Document:

CWABS ASSET-BACKED CERTIFICATES TRUST 2004-BC4,

                                     Issuer

                                  CWABS, INC.,
                                    Depositor
                          COUNTRYWIDE HOME LOANS, INC.,
                                     Seller
                      COUNTRYWIDE HOME LOANS SERVICING LP,
                                 Master Servicer
                                       and
                              THE BANK OF NEW YORK,
                                     Trustee
                     --------------------------------------
                         POOLING AND SERVICING AGREEMENT
                           Dated as of October 1, 2004
                     --------------------------------------
                   ASSET-BACKED CERTIFICATES, SERIES 2004-BC4

<PAGE>

<TABLE>
<CAPTION>

                                                 Table of Contents
<S>                                                                                                              <C>
ARTICLE I
DEFINITIONS.......................................................................................................3
         Section 1.01         Defined Terms.......................................................................3

ARTICLE II
CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES.....................................................56
         Section 2.01         Conveyance of Mortgage Loans.......................................................56
         Section 2.02         Acceptance of the Mortgage Loans...................................................60
         Section 2.03         Representations, Warranties and Covenants of the Master Servicer and the
                              Seller.............................................................................62
         Section 2.04         Representations and Warranties of the Depositor....................................74
         Section 2.05         Delivery of Opinion of Counsel in Connection with Substitutions and
                              Repurchases........................................................................76
         Section 2.06         Authentication and Delivery of Certificates........................................76
         Section 2.07         Covenants of the Master Servicer...................................................76

ARTICLE III
ADMINISTRATION AND SERVICING OF MORTGAGE LOANS...................................................................78
         Section 3.01         Master Servicer to Service Mortgage Loans..........................................78
         Section 3.02         Subservicing; Enforcement of the Obligations of Master Servicer....................79
         Section 3.03         Rights of the Depositor, the Seller and the Trustee in Respect of the
                              Master Servicer....................................................................80
         Section 3.04         Trustee to Act as Master Servicer..................................................80
         Section 3.05         Collection of Mortgage Loan Payments; Certificate Account; Distribution
                              Account; Seller Shortfall Interest Requirement.....................................80
         Section 3.06         Collection of Taxes, Assessments and Similar Items; Escrow Accounts................83
         Section 3.07         Access to Certain Documentation and Information Regarding the Mortgage
                              Loans..............................................................................84
         Section 3.08         Permitted Withdrawals from the Certificate Account, Distribution Account
                              and the Carryover Reserve Fund.....................................................84
         Section 3.09         [Reserved.]........................................................................86
         Section 3.10         Maintenance of Hazard Insurance....................................................86
         Section 3.11         Enforcement of Due-On-Sale Clauses; Assumption Agreements..........................87
         Section 3.12         Realization Upon Defaulted Mortgage Loans; Determination of Excess Proceeds
                              and Realized Losses; Repurchase of Certain Mortgage Loans..........................88
         Section 3.13         Trustee to Cooperate; Release of Mortgage Files....................................91
         Section 3.14         Documents, Records and Funds in Possession of Master Servicer to be Held
                              for the Trustee....................................................................92
         Section 3.15         Servicing Compensation.............................................................93
         Section 3.16         Access to Certain Documentation....................................................93
         Section 3.17         Annual Statement as to Compliance..................................................93

                                                         i

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         Section 3.18         Annual Independent Public Accountants' Servicing Statement; Financial
                              Statements.........................................................................94
         Section 3.19         The Corridor Contracts.............................................................94
         Section 3.20         Prepayment Charges.................................................................95

ARTICLE IV
DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER................................................................97
         Section 4.01         Advances...........................................................................97
         Section 4.02         Reduction of Servicing Compensation in Connection with Prepayment Interest
                              Shortfalls.........................................................................98
         Section 4.03         [Reserved].........................................................................98
         Section 4.04         Distributions......................................................................98
         Section 4.05         Monthly Statements to Certificateholders..........................................105
         Section 4.06         [Reserved]........................................................................108
         Section 4.07         [Reserved]........................................................................108
         Section 4.08         Carryover Reserve Fund............................................................108
         Section 4.09         Distributions on the REMIC I Regular Interests....................................108
         Section 4.10         [Reserved]........................................................................110
         Section 4.11         Allocation of Realized Losses on the REMIC I Regular Interests....................110
         Section 4.12         The Class P Certificates..........................................................112

ARTICLE V
THE CERTIFICATES................................................................................................113
         Section 5.01         The Certificates..................................................................113
         Section 5.02         Certificate Register; Registration of Transfer and Exchange of Certificates.......114
         Section 5.03         Mutilated, Destroyed, Lost or Stolen Certificates.................................117
         Section 5.04         Persons Deemed Owners.............................................................118
         Section 5.05         Access to List of Certificateholders' Names and Addresses.........................118
         Section 5.06         Book-Entry Certificates...........................................................118
         Section 5.07         Notices to Depository.............................................................119
         Section 5.08         Definitive Certificates...........................................................119
         Section 5.09         Maintenance of Office or Agency...................................................120

ARTICLE VI
THE DEPOSITOR, THE MASTER SERVICER AND THE SELLER...............................................................121
         Section 6.01         Respective Liabilities of the Depositor, the Master Servicer and the Seller.......121
         Section 6.02         Merger or Consolidation of the Depositor, the Master Servicer or the Seller.......121
         Section 6.03         Limitation on Liability of the Depositor, the Seller, the Master Servicer
                              and Others........................................................................121
         Section 6.04         Limitation on Resignation of Master Servicer......................................122
         Section 6.05         Errors and Omissions Insurance; Fidelity Bonds....................................122

                                                        ii

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ARTICLE VII
DEFAULT; TERMINATION OF MASTER SERVICER.........................................................................123
         Section 7.01         Events of Default.................................................................123
         Section 7.02         Trustee to Act; Appointment of Successor..........................................124
         Section 7.03         Notification to Certificateholders................................................126

ARTICLE VIII
CONCERNING THE TRUSTEE..........................................................................................127
         Section 8.01         Duties of Trustee.................................................................127
         Section 8.02         Certain Matters Affecting the Trustee.............................................128
         Section 8.03         Trustee Not Liable for Mortgage Loans.............................................129
         Section 8.04         Trustee May Own Certificates......................................................129
         Section 8.05         Master Servicer to Pay Trustee's Fees and Expenses................................129
         Section 8.06         Eligibility Requirements for Trustee..............................................130
         Section 8.07         Resignation and Removal of Trustee................................................130
         Section 8.08         Successor Trustee.................................................................131
         Section 8.09         Merger or Consolidation of Trustee................................................131
         Section 8.10         Appointment of Co-Trustee or Separate Trustee.....................................132
         Section 8.11         Tax Matters.......................................................................133

ARTICLE IX
TERMINATION.....................................................................................................136
         Section 9.01         Termination upon Liquidation or Repurchase of all Mortgage Loans..................136
         Section 9.02         Final Distribution on the Certificates............................................136
         Section 9.03         Additional Termination Requirements...............................................138

ARTICLE X
MISCELLANEOUS PROVISIONS........................................................................................139
         Section 10.01        Amendment.........................................................................139
         Section 10.02        Recordation of Agreement; Counterparts............................................140
         Section 10.03        Governing Law.....................................................................140
         Section 10.04        Intention of Parties..............................................................141
         Section 10.05        Notices...........................................................................141
         Section 10.06        Severability of Provisions........................................................142
         Section 10.07        Assignment........................................................................142
         Section 10.08        Limitation on Rights of Certificateholders........................................142
         Section 10.09        Inspection and Audit Rights.......................................................143
         Section 10.10        Certificates Nonassessable and Fully Paid.........................................143
</TABLE>

<TABLE>
<CAPTION>
EXHIBITS

<S>                        <C>
EXHIBIT A-1.......         Form of Class 1-A Certificate
EXHIBIT A-2.......         Form of Class 2-A Certificate
EXHIBIT A-3.......         Form of Class M-1 Certificate
EXHIBIT A-4.......         Form of Class M-2 Certificate
EXHIBIT A-5                Form of Class M-3 Certificate

                                      iii

<PAGE>

EXHIBIT A-6                Form of Class M-4 Certificate
EXHIBIT A-7                Form of Class M-5 Certificate
EXHIBIT A-8                Form of Class M-6 Certificate
EXHIBIT A-9                Form of Class M-7 Certificate
EXHIBIT A-10               Form of Class M-8 Certificate
EXHIBIT A-11               Form of Class B Certificate
EXHIBIT B                  Form of Class C Certificate
EXHIBIT C                  Form of Class P Certificate
EXHIBIT D                  Form of Class A-R Certificate
EXHIBIT E                  Form of Tax Matters Person Certificate
EXHIBIT F                  Mortgage Loan Schedules
EXHIBIT F-1                List of Mortgage Loans
EXHIBIT F-2                Mortgage Loans for which All or a Portion of a
                           Related Mortgage File is not Delivered to the Trustee
                           on or prior to the Closing Date
EXHIBIT G                  Forms of Certification of Trustee
EXHIBIT G-1                Form of Initial Certification of Trustee
EXHIBIT G-2                Form of Interim Certification of Trustee
EXHIBIT G-3                Form of Delay Delivery Certification
EXHIBIT G-4                [Reserved]
EXHIBIT H                  Form of Final Certification of Trustee
EXHIBIT I                  Transfer Affidavit
EXHIBIT J-1                Form of Transferor Certificate for Class A-R Certificates
EXHIBIT J-2                Form of Transferor Certificate for Private Certificates
EXHIBIT K                  Form of Investment Letter (Non-Rule 144A)
EXHIBIT L                  Form of Rule 144A Letter
EXHIBIT M                  Request for Release (for Trustee)
EXHIBIT N                  Request for Release (for Mortgage Loans Paid in Full, Repurchased or Replaced)
EXHIBIT O                  Copy of Depositary Agreement
EXHIBIT P                  Form of Mortgage Note and Mortgage
EXHIBIT Q                  [reserved]
EXHIBIT R                  Form of Corridor Contract
EXHIBIT S                  Form of Corridor Contract Novation Agreement
EXHIBIT T                  Officer's Certificate with Respect to Prepayments
EXHIBIT U                  Standard & Poor's Predatory Lending Categorization
</TABLE>

                                                        iv

<PAGE>

         POOLING AND SERVICING AGREEMENT, dated as of October 1, 2004, by and
among CWABS, INC., a Delaware corporation, as depositor (the "Depositor"),
COUNTRYWIDE HOME LOANS, INC., a New York corporation, as seller (the "Seller"),
COUNTRYWIDE HOME LOANS SERVICING LP, a Texas limited partnership, as master
servicer (the "Master Servicer"), and THE BANK OF NEW YORK, a New York banking
corporation, as trustee (the "Trustee").

                             PRELIMINARY STATEMENT:

         The Depositor intends to sell mortgage asset-backed pass-through
certificates (collectively, the "Certificates"), to be issued hereunder in
twelve classes, which in the aggregate will evidence the entire beneficial
ownership interest in the Mortgage Loans (as defined herein).

                                     REMIC I

         As provided herein, the Trustee will make an election to treat the
segregated pool of assets consisting of the Mortgage Loans and certain other
related assets (exclusive of the Corridor Contracts and the Carryover Reserve
Fund) subject to this Agreement as a real estate mortgage investment conduit (a
"REMIC") for federal income tax purposes, and such segregated pool of assets
will be designated as "REMIC I." The Class R-I Interest will represent the sole
class of "residual interests" in REMIC I for purposes of the REMIC Provisions
(as defined herein) under federal income tax law. The following table
irrevocably sets forth the designation, remittance rate (the "Uncertificated
REMIC I Pass-Through Rate") and initial Uncertificated Principal Balance for
each of the "regular interests" in REMIC I (the "REMIC I Regular Interests").
The "latest possible maturity date" (determined solely for purposes of
satisfying Treasury regulation Section 1.860G-1(a)(4)(iii)) for each REMIC I
Regular Interest shall be the 360th Distribution Date. None of the REMIC I
Regular Interests will be certificated.

<TABLE>
<CAPTION>

                             Uncertificated REMIC I        Uncertificated Principal      Latest Possible Maturity
      Designation               Pass-Through Rate                   Balance                        Date
      -----------               -----------------                   -------                        ----
<S>   <C>                      <C>                             <C>                             <C>
         LT-AA                         (1)                                       $
         LT-1A1                        (1)                                       $
         LT-1A2                        (1)                                       $
         LT-2A1                        (1)                                       $
         LT-2A2                        (1)                                       $
         LT-2A3                        (1)                                       $
         LT-M1                         (1)                                       $
         LT-M2                         (1)                                       $
         LT-M3                         (1)                                       $
         LT-M4                         (1)                                       $
         LT-M5                         (1)                                       $
         LT-M6                         (1)                                       $
         LT-M7                         (1)                                       $
         LT-M8                         (1)                                       $

                                       1
<PAGE>

          LT-B                         (1)                                       $
         LT-ZZ                         (1)                                       $
          LT-P                         (1)                                 $100.00
          LT-R                         (1)                                 $100.00
        LT-1SUB                        (1)                                       $
        LT-1GRP                        (1)                                       $
        LT-2SUB                        (1)                                       $
        LT-2GRP                        (1)                                       $
         LT-XX                         (1)                                       $
</TABLE>

(1) Calculated as provided in the definition of Uncertificated REMIC I Pass-
Through Rate.

                                    REMIC II

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the REMIC I Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
REMIC II. The Class R-II Interest will represent the sole class of "residual
interests" in REMIC II for purposes of the REMIC Provisions under federal income
tax law. The following table irrevocably sets forth the designation,
Pass-Through Rate, aggregate Initial Certificate Principal Balance and Final
Scheduled Distribution Date for each Class of Certificates comprising the
interests representing "regular interests" in REMIC II. The "latest possible
maturity date" (determined solely for purposes of satisfying Treasury Regulation
Section 1.860G-1(a)(4)(iii)) for each Class of REMIC II Regular Certificates
shall be the 360th Distribution Date.
<TABLE>
<CAPTION>

                                                      Aggregate Initial Certificate          Final Scheduled
      Designation            Pass-Through Rate              Principal Balance               Distribution Date
<S>   <C>                    <C>                           <C>                             <C>
      Class 1-A-1                   (1)                       $564,755,000.00                 January 2035
      Class 1-A-2                   (1)                       $ 56,475,000.00                 January 2035
      Class 2-A-1                   (1)                       $ 73,107,000.00                  July 2021
      Class 2-A-2                   (1)                       $113,646,000.00                 October 2032
      Class 2-A-3                   (1)                       $ 31,517,000.00                 January 2035
       Class M-1                    (1)                       $ 45,500,000.00                November 2034
       Class M-2                    (1)                       $ 22,500,000.00                 October 2034
       Class M-3                    (1)                       $ 11,500,000.00                September 2034
       Class M-4                    (1)                       $ 12,000,000.00                September 2034
       Class M-5                    (1)                       $ 11,500,000.00                 August 2034
       Class M-6                    (1)                       $ 10,000,000.00                  July 2034
       Class M-7                    (1)                       $ 12,500,000.00                   May 2034
       Class M-8                    (1)                       $  7,500,000.00                  March 2034
        Class B                     (1)                       $  7,500,000.00                December 2033
        Class C                     (2)                                 $0.00                November 2034

                                       2
<PAGE>

        Class P                     (3)                        $       100.00               November 2034
---------------
</TABLE>
(1)      Interest will accrue at a rate equal to the Pass-Through Rate, as
         defined herein.
(2)      The Class C Certificates will accrue interest at its variable
         Pass-Through Rate on the Notional Amount of the Class C Certificates
         outstanding from time to time which shall equal the Uncertificated
         Principal Balance of the REMIC I Regular Interests (other than REMIC I
         Regular Interest LT-P and REMIC I Regular Interest LT-R). The Class C
         Certificates will not accrue interest on its Certificate Principal
         Balance.
(3)      The Class P Certificates will not be entitled to distributions of
         interest.

                                   ARTICLE I

                                   DEFINITIONS

         Section 1.01 Defined Terms.

         In addition to those defined terms defined in Section 1.02, whenever
used in this Agreement, the following words and phrases, unless the context
otherwise requires, shall have the following meanings:

         Accrual Period: With respect to any Distribution Date and the
Certificates (other than the Class A-R, Class P and Class C Certificates), the
period from and including the immediately preceding Distribution Date (or, in
the case of the first Distribution Date, from and including the Closing Date)
and to and including the day immediately preceding the current Distribution
Date. With respect to any Distribution Date and the Class C Certificates, the
calendar month preceding the month in which such Distribution Date occurs. All
calculations of interest on the Certificates (other than the Class A-R, Class P
and Class C Certificates) will be made on the basis of the actual number of days
elapsed in the related Accrual Period and on a 360-day year. All calculations of
interest on the Class C Certificates will be made on the basis of a 360-day year
consisting of twelve 30-day months. The Class A-R Certificates and Class P
Certificates will not accrue any interest and therefore have no Accrual Period.

         Adjustable Rate Mortgage Loans: The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is adjustable for the
life of the related Mortgage, including any Mortgage Loans delivered in
replacement thereof.

         Adjusted Net Mortgage Rate: As to each Mortgage Loan, the Mortgage Rate
less the Expense Fee Rate.

         Adjustment Date: As to each Adjustable Rate Mortgage Loan, each date on
which the related Mortgage Rate is subject to adjustment, as provided in the
related Mortgage Note.

         Advance: The aggregate of the advances required to be made by the
Master Servicer with respect to any Distribution Date pursuant to Section 4.01,
the amount of any such advances being equal to the sum of (A) the aggregate of
payments of principal and interest (net of the Servicing Fees) on the Mortgage
Loans that were due on the related Due Date and not received by the Master
Servicer as of the close of business on the related Determination Date and (B)
with

                                        3

<PAGE>

respect to each REO Property that has not been liquidated, an amount equal
to the excess, if any, of (x) one month's interest (adjusted to the Net Mortgage
Rate) on the Stated Principal Balance of the related Mortgage Loan over (y) the
net monthly rental income (if any) from such REO Property deposited in the
Certificate Account for such Distribution Date pursuant to Section 3.12, less
the aggregate amount of any such delinquent payments that the Master Servicer
has determined would constitute a Nonrecoverable Advance were an advance to be
made with respect thereto.

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

         Amount Held for Future Distribution: As to any Distribution Date, the
aggregate amount held in the Certificate Account at the close of business on the
related Determination Date on account of (i) all Scheduled Payments or portions
thereof received in respect of the Mortgage Loans due after the related Due Date
and (ii) Principal Prepayments and Liquidation Proceeds received in respect of
such Mortgage Loans after the last day of the related Prepayment Period or Due
Period, respectively.

         Applied Realized Loss Amount: With respect to any Distribution Date,
the sum of the Realized Losses with respect to the Mortgage Loans which shall
equal the amount, if any, by which, Certificate Principal Balance of all
Certificates (after all distributions of principal on such Distribution Date)
exceeds the Stated Principal Balance of the Mortgage Loans for such Distribution
Date, and which are to be applied as provided in Section 4.04 of this Agreement.

         Appraised Value: The appraised value of the Mortgaged Property based
upon the appraisal made for the Seller by a fee appraiser at the time of the
origination of the related Mortgage Loan, or the sales price of the Mortgaged
Property at the time of such origination, whichever is less, or with respect to
any Mortgage Loan originated in connection with a refinancing, the appraised
value of the Mortgaged Property based upon the appraisal made at the time of
such refinancing.

         Bankruptcy Code:  Title 11 of the United States Code.

         Book-Entry Certificates: Any of the Certificates that shall be
registered in the name of the Depository or its nominee, the ownership of which
is reflected on the books of the Depository or on the books of a person
maintaining an account with the Depository (directly, as a "Depository
Participant", or indirectly, as an indirect participant in accordance with the
rules of the Depository and as described in Section 5.06). As of the Closing
Date, each Class of Class A Certificates and Subordinate Certificates
constitutes a Class of Book-Entry Certificates.

         Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which banking institutions in the State of California, City of New York,
New York or the city in which the Corporate Trust Office of the Trustee is
located are authorized or obligated by law or executive order to be closed.

                                       4
<PAGE>

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

         Carryover Reserve Fund: The separate Eligible Account created and
initially maintained by the Trustee pursuant to Section 4.08 in the name of the
Trustee for the benefit of the Certificateholders and designated "The Bank of
New York in trust for registered holders of CWABS, Inc., Asset-Backed
Certificates, Series 2004-BC4". Funds in the Carryover Reserve Fund shall be
held in trust for the Certificateholders for the uses and purposes set forth in
this Agreement and shall not be a part of any REMIC created under this
Agreement.

         Certificate: Any one of the certificates of any Class executed and
authenticated by the Trustee in substantially the forms attached hereto as
Exhibits A-1 through A-11, Exhibit B, Exhibit C and Exhibit D.

         Certificate Account: The separate Eligible Account created and
initially maintained by the Master Servicer pursuant to Section 3.05(b) with a
depository institution in the name of the Master Servicer for the benefit of the
Trustee on behalf of the Certificateholders and designated "Countrywide Home
Loans Servicing LP in trust for registered holders of CWABS, Inc., Asset-Backed
Certificates, Series 2004-BC4". Funds in the Certificate Account shall be held
in trust for the Certificateholders for the uses and purposes set forth in this
Agreement.

         Certificate Account Deposit: An amount equal to the aggregate of all
amounts in respect of (i) principal of the Mortgage Loans due on or after the
Cut-off Date and received by the Master Servicer before the Closing Date and not
applied in computing the Cut-off Date Principal Balance thereof, and (ii)
interest on the Mortgage Loans due on and after the Cut-off Date and received by
the Master Servicer before the Closing Date.

         Certificate Group: Any of the Group 1 Certificates or Group 2
Certificates.

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

         Certificate Principal Balance: As to any Certificate (other than the
Class C Certificates) and as of any Distribution Date, the Initial Certificate
Principal Balance of such Certificate less the sum of (i) all amounts
distributed with respect to such Certificate in reduction of the Certificate
Principal Balance thereof on previous Distribution Dates pursuant to Section
4.04, and (ii) in the case of any Subordinate Certificate and the Class 1-A-2
Certificates any Applied Realized Loss Amounts allocated to such Certificate on
previous Distribution Dates pursuant to Section 4.04; provided that first, the
Certificate Principal Balance of the Class 1-A-2 Certificates and second, the
Class of Subordinate Certificates with the highest payment priority to which
Realized Losses have been allocated will be increased by the amount of any
Subsequent Recoveries on the Mortgage Loans not previously allocated, but not by
more than the amount of Realized Losses previously allocated to reduce the
Certificate Principal Balance of that Class. As to any Class C Certificate and
as of any Distribution Date, an amount equal to the excess, if any, of (i) the
aggregate Stated Principal Balance of the Mortgage Loans over (ii) the aggregate
Certificate Principal Balance of the Offered Certificates. References herein to
the Certificate

                                       5
<PAGE>

Principal Balance of a Class of Certificates shall mean the Certificate
Principal Balances of all Certificates in such Class.

         Certificate Register: The register maintained pursuant to Section 5.02
hereof.

         Certificateholder or Holder: The person in whose name a Certificate is
registered in the Certificate Register (initially, Cede & Co., as nominee for
the Depository, in the case of any Class of Regular Certificates, except that
solely for the purpose of giving any consent pursuant to this Agreement, any
Certificate registered in the name of the Depositor or any affiliate of the
Depositor shall be deemed not to be Outstanding and the Voting Interest
evidenced thereby shall not be taken into account in determining whether the
requisite amount of Voting Interests necessary to effect such consent has been
obtained; provided that if any such Person (including the Depositor) owns 100%
of the Voting Interests evidenced by a Class of Certificates, such Certificates
shall be deemed to be Outstanding for purposes of any provision hereof (other
than the second sentence of Section 10.01 hereof) that requires the consent of
the Holders of Certificates of a particular Class as a condition to the taking
of any action hereunder. The Trustee is entitled to rely conclusively on a
certification of the Depositor or any affiliate of the Depositor in determining
which Certificates are registered in the name of an affiliate of the Depositor.

         Class: All Certificates bearing the same Class designation as set forth
in Section 5.01 hereof.

         Class A Principal Distribution Target Amount: For any Distribution
Date, the excess of (i) the aggregate Certificate Principal Balance of the Class
1-A Certificates and Class 2-A Certificates immediately prior to such
Distribution Date, over (ii) the lesser of (x) 67.90% of the aggregate Stated
Principal Balance of the Mortgage Loans for such Distribution Date after giving
effect to distributions to be made on that Distribution Date and (y) the
aggregate Stated Principal Balance of the Mortgage Loans for such Distribution
Date after giving effect to distributions to be made on that Distribution Date
minus the OC Floor; provided however, that if the aggregate Certificate
Principal Balance of the Subordinated Certificates has been reduced to zero, the
Class A Principal Distribution Target Amount shall equal the sum of the Class
1-A and Class 2-A Principal Distribution Target Amounts.

         Class 1-A Corridor Contract: The transaction evidenced by the
Confirmation and Agreement for the benefit of the Class 1-A Certificateholders
(as assigned to the Trustee pursuant to the Class 1-A Corridor Contract Novation
Agreement), a form of which is attached hereto as Exhibit R.

         Class 1-A Corridor Contract Novation Agreement: The Novation Agreement
regarding the Class 1-A Corridor Contract dated as of the Closing Date among the
Seller, the Trustee and the Corridor Contract Counterparty, which is attached
hereto as Exhibit S.

         Class 1-A Corridor Contract Payment Amount: The amount, if any,
received by the Trustee for the benefit of the Trust Fund in respect of the
Class 1-A Corridor Contract.

                                       6
<PAGE>

         Class 1-A Corridor Contract Termination Date: The Distribution Date in
November 2011.

         Class 1-A Confirmation and Agreement: The Confirmation and Agreement
dated October 13, 2004, reference number FXNEC6365, evidencing the Class 1-A
Corridor Contract.

         Class 1-A Certificate: Any Certificate designated as a "Class 1-A
Certificate" on the face thereof, in the form of Exhibit A-1 hereto,
representing the right to distributions as set forth herein.

         Class 1-A-1 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class 1-A-1
Certificates.

         Class 1-A-2 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class 1-A-2
Certificates.

         Class 1-A-1 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class 1-A-1 Pass-Through Rate
on the Class 1-A-1 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class 1-A-2 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class 1-A-2 Pass-Through Rate
on the Class 1-A-2 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class 1-A-1 Interest Carry Forward Amount: For any Distribution Date,
the excess of (a) the Class 1-A-1 Current Interest with respect to prior
Distribution Dates over (b) the amount actually distributed to the Class 1-A-1
Certificates with respect to interest on such prior Distribution Dates.

         Class 1-A-2 Interest Carry Forward Amount: For any Distribution Date,
the excess of (a) the Class 1-A-2 Current Interest with respect to prior
Distribution Dates over (b) the amount actually distributed to the Class 1-A-2
Certificates with respect to interest on such prior Distribution Dates.

         Class 1-A-1 Interest Carryover Amount: For any Distribution Date and
the Class 1-A-1 Certificates, the sum of (A) the excess of (i) the amount of
interest the Class 1-A-1 Certificates would otherwise have accrued for such
Distribution Date had the Class 1-A-1 Pass-Through Rate thereon been calculated
as the sum of One-Month LIBOR and the applicable Class 1-A-1 Margin for such
Distribution Date, over (ii) the amount of interest accrued on the Class 1-A-1
Certificates at the Net Rate Cap for such Distribution Date and (B) the Class
1-A-1 Interest Carryover Amount for all previous Distribution Dates not
previously paid pursuant to Section 4.04, together with interest thereon at the
Class 1-A-1 Pass-Through Rate (without giving effect to the Net Rate Cap).

         Class 1-A-2 Interest Carryover Amount: For any Distribution Date and
the Class 1-A-2 Certificates, the sum of (A) the excess of (i) the amount of
interest the Class 1-A-2 Certificates would otherwise have accrued for such
Distribution Date had the Class 1-A-2 Pass-Through Rate thereon been calculated
as the sum of One-Month LIBOR and the applicable Class 1-A-2 Margin

                                       7
<PAGE>

for such Distribution Date, over (ii) the amount of interest accrued on the
Class 1-A-2 Certificates at the Net Rate Cap for such Distribution Date and (B)
the Class 1-A-2 Interest Carryover Amount for all previous Distribution Dates
not previously paid pursuant to Section 4.04, together with interest thereon at
the Class 1-A-2 Pass-Through Rate (without giving effect to the Net Rate Cap).

         Class 1-A-1 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 0.350% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 0.700% per
annum.

         Class 1-A-2 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 0.420% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 0.840% per
annum.

         Class 1-A-1 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class 1-A-1 Margin and (ii) the related Net Rate
Cap for such Distribution Date.

         Class 1-A-2 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class 1-A-2 Margin and (ii) the related Net Rate
Cap for such Distribution Date.

         Class 1-A Principal Distribution Amount: For any Distribution Date, the
product of (a) the Class A Principal Distribution Target Amount and (b) a
fraction, the numerator of which is the Class 1-A Principal Distribution Target
Amount and the denominator of which is the sum of the Class 1-A Principal
Distribution Target Amount and Class 2-A Principal Distribution Target Amount.

         Class 1-A Principal Distribution Target Amount: For any Distribution
Date, the excess of:

                  (i) the aggregate Certificate Principal Balance of the Class
         1-A-1 Certificates and Class 1-A-2 Certificates immediately prior to
         such Distribution Date, over

                  (ii) the lesser of (x) 67.90% of the aggregate Stated
         Principal Balance of the Mortgage Loans in Loan Group 1 for such
         Distribution Date after giving effect to distributions to be made on
         that Distribution Date and (y) the aggregate Stated Principal Balance
         of the Mortgage Loans in Loan Group 1 for such Distribution Date after
         giving effect to distributions to be made on that Distribution Date
         minus 0.50% of the aggregate Stated Principal Balance of the Mortgage
         Loans in Loan Group 1 as of the Cut-off Date.

         Class 2-A Corridor Contract: The transaction evidenced by the
Confirmation and Agreement for the benefit of the Class 2-A Certificateholders
(as assigned to the Trustee pursuant to the Class 2-A Corridor Contract Novation
Agreement), a form of which is attached hereto as Exhibit S.

