
	
               

              ARTICLE
                VIII [Reserved]

            	
              117

            
	
               

              ARTICLE
                IX TERMINATION

            	
              117

            
	
              Section
                9.1

            	
              Termination
                upon Liquidation or Purchase of all Mortgage Loans.

            	
              117

            
	
              Section
                9.2

            	
              Final
                Payment on the Notes.

            	
              118

            
	
               

              ARTICLE
                X MISCELLANEOUS PROVISIONS

            	
              120

            
	
              Section
                10.1

            	
              Amendment.

            	
              120

            
	
              Section
                10.2

            	
              Recordation
                of Agreement; Counterparts.

            	
              121

            
	
              Section
                10.3

            	
              Governing
                Law.

            	
              122

            
	
              Section
                10.4

            	
              Intention
                of Parties.

            	
              122

            
	
              Section
                10.5

            	
              Notices.

            	
              122

            
	
              Section
                10.6

            	
              Severability
                of Provisions.

            	
              123

            
	
              Section
                10.7

            	
              Assignment.

            	
              123

            
	
              Section
                10.8

            	
              Limitation
                on Rights of Noteholders.

            	
              123

            
	
              Section
                10.9

            	
              Inspection
                and Audit Rights.

            	
              124

            
	
              Section
                10.10

            	
              [Derivative
                Transactions

            	
              125

            
	
              Section
                10.11

            	
              Limitations
                on Actions; No Proceedings.

            	
              126

            
	
              Section
                10.12

            	
              Mortgage
                Data.

            	
              126

            
	
              Section
                10.13

            	
              Waiver
                of Jury Trial.

            	
              126

            
	
              Section
                10.14

            	
              Limitation
                of Damages.

            	
              126

            
	
              Section
                10.15

            	
              Execution
                by the Issuer.

            	
              126

            

    

    

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    SCHEDULES

     

    Schedule
      I:  [Mortgage
      Loan Schedule] [Revolving Credit Loan Schedule]

    

    

     

    EXHIBITS

     

    
      	
              Exhibit
                A:

            	
              Form
                of Initial Certification of Custodian     

            
	
              Exhibit
                B:

            	
              Form
                of Final Certification of Custodian     

            
	
              Exhibit
                C:

            	
              Request
                for Release of Documents 

            
	
              Exhibit
                D:

            	
              Form
                of Certification to be Provided to the Depositor by the
                Servicer 

            
	
              Exhibit
                E:

            	
              Form
                of Certification to be Provided to the Depositor by the Indenture
                Trustee

            
	
              Exhibit
                F

            	
              Form
                of Limited Power of Attorney

            
	
              [Exhibit
                G:

            	
              Credit
                Risk Management Agreements]

            
	
              [Exhibit
                H:

            	
              Swap
                Agreement]

            
	
              [Exhibit
                I:

            	
              Class
                N Cap Agreement]

            
	
              [Exhibit
                J:

            	
              Cap
                Agreement]

            
	
              [Exhibit
                K

            	
              Form
                of Addition Notice]

            
	 	 

    

    

    

    

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    [The
      provisions of the Transfer and Servicing Agreement for each series will be
      modified as applicable]

     

    This
      TRANSFER AND SERVICING AGREEMENT dated as of
      [          ], 20[  ]
      (this “Agreement”), is by and among AEGIS ASSET BACKED SECURITIES TRUST
      20[  ]-[  ], a Delaware statutory trust, as issuer (the
“Issuer”), AEGIS ASSET BACKED SECURITIES CORPORATION, a Delaware corporation, as
      depositor (the “Depositor”), [AEGIS MORTGAGE CORPORATION] [AEGIS REIT
      CORPORATION], a [Delaware] [Maryland] corporation, as seller (the “Seller”),
      [          ], as master
      servicer (in such capacity, the “Master Servicer”), administrator (in such
      capacity, the “Administrator”) and custodian (in such capacity, the
“Custodian”), [          ], as
      servicer (together with any successor in interest, the “Servicer”),
      [          ], as credit risk
      manager (the “Credit Risk Manager”),
      and[          ], as indenture
      trustee (in such capacity, the “Indenture Trustee”).

     

    WITNESSETH
      THAT

     

    In
      consideration of the mutual agreements herein contained, the parties hereto
      agree as follows:

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor has acquired the Mortgage Loans from the Seller, and at the Closing
      Date is the owner of the Mortgage Loans and the other property being conveyed
      by
      it to the Issuer hereunder for inclusion in the Trust Estate. On the Closing
      Date, the Depositor will acquire the Notes and the Ownership Certificate from
      the Issuer, as consideration for its transfer to the Issuer of the Mortgage
      Loans and the other property constituting the Trust Estate. The Depositor has
      duly authorized the execution and delivery of this Agreement to provide for
      the
      conveyance to the Issuer of the Mortgage Loans and the other property
      constituting the Trust Estate. Pursuant to the Indenture, the Issuer will pledge
      the Mortgage Loans and the other property constituting the Trust Estate to
      the
      Indenture Trustee as security for the Notes. All covenants and agreements made
      by the Seller and AMC in the Sale Agreement and by the Depositor, the Seller,
      the Servicer, [the Credit Risk Manager] and the Indenture Trustee herein with
      respect to the Mortgage Loans and the other property constituting the Trust
      Estate are for the benefit of the Holders from time to time of the Notes. The
      Issuer, the Depositor, the Seller, the Master Servicer, the Administrator,
      the
      Custodian, the Servicer, the Indenture Trustee, and [the Credit Risk Manager]
      are entering into this Agreement, and the Issuer is accepting the Trust Estate
      created hereby, for good and valuable consideration, the receipt and sufficiency
      of which are hereby acknowledged.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      following table sets forth (or describes) the Class designation, Note Interest
      Rate, initial Class Principal Amount and minimum denomination for each Class
      of
      Notes issued pursuant to the Indenture. 

     

    

    
      	
              Class

              Designation

            	
              Note

              Interest
                Rate

            	
              Initial
                Class

              Principal
                Amount 

            	
              Minimum

              Denomination

            
	
              Class
                [  ]

            	
              (1)

            	
              $    [          ]

            	
              $
                [          ]

            
	
              Class
                [  ]

            	
              (2)

            	
              $   
                [          ]

            	
              $
                [          ]

            
	
              Class
                [  ]

            	
              (3)

            	
              $  
                 [          ]

            	
              $
                [          ]

            
	
              Class
                [N1]

            	
              [          ]%

            	
              $    [          ]

            	
              $
                [          ]

            
	
              Class
                [N2]

            	
              [          ]%

            	
              $    [          ]

            	
              $
                [          ]

            
	 	 	 	 

    

    ___________________________

    
      	
              (1)

            	
              The
                Note Interest Rate with respect to any Payment Date (and the related
                Accrual Period) for the Class [  ] Notes is the per annum rate
                equal to the least of (i) LIBOR plus
                [          ]%, (ii) the
                Available Funds Cap for such Payment Date and (iii) 15%;
                provided
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 9.1(a) on the Initial Optional Purchase Date, then with
                respect
                to each subsequent Payment Date the per annum rate calculated pursuant
                to
                clause (i) above with respect to the Class [  ] Notes will be
                LIBOR plus
                [          ]%.
                

            

    

     

    
      	
              (2)

            	
              The
                Note Interest Rate with respect to any Payment Date (and the related
                Accrual Period) for the Class [  ] Notes is the per annum rate
                equal to the least of (i) LIBOR plus
                [          ]%, (ii) the
                Available Funds Cap for such Payment Date and (iii) 15%;
                provided
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 9.1(a) on the Initial Optional Purchase Date, then with
                respect
                to each subsequent Payment Date the per annum rate calculated pursuant
                to
                clause (i) above with respect to the Class [  ] Notes will be
                LIBOR plus
                [          ]%.
                

            

    

     

    
      	
              (3)

            	
              The
                Note Interest Rate with respect to any Payment Date (and the related
                Accrual Period) for the Class [  ] Notes is the per annum rate
                equal to the least of (i) LIBOR plus
                [          ]%, (ii) the
                Available Funds Cap for such Payment Date and (iii) 15%;
                provided
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 9.1(a) on the Initial Optional Purchase Date, then with
                respect
                to each subsequent Payment Date the per annum rate calculated pursuant
                to
                clause (i) above with respect to the Class [  ] Notes will be
                LIBOR plus
                [          ]%.

            

    

     

    As
      of the
      Cut-off Date, the Mortgage Loans had an aggregate Scheduled Principal Balance
      of
      $[          ].

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.1   Definitions. The
      following words and phrases, unless the context otherwise requires, shall have
      the following meanings:

     

    Accepted
      Master Servicing Practices:
      With
      respect to any Mortgage Loan, as applicable, either (x) 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 Master Servicer (except in its capacity as successor
      to
      the Servicer), or (y) as provided in Section 3A.1 hereof, but in no event below
      the standard set forth in clause (x).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

    Account:
      The
      Custodial Account, the Collection Account, the Note Payment Account or the
      Certificate Distribution Account, as the context may require.

     

    Accountant:
      A
      person engaged in the practice
      of
      accounting who (except when this Agreement provides that an Accountant must
      be
      Independent) may be employed by or affiliated with the Depositor or an Affiliate
      of the Depositor.

     

    Accrual
      Period:
      With
      respect to the Securities and any Payment Date, the period beginning on the
      Payment Date in the calendar month immediately preceding the month in which
      the
      related Payment Date occurs (or, in the case of the first Payment Date,
      beginning on the Closing Date) and ending on the day immediately preceding
      the
      related Payment Date.

     

    Accrued
      Note Interest:
      With
      respect to any Class of Notes and any Payment Date, the aggregate amount of
      interest accrued at the applicable Note Interest Rate during the related Accrual
      Period on the Class Principal Amount of such Class immediately prior to such
      Payment Date; provided,
      however,
      that for
      any Class of Subordinate Notes [(other than the Class N Notes)] and for any
      Payment Date, Accrued Note Interest shall be reduced by the amount, if any,
      specified in clause (a) of the definition of Deferred Interest for such Class
      and Payment Date.

     

    [Addition
      Notice:
      With
      respect to each sale of Subsequent Mortgage Loans to the Issuer pursuant to
      Section [   ] of this Agreement, a notice from the Depositor
      substantially in the form of Exhibit [  ]
      hereto
      delivered to the Indenture Trustee, the Master Servicer, the Administrator,
      the
      Custodian, each Rating Agency and any NIMS Insurer.]

     

    [Additional
      Mortgage Loan:
      A
      Mortgage Loan that is conveyed as of the Transfer Date to the Trustee by the
      Depositor pursuant to a Transfer Supplement to the [Sale]
      Agreement, which Mortgage Loan shall be identified in such Transfer Supplement
      as a Additional Mortgage Loan and added by the Depositor to the Mortgage Loan
      Schedule.]

     

    [Additional
      Termination Event:
      As
      defined in the Swap Agreement.]

     

    Adjustable
      Rate Mortgage Loan:
      Any
      Mortgage Loan as to which the related Mortgage Note provides for the adjustment
      of the
      Mortgage
      Rate applicable thereto.

     

    Administration
      Agreement:
      The
      administration agreement dated as of [          ],
      20[  ], among
      the
      Issuer, the Indenture Trustee, the Owner Trustee, the Administrator and the
      Depositor, as such may be amended or supplemented from time to
      time.

     

    Administrator:
      As of
      the Closing Date,
      [          ], in its capacity
      as Administrator under the Administration Agreement, and thereafter, any
      successor in interest or assign that meets the requirements of this Agreement
      and the Administration Agreement. So long as
      [          ] shall be the
      Administrator, if [          ]
      shall resign or be terminated as Administrator under this Agreement or the
      Administration Agreement,
      [          ] shall
      simultaneously resign or be terminated as Master Servicer under this
      Agreement.

     

    Advance:
      Each of
      a Delinquency Advance and a Servicing Advance, as applicable.

     

    Advance
      Facility:
      As
      defined in Section 3.20.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

     

    Advance
      Facility Counterparty:
      As
      defined in Section 3.20.

     

    Advance
      Reimbursement Payment:
      With
      respect to each Payment Date until the Initial Advance Facility has been
      terminated, the sum of (i) the amount available from collections on the Mortgage
      Loans with respect to such Payment Date to reimburse the Servicer (or the
      Subservicer) for unreimbursed Advances made by it, such right of reimbursement
      pursuant to this subclause (i) being limited to amounts received on any Mortgage
      Loan in respect of which any such Advance was made, and (ii) to the extent
      of
      other available amounts, the amount necessary to reimburse the Servicer (or
      the
      Subservicer) for any Nonrecoverable Advance previously made.

     

    Advance
      Reimbursement Rights:
      As
      defined in Section 3.20.

     

    [Advance
      Reimbursement Shortfall Amount:
      As
      defined in Section 3.01.]

     

    [Affected
      Party:
      As
      defined in the Swap Agreement.]

     

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

     

    Aggregate
      Expense Rate:
      Not
      Applicable.

     

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

     

    AMC:
      Aegis
      Mortgage Corporation, a Delaware corporation.

     

    Anniversary
      Year:
      The
      one-year period beginning on the Closing Date and ending on the first
      anniversary thereof, and each subsequent one-year period beginning on the day
      after the end of the preceding Anniversary Year and ending on next succeeding
      anniversary of the Closing Date.

     

    Appraised
      Value:
      With
      respect to any Mortgage Loan, the amount set forth in an appraisal made in
      connection with the origination of such Mortgage
      Loan as
      the value of the related Mortgaged Property.

     

    Assignment
      of Mortgage:
      An
      assignment of the Mortgage, notice of transfer or equivalent instrument, in
      recordable form, sufficient under the laws of the jurisdiction wherein the
      related Mortgaged Property is located to reflect the assignment of the Mortgage
      to the Indenture Trustee for the benefit of Securityholders, which assignment,
      notice of transfer or equivalent instrument may be in the form of one or more
      blanket assignments covering the Mortgage Loans secured by Mortgaged Properties
      located in the same jurisdiction, if permitted by law; provided,
      however,
      that
      none of the Issuer, the Indenture Trustee or the Custodian shall be responsible
      for determining whether any such assignment is in recordable form.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

     

    Authorized
      Officer:
      Any
      Person who may execute
      an
      Officer’s Certificate on behalf of the Depositor.

     

    Available
      Funds Cap:
      With
      respect to any Payment Date, an annual rate equal to (i) (a) 360 divided
      by
      (b) the
      actual number of days in the Accrual Period, multiplied
      by
      (ii) (a)
      (1) the Interest Remittance Amount for such Payment Date, [minus
      (2) any
      Net Swap Payments paid by the Trust pursuant to the Swap Agreement on such
      Payment Date], divided
      by
      (b) the
      excess of (1) the total Class Principal Balance of the LIBOR Notes as
      of the
      first day of the related Accrual Period over (2) the Total Principal Deficiency
      Amount immediately preceding such Payment Date.

     

    [B]
      Principal Deficiency Amount:
      With
      respect to any Payment Date, the lesser of (a) the excess, if any, of (1) the
      Total Principal Deficiency Amount over (2) the sum of (i) the [  ]
      Principal Deficiency Amount and (ii) the [  ] Principal Deficiency
      Amount, in each case for that Payment Date and (b) the
      aggregate Class Principal Amount of the Class [B] Notes immediately
      prior to such Payment Date.

     

    [B]
      Principal Payment Amount:
      With
      respect to any Payment Date, the amount, if any, by which (x) the sum
of
      (i) the
      aggregate Class Principal Amount of the Class [A] and Class [M] Notes,
      in
      each case after giving effect to payments on such Payment Date, and (ii) the
      Class Principal Amount of the Class [B] Notes
      immediately prior to such Payment Date exceeds (y) the [B] Target
      Amount.

     

    [B]
      Target Amount:
      With
      respect to any Payment Date, an amount equal to the lesser of (a) the product
      of
      (i) [          ]%
      and
      (ii) the Pool Balance for such Payment Date and (b) the amount, if any, by
      which
      (i) the Pool Balance for such Payment Date exceeds (ii) 0.50% of the Cut-off
      Date Balance.

     

    Balloon
      Mortgage Loan:
      Any
      Mortgage Loan having an original term to maturity that is shorter than its
      amortization schedule, and a final Scheduled Payment that is disproportionately
      large in comparison to other Scheduled Payments.

     

    Balloon
      Payment:
      The
      final Scheduled Payment in respect
      of a
      Balloon Mortgage Loan.

     

    Bankruptcy:
      With
      respect to any Person, the making of an assignment for the benefit of creditors,
      the filing of a voluntary petition in bankruptcy, adjudication as a bankrupt
      or
      insolvent, the entry of an order for relief in a bankruptcy or insolvency
      proceeding, the seeking of reorganization, arrangement, composition,
      readjustment, liquidation, dissolution or similar relief, or seeking, consenting
      to or acquiescing in the appointment of a trustee, receiver or liquidator,
      dissolution, or termination, as the case may be, of such Person pursuant to
      the
      provisions of either the United States Bankruptcy Code of 1986, as amended,
      or
      any other similar state laws.

     

    Bankruptcy
      Code:
      The
      United States Bankruptcy Code of 1986, as amended.

     

    Basis
      Risk Shortfall:
      With
      respect to any Payment Date and any Class of LIBOR Notes,
      an
      amount equal to the
      sum
      of (1) the excess, if any, of (a) Accrued Note Interest (without regard to
      the
      Available Funds Cap) over (b) the aggregate of interest accrued on such Class
      at
      an interest rate equal to the Available Funds Cap, (2) any amount described
      in
      clause (1) above for such Class remaining unpaid from prior Payment Dates and
      (3) interest on the amount in clause (2) above at such Class’s applicable Note
      Interest Rate (without regard to the Available Funds Cap).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

     

    Book-Entry
      Notes:
      Beneficial interests in Notes
      designated as “Book-Entry Notes”
in
      this Agreement, ownership and transfers of which shall be evidenced or made
      through book entries by a Depository; provided
      that after
      the
      occurrence of a condition whereupon book-entry registration and transfer are
      no
      longer permitted and Definitive Notes
      are to
      be issued to Note
      Owners,
      such Book-Entry Notes
      shall
      no longer be “Book-Entry Notes.”
As
      of
      the Closing Date, the following Classes of Notes
      constitute Book-Entry Notes: the Class [A], Class [M] and Class [B]
      Notes.

     

    Bulk
      PMI Policy:
      Not
      applicable.

     

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday, (ii) a day on which banking institutions
      in New York, New York or, if other than New York, any city in which the
      Corporate Trust Office of the Indenture Trustee is located, or (iii) the States
      of Delaware, Florida, Maryland, Minnesota, Colorado or Texas are
      closed.

     

    [Cap
      Agreement:
      The
      interest rate cap agreement dated as of the Closing Date, entered into between
      the Issuer and the Cap Counterparty, which agreement provides for the monthly
      payment specified therein, during the Cap Period, by the Cap Counterparty,
      but
      subject to the conditions set forth therein, including
      any schedules, confirmations or other agreements relating thereto,
      in the
      form of Exhibit J hereto.]

     

    [Cap
      Agreements:
      The Cap
      Agreement and the Class N Cap Agreement.]

     

    [Cap
      Counterparty:
      [          ].]

     

    [Cap
      Period:
      The
      period commencing in [          ]
      20[ and
      terminating in (but including) [          ]
      20[  ].]

     

    [Capitalized
      Interest Account:
      The
      account created and maintained by the Administrator pursuant to Section
[   ].]

     

    [Capitalized
      Interest Requirement:
      With
      respect to any Payment Date to and including the Payment Date following the
      end
      of the Pre-Funding Period, an amount equal to the product of (i) the weighted
      average Net Mortgage Rate of the Mortgage Loans divided by 12, multiplied by
      (ii) the excess of (a) the balance in the Pre-Funding Account as of the Closing
      Date over (b) the aggregate Scheduled Principal Balance of the Subsequent
      Mortgage Loans that will have a scheduled interest payment included in the
      related Interest Remittance Amount for such Payment Date.]

     

    Carryforward
      Interest:
      With
      respect to any Payment Date [and the Class N Notes], the
      sum
      of (i) the amount, if any, by which (x) the sum of (A) Accrued Note
      Interest for such Class for the immediately preceding Payment Date and (B)
      any
      unpaid Carryforward Interest for such Class from previous Payment Dates exceeds
      (y) the amount distributed in respect of interest on such Class on such
      immediately preceding Payment Date, and (ii) interest on such amount for the
      related Accrual Period at the applicable Note Interest Rate.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

     

    Certificate
      Distribution Account:
      As
      defined in Section 3.5(e).

     

    Class:
      All
Notes
      bearing
      the same class designation.

     

    Class
      [A] Notes:
      Collectively, the Class [A]
      Notes.

     

    Class
      [B] Notes:
      Collectively, the [B]
      Notes.

     

    Class
      [M] Notes:
      Collectively, the Class [M] Notes.

     

    [Class
      N Notes:
      Collectively, the Class N1 and Class N2 Notes.]

     

    [Class
      N Cap Agreement:
      The
      interest rate cap agreement dated as of the Closing Date, entered into between
      the Issuer (for the benefit of the Class N Noteholders) and the Class N Cap
      Counterparty, which agreement provides for the monthly payment specified
      therein, during the Class N Cap Period, by the Class N Cap Counterparty, but
      subject to the conditions set forth therein, including
      any schedules, confirmations or other agreements relating thereto,
      in the
      form of Exhibit I hereto.]

     

    [Class
      N Cap Counterparty:
      [          ].]

     

    [Class
      N Cap Period:
      The
      period commencing in [          ]
      20[  ] and
      terminating in (but including) [          ]
      20[  ].]

     

    Class
      Notional Amount:
      Not
      applicable.

     

    Class
      Principal Amount:
      With
      respect to any Note, the
      initial Class Principal Amount thereof as of the Closing Date, less the amount
      of all principal payments previously paid with
      respect to such Note.

     

    Closing
      Date:
      [          ],
      20[  ].

     

    Code:
      The
      Internal Revenue Code of 1986, as amended, and as it may be further amended
      from
      time to time, any successor
      statutes
      thereto, and applicable U.S. Department of Treasury regulations issued pursuant
      thereto in temporary or final form.

     

    Collection
      Account:
      The
      separate Eligible Account or Accounts established and maintained by the Master
      Servicer pursuant to Section 3.5 hereof.

     

    Collection
      Period:
      With
      respect to any Payment Date, 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.

     

    Commission:
      The
      United States Securities and Exchange Commission.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

     

    Compensating
      Interest:
      With
      respect to any Payment Date and any Principal Prepayment in full in respect
      of a
      Mortgage Loan that is received during the period from the first day of the
      related Prepayment Period through the last day of the calendar month immediately
      preceding such Payment Date, an additional payment made by the Servicer or
      the
      Master Servicer, to the extent funds are available from the total Servicing
      Fee
      payable for such Payment Date, equal to the amount of interest at the Mortgage
      Rate (less the applicable Servicing Fee Rate) for that Mortgage Loan from the
      date of the prepayment through the last day of the calendar month immediately
      preceding such Payment Date. In accordance with Section 3A.11, the Master
      Servicer will be required to make any payment of Compensating Interest required
      to be made but not made by the Servicer pursuant to this Agreement with respect
      to any Payment Date, but only to the extent of compensation received by the
      Master Servicer on such Payment Date in accordance with Section 3.A.8. For
      the
      avoidance of doubt, no Compensating Interest payment shall be required in
      connection with any shortfalls resulting from Principal Prepayments in part
      or
      the application of the Relief Act.

     

    Conventional
      Loan:
      A
      Mortgage Loan that is not insured by the United States Federal Housing
      Administration or guaranteed by the United States Department of Veterans
      Affairs.

     

    Conventional
      Loan Documents:
      None.

     

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

     

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

     

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

     

    Cooperative
      Shares:
      Shares
      issued by a Cooperative Corporation.

     

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

     

    Corporate
      Trust Office:
      With
      respect to the Indenture Trustee, the principal corporate trust office of the
      Indenture Trustee, which office at the date of the execution of this instrument
      is located at [          ],
      [          ],
      [          ], Attention:
 AEGIS
      20[  ]-[  ], or at such other address as the Indenture
      Trustee may designate from time to time by notice to the Noteholders, the
      Depositor, the Master Servicer, the Administrator and the Servicer. With respect
      to the Administrator, the office of the Administrator, which for purposes of
      Note transfers and surrender is located at
      [          ],
      [          ],
      [          ],
      [          ], Attention:
      [Corporate Trust Services] (AEGIS 20[  ]-[  ]) and for all
      other purposes is located at
      [          ],
      [          ],
      [          ],
      [          ], Attention:
      [Corporate Trust Services] (AEGIS 20[  ]-[  ]) or for
      overnight deliveries, at
      [          ],
      [          ],
      [          ], Attention:
      [Corporate Trust Services] (Aegis 20[  ]-[  ]).

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

     

    [Credit
      Advance Rate:
      The
      related per annum interest rate set forth in the related Mortgage Note with
      respect to any Revolving Credit Loan.]

     

    [Credit
      Line:
      With
      respect to a Revolving Credit Loan, the maximum principal amount which may
      be
      advanced to a Mortgagor under the terms of the related Mortgage
      Note.]

     

    [Credit
      Line Advance:
      With
      respect to a Revolving Credit Loan, a principal disbursement to a Mortgagor
      under the terms of the related Mortgage Note (collectively, “Credit Line
      Advances”).]

     

    [Credit
      Risk Management Agreement:
      (i) The
      Credit Risk Management Agreement dated as of the Closing Date, entered into
      by
      the Servicer (or a subservicer on behalf of the Servicer) and the Credit Risk
      Manager, in the form included in Exhibit G attached hereto; and (ii) the Credit
      Risk Management Agreement dated as of the Closing Date, entered into by the
      Master Servicer and the Credit Risk Manager, in the form included in Exhibit
      G
      attached hereto.]

     

    [Credit
      Risk Manager:
      [          ], a
      [          ] corporation, and
      its successors and assigns.] 

     

    [Credit
      Risk Manager’s Fee:
      With
      respect to any Payment Date and each Mortgage Loan, an amount equal to the
      product of (a) one twelfth, (b) the Credit Risk Manager’s Fee Rate and (c) the
      Scheduled Principal Balance of such Mortgage Loan as of the first day of the
      related Collection Period.]

     

    [Credit
      Risk Manager’s Fee Rate:
      [          ]%
      per
      annum.]

     

    Cumulative
      Realized Losses:
      As of
      any date of determination, the aggregate amount of Realized Losses with respect
      to the Mortgage Loans.

     

    Custodial
      Account:
      The
      separate Eligible Account or Accounts established and maintained by the Servicer
      (or any subservicer on its behalf) pursuant to Section 3.5 hereof.

     

    Custodian:
      [          ] or any successor
      thereto.

     

    Cut-off
      Date:
      [[          ],
      20[  ]] [As set forth for each Mortgage Loan in the Mortgage Loan
      Schedule].

     

    Cut-off
      Date Balance:
      [The
      Pool
      Balance as of the Cut-off Date] [With respect to the Mortgage Loans in the
      Trust
      on the Closing Date, the sum of (i) the aggregate Scheduled Principal Balance
      for all such Initial Mortgage Loans as of
      [          ] and (ii) the
      Pre-Funding Amount].

     

    [DBRS:
      Dominion Bond Rating Service, Inc., or any successor in interest.]

     

    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.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

     

    [Defaulting
      Party:
      As
      defined in the Swap Agreement.]

     

    Deferred
      Interest:
      With
      respect to any Payment Date and each Class of Subordinate Notes, the sum of
      (a)
      the aggregate amount of interest accrued at the applicable Note Interest Rate
      during the related Accrual Period on the Principal Deficiency Amount for the
      Class, (b) any amounts due pursuant to clause (a) for such Class for prior
      Payment Dates that remains unpaid and (c) interest accrued during the Accrual
      Period related to such Payment Date on the amount in clause (b) at the Note
      Interest Rate applicable to such Class.

     

    Deficient
      Valuation:
      With
      respect to any Mortgage Loan, a valuation of the related Mortgaged Property
      by a
      court of competent jurisdiction in an amount less than the then outstanding
      principal balance of the Mortgage Loan, which valuation results from a
      proceeding initiated under the Bankruptcy Code.

     

    Definitive
      Note:
      A Note
      of any Class issued in definitive, fully registered, certificated
      form.

     

    Deleted
      Mortgage Loan:
      A
      Mortgage Loan that is repurchased from the Trust pursuant to the terms hereof
      or
      as to which one or more Qualified Substitute Mortgage Loans are substituted
      therefor.

     

    Delinquency
      Advance:
      An
      advance
      of the aggregate of payments of principal and interest (net of the Servicing
      Fee) on one or more Mortgage Loans that were due on a Due Date in the related
      Collection Period and not received as of the close of business on the related
      Determination Date, required to be made by the Servicer (or by a successor
      servicer) or the Master Servicer pursuant to Section 3.19. 

     

    Delinquency
      Event:
      With
      respect to any Payment Date, a “Delinquency Event” shall have occurred if the
      Rolling Three Month Delinquency Rate as of the last day of the immediately
      preceding calendar month equals or exceeds
      [          ]% of the Senior
      Enhancement Percentage for such Payment Date.

     

    Delinquency
      Rate:
      With
      respect to any calendar month, the fraction, expressed as a percentage, the
      numerator of which is the aggregate outstanding principal balance of all
      Mortgage Loans 60 days Delinquent or more (including all foreclosures,
      bankruptcies and REO Properties) as of the close of business on the last day
      of
      such month, and the denominator of which is the Pool
      Balance
      as of
      the close of business on the last day of such month.

     

    Delinquent:
      For
      reporting purposes, a Mortgage Loan is “delinquent” when any payment
      contractually due thereon has not been made by the close of business on the
      Due
      Date therefor. Such Mortgage Loan is “30 days Delinquent” if such payment has
      not been received by the close of business on the corresponding day of the
      month
      immediately succeeding the month in which such payment was first due, or, if
      there is no such corresponding day (e.g., as when a 30-day month follows a
      31-day month in which a payment was due on the 31st day of such month), then
      on
      the last day of such immediately succeeding month. Similarly for “60 days
      Delinquent” and the second immediately succeeding month and “90 days Delinquent”
and the third immediately succeeding month.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

     

    Deposit
      Date:
      The day
      in each calendar month on which the Master Servicer is required to remit
      payments to the Note Payment Account, which is the 24th
      day of
      each calendar month no later than 1:00 p.m. (New York City time) (or, if such
      24th
      day is
      not a Business Day, the immediately preceding Business Day).

     

    Depositor:
      Aegis
      Asset Backed Securities Corporation, a Delaware corporation having its principal
      place of business at 3250
      Briarpark, Suite 400, Houston, Texas 77042,
      or its
      successors 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 Notes. 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:
      With
      respect to each Payment Date, the 16th day of the month in which such Payment
      Date occurs, or, if such 16th day is not a Business Day, the immediately
      preceding Business Day.

     

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

     

    Distressed
      Mortgage Loan:
      Any
      Mortgage Loan that at the date of determination is Delinquent in payment for
      a
      period of more than 90 days without giving effect to any grace period permitted
      by the related Mortgage Note or for which the Servicer or the Indenture Trustee
      has accepted a deed in lieu of foreclosure.

     

    Due
      Date:
      With
      respect to any Mortgage Loan, the date on which a Scheduled Payment is due
      under
      the related Mortgage Note.

     

    Eligible
      Account:
      Either
      (i) an account or accounts maintained with a federal or state chartered
      depository institution or trust company that complies with the definition of
      Eligible Institution or (ii) an account or accounts the deposits in which are
      insured by the FDIC to the limits established by such corporation, provided
      that any
      such deposits not so insured shall be maintained in an account at a depository
      institution or trust company whose commercial paper or other short term debt
      obligations (or, in the case of a depository institution or trust company which
      is the principal subsidiary of a holding company, the commercial paper or other
      short term debt or deposit obligations of such holding company or depository
      institution, as the case may be) have been rated by each Rating Agency in its
      highest short-term rating category, or (iii) a segregated trust account or
      accounts (which shall be a “special deposit account”) maintained with the
      Indenture Trustee, the Administrator or any other federal or state chartered
      depository institution or trust company, acting in its fiduciary capacity,
      in a
      manner acceptable to the Indenture Trustee and the Rating Agencies. Eligible
      Accounts may bear interest.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

     

    Eligible
      Institution:
      Any of
      the following:

     

    (i) an
      institution whose:

     

    (a) commercial
      paper, short-term debt obligations, or other short-term deposits are rated
      at
      least “A-1+” or long-term unsecured debt obligations are rated at least “AA-” by
      S&P (and the equivalent ratings by the other Rating Agencies if rated by
      such Rating Agencies), if the amounts on deposit are to be held in the account
      for no more than 365 days; or

     

    (b) commercial
      paper, short-term debt obligations, demand deposits, or other short-term
      deposits are rated at least “A-2” by S&P (and the equivalent ratings by the
      other Rating Agencies if rated by such Rating Agencies), if the amounts on
      deposit are to be held in the account for no more than 30 days and are not
      intended to be used as credit enhancement. Upon the loss of the required rating
      set forth in this clause (i), the accounts shall be transferred immediately
      to
      accounts which have the required rating. Furthermore, commingling by the
      Servicer is acceptable at the A-2 rating level if the Servicer is a bank, thrift
      or depository and provided the Servicer has the capability to immediately
      segregate funds and commence remittance to an Eligible Account upon a downgrade;
      or

     

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

     

    Eligible
      Investments:
      Any one
      or more of the following obligations or securities:

     

    (i) direct
      obligations of, and obligations fully guaranteed as to timely payment of
      principal and interest by, the United States of America or any agency or
      instrumentality of the United States of America the obligations of which are
      backed by the full faith and credit of the United States of America (“Direct
      Obligations”);

     

    (ii) federal
      funds, or demand and time deposits in, certificates of deposits of, or bankers’
acceptances issued by, any depository institution or trust company (including
      U.S. subsidiaries of foreign depositories and the Indenture Trustee or any
      agent
      of the Indenture Trustee, acting in its respective commercial capacity)
      incorporated or organized under the laws of the United States of America or
      any
      state thereof and subject to supervision and examination by federal or state
      banking authorities, so long as at the time of investment or the contractual
      commitment providing for such investment the commercial paper or other
      short-term debt obligations of such depository institution or trust company
      (or,
      in the case of a depository institution or trust company which is the principal
      subsidiary of a holding company, the commercial paper or other short-term debt
      or deposit obligations of such holding company or deposit institution, as the
      case may be) have been rated by each Rating Agency in its highest short-term
      rating category or one of its two highest long-term rating
      categories;

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

     

    (iii) repurchase
      agreements collateralized by Direct Obligations or securities guaranteed by
      GNMA, FNMA or FHLMC with any registered broker/dealer subject to Securities
      Investors’ Protection Corporation jurisdiction or any commercial bank insured by
      the FDIC, if such broker/dealer or bank has an uninsured, unsecured and
      unguaranteed obligation rated by each Rating Agency in its highest short-term
      rating category;

     

    (iv) securities
      bearing interest or sold at a discount issued by any corporation incorporated
      under the laws of the United States of America or any state thereof which have
      a
      credit rating from each Rating Agency, at the time of investment or the
      contractual commitment providing for such investment, at least equal to one
      of
      the two highest long-term credit rating categories of each Rating Agency;
provided,
      however,
      that
      securities issued by any particular corporation will not be Eligible Investments
      to the extent that investment therein will cause the then outstanding principal
      amount of securities issued by such corporation and held as part of the Trust
      Estate to exceed 20% of the sum of the Pool Balance and the aggregate principal
      amount of all Eligible Investments in the Note Payment Account; provided,
      further,
      that
      such securities will not be Eligible Investments if they are published as being
      under review with negative implications from any Rating Agency;

     

    (v) commercial
      paper (including both non-interest-bearing discount obligations and
      interest-bearing obligations payable on demand or on a specified date not more
      than 180 days after the date of issuance thereof) rated by each Rating Agency
      that rates such securities in its highest short-term rating
      category;

     

    (vi) a
      Qualified GIC;

     

    (vii) certificates
      or receipts representing direct ownership interests in future interest or
      principal payments on obligations of the United States of America or its
      agencies or instrumentalities (which obligations are backed by the full faith
      and credit of the United States of America) held by a custodian in safekeeping
      on behalf of the holders of such receipts; and

     

    (viii) any
      other
      demand, money market, common trust fund or time deposit or obligation, or
      interest-bearing or other security or investment (including those managed or
      advised by the Indenture Trustee, the Administrator or any Affiliate thereof),
      (A) rated in the highest rating category by each Rating Agency (other than
      Fitch) or (B) otherwise approved in writing by each Rating Agency of any of
      the
      Notes. Such investments in this subsection (viii) may include money market
      mutual funds or common trust funds, including any fund for which
      [          ] in its capacity
      other than as the Administrator (the “Bank”), the Indenture Trustee, the
      Administrator, the Master Servicer, the Servicer or an affiliate thereof serves
      as an investment advisor, administrator, shareholder servicing agent, and/or
      custodian or subcustodian, notwithstanding that (x) the Bank, the Indenture
      Trustee, the Administrator, the Master Servicer, the Servicer or any affiliate
      thereof charges and collects fees and expenses from such funds for services
      rendered, (y) the Bank, the Indenture Trustee, the Administrator, the Master
      Servicer, the Servicer or any affiliate thereof charges and collects fees and
      expenses for services rendered pursuant to this Agreement, and (z) services
      performed for such funds and pursuant to this Agreement may converge at any
      time. The Indenture Trustee specifically authorizes the Bank or an affiliate
      thereof to charge and collect from the Indenture Trustee such fees as are
      collected from all investors in such funds for services rendered to such funds
      (but not to exceed investment earnings thereon);

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

     

    provided,
      however,
      that no
      such instrument shall be an Eligible Investment if such instrument evidences
      either (i) a right to receive only interest payments with respect to the
      obligations underlying such instrument, or (ii) both principal and interest
      payments derived from obligations underlying such instrument and the principal
      and interest payments with respect to such instrument provide a yield to
      maturity of greater than 120% of the yield to maturity at par of such underlying
      obligations, provided
      that any
      such investment will be a “permitted investment” within the meaning of Section
      860G(a)(5) of the Code.

     

    Entitlement
      Order:
      The
      meaning specified in Section 8-102(a)(8) of the New York UCC (i.e.,
      generally, orders directing the transfer or redemption of any Financial
      Asset).

     

    Escrow
      Account:
      Any
      account established and maintained by the Servicer pursuant to Section
      3.6(a).

     

    Euroclear:
      Euroclear Bank, S.A./N.V., as operator of the Euroclear System.

     

    Event
      of Default:
      A
      Servicer Event of Default or a Master Servicer Event of Default, as
      applicable.

     

    Excess
      Proceeds:
      With
      respect to any Liquidated Mortgage Loan and the Payment Date immediately
      following the Prepayment Period in which such Mortgage Loan became a Liquidated
      Mortgage Loan, the amount, if any, by which the sum of any Liquidation Proceeds
      in respect of such Mortgage Loan received during such Prepayment Period, net
      of
      (a) any amounts previously reimbursed to the Servicer as Nonrecoverable
      Advance(s) with respect to such Mortgage Loan pursuant to Section 3.8(a)(iii)
      and (b) any Subsequent Recovery, exceeds the sum of (i) the unpaid principal
      balance of such Liquidated Mortgage Loan as of the Due Date in the month in
      which such Mortgage Loan became a Liquidated Mortgage Loan, (ii) accrued
      interest at the Mortgage Rate from the Due Date as to which interest was last
      paid or advanced (and not reimbursed) to Noteholders up to the Due Date
      applicable to the Payment Date immediately following the Prepayment Period
      during which such liquidation occurred and (iii) amounts required to be repaid
      to the related Mortgagor.

     

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

     

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

     

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

     

    Financial
      Asset:
      The
      meaning specified in Section 8-102(a) of the New York UCC.

     

    Fitch:
      Fitch,
      Inc., or any successor in interest.

     

    
      
        
        

      

      
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    Fixed
      Rate Mortgage Loan:
      Any
      Mortgage Loan as to which the related Mortgage Note provides for a fixed rate
      of
      interest throughout the term of such Note.

     

    FNMA:
      The
      Federal National Mortgage Association, a federally chartered and privately
      owned
      corporation organized and existing under the Federal National Mortgage
      Association Charter Act, or any successor thereto.

     

    Form
      10-K Certification:
      As
      defined in Section 7.3.

     

    Global
      Securities:
      The
      global securities representing the Book-Entry Notes.

     

    GNMA:
      The
      Government National Mortgage Association, a wholly owned corporate
      instrumentality of the United States within HUD.

     

    Holder
      or
Securityholder:
      Any
      Noteholder or Residual Holder, as the context may require.

     

    [Home
      Equity Accepted Servicing Practices:
      With
      respect to any Revolving Credit Loan, those mortgage loan servicing practices
      (including collection procedures) of prudent mortgage banking institutions
      which
      service home equity mortgage loans of the same type as such Revolving Credit
      Loan in the jurisdiction where the related Mortgaged Property is
      located.]

     

    HUD:
      The
      United States Department of Housing and Urban Development, or any successor
      thereto.

     

    Indenture:
      The
      indenture dated as of
      [          ],
      20[  ],
      among
      the Issuer, the Administrator and the Indenture Trustee, as such may be amended
      or supplemented from time to time.

     

    Indenture
      Trustee:
      [          ], not in its
      individual capacity but solely as Indenture Trustee, or any successor in
      interest, or if any successor indenture trustee or any co-indenture trustee
      shall be appointed as herein provided, then such successor indenture trustee
      and
      such co-indenture trustee, as the case may be.

     

    Indenture
      Trustee Fee:
      The
      annual fee payable by the Master Servicer on behalf of the Trust to the
      Indenture Trustee from income on funds held in the Collection Account as
      provided in Section 3.8 and pursuant to the terms of Section II of the separate
      fee letter agreement for Aegis Asset Backed Securities Trust
      20[  ]-[  ] Mortgage Backed Notes, a copy of which has been
      provided to the Master Servicer and the Administrator.

     

    Indenture
      Trustee Fee Rate:
      Not
      applicable.

     

    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. When used with
      respect to any other Person, a Person who (a) is in fact independent of another
      specified Person and any Affiliate of such other Person, (b) does not have
      any
      material direct financial interest in such other Person or any Affiliate of
      such
      other Person, and (c) is not connected with such other Person or any Affiliate
      of such other Person as an officer, employee, promoter, underwriter, trustee,
      partner, director or Person performing similar functions.

     

    
      
        
        

      

      
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    Index:
      The
      index specified in the related Mortgage Note for calculation of the Mortgage
      Rate thereof.

     

    Initial
      Advance Facility:
      The
      Subservicing Advance Agreement dated as of
      [          ],
      20[  ], between the Initial Advance Facility Counterparty and the
      Subservicer. For purposes of this Agreement, the Initial Advance Facility shall
      have been terminated if (i) the Subservicer is no longer acting as subservicer
      (or as Servicer) or (ii) the Initial Advance Facility Counterparty shall have
      notified the Administrator and the Indenture Trustee in writing that the Initial
      Advance Facility has been terminated.

     

    Initial
      Advance Facility Counterparty:
      [          ], and its
      successors and permitted assigns under the Initial Advance
      Facility.

     

    Initial
      LIBOR Rate:
      [          ]%.

     

    [Initial
      Mortgage Loan:
      A
      Mortgage Loan that is conveyed to the Issuer pursuant to this Agreement on
      the
      Closing Date. The Initial Mortgage Loans subject to this Agreement are
      identified on the Mortgage Loan Schedule annexed hereto as Schedule I and have
      an aggregate Scheduled Principal Balance as of the Cut-off Date of $[          ].]

     

    Initial
      Optional Purchase Date:
      The
      latest of (1) the Payment Date following the Determination Date in which the
      Pool Balance is less than 10.0% of the Cut-off Date Balance, (2)
      [          ] 20[  ]
      and (3) the date on which all principal and interest due and owing to the Class
      N Notes has been paid in full pursuant to clauses (v) through (viii) of Section
      4.1(d).

     

    Insurance
      Fee Rate:
      Not
      applicable.

     

    Insurance
      Policy:
      Any
      Primary Mortgage Insurance Policy (whether obtained by the Mortgagor, the
      lender, the originator or the Depositor), any standard hazard insurance policy,
      flood insurance policy, earthquake insurance policy or title insurance policy
      relating to the Mortgage Loans or the Mortgaged Properties, to be in effect
      as
      of the Closing Date or thereafter during the term of this
      Agreement.

     

    Insurance
      Proceeds:
      Amounts
      paid by the insurer under any Insurance Policy, other than amounts (i) to cover
      expenses incurred by the Servicer in connection with procuring such proceeds,
      (ii) to be applied to restoration or repair of the related Mortgaged Property
      or
      (iii) required to be paid over to the Mortgagor pursuant to law or the related
      Mortgage Note.

     

    
      
        
        

      

      
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    Interest
      Remittance Amount:
      With
      respect to and any Payment Date, (a) the sum of (i) all interest collected
      (other than Payaheads and Prepayment Penalties) or advanced in respect of
      Scheduled Payments on the Mortgage Loans during the related Collection Period
      minus
      (x) any
      PMI Insurance Premiums related to the Mortgage Loans for such Payment Date
      and
      any state taxes imposed on such premium, (y) the Servicing Fee with respect
      to
      the Mortgage Loans and (z) previously unreimbursed Delinquency Advances due
      to
      the Servicer or the Master Servicer to the extent allocable to interest and
      the
      allocable portion of previously unreimbursed Servicing Advances with respect
      to
      the Mortgage Loans, (ii) any Compensating Interest Payments with respect to
      such
      Mortgage Loans and the related Prepayment Period, (iii) the portion of any
      Purchase Price or Substitution Adjustment Amount paid with respect to the
      Mortgage Loans during the related Prepayment Period, to the extent allocable
      to
      interest, [(iv) any Net Swap Payment or Swap Termination Payment paid by the
      Swap Counterparty during the related Collection Period,] [(v) any amount paid
      by
      the Cap Counterparty pursuant to the Cap Agreement with respect to such Payment
      Date] and (vi) all Net Liquidation Proceeds, Insurance Proceeds and any other
      recoveries collected with respect to the Mortgage Loans during the related
      Prepayment Period, to the extent allocable to interest, as reduced (but not
      below zero) by (b) any costs, expenses or liabilities reimbursable to the Master
      Servicer, the Administrator, the Custodian, the Servicer, the Owner Trustee
      or
      the Indenture Trustee to the extent provided in this Agreement or any other
      Operative Document and not reimbursed pursuant to clause (a) above (provided,
      however,
      that in
      the case of the Indenture Trustee, such reimbursable amounts to the Indenture
      Trustee pursuant to Section 3.8 from amounts otherwise allocable to interest
      from the Interest Remittance Amount and the Principal Remittance Amount may
      not
      exceed $200,000 in the aggregate during any Anniversary Year; provided,
      further,
      that in
      the event that the Indenture Trustee incurs reimbursable amounts in excess
      of
      $200,000, it may seek reimbursement for such amounts from the Interest
      Remittance Amount in accordance with the priority of distributions under Section
      [   ] or, in subsequent Anniversary Years, from amount otherwise
      allocable to interest (subject to the $200,000 per Anniversary Year limitation);
      and provided,
      further,
      that
      notwithstanding the foregoing, costs and expenses incurred by the Indenture
      Trustee pursuant to Section 7.1 in connection with any transfer of servicing
      shall be excluded from the $200,000 per Anniversary Year limit on reimbursable
      amounts). [For each Payment Date up to and including the Payment Date in
      [           ], the
      Interest Remittance Amount shall include amounts payable from the Capitalized
      Interest Account in an amount equal to the Capitalized Interest Requirement
      for
      such Distribution Date.]

     

    Intervening
      Assignments:
      The
      original intervening assignments of the Mortgage, notices of transfer or
      equivalent instrument.

     

    Issuer:
      Aegis
      Asset Backed Securities Trust 20[  ]-[  ], a Delaware
      statutory trust.

     

    Junior
      Lien Mortgage Loan:
      Any
      Mortgage Loan that is secured by a junior lien on the related Mortgaged
      Property.

     

    LIBOR:
      With
      respect to the first Accrual Period, the Initial LIBOR Rate. With respect to
      each subsequent Accrual Period, a per annum rate determined on the LIBOR
      Determination Date in the following manner by the Administrator on the basis
      of
      the “Interest Settlement Rate” set by the British Bankers’ Association (the
“BBA”) for one-month United States dollar deposits, as such rates appear on the
      Telerate Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination
      Date.

     

    If
      on
      such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
      appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
      Telerate Page 3750 is not available on such date, the Administrator shall obtain
      such rate from Reuters’ “page LIBOR 01” or Bloomberg’s page “BBAM.” If such rate
      is not published for such LIBOR Determination Date, LIBOR for such date shall
      be
      the most recently published Interest Settlement Rate. In the event that the
      BBA
      no longer sets an Interest Settlement Rate, the Administrator shall designate
      an
      alternative index that has performed, or that the Administrator expects to
      perform, in a manner substantially similar to the BBA’s Interest Settlement
      Rate.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

     

    The
      establishment of LIBOR by the Administrator and the Administrator’s subsequent
      calculation of the Note Interest Rate applicable to the LIBOR Notes for the
      relevant Accrual Period, in the absence of manifest error, shall be final and
      binding.