         Class 2-A Corridor Contract Novation Agreement: The Novation Agreement
regarding the Class 2-A Corridor Contract dated as of the Closing Date among the
Seller, the Trustee and the Corridor Contract Counterparty, which is attached
hereto as Exhibit S.

                                       8
<PAGE>

         Class 2-A Corridor Contract Payment Amount: The amount, if any,
received by the Trustee for the benefit of the Trust Fund in respect of the
Class 2-A Corridor Contract.

         Class 2-A Corridor Contract Termination Date: The Distribution Date in
November 2011.

         Class 2-A Confirmation and Agreement: The Confirmation and Agreement
dated October 13, 2004, reference number FXNEC6367, evidencing the Class 2-A
Corridor Contract.

         Class 2-A-1 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class 2-A-1
Certificates.

         Class 2-A-2 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class 2-A-2
Certificates.

         Class 2-A-3 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class 2-A-3
Certificates.

         Class 2-A-1 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class 2-A-1 Pass-Through Rate
on the Class 2-A-1 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class 2-A-2 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class 2-A-2 Pass-Through Rate
on the Class 2-A-2 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class 2-A-3 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class 2-A-3 Pass-Through Rate
on the Class 2-A-3 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class 2-A-1 Interest Carry Forward Amount: For any Distribution Date,
the excess of (a) the Class 2-A-1 Current Interest with respect to prior
Distribution Dates over (b) the amount actually distributed to the Class 2-A-1
Certificates with respect to interest on such prior Distribution Dates.

         Class 2-A-2 Interest Carry Forward Amount: For any Distribution Date,
the excess of (a) the Class 2-A-2 Current Interest with respect to prior
Distribution Dates over (b) the amount actually distributed to the Class 2-A-2
Certificates with respect to interest on such prior Distribution Dates.

         Class 2-A-3 Interest Carry Forward Amount: For any Distribution Date,
the excess of (a) the Class 2-A-3 Current Interest with respect to prior
Distribution Dates over (b) the amount actually distributed to the Class 2-A-3
Certificates with respect to interest on such prior Distribution Dates.

         Class 2-A-1 Interest Carryover Amount: For any Distribution Date and
the Class 2-A-1 Certificates, the sum of (A) the excess of (i) the amount of
interest the Class 2-A-1 Certificates would otherwise have accrued for such
Distribution Date had the Class 2-A-1 Pass-Through Rate

                                       9
<PAGE>

thereon been calculated as the sum of One-Month LIBOR and the applicable Class
2-A-1 Margin for such Distribution Date, over (ii) the amount of interest
accrued on the Class 2-A-1 Certificates at the Net Rate Cap for such
Distribution Date and (B) the Class 2-A-1 Interest Carryover Amount for all
previous Distribution Dates not previously paid pursuant to Section 4.04,
together with interest thereon at the Class 2-A-1 Pass-Through Rate (without
giving effect to the Net Rate Cap).

         Class 2-A-2 Interest Carryover Amount: For any Distribution Date and
the Class 2-A-2 Certificates, the sum of (A) the excess of (i) the amount of
interest the Class 2-A-2 Certificates would otherwise have accrued for such
Distribution Date had the Class 2-A-2 Pass-Through Rate thereon been calculated
as the sum of One-Month LIBOR and the applicable Class 2-A-2 Margin for such
Distribution Date, over (ii) the amount of interest accrued on the Class 2-A-2
Certificates at the Net Rate Cap for such Distribution Date and (B) the Class
2-A-2 Interest Carryover Amount for all previous Distribution Dates not
previously paid pursuant to Section 4.04, together with interest thereon at the
Class 2-A-2 Pass-Through Rate (without giving effect to the Net Rate Cap).

         Class 2-A-3 Interest Carryover Amount: For any Distribution Date and
the Class 2-A-3 Certificates, the sum of (A) the excess of (i) the amount of
interest the Class 2-A-3 Certificates would otherwise have accrued for such
Distribution Date had the Class 2-A-3 Pass-Through Rate thereon been calculated
as the sum of One-Month LIBOR and the applicable Class 2-A-3 Margin for such
Distribution Date, over (ii) the amount of interest accrued on the Class 2-A-3
Certificates at the Net Rate Cap for such Distribution Date and (B) the Class
2-A-3 Interest Carryover Amount for all previous Distribution Dates not
previously paid pursuant to Section 4.04, together with interest thereon at the
Class 2-A-3 Pass-Through Rate (without giving effect to the Net Rate Cap).

         Class 2-A-1 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 0.180% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 0.360% per
annum.

         Class 2-A-2 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 0.370% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 0.740% per
annum.

         Class 2-A-3 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 0.520% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 1.040% per
annum.

         Class 2-A-1 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class 2-A-1 Margin and (ii) the related Net Rate
Cap for such Distribution Date.

         Class 2-A-2 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class 2-A-2 Margin and (ii) the related Net Rate
Cap for such Distribution Date.

         Class 2-A-3 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class 2-A-3 Margin and (ii) the related Net Rate
Cap for such Distribution Date.

                                       10
<PAGE>

         Class 2-A Principal Distribution Amount: For any Distribution Date, the
product of (a) the Class A Principal Distribution Target Amount and (b) a
fraction, the numerator of which is the Class 2-A Principal Distribution Target
Amount and the denominator of which is the sum of the Class 1-A Principal
Distribution Target Amount and Class 2-A Principal Distribution Target Amount.

         Class 2-A Principal Distribution Target Amount: For any Distribution
Date, the excess of:

                  (i) the aggregate Certificate Principal Balance of the Class
         2-A-1, Class 2-A-2 and Class 2-A-3 Certificates immediately prior to
         such Distribution Date, over

                  (ii) the lesser of (x) 67.90% of the aggregate Stated
         Principal Balance of the Mortgage Loans in Loan Group 2 for such
         Distribution Date after giving effect to distributions to be made on
         that Distribution Date and (y) the aggregate Stated Principal Balance
         of the Mortgage Loans in Loan Group 2 for such Distribution Date after
         giving effect to distributions to be made on that Distribution Date
         minus 0.50% of the aggregate Stated Principal Balance of the Mortgage
         Loans in Loan Group 2 as of the Cut-off Date.

         Class A-R Certificate: Any one of the Class A-R Certificates executed
by the Trustee substantially in the form annexed hereto as Exhibit D, composed
of the Class R-I Interest and Class R-II Interest.

         Class A-R Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class A-R Certificates.

         Class A-R Principal Distribution Amount: With respect to any
Distribution Date, the excess, if any, of (A) $100 over (B) all amounts
distributed with respect to such Certificate in reduction of the Certificate
Principal Balance thereof on previous Distribution Dates pursuant to Section
4.04.

         Class B Certificate: Any Certificate designated as a "Class B
Certificate" on the face thereof, in the form of Exhibit A-8 hereto,
representing the right to distributions as set forth herein.

         Class B Certificate Principal Balance: As of any date of determination,
the Certificate Principal Balance of the Class B Certificates.

         Class B Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class B Pass-Through Rate on
the Class B Certificate Principal Balance immediately prior to such Distribution
Date.

         Class B Interest Carry Forward Amount: For any Distribution Date, the
excess of (a) the Class B Current Interest with respect to prior Distribution
Dates over (b) the amount actually distributed to the Class B Certificates with
respect to interest on such prior Distribution Dates.

         Class B Interest Carryover Amount: For any Distribution Date and the
Class B Certificates, the sum of (A) the excess of (i) the amount of interest
the Class B Certificates would

                                       11
<PAGE>

otherwise have accrued for such Distribution Date had the Class B Pass-Through
Rate thereon been calculated as the sum of One-Month LIBOR and the applicable
Class B Margin for such Distribution Date, over (ii) the amount of interest
accrued on the Class B Certificates at the Net Rate Cap for such Distribution
Date and (B) the Class B Interest Carryover Amount for all previous Distribution
Dates not previously paid pursuant to Section 4.04, together with interest
thereon at the Class B Pass-Through Rate (without giving effect to the Net Rate
Cap).

         Class B Margin: For the Accrual Period for any Distribution Date on or
prior to the Optional Termination Date, 3.000% per annum and, for any
Distribution Date after the Optional Termination Date, 4.500% per annum.

         Class B Pass-Through Rate: For any Distribution Date, the lesser of (i)
One-Month LIBOR plus the Class B Margin and (ii) the related Net Rate Cap for
such Distribution Date.

         Class B Principal Distribution Amount: With respect to any Distribution
Date, the excess of (i) the sum of: (A) the aggregate Certificate Principal
Balance of the Senior Certificates (after taking into account distributions of
the Class 1-A Principal Distribution Amount and Class 2-A Principal Distribution
Amount for such Distribution Date), (B) the Class M-1 Certificate Principal
Balance (after taking into account distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (C) the Class M-2 Certificate
Principal Balance (after taking into account distribution of the Class M-2
Principal Distribution Amount on such Distribution Date), (D) the Class M-3
Certificate Principal Balance (after taking into account distribution of the
Class M-3 Principal Distribution Amount on such Distribution Date), (E) the
Class M-4 Certificate Principal Balance (after taking into account distribution
of the Class M-4 Principal Distribution Amount on such Distribution Date), (F)
the Class M-5 Certificate Principal Balance (after taking into account
distribution of the Class M-5 Principal Distribution Amount on such Distribution
Date); (G) the Class M-6 Certificate Principal Balance (after taking into
account distribution of the Class M-6 Principal Distribution Amount on such
Distribution Date); (H) the Class M-7 Certificate Principal Balance (after
taking into account distribution of the Class M-7 Principal Distribution Amount
on such Distribution Date); (I) the Class M-8 Certificate Principal Balance
(after taking into account distribution of the Class M-8 Principal Distribution
Amount on such Distribution Date) and (J) the Class B Certificate Principal
Balance immediately prior to such Distribution Date over (ii) the lesser of (x)
96.00% of the aggregate Stated Principal Balances of the Mortgage Loans for such
Distribution Date after giving effect to distributions to be made on that
Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage
Loans for such Distribution Date after giving effect to distributions to be made
on that Distribution Date minus the OC Floor; provided, however, that after the
Certificate Principal Balance of each other Class of Offered Certificates is
reduced to zero, the Class B Principal Distribution Amount for such Distribution
Date will equal 100% of the Principal Distribution Amount for such Distribution
Date.

         Class C Certificate: Any Certificate designated as a "Class C
Certificate" on the face thereof, in the form of Exhibit B hereto, representing
the right to distributions as set forth herein, to be issued initially to
Countrywide Securities Holding Inc.

         Class C Current Interest: For any Distribution Date, the interest
accrued on the Class C Notional Amount during the related Accrual Period at the
Class C Pass-Through Rate.

                                       12
<PAGE>

         Class C Notional Amount: The aggregate amount of the Uncertificated
Principal Balance of the REMIC I Regular Interests other than REMIC I Regular
Interest LT-P and REMIC I Regular Interest LT-R.

         Class C Pass-Through Rate: A rate per annum equal to the percentage
equivalent of a fraction, the numerator of which is the sum of the amounts
calculated pursuant to clauses (A) through (P) below, and the denominator of
which is the Uncertificated Principal Balance of the REMIC I Regular Interests
(other than REMIC I Regular Interest LT-P and REMIC I Regular Interest LT-R).
For purposes of calculating the Pass Through Rate for the Class C Certificates,
the numerator is equal to the sum of the following components:

                  (A) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-AA minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-AA;

                  (B) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-1A minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-1A1;

                  (C) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-1A minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-1A2;

                  (D) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-2A minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-2A1;

                  (E) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-2A minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-2A2;

                  (F) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-2A minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-2A3;

                  (G) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-M1 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-M1;

                  (H) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-M2 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-M2;

                  (I) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-M3 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-M3;

                                       13
<PAGE>

                  (J) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-M4 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-M4;

                  (K) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-M5 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-M5;

                  (L) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-M6 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-M6;

                  (M) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-M7 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-M7;

                  (N) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-M8 minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-M8;

                  (O) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-B minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-B; and

                  (P) the Uncertificated REMIC I Pass-Through Rate for REMIC I
Regular Interest LT-ZZ minus the Marker Rate, applied to an amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT-ZZ.

         Class M-1 Certificate: Any Certificate designated as a "Class M-1
Certificate" on the face thereof, in the form of Exhibit A-3 hereto,
representing the right to distributions as set forth herein.

         Class M-1 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class M-1 Certificates.

         Class M-1 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-1 Pass-Through Rate on
the Class M-1 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class M-1 Interest Carry Forward Amount: For any Distribution Date, the
excess of (a) the Class M-1 Current Interest with respect to prior Distribution
Dates over (b) the amount actually distributed to the Class M-1 Certificates
with respect to interest.

         Class M-1 Interest Carryover Amount: For any Distribution Date and the
Class M-1 Certificates, the sum of (A) the excess of (i) the amount of interest
the Class M-1 Certificates would otherwise have accrued for such Distribution
Date had the Class M-1 Pass-Through Rate thereon been calculated as the sum of
One-Month LIBOR and the applicable Class M-1 Margin for such Distribution Date,
over (ii) the amount of interest accrued on the Class M-1 Certificates

                                       14
<PAGE>

at the Net Rate Cap for such Distribution Date and (B) the Class M-1 Interest
Carryover Amount for all previous Distribution Dates not previously paid
pursuant to Section 4.04, together with interest thereon at the Class M-1
Pass-Through Rate (without giving effect to the Net Rate Cap).

         Class M-1 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 0.700% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 1.050% per
annum.

         Class M-1 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class M-1 Margin and (ii) the related Net Rate Cap
for such Distribution Date.

         Class M-1 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of (A) the aggregate Certificate
Principal Balance of the Senior Certificates (after taking into account
distribution of the Class 1-A Principal Distribution Amount and Class 2-A
Principal Distribution Amounts on such Distribution Date) and (B) the Class M-1
Certificate Principal Balance immediately prior to such Distribution Date over
(ii) the lesser of (x) 77.00% of the Stated Principal Balances of the Mortgage
Loans for such Distribution Date after giving effect to distributions to be made
on that Distribution Date and (y) the aggregate Stated Principal Balance of the
Mortgage Loans for such Distribution Date after giving effect to distributions
to be made on that Distribution Date minus the OC Floor; provided, however, that
after the Certificate Principal Balance of each other Class of Offered
Certificates is reduced to zero, the Class M-1 Principal Distribution Amount for
such Distribution Date will equal 100% of the Principal Distribution Amount for
such Distribution Date.

         Class M-2 Certificate: Any Certificate designated as a "Class M-2
Certificate" on the face thereof, in the form of Exhibit A-4 hereto,
representing the right to distributions as set forth herein.

         Class M-2 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class M-2 Certificates.

         Class M-2 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-2 Pass-Through Rate on
the Class M-2 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class M-2 Interest Carry Forward Amount: For any Distribution Date, the
excess of (a) the Class M-2 Current Interest with respect to prior Distribution
Dates over (b) the amount actually distributed to the Class M-2 Certificates
with respect to interest on such prior Distribution Dates.

         Class M-2 Interest Carryover Amount: For any Distribution Date and the
Class M-2 Certificates, the sum of (A) the excess of (i) the amount of interest
the Class M-2 Certificates would otherwise have accrued for such Distribution
Date had the Class M-2 Pass-Through Rate thereon been calculated as the sum of
One-Month LIBOR and the applicable Class M-2 Margin for such Distribution Date,
over (ii) the amount of interest accrued on the Class M-2 Certificates at the
Net Rate Cap for such Distribution Date and (B) the Class M-2 Interest Carryover
Amount

                                       15
<PAGE>

for all previous Distribution Dates not previously paid pursuant to Section
4.04, together with interest thereon at the Class M-2 Pass-Through Rate (without
giving effect to the Net Rate Cap).

         Class M-2 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 0.850% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 1.275% per
annum.

         Class M-2 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class M-2 Margin and (ii) the related Net Rate Cap
for such Distribution Date.

         Class M-2 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate
Principal Balance of the Senior Certificates (after taking into account
distributions of the Class 1-A Principal Distribution Amount and Class 2-A
Principal Distribution Amount for such Distribution Date), (B) the Class M-1
Certificate Principal Balance (after taking into account distribution of the
Class M-1 Principal Distribution Amount on such Distribution Date) and (C) the
Class M-2 Certificate Principal Balance immediately prior to such Distribution
Date over (ii) the lesser of (x) 81.50% of the aggregate Stated Principal
Balances of the Mortgage Loans for such Distribution Date after giving effect to
distributions to be made on that Distribution Date and (y) the aggregate Stated
Principal Balance of the Mortgage Loans for such Distribution Date after giving
effect to distributions to be made on that Distribution Date minus the OC Floor;
provided, however, that after the Certificate Principal Balance of each other
Class of Offered Certificate is reduced to zero, the Class M-2 Principal
Distribution Amount for such Distribution Date will equal 100% of the Principal
Distribution Amount for such Distribution Date.

         Class M-3 Certificate: Any Certificate designated as a "Class M-3
Certificate" on the face thereof, in the form of Exhibit A-5 hereto,
representing the right to distributions as set forth herein.

         Class M-3 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class M-3 Certificates.

         Class M-3 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-3 Pass-Through Rate on
the Class M-3 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class M-3 Interest Carry Forward Amount: For any Distribution Date, the
excess of (a) the Class M-3 Current Interest with respect to prior Distribution
Dates over (b) the amount actually distributed to the Class M-3 Certificates
with respect to interest on such prior Distribution Dates.

         Class M-3 Interest Carryover Amount: For any Distribution Date and the
Class M-3 Certificates, the sum of (A) the excess of (i) the amount of interest
the Class M-3 Certificates would otherwise have accrued for such Distribution
Date had the Class M-3 Pass-Through Rate thereon been calculated as the sum of
One-Month LIBOR and the applicable Class M-3 Margin for such Distribution Date,
over (ii) the amount of interest accrued on the Class M-3 Certificates at the
Net Rate Cap for such Distribution Date and (B) the Class M-3 Interest Carryover
Amount

                                       16
<PAGE>

for all previous Distribution Dates not previously paid pursuant to Section
4.04, together with interest thereon at the Class M-3 Pass-Through Rate (without
giving effect to the Net Rate Cap).

         Class M-3 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 1.000% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 1.500% per
annum.

         Class M-3 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class M-3 Margin and (ii) the related Net Rate Cap
for such Distribution Date.

         Class M-3 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate
Principal Balance of the Senior Certificates (after taking into account
distributions of the Class 1-A Principal Distribution Amount and Class 2-A
Principal Distribution Amount for such Distribution Date), (B) the Class M-1
Certificate Principal Balance (after taking into account distribution of the
Class M-1 Principal Distribution Amount on such Distribution Date), (C) the
Class M-2 Certificate Principal Balance (after taking into account distribution
of the Class M-2 Principal Distribution Amount on such Distribution Date) and
(D) the Class M-3 Certificate Principal Balance immediately prior to such
Distribution Date over (ii) the lesser of (x) 83.80% of the aggregate Stated
Principal Balances of the Mortgage Loans for such Distribution Date after giving
effect to distributions to be made on that Distribution Date and (y) the
aggregate Stated Principal Balance of the Mortgage Loans for such Distribution
Date after giving effect to distributions to be made on that Distribution Date
minus the OC Floor; provided, however, that after the Certificate Principal
Balance of each of the other Class of Offered Certificate is reduced to zero,
the Class M-3 Principal Distribution Amount for such Distribution Date will
equal 100% of the Principal Distribution Amount for such Distribution Date.

         Class M-4 Certificate: Any Certificate designated as a "Class M-4
Certificate" on the face thereof, in the form of Exhibit A-6 hereto,
representing the right to distributions as set forth herein.

         Class M-4 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class M-4 Certificates.

         Class M-4 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-4 Pass-Through Rate on
the Class M-4 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class M-4 Interest Carry Forward Amount: For any Distribution Date, the
excess of (a) the Class M-4 Current Interest with respect to prior Distribution
Dates over (b) the amount actually distributed to the Class M-4 Certificates
with respect to interest on such prior Distribution Dates.

         Class M-4 Interest Carryover Amount: For any Distribution Date and the
Class M-4 Certificates, the sum of (A) the excess of (i) the amount of interest
the Class M-4 Certificates would otherwise have accrued for such Distribution
Date had the Class M-4 Pass-through Rate thereon been calculated as the sum of
One-Month LIBOR and the applicable Class M-4 Margin

                                       17
<PAGE>
for such Distribution Date, over (ii) the amount of interest accrued on
the Class M-4 Certificates at the Net Rate Cap for such Distribution Date and
(B) the Class M-4 Interest Carryover Amount for all previous Distribution Dates
not previously paid pursuant to Section 4.04, together with interest thereon at
the Class M-4 Pass-Through Rate (without giving effect to the Net Rate Cap).

         Class M-4 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 1.300% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 1.950% per
annum.

         Class M-4 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class M-4 Margin and (ii) the Net Rate Cap for such
Distribution Date.

         Class M-4 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate
Principal Balance of the Senior Certificates (after taking into account
distributions of the Class 1-A Principal Distribution Amount and Class 2-A
Principal Distribution Amount for such Distribution Date), (B) the Class M-1
Certificate Principal Balance (after taking into account distribution of the
Class M-1 Principal Distribution Amount on such Distribution Date), (C) the
Class M-2 Certificate Principal Balance (after taking into account distribution
of the Class M-2 Principal Distribution Amount on such Distribution Date), (D)
the Class M-3 Certificate Principal Balance (after taking into account
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date) and (E) the Class M-4 Certificate Principal Balance immediately prior to
such Distribution Date over (ii) the lesser of (x) 86.20% of the aggregate
Stated Principal Balance of the Mortgage Loans for such Distribution Date after
giving effect to distributions to be made on that Distribution Date and (y) the
aggregate Stated Principal Balance of the Mortgage Loans for such Distribution
Date after giving effect to distributions to be made on that Distribution Date
minus the OC Floor; provided, however, that after the Certificate Principal
Balance of each of the other Classes of Offered Certificates if reduced to zero,
the Class M-4 Principal Distribution Amount for such Distribution Date will
equal 100% of the Principal Distribution Amount for such Distribution Date.

         Class M-5 Certificate: Any Certificate designated as a "Class M-5
Certificate" on the face thereof, in the form of Exhibit A-7 hereto,
representing the right to distributions as set forth herein.

         Class M-5 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class M-5 Certificates.

         Class M-5 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-5 Pass-Through Rate on
the Class M-5 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class M-5 Interest Carry Forward Amount: For any Distribution Date, the
excess of (a) the Class M-5 Current Interest with respect to prior Distribution
Dates over (b) the amount actually distributed to the Class M-5 Certificates
with respect to interest on such prior Distribution Dates.

                                       18
<PAGE>

         Class M-5 Interest Carryover Amount: For any Distribution Date and the
Class M-5 Certificates, the sum of (A) the excess of (i) the amount of interest
the Class M-5 Certificates would otherwise have accrued for such Distribution
Date had the Class M-5 Pass-Through Rate thereon been calculated as the sum of
One-Month LIBOR and the applicable Class M-5 Margin for such Distribution Date,
over (ii) the amount of interest accrued on the Class M-5 Certificates at the
Net Rate Cap for such Distribution Date and (B) the Class M-5 Interest Carryover
Amount for all previous Distribution Dates not previously paid pursuant to
Section 4.04, together with interest thereon at the Class M-5 Pass-Through Rate
(without giving effect to the Net Rate Cap).

         Class M-5 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 1.400% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 2.100% per
annum.

         Class M-5 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class M-5 Margin and (ii) the related Net Rate Cap
for such Distribution Date.

         Class M-5 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate
Principal Balance of the Senior Certificates (after taking into account
distributions of the Class 1-A Principal Distribution Amount and Class 2-A
Principal Distribution Amount for such Distribution Date), (B) the Class M-1
Certificate Principal Balance (after taking into account distribution of the
Class M-1 Principal Distribution Amount on such Distribution Date), (C) the
Class M-2 Certificate Principal Balance (after taking into account distribution
of the Class M-2 Principal Distribution Amount on such Distribution Date), (D)
the Class M-3 Certificate Principal Balance (after taking into account
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date), (E) the Class M-4 Certificate Principal Balance (after taking into
account distribution of the Class M-4 Principal Distribution Amount on such
Distribution Date) and (F) the Class M-5 Certificate Principal Balance
immediately prior to such Distribution Date over (ii) the lesser of (x) 88.50%
of the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date after giving effect to distributions to be made on that
Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage
Loans for such Distribution Date after giving effect to distributions to be made
on that Distribution Date minus the OC Floor; provided, however, that after the
Certificate Principal Balance of each other Class of Offered Certificates is
reduced to zero, the Class M-5 Principal Distribution Amount for such
Distribution Date will equal 100% of the Principal Distribution Amount for such
Distribution Date.

         Class M-6 Certificate: Any Certificate designated as a "Class M-6
Certificate" on the face thereof, in the form of Exhibit A-7 hereto,
representing the right to distributions as set forth herein.

         Class M-6 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class M-6 Certificates.

         Class M-6 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-6 Pass-Through Rate on
the Class M-6 Certificate Principal Balance immediately prior to such
Distribution Date.

                                       19
<PAGE>

         Class M-6 Interest Carry Forward Amount: For any Distribution Date, the
excess of (a) the Class M-6 Current Interest with respect to prior Distribution
Dates over (b) the amount actually distributed to the Class M-6 Certificates
with respect to interest on such prior Distribution Dates.

         Class M-6 Interest Carryover Amount: For any Distribution Date and the
Class M-6 Certificates, the sum of (A) the excess of (i) the amount of interest
the Class M-6 Certificates would otherwise have accrued for such Distribution
Date had the Class M-6 Pass-Through Rate thereon been calculated as the sum of
One-Month LIBOR and the applicable Class M-6 Margin for such Distribution Date,
over (ii) the amount of interest accrued on the Class M-6 Certificates at the
Net Rate Cap for such Distribution Date and (B) the Class M-6 Interest Carryover
Amount for all previous Distribution Dates not previously paid pursuant to
Section 4.04, together with interest thereon at the Class M-6 Pass-Through Rate
(without giving effect to the Net Rate Cap).

         Class M-6 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 1.500% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 2.250% per
annum.

         Class M-6 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class M-6 Margin and (ii) the related Net Rate Cap
for such Distribution Date.

         Class M-6 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate
Principal Balance of the Senior Certificates (after taking into account
distributions of the Class 1-A Principal Distribution Amount and Class 2-A
Principal Distribution Amount for such Distribution Date), (B) the Class M-1
Certificate Principal Balance (after taking into account distribution of the
Class M-1 Principal Distribution Amount on such Distribution Date), (C) the
Class M-2 Certificate Principal Balance (after taking into account distribution
of the Class M-2 Principal Distribution Amount on such Distribution Date), (D)
the Class M-3 Certificate Principal Balance (after taking into account
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date), (E) the Class M-4 Certificate Principal Balance (after taking into
account distribution of the Class M-4 Principal Distribution Amount on such
Distribution Date), (F) the Class M-5 Certificate Principal Balance (after
taking into account distribution of the Class M-5 Principal Distribution Amount
on such Distribution Date) and (G) the Class M-6 Certificate Principal Balance
immediately prior to such Distribution Date over (ii) the lesser of (x) 90.50%
of the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date after giving effect to distributions to be made on that
Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage
Loans for such Distribution Date after giving effect to distributions to be made
on that Distribution Date minus the OC Floor; provided, however, that after the
Certificate Principal Balance of each other Class of Offered Certificates is
reduced to zero, the Class M-6 Principal Distribution Amount for such
Distribution Date will equal 100% of the Principal Distribution Amount for such
Distribution Date.

         Class M-7 Certificate: Any Certificate designated as a "Class M-7
Certificate" on the face thereof, in the form of Exhibit A-7 hereto,
representing the right to distributions as set forth herein.

                                       20
<PAGE>

         Class M-7 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class M-7 Certificates.

         Class M-7 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-7 Pass-Through Rate on
the Class M-7 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class M-7 Interest Carry Forward Amount: For any Distribution Date, the
excess of (a) the Class M-7 Current Interest with respect to prior Distribution
Dates over (b) the amount actually distributed to the Class M-7 Certificates
with respect to interest on such prior Distribution Dates.

         Class M-7 Interest Carryover Amount: For any Distribution Date and the
Class M-7 Certificates, the sum of (A) the excess of (i) the amount of interest
the Class M-7 Certificates would otherwise have accrued for such Distribution
Date had the Class M-7 Pass-Through Rate thereon been calculated as the sum of
One-Month LIBOR and the applicable Class M-7 Margin for such Distribution Date,
over (ii) the amount of interest accrued on the Class M-7 Certificates at the
Net Rate Cap for such Distribution Date and (B) the Class M-7 Interest Carryover
Amount for all previous Distribution Dates not previously paid pursuant to
Section 4.04, together with interest thereon at the Class M-7 Pass-Through Rate
(without giving effect to the Net Rate Cap).

         Class M-7 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 2.500% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 3.750% per
annum.

         Class M-7 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class M-7 Margin and (ii) the related Net Rate Cap
for such Distribution Date.

         Class M-7 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate
Principal Balance of the Senior Certificates (after taking into account
distributions of the Class 1-A Principal Distribution Amount and Class 2-A
Principal Distribution Amount for such Distribution Date), (B) the Class M-1
Certificate Principal Balance (after taking into account distribution of the
Class M-1 Principal Distribution Amount on such Distribution Date), (C) the
Class M-2 Certificate Principal Balance (after taking into account distribution
of the Class M-2 Principal Distribution Amount on such Distribution Date), (D)
the Class M-3 Certificate Principal Balance (after taking into account
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date), (E) the Class M-4 Certificate Principal Balance (after taking into
account distribution of the Class M-4 Principal Distribution Amount on such
Distribution Date), (F) the Class M-5 Certificate Principal Balance (after
taking into account distribution of the Class M-5 Principal Distribution Amount
on such Distribution Date), (G) the Class M-6 Certificate Principal Balance
(after taking into account distribution of the Class M-6 Principal Distribution
Amount on such Distribution Date) and (H) the Class M-7 Certificate Principal
Balance immediately prior to such Distribution Date over (ii) the lesser of (x)
93.00% of the aggregate Stated Principal Balances of the Mortgage Loans for such
Distribution Date after giving effect to distributions to be made on that
Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage
Loans for such Distribution Date after giving effect to distributions to be made
on that Distribution Date minus

                                       21
<PAGE>

the OC Floor; provided, however, that after the Certificate Principal Balance of
each other Class of Offered Certificates is reduced to zero, the Class M-7
Principal Distribution Amount for such Distribution Date will equal 100% of the
Principal Distribution Amount for such Distribution Date.