     

    LIBOR
      Business Day:
      Any day
      on which banks in London, England and The City of New York are open and
      conducting transactions in foreign currency and exchange.

     

    LIBOR
      Note:
      Any
      Class [A], Class [M]
      or
      Class
      [B] Note.

     

    LIBOR
      Determination Date:
      The
      second LIBOR Business Day immediately preceding the commencement of each Accrual
      Period for any LIBOR Note.

     

    Liquidated
      Mortgage Loan:
      Any
      defaulted Mortgage Loan as to which the Servicer has determined that all amounts
      that it expects to recover from or on account of such Mortgage Loan have been
      recovered.

     

    Liquidation
      Expenses:
      Expenses that are incurred by the Servicer in connection with the liquidation
      of
      any defaulted Mortgage Loan and are not recoverable under the applicable Primary
      Mortgage Insurance Policy, if any, including, without limitation, foreclosure
      and rehabilitation expenses, legal expenses and unreimbursed
      amounts.

     

    Liquidation
      Proceeds:
      Cash
      received in connection with the liquidation of a defaulted Mortgage Loan,
      whether through the sale or assignment of such Mortgage Loan, trustee’s sale,
      foreclosure sale, payment in full, discounted payoff or otherwise, or the sale
      of the related Mortgaged Property if the Mortgaged Property is acquired in
      satisfaction of the Mortgage Loan, including any amounts remaining in the
      related Escrow Account.

     

    Loan-to-Value
      Ratio:
      With
      respect to any Mortgage Loan, the ratio of the principal balance of such
      Mortgage Loan plus, in the case of a Junior Lien Mortgage Loan, the principal
      balance of each mortgage loan senior thereto, in each case as of the applicable
      date of determination, to (a) in the case of a purchase, the lesser of the
      sale
      price of the Mortgaged Property and its appraised value at the time of sale
      or
      (b) in the case of a refinancing or modification, the appraised value of the
      Mortgaged Property at the time of the refinancing or modification.

     

    Lost
      Mortgage Note:
      Any
      Mortgage Note the original of which was permanently lost or destroyed and has
      not been replaced.

     

    Lower
      Tier Interest:
      As
      provided in the Preliminary Statement.

     

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

     

    
      
        
        

      

      
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    [M]
      Principal Payment Amount:
      With
      respect to any Payment Date, the amount, if any, by which (x) the sum of (i)
      the
      aggregate Class Principal Amount of the Class [A] Notes, after giving effect
      to
      payments on such Payment Date and (ii) the Class Principal Amount of the Class
      [M] Notes immediately prior to such Payment Date exceeds (y) the [M] Target
      Amount.

     

    [M]
      Target Amount:
      With
      respect to any Payment Date, an amount equal to the lesser of (a) the product
      of
      (i) [          ]%
      and
      (ii) the Pool Balance for such Payment Date and (b) the amount, if any, by
      which
      (i) the Pool Balance for such Payment Date exceeds (ii) 0.50% of the
      Cut-off Date Balance.

     

    Master
      Servicer:
      As of
      the Closing Date, [          ]
      and thereafter, any successor in interest or assign that meets the requirements
      of this Agreement. So long as
      [          ] shall be the
      Master Servicer, if
      [          ] shall resign or
      be terminated as Master Servicer under this Agreement,
      [          ] shall
      simultaneously resign or be terminated as Administrator.

     

    Master
      Servicer Event of Default:
      Any one
      of the events, conditions or circumstances enumerated in Section
      7.1(f).

     

    Maturity
      Date:
      With
      respect to any Class of Notes, the Payment Date in
      [          ]
      20[  ].

     

    MERS:
      Mortgage Electronic Registration Systems, Inc., a Delaware corporation, or
      any
      successor in interest thereto.

     

    MERS
      Mortgage Loan:
      Any
      Mortgage Loan as to which the related Mortgage, or an Assignment of Mortgage,
      has been or will be recorded in the name of MERS, as nominee for the holder
      from
      time to time of the Mortgage Note.

     

    Monthly
      Excess Cashflow:
      With
      respect to any Payment Date, the sum, of (i) the Monthly Excess Interest for
      such date, (ii) the Overcollateralization Release Amount for such date and
      (iii)
      any remaining Principal Payment Amount after application pursuant to Section
      4.1(c) for such date.

     

    Monthly
      Excess Interest:
      With
      respect to any Payment Date, the amount of any Interest Remittance Amount
      remaining after application pursuant to Section 4.1(b) for such
      date.

     

    Moody’s:
      Moody’s
      Investors Service, Inc., or any successor in interest.

     

    Mortgage:
      A
      mortgage, deed of trust or other instrument encumbering a fee simple interest
      in
      real property securing a Mortgage Note, together with improvements
      thereto.

     

    Mortgage
      File:
      The
      mortgage documents listed in Section 2.1(b) pertaining to a particular Mortgage
      Loan required to be delivered to the Custodian on behalf of the Indenture
      Trustee pursuant to this Agreement.

     

    Mortgage
      Loan:
      A
      Mortgage and the related notes or other evidences of indebtedness secured by
      each such Mortgage conveyed, transferred, sold, assigned to or deposited with
      the Indenture Trustee pursuant to Section 2.1 or Section 2.3, including without
      limitation each [Mortgage Loan] [Initial Mortgage Loan and [Subsequent Mortgage
      Loan][Additional Mortgage Loan]] listed on the Mortgage Loan Schedule, as
      amended from time to time.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

     

    Mortgage
      Loan Document Requirements:
      As
      defined in Section 2.2 hereof.

     

    Mortgage
      Loan Documents:
      As
      defined in Section 2.1 hereof.

     

    Mortgage
      Loan Schedule:
      The
      schedule attached hereto as Schedule I, which shall identify each Mortgage
      Loan,
      as such schedule may be amended from time to time to reflect the addition of
      Mortgage Loans to [(including the addition of any [Subsequent][Additional]
      Mortgage Loans)], or the deletion of Mortgage Loans from, the Trust.
The
      Depositor shall be responsible for providing the Master Servicer and the
      Custodian on behalf of the Indenture Trustee with all amendments to the Mortgage
      Loan Schedule[, including as a consequence of the addition of [Subsequent]
      [Additional] Mortgage Loans on a Transfer Date].

     

    Mortgage
      Note:
      The
      note or other evidence of the indebtedness of a Mortgagor secured by a Mortgage
      under a Mortgage Loan.

     

    Mortgage
      Rate:
      With
      respect to any Mortgage Loan, the per annum rate at which interest accrues
      on
      such Mortgage Loan, as determined under the related Mortgage Note as reduced
      by
      any application of the Relief Act.

     

    Mortgaged
      Property:
      The fee
      simple (or leasehold) interest in real property, together with improvements
      thereto including any exterior improvements to be completed within 120 days
      of
      disbursement of the related Mortgage Loan proceeds.

     

    Mortgagor:
      The
      obligor on a Mortgage Note.

     

    Net
      Excess Spread:
      With
      respect to any Payment Date, (A) the fraction, expressed as a percentage, the
      numerator of which is equal to the product of (i) the amount, if any, by which
      (a) the Interest Remittance Amount for such Payment Date [(as reduced by the
      sum
      of the Credit Risk Manager’s Fee for such Payment Date)] exceeds (b) the Accrued
      Note Interest payable with respect to the Notes for such date and (ii) twelve,
      and the denominator of which is the Pool
      Balance
      for such
      Payment Date, multiplied by (B) a fraction, the numerator of which is thirty
      and
      the denominator of which is the greater of thirty and the actual number of
      days
      in the immediately preceding calendar month.

     

    Net
      Liquidation Proceeds:
      With
      respect to any Liquidated Mortgage Loan, the related Liquidation Proceeds net
      of
      (i) unreimbursed expenses, (ii) unreimbursed Advances, if any, and (iii) in
      the
      case of a liquidated Junior Lien Mortgage Loan, the amount necessary to repay
      the related senior lien mortgage loan, received and retained in connection
      with
      the liquidation of defaulted Mortgage Loans, through insurance or condemnation
      proceeds, by foreclosure or otherwise, together with any net proceeds received
      on a monthly basis with respect to any Mortgaged Properties acquired by
      foreclosure or deed in lieu of foreclosure.

     

    Net
      Mortgage Rate:
      With
      respect to any Mortgage Loan, the Mortgage Rate thereof reduced by the Servicing
      Fee Rate for such Mortgage Loan.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

     

    Net
      Prepayment Interest Shortfall:
      With
      respect to any Payment Date, the excess, if any, of any Prepayment Interest
      Shortfalls for such date over Compensating Interest, if any, paid by the
      Servicer with respect to such Payment Date.

     

    [Net
      Swap Payment:
      With
      respect to each Payment Date, the net payment required to be made pursuant
      to
      the terms of the Swap Agreement, as calculated by the Swap Counterparty, which
      net payment shall not take into account any Swap Termination
      Payment.]

     

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

     

    Non-MERS
      Mortgage Loan:
      Any
      Mortgage Loan other than a MERS Mortgage Loan.

     

    [Non-passive
      Derivative:
      A
      derivative contract that provides the Seller with discretionary options, such
      as
      the option to call or put other financial instruments.]

     

    Nonrecoverable
      Advance:
      Any
      portion of any Advance previously made or proposed to be made by or on behalf
      of
      the Servicer that, in the good faith judgment of the Servicer, will not be
      ultimately recoverable from the related Mortgagor, related Liquidation Proceeds
      or otherwise from amounts in respect of the related Mortgage Loan.

     

    Note:
      Any of
      the Class [A], Class [M], Class [B] or Class [N] Notes issued pursuant to the
      Indenture.

    

    Note
      Payment Account:
      The
      separate Eligible Account established and maintained by the Administrator in
      accordance with the provisions of Section 3.5(d).

     

    Note
      Interest Rate:
      With
      respect to each Class of Notes
      and any
      Payment Date, the applicable per annum rate set forth or described in the
      Preliminary Statement hereto.

     

    Note
      Owner
      or
Owner:
      With
      respect to a Book-Entry Note,
      the
      Person who is the owner of such Book-Entry Note,
      as
      reflected on the books of the Depository, or on the books of a Person
      maintaining an account with such Depository (directly or as an indirect
      participant, in accordance with the rules of such Depository) and with respect
      to any other Class of Notes,
      the
Noteholder.

     

    Note
      Register
      and
Note
      Registrar:
      The
register
      maintained and the registrar appointed pursuant to the Indenture.

     

    Noteholder:
      The
      registered owner of any Note as recorded on the books of the Note Registrar,
      except that, solely for the purposes of taking any action or giving any consent
      pursuant to this Agreement, any Note registered in the name of the Depositor,
      the Indenture Trustee, the Administrator, the Master Servicer, the Servicer,
      any
      subservicer retained by the Servicer, [the Credit Risk Manager], or any
      Affiliate thereof shall be deemed not to be outstanding in determining whether
      the requisite percentage necessary to effect any such consent has been obtained,
      except that, in determining whether the Indenture Trustee and the Administrator
      shall be protected in relying upon any such consent, only Notes which a
      Responsible Officer of the Indenture Trustee knows to be so owned shall be
      disregarded. The Indenture Trustee may request and conclusively rely on
      certifications by the Depositor, the Administrator, the Master Servicer, the
      Servicer or [the Credit Risk Manager] in determining whether any Notes are
      registered to an Affiliate of the Depositor, the Administrator, the Master
      Servicer, the Servicer [or the Credit Risk Manager].

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

     

    Notice
      Address:
      For
      purposes hereof, the addresses of the Issuer, the Depositor, the Seller, the
      Master Servicer, the Administrator, the Custodian, the Servicer, the Indenture
      Trustee, [the Credit Risk Manager], each Rating Agency, [the Swap Counterparty],
      [the Cap Counterparty] and [the Class N Cap Counterparty] are as
      follows:

    

    
      	 	
              (i)

            	
              If
                to the Issuer:

            

    

     

    [          ]

    [          ],
      [          ]

    Attention:
      [Corporate Trust Administration]

     

    
      	 	
              (ii)

            	
              If
                to the Depositor:

            

    

     

    Aegis
      Asset Backed Securities Corporation

    3250
      Briarpark, Suite 400

    Houston,
      Texas 77042

    Attention:
      Secondary Marketing

     

    
      	 	
              (iii)

            	
              If
                to the Seller:

            

    

     

    [Aegis
      REIT Corporation] [Aegis Mortgage Corporation]

    3250
      Briarpark, Suite 400

    Houston,
      Texas 77042

    Attention:
      Secondary Marketing

     

    
      	 	
              (iv)

            	
              If
                to the Master Servicer:

            

    

     

    [          ]

    [          ],
      [          ]

    Attention:
      [Corporate Trust Services] (AEGIS 20[  ]-[  ])

     

    or
      for
      overnight delivery to:

     

    [          ]

    [          ],
      [          ]

    Attention:
      [Corporate Trust Services] (AEGIS 20[  ]-[  ])

     

    
      	 	
              (v)

            	
              If
                to the Administrator, to its [Corporate Trust
                Office].

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              (vi)

            	
              If
                to the Custodian:

            

    

     

    [          ]

    [          ],
      [          ]

    Attention:
      AEGIS 20[  ]-[  ]

     

    
      	 	
              (vii)

            	
              If
                to the Servicer:

            

    

     

    [          ] 

    [          ],
      [          ]

    Attention:
      Secretary

     

    In
      each
      case, with a copy to:

     

    Aegis
      Mortgage Corporation

    3250
      Briarpark, Suite 400

    Houston,
      Texas 77042

    Attention:
      Secondary Marketing

     

    
      	 	
              (viii)

            	
              If
                to the Indenture Trustee, to its [Corporate Trust
                Office].

            

    

     

    
      	 	
              (ix)

            	
              [If
                to the Credit Risk Manager:

            

    

     

    [          ]

    [          ]]

     

    Attention:
      General Counsel

     

    
      	 	
              (x)

            	
              [If
                to Moody’s:

            

    

     

    Moody’s
      Investors Service, Inc.

    99
      Church
      Street, 4th Floor

    New
      York,
      New York 10007

    Attention:
      Residential Mortgages]

     

    
      	 	
              (xi)

            	
              [If
                to S&P:

            

    

     

    Standard
      & Poor’s Ratings Services,

    a
      division of The McGraw-Hill Companies, Inc.

    55
      Water
      Street, 41st Floor

    New
      York,
      New York 10041

    Attention:
      Residential Mortgages]

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              (xii)

            	
              [If
                to Fitch:

            

    

     

    Fitch,
      Inc.

    One
      State
      Street Plaza

    30th
      Floor

    New
      York,
      New York 10004

    Attention:
      Residential
      Mortgages]

     

    
      	 	
              (xiii)

            	
              [If
                to DBRS:

            

    

     

    Dominion
      Bond Rating Service, Inc. 

    55
      Broadway, 15th Floor 

    New
      York,
      New York 10006

    Attention:
      Residential Mortgages]

     

    
      	 	
              (xiv)

            	
              [If
                to the Swap Counterparty:

            

    

     

    [          ]

    [          ],
      [          ]

    Attention:
      Managing Director - Legal Department]

     

    
      	 	
              (xv)

            	
              [If
                to the Cap Counterparty:

            

    

     

    [          ]
      

    [          ].
      [          ]

    Attention:
      Managing Director - Legal Department]

     

    
      	 	
              (xvi)

            	
              [If
                to the Class N Cap Counterparty:

            

    

     

    [          ]

    [          ],
      [          ]

    Attention:
      [          ]

     

    Notional
      Amount:
      Not
      applicable.

     

    Notional
      Note:
      Not
      applicable.

     

    Offering
      Document:
      The
      Prospectus.

     

    Officer’s
      Certificate:
      A
      certificate signed by the Chairman of the Board, any Vice Chairman, the
      President, any Vice President or any Assistant Vice President of a Person,
      and
      in each case delivered to the Indenture Trustee.

     

    Operative
      Documents:
      The
      Trust Agreement, the Certificate of Trust of the Issuer, this Agreement, the
      Sale Agreement, the Indenture, the Administration Agreement, the Depository
      Agreement, [the Swap Agreement], [the Cap Agreements], the Ownership
      Certificate, the Notes and each other document contemplated by any of the
      foregoing to which AMC, the Depositor, the Seller, the Master Servicer, the
      Servicer, the Owner Trustee, the Administrator, the Indenture Trustee, the
      Custodian or the Issuer is a party.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

     

    Opinion
      of Counsel:
      A
      written opinion of counsel, reasonably acceptable in form and substance to
      the
      Indenture Trustee, the Issuer and the Administrator, and which may be in-house
      or outside counsel to the Depositor, the Master Servicer, the Indenture Trustee,
      the Administrator or the Issuer but which must be Independent outside counsel
      with respect to any such opinion of counsel concerning the transfer of any
      Ownership Certificate or concerning federal income tax matters.

     

    [Original
      Capitalized Interest Amount:
      $[        ].]

     

    Original
      Value:
      With
      respect to any Mortgage Loan, the lesser of (a) the Appraised Value of the
      related Mortgaged Property at the time such Mortgage Loan was originated and
      (b)
      if the Mortgage Loan was made to finance the acquisition of the related
      Mortgaged Property, the purchase price paid for the Mortgaged Property by the
      Mortgagor at the time the related Mortgage Loan was originated.

     

    Overcollateralization
      Amount:
      With
      respect to any Payment Date, the amount, if any, by which (x) the Pool
      Balance
      for such
      Payment Date exceeds (y) the aggregate Class
      Principal Amount of the Class [A], Class [M] and Class [B] Notes after
      giving effect to payments on such Payment Date.

     

    Overcollateralization
      Cumulative Loss Trigger Event:
      An
“Overcollateralization Cumulative Loss Trigger Event” shall have occurred with
      respect to any Payment Date commencing with the Payment Date in
      [          ] 20[  ],
      if the fraction, expressed as a percentage, obtained by dividing (x) the
      aggregate amount of Cumulative Realized Losses incurred from the Cut-off Date
      through the last day of the related Collection Period by (y) the Cut-off Date
      Balance, exceeds the applicable percentage set forth below with respect to
      such
      Payment Date:

     

    
      	
              Payment
                Date

            	
              Loss
                Percentage

            
	
              [          ]
                20[  ] through
                [          ]
                20[  ]

            	
              [          ]%

            
	
              [          ]
                20[  ] through
                [          ]
                20[  ] 

            	
              [          ]%

            
	
              [          ]
                20[  ] through
                [          ]
                20[  ] 

            	
              [          ]%

            
	
              [          ]
                20[  ] through
                [          ]
                20[  ] 

            	
              [          ]%

            
	
              [          ]
                20[  ] and thereafter 

            	
              [          ]%

            
	 	 

    

    Overcollateralization
      Deficiency:
      With
      respect to any Payment Date, the amount, if any, by which (x) the Targeted
      Overcollateralization Amount for such Payment Date exceeds (y) the
      Overcollateralization Amount for such Payment Date, calculated for this purpose
      after giving effect to the reduction on such Payment Date of the Class
      Principal Amounts of the Class [A], Class [M] and Class [B] Notes resulting
      from the payment of the Principal Remittance Amount on such Payment
      Date.

     

    Overcollateralization
      Release Amount:
      With
      respect to any Payment Date, the lesser of (x) the Principal Remittance Amount
      for such Payment Date and (y) the amount, if any, by which (i) the
      Overcollateralization Amount for such date, calculated for this purpose on
      the
      basis of the assumption that 100% of the Principal Remittance Amount for such
      Payment Date is applied on such date in reduction of the aggregate Class
      Principal Amount of the LIBOR Notes,
      exceeds
      (ii) the Targeted Overcollateralization Amount for such Payment Date.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

     

    Owner
      Trustee:
      [          ], a Delaware
      banking corporation, and any successor in interest, not in its individual
      capacity, but solely as owner trustee under the Trust Agreement.

     

    Owner
      Trustee Fee:
      The
      annual fee of $[          ],
      payable by the Master Servicer on behalf of the Trust to the Owner Trustee
      from
      income on funds held in the Collection Account as provided in Section 3.8 and
      pursuant to the terms of a separate fee letter agreement, a copy of which has
      been provided to the Master Servicer and the Administrator.

     

    Ownership
      Certificate:
      The
      meaning assigned to such term in the Trust Agreement.

     

    [Passive
      Derivative:
      A
      derivative contract that does not offer any options to the Seller or other
      parties.]

     

    Payahead:
      With
      respect to any Mortgage Loan and any Due Date therefor, any Scheduled Payment
      received by the Servicer during any Collection Period in addition to the
      Scheduled Payment due on such Due Date, intended by the related Mortgagor to
      be
      applied on a subsequent Due Date or Due Dates.

     

    Paying
      Agent:
      Initially, the Administrator, and thereafter any subsequent paying agent
      appointed by the Indenture Trustee.

     

    Payment
      Date:
      The
      25th day of each month or, if such 25th day is not a Business Day, the next
      succeeding Business Day, commencing in
      [          ]
      20[  ].

     

    Percentage
      Interest:
      With
      respect to any Security, its percentage interest evidenced by all Securities
      of
      the same Class as such Security. With respect to any Security other than the
      Ownership Certificate, the Percentage Interest evidenced thereby shall equal
      the
      initial Class Principal Amount thereof divided by the initial Class Principal
      Amount of all Notes of the same Class. With respect to the Ownership
      Certificate, the Percentage Interest evidenced thereby shall be as specified
      on
      the face thereof, or otherwise be equal to 100%.

     

    Permitted
      Transferee:
      Any
      person other than a “disqualified organization” as defined in section 860E(e)(5)
      of the Code.

     

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

     

    PMI
      Insurance Premium:
      Not
      applicable.

     

    PMI
      Insurer:
      Not
      applicable.

     

    Pool
      Balance:
      As of
      any date
      of
      determination, the aggregate of the Scheduled Principal Balances of the Mortgage
      Loans [plus, during the [Pre-Funding Period] [Revolving Period], the amount
      of
      the [Pre-Funding Amount] [Revolving Amount] applicable to such Mortgage Pool
      which has not been previously applied towards the purchase of [Subsequent
      Mortgage Loans] [Additional Mortgage Loans].

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

     

    Pre
      Cut-off Date Servicing Advances:
      None.

     

    [Pre-Funding
      Account:
      The
      pre-funding account established by the Administrator pursuant to Section
      [    ].]

     

    [Pre-Funding
      Amount:
      The
      amount deposited by the Administrator into the Pre-Funding Account on the
      Closing Date.]

     

    [Pre-Funding
      Period:
      The
      period beginning on the Closing Date and ending on
      [     ].]

     

    Prepayment
      Interest Shortfall:
      With
      respect to any full or partial Principal Prepayment of a Mortgage Loan, the
      excess, if any, of (i) one full month’s interest at the applicable Mortgage Rate
      (as reduced by the Servicing Fee, in the case of Principal Prepayments in full)
      on the outstanding principal balance of such Mortgage Loan immediately prior
      to
      such prepayment over (ii) the amount of interest actually received with respect
      to such Mortgage Loan in connection with such Principal Prepayment.

     

    Prepayment
      Period:
      With
      respect to any Payment Date, the calendar month immediately preceding the month
      in which such Payment Date occurs.

     

    Prepayment
      Penalty:
      Any
      prepayment fees and penalties to be paid by the Mortgagor on a Mortgage
      Loan.

     

    Primary
      Mortgage Insurance Policy:
      Any
      mortgage guaranty insurance, if any, on an individual Mortgage Loan (excluding
      any Bulk PMI Policy) as evidenced by a policy or certificate, whether such
      policy is obtained by the originator, the lender, the Mortgagor, AMC or the
      Seller.

     

    Prime
      Rate:
      The
      prime rate of the United States money center commercial banks as published
      in
The
      Wall Street Journal,
      Northeast Edition.

     

    Principal
      Deficiency Amount:
      Any of
      the [M]] Principal Deficiency Amount or the [B] Principal Deficiency Amount,
      as
      applicable.

     

    Principal
      Payment Amount:
      With
      respect to any Payment Date, an amount equal to the Principal Remittance Amount
      for such date minus
      the
      Overcollateralization Release Amount, if any, for such Payment
      Date.

     

    Principal
      Prepayment:
      Any
      Mortgagor payment of principal (other than a Balloon Payment) or other recovery
      of principal on a Mortgage Loan that is recognized as having been received
      or
      recovered in advance of its scheduled Due Date and applied to reduce the
      principal balance of the Mortgage Loan in accordance with the terms of the
      Mortgage Note.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

     

    Principal
      Remittance Amount:
      With
      respect any Payment Date, (a) the sum of (i) all principal collected (other
      than Payaheads) or advanced in respect of Scheduled Payments on the Mortgage
      Loans during the related Collection Period (less unreimbursed Advances due
      to
      the Servicer or the Master Servicer with respect to the related Mortgage Loans,
      to the extent allocable to principal), (ii) all Principal Prepayments in full
      or
      in part received during the related Prepayment Period on the Mortgage Loans,
      in
      the case of any Principal Prepayments in full, or during the related Collection
      Period, in the case of any Principal Prepayments in part, (iii) the outstanding
      principal balance of each Mortgage Loan that was purchased from the Trust during
      the related Prepayment Period, (iv) the portion of any Substitution Adjustment
      Amount paid with respect to any Deleted Mortgage Loan during the related
      Prepayment Period, to the extent allocable to principal and (v) all Net
      Liquidation Proceeds, Insurance Proceeds, Subsequent Recoveries and other
      recoveries collected with respect to such Mortgage Loans during the related
      Prepayment Period, to the extent allocable to principal, (b) to the extent
      not reimbursed pursuant to clause (a) above or from amounts allocable to
      interest on the Mortgage Loans, any costs,
      expenses or liabilities reimbursable to the Indenture Trustee, the Owner
      Trustee, the Master Servicer, the Administrator, the Custodian and the Servicer
      to the extent provided in this Agreement or any other Operative Document; and
      to
      the
      extent such amounts allocable to interest on the Mortgage Loans are less than
      amounts reimbursable to the Indenture Trustee pursuant to Section 3.8, any
      amounts reimbursable during the related Anniversary Year to the Indenture
      Trustee therefrom and not reimbursed from such amounts allocable to interest
      on
      the Mortgage Loans, or otherwise (provided,
      however,
      that
      such reimbursable amounts from such amounts
      allocable to interest or principal on the Mortgage Loans
      may not
      exceed $200,000 in the aggregate during any Anniversary Year; provided,
      further,
      that in
      the event that the Indenture Trustee incurs reimbursable amounts in excess
      of
      $200,000, it may seek reimbursement from the amounts
      allocable to principal on the Mortgage Loans
      for such
      amounts in subsequent Anniversary Years, but in no event shall such amounts
      allocable to interest and principal on the Mortgage Loans
      in the
      aggregate be reduced in respect of reimbursements to the Indenture Trustee
      in
      excess of $200,000 per Anniversary Year; and provided,
      further,
      that
      notwithstanding the foregoing, costs and expenses incurred by the Indenture
      Trustee pursuant to Section 7.1 in connection with any transfer of servicing
      shall be excluded from the $200,000 per Anniversary Year limit on reimbursable
      amounts). [On
      the
      first Payment Date after the end of the Revolving Period, the Principal
      Remittance Amount shall include amounts allocable to principal that were
      deposited in the Revolving Account during the Revolving Period and not withdrawn
      to purchase Additional Mortgage Loans.] [On the first Payment Date after the
      end
      of the Pre-Funding Period, the Principal Remittance Amount shall include amounts
      allocable to principal that were deposited in the Pre-Funding Account during
      the
      Pre-Funding Period and not withdrawn to purchase Subsequent Mortgage
      Loans.]

     

    Private
      Note:
      Not
      applicable.

     

    Proceeding:
      Any
      suit in equity, action at law or other judicial or administrative
      proceeding.

     

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

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

     

    Prospectus:
      The
      prospectus supplement dated
      [          ],
      20[  ], together with the accompanying prospectus dated
      [          ],
      20[  ], relating to the Class
      [A], Class [M] and Class [B] Notes.

     

    Purchase
      Price:
      With
      respect to the purchase of a Mortgage Loan or related REO Property pursuant
      to
      this Agreement, an amount equal to the sum of (a) 100% of the unpaid principal
      balance of such Mortgage Loan, (b) accrued interest thereon at the applicable
      Mortgage Rate, from the date as to which interest was last paid to (but not
      including) the Due Date in the Collection Period immediately preceding the
      related Payment Date, plus any unreimbursed Servicing Advances, (c) the amount
      of any costs and damages incurred by the Trust in connection with any violation
      of any applicable federal, state or local predatory or abusive lending law
      in
      connection with the origination of such Mortgage Loan, (d) the fair market
      value
      of all other property being purchased, (e) any outstanding amounts due to the
      Master Servicer, the Administrator, the Custodian, the Owner Trustee and the
      Indenture Trustee and (f) [any Swap Termination Payment payable to the Swap
      Counterparty]. The Servicer (or any other party making Advances, if applicable)
      shall be reimbursed from the Purchase Price for any Mortgage Loan or related
      REO
      Property for any Advances made or other amounts advanced with respect to such
      Mortgage Loan that are reimbursable to the Servicer under this Agreement (or
      to
      the Master Servicer hereunder), together with any accrued and unpaid
      compensation due to the Servicer or the Master Servicer hereunder.

     

    Qualified
      GIC:
      A
      guaranteed investment contract or surety bond providing for the investment
      of
      funds in the Note Payment Account and insuring a minimum, fixed or floating
      rate
      of return on investments of such funds, which contract or surety bond
      shall:

     

    (xvii) be
      an
      obligation of an insurance company or other corporation whose long-term debt
      is
      rated by each Rating Agency in one of its two highest rating categories or,
      if
      such insurance company has no long-term debt, whose claims paying ability is
      rated by each Rating Agency in one of its two highest rating categories, and
      whose short-term debt is rated by each Rating Agency in its highest rating
      category;

     

    (xviii) provide
      that the Administrator may exercise all of the rights under such contract or
      surety bond without the necessity of taking any action by any other
      Person;

     

    (xix) provide
      that if at any time the then current credit standing of the obligor under such
      guaranteed investment contract is such that continued investment pursuant to
      such contract of funds would result in a downgrading of any rating of the Notes,
      the Administrator shall terminate such contract without penalty and be entitled
      to the return of all funds previously invested thereunder, together with accrued
      interest thereon at the interest rate provided under such contract to the date
      of delivery of such funds to the Indenture Trustee;

     

    (xx) provide
      that the Administrator’s interest therein shall be transferable to any successor
      administrator hereunder; and

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

     

    (xxi) provide
      that the funds reinvested thereunder and accrued interest thereon be returnable
      to Note Payment Account, as the case may be, not later than the Business Day
      prior to any Payment Date.

     

    Qualified
      Insurer:
      An
      insurance company duly qualified as such under the laws of the states in which
      the related Mortgaged Properties are located, duly authorized and licensed
      in
      such states to transact the applicable insurance business and to write the
      insurance provided. 

     

    [Qualified
      REIT Subsidiary:
      A
      direct or indirect 100% owned subsidiary of a REIT that satisfies the
      requirements of Section 856(i) of the Code.]

     

    Qualified
      Substitute Mortgage Loan:
      In the
      case of a Mortgage Loan substituted for a Deleted Mortgage Loan pursuant to
      the
      terms of this Agreement, a Mortgage Loan that, on the date of such substitution,
      (i) has an outstanding Scheduled Principal Balance (or in the case of a
      substitution of more than one mortgage loan for a Deleted Mortgage Loan, an
      aggregate Scheduled Principal Balance), after application of all Scheduled
      Payments due during or prior to the month of substitution, not in excess of,
      and
      not more than 5.0% less than, the outstanding Scheduled Principal Balance of
      the
      Deleted Mortgage Loan as of the Due Date in the calendar month during which
      the
      substitution occurs, (ii) has a Mortgage Rate not less than the Mortgage Rate
      on
      the Deleted Mortgage Loan, (iii) if applicable, has a maximum Mortgage Rate
      not
      less than the maximum Mortgage Rate on the Deleted Mortgage Loan, (iv) has
      a
      minimum Mortgage Rate not less than the minimum Mortgage Rate of the Deleted
      Mortgage Loan, (v) has a gross margin equal to or greater than the gross margin
      of the Deleted Mortgage Loan, (vi) has a next adjustment date not later than
      the
      next adjustment date on the Deleted Mortgage Loan, (vii) has the same Due Date
      as the Deleted Mortgage Loan, (viii) has a remaining term to maturity not
      greater than (and not more than one year less than) that of the Deleted Mortgage
      Loan, (ix) is current as of the date of substitution, (x) has a Loan-to-Value
      Ratio as of the date of substitution equal to or lower than the Loan-to-Value
      Ratio of the Deleted Mortgage Loan as of such date, (xi) has been underwritten
      in accordance with substantially the same underwriting criteria and guidelines
      as the Deleted Mortgage Loan, (xii) has a risk grading determined by the Seller
      at least equal to the risk grading assigned on the Deleted Mortgage Loan,
      (xiii) is secured by the same property type as the Deleted Mortgage Loan,
      (xiv) conforms to each representation and warranty applicable to the Deleted
      Mortgage Loan made in the Sale Agreement, (xv) has the same or higher lien
      position as the Deleted Mortgage Loan, (xvi) is covered by a primary mortgage
      insurance policy if the Deleted Mortgage Loan was so covered and
      (xvii) contains provisions covering the payment of Prepayment Penalties by
      the Mortgagor for early prepayment of the Mortgage Loan at least as favorable
      as
      the Deleted Mortgage Loan. In the event that one or more mortgage loans are
      substituted for one or more Deleted Mortgage Loans, the amounts described in
      clause (i) hereof shall be determined on the basis of aggregate Scheduled
      Principal Balances, the Mortgage Rates described in clause (ii) hereof shall
      be
      determined on the basis of weighted average Mortgage Rates, the risk gradings
      described in clause (xii) hereof shall be satisfied as to each such mortgage
      loan, the terms described in clause (viii) hereof shall be determined on the
      basis of weighted average remaining term to maturity, the Loan-to-Value Ratios
      described in clause (x) hereof shall be satisfied as to each such mortgage
      loan
      and, except to the extent otherwise provided in this sentence, the
      representations and warranties described in clause (xiv) hereof must be
      satisfied as to each Qualified Substitute Mortgage Loan or in the aggregate,
      as
      the case may be.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    

     

    Rating
      Agency:
      Each of
      [Moody’s], [S&P], [Fitch] and [DBRS].

     

    Rating
      Agency Condition:
      With
      respect to any action to which the Rating Agency Condition applies, that each
      Rating Agency shall have been given 10 days (or such shorter period as is
      acceptable to each Rating Agency) prior notice thereof and that each Rating
      Agency shall have notified the Depositor, the Issuer and the Indenture Trustee
      in writing that such action will not result in a reduction or withdrawal of
      the
      then current rating of the rated Notes.

     

    Realized
      Loss:
      With
      respect to each Liquidated Mortgage Loan, an amount equal to (i) the unpaid
      principal balance of such Mortgage Loan as of the date of liquidation,
minus
      (ii)
      Liquidation Proceeds received, to the extent allocable to principal, net of
      amounts that are reimbursable therefrom to the Servicer with respect to such
      Mortgage Loan (other than Advances of principal) including expenses of
      liquidation, and with respect to a Mortgage Loan that is not a liquidated
      Mortgage Loan, any amount of principal that the Mortgagor is no longer required
      to pay. In determining whether a Realized Loss is a Realized Loss of principal,
      Liquidation Proceeds shall be allocated, first,
      to
      payment of expenses related to such Liquidated Mortgage Loan, then
      to
      accrued unpaid interest, and finally
      to
      reduce the principal balance of the Mortgage Loan.

     

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

     

    Record
      Date:
      With
      respect to the LIBOR Notes and any Payment Date, the close of business on the
      Business Day immediately preceding such Payment Date. With respect to the
      Ownership Certificate and any Payment Date, the close of business on the last
      Business Day of the month immediately preceding the month in which the Payment
      Date occurs (or, in the case of the first Payment Date, the Closing
      Date).

     

    Regulation
      AB:
      Regulation AB promulgated under the Securities Act and the Exchange Act, as
      the
      same may be amended from time to time; and all references to any rule, item,
      section or subsection of, or definition or term contained in, Regulation AB
      mean
      such rule, item, section, subsection, definition or term, as the case may be,
      or
      any successor thereto, in each case as the same may be amended from time to
      time.

     

    [REIT:
      A real
      estate investment trust within the meaning of sections 856 and 857 of the
      Code.]

     

    Relief
      Act:
      The
      Servicemembers Civil Relief Act, as such may be amended from time to time,
      and
      any similar state or local laws.

     

    Relief
      Act Shortfall:
      With
      respect to any Mortgage Loan as to which there has been a reduction in the
      amount of interest collectible thereon as a result of application of the Relief
      Act, any amount by which interest collectible on such Mortgage Loan for the
      Due
      Date in the related Collection Period is less than interest accrued thereon
      for
      the applicable one-month period at the Net Mortgage Rate without giving effect
      to such reduction.

     

    
      
        
        

      

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

     

    Required
      Insurance Policies:
      Any
      Insurance Policy required to be maintained by the Servicer under this
      Agreement.

     

    Required
      Recordation States:
      The
      states of Florida and Mississippi.

     

    Residual
      Holder:
      The
      meaning ascribed to the term “Certificateholder” in the Trust
      Agreement.

     

    Responsible
      Officer:
      When
      used with respect to the Indenture Trustee or the Administrator, any Vice
      President, Assistant Vice President, the Secretary, any assistant secretary
      or
      any officer, working in its Corporate Trust Office and having responsibility
      for
      the administration of this Agreement, and any other officer to whom a matter
      arising under this Agreement may be referred. 

     

    Restricted
      Security:
      Any
      [Class N Note] or Ownership Certificate.

     

    [Revolving
      Account:
      The
      revolving account maintained by the Administrator in which Revolving Deposits
      are deposited by the Administrator to be used to acquire Additional Mortgage
      Loans during the Revolving Period.]

     

    [Revolving
      Amount:
      With
      respect to each Payment Date during the Revolving Period, the total amount
      of
      Revolving Deposits deposited in the Revolving Account on such Payment
      Date.]

     

    [Revolving
      Credit Loan:
      An
      individual Revolving Credit Loan that is the subject of this Agreement, each
      Revolving Credit Loan subject to this Agreement being identified on the
      Revolving Credit Loan Schedule, which Revolving Credit Loan includes without
      limitation the Revolving Credit Loan documents, the monthly payments, Principal
      Prepayments, Liquidation Proceeds, condemnation proceeds, Insurance Proceeds,
      REO disposition proceeds, and all other rights, benefits, proceeds and
      obligations arising from or in connection with such Revolving Credit
      Loan.]

     

    [Revolving
      Credit Loan Schedule:
      A
      schedule of the Revolving Credit Loans setting forth information with respect
      to
      such Revolving Credit Loans (including any MERS identification number (if
      available) with respect to each MERS Mortgage Loan and a Prepayment Penalty
      schedule), attached hereto as [Schedule I], which may be amended from time
      to
      time to include additional mortgage loans which are transferred to the Servicer
      by a predecessor Servicer.]

     

    [Revolving
      Deposits:
      With
      respect to any Payment Date during the Revolving Period, all payments that
      would
      otherwise be made to Noteholders in respect of principal [and excess interest]
      that is deposited in the Revolving Account on such Payment Date.]

     

    
      
        
        

      

      
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    Rolling
      Three Month Delinquency Rate:
      With
      respect to any Payment Date, the fraction, expressed as a percentage, equal
      to
      the average of the Delinquency Rates for each of the three (or one and two,
      in
      the case of the first and second Payment Dates, respectively) immediately
      preceding calendar months.

     

    S&P:
      Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
      Inc., or any successor in interest.

     

    Sale
      Agreement:
      The
      Sale Agreement dated as of the Cut-off Date between the Depositor and Seller,
      and acknowledged and agreed to by AMC, for the sale of the Mortgage
      Loans.

     

    Scheduled
      Payment:
      Each
      scheduled payment of principal and interest (or of interest only, if applicable)
      to be paid by the Mortgagor on a Mortgage Loan, as reduced (except where
      otherwise specified herein) by the amount of any related Debt Service Reduction
      (excluding all amounts of principal and interest that were due on or before
      the
      Cut-off Date whenever received) and, in the case of an REO Property, an amount
      equivalent to the Scheduled Payment that would have been due on the related
      Mortgage Loan if such Mortgage Loan had remained in existence.

     

    Scheduled
      Principal Balance:
      With
      respect to (i) any Mortgage Loan as of any Payment Date, the principal balance
      of such Mortgage Loan at the close of business on the Cut-off Date [(with
      respect to the Initial Mortgage Loans) or Subsequent Cut-off Date (with respect
      to the Subsequent mortgage Loans),] after giving effect to principal payments
      due on or before the Cut-off Date [or Subsequent Cut-off Date, as applicable],
      whether or not received, less an amount equal to principal payments due after
      the Cut-off Date [or Subsequent Cut-off Date, as applicable], and on or before
      the Due Date in the related Collection Period, whether or not received from
      the
      Mortgagor or advanced by or on behalf of the Servicer, and all amounts allocable
      to unscheduled principal payments (including Principal Prepayments, Liquidation
      Proceeds, Insurance Proceeds and condemnation proceeds, in each case to the
      extent identified and applied prior to or during the related Prepayment Period)
      and (ii) any REO Property as of any Payment Date, the Scheduled Principal
      Balance of the related Mortgage Loan on the Due Date immediately preceding
      the
      date of acquisition of such REO Property by or on behalf of the Indenture
      Trustee (reduced by any amount applied as a reduction of principal on the
      Mortgage Loan). With respect to any Mortgage Loan as of the Cut-off Date [or
      Subsequent Cut-off Date, as applicable], as specified in the Mortgage Loan
      Schedule.

     

    SEC
      Rules:
      As
      defined in Section 6.5.

     

    Securities
      Act:
      The
      Securities Act of 1933, as amended.

     

    Securities
      Intermediary:
      The
      Person acting as Securities Intermediary under this Agreement (which is
      [          ]), its successor
      in interest and any successor Securities Intermediary appointed pursuant to
      Section 4.6.

     

    Security:
      Any
      Note or Ownership Certificate.

     

    
      
        
        

      

      
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    Security
      Entitlement:
      The
      meaning specified in Section 8-102(a)(17) of the New York UCC.

     

    Securityholder:
      The
      meaning provided in the definition of “Holder.”

     

    Seller:
      [Aegis
      REIT Corporation] [Aegis Mortgage Corporation] or any successor in
      interest.

     

    Senior
      Note:
      Any
Class
      [A]
Note.

     

    Senior
      Enhancement Percentage:
      With
      respect to any Payment Date, the fraction, expressed as a percentage, the
      numerator of which is the amount, if any, by which (a) the sum of the aggregate
      Class Principal Amount of the Class [M] and Class [B] Notes and the
      Overcollateralization Amount (which amount, for purposes of this definition
      only, shall not be less than zero) exceeds (b) the Total Principal Deficiency
      Amount, in each case after giving effect to payments on such Payment Date,
      and
      the denominator of which is the Pool Balance for such Payment Date.

     

    Senior
      Principal Payment Amount:
      With
      respect to any Payment Date , the amount, if any, by which (x) the
      aggregate Class Principal Amount of the Class
      [A]
Notes
      immediately prior to such Payment Date exceeds (y) the Senior Target
      Amount.

     

    Senior
      Target Amount:
      With
      respect to each Payment Date, an amount equal to the lesser of (a) the product
      of (i) [          ]% and
      (ii) the Pool Balance for such Payment Date and (b) the amount, if any, by
      which
      (i) the Pool Balance for such Payment Date exceeds (ii) 0.50% of the Cut-off
      Date Balance.

     

    Servicer:
      [          ] or any successor
      in interest, or if any successor servicer shall be appointed as herein provided,
      then such successor servicer.

     

    Servicer
      Event of Default:
      Any one
      of the events, conditions or circumstances enumerated in Section
      7.1(a).

     

    Servicer
      Remittance Date:
      The day
      in each calendar month on which the Servicer is required to remit payments
      to
      the Collection Account, which is the 19th
      day of
      each calendar month no later than 1:00 p.m. (New York City time) (or, if such
      19th
      day is
      not a Business Day, the immediately preceding Business Day).

     

    [Servicer
      Termination Event:
      So long
      as [          ] (or an
      Affiliate of [          ])
      remains the Servicer, a Servicer Termination Event shall have occurred if either
      (a) the Delinquency Rate for any month exceeds 20.00 percent or (b) Cumulative
      Realized Losses as of any date exceed
      [          ]
      percent.]

     

    
      
        
        

      

      
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    Servicing
      Advances:
      All
      customary, reasonable and necessary “out of pocket” costs and expenses other
      than Delinquency Advances (including reasonable attorneys’ fees and
      disbursements) incurred in the performance by the Servicer of its servicing
      obligations, including, but not limited to, the cost of (a) the preservation,
      inspection, restoration and protection of the Mortgaged Property, (b) any
      enforcement or administrative or judicial proceedings, including foreclosures,
      (c) the management and liquidation of the Mortgaged Property if the Mortgaged
      Property is acquired in satisfaction of the Mortgage, (d) taxes, assessments,
      water rates, sewer rents and other charges which are or may become a lien upon
      the Mortgaged Property, and Bulk PMI Policy premiums and fire and hazard
      insurance coverage, (e) any losses sustained by a Servicer with respect to
      the
      liquidation of the Mortgaged Property and (f) executing and recording
      instruments of satisfaction, deeds of reconveyance or Assignments to the extent
      not recovered from the related borrower or otherwise payable under this
      Agreement.

     

    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:
      With
      respect to any Payment Date and each Mortgage Loan, an amount equal to the
      product of (a) one-twelfth of the Servicing Fee Rate and (b) the outstanding
      principal balance of such Mortgage Loan as of the first day of the related
      Collection Period.

     

    Servicing
      Fee Rate:
      [0.50]%
      per annum.

     

    Servicing
      Officer:
      Any of
      the President, any Vice President (however denominated), or Assistant Vice
      President of the Servicer or Master Servicer, as applicable, involved in, or
      responsible for, the administration and servicing or master servicing, if
      applicable, of one or more Mortgage Loans at the time of performance of the
      relevant activity of the Servicer or Master Servicer.

     

    Servicing
      Standard:
      The
      Servicer shall service and administer the Mortgage Loans (a) in the same manner
      in which, and with the same care, skill, prudence and diligence with which,
      the
      Servicer generally services and administers similar mortgage loans with similar
      mortgagors (i) for other third parties, giving due consideration to customary
      and usual standards of practice of prudent institutional residential mortgage
      lenders servicing their own loans or (ii) held in the Servicer’s own portfolio,
      whichever standard is higher; (b) with a view to the maximization of recoveries
      with respect to such Mortgage Loans on a net present value basis and the best
      interests of the Trust and any Person to which Mortgage Loans may be transferred
      by the Indenture Trustee; (c) without regard to (i) any relationship that the
      Servicer or any Affiliate thereof may have with the related Mortgagor or any
      other party to the transaction, (ii) the right of the Servicer to receive
      compensation or other fees for its services rendered pursuant to this Agreement,
      (iii) the obligation of the Servicer to make Servicing Advances, (iv) the
      ownership, servicing or management by the Servicer or any Affiliate thereof
      for
      others of any other mortgage loans or mortgaged properties, and (v) any debt
      that the Servicer or any Affiliate thereof has extended to any Mortgagor or
      any
      affiliate of such Mortgagor; and (d) in accordance with applicable federal,
      state and local laws, rules and regulations.

     

    Special
      Servicer:
      The
      person designated by the Seller (with the prior consent of the Indenture Trustee
      and the Master Servicer) to assume the servicing of Distressed Mortgage Loans
      pursuant to Section 3.22 hereof.

     

    [Specially
      Serviced Revolving Credit Loan:
      A
      Revolving Credit Loan as to which a Servicing Event (as defined in Section
      3.11[(n)]) has occurred and is continuing.]

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    

     

    Startup
      Day:
      The day
      designated as such in the Preliminary Statement.

     

    Stepdown
      Date:
      The
      earlier to occur of (a) the Payment Date on which the aggregate Class Principal
      Amount of the Senior Notes has been reduced to zero; and (b) the later to occur
      of (x) the Payment Date in
      [          ] 20[  ]
      and (y) the first Payment Date on which the Senior Enhancement Percentage
      (calculated for this purpose after
      giving
      effect to payments or other recoveries in respect of the Mortgage Loans during
      the related Collection Period but before
      giving
      effect to payments on the Notes on such Payment Date) is greater than or equal
      to [          ]%.

     

    Subcontractor:
      Any
      vendor, subcontractor or other Person that is not responsible for the overall
      servicing (as “servicing” is commonly understood by participants in the
      mortgage-backed securities market) of Mortgage Loans but performs one or more
      discrete functions identified in Item 1122(d) of Regulation AB with respect
      to
      Mortgage Loans under the direction or authority of the Servicer or a
      Subservicer.

     

    Subordinate
      Note:
      Any
      Class [M] or Class [B] Note.

     

    [Subsequent
      Cut-off Date:
      The
      date specified as the Cut-off Date with respect to a [Subsequent Mortgage Loan]
      [Additional Mortgage Loan] in the related Transfer Supplement, which shall
      be no
      later than [     ].]

     

    [Subsequent
      Mortgage Loan:
      A
      Mortgage Loan that is conveyed as of the Transfer Date to the Trust by the
      Depositor pursuant to a Transfer Supplement to the Sale Agreement, which
      Mortgage Loan shall be identified in such Transfer Supplement as a Subsequent
      Mortgage Loan and added by the Depositor to the Mortgage Loan
      Schedule.]

     

    Subsequent
      Recovery:
      With
      respect to any Mortgage Loan, any collection or other recovery of amounts owed
      thereunder after such Mortgage Loan becomes a Liquidated Mortgage
      Loan.

     

    Subservicer:
      Aegis
      Mortgage Corporation or any successor in interest.

     

    Substitution
      Adjustment Amount:
      The
      amount, if any, by which the Scheduled Principal Balance of a Deleted Mortgage
      Loan exceeds the Scheduled Principal Balance of the related Qualified Substitute
      Mortgage Loan, or aggregate Scheduled Principal Balance, if applicable,
plus
      unpaid
      interest thereon, and any related unpaid Advances or unpaid Servicing Fees,
      and
      the amount of any costs and damages incurred by the Trust in connection with
      any
      violation of any applicable federal, state or local predatory or abusive lending
      laws in connection with the origination of such Deleted Mortgage
      Loan.

     

    [Swap
      Agreement:
      The
      interest rate swap agreement entered into by the Trust, which agreement provides
      for a Net Swap Payment to be paid pursuant to the conditions provided therein,
      together with any schedules, confirmations or other agreements relating thereto,
      attached hereto as Exhibit H.]

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    

     

    [Swap
      Counterparty:
      The
      counterparty to the Trust either (a) entitled to receive payments from the
      Trust
      or (b) required to make payments to the Trust, in either case pursuant to the
      terms of the Swap Agreement, and any successor in interest or assign. Initially,
      the Swap Counterparty shall be Credit Suisse First Boston
      International.]

     

    [Swap
      Counterparty Trigger Event:
      A Swap
      Counterparty Trigger Event shall have occurred if any of a Swap Default with
      respect to which the Swap Counterparty is a Defaulting Party, a Termination
      Event with respect to which the Swap Counterparty is the sole Affected Party
      or
      an Additional Termination Event with respect to which the Swap Counterparty
      is
      the sole Affected Party has occurred.]

     

    [Swap
      Default:
      Any of
      the circumstances constituting an “Event of Default” under the Swap
      Agreement.]

     

    Swap
      LIBOR:
      With
      respect to any Payment Date (and the related Accrual Period), and as calculated
      by the Swap Counterparty, the product of (i) LIBOR as defined in the Swap
      Agreement, (ii) two, and (iii) the quotient of (a) the actual number of days
      in
      the accrual period for the LIBOR Notes and (b) 30.

     

    [Swap
      Termination Payment:
      Upon
      the designation of an “Early Termination Date” as defined in the Swap Agreement,
      the payment to be made by the Trust to the Swap Counterparty, or by the Swap
      Counterparty to the Trust, as applicable, pursuant to the terms of the Swap
      Agreement.]

     

    Target
      Amount:
      With
      respect to any Payment Date, an amount equal to the Pool Balance for such
      Payment Date minus
      the
      Targeted Overcollateralization Amount for such Payment Date.

     

    Targeted
      Overcollateralization Amount:
      With
      respect to any Payment Date (x) prior to the Stepdown Date,
      $[          ],
      (y) on
      or after the Stepdown Date, and provided
      that an
      Overcollateralization Trigger Event is not in effect, the greater of
      (i) $[          ] and
      (ii) [          ]% of the Pool
      Balance for such Payment Date and (z) on or after the Stepdown Date and
provided
      that an
      Overcollateralization Trigger Event is in effect, the Targeted
      Overcollateralization Amount for the immediately preceding Payment
      Date.

     

    Telerate
      Page 3750:
      The
      display currently so designated as “Page 3750” on the Bridge Telerate Service
      (or such other page selected by the Servicer as may replace Page 3750 on that
      service for the purpose of displaying daily comparable rates on
      prices).

     

    [Termination
      Event:
      As
      defined in the Swap Agreement.]

     

    Title
      Insurance Policy:
      A title
      insurance policy maintained with respect to a Mortgage Loan.

     

    Total
      Remittance Amount:
      With
      respect to any Payment Date, the sum of (i) the Interest Remittance Amount
      for such date, (ii) the Principal Remittance Amount for such date, and (iii)
      all
      Prepayment Penalties collected during the related Prepayment Period or
      Collection Period, as applicable.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    

     

    Total
      Principal Deficiency Amount:
      With
      respect to any Payment Date, the excess, if any, of the aggregate Class
      Principal Amount of the LIBOR Notes after giving effect to payments on such
      Payment Date over the Pool Balance as of the last day of the related Collection
      Period.

     

    [Transfer
      Date:
      Any
      date during the [Pre-Funding Period] [Revolving Period] on which [Subsequent
      Mortgage Loans] [Additional Mortgage Loans] are conveyed by the Depositor to
      the
      Trust pursuant to Section [     ], as specified in the
      applicable Transfer Supplement.

     

    [Transfer
      Price:
      With
      respect to any [Subsequent Mortgage Loan] [Additional Mortgage Loan], the price
      specified in the Transfer Supplement which shall be no less than the outstanding
      principal balance of such [Subsequent Mortgage Loan] [Additional Mortgage Loan]
      as of the Subsequent Cut-off Date specified in the Transfer
      Supplement.]

     

    [Transfer
      Supplement:
      With
      respect to each sale of [Subsequent Mortgage Loans] [Additional Mortgage Loans]
      from the Seller to the Depositor pursuant to the Mortgage Loan Purchase
      Agreement, the transfer supplement entered into between the Seller and the
      Depositor, substantially in the form of Exhibit [   ] to the Sale
      Agreement.

     

    Trigger
      Event:
      A
      Trigger Event shall have occurred with respect to any Payment Date if (i) a
      Delinquency Event or (ii) an Overcollateralization Cumulative Loss Trigger
      Event
      shall have occurred.

     

    Trust:
      The
      Issuer.

     

    Trust
      Accounts:
      Each of
      the Note Payment Account and the Certificate Distribution Account.

     

    Trust
      Account Property:
      The
      Trust Accounts, all amounts and investments held from time to time in the Trust
      Accounts (whether in the form of deposit accounts, physical property, book-entry
      securities, uncertificated securities, securities entitlements, investment
      property or otherwise) and all proceeds of the foregoing.

     

    Trust
      Agreement:
      The
      trust agreement dated as of
      [          ],
      20[  ],
      among
      the Depositor, the Administrator and the Owner Trustee, as such may be amended
      or supplemented from time to time.

     

    
      
        
        

      

      
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    Trust
      Estate:
      The
      assets subject to this Agreement and the Indenture, transferred by the Depositor
      to the Issuer and pledged by the Issuer to the Indenture Trustee, which assets
      consist of all accounts, accounts receivable, contract rights, general
      intangibles, chattel paper, instruments, documents, money, deposit accounts,
      certificates of deposit, goods, notes, drafts, letters of credit, advices of
      credit, investment property, uncertificated securities and rights to payment
      of
      any and every kind consisting of, arising from or relating to any of the
      following: (a) the Mortgage Loans (and all Qualified Substitute Mortgage
      Loans substituted therefor) exclusive of the servicing rights related thereto,
      together with the Mortgage Files relating to such Mortgage Loans, and all
      Scheduled Payments due after the Cut-off Date, all Principal Prepayments
      received with respect to the Mortgage Loans paid by the respective borrower
      after the Cut-off Date and any Prepayment Penalties due after the Cut-off Date
      and proceeds of the conversion, voluntary or involuntary, of the foregoing;
      (b)
      any Insurance Proceeds, REO Property, Liquidation Proceeds and other recoveries;
      (c) the Custodial Account, the Collection Account, the Certificate Distribution
      Account, the Note Payment Account, [the Pre-Funding Account, the Capitalized
      Interest Account] and any Escrow Account and all amounts deposited therein
      pursuant to the applicable provisions of this Agreement; (d) any Insurance
      Policies; (e) the rights of the Depositor under the Sale Agreement; (f) [the
      rights of the Trust under [the Swap Agreement] and [the Cap Agreements] and
      all
      amounts received from [the Swap Counterparty,] [the Cap Counterparty] and [the
      Class N Cap Counterparty] thereunder (to the extent provided herein)]; and
      (g)
      all income, revenues, issues, products, revisions, substitutions, replacements,
      profits, rents and all cash and non-cash proceeds of the foregoing.

     

    UCC:
      The
      Uniform Commercial Code as in effect in any applicable jurisdiction from time
      to
      time.

     

    Underwriters:
      [          ],
      [          ],
      [          ] and
      [          ].

     

    Voting
      Interests:
      The
      portion of the voting rights of all the Notes that is allocated to any Note
      for
      purposes of the voting provisions of this Agreement. At all times during the
      term of this Agreement, 98% of all Voting Interests shall be allocated to the
      Class [A], Class [M] and Class [B] Notes. Voting Interests shall be allocated
      among such Notes based on the product of (i) 98% and (ii) the fraction,
      expressed as a percentage, the numerator of which is the aggregate Class
      Principal Amount of all Notes then outstanding and the denominator of which
      is
      the Pool Balance then outstanding. At all times during the term of this
      Agreement, 2% of all Voting Interests shall be allocated to the Ownership
      Certificate.

     

    
      	 	
              Section
                1.2

            	
              Calculations
                Respecting Mortgage Loans. 

            

    

     

    Calculations
      required to be made pursuant to this Agreement with respect to any Mortgage
      Loan
      in the Trust shall be made based upon current information as to the terms of
      the
      Mortgage Loans and reports of payments received from the Mortgagor on such
      Mortgage Loans and payments to be made to the Master Servicer and then to the
      Administrator as supplied to the Master Servicer by the Servicer and to the
      Administrator by the Master Servicer. The Administrator shall not be required
      to
      recompute, verify or recalculate the information supplied to it by the Master
      Servicer or [the Credit Risk Manager].

     

    
      	 	
              Section
                1.3

            	
              Calculations
                Respecting Accrued Interest. 

            

    

     

    Accrued
      interest, if any, on any LIBOR Note shall be calculated based upon a 360-day
      year and the actual number of days in each Accrual Period. 

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      II

     

    CONVEYANCE
      OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES

     

    Section
      2.1     Creation
      and Declaration of Trust Estate; Conveyance of Mortgage Loans.

     

    (a) [Initial
      Mortgage Loans] As of the Closing Date, in consideration of the Issuer’s
      delivery of the Notes and the Ownership Certificate to the Depositor or its
      designee, and concurrently with the execution and delivery of this Agreement,
      the Depositor hereby sells, conveys, assigns and transfers to the Issuer,
      without recourse, subject to Section 2.3, in trust, and for the exclusive
      benefit of the Securityholders as their respective interests may appear, all
      the
      Depositor’s right, title and interest in and to any and all benefits accruing to
      the Depositor from: (i) the Mortgage Loans (and all Qualified Substitute
      Mortgage Loans substituted therefor) exclusive of the servicing rights related
      thereto, in respect of which the Depositor is causing to be delivered to the
      Indenture Trustee (or the Custodian) herewith the related Mortgage Files, and
      the Depositor’s interest in any collateral pledged to secure a Mortgage Loan,
      and all Scheduled Payments due after the Cut-off Date and all Principal
      Prepayments received with respect to the Mortgage Loans paid by the borrower
      after the Cut-off Date and proceeds of the conversion, voluntary or involuntary,
      of the foregoing; (ii) each Insurance Policy; (iii) the Sale Agreement (and
      delegates its obligations thereunder) and (iv) all proceeds of any of the
      foregoing (including, but not limited to, all proceeds of any mortgage
      insurance, hazard insurance, or title insurance policy relating to the Mortgage
      Loans, cash proceeds, accounts, accounts receivable, notes, drafts, acceptances,
      chattel paper, checks, deposit accounts, rights to payment of any and every
      kind, and other forms of obligations and receivables, which at any time
      constitute all or part or are included in the proceeds of any of the foregoing);
      and the Indenture Trustee declares that, subject to the review provided for
      in
      Section 2.2, it has received and shall hold the Trust Estate, as Indenture
      Trustee, in trust, for the benefit and use of the Noteholders and for the
      purposes and subject to the terms and conditions set forth in this Agreement,
      and, concurrently with such receipt, the Issuer has issued and delivered the
      Notes and the Ownership Certificate to or upon the order of the Depositor,
      in
      exchange for the Mortgage Loans and the other property of the Trust
      Estate.

     

    [[Subsequent
      Mortgage Loans] [Additional Mortgage Loans].
      On each
      Transfer Date occurring during the [Pre-Funding Period] [Revolving Period],
      provided that each condition set forth in this Section 2.1(a) is satisfied,
      the
      Depositor shall convey to the Issuer, and the Issuer shall purchase pursuant
      to
      this Section 2.1(a), all [Subsequent Mortgage Loans] [Additional Mortgage Loans]
      which satisfy the criteria set forth in this Section 2.1(a) then offered for
      sale by the Depositor; provided,
      however,
      that
      the related aggregate Transfer Price shall not exceed the [Pre-Funding Amount]
      [Revolving Amount].

     

    Subject
      to the conditions set forth in this Section 2.1(a), in consideration of the
      Administrator’s delivery on the related Transfer Date to the Depositor or its
      designee, or upon the order of the Depositor, of the Transfer Price for the
      related [Subsequent Mortgage Loans] [Additional Mortgage Loans] from amounts
      on
      deposit in the related [Pre-Funding Account] [Revolving Amount], the Depositor
      shall, on each Transfer Date, sell, transfer, assign, set over and otherwise
      convey to the Issuer, without recourse, but subject to the other terms and
      provisions of this Agreement, all of the right, title and interest of the
      Depositor in and to each [Subsequent Mortgage Loan] [Additional Mortgage Loan]
      (including all interest and principal thereon received after the related
      Subsequent Cut-off Date specified in the Transfer Supplement) identified in
      the
      Addition Notice delivered by the Depositor on such Transfer Date and all items
      in the related Mortgage File. In connection therewith, the Depositor shall
      amend
      the Mortgage Loan Schedule to reflect the inclusion of such [Subsequent Mortgage
      Loan] [Additional Mortgage Loan] in the Mortgage Pool as part of the assets
      of
      the Trust Estate. The Depositor shall promptly deliver to the Indenture Trustee,
      the Custodian, the Administrator and the Master Servicer a copy of the Mortgage
      Loan Schedule as so amended. 

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    

     

    Concurrently
      with the execution and delivery of each Transfer Supplement, the Depositor
      does
      hereby assign to the Issuer all of its rights and interest under the Sale
      Agreement with respect to the [Subsequent Mortgage Loans] [Additional Mortgage
      Loans] added to the Sale Agreement pursuant to such Transfer Supplement, but
      only to the extent assigned under the Sale Agreement. The Issuer hereby accepts
      such assignment, and shall be entitled to exercise all the rights of the
      Depositor under the Sale Agreement as amended by the related Transfer Supplement
      as if, for such purpose, it were the Depositor.

     

    The
      Depositor shall on any Transfer Date transfer to the Issuer the applicable
      [Subsequent Mortgage Loans] [Additional Mortgage Loans] and the other property
      and rights related thereto described in the immediately preceding paragraph,
      as
      applicable, and the Issuer shall purchase such [Subsequent Mortgage Loans]
      [Additional Mortgage Loans], property and rights only upon the satisfaction
      of
      each of the following conditions on or prior to the related Transfer
      Date:

     

    (i)
  [                                                                                           ];

     

    (ii)  [                                                                                           ]; and

     

    (iii)    
      [                                                                                           ].

     

    [To
      be
      added for each transaction with Subsequent Mortgage Loans or Additional Mortgage
      Loans]

     

    [Concurrently
      with the execution of this Agreement, the Swap Agreement and the Cap Agreements
      shall be delivered to the Issuer. In connection therewith, the Depositor hereby
      directs the Issuer to execute and deliver the Swap Agreement and the Cap
      Agreements on behalf of, and for the benefit of, the Securityholders.] Upon
      the
      issuance of the Securities, ownership in the Trust Estate shall be vested in
      the
      Issuer, subject to the lien created by the Indenture Trustee in favor of the
      Indenture Trustee, for the benefit of the Securityholders.

     

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

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    

     

    (b) In
      connection with such transfer, the Depositor has delivered or caused to be
      delivered to the Indenture Trustee (or the Custodian acting on the Indenture
      Trustee’s behalf) for the benefit of the Noteholders the following documents or
      instruments (collectively, the “Mortgage Loan Documents”) with respect to each
      Mortgage Loan so transferred (as to each, a “Mortgage File”):

     

    (i)    (A)
      the
      original Mortgage Note endorsed by manual or facsimile signature to the
      Indenture Trustee or in blank, without recourse, with all intervening
      endorsements showing a complete chain of endorsement from the originator to
      the
      Person endorsing the Mortgage Note (the “Last Endorsee”) (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

     

    (B)
      with
      respect to any Lost Mortgage Note, a lost note affidavit from the Depositor
      stating that the original Mortgage Note was lost or destroyed, together with
      a
      copy of such Mortgage Note;

     

    (ii) except
      with respect to any Cooperative Loan, the original recorded Mortgage or a copy
      of such Mortgage certified by AMC, the Seller, the originating lender,
      settlement agent, or escrow company as being a true and complete copy of the
      Mortgage;

     

    (iii) except
      with respect to any Cooperative Loan and any MERS Mortgage Loans and except
      with
      respect to any Mortgage Loan for which the related Mortgage names the
      originating lender as beneficiary or mortgagee, either (A) a duly executed
      assignment of the Mortgage in blank, or (B) an original recorded assignment
      of
      the Mortgage from the Last Endorsee to the Indenture Trustee or a copy of such
      assignment of Mortgage certified by the Depositor, the originating lender,
      settlement agent, or escrow company as being a true and complete copy thereof
      which in either case may be included in a blanket assignment or assignments;
      

     

    (iv) except
      with respect to any Cooperative Loan and any MERS Mortgage Loans, each interim
      recorded assignment of such Mortgage, or a copy of each such interim recorded
      assignment of Mortgage certified by the Depositor, the originating lender,
      settlement agent, or escrow company as being a true and complete copy thereof;
      

     

    (v) the
      original or copies of each assumption, modification, written assurance or
      substitution agreement, if any;

     

    (vi) except
      with respect to any Cooperative Loan, either the original or duplicate original
      title policy (including all riders thereto) with respect to the related
      Mortgaged Property, if available, provided
      that the
      title policy (including all riders thereto) will be delivered as soon as it
      becomes available, and if the title policy is not available, and to the extent
      required pursuant to the second paragraph below or otherwise in connection
      with
      the rating of the Notes, a written commitment or interim binder or preliminary
      report of the title issued by the title insurance or escrow company with respect
      to the Mortgaged Property; and

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    

     

    (vii) in
      the
      case of a Cooperative Loan, the originals of the following documents or
      instruments (in addition to the documents required by clauses (i) and (iii)
      above):

     

    
      	 	
              (A)

            	
              The
                Cooperative Shares, together with a stock power in
                blank;

            

    

     

    
      	 	
              (B)

            	
              The
                executed Security Agreement;

            

    

     

    
      	 	
              (C)

            	
              The
                executed Proprietary Lease;

            

    

     

    
      	 	
              (D)

            	
              The
                executed Recognition Agreement;

            

    

     

    (E) The
      executed UCC original financing statement with evidence of recording thereon;
      and

     

    (F) Executed
      UCC amendments or other appropriate UCC financing statements required by state
      law, evidencing a complete and unbroken line from the mortgagee to the Indenture
      Trustee (or in blank) with evidence of recording thereon (or in a form suitable
      for recordation).

     

    (viii) [all
      Revolving Credit Loan documents.]

     

    In
      the
      event that with respect to any Mortgage Loan the Depositor cannot deliver (a)
      the original recorded Mortgage or (b) any recorded assignments or interim
      assignments satisfying the requirements of clause (iii) or (iv) above,
      respectively, concurrently with the execution and delivery hereof because such
      document or documents have not been returned from the applicable public
      recording office, the Depositor shall deliver such documents to the Custodian
      on
      behalf of the Indenture Trustee as promptly as possible upon receipt thereof
      and, in any event, within 720 days following the Closing Date [(or, in the
      case
      of [Subsequent] [Additional] Mortgage Loan, the Transfer Date)]. The Depositor
      or the Servicer shall forward or cause to be forwarded to the Custodian on
      behalf of the Indenture Trustee (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 or the Servicer
      to
      the Indenture Trustee or the Custodian. 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 Depositor shall deliver
      to the Indenture Trustee or the Custodian a copy of such Mortgage certified
      (to
      the extent such certification is reasonably obtainable) by such public recording
      office to be a true and complete copy of the original recorded
      Mortgage.

     

    In
      addition, in the event that with respect to any Mortgage Loan the Depositor
      cannot deliver the original or duplicate original lender’s title policy
      (together with all riders thereto), satisfying the requirements of clause (vi)
      above, concurrently with the execution and delivery hereof because the related
      Mortgage or a related assignment has not been returned from the applicable
      public recording office, the Depositor shall promptly deliver to the Custodian
      on behalf of the Indenture Trustee such original or duplicate original lender’s
      title policy (together with all riders thereto) upon receipt thereof from the
      applicable title insurer, and in any event, within 720 days following the
      Closing Date [(or, in the case of [Subsequent] [Additional] Mortgage Loan,
      the
      Transfer Date)]. 

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    

     

    Subject
      to the immediately following sentence, as promptly as practicable subsequent
      to
      the transfer pursuant to clause (a) of this Section 2.1, and in any event within
      30 days thereafter, the Servicer, at the expense of the Depositor, shall as
      to
      any Non-MERS Mortgage Loan with respect to which the Depositor delivers an
      assignment of the Mortgage in blank pursuant to clause (b)(iii)(A) of this
      Section 2.1, (i) complete each such assignment of Mortgage to conform to clause
      (b)(iii)(B) of this Section 2.1, (ii) cause such assignment to be in proper
      form
      for recording in the appropriate public office for real property records, and
      (iii) cause to be delivered for recording in the appropriate public office
      for
      real property records each such assignment of the Mortgages, except that, with
      respect to any assignments of Mortgage as to which the Servicer has not received
      the information required to prepare such assignments in recordable form, the
      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 30 days after receipt thereof. Notwithstanding the foregoing, the
      Servicer need not cause to be recorded any assignment which relates to a
      Non-MERS Mortgage Loan with respect to which the Mortgaged Property is located
      in any state other than the Required Recordation States.

     

    With
      respect to each MERS Mortgage Loan, the Servicer, at the expense of the
      Depositor, shall take such actions as are necessary to cause the Indenture
      Trustee to be clearly identified as the owner of each such Mortgage Loan on
      the
      records of MERS for purposes of the system of recording transfers of beneficial
      ownership of mortgages maintained by MERS. 

     

    In
      the
      case of Mortgage Loans that have been prepaid in full as of the Closing Date
      [(or, in the case of [Subsequent] [Additional] Mortgage Loan, the Transfer
      Date)], the Depositor, in lieu of delivering the above documents to the
      Custodian on behalf of the Indenture Trustee, will deposit in the Custodial
      Account the portion of such payment that is required to be deposited in the
      Custodial Account pursuant to Section 3.5 hereof.

     

    The
      Seller shall at its expense deliver to the Servicer copies of all trailing
      documents required to be included in the Mortgage File at the same time the
      originals or certified copies thereof are delivered to the Custodian on behalf
      of the Indenture Trustee, such documents to include but not be limited to the
      mortgagee policy of title insurance and any mortgage loan documents upon their
      return from the recording office.

     

    Section
      2.2     Acceptance
      by Indenture Trustee of the Trust Estate; Review of
      Documentation.

     

    Subject
      to the provisions of Section 2.1, the Issuer acknowledges receipt of the assets
      transferred by the Depositor of the assets included in the Trust Estate and
      has
      directed that the documents referred to in Section 2.1 and all other assets
      included in the definition of “Trust Estate” be delivered to the Custodian on
      behalf of the Indenture Trustee.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    

     

    The
      Custodian, by execution and delivery, hereof, and on behalf of the Indenture
      Trustee, acknowledges receipt of the documents identified in the initial
      certification in the form annexed hereto as Exhibit A (the “Initial
      Certification”) and the Custodian declares that it holds and will hold such
      documents and the other documents delivered to it constituting the Mortgage
      Files, and that the Custodian holds or will hold such other assets as are
      included in the Trust, in trust for the exclusive use and benefit of all present
      and future Noteholders.

     

    The
      Custodian agrees to execute and deliver on the Closing Date [(or, in the case
      of
      [Subsequent] [Additional] Mortgage Loan, the Transfer Date)] to the Depositor,
      the Seller, the Master Servicer and the Servicer, an Initial Certification
      in
      the form annexed hereto as Exhibit A. Based on the Custodian’s review and
      examination, and only as to the documents identified in such Initial
      Certification and subject to any exceptions noted in the schedule attached
      to
      such certification, the Custodian on behalf of the Indenture Trustee
      acknowledges that such documents appear regular on their face and relate to
      such
      Mortgage Loan. Neither the Indenture Trustee nor the Custodian shall be under
      any duty or obligation to inspect, review or examine said documents,
      instruments, certificates or other papers to determine that the same are
      genuine, enforceable or appropriate for the represented purpose or that they
      have actually been recorded in the real estate records or that they are other
      than what they purport to be on their face.

     

    Not
      later
      than 90 days after the Closing Date [(or, in the case of [Subsequent]
      [Additional] Mortgage Loan, the Transfer Date)], the Custodian shall deliver
      to
      the Depositor, the Seller, the Master Servicer and the Servicer a Final
      Certification in the form annexed hereto as Exhibit B, with any applicable
      exceptions noted thereon. Notwithstanding anything to the contrary contained
      herein, in the event there are exceptions to the Final Certification, the
      Custodian may transmit such exceptions electronically (via email) to the
      Depositor, the Seller, the Master Servicer, the Servicer and the Indenture
      Trustee, subject to the prior approval of the Depositor, the Seller, the Master
      Servicer, the Servicer and the Indenture Trustee.

     

    If,
      in
      the course of such review, the Custodian on behalf of the Indenture Trustee
      finds any document constituting a part of a Mortgage File which does not meet
      the requirements of Section 2.1 hereof (the “Mortgage Loan Document
      Requirements”), the Custodian shall list such as an exception in the Final
      Certification; provided,
      however,
      that
      neither the Indenture Trustee nor the Custodian shall 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 or (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. The Seller shall promptly correct
      or
      cure such defect within 90 days from the date it was so notified of such defect
      and, if the Seller does not correct or cure such defect within such period,
      the
      Seller shall either (a) substitute for the related Mortgage Loan a Qualified
      Substitute Mortgage Loan, which substitution shall be accomplished in the manner
      and subject to the conditions set forth in Section 2.3 hereof, or (b) purchase
      such Mortgage Loan from the Indenture Trustee within 90 days from the date
      the
      Seller was notified of such defect in writing at the Purchase Price of such
      Mortgage Loan; provided,
      however,
      that in
      no event shall such substitution or purchase occur more than 540 days from
      the
      Closing Date, except that if the substitution or purchase of a Mortgage Loan
      pursuant to this provision is required by reason of a delay in delivery of
      

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    any
      documents by the appropriate recording office, and there is a dispute between
      either the Servicer or the Seller and the Indenture Trustee over the location
      or
      status of the recorded document, then such substitution or purchase shall occur
      within 720 days from the Closing Date. Any such substitution pursuant to (a)
      above shall not be effected prior to the delivery to the Indenture Trustee
      of a
      Request for Release substantially in the form of Exhibit C. No substitution
      is
      permitted to be made in any calendar month after the Determination Date for
      such
      month. The Purchase Price for any such Mortgage Loan shall be deposited by
      the
      Seller in the Collection Account on or prior to the Deposit Date for the Payment
      Date in the month following the month of repurchase and, upon receipt of written
      certification from the Servicer of such deposit, the Indenture Trustee shall
      cause the Custodian to release the related Mortgage File to the Seller and
      shall
      execute and deliver at the Seller’s request such instruments of transfer or
      assignment prepared by the Seller, in each case without recourse, as shall
      be
      necessary to vest in the Seller, or a designee, the Indenture Trustee’s interest
      in any Mortgage Loan released pursuant hereto. The foregoing remedy against
      the
      Seller for failure to deliver Mortgage Loans that satisfy the Mortgage Loan
      Document Requirements is provided in the Sale Agreement (which, in turn, has
      been assigned to the Indenture Trustee pursuant to Section 2.1 hereof).

     

    The
      Custodian shall retain possession and custody of each Mortgage File in
      accordance with and subject to the terms and conditions set forth herein. The
      Servicer shall promptly deliver to the Custodian on behalf of the Indenture
      Trustee, 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 Servicer from time to time.

     

    It
      is
      understood and agreed that the obligation of the Seller to substitute for or
      to
      purchase any Mortgage Loan which does not meet the requirements of Section
      2.1
      hereof shall constitute the sole remedy respecting such defect available to
      the
      Indenture Trustee and any Noteholder against the Depositor or the
      Seller.

     

    Section
      2.3     Representations,
      Warranties and Covenants of the Servicer, the Master Servicer, the Seller and
      the Depositor.

     

    (a) The
      Servicer represents and warrants to the Issuer, the Master Servicer, the
      Administrator, the Depositor, the Seller and the Indenture Trustee, for the
      benefit of the Securityholders that, as of the Closing Date :

     

    (i) the
      Servicer is duly organized, validly existing, and in good standing under the
      laws of the jurisdiction of its organization and has, and had at all relevant
      times, full corporate power to service the Mortgage Loans, to own its property,
      to carry on its business as presently conducted and to enter into and perform
      its obligations under this Agreement. The Servicer has all necessary licenses
      and is qualified to transact business in and is in good standing under the
      laws
      of each state where any Mortgaged Property is located or is otherwise exempt
      under applicable law from such qualification or is otherwise not required under
      applicable law to effect such qualification and no demand for such qualification
      has been made upon the Servicer by any state having jurisdiction;

     

    (ii) the
      execution and delivery of this Agreement by the Servicer and the performance
      by
      it and compliance with the terms of this Agreement will not (A) violate the
      Servicer’s charter or by-laws or constitute a default (or an event which, with
      notice or lapse of time or both, would constitute a default) under, or result
      in
      the breach or acceleration of, any material contract, agreement or other
      instrument to which the Servicer is a party or which may be applicable to the
      Servicer or any of its assets or (B) result in the creation or imposition of
      any
      lien, charge or encumbrance upon any of its properties pursuant to the terms
      of
      any such contract, agreement or other instrument;

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    

     

    (iii) the
      Servicer has the full power and authority to enter into and consummate all
      transactions contemplated by this Agreement to be consummated by it, has duly
      authorized the execution, delivery and performance of this Agreement, and has
      duly executed and delivered this Agreement. This Agreement, assuming due
      authorization, execution and delivery by the other parties hereto, constitutes
      a
      valid, legal and binding obligation of the Servicer, enforceable against it
      in
      accordance with the terms hereof, except as such enforcement may be limited
      by
      bankruptcy, insolvency, reorganization, receivership, moratorium or other
      similar laws relating to or affecting the rights of creditors generally, and
      by
      general equity principles (regardless of whether such enforcement is considered
      in a proceeding in equity or at law);

     

    (iv) the
      Servicer is not in violation of, and the execution and delivery of this
      Agreement by the Servicer and the performance by it and compliance with the
      terms of this Agreement will not constitute a violation with respect to any
      order or decree of any court or any order or regulation of any federal, state,
      municipal or governmental agency having jurisdiction, which violation would
      materially and adversely affect the condition (financial or otherwise) or
      operations of the Servicer or any of its properties or materially and adversely
      affect the performance of any of its duties hereunder; 

     

    (v) there
      are
      no actions or proceedings against, or investigations of, the Servicer pending
      or, to the knowledge of the Servicer, threatened, before any court,
      administrative agency or other tribunal (A) that, if determined adversely,
      would
      prohibit its entering into this Agreement, (B) seeking to prevent the
      consummation of any of the transactions contemplated by this Agreement or (C)
      that, if determined adversely, would prohibit or materially and adversely affect
      the performance by the Servicer of any of its obligations under, or the validity
      or enforceability of, this Agreement; 

     

    (vi) the
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Servicer; 

     

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

     

    (viii) no
      consent, approval, authorization, license or order of any court or governmental
      agency or body is required for the execution, delivery and performance by the
      Servicer of or compliance by the Servicer with this Agreement, or if required,
      such consent, approval, authorization, license or order has been obtained prior
      to the Closing Date; and

     

    (ix) the
      Servicer is an approved seller/servicer of residential mortgage loans of the
      same type as the Mortgage Loans, with the facilities, procedures and experienced
      personnel necessary for the sound servicing of mortgage loans of the same type
      as the Mortgage Loans. The Servicer is in
      good
      standing to service mortgage loans, and no event has occurred, including a
      change in insurance coverage, which would make the Servicer unable to service
      the Mortgage Loans; and 

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    

     

    (x) 
      neither
      this Agreement nor any statement, report or other document furnished or to
      be
      furnished pursuant to this Agreement or in connection with the transactions
      contemplated hereby contains any untrue material statement of fact or omits
      to
      state a material fact necessary to make the statements contained therein not
      misleading.

     

    (b) The
      Master Servicer hereby represents and warrants to the Issuer, the Servicer,
      the
      Depositor, the Seller and the Indenture Trustee, for the benefit of the
      Securityholders that as of the Closing Date:

     

    (i) the
      Master Servicer is a national banking association duly formed, validly existing
      and in good standing under the laws of the United States of America and is
      duly
      authorized and qualified to transact any and all business contemplated by this
      Agreement to be conducted by the Master Servicer;

     

    (ii) the
      Master Servicer has the full power and authority to conduct its business as
      presently conducted by it and to execute, deliver and perform, and to enter
      into
      and consummate, all transactions contemplated by this Agreement. The Master
      Servicer has duly authorized the execution, delivery and performance of this
      Agreement, has duly executed and delivered this Agreement, and this Agreement,
      assuming due authorization, execution and delivery by the other parties hereto,
      constitutes a legal, valid and binding obligation of the Master Servicer,
      enforceable against it in accordance with its terms except as the enforceability
      thereof may be limited by bankruptcy, insolvency, reorganization or similar
      laws
      affecting the enforcement of creditors’ rights generally and by general
      principles of equity;

     

    (iii) the
      execution and delivery of this Agreement by the Master Servicer, the
      consummation by the Master Servicer of any other of the transactions herein
      contemplated, and the fulfillment of or compliance with the terms hereof are
      in
      the ordinary course of business of the Master Servicer and will not (A) result
      in a breach of any term or provision of charter and by-laws of the Master
      Servicer or (B) conflict with, result in a breach, violation or acceleration
      of,
      or result in a default under, the terms of any other material agreement or
      instrument to which the Master Servicer is a party or by which it may be bound,
      or 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 a party
      to, bound by, or in breach or violation of any indenture or other agreement
      or
      instrument, or subject to or in violation of any statute, order or regulation
      of
      any court, regulatory body, administrative agency or governmental body having
      jurisdiction over it, which materially and adversely affects or, to the Master
      Servicer’s knowledge, would in the future materially and adversely affect, (x)
      the ability of the Master Servicer to perform its obligations under this
      Agreement or (y) the business, operations, financial condition, properties
      or
      assets of the Master Servicer taken as a whole;

     

    
      
        
        

      

      
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    (iv) the
      Master Servicer does not believe, nor does it have any reason or cause to
      believe, that it cannot perform each and every covenant made by it and contained
      in this Agreement;

     

    (v) no
      litigation is pending 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 perform any of its other obligations
      hereunder in accordance with the terms hereof;

     

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

     

    (vii) no
      consent, approval, authorization, license or 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 by it of the transactions contemplated by this Agreement,
      except for such consents, approvals, authorizations, licenses or orders, if
      any,
      that have been obtained prior to the Closing Date.

     

    (c) The
      Seller represents and warrants to the Issuer, the Depositor, the Administrator,
      the Master Servicer, the Servicer and the Indenture Trustee, for the benefit
      of
      the Securityholders that, as of the Closing Date:

     

    (i) the
      Seller is a [Maryland] [Delaware] corporation, duly organized, validly existing
      and in good standing under the laws of the State of [Maryland] [Delaware],
      and
      has the corporate power to own its assets and to transact the business in which
      it is currently engaged. The Seller is duly qualified to do business as a
      foreign corporation and is in good standing in each jurisdiction in which the
      character of the business transacted by it or any properties owned or leased
      by
      it requires such qualification and in which the failure so to qualify would
      have
      a material adverse effect on the business, properties, assets or condition
      (financial or other) of the Seller;

     

    (ii) the
      execution and delivery of this Agreement by the Seller and the performance
      by it
      of and compliance with the terms of this Agreement will not (A) violate the
      Seller’s articles of incorporation or by-laws or constitute a default (or an
      event which, with notice or lapse of time or both, would constitute a default)
      under, or result in the breach or acceleration of, any material contract,
      agreement or other instrument to which the Seller is a party or which may be
      applicable to the Seller or any of its assets or (B) result in the creation
      or
      imposition of any lien, charge or encumbrance upon any of its properties
      pursuant to the terms of any such contract, agreement or other
      instrument;

     

    (iii) the
      Seller has the full power and authority to enter into and consummate all
      transactions contemplated by this Agreement to be consummated by it, has duly
      authorized the execution, delivery and performance of this Agreement, and has
      duly executed and delivered this Agreement. This Agreement, assuming due
      authorization, execution and delivery by the other parties hereto, constitutes
      a
      valid, legal and binding obligation of the Seller, enforceable against it in
      accordance with the terms hereof, except as such enforcement may be limited
      by
      bankruptcy, insolvency, reorganization, receivership, moratorium or other
      similar laws relating to or affecting the rights of creditors generally, and
      by
      general equity principles (regardless of whether such enforcement is considered
      in a proceeding in equity or at law);

     

    
      
        
        

      

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

     

    (v) there
      are
      no actions or proceedings against, or investigations of, the Seller pending
      or,
      to the knowledge of the Seller, threatened, before any court, administrative
      agency or other tribunal (A) that, if determined adversely, would prohibit
      its
      entering into this Agreement, (B) seeking to prevent the consummation of any
      of
      the transactions contemplated by this Agreement or (C) that, if determined
      adversely, would prohibit or materially and adversely affect the performance
      by
      the Seller of any of its obligations under, or the validity or enforceability
      of, this Agreement; and

     

    (vi) [the
      Seller has been organized in conformity with the requirements for qualification
      as a REIT; the Seller will file with its federal income tax return for its
      taxable year ended December 31, 2004, an election to be treated as a REIT for
      federal income tax purposes; and the Seller currently qualifies as, and it
      proposes to operate in a manner that will enable it to continue to qualify
      as, a
      REIT].

     

    (d) The
      Depositor represents and warrants to the Issuer, the Seller, the Administrator,
      the Master Servicer, the Servicer and the Indenture Trustee, for the benefit
      of
      the Securityholders that, as of the Closing Date:

     

    (i) the
      Depositor is a corporation, duly organized, validly existing and in good
      standing under the laws of the state of its incorporation and has, and had
      at
      all relevant times, full corporate power to own its property, to carry on its
      business as presently conducted and to enter into and perform its obligations
      under this Agreement;

     

    (ii) the
      execution and delivery of this Agreement by the Depositor and the performance
      by
      it of and compliance with the terms of this Agreement will not (A) violate
      the
      Depositor’s articles of incorporation or by-laws or constitute a default (or an
      event which, with notice or lapse of time or both, would constitute a default)
      under, or result in the breach or acceleration of, any material contract,
      agreement or other instrument to which the Depositor is a party or which may
      be
      applicable to the Depositor or any of its assets or (B) result in the creation
      or imposition of any lien, charge or encumbrance upon any of its properties
      pursuant to the terms of any such contract, agreement or other
      instrument;

     

    
      
        
        

      

      
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    (iii) the
      Depositor has the full power and authority to enter into and consummate all
      transactions contemplated by this Agreement to be consummated by it, has duly
      authorized the execution, delivery and performance of this Agreement, and has
      duly executed and delivered this Agreement. This Agreement, assuming due
      authorization, execution and delivery by the other parties hereto, constitutes
      a
      valid, legal and binding obligation of the Depositor, enforceable against it
      in
      accordance with the terms hereof, except as such enforcement may be limited
      by
      bankruptcy, insolvency, reorganization, receivership, moratorium or other
      similar laws relating to or affecting the rights of creditors generally, and
      by
      general equity principles (regardless of whether such enforcement is considered
      in a proceeding in equity or at law);

     

    (iv) the
      Depositor is not in violation of, and the execution and delivery of this
      Agreement by the Depositor and the performance by it and compliance with the
      terms of this Agreement will not constitute a violation with respect to, any
      order or decree of any court or any order or regulation of any federal, state,
      municipal or governmental agency having jurisdiction, which violation would
      materially and adversely affect the condition (financial or otherwise) or
      operations of the Depositor or any of its properties or materially and adversely
      affect the performance of any of its duties hereunder; and

     

    (v) there
      are
      no actions or proceedings against, or investigations of, the Depositor pending
      or, to the knowledge of the Depositor, threatened, before any court,
      administrative agency or other tribunal (A) that, if determined adversely,
      would
      prohibit its entering into this Agreement, (B) seeking to prevent the
      consummation of any of the transactions contemplated by this Agreement or (C)
      that, if determined adversely, would prohibit or materially and adversely affect
      the performance by the Depositor of any of its obligations under, or the
      validity or enforceability of, this Agreement.

     

    (e) Pursuant
      to Section 2.1(a) hereof, the Depositor has assigned to the Issuer, in trust,
      for the benefit of Securityholders, its rights under the Sale Agreement,
      including each representation and warranty of the Seller (and the applicable
      remedies) set forth in the Sale Agreement in respect of the Mortgage Loans.
      

     

    (f) Upon
      discovery by any of the parties hereto of a breach of a representation or
      warranty made by the Seller in respect of the Mortgage Loans that materially
      and
      adversely affects the interests of the Securityholders in any such Mortgage
      Loan, the party discovering such breach shall give prompt notice thereof to
      the
      other parties hereto. The Seller hereby covenants that within 90 days of the
      earlier of its discovery or its receipt of written notice from any party of
      a
      breach such of any representation or warranty which materially and adversely
      affects the interests of the Noteholders in any Mortgage Loan (it being
      understood that any such breach shall be deemed to materially and adversely
      affect the value of such Mortgage Loan or the interest of the Trust therein,
      if
      the Trust incurs a loss as the result of such breach), it shall cure such breach
      in all material respects, and if such breach is not so cured, shall, (i) if
      such
      90-day period expires prior to the second anniversary of the Closing Date,
      remove such Mortgage Loan from the Trust 

    
      
        
        

      

      
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    and
      substitute in its place a Qualified Substitute Mortgage Loan, in the manner
      and
      subject to the conditions set forth in this Section; or (ii) repurchase the
      affected Mortgage Loan or Mortgage Loans from the Indenture Trustee at the
      Purchase Price in the manner set forth below; provided, however, that any such
      substitution pursuant to clause (i) above shall not be effected prior to the
      delivery to the Custodian on behalf of the Indenture Trustee of a Request for
      Release substantially in the form of Exhibit C and the Mortgage File for any
      such Qualified Substitute Mortgage Loan. The Seller shall promptly reimburse
      the
      Servicer and the Indenture Trustee for any expenses reasonably incurred by
      the
      Servicer or the Indenture Trustee in respect of enforcing the remedies against
      the Seller. With respect to the representations and warranties described in
      this
      Section which are made to the best of the Seller’s knowledge, if it is
      discovered by either the Servicer or the Indenture Trustee that the substance
      of
      such representation and warranty is inaccurate and such inaccuracy materially
      and adversely affects the value of the related Mortgage Loan or the interests
      of
      the Noteholders therein, notwithstanding the Seller’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.

     

    With
      respect to any Qualified Substitute Mortgage Loan, the Seller shall deliver
      to
      the Custodian on behalf of the Indenture Trustee for the benefit of the
      Noteholders the Mortgage Note, the Mortgage, the related assignment of the
      Mortgage, and such other documents and agreements as are required by Section
      2.1, with the Mortgage Note endorsed and the Mortgage assigned as required
      by
      Section 2.1. No substitution is permitted to be made in any calendar month
      after
      the Determination Date for such month. Scheduled Payments due with respect
      to
      Qualified Substitute Mortgage Loans in the month of substitution shall not
      be
      part of the Trust and will be retained by the Seller on the next succeeding
      Payment Date. For the month of substitution, payments to Noteholders will
      include the monthly payment due on any Deleted Mortgage Loan for such month
      and
      thereafter the Seller shall be entitled to retain all amounts received in
      respect of such Deleted Mortgage Loan. The Servicer shall amend the Mortgage
      Loan Schedule for the benefit of the Noteholders to reflect the removal of
      such
      Deleted Mortgage Loan and the substitution of the Qualified Substitute Mortgage
      Loan or Loans and the Servicer shall deliver the amended Mortgage Loan Schedule
      to the Custodian on behalf of the Indenture Trustee and the Master Servicer.
      Upon such substitution, the Qualified Substitute Mortgage Loan or Loans shall
      be
      subject to the terms of this Agreement in all respects, and the Seller shall
      be
      deemed to have made with respect to such Qualified Substitute Mortgage Loan
      or
      Loans, as of the date of substitution, the representations and warranties made
      by Seller pursuant to the Sale Agreement 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
      provided in the following paragraph, the Custodian shall release the Mortgage
      File held for the benefit of the Noteholders relating to such Deleted Mortgage
      Loan to the Seller and the Indenture Trustee shall execute and deliver at the
      Seller’s direction such instruments of transfer or assignment prepared by the
      Seller, in each case without recourse, as shall be necessary to vest title
      in
      the Seller, or its designee, the Indenture Trustee’s interest in any Deleted
      Mortgage Loan substituted for pursuant to this Section 2.3.

     

    
      
        
        

      

      
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    For
      any
      month in which the Seller substitutes one or more Qualified Substitute Mortgage
      Loans for one or more Deleted Mortgage Loans, the Servicer will determine the
      amount (if any) by which the aggregate principal balance of all such Qualified
      Substitute Mortgage Loans as of the date of substitution is less than the
      aggregate unpaid 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 deposited in
      the
      Collection Account by the Seller on or before the Deposit Date for the Payment
      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 Seller shall have repurchased a Mortgage Loan, the Purchase
      Price
      therefor shall be deposited in the Note Payment Account prior to the Payment
      Date in the month following the month during which the Seller 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
      C
      hereto, the Custodian on behalf of the Indenture Trustee shall release the
      related Mortgage File held for the benefit of the Noteholders, to the Seller,
      and the Indenture Trustee shall execute and deliver or shall cause the Custodian
      to execute and deliver at the Seller’s direction such instruments of transfer or
      assignment prepared by such Person, in each case without recourse, as shall
      be
      necessary to transfer title from the Indenture Trustee. It is understood and
      agreed that the obligation under this Agreement of the Seller to cure,
      repurchase or replace any Mortgage Loan as to which a breach has occurred and
      is
      continuing shall constitute the sole remedy respecting such breach available
      to
      Noteholders or the Indenture Trustee on their behalf.

     

    The
      representations and warranties made pursuant to this Section 2.3 (and the
      representations and warranties with respect to the Mortgage Loans made in the
      Sale Agreement) shall survive delivery of the respective Mortgage Files to
      the
      Indenture Trustee or the Custodian for the benefit of the
      Noteholders.

     

    (g) Upon
      discovery by the Issuer, the Depositor, the Servicer, the Seller, the Master
      Servicer, the Administrator or the Indenture Trustee that any Mortgage Loan
      does
      not constitute a “qualified mortgage” within the meaning of Section 860G(a)(3)
      of the Code, the party discovering such fact shall promptly (and in any event
      within five (5) Business Days of discovery) give written notice thereof to
      the
      other parties. In connection therewith, the Administrator shall require the
      Seller, at the Seller’s option, to either (i) substitute, if the conditions in
      Section 2.3(e) with respect to substitutions are satisfied, a Qualified
      Substitute Mortgage Loan for the affected Mortgage Loan, or (ii) repurchase
      the
      affected Mortgage Loan within 90 days of such discovery in the same manner
      as it
      would a Mortgage Loan for a breach of representation or warranty made pursuant
      to this Section 2.3. The Custodian on behalf of the Indenture Trustee shall
      reconvey to the Seller the Mortgage Loan to be released pursuant hereto in
      the
      same manner, and on the same terms and conditions, as it would a Mortgage Loan
      repurchased for breach of a representation or warranty contained in this Section
      2.3.

     

    
      
        
        

      

      
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    ARTICLE
      III

     

    ADMINISTRATION
      AND SERVICING OF MORTGAGE LOANS

     

    
      	 	
              Section
                3.1

            	
              Servicer
                to Service Mortgage Loans.