         Class M-8 Certificate: Any Certificate designated as a "Class M-8
Certificate" on the face thereof, in the form of Exhibit A-7 hereto,
representing the right to distributions as set forth herein.

         Class M-8 Certificate Principal Balance: As of any date of
determination, the Certificate Principal Balance of the Class M-8 Certificates.

         Class M-8 Current Interest: For any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-8 Pass-Through Rate on
the Class M-8 Certificate Principal Balance immediately prior to such
Distribution Date.

         Class M-8 Interest Carry Forward Amount: For any Distribution Date, the
excess of (a) the Class M-8 Current Interest with respect to prior Distribution
Dates over (b) the amount actually distributed to the Class M-8 Certificates
with respect to interest on such prior Distribution Dates.

         Class M-8 Interest Carryover Amount: For any Distribution Date and the
Class M-8 Certificates, the sum of (A) the excess of (i) the amount of interest
the Class M-8 Certificates would otherwise have accrued for such Distribution
Date had the Class M-8 Pass-Through Rate thereon been calculated as the sum of
One-Month LIBOR and the applicable Class M-8 Margin for such Distribution Date,
over (ii) the amount of interest accrued on the Class M-8 Certificates at the
Net Rate Cap for such Distribution Date and (B) the Class M-8 Interest Carryover
Amount for all previous Distribution Dates not previously paid pursuant to
Section 4.04, together with interest thereon at the Class M-8 Pass-Through Rate
(without giving effect to the Net Rate Cap).

         Class M-8 Margin: For the Accrual Period for any Distribution Date on
or prior to the Optional Termination Date, 3.000% per annum and, for the Accrual
Period for any Distribution Date after the Optional Termination Date, 4.500% per
annum.

         Class M-8 Pass-Through Rate: For any Distribution Date, the lesser of
(i) One-Month LIBOR plus the Class M-8 Margin and (ii) the related Net Rate Cap
for such Distribution Date.

         Class M-8 Principal Distribution Amount: With respect to any
Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate
Principal Balance of the Senior Certificates (after taking into account
distributions of the Class 1-A Principal Distribution Amount and Class 2-A
Principal Distribution Amount for such Distribution Date), (B) the Class M-1
Certificate Principal Balance (after taking into account distribution of the
Class M-1 Principal Distribution Amount on such Distribution Date), (C) the
Class M-2 Certificate Principal Balance (after taking into account distribution
of the Class M-2 Principal Distribution Amount on such Distribution Date), (D)
the Class M-3 Certificate Principal Balance (after taking into account
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date), (E) the Class M-4 Certificate Principal Balance (after taking into
account distribution of the Class M-4

                                       22
<PAGE>

Principal Distribution Amount on such Distribution Date), (F) the
Class M-5 Certificate Principal Balance (after taking into account distribution
of the Class M-5 Principal Distribution Amount on such Distribution Date), (G)
the Class M-6 Certificate Principal Balance (after taking into account
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date), (H) the Class M-7 Certificate Principal Balance (after taking into
account distribution of the Class M-7 Principal Distribution Amount on such
Distribution Date) and (I) the Class M-8 Certificate Principal Balance
immediately prior to such Distribution Date over (ii) the lesser of (x) 94.50%
of the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date after giving effect to distributions to be made on that
Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage
Loans for such Distribution Date after giving effect to distributions to be made
on that Distribution Date minus the OC Floor; provided, however, that after the
Certificate Principal Balance of each other Class of Offered Certificates is
reduced to zero, the Class M-8 Principal Distribution Amount for such
Distribution Date will equal 100% of the Principal Distribution Amount for such
Distribution Date.

         Class P Certificate: Any Certificate designated as a "Class P
Certificate" on the face thereof, in the form of Exhibit C hereto, representing
the right to distributions as set forth herein.

         Class P Certificate Principal Balance: As of any date of determination,
the Certificate Principal Balance of the Class P Certificates.

         Class P Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05 in the name of the Trustee
for the benefit of the Class P Certificateholders and designated "The Bank of
New York, in trust for registered holders of CWABS, Inc., Asset-Backed
Certificates, Series 2004-BC4".

         Class P Principal Distribution Date: The first Distribution Date that
occurs after the end of the latest Prepayment Charge Period for all Mortgage
Loans that have a Prepayment Charge Period.

         Class R-I Interest: The uncertificated Residual Interest in REMIC I.

         Class R-II Interest: The uncertificated Residual Interest in REMIC II.
         Closing Date: October 28, 2004.

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

         Compensating Interest: With respect to any Distribution Date, an amount
equal to one-half of the Servicing Fee, to be applied to the interest portion of
any Prepayment Interest Shortfall on the Mortgage Loans pursuant to Section 4.02
hereof.

         Confirmation And Agreements: The Class 1-A Confirmation and Agreement,
Class 2-A Confirmation and Agreement and Subordinated Confirmation and
Agreement.

         Corporate Trust Office: The designated office of the Trustee in the
State of New York where at any particular time its corporate trust business with
respect to this Agreement shall be

                                       23
<PAGE>

administered, which office at the date of the execution of this Agreement is
located at 101 Barclay Street, New York, New York 10286 (Attention: Corporate
Trust MBS Administration), telephone: (212) 815-3236, facsimile: (212) 815-3986.

         Corresponding Certificate: With respect to each REMIC I Regular
Interest set forth below, the Regular Certificate set forth in the table below:

              REMIC I Regular Interest         REMIC II Certificate
              ------------------------         --------------------
                       LT-1A1                 Class 1-A-1 Certificate
                       LT-1A2                 Class 1-A-2 Certificate
                       LT-2A1                 Class 2-A-1 Certificate
                       LT-2A2                 Class 2-A-2 Certificate
                       LT-2A3                 Class 2-A-3 Certificate
             LT-M1 Class M-1 Certificate
             LT-M2 Class M-2 Certificate
             LT-M3 Class M-3 Certificate
             LT-M4 Class M-4 Certificate
             LT-M5 Class M-5 Certificate
             LT-M6 Class M-6 Certificate
             LT-M7 Class M-7 Certificate
             LT-M8 Class M-8 Certificate
              LT-B Class B Certificate
              LT-P Class P Certificate
                        LT-R                   Class A-R Certificate

         Corridor Contracts: The Class 1-A Corridor Contract, Class 2-A Corridor
Contract and Subordinated Corridor Contract.

         Corridor Contract Novation Agreement: The Class 1-A Corridor Contract
Novation Agreement, Class 2-A Corridor Contract Novation Agreement and
Subordinated Corridor Contract Novation Agreement, as applicable.

         Corridor Contract Counterparty: Bear Stearns Financial Products, Inc..,
and any permitted successors and assigns pursuant to the Corridor Contracts.

         Corridor Contract Payment Amount: The Class 1-A Corridor Contract
Payment Amount, Class 2-A Corridor Contract Payment Amount and Subordinated
Corridor Contract Payment Amount, as applicable.

         Corridor Contract Termination Date: The Class 1-A Corridor Contract
Termination Date, Class 2-A Corridor Contract Termination Date and Subordinated
Corridor Contract Termination Date, as applicable.

                                       24
<PAGE>

         Cumulative Loss Trigger Event: With respect to a Distribution Date on
or after the Stepdown Date exists if the aggregate amount of Realized Losses on
the Mortgage Loans from (and including) the Cut-off Date for each Mortgage Loan
to (and including) the last day of the related Due Period (reduced by the
aggregate amount of Subsequent Recoveries received through the last day of that
Due Period) a Cumulative Loss Trigger Event exceeds the applicable percentage,
for such Distribution Date, of the Cut-off Date Principal Balance of the
Mortgage Loans, as set forth below:

<TABLE>
<CAPTION>

                 Distribution Date                                               Percentage
                 -----------------                                               ----------
<S>                                                  <C>
November 2007 -- October 2008                        4.75% with respect to November 2007, plus an additional  1/12th of
                                                     1.50% for each month thereafter until October 2008
November 2008 -- October 2009                        6.25% with respect to November 2008, plus an additional  1/12th of
                                                     1.25% for each month thereafter until October 2009
November 2009 -- October 2010                        7.50% with respect to November 2009, plus an additional  1/12th of
                                                     0.25% for each month thereafter until October 2010
November 2010 and thereafter                         7.75%
</TABLE>

         Current Interest: With respect to (i) the Class 1-A-1 Certificates, the
Class 1-A-1 Current Interest (ii) the Class 1-A-2 Certificates, the Class 1-A-2
Current Interest, (iii) the Class 2-A-1 Certificates, the Class 2-A-1 Current
Interest, (iv) the Class 2-A-2 Certificates, the Class 2-A-2 Current Interest
(v) the Class 2-A-3 Certificates, the Class 2-A-3 Current Interest (vi) the
Class M-1 Certificates, the Class M-1 Current Interest, (vii) the Class M-2
Certificates, the Class M-2 Current Interest, (viii) the Class M-3 Certificates,
the Class M-3 Current Interest, (ix) the Class M-4 Certificates, the Class M-4
Current Interest, (x) the Class M-5 Certificates, the Class M-5 Current
Interest, (xi) the Class M-6 Certificates, the Class M-6 Current Interest, (xii)
the Class M-7 Certificates, the Class M-7 Current Interest, (xiii) the Class M-8
Certificates, the Class M-8 Current Interest, (xiv) the Class B Certificates,
the Class B Current Interest and (xv) the Class C Certificates, the Class C
Current Interest.

         Cut-off Date: In the case of any Mortgage Loan, the later of (x)
October 1, 2004 and (y) the date of origination of such Mortgage Loan. When used
with respect to any Mortgage Loans "the Cut-off Date" shall mean the related
Cut-off Dates.

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

         Debt Service Reduction: With respect to any Mortgage Loan, a reduction
by a court of competent jurisdiction in a proceeding under the Bankruptcy Code
in the Scheduled Payment for such Mortgage Loan that became final and
non-appealable, except such a reduction resulting

                                       25
<PAGE>

from a Deficient Valuation or any other reduction that results in a permanent
forgiveness of principal.

         Definitive Certificates:  As defined in Section 5.06.

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

         Delay Delivery Mortgage Loans: The Mortgage Loans identified on the
schedule of Mortgage Loans hereto set forth on Exhibit F-2 hereof for which all
or a portion of a related Mortgage File is not delivered to the Trustee on or
prior to the Closing Date. The Depositor shall deliver (or cause delivery of)
the Mortgage Files to the Trustee: (A) with respect to at least 50% of the
Mortgage Loans in each Loan Group, not later than the Closing Date, (B) with
respect to at least an additional 40% of the Mortgage Loans, not later than 20
days after the Closing Date, and (C) with respect to the remaining 10% of the
Mortgage Loans, not later than 30 days after the Closing Date. To the extent
that the Seller shall be in possession of any Mortgage Files with respect to any
Delay Delivery Loan, until delivery to of such Mortgage File to the Trustee as
provided in Section 2.01, the Seller shall hold such files as agent and in trust
for the Trustee.

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

         Delinquency Trigger Event: With respect to any Distribution Date on or
after the Stepdown Date, a Delinquency Trigger Event exists if the Rolling
Delinquency Percentage equals or exceeds the product of 42.25% and the Senior
Enhancement Percentage.

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

         Denomination: With respect to each Certificate, the amount set forth on
the face thereof as the "Initial Certificate Balance of this Certificate" or the
"Initial Notional Amount of this Certificate" or, if neither of the foregoing,
the Percentage Interest appearing on the face thereof.

         Depositor: CWABS, Inc., a Delaware corporation, or its successor in
interest.

         Depository: The initial Depository shall be The Depository Trust
Company ("DTC"), the nominee of which is Cede & Co., or any other organization
registered as a "clearing agency"

                                       26
<PAGE>

pursuant to Section 17A of the Securities Exchange Act of 1934, as amended. The
Depository shall initially be the registered Holder of the Book-Entry
Certificates. The Depository shall at all times be a "clearing corporation" as
defined in Section 8 102(a)(5) of the Uniform Commercial Code of the State of
New York.

         Depository Agreement: With respect to the Class of Book-Entry
Certificates, the agreement among the Depositor, the Trustee and the initial
Depository, dated as of the Closing Date, substantially in the form of Exhibit
O.

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

         Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05 in the name of the Trustee
for the benefit of the Certificateholders and designated "The Bank of New York,
in trust for registered holders of CWABS, Inc., Asset-Backed Certificates,
Series 2004-BC4". Funds in the Distribution Account shall be held in trust for
the Certificateholders for the uses and purposes set forth in this Agreement.

         Distribution Account Deposit Date: As to any Distribution Date, 1:00
p.m. Pacific time on the Business Day immediately preceding such Distribution
Date.

         Distribution Date: The 25th day of each calendar month after the
initial issuance of the Certificates, or if such 25th day is not a Business Day,
the next succeeding Business Day, commencing in November 2004.

         Due Date: With respect to any Mortgage Loan and Due Period, the due
date for scheduled payments of interest and/or principal on that Mortgage Loan
occurring in such Due Period as provided in the related Mortgage Note.

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

         Eligible Account: Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company, the
long-term unsecured debt obligations and short-term unsecured debt obligations
of which (or, in the case of a depository institution or trust company that is
the principal subsidiary of a holding company, the debt obligations of such
holding company) are rated by each Rating Agency in one of its two highest
long-term and its highest short-term rating categories respectively, at the time
any amounts are held on deposit therein, or (ii) an account or accounts in a
depository institution or trust company in which such accounts are insured by
the FDIC (to the limits established by the FDIC) and the uninsured deposits in
which accounts are otherwise secured such that, as evidenced by an Opinion of

                                       27
<PAGE>

Counsel delivered to the Trustee and to each Rating Agency, the
Certificateholders have a claim with respect to the funds in such account or a
perfected first priority security interest against any collateral (which shall
be limited to Permitted Investments) securing such funds that is superior to
claims of any other depositors or creditors of the depository institution or
trust company in which such account is maintained, or (iii) a trust account or
accounts maintained with the corporate trust department of a federal or state
chartered depository institution or trust company having capital and surplus of
not less than $50,000,000, acting in its fiduciary capacity or (iv) any other
account acceptable to the Rating Agencies. Eligible Accounts may bear interest,
and may include, if otherwise qualified under this definition, accounts
maintained with the Trustee.

         Eligible Repurchase Month:  As defined in Section 3.12(c) hereof.

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

         ERISA-Restricted Certificates: The Class A-R, Class C and Class P
Certificates.

         Event of Default:  As defined in Section 7.01 hereof.

         Excess Cashflow: With respect to any Distribution Date the sum of (i)
the amount remaining after the distribution of interest to Certificateholders
for such Distribution Date pursuant to Section 4.04(a)(xi), (ii) the amount
remaining after the distribution of principal to Certificateholders for such
Distribution Date pursuant to Section 4.04(d)(i)(K) or 4.04(d)(ii)(H) and (iii)
the related Overcollateralization Reduction Amount, if any, for such
Distribution Date.

         Excess Proceeds: With respect to any Liquidated Loan, any Liquidation
Proceeds that are in excess of the sum of (i) the unpaid principal balance of
such Liquidated Loan as of the date of such liquidation plus (ii) interest at
the Mortgage Rate from the Due Date as to which interest was last paid or
advanced to Certificateholders (and not reimbursed to the Master Servicer) up to
the Due Date in the month in which such Liquidation Proceeds are required to be
distributed on the Stated Principal Balance of such Liquidated Loan outstanding
during each Due Period as to which such interest was not paid or advanced.

         Expense Fee Rate: The sum of (i) the Servicing Fee Rate and (ii) the
Trustee Fee Rate.

         Extra Principal Distribution Amount: With respect to any Distribution
Date and Loan Group, the lesser of (1) the Overcollateralization Deficiency
Amount for such Distribution Date multiplied by a fraction, the numerator of
which is the Principal Remittance Amount for such Loan Group and the denominator
of which is the Principal Remittance Amount for both Loan Groups and (2) the
Loan Group Excess Cashflow Allocation Amount for such Distribution Date
available for payment thereof pursuant to Section 4.04(e)(i).

         Fannie Mae: 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.

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

         FIRREA: The Financial Institutions Reform, Recovery, and Enforcement
Act of 1989.

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<PAGE>

         Fitch: Fitch Ratings, Inc., or any successor thereto.

         Five-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage Rate
that is fixed for 60 months after origination thereof before such Mortgage Rate
becomes subject to adjustment.

         Fixed Rate Mortgage Loans: The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is fixed for the life of
the related Mortgage, including any Mortgage Loans delivered in replacement
thereof.

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

         Gross Margin: The percentage set forth in the related Mortgage Note for
the Adjustable Rate Mortgage Loans to be added to the Index for use in
determining the Mortgage Rate on each Adjustment Date, and which is set forth in
the Mortgage Loan Schedule for the Adjustable Rate Mortgage Loans.

         Group 1 Certificates: The Class A-R, Class 1-A-1, and Class 1-A-2
Certificates.

         Group 1 Mortgage Loans: The group of Mortgage Loans identified in the
related Mortgage Loan Schedule as "Group 1 Mortgage Loans", including in each
case any Mortgage Loans delivered in replacement thereof.

         Group 1 Net WAC: The weighted average Adjusted Net Mortgage Rate of the
Mortgage Loans in Loan Group 1.

         Group 2 Certificates: The Class 2-A-1, Class 2-A-2 and Class 2-A-3
Certificates.

         Group 2 Mortgage Loans: The group of Mortgage Loans identified in the
related Mortgage Loan Schedule as "Group 2 Mortgage Loans", including any
Mortgage Loans delivered in replacement thereof.

         Group 2 Net WAC: The weighted average Adjusted Net Mortgage Rate of the
Mortgage Loans in Loan Group 2.

         Index: As to any Adjustable Rate Mortgage Loan on any Adjustment Date
related thereto, the index for the adjustment of the Mortgage Rate set forth as
such in the related Mortgage Note, such index in general being the average of
the London interbank offered rates for six-month U.S. dollar deposits in the
London market, as set forth in The Wall Street Journal or some other source
generally accepted in the residential mortgage loan origination business and
specified in the related Mortgage Note, as most recently announced as of either
45 days prior to, or the first business day of the month immediately preceding
the month of, such Adjustment Date or, if the Index ceases to be published in
the original source or becomes unavailable for any reason, then the Index shall
be a new index selected by the Master Servicer, based on comparable information.

                                       29
<PAGE>

         Initial Adjustment Date: As to any Adjustable Rate Mortgage Loan, the
first Adjustment Date following the origination of such Mortgage Loan.

         Initial Certificate Principal Balance: With respect to any Certificate,
the Certificate Principal Balance of such Certificate or any predecessor
Certificate on the Closing Date.

         Initial Mortgage Rate: As to each Mortgage Loan, the Mortgage Rate in
effect prior to the Initial Adjustment Date.

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

         Insured Expenses: Expenses covered by a Required Insurance Policy or
any other insurance policy with respect to the Mortgage Loans.

         Interest Carry Forward Amount: With respect to (i) the Class 1-A-1
Certificates, the Class 1-A-1 Interest Carry Forward Amount, (ii) the Class
1-A-2 Certificates, the Class 1-A-2 Interest Carry Forward Amount (iii) the
Class 2-A-1 Certificates, the Class 2-A-1 Interest Carry Forward Amount, (iv)
the Class 2-A-2 Certificates, the Class 2-A-2 Interest Carry Forward Amount, (v)
the Class 2-A-3 Certificates, the Class 2-A-3 Interest Carry Forward Amount (vi)
the Class M-1 Certificates, the Class M-1 Interest Carry Forward Amount, (vii)
the Class M-2 Certificates, the Class M-2 Interest Carry Forward Amount, (viii)
the Class M-3 Certificates, the Class M-3 Interest Carry Forward Amount, (ix)
the Class M-4 Certificates, the Class M-4 Interest Carry Forward Amount, (x) the
Class M-5 Certificates, the Class M-5 Interest Carry Forward Amount, (xi) the
Class M-6 Certificates, the Class M-6 Interest Carry Forward Amount, (xii) the
Class M-7 Certificates, the Class M-7 Interest Carry Forward Amount, (xiii) the
Class M-8 Certificates, the Class M-8 Interest Carry Forward Amount, and (xiv)
the Class B Certificates, the Class B Interest Carry Forward Amount.

         Interest Determination Date: With respect to the Certificates (other
than the Class A-R, Class C and Class P Certificates) for the first Accrual
Period, October 26, 2004. With respect to the Certificates (other than the Class
A-R, Class C and Class P Certificates) and any Accrual Period thereafter, the
second LIBOR Business Day preceding the commencement of such Accrual Period.

         Interest Funds: On any Distribution Date, the Interest Remittance
Amount less the Trustee Fee for the Mortgage Loans for such Distribution Date.

         Interest Remittance Amount: With respect to the Mortgage Loans in each
Loan Group and any Master Servicer Advance Date, the sum, without duplication,
of (i) all scheduled interest collected during the related Due Period with
respect to the Mortgage Loans less the related Servicing Fee, (ii) interest
payments on any Principal Prepayments received during the related

                                       30
<PAGE>

Prepayment Period other than Prepayment Interest Excess, (iii) all related
Advances relating to interest with respect to the Mortgage Loans, (iv) all
Compensating Interest with respect to the Mortgage Loans, (v) Liquidation
Proceeds and Subsequent Recoveries with respect to the Mortgage Loans collected
during the related Due Period (to the extent such Liquidation Proceeds and
Subsequent Recoveries relate to interest), and (v) for the Master Servicer
Advance Date in November 2004, the Seller Shortfall Interest Requirement for
such Master Servicer Advance Date (if any), less all Nonrecoverable Advances
relating to interest reimbursed during the related Due Period.

         Latest Possible Maturity Date:  The Distribution Date in January 2035.

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

         Liquidated Loan: With respect to any Distribution Date, a defaulted
Mortgage Loan that has been liquidated through deed-in-lieu of foreclosure,
foreclosure sale, trustee's sale or other realization as provided by applicable
law governing the real property subject to the related Mortgage and any security
agreements and as to which the Master Servicer has certified (in accordance with
Section 3.12) in the related Prepayment Period that it has received all amounts
it expects to receive in connection with such liquidation.

         Liquidation Proceeds: Amounts, including Insurance Proceeds, received
in connection with the partial or complete liquidation of Mortgage Loans,
whether through trustee's sale, foreclosure sale or otherwise or amounts
received in connection with any condemnation or partial release of a Mortgaged
Property and any other proceeds received in connection with an REO Property,
less the sum of related unreimbursed Advances, Servicing Fees and Servicing
Advances.

         Loan Group:  Any of Loan Group 1 or Loan Group 2.

         Loan Group Characteristics: The characteristics for each Loan Group
identified under the caption "The Mortgage Pool" in the Prospectus Supplement.

         Loan Group 1:  The Group 1 Mortgage Loans.

         Loan Group 2:  The Group 2 Mortgage Loans.

         Loan Group Excess Cashflow Allocation Amount: With respect to any
Distribution Date and Loan Group, the product of (i) the Excess Cashflow for
such Distribution Date multiplied by (ii) a fraction, the numerator of which is
the Principal Remittance Amount for such Loan Group for such Distribution Date
and the denominator of which is the sum of the Principal Remittance Amount for
both Loan Groups.

         Loan-to-Value Ratio: The fraction, expressed as a percentage, the
numerator of which is the original principal balance of the related Mortgage
Loan and the denominator of which is the Appraised Value of the related
Mortgaged Property.

                                       31
<PAGE>

         Marker Rate: With respect to the Class C Certificates and any
Distribution Date, a per annum rate equal to two (2) multiplied by the weighted
average of the Pass Through Rates for each REMIC I Regular Interest (other than
REMIC I Regular Interest LT-AA, REMIC 1 Regular Interest LT-1SUB, REMIC 1
Regular Interest LT-1GRP, REMIC Regular Interest LT-2SUB, REMIC 1 Regular
Interest LT-2GRP, REMIC 1 Regular Interest LT-XX, REMIC I Regular Interest LT-P
and REMIC I Regular Interest LT-R), with the rates on each such REMIC I Regular
Interest subject to a cap equal to the Pass Through Rate for the Corresponding
Class for such REMIC I Regular Interest, and the rate on REMIC I Regular
Interest LT-ZZ subject to a cap of zero for purposes of this calculation;
provided, however, for purposes of this calculation each such rate shall be
multiplied by a fraction., the numerator of which is the actual number of days
in the accrual period and the denominator of which is 30.

         Master Servicer: Countrywide Home Loans Servicing LP, a Texas limited
partnership, and its successors and assigns, in its capacity as master servicer
hereunder.

         Master Servicer Advance Date: As to any Distribution Date, the Business
Day immediately preceding such Distribution Date.

         Maximum Mortgage Rate: With respect to each Adjustable Rate Mortgage
Loan, the maximum rate of interest set forth as such in the related Mortgage
Note.

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

         MERS Mortgage Loan: Any Mortgage Loan registered with MERS on the
MERS(R) System.

         MERS(R) System: The system of recording transfers of mortgages
electronically maintained by MERS.

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

         Minimum Mortgage Rate: With respect to each Adjustable Rate Mortgage
Loan, the minimum rate of interest set forth as such in the related Mortgage
Note.

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

         Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.05.

         Mortgage: The mortgage, deed of trust or other instrument creating a
first lien on or first priority ownership interest in an estate in fee simple in
real property securing a Mortgage Note.

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

                                       32
<PAGE>

         Mortgage Loan: Such of the Group 1 Mortgage Loans and Group 2 Mortgage
Loans transferred and assigned to the Trustee pursuant to the provisions hereof
as from time to time are held as a part of the Trust Fund (including any REO
Property), the mortgage loans so held being identified in the Mortgage Loan
Schedule, notwithstanding foreclosure or other acquisition of title of the
related Mortgaged Property. Any Mortgage Loan subject to repurchase by the
Seller or Master Servicer as provided in this Agreement, shall continue to be a
Mortgage Loan hereunder until the Purchase Price with respect thereto has been
paid to the Trust Fund.

         Mortgage Loan Schedule: The list of Mortgage Loans (as from time to
time amended by the Master Servicer to reflect the deletion of Deleted Mortgage
Loans and the addition of Replacement Mortgage Loans pursuant to the provisions
of this Agreement) transferred to the Trustee as part of the Trust Fund and from
time to time subject to this Agreement, attached hereto as Exhibit F-1, setting
forth the following information with respect to each Mortgage Loan:

          (i) the loan number;

          (ii) the Loan Group;

          (iii) the Appraised Value;

          (iv) the Initial Mortgage Rate;

          (v) the maturity date;

          (vi) the original principal balance;

          (vii) the Cut-off Date Principal Balance of each of Loan Group 1 and
     Loan Group 2 and the aggregate thereof;

          (viii) the first payment date of the Mortgage Loan;

          (ix) the Scheduled Payment in effect as of the Cut-off Date;

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

          (xi) a code indicating whether the residential dwelling at the time of
     origination was represented to be owner-occupied;

          (xii) a code indicating whether the residential dwelling is either (a)
     a detached single family dwelling (b) a condominium unit or (c) a two to
     four unit residential property;

          (xiii) [reserved];

          (xiv) [reserved]; and

          (xv) with respect to each Adjustable Rate Mortgage Loan;

               (a) the frequency of each Adjustment Date;

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<PAGE>

               (b) the next Adjustment Date;

               (c) the Maximum Mortgage Rate;

               (d) the Minimum Mortgage Rate;

               (e) the Mortgage Rate as of the Cut-off Date;

               (f) the related Periodic Rate Cap;

               (g) the Gross Margin; and

               (h) the purpose of the Mortgage Loan.

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

         Mortgage Pool: The aggregate of the Mortgage Loans identified in the
Mortgage Loan Schedule.

         Mortgage Rate: The annual rate of interest borne by a Mortgage Note
from time to time.

         Mortgaged Property:  The underlying property securing a Mortgage Loan.

         Mortgagor:  The obligors on a Mortgage Note.

         Net Mortgage Rate: As to each Mortgage Loan, and at any time, the per
annum rate equal to the Mortgage Rate less the Servicing Fee Rate.

         Net Rate Cap: For any Distribution Date, (i) With respect to the Class
1-A-1 and Class 1-A-2 Certificates, the Group 1 Net WAC, (ii) with respect to
the Class 2-A-1, Class 2-A-2 and Class 2-A-3 Certificates, the Group 2 Net WAC,
and (iii) with respect to the Class M-1, Class M-2, Class M-3, Class M-4, Class
M-5, Class M-6, Class M-7, Class M-8 and Class B Certificates, the weighted
average of the Group 1 Net WAC and Group 2 Net WAC (weighted (x) in the case of
the Group 1 Net WAC, on the positive difference (if any) of the Stated Principal
Balance of the Mortgage Loans in Loan Group 1 over the outstanding aggregate
Certificate Principal Balance of the Class 1-A Certificates and (y) in the case
of the Group 2 Net WAC, on the positive difference (if any) of the Stated
Principal Balance of the Mortgage Loans in Loan Group 2 over the outstanding
aggregate Certificate Principal Balance the Class 2-A Certificates), in the case
of each of (i), (ii) and (iii) above, adjusted to an effective rate reflecting
the calculation of interest on the basis of the actual number of days elapsed
during the related interest accrual period and a 360-day year. For federal
income tax purposes, the equivalent of clause (i) above shall be expressed as
the weighted average of the Uncertificated REMIC I Pass-Through Rate on REMIC I
Regular Interest LT-1GRP, weighted on the basis of the Uncertificated Principal
Balance of such REMIC I Regular Interest. For federal income tax purposes, the
equivalent of clause (ii) above shall be expressed as the weighted average of
the Uncertificated REMIC I Pass-Through Rate on REMIC I Regular Interest
LT-2GRP, weighted on the basis of the Uncertificated Principal Balance of such
REMIC I Regular Interest. For

                                       34
<PAGE>

federal income tax purposes, the equivalent of clause (iii) above shall be
expressed as the weighted average of the Uncertificated REMIC I Pass-Through
Rates on (a) REMIC I Regular Interest LT-1SUB, subject to a cap and a floor
equal to the Group 1 Net WAC Rate and (b) REMIC I Regular Interest LT-2SUB,
subject to a cap and a floor equal to the Group 2 Net WAC Rate; in each case
weighted on the basis of the Uncertificated Principal Balance of such REMIC I
Regular Interests.