            

    

     

    [(a)]
      For
      and on behalf of the Issuer, the Indenture Trustee and the Securityholders,
      the
      Servicer shall service and administer the Mortgage Loans in accordance with
      the
      terms of this Agreement and the Servicing Standard. In connection with such
      servicing and administration, the Servicer shall have full power and authority,
      acting alone and/or through subservicers as provided in Section 3.2 hereof,
      to
      do or cause to be done any and all things that it may deem necessary or
      desirable in connection with such servicing and administration, including but
      not limited to, the power and authority, subject to the terms hereof (i) to
      execute and deliver, on behalf of the Noteholders and the Indenture Trustee,
      customary consents or waivers and other instruments and documents, (ii) to
      consent to transfers of any Mortgaged Property and assumptions of the Mortgage
      Notes and related Mortgages (but only in the manner provided in this Agreement),
      (iii) to collect any Insurance Proceeds and other Liquidation Proceeds, and
      (iv) to effectuate foreclosure or other conversion of the ownership of the
      Mortgaged Property securing any Mortgage Loan; provided
      that the
      Servicer shall not take any action that is inconsistent with or prejudices
      the
      interests of the Trust or the Noteholders, in any Mortgage Loan or the rights
      and interests of the Depositor, the Indenture Trustee and the Noteholders under
      this Agreement; and provided,
      further,
      that
      unless the Mortgagor is in default with respect to the Mortgage Loan, or such
      default is, in the judgment of the Servicer, imminent, the Servicer may not
      permit any modification with respect to any Mortgage Loan. The Servicer shall
      represent and protect the interests of the Trust (or the Indenture Trustee
      on
      behalf of the Trust) in full compliance with the Servicing Standard in any
      claim, proceeding or litigation regarding a Mortgage Loan. Without limiting
      the
      generality of the foregoing, the Servicer in the name of the Depositor and
      the
      Indenture Trustee, is hereby authorized and empowered by the Depositor and
      the
      Indenture Trustee, when the Servicer believes it appropriate in its reasonable
      judgment, to execute and deliver, on behalf of the Indenture Trustee, the
      Depositor, the Noteholders, or any of them, any and all instruments of
      satisfaction or cancellation, or of partial or full release or discharge and
      all
      other comparable instruments, with respect to the Mortgage Loans, and with
      respect to the Mortgaged Properties held for the benefit of the
      Noteholders.

     

    In
      accordance with the Servicing Standard, the Servicer shall make or cause to
      be
      made Servicing Advances as necessary for the purpose of effecting the payment
      of
      taxes and assessments on the Mortgaged Properties, which Servicing Advances
      shall be reimbursable in the first instance from related collections from the
      Mortgagors pursuant to Section 3.6 hereof, and further as provided in Section
      3.8 hereof. The costs incurred by the Servicer, if any, in effecting the timely
      payments of taxes and assessments on the Mortgaged Properties and related
      insurance premiums shall not, for the purpose of calculating monthly payments
      to
      the Noteholders, be added to the unpaid principal balances of the related
      Mortgage Loans, notwithstanding that the terms of such Mortgage Loans so permit.
      The parties to this Agreement acknowledge that Servicing Advances shall be
      reimbursable pursuant to Section 3.8 of this Agreement, and agree that no
      Servicing Advance shall be rejected or disallowed by any party unless it has
      been shown that such Servicing Advance was not made in accordance with the
      terms
      of this Agreement. Notwithstanding the foregoing, the Servicer shall be
      reimbursed for any Pre Cut-off Date Servicing Advances in the same manner and
      to
      the same extent as any other Servicing Advance is reimbursable
      hereunder.

     

    
      
        
        

      

      
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    The
      Indenture Trustee shall furnish the Servicer and/or the Master Servicer with
      any
      limited powers of attorney (substantially in the form of Exhibit F) and other
      documents in form as provided to it that are necessary or appropriate to enable
      the Servicer and/or the Master Servicer to execute in the name of the Indenture
      Trustee or the Custodian, as applicable, all documents reasonably required
      to
      perform the servicing functions described in this Article III or Article IIIA.
      The Indenture Trustee shall have no responsibility for any action of the Master
      Servicer or the Servicer pursuant to any such limited power of attorney and
      shall be indemnified by the Master Servicer or the Servicer, as applicable,
      for
      any cost, liability or expense incurred by the Indenture Trustee in connection
      with such Person’s misuse of any such power of attorney.

     

    [(b)
      The
      Servicer shall, in accordance with the customary and usual standards of practice
      of prudent mortgage servicers of fixed and adjustable rate open-end home equity
      mortgage loans, approve and make disbursements of principal in connection with
      Mortgagor drafts upon the Credit Line approved in connection with each Revolving
      Credit Loan. The Servicer shall provide to the Mortgagors all checks, drafts
      or
      other documentation necessary for such Mortgagors to obtain a Credit Line
      Advance. On each Servicer Remittance Date, with respect to each Credit Line
      Advance disbursed by the Servicer and reported to the [Indenture Trustee and
      the
      Administrator], the Servicer shall be entitled to reimburse itself, from amounts
      on deposit in the Custodial Account, in an amount equal to (i) the principal
      amount of each unreimbursed Credit Line Advance disbursed by Servicer with
      respect to a Revolving Credit Loan and (ii) interest, at the Credit Advance
      Rate, on the principal amount of each such Credit Line Advance from the date
      such Credit Line Advance was disbursed by Servicer to but not including such
      date reimbursement is received by the Servicer. In the event that there are
      insufficient funds on deposit in the Custodial Account on any Servicer
      Remittance Date to reimburse the Servicer as provided in the preceding sentence
      (such shortfall, an “Advance Reimbursement Shortfall Amount”), the Servicer
      shall deliver to [Indenture Trustee and the Administrator] a request for
      reimbursement of the amount of such Advance Reimbursement Shortfall Amount
      at
      least three Business Days prior to such Servicer Remittance Date. The
      [Administrator] shall promptly reimburse the Servicer on such Servicer
      Remittance Date for such Advance Reimbursement Shortfall Amount.]

     

    [(c)
      The
      Servicer, at its discretion and in accordance with the customary and usual
      standards of practice of prudent mortgage servicers of fixed and adjustable
      rate
      open-end home equity mortgage loans, may perform any of the following actions
      in
      connection with a Revolving Credit Loan:

     

    (i)
      with
      the approval of the [Indenture Trustee and the Administrator], increase the
      amount of the related Credit Line;

     

    (ii)
       with
      the
      approval of the [Indenture Trustee and the Administrator], terminate a dormant
      Revolving Credit Loan, to the extent permitted under the related Mortgage Note;
      

     

    
      
        
        

      

      
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    (iii)
       permit
      payments from the Mortgagor of interest only during the period when Credit
      Line
      Advances may be made; or

     

    (iv)
       with
      the
      approval of the [Indenture Trustee and the Administrator], eliminate the ability
      of the Mortgagor to make future drafts upon the Credit Line, or reduce the
      Credit Line, to the extent permitted under the related Mortgage
      Note.]

     

    [(d)
      Notwithstanding anything to the contrary contained herein, the Servicer shall,
      in servicing the Revolving Credit Loans, follow and comply with the servicing
      guidelines established by Fannie Mae, and, consistent with Home Equity Accepted
      Servicing Practices, the Servicer may waive, modify or vary any term of any
      Revolving Credit Loan or consent to the postponement of strict compliance with
      any such term or in any manner grant indulgence to any Mortgagor if in the
      Servicer’s reasonable and prudent determination such waiver, modification,
      postponement or indulgence is in the best interests of the Certificateholders
      and is consistent with the terms of this Agreement; provided,
      however,
      that if
      the Mortgagor is in default with respect to the Revolving Credit Loan or such
      default is, in the judgment of the Servicer, reasonably foreseeable, the
      Servicer shall not permit any modification of any material term of any Revolving
      Credit Loan, including any modification that would change the Mortgage Interest
      Rate, defer or forgive the payment of principal or interest, reduce or increase
      the outstanding principal balance (except for actual payments of principal)
      or
      change the final maturity date on such Revolving Credit Loan. In the event
      of
      any such modification which permits the deferral of interest or principal
      payments on any Revolving Credit Loan, the Servicer shall, on the Business
      Day
      immediately preceding the Servicer Remittance Date in any month in which any
      such principal or interest payment has been deferred, make a Delinquency Advance
      pursuant to the provisions of Section 3.19, in an amount equal to the difference
      between (i) such month’s principal and one month’s interest at the Mortgage Rate
      on the unpaid principal balance of such Revolving Credit Loan and (ii) the
      amount paid by the Mortgagor. The Servicer shall be entitled to reimbursement
      for such Delinquency Advances to the same extent as for all other Delinquency
      Advances made pursuant to Section 3.19. Without limiting the generality of
      the
      foregoing, the Servicer shall continue, and is hereby authorized and empowered,
      to execute and deliver on behalf of itself and the [Indenture Trustee and the
      Administrator], all instruments of satisfaction or cancellation, or of partial
      or full release, discharge and all other comparable instruments, with respect
      to
      the Revolving Credit Loans and with respect to the Mortgaged Properties. Upon
      the request of the Servicer, the [Indenture Trustee and the Administrator]
      shall
      execute and deliver to the Servicer any powers of attorney and other documents,
      furnished to it by the Servicer and reasonably satisfactory to the [Indenture
      Trustee and the Administrator], necessary or appropriate to enable the Servicer
      to carry out its servicing and administrative duties under this Agreement.
      Notwithstanding anything contained herein to the contrary, the Servicer shall
      not, without the [Indenture Trustee’s and the Administrator’s] written consent:
      (i) initiate any action suit or proceeding solely under the [Indenture Trustee’s
      or the Administrator’s] name without indicating the Servicer’s representative
      capacity; or (ii) take any action with the intent to cause, and that actually
      causes, the [Indenture Trustee and the Administrator] to be registered to do
      business in any state. Promptly after the execution of any assumption,
      modification, consolidation or extension of any Revolving Credit Loan, the
      Servicer shall forward to the [Master Servicer] copies of any documents
      evidencing such assumption, modification, consolidation or extension.
      Notwithstanding anything to the contrary contained in this Servicing Agreement,
      the Servicer shall not make or permit any modification, waiver or amendment
      of
      any term of any Revolving Credit Loan that would cause any REMIC created under
      the Trust Agreement to fail to qualify as a REMIC or result in the imposition
      of
      any tax under Section 860F(a) or Section 860G(d) of the Code. Notwithstanding
      anything to the contrary herein, the Servicer shall not, without specifically
      notifying the Trustee and Master Servicer in writing and obtaining the Trustee’s
      prior written consent: 

     

    
      
        
        

      

      
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    (i)
       make
      any
      future Delinquency Advances with respect to a Revolving Credit Loan in excess
      of
      the Credit Line with respect to such Revolving Credit Loan; 

     

    (ii)
       make
      any
      Servicing Advance in excess of $[     ];

     

    (iii)
       permit
      any modification with respect to any Revolving Credit Loan that would change
      the
      Mortgage Rate, defer or forgive the payment of principal or interest, reduce
      or
      increase the outstanding principal balance or change the final maturity date
      on
      such Revolving Credit Loan; 

     

    (iv)
       sell
      any
      Specially Serviced Revolving Credit Loan; 

     

    (v)
       forgive
      any principal or interest on, or permitting to be satisfied at a discount,
      any
      Revolving Credit Loan; or 

     

    (vi)
       accept
      substitute or additional collateral, or release any collateral, for a Revolving
      Credit Loan. 

     

    Notwithstanding
      anything to the contrary in this Agreement, the Servicer shall not (unless
      the
      Servicer determines, in its own discretion, that there exists a situation of
      extreme hardship to the Mortgagor), waive any premium or penalty in connection
      with a prepayment of principal of any Revolving Credit Loan, and shall not
      consent to the modification of any Mortgage Note to the extent that such
      modification relates to payment of a prepayment premium or penalty.

     

    In
      servicing and administering the Revolving Credit Loans, the Servicer shall
      employ procedures (including collection procedures) and exercise the same care
      that it customarily employs and exercises in servicing and administering
      mortgage loans for its own account, giving due consideration to Accepted
      Servicing Practices where such practices do not conflict with the requirements
      of this Agreement, the Fannie Mae Guides, and the Seller’s reliance on the
      Servicer.]

     

    
      	 	
              Section
                3.2

            	
              Subservicing;
                Enforcement of the Obligations of the Servicer;
                Subcontractors.

            

    

     

    
      
        
        

      

      
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    (a) The
      Servicer may arrange for the subservicing of any Mortgage Loan by a subservicer,
      which may be an affiliate of the Servicer, pursuant to a subservicing agreement;
      provided,
      however,
      that
      such subservicing arrangement and the terms of the related subservicing
      agreement must provide for the servicing of such Mortgage Loans in a manner
      consistent with the servicing arrangements contemplated hereunder. Unless the
      context otherwise requires, references in this Agreement to actions taken or
      to
      be taken by the Servicer in servicing the Mortgage Loans include actions taken
      or to be taken by a subservicer on behalf of the Servicer and rights of the
      Servicer to reimbursement of Advances shall constitute rights of the Subservicer
      to the extent any such Advances are made by or on behalf of the Servicer.
      Notwithstanding the provisions of any subservicing agreement, any of the
      provisions of this Agreement relating to agreements or arrangements between
      the
      Servicer and a subservicer or other subcontractor or reference to actions taken
      through a subservicer or otherwise, (i) the Servicer shall remain obligated
      and
      liable to the Depositor, the Indenture Trustee and the Noteholders, for the
      servicing and administration of the Mortgage Loans in accordance with the
      provisions of this Agreement without diminution of such obligation or liability
      by virtue of such subservicing agreements or arrangements or by virtue of
      indemnification from the subservicer and to the same extent and under the same
      terms and conditions as if the Servicer alone were servicing and administering
      the Mortgage Loans and (ii) any subservicer or other subcontractor that performs
      any of the functions identified in Item 1122(d) of Regulation AB must agree
      in
      writing that, if the [Administrator] or the Depositor determines that such
      subcontractor was “participating in the servicing function” within the meaning
      of Item 1122, such subcontractor will comply with the provisions of Sections
      3.16(b), 3.17(b) and 3.17(c) to the same extent as if such subservicer were
      the
      Servicer. All actions of each subservicer performed pursuant to the related
      subservicing agreement shall be performed as an agent of the Servicer with
      the
      same force and effect as if performed directly by the Servicer.

     

    (b) For
      purposes of this Agreement, the Servicer shall be deemed to have received any
      collections, recoveries or payments with respect to the Mortgage Loans that
      are
      received by a subservicer or other subcontractor regardless of whether such
      payments are remitted by the subservicer or other subcontractor to the
      Servicer.

     

    (c) As
      a
      condition to the utilization of any Subservicer determined to be “participating
      in the servicing function” within the meaning of Item 1122 of Regulation AB, the
      Servicer shall obtain from any such Subservicer used by the Servicer for the
      benefit of the Depositor such Subservicer’s written agreement (in form and
      substance satisfactory to the Depositor) to comply with the provisions of
      Sections [     ] of this Agreement to the same extent
      as if such Subservicer were the Servicer.

     

    (d) As
      a
      condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB, the Servicer shall obtain from any such Subcontractor used by
      the
      Servicer (or by any Subservicer) for the benefit of the Depositor such
      Subcontractor’s written agreement (in form and substance satisfactory to the
      Depositor) to comply with the provisions of Sections
      [     ] of this Agreement to the same extent as if such
      Subcontractor were the Servicer.

     

    Section
      3.3   
Rights
      of the Depositor and the Indenture Trustee in Respect of the
      Servicer.

     

    The
      Depositor may, but is not obligated to, enforce the obligations of the Servicer
      hereunder and may, but is not obligated to, perform, or cause a designee to
      perform, any defaulted obligation of the Servicer hereunder and in connection
      with any such defaulted obligation to exercise the related rights of the
      Servicer hereunder; provided
      that the
      Servicer shall not be relieved of any of its obligations hereunder by virtue
      of
      such performance by the Depositor or its designee. Neither the Indenture Trustee
      nor the Depositor shall have any responsibility or liability for any action
      or
      failure to act by the Servicer nor shall the Indenture Trustee or the Depositor
      be obligated to supervise the performance of the Servicer hereunder or
      otherwise.

     

    
      
        
        

      

      
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              Section
                3.4

            	
              Successor
                Servicer or Master Servicer to Act as
                Servicer.

            

    

     

    (a) In
      the
      event that the Servicer shall for any reason no longer be the Servicer hereunder
      (including by reason of a Servicer Termination Event or a Servicer Event of
      Default), the Seller shall appoint, subject to subsection (b) hereof, a
      successor Servicer acceptable to the Master Servicer and the Rating Agencies,
      as
      evidenced by a letter from each Rating Agency to the effect that such an
      appointment will not result in a qualification, withdrawal or downgrade of
      the
      rating of any of the Notes. Such successor Servicer shall thereupon assume
      all
      of the rights and obligations of the Servicer hereunder arising thereafter
      (provided
      that
      such successor Servicer shall not be (i) liable for losses of the predecessor
      Servicer pursuant to Section 3.5(e) hereof or any acts or omissions of the
      predecessor Servicer hereunder, (ii) obligated to make Advances if it is
      prohibited from doing so by applicable law or (iii) deemed to have made any
      representations and warranties of the predecessor Servicer hereunder). If the
      Servicer shall for any reason no longer be the Servicer (including by reason
      of
      a Servicer Termination Event or any Servicer Event of Default), the successor
      Servicer shall succeed to any rights and obligations of the predecessor Servicer
      under any subservicing agreement then in force.

     

    (b) In
      the
      event that the Servicer shall for any reason no longer be the Servicer hereunder
      (including by reason of a Servicer Termination Event or a Servicer Event of
      Default), the Seller shall appoint a successor Servicer within fourteen (14)
      calendar days following notification to the Servicer of termination pursuant
      to
      Article VII, or within thirty (30) calendar days of the date on which the Seller
      receives notification that the Servicer shall for any reason no longer be the
      Servicer.

     

    (c) In
      the
      event that (i) the Servicer shall for any reason no longer be the Servicer
      hereunder (including by reason of a Servicer Termination Event or a Servicer
      Event of Default as defined in Section 7.1 herein) and (ii) the Seller shall
      not
      have appointed a successor Servicer acceptable to the Master Servicer and the
      Rating Agencies, the Master Servicer shall succeed as Servicer and assume all
      of
      the rights and obligations of the Servicer hereunder arising thereafter;
provided,
      however,
      that,
      without affecting the immediate termination of the rights of the Servicer
      hereunder, it is understood and acknowledged by the parties hereto that there
      will be a period of transition not to exceed 90 days (the “Transition Period”)
      before any such servicing transfer to the Master Servicer is fully effected.
      During the Transition Period, the Master Servicer shall not be responsible
      for
      the lack of information and documents that it cannot reasonably obtain on a
      practicable basis under the circumstances. If the Master Servicer shall become
      the successor Servicer pursuant to this Section 3.4(c), the Master Servicer
      shall succeed to any rights and obligations of the predecessor Servicer under
      any subservicing agreement then in force.

     

    (d) In
      the
      event that a successor Servicer assumes the rights and obligations of the
      Servicer pursuant to paragraphs (a) through (c) of this Section 3.4, the
      predecessor Servicer shall, upon request of the Indenture Trustee, the
      Administrator, the Master Servicer or the successor Servicer, but at the expense
      of the predecessor Servicer or at the expense of the Trust if not paid by the
      predecessor Servicer (or at the expense of the successor Servicer or the Seller
      in the case of a termination of the Servicer pursuant to Section 7.1(c)),
      deliver to the assuming party all documents and records relating to any
      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 the substitute subservicing agreement to the assuming
      party.

     

    
      
        
        

      

      
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    (e) Notwithstanding
      anything in this Agreement to the contrary, in no event shall the resignation,
      removal or termination of the Servicer become effective until a successor
      Servicer, appointed in accordance with the provisions of this Agreement, shall
      have been appointed and shall have assumed in writing all of the obligations
      of
      the Servicer under this Agreement to be performed by the Servicer from and
      after
      the date of such resignation, removal or termination, as applicable, and
      assumption; pending such date, the Servicer shall remain obligated to service
      and administer the Mortgage Loans in accordance with the provisions of this
      Agreement.

     

    (f) Notwithstanding
      anything in this Agreement to the contrary, in the event that the Servicer
      has
      received a notice of termination in accordance with Article VII of this
      Agreement as a result of the occurrence of a Servicer Event of Default or a
      Servicer Termination Event, if the Master Servicer shall be obligated to make,
      and makes, any Delinquency Advances pursuant to Section 3.19 prior to the
      appointment of a successor Servicer or the assumption of servicing obligations
      by the Master Servicer, then the Master Servicer shall be entitled to be
      reimbursed for all such Delinquency Advances by the successor Servicer or,
      if
      not by the successor Servicer, then at the same time and in the same manner
      as
      the Servicer is entitled to be reimbursed for Delinquency Advances
      hereunder.

     

    (g) Following
      any transfer of servicing as provided in this Section 3.4, the predecessor
      Servicer and any successor Servicer (including, without limitation, the Master
      Servicer) shall take such action, consistent with this Agreement, as shall
      be
      necessary to effect any such succession of servicing, including, without
      limitation, providing servicing transfer notices to borrowers and to other
      interested parties as requested by the successor Servicer (any such notices
      to
      be in a format acceptable to the successor Servicer). The predecessor Servicer
      agrees to deliver promptly to such successor, electronically or physically,
      as
      the case may be, all files, data and funds related to the Mortgage Loans, of
      the
      types provided for in this Agreement. The predecessor Servicer agrees to
      cooperate with the Indenture Trustee, the Administrator, the Master Servicer
      and
      any successor Servicer in effecting the termination of the predecessor
      Servicer’s servicing responsibilities and rights under this Agreement and shall
      promptly provide the Administrator, the Master Servicer or such successor
      Servicer, as applicable, all documents and records reasonably requested by
      the
      successor Servicer to enable it to assume the predecessor Servicer’s functions
      under this Agreement. The predecessor Servicer shall promptly transfer to the
      successor Servicer all amounts that then have been or should have been deposited
      in the Custodial Account, the Collection Account and any escrow account by
      the
      predecessor Servicer or that are thereafter received with respect to the
      Mortgage Loans. Any collections received by the predecessor Servicer after
      such
      removal or resignation shall be endorsed by it to the successor Servicer and
      remitted directly to such successor Servicer. All costs and expenses associated
      with the provisions of this Section 3.4(g) shall be borne by the predecessor
      Servicer, provided,
      that
      in
      the event the Servicer is terminated pursuant to Section 7.1(c), the Seller
      shall cause any successor Servicer appointed pursuant to the provisions of
      this
      Agreement to pay (or the Seller shall pay, if the successor Servicer does not)
      such costs and expenses; provided,
      further, that
      in
      the event the Master Servicer is not reimbursed for any such costs and expenses
      it incurred in connection with any servicing transfer pursuant to Section 7.1(a)
      by the predecessor Servicer, the successor Servicer or the Seller, the Master
      Servicer shall be entitled to reimbursement of such costs and expenses from
      funds in the Collection Account.

     

    
      
        
        

      

      
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    Section
      3.5     Collection
      of Mortgage Loan Payments; Custodial Account; Collection Account; Note Payment
      Account and Certificate Distribution Account.

     

    (a) The
      Servicer shall make reasonable efforts (or shall cause each subservicer to
      make
      reasonable efforts) in accordance with the Servicing Standard to collect all
      payments called for under the terms and provisions of the Mortgage Loans to
      the
      extent such procedures shall be consistent with this Agreement. Consistent
      with
      the foregoing, and subject to the provisions of Section 3.1 hereof, the Servicer
      may in its discretion (i) waive any late payment charge or penalty interest
      and
      (ii) extend the due dates for payments due on a Mortgage Note for a period
      not
      greater than 180 days; provided,
      however,
      that
      the Servicer cannot extend the maturity of any such Mortgage Loan past the
      date
      on which the final payment is due on the latest maturing Mortgage Loan as of
      the
      Cut-off Date. In the event of any such arrangement, any Delinquency Advance
      required to be made by the Servicer on the related Mortgage Loan in accordance
      with the provisions hereof (i) with respect to the Prepayment Period in which
      such arrangement became effective shall be made in accordance with the
      amortization schedule of such Mortgage Loan without giving effect to the
      modification thereof by reason of such arrangements and (ii) with respect to
      any
      Prepayment Period thereafter shall be made in accordance with the amortization
      schedule of such Mortgage Loan as so modified. The Servicer shall not be
      required to institute or join in litigation with respect to collection of any
      payment (whether under a Mortgage, Mortgage Note or otherwise or against any
      public or governmental authority with respect to a taking or condemnation)
      if it
      reasonably believes that enforcing the provision of the Mortgage or other
      instrument pursuant to which such payment is required is prohibited by
      applicable law.

     

    The
      Servicer shall comply with the provisions of Section 3.21 hereof with respect
      to
      each Prepayment Penalty related to the Mortgage Loans.

     

    (b) The
      Servicer shall establish and maintain (or shall cause each subservicer to
      establish and maintain) a Custodial Account entitled “[Name of Servicer or such
      subservicer] in Trust for
      [          ], as Indenture
      Trustee for Aegis Asset Backed Securities Trust 20[  ]-[  ]
      Mortgage Backed Notes,” for the benefit of the Noteholders into which the
      Servicer shall deposit or cause to be deposited as soon as practicable following
      receipt but in no event later than two Business Days after receipt, except
      as
      otherwise specifically provided herein, the following payments and collections
      remitted by subservicers 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;

     

    
      
        
        

      

      
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    (ii) all
      payments on account of interest on the Mortgage Loans, net of the related
      Servicing Fee and any Compensating Interest payments required to be deposited
      by
      the Servicer hereunder;

     

    (iii) any
      Prepayment Penalty required to be deposited by the Servicer
      hereunder;

     

    (iv) all
      Insurance Proceeds and Liquidation 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 Servicer’s normal servicing
      procedures;

     

    (v) any
      amount required to be deposited by the Servicer pursuant to Section 3.5(f)
      in
      connection with any losses on Eligible investments;

     

    (vi) any
      amounts required to be deposited by the Servicer pursuant to Section 3.9(b)
      and
      (d) hereof, and in respect of net monthly rental income from REO Property
      pursuant to Section 3.11 hereof;

     

    (vii) all
      Substitution Adjustment Amounts; and

     

    (viii) all
      Delinquency Advances made by or on behalf of the Servicer pursuant to Section
      3.19 hereof.

     

    The
      foregoing requirements for remittance by the Servicer shall be exclusive, it
      being understood and agreed that, without limiting the generality of the
      foregoing, amounts in respect of the Servicing Fee (subject to reduction as
      provided in Section 3.14), payments in the nature of late payment charges and
      assumption fees, if collected, need not be remitted by the Servicer. For so
      long
      as the Initial Advance Facility has not been terminated, amounts attributable
      to
      reimbursements of Advances, if collected, shall be remitted by the Servicer
      (or
      the Subservicer on its behalf) as provided above and shall not under any
      circumstances be retained by the Servicer (or the Subservicer on its behalf).
      If
      the Initial Advance Facility is terminated, amounts attributable to
      reimbursements of Advances need not be remitted by the Servicer. In the event
      that the Servicer shall remit any amount not required to be remitted, it may
      at
      any time withdraw or direct the institution maintaining the Custodial Account
      to
      withdraw such amount from the Custodial Account, any provision herein to the
      contrary notwithstanding. Such withdrawal or direction may be accomplished
      by
      delivering written notice thereof to the Indenture Trustee or such other
      institution maintaining the Custodial Account which describes the amounts
      deposited in error in the Custodial Account. The Servicer shall maintain
      adequate records with respect to all withdrawals made pursuant to this Section.
      All funds deposited in the Custodial Account shall be held in trust for the
      Noteholders, until withdrawn in accordance with Section 3.8.

     

    If
      the
      Custodial Account ceases to be an Eligible Account, the Servicer shall establish
      a new Custodial Account that is an Eligible Account within 15 days and transfer
      all funds and investment property on deposit in such existing Custodial Account
      into such new Custodial Account. 

     

    
      
        
        

      

      
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    (c) The
      Master Servicer shall establish and maintain, on behalf of the Noteholders,
      a
      Collection Account entitled
“[          ] in trust for
      [          ], as Indenture
      Trustee for Aegis Asset Backed Securities Trust 20[  ]-[  ]
      Mortgage Backed Notes.” On each Deposit Date, the Master Servicer shall remit to
      the Administrator for deposit in the Note Payment Account the Total Remittance
      Amount for such date, to the extent received by it or required to be funded
      by
      it. In addition, the Master Servicer shall deposit in the Collection Account
      any
      amounts required to be deposited by it pursuant to Section 3.5(f) in connection
      with losses on Eligible Investments in the Collection Account.

     

    In
      the
      event that the Servicer shall remit any amount not required to be remitted
      by
      it, it may at any time direct the Master Servicer to withdraw such amount from
      the Collection Account, any provision herein to the contrary notwithstanding.
      Such direction may be accomplished by delivering an Officer’s Certificate to the
      Master Servicer, which describes the amounts deposited in error in the
      Collection Account. All funds deposited in the Collection Account shall be
      held
      by the Master Servicer in escrow for the Noteholders until disbursed in
      accordance with this Agreement or withdrawn in accordance with Section 3.8.
      In
      no event shall the Master Servicer incur liability for withdrawals from the
      Collection Account at the direction of the Servicer.

     

    If
      the
      Collection Account ceases to be an Eligible Account, the Master Servicer shall
      establish a new Collection Account that is an Eligible Account within 15 days
      and transfer all funds and investment property on deposit in such existing
      Collection Account into such new Collection Account.

     

    (d) The
      Administrator shall establish and maintain, on behalf of Noteholders, the Note
      Payment Account. On each Deposit Date, the Master Servicer shall remit to the
      Administrator, on behalf of the Indenture Trustee, for deposit in the Note
      Payment Account the Total Remittance Amount for such date. In addition, the
      Administrator shall deposit in the Note Payment Account any amounts required
      to
      be deposited by it pursuant to Section 3.5(f) in connection with losses on
      Eligible Investments in the Note Payment Account.

     

    In
      the
      event that the Master Servicer shall remit any amount not required to be
      remitted by it, it may at any time direct the Administrator to withdraw such
      amount from the Note Payment Account, any provision herein to the contrary
      notwithstanding. Such direction may be accomplished by delivering an Officer’s
      Certificate to the Administrator which describes the amounts deposited in error
      in the Note Payment Account. All funds deposited in the Note Payment Account
      shall be held by the Administrator in trust for the Noteholders, until disbursed
      in accordance with this Agreement or withdrawn in accordance with Section 3.8.
      In no event shall the Administrator incur liability for withdrawals from the
      Note Payment Account at the direction of the Master Servicer.

     

    If
      the
      Note Payment Account ceases to be an Eligible Account, the Administrator shall
      establish a new Note Payment Account that is an Eligible Account within 15
      days
      and transfer all funds and investment property on deposit in such existing
      Note
      Payment Account into such new Note Payment Account. 

     

    
      
        
        

      

      
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    (e) The
      Administrator, for the benefit of the Residual Holder, shall establish and
      maintain in the name of the Issuer on behalf of the Residual Holder an account
      (the “Certificate Distribution Account”) entitled “Certificate Distribution
      Account, [          ], as
      Administrator, in trust for the holder of the Aegis Asset Backed Securities
      Trust 20[  ]-[  ] Ownership Certificate.” The Certificate
      Distribution Account shall be an Eligible Account. If an existing Certificate
      Distribution Account ceases to be an Eligible Account, the Administrator shall
      establish a new Certificate Distribution Account that is an Eligible Account
      within 10 days and transfer all funds and investment property on deposit in
      such
      existing Certificate Account into such new Certificate Account.

     

    On
      each
      Payment Date, the Administrator shall withdraw from the Note Payment Account
      all
      amounts required to be deposited in the Certificate Distribution Account
      pursuant to Section 4.1(d)(xi) and deposit such amounts into the Certificate
      Distribution Account. On each Payment Date, the Administrator, on behalf of
      the
      Trust, shall distribute all amounts on deposit in the Certificate Distribution
      Account in accordance with the provisions of the Trust Agreement. On the Payment
      Date on which the Class Principal Amount of the Notes is reduced to zero, the
      Administrator shall distribute all amounts remaining on deposit in the
      Certificate Distribution Account in accordance with the provisions of the Trust
      Agreement in order to clear and terminate the Certificate Distribution Account
      in connection with the termination of this Agreement.

     

    All
      distributions made on the Ownership Certificate shall be made by wire transfer
      of immediately available funds to an account specified by the Residual Holder.
      The final distribution on the Ownership Certificate will be made in like manner,
      but only upon presentment and surrender of such Ownership Certificate at the
      location specified in the notice to the Residual Holder of such final
      distribution.

     

    (f) Amounts
      on deposit in the Custodial Account shall be invested as directed by the
      Servicer; amounts on deposit in the Collection Account shall be invested as
      directed by the Master Servicer; and amounts on deposit in the Trust Accounts
      shall be invested as directed by the Administrator, in each case in Eligible
      Investments which shall mature not later than (i) in the case of the Custodial
      Account, the Business Day next preceding the related Servicer Remittance Date
      (except that if such Permitted Investment is an obligation of the institution
      that maintains such account, then such Permitted Investment shall mature not
      later than such Servicer Remittance Date), (ii) in the case of the Collection
      Account, the Business Day next preceding the related Deposit Date (except that
      if such Permitted Investment is an obligation of the institution that maintains
      such account, then such Permitted Investment shall mature not later than such
      Deposit Date), (iii) in the case of the Trust Accounts, the Business Day next
      preceding the related Payment Date (except that if such Permitted Investment
      is
      an obligation of the institution that maintains such fund or account, then
      such
      Permitted Investment shall mature not later than such Payment Date) and, in
      each
      case, shall not be sold or disposed of prior to its maturity. All such Eligible
      Investments shall be made in the name of the Indenture Trustee, for the benefit
      of the Noteholders. All income and gain net of any losses realized from any
      such
      investment of funds on deposit in the Custodial Account shall be for the benefit
      of the Servicer as servicing compensation; all income and gain net of the
      Indenture Trustee Fee, the Owner Trustee Fee and any losses realized from any
      such investment of funds on deposit in the Collection Account shall be for
      the
      benefit of the Master Servicer as master servicing compensation; and all income
      and gain net of any losses realized from any such investment of funds on deposit
      in the Note Payment Account and Certificate Distribution Account shall be for
      the benefit of the Administrator. The amount of any realized losses in the
      Custodial Account in respect of any such investments shall promptly be deposited
      by the Servicer in the Custodial Account, the amount of any realized losses
      in
      the Collection Account in respect of any such investments shall promptly be
      deposited by the Master Servicer in the Collection Account and the amount of
      any
      realized losses in the Note Payment Account or Certificate Distribution Account
      in respect of any such investments shall promptly be deposited therein by the
      Administrator. The Indenture Trustee in its fiduciary capacity 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 Custodial Account, the Collection Account,
      the Note Payment Account or the Certificate Distribution Account and made in
      accordance with this Section 3.5.

     

    
      
        
        

      

      
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              Section
                3.6

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

            

    

     

    (a) To
      the
      extent required by the related Mortgage Note and not violative of current law,
      the Servicer shall establish and maintain one or more accounts (each, an “Escrow
      Account”) and deposit and retain therein all collections from the Mortgagors (or
      advances by or on behalf of the Servicer) for the payment of taxes, assessments,
      hazard insurance premiums or comparable items for the account of the Mortgagors.
      Nothing herein shall require the Servicer to compel a Mortgagor to establish
      an
      Escrow Account in violation of applicable law.

     

    (b) Withdrawals
      of amounts so collected from the Escrow Accounts may be made only to effect
      timely payment of taxes, assessments, hazard insurance premiums, condominium
      or
      PUD association dues, or comparable items, to reimburse the Servicer out of
      related collections for any payments made pursuant to Sections 3.1 hereof (with
      respect to taxes and assessments and insurance premiums) and 3.9 hereof (with
      respect to hazard insurance), to refund to any Mortgagors any sums determined
      to
      be overages, to pay interest, if required by law or the terms of the related
      Mortgage or Mortgage Note, to Mortgagors on balances in the Escrow Account
      or to
      clear and terminate the Escrow Account at the termination of this Agreement
      in
      accordance with Section 9.1 hereof. The Escrow Accounts shall not be a part
      of
      the Trust.

     

    (c) The
      Servicer shall advance or cause to be advanced, as Servicing Advances, any
      payments referred to in Section 3.6(a) that are not timely paid by the
      Mortgagors on the date when the tax, premium or other cost for which such
      payment is intended is due, provided, however, that the Servicer shall not
      be
      required to make or cause to be made any such Servicing Advance if such
      Servicing Advance, in the good faith judgment of the Servicer, would constitute
      a Nonrecoverable Advance.

     

    Section
      3.7     Access
      to Certain Documentation and Information Regarding the Mortgage
      Loans.

     

    The
      Servicer shall afford the Issuer, the Depositor, the Seller, the Indenture
      Trustee, the Administrator and the Master Servicer, reasonable access to all
      records and documentation regarding the Mortgage Loans and all accounts,
      insurance information and other matters relating to this Agreement, such access
      being afforded without charge, but only upon five Business Days’ prior written
      notice and during normal business hours at the office designated by the
      Servicer.

     

    
      
        
        

      

      
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    Upon
      five
      Business Days’ prior written notice, the Servicer shall provide to each
      Noteholder that 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 Noteholder to comply with
      applicable regulations of the OTS or other regulatory authorities with respect
      to investment in the Notes; provided
      that the
      Servicer shall be entitled to be reimbursed by each such Noteholder for actual
      expenses incurred by the Servicer in providing such reports and
      access.

     

    Nothing
      in this Section shall limit the obligation of the Servicer to observe any
      applicable law prohibiting disclosure of information regarding the Mortgagors
      and the failure of the Servicer to provide access as provided in this Section
      as
      a result of such obligation shall not constitute a breach of this Section.
      Nothing in this Section 3.7 shall require the Servicer to collect, create,
      collate or otherwise generate any information that it does not generate in
      its
      usual course of business, except to the extent otherwise provided in this
      Agreement. Unless otherwise provided in this Agreement, the Servicer shall
      not
      be required to make copies of or ship documents to any party unless provisions
      have been made for the reimbursement of the costs thereof.

     

    Section
      3.8     Permitted
      Withdrawals from the Custodial Account, the Collection Account, the Note Payment
      Account and the Certificate Distribution. 

     

    (a) The
      Servicer may from time to time make withdrawals from the Custodial Account
      for
      the following purposes:

     

    (i) to
      the
      extent not previously retained to pay to itself the servicing compensation
      to
      which it is entitled pursuant to Section 3.14, and earnings on or investment
      income with respect to funds in or credited to the Custodial Account as
      additional servicing compensation;

     

    (ii) if
      the
      Initial Advance Facility has been terminated, to the extent not previously
      retained by the Servicer, to reimburse the Servicer for unreimbursed Advances
      made by or on behalf of it, such right of reimbursement pursuant to this
      subclause (ii) being limited to amounts received on any Mortgage Loan in respect
      of which any such Advance was made;

     

    (iii) if
      the
      Initial Advance Facility has been terminated, to reimburse the Servicer for
      any
      Nonrecoverable Advance previously made;

     

    (iv) to
      reimburse the Servicer for unpaid Servicing Fees as provided in Section 3.11
      hereof;

     

    (v) to
      pay to
      the purchaser, with respect to each Mortgage Loan or property acquired in
      respect thereof that has been purchased pursuant to Section 2.2, 2.3 or 3.11,
      all amounts received thereon after the date of such purchase;

     

    
      
        
        

      

      
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    (vi) to
      reimburse the Servicer, the Seller or the Depositor for expenses incurred by
      any
      of them and reimbursable pursuant to Section 6.3 hereof;

     

    (vii) to
      withdraw any amount deposited in the Custodial Account and not required to
      be
      deposited therein;

     

    (viii) on
      or
      prior to each Servicer Remittance Date, to withdraw an amount equal to the
      amount then on deposit in the Custodial Account with respect to the related
      Payment Date (minus
      any
      withdrawals permitted to be made by the Servicer pursuant to this Section 3.8
      and amounts permitted to be retained in the Custodial Account for remittance
      on
      subsequent Servicer Remittance Dates) and remit such amount to the Master
      Servicer for deposit in the Collection Account; provided
      that
      with
      respect to any remittance received by the Master Servicer after the Business
      Day
      on which such payment was due, the Servicer shall pay to the Master Servicer
      interest on any such late payment at the Prime Rate, adjusted as of the date
      of
      each change, plus three percentage points, but in no event shall such interest
      be greater than the maximum amount permitted by applicable law, from and
      including the date on which such remittance was due to and including the date
      on
      which such remittance was paid;

     

    (ix) [to
      reimburse itself for the amount of any Credit Line Advances made by or on behalf
      of the Servicer and not timely reimbursed by the Administrator in accordance
      with Section 3.1 hereof] ; and

     

    (x) to
      clear
      and terminate the Custodial Account upon termination of this Agreement pursuant
      to Section 9.1 hereof.

     

    The
      Servicer shall keep and maintain separate accounting, on a Mortgage Loan by
      Mortgage Loan basis, for the purpose of justifying any withdrawal from the
      Custodial Account pursuant to such subclauses (i), (ii), (iv), (v) and (vi).
      Prior to making any withdrawal from the Custodial Account pursuant to subclause
      (iii), the Servicer shall deliver to the Master Servicer an Officer’s
      Certificate of a Servicing Officer indicating the amount of any previous
      Delinquency Advance determined by the Servicer to be a Nonrecoverable Advance
      and identifying the related Mortgage Loan(s), and their respective portions
      of
      such Nonrecoverable Advance.

     

    (b) The
      Master Servicer may from time to time withdraw funds from the Collection Account
      for the following purposes:

     

    (i) to
      pay to
      the Indenture Trustee and the Owner Trustee the Indenture Trustee Fee and the
      Owner Trustee Fee, respectively, on the Payment Date each year in the month
      in
      which such Indenture Trustee Fee and Owner Trustee Fee, as applicable, are
      due
      and payable pursuant to the terms of the respective fee letter agreements with
      the Indenture Trustee and the Owner Trustee;

     

    (ii) to
      the
      extent not previously retained, to reimburse itself for reasonable expenses
      and
      any indemnities to which it is owed pursuant to Section 3A.8 hereof, and
      earnings on or investment income with respect to funds in or credited to the
      Collection Account as master servicing compensation;

     

    
      
        
        

      

      
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    (iii) to
      the
      extent not previously retained by the Master Servicer, to reimburse the Master
      Servicer (A) for unreimbursed Delinquency Advances made by it, such right of
      reimbursement pursuant to this subclause (ii) being limited to amounts received
      on any Mortgage Loan in respect of which any such Delinquency Advance was made
      and (B) for any Nonrecoverable Advance;

     

    (iv) to
      the
      extent not previously retained by the Servicer, to pay to the Servicer the
      servicing compensation to which it is entitled pursuant to Section
      3.14;

     

    (v) to
      pay
      any monthly Bulk PMI policy premium;

     

    (vi) to
      withdraw and return to the Servicer or itself, as applicable, any amount
      deposited in the Collection Account and not required to be deposited therein,
      including any amounts owed to the Servicer as part of the Servicing Fee, in
      accordance with the terms hereunder; 

     

    (vii) on
      or
      prior to each Deposit Date, to withdraw an amount equal to the amount then
      on
      deposit in the Collection Account with respect to the related Payment Date
      (minus
      any
      withdrawals permitted to be made by the Master Servicer pursuant to this Section
      3.8) and remit such amount to the Administrator for deposit in the Note Payment
      Account; and

     

    (viii) to
      clear
      and terminate the Collection Account upon termination of the Agreement pursuant
      to Section 9.1 hereof.

     

    (c) The
      Administrator shall withdraw funds from the Note Payment Account for payments
      to
      Noteholders and the Certificate Distribution Account, and from the Certificate
      Distribution Account for distributions in accordance with the provisions of
      the
      Trust Agreement, in each case in the manner specified in this Agreement. In
      addition, the Administrator (1) shall, until the first Payment Date following
      the date on which the Initial Advance Facility has been terminated, on each
      Payment Date prior to making the payments required pursuant to Section 4.1,
      make
      a withdrawal from the Note Payment Account, based solely on information received
      from the Subservicer and the Servicer, in the amount of the Advance
      Reimbursement Payment for such Payment Date and pay such amount by wire transfer
      of immediately available funds to the account specified by the Initial Advance
      Facility Counterparty, and (2) may prior to making the payments required
      pursuant to Section 4.1 from time to time make withdrawals from the Note Payment
      Account for the following purposes:

     

    (i) to
      reimburse itself, the Master Servicer, the Custodian, the Owner Trustee and
      the
      Indenture Trustee for reasonable expenses and costs and any indemnities to
      which
      each such party is owed pursuant to the Operative Documents, for the related
      Payment Date; and to reimburse the Owner Trustee for any fees (other than the
      Owner Trustee Fee and the Closing Attendance Fee) set forth in the fee letter
      agreement attached as Exhibit E to the Trust Agreement;

     

    (ii) to
      the
      extent not previously retained by the Servicer, to pay to the Servicer the
      servicing compensation to which it is entitled pursuant to Section
      3.14;

     

    
      
        
        

      

      
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    (iii) to
      pay to
      itself or the Master Servicer earnings on or investment income with respect
      to
      funds in the Trust Accounts;

     

    (iv) to
      pay
      any monthly Bulk PMI policy premium;

     

    (v) to
      withdraw and return to the Servicer or the Master Servicer, as applicable,
      any
      amount deposited in the Trust Accounts and not required to be deposited therein,
      including any amounts owed to the Servicer or the Master Servicer as part of
      the
      Servicing Fee or the Master Servicing Fee, as applicable, in accordance with
      the
      terms hereunder; and

     

    (vi) to
      clear
      and terminate the Trust Accounts upon termination of the Agreement pursuant
      to
      Section 9.1 hereof.

     

    Section
      3.9     Maintenance
      of Hazard Insurance; Maintenance of Primary Insurance Policies.

     

    (a) The
      Servicer shall cause to be maintained, for each Mortgage Loan, hazard insurance
      with extended coverage in an amount that is at least equal to the lesser of
      (i)
      the maximum insurable value of the improvements securing such Mortgage Loan;
      (ii) the outstanding principal balance of the Mortgage Loan; and (iii) the
      maximum amount available in the locality of the related Mortgaged Property
      from
      insurers generally acceptable to institutional residential mortgage lenders
      without payment of extraordinary premium. Each such policy of standard hazard
      insurance shall contain, or have an accompanying endorsement that contains,
      a
      standard mortgagee clause. Any amounts collected by the Servicer under any
      such
      policies (other than the amounts to be applied to the restoration or repair
      of
      the related Mortgaged Property or amounts released to the Mortgagor in
      accordance with the Servicer’s normal servicing procedures) shall be deposited
      in the Collection Account. Any cost incurred by the Servicer in maintaining
      any
      such insurance shall not, for the purpose of calculating monthly payments to
      the
      Noteholders or remittances to the Administrator for their benefit, be added
      to
      the principal balance of the Mortgage Loan, notwithstanding that the terms
      of
      the Mortgage Loan so permit. Such costs shall be recoverable by the Servicer
      as
      Servicing Advances or, if applicable, as Nonrecoverable Advances. It is
      understood and agreed that no earthquake or other additional insurance is to
      be
      required of any Mortgagor or maintained on property acquired in respect of
      a
      Mortgage other than pursuant to such applicable laws and regulations as shall
      at
      any time be in force and as shall require such additional insurance. If the
      Mortgaged Property is located at the time of origination of the Mortgage Loan
      in
      a federally designated special flood hazard area and such area is participating
      in the national flood insurance program, the Servicer shall cause flood
      insurance to be maintained with respect to such Mortgage Loan. Such flood
      insurance shall be in an amount equal to the least of (i) the original principal
      balance of the related Mortgage Loan, (ii) the replacement value of the
      improvements which are part of such Mortgaged Property, and (iii) the maximum
      amount of such insurance available for the related Mortgaged Property under
      the
      national flood insurance program.

     

    (b) In
      the
      event that the Servicer shall obtain and maintain a blanket policy insuring
      against hazard losses on any or all of the Mortgage Loans, it shall conclusively
      be deemed to have satisfied its obligations as set forth in the first sentence
      of this Section with respect to all of the Mortgage Loans so covered, it being
      understood and agreed that such policy may contain a deductible clause on terms
      substantially equivalent to those commercially available and maintained by
      comparable servicers. If such policy contains a deductible clause, the Servicer
      shall, in the event that there shall not have been maintained on the related
      Mortgaged Property a policy complying with the first sentence of this Section,
      and there shall have been a loss that would have been covered by such policy,
      deposit in the Collection Account the amount not otherwise payable under the
      blanket policy because of such deductible clause. In connection with its
      activities as Servicer of the Mortgage Loans, the Servicer agrees to present,
      on
      behalf of itself, the Depositor and the Indenture Trustee for the benefit of
      the
      Noteholders, claims under any such blanket policy.

     

    
      
        
        

      

      
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    (c) The
      Servicer shall not take any action which would result in non-coverage under
      any
      applicable Primary Mortgage Insurance Policy of any loss which, but for the
      actions of the Servicer, would have been covered thereunder. The Servicer shall
      not cancel or refuse to renew any such Primary Mortgage Insurance Policy that
      is
      in effect at the date of the initial issuance of the Notes and is required
      to be
      kept in force hereunder unless the replacement Primary Mortgage Insurance Policy
      for such canceled or non-renewed policy is maintained with a Qualified
      Insurer.

     

    The
      Servicer shall not be required to maintain any Primary Mortgage Insurance Policy
      (i) with respect to any Mortgage Loan with a Loan-to-Value Ratio less than
      or
      equal to 80% (or such lower Loan-to-Value Ratio as may be provided by applicable
      law) as of any date of determination or, based on a new appraisal, the principal
      balance of such Mortgage Loan represents 80% or less of the new appraised value
      (or other method of determination as may be provided by applicable law) or
      (ii)
      if maintaining such Primary Mortgage Insurance Policy is otherwise prohibited
      by
      applicable law.

     

    The
      Servicer agrees to effect the timely payment of the premiums on each Primary
      Mortgage Insurance Policy (other than any Bulk PMI Policy premium), and such
      costs not otherwise recoverable shall be recoverable by the Servicer as
      Servicing Advances or, if applicable, as Nonrecoverable Advances.

     

    (d) In
      connection with its activities as Servicer of the Mortgage Loans, the Servicer
      agrees to present on behalf of itself, the Indenture Trustee and Noteholders,
      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. Any amounts
      collected by the Servicer under any Primary Insurance Policies shall be
      deposited in the Collection Account.

     

    
      	 	
              Section
                3.10

            	
              Enforcement
                of Due-on-Sale Clauses; Assumption
                Agreements.

            

    

     

    
      
        
        

      

      
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    (a) Except
      as
      otherwise provided in this Section, when any property subject to a Mortgage
      has
      been conveyed by the Mortgagor, the Servicer shall to the extent that it has
      knowledge of such conveyance enforce any due-on-sale clause contained in any
      Mortgage Note or Mortgage, to the extent, in the Servicer’s reasonable judgment,
      enforcement is permitted under applicable law and governmental regulations,
      provided, however, that the Servicer shall not be required to take such action
      if, in its sole business judgment, the Servicer believes it is not in the best
      interests of the Trust. Notwithstanding the foregoing, the Servicer is not
      required to exercise such rights with respect to a Mortgage Loan if the Person
      to whom the related Mortgaged Property has been conveyed or is proposed to
      be
      conveyed satisfies the terms and conditions contained in the Mortgage Note
      and
      Mortgage related thereto and the consent of the mortgagee under such Mortgage
      Note or Mortgage is not otherwise so required under such Mortgage Note or
      Mortgage as a condition to such transfer. In the event that the Servicer is
      prohibited by law from enforcing any such due-on-sale clause, or if
      nonenforcement is otherwise permitted hereunder, the Servicer is authorized,
      subject to Section 3.10(b), to take or enter into an assumption and modification
      agreement from or with the person to whom such property has been or is about
      to
      be conveyed, pursuant to which such person becomes liable under the Mortgage
      Note and, unless prohibited by applicable state law, the Mortgagor remains
      liable thereon, provided that the Mortgage Loan shall continue to be covered
      (if
      so covered before the Servicer enters such agreement) by the applicable Required
      Insurance Policies. The Servicer, subject to Section 3.10(b), is also authorized
      with the prior approval of the insurers under any Required Insurance Policies
      to
      enter into a substitution of liability agreement with such Person, pursuant
      to
      which the original Mortgagor is released from liability and such Person is
      substituted as Mortgagor and becomes liable under the Mortgage Note.
      Notwithstanding the foregoing, the Servicer shall not be deemed to be in default
      under this Section by reason of any transfer or assumption which the Servicer
      reasonably believes it is restricted by law from preventing, for any reason
      whatsoever.

     

    (b) Subject
      to the Servicer’s duty to enforce any due-on-sale clause to the extent set forth
      in Section 3.10(a) hereof, in any case in which a Mortgaged Property has been
      conveyed to a Person by a Mortgagor, and such Person is to enter into an
      assumption agreement or modification agreement or supplement to the Mortgage
      Note or Mortgage that requires the signature of the Indenture Trustee, or if
      an
      instrument of release signed by the Indenture Trustee is required releasing
      the
      Mortgagor from liability on the Mortgage Loan, the Servicer shall prepare and
      deliver or cause to be prepared and delivered to the Indenture Trustee for
      signature and shall direct, in writing, the Indenture Trustee to execute the
      assumption agreement with the Person to whom the Mortgaged Property is to be
      conveyed and such modification agreement or supplement to the Mortgage Note
      or
      Mortgage or other instruments as are reasonable or necessary to carry out the
      terms of the Mortgage Note or Mortgage or otherwise to comply with any
      applicable laws regarding assumptions or the transfer of the Mortgaged Property
      to such Person. In connection with any such assumption, no material term of
      the
      Mortgage Note may be changed. In addition, the substitute Mortgagor and the
      Mortgaged Property must be acceptable to the Servicer in accordance with its
      underwriting standards as then in effect. Together with each such substitution,
      assumption or other agreement or instrument delivered to the Indenture Trustee
      for execution by it, the Servicer shall deliver an Officer’s Certificate signed
      by a Servicing Officer stating that the requirements of this subsection have
      been met in connection therewith. The Servicer shall notify the Indenture
      Trustee that any such substitution or assumption agreement has been completed
      by
      forwarding to the Indenture Trustee the original of such substitution or
      assumption agreement, which in the case of the original shall be added to the
      related Mortgage File and shall, for all purposes, be considered a part of
      such
      Mortgage File to the same extent as all other documents and instruments
      constituting a part thereof. Any fee collected by the Servicer for entering
      into
      an assumption or substitution of liability agreement will be retained by the
      Servicer as additional servicing compensation.

     

    
      
        
        

      

      
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    Section
      3.11     Realization
      Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage
      Loans.

     

    (a) Subject
      to the limitations set forth in Sections 3.5(a), 3.11(b), 3.11(f), and 3.11(i),
      the Servicer shall use reasonable efforts to foreclose upon or otherwise
      comparably convert the ownership of properties securing such of the Mortgage
      Loans as come into and continue in default and as to which no satisfactory
      arrangements can be made for collection of delinquent payments. In connection
      with such foreclosure or other conversion, the Servicer shall follow such
      practices and procedures as it shall deem necessary or advisable and as shall
      be
      normal and usual in its general mortgage servicing activities; provided,
      however, that the Servicer shall not be required to expend its own funds in
      connection with any foreclosure or towards the restoration of any property
      unless it shall determine (i) that such restoration and/or foreclosure will
      increase the proceeds of liquidation of the Mortgage Loan after reimbursement
      to
      itself of such expenses and (ii) that such expenses will be recoverable to
      it
      through Liquidation Proceeds (respecting which it shall have priority for
      purposes of withdrawals from the Collection Account). The Servicer shall be
      responsible for all other costs and expenses incurred by it in any such
      proceedings; provided, however, that it shall be entitled to reimbursement
      thereof from the Liquidation Proceeds with respect to the related Mortgaged
      Property, as Servicing Advances or, if applicable, as Nonrecoverable
      Advances.

     

    (b) If
      the
      Servicer has actual knowledge that a Mortgaged Property which the Servicer
      is
      contemplating acquiring in foreclosure or by deed in lieu of foreclosure is
      located within a one mile radius of any site with material environmental or
      hazardous waste risks known to the Servicer, the Servicer will, prior to
      acquiring the Mortgaged Property, consider such risks and shall proceed with
      such in foreclosure or by deed in lieu of foreclosure only if the Servicer
      reasonably determines that doing so shall more like than not be in the best
      interests of the Trust, considering all relevant factors including such
      environmental matters. For the purpose of this Section, actual knowledge of
      the
      Servicer means actual knowledge of a Servicing Officer involved in the servicing
      of the relevant Mortgage Loan at the time such knowledge was acquired. Actual
      knowledge of the Servicer does not include knowledge imputable by virtue of
      the
      availability of or accessibility to information relating to environmental or
      hazardous waste sites or the locations thereof.

     

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

     

    
      
        
        

      

      
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    (d) In
      the
      event that the Trust acquires any Mortgaged Property as aforesaid or otherwise
      in connection with a default or imminent default on a Mortgage Loan, the
      Servicer shall dispose of such Mortgaged Property prior to the close of the
      third taxable year after its acquisition by the Trust. Notwithstanding any
      other
      provision of this Agreement, no Mortgaged Property acquired by the Trust shall
      be rented (or allowed to continue to be rented) or otherwise used for the
      production of income by or on behalf of the Trust 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,
      unless the Servicer has agreed to indemnify and hold harmless the Trust with
      respect to the imposition of any such taxes.

     

    (e) 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
      Servicer will cause compliance 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 obligor on such Mortgage Loan.

     

    (f) The
      decision of the Servicer to foreclose, or to continue the foreclosure process,
      on a defaulted Mortgage Loan shall be subject to a determination by the Servicer
      that the related Mortgaged Property will not fail to qualify as “foreclosure
      property” within meaning of Section 860G(a)(8) of the Code and that the proceeds
      of such foreclosure would more likely than not exceed the costs and expenses
      of
      bringing such a proceeding and liquidating the REO expected to be obtained
      through such foreclosure. Promptly upon making any determination in accordance
      with the preceding sentence not to foreclose, or to discontinue the foreclosure
      process, as to any Mortgage Loan, the Servicer shall deliver to the Master
      Servicer an Officer’s Certificate signed by a Servicing Officer identifying the
      Mortgage Loans as to which such determination has been made setting forth the
      basis for such determination in a form acceptable to the Master
      Servicer.

     

    (g) The
      income earned from the management of any REO Properties, net of reimbursement
      to
      the Servicer for expenses incurred (including any property or other taxes)
      in
      connection with such management and net of unreimbursed Master Servicing Fees
      and Advances, shall be applied to the payment of principal of and interest
      on
      the related defaulted Mortgage Loans (with interest accruing as though such
      Mortgage Loans were still current) and all such income shall be deemed, for
      all
      purposes in this Agreement, to be payments on account of principal and interest
      on the related Mortgage Notes and shall be deposited into the Collection
      Account. To the extent the net income received during any calendar month is
      in
      excess of the amount attributable to amortizing principal and accrued interest
      at the related Mortgage Rate on the related Mortgage Loan for such calendar
      month, such excess shall be considered to be a partial prepayment of principal
      of the related Mortgage Loan.

     

    
      
        
        

      

      
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    (h) The
      proceeds from any liquidation of a Mortgage Loan, as well as any income from
      an
      REO Property, will be applied in the following order of priority: first, to
      reimburse the Servicer for any related unreimbursed Servicing Advances and
      Servicing Fees; second, to reimburse the Servicer for any unreimbursed
      Delinquency Advances; third, to reimburse the Collection Account for any
      Nonrecoverable Advances (or portions thereof) that were previously withdrawn
      by
      the Servicer pursuant to Section 3.8(a)(iii) that related to such Mortgage
      Loan;
      fourth, to accrued and unpaid interest (to the extent no Delinquency Advance
      has
      been made for such amount or any such Delinquency Advance has been reimbursed)
      on the Mortgage Loan or related REO Property, at the Mortgage Rate (net of
      the
      Servicing Fee Rate) to the Due Date occurring in the month in which such amounts
      are required to be distributed; and fifth, as a recovery of principal of the
      Mortgage Loan. Excess Proceeds, if any, from the liquidation of a Liquidated
      Mortgage Loan will be part of Monthly Excess Cashflow.

     

    (i) Notwithstanding
      any provision hereof, in connection with the foreclosure or other conversion
      of
      defaulted assets, the Servicer shall follow such practices and procedures as
      it
      shall deem necessary or advisable in its sole discretion, and as shall be normal
      and usual in its general mortgage servicing activities. 

     

    (j) The
      Residual Holder, in its sole discretion, shall have the right to purchase for
      its own account from the Trust any Distressed Mortgage Loan at a price equal
      to
      the Purchase Price; provided, however, that any REO Property may be disposed
      of
      pursuant to the preceding Section 3.11(i). The total price calculated pursuant
      to the preceding sentence for any Distressed Mortgage Loan purchased hereunder
      shall be deposited in the Collection Account and the Custodian, upon receipt
      of
      the Request for Release from the Servicer in the form of Exhibit C hereto,
      shall
      release or cause to be released to the purchaser of such Mortgage Loan the
      related Mortgage File and shall execute and deliver such instruments of transfer
      or assignment prepared by the purchaser of such Mortgage Loan, in each case
      without recourse, as shall be necessary to vest in the purchaser of such
      Mortgage Loan any Mortgage Loan released pursuant hereto and the purchaser
      of
      such Mortgage Loan shall succeed to all the Indenture Trustee’s right, title and
      interest in and to such Mortgage Loan and all security and documents related
      thereto. Such assignment shall be an assignment outright and not for security.
      The purchaser of such Mortgage Loan shall thereupon own such Mortgage Loan,
      and
      all security and documents, free of any further obligation to the Indenture
      Trustee, the Administrator or the Noteholders, with respect
      thereto.

     

    (k) The
      Depositor shall have the option to purchase, at any one time (but only one
      time
      during the period in which the Agreement is in effect), 1.0% (and in any case,
      at least five Mortgage Loans) of the Mortgage Loans, by aggregate principal
      balance of the Mortgage Loans as of such date, at a purchase price equal to
      the
      greater of (A) the aggregate Purchase Price of such Mortgage Loans and (B)
      the
      aggregate fair market value of such Mortgage Loans. The Mortgage Loans that
      may
      be purchased by the Depositor pursuant to this paragraph will be selected by
      the
      Depositor in its sole discretion. If at any time the Depositor exercises such
      option, the Depositor shall immediately notify or cause to be notified the
      Indenture Trustee and the Custodian by a certification (which shall include
      a
      statement to the effect that all amounts required to be deposited in the
      Collection Account pursuant to Section 3.5 have been or will be so deposited)
      of
      a Servicing Officer and shall request delivery to it of the Mortgage
      File.

     

    
      
        
        

      

      
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    (l) Any
      reasonable out-of-pocket costs incurred by the Servicer in connection with
      transferring the servicing of any Mortgage Loans pursuant to paragraphs (j)
      and
      (k) shall be the responsibility of the party purchasing such Mortgage
      Loans.

     

    (m) Upon
      receipt of such certification and request, the Custodian on behalf of the
      Indenture Trustee shall promptly release the related Mortgage Files to the
      Depositor or its designee.

     

    [(n)
      Subject to Section 3.1 hereof, the Servicer shall foreclose upon or otherwise
      comparably convert the ownership of properties securing such of the Specially
      Serviced Revolving Credit Loans as come into and continue in default and as
      to
      which (a) in the reasonable judgment of the Servicer, no satisfactory
      arrangements can, in accordance with prudent lending practices, be made for
      collection of delinquent payments pursuant to Section 3.1 and (b) such
      foreclosure or other conversion is otherwise in accordance with Section 3.1.
      The
      Servicer shall not be required to expend its own funds in connection with any
      foreclosure or towards the restoration, repair, protection or maintenance of
      any
      property unless it shall determine that such expenses will be recoverable to
      it
      as Servicing Advances either through Liquidation Proceeds or through Insurance
      Proceeds or from any other source relating to the Specially Serviced Revolving
      Credit Loan. The Servicer shall be required to advance funds for all other
      costs
      and expenses incurred by it in any such foreclosure proceedings (including
      funds
      necessary to pay off the first lien, if any, on the related Mortgaged Property;
      provided that it shall be entitled to reimbursement thereof from the proceeds
      of
      liquidation of the related Mortgaged Property.]

     

    
      	 	
              Section
                3.12

            	
              Administrator
                to Cooperate; Release of Mortgage
                Files.

            

    

     

    Upon
      the
      payment in full of any Mortgage Loan, or the receipt by the Servicer of a
      notification that payment in full will be escrowed in a manner customary for
      such purposes, the Servicer will immediately notify the Custodian by delivering,
      or causing to be delivered (or the Administrator may deliver), to the Custodian
      two copies of a Request for Release substantially in the form of Exhibit C,
      which shall be signed by a Servicing Officer, or a Responsible Officer of the
      Administrator, as the case may be, or in mutually agreeable electronic format
      which will, in lieu of a signature on its face, originate from a Servicing
      Officer, or a Responsible Officer of the Administrator, as the case may be.
      Upon
      receipt of such request, the Custodian shall promptly release the related
      Mortgage File to the Servicer, and the Indenture Trustee shall at the Servicer’s
      direction execute and deliver to the Servicer 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 as provided by the Servicer,
      together with the Mortgage Note with written evidence of cancellation thereon.
      In lieu of the document execution process described in the preceding two
      sentences, the Servicer shall be authorized to execute each request for
      reconveyance, deed

     

    
      
        
        

      

      
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    of
      reconveyance, and release, satisfaction of mortgage, or such instrument
      releasing the lien of the Mortgage as attorney in fact for the Indenture Trustee
      pursuant to the powers of attorney described in Section 3.1. Expenses incurred
      in connection with any instrument of satisfaction or deed of reconveyance shall
      be chargeable to the related Mortgagor. From time to time and as shall be
      appropriate for the servicing or foreclosure of any Mortgage Loan, including
      for
      such purpose, collection under any policy of flood insurance, any fidelity
      bond
      or errors or omissions policy, or for the purposes of effecting a partial
      release of any Mortgaged Property from the lien of the Mortgage or the making
      of
      any corrections to the Mortgage Note or the Mortgage or any of the other
      documents included in the Mortgage File, the Custodian shall, upon delivery
      to
      it of two copies of a Request for Release in the form of Exhibit C, which shall
      be signed by a Servicing Officer, or a Responsible Officer of the Administrator,
      as the case may be, or in mutually agreeable electronic format which will,
      in
      lieu of a signature on its face, originate from a Servicing Officer, or a
      Responsible Officer of the Administrator, as the case may be, release the
      Mortgage File to the Servicer. Subject to the further limitations set forth
      below, the Servicer shall cause the Mortgage File or documents so released
      to be
      returned to the Custodian when the need therefor by the Servicer no longer
      exists, unless the Mortgage Loan is liquidated and the proceeds thereof are
      deposited in the Collection Account, in which case the Servicer shall deliver
      to
      the Custodian a Request for Release in the form of Exhibit C, signed by a
      Servicing Officer.

     

    Section
      3.13     Documents,
      Records and Funds in Possession of Servicer to be Held for the Indenture
      Trustee.

     

    Notwithstanding
      any other provisions of this Agreement, the Servicer shall transmit to the
      Custodian on behalf of the Indenture Trustee, all documents and instruments
      described in Section 2.1(b), and shall hold as Servicer and agent of the
      Indenture Trustee all other documents, in respect of a Mortgage Loan coming
      into
      the possession of the Servicer from time to time and shall account fully to
      the
      Indenture Trustee for any funds received by the Servicer or which otherwise
      are
      collected by the 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 Servicer 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, shall be held by the Servicer for and on behalf of the Indenture
      Trustee and shall be and remain the sole and exclusive property of the Indenture
      Trustee, subject to the applicable provisions of this Agreement. The Servicer
      also agrees that it shall not create, incur or subject any Mortgage File or
      any
      funds that are deposited in the Collection Account, Note Payment Account or
      any
      Escrow Account, or any funds that otherwise are or may become due or payable
      to
      the Administrator for the benefit of the Noteholders, 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 Servicer shall be entitled to set off against and
      deduct from any such funds any amounts that are properly due and payable to
      the
      Servicer under this Agreement.

     

    
      	 	
              Section
                3.14

            	
              Servicing
                Compensation.

            

    

     

    As
      compensation for its activities hereunder, the Servicer shall be entitled to
      retain or withdraw from the Custodial Account an amount equal to the Servicing
      Fee for each Mortgage Loan, provided
      that the
      aggregate Servicing Fee with respect to any Payment Date shall be reduced (but
      not below zero) by the amount of any Compensating Interest paid by the Servicer
      with respect to such Payment Date.

     

    
      
        
        

      

      
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    Additional
      servicing compensation in the form of (i) all income and gain net of any losses
      realized from Eligible Investments and (ii) assumption fees, late payment
      charges, all ancillary income and other receipts not required to be deposited
      to
      the Custodial Account pursuant to Section 3.5 hereof, excluding any Excess
      Proceeds and Prepayment Penalties, shall be retained by the Servicer as
      additional servicing compensation. The Servicer, the Master Servicer, the
      Administrator and the Indenture Trustee shall be required to pay all expenses
      incurred by them respectively in connection with their respective activities
      hereunder to the extent such expenses do not constitute Delinquency Advances
      or
      Nonrecoverable Advances as defined in this Agreement and shall not be entitled
      to reimbursement therefor except as specifically provided in this
      Agreement.

     

    
      	 	
              Section
                3.15

            	
              Access
                to Certain Documentation.

            

    

     

    The
      Servicer shall provide to the OTS and the FDIC and to comparable regulatory
      authorities supervising Holders of Subordinate Notes 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 submitted on at
      least
      5 Business Days’ notice (or such shorter interval as is necessary to comply with
      applicable law or regulation) and during normal business hours at the offices
      designated by the Servicer. Nothing in this Section shall limit the obligation
      of the Servicer to observe any applicable law prohibiting disclosure of
      information regarding the Mortgagors and the failure of the Servicer to provide
      access as provided in this Section as a result of such obligation shall not
      constitute a breach of this Section. Nothing in this Section 3.15 shall require
      the Servicer to collect, create, collate or otherwise generate any information
      that it does not generate in its usual course of business, except to the extent
      otherwise provided in this Agreement. The Servicer shall not be required to
      make
      copies of or ship documents to any party unless provisions have been made for
      the reimbursement of the costs thereof.

     

    
      	 	
              Section
                3.16

            	
              Annual
                Statements as to Compliance.

            

    

     

    (a) [With
      respect to the Master Servicer:

     

    (i) The
      Master Servicer shall deliver to the Depositor, the Servicer, the Subservicer
      and the Administrator on or before March 1 of each applicable calendar year,
      commencing in 20[  ], an Officer’s Certificate stating, as to the
      signer thereof, that (i) a review of the activities of the Master Servicer
      during the preceding fiscal year and of the performance of the Master Servicer
      under this Agreement has been made under such officer’s supervision and (ii) to
      the best of such officer’s knowledge, based on such review, the Master Servicer
      has fulfilled all of its material obligations under this Agreement throughout
      such year, or, if there has been a material default in the fulfillment of any
      such obligation, specifying each such default known to such officer and the
      nature and status thereof. Upon request, the Administrator shall forward a
      copy
      of each such statement to each Rating Agency and each Underwriter.

     

    
      
        
        

      

      
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    (ii) On
      or
      before March 1 of each calendar year, the Master Servicer shall deliver to
      the
      Depositor, the Servicer, the Subservicer and the Administrator a report
      regarding its assessment of compliance with the servicing criteria specified
      in
      paragraph (d) of Item 1122 of Regulation AB (§ 229.1122(d)), as of and for the
      period ending the end of each fiscal year, with respect to asset-backed security
      transactions taken as a whole involving the Master Servicer, and that are backed
      by the same asset type as the Mortgage Loans. Each such report shall include
      all
      of the statements required under paragraph (a) of Item 1122 of Regulation AB
      (§
229.1122(a)) , including a statement that a registered public accounting firm
      has issued the attestation report required under Section 3.17(a) of this
      Agreement.

     

    (iii) Copies
      of
      such statements shall be provided to any Securityholder upon request, by the
      Master Servicer or by the Administrator at the Master Servicer’s expense if the
      Master Servicer failed to provide such copies (unless (i) the Master Servicer
      shall have failed to provide the Administrator with such statement or (ii)
      the
      Administrator shall be unaware of the Master Servicer’s failure to provide such
      statement).

     

    (iv) The
      Master Servicer shall promptly notify the Depositor,
      the
      Servicer, the Subservicer and
      the
      Administrator
      (i) of
      any legal proceedings pending against the Master Servicer of the type described
      in Item 1117 (§
      229.1117) of
      Regulation AB and (ii) if the Master Servicer shall become (but only to the
      extent not previously disclosed to the Administrator
      and the
      Depositor) at any time an affiliate of any of the Sponsor, the Issuer, the
      Owner
      Trustee, the Indenture Trustee, the Servicer, the Administrator, any Originator
      contemplated by Item 1110 (§
      229.1110) of
      Regulation AB, any significant obligor contemplated by Item 1112 (§
      229.1112) of
      Regulation AB, any enhancement or support provider contemplated by Items 1114
      or
      1115 (§§
      229.1114-1115) of
      Regulation AB or any other material party to the Trust contemplated by Item
      1100(d)(1) (§
      229.1100(d)(1)) of
      Regulation AB.]

     

    (b) [With
      respect to the Servicer:

     

    (i) The
      Servicer shall deliver to the Depositor, the Master Servicer, the Subservicer
      and the Administrator on or before March 1 of each applicable calendar year,
      commencing in 20[  ], an Officer’s Certificate stating, as to the
      signer thereof, that (i) a review of the activities of the Servicer during
      the
      preceding fiscal year and of the performance of the Servicer under this
      Agreement has been made under such officer’s supervision and (ii) to the best of
      such officer’s knowledge, based on such review, the Servicer has fulfilled all
      of its material obligations under this Agreement throughout such year, or,
      if
      there has been a material default in the fulfillment of any such obligation,
      specifying each such default known to such officer and the nature and status
      thereof. Upon request, the Administrator shall forward a copy of each such
      statement to each Rating Agency and each Underwriter.

     

    
      
        
        

      

      
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    (ii) On
      or
      before March 1 of each calendar year, the Servicer shall deliver to the
      Depositor, the Master Servicer, the Subservicer and the Administrator a report
      regarding its assessment of compliance with the servicing criteria specified
      in
      paragraph (d) of Item 1122 of Regulation AB (§ 229.1122(d)), as of and for the
      period ending the end of each fiscal year, with respect to asset-backed security
      transactions taken as a whole involving the Servicer, and that are backed by
      the
      same asset type as the Mortgage Loans. Each such report shall include all of
      the
      statements required under paragraph (a) of Item 1122 of Regulation AB (§
229.1122(a)) , including a statement that a registered public accounting firm
      has issued the attestation report required under Section 3.17(b) of this
      Agreement.

     

    (iii) Copies
      of
      such statements shall be provided to any Securityholder upon request, by the
      Servicer or by the Administrator at the Servicer’s expense if the Servicer
      failed to provide such copies (unless (i) the Servicer shall have failed to
      provide the Administrator with such statement or (ii) the Administrator shall
      be
      unaware of the Servicer’s failure to provide such statement).

     

    (iv) The
      Servicer shall promptly notify Depositor,
      the Master Servicer, the Subservicer and the Administrator
      (i) of
      any legal proceedings pending against the Servicer of the type described in
      Item
      1117 (§
      229.1117) of
      Regulation AB and (ii) if the Servicer shall become (but only to the extent
      not
      previously disclosed to the Administrator
      and the
      Depositor) at any time an affiliate of any of the Sponsor, the Issuer, the
      Owner
      Trustee, the Indenture Trustee, the Servicer, the Administrator, any Originator
      contemplated by Item 1110 (§
      229.1110) of
      Regulation AB, any significant obligor contemplated by Item 1112 (§
      229.1112) of
      Regulation AB, any enhancement or support provider contemplated by Items 1114
      or
      1115 (§§
      229.1114-1115) of
      Regulation AB or any other material party to the Trust contemplated by Item
      1100(d)(1) (§
      229.1100(d)(1)) of
      Regulation AB.]

     

    Section
      3.17     Annual
      Independent Public Accountants’ Servicing Statement; Financial
      Statements.

     

    (a) [On
      or
      before March 1 of each calendar year, the Master Servicer shall deliver to
      the
      Administrator and the Depositor a report by a registered public accounting
      firm
      that attests to, and reports on, the assessment made by the Master Servicer
      pursuant to Section 3.16(a)(ii). Such report shall be made in accordance with
      standards for attestation engagements issued or adopted by the Public Company
      Accounting Oversight Board.]

     

    (b) [On
      or
      before March 1 of each calendar year, the Servicer shall deliver to the
      Administrator and the Depositor a report by a registered public accounting
      firm
      that attests to, and reports on, the assessment made by the Servicer pursuant
      to
      Section 3.16(b)(ii). Such report shall be made in accordance with standards
      for
      attestation engagements issued or adopted by the Public Company Accounting
      Oversight Board.]

     

    
      
        
        

      

      
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    (c) On
      or
      before March 1 of each applicable year, commencing in 20[  ], the
      Servicer (and the Master Servicer, if the Master Servicer (or any of its
      Affiliates) has, during the course of any fiscal year, directly serviced, as
      a
      successor Servicer, any of the Mortgage Loans) at its expense shall cause a
      nationally or regionally recognized firm of Independent public accountants
      (who
      may also render other services to the Servicer, the Depositor or any affiliate
      thereof) which is a member of the American Institute of Certified Public
      Accountants to furnish a statement to the Master Servicer, the Administrator
      and
      the Depositor to the effect that such firm has examined certain documents and
      records relating to the servicing of mortgage loans under transfer and servicing
      agreements substantially similar in material respects to this Agreement and
      substantially in compliance with the Uniform Single Attestation Program for
      Mortgage Bankers or alternatively, if the Administrator has so elected, the
      Audit Program for Mortgages serviced for FNMA and FHLMC, and setting forth
      such
      firm’s conclusions relating thereto in accordance with the applicable
      attestation program or audit program. In rendering such statement, such firm
      may
      rely, as to matters relating to direct servicing of mortgage loans by
      subservicers, upon comparable statements for examinations conducted
      substantially in compliance with the Uniform Single Attestation Program for
      Mortgage Bankers or the Audit Program for Mortgages serviced for FNMA and FHLMC
      (rendered within one year of such statement) of Independent public accountants
      with respect to the related subservicer. Copies of such statement shall be
      provided by the Administrator to any Noteholder upon request at the Servicer’s
      expense, provided
      such
      statement is delivered by the Servicer to the Administrator. Delivery of such
      statement to the Administrator is for informational purposes only and the
      Administrator’s receipt of such shall not constitute constructive notice of any
      information contained therein, including the Servicer’s compliance with any of
      its covenants hereunder (as to which the Administrator is entitled to rely
      exclusively on Officer’s Certificates).

     

    
      	 	
              Section
                3.18

            	
              Errors
                and Omissions Insurance; Fidelity
                Bonds.

            

    

     

    The
      Servicer shall for so long as it acts as 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 Servicer hereunder and (b)
      a
      fidelity bond in respect of its officers, employees and agents. Each such policy
      or policies and bond shall be acceptable to FNMA or FHLMC. In the event that
      any
      such policy or bond ceases to be in effect, the 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
                3.19

            	
              Delinquency
                Advances.

            

    

     

    The
      Servicer shall determine on or before each Determination Date whether it is
      required to make a Delinquency Advance. The Servicer shall advance funds in
      the
      amount of any Scheduled Payment that was due during the related Collection
      Period and not received by the Servicer as of the related Determination Date;
      provided
      that in
      no event shall the Servicer be required to make any such Delinquency Advance
      that, if made, would in the good faith judgment of the Servicer be a
      Nonrecoverable Advance. With respect to any Mortgage Loan, if a Delinquency
      Advance is required to be made hereunder, the Servicer shall on or before the
      Servicer Remittance Date either (i) deposit in the Collection Account from
      its
      own funds an amount equal to such Delinquency Advance, (ii) cause to be made
      an
      appropriate entry in the records of the Custodial Account that funds in such
      account being held for future payment or withdrawal have been, as permitted
      by
      this Section 3.19, used by the Servicer to make such Delinquency Advance or
      (iii) make Delinquency Advances in the form of any combination of clauses (i)
      and (ii) aggregating the amount of such Delinquency Advance. Any such funds
      being held in the Custodial Account for future payment and so used shall be
      replaced by the Servicer from its own funds by deposit in such Custodial Account
      to the extent required on or before any future Servicer Remittance Date in
      which
      such funds would be due. The Servicer shall be entitled to be reimbursed for
      all
      Delinquency Advances of its own funds made pursuant to this Section as provided
      in Section 3.8 hereof. Subject to and in accordance with the provisions of
      Article VII, in the event that the Servicer fails to remit a Delinquency Advance
      required to be made pursuant to this Section 3.19, the Master Servicer shall,
      unless it determines that such Delinquency Advance would constitute a
      Nonrecoverable Advance, itself make, or shall cause the successor Servicer
      or
      AMC (on behalf of the Seller, as owner of the servicing rights with respect
      to
      the Mortgage Loans) to make, such Delinquency Advance on or before the Payment
      Date following the Servicer Remittance Date on which such Delinquency Advance
      should have been made. 

     

    
      
        
        

      

      
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    The
      obligation to make Delinquency Advances with respect to any Mortgage Loan shall
      continue if such Mortgage Loan has been foreclosed or otherwise terminated
      and
      the related Mortgaged Property has not been liquidated. The Servicer shall
      deliver to the Master Servicer on the related Servicer Remittance Date an
      Officer’s Certificate of a Servicing Officer indicating the amount of any
      proposed Delinquency Advance that, if made, would in the good faith judgment
      of
      the Servicer be a Nonrecoverable Advance.

     

    
      	 	
              Section
                3.20

            	
              Advance
                Facility.

            

    

     

    (a) Each
      of
      the Administrator and the Indenture Trustee is authorized to execute such
      documents and enter into such agreements as shall be necessary or appropriate
      in
      order to effectuate the purposes of the Initial Advance Facility. Until the
      Initial Advance Facility has been terminated, no amendment to this Agreement
      relating to the reimbursement of Advances shall be made without the prior
      written consent of the Initial Advance Facility Counterparty.

     

    (b) The
      Servicer is hereby authorized, following the termination of the Initial Advance
      Facility, to enter into any facility with any Person (any such Person, an
“Advance Facility Counterparty”) under which the Servicer may pledge or sell its
      rights to receive reimbursement of Advances pursuant to this Agreement (“Advance
      Reimbursement Rights”) pursuant to credit facilities, repurchase facilities, or
      similar facilities providing liquidity for the funding of Advances, including
      facilities providing that such Advance Facility Counterparty may make all or
      a
      portion of the Advances (any such facility, an “Advance Facility”), although no
      Advance Facility shall reduce or otherwise affect the Servicer’s obligations to
      fund such Advances. If so required pursuant to the terms of an Advance Facility,
      to the extent that an Advance Facility Counterparty makes all or a portion
      of
      any Delinquency Advance and the Advance Facility Counterparty and the Servicer
      provide the Administrator with notice acknowledged by the Servicer that such
      Advance Facility Counterparty is entitled to reimbursement, such Advance
      Facility Counterparty shall be entitled to receive reimbursement pursuant to
      this Agreement for such amount to the extent provided. Such notice from the
      Advance Facility Counterparty, if so required, and the Servicer must specify
      the
      amount of the reimbursement and must specify which Section of this Agreement
      permits the Delinquency Advance to be reimbursed. The Administrator shall be
      entitled to rely without independent investigation on the Advance Facility
      Counterparty’s statement with respect to the amount of any reimbursement
      pursuant to this Section 3.20 and with respect to the Advance Facility
      Counterparty’s statement with respect to the Section of this Agreement that
      permits the Delinquency Advance to be reimbursed. An Advance Facility
      Counterparty whose obligations are limited to the making of Advances will not
      be
      deemed to be a subservicer under this Agreement.

     

    
      
        
        

      

      
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    (c) If
      so
      required pursuant to the terms of an Advance Facility, the Servicer is hereby
      authorized to and shall pay to the Advance Facility Counterparty, or cause
      the
      payment to the Advance Facility Counterparty of, (i) reimbursements for
      Advances; and (ii) all or such portion of the Servicing Fee as may be so
      specified in the Advance Facility, that would otherwise be payable to the
      Servicer pursuant to this Agreement, it being understood that neither the Trust
      nor any party hereto shall have a right or claim (including without limitation
      any right of offset) to the portion of the Servicing Fee or the Servicer’s right
      to reimbursement of Advances so assigned, provided that any successor Servicer
      shall have no obligation to pay any portion of the Servicing Fee or its right
      to
      reimbursement of Advances to any such Advance Facility.

     

    (d) Whether
      or not an Advance Facility is in place, reimbursement amounts allocated to
      reimburse Advances made with respect to any particular Mortgage Loan shall
      be
      allocated to the reimbursement of the unreimbursed Advances made with respect
      to
      that Mortgage Loan on a “first-in, first out” (“FIFO”) basis, such that the
      reimbursement amounts shall be applied to reimburse the Advance for that
      Mortgage Loan that was disbursed earliest in time first, and to reimburse the
      Advance for that Mortgage Loan that was disbursed latest in time last.
      Liquidation Proceeds with respect to a Mortgage Loan shall be applied to
      reimburse Servicing Advances outstanding with respect to that Mortgage Loan
      before being applied to reimburse Delinquency Advances outstanding with respect
      to that Mortgage Loan. The Servicer shall provide to the related Advance
      Facility Counterparty loan-by-loan information with respect to each
      reimbursement amount remitted to such Advance Facility Counterparty, to enable
      the Advance Facility Counterparty to make the FIFO allocation of each such
      reimbursement amount with respect to each Mortgage Loan. 

     

    (e) Upon
      request of the Servicer and provision by the Servicer of all necessary forms,
      the Administrator agrees to execute such reasonable acknowledgments,
      certificates, and other reasonable documents recognizing the interests of any
      Advance Facility Counterparty in such Advance Reimbursement Rights and Servicing
      Fees as the Servicer may cause to be made subject to Advance Facilities pursuant
      to this Section 3.20, and such other documents in connection with such Advance
      Facilities as may be reasonably requested from time to time by any Advance
      Facility Counterparty. The implementation of the arrangement described in this
      Section shall not require the consent of Noteholders, the Administrator or
      the
      Indenture Trustee.

     

    (f) The
      Servicer shall indemnify the Indenture Trustee, the Administrator, the Master
      Servicer, the Trust and each Noteholder for any and all claims, losses,
      liabilities, damages, costs and expenses resulting from any claim by the Advance
      Facility Counterparty, except (with respect to the Indenture Trustee, the
      Administrator, the Master Servicer and any successor Servicer) to the extent
      that such claim, loss, liability, damages or expense results from or arises
      out
      of the negligence, recklessness or willful misconduct of the Indenture Trustee,
      the Administrator, the Master Servicer or successor Servicer, as
      applicable.

     

    
      
        
        

      

      
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    (g) Any
      amendment to this Section 3.20 or to any other provision of this Agreement
      that
      may be necessary or appropriate to effect the terms of an Advance Facility
      as
      described generally in this Section, including amendments to add provisions
      relating to a successor Servicer, may be entered into by the Issuer, the Seller,
      the Depositor, the Servicer, the Master Servicer, the Administrator, the
      Custodian, [the Credit Risk Manager] and the Indenture Trustee without the
      consent of any Noteholder, provided that such amendment is otherwise effected
      in
      compliance with the provisions of Section 10.1. All reasonable costs and
      expenses (including attorneys’ fees) incurred by each party hereto or incurred
      by (or that would otherwise be incurred by) the Trust shall be borne solely
      by
      the Servicer. The parties hereto acknowledge and agree that (i) any Advances
      financed by and/or pledged to an Advance Facility Counterparty under any Advance
      Facility are obligations owed to the Servicer payable only from the cash flows
      and proceeds received under this Agreement for reimbursement of Advances to
      the
      extent provided herein, and none of the Master Servicer, the Administrator
      or
      the Indenture Trustee is, as a result of the existence of any Advance Facility,
      obligated or liable to repay any Advances financed by the Advance Facility
      Counterparty; (ii) the Servicer will be responsible for remitting to the Advance
      Facility Counterparty the applicable amounts collected by it as reimbursement
      for Advances funded by the Advance Facility Counterparty, subject to the
      provisions of this Agreement; and (iii) none of the Master Servicer, the
      Administrator or the Indenture Trustee shall have any responsibility to track
      or
      monitor the administration of the financing arrangement between the Servicer
      and
      any Advance Facility Counterparty.

     

    
      	 	
              Section
                3.21

            	
              Prepayment
                Penalties.

            

    

     

    The
      Servicer or any designee of the Servicer shall not waive any Prepayment Penalty
      with respect to any Mortgage Loan that contains a Prepayment Penalty that
      prepays during the term of the penalty. If the Servicer or its designee fails
      to
      collect the Prepayment Penalty upon any prepayment of any Mortgage Loan that
      contains a Prepayment Penalty, the Servicer shall, at the time of such
      prepayment, deposit into the Custodial Account from the Servicer’s own funds an
      amount equal to the Prepayment Penalty that was not collected. Notwithstanding
      the above, the Servicer or its designee may waive a Prepayment Penalty without
      depositing the amount thereof into the Custodial Account the amount of the
      Prepayment Penalty if (i) the Mortgage Loan is sixty-one (61) days or more
      delinquent and such waiver would maximize recovery of total proceeds taking
      into
      account the value of such Prepayment Penalty and the related Mortgage Loan
      or
      (ii) the prepayment is not a result of a refinance by the Servicer or any of
      its
      Affiliates and (a) the Mortgage Loan is foreseen to be in default and such
      waiver would maximize recovery of total proceeds taking into account the value
      of such Prepayment Penalty and the related Mortgage Loan, (b) the collection
      of
      the Prepayment Penalty would be in violation of applicable laws or (c) the
      collection of such Prepayment Penalty would be considered “predatory” pursuant
      to written guidance published or issued by any applicable federal, state or
      local regulatory authority acting in its official capacity and having
      jurisdiction over such matters.
      The
      Servicer shall be obligated to collect Prepayment Penalties under the terms
      of
      the related Mortgage Loan without regard to the amount of Prepayment Penalty
      set
      forth for such loan in the Mortgage Loan Schedule.

     

    
      	 	
              Section
                3.22

            	
              Actions
                with Respect to Distressed Mortgage Loans.  

            

    

     

    The
      Servicer will exercise its discretion, consistent with the
      Servicing Standard and
      the
      terms of this Agreement, with respect to the enforcement and servicing of
      Distressed Mortgage Loans in such manner as will maximize the receipt of
      principal and interest with respect thereto, including but not limited to the
      sale of such Mortgage Loan to a third party, the modification of such Mortgage
      Loan, or foreclosure upon the related Mortgaged Property and disposition
      thereof. The Residual Holder shall have the option to purchase any such loans
      from the Trust at the Purchase Price.

    
      
        
        

      

      
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    The
      Seller may appoint, with the written consent of the Depositor, the Master
      Servicer and the Administrator, a Special Servicer to special service any
      Distressed Mortgage Loans and any such Special Servicer so appointed shall
      report directly to the Master Servicer in executing its duties and obligations
      under this Section 3.22 or Article IIIA. Any applicable termination fee related
      to the termination of the Servicer and the appointment of any Special Servicer
      shall be paid by the Seller. Any fees paid to any such Special Servicer shall
      not exceed the Servicing Fee Rate. The Special Servicer shall have the same
      discretion as is granted to the Servicer above with respect to Distressed
      Mortgage Loans. The Servicer shall be entitled to be reimbursed pursuant to
      Section 3.8(a) for any unreimbursed Advances or accrued and unpaid Servicing
      Fees relating to any such Distressed Mortgage Loan that is transferred to a
      Special Servicer pursuant to this Section.

    

    
      	 	
              Section
                3.23

            	
              [Duties
                of the Credit Risk Manager.] 

            

    

     

    (a) [The
      Noteholders, by their purchase and acceptance of the Notes, appoint
      [          ] as Credit Risk
      Manager. For and on behalf of the Depositor, the Credit Risk Manager will
      provide reports and recommendations concerning certain delinquent and defaulted
      Mortgage Loans, and as to the collection of Prepayment Penalties with respect
      to
      the Mortgage Loans. Such reports and recommendations will be based upon
      information provided pursuant to the Credit Risk Management Agreement. The
      Credit Risk Manager shall look solely to the Servicer (or a subservicer on
      behalf of the Servicer) and the Master Servicer for all information and data
      (including loss and delinquency information and data) and loan level information
      and data relating to the servicing of the Mortgage Loans and the Indenture
      Trustee shall have no obligation to provide any such information to the Credit
      Risk Manager.]

     

    (b) [On
      or
      before March 1 of each calendar year (or if such day is not a Business Day,
      the
      immediately preceding Business Day), the Credit Risk Manager shall deliver
      a
      signed certification, in the form attached hereto as Exhibit
      [          ] (the “Credit Risk
      Manager Certification”), to the Depositor and the Administrator and for the
      benefit of the Person(s) signing the Form 10-K Certification, a report regarding
      its assessment of compliance with the servicing criteria specified in paragraph
      (d) of Item 1122 of Regulation AB (§ 229.1122(d)), as of and for the period
      ending the end of each fiscal year, with respect to asset-backed security
      transactions taken as a whole involving the Credit Risk Manager, and that are
      backed by the same asset type as the Mortgage Loans, and Credit Risk Manager
      Certification shall include all of the statements required under paragraph
      (a)
      of Item 1122 of Regulation AB (§ 229.1122(a)).]

     

    (c) [On
      or
      before March 1 of each calendar year, the Credit Risk Manager shall deliver
      to
      the Administrator, the Trustee and the Depositor a report by a registered public
      accounting firm that attests to, and reports on, the assessment made by the
      Credit Risk Manager pursuant to subsection (b) above. Each such report shall
      be
      made in accordance with standards for attestation engagements issued or adopted
      by the Public Company Accounting Oversight Board.]

     

    
      
        
        

      

      
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              Section
                3.24

            	
              [Limitation
                Upon Liability of the Credit Risk Manager.  

            

    

     

    Neither
      the Credit Risk Manager, nor any of the directors, officers, employees or agents
      of the Credit Risk Manager, shall be under any liability to the Indenture
      Trustee, the Administrator, the Noteholders or the Depositor for any action
      taken or for refraining from the taking of any action in good faith pursuant
      to
      this Agreement, in reliance upon information provided by the Servicer (or a
      subservicer on behalf of the Servicer) and the Master Servicer under the Credit
      Risk Management Agreements or for errors in judgment; provided,
      however,
      that
      this provision shall not protect the Credit Risk Manager or any such Person
      against liability that would otherwise be imposed by reason of willful
      malfeasance, bad faith or gross negligence in its performance of its duties
      or
      by reason of reckless disregard for its obligations and duties under this
      Agreement or the Credit Risk Management Agreements. The Credit Risk Manager
      and
      any director, officer, employee or agent of the Credit Risk Manager 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, and may rely
      in good faith upon the accuracy of information furnished by the Servicer (or
      a
      subservicer on behalf of the Servicer) and the Master Servicer pursuant to
      the
      Credit Risk Management Agreements in the performance of its duties thereunder
      and hereunder.]

     

    
      	 	
              Section
                3.25

            	
              [Removal
                of Credit Risk Manager.

            

    

     

    The
      Credit Risk Manager may be removed as Credit Risk Manager by the Depositor,
      in
      the exercise of its sole discretion, at any time, without cause, upon 90 days
      prior written notice. The Depositor shall provide such written notice to the
      Indenture Trustee and the Administrator, and upon receipt of such notice, the
      Administrator shall provide written notice to the Credit Risk Manager of its
      removal, effective upon receipt of such notice.]

     

    ARTICLE
      IIIA

    

    ADMINISTRATION
      AND MASTER SERVICING OF MORTGAGE LOANS

    
       

      
        	 	
                Section
                  3A.1

              	
                Master
                  Servicer.

              

      

       

    

    The
      Master Servicer shall supervise, monitor and oversee the obligation of the
      Servicer to service and administer the Mortgage Loans in accordance with the
      terms of this 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 Accepted Master
      Servicing Practices. Furthermore, the Master Servicer shall oversee and consult
      with the 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 the
      Servicer and shall cause the Servicer to perform and observe the covenants,
      obligations and conditions to be performed or observed by the Servicer under
      this Agreement. The Master Servicer shall independently and separately monitor
      the 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 Servicer’s and Master Servicer’s records, and based on such reconciled and
      corrected information, prepare the statements specified in Section 4.4 and
      any
      other information and statements required to be provided by the Master Servicer
      hereunder. The Master Servicer shall reconcile the results of its Mortgage
      Loan
      monitoring with the actual remittances of the Servicer to the Collection Account
      pursuant to the terms hereof based on information provided to the Master
      Servicer by the Servicer. For the purposes of this Article 3A, the term
“Servicer” shall include any Special Servicer appointed pursuant to Section
      3.22.

     

    
      
        
        

      

      
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    The
      Indenture Trustee shall furnish the Servicer and/or the Master Servicer with
      any
      limited powers of attorney and other documents in form as provided to it
      necessary or appropriate to enable the Servicer and/or the Master Servicer
      to
      execute in the name of the Indenture Trustee or the Custodian, as applicable,
      all documents reasonably required to perform the servicing functions described
      in Article III or this Article IIIA. The Indenture Trustee shall have no
      responsibility for any action of the Master Servicer or the Servicer pursuant
      to
      any such limited power of attorney and shall be indemnified by the Master
      Servicer or the Servicer, as applicable, for any cost, liability or expense
      incurred by the Indenture Trustee in connection with such Person’s misuse of any
      such power of attorney.

     

    The
      Indenture Trustee, the Custodian and the Administrator shall provide access
      to
      the records and documentation in possession of the Indenture Trustee, the
      Custodian or the Administrator regarding the related Mortgage Loans and REO
      Property and the servicing thereof to the Noteholders, the FDIC, and the
      supervisory agents and examiners of the FDIC, such access being afforded only
      upon reasonable prior written request and during normal business hours at the
      office of the Indenture Trustee, the Custodian or the Administrator;
provided,
      however,
      that,
      unless otherwise required by law, none of the Indenture Trustee, the Custodian
      or the Administrator shall be required to provide access to such records and
      documentation if the provision thereof would violate the legal right to privacy
      of any Mortgagor. The Indenture Trustee, the Custodian and the Administrator
      shall allow representatives of the above entities to photocopy any of the
      records and documentation and shall provide equipment for that purpose at a
      charge that covers the Indenture Trustee’s, the Custodian’s or the
      Administrator’s actual costs.