         Net Rate Carryover: With respect to any Distribution Date, an amount
equal to the sum of (i) the Class 1-A-1 Interest Carryover Amount for such
Distribution Date (if any), (ii) the Class 1-A-2 Interest Carryover Amount for
such Distribution Date (if any), (iii) the Class 2-A-1, Interest Carryover
Amounts for such Distribution Date (if any), (iv) the Class 2-A-2 Interest
Carryover Amount for such Distribution Date (if any), (v) the Class 2-A-3
Interest Carryover Amount for such Distribution Date (if any), (vi) the Class
M-1 Interest Carryover Amount for such Distribution Date (if any), (vii) the
Class M-2 Interest Carryover Amount for such Distribution Date (if any), (viii)
the Class M-3 Interest Carryover Amount for such Distribution Date (if any),
(ix) the Class M-4 Interest Carryover Amount for such Distribution Date (if
any), (x) the Class M-5 Interest Carryover Amount for such Distribution Date (if
any), (xii) the Class M-6 Interest Carryover Amount for such Distribution Date
(if any), (xii) the Class M-7 Interest Carryover Amount for such Distribution
Date (if any), (xiii) the Class M-8 Interest Carryover Amount for such
Distribution Date (if any), and (xiv) the Class B Interest Carryover Amount for
such Distribution Date (if any); provided that when the term Net Rate Carryover
is used with respect to one Class of Certificates (other than the Class A-R,
Class C and Class P Certificates), it shall mean such carryover amount listed in
clauses (i), (ii), (iii) (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii),
(xiii) or (xiv) as applicable, with the same Class designation. The Class A-R,
Class C and Class P Certificates shall not accrue any Net Rate Carryover.

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

         Nonrecoverable Advance: Any portion of an Advance previously made or
proposed to be made by the Master Servicer that, in the good faith judgment of
the Master Servicer, will not or, in the case of a current delinquency, would
not, be ultimately recoverable by the Master Servicer from the related
Mortgagor, related Liquidation Proceeds or otherwise.

         OC Floor: For any Distribution Date, 0.50% of the Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date.

         Offered Certificates: The Class 1-A-1, Class 1-A-2, Class 2-A-1, Class
2-A-2, Class 2-A-3, Class A-R, Class M-1, Class M-2, Class M-3, Class M-4, Class
M-5, Class M-6, Class M-7, Class M-8 and Class B Certificates.

         Officer's Certificate: A certificate (i) in the case of the Depositor,
signed by the Chairman of the Board, the Vice Chairman of the Board, the
President, a Managing Director, a Vice President (however denominated), an
Assistant Vice President, the Treasurer, the Secretary, or one of the Assistant
Treasurers or Assistant Secretaries of the Depositor, (ii) in the case of the
Master Servicer, (x) signed by the President, an Executive Vice President, a
Vice President, an Assistant Vice President, the Treasurer, or one of the
Assistant Treasurers or Assistant Secretaries or Countrywide GP, Inc., its
general partner, or (y) if provided for in this Agreement,

                                       35
<PAGE>

signed by a Servicing Officer, as the case may be, and delivered to the
Depositor and the Trustee, as the case may be, as required by this Agreement.

         One-Month LIBOR: With respect to any Accrual Period for the
Certificates (other than the Class A-R, Class P and Class C Certificates), the
rate determined by the Trustee on the related Interest Determination Date on the
basis of the rate for U.S. dollar deposits for one month that appears on
Telerate Screen Page 3750 as of 11:00 a.m. (London time) on such Interest
Determination Date; provided that the parties hereto acknowledge that One-Month
LIBOR calculated for the first Accrual Period shall equal 1.840% per annum. If
such rate does not appear on such page (or such other page as may replace that
page on that service, or if such service is no longer offered, such other
service for displaying One-Month LIBOR or comparable rates as may be reasonably
selected by the Trustee), One-Month LIBOR for the applicable Accrual Period will
be the Reference Bank Rate. If no such quotations can be obtained by the Trustee
and no Reference Bank Rate is available, One-Month LIBOR will be One-Month LIBOR
applicable to the preceding Accrual Period for such Certificates.

         One-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage Rate
that is fixed for 12 months after origination thereof before such Mortgage Rate
becomes subject to adjustment.

         Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Depositor or the Master Servicer, reasonably acceptable to each
addressee of such opinion; provided that with respect to Section 6.04 or 10.01,
or the interpretation or application of the REMIC Provisions, such counsel must
(i) in fact be independent of the Depositor and the Master Servicer, (ii) not
have any direct financial interest in the Depositor or the Master Servicer or in
any affiliate of either, and (iii) not be connected with the Depositor or the
Master Servicer as an officer, employee, promoter, underwriter, trustee,
partner, director or person performing similar functions.

         Optional Termination: The termination of the Trust Fund provided
hereunder pursuant to the liquidation of the Trust Fund by the Trustee upon the
surrender of the Class C Certificateholders of their interests or the purchase
of the Mortgage Loans by the Master Servicer pursuant to the last sentence of
Section 9.01 hereof.

         Optional Termination Date: Any Distribution Date on which the Stated
Principal Balance of the Mortgage Loans and REO Properties in the Trust Fund is
equal to or less than 10% of the Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date.

         Original Mortgage Loan: The mortgage loan refinanced in connection with
the origination of a Refinancing Mortgage Loan.

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

         OTS:  The Office of Thrift Supervision.

                                       36
<PAGE>

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

                  (i) Certificates theretofore canceled by the Trustee or
         delivered to the Trustee for cancellation; and

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

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

         Overcollateralized Amount: For any Distribution Date, the amount, if
any, by which (x) the aggregate Stated Principal Balance of the Mortgage Loans
as of the last day of the related Due Period exceeds (y) the aggregate
Certificate Principal Balance of the Offered Certificates as of such
Distribution Date (after giving effect to distributions in respect of the
Principal Remittance Amount on such Distribution Date).

         Overcollateralization Deficiency Amount: With respect to any
Distribution Date, the amount, if any, by which the Overcollateralization Target
Amount exceeds the Overcollateralized Amount for such Distribution Date (after
giving effect to distributions in respect of the Principal Remittance Amount for
such Distribution Date).

         Overcollateralization Reduction Amount: For any Distribution Date for
which the Excess Overcollateralization Amount is, or would be, after taking into
account all other distributions to be made on that Distribution Date, greater
than zero, an amount equal to the lesser of (i) the Excess Overcollateralization
Amount for that Distribution Date and (ii) the Principal Remittance Amount for
that Distribution Date.

         Overcollateralization Target Amount: (a) on each Distribution Date
prior to the Stepdown Date, 2.00% of the Cut-off Date Pool Principal Balance,
and (b) on and after the Stepdown Date, an amount equal to 4.00% of the
aggregate Stated Principal Balance of the Mortgage Loans in the Mortgage Pool
for the current Distribution Date, subject to a minimum amount equal to the OC
Floor; provided, however, that if on any Distribution Date, a Trigger Event is
in effect, the Overcollateralization Target Amount will be the
Overcollateralization Target Amount on the Distribution Date immediately
preceding such Distribution Date.

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

         Pass-Through Rate: With respect to the Class 1-A-1 Certificates, the
Class 1-A-1 Pass-Through Rate; with respect to the Class 1-A-2 Certificates, the
Class 1-A-2 Pass-Through Rate, with respect to the Class 2-A-1 Certificates, the
Class 2-A-1 Pass-Through Rate; with respect to the Class 2-A-2 Certificates, the
Class 2-A-2 Pass-Through Rate, with respect to the Class 2-A-3 Certificates, the
Class 2-A-3 Pass-Through Rate with respect to the Class M-1 Certificates, the

                                       37
<PAGE>

Class M-1 Pass-Through Rate; with respect to the Class M-2 Certificates, the
Class M-2 Pass-Through Rate; with respect to the Class M-3 Certificates, the
Class M-3 Pass-Through Rate; with respect to the Class M-4 Certificates, the
Class M-4 Pass-Through Rate; with respect to the Class M-5 Certificates, the
Class M-5 Pass-Through Rate; with respect to the Class M-6 Certificates, the
Class M-6 Pass-Through Rate; with respect to the Class M-7 Certificates, the
Class M-7 Pass-Through Rate; with respect to the Class M-8 Certificates, the
Class M-8 Pass-Through Rate; with respect to the Class B Certificates, the Class
B Pass-Through Rate and with respect to the Class C Certificates, the Class C
Pass-Through Rate.

         Percentage Interest: With respect to any Certificate (other than the
Class P, Class C or Class A-R Certificates), a fraction, expressed as a
percentage, the numerator of which is the Certificate Principal Balance
represented by such Certificate and the denominator of which is the aggregate
Certificate Principal Balance of the related Class. With respect to the Class C,
Class P and Class A-R Certificates, the portion of the Class evidenced thereby,
expressed as a percentage, as stated on the face of such Certificate.

         Periodic Rate Cap: As to substantially all Adjustable Rate Mortgage
Loans and the related Mortgage Notes, the provision therein that limits
permissible increases and decreases in the Mortgage Rate on any Adjustment Date
to not more than three percentage points.

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

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

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

          (iii) [Reserved];

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

          (v) certificates of deposit, demand or time deposits, or bankers'
     acceptances issued by any depository institution or trust company
     incorporated under the laws of the United States or of any state thereof
     and subject to supervision and examination by federal and/or state banking
     authorities, provided that the commercial paper and/or long term unsecured
     debt obligations of such depository institution or trust company (or in the
     case of the principal depository institution in a holding company system,
     the commercial paper or long-term unsecured debt obligations of such
     holding company) are then rated one of the two highest long-term and the
     highest short-term ratings of each such Rating

                                       38
<PAGE>

     Agency for such securities, or such lower ratings as each Rating Agency has
     confirmed in writing will not result in the downgrading or withdrawal of
     the rating then assigned to the Certificates by such Rating Agency;

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

          (vii) securities (other than stripped bonds, stripped coupons or
     instruments sold at a purchase price in excess of 115% of the face amount
     thereof) bearing interest or sold at a discount issued by any corporation
     incorporated under the laws of the United States or any state thereof
     which, at the time of such investment, have one of the two highest long
     term ratings of each Rating Agency (such rating shall be the highest
     commercial paper rating of S&P for any such securities) or such lower
     rating as each Rating Agency has confirmed in writing will not result in
     the downgrading or withdrawal of the rating then assigned to the
     Certificates by such Rating Agency;

          (viii) interests in any money market fund which at the date of
     acquisition of the interests in such fund and throughout the time such
     interests are held in such fund has the highest applicable long term rating
     by each Rating Agency or such lower rating as each Rating Agency has
     confirmed in writing will not result in the downgrading or withdrawal of
     the ratings then assigned to the Certificates by such Rating Agency;

          (ix) short term investment funds sponsored by any trust company or
     national banking association incorporated under the laws of the United
     States or any state thereof which on the date of acquisition has been rated
     by each Rating Agency in their respective highest applicable rating
     category or such lower rating as each Rating Agency has confirmed in
     writing will not result in the downgrading or withdrawal of the ratings
     then assigned to the Certificates by such Rating Agency; and

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

          (xi) provided, that no such instrument shall be a Permitted Investment
     if such instrument (i) evidences the right to receive interest only
     payments with respect to the obligations underlying such instrument, (ii)
     is purchased at a premium or (iii) is purchased at a deep discount;
     provided further that no such instrument shall be a Permitted Investment
     (A) if such instrument evidences principal and interest payments derived
     from obligations underlying such instrument and the interest payments with
     respect to such instrument provide a yield to maturity of greater than 120%
     of the yield to maturity at par of such underlying obligations, or (B) if
     it may be redeemed at a price below the purchase price (the foregoing
     clause (B) not to apply to investments in units of money market funds
     pursuant to clause (vii) above); provided further that no amount
     beneficially owned by any REMIC (including, without limitation, any amounts
     collected

                                       39
<PAGE>

     by the Master Servicer but not yet deposited in the Certificate Account)
     may be invested in investments (other than money market funds) treated as
     equity interests for Federal income tax purposes, unless the Master
     Servicer shall receive an Opinion of Counsel, at the expense of Master
     Servicer, to the effect that such investment will not adversely affect the
     status of any such REMIC as a REMIC under the Code or result in imposition
     of a tax on any such REMIC. Permitted Investments that are subject to
     prepayment or call may not be purchased at a price in excess of par.

         Permitted Transferee: Any person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code) that
is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
by section 511 of the Code on unrelated business taxable income) on any excess
inclusions (as defined in section 860E(c)(1) of the Code) with respect to any
Class A-R Certificate, (iv) rural electric and telephone cooperatives described
in section 1381(a)(2)(C) of the Code, (v) an "electing large partnership" as
defined in Section 775 of the Code, (vi) a Person that is not a citizen or
resident of the United States, a corporation, partnership, or other entity
(treated as a corporation or a partnership for federal income tax purposes)
created or organized in or under the laws of the United States, any state
thereof or the District of Columbia, or an estate whose income from sources
without the United States is includible in gross income for United States
federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States, or a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States persons have authority to control all
substantial decisions of the trustor unless such Person has furnished the
transferor and the Trustee with a duly completed Internal Revenue Service Form
W-8ECI, and (vii) any other Person so designated by the Trustee based upon an
Opinion of Counsel that the Transfer of an Ownership Interest in a Class A-R
Certificate to such Person may cause any REMIC to fail to qualify as a REMIC at
any time that any Certificates are Outstanding. The terms "United States,"
"State" and "International Organization" shall have the meanings set forth in
section 7701 of the Code or successor provisions. A corporation will not be
treated as an instrumentality of the United States or of any State or political
subdivision thereof for these purposes if all of its activities are subject to
tax and, with the exception of the Federal Home Loan Mortgage Corporation, a
majority of its board of directors is not selected by such government unit.

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

         Pool Stated Principal Balance: As to any Distribution Date, the
aggregate of the Stated Principal Balances of the Mortgage Loans which were
Outstanding Mortgage Loans as of the first day of the related Due Period (after
giving effect to Principal Prepayments in the Prepayment Period including during
such Due Period).

         Prepayment Assumption: The applicable rate of prepayment, as described
in the Prospectus Supplement relating to the Offered Certificates.

                                       40
<PAGE>

         Prepayment Charge: As to a Mortgage Loan, any charge paid by a
Mortgagor in connection with certain partial prepayments and all prepayments in
full made within the related Prepayment Charge Period, the Prepayment Charges
with respect to each applicable Mortgage Loan being identified in the Prepayment
Charge Schedule.

         Prepayment Charge Period: As to any Mortgage Loan the period of time
during which a Prepayment Charge may be imposed.

         Prepayment Charge Schedule: As of any date, the list of Prepayment
Charges included in the Trust Fund on that date, (including the prepayment
charge summary attached thereto). The Prepayment Charge Schedule shall contain
the following information with respect to each Prepayment Charge:

                  (i) the Mortgage Loan account number;

                  (ii) a code indicating the type of Prepayment Charge;

                  (iii) the state of origination in which the related Mortgage
         Property is located;

                  (iv) the first date on which a Monthly Payment is or was due
         under the related Mortgage Note;

                  (v) the term of the Prepayment Charge;

                  (vi) the original principal amount of the related Mortgage
         Loan; and

                  (vii) the Cut-off Date Principal Balance of the related
         Mortgage Loan.

         The Prepayment Charge Schedule shall be amended from time to time by
the Master Servicer in accordance with this Agreement.

         Prepayment Interest Excess: With respect to any Distribution Date, for
each Mortgage Loan that was the subject of a Principal Prepayment during the
portion of the Prepayment Period from the related Due Date to the end of such
Prepayment Period, any payment of interest received in connection therewith (net
of any applicable Servicing Fee) representing interest accrued for any portion
of such month of receipt.

         Prepayment Interest Shortfall: With respect to any Distribution Date,
for each Mortgage Loan that was the subject of a partial Principal Prepayment, a
Principal Prepayment in full, or that became a Liquidated Loan during the
portion of the Prepayment Period from the beginning of such Prepayment Period to
the related Due Date in such Prepayment Period (in each case, other than a
Principal Prepayment in full resulting from the purchase of a Mortgage Loan
pursuant to Section 2.02, 2.03, 2.04, 3.12 or 9.01 hereof), the amount, if any,
by which (i) one month's interest at the applicable Net Mortgage Rate on the
Stated Principal Balance of such Mortgage Loan immediately prior to such
prepayment (or liquidation) or in the case of a partial Principal Prepayment on
the amount of such prepayment (or liquidation proceeds) exceeds (ii) the amount
of interest paid or collected in connection with such Principal Prepayment or
such liquidation proceeds.

                                       41
<PAGE>

         Prepayment Period: As to any Distribution Date and Due Date, the period
beginning with the opening of business on the sixteenth day of the calendar
month preceding the month in which such Distribution Date occurs (or, with
respect to the first Distribution Date, the period from October 1, 2004) and
ending on the close of business on the fifteenth day of the month in which such
Distribution Date occurs.

         Prime Rate: The prime commercial lending rate of The Bank of New York,
as publicly announced to be in effect from time to time. The Prime Rate shall be
adjusted automatically, without notice, on the effective date of any change in
such prime commercial lending rate. The Prime Rate is not necessarily the Bank
of New York's lowest rate of interest.

         Principal Distribution Amount: With respect to any Distribution Date
and a Loan Group, the sum of (i) the Principal Remittance Amount for such Loan
Group for such Distribution Date and (ii) the Extra Principal Distribution
Amount for such Loan Group for such Distribution Date minus (iii) the amount of
any related Overcollateralization Reduction Amount for that Distribution Date.

         Principal Prepayment: Any Mortgagor payment or other recovery of (or
proceeds with respect to) principal on a Mortgage Loan (including loans
purchased or repurchased under Sections 2.02, 2.03, 2.04, 3.12 and 9.01 hereof)
that is received in advance of its scheduled Due Date and is not accompanied by
an amount as to interest representing scheduled interest due on any date or
dates in any month or months subsequent to the month of prepayment. Partial
Principal Prepayments shall be applied by the Master Servicer in accordance with
the terms of the related Mortgage Note.

         Principal Remittance Amount: As to any Distribution Date and the
Mortgage Loans in a Loan Group, (a) the sum, without duplication, of: (i) the
scheduled principal due during the related Due Period and collected on or before
the related Determination Date or advanced on or before the related Master
Servicer Advance Date, (ii) Principal Prepayments collected in the related
Prepayment Period, (iii) the Stated Principal Balance of each Mortgage Loan that
was repurchased by the Seller or purchased by the Master Servicer, (iv) the
amount, if any, by which the aggregate unpaid principal balance of any
Replacement Mortgage Loans is less than the aggregate unpaid principal balance
of any Deleted Mortgage Loans delivered by the Seller in connection with a
substitution of a Mortgage Loan and (v) all Liquidation Proceeds and Subsequent
Recoveries collected during the related Due Period (to the extent such
Liquidation Proceeds related to principal); less (b) all non-recoverable
Advances relating to principal and certain expenses reimbursed during the
related Due Period.

         Private Certificates: The Class C Certificates and Class P
Certificates.

         Prospectus Supplement: The Prospectus Supplement dated October 25,
2004, relating to the public offering of the Offered Certificates offered
thereby.

         PUD:  A Planned Unit Development.

         Purchase Price: With respect to any Mortgage Loan (x) required to be
(1) repurchased by the Seller or purchased by the Master Servicer, as
applicable, pursuant to Section 2.02, 2.03 or

                                       42
<PAGE>

3.12 hereof or (2) repurchased by the Depositor pursuant to Section 2.04 hereof,
or (y) that the Master Servicer has a right to purchase pursuant to Section 3.12
hereof, an amount equal to the sum of (i) 100% of the unpaid principal balance
(or, if such purchase or repurchase, as the case may be, is effected by the
Master Servicer, the Stated Principal Balance) of the Mortgage Loan as of the
date of such purchase, (ii) accrued interest thereon at the applicable Mortgage
Rate (or, if such purchase or repurchase, as the case may be, is effected by the
Master Servicer, at the Net Mortgage Rate) from (a) the date through which
interest was last paid by the Mortgagor (or, if such purchase or repurchase, as
the case may be, is effected by the Master Servicer, the date through which
interest was last advanced and not reimbursed by the Master Servicer) to (b) the
Due Date in the month in which the Purchase Price is to be distributed to
Certificateholders, and (iii) costs and damages incurred by the Trust Fund in
connection with a repurchase pursuant to Section 2.03 hereof that arises out of
a violation of any predatory or abusive lending law which also constitutes an
actual breach of representation (xxxiv) of Section 2.03(b) hereof.

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

         Realized Loss: With respect to each Liquidated Loan, an amount (not
less than zero or more than the Stated Principal Balance of the Mortgage Loan)
as of the date of such liquidation, equal to (i) the Stated Principal Balance of
such Liquidated Loan as of the date of such liquidation, minus (ii) the
Liquidation Proceeds, if any, received in connection with such liquidation
during the month in which such liquidation occurs, to the extent applied as
recoveries of principal of the Liquidated Loan. With respect to each Mortgage
Loan that has become the subject of a Deficient Valuation, (i) if the value of
the related Mortgaged Property was reduced below the principal balance of the
related Mortgage Note, the amount by which the value of the Mortgaged Property
was reduced below the principal balance of the related Mortgage Note, and (ii)
if the principal amount due under the related Mortgage Note has been reduced,
the difference between the principal balance of the Mortgage Loan outstanding
immediately prior to such Deficient Valuation and the principal balance of the
Mortgage Loan as reduced by the Deficient Valuation plus any reduction in the
interest component of the Scheduled Payments. With respect to each Mortgage Loan
that has become the subject of a Debt Service Reduction and any Distribution
Date, the amount, if any, by which the related Scheduled Payment was reduced.
The amount of a Realized Loss on a Liquidated Loan will be reduced by the amount
of Subsequent Recoveries received with respect to such Liquidated Loan.

         Record Date: With respect to any Distribution Date and the
Certificates, other than the Class A-R, Class C and Class P Certificates, the
Business Day immediately preceding such Distribution Date, or if such
Certificates are no longer Book-Entry Certificates, the last Business Day of the
month preceding the month of such Distribution Date. With respect to the Class
A-R, Class C and Class P Certificates, the last Business Day of the month
preceding the month of a Distribution Date.

         Reference Bank Rate: With respect to any Accrual Period for the Offered
Certificates (other than the Class A-R, Class P and Class C Certificates), the
arithmetic mean (rounded

                                       43
<PAGE>

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

         Reference Banks: Barclays Bank PLC, Deutsche Bank and NatWest, N.A.,
provided that if any of the foregoing banks are not suitable to serve as a
Reference Bank, then any leading banks selected by the Trustee which are engaged
in transactions in Eurodollar deposits in the international Eurocurrency market
(i) with an established place of business in London, England, (ii) not
controlling, under the control of or under common control with the Depositor or
any affiliate thereof and (iii) which have been designated as such by the
Trustee.

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

         Regular Certificate: Any Certificate other than a Class A-R
Certificate.

         Relief Act:  The Servicemembers Civil Relief Act.

         REMIC: A "real estate mortgage investment conduit" within the meaning
of Section 860D of the Code.

         REMIC I: The segregated pool of assets subject hereto, constituting a
portion of the primary trust created hereby and to be administered hereunder,
with respect to which a separate REMIC election is to be made, consisting of:
(i) the Mortgage Loans and the related Mortgage Files; (ii) all payments on and
collections in respect of the Mortgage Loans due after the Cut-off Date (other
than Monthly Payments due in July 2004 and reflected in the Cut-off Date
Principal Balance) as shall be on deposit in the Certificate Account and
identified as belonging to the Trust Fund; (iii) property which secured a
Mortgage Loan and which has been acquired for the benefit of the
Certificateholders by foreclosure or deed in lieu of foreclosure; (iv) Required
Insurance Policies pertaining to the Mortgage Loans, if any; and (v) all
proceeds of clauses (i) through (iv) above. The Corridor Contracts and Carryover
Reserve Fund will not be assets of REMIC I.

         REMIC I Interest Loss Allocation Amount: With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Uncertificated Principal Balance of the REMIC I Regular Interests then
outstanding and (ii) the Uncertificated Pass-Through Rate for REMIC I Regular
Interest LT-AA minus the Marker Rate, divided by (b) 12.

                                       44
<PAGE>

         REMIC I Marker Allocation Percentage: 50% of any amount payable or loss
attributable from the Mortgage Loans, which shall be allocated to REMIC I
Regular Interest LT-AA, REMIC I Regular Interest LT-1A1, REMIC I Regular
Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest
LT-2A2, REMIC I Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I
Regular Interest LT-M2, REMIC I Regular Interest LT-M3, REMIC I Regular Interest
LT-M4, REMIC I Regular Interest LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1
Regular Interest LT-M7, REMIC Regular Interest LT-M8, REMIC I Regular Interest
LT-B, REMIC I Regular Interest LT-ZZ, REMIC I Regular Interest LT-P and REMIC I
Regular Interest LT-R.

         REMIC I Overcollateralized Amount: With respect to any date of
determination, (i) 0.50% of the aggregate Uncertificated Principal Balances of
the REMIC I Regular Interests minus (ii) the Uncertificated Principal Balances
of REMIC I Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I
Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I Regular
Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I Regular Interest LT-M2,
REMIC I Regular Interest LT-M3, REMIC I Regular Interest LT-M4, REMIC I Regular
Interest LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7,
REMIC Regular Interest LT-M8, and REMIC I Regular Interest LT-B, in each case as
of such date of determination.

         REMIC I Overcollateralization Target Amount: 0.50% of the
Overcollateralization Target Amount.

         REMIC I Principal Loss Allocation Amount: With respect to any
Distribution Date, an amount equal to the product of (i) the aggregate Stated
Principal Balance of the Mortgage Loans then outstanding and (ii) 1 minus a
fraction, the numerator of which is two times the sum of the Uncertificated
Principal Balances of REMIC I Regular Interests LT-1A1, LT-1A2, LT-2A1, LT-2A2,
LT-2A3, LT-M1, LT-M2, LT-M3, LT-M4, LT-M5, REMIC 1 Regular Interest LT-M6, REMIC
1 Regular Interest LT-M7, LT-M8, and LT-B and the denominator of which is the
sum of the Uncertificated Principal Balances of REMIC I Regular Interests
LT-1A1, LT-1A2, LT-2A1, LT-2A2, LT-2A3, LT-M1, LT-M2, LT-M3, LT-M4, LT-M5,
LT-M6, LT-M7, LT-M8, LT-B and LT-ZZ.

         REMIC I Regular Interests: REMIC I Regular Interest LT-AA, REMIC I
Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I Regular
Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I Regular Interest
LT-2A3, REMIC I Regular Interest LT-M1, REMIC I Regular Interest LT-M2, REMIC I
Regular Interest LT-M3, REMIC I Regular Interest LT-M4, REMIC I Regular Interest
LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M-7, REMIC
Regular Interest LT-M8,REMIC I Regular Interest LT-B, REMIC I Regular Interest
LT-ZZ, REMIC, REMIC I Regular Interest LT-P, REMIC I Regular Interest LT-R,
REMIC I Regular Interest LT-1SUB, REMIC I Regular Interest LT-1GRP, REMIC I
Regular Interest LT-2SUB, REMIC I Regular Interest LT-2GRP and REMIC I Regular
Interest LT-XX.

         REMIC I Regular Interest LT-AA: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal

                                       45
<PAGE>

Balance, that bears interest at the related Uncertificated REMIC I Pass-Through
Rate, and that has such other terms as are described herein.

         REMIC I Regular Interest LT-1A1: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-1A2: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-2A1: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-2A2: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-2A3: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-M1: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-M2: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-M3: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-M4: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

                                       46
<PAGE>

         REMIC I Regular Interest LT-M5: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-M6: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-M7: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-M8: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-B: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-ZZ: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-P: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-R: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-1SUB: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-1GRP: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated

                                       47
<PAGE>

Principal Balance, that bears interest at the related Uncertificated REMIC I
Pass-Through Rate, and that has such other terms as are described herein.

         REMIC I Regular Interest LT-2SUB: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-2GRP: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-XX: A regular interest in REMIC I that is
held as an asset of REMIC II, that has an initial principal balance equal to the
related Uncertificated Principal Balance, that bears interest at the related
Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are
described herein.

         REMIC I Regular Interest LT-ZZ Maximum Interest Deferral Amount: With
respect to any Distribution Date, the sum of (a) the excess of (i)
Uncertificated Accrued Interest calculated with the Uncertificated Pass-Through
Rate for REMIC I Regular Interest LT-ZZ and an Uncertificated Principal Balance
equal to the excess of (x) the Uncertificated Principal Balance of REMIC I
Regular Interest LT-ZZ over (y) the REMIC I Overcollateralized Amount, in each
case for such Distribution Date, over (ii) Uncertificated Accrued Interest on
REMIC I Regular Interests LT-1A1, LT-1A2, LT-2A1, LT-2A2, LT-2A3, LT-M1, LT-M2,
LT-M3, LT-M4, LT-M5, LT-M6, LT-M7, LT-M8 and LT-B, with the rate on each such
REMIC I Regular Interest subject to a cap equal to the Pass-Through Rate on the
Corresponding Certificate for the purpose of this calculation.

         REMIC I Sub WAC Allocation Percentage: 50% of any amount payable or
loss attributable from the Mortgage Loans, which shall be allocated to REMIC I
Regular Interest LT-1SUB, REMIC I Regular Interest LT-1GRP, REMIC I Regular
Interest LT-2SUB, REMIC I Regular Interest LT2-GRP and REMIC I Regular Interest
LT-XX.