     

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

     

    Section
      3A.2     [Reserved]

     

    Section
      3A.3     Monitoring
      of Servicer.

     

    (a) The
      Master Servicer shall be responsible for monitoring the compliance by the
      Servicer with its duties under this Agreement. In the review of the Servicer’s
      activities, the Master Servicer may rely upon an Officer’s Certificate of the
      Servicer with regard to the Servicer’s compliance with the terms of this
      Agreement. In the event that the Master Servicer, in its judgment, determines
      that the Servicer should be terminated in accordance with the terms hereof,
      or
      that a notice should be sent pursuant to the terms hereof with respect to the
      occurrence of an event that, unless cured, would constitute a Servicer Event
      of
      Default, the Master Servicer shall notify the Servicer, the Seller and the
      Indenture Trustee thereof and the Master Servicer shall issue such notice or
      take such other action as it deems appropriate.

     

    
      
        
        

      

      
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    (b) The
      Master Servicer, for the benefit of the Indenture Trustee and the Noteholders,
      shall enforce the obligations of the Servicer under this Agreement and shall,
      in
      the event that the Servicer fails to perform its obligations in accordance
      with
      this Agreement, subject to the preceding paragraph, Section 3.4 and Article
      VII,
      terminate the rights and obligations of the Servicer hereunder in accordance
      with the provisions of Article VII. Such enforcement, including, without
      limitation, the legal prosecution of claims 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) The
      Master Servicer shall be entitled to be reimbursed by the Servicer (or from
      amounts on deposit in the Collection Account if the Servicer is unable to
      fulfill its obligations hereunder) for all reasonable out-of-pocket or third
      party costs associated with the transfer of servicing from a predecessor
      Servicer (or if the predecessor Servicer is the Master Servicer, from the
      Servicer immediately preceding the Master Servicer), including, without
      limitation, any reasonable out-of-pocket or third party costs or expenses
      associated with the complete transfer of all servicing data and the completion,
      correction or manipulation of such servicing data as may be required by the
      Master Servicer to correct any errors or insufficiencies in the servicing data
      or otherwise to enable the Master Servicer to service the Mortgage Loans
      properly and effectively, upon presentation of reasonable documentation of
      such
      costs and expenses.

     

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

     

    (e) If
      the
      Master Servicer acts as successor to the Servicer, it will not assume liability
      for the representations and warranties of the terminated Servicer.

     

    Section
      3A.4     Fidelity
      Bond.

     

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

     

    Section
      3A.5     Power
      to Act; Procedures.

     

    
      
        
        

      

      
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    The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority, subject to the provisions of Article VII, to do any and
      all
      things that it may deem necessary or desirable in connection with the master
      servicing and administration of the Mortgage Loans, including but not limited
      to
      the power and authority (i) to execute and deliver, on behalf of the
      Noteholders, the Indenture Trustee and the Administrator, customary consents
      or
      waivers and other instruments and documents, (ii) to consent to transfers of
      any
      Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages,
      (iii) to collect any Insurance Proceeds and Liquidation Proceeds, and (iv)
      to
      effectuate foreclosure or other conversion of the ownership of the Mortgaged
      Property securing any Mortgage Loan, in each case in accordance with the
      provisions of this Agreement and Accepted Master Servicing Practices. The
      Indenture Trustee shall furnish the Master Servicer, upon written request from
      a
      Servicing Officer, with any powers of attorney prepared and delivered to it
      and
      reasonably acceptable to it empowering the Master Servicer or the Servicer
      to
      execute and deliver instruments of satisfaction or cancellation, or of partial
      or full release or discharge, and to foreclose upon or otherwise liquidate
      Mortgaged Property, and to appeal, prosecute or defend in any court action
      relating to the Mortgage Loans or the Mortgaged Property, in accordance with
      this Agreement, and the Indenture Trustee shall execute and deliver such other
      documents prepared and delivered to it and reasonably acceptable to it, as
      the
      Master Servicer or the Servicer may request, to enable the Master Servicer
      to
      master service and administer the Mortgage Loans and carry out its duties
      hereunder, in each case in accordance with Accepted Master Servicing Practices
      (and the Indenture Trustee shall have no liability for misuse of any such powers
      of attorney by the Master Servicer or the Servicer and shall be indemnified
      by
      the Master Servicer or the Servicer, as applicable, for any cost, liability
      or
      expense incurred by the Indenture Trustee in connection with such Person’s use
      or misuse of any such power of attorney). 

     

    Section
      3A.6     Documents,
      Records and Funds in Possession of Master Servicer To Be Held for Indenture
      Trustee.

     

    (a) The
      Master Servicer shall transmit to the Indenture Trustee or Custodian such
      documents and instruments coming into the possession of the Master Servicer
      from
      time to time as are required by the terms hereof to be delivered to the
      Indenture Trustee or Custodian. Any funds received by the Master Servicer in
      respect of any Mortgage Loan or which otherwise are collected by the Master
      Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any
      Mortgage Loan shall be remitted to the Administrator on the next Deposit Date
      for deposit in the Note Payment Account. The Master Servicer shall, and, subject
      to Section 3.15, shall cause the Servicer to, provide access to information
      and
      documentation regarding the Mortgage Loans to the Indenture Trustee, its agents
      and accountants at any time upon reasonable request and during normal business
      hours, and to Noteholders that are savings and loan associations, banks or
      insurance companies, the Office of Thrift Supervision, the FDIC and the
      supervisory agents and examiners of such Office and Corporation or examiners
      of
      any other federal or state banking or insurance regulatory authority if so
      required by applicable regulations of the Office of Thrift Supervision or other
      regulatory authority, such access to be afforded without charge but only upon
      reasonable request in writing and during normal business hours at the offices
      of
      the Master Servicer designated by it. In fulfilling such a request the Master
      Servicer shall not be responsible for determining the sufficiency of such
      information.

     

    
      
        
        

      

      
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    (b) All
      funds
      collected or held by, or under the control of, the Master Servicer, in respect
      of any Mortgage Loans, whether from the collection of principal and interest
      payments or from Liquidation Proceeds or Insurance Proceeds, shall be remitted
      to the Administrator on the next Deposit Date for deposit in the Note Payment
      Account.

     

    Section
      3A.7     Indenture
      Trustee to Retain Possession of Certain Insurance Policies and
      Documents.

     

    The
      Custodian on behalf of the Indenture Trustee shall retain possession and custody
      of the originals (to the extent available) of any primary mortgage insurance
      policies, or certificate of insurance if applicable, and any certificates of
      renewal as to the foregoing as may be issued from time to time as contemplated
      by this Agreement. Until all amounts distributable in respect of the Notes
      have
      been distributed in full and the Master Servicer and the Servicer have otherwise
      fulfilled their respective obligations under this Agreement, the Indenture
      Trustee or the Custodian shall also retain possession and custody of each
      Mortgage File in accordance with and subject to the terms and conditions of
      this
      Agreement. The Master Servicer shall promptly deliver or cause to be delivered
      to the Custodian, upon the execution or receipt thereof, the originals of any
      primary mortgage insurance policies, any certificates of renewal and such other
      documents or instruments that constitute Mortgage Loan Documents that come
      into
      the possession of the Master Servicer from time to time.

     

    Section
      3A.8     Compensation
      for the Master Servicer and the Administrator.

     

    As
      compensation for the activities of the Master Servicer and the Administrator
      hereunder, the Master Servicer and the Administrator shall be entitled to the
      income from investment of or earnings on the funds from time to time in the
      Collection Account, net
      of the
      sum of the Indenture Trustee Fee and the Owner Trustee Fee payable by the Master
      Servicer to the Indenture Trustee and the Owner Trustee, respectively, on behalf
      of the Trust, as provided in Sections 3.5 and 3.8. Each of the Master Servicer
      and the Administrator shall be required to pay all expenses incurred by it
      in
      connection with its activities hereunder and shall not be entitled to
      reimbursement therefor except as provided in this Agreement.

     

    Section
      3A.9     Annual
      Officer’s Certificate as to Compliance.
      

     

    (a) The
      Master Servicer shall deliver to the Depositor, the Indenture Trustee and the
      Administrator on or before March 15 of each year, commencing on March 15,
      20[  ], an Officer’s Certificate, certifying that with respect to the
      period ending December 31 of the prior year: (i) such Servicing Officer has
      reviewed the activities of such Master Servicer during the preceding calendar
      year or portion thereof and its performance under this Agreement, (ii) to the
      best of such Servicing Officer’s knowledge, based on such review, such Master
      Servicer has performed and fulfilled its duties, responsibilities and
      obligations under this Agreement in all material respects throughout such year,
      or, if there has been a default in the fulfillment of any such duties,
      responsibilities or obligations, specifying each such default known to such
      Servicing Officer and the nature and status thereof, (iii) nothing has come
      to
      the attention of such Servicing Officer to lead such Servicing Officer to
      believe that the Master Servicer has failed to perform any of its duties,
      responsibilities and obligations under this Agreement in all material respects
      throughout such year, or, if there has been a material default in the
      performance or fulfillment of any such duties, responsibilities or obligations,
      specifying each such default known to such Servicing Officer and the nature
      and
      status thereof. Upon request, the Administrator shall forward a copy of each
      such statement to each Rating Agency and each Underwriter.

     

    
      
        
        

      

      
        89

        
          

        

      

      
        
        

      

    

    

     

    (b) Copies
      of
      such statements shall be provided to any Noteholder, upon request, by the Master
      Servicer at the Master Servicer’s expense if the Master Servicer failed to
      provide such copies (unless (i) the Master Servicer shall have failed to provide
      the Indenture Trustee with such statement or (ii) the Indenture Trustee shall
      be
      unaware of the Master Servicer’s failure to provide such
      statement).

     

    Section
      3A.10     UCC.

     

    The
      Depositor agrees to file continuation statements for any Uniform Commercial
      Code
      financing statements which the Seller has informed the Depositor were filed
      on
      the Closing Date in connection with the Trust. The Depositor shall file any
      financing statements or amendments thereto required by any change in the Uniform
      Commercial Code.

     

    Section
      3A.11     Obligation
      of the Master Servicer in Respect of Prepayment Interest
      Shortfalls.

     

    In
      the
      event of any Prepayment Interest Shortfalls, the Master Servicer shall deposit
      into the Note Payment Account not later than the related Payment Date an amount
      equal to the lesser of (i) the aggregate amounts required to be paid by the
      Servicer with respect to Prepayment Interest Shortfalls attributable to
      Principal Prepayments on the related Mortgage Loans for the related Payment
      Date, and not so paid by the Servicer, and (ii) the aggregate amount of
      compensation earned by the Master Servicer pursuant to Section
      3.A.8.

     

    ARTICLE
      IV

     

    DEPOSITS
      AND PAYMENTS TO HOLDERS

     

    
      	 	
              Section
                4.1

            	
              Deposits
                and Payments from the Trust
                Accounts.

            

    

     

    (a) On
      each
      Payment Date the Administrator, as Paying Agent and on behalf of the Indenture
      Trustee, shall retain in the Note Payment Account, or deposit into the
      Certificate Distribution Account, as applicable, and to the extent of funds
      on
      deposit in the Note Payment Account, the Total Remittance Amount and shall
      distribute such amount as specified in this Section. 

     

    (b) On
      each
      Payment Date, the Administrator shall pay the Interest Remittance Amount for
      such date in the following order of priority:

     

    (i) [to
      the
      Swap Counterparty, the amount of any Net Swap Payment or Swap Termination
      Payment owed to the Swap Counterparty for such Payment Date (including amounts
      remaining unpaid for previous Payment Dates) pursuant to the Swap Agreement
      (to
      the extent that any such Swap Termination Payment is not due to a Swap
      Counterparty Trigger Event);]

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

    

     

    (ii) concurrently,
      in proportion to the amount of Accrued Note Interest applicable to each such
      Class, to the Senior Notes, Accrued Note Interest for each such Class and such
      Payment Date;

     

    (iii) to
      the
      Class [M] Notes, Accrued Note Interest for such Class and such Payment
      Date;

     

    (iv) to
      the
      Class [B] Notes, Accrued Note Interest for such Class and such Payment
      Date;

     

    (v) [to
      the
      Credit Risk Manager, the Credit Risk Manager’s Fee for such Payment
      Date;]

     

    (vi) to
      the
      Indenture Trustee, any amounts reimbursable pursuant to this Agreement and
      not
      previously reimbursed to the Indenture Trustee due to application of the
      limitations on amounts reimbursable in any Anniversary Year; and

     

    (vii) for
      application as part of Monthly Excess Cashflow for such Payment Date, as
      provided in subsection (d) of this Section, any Interest Remittance Amount
      remaining after application pursuant to clauses (i) through (vi)
      above.

     

    [To
      be
      provided in accordance with the specific structure of each
      takedown.]

     

    (c) On
      each
      Payment Date, the Administrator shall pay the Principal Payment Amount for
      such
      date as follows:

     

    (i) On
      each
Payment
      Date
      (a)
      prior to the Stepdown Date or (b) with respect to which a Trigger Event is
      in
      effect, the
      Administrator shall make the following payments, in the following order of
      priority:

     

    (A) [to
      the
      Swap Counterparty, any Net Swap Payment or Swap Termination Payment owed to
      the
      Swap Counterparty (to the extent payable but not paid from the Interest
      Remittance Amount pursuant to subsection 4.1(b)(i) above);]

     

    (B) to
      the
      Class [A] Notes, sequentially, in that order, in reduction of their Class
      Principal Amounts, until the Class Principal Amount of each such Class has
      each
      been reduced to zero;

     

    (C) to
      the
      Class [M] Notes, in reduction of their Class Principal Amounts, until the Class
      Principal Amount of such Class has been reduced to zero;

     

    (D) to
      the
      Class [B] Notes, in reduction of their Class Principal Amounts, until the Class
      Principal Amount of such Class has been reduced to zero;

     

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

    

    

     

    (E) for
      application as part of Monthly Excess Cashflow for such Payment Date, as
      provided in subsection (d) of this Section, remaining after application pursuant
      to clauses (A) through (D) of this Section 4.1(c)(i).

     

    [To
      be
      provided in accordance with the specific structure of each
      takedown.]

    

    (ii) On
      each
      Payment Date (a) on or after the Stepdown Date and (b) with respect to which
      a
      Trigger Event is not in effect, the Administrator shall make the following
      payments, in the following order of priority:

     

    (A) [to
      the
      Swap Counterparty, any Net Swap Payment or Swap Termination Payment owed to
      the
      Swap Counterparty (to the extent payable but not paid from the Interest
      Remittance Amount pursuant to subsection 4.1(b)(i) above);]

     

    (B) (1)
      so
      long as any of the Class [M] or Class [B] Notes are outstanding, to the Class
      [A] Notes, sequentially, in that order, in reduction of their respective Class
      Principal Amounts, an amount equal to the lesser of (x) the Principal Payment
      Amount for such Payment Date and (y) the Senior Principal Payment Amount for
      such Payment Date, until the Class Principal Amount of each such Class has
      been
      reduced to zero; or (2) if none of the Class [M] or Class [B] Notes are
      outstanding, to the Class [A] Notes, sequentially, in that order, in reduction
      of their respective Class Principal Amounts, the Principal Payment Amount for
      such Payment Date until the Class Principal Amount of each such Class has been
      reduced to zero;

     

    (C) to
      the
      Class [M] Notes, in reduction of their Class Principal Amount, an amount equal
      to the lesser of (x) the excess of (a) the Principal Payment Amount for
      such Payment Date over (b) the amount distributed to the Class [A] Notes on
      such
      Payment Date pursuant to clause (B) above, and (y) the [M] Principal Payment
      Amount for such Payment Date, until the Class Principal Amount of such Class
      has
      been reduced to zero;

     

    (D) to
      the
      Class [B] Notes, in reduction of their Class Principal Amount, an amount equal
      to the lesser of (x) the excess of (a) the Principal Payment Amount for
      such Payment Date over (b) the amount distributed to the Class [A] and Class
      [M]
      Notes on such Payment Date pursuant to clauses (B) and (C) above, and (y) the
      [B] Principal Payment Amount for such Payment Date, until the Class Principal
      Amount of such Class has been reduced to zero; and

     

    (E) for
      application as part of Monthly Excess Cashflow for such Payment Date, as
      provided in subsection (d) of this Section, any Principal Payment Amount
      remaining after application pursuant to clauses (A) through (D) of this Section
      4.1(c)(ii).

     

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

    

     

    Notwithstanding
      the foregoing, on any Payment Date on which the Class Principal Amount of each
      Class of Notes having a higher priority of payment has been reduced to zero,
      any
      remaining Principal Payment Amount shall be distributed to the remaining Notes
      in the order of priority set forth above until the Class Principal Amount of
      each such Class has been reduced to zero. 

     

    [To
      be
      provided in accordance with the specific structure of each
      takedown.]

     

    (d) On
      each
      Payment Date, the Administrator shall distribute the Monthly Excess Cashflow,
      [together with any amounts received by the Administrator under the Class N
      Cap
      Agreement] and any Prepayment Penalties, to the extent specified in clauses
      (v)
      through (viii) below in this Section 4.1(d), for such date in the following
      order of priority:

     

    (i) on
      each
      Payment Date occurring (a) before the Stepdown Date or (b) on or after the
      Stepdown Date but for which a Trigger Event is in effect, then until the
      aggregate Class Principal Amount of the LIBOR Notes equals the positive
      difference between (x) the Pool Balance for such Payment Date and (y) the
      Targeted Overcollateralization Amount for such Payment Date, in the following
      order of priority,

     

    (A) to
      the
      Class [A] Notes, sequentially, in that order, after giving effect to previous
      principal payments on such Payment Date pursuant to subsections 4.1(c)(i) above,
      in reduction of their respective Class Principal Amounts, until the Class
      Principal Amount of each such Class has been reduced to zero;

     

    (B) to
      the
      Class [M] Notes, in reduction of their Class Principal Amount, until the Class
      Principal Amount of such Class has been reduced to zero; and

     

    (C) to
      the
      Class [B] Notes, in reduction of their Class Principal Amount, until the Class
      Principal Amount of such Class has been reduced to zero;

     

    [To
      be
      provided in accordance with the specific structure of each
      takedown.]

    

    (ii) on
      each
      Payment Date occurring (a) on or after the Stepdown Date and (b) for which
      a
      Trigger Event is
      not in
      effect,
      in the
      following order of priority,

     

    (A) to
      the
      Class [A] Notes, sequentially, in that order, after giving effect to previous
      principal payments on such Payment Date pursuant to subsection 4.1(c)(ii) above,
      in reduction of their respective Class Principal Amounts, until the aggregate
      Class Principal Amount of such Notes, after giving effect to payments on such
      Payment Date, equals the Senior Target Amount; 

     

    (B) to
      the
      Class [M] Notes, in reduction of their Class Principal Amount, until the
      aggregate Class Principal Amount of the Class [A] and Class [M] Notes, after
      giving effect to payments on such Payment Date, equals the [M] Target Amount;
      and

     

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

    

     

    (C) to
      the
      Class [B] Notes, in reduction of their Class Principal Amount, until the
      aggregate Class Principal Amount of the Class [A], Class [M] and Class [B]
      Notes, after giving effect to payments on such Payment Date, equals the [B]
      Target Amount;

     

    [To
      be
      provided in accordance with the specific structure of each
      takedown.]

    

    (iii) on
      each
      Payment Date, in the following order of priority,

     

    (A) concurrently,
      in proportion to their respective Basis Risk Shortfalls, after giving effect
      to
      payments pursuant to Section 4.1(d)(i) or 4.1(d)(ii) on such Payment Date,
      to
      the Senior Notes, any applicable Basis Risk Shortfall for each such Class and
      such Payment Date;

     

    (B) to
      the
      Class [M] Notes, any applicable Basis Risk Shortfall for such Class and such
      Payment Date; and

     

    (C) to
      the
      Class [B] Notes, any applicable Basis Risk Shortfall for such Class and such
      Payment Date;

     

    [To
      be
      provided in accordance with the specific structure of each
      takedown.]

    

    (iv) on
      each
      Payment Date, in the following order of priority;

     

    (A) to
      the
      Class [M] Notes, any Deferred Interest for such Class and such Payment Date;
      and

     

    (B) to
      the
      Class [B] Notes, any Deferred Interest for such Class and such Payment
      Date;

     

    [To
      be
      provided in accordance with the specific structure of each
      takedown.]

    

    (v) on
      each
      Payment Date, from any remaining Monthly Excess Cashflow after application
      pursuant to clauses (i) through (iv) above, [together with all amounts received
      by the Administrator under the Class N Cap Agreement] [and all Prepayment
      Penalties received by the Administrator during the related Prepayment Period,
      to
      the Class N1 Notes, Accrued Note Interest and any Carryforward
      Interest];

     

    (vi) on
      each
      Payment Date, from any remaining Monthly Excess Cashflow after application
      pursuant to clauses (i) through (v) above, [together with all remaining amounts
      received by the Administrator under the Class N Cap Agreement] [and all
      remaining Prepayment Penalties received by the Administrator during the related
      Prepayment Period, to the Class N2 Notes, Accrued Note Interest and any
      Carryforward Interest];

     

    (vii) on
      each
      Payment Date, from any remaining Monthly Excess Cashflow after application
      pursuant to clauses (i) through (vi) above, [together with all remaining amounts
      received by the Administrator under the Class N Cap Agreement and all remaining
      Prepayment Penalties received by the Administrator during the related Prepayment
      Period, to the Class N1 Notes, in reduction of their Class Principal Amount,
      until the Class Principal Amount thereof has been reduced to zero];

     

    
      
        
        

      

      
        94

        
          

        

      

      
        
        

      

    

    

     

    (viii) on
      each
      Payment Date, from any remaining Monthly Excess Cashflow after application
      pursuant to clauses (i) through (vii) above, [together with all remaining
      amounts received by the Administrator under the Class N Cap Agreement and all
      remaining Prepayment Penalties received by the Administrator during the related
      Prepayment Period, to the Class N2 Notes, in reduction of their Class Principal
      Amount, until the Class Principal Amount thereof has been reduced to
      zero];

     

    (ix) [on
      each
      Payment Date, for payment to the Swap Counterparty, any unpaid Swap Termination
      Payment triggered by a Swap Counterparty Trigger Event owed to the Swap
      Counterparty pursuant to the Swap Agreement;]

     

    (x) on
      each
      Payment Date, for payment to [the Swap Counterparty,] [the Cap Counterparty]
      or
      [the Class N Cap Counterparty], as applicable, any amount payable in connection
      with the purchase of a substitute [Swap Agreement], [Cap Agreement] or [Class
      N
      Cap Agreement], if any; and

     

    (xi) on
      each
      Payment Date, to the Certificate Distribution Account, for payment to the
      Residual Holder (or as otherwise provided in the Trust Agreement), any amount
      remaining on such Payment Date after application pursuant to clauses (i) through
      (x) above.

     

    [To
      be
      provided in accordance with the specific structure of each
      takedown.]

     

    
      	 	
              Section
                4.2

            	
              Method
                of Distribution.

            

    

     

    (a) All
      payments with respect to each Class of Notes on each Payment Date shall be
      made
      pro rata among the outstanding Notes of such Class, based on the Percentage
      Interest in such Class represented by each Note. Distributions to the
      Noteholders on each Payment Date shall be made by the Administrator to the
      Noteholders of record on the related Record Date by check or money order mailed
      to a Noteholder at the address appearing in the Note Register, or upon written
      request by such Noteholder to the Administrator made not later than the
      applicable Record Date, by wire transfer to a U.S. depository institution
      acceptable to the Administrator, or by such other means of payment as such
      Noteholder and the Administrator shall agree.

     

    (b) Each
      payment with respect to a Book-Entry Note shall be paid to the Depository,
      which
      shall credit the amount of such payment to the accounts of its Depository
      Participants in accordance with its normal procedures. Each Depository
      Participant shall be responsible for disbursing such payment to the Note Owners
      that it represents and to each financial intermediary for which it acts as
      agent. Each such financial intermediary shall be responsible for disbursing
      funds to the Note Owners that it represents. All such credits and disbursements
      with respect to a Book-Entry Note are to be made by the Depository and the
      Depository Participants in accordance with the provisions of the applicable
      Notes. The Administrator shall not have any responsibility therefor except
      as
      otherwise provided by applicable law.

     

    
      
        
        

      

      
        95

        
          

        

      

      
        
        

      

    

    

     

    (c) The
      Administrator shall withhold or cause to be withheld such amounts as it
      reasonably determines are required by the Code (giving full effect to any
      exemptions from withholding and related certifications required to be furnished
      by Noteholders or Note Owners and any reductions to withholding by virtue of
      any
      bilateral tax treaties and any applicable certification required to be furnished
      by Noteholders or Note Owners with respect thereto) from payments to be made
      to
      a “Foreign Person” as defined in Section 1445(f)(3) of the Code. 

     

    
      	 	
              Section
                4.3

            	
              [Reserved]

            

    

     

    
      	 	
              Section
                4.4

            	
              Reports
                to the Depositor,
                the Administrator and the Indenture Trustee.

            

    

     

    On
      or
      before the Business Day preceding each Payment Date, the Servicer shall notify,
      or cause to be notified, the Depositor, the Master Servicer, the Indenture
      Trustee and [the Credit Risk Manager], of the following information with respect
      to such Payment Date (which notification may be given by facsimile, electronic
      transmission or by telephone promptly confirmed in writing):

     

    (i) the
      aggregate amount deposited in the Collection Account and the source thereof
      (identified as interest, scheduled principal or unscheduled principal);
      and

     

    (ii) the
      amount of any Realized Losses.

     

    
      	 	
              Section
                4.5

            	
              Reports
                by or on Behalf of the Indenture Trustee.

            

    

     

    (a) On
      each
      Payment Date, based on information received from the Servicer and/or the Master
      Servicer, the Swap Counterparty, the Cap Counterparty and the Class N Cap
      Counterparty, the Administrator shall prepare and make available a statement
      containing the following information: 

     

    (i) the
      aggregate amount of payments made on such Payment Date to the Holders of each
      Class of Notes other than any Class of Notional Notes, to the extent applicable,
      allocable to principal, including Net Liquidation Proceeds and Insurance
      Proceeds, stating separately the amount attributable to scheduled principal
      payments and unscheduled payments in the nature of principal;

     

    (ii) the
      aggregate amount of payments made on such Payment Date to the Holders of each
      Class of Notes allocable to interest and the calculation thereof;

     

    (iii) the
      amount, if any, of any payments to the Holders of the Ownership
      Certificates;

     

    (iv) [the
      amount, if any, of all Prepayment Penalties paid to the Class N
      Notes;]

     

    
      
        
        

      

      
        96

        
          

        

      

      
        
        

      

    

    

     

    (v) the
      amount of Delinquency Advances and, to the extent reported by the Servicer,
      Servicing Advances made by or on behalf of the Servicer for the related
      Collection Period, the amount of unrecovered Delinquency Advances and, to the
      extent reported by the Servicer, Servicing Advances outstanding (after giving
      effect to Advances made on such Payment Date) and the aggregate amount of
      Nonrecoverable Advances for such Payment Date;

     

    (vi) the
      Pool
      Balance as of the close of business on the last day of the related Prepayment
      Period (after giving effect to the principal portion of Scheduled Payments
      due
      during the related Collection Period, to the extent received or advanced, and
      unscheduled collections of principal received during the related Prepayment
      Period or Collection Period, as applicable);

     

    (vii) the
      Class
      Principal Amount (or Class Notional Amount) of each Class of Notes, to the
      extent applicable, as of such Payment Date after giving effect to payments
      allocated to principal reported under clause (i) above;

     

    (viii) the
      amount of any Realized Losses incurred or received with respect to the Mortgage
      Loans (x) in the applicable Prepayment Period and (y) in the aggregate since
      the
      Cut-off Date, and the aggregate Realized Losses during the preceding twelve
      month period expressed as a percentage of the total Scheduled Principal Balances
      of the Mortgage Loans;

     

    (ix) the
      amount of the Servicing Fee, [Credit Risk Manager’s Fee] and any PMI Insurance
      Premiums paid with respect to such Payment Date (or the related Collection
      Period);

     

    (x) the
      number and aggregate Scheduled Principal Balance of Mortgage Loans, as reported
      to the Master Servicer by the Servicer, (a) remaining outstanding (b) Delinquent
      30 to 59 days on a contractual basis, (c) Delinquent 60 to 89 days on a
      contractual basis, (d) Delinquent 90 or more days on a contractual basis, (e)
      as
      to which foreclosure proceedings have been commenced as of the close of business
      on the last Business Day of the calendar month immediately preceding the month
      in which such Payment Date occurs, (f) in bankruptcy and (g) that are REO
      Properties;

     

    (xi) the
      aggregate Scheduled Principal Balance of any Mortgage Loans with respect to
      which the related Mortgaged Property became a REO Property as of the close
      of
      business on the last Business Day of the calendar month immediately preceding
      the month in which such Payment Date occurs;

     

    (xii) with
      respect to substitution of Mortgage Loans in the preceding calendar month,
      the
      Scheduled Principal Balance of each Deleted Mortgage Loan, and of each Qualified
      Substitute Mortgage Loan;

     

    (xiii) the
      aggregate outstanding Deferred Interest, Net Prepayment Interest Shortfalls,
      Net
      Prepayment Interest Excess and Basis Risk Shortfalls, if any, for each Class
      of
      Notes, after giving effect to payments on such Payment Date;

     

    
      
        
        

      

      
        97

        
          

        

      

      
        
        

      

    

    

     

    (xiv) the
      level
      of LIBOR and the Note Interest Rate applicable to each Class of Notes for such
      Payment Date (and the related Accrual Period);

     

    (xv) the
      Interest Remittance Amount and the Principal Remittance Amount for such Payment
      Date;

     

    (xvi) if
      applicable, the amount of any shortfall (i.e., the difference between the
      aggregate amounts of principal and interest which Noteholders would have
      received if there were sufficient available amounts in the Note Payment Account
      and the amounts actually paid); 

     

    (xvii) the
      amount of any Overcollateralization Deficiency Amount after giving effect to
      the
      payments made on such Payment Date; 

     

    (xviii) [the
      amount of any Net Swap Payment to the Trust pursuant to the Swap Agreement,
      any
      Net Swap Payment to the Swap Counterparty made pursuant to Section 4.1, any
      Swap
      Termination Payment to the Trust made pursuant to Swap Agreement and any Swap
      Termination Payment to the Swap Counterparty made pursuant to Section 4.1;
      and]

     

    (xix) the
      level
      of LIBOR and the Note Interest Rate that will be applicable to the next Payment
      Date with respect to each Class of Notes.

     

    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) above, the
      amounts shall be expressed as a dollar amount per $1,000 of original principal
      amount of Notes.

     

    The
      Administrator shall make such report and additional loan level information
      (and,
      at its option, any additional files containing the same information in an
      alternative format) available each month to Noteholders and the Rating Agencies
      via the Administrator’s internet website. The Administrator’s internet website
      shall initially be located at
“www.[          ].com.”
Assistance in using the website can be obtained by calling the Administrator’s
      customer service desk at
      [          ]. 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 and indicating such.
      The
      Administrator shall have the right to change the way such statements are
      distributed in order to make such payment more convenient and/or more accessible
      to the above parties and the Administrator shall provide timely and adequate
      notification to all above parties regarding any such changes.

     

    The
      Servicer shall furnish to the Master Servicer, no later than the Business Day
      next succeeding the Determination Date, a monthly report containing such
      information and data regarding the Mortgage Loans and the related REO
      Properties, in a format as shall be agreed to by the Master Servicer and the
      Servicer. The Master Servicer shall furnish to the Administrator, no later
      than
      the Business Day preceding each Payment Date, a monthly report containing such
      information and data regarding the Mortgage Loans and the related REO Properties
      as shall be necessary to permit the Administrator to prepare the statement
      described in the first paragraph of this Section 4.5(a).

     

    
      
        
        

      

      
        98

        
          

        

      

      
        
        

      

    

    

     

    In
      preparing or furnishing the foregoing information, the Administrator shall
      be
      entitled to rely conclusively on the accuracy of the information or data (i)
      regarding the Mortgage Loans and the related REO Property that has been provided
      to the Administrator by the Master Servicer or the Servicer and (ii) regarding
      the [Swap Agreement] or [the Cap Agreements] provided by [the Swap
      Counterparty], [the Cap Counterparty] and [the Class N Cap Counterparty],
      respectively, and the Administrator shall not be obligated to verify, recompute,
      reconcile or recalculate any such information or data. The Administrator shall
      be entitled to conclusively rely on the Mortgage Loan data provided by the
      Master Servicer or the Servicer and shall have no liability for any errors
      in
      such Mortgage Loan data.

     

    (b) Within
      90
      days, or such shorter period as may be required by statute or regulation, after
      the end of each calendar year, the Administrator shall make available to each
      Person who at any time during the calendar year was a Securityholder of record
      a
      report summarizing the items provided to the Securityholders pursuant to
      Sections 4.5(a)(i) and 4.5(a)(ii) on an annual basis as may be required to
      enable such Holders to prepare their federal income tax returns; provided,
      however,
      that
      this Section 4.5(b) shall not be applicable where relevant reports or summaries
      are required elsewhere in this Agreement. The Administrator shall be deemed
      to
      have satisfied this requirement if it forwards such information in any other
      format permitted by the Code.

     

     

    
      	 	
              Section
                4.6

            	
              Control
                of the Trust Accounts.

            

    

     

    (a) The
      Depositor, the Issuer and the Indenture Trustee hereby appoint the Administrator
      as Securities Intermediary with respect to the Trust Accounts. The Issuer has,
      pursuant to the Indenture, granted to the Indenture Trustee, for the benefit
      of
      the Noteholders, a security interest to secure all amounts due Noteholders
      hereunder in and to the Note Payment Account and the Security Entitlements
      to
      all Financial Assets credited to the Trust Accounts, including without
      limitation all amounts, securities, investments, Financial Assets, investment
      property and other property from time to time deposited in or credited to the
      Note Payment Account and all proceeds thereof, and the Depositor hereby grants
      to the Issuer, as collateral agent for the benefit of the Residual Holder,
      a
      security interest to secure all amounts due the Residual Holder hereunder in
      and
      to the Certificate Distribution Account and the Security Entitlements and all
      Financial Assets credited to the Certificate Distribution Account, including
      without limitation all amounts, securities, investments, Financial Assets,
      investment property and other property from time to time deposited in or
      credited to the Certificate Distribution Account and all proceeds thereof.
      Amounts held from time to time in the Note Payment Account shall continue to
      be
      held by the Securities Intermediary for the benefit of the Indenture Trustee,
      as
      collateral agent, for the benefit of the Noteholders, and amounts held from
      time
      to time in the Certificate Distribution Account shall continue to be held by
      the
      Securities Intermediary for the benefit of the Issuer, as collateral agent,
      for
      the benefit of the Residual Holder. Upon the termination of the Issuer or the
      discharge of the Indenture, the Indenture Trustee shall inform the Securities
      Intermediary of such termination. By acceptance of their Securities or interests
      therein, the Securityholders shall be deemed to have appointed the Administrator
      as Securities Intermediary. The Administrator hereby accepts such appointment
      as
      Securities Intermediary.

     

    (b) With
      respect to the Trust Account Property credited to the Trust Accounts, the
      Securities Intermediary agrees that:

     

    
      
        
        

      

      
        99

        
          

        

      

      
        
        

      

    

    

     

    (i) with
      respect to any Trust Account Property that is held in deposit accounts, each
      such deposit account shall be subject to the exclusive custody and control
      of
      the Securities Intermediary, and the Securities Intermediary shall have sole
      signature authority with respect thereto;

     

    (ii) the
      sole
      assets permitted in the Trust Accounts shall be those as the Securities
      Intermediary agrees to treat as Financial Assets; and

     

    (iii) any
      such
      Trust Account Property that is, or is treated as, a Financial Asset shall be
      physically delivered (accompanied by any required endorsements) to, or credited
      to an account in the name of, the Securities Intermediary or other eligible
      institution maintaining any Trust Accounts in accordance with the Securities
      Intermediary’s customary procedures such that the Securities Intermediary or
      such other institution establishes a Security Entitlement in favor of the
      Indenture Trustee (or the Issuer, in the case of the Certificate Distribution
      Account) with respect thereto over which the Securities Intermediary or such
      other institution has Control.

     

    (c) The
      Securities Intermediary hereby confirms that (A) each Trust Account is an
      account to which Financial Assets are or may be credited, and the Securities
      Intermediary shall, subject to the terms of this Agreement, treat the Indenture
      Trustee, as collateral agent, as entitled to exercise the rights that comprise
      any Financial Asset credited to any Note Payment Account, and the Issuer, as
      collateral agent, as entitled to exercise the rights that comprise any Financial
      Asset credited to the Certificate Distribution Account, (B) all Trust Account
      Property in respect of any Trust Account will be promptly credited by the
      Securities Intermediary to such account, and (C) all securities or other
      property underlying any Financial Assets credited to any Trust Account shall
      be
      registered in the name of the Securities Intermediary, endorsed to the
      Securities Intermediary or in blank or credited to another securities account
      maintained in the name of the Securities Intermediary and in no case (x) will
      any Financial Asset credited to the Note Payment Account be registered in the
      name of the Depositor or the Issuer, payable to the order of the Depositor
      or
      the Issuer or specially endorsed to the Depositor or the Issuer, or (y) will
      any
      Financial Asset credited to the Certificate Distribution Account be registered
      in the name of the Depositor, payable to the order of the Depositor or specially
      endorsed to the Depositor, except to the extent the foregoing have been
      specially endorsed to the Securities Intermediary or in blank.

     

    (d) The
      Securities Intermediary hereby agrees that each item of property (whether
      investment property, Financial Asset, security, instrument or cash) credited
      to
      any Trust Account shall be treated as a Financial Asset.

     

    (e) If
      at any
      time the Securities Intermediary shall receive an Entitlement Order from the
      Indenture Trustee directing transfer or redemption of any Financial Asset
      relating to the Note Payment Account, the Securities Intermediary shall comply
      with such Entitlement Order without further consent by the Depositor, the Issuer
      or any other Person. If at any time the Indenture Trustee notifies the
      Securities Intermediary in writing that the Issuer has been terminated or the
      Indenture discharged in accordance herewith and with the Trust Agreement or
      the
      Indenture, as applicable, and the security interest granted pursuant to the
      Indenture has been released, then thereafter if the Securities Intermediary
      shall receive any order from the Depositor or the Issuer directing transfer
      or
      redemption of any Financial Asset relating to any Trust Account, the Securities
      Intermediary shall comply with such Entitlement Order without further consent
      by
      the Indenture Trustee or any other Person.

     

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

    

     

    If
      at any
      time the Securities Intermediary shall receive an Entitlement Order from the
      Issuer directing transfer or redemption of any Financial Asset relating to
      the
      Certificate Distribution Account, the Securities Intermediary shall comply
      with
      such Entitlement Order without further consent by the Depositor or any other
      Person. If at any time the Issuer notifies the Securities Intermediary in
      writing that the Issuer has been terminated in accordance herewith and with
      the
      Trust Agreement and the security interest granted above has been released,
      then
      thereafter if the Securities Intermediary shall receive any order from the
      Depositor directing transfer or redemption of any Financial Asset relating
      to
      the Certificate Distribution Account, the Securities Intermediary shall comply
      with such entitlement order without further consent by the Issuer or any other
      Person.

     

    (f) In
      the
      event that the Securities Intermediary has or subsequently obtains by agreement,
      operation of law or otherwise a security interest in any Trust Account or any
      Financial Asset credited thereto, the Securities Intermediary hereby agrees
      that
      such security interest shall be subordinate to the security interest of the
      Indenture Trustee, in the case of the Note Deposit Account, or of the Issuer,
      in
      the case of the Certificate Distribution Account. The Financial Assets credited
      to the Trust Accounts will not be subject to deduction, set-off, banker’s lien,
      or any other right in favor of any Person other than the Indenture Trustee
      in
      the case of the Note Payment Account, or of the Issuer, in the case of the
      Certificate Distribution Account (except that the Securities Intermediary may
      set-off (i) all amounts due to it in respect of its customary fees and expenses
      for the routine maintenance and operation of the Trust Accounts and (ii) the
      face amount of any checks which have been credited to any Trust Account but
      are
      subsequently returned unpaid because of uncollected or insufficient
      funds).

     

    (g) There
      are
      no other agreements entered into between the Securities Intermediary in such
      capacity and the Depositor or the Issuer with respect to any Trust Account.
      In
      the event of any conflict between this Agreement (or any provision of this
      Agreement) and any other agreement now existing or hereafter entered into,
      the
      terms of this Agreement shall prevail.

     

    (h) The
      rights and powers granted under the Indenture and herein to (x) the Indenture
      Trustee have been granted in order to perfect its security interest in the
      Note
      Payment Account and the Security Entitlements to the Financial Assets credited
      thereto, and (y) the Issuer have been granted in order to perfect its security
      interest in the Certificate Distribution Account and the Security Entitlements
      to the Financial Assets credited thereto, and are powers coupled with an
      interest and will neither be affected by the bankruptcy of the Depositor or
      the
      Issuer nor by the lapse of time. The obligations of the Securities Intermediary
      hereunder shall continue in effect until the security interest of the Indenture
      Trustee in the Note Payment Account or of the Issuer in the Certificate
      Distribution Account, and in such Security Entitlements, has been terminated
      pursuant to the terms of this Agreement and the Indenture Trustee or the Issuer,
      as applicable, has notified the Securities Intermediary of such termination
      in
      writing.

     

    (i) Notwithstanding
      anything else contained herein, the Depositor and the Issuer agree that the
      Trust Accounts will be established only with the Securities Intermediary or
      another institution meeting the requirements of this Section, which by
      acceptance of its appointment as Securities Intermediary agrees substantially
      as
      follows: (1) it will comply with Entitlement Orders related to the Note Deposit
      Accounts issued by the Indenture Trustee, as collateral agent, without further
      consent by the Depositor or the Issuer, and with Entitlement Orders related
      to
      the Certificate Distribution Account issued by the Issuer, as collateral agent,
      without further consent by the Depositor; (2) until termination of the Issuer
      or
      discharge of the Indenture, it will not enter into any other agreement related
      to such accounts pursuant to which it agrees to comply with Entitlement Orders
      of any Person other than the Indenture Trustee, as collateral agent with respect
      to the Note Payment Account or the Issuer, as collateral agent with respect
      to
      the Certificate Distribution Account; and (3) all assets delivered or credited
      to it in connection with such accounts and all investments thereof will be
      promptly credited to the applicable account.

     

    
      
        
        

      

      
        101

        
          

        

      

      
        
        

      

    

    

     

    (j) Notwithstanding
      the foregoing, the Issuer shall have the power, revocable by the Indenture
      Trustee or by the Owner Trustee with the consent of the Indenture Trustee,
      to
      instruct the Indenture Trustee and the Administrator to make withdrawals and
      distributions from the Trust Accounts for the purpose of permitting the
      Administrator or the Issuer to carry out its respective duties hereunder or
      permitting the Indenture Trustee to carry out its duties under the
      Indenture.

     

    (k) Each
      of
      the Depositor and the Issuer agrees to take or cause to be taken such further
      actions, to execute, deliver and file or cause to be executed, delivered and
      filed such further documents and instruments (including, without limitation,
      any
      financing statements under the relevant UCC or this Agreement) as may be
      necessary to perfect the interests created by this Section in favor of the
      Issuer and the Indenture Trustee and otherwise fully to effectuate the purposes,
      terms and conditions of this Section. The Depositor shall:

     

    (i) promptly
      execute, deliver and file any financing statements, amendments, continuation
      statements, assignments, certificates and other documents with respect to such
      interests and perform all such other acts as may be necessary in order to
      perfect or to maintain the perfection of the Issuer’s and the Indenture
      Trustee’s security interest in the Trust Account Property;

     

    (ii) make
      the
      necessary filings of financing statements or amendments thereto within five
      days
      after the occurrence of any of the following: (1) any change in its corporate
      name or any trade name or its jurisdiction of organization; (2) any change
      in
      the location of its chief executive office or principal place of business;
      and
      (3) any merger or consolidation or other change in its identity or corporate
      structure and promptly notify the Issuer and the Indenture Trustee of any such
      filings; and

     

    (iii) Neither
      the Depositor nor the Issuer shall organize under the law of any jurisdiction
      other than the State under which each is organized as of the Closing Date
      (whether changing its jurisdiction of organization or organizing under an
      additional jurisdiction) without giving 30 days prior written notice of such
      action to its immediate and mediate transferee, including the Indenture Trustee.
      Before effecting such change, each of the Depositor or the Issuer proposing
      to
      change its jurisdiction of organization shall prepare and file in the
      appropriate filing office any financing statements or other statements necessary
      to continue the perfection of the interests of its immediate and mediate
      transferees, including the Indenture Trustee, in the Trust Account Property.
      In
      connection with the transactions contemplated by the Operative Documents
      relating to the Trust Account Property, each of the Depositor and the Issuer
      authorizes its immediate or mediate transferee, including the Indenture Trustee,
      to file in any filing office any initial financing statements, any amendments
      to
      financing statements, any continuation statements, or any other statements
      or
      filings as provided in the Indenture.

     

    
      
        
        

      

      
        102

        
          

        

      

      
        
        

      

    

    

     

    None
      of
      the Securities Intermediary or any director, officer, employee or agent of
      the
      Securities Intermediary shall be under any liability to the Indenture Trustee
      or
      the Securityholders for any action taken, or not taken, in good faith pursuant
      to this Agreement, or for errors in judgment; provided,
      however,
      that
      this provision shall not protect the Securities Intermediary against any
      liability to the Indenture Trustee or the Securityholders which would otherwise
      be imposed by reason of the Securities Intermediary’s willful misconduct, bad
      faith or negligence in the performance of its obligations or duties hereunder.
      The Securities Intermediary and any director, officer, employee or agent of
      the
      Securities Intermediary may rely in good faith on any document of any kind
      which, prima
      facie,
      is
      properly executed and submitted by any Person respecting any matters arising
      hereunder. The Securities Intermediary shall be under no duty to inquire into
      or
      investigate the validity, accuracy or content of such document. The Issuer
      shall
      indemnify the Securities Intermediary for and hold it harmless against any
      loss,
      liability or expense arising out of or in connection with this Agreement and
      carrying out its duties hereunder, including the costs and expenses of defending
      itself against any claim of liability, except in those cases where the
      Securities Intermediary has been guilty of bad faith, negligence or willful
      misconduct. The foregoing indemnification shall survive any termination of
      this
      Agreement or the resignation or removal of the Securities
      Intermediary.

     

    
      	 	
              Section
                4.7

            	
              [The
                Swap Agreement and the Cap Agreements. 

            

    

     

    (a) On
      each
      Payment Date for which the Administrator has received a payment under the Swap
      Agreement, the Cap Agreement or the Class N Cap Agreement, the Administrator
      shall pay such amounts pursuant to priorities provided in Section 4.1. On each
      Payment Date, the Administrator shall pay in accordance with the monthly report
      furnished by it with respect to such Payment Date pursuant to Section 4.5 in
      the
      order of priority and to the extent specified in Section 4.1 of this Agreement
      any payments made by the Swap Counterparty, the Cap Counterparty or the Class
      N
      Cap Counterparty to the Administrator on behalf of the Trust for such Payment
      Date with respect to the Swap Agreement, the Cap Agreement or the Class N Cap
      Agreement, as applicable.

     

    (b) If
      the
      Administrator shall not have received a payment with respect to the Swap
      Agreement, the Cap Agreement or the Class N Cap Agreement by the date on which
      such payment was due and payable pursuant to the terms thereof, the
      Administrator shall make demand upon the Swap Counterparty, the Cap Counterparty
      or the Class N Cap Counterparty, as applicable, for immediate payment, and
      the
      Indenture Trustee may, and at the direction of a majority (by Voting Interest)
      of the Noteholders shall, take any available legal action, including the
      prosecution of any claims in connection therewith. The Depositor and the Issuer
      shall cooperate with the Administrator and the Indenture Trustee in connection
      with any such demand or action to the extent reasonably requested by the
      Administrator or the Indenture Trustee. The reasonable legal fees and expenses
      incurred by the Indenture Trustee in connection with the prosecution of any
      such
      legal action shall be reimbursable to the Indenture Trustee from the
      Trust.

     

    
      
        
        

      

      
        103

        
          

        

      

      
        
        

      

    

    

     

    (c) At
      any
      time when the Issuer is permitted to terminate the Swap Agreement, the Cap
      Agreement or the Class N Cap Agreement pursuant to the terms of such agreement
      (whether due to the occurrence of an event of default, a termination event
      or
      otherwise), the Indenture Trustee, on behalf of the Issuer, shall terminate
      such
      Swap Agreement, Cap Agreement or Class N Cap Agreement in writing (with a copy
      to the Administrator) (i) subject to the Rating Agency Condition or (ii) at
      the
      written direction of any Rating Agency; provided that prior to or simultaneously
      with any termination of the Swap Agreement, the Cap Agreement or the Class
      N Cap
      Agreement by the Issuer as a result of any downgrade of the ratings of the
      Swap
      Counterparty, the Cap Counterparty, the Class N Cap Counterparty or their
      respective credit support providers, the Issuer shall have entered into a
      substitute Swap Agreement, Cap Agreement or Class N Cap Agreement, as
      applicable.

     

    (d) In
      the
      event of an early termination of the Swap Agreement, the Cap Agreement or the
      Class N Cap Agreement, the Issuer shall enter into a substitute Swap Agreement,
      Cap Agreement or Class N Cap Agreement, as applicable, (i) within 20 days after
      the termination of such existing Swap Agreement, Cap Agreement or Class N Cap
      Agreement or (ii) prior to or simultaneously with the termination of the
      existing Swap Agreement, Cap Agreement or Class N Cap Agreement as described
      in
      Section 4.7(c) above, with a substitute counterparty acceptable to the Rating
      Agencies. The Depositor, on behalf of the Issuer, shall send written notice
      to
      the Administrator, the Indenture Trustee and each Rating Agency, within 10
      days
      of the termination of the existing Swap Agreement, Cap Agreement or Class N
      Cap
      Agreement, as applicable, identifying a proposed counterparty with respect
      to
      the substitute Swap Agreement, Cap Agreement or Class N Cap Agreement. Any
      proposed substitute counterparty shall be subject to the prior written approval
      of each Rating Agency. 

     

    (e) Any
      up-front fee payable to a replacement Swap Counterparty, Cap Counterparty or
      Class N Cap Counterparty or other cost or expense associated with the Issuer’s
      entering into a new Swap Agreement, Cap Agreement or Class N Cap Agreement
      pursuant to this Section 4.7 shall be payable by or on behalf of the Issuer
      from
      any payment received by the Administrator in connection with any termination
      of
      the existing Swap Agreement, Cap Agreement or Class N Cap Agreement, as
      applicable; provided,
      however,
      if such
      amount received is not sufficient to pay such up-front fee, the difference
      shall
      be paid pursuant to Section 4.1(d)(x).

     

    (f) Any
      up-front premium payable to the Trust by a replacement Swap Counterparty, Cap
      Counterparty or Class N Cap Counterparty in connection with a replacement Swap
      Agreement, Cap Agreement or Class N Cap Agreement shall be applied as part
      of
      the Interest Remittance Amount for distribution pursuant to the priorities
      provided in Section 4.1.

     

    (g) Promptly
      upon receipt of written notice of termination of the Swap Agreement, the Cap
      Agreement or the Class N Cap Agreement, the Administrator shall cause notice
      thereof to be mailed by first-class mail, postage prepaid, to each Rating Agency
      and the Noteholders at their last addresses appearing upon the Note
      Register.]

     

    
      
        
        

      

      
        104

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              Section
                4.8

            	
              [Rights
                of Swap Counterparty. 

            

    

     

    The
      Swap
      Counterparty shall be deemed a third-party beneficiary of this Agreement to
      the
      same extent as if it were a party hereto and shall have the right, upon
      designation of an “Early Termination Date” (as defined in the Swap Agreement),
      to enforce its rights under this Agreement, which rights include but are not
      limited to the obligation of the Administrator (A) to pay any Net Swap Payment
      required pursuant to Section 4.1(b), (c) and (d) and any Swap Termination
      Payment required pursuant to Sections 4.1(b), (c) and (d) to the Swap
      Counterparty, (B) to establish and maintain the Note Payment Account, to make
      such deposits thereto, investments therein and payments therefrom as are
      required pursuant to Section 3.5. For the protection and enforcement of the
      provisions of this Section the Swap Counterparty shall be entitled to such
      relief as can be given either at law or in equity.]

     

    
      
        	 	
                Section
                  4.9 

              	
                 [The
                  Pre-Funding Account] [The Revolving
                  Account].

              

      

    

     

    (a) The
      Administrator shall establish and maintain in its name, as Administrator, a
      trust account entitled “[Pre-Funding Account] [Revolving Account], in trust for
      the benefit of the Holders of “Aegis Asset Backed Securities Trust
      [     ] Mortgage Backed Notes” and the funds therein
      shall be used solely for the purchase of [Subsequent Mortgage Loans] [Additional
      Mortgage Loans]. The [Pre-Funding Account] [Revolving Account] shall be an
      Eligible Account and if the account ceases to be an Eligible Account, the
      Administrator shall establish a new [Pre-Funding Account] [Revolving Account]
      that is also an Eligible Account within five Business Days and transfer all
      funds and investment property on deposit in the [Pre-Funding Account] [Revolving
      Account] into such new [Pre-Funding Account] [Revolving Account]. On the Closing
      Date, the Depositor shall cause to be deposited the [Pre-Funding Amount]
      [Revolving Amount], into the [Pre-Funding Account] [Revolving Account]. On
      any
      subsequent Transfer Date, provided the conditions set forth in Section 2.1(a)
      have been fully satisfied, the Administrator shall cause to be withdrawn from
      the [Pre-Funding Account ] [Revolving Account] an amount equal to the Transfer
      Price of any [Subsequent Mortgage Loans] [Additional Mortgage Loans] as of
      any
      applicable Transfer Date sold to the Issuer and to pay such Transfer Price
      to
      the Depositor. In no event shall the Administrator withdraw from the
      [Pre-Funding Account] [Revolving Account] an amount in excess of the
      [Pre-Funding Amount] [Revolving Amount] or withdraw funds from the [Pre-Funding
      Account] [Revolving Account] during the [Pre-Funding Period] [Revolving Period]
      for any other purpose.

     

    (b) Funds
      in
      the [Pre-Funding Account] [Revolving Account] may be invested by the
      Administrator in Eligible Investments at the written direction of the Depositor.
      All income and gain on such investments shall be for the benefit of the
      Depositor and shall be subject to withdrawal on order by the Depositor from
      time
      to time. The amount of any losses incurred in respect of any such investments
      shall be paid by the Depositor by a deposit in the [Pre-Funding Account]
      [Revolving Account] out of its own funds, without any right of reimbursement
      therefor, immediately as realized.

     

    On
      the
      Business Day immediately following the end of the [Pre-Funding Period]
      [Revolving Period], the Administrator shall transfer any amounts on deposit
      in
      the [Pre-Funding Account] [Revolving Account] to the Note Payment Account for
      distribution on the Payment Date occurring in
      [           ] as
      principal to the Holders of the Notes in accordance with Article
      IV.]

     

    
      
        
        

      

      
        105

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              Section
                4.10

            	
              [The
                Capitalized Interest Account.

            

    

     

    (a) The
      Administrator shall establish and maintain a trust account (the “Capitalized
      Interest Account”). The Capitalized Interest Account shall be entitled
“Capitalized Interest Account, in trust for the benefit of the Holders of Aegis
      Asset Backed Securities Trust Mortgage Pass-Through Certificates, Series
      [     ].” The Capitalized Interest Account shall be an
      Eligible Account. On the Closing Date, the Seller shall deposit in the
      Capitalized Interest Account the Original Capitalized Interest Amount. On the
      Business Day preceding any Distribution Date occurring during the Pre-Funding
      Period, the Administrator shall withdraw from the Capitalized Interest Account
      an amount equal to the Capitalized Interest Requirement for deposit into the
      Distribution Account for distribution to Certificateholders in accordance with
      Article IV on such Distribution Date. 

     

    (b) Amounts
      on deposit in the Capitalized Interest Account may be invested by the
      Administrator in Eligible Investments at the written direction of the Seller.
      All investment income and other gain on such investments shall be for the
      benefit of the Seller and shall be subject to withdrawal on order of the Seller
      from time to time. The amount of any losses incurred in respect of any such
      investments shall be paid by the Seller by a deposit into the Capitalized
      Interest Account of its own funds, immediately as realized. In the event the
      Seller does not provide written direction to the Administrator pursuant to
      this
      Section, all funds on deposit in the Capitalized Interest Account shall be
      invested in a money market or common trust fund as described in paragraph
      [(viii)] of the definition of “Eligible Investments” set forth in Article I.

     

    (c) On
      the
      Distribution Date in [     ], all amounts, if any, on
      deposit in the Capitalized Interest Account shall be withdrawn by the
      Administrator and distributed to the Seller and the Capitalized Interest Account
      shall be terminated.]

     

    ARTICLE
      V

     

    [Reserved]

     

    ARTICLE
      VI

     

    THE
      DEPOSITOR, THE SERVICER, THE
      MASTER SERVICER, THE SELLER AND [THE CREDIT RISK MANAGER]

     

    Section
      6.1     Respective
      Liabilities of the Depositor, the Servicer, the
      Master Servicer, the Seller and [the Credit Risk Manager].

     

    The
      Depositor, the Servicer, the Master Servicer, the Seller and [the Credit Risk
      Manager] shall each be liable in accordance herewith only to the extent of
      the
      obligations specifically and respectively imposed upon and undertaken by them
      herein.

     

    
      
        
        

      

      
        106

        
          

        

      

      
        
        

      

    

    

     

    Section
      6.2     Merger
      or
      Consolidation of the Depositor, Servicer, the
      Master Servicer, the Seller and [the Credit Risk Manager].

     

    (a) Other
      than as provided in the following paragraph, the Depositor, the Servicer, the
      Master Servicer, the Seller and [the Credit Risk Manager] will each keep in
      full
      effect its existence, rights and franchises 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 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 Servicer, the Master Servicer, the Seller
      or [the Credit Risk Manager] may be merged or consolidated, or any Person
      resulting from any merger or consolidation to which the Depositor, the Servicer,
      the Master Servicer, the Seller or [the Credit Risk Manager] shall be a party,
      or any person succeeding to the business of the Depositor, the Servicer, the
      Master Servicer, the Seller or [the Credit Risk Manager] shall be the successor
      of the Depositor, the Master Servicer, the Servicer, the Seller or [the Credit
      Risk Manager], 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 Servicer shall be qualified to sell
      mortgage loans to, and to service mortgage loans on behalf of, FNMA or
      FHLMC.

     

    (b) 
      Other
      than as provided in subsection (a) of this Section 6.2, in the event that the
      Servicer determines that it will no longer engage in the business of servicing
      residential mortgage loans, the Servicer shall so notify the Seller and the
      Depositor in writing. Upon receipt of such notice, the Seller may transfer
      the
      servicing of the Mortgage Loans from the Servicer to a successor mortgage loan
      servicing company acceptable to the Master Servicer, each Rating Agency, and
      the
      Residual Holder, and such mortgage loan servicing company shall assume, satisfy,
      perform and carry out all liabilities, duties, responsibilities and obligations
      that are to be, or otherwise were to have been, satisfied, performed and carried
      out by the resigning Servicer hereunder. If the Seller either (x) does not
      respond within thirty (30) calendar days to the notice delivered to it pursuant
      to the first sentence of this paragraph or (y) advises the Servicer in writing
      that the Seller does not intend to exercise its right to transfer the servicing,
      then the Servicer may assign its rights under this Agreement to a successor
      mortgage loan servicing company acceptable to the Seller, the Depositor, the
      Master Servicer, the Indenture Trustee, each Rating Agency, and the Residual
      Holder, provided
      that (i)
      each of the Seller, the Depositor, the Master Servicer, the Indenture Trustee,
      each Rating Agency, and the Residual Holder shall have delivered their consent
      to such assignment in writing to the Servicer and to each other such party,
      (ii)
      the consent of each Rating Agency shall be evidenced by a letter to the effect
      that the ratings assigned to any Class of Notes will not be qualified, reduced
      or withdrawn as a result of such transfer and (iii) the Servicer shall be liable
      for all costs associated with the transfer of servicing from the resigning
      Servicer to a successor Servicer; and provided,
      further,
      that the
      resigning Servicer shall indemnify the Trust, the Indenture Trustee, the Seller,
      the Master Servicer, the Depositor, the Administrator, each Noteholder, the
      successor Servicer and any subservicer for, and hold each such party harmless
      against, any and all claims, losses, penalties, fines, forfeitures, legal fees
      and related costs, and judgments, and any and all other costs, fees and
      expenses, that any such party may sustain in any related to such assignment.
      No
      assignment by the Servicer shall become effective until the requirements of
      this
      paragraph have been satisfied and a successor Servicer shall have entered into
      an agreement pursuant to which such successor shall assume, satisfy, perform
      and
      carry out all liabilities, duties, responsibilities and obligations that are
      to
      be, or otherwise were to have been, satisfied, performed and carried out by
      the
      resigning Servicer hereunder (other than those liabilities arising prior to
      the
      appointment of such successor, which shall continue to be the responsibility
      of
      the resigning Servicer). Any such assignment shall not relieve the resigning
      Servicer of responsibility for any of its liabilities, duties, responsibilities
      and obligations under this Agreement except to the extent that such liabilities,
      duties, responsibilities and obligations have been expressly assumed by the
      successor Servicer.

     

    
      
        
        

      

      
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    Section
      6.3     Limitation
      on Liability of the Depositor, the Master Servicer, the Servicer, the Seller
      and
      Others.

     

    None
      of
      the Depositor, the Master Servicer, the Servicer, the Seller, [the Credit Risk
      Manager] or any of the directors, officers, employees or agents of the
      Depositor, the Master Servicer, the Servicer, the Seller or [the Credit Risk
      Manager] shall be under any liability to the Noteholders for any action taken
      or
      for refraining from the taking of any action in good faith pursuant to this
      Agreement, or for errors in judgment; provided,
      however,
      that
      this provision shall not protect the Depositor, the Master Servicer, the
      Servicer, the Seller, [the Credit Risk Manager] or any such Person against
      any
      breach of representations or warranties made by it herein or protect the
      Depositor, the Master Servicer, the Servicer, the Seller, or [the Credit Risk
      Manager] or any such Person from any liability which would otherwise be imposed
      by reasons of willful misfeasance, bad faith or negligence in the performance
      of
      duties or by reason of reckless disregard of obligations and duties hereunder.
      The Depositor, the Master Servicer, the Servicer, the Seller, [the Credit Risk
      Manager], the Custodian and any director, officer, employee or agent of the
      Depositor, the Master Servicer, the Servicer, the Seller, [the Credit Risk
      Manager] 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 Master Servicer, the Servicer, the Seller,
      [the Credit Risk Manager] and any director, officer, employee or agent of the
      Depositor, the Master Servicer, the Servicer, the Seller, or [the Credit Risk
      Manager] shall be indemnified by the Trust and held harmless against any loss,
      liability or expense incurred in connection with any audit, controversy or
      judicial proceeding relating to a governmental taxing authority or any legal
      action relating to this Agreement or the performance of their respective
      obligations hereunder or under the Notes, other than 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 Master Servicer,
      the Servicer, the Seller or [the Credit Risk Manager] 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 Master Servicer, the Servicer, the Seller or [the
      Credit Risk Manager] 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 Indenture Trustee and the
      Noteholders hereunder. In such event, the legal expenses and costs of such
      action and any liability resulting therefrom shall be expenses, costs and
      liabilities of the Trust, and the Depositor, the Master Servicer, the Servicer,
      the Seller and [the Credit Risk Manager] shall be entitled to be reimbursed
      therefor out of the Collection Account.

     

    
      
        
        

      

      
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              Section
                6.4

            	
              Limitation
                on Resignation of Servicer.

            

    

     

    The
      Servicer shall not resign from the obligations and duties hereby imposed on
      it
      except (a) upon appointment of a successor Servicer and receipt by the Master
      Servicer 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 Notes,
      or (b) upon determination that its duties hereunder are no longer permissible
      under applicable law. Any such determination under clause (b) permitting the
      resignation of the Servicer shall be evidenced by an Opinion of Counsel to
      such
      effect delivered to the Master Servicer. No such resignation shall become
      effective until the Master Servicer or a successor Servicer shall have assumed
      the Servicer’s responsibilities, duties, liabilities and obligations
      hereunder.

     

    
      	 	
              Section
                6.5

            	
              Reporting
                Requirements of the Commission and
                Indemnification.

            

    

     

    Notwithstanding
      any other provision of this Agreement, each of the Servicer and the Master
      Servicer (i) agrees to negotiate in good faith any amendment or modification
      (including an indemnification agreed to in connection therewith) to this
      Agreement as may be necessary, in the judgment of the Depositor and its counsel
      (as evidenced by an opinion of such counsel addressed to the Servicer and the
      Master Servicer), to comply with any rules promulgated by the Commission and
      any
      interpretations thereof by the staff of the Commission (collectively, “SEC
      Rules”) and (ii) shall with reasonable notice and upon written request within
      reasonable timeframes intended to comply with the SEC Rules provide to the
      Depositor for inclusion in any periodic report required to be filed under the
      Exchange Act such items of information regarding this Agreement and matters
      related to the Servicer or the Master Servicer, including as applicable (by
      way
      of example and not limitation), a description of any material litigation or
      governmental action or proceeding involving the Servicer, the Master Servicer
      or
      their respective affiliates (collectively, the “Servicer Information”),
      provided, that such information shall be required to be provided by the Servicer
      or the Master Servicer only to the extent that it shall be determined by the
      Depositor and its counsel (as evidenced by an opinion of such counsel addressed
      to the Servicer and the Master Servicer) to be necessary to comply with any
      SEC
      Rules.

     

    ARTICLE
      VII

     

    DEFAULT;
      REPORTS

     

    
      	 	
              Section
                7.1

            	
              Events
                of Default.

            

    

     

    (a) “Servicer
      Event of Default,” wherever used herein, means any one of the following
      events:

     

    (i) any
      failure by the Servicer to (a) deposit in the Custodial Account or (b) remit
      to
      the Master Servicer any payment required to be made under the terms of this
      Agreement, which failure (x) in the case of clause (a) above, shall continue
      unremedied for five days, or (y) in the case of clause (b) above, shall continue
      unremedied for one Business Day, after (in each case) the date upon which
      written notice of such failure shall have been given to the Servicer by the
      Master Servicer or the Depositor or to the Master Servicer by the Holders of
      Notes having not less than 50% of the Voting Interests evidenced by the Notes;
      or

     

    
      
        
        

      

      
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    (ii) any
      failure by the Servicer to observe or perform in any material respect any other
      of the covenants or agreements on the part of the Servicer contained in this
      Agreement, which failure materially affects the rights of Noteholders, which
      failure continues unremedied for a period of 60 days after the date on which
      written notice of such failure shall have been given to the Servicer by the
      Master Servicer, the Seller, or the Depositor, or to the Servicer and the Master
      Servicer by the Holders of Notes evidencing not less than 25% of the Voting
      Interests evidenced by the Notes; provided,
      however,
      that
      the 60-day cure period shall not apply to the initial delivery of the Mortgage
      File for Delay Delivery Mortgage Loans nor the failure to substitute or
      repurchase in lieu thereof; or

     

    (iii) a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises for the appointment of a receiver or liquidator in any insolvency,
      readjustment of debt, marshalling of assets and liabilities or similar
      proceedings, or for the winding-up or liquidation of its affairs, shall have
      been entered against the Servicer and such decree or order shall have remained
      in force undischarged or unstayed for a period of 60 consecutive days;
      or

     

    (iv) the
      Servicer shall consent to the appointment of a receiver or liquidator in any
      insolvency, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings of or relating to the Servicer or all or substantially
      all
      of the property of the Servicer; or

     

    (v) the
      Servicer shall admit in writing its inability to pay its debts generally as
      they
      become due, file a petition to take advantage of, or commence a voluntary case
      under, any applicable insolvency or reorganization statute, make an assignment
      for the benefit of its creditors, or voluntarily suspend payment of its
      obligations; or

     

    (vi) failure
      by the Servicer to maintain its license to do business or service residential
      mortgage loans in any jurisdiction, if required by such jurisdiction, where
      the
      Mortgaged Properties are located, which failure continues unremedied for a
      period of 30 days after the date on which written notice of such failure shall
      have been given to the Servicer, except to the extent that such failure does
      not, as evidenced by an Opinion of Counsel provided by the Servicer to the
      Seller, the Depositor, the Master Servicer and the Indenture Trustee to the
      effect that such failure does not have a materially adverse effect on the
      Servicer’s ability to service the related Mortgage Loans, or on the Trust;
      or

     

    (vii) the
      Servicer ceases to meet the qualifications of a Fannie Mae or Freddie Mac
      seller/servicer. 

     

    Upon
      determination by the Master Servicer that a Servicer Event of Default has
      occurred, the Master Servicer (a) may terminate the Servicer hereunder, if
      in
      its judgment such termination is in the best interests of the Trust; or (b)
      shall terminate the Servicer hereunder, if instructed to do so by the Residual
      Holder or Noteholders evidencing not less than 50% of the Voting Interests
      evidenced by the Notes exercised in writing following delivery to such Holders
      by the Master Servicer of notice of the occurrence of such Servicer Event of
      Default pursuant to Section 7.2(b).

     

    
      
        
        

      

      
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    Upon
      any
      such termination, the Seller shall enter into a substitute servicing arrangement
      with another mortgage loan servicing company acceptable to the Master Servicer,
      each Rating Agency and the Residual Holder, under which such mortgage loan
      servicing company shall assume, satisfy, perform and carry out all liabilities,
      duties, responsibilities and obligations that are to be, or otherwise were
      to
      have been, satisfied, performed and carried out by the terminated Servicer
      hereunder. In no case shall the termination of the Servicer due to a Servicer
      Event of Default become effective until the successor Servicer (which may
      include the Master Servicer) has succeeded to the obligations of Servicer under
      this Agreement, and the terminated Servicer shall be obligated to continue
      servicing the Mortgage Loans pursuant to this Agreement and shall be entitled
      to
      all rights and protections provided to the Servicer under this Agreement until
      such time as the successor Servicer shall have assumed in writing all of the
      obligations of the Servicer under this Agreement (the “Termination Period”), as
      provided in Section 3.4(e) of this Agreement. During the Termination Period,
      neither the successor Servicer nor the Master Servicer shall be responsible
      for
      the lack of information and documents that it cannot reasonably obtain on a
      practicable basis under the circumstances. As compensation to the Master
      Servicer or the successor Servicer for any servicing obligations fulfilled
      or
      assumed by such party, such party shall be entitled, following the Termination
      Period, to any servicing compensation to which the terminated Servicer would
      have been entitled if such Servicer had not been terminated. Additionally,
      the
      successor Servicer (whether the Master Servicer or an entity appointed by the
      Seller) shall be entitled to be reimbursed by the Servicer (or from the Trust
      if
      the Servicer is unable to fulfill its obligations hereunder) for all reasonable
      “out-of-pocket” costs associated with the transfer of servicing from the
      predecessor Servicer, including, without limitation, any reasonable
“out-of-pocket” costs or expenses associated with the complete transfer of all
      servicing data and the completion, correction or manipulation of such servicing
      data as may be required by the successor Servicer to correct any errors or
      insufficiencies in the servicing data or otherwise to enable the successor
      Servicer to service the Mortgage Loans properly and effectively.

     

    (b) Without
      regard to whether a Servicer Event of Default has occurred, upon the occurrence
      of
      a
      Servicer Termination Event, the Seller shall terminate the Servicer hereunder
      and appoint a successor mortgage loan servicing company acceptable to the Master
      Servicer, each Rating Agency and the Residual Holder, under which such mortgage
      loan servicing company shall assume, satisfy, perform and carry out all
      liabilities, duties, responsibilities and obligations that are to be, or
      otherwise were to have been, satisfied, performed and carried out by the
      terminated Servicer hereunder.

     

    (c) Without
      regard to whether a Servicer Event of Default or a Servicer Termination Event
      has occurred, the Seller, as owner of the servicing rights with respect to
      the
      Mortgage Loans, shall retain the right, in its sole discretion and at any time
      with 30 days’ advance notice, without cause, to terminate the
      Servicer
      (including any successor thereto) hereunder and appoint a successor mortgage
      loan servicing company acceptable to the Master Servicer, each Rating Agency
      and
      the Residual Holder, which mortgage loan servicing company shall assume,
      satisfy, perform and carry out all liabilities, duties, responsibilities and
      obligations that are to be, or otherwise were to have been, satisfied, performed
      and carried out by the terminated Servicer hereunder. Notwithstanding any
      provision in this Agreement to the contrary, in the event the Servicer is
      terminated pursuant to this Section 7.1(c), as a condition to such termination,
      the Servicer shall be fully reimbursed (i) by the successor Servicer or by
      the
      Seller (but not by the Master Servicer as successor Servicer) for all
      unreimbursed Advances, if any, made by it, and accrued and unpaid Servicing
      Fees, in each case on or prior to the date on which the servicing is transferred
      to a successor Servicer and (ii) by the Seller for any “out-of-pocket” costs
      incurred by the Servicer associated with the transfer of servicing by the
      Servicer.

     

    
      
        
        

      

      
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    (d) Upon
      notice
      of termination of the Servicer pursuant to paragraph (a), (b) or (c) of this
      Section 7.1, the Seller shall appoint a successor Servicer pursuant to Section
      3.4.

     

    (e) Notwithstanding
      any termination of the activities of the Servicer hereunder and except as
      otherwise provided under Section 7.1(c), the Servicer shall be entitled to
      receive, out of any late collection of any payment
      on a
      Mortgage Loan which was due prior to the notice terminating such Servicer’s
      rights and obligations as Servicer hereunder and received after such notice,
      that portion thereof to which such Servicer would have been entitled pursuant
      to
      Sections 3.8(a)(i) through (viii), and any other amounts payable to the Servicer
      hereunder the entitlement to which arose prior to the termination of its
      activities hereunder.

     

    In
      no
      event shall the termination of the Servicer under this Agreement result in
      any
      diminution of the Servicer’s right to reimbursement for any outstanding Advances
      or accrued and unpaid Servicing Fees due such Servicer at the time of
      termination. Except as otherwise provided under Section 7.1(c), the successor
      Servicer shall be obligated to promptly reimburse the terminated Servicer for
      outstanding Advances, if any, made by it, and accrued and unpaid Servicing
      Fees;
provided,
      however,
      that
      such reimbursement obligation shall be limited to the funds available in the
      Custodial Account for such purposes pursuant to Sections 3.8(a)(ii), (iii)
      and
      (v) of this Agreement. In addition, any such reimbursement for outstanding
      Advances and accrued and unpaid Servicing Fees shall be made on a first in,
      first out (“FIFO”) basis no later than the 18th
      day of
      each month, provided
      that the
      successor Servicer has received prior written notice from the appropriate party,
      pursuant to this Agreement, of such reimbursement amount, and provided,
      further, that
      the
      successor Servicer may in its discretion, but shall not be obligated to, fully
      reimburse the predecessor Servicer for any such outstanding Advances and accrued
      and unpaid Servicing Fees from its own funds. The Servicer shall continue to
      be
      entitled to the benefits of Section 6.3, notwithstanding any termination
      hereunder, with respect to events occurring prior to such
      termination.

     

    (f) “Master
      Servicer
      Event of Default,” wherever used herein, means any one of the following
      events:

     

    (i) any
      failure by the Master Servicer to remit to the Note Payment Account or the
      Certificate Distribution Account any amounts required to be remitted by it
      pursuant to this Agreement, which failure shall continue unremedied for one
      Business Day, after the date upon which written notice of such failure shall
      have been given to the Master Servicer by the Administrator, the Indenture
      Trustee, the Depositor or by the Holders of Notes having not less than 50%
      of
      the Voting Interests evidenced by the Notes provided,
      however,
      that
      such failure to timely deposit or remit shall not be considered a Master
      Servicer Event of Default if the Master Servicer and the Administrator are
      the
      same Person and such failure to timely deposit or remit does not delay payments
      to Noteholders; or

     

    
      
        
        

      

      
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    (ii) any
      failure on the part of the Master Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of the
      Master Servicer contained in this Agreement, or the breach by the Master
      Servicer of any representation and warranty contained in Section 2.3, which
      continues unremedied for a period of 30 days after the date on which written
      notice of such failure, requiring the same to be remedied, shall have been
      given
      to the Master Servicer by the Depositor or the Indenture Trustee or to the
      Master Servicer, the Depositor and the Indenture Trustee by the Holders of
      Notes
      entitled to at least 25% of the Voting Interests; or

     

    (iii) a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises in an involuntary case under any present or future federal or
      state
      bankruptcy, insolvency or similar law or the appointment of a conservator or
      receiver or liquidator in any insolvency, readjustment of debt, marshalling
      of
      assets and liabilities or similar proceeding, or for the winding-up or
      liquidation of its affairs, shall have been entered against the Master Servicer
      and such decree or order shall have remained in force undischarged or unstayed
      for a period of 90 days; or

     

    (iv) the
      Master Servicer shall consent to the appointment of a conservator or receiver
      or
      liquidator in any insolvency, readjustment of debt, marshalling of assets and
      liabilities or similar proceedings of or relating to it or of or relating to
      all
      or substantially all of its property; or

     

    (v) the
      Master Servicer shall admit in writing its inability to pay its debts generally
      as they become due, file a petition to take advantage of any applicable
      insolvency or reorganization statute, make an assignment for the benefit of
      its
      creditors, or voluntarily suspend payment of its obligations.

     

    
      
        
        

      

      
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    If
      a
      Master Servicer Event of Default shall occur, then, and in each and every such
      case, so long as such Master Servicer Event of Default shall not have been
      remedied, the Depositor or the Indenture Trustee may, and at the written
      direction of the Holders of Notes evidencing not less than 50% of Voting
      Interests evidenced by the Notes, the Indenture Trustee shall, by notice in
      writing to the Master Servicer (and to the Depositor if given by the Indenture
      Trustee or to the Indenture Trustee if given by the Depositor) with a copy
      to
      each Rating Agency, terminate all of the rights and obligations of the Master
      Servicer in its capacity as Master Servicer under this Agreement, to the extent
      permitted by law, and in and to the Mortgage Loans and the proceeds thereof.
      On
      or after the receipt by the Master Servicer of such written notice, all
      authority and power of the Master Servicer under this Agreement, whether with
      respect to the Notes (other than as a Holder of any Note) or the Mortgage Loans
      or otherwise including, without limitation, the compensation payable to the
      Master Servicer under this Agreement, shall pass to and be vested in the
      Indenture Trustee pursuant to and under this Section, and, without limitation,
      the Indenture Trustee is hereby authorized and empowered, as attorney-in-fact
      or
      otherwise, to execute and deliver, on behalf of and at the expense of the Master
      Servicer, 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 promptly (and in any event no later than ten Business Days
      subsequent to such notice) to provide the Indenture Trustee with all documents
      and records requested by it to enable it to assume the Master Servicer’s
      functions under this Agreement, and to cooperate with the Indenture Trustee
      in
      effecting the termination of the Master Servicer’s responsibilities and rights
      under this Agreement (provided,
      however,
      that
      the Master Servicer shall continue to be entitled to receive all amounts accrued
      or owing to it under this Agreement on or prior to the date of such termination
      and shall continue to be entitled to the benefits of Section 6.3,
      notwithstanding any such termination, with respect to events occurring prior
      to
      such termination). For purposes of this Section 7.1(f), the Indenture Trustee
      shall not be deemed to have knowledge of a Master Servicer Event of Default
      unless a Responsible Officer of the Indenture Trustee assigned to and working
      in
      the Indenture Trustee’s Corporate Trust Office has actual knowledge thereof or
      unless written notice of any event which is in fact such a Master Servicer
      Event
      of Default is received by the Indenture Trustee and such notice references
      the
      Notes, the Trust or this Agreement. The Indenture Trustee shall promptly notify
      the Rating Agencies of the occurrence of a Master Servicer Event of Default
      of
      which it has knowledge as provided above.

     

    To
      the
      extent that the costs and expenses of the Indenture Trustee related to the
      termination of the Master Servicer, appointment of a successor Master Servicer
      or the transfer and assumption of the master servicing by the Indenture Trustee
      (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 Master Servicer as a result of a Master Servicer Event of
      Default and (ii) all costs and expenses associated with the complete transfer
      of
      the master servicing, including all master servicing files and all master
      servicing data and the completion, correction or manipulation of such master
      servicing data as may be required by the successor Master Servicer to correct
      any errors or insufficiencies in the master servicing data or otherwise to
      enable the successor Master Servicer to master service the Mortgage Loans in
      accordance with this Agreement) are not fully and timely reimbursed by the
      terminated Master Servicer, the Indenture Trustee shall be entitled to
      reimbursement of such costs and expenses from the Note Payment
      Account.

     

    
      	 	
              Section
                7.2

            	
              Notification
                to Noteholders.

            

    

     

    (a) Upon
      any
      termination of or appointment of a successor to the Servicer, the Master
      Servicer shall give prompt written notice thereof to Noteholders and each Rating
      Agency.

     

    (b) Within
      60
      days after the occurrence of any Event of Default, the Indenture Trustee, in
      the
      case of a Master Servicer Event of Default, or the Master Servicer, in the
      case
      of a Servicer Event of Default, shall transmit by mail to all Noteholders notice
      of each such Event of Default hereunder known to the Indenture Trustee
      or the
      Master Servicer, as applicable, unless such Event of Default shall have been
      cured or waived.

     

    
      
        
        

      

      
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              Section
                7.3

            	
              Filings.

            

    

     

    (a) [The
      Depositor shall prepare or cause to be prepared the initial current report
      on
      Form 8-K. Thereafter, within 15 days (or, if applicable, within such shorter
      period of time as is required under the SEC Rules) after each Payment Date,
      the
      Administrator shall, in accordance with industry standards, file with the
Commission
      via the
      Electronic Data Gathering and Retrieval System (EDGAR), a Form 10-D with (i)
      a
      copy of the statement to the Securityholders for such Payment Date as an exhibit
      thereto, [(ii)
      a
      copy of each report made available by the Credit Risk Manager (provided each
      such report is made available to the Administrator
      in a
      format compatible with EDGAR filing requirements)] and (iii) such other
      information as is required by Form 10-D, including, but not limited to, the
      information required by Item 1121 (§ 229.1121) of Regulation AB, so long as such
      information is made available to the Administrator
      in a
      format compatible with EDGAR filing requirements.
      Prior
      to January 30, 20[  ], the Administrator shall, in accordance with
      industry standards, file a Form 15 Suspension Notification with respect to
      the
      Trust, if applicable. On or prior to March 20, 20[  ] (or if such day
      is not a Business Day, the preceding Business Day), the Administrator shall
      prepare a Form 10-K, and submit it to the Depositor. The Depositor shall execute
      the Form 10-K and return it to the Administrator no later than March 25,
      20[  ] (or if such day is not a Business Day, the preceding Business
      Day). Prior to March 30, 20[  ], the Administrator shall file the Form
      10-K, in substance conforming to industry standards, with respect to the Trust.
      The Form 10-K shall include (w) the certification required pursuant to Rule
      13a-14 under the Exchange Act and any future guidance from the Commission (the
      “Form 10-K Certification”) signed by or on behalf of the Depositor, (x)
      the
      annual certifications delivered by the Indenture Trustee, the Administrator,
      the
      Master Servicer, the Owner Trustee, [the Credit Risk Manager], the Servicer
      (or
      the Subservicer on its behalf) and the Custodian pursuant to this Agreement,
      the
      Subservicing Agreement and the Trust Agreement, (y) the related public
      accounting firm attestation reports and (z) such other information as is
      required by the SEC Rules and Regulation AB.
      If
      any
      party’s report on assessment of compliance with servicing criteria required by
      clause (x) in the immediately preceding sentence, or the related public
      accounting firm attestation report required by clause (y) in the immediately
      preceding sentence, identifies any material instance of noncompliance with
      the
      servicing criteria specified in paragraph (d) of Item 1122 of Regulation AB
      (§
229.1122(d)), the Administrator shall identify the material instance of
      noncompliance in such report in the Form 10-K; and in the event that the
      Administrator is unable to include any report required by either clause (x)
      or
      (y) in the immediately preceding sentence in the Form 10-K, the Administrator
      shall disclose such fact in the Form 10-K together with an explanation as to
      why
      such report is not included as an exhibit to the Form 10-K. The Administrator
      shall have no liability for any delay in filing the Form 10-D, Form 10-K or
      Form
      10-K Certification due to the failure of any party to sign such Form 10-D,
      Form
      10-K or Form 10-K Certification. The
      Depositor hereby grants to the Administrator a limited power of attorney to
      execute and file each Form 10-D on behalf of the Depositor. Such power of
      attorney shall continue until either the earlier of (i) receipt by the
      Administrator from the Depositor of written termination of such power of
      attorney and (ii) the termination of the Trust. The Depositor agrees to promptly
      furnish to the Administrator, from time to time upon request, such further
      information, reports, and financial statements within its control related to
      this Agreement and the Mortgage Loans as the Administrator reasonably deems
      appropriate to prepare and file all necessary reports with the Commission.
      The
      Administrator shall have no responsibility to file any items other than those
      specified in this section.]

     

    
      
        
        

      

      
        115

        
          

        

      

      
        
        

      

    

    

     

    (b) If
      so
      requested, the Administrator shall sign a certification (in the form attached
      hereto as Exhibit E) for the benefit of the Person(s) signing the Form 10-K
      Certification regarding certain aspects of such Form 10-K Certification
      (provided, however, that the Administrator shall not be required to undertake
      an
      analysis of the accountant’s report attached as an exhibit to the Form
      10-K).

     

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

     

    (d) Upon
      any
      filing with the Commission, the Administrator shall promptly deliver to the
      Depositor a copy of any executed report, statement or information.

     

    (e) The
      fiscal
      year of the Trust for all filing purposes shall be the calendar
      year.

     

    (f) For
      so
      long as a certificate under the Sarbanes-Oxley Act of 2002, as amended
      (“Sarbanes-Oxley”) is required to be delivered on behalf of the Trust, a
      Servicing Officer shall execute and deliver on March 15
      of each
      applicable year, commencing in 20[  ], an Officer’s Certificate to the
      Depositor for the benefit of the Depositor and its officers, directors and
      affiliates, in the form of Exhibit D hereto (or such other form as may be
      prescribed by the Commission).

     

    
      	 	
              Section
                7.4

            	
              Reporting
                Requirements of the Commission and
                Indemnification

            

    

     

    (a) 
      [On or
      before March 1 of each calendar year, the Administrator shall deliver to the
      Master Servicer, the Servicer, the Subservicer and the Depositor a report
      regarding its assessment of compliance with the servicing criteria specified
      in
      paragraph (d) of Item 1122 of Regulation AB (§ 229.1122(d)), as of and for the
      period ending the end of each fiscal year, with respect to asset-backed security
      transactions taken as a whole involving the Administrator, and that are backed
      by the same asset type as the Mortgage Loans. Each such report shall include
      all
      of the statements required under paragraph (a) of Item 1122 of Regulation AB
      (§
229.1122(a)).]

     

    (b) 
      [On or
      before March 1 of each calendar year, the Administrator shall deliver to the
      Master Servicer, the Servicer, the Subservicer and the Depositor a report by
      a
      registered public accounting firm that attests to, and reports on, the
      assessment made by the Administrator pursuant to subsection (a) above. Each
      such
      report shall be made in accordance with standards for attestation engagements
      issued or adopted by the Public Company Accounting Oversight
      Board.]

     

    (c) (c)
      [The
Administrator
      shall notify the Master Servicer, the Servicer, the Subservicer and the
      Depositor
      (i) of
      any legal proceedings pending against the Administrator
      of the
      type described in Item 1117 (§
      229.1117) of
      Regulation AB and (ii) if the Administrator
      shall
      become (but only to the extent not previously disclosed) at any time an
      affiliate of any of the Sponsor, the Issuer, the Owner Trustee, the Indenture
      Trustee,
      the Master Servicer, the Servicer, any Originator contemplated by Item 1110
      (§
      229.1110) of
      Regulation AB, any significant obligor contemplated by Item 1112 (§
      229.1112) of
      Regulation AB, any enhancement or support provider contemplated by Items 1114
      or
      1115 (§§
      229.1114-1115) of
      Regulation AB or any other material party to the Trust contemplated by Item
      1100(d)(1) (§
      229.1100(d)(1)) of
      Regulation AB, as applicable.]

     

    
      
        
        

      

      
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              Section
                7.5

            	
              The
                Custodian and the
                Administrator.

            

    

     

    The
      Custodian shall be entitled to all of the benefits, rights (including any rights
      of indemnification and any rights of resignation) and immunities set forth
      in
      the Indenture with respect to the Indenture Trustee to the same extent as though
      each reference to the Indenture Trustee referred to the Custodian.
      Notwithstanding the foregoing, (i) the Custodian shall not be entitled to
      receive any additional compensation for serving as custodian hereunder and
      (ii)
      so long as [          ] is the
      Master Servicer, the Custodian and the Administrator shall be entitled to resign
      upon the resignation or removal of the Master Servicer.

     

    ARTICLE
      VIII

     

    [Reserved]

     

    ARTICLE
      IX

     

    TERMINATION

     

    
      	 	
              Section
                9.1

            	
              Termination
                upon Liquidation or Purchase of all Mortgage Loans.

            

    

     

    (a) The
      obligations and responsibilities of the Depositor, the Master Servicer, the
      Servicer, the Seller, the Administrator and the Indenture Trustee created hereby
      with respect to the Trust shall terminate upon the earlier of:

     

    (i) the
      purchase by the Residual Holder or its designee (or the Servicer, to the extent
      provided herein) of all Mortgage Loans (including REO Properties not otherwise
      disposed of pursuant to Section 3.11(i)) remaining in the Trust at a price
      equal
      to the sum of (A) 100% of the unpaid principal balance of each Mortgage Loan,
      (B) the lesser of (x) the appraised value of any REO Property as determined
      by a
      real estate broker meeting the qualifications, and applying broker’s price
      opinion methodology, generally acceptable to residential mortgage servicers,
      or
      other property valuation opinion methodology customarily used by residential
      mortgage servicers with respect to defaulted loans and (y) the unpaid principal
      balance of each Mortgage Loan related to any REO Property, (C) any costs and
      damages incurred by the Trust as a result of violation of any applicable
      federal, state or local predatory or abusive lending law in connection with
      the
      origination of any Mortgage Loan and (D) any Swap Termination Payment payable
      to
      the Swap Counterparty as a result of a termination pursuant to this Section
      9.1.
      In addition, such purchase price shall include with respect to the Mortgage
      Loans (including REO Properties) accrued and unpaid interest thereon, as
      determined by the Servicer, at the applicable Mortgage Rate, except to the
      extent the Servicer was not or would not be required to make a Delinquency
      Advance hereunder, and any and all amounts payable or reimbursable to the
      Servicer, the Master Servicer, the Custodian, the Administrator and/or the
      Indenture Trustee pursuant to the provisions of this Agreement; and

     

    
      
        
        

      

      
        117

        
          

        

      

      
        
        

      

    

    

     

    (ii) the
      later
      of (A) the maturity or other liquidation (or any Delinquency Advance with
      respect thereto) of the last Mortgage Loan remaining in the Trust and the
      disposition of all REO Property and (B) the payment to Noteholders and the
      Swap
      Counterparty 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
      to purchase all Mortgage Loans and REO Properties pursuant to clause (i) above
      shall be conditioned upon the Pool Balance, at the time of any such repurchase,
      aggregating less than ten percent of the Cut-off Date Balance.

     

    At
      any
      time after the Initial Optional Purchase Date, the Servicer may notify the
      Residual Holder in writing that the Servicer intends to purchase all of the
      Mortgage Loans and REO Properties for the purchase price specified in clause
      (i)
      above. If the Residual Holder does not exercise its option to purchase the
      Mortgage Loans and REO Properties as provided in this Section within 30 days
      following receipt of such notice, the Servicer may effect such
      purchase.

     

    (b) With
      respect
      to any purchase pursuant to subsection (a), upon deposit of the price determined
      pursuant to subsection (a)(i) in the Note Payment Account, the Issuer and the
      Custodian on behalf of the Indenture Trustee shall release or cause to be
      released to the purchaser of each such Mortgage Loan the related Mortgage File
      and shall execute and deliver such instruments of transfer or assignment
      prepared by the purchaser of such Mortgage Loan (including appropriate
      instruments with respect to any REO Property), in each case without recourse,
      as
      shall be necessary to vest in the purchaser of such Mortgage Loan any Mortgage
      Loan sold pursuant hereto, and the purchaser of such Mortgage Loan shall succeed
      to all the Indenture Trustee’s right, title and interest in and to such Mortgage
      Loan and all security and documents related thereto. Such assignment shall
      be an
      assignment outright and not for security. The purchaser of such Mortgage Loan
      shall thereupon own such Mortgage Loan, and all security and documents, free
      of
      any further obligation to the Indenture Trustee or the Noteholders with respect
      thereto.

     

    
      	 	
              Section
                9.2

            	
              Final
                Payment on the Notes.

            

    

     

    If
      on any
      Determination Date the Administrator determines that there are no outstanding
      Mortgage Loans and no other funds or assets in the Trust other than the funds
      in
      the Collection Account, the Administrator shall promptly send a final payment
      notice to each Securityholder. If the Residual Holder elects to terminate the
      Trust pursuant to clause (a)(i) of Section 9.1, at least 20 days prior to the
      date notice is to be mailed to the affected Securityholders, the Residual Holder
      shall notify the Depositor, the Indenture Trustee and the Administrator of
      the
      date the Residual Holder intends to terminate the Trust and of the applicable
      repurchase price of the Mortgage Loans and REO Properties.

     

    
      
        
        

      

      
        118

        
          

        

      

      
        
        

      

    

    

     

    Notice
      of
      any termination of the Trust, specifying the Payment Date on which
      Securityholders may surrender their Securities for payment of the final payment
      and cancellation, shall be given promptly by the Administrator by letter to
      Securityholders and the Swap Counterparty, mailed not earlier than the
      10th
      day and
      no later than the 15th
      day of
      the month next preceding the month of such final payment. Any such notice shall
      specify (a) the Payment Date upon which final payment on the Securities will
      be
      made upon presentation and surrender of Securities at the office therein
      designated, (b) the amount of such final payment, (c) the location of the office
      or agency at which such presentation and surrender must be made, and (d) that
      the Record Date otherwise applicable to such Payment Date is not applicable,
      payments being made only upon presentation and surrender of the Securities
      at
      the office therein specified. The Administrator will give such notice to each
      Rating Agency at the time such notice is given to Securityholders.

     

    In
      the
      event such notice is given, the Administrator shall reimburse the Master
      Servicer and the Servicer (or subservicer) for any amounts to be reimbursed
      to
      the Master Servicer or the Servicer (or subservicer) pursuant to this Agreement
      from funds in the Collection Account prior to remitting the balance of the
      funds
      in the Collection Account to the Note Payment Account. The Administrator shall
      cause all remaining funds in the Collection Account to be remitted to the
      Administrator for deposit in the Note Payment Account on the Business Day prior
      to the applicable Payment Date in an amount equal to the sum of the final
      payment in respect of the Securities and any Swap Termination Payment owed
      to
      the Swap Counterparty (to the extent not paid on previous Payment Dates). Upon
      such final deposit with respect to the Trust and the receipt by the Custodian
      of
      a Request for Release therefor, the Custodian shall promptly release to the
      Residual Holder or the Servicer, as applicable, the Mortgage Files for the
      Mortgage Loans.

     

    Upon
      presentation and surrender of the Securities, the Administrator shall cause
      to
      be paid to the Noteholders of each Class and to the Certificate Distribution
      Account for application as provided in the Trust Agreement, in each case in
      the
      order set forth in Section 4.2 hereof, on the final Payment Date, and in the
      case of the Noteholders, in proportion to their respective Percentage Interests,
      with respect to Noteholders of the same Class, an amount equal to (i) as to
      each
      Class of Notes, the Class Principal Balance thereof plus accrued interest
      thereon (or on their Class Notional Amount, if applicable) in the case of an
      interest bearing Note, and (ii) as to the Certificate Distribution Account,
      the
      amount, if any, which remains on deposit in the Note Payment Account (other
      than
      the amounts retained to meet claims) after application pursuant to clause (i)
      above.

     

    In
      the
      event that any affected Securityholders shall not surrender Securities for
      cancellation within six months after the date specified in the above-mentioned
      written notice, the Administrator shall give a second written notice to the
      remaining Securityholders to surrender their Securities for cancellation and
      receive the final payment with respect thereto. If within six months after
      the
      second notice all the applicable Securities shall not have been surrendered
      for
      cancellation, the Administrator may take appropriate steps, or may appoint
      an
      agent to take appropriate steps, to contact the remaining Securityholders
      concerning surrender of their Securities, and the cost thereof shall be paid
      out
      of the funds and other assets which remain a part of the Trust. If within one
      year after the second notice all Securities shall not have been surrendered
      for
      cancellation, the Residual Holder shall be entitled to all unclaimed funds
      and
      other assets held for payment to such Securityholders, which remain subject
      hereto.

     

    
      
        
        

      

      
        119

        
          

        

      

      
        
        

      

    

    

     

     

    ARTICLE
      X

     

    MISCELLANEOUS
      PROVISIONS

     

    
      	 	
              Section
                10.1

            	
              Amendment.