         REMIC I Subordinated Balance Ratio: The ratio among the Uncertificated
Principal Balances of each REMIC I Regular Interest ending with the designation
"SUB,", equal to the ratio among, with respect to each such REMIC I Regular
Interest, the excess of (x) the aggregate Stated Principal Balance of the
Mortgage Loans in the related Loan Group over (y) the Certificate Principal
Balance of the Class A Certificates, Class R Certificates and Class P
Certificates in the related Loan Group.

         REMIC II Regular Certificates: Any of the Class 1-A-1, Class 1-A-2,
Class 2-A-1, Class 2-A-2, Class 2-A-3, Class M-1, Class M-2, Class M-3, Class
M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class B, Class C or Class P
Certificates.

         REMIC Provisions: Provisions of the federal income tax law relating to
real estate mortgage investment conduits, which appear at Sections 860A through
860G of Subchapter M of

                                       48
<PAGE>

Chapter 1 of the Code, and related provisions, and temporary and final
regulations (or, to the extent not inconsistent with such temporary or final
regulations, proposed regulations) and published rulings, notices and
announcements promulgated thereunder, as the foregoing may be in effect from
time to time.

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

         Replacement Mortgage Loan: A Mortgage Loan substituted by the Seller
for a Deleted Mortgage Loan, which must, on the date of such substitution, as
confirmed in a Request for Release, substantially in the form of Exhibit N, (i)
have a Stated Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of substitution, not in excess of, and not
less than 90% of the Stated Principal Balance of the Deleted Mortgage Loan; (ii)
with respect to any Fixed Rate Mortgage Loan, have a Mortgage Rate not less than
or no more than 1% per annum higher than the Mortgage Rate of the Deleted
Mortgage Loan and, with respect to any Adjustable Rate Mortgage Loan: (a) have a
Maximum Mortgage Rate no more than 1% per annum higher or lower than the Maximum
Mortgage Rate of the Deleted Mortgage Loan; (b) have a Minimum Mortgage Rate no
more than 1% per annum higher or lower than the Minimum Mortgage Rate of the
Deleted Mortgage Loan; (c) have the same Index, Periodic Rate Cap and intervals
between Adjustment Dates as that of the Deleted Mortgage Loan and a Gross Margin
not more than 1% per annum higher or lower than that of the Deleted Mortgage
Loan; and (d) not permit conversion of the related Mortgage Rate to a fixed
Mortgage Rate; (iii) have the same or higher credit quality characteristics than
that of the Deleted Mortgage Loan; (iv) at the time of transfer to the Trust
Fund, be accruing interest at a Mortgage Rate not more than 1% per annum higher
or lower than that of the Deleted Mortgage Loan; (v) have a Loan-to-Value Ratio
no higher than that of the Deleted Mortgage Loan; (vi) have a remaining term to
maturity no greater than (and not more than one year less than) that of the
Deleted Mortgage Loan; (vii) not permit conversion of the Mortgage Rate from a
fixed rate to a variable rate or visa versa; (viii) provide for a prepayment
charge on terms substantially similar to those of the prepayment charge, if any,
of the Deleted Mortgage Loan; (ix) have the same lien priority as the Deleted
Mortgage Loan; (x) constitute the same occupancy type as the Deleted Mortgage
Loan; (xi) [reserved], and (xii) comply with each representation and warranty
(other than a statistical representation or warranty) set forth in Section 2.03
hereof.

         Request for Release: The Request for Release submitted by the Master
Servicer to the Trustee, substantially in the form of Exhibits M and N, as
appropriate.

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

         Responsible Officer: When used with respect to the Trustee, any Vice
President, any Assistant Vice President, the Secretary, any Assistant Secretary,
any Trust Officer or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also to whom, with respect to a particular matter, such matter is referred
because of such officer's knowledge of and familiarity with the particular
subject.

                                       49
<PAGE>

         Rolling Delinquency Percentage: With respect to any Distribution Date
on or after the Stepdown Date, the average, over the past three months, of a
fraction (expressed as a percentage), (a) the numerator of which is the
aggregate Stated Principal Balances for such Distribution Date of all Mortgage
Loans 60 or more days delinquent as of the last day of the preceding month
(including Mortgage Loans in bankruptcy, foreclosure and REO Properties) and (b)
the denominator of which is the aggregate Stated Principal Balances of the
Mortgage Loans for such Distribution Date.

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

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

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

         Seller: Countrywide Home Loans, Inc., a New York corporation, and its
successors and assigns, in its capacity as seller of the Mortgage Loans to the
Depositor.

         Seller Shortfall Interest Requirement: For the Master Servicer Advance
Date in November 2004, to the extent not cover by Excess Cashflow, an amount
equal to 30 days interest on the Stated Principal Balance of each Mortgage Loans
that does not have a scheduled payment of interest due in the related Due Period
at the Net Mortgage Rates for such Mortgage Loans.

         Senior Certificates: The Class 1-A-1, Class 1-A-2, Class 2-A-1, Class
2-A-2, Class 2-A-3 and Class A-R Certificates.

         Senior Enhancement Percentage: With respect to each Distribution Date
on or after the Stepdown Date, the fraction (expressed as a percentage) (1) the
numerator of which is the excess of (a) the aggregate Stated Principal Balance
of the Mortgage Loans for the preceding Distribution Date over (b) (i) before
the aggregate Certificate Principal Balance of the Senior Certificates has been
reduced to zero, the aggregate Certificate Principal Balance of the Senior
Certificates, or (ii) after the Certificate Principal Balances of the Senior
Certificates have been reduced to zero, the Certificate Principal Balance of the
most senior Class of Certificates outstanding as of the preceding Master
Servicer Advance Date and (2) the denominator of which is the aggregate Stated
Principal Balance of the Mortgage Loans for the preceding Distribution Date.

         Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Master Servicer of
its servicing obligations hereunder, including, but not limited to, the cost of
(i) the preservation, restoration and protection of a Mortgaged Property, (ii)
any enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of any REO Property and (iv) compliance with the
obligations under Section 3.10.

                                       50
<PAGE>

         Servicing Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to one month's interest at the Servicing Fee Rate on the Stated
Principal Balance of such Mortgage Loan or, in the event of any payment of
interest that accompanies a Principal Prepayment in full made by the Mortgagor,
interest at the Servicing Fee Rate on the Stated Principal Balance of such
Mortgage Loan for the period covered by such payment of interest.

         Servicing Fee Rate:  With respect to each Mortgage Loan, 0.50% per
annum.

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

         Stated Principal Balance: With respect to any Mortgage Loan or related
REO Property (i) as of the Cut-off Date, the unpaid principal balance of the
Mortgage Loan as of such date (before any adjustment to the amortization
schedule for any moratorium or similar waiver or grace period), after giving
effect to any partial Prepayments or Liquidation Proceeds received prior to such
date and to the payment of principal due on or prior to such date and
irrespective any delinquency in payment by the related mortgagor with respect to
Actuarial Mortgage Loans, and (ii) as of any Distribution Date, the Stated
Principal Balance of the Mortgage Loan as of its Cut-off Date, minus the sum of
(a) the principal portion of the Scheduled Payments (x) due with respect to such
Mortgage Loan during each Due Period ending prior to such Distribution Date and
(y) that were received by the Master Servicer as of the close of business on the
Determination Date related to such Distribution Date or with respect to which
Advances were made as of the Master Servicer Advance Date related to such
Distribution Date, (b) all Principal Prepayments with respect to such Mortgage
Loan received by the Master Servicer during each Prepayment Period ending prior
to such Distribution Date, and (c) all Liquidation Proceeds collected with
respect to such Mortgage Loan during each Due Period ending prior to such
Distribution Date, to the extent applied by the Master Servicer as recoveries of
principal in accordance with Section 3.12. The Stated Principal Balance of any
Mortgage Loan that becomes a Liquidated Loan will be zero on the Distribution
Date following the Due Period in which such Mortgage Loan becomes a Liquidated
Loan. References herein to the Stated Principal Balance the Mortgage Loans at
any time shall mean the aggregate Stated Principal Balances of all Mortgage
Loans in the Trust Fund as of such time.

         Stepdown Date: The earlier to occur of (i) the Distribution Date
following the Distribution Date on which the aggregate Certificate Principal
Balance of the Senior Certificates is reduced to zero and (ii) the later to
occur of (a) the Distribution Date in November 2007 or (b) the first
Distribution Date on which the aggregate Certificate Principal Balance of the
Senior Certificates (after calculating anticipated distributions on such
Distribution Date) is less than or equal to 67.90% of the aggregate Stated
Principal Balance of the Mortgage Loans for such Distribution Date.

         Subordinate Certificates: The Class M-1, Class M-2, Class M-3, Class
M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B Certificates.

                                       51
<PAGE>

         Subordinated Corridor Contract: The transaction evidenced by the
Confirmation and Agreement for the benefit of the Subordinate Certificateholders
(as assigned to the Trustee pursuant to the Subordinated Corridor Contract
Novation Agreement), a form of which is attached hereto as Exhibit S.

         Subordinated Corridor Contract Novation Agreement: The Novation
Agreement regarding the Subordinated Corridor Contract dated as of the Closing
Date among the Seller, the Trustee and the Corridor Contract Counterparty, which
is attached hereto as Exhibit S.

         Subordinated Corridor Contract Payment Amount: The amount, if any,
received by the Trustee for the benefit of the Trust Fund in respect of the
Subordinated Corridor Contract.

         Subordinated Corridor Contract Termination Date: The Distribution Date
in November 2011.

         Subordinated Confirmation And Agreement: The Confirmation and Agreement
dated October 13, 2004, reference number FXNEC6366, evidencing the Subordinated
Corridor Contract.

         Subservicer:  As defined in Section 3.02(a).

         Subservicing Agreement:  As defined in Section 3.02(a).

         Subsequent Recoveries: Unexpected recoveries, net of reimbursable
expenses, with respect to Mortgage Loans that have been previously liquidated
and that resulted in a Realized Loss.

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

         Substitution Amount: With respect to any Mortgage Loan substituted
pursuant to Section 2.03(c), the excess of (x) the principal balance of the
Mortgage Loan that is substituted for, over (y) the principal balance of the
related substitute Mortgage Loan, each balance being determined as of the date
of substitution.

         Tax Matters Person: The person designated as "tax matters person" in
the manner provided under Treasury regulation ss. 1.860F 4(d) and temporary
Treasury regulation ss. 301.6231(a)(7) 1T. Initially, this person shall be the
Trustee.

         Tax Matters Person Certificate: The Class A-R Certificate with a
Denomination of $0.05.

         Three-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage Rate
that is fixed for 36 months after origination thereof before such Mortgage Rate
becomes subject to adjustment.

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

                                       52
<PAGE>

         Trigger Event: With respect to any Distribution Date on or after the
Stepdown Date, either a Delinquency Trigger Event or a Cumulative Loss Trigger
Event with respect to that Distribution Date.

         Trust Fund: The corpus of the trust created hereunder consisting of (i)
the Mortgage Loans and all interest and principal received on or with respect
thereto on and after the Cut-off Date to the extent not applied in computing the
Cut-off Date Principal Balance thereof, exclusive of interest not required to be
deposited in the Certificate Account pursuant to Section 3.05(b)(ii); (ii) the
Certificate Account, the Distribution Account, the Carryover Reserve Fund and
all amounts deposited therein pursuant to the applicable provisions of this
Agreement; (iii) the Corridor Contracts; (iv) property that secured a Mortgage
Loan and has been acquired by foreclosure, deed in lieu of foreclosure or
otherwise; (v) the mortgagee's rights under any insurance policies with respect
to the Mortgage Loan; and (vi) all proceeds of the conversion, voluntary or
involuntary, of any of the foregoing into cash or other liquid property.

         Trustee: The Bank of New York, a New York banking corporation, not in
its individual capacity, but solely in its capacity as trustee for the benefit
of the Certificateholders under this Agreement, and any successor thereto, and
any corporation or national banking association resulting from or surviving any
consolidation or merger to which it or its successors may be a party and any
successor trustee as may from time to time be serving as successor trustee
hereunder.

         Trustee Advance Rate: With respect to any Advance made by the Trustee
pursuant to Section 4.01(b), a per annum rate of interest determined as of the
date of such Advance equal to the Prime Rate in effect on such date plus 5.00%.

         Trustee Fee: As to any Distribution Date, an amount equal to
one-twelfth of the Trustee Fee Rate multiplied by the aggregate Stated Principal
Balance of the Mortgage Loans for such Distribution Date.

         Trustee Fee Rate: With respect to each Mortgage Loan, 0.009% per annum.

         Two-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage Rate
that is fixed for 24 months after origination thereof before such Mortgage Rate
becomes subject to adjustment.

         Uncertificated Accrued Interest: With respect to any Uncertificated
Regular Interest for any Distribution Date, one month's interest at the related
Uncertificated Pass-Through Rate for such Distribution Date, accrued on the
Uncertificated Principal, immediately prior to such Distribution Date.
Uncertificated Accrued Interest for the Uncertificated Regular Interests shall
accrue on the basis of a 360-day year consisting of twelve 30-day months. For
purposes of calculating the amount of Uncertificated Accrued Interest for the
REMIC I Regular Interests for any Distribution Date:

         (A) The REMIC I Marker Allocation Percentage of the aggregate amount of
any Prepayment Interest Shortfalls (to the extent not covered by Compensating
Interest) incurred in respect of the Mortgage Loans for any Distribution Date
shall be allocated among REMIC I

                                       53
<PAGE>

Regular Interest LT-AA, REMIC I Regular Interest LT-1A1, REMIC I Regular
Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest
LT-2A2, REMIC I Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I
Regular Interest LT-M2, REMIC I Regular Interest LT-M3, REMIC I Regular Interest
LT-M4, REMIC I Regular Interest LT-M5, REMIC 1 REGULAR Interest LT-M6, REMIC 1
Regular Interest LT-M7, REMIC 1 Regular Interest LT-M8, REMIC I Regular Interest
LT-B, REMIC I Regular Interest LT-ZZ, pro rata based on, and to the extent of,
one month's interest at the then applicable respective REMIC I Pass-Through Rate
on the respective Uncertificated Principal Balance of each such REMIC I Regular
Interest; and

         (B) The REMIC I Sub WAC Allocation Percentage of the aggregate amount
of any Prepayment Interest Shortfalls (to the extent not covered by payments by
Compensating Interest) incurred in respect of the Mortgage Loans for any
Distribution Date shall be allocated first, to Uncertificated Accrued Interest
payable to REMIC I Regular Interest LT-1SUB, REMIC I Regular Interest LT-1GRP,
REMIC I Regular Interest LT-2SUB, REMIC I Regular Interest LT-2GRP and REMIC I
Regular Interest LT-XX, pro rata based on, and to the extent of, one month's
interest at the then applicable respective Uncertificated REMIC I Pass-Through
Rate on the respective Uncertificated Principal Balance of each such REMIC I
Regular Interest.

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

         Uncertificated Principal Balance: The principal amount of any
Uncertificated Regular Interest outstanding as of any date of determination. The
Uncertificated Principal Balance of each Uncertificated Regular Interest shall
be reduced by all distributions of principal made on such Uncertificated Regular
Interest, as applicable, on such Distribution Date and, if and to the extent
necessary and appropriate, shall be further reduced in such Distribution Date by
Realized Losses. The Uncertificated Principal Balance of each Uncertificated
Regular Interest shall never be less than zero.

         Uncertificated REMIC I Pass-Through Rate: With respect to REMIC I
Regular Interest LT-AA, REMIC I Regular Interest LT-1A1, REMIC I Regular
Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest
LT-2A2, REMIC I Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I
Regular Interest LT-M2, REMIC I Regular Interest LT-M3, REMIC I Regular Interest
LT-M4, REMIC I Regular Interest LT-M5, REMIC 1 REGULAR Interest LT-M6, REMIC 1
Regular Interest LT-M7, REMIC 1 Regular Interest LT-M8, REMIC I Regular Interest
LT-B, REMIC I Regular Interest LT-ZZ, REMIC I Regular Interest LT-P, REMIC I
Regular Interest LT-AR, REMIC I Regular Interest LT-1SUB, REMIC I Regular
Interest LT-2SUB and REMIC I Regular Interest LT-XX, the weighted average of the
Adjusted Net Mortgage Rates of the Mortgage Loans. With respect to REMIC I
Regular Interest LT-1GRP, the weighted average of the Adjusted Net Mortgage
Rates of the Group 1 Mortgage Loans and with respect REMIC I Regular Interest
LT-2GRP, the weighted average of the Adjusted Net Mortgage Rates of the Group 2
Mortgage Loans.

         Uncertificated Regular Interests: The REMIC I Regular Interests.

         Underwriter: Countrywide Securities Corporation or Merrill Lynch & Co.

                                       54
<PAGE>

         Underwriter's Exemption: Prohibited Transaction Exemption 2002-41, 67
Fed. Reg. 54487 (2002), as amended (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S. Department of
Labor.

         Unpaid Realized Loss Amount: For any Class of Subordinate Certificates
or Class 1-A-2 Certificates, the portion of the aggregate Applied Realized Loss
Amount previously allocated to that Class remaining unpaid from prior
Distribution Dates, as reduced by the amount of the increase in the related
Certificate Principal Balance due to the receipt of Subsequent Recoveries.

         Voting Rights: The portion of the voting rights of all the Certificates
that is allocated to any Certificates for purposes of the voting provisions
hereunder. Voting Rights allocated to each Class of Certificates shall be
allocated 97% to the Certificates other than the Class A-R, Class C and Class P
Certificates (with the allocation among the Certificates to be in proportion to
the Certificate Principal Balance of each Class relative to the Certificate
Principal Balance of all other such Classes), and 1% to each of the Class A-R,
Class C and Class P Certificates. Voting Rights will be allocated among the
Certificates of each such Class in accordance with their respective Percentage
Interests.

                                       55
<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

Section 2.01      Conveyance of Mortgage Loans.

         (a) The Seller hereby sells, transfers, assigns, sets over and
otherwise conveys to the Depositor, without recourse, all the right, title and
interest of the Seller in and to the Mortgage Loans, including all interest and
principal received and receivable by the Seller on or with respect to the
Mortgage Loans after the Cut-off Date (to the extent not applied in computing
the Cut-off Date Principal Balance thereof) or deposited into the Certificate
Account by the Seller as a Certificate Account Deposit as provided in this
Agreement, other than principal due on the Mortgage Loans on or prior to the
Cut-off Date and interest accruing prior to the Cut-off Date. The Seller
confirms that, concurrently with the transfer and assignment, it has deposited
into the Certificate Account the Certificate Account Deposit.

         Immediately upon the conveyance of the Mortgage Loans referred to in
the preceding paragraph, the Depositor sells, transfers, assigns, sets over and
otherwise conveys to the Trustee for benefit of the Certificateholders, without
recourse, all right title and interest in the Mortgage Loans.

         The Seller further agrees to assign all of its right, title and
interest in and to the interest rate cap transactions evidenced by the
Confirmation And Agreements , and to cause all of its obligations in respect of
such transactions to be assumed by, the Trustee on behalf of the Trust Fund, on
the terms and conditions set forth in the Corridor Contract Novation Agreement.

         The Depositor, the Master Servicer and the Trustee agree that it is not
intended that any mortgage loan be included in the Trust that is either (i) a
"High-Cost Home Loan" as defined in the New Jersey Home Ownership Act effective
November 27, 2003 or (ii) a "High-Cost Home Loan" as defined in the New Mexico
Home Loan Protection Act effective January 1, 2004.

         (b) [reserved]

         (c) The Seller has entered into this Agreement in consideration for the
purchase of the Mortgage Loans by the Depositor and has agreed to take the
actions specified herein. The Depositor, concurrently with the execution and
delivery of this Agreement, hereby sells, transfers, assigns and otherwise
conveys to the Trustee for the use and benefit of the Certificateholders,
without recourse, all right title and interest in the portion of the Trust Fund
not otherwise conveyed to the Trustee pursuant to Sections 2.01(a) or (b).

         (d) [reserved]

         (e) [reserved]

         (f) [reserved]

                                       56
<PAGE>

         (g) In connection with the transfer and assignment of each Mortgage
Loan, the Depositor has delivered to, and deposited with, the Trustee (or, in
the case of the Delay Delivery Mortgage Loans, will deliver to, and deposit
with, the Trustee within the time periods specified in the definition of Delay
Delivery Mortgage Loans) (except as provided in clause (vi) below) for the
benefit of the Certificateholders, the following documents or instruments with
respect to each such Mortgage Loan so assigned (with respect to each Mortgage
Loan, clause (i) through (vi) below, together, the "Mortgage File" for each such
Mortgage Loan):

               (i) the original Mortgage Note, endorsed by the Seller or the
          originator of such Mortgage Loan, without recourse, in the following
          form: "Pay to the order of ________________ without recourse", with
          all intervening endorsements that show a complete chain of endorsement
          from the originator to the Seller, or, if the original Mortgage Note
          has been lost or destroyed and not replaced, an original lost note
          affidavit from the Seller, stating that the original Mortgage Note was
          lost or destroyed, together with a copy of the related Mortgage Note;

               (ii) in the case of each Mortgage Loan that is not a MERS
          Mortgage Loan, the original recorded Mortgage, and in the case of each
          MERS Mortgage Loan, the original Mortgage, noting the presence of the
          MIN of the Mortgage Loan and language indicating that the Mortgage
          Loan is a MOM Loan if the Mortgage Loan is a MOM Loan, with evidence
          of recording indicated thereon, or a copy of the Mortgage certified by
          the public recording office in which such Mortgage has been recorded;

               (iii) in the case of each Mortgage Loan that is not a MERS
          Mortgage Loan, a duly executed assignment of the Mortgage to
          "Asset-Backed Certificates, Series 2004-BC4, CWABS, Inc., by The Bank
          of New York, a New York banking corporation, as trustee under the
          Pooling and Servicing Agreement dated as of October 1, 2004, without
          recourse" (each such assignment, when duly and validly completed, to
          be in recordable form and sufficient to effect the assignment of and
          transfer to the assignee thereof, under the Mortgage to which such
          assignment relates);

               (iv) the original recorded assignment or assignments of the
          Mortgage together with all interim recorded assignments of such
          Mortgage (noting the presence of a MIN in the case of each MERS
          Mortgage Loan);

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

               (vi) the original or duplicate original lender's title policy or
          a printout of the electronic equivalent and all riders thereto or, in
          the event such original title policy has not been received from the
          insurer, such original or duplicate original lender's title policy and
          all riders thereto shall be delivered within one year of the Closing
          Date.

         In addition, in connection with the assignment of any MERS Mortgage
Loan, the Seller agrees that it will cause, at the Seller's own expense, the
MERS(R) System to indicate (and provide evidence to the Trustee that it has done
so) that such Mortgage Loans have been assigned by the Seller to the Trustee in
accordance with this Agreement for the benefit of the

                                       57
<PAGE>

Certificateholders by including (or deleting, in the case of Mortgage Loans
which are repurchased in accordance with this Agreement) in such computer files
(a) the code "[IDENTIFY TRUSTEE SPECIFIC CODE]" in the field "[IDENTIFY THE
FIELD NAME FOR TRUSTEE]" which identifies the Trustee and (b) the code
"[IDENTIFY SERIES SPECIFIC CODE NUMBER]" in the field "Pool Field" which
identifies the series of the Certificates issued in connection with such
Mortgage Loans. The Seller further agrees that it will not, and will not permit
the Master Servicer to, and the Master Servicer agrees that it will not, alter
the codes referenced in this paragraph with respect to any Mortgage Loan during
the term of this Agreement unless and until such Mortgage Loan is repurchased in
accordance with the terms of this Agreement.

         In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan the Seller cannot deliver the original recorded Mortgage or
all interim recorded assignments of the Mortgage satisfying the requirements of
clause (ii), (iii) or (iv) concurrently with the execution and delivery hereof,
the Seller shall deliver or cause to be delivered to the Trustee a true copy of
such Mortgage and of each such undelivered interim assignment of the Mortgage
each certified by the Seller, the applicable title company, escrow agent or
attorney, or the originator of such Mortgage, as the case may be, to be a true
and complete copy of the original Mortgage or assignment of Mortgage submitted
for recording. For any such Mortgage Loan that is not a MERS Mortgage Loan the
Seller shall promptly deliver or cause to be delivered to the Trustee such
original Mortgage and such assignment or assignments with evidence of recording
indicated thereon upon receipt thereof from the public recording official, or a
copy thereof, certified, if appropriate, by the relevant recording office, but
in no event shall any such delivery be made later than 270 days following the
Closing Date; provided that in the event that by such date the Seller is unable
to deliver or cause to be delivered each such Mortgage and each interim
assignment by reason of the fact that any such documents have not been returned
by the appropriate recording office, or, in the case of each interim assignment,
because the related Mortgage has not been returned by the appropriate recording
office, the Seller shall deliver or cause to be delivered such documents to the
Trustee as promptly as possible upon receipt thereof. If the public recording
office in which a Mortgage or interim assignment thereof is recorded retains the
original of such Mortgage or assignment, a copy of the original Mortgage or
assignment so retained, with evidence of recording thereon, certified to be true
and complete by such recording office, shall satisfy the Seller's obligations in
Section 2.01. If any document submitted for recording pursuant to this Agreement
is (x) lost prior to recording or rejected by the applicable recording office,
the Seller shall immediately prepare or cause to be prepared a substitute and
submit it for recording, and shall deliver copies and originals thereof in
accordance with the foregoing or (y) lost after recording, the Seller shall
deliver to the Trustee a copy of such document certified by the applicable
public recording office to be a true and complete copy of the original recorded
document. The Seller shall promptly forward or cause to be forwarded to the
Trustee (x) from time to time additional original documents evidencing an
assumption or modification of a Mortgage Loan and (y) any other documents
required to be delivered by the Depositor or the Master Servicer to the Trustee
within the time periods specified in this Section 2.01.

         With respect to each Mortgage Loan other than a MERS Mortgage Loan as
to which the related Mortgaged Property and Mortgage File are located in (a) the
State of California or (b) any other jurisdiction under the laws of which the
recordation of the assignment specified in clause

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<PAGE>

(iii) above is not necessary to protect the Trustee's and the
Certificateholders' interest in the related Mortgage Loan, as evidenced by an
Opinion of Counsel, delivered by the Seller to the Trustee and a copy to the
Rating Agencies, in lieu of recording the assignment specified in clause (iii)
above, the Seller may deliver an unrecorded assignment in blank, in form
otherwise suitable for recording to the Trustee; provided that if the related
Mortgage has not been returned from the applicable public recording office, such
assignment, or any copy thereof, of the Mortgage may exclude the information to
be provided by the recording office. As to any Mortgage Loan other than a MERS
Mortgage Loan, the procedures of the preceding sentence shall be applicable only
so long as the related Mortgage File is maintained in the possession of the
Trustee in the State or jurisdiction described in such sentence. In the event
that with respect to Mortgage Loans other than MERS Mortgage Loans (i) the
Seller, the Depositor or the Master Servicer gives written notice to the Trustee
that recording is required to protect the right, title and interest of the
Trustee on behalf of the Certificateholders in and to any Mortgage Loan, (ii) a
court recharacterizes the sale of the Mortgage Loans as a financing, or (iii) as
a result of any change in or amendment to the laws of the State or jurisdiction
described in the first sentence of this paragraph or any applicable political
subdivision thereof, or any change in official position regarding application or
interpretation of such laws, including a holding by a court of competent
jurisdiction, such recording is so required, the Trustee shall complete the
assignment in the manner specified in clause (iii) of the second paragraph of
this Section 2.01 and the Seller shall submit or cause to be submitted for
recording as specified above or, should the Seller fail to perform such
obligations, the Trustee shall cause the Master Servicer, at the Master
Servicer's expense, to cause each such previously unrecorded assignment to be
submitted for recording as specified above. In the event a Mortgage File is
released to the Master Servicer as a result of the Master Servicer's having
completed a Request for Release in the form of Exhibit M, the Trustee shall
complete the assignment of the related Mortgage in the manner specified in
clause (iii) of the second paragraph of this Section 2.01.

         So long as the Trustee maintains an office in the State of California,
the Trustee shall maintain possession of and not remove or attempt to remove
from the State of California any of the Mortgage Files as to which the related
Mortgaged Property is located in such State. In the event that the Seller fails
to record an assignment of a Mortgage Loan as herein provided within 90 days of
notice of an event set forth in clause (i), (ii) or (iii) of the above
paragraph, the Master Servicer shall prepare and, if required hereunder, file
such assignments for recordation in the appropriate real property or other
records office. The Seller hereby appoints the Master Servicer (and any
successor servicer hereunder) as its attorney-in-fact with full power and
authority acting in its stead for the purpose of such preparation, execution and
filing.

         In the case of Mortgage Loans that become the subject of a Principal
Prepayment between the Closing Date and the Cut-off Date, the Seller shall
deposit or cause to be deposited in the Certificate Account the amount required
to be deposited therein with respect to such payment pursuant to Section 3.05
hereof.

         Notwithstanding anything to the contrary in this Agreement, within
thirty days after the Closing Date, the Seller shall either (i) deliver to the
Trustee the Mortgage File as required pursuant to this Section 2.01 for each
Delay Delivery Mortgage Loan or (ii) (A) repurchase the Delay Delivery Mortgage
Loan or (B) substitute the Delay Delivery Mortgage Loan for a Replacement
Mortgage Loan, which repurchase or substitution shall be accomplished in the

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<PAGE>

manner and subject to the conditions set forth in Section 2.03, provided that if
the Seller fails to deliver a Mortgage File for any Delay Delivery Mortgage Loan
within the period provided in the prior sentence, the cure period provided for
in Section 2.02 or in Section 2.03 shall not apply to the initial delivery of
the Mortgage File for such Delay Delivery Mortgage Loan, but rather the Seller
shall have five (5) Business Days to cure such failure to deliver; and provided
further, that the Seller shall use its best efforts to substitute rather than
repurchase. The Seller shall promptly provide each Rating Agency with written
notice of any cure, repurchase or substitution made pursuant to the proviso of
the preceding sentence. On or before the thirtieth (30th) day (or if such
thirtieth day is not a Business Day, the succeeding Business Day) after the
Closing Date (in the case of the Mortgage Loans), the Trustee shall, in
accordance with the provisions of Section 2.02, send a Delay Delivery
Certification substantially in the form annexed hereto as Exhibit G-3 (with any
applicable exceptions noted thereon) for all Delay Delivery Mortgage Loan
delivered within thirty (30) days after such date. The Trustee will promptly
send a copy of such Delay Delivery Certification to each Rating Agency.