            

    

     

    This
      Agreement may be amended from time to time by the Issuer, the Depositor, the
      Seller, the Servicer, the Master Servicer, the Administrator, the Custodian,
      [the Credit Risk Manager] and the Indenture Trustee without the consent of
      any
      of the Noteholders or the Swap Counterparty (i) to cure any ambiguity or
      mistake, (ii) to cause the provisions herein to conform to or be consistent
      with
      or in furtherance of the statements made with respect to the Notes, the Trust
      Estate or this Agreement in any disclosure document pursuant to which any Notes
      were offered; to correct any defective provision herein or to supplement any
      provision herein which may be inconsistent with any other provision herein,
      (iii) to add, with such Person’s consent, to the duties of the Depositor, the
      Seller, the Servicer, the Master Servicer, the Administrator, the Custodian,
      [the Credit Risk Manager] or the Indenture Trustee, (iv) to add any other
      provisions with respect to matters or questions arising hereunder, (v) to
      modify, alter, amend, add to or rescind any of the terms or provisions contained
      in this Agreement or (vi) to comply with any rules promulgated by the
      Commission; provided
      that any
      action pursuant to clauses (iv) or (v) above shall not, as evidenced by an
      Opinion of Counsel addressed and delivered to the Indenture Trustee, the
      Administrator and [the Swap Counterparty] (which Opinion of Counsel shall not
      be
      an expense of the Indenture Trustee or the Trust), adversely affect in any
      material respect the interests of any Noteholder or [the Swap Counterparty];
      provided,
      however,
      that
      the amendment shall not be deemed to adversely affect in any material respect
      the interests of the Noteholders 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
      Notes; 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 Issuer, Depositor, the Seller, the Servicer, the Master Servicer,
      the Administrator, the Custodian, [the Credit Risk Manager] and the Indenture
      Trustee also may at any time and from time to time amend this Agreement without
      the consent of the Noteholders or [the Swap Counterparty], to modify, eliminate
      or add to any of its provisions to such extent as shall be necessary or helpful
      to comply with any requirements of the Code, provided
      that the
      Indenture Trustee has been provided an Opinion of Counsel, which opinion shall
      be an expense of the party requesting such opinion but in any case shall not
      be
      an expense of the Indenture Trustee or the Trust, 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.

     

    
      
        
        

      

      
        120

        
          

        

      

      
        
        

      

    

    

     

    This
      Agreement may also be amended from time to time by the Issuer, the Depositor,
      the Seller, the Servicer, the Master Servicer, the Administrator, the Custodian,
      [the Credit Risk Manager] and the Indenture Trustee with the consent of [the
      Swap Counterparty] and the Holders of a Majority Interest of each Class of
      Notes
      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 Notes; 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 Note without the consent of
      the
      Holder of such Note, (ii) adversely affect in any material respect the interests
      of the Holders of any Class of Notes in a manner other than as described in
      (i),
      without the consent of the Holders of Notes of such Class evidencing, as to
      such
      Class, Percentage Interests aggregating 66%, or (iii) reduce the aforesaid
      percentages of Notes the Holders of which are required to consent to any such
      amendment, without the consent of the Holders of all such Notes then
      outstanding.

     

    Promptly
      after the execution of any amendment to this Agreement requiring the consent
      of
      Noteholders, [the Swap Counterparty] and the Indenture Trustee, the
      Administrator shall furnish written notification of the substance or a copy
      of
      such amendment to each Noteholder and each Rating Agency.

     

    It
      shall
      not be necessary for the consent of Noteholders 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
      Noteholders shall be subject to such reasonable regulations as the Indenture
      Trustee may prescribe.

     

    Nothing
      in this Agreement shall require the Indenture Trustee to enter into an amendment
      without receiving an Opinion of Counsel (which Opinion shall not be an expense
      of the Indenture Trustee or the Trust), satisfactory to the Indenture Trustee,
      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 Noteholder or (B) the conclusion set forth in the
      immediately preceding clause (A) is not required to be reached pursuant to
      this
      Section 10.1.

     

    
      	 	
              Section
                10.2

            	
              Recordation
                of Agreement; Counterparts.

            

    

     

    This
      Agreement is subject to recordation in all appropriate public offices for real
      property records in all the counties or other comparable jurisdictions in which
      any or all of the properties subject to the Mortgages are situated, and in
      any
      other appropriate public recording office or elsewhere, such recordation to
      be
      effected by the Administrator at its expense, but only upon direction by a
      majority of the Noteholders to the effect that such recordation materially
      and
      beneficially affects the interests of the Noteholders. However, the foregoing
      sentence notwithstanding, the Servicer may provide copies hereof to counsel,
      judicial officers and government agencies, or may cause this Agreement to be
      recorded, in any jurisdiction in which, in the Servicer’s judgment, such
      disclosure or recording may facilitate foreclosure or other recovery with
      respect to any one or more of the Mortgage Loans. 

     

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed (by facsimile or otherwise)
      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.

     

    
      
        
        

      

      
        121

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              Section
                10.3

            	
              Governing
                Law.

            

    

     

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

     

    
      	 	
              Section
                10.4

            	
              Intention
                of Parties.

            

    

     

    It
      is the
      express intent of the Seller (as provided in the Sale Agreement) and the
      Depositor that the conveyance of the Trust Estate by the Depositor to the Issuer
      be, and be construed as, an absolute sale thereof to the Issuer. It is, further,
      not the intention of the parties that such conveyance be deemed a pledge thereof
      by the Depositor to the Issuer. However, in the event that, notwithstanding
      the
      intent of such 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 Issuer, for
      the benefit of the Noteholders, of a security interest in all of the assets
      that
      constitute the Trust Estate, whether now owned or hereafter
      acquired.

     

    The
      Depositor, for the benefit of the Noteholders, 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 Estate,
      such security interest would be deemed to be a perfected security interest
      of
      first priority under applicable law and will be maintained as such throughout
      the term of 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 Indenture Trustee for the benefit of the
      Noteholders.

     

    
      	 	
              Section
                10.5

            	
              Notices.

            

    

     

    (a) The
      Administrator shall use its best efforts to promptly provide notice to each
      Rating Agency and [the Swap Counterparty] 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 Event of Default that has not been cured;

     

    (iii) the
      resignation or termination of the Servicer, the Master Servicer, the
      Administrator or the Indenture Trustee and the appointment of any
      successor;

     

    (iv) the
      repurchase or substitution of Mortgage Loans pursuant to Section 2.3
      hereof;

     

    (v) the
      final
      payment to Noteholders; and

     

    
      
        
        

      

      
        122

        
          

        

      

      
        
        

      

    

    

     

    (vi) any
      rating action involving the long-term credit rating of the Indenture Trustee,
      which notice shall be made by first-class mail within two Business Days after
      the Indenture Trustee gains actual knowledge thereof.

     

    In
      addition, the Administrator shall promptly furnish to each Rating Agency and
      [the Swap Counterparty] copies of the following:

     

    (i) Each
      report to Noteholders described in Section 4.5 hereof;

     

    (ii) Upon
      request, each annual statement as to compliance described in Section 3.16
      hereof;

     

    (iii)
       Upon
      request, each annual Independent public accountants’ servicing report described
      in Section 3.17 hereof; and

     

    (iv) Any
      notice of a purchase of a Mortgage Loan pursuant to Section 2.2, 2.3 or 3.11
      hereof.

     

    (b) All
      directions, demands, authorizations, consents, waivers, communications and
      notices hereunder shall be in writing and shall be deemed to have been duly
      given when delivered by first class mail, facsimile or courier to the applicable
      Notice Address. Notices to Noteholders shall be deemed given when mailed, first
      class postage prepaid, to their respective addresses appearing in the Note
      Register.

     

    
      	 	
              Section
                10.6

            	
              Severability
                of Provisions.

            

    

     

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

     

    
      	 	
              Section
                10.7

            	
              Assignment.

            

    

     

    Notwithstanding
      anything to the contrary contained herein, except as provided in Section 6.2,
      this Agreement may not be assigned by the Servicer without the prior written
      consent of the Master Servicer, the Indenture Trustee and the
      Depositor.

     

    
      	 	
              Section
                10.8

            	
              Limitation
                on Rights of Noteholders.

            

    

     

    The
      death
      or incapacity of any Noteholder shall not operate to terminate this Agreement
      or
      the trust created hereby, nor entitle such Noteholder’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
      Noteholder shall have any right to vote (except as provided herein) or in any
      manner otherwise control the operation and management of the Trust, or the
      obligations of the parties hereto, nor shall anything herein set forth or
      contained in the terms of the Notes be construed so as to constitute the
      Noteholders from time to time as partners or members of an association; nor
      shall any Noteholder 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.

     

    
      
        
        

      

      
        123

        
          

        

      

      
        
        

      

    

    

     

    No
      Noteholder 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 Master Servicer or the Indenture
      Trustee, as applicable, a written notice of an Event of Default and of the
      continuance thereof, as herein provided, and unless the Holders of Notes
      evidencing not less than 25% of the Voting Interests evidenced by the Notes
      shall also have made written request to the Master Servicer or the Indenture
      Trustee, as applicable, to institute such action, suit or proceeding in its
      own
      name as Indenture Trustee hereunder and shall have offered to the Master
      Servicer or the Indenture Trustee, as applicable, such reasonable indemnity
      as
      it may require against the costs, expenses, and liabilities to be incurred
      therein or thereby, and the Master Servicer or the Indenture Trustee, as
      applicable, 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 Noteholder with every other Noteholder and the Master Servicer or the
      Indenture Trustee, as applicable, that no one or more Holders of Notes 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 Notes, 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 Noteholders. For the protection and enforcement of the
      provisions of this Section 10.8, each and every Noteholder and the Indenture
      Trustee shall be entitled to such relief as can be given either at law or in
      equity.

     

    
      	 	
              Section
                10.9

            	
              Inspection
                and Audit Rights.

            

    

     

    The
      Servicer agrees that, on five Business Days’ prior notice, it will permit and
      will cause each subservicer to permit any representative of the Depositor,
      the
      Indenture Trustee, the Master Servicer, the Administrator, during the Servicer’s
      normal business hours, to examine all the books of account, records, reports
      and
      other papers of the Servicer relating to the Mortgage Loans, to make copies
      and
      extracts therefrom, to cause such books to be audited by independent certified
      public accountants selected by the Depositor, the Indenture Trustee, the Master
      Servicer or the Administrator, 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 Indenture Trustee hereby
      authorizes 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, the Indenture Trustee, the Master Servicer or the Administrator,
      of
      any right under this Section 10.9 shall be borne by the party requesting such
      inspection (which, in the case of all reasonable out-of-pocket expenses of
      the
      Indenture Trustee, the Master Servicer or the Administrator, shall be
      reimbursable to such Person from funds then on deposit in the Note Payment
      Account); all other such expenses shall be borne by the Servicer or the related
      subservicer. The party requesting such inspection agrees to hold all such
      information in confidence and shall not disclose such information without the
      consent of the Servicer (unless required by law or a court of applicable
      jurisdiction).

     

    
      
        
        

      

      
        124

        
          

        

      

      
        
        

      

    

    

     

    Nothing
      in this Section shall limit the obligation of the Servicer to observe any
      applicable law prohibiting disclosure of information regarding the Mortgagors
      and the failure of the Servicer to provide access as provided in this Section
      as
      a result of such obligation shall not constitute a breach of this Section.
      Nothing in this Section 10.9 shall require the Servicer to collect, create,
      collate or otherwise generate any information that it does not generate in
      its
      usual course of business, except to the extent otherwise provided in this
      Agreement. Unless otherwise provided in this Agreement, the Servicer shall
      not
      be required to make copies of or ship documents to any party unless provisions
      have been made for the reimbursement of the costs thereof.

     

    
      	 	
              Section
                10.10

            	
              [Derivative
                Transactions

            

    

     

    At
      the
      discretion of the Seller, the Issuer shall enter into Passive Derivative
      contracts from time to time or Non-passive Derivative contracts at any time,
      so
      long as such action shall be for the benefit of the Noteholders; provided,
      however,
      that any
      counterparty to any such derivative contract shall not be an Affiliate of the
      Depositor. Any acquisition of a derivative contract shall be accompanied by
      (i)
      an appropriate amendment to this Agreement, and (ii) any Opinion of Counsel
      required by Section [     ]. 

     

    All
      collections, proceeds and other amounts in respect of the derivative contracts
      payable by the derivative counterparty shall be distributed to the Notes on
      the
      Payment Date following receipt thereof by the Paying Agent. 

     

    Any
      derivative contract that provides for any payment obligation on the part of
      the
      Issuer must (i) be without recourse to the assets of the Trust, (ii) contain
      a
      non-petition covenant provision from the derivative counterparty, (iii) limit
      payment dates thereunder for payments, if any, by the Issuer to Payment Dates
      (iv) contain a provision limiting any cash payments due to the derivative
      counterparty on any day under such derivative contract solely to funds available
      therefor in the Distribution Account available to make distributions to the
      Holders of the Notes on such Payment Date and (v) provide for copies of all
      notices and correspondence to be provided to the Paying Agent. 

     

    Each
      derivative contract must (i) provide for the direct payment of any amounts
      by
      the derivative counterparty thereunder to the Note Payment Account at least
      one
      Business Day prior to the related Payment Date, (ii) provide that in the event
      of the occurrence of an Event of Default, such derivative contract shall
      terminate upon the direction of a majority Percentage Interest of the Notes
      and
      (iii) prohibit the derivative counterparty from “setting-off” or “netting” other
      obligations of the Issuer against such derivative counterparty’s payment
      obligations thereunder. 

     

    The
      Seller shall determine, in its sole discretion, whether any derivative contract
      conforms to the requirements of this Section 10.10.]

     

    
      
        
        

      

      
        125

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              Section
                10.11

            	
              Limitations
                on Actions; No Proceedings.

            

    

     

    (a) Other
      than pursuant to this Agreement, or in connection with or incidental to the
      provisions or purposes of this Agreement, the trust created hereunder shall
      not
      (i) issue debt or otherwise borrow money, (ii) merge or consolidate with any
      other entity reorganize, liquidate or transfer all or substantially all of
      its
assets
      to any
      other entity, or (iii) otherwise engage in any activity or exercise any power
      not provided for in this Agreement.

     

    (b) Notwithstanding
      any prior termination of this Agreement, the Indenture Trustee, the
      Administrator, the Master Servicer, the Servicer, the Seller, [the Credit Risk
      Manager] and the Depositor shall not, prior to the date which is one year and
      one day after the termination of this Agreement, acquiesce, petition or
      otherwise invoke or cause any Person to invoke the process of any court or
      government authority for the purpose of commencing or sustaining a case against
      the Depositor or the Trust under any federal or state bankruptcy, insolvency
      or
      other similar law or appointing a receiver, liquidator, assignee, Indenture
      Trustee, custodian, sequestrator or other similar official of the Depositor
      or
      the Trust or any substantial part of their respective property, or ordering
      the
      winding up or liquidation of the affairs of the Depositor or the
      Trust.

     

    
      	 	
              Section
                10.12

            	
              Mortgage
                Data.

            

    

     

    The
      Depositor hereby represents to S&P that, to the Depositor’s knowledge, the
      information provided to such Rating Agency, including any loan level detail,
      is
      true and correct according to such Rating Agency’s requirements.

     

    
      	 	
              Section
                10.13

            	
              Waiver
                of Jury Trial.

            

    

     

    EACH
      PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES (TO THE EXTENT
      PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY
      DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH
      DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

     

    
      	 	
              Section
                10.14

            	
              Limitation
                of Damages.

            

    

     

    NOTWITHSTANDING
      ANYTHING CONTAINED HEREIN TO THE CONTRARY, THE PARTIES AGREE THAT NO PARTY
      SHALL
      BE LIABLE TO ANY OTHER PARTY OR ANY SECURITYHOLDER FOR ANY SPECIAL,
      CONSEQUENTIAL OR PUNITIVE DAMAGES WHATSOEVER, WHETHER IN CONTRACT, TORT
      (INCLUDING NEGLIGENCE AND STRICT LIABILITY), OR ANY OTHER LEGAL OR EQUITABLE
      PRINCIPLE.

     

    
      	 	
              Section
                10.15

            	
              Execution
                by the Issuer.

            

    

     

    
      
        
        

      

      
        126

        
          

        

      

      
        
        

      

    

    

     

    It
      is
      expressly understood and agreed by the parties hereto that (a) this Agreement
      is
      executed and delivered by
      [          ], not individually
      or personally but solely as Owner Trustee of the Issuer, in the exercise of
      the
      powers and authority conferred and vested in it as trustee, (b) each of the
      representations, undertakings and agreements herein made on the part of the
      Issuer is made and intended not as personal representations, undertakings and
      agreements by [          ] but
      is made and intended for the purpose of binding only the Issuer, (c) nothing
      herein contained shall be construed as creating any liability on
      [          ], individually or
      personally, to perform any covenant either expressed or implied contained
      herein, all such liability, if any, being expressly waived by the parties hereto
      and by any person claiming by, through or under the parties hereto and (d)
      under
      no circumstances shall
      [          ] be personally
      liable for the payment of any indebtedness or expenses of the Issuer or be
      liable for the breach or failure of any obligation, representation, warranty
      or
      covenant made or undertaken by the Issuer under this Agreement or any other
      document.

     

    *
      *
      *

    

     

    

    
      
        
        

      

      
        127

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer, the Depositor, the Seller, the Servicer, the Master
      Servicer, the Custodian, the Administrator, [the Credit Risk Manager] and the
      Indenture Trustee, have caused their names to be signed hereto by their
      respective officers thereunto duly authorized as of the day and year first
      above
      written.

     

    
      	 	 	 
	 	
              AEGIS
                ASSET BACKED 

              SECURITIES
                TRUST 20[  ]-[  ]

            
	 
 	 
 	 
 
	 	By:  	
              [          ],
                not in its individual capacity but solely as Owner
                Trustee

            
	 	 	 
	 	By:  	[          ]
	 	 	
              
Name:
              [          ] 
              Title:  
                [          ]

            
	 	
            

    

    
       

      
        
          	 	 	 
	 	
                  
                    AEGIS
                      ASSET BACKED SECURITIES CORPORATION,

                    as
                      Depositor

                  

                
	 
 	 
 	 
 
	 	 By: 	
                  [          ]

                
	 	 	
                  

                  Name:
                    [          ]

                  Title:  
                    [          ]

                
	 	
                

        

         

        
          
            	 	 	 
	 	
                    
                      [AEGIS
                        REIT CORPORATION] [AEGIS MORTGAGE CORPORATION], 

                      as
                        Seller

                    

                  
	 
 	 
 	 
 
	 	By:  	
                    [          ]

                  
	 	 	
                    

                    Name:
                      [          ]

                    Title:  
                      [          ]

                  
	 	 	 
	 	 	 
	 	 	
                    [          ],
                      

                    as
                      Servicer

                  
	 	 	 
	 	By: 	[          ]
	 	 	
                    
                      

                    

                    Name:
                      [          ] 

                    Title:  
                      [          ]

                  
	 	 	 
	 	
                    

                     

                  

          

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	 	 	 
	 
 	 
 	
                [          ],

                as
                  Master Servicer

              
	 	 	 
	 	 	 
	 	By:  	
                [          ]

              
	 	 	
                

                Name:
                  [          ]

                Title:  
                  [          ]

              
	 	 	 
	 	 	 
	 	 	
                [          ],
                  

                as
                  Administrator

              
	 	 	 
	 	 	 
	 	By: 	[          ]
	 	 	
                
                  

                

                Name:
                  [          ] 

                Title:  
                  [          ]

              
	 	 	 
	 	 	 
	 	 	
                [          ],

                as
                  Custodian

              
	 	 	 
	 	 	
              
	 	By: 	[          ]
	 	 	
                
                  
 [          ] 

                Name:
                  [          ]

                Title:  
                  [          ]

              
	 	 	 
	 	 	 
	 	 	
                [[          ],

                 

                as
                  Credit Risk Manager

              
	 	 	 
	 	 	 
	 	By:	[          ]
	 	 	
                
                  

                

                Name:
                  [          ]

                Title:  
                  [          ]]

              
	 	 	 
	 	 	 
	 	 	
                [          ],

                not
                  it its individual capacity but solely as Indenture Trustee 

              
	 	 	 
	 	 	
              
	 	By:	[          ]
	 	 	
                

                Name: [          ]

                Title:   [          ]

              
	 	
                

                 

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      I

    

    [MORTGAGE
      LOAN SCHEDULE] [REVOLVING CREDIT LOAN SCHEDULE] 

    

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    FORM
      OF
      INITIAL CERTIFICATION OF CUSTODIAN

    

    _______________
      __,
      20[  ]

     

    Aegis
      Asset Backed Securities Corporation

    3250
      Briarpark, Suite 400

    Houston,
      Texas 77042

    Attention:
      Secondary Marketing

     

    [Aegis
      REIT Corporation] [Aegis Mortgage Corporation]

    3250
      Briarpark, Suite 400

    Houston,
      Texas 77042

    Attention:
      Secondary Marketing

     

    [          ]

    [          ],
      [          ]

    Attention:
      [Corporate Trust Services] (Aegis 20[  ]-[  ])

     

    [          ]

    [          ],
      [          ]

    Attention:
      [Secretary] / AEGIS 20[  ]-[  ]

    

    AEGIS
      ASSET BACKED SECURITIES TRUST 20[  ]-[  ]

    MORTGAGE
      BACKED NOTES

    

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.2 of the Transfer and Servicing Agreement dated as
      of
      [          ],
      20[  ], among Aegis Asset Backed Securities Trust
      20[  ]-[  ], as Issuer, Aegis Asset Backed Securities
      Corporation, as Depositor, [Aegis REIT Corporation] [Aegis Mortgage
      Corporation], as Seller,
      [          ], as Master
      Servicer, Administrator and Custodian,
      [          ], as Servicer,
      [[          ], as Credit Risk
      Manager,] and[          ], as
      Indenture Trustee, the Custodian hereby certifies that it has received and
      is
      holding a Mortgage File with respect to each Mortgage Loan (other than any
      Mortgage Loan listed on the schedule of exceptions attached hereto) listed
      on
      Schedule I (a copy of which is attached hereto) to the Transfer and Servicing
      Agreement.

     

    In
      connection therewith, the Custodian has examined each Mortgage File to confirm
      that:

     

    (i) each
      Note
      (or, if applicable, a lost note affidavit) required to be included in the
      Mortgage File is in its possession; and

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    

     

    (ii) the
      name
      of the related borrower set forth on each Note (or, if applicable, a lost note
      affidavit) required to be included on the Mortgage File is identical to the
      name
      of the related borrower set forth on the Mortgage Loan Schedule.

     

    The
      Custodian further certifies that the Custodian’s initial review of each Mortgage
      File included each of the procedures relevant to an initial review set forth
      in
      Section 2.2 of the Transfer and Servicing Agreement.

     

    The
      Custodian has not (i) inspected, reviewed or examined any such documents,
      instruments, securities or other papers to determine that they or the signatures
      thereon are genuine, enforceable, or appropriate for the represented purpose,
      any such documents, instruments, securities or other papers have actually been
      recorded or that any document that appears to be an original is in fact an
      original, or (ii) determined whether any Mortgage File should include any surety
      or guaranty, Note Assumption Rider, buydown agreement, assumption agreement,
      modification agreement, written assurance or substitution
      agreement.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Transfer and Servicing Agreement.

     

    [          ],

    as
      Custodian

     

    By:
                                                               

    Name:                                                             

    Title:
                                                                   

    

    

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    FORM
      OF
      FINAL CERTIFICATION OF CUSTODIAN

     

    _____________
      __,
      20[  ]

     

    Aegis
      Asset Backed Securities Corporation

    3250
      Briarpark, Suite 400

    Houston,
      Texas 77042

    Attention:
      Secondary Marketing

     

    [Aegis
      REIT Corporation] [Aegis Mortgage Corporation]

    3250
      Briarpark, Suite 400

    Houston,
      Texas 77042

    Attention:
      Secondary Marketing 

     

    [          ]

    [          ],
      [          ]

    Attention:
      [Corporate Trust Services] (Aegis 20[  ]-[  ])

     

    [          ]

    [          ],
      [          ]

    Attention:
      [Secretary] / AEGIS 20[  ]-[  ]

     

    AEGIS
      ASSET BACKED SECURITIES TRUST 20[  ]-[  ]

    MORTGAGE
      BACKED NOTES

     

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.2 of the Transfer and Servicing Agreement dated as
      of
      [          ],
      20[  ], among Aegis Asset Backed Securities Trust
      20[  ]-[  ], as Issuer, Aegis Asset Backed Securities
      Corporation, as Depositor, [Aegis REIT Corporation] [Aegis Mortgage
      Corporation], as Seller,
      [          ], as Master
      Servicer, Administrator and Custodian,
      [          ], as Servicer,
      [[          ], as Credit Risk
      Manager,] and [          ], as
      Indenture Trustee, the Custodian hereby certifies that it has received and
      is
      holding a Mortgage File with respect to each Mortgage Loan (other than any
      Mortgage Loan listed on the schedule of exceptions attached hereto) listed
      on
      Schedule I (a copy of which is attached hereto) to the Transfer and Servicing
      Agreement.

     

    In
      connection therewith, the Custodian has examined each Mortgage File to confirm
      that:

     

    (i) each
      Note
      required to be included in the Mortgage File is in its possession; 

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    

     

    (ii) the
      name
      of the related borrower set forth on each Note (or, if applicable, a lost note
      affidavit) required to be included on the Mortgage File is identical to the
      name
      of the related borrower set forth on the Mortgage Loan Schedule;

     

    (iii) all
      documents required to be contained in the Mortgage File are in its
      possession;

     

    (iv) such
      documents have been reviewed by it and appear to relate to such Mortgage Loan
      and are not torn or mutilated; and

     

    (v) based
      on
      its examination and only as to the foregoing documents, the mortgage information
      set forth on the Mortgage Loan Schedule accurately reflects information set
      forth in the Mortgage File and each balance listed as the “Original Balance” on
      Schedule I to the Transfer and Servicing Agreement is identical to the original
      principal amount of the corresponding Note (or, if applicable, the amount set
      forth in a lost note affidavit).

     

    The
      Custodian further certifies that the Custodian’s final review of each Mortgage
      File included each of the procedures relevant to the final review set forth
      in
      Section 2.2 of the Transfer and Servicing Agreement.

     

    The
      Custodian has not (i) inspected, reviewed or examined any such documents,
      instruments, securities or other papers to determine that they or the signatures
      thereon are genuine, enforceable, or appropriate for the represented purpose,
      any such documents, instruments, securities or other papers have actually been
      recorded or that any document that appears to be an original is in fact an
      original, or (ii) determined whether any Mortgage File should include any surety
      or guaranty, Note Assumption Rider, buydown agreement, assumption agreement,
      modification agreement, written assurance or substitution
      agreement.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Transfer and Servicing Agreement.

     

    [          ],

    as
      Custodian

     

    By:
                                                               

    Name:                                                             

    Title:
                                                                   

    

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

     

    REQUEST
      FOR RELEASE OF DOCUMENTS

     

    

     

    
      	
              To:

               

            	
              [          ]

               

            
	 	
              [          ],
                [          ]

               

            
	 	
              Attn:
                [Inventory Control]

               

            

    

    

     

    
      	 	
              Re:

            	
              Transfer
                and Servicing Agreement dated as of
                [          ],
                20[  ], among Aegis Asset Backed Securities Trust
                20[  ]-[  ], as Issuer, Aegis Asset Backed Securities
                Corporation, as Depositor, [Aegis REIT Corporation] [Aegis Mortgage
                Corporation], as Seller,
                [          ], as Master
                Servicer, Administrator and Custodian,
                [          ], as
                Servicer, [[          ],
                as Credit Risk Manager,] and
                [          ], as
                Indenture Trustee

            

    

    

    In
      connection with the administration of the Mortgage Loans held by you as
      Custodian for the Owner pursuant to the above-captioned Transfer and Servicing
      Agreement, we request the release, and hereby acknowledge receipt, of the
      Custodian’s Mortgage File for the Mortgage Loan described below, for the reason
      indicated.

    

    Mortgage
      Loan Number:

    

    Mortgagor
      Name, Address & Zip Code:

     

    Reason
      for Requesting Documents
      (check
      one):

    

    
      	
              ______

            	
              1.

            	
              Mortgage
                Paid in Full

            	 
	 	 	 	 
	
              ______

            	
              2.

            	
              Foreclosure

            	 
	 	 	 	 
	
              ______

            	
              3.

            	
              Substitution

            	 
	 	 	 	 
	
              ______

            	
              4.

            	
              Other
                Liquidation (Repurchases, etc.)

            	 
	 	 	 	 
	
              ______

            	
              5.

            	
              Nonliquidation

            	
              Reason:_________________

            
	 	 	 	 

    

    

    
      	
              Address
                to which Custodian should

              Deliver
                the Custodian’s Mortgage File

            	
              ____________________________________

              ____________________________________

              _____________________________________

            

    

     

    By:
      ________________________________

    (authorized
      signer)

    Issuer:
      ______________________________

    Address:
      ____________________________

     

    Date:
      _______________________________

    

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    Custodian

    

    

    [          ]

    Please
      acknowledge the execution of the above request by your signature and date
      below:

    

    
      	
              _____________________________

            	
              _________________

            
	
              Signature

            	
              Date

            
	 	 
	
              Documents
                returned to Custodian:

            	 
	 	 
	
              ______________________________

            	
              _________________

            
	
              Custodian

            	
              Date

            

    

    

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    

    FORM
      OF
      CERTIFICATION TO BE 

    PROVIDED
      TO THE DEPOSITOR BY THE SERVICER

    

    Aegis
      Asset Backed Securities Corporation

    3250
      Briarpark, Suite 400

    Houston,
      TX 77042

    

    
      	
            	Re:	
              Aegis
                Asset Backed Securities Trust 20[  ]-[  ] 
                Mortgage
                  Backed Notes 

              

            

    

    

    Reference
      is made to the transfer and servicing agreement
      dated as
      of [          ],
      20[  ] (the “Transfer and Servicing Agreement”), among Aegis Asset
      Backed Securities Trust 20[  ]-[  ], as Issuer, Aegis Asset
      Backed Securities Corporation, as Depositor, [Aegis REIT Corporation] [Aegis
      Mortgage Corporation], as Seller,
      [          ], as Master
      Servicer, Administrator and Custodian,
      [          ], as Servicer,
      [[          ], as Credit Risk
      Manager,] and [          ], as
      Indenture Trustee. I, [identify the certifying individual], a [TITLE] of the
      Servicer, hereby certify to the Depositor and its officers,
      directors and affiliates, and with the knowledge and intent that they will
      rely
      upon this certification, that:

     

    
      	
              1.

            	
              I
                have reviewed the servicer compliance statement of the Servicer provided
                in accordance with Item 1123 of Regulation AB (the “Compliance
                Statement”), the report on assessment of the Servicer’s compliance with
                the servicing criteria set forth in Item 1122(d) of Regulation AB
                (the
                “Servicing Criteria”), provided in accordance with Rules 13a-18 and 15d-18
                under Securities Exchange Act of 1934, as amended (the “Exchange Act”) and
                Item 1122 of Regulation AB (the “Servicing Assessment”), the registered
                public accounting firm’s attestation report provided in accordance with
                Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b)
                of
                Regulation AB (the “Attestation Report”), and all servicing reports,
                officer’s certificates and other information relating to the servicing of
                the Mortgage Loans by the Servicer during 200[ ] that were delivered
                by the Servicer pursuant to the Transfer and Servicing Agreement
                (collectively, the “Servicing
                Information”);

            

    

    

    
      	
              2.

            	
              Based
                on my knowledge, all of the Servicing Information required to be
                provided
                by the Servicer under the Transfer and Servicing Agreement has been
                provided to the Master Servicer when and as required under the Transfer
                and Servicing Agreement;

            

    

    

    
      	
              3.

            	
              Based
                on my knowledge, the Servicing Information does not contain any material
                untrue information or omit to state information necessary to make
                the
                Servicing Information, in light of the circumstances under which
                such
                information was provided, not misleading as of the date of this
                certification; and

            

    

    

    
      	
              4.

            	
              The
                Compliance Statement, the Servicing Assessment and the Attestation
                Report
                required to be included in the Annual Report on Form 10-K filed by
                the
                Depositor have been provided to the [Depositor] [Master Servicer].
                Any
                material instances of noncompliance described in such reports have
                been
                disclosed to the Depositor. Any material instance of noncompliance
                with
                the Servicing Criteria has been disclosed in such
                reports.

            

    

     

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    
 

    
      	
              5.

            	
              I
                am responsible for reviewing the activities performed by the Servicer
                under the Transfer and Servicing Agreement, and based upon my knowledge
                and the review required under the Transfer and Servicing Agreement,
                and
                except as disclosed in writing to you on or prior to the date of
                this
                certification either in the accountants’ report required under the
                Transfer and Servicing Agreement or in disclosure, a copy of which
                is
                attached hereto, the Servicer has, as of the last day of the period
                covered by such reports, fulfilled its obligations under the Transfer
                and
                Servicing Agreement.

            

    

    [          ],

    as
      Servicer

    

    _____________________________

    By:

    Title:

    Date:

    

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

     

    FORM
      OF
      CERTIFICATION TO BE PROVIDED 

    TO
      THE
      DEPOSITOR BY THE ADMINISTRATOR

    

    

    
      	
            	Re:	
              Aegis
                Asset Backed Securities Trust 20[  ]-[  ]

              Mortgage
                Backed Notes 

            

    

     

    

    I,
      [identify the certifying individual], a [title] of
      [          ], as
      Administrator, hereby certify to Aegis Asset Backed Securities Corporation
      (the
“Depositor”), and its officers, directors and affiliates, and with the knowledge
      and intent that they will rely upon this certification that:

    

    1. [I
      have
      reviewed the annual report on Form 10-K for the fiscal year [____], and all
      reports on Form 8-K containing payment reports filed in respect of periods
      included in the year covered by that annual report, of the Depositor, relating
      to the above-referenced trust;]

     

    2. [Based
      on
      my actual knowledge, without independent investigation or inquiry, the
      information in these payment reports prepared by the Administrator, taken as
      a
      whole, does not contain any untrue statement of a material fact or omit to
      state
      a material fact necessary to make the statements made, in light of the
      circumstances under which such statements were made not misleading as of the
      last day of the period covered by that annual report; and]

     

    3. [Based
      on
      my knowledge, the payment information required to be provided by the
      Administrator under the transfer and servicing agreement is included in these
      payment reports.]

     

    

    Date: _________________________________

     

     

    

    [          ],
      as Administrator

    

    

    

    

    By:
      ____________________________________

    [Signature]

    [Title]

    

    

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

    

    FORM
      OF
      LIMITED POWER OF ATTORNEY TO BE 

    PROVIDED
      TO THE SERVICER BY THE INDENTURE TRUSTEE

    

    

    __________________________________________________________________________________________

    LIMITED
      POWER OF ATTORNEY

     

    [          ],
      a
      [national banking association], (the "Company") hereby irrevocably constitutes
      and appoints [          ],
      ("[     ]"), and any officer or agent thereof, with
      full power of substitution, as its true and lawful attorney-in-fact with full
      irrevocable power and authority in the place and stead of the Company and in
      the
      name of the Company or in its own name, from time to time in
      [     ]'s discretion, for the purpose of servicing
      mortgage loans, to take any and all appropriate action and to execute any and
      all documents and instruments which may be necessary or desirable to accomplish
      the purposes of servicing mortgage loans, and, without limiting the generality
      of the foregoing, the Company hereby gives [     ] the
      power and right, on behalf of the Company, without assent by the Company, to
      do
      the following, to the extent consistent with the terms and conditions of the
      Transfer and Servicing Agreements and Servicing Agreements attached hereto
      as
      Exhibit A :

     

    (A)
      to
      direct any party liable for any payment under any loans to make payment of
      any
      and all moneys due or to become due thereunder directly to
      [     ] or as [     ] shall
      direct and in the name of the Company or its own name, or otherwise, to take
      possession of and endorse and collect any checks, drafts, notes, acceptances,
      or
      other instruments for the payment of moneys due under any loans (including
      those
      related to mortgage insurance); (B) to execute substitutions of trustee,
      reconveyance documents, foreclosure documents, modifications, grant deeds and
      other instruments conveying real property,
      and such
      other documents as [     ] deems necessary to carry out
      its obligations to service the mortgage loans; (C) to ask or demand for,
      collect, receive payment of and receipt for, any and all moneys, claims, and
      other amounts due or to become due at any time in respect of or arising out
      of
      any loans; (D) to commence and prosecute any suits, actions, or proceedings
      at
      law or in equity in any court of competent jurisdiction to collect the loans
      or
      any thereof and to enforce any other right in respect of any loans; and
      (E) generally, to do, at [     ]'s option, at any
      time, and from time to time, all acts and things which
      [     ] deems necessary to protect, preserve or realize
      upon the loans and the liens thereon and to effect the intent of the Agreement,
      all as fully and effectively as the Company might do.

     

    DATED
      this ____ day of __________________ 200_.

    

    

    

    

    [          ],
      a
      [national banking association]

    

    By:
      _____________________________   

    Its:
      _____________________________    

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

    

    

    STATE
      OF
      ___________

    

    COUNTY
      OF
      _________

    

    On
      this
      ________ day
      of                             
      20[  ], before me, the undersigned, a notary public, personally
      appeared ____________________ ,
      ________ of [          ],
      a
      [national banking association], who is personally known to me on the basis
      of
      satisfactory evidence to be the person whose name is subscribed to the within
      instrument and acknowledged to me that they executed the same in his/her
      authorized capacities and that by their signatures on the instrument the persons
      of the entry upon behalf of which the persons acted, executed the
      Instrument.

    

    WITNESS
      my hand and official seal.

    

    Signature ______________________________    

    

    

    

    
      
        
        

      

      
        F-2

        
          

        

      

      
        
        

      

    

    Exhibit
      A [to Exhibit F]

    

    Transfer
      and Servicing Agreement

    Among

    

    Aegis
      Asset Backed Securities Corporation, [Aegis REIT Corporation] [Aegis Mortgage
      Corporation], [          ],
      [          ],
      [          ]
      and
[          ]

    

    Aegis
      Asset Backed Securities Trust 20[  ]-[  ]

    Mortgage
      Backed Notes

    

    

    

    
      
        
        

      

      
        F-3

        
          

        

      

      
        
        

      

    

    [EXHIBIT
      G

    

    CREDIT
      RISK MANAGEMENT AGREEMENTS]

    

    

    

     

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

      

    

    [EXHIBIT
      H

    

    SWAP
      AGREEMENT]

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

    [EXHIBIT
      I

    

    CLASS
      N
      CAP AGREEMENT]

     

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

      

    

    [EXHIBIT
      J

    

    CAP
      AGREEMENT]

    

    
      
        
        

      

      
        J-1

        
          

        

      

      
        
        

      

    

    [EXHIBIT
      K

     

    

    FORM
      OF
      ADDITION NOTICE

     

    Pursuant
      to Section 2.1(a) of the Transfer and Servicing Agreement dated as of
      [          ], by and among
      Aegis Asset Backed Securities Corporation, as depositor (the “Depositor”),
      [Aegis Mortgage Corporation], as seller,
      [          ], as master
      servicer (in such capacity, the “Master Servicer”), administrator (in such
      capacity, the “Administrator”) and custodian (in such capacity, the
“Custodian”), [          ], as
      servicer, [          ], as
      credit risk manager, and
      [           ], as trustee
      (the “Trustee”), the Depositor hereby provides notice to the Trustee, the Master
      Servicer, the Custodian and the Rating Agencies that the Subsequent Mortgage
      Loans identified on Schedule I attached hereto will be sold to the Trust on
      [_______] (the
      “Transfer Date”) pursuant to a Transfer Supplement. 

     

    Capitalized
      terms not otherwise defined herein shall have the meanings set forth in the
      Transfer and Servicing Agreement.

     

    

     

    AEGIS
      ASSET BACKED SECURITIES CORPORATION, as Depositor

     

    By: ___________________________________    

    Name:

    Title:

    

     

    

     

    
      
        
        

      

      
        K-1

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I TO

     

    ADDITION
      NOTICE]

     

    
      
        
        

      

      
        K-2Exhibit
      10.42

    

    ENER1,
      INC.

    500
      West
      Cypress Creek Road

    Fort
      Lauderdale, Florida 33309

    

    October
      1, 2005

    

    Dear
      Mr.
      Grape:

    

    The
      Board
      of Directors of ENER1, INC. (the "Corporation") is pleased to award you an
      option (the "Option") to purchase shares of the common stock, par value $0.01
      per share, of the Corporation (the "Common Stock"). This option agreement (the
      "Agreement") will describe the Option granted to you. Your signature on this
      Agreement is an acknowledgement to us that you have read and understand this
      Agreement and that you agree to abide by its terms. 

    

    1.     Grant
      of Option.
      Subject
      to the conditions hereinafter set forth, we grant you the right to purchase
      one
      million (1,000,000) shares of
      Common
      Stock at $0.49 per share, the current fair market value of a share of Stock.
      On
      October 1 2006, and the following three anniversaries of such date, the right
      to
      purchase the shares of Common Stock shall vest with respect to 250,000 shares.
      Notwithstanding anything to the contrary in this Agreement, the right to
      purchase shares of Common Stock shall not vest on any date unless you are
      employed as of such date by EnerDel, Inc. ("EnerDel"), a subsidiary of the
      Corporation. In
      the
      event of a Change of Control of EnerDel, the right to purchase the shares of
      Common Stock shall vest and shall be fully exercisable immediately. A
      "Change
      in Control"
      shall
      be deemed to occur if any Person shall acquire direct or indirect beneficial
      ownership (whether as a result of stock ownership, revocable or irrevocable
      proxies or otherwise) of securities of EnerDel, pursuant to one or more
      transactions, such that after consummation and as a result of such transaction,
      such Person has direct or indirect beneficial ownership of 50% or more of the
      total combined voting power with respect to the election of directors of the
      issued and outstanding securities of EnerDel. "Person"
      shall
      mean any person, corporation, partnership, joint venture or other entity or
      any
      group (as such term is defined for purposes of Section 13(d) of the Exchange
      Act), other than a Parent or Subsidiary, and "beneficial ownership" shall be
      determined in accordance with Rule 13d-3 under the Exchange Act. Notwithstanding
      the foregoing, for purposes of this Agreement, "Change of Control" shall not
      include any change of control, actual or implicit, resulting from any Person
      or
      Persons gaining 50% or more of the combined voting power for EnerDel (or less
      than 50%, even though such lesser amount may represent effective voting control)
      through an initial public offering by EnerDel or other financing conducted
      by or
      on behalf of EnerDel.

    

    2.     Time
      of Exercise.
      The
      Option may be exercised at any time and from time to time beginning when the
      right to purchase the shares of Stock vests and ending when this Option
      terminates as provided in Section 5 hereof. Notwithstanding anything to the
      contrary in this Agreement, the Option may not be exercised unless
      EnerDel reports revenue of at least $1.5 million for calendar 2005 and $7.0
      million for calendar 2006, as confirmed by review or audit by EnerDel's
      independent registered auditors. If EnerDel's revenue falls short of these
      target(s) for any of the time frames involved by 20% or more, you shall not
      be
      able to exercise any portion of the Option that has vested unless and until
      EnerDel's revenue for subsequent time frames exceeds $6.8 million (which is
      80%
      of the combined target revenue for 2005 and 2006).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.     Method
      of Exercise.
      The
      Option shall be exercised by written notice to the Corporation’s Secretary at
      the Corporation's principal place of business. The notice shall set forth the
      number of shares of Common Stock to be acquired and how
      the
      shares of Common Stock to be acquired should be registered (in your name only
      or
      in your name and your spouse's names as community property or as joint tenants
      with right of survivorship). 

     

    The
      Corporation shall not be obligated to issue any shares of Common Stock until
      you
      shall have paid the total exercise price for that number of shares of Common
      Stock. The exercise price may be paid in cash or by certified or cashiers'
      check
      or by such other method as permitted by the Board of Directors of the
      Corporation.

     

    Fractional
      shares may not be exercised. Shares of Common Stock will be issued as soon
      as
      practical after exercise. 

     

    Notwithstanding
      the above, the Corporation shall not be obligated to deliver any shares of
      Common Stock during any period when the Corporation determines that the
      exercisability of the Option or the delivery of shares hereunder would violate
      any federal, state or other applicable laws, and the Option may be rescinded
      if
      necessary to ensure compliance with federal, state or other applicable
      laws.

    

    4.     Termination
      of Option.
      To the
      extent not exercised, the Option shall terminate upon the first to occur of
      the
      following dates:

    

    
      	 	
              (a)

            	
              October
                1, 2015, being ten (10) years from the date of grant;
                or

            

    

    

    
      	 	
              (b)

            	
              Immediately
                upon the date your employment with EnerDel
                terminates.

            

    

    

    5.     Non-Transferability.
      The
      Option cannot be transferred other than (i) by will or the laws of descent
      and
      distribution
      or (ii)
      on such terms and conditions as the Board of Directors of the Corporation in
      its
      sole discretion shall approve.

    

    6.     Securities
      Laws. As
      of the
      date hereof, the Option and the shares of Stock underlying the Option have
      not
      been registered under the Securities Act of 1933, as amended (the "Act"). You
      agree that any shares of Common Stock acquired by you under this Agreement
      cannot be sold, transferred, assigned or otherwise hypothecated without
      registration under the Act or unless a valid exemption from registration is
      then
      available under applicable federal and state securities laws and the Corporation
      has been furnished with an opinion of counsel satisfactory in form and substance
      to the Corporation that such registration is not required.

    

    7.     Income
      Taxes.
      To the
      extent required by applicable federal, state, local or foreign law, you shall
      make arrangements satisfactory to the Corporation for the satisfaction of any
      withholding tax obligations that arise by reason of an Option exercise or
      disposition of shares issued as a result of an Option exercise. The Corporation
      shall not be required to issue shares or to recognize the disposition of such
      shares until such obligations are satisfied. 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    The
      Option is intended to qualify as an incentive stock option under
      Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"),
      and will be interpreted accordingly. Section 422 of the Code provides, among
      other things, that you shall not be taxed upon the exercise of a stock option
      that qualifies as an incentive stock option provided that you do not dispose
      of
      the shares of Common Stock acquired upon exercise of such option until the
      later
      of two years after such option is granted to you and one year after such option
      is exercised. Notwithstanding anything to the contrary herein, Section 422
      of
      the Code provides that incentive stock options (including, possibly, the Option)
      shall not be treated as incentive stock options if and to the extent that the
      aggregate fair market value of shares of Common Stock (determined as of the
      time
      of grant) with respect to which such incentive stock options are exercisable
      for
      the first time by you during any calendar year (under all plans of the
      Corporation and its subsidiaries) exceeds $100,000, taking options into account
      in the order in which they were granted. Thus, if and to the extent that any
      shares of Common Stock issued under a portion of the Option exceeds the
      foregoing $100,000 limitation, such shares shall not be treated as issued under
      an incentive stock option pursuant to Section 422 of the Code.

     

    8.     Recapitalization.
      If
      the
      outstanding shares of Common Stock are increased or decreased or changed into
      or
      exchanged for a different number or kind of shares or other securities of Issuer
      by reason of any recapitalization, reclassification, reorganization, stock
      split, reverse split, combination of shares, exchange of shares, stock dividend
      or other distribution payable in capital stock of the Corporation or other
      increase or decrease in such shares effected without receipt of consideration
      by
      the Corporation occurring after the date of this Agreement, an appropriate
      and
      proportionate adjustment shall be made by the Board of Directors of the
      Corporation (i)  in the number and kind of shares of Common Stock issuable
      upon exercise (or vesting) of the Option and (ii) in the exercise price per
      share of the Option.

     

    9.     Limitation
      of Interest.
      Neither
      you nor any beneficiary or other person claiming under or through you shall
      have
      any right, title, interest, or privilege in or to any shares of Common Stock
      allocated or reserved for the purposes of this Agreement except as to such
      shares of Common Stock, if any, as shall have been issued to such person upon
      exercise of the Option or any part of it. Nothing herein shall confer upon
      you
      any right to continue in the Corporation's employ or service nor limit in any
      way the Corporation's right to terminate your employment at any time for any
      reason. 

     

    10.    Severability. In
      the
      event that any provision of this Agreement is declared to be illegal, invalid
      or
      otherwise unenforceable by a court of competent jurisdiction, such provision
      shall be reformed, if possible, to the extent necessary to render it legal,
      valid and enforceable, or otherwise deleted, and the remainder of this Agreement
      shall not be affected except to the extent necessary to reform or delete such
      illegal, invalid or unenforceable provision.

     

    11.     Binding
      Effect.
      The
      rights and obligations described in this Agreement shall inure to the benefit
      of
      and be binding upon both of us, and our respective heirs, personal
      representatives, successors and assigns.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    12.     Date
      of Grant.
      The
      Option shall be treated as having been granted to you on the date of this
      Agreement even though you may sign it at a later date.

    

    13.     Governing
      Law.
      This
      Agreement shall be governed, construed, interpreted and administered solely
      in
      accordance with the laws of the state of Florida, without regard to principles
      of conflicts of law.

    

    14.     Headings. The
      headings preceding the text of the sections hereof are inserted solely for
      convenience of reference, and shall not affect the meaning, construction or
      effect of this Agreement.

    

     

     

     

    

    
      
        	 	 	
                Very truly yours,

                 

              
	 	 	ENER1, INC.
	 	 	 	 
	 	 	
                By:

              	 
	
              	 	
                Name:

              	
                

              
	 	 	
                Its:

              	
                

              
	 	 	 	
                

              
	 	 	 	 
	AGREED AND ACCEPTED:	 	 	 
	 	 	 	 
	 

                
Ulrik
                Grape	 	 	 
	 	 	 	 

      

     

    

    
      
         

      

      
        4

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