         Section 2.02 Acceptance of the Mortgage Loans.

         (a) The Trustee acknowledges receipt, subject to the limitations
contained in and any exceptions noted in the Initial Certification in the form
annexed hereto as Exhibit G-1 and in the list of exceptions attached thereto, of
the documents referred to in clauses (i) and (iii) of Section 2.01(g) above with
respect to the Mortgage Loans and all other assets included in the Trust Fund
and declares that it holds and will hold such documents and the other documents
delivered to it constituting the Mortgage Files, and that it holds or will hold
such other assets included in the Trust Fund, in trust for the exclusive use and
benefit of all present and future Certificateholders.

         The Trustee agrees to execute and deliver on the Closing Date to the
Depositor, the Master Servicer and the Seller an Initial Certification
substantially in the form annexed hereto as Exhibit G-1 to the effect that, as
to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or any Mortgage Loan specifically identified in such
certification as not covered by such certification), the documents described in
Section 2.01(g)(i) and, in the case of each Mortgage Loan that is not a MERS
Mortgage Loan, the documents described in Section 2.01(g)(iii), with respect to
such Mortgage Loan are in the Trustee's possession, and based on its review and
examination and only as to the foregoing documents, such documents appear
regular on their face and relate to such Mortgage Loan. The Trustee agrees to
execute and deliver within thirty (30) days after the Closing Date to the
Depositor, the Master Servicer and the Seller an Interim Certification
substantially in the form annexed hereto as Exhibit G-2 to the effect that, as
to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or any Mortgage Loan specifically identified in such
certification as not covered by such certification), all documents required to
be delivered to the Trustee pursuant to this Agreement with respect to such
Mortgage Loan are in its possession (except those described in Section
2.01(g)(vi)) and based on its review and examination and only as to the
foregoing documents, (i) such documents appear regular on their face and relate
to such Mortgage Loan, and (ii) the information set forth in items (i), (iv),
(v), (vi), (viii), (xi) and (xiv) of the definition of the "Mortgage Loan
Schedule" accurately reflects information set forth in the Mortgage File. On or
before the thirtieth (30th) day after the Closing Date (or if such thirtieth day
is not a Business Day, the succeeding Business Day), the Trustee shall deliver
to the

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<PAGE>

Depositor, the Master Servicer and the Seller a Delay Delivery Certification
with respect to the Mortgage Loans substantially in the form annexed hereto as
Exhibit G-3, with any applicable exceptions noted thereon. The Trustee shall be
under no duty or obligation to inspect, review or examine such 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 180 days after the Closing Date, the Trustee shall
deliver to the Depositor, the Master Servicer and the Seller (and to any
Certificateholder that so requests) a Final Certification with respect to the
Mortgage Loans substantially in the form annexed hereto as Exhibit H, with any
applicable exceptions noted thereon.

         In connection with the Trustee's completion and delivery of such Final
Certification, the Trustee shall review each Mortgage File with respect to the
Mortgage Loans to determine that such Mortgage File contains the documents
listed in Section 2.01(g). If, in the course of such review, the Trustee finds
any document or documents constituting a part of such Mortgage File that do not
meet the requirements of clauses (i)-(iv) and (vi) of Section 2.01(g), the
Trustee shall include such exceptions in such Final Certification (and the
Trustee shall state in such Final Certification whether any Mortgage File does
not then include the original or duplicate original lender's title policy or a
printout of the electronic equivalent and all riders thereto). If the public
recording office in which a Mortgage or assignment thereof is recorded retains
the original of such Mortgage or assignment, a copy of the original Mortgage or
assignment so retained, with evidence of recording thereon, certified to be true
and complete by such recording office, shall be deemed to satisfy the
requirements of clause (ii), (iii) or (iv) of Section 2.01(g), as applicable.
The Seller shall promptly correct or cure such defect referred to above 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)
if the time to cure such defect expires prior to the end of the second
anniversary of the Closing Date, substitute for the related Mortgage Loan a
Replacement Mortgage Loan, which substitution shall be accomplished in the
manner and subject to the conditions set forth in Section 2.03, or (B) purchase
such Mortgage Loan from the Trust Fund within 90 days from the date the Seller
was notified of such defect in writing at the Purchase Price of such Mortgage
Loan; provided that any such substitution pursuant to (A) above or repurchase
pursuant to (B) above shall not be effected prior to the delivery to the Trustee
of the Opinion of Counsel required by Section 2.05 hereof and any substitution
pursuant to (A) above shall not be effected prior to the additional delivery to
the Trustee of a Request for Release substantially in the form of Exhibit N. No
substitution will 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 Certificate Account and, upon receipt of such deposit and
certification with respect thereto in the form of Exhibit N hereto, the Trustee
shall release the related Mortgage File to the Seller and shall execute and
deliver at the Seller's request such instruments of transfer or assignment as
the Seller has prepared, in each case without recourse, as shall be necessary to
vest in the Seller, or a designee, the Trust Fund's interest in any Mortgage
Loan released pursuant hereto. If pursuant to the foregoing provisions the
Seller repurchases an Mortgage Loan that is a MERS Mortgage Loan, the Master
Servicer shall cause MERS to execute and deliver an assignment of the Mortgage
in recordable form to transfer the Mortgage

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<PAGE>

from MERS to the Seller and shall cause such Mortgage to be removed from
registration on the MERS(R) System in accordance with MERS' rules and
regulations.

         The Trustee shall retain possession and custody of each Mortgage File
in accordance with and subject to the terms and conditions set forth herein. The
Seller shall promptly deliver to the Trustee, upon the execution or receipt
thereof, the originals of such other documents or instruments constituting the
Mortgage File that come into the possession of the Seller from time to time.

         It is understood and agreed that the obligation of the Seller to
substitute for or to purchase any Mortgage Loan that does not meet the
requirements of Section 2.02(a)(A) or (B) above shall constitute the sole remedy
respecting such defect available to the Trustee, the Depositor and any
Certificateholder against the Seller.

         (b) [reserved]

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

         (a) The Master Servicer hereby represents and warrants to the
Depositor, the Seller and the Trustee as follows, as of the date hereof with
respect to the Mortgage Loans:

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

               (ii) The Master Servicer has the full partnership power and
          authority to sell and service each Mortgage Loan, and to execute,
          deliver and perform, and to enter into and consummate the transactions
          contemplated by this Agreement and has duly authorized by all
          necessary corporate action on the part of the Master Servicer the
          execution, delivery and performance of this Agreement; and this
          Agreement, assuming the due authorization, execution and delivery
          hereof by the other parties hereto, constitutes a legal, valid and
          binding obligation of the Master Servicer, enforceable against the
          Master Servicer in accordance with its terms, except that (a) the
          enforceability hereof may be limited by bankruptcy, insolvency,
          moratorium, receivership and other similar laws relating to creditors'
          rights generally and (b) the remedy of specific performance and
          injunctive and other forms of equitable relief may be subject to
          equitable defenses and to the discretion of the court before which any
          proceeding therefor may be brought.

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<PAGE>

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

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

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

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

               (vii) The Master Servicer is a member of MERS in good standing,
          and will comply in all material respects with the rules and procedures
          of MERS in connection with the servicing of the Mortgage Loans for as
          long as such Mortgage Loans are registered with MERS.

         (b) The Seller hereby represents and warrants to the Depositor, the
Master Servicer and the Trustee as follows, as of the Cut-off Date (unless
otherwise indicated or the context otherwise requires, percentages with respect
to the Mortgage Loans in a Loan Group are measured by the Cut-off Date Principal
Balance of the Mortgage Loans in the related Loan Group):

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

               (ii) The Seller has the full corporate power and authority to
          sell each Mortgage Loan, and to execute, deliver and perform, and to
          enter into and consummate the transactions contemplated by this
          Agreement and has duly authorized by all necessary corporate action on
          the part of the Seller the execution, delivery and performance of this
          Agreement; and this Agreement , assuming the due authorization,
          execution and delivery hereof by the other parties hereto, constitutes
          a legal, valid and binding obligation of the Seller, enforceable
          against the Seller in accordance with its terms, except that (a) the
          enforceability hereof may be limited by bankruptcy, insolvency,
          moratorium, receivership and other similar laws relating to creditors'
          rights generally and (b) the remedy of specific performance and
          injunctive and other forms of equitable relief may be subject to
          equitable defenses and to the discretion of the court before which any
          proceeding therefor may be brought.

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

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

               (v) No litigation is pending or, to the best of the Seller's
          knowledge, threatened, against the Seller that would materially and
          adversely affect the execution, delivery or enforceability of this
          Agreement or the ability of the Seller to sell the

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<PAGE>

          Mortgage Loans or to perform any of its other obligations under this
          Agreement in accordance with the terms hereof.

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

               (vii) The information set forth on Exhibit F-1 hereto with
          respect to each Mortgage Loan is true and correct in all material
          respects as of the Closing Date.

               (viii) The Seller will treat the transfer of the Mortgage Loans
          to the Depositor as a sale of the Mortgage Loans for all tax,
          accounting and regulatory purposes.

               (ix) None of the Mortgage Loans are more than 60 days delinquent
          in payment of principal and interest.

               (x) No Mortgage Loan secured by a first lien on the related
          Mortgaged Property had a Loan-to-Value Ratio at origination in excess
          of 100%.

               (xi) Each Mortgage Loan is secured by a valid and enforceable
          first lien on the related Mortgaged Property, subject only to (1) the
          lien of non-delinquent current real property taxes and assessments,
          (2) covenants, conditions and restrictions, rights of way, easements
          and other matters of public record as of the date of recording of such
          Mortgage, such exceptions appearing of record being acceptable to
          mortgage lending institutions generally or specifically reflected in
          the appraisal made in connection with the origination of the related
          Mortgage Loan, and (3) other matters to which like properties are
          commonly subject that do not materially interfere with the benefits of
          the security intended to be provided by such Mortgage.

               (xii) Immediately prior to the assignment of each Mortgage Loan
          to the Depositor, the Seller had good title to, and was the sole owner
          of, such Mortgage Loan free and clear of any pledge, lien, encumbrance
          or security interest and had full right and authority, subject to no
          interest or participation of, or agreement with, any other party, to
          sell and assign the same pursuant to this Agreement.

               (xiii) There is no delinquent tax or assessment lien against any
          Mortgaged Property.

               (xiv) There is no valid offset, claim, defense or counterclaim to
          any Mortgage Note or Mortgage, including the obligation of the
          Mortgagor to pay the unpaid principal of or interest on such Mortgage
          Note.

               (xv) There are no mechanics' liens or claims for work, labor or
          material affecting any Mortgaged Property that are or may be a lien
          prior to, or equal with, the lien of such Mortgage, except those that
          are insured against by the title insurance policy referred to in item
          (xviii) below.

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<PAGE>

               (xvi) As of the Closing Date, to the best of Seller's knowledge,
          each Mortgaged Property is free of material damage and is in good
          repair.

               (xvii) As of the Closing Date neither the Seller nor any prior
          holder of any Mortgage has modified the Mortgage in any material
          respect (except that a Mortgage Loan may have been modified by a
          written instrument that has been recorded or submitted for
          recordation, if necessary, to protect the interests of the
          Certificateholders and the original or a copy of which has been
          delivered to the Trustee); satisfied, cancelled or subordinated such
          Mortgage in whole or in part; released the related Mortgaged Property
          in whole or in part from the lien of such Mortgage; or executed any
          instrument of release, cancellation, modification (except as expressly
          permitted above) or satisfaction with respect thereto.

               (xviii) A lender's policy of title insurance together with a
          condominium endorsement and extended coverage endorsement, if
          applicable, in an amount at least equal to the Cut-off Date Stated
          Principal Balance of each such Mortgage Loan or a commitment (binder)
          to issue the same was effective on the date of the origination of each
          Mortgage Loan, each such policy is valid and remains in full force and
          effect, and each such policy was issued by a title insurer qualified
          to do business in the jurisdiction where the Mortgaged Property is
          located and acceptable to Fannie Mae or Freddie Mac and is in a form
          acceptable to Fannie Mae or Freddie Mac, which policy insures the
          Seller and successor owners of indebtedness secured by the insured
          Mortgage, as to the first priority lien, of the Mortgage subject to
          the exceptions set forth in paragraph (iv) above and against any loss
          by reason of the invalidity or unenforceability of the lien resulting
          from the provisions of the Mortgage providing for adjustment in the
          mortgage interest rate and/or monthly payment; to the best of the
          Seller's knowledge, no claims have been made under such mortgage title
          insurance policy and no prior holder of the related Mortgage,
          including the Seller, has done, by act or omission, anything that
          would impair the coverage of such mortgage title insurance policy.

               (xix) No Mortgage Loan was the subject of a Principal Prepayment
          in full between the Closing Date and the Cut-off Date.

               (xx) To the best of the Seller's knowledge, all of the
          improvements that were included for the purpose of determining the
          Appraised Value of the Mortgaged Property lie wholly within the
          boundaries and building restriction lines of such property, and no
          improvements on adjoining properties encroach upon the Mortgaged
          Property.

               (xxi) To the best of the Seller's knowledge, no improvement
          located on or being part of the Mortgaged Property is in violation of
          any applicable zoning law or regulation. To the best of the Seller's
          knowledge, all inspections, licenses and certificates required to be
          made or issued with respect to all occupied portions of the Mortgaged
          Property and, with respect to the use and occupancy of the same,
          including but not limited to certificates of occupancy and fire
          underwriting certificates, have been made or obtained from the
          appropriate authorities, unless the lack thereof would not have a
          material adverse effect on the value of such Mortgaged Property, and
          the Mortgaged Property is lawfully occupied under applicable law.

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<PAGE>

               (xxii) The Mortgage Note and the related Mortgage are genuine,
          and each is the legal, valid and binding obligation of the maker
          thereof, enforceable in accordance with its terms and under applicable
          law, except that (a) the enforceability thereof may be limited by
          bankruptcy, insolvency, moratorium, receivership and other similar
          laws relating to creditors' rights generally and (b) the remedy of
          specific performance and injunctive and other forms of equitable
          relief may be subject to equitable defenses and to the discretion of
          the court before which any proceeding therefor may be brought. To the
          best of the Seller's knowledge, all parties to the Mortgage Note and
          the Mortgage had legal capacity to execute the Mortgage Note and the
          Mortgage and each Mortgage Note and Mortgage have been duly and
          properly executed by such parties.

               (xxiii) The proceeds of the Mortgage Loan have been fully
          disbursed, there is no requirement for future advances thereunder, and
          any and all requirements as to completion of any on-site or off-site
          improvements and as to disbursements of any escrow funds therefor have
          been complied with. All costs, fees and expenses incurred in making,
          or closing or recording the Mortgage Loans were paid.

               (xxiv) The related Mortgage contains customary and enforceable
          provisions that render the rights and remedies of the holder thereof
          adequate for the realization against the Mortgaged Property of the
          benefits of the security, including, (i) in the case of a Mortgage
          designated as a deed of trust, by trustee's sale, and (ii) otherwise
          by judicial foreclosure.

               (xxv) With respect to each Mortgage constituting a deed of trust,
          a trustee, duly qualified under applicable law to serve as such, has
          been properly designated and currently so serves and is named in such
          Mortgage, and no fees or expenses are or will become payable by the
          Certificateholders to the trustee under the deed of trust, except in
          connection with a trustee's sale after default by the Mortgagor.

               (xxvi) Each Mortgage Note and each Mortgage is in substantially
          one of the forms attached hereto as Exhibit P acceptable in form to
          Fannie Mae or Freddie Mac.

               (xxvii) There exist no deficiencies with respect to escrow
          deposits and payments, if such are required, for which customary
          arrangements for repayment thereof have not been made, and no escrow
          deposits or payments of other charges or payments due the Seller have
          been capitalized under the Mortgage or the related Mortgage Note.

               (xxviii) The origination, underwriting, servicing and collection
          practices used by the Seller with respect to each Mortgage Loan have
          been in all respects legal, proper, prudent and customary in the
          mortgage lending and servicing business.

               (xxix) There is no pledged account or other security other than
          real estate securing the Mortgagor's obligations.

               (xxx) No Mortgage Loan has a shared appreciation feature, or
          other contingent interest feature.

               (xxxi) Each Mortgage Loan contains a customary "due on sale"
          clause.

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               (xxxii) [No more than approximately [6.31]% and [1.00]% of the
          Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are
          secured by two-family dwellings. No more than approximately [1.8]% and
          none of the Mortgage Loans in Loan Group 1 and Loan Group 2,
          respectively, are secured by three-family dwellings. No more than
          approximately [1.49]% and none of the Mortgage Loans in Loan Group 1
          and Loan Group 2, respectively, are secured by four-family dwellings.
          No more than approximately [5.44]% and [5.5%] of the Mortgage Loans in
          Loan Group 1 and Loan Group 2, respectively, are secured by
          condominium units. No more than approximately [ ]% and [ ]% of the
          Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are
          secured by high rise condominium units. No less than approximately
          [76.16%] and 80.28% of the Mortgage Loans in Loan Group 1 and Loan
          Group 2, respectively, are secured by single family detached
          dwellings. No more than approximately [0.28%] of the Mortgage Loans in
          Group 1 and [0.02]% of the Mortgage Loans in Group 2 are secured by
          manufactured housing. No more than approximately [7.99]% and [12.8]%
          of the Mortgage Loans in Loan Group 1 and Loan Group 2, respectively,
          are secured by PUDs.]

               (xxxiii) [ No Mortgage Loan in Loan Group 1 and Loan Group 2 had
          a principal balance in excess of $498,051 and $1,113,215,
          respectively, at origination.]

               (xxxiv) To the extent required under applicable law, each
          originator and subsequent mortgagee or servicer of the Mortgage Loan
          complied with all licensing requirements and was authorized to
          transact and do business in the jurisdiction in which the related
          Mortgaged Property is located at all times when it held or serviced
          the Mortgage Loan. Any and all requirements of any federal, state or
          local laws or regulations, including, without limitation, usury,
          truth-in-lending, real estate settlement procedures, consumer credit
          protection, anti-predatory lending, fair credit reporting, unfair
          collection practice, equal credit opportunity, fair housing and
          disclosure laws and regulations, applicable to the solicitation,
          origination, collection and servicing of such Mortgage Loan have been
          complied with in all material respects; and any obligations of the
          holder of the Mortgage Note, Mortgage and other loan documents have
          been complied with in all material respects; servicing of each
          Mortgage Loan has been in accordance with prudent mortgage servicing
          standards, any applicable laws, rules and regulations and in
          accordance with the terms of the Mortgage Notes, Mortgage and other
          loan documents, whether such origination and servicing was done by
          Seller, its affiliates, or any third party which originated the
          Mortgage Loan on behalf of, or sold the Mortgage Loan to, any of them,
          or any servicing agent of any of the foregoing;

               (xxxv) Each Mortgage Loan was originated on or after [ ];

               (xxxvi) Each One-Year Hybrid Mortgage Loan had an initial
          Adjustment Date no later than [ ]; each Two-Year Hybrid Mortgage Loan
          had an initial Adjustment Date no later than [ ]; each Three-Year
          Hybrid Mortgage Loan had an initial Adjustment Date no later than [ ];
          each Five-Year Hybrid Mortgage Loan had an initial Adjustment Date no
          later than [ ].

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<PAGE>

               (xxxvii) Approximately [81.69% and 87.40%] of the Mortgage Loans
          in Loan Group 1 and Loan Group 2, respectively, provide for a
          prepayment penalty.

               (xxxviii)On the basis of representations made by the Mortgagors
          in their loan applications, no less than approximately [ ]% and [ ]%
          of the owner-occupied Mortgage Loans in Loan Group 1 and Loan Group 2,
          respectively, are secured by owner-occupied Mortgaged Properties that
          are primary residences and no more than approximately [ ]% and [ ]% of
          the owner-occupied Mortgage Loans in Loan Group 1 and Loan Group 2,
          respectively, are secured by owner-occupied Mortgaged Properties that
          are secondary residences.

               (xxxix) At the Cut-off Date, the improvements upon each Mortgaged
          Property are covered by a valid and existing hazard insurance policy
          with a generally acceptable carrier that provides for fire and
          extended coverage and coverage for such other hazards as are customary
          in the area where the Mortgaged Property is located in an amount that
          is at least equal to the lesser of (i) the maximum insurable value of
          the improvements securing such Mortgage Loan or (ii) the greater of
          (a) the outstanding principal balance of the Mortgage Loan and (b) an
          amount such that the proceeds of such policy shall be sufficient to
          prevent the Mortgagor and/or the mortgagee from becoming a co-insurer.
          If the Mortgaged Property is a condominium unit, it is included under
          the coverage afforded by a blanket policy for the condominium unit.
          All such individual insurance policies and all flood policies referred
          to in item (xl) below contain a standard mortgagee clause naming the
          Seller or the original mortgagee, and its successors in interest, as
          mortgagee, and the Seller has received no notice that any premiums due
          and payable thereon have not been paid; the Mortgage obligates the
          Mortgagor thereunder to maintain all such insurance, including flood
          insurance, at the Mortgagor's cost and expense, and upon the
          Mortgagor's failure to do so, authorizes the holder of the Mortgage to
          obtain and maintain such insurance at the Mortgagor's cost and expense
          and to seek reimbursement therefor from the Mortgagor.

               (xl) If the Mortgaged Property is in an area identified in the
          Federal Register by the Federal Emergency Management Agency as having
          special flood hazards, a flood insurance policy in a form meeting the
          requirements of the current guidelines of the Flood Insurance
          Administration is in effect with respect to such Mortgaged Property
          with a generally acceptable carrier in an amount representing coverage
          not less than the least of (A) the original outstanding principal
          balance of the Mortgage Loan, (B) the minimum amount required to
          compensate for damage or loss on a replacement cost basis, or (C) the
          maximum amount of insurance that is available under the Flood Disaster
          Protection Act of 1973, as amended.

               (xli) To the best of the Seller's knowledge, there is no
          proceeding occurring, pending or threatened for the total or partial
          condemnation of the Mortgaged Property.

               (xlii) There is no material monetary default existing under any
          Mortgage or the related Mortgage Note and, to the best of the Seller's
          knowledge, there is no material event that, with the passage of time
          or with notice and the expiration of any grace or cure period, would
          constitute a default, breach, violation or event of acceleration under
          the

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          Mortgage or the related Mortgage Note; and the Seller has not waived
          any default, breach, violation or event of acceleration.

               (xliii) Each Mortgaged Property is improved by a one- to
          four-family residential dwelling, including condominium units and
          dwelling units in PUDs. To the best of the Seller's knowledge, no
          Mortgaged Property includes a cooperative or a mobile home or
          constitutes other than real property under state law.

               (xliv) Each Mortgage Loan is being serviced by the Master
          Servicer, or, if a Mortgage Loan is being serviced by the originator
          of such Mortgage Loan, the Master Servicer and the originator have
          agreed to transfer the servicing of such Mortgage Loan on or prior to
          December 1, 2004.

               (xlv) Any future advances made prior to the Cut-off Date have
          been consolidated with the outstanding principal amount secured by the
          Mortgage, and the secured principal amount, as consolidated, bears a
          single interest rate and single repayment term reflected on the
          Mortgage Loan Schedule. The consolidated principal amount does not
          exceed the original principal amount of the Mortgage Loan. The
          Mortgage Note does not permit or obligate the Master Servicer to make
          future advances to the Mortgagor at the option of the Mortgagor.

               (xlvi) All taxes, governmental assessments, insurance premiums,
          water, sewer and municipal charges, leasehold payments or ground rents
          that previously became due and owing have been paid, or an escrow of
          funds has been established in an amount sufficient to pay for every
          such item that remains unpaid and that has been assessed, but is not
          yet due and payable. Except for (A) payments in the nature of escrow
          payments, and (B) interest accruing from the date of the Mortgage Note
          or date of disbursement of the Mortgage proceeds, whichever is later,
          to the day that precedes by one month the Due Date of the first
          installment of principal and interest, including without limitation,
          taxes and insurance payments, the Master Servicer has not advanced
          funds, or induced, solicited or knowingly received any advance of
          funds by a party other than the Mortgagor, directly or indirectly, for
          the payment of any amount required by the Mortgage.

               (xlvii) The Mortgage Loans were underwritten in all material
          respects in accordance with customary and prudent underwriting
          guidelines generally used by originators of credit blemished quality
          mortgage loans.

               (xlviii) Prior to the approval of the Mortgage Loan application,
          an appraisal of the related Mortgaged Property was obtained from a
          qualified appraiser, duly appointed by the originator, who had no
          interest, direct or indirect, in the Mortgaged Property or in any loan
          made on the security thereof, and whose compensation is not affected
          by the approval or disapproval of the Mortgage Loan; such appraisal is
          in a form acceptable to Fannie Mae and Freddie Mac.

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<PAGE>

               (xlix) None of the Mortgage Loans is a graduated payment mortgage
          loan or a growing equity mortgage loan, and no Mortgage Loan is
          subject to a buydown or similar arrangement.

               (l) The Mortgage Rates borne by the Mortgage Loans in Loan Group
          1 as of the Cut-off Date ranged from 4.500% per annum to [12.85]% per
          annum and the weighted average Mortgage Rate as of the Cut-off Date
          was [6.881]% per annum. The Mortgage Rates borne by the Mortgage Loans
          in Loan Group 2 as of the Cut-off Date ranged from [4.800]% per annum
          to [9.990]% per annum and the weighted average Mortgage Rate as of the
          Cut-off Date was [6.586]% per annum.

               (li) The Mortgage Loans were selected from among the outstanding
          one- to four-family mortgage loans in the Seller's portfolio at the
          Closing Date, as to which the representations and warranties made as
          to the Mortgage Loans set forth in this Section 2.03(b) can be made.
          No selection was made in a manner that would adversely affect the
          interests of Certificateholders.

               (lii) The Gross Margins on the Adjustable Rate Mortgage Loans
          that are Mortgage Loans in Loan Group 1 range from approximately
          [3.875]% to [8.00]% and the weighted average Gross Margin was
          approximately [6.249]%. The Gross Margins on the Adjustable Rate
          Mortgage Loans that are Mortgage Loans in Loan Group 2 range from
          approximately [4.050% to 9.850%] and the weighted average Gross Margin
          was approximately [6.245]%.

               (liii) Each Mortgage Loan has a payment date on or before the Due
          Date in the month of the first Distribution Date.

               (liv) The Mortgage Loans, individually and in the aggregate,
          conform in all material respects to the descriptions thereof in the
          Prospectus Supplement.

               (lv) There is no obligation on the part of the Seller under the
          terms of the Mortgage or related Mortgage Note to make payments in
          addition to those made by the Mortgagor.

               (lvi) Any leasehold estate securing a Mortgage Loan has a term of
          not less than five years in excess of the term of the related Mortgage
          Loan.

               (lvii) Each Mortgage Loan represents a "qualified mortgage"
          within the meaning of Section 860(a)(3) of the Code (but without
          regard to the rule in Treasury Regulation ss. 1.860G 2(f)(2) that
          treats a defective obligation as a qualified mortgage, or any
          substantially similar successor provision) and applicable Treasury
          regulations promulgated thereunder.

               (lviii) No Mortgage Loan was either a "consumer credit contract"
          or a "purchase money loan" as such terms are defined in 16 C.F.R.
          Section 433 nor is any Mortgage Loan a "mortgage" as defined in 15
          U.S.C. ss. 1602(aa).

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<PAGE>

               (lix) The information set forth in the Prepayment Charge Schedule
          with respect to each Mortgage Loan is complete, true and correct in
          all material respects at the date or dates respecting which such
          information is furnished and each Prepayment Charge is permissible and
          enforceable in accordance with its terms under applicable law upon the
          Mortgagor's full and voluntary principal prepayment (except to the
          extent that: (1) the enforceability thereof may be limited by
          bankruptcy, insolvency, moratorium, receivership and other similar
          laws relating to creditors' rights generally; or (2) the
          collectibility thereof may be limited due to acceleration in
          connection with a foreclosure or other involuntary prepayment).

               (lx) No Mortgage Loan is a "high cost home loan" as defined in
          the Georgia Fair Lending Act, as amended. No Mortgage Loan with a
          principal balance at origination (or modification) equal to or less
          than the mortgage loan balance limit of Fannie Mae in effect at the
          time of origination (or modification) and secured by owner-occupied
          real property located in the State of Georgia was originated (or
          modified) on or after October 1, 2002 through and including March 6,
          2003.

               (lxi) No Mortgage Loan is a "high cost home loan" as defined in
          New York Banking Law 6-1.

               (lxii) No Mortgage Loan is classified as (a) a high cost mortgage
          loan under the Home Ownership and Equity Protection Act of 1994 or (b)
          a "high cost" loan under any other applicable state, federal or local
          law.

               (lxiii) No Mortgage Loan is a High Cost Loan or Covered Loan, as
          applicable (as such terms are defined in Standard & Poor's LEVELS(R)
          Glossary, Version 5.6 Revised, Appendix E, attached hereto as Exhibit
          U) and no Mortgage Loan originated on or after October 1, 2002 through
          March 6, 2003 is governed by the Georgia Fair Lending Act.

         (c) Upon discovery by any of the parties hereto of a breach of a
representation or warranty set forth in Section 2.03(a) or (b), that materially
and adversely affects the interests of the Certificateholders in any Mortgage
Loan, the party discovering such breach shall give prompt notice thereof to the
other parties. Each of the Master Servicer and the Seller (each, a "Representing
Party") hereby covenants with respect to a breach of the representations and
warranties set forth in Sections 2.03(a) and (b), that within 90 days of the
earlier of the discovery by such Representing Party or receipt of written notice
by such Representing Party from any party of a breach of any representation or
warranty set forth herein made that materially and adversely affects the
interests of the Certificateholders in any Mortgage Loan, it shall cure such
breach in all material respects and, if such breach is not so cured, shall, (i)
if such 90 day period expires prior to the second anniversary of the Closing
Date, remove such Mortgage Loan (a "Deleted Mortgage Loan") from the Trust Fund
and substitute in its place a Replacement Mortgage Loan, in the manner and
subject to the conditions set forth in this Section; or (ii) repurchase the
affected Mortgage Loan or Mortgage Loans from the Trustee at the Purchase Price
in the manner set forth below; provided that any such substitution pursuant to
(i) above or repurchase pursuant to (ii) above shall not be effected prior to
the delivery to the Trustee of the Opinion of Counsel required by Section 2.05
hereof and any such substitution pursuant to (i)

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<PAGE>

above shall not be effected prior to the additional delivery to the Trustee of a
Request for Release substantially in the form of Exhibit M. Any Representing
Party liable for a breach under this Section 2.03 shall promptly reimburse the
Master Servicer and the Trustee for any expenses reasonably incurred by the
Master Servicer or the Trustee in respect of enforcing the remedies for such
breach. To enable the Master Servicer to amend the Mortgage Loan Schedule, any
Representing Party liable for a breach under this Section 2.03 shall, unless it
cures such breach in a timely fashion pursuant to this Section 2.03, promptly
notify the Master Servicer whether such Representing Party intends either to
repurchase, or to substitute for, the Mortgage Loan affected by such breach.
With respect to the representations and warranties described in this Section
that are made to the best of the Representing Party's knowledge, if it is
discovered by any of the Depositor, the Master Servicer, the Seller or the
Trustee that the substance of such representation and warranty is inaccurate and
such inaccuracy materially and adversely affects the value of the related
Mortgage Loan, notwithstanding the Representing Party'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 Replacement Mortgage Loan or Loans, the Seller
delivering such Replacement Mortgage Loan shall deliver to the Trustee for the
benefit of the Certificateholders the related Mortgage Note, Mortgage and
assignment of the Mortgage, and such other documents and agreements as are
required by Section 2.01, with the Mortgage Note endorsed and the Mortgage
assigned as required by Section 2.01. No substitution will be made in any
calendar month after the Determination Date for such month. Scheduled Payments
due with respect to Replacement Mortgage Loans in the Due Period related to the
Distribution Date on which such proceeds are to be distributed shall not be part
of the Trust Fund and will be retained by the Seller delivering such Replacement
Loan on such Distribution Date. For the month of substitution, distributions to
Certificateholders will include the Scheduled Payment due on any Deleted
Mortgage Loan for the related Due Period and thereafter the Seller shall be
entitled to retain all amounts received in respect of such Deleted Mortgage
Loan. The Master Servicer shall amend the Mortgage Loan Schedule for the benefit
of the Certificateholders to reflect the removal of such Deleted Mortgage Loan
and the substitution of the Replacement Mortgage Loan or Loans and the Master
Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee. Upon
such substitution, the Replacement Mortgage Loan or Loans shall be subject to
the terms of this Agreement in all respects, and the Seller delivering such
Replacement Mortgage Loan shall be deemed to have made with respect to such
Replacement Mortgage Loan or Loans, as of the date of substitution, the
representations and warranties set forth in Section 2.03(b) with respect to such
Mortgage Loan. Upon any such substitution and the deposit to the Certificate
Account of the amount required to be deposited therein in connection with such
substitution as described in the following paragraph, the Trustee shall release
to the Representing Party the Mortgage File relating to such Deleted Mortgage
Loan and held for the benefit of the Certificateholders and shall execute and
deliver at the Master Servicer's direction such instruments of transfer or
assignment as have been prepared by the Master Servicer, in each case without
recourse, as shall be necessary to vest in the Seller, or its respective
designee, title to the Trustee's interest in any Deleted Mortgage Loan
substituted for pursuant to this Section 2.03.

         For any month in which the Seller substitutes one or more Replacement
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will
determine the amount (if any) by which the aggregate principal balance of all
such Replacement Mortgage Loans as of the date

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of substitution is less than the Stated Principal Balance (after application of
the principal portion of the Scheduled Payment due in the month of substitution)
of all such Deleted Mortgage Loans, and costs and damages incurred by the Trust
Fund in connection with a repurchase pursuant to Section 2.03 hereof that arise
out of a violation of any predatory or abusive lending law which also
constitutes an actual breach of representation (xxxiv) of Section 2.03(b)
hereof. An amount equal to the aggregate of the deficiencies described in the
preceding sentence (such amount, the "Substitution Adjustment Amount") shall be
forwarded by the Seller to the Master Servicer and deposited by the Master
Servicer into the Certificate Account not later than the Determination Date for
the Distribution Date relating to the Prepayment Period during which the related
Mortgage Loan became required to be purchased or replaced hereunder.

         In the event that a Seller shall have repurchased a Mortgage Loan, the
Purchase Price therefor shall be deposited in the Certificate Account pursuant
to Section 3.08 on the Determination Date for the Distribution Date in the month
following the month during which such Seller became obligated to repurchase or
replace such Mortgage Loan and upon such deposit of the Purchase Price, the
delivery of the Opinion of Counsel required by Section 2.05, if any, and the
receipt of a Request for Release in the form of Exhibit N hereto, the Trustee
shall release the related Mortgage File held for the benefit of the
Certificateholders to such Seller, and the Trustee shall execute and deliver at
such Person's direction the related instruments of transfer or assignment
prepared by such Seller, in each case without recourse, as shall be necessary to
transfer title from the Trustee for the benefit of the Certificateholders and
transfer the Trustee's interest to such Seller to any Mortgage Loan purchased
pursuant to this Section 2.03. 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 against the Seller respecting such breach available to
Certificateholders, the Depositor or the Trustee.

         (d) The representations and warranties set forth in Section 2.03 hereof
shall survive delivery of the respective Mortgage Files to the Trustee for the
benefit of the Certificateholders.

         Section 2.04 Representations and Warranties of the Depositor.

         The Depositor hereby represents and warrants to the Seller, the Master
Servicer and the Trustee as follows, as of the date hereof:

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

         (ii) The Depositor has the full corporate power and authority to
execute, deliver and perform, and to enter into and consummate the transactions
contemplated by, this Agreement and has duly authorized, by all necessary
corporate action on its part, the execution, delivery and performance of this
Agreement; and this Agreement, assuming the due authorization, execution and
delivery hereof by the other parties hereto, constitutes a legal, valid and
binding obligation of the Depositor, enforceable against the Depositor in
accordance with its terms, subject, as to enforceability, to (i) bankruptcy,
insolvency, reorganization, moratorium and other similar laws

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<PAGE>

affecting creditors' rights generally and (ii) general principles of equity,
regardless of whether enforcement is sought in a proceeding in equity or at law.

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

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

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

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

         It is understood and agreed that the representations and warranties set
forth in the two immediately preceding paragraphs shall survive delivery of the
Mortgage Files to the Trustee. Upon discovery by the Depositor or the Trustee of
a breach of any of the foregoing representations and warranties set forth in the
immediately preceding paragraph (referred to herein as a "breach"), which breach
materially and adversely affects the interest of the Certificateholders, the
party discovering such breach shall give prompt written notice to the others and
to each Rating Agency. The Depositor hereby covenants with respect to the
representations and warranties made by it in this Section 2.04 that within 90
days of the earlier of the discovery it or receipt of written notice by it from
any party of a breach of any representation or warranty set forth herein made
that materially and adversely affects the interests of the Certificateholders in
any Mortgage Loan, it shall cure such breach in all material respects and, if
such breach is not so cured, shall repurchase or replace the affected Mortgage
Loan or Loans in accordance with the procedure set forth in Section 2.03(c).

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<PAGE>

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

         (a) Notwithstanding any contrary provision of this Agreement, with
respect to any Mortgage Loan that is not in default or as to which default is
not imminent, no repurchase or substitution pursuant to Sections 2.02, 2.03 or
2.04 shall be made unless the Representing Party making such repurchase or
substitution delivers to the Trustee an Opinion of Counsel, addressed to the
Trustee, to the effect that such repurchase or substitution would not (i) result
in the imposition of the tax on "prohibited transactions" of the Trust Fund or
contributions after the Closing Date, as defined in sections 860F(a)(2) and
860G(d) of the Code, respectively or (ii) cause the Trust Fund to fail to
qualify as a REMIC at any time that any Certificates are outstanding. Any
Mortgage Loan as to which repurchase or substitution was delayed pursuant to
this paragraph shall be repurchased or the substitution therefor shall occur
(subject to compliance with Sections 2.02, 2.03 or 2.04) upon the earlier of (a)
the occurrence of a default or imminent default with respect to such loan and
(b) receipt by the Trustee of an Opinion of Counsel to the effect that such
repurchase or substitution, as applicable, will not result in the events
described in clause (i) or clause (ii) of the preceding sentence.

         (b) Upon discovery by the Depositor, the Seller, the Master Servicer or
the Trustee that any Mortgage Loan does not constitute a "qualified mortgage"
within the meaning of section 860G(a)(3) of the Code, the party discovering such
fact shall promptly (and in any event within 5 Business Days of discovery) give
written notice thereof to the other parties. In connection therewith, the
Trustee shall require the Seller, at the Seller's option, to either (i)
substitute, if the conditions in Section 2.03(b) with respect to substitutions
are satisfied, a Replacement Mortgage Loan for the affected Mortgage Loan, or
(ii) repurchase the affected Mortgage Loan within 90 days of such discovery in
the same manner as it would a Mortgage Loan for a breach of representation or
warranty contained in Section 2.03. The Trustee shall reconvey to the Seller the
Mortgage Loan to be released pursuant hereto in the same manner, and on the same
terms and conditions, as it would a Mortgage Loan repurchased for breach of a
representation or warranty contained in Section 2.03.

         Section 2.06 Authentication and Delivery of Certificates.

         The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with such transfer and assignment, has executed,
authenticated and delivered, to or upon the order of the Depositor, the
Certificates in authorized denominations evidencing the entire ownership of the
Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the rights
referred to above for the benefit of all present and future Holders of the
Certificates and to perform the duties set forth in this Agreement to the best
of its ability, to the end that the interests of the Holders of the Certificates
may be adequately and effectively protected.

         Section 2.07 Covenants of the Master Servicer.

         The Master Servicer hereby covenants to the Depositor, the Seller and
the Trustee as follows:

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         (a) the Master Servicer shall comply in the performance of its
obligations under this Agreement with all reasonable rules and requirements of
the insurer under each Required Insurance Policy; and

         (b) no written information, certificate of an officer, statement
furnished in writing or written report delivered to the Depositor, any affiliate
of the Depositor or the Trustee and prepared by the Master Servicer pursuant to
this Agreement will contain any untrue statement of a material fact or omit to
state a material fact necessary to make the information, certificate, statement
or report not misleading.

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                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

         Section 3.01 Master Servicer to Service Mortgage Loans.

         For and on behalf of the Certificateholders, the Master Servicer shall
service and administer the Mortgage Loans in accordance with customary and usual
standards of practice of prudent mortgage loan lenders in the respective states
in which the Mortgaged Properties are located. In connection with such servicing
and administration, the Master Servicer shall have full power and authority,
acting alone and/or through subservicers as provided in Section 3.02 hereof,
subject to the terms hereof (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any 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) subject to Section 3.12(a), to
effectuate foreclosure or other conversion of the ownership of the Mortgaged
Property securing any Mortgage Loan; provided that the Master Servicer shall
take no action that is inconsistent with or prejudices the interests of the
Trust Fund or the Certificateholders in any Mortgage Loan or the rights and
interests of the Depositor and the Trustee under this Agreement. The Master
Servicer shall represent and protect the interest of the Trust Fund in the same
manner as it currently protects its own interest in mortgage loans in its own
portfolio in any claim, proceeding or litigation regarding a Mortgage Loan and
shall not make or permit any modification, waiver or amendment of any term of
any Mortgage Loan which would cause any REMIC to fail to qualify as a REMIC or
result in the imposition of any tax under Section 860(a) or 860(d) of the Code,
but in any case not in any manner that is a lesser standard than that provided
in the first sentence of this Section 3.01. Without limiting the generality of
the foregoing, the Master Servicer, in its own name or in the name of the
Depositor and the Trustee, is hereby authorized and empowered by the Depositor
and the Trustee, when the Master Servicer believes it appropriate in its
reasonable judgment, to execute and deliver, on behalf of the Trustee, the
Depositor, the Certificateholders or any of them, any and all instruments of
satisfaction or cancellation, or of partial or full release or discharge and all
other comparable instruments, with respect to the Mortgage Loans, and with
respect to the Mortgaged Properties held for the benefit of the
Certificateholders. The Master Servicer shall prepare and deliver to the
Depositor and/or the Trustee such documents requiring execution and delivery by
any or all of them as are necessary or appropriate to enable the Master Servicer
to service and administer the Mortgage Loans. Upon receipt of such documents,
the Depositor and/or the Trustee shall execute such documents and deliver them
to the Master Servicer. The Master Servicer further is authorized and empowered
by the Trustee, on behalf of the Certificateholders and the Trustee, in its own
name or in the name of the Subservicer, when the Master Servicer or the
Subservicer, as the case may be, believes it appropriate in its best judgment to
register any Mortgage Loan on the MERS(R) System, or cause the removal from the
registration of any Mortgage Loan on the MERS(R) System, to execute and deliver,
on behalf of the Trustee and the Certificateholders or any of them, any and all
instruments of assignment and other comparable instruments with respect to

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such assignment or re-recording of a Mortgage in the name of MERS, solely as
nominee for the Trustee and its successors and assigns.

         In accordance with the standards of the preceding paragraph, the Master
Servicer shall advance or cause to be advanced funds as necessary for the
purpose of effecting the payment of taxes and assessments on the Mortgaged
Properties, which advances shall be reimbursable in the first instance from
related collections from the Mortgagors pursuant to Section 3.06, and further as
provided in Section 3.08. All costs incurred by the Master 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 distributions to the Certificateholders, be added to the
Stated Principal Balance under the related Mortgage Loans, notwithstanding that
the terms of such Mortgage Loans so permit.

         The Master Servicer shall deliver a list of Servicing Officers to the
Trustee by the Closing Date.

         Section 3.02 Subservicing; Enforcement of the Obligations of Master
Servicer.

         (a) The Master Servicer may arrange for the subservicing of any
Mortgage Loan by a subservicer (each, a "Subservicer") pursuant to a
subservicing agreement (each, a "Subservicing Agreement"); provided 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. Notwithstanding the
provisions of any subservicing agreement, any of the provisions of this
Agreement relating to agreements or arrangements between the Master Servicer or
a subservicer or reference to actions taken through a Master Servicer or
otherwise, the Master Servicer shall remain obligated and liable to the
Depositor, the Trustee and the Certificateholders 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 Master Servicer alone were servicing and administering the Mortgage Loans.
Every subservicing agreement entered into by the Master Servicer shall contain a
provision giving the successor Master Servicer the option to terminate such
agreement in the event a successor Master Servicer is appointed. All actions of
each subservicer performed pursuant to the related subservicing agreement shall
be performed as an agent of the Master Servicer with the same force and effect
as if performed directly by the Master Servicer.

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

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         Section 3.03 Rights of the Depositor, the Seller and the Trustee in
Respect of the Master Servicer.

         None of the Trustee, the Seller or the Depositor shall have any
responsibility or liability for any action or failure to act by the Master
Servicer, and none of them is obligated to supervise the performance of the
Master Servicer hereunder or otherwise.

         Section 3.04 Trustee to Act as Master Servicer.

         In the event that the Master Servicer shall for any reason no longer be
the Master Servicer hereunder (including by reason of an Event of Default), the
Trustee or its designee shall thereupon assume all of the rights and obligations
of the Master Servicer hereunder arising thereafter (except that the Trustee
shall not be (i) liable for losses of the Master Servicer pursuant to Section
3.10 hereof or any acts or omissions of the predecessor Master Servicer
hereunder, (ii) obligated to make Advances if it is prohibited from doing so by
applicable law, (iii) obligated to effectuate repurchases or substitutions of
Mortgage Loans hereunder, including pursuant to Section 2.02 or 2.03 hereof,
(iv) responsible for expenses of the Master Servicer pursuant to Section 2.03 or
(v) deemed to have made any representations and warranties hereunder, including
pursuant to Section 2.03 or the first paragraph of Section 6.02 hereof). If the
Master Servicer shall for any reason no longer be the Master Servicer (including
by reason of any Event of Default), the Trustee (or any other successor
servicer) may, at its option, succeed to any rights and obligations of the
Master Servicer under any subservicing agreement in accordance with the terms
thereof; provided that the Trustee (or any other successor servicer) shall not
incur any liability or have any obligations in its capacity as servicer under a
subservicing agreement arising prior to the date of such succession unless it
expressly elects to succeed to the rights and obligations of the Master Servicer
thereunder; and the Master Servicer shall not thereby be relieved of any
liability or obligations under the subservicing agreement arising prior to the
date of such succession.

         The Master Servicer shall, upon request of the Trustee, but at the
expense of the Master Servicer, deliver to the assuming party all documents and
records relating to each subservicing agreement and the Mortgage Loans then
being serviced thereunder and an accounting of amounts collected held by it and
otherwise use its best efforts to effect the orderly and efficient transfer of
the subservicing agreement to the assuming party.

         Section 3.05 Collection of Mortgage Loan Payments; Certificate Account;
Distribution Account; Seller Shortfall Interest Requirement.

         (a) The Master Servicer shall make reasonable efforts in accordance
with customary and usual standards of practice of prudent mortgage lenders in
the respective states in which the Mortgaged Properties are located 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 and the terms
and provisions of any related Required Insurance Policy. Consistent with the
foregoing, the Master Servicer may in its discretion (i) waive any late payment
charge or any Prepayment Charge or penalty interest in connection with the
prepayment of a Mortgage Loan and (ii) extend the due dates for payments due on
a Mortgage Note for a period not greater than 270 days. In the event of any such
arrangement, the Master Servicer shall make Advances

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on the related Mortgage Loan during the scheduled period in accordance with the
amortization schedule of such Mortgage Loan without modification thereof by
reason of such arrangements. The Master 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.

         (b) The Master Servicer shall establish and maintain a Certificate
Account into which the Master Servicer shall deposit or cause to be deposited on
a daily basis within two Business Days of 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 before the Cut-off Date) and the following amounts required to be
deposited hereunder:

               (i) all payments on account of principal, including Principal
          Prepayments, on the Mortgage Loans;

               (ii) all payments on account of interest (other than interest
          accrued on the Mortgage Loans and due on or prior to the related
          Cut-off Date) on the Mortgage Loans net of the related Servicing Fee
          permitted under Section 3.15 and Prepayment Interest Excess;

               (iii) all Insurance Proceeds, Liquidation Proceeds and Subsequent
          Recoveries, other than proceeds to be applied to the restoration or
          repair of the Mortgaged Property or released to the Mortgagor in
          accordance with the Master Servicer's normal servicing procedures;

               (iv) all Compensating Interest;

               (v) any amount required to be deposited by the Master Servicer
          pursuant to Section 3.05(f) in connection with any losses on Permitted
          Investments;

               (vi) any amounts required to be deposited by the Master Servicer
          pursuant to Section 3.10 hereof;

               (vii) the Purchase Price and any Substitution Adjustment Amount;

               (viii) all Advances made by the Master Servicer pursuant to
          Section 4.01;

               (ix) the Seller Shortfall Interest Requirement;

               (x) all Prepayment Charges collected; and

               (xi) any other amounts required to be deposited hereunder.

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         The foregoing requirements for remittance by the Master Servicer into
the Certificate Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, payments in the nature of
prepayment penalties, late payment charges or assumption fees, if collected,
need not be remitted by the Master Servicer. In the event that the Master
Servicer shall remit any amount not required to be remitted and not otherwise
subject to withdrawal pursuant to Section 3.08 hereof, it may at any time
withdraw or direct the institution maintaining the Certificate Account, to
withdraw such amount from the Certificate Account, any provision herein to the
contrary notwithstanding. Such withdrawal or direction may be accomplished by
delivering written notice thereof to the institution maintaining the Certificate
Account, that describes the amounts deposited in error in the Certificate
Account. The Master Servicer shall maintain adequate records with respect to all
withdrawals made pursuant to this Section. All funds deposited in the
Certificate Account shall be held in trust for the Certificateholders until
withdrawn in accordance with Section 3.08.

         (c) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Distribution Account. The Trustee shall, promptly upon
receipt, deposit in the Distribution Account and retain therein the following:

               (i) the aggregate amount remitted by the Master Servicer pursuant
          to the second paragraph of Section 3.08(a); and

               (ii) any amount required to be deposited by the Master Servicer
          pursuant to Section 3.05(f) in connection with any losses on Permitted
          Investments.

         The foregoing requirements for remittance by the Master Servicer and
deposit by the Trustee into the Distribution Account shall be exclusive. In the
event that the Master Servicer shall remit any amount not required to be
remitted and not otherwise subject to withdrawal pursuant to Section 3.08
hereof, it may at any time direct the Trustee to withdraw such amount from the
Distribution Account, any provision herein to the contrary notwithstanding. Such
direction may be accomplished by delivering a written notice to the Trustee that
describes the amounts deposited in error in the Distribution Account. All funds
deposited in the Distribution Account shall be held by the Trustee in trust for
the Certificateholders until disbursed in accordance with this Agreement or
withdrawn in accordance with Section 3.08. In no event shall the Trustee incur
liability for withdrawals from the Distribution Account at the direction of the
Master Servicer.

         (d) No later than 1:00 p.m. Pacific time on the Business Day prior to
the Master Servicer Advance Date in November 2004, the Seller shall remit to the
Master Servicer, and the Master Servicer shall deposit in the Certificate
Account, the Seller Shortfall Interest Requirement (if any) for such Master
Servicer Advance Date.

         (e) [reserved]

         (f) Each institution that maintains the Certificate Account or the
Distribution Account shall invest the funds in each such account, as directed by
the Master Servicer, in Permitted Investments, which shall mature not later than
(x) in the case of the Certificate Account, the second Business Day next
preceding the related Distribution Account Deposit Date

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(except that if such Permitted Investment is an obligation of the institution
that maintains such Certificate Account, then such Permitted Investment shall
mature not later than the Business Day next preceding such Distribution Account
Deposit Date) and (y) in the case of the Distribution Account, the Business Day
immediately preceding the first Distribution Date that follows the date of such
investment (except that if such Permitted Investment is an obligation of the
institution that maintains such Distribution Account, then such Permitted
Investment shall mature not later than such Distribution Date), in each case,
shall not be sold or disposed of prior to its maturity. All such Permitted
Investments shall be made in the name of the Trustee, for the benefit of the
Certificateholders. In the case of the Certificate Account and the Distribution
Account, all income and gain net of any losses realized from any such investment
shall be for the benefit of the Master Servicer as servicing compensation and
shall be remitted to it monthly as provided herein, all income and gain net of
any losses realized from any such investment shall be for the benefit of the
Seller and shall be remitted to the Seller as provided herein. The amount of any
losses incurred in the Certificate Account or the Distribution Account in
respect of any such investments shall be deposited by the Master Servicer in the
Certificate Account or paid to the Trustee for deposit into the Distribution
Account out of the Master Servicer's own funds immediately as realized. Any
losses incurred in the Carryover Reserve Fund in respect of any such investments
shall be charged against amounts on deposit in the Carryover Reserve Fund (or
such investments) immediately as realized. The Trustee 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 Certificate Account, the Distribution Account,
the Carryover Reserve Fund and made in accordance with this Section 3.05 (or in
the case of the Carryover Reserve Fund, Section 4.08).

         (g) The Master Servicer shall give at least 30 days advance notice to
the Trustee, the Seller, each Rating Agency and the Depositor of any proposed
change of location of the Certificate Account prior to any change thereof. The
Trustee shall give at least 30 days advance notice to the Master Servicer, the
Seller, each Rating Agency and the Depositor of any proposed change of the
location of the Distribution Account, the Carryover Reserve Fund prior to any
change thereof.

         (h) The Trustee shall establish and maintain, on behalf of the Class P
Certificateholders, the Class P Distribution Account. Funds in the Class P
Distribution Account shall be held in trust for the Class P Certificateholders
for the uses and purposes set forth in this Agreement. On the Closing Date, an
amount equal to $100 shall be deposited in the Class P Distribution Account and
shall be held in trust for the Class P Certificateholders for the uses and
purposes set forth in this Agreement. Such funds may not be invested.

         Section 3.06 Collection of Taxes, Assessments and Similar Items; Escrow
Accounts.

         To the extent required by the related Mortgage Note, the Master
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 the Master Servicer) for the payment of taxes, assessments, hazard
insurance premiums or comparable items for the account of the Mortgagors.
Nothing herein shall require the Master Servicer to compel a Mortgagor to
establish an Escrow Account in violation of applicable law.

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<PAGE>

         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 Master Servicer out of related collections for any payments made pursuant to
Sections 3.01 hereof (with respect to taxes and assessments and insurance
premiums) and 3.10 hereof (with respect to hazard insurance), to refund to any
Mortgagors any sums as may be determined to be overages, to pay interest, if
required by law or the terms of the related Mortgage or Mortgage Note, to
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
9.01 hereof. The Escrow Accounts shall not be a part of the Trust Fund.

         Section 3.07 Access to Certain Documentation and Information Regarding
the Mortgage Loans.

         The Master Servicer shall afford the Depositor and the Trustee
reasonable access to all records and documentation regarding the Mortgage Loans
and all accounts, insurance policies and other matters relating to this
Agreement, such access being afforded without charge, but only upon reasonable
request and during normal business hours at the offices of the Master Servicer
designated by it.

         Upon reasonable advance notice in writing if required by federal
regulation, the Master Servicer will provide to each Certificateholder or
Certificate Owner 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 Certificateholder or
Certificate Owner to comply with applicable regulations of the OTS or other
regulatory authorities with respect to investment in the Certificates; provided
that the Master Servicer shall be entitled to be reimbursed by each such
Certificateholder or Certificate Owner for actual expenses incurred by the
Master Servicer in providing such reports and access.

         Section 3.08 Permitted Withdrawals from the Certificate Account,
Distribution Account and the Carryover Reserve Fund.

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

         (i) to pay to the Master Servicer (to the extent not previously paid to
or withheld by the Master Servicer), as servicing compensation in accordance
with Section 3.15, that portion of any payment of interest that equals the
Servicing Fee for the period with respect to which such interest payment was
made, and, as additional servicing compensation, those other amounts set forth
in Section 3.15;

         (ii) to reimburse each of the Master Servicer and the Trustee for
Advances made by it with respect to the Mortgage Loans, such right of
reimbursement pursuant to this subclause (ii) being limited to amounts received
on particular Mortgage Loan(s) (including, for this purpose, Liquidation
Proceeds and Subsequent Recoveries) that represent late recoveries of payments
of principal and/or interest on such particular Mortgage Loan(s) in respect of
which any such Advance was made;

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         (iii) to reimburse each of the Master Servicer and the Trustee for any
Nonrecoverable Advance previously made by it;

         (iv) to reimburse the Master Servicer from Insurance Proceeds for
Insured Expenses covered by the related Required Insurance Policy;

         (v) to pay the Master Servicer any unpaid Servicing Fees and to
reimburse it for any unreimbursed Servicing Advances, the Master Servicer's
right to reimbursement of Servicing Advances pursuant to this subclause (v) with
respect to any Mortgage Loan being limited to amounts received on particular
Mortgage Loan(s) (including, for this purpose, Liquidation Proceeds and
Subsequent Recoveries and purchase and repurchase proceeds) that represent late
recoveries of the payments for which such advances were made pursuant to Section
3.01 or Section 3.06;

         (vi) to pay to the Seller, the Depositor or the Master Servicer, as
applicable, with respect to each Mortgage Loan or property acquired in respect
thereof that has been purchased pursuant to Section 2.02, 2.03 or 3.12, all
amounts received thereon and not taken into account in determining the related
Stated Principal Balance of such repurchased Mortgage Loan;

         (vii) to reimburse the Seller, the Master Servicer or the Depositor for
expenses incurred by any of them in connection with the Mortgage Loans or
Certificates and reimbursable pursuant to Section 6.03 hereof provided that such
amount shall only be withdrawn following the withdrawal from the Certificate
Account for deposit into the Distribution Account pursuant to the following
paragraph;

         (viii) to withdraw pursuant to Section 3.05 any amount deposited in the
Certificate Account and not required to be deposited therein; and

         (ix) to clear and terminate the Certificate Account upon termination of
this Agreement pursuant to Section 9.01 hereof.

         In addition, no later than 1:00 p.m. Pacific time on the Distribution
Account Deposit Date, the Master Servicer shall withdraw from the Certificate
Account and remit to the Trustee the Interest Remittance Amount and the
Principal Remittance Amount for each Loan Group for such Distribution Date to
the extent on deposit in the Certificate Account, and the Trustee shall deposit
such amount in the Distribution Account.

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

         (b) The Trustee shall withdraw funds from the Distribution Account for
distribution to the Certificateholders in the manner specified in this Agreement
(and to withhold from the amounts so withdrawn, the amount of any taxes that it
is authorized to retain pursuant to

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<PAGE>

the last paragraph of Section 8.11). In addition, the Trustee may from time to
time make withdrawals from the Distribution Account for the following purposes:

               (i) to pay to the Master Servicer, as additional servicing
          compensation, earnings on or investment income with respect to funds
          in or credited to the Distribution Account;

               (ii) to pay the Trustee the Trustee Fee on each Distribution
          Date;

               (iii) to withdraw pursuant to Section 3.05 any amount deposited
          in the Distribution Account and not required to be deposited therein;

               (iv) to reimburse the Trustee for any unreimbursed Advances made
          by it pursuant to Section 4.01(b) hereof, such right of reimbursement
          pursuant to this subclause (iv) being limited to (x) amounts received
          on the related Mortgage Loan(s) in respect of which any such Advance
          was made and (y) amounts not otherwise reimbursed to the Trustee
          pursuant to Section 3.08(a)(ii) hereof;

               (v) to reimburse the Trustee for any Nonrecoverable Advance
          previously made by the Trustee pursuant to Section 4.01(b) hereof,
          such right of reimbursement pursuant to this subclause (v) being
          limited to amounts not otherwise reimbursed to the Trustee pursuant to
          Section 3.08(a)(iii) hereof; and

               (vi) to clear and terminate the Distribution Account upon
          termination of the Agreement pursuant to Section 9.01 hereof.

         (c) The Trustee shall withdraw funds from the Carryover Reserve Fund
for distribution to the Certificateholders in the manner specified in this
Agreement (and to withhold from the amounts so withdrawn, the amount of any
taxes that it is authorized to retain pursuant to the last paragraph of Section
8.11). In addition, the Trustee may from time to time make withdrawals from the
Carryover Reserve Fund for the following purposes:

               (i) to withdraw pursuant to Section 3.05 any amount deposited in
          the Carryover Reserve Fund and not required to be deposited therein;
          and

               (ii) to clear and terminate the Carryover Reserve Fund upon
          termination of the Agreement pursuant to Section 9.01 hereof.

         Section 3.09 [Reserved.]

         Section 3.10 Maintenance of Hazard Insurance.

         The Master 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 and (ii) the greater of (a) the outstanding
principal balance of the Mortgage Loan and (b) an amount such that the proceeds
of such policy shall be sufficient to prevent the related Mortgagor and/or
mortgagee from becoming a co-insurer. Each such policy of standard hazard
insurance shall contain, or

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<PAGE>

have an accompanying endorsement that contains, a standard mortgagee clause. The
Master Servicer shall also cause flood insurance to be maintained on property
acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan,
to the extent described below. Pursuant to Section 3.05 hereof, any amounts
collected by the Master Servicer under any such policies (other than the amounts
to be applied to the restoration or repair of the related Mortgaged Property or
property thus acquired or amounts released to the Mortgagor in accordance with
the Master Servicer's normal servicing procedures) shall be deposited in the
Certificate Account. Any cost incurred by the Master Servicer in maintaining any
such insurance shall not, for the purpose of calculating monthly distributions
to the Certificateholders or remittances to the Trustee 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
Master Servicer out of late payments by the related Mortgagor or out of
Liquidation Proceeds to the extent permitted by Section 3.08 hereof. 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 Master 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 lesser of (i) the original
principal balance of the related Mortgage Loan, (ii) the replacement value of
the improvements that are part of such Mortgaged Property, or (iii) the maximum
amount of such insurance available for the related Mortgaged Property under the
Flood Disaster Protection Act of 1973, as amended.

    Section 3.11      Enforcement of Due-On-Sale Clauses; Assumption Agreements.

         (a) Except as otherwise provided in this Section 3.11(a), when any
property subject to a Mortgage has been or is about to be conveyed by the
Mortgagor, the Master 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 permitted under applicable law and governmental
regulations, but only to the extent that such enforcement will not adversely
affect or jeopardize coverage under any Required Insurance Policy.
Notwithstanding the foregoing, the Master 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 Master Servicer is prohibited by law from
enforcing any such due-on-sale clause, or if coverage under any Required
Insurance Policy would be adversely affected, or if nonenforcement is otherwise
permitted hereunder, the Master Servicer is authorized, subject to Section
3.11(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 Master Servicer enters such agreement) by the applicable Required
Insurance Policies. The Master Servicer, subject to Section 3.11(b), is also
authorized with the prior approval of the insurers under any Required Insurance
Policies to enter into a substitution of liability agreement

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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 Master Servicer shall not
be deemed to be in default under this Section 3.11(a) by reason of any transfer
or assumption that the Master Servicer reasonably believes it is restricted by
law from preventing.

         (b) Subject to the Master Servicer's duty to enforce any due-on-sale
clause to the extent set forth in Section 3.11(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 Trustee, or
if an instrument of release signed by the Trustee is required releasing the
Mortgagor from liability on the Mortgage Loan, the Master Servicer shall prepare
and deliver or cause to be prepared and delivered to the Trustee for signature
and shall direct, in writing, the Trustee to execute the assumption agreement
with the Person to whom the Mortgaged Property is to be conveyed and such
modification agreement or supplement to the Mortgage Note or Mortgage or other
instruments as are reasonable or necessary to carry out the terms of the
Mortgage Note or Mortgage or otherwise to comply with any applicable laws
regarding assumptions or the transfer of the Mortgaged Property to such Person.
In connection with any such assumption, no material term of the Mortgage Note
(including, but not limited to, the Mortgage Rate, the amount of the Scheduled
Payment, the Maximum Mortgage Rate, the Minimum Mortgage Rate, the Gross Margin,
the Periodic Rate Cap, the Adjustment Date and any other term affecting the
amount or timing of payment on the Mortgage Loan) may be changed. In addition,
the substitute Mortgagor and the Mortgaged Property must be acceptable to the
Master Servicer in accordance with its underwriting standards as then in effect.
The Master Servicer shall notify the Trustee that any such substitution or
assumption agreement has been completed by forwarding to the 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 Master Servicer for entering into an assumption or substitution of
liability agreement will be retained by the Master Servicer as additional
servicing compensation.

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

         (a) The Master 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 Master 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 and
the requirements of the insurer under any Required Insurance Policy; provided
that the Master 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 Certificate

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Account pursuant to Section 3.08 hereof). The Master Servicer shall be
responsible for all other costs and expenses incurred by it in any such
proceedings; provided that it shall be entitled to reimbursement thereof from
the proceeds of liquidation of the related Mortgaged Property, as contemplated
in Section 3.08 hereof. If the Master Servicer has knowledge that a Mortgaged
Property that the Master Servicer is contemplating acquiring in foreclosure or
by deed-in-lieu of foreclosure is located within a one-mile radius of any site
with environmental or hazardous waste risks known to the Master Servicer, the
Master Servicer will, prior to acquiring the Mortgaged Property, consider such
risks and only take action in accordance with its established environmental
review procedures.

         With respect to any REO Property, the deed or certificate of sale shall
be taken in the name of the Trustee for the benefit of the Certificateholders
(or the Trustee's nominee on behalf of the Certificateholders). The Trustee's
name shall be placed on the title to such REO Property solely as the Trustee
hereunder and not in its individual capacity. The Master Servicer shall ensure
that the title to such REO Property references this Agreement and the Trustee's
capacity thereunder. Pursuant to its efforts to sell such REO Property, the
Master Servicer shall either itself or through an agent selected by the Master
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
Certificateholders, rent the same, or any part thereof, as the Master Servicer
deems to be in the best interest of the Master Servicer and the
Certificateholders for the period prior to the sale of such REO Property. The
Master Servicer shall prepare for and deliver to the Trustee a statement with
respect to each 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
Trustee to comply with the reporting requirements of the REMIC Provisions. The
net monthly rental income, if any, from such REO Property shall be deposited in
the Certificate Account no later than the close of business on each
Determination Date. The Master Servicer shall perform the tax reporting and
withholding related to foreclosures, abandonments and cancellation of
indebtedness income as specified by Sections 1445, 6050J and 6050P of the Code
by preparing and filing such tax and information returns, as may be required.

         In the event that the Trust Fund acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property as
soon as practicable in a manner that maximizes the Liquidation Proceeds, but in
no event later than three years after its acquisition by the Trust Fund or, at
the expense of the Trust Fund, the Master Servicer shall request, more than 60
days prior to the day on which such three-year period would otherwise expire, an
extension of the three-year grace period. In the event the Trustee shall have
been supplied with an Opinion of Counsel (such opinion not to be an expense of
the Trustee) to the effect that the holding by the Trust Fund of such Mortgaged
Property subsequent to such three-year period will not result in the imposition
of taxes on "prohibited transactions" of the Trust Fund as defined in section
860F of the Code or cause the Trust Fund to fail to qualify as a REMIC at any
time that any Certificates are outstanding, the Trust Fund may continue to hold
such Mortgaged Property (subject to any conditions contained in such Opinion of
Counsel) after the expiration of such three-year period. Notwithstanding any
other provision of this Agreement, no Mortgaged Property acquired by the Trust
Fund shall be rented (or allowed to continue to be rented) or

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otherwise used for the production of income by or on behalf of the Trust Fund in
such a manner or pursuant to any terms that would (i) cause such Mortgaged
Property to fail to qualify as "foreclosure property" within the meaning of
section 860G(a)(8) of the Code or (ii) subject the Trust Fund to the imposition
of any federal, state or local income taxes on the income earned from such
Mortgaged Property under section 860G(c) of the Code or otherwise, unless the
Master Servicer has agreed to indemnify and hold harmless the Trust Fund with
respect to the imposition of any such taxes.

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

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

         The proceeds of any Liquidated Loan, as well as any recovery resulting
from a partial collection of liquidation proceeds or any income from an REO
Property, will be applied in the following order of priority: first, to
reimburse the Master Servicer for any related unreimbursed Servicing Advances
and Servicing Fees, pursuant to Section 3.08(a)(v) or this Section 3.12; second,
to reimburse the Master Servicer for any unreimbursed Advances, pursuant to
Section 3.08(a)(ii) or this Section 3.12; third, to accrued and unpaid interest
(to the extent no Advance has been made for such amount) on the Mortgage Loan or
related REO Property, at the Net Mortgage Rate to the Due Date occurring in the
month in which such amounts are required to be distributed; and fourth, as a
recovery of principal of the Mortgage Loan.

         (b) On each Determination Date, the Master Servicer shall determine the
respective aggregate amounts of Excess Proceeds and Realized Losses, if any, for
the related Prepayment Period.

         (c) The Master Servicer, in its sole discretion, shall have the right
to elect (by written notice sent to the Trustee) to purchase for its own account
from the Trust Fund any Mortgage Loan that is 150 days or more delinquent during
any Calendar Quarter at a price equal

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to the Purchase Price; provided, however, that the Master Servicer may only
exercise this right during the period beginning on the first Business Day of the
following Calendar Quarter, and ending at the close of business on the
second-to-last Business Day of such following Calendar Quarter in which such
Mortgage Loan became 150 days delinquent (such month, the "Eligible Repurchase
Month"); provided further, that any such Mortgage Loan which becomes current but
thereafter becomes delinquent may be purchased by the Master Servicer pursuant
to this Section in any ensuing Eligible Repurchase Month. The Purchase Price for
any Mortgage Loan purchased hereunder shall be delivered to the Trustee for
deposit in the Certificate Account and the Trustee, upon receipt of such deposit
and a Request for Release from the Master Servicer in the form of Exhibit N
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 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 Trustee or the
Certificateholders with respect thereto.

         Section 3.13 Trustee to Cooperate; Release of Mortgage Files.

         Upon the payment in full of any Mortgage Loan, or the receipt by the
Master Servicer of a notification that payment in full will be escrowed in a
manner customary for such purposes, the Master Servicer will promptly notify the
Trustee by delivering a Request for Release substantially in the form of Exhibit
N. Upon receipt of such request, the Trustee shall promptly release the related
Mortgage File to the Master Servicer, and the Trustee shall at the Master
Servicer's direction execute and deliver to the Master 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 provided by the
Master Servicer, together with the Mortgage Note with written evidence of
cancellation thereon. The Master Servicer is authorized to cause the removal
from the registration on the MERS(R) System of such Mortgage and to execute and
deliver, on behalf of the Trust Fund and the Certificateholders or any of them,
any and all instruments of satisfaction or cancellation or of partial or full
release. No expenses incurred in connection with any instrument of satisfaction
or deed of reconveyance shall be chargeable to the Certificate Account, the
Distribution Account, the Carryover Reserve Fund or the related subservicing
account. 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 Trustee shall, upon delivery to the Trustee of a Request for Release
in the form of Exhibit M signed by a Servicing Officer, release the Mortgage
File to the Master Servicer. Subject to the further limitations set forth below,
the Master Servicer shall cause the Mortgage File or documents so released to be
returned to the Trustee when the need therefor by the Master Servicer no longer
exists, unless the Mortgage Loan is liquidated and the proceeds

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thereof are deposited in the Certificate Account, in which case the Trustee
shall deliver the Request for Release to the Master Servicer.

         If the Master Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this Agreement,
the Master Servicer shall deliver or cause to be delivered to the Trustee, for
signature, as appropriate, any court pleadings, requests for trustee's sale or
other documents necessary to effectuate such foreclosure or any legal action
brought to obtain judgment against the Mortgagor on the Mortgage Note or the
Mortgage or to obtain a deficiency judgment or to enforce any other remedies or
rights provided by the Mortgage Note or the Mortgage or otherwise available at
law or in equity. Notwithstanding the foregoing, the Master Servicer shall cause
possession of any Mortgage File or of the documents therein that shall have been
released by the Trustee to be returned to the Trustee within 21 calendar days
after possession thereof shall have been released by the Trustee unless (i) the
Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the
Mortgage Loan have been deposited in the Certificate Account, and the Master
Servicer shall have delivered to the Trustee a Request for Release in the form
of Exhibit N or (ii) the Mortgage File or document shall have been delivered to
an attorney or to a public trustee or other public official as required by law
for purposes of initiating or pursuing legal action or other proceedings for the
foreclosure of the Mortgaged Property and the Master Servicer shall have
delivered to the Trustee an Officer's Certificate of a Servicing Officer
certifying as to the name and address of the Person to which the Mortgage File
or the documents therein were delivered and the purpose or purposes of such
delivery.

         Section 3.14   Documents, Records and Funds in Possession of Master
                        Servicer to be Held for the Trustee.

         Notwithstanding any other provisions of this Agreement, the Master
Servicer shall transmit to the Trustee as required by this Agreement all
documents and instruments in respect of a Mortgage Loan coming into the
possession of the Master Servicer from time to time and shall account fully to
the Trustee for any funds received by the Master Servicer or that otherwise are
collected by the Master Servicer as Liquidation Proceeds, Subsequent Recoveries
or Insurance Proceeds in respect of any Mortgage Loan. All Mortgage Files and
funds collected or held by, or under the control of, the Master Servicer 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 Certificate Account, shall be held by the Master
Servicer for and on behalf of the Trust Fund and shall be and remain the sole
and exclusive property of the Trust Fund, subject to the applicable provisions
of this Agreement. The Master Servicer also agrees that it shall not create,
incur or subject any Mortgage File or any funds that are deposited in the
Certificate Account, Distribution Account or Carryover Reserve Fund or in any
Escrow Account (as defined in Section 3.06), or any funds that otherwise are or
may become due or payable to the Trustee for the benefit of the
Certificateholders, to any claim, lien, security interest, judgment, levy, writ
of attachment or other encumbrance, or assert by legal action or otherwise any
claim or right of set off against any Mortgage File or any funds collected on,
or in connection with, a Mortgage Loan, except, however, that the Master
Servicer shall be entitled to set off against and deduct from any such funds any
amounts that are properly due and payable to the Master Servicer under this
Agreement.

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         Section 3.15 Servicing Compensation.

         As compensation for its activities hereunder, the Master Servicer shall
be entitled to retain or withdraw from the Certificate Account out of each
payment of interest on a Mortgage Loan included in the Trust Fund an amount
equal to interest at the applicable Servicing Fee Rate on the Stated Principal
Balance of the related Mortgage Loan for the period covered by such interest
payment.

         Additional servicing compensation in the form of Excess Proceeds,
assumption fees, late payment charges, Prepayment Interest Excess, and all
income and gain net of any losses realized from Permitted Investments shall be
retained by the Master Servicer to the extent not required to be deposited in
the Certificate Account pursuant to Section 3.05 or 3.12(a) hereof. The Master
Servicer shall be required to pay all expenses incurred by it in connection with
its servicing activities hereunder (including payment of any premiums for hazard
insurance, as required by Section 3.10 hereof and maintenance of the other forms
of insurance coverage required by Section 3.10 hereof) and shall not be entitled
to reimbursement therefor except as specifically provided in Sections 3.08 and
3.12 hereof.

         Section 3.16 Access to Certain Documentation.

         The Master Servicer shall provide to the OTS and the FDIC and to
comparable regulatory authorities supervising Holders of the Certificates or
Certificate Owners and the examiners and supervisory agents of the OTS, the FDIC
and such other authorities, access to the documentation regarding the Mortgage
Loans required by applicable regulations of the OTS and the FDIC. Such access
shall be afforded without charge, but only upon reasonable and prior written
request and during normal business hours at the offices of the Master Servicer
designated by it. Nothing in this Section shall limit the obligation of the
Master Servicer to observe any applicable law prohibiting disclosure of
information regarding the Mortgagors and the failure of the Master Servicer to
provide access as provided in this Section as a result of such obligation shall
not constitute a breach of this Section.

         Section 3.17 Annual Statement as to Compliance.

         The Master Servicer shall deliver to the Depositor and the Trustee on
or before the 80th day after the end of the Master Servicer's fiscal year,
commencing with its 2004 fiscal year, an Officer's Certificate stating, as to
the signer thereof, that (i) a review of the activities of the Master Servicer
during the preceding calendar 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 its obligations under this Agreement throughout such year, or,
if there has been a default in the fulfillment of any such obligation,
specifying each such default known to such officer and the nature and status
thereof and (iii) to the best of such officer's knowledge, each Subservicer has
fulfilled all its obligations under its Subservicing Agreement throughout such
year, or, if there has been a default in the fulfillment of any such obligation
specifying each such default known to such officer and the nature and status
thereof. The Trustee shall forward a copy of each such statement to each Rating
Agency. Copies of such statement shall be provided by the Trustee to

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any Certificateholder upon request at the Master Servicer's expense, provided
such statement is delivered by the Master Servicer to the Trustee.

         Section 3.18   Annual Independent Public Accountants' Servicing
                        Statement; Financial Statements.

         On or before the later of (i) the 80th day after the end of the Master
Servicer's fiscal year, commencing with its 2004 fiscal year or (ii) within 30
days of the issuance of the annual audited financial statements beginning with
the audit for the period ending in 2004, the Master Servicer at its expense
shall cause a nationally recognized firm of independent public accountants (who
may also render other services to the Master Servicer, the Seller or any
affiliate thereof) that is a member of the American Institute of Certified
Public Accountants to furnish a report to the Trustee, Depositor and the Seller
in compliance with the Uniform Single Attestation Program for Mortgage Bankers.
Copies of such report shall be provided by the Trustee to any Certificateholder
upon request at the Master Servicer's expense, provided such report is delivered
by the Master Servicer to the Trustee. Upon written request, the Master Servicer
shall provide to the Certificateholders its publicly available annual financial
statements (or, for so long as Countrywide Home Loans Servicing LP is the Master
Servicer hereunder, the Master Servicer's parent company's publicly available
annual financial statements), if any, promptly after they become available.

         Section 3.19  The Corridor Contracts.

         The Seller shall assign all of its right, title and interest in and to
the interest rate cap transactions evidenced by the Corridor Contracts to, and
shall cause all of its obligations in respect of such transaction to be assumed
by, the Trustee on behalf of the Trust Fund, on the terms and conditions set
forth in the Corridor Contract Novation Agreement. The Corridor Contracts will
be assets of the Trust Fund but will not be assets of any REMIC. The Master
Servicer, on behalf of the Trustee, shall deposit any amounts received from time
to time with respect to the Corridor Contracts into the Carryover Reserve Fund.
The parties hereto acknowledge and agree that the Trustee is directed and
authorized by the Depositor to sign the Corridor Contract Novation Agreement and
shall be fully protected in relying thereon. The representations made by the
Bank of New York as Assignee under the Corridor Contract Novation Agreement are
made by the Trustee on behalf of, and solely as Trustee (and not in its
individual capacity) for the Trust Fund. The representations made by the Bank of
New York as Assignee under the Corridor Contract Novation Agreement are made by
the Trustee on behalf of, and solely as Trustee (and not in its individual
capacity) for the Trust Fund.

         The Master Servicer, on behalf of the Trustee, shall prepare and
deliver any notices required to be delivered under the Corridor Contracts.

         The Master Servicer, on behalf of the Trustee, shall act as calculation
agent and/or shall terminate the Corridor Contracts, in each case upon the
occurrence of certain events of default or termination events to the extent
specified thereunder. Upon any such termination, the Corridor Contract
Counterparty will be obligated to pay the Trustee or the Master Servicer for the
benefit of the Trust Fund an amount in respect of such termination. Any amounts
received by the Trustee or the Master Servicer for the benefit of the Trust
Fund, as the case may be, in respect of

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such termination shall be deposited and held in the Carryover Reserve Fund to
pay Net Rate Carryover for the applicable Certificates (by deposit of the amount
of any such Net Rate Carryover in the Carryover Reserve Fund for payment to the
related Certificateholders) as provided in Section 4.04(a) on Distribution Dates
following such termination to and including the Cap Contract Termination Date.
On the related Corridor Contract Termination Date, after all other distributions
on such date, if any such amounts in respect of early termination remain in the
Carryover Reserve Fund, such amounts shall be distributed by the Trustee to the
Class C Certificateholder.

         Section 3.20 Prepayment Charges.

         (a) Notwithstanding anything in this Agreement to the contrary, in the
event of a Principal Prepayment in full or in part of a Mortgage Loan, the
Master Servicer may not waive any Prepayment Charge or portion thereof required
by the terms of the related Mortgage Note unless (i) the Master Servicer
determines that such waiver would maximize recovery of Liquidation Proceeds for
such Mortgage Loan, taking into account the value of such Prepayment Charge, or
(ii) (A) the enforceability thereof is limited (1) by bankruptcy, insolvency,
moratorium, receivership, or other similar law relating to creditors' rights
generally or (2) due to acceleration in connection with a foreclosure or other
involuntary payment, or (B) the enforceability is otherwise limited or
prohibited by applicable law. In the event of a Principal Prepayment in full or
in part with respect to any Mortgage Loan, the Master Servicer shall deliver to
the Trustee an Officer's Certificate substantially in the form of Exhibit T no
later than the third Business Day following the immediately succeeding
Determination Date with a copy to the Class P Certificateholders. If the Master
Servicer has waived or does not collect all or a portion of a Prepayment Charge
relating to a Principal Prepayment in full or in part due to any action or
omission of the Master Servicer, other than as provided above, the Master
Servicer shall deliver to the Trustee, together with the Principal Prepayment in
full or in part, the amount of such Prepayment Charge (or such portion thereof
as had been waived) for deposit into the Certificate Account (not later than the
immediately succeeding Master Servicer Advance Date, in the case of such
Prepayment Charge) for distribution in accordance with the terms of this
Agreement.

         (b) Upon discovery by the Master Servicer or a Responsible Officer of
the Trustee of a breach of the foregoing subsection (a), the party discovering
the breach shall give prompt written notice to the other parties.

         (c) The Seller represents and warrants to the Depositor and the
Trustee, as of the Closing Date, that the information in the Prepayment Charge
Schedule (including the attached prepayment charge summary) is complete and
accurate in all material respects at the dates as of which the information is
furnished and each Prepayment Charge is permissible and enforceable in
accordance with its terms under applicable state law, except as the
enforceability thereof is limited due to acceleration in connection with a
foreclosure or other involuntary payment.

         (d) Upon discovery by the Master Servicer or a Responsible Officer of
the Trustee of a breach of the foregoing clause (c) that materially and
adversely affects right of the Holders of the Class P Certificates to any
Prepayment Charge, the party discovering the breach shall give prompt written
notice to the other parties. Within 60 days of the earlier of discovery by the

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Master Servicer or receipt of notice by the Master Servicer of breach, the
Master Servicer shall cure the breach in all material respects or shall pay into
the Certificate Account the amount of the Prepayment Charge that would otherwise
be due from the Mortgagor, less any amount representing such Prepayment Charge
previously collected and paid by the Master Servicer into the Certificate
Account.

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                                   ARTICLE IV

                                DISTRIBUTIONS AND
                         ADVANCES BY THE MASTER SERVICER

         Section 4.01 Advances.

         (a) The Master Servicer shall determine on or before each Master
Servicer Advance Date whether it is required to make an Advance pursuant to the
definition thereof. If the Master Servicer determines it is required to make an
Advance, it shall, on or before the Master Servicer Advance Date, either (i)
deposit into the Certificate Account an amount equal to the Advance or (ii) make
an appropriate entry in its records relating to the Certificate Account that any
Amount Held for Future Distribution has been used by the Master Servicer in
discharge of its obligation to make any such Advance. Any funds so applied shall
be replaced by the Master Servicer by deposit in the Certificate Account no
later than the close of business on the next Master Servicer Advance Date. The
Master Servicer shall be entitled to be reimbursed from the Certificate Account
for all Advances of its own funds made pursuant to this Section as provided in
Section 3.08. The obligation to make 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.

         (b) If the Master Servicer determines that it will be unable to comply
with its obligation to make the Advances as and when described in the second
sentence of Section 4.01(a), it shall use its best efforts to give written
notice thereof to the Trustee (each such notice a "Trustee Advance Notice"; and
such notice may be given by telecopy), not later than 3:00 P.M., New York time,
on the Business Day immediately preceding the related Master Servicer Advance
Date, specifying the amount that it will be unable to deposit (each such amount
an "Advance Deficiency") and certifying that such Advance Deficiency constitutes
an Advance hereunder and is not a Nonrecoverable Advance. If the Trustee
receives a Trustee Advance Notice on or before 3:30 P.M., New York time on a
Master Servicer Advance Date, the Trustee shall, not later than 3:00 P.M., New
York time, on the related Distribution Date, deposit in the Distribution Account
an amount equal to the Advance Deficiency identified in such Trustee Advance
Notice unless it is prohibited from so doing by applicable law. Notwithstanding
the foregoing, the Trustee shall not be required to make such deposit if the
Trustee shall have received written notification from the Master Servicer that
the Master Servicer has deposited or caused to be deposited in the Certificate
Account an amount equal to such Advance Deficiency. All Advances made by the
Trustee pursuant to this Section 4.01(b) shall accrue interest on behalf of the
Trustee at the Trustee Advance Rate from and including the date such Advances
are made to but excluding the date of repayment, with such interest being an
obligation of the Master Servicer and not the Trust Fund. The Master Servicer
shall reimburse the Trustee for the amount of any Advance made by the Trustee
pursuant to this Section 4.01(b) together with accrued interest, not later than
6:00 P.M., New York time on the Business Day following the related Distribution
Date. In the event that the Master Servicer does not reimburse the Trustee in
accordance with the requirements of the preceding sentence, the Trustee shall
immediately (a) terminate all of the rights and obligations of the Master
Servicer under this Agreement in

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accordance with Section 7.01 and (b) subject to the limitations set forth in
Section 3.04, assume all of the rights and obligations of the Master Servicer
hereunder.

         (c) The Master Servicer, not later than the close of business on the
second Business Day immediately preceding each Distribution Date, shall deliver
to the Trustee a report (in the form and substance reasonably satisfactory to
the Trustee) that indicates (i) the Mortgage Loans with respect to which the
Master Servicer has determined that the related Scheduled Payments should be
advanced and (ii) the amount of the related Scheduled Payments. The Master
Servicer shall deliver to the Trustee on the related Master Servicer Advance
Date an Officer's Certificate of a Servicing Officer indicating the amount of
any proposed Advance determined by the Master Servicer to be a Nonrecoverable
Advance.

         Section 4.02  Reduction of Servicing Compensation in Connection with
                       Prepayment Interest Shortfalls.

         In the event that any Mortgage Loan is the subject of a Prepayment
Interest Shortfall, the Master Servicer shall, to the extent of one-half of the
Servicing Fee for such Distribution Date, deposit into the Certificate Account,
as a reduction of the Servicing Fee (but not in excess of one-half thereof) for
such Distribution Date, no later than the close of business on the Business Day
immediately preceding such Distribution Date, an amount equal to the Prepayment
Interest Shortfall; and in case of such deposit, the Master Servicer shall not
be entitled to any recovery or reimbursement from the Depositor, the Trustee,
the Trust Fund or the Certificateholders.

         Section 4.03 [Reserved]

         Section 4.04 Distributions

         (a) On each Distribution Date, the Interest Funds for such Distribution
Date shall be allocated by the Trustee from the Distribution Account in the
following order of priority, until such Interest Funds have been fully
disbursed:

               (i) concurrently

                        (A) from the Interest Funds for Loan Group 1 (and
               after the distribution of Interest Funds from Loan Group 2 as
               provided in clause (B) below, from Interest Funds for Loan
               Group 2), to each Class of the Class 1-A Certificates, pro
               rata, based on their respective entitlements, the Current
               Interest and any Interest Carry Forward Amount for such Class,
               and

                        (B) from the Interest Funds for Loan Group 2 (and
               after the distribution of Interest Funds from Loan Group 1 as
               provided in clause (A) above, from Interest Funds for Loan
               Group 1), to each Class of the Class 2-A Certificates, pro
               rata, based on their respective entitlements, the Current
               Interest and any Interest Carry Forward Amount for such Class;

               (ii) from the Interest Funds for both Loan Groups to the Class
          M-1 Certificates, the Class M-1 Current Interest;

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               (iii) from the Interest Funds for both Loan Groups to the Class
          M-2 Certificates, the Class M-2 Current Interest;

               (iv) from the Interest Funds for both Loan Groups to the Class
          M-3 Certificates, the Class M-3 Current Interest;

               (v) from the Interest Funds for both Loan Groups to the Class M-4
          Certificates, the Class M-4 Current Interest;

               (vi) from the Interest Funds for both Loan Groups to the Class
          M-5 Certificates, the Class M-5 Current Interest;

               (vii) from the Interest Funds for both Loan Groups to the Class
          M-6 Certificates, the Class M-6 Current Interest;

               (viii) from the Interest Funds for both Loan Groups to the Class
          M-7 Certificates, the Class M-7 Current Interest;

               (ix) from the Interest Funds for both Loan Groups to the Class
          M-8 Certificates, the Class M-8 Current Interest;

               (x) from the Interest Funds for both Loan Groups to the Class B
          Certificates, the Class B Current Interest; and

               (xi) any remainder, as part of the Excess Cashflow.

         (b) On each Distribution Date on or prior to the related Corridor
Contract Termination Date, amounts received in respect of the Corridor Contracts
for such Distribution Date will be deposited in the Carryover Reserve Fund to be
distributed to each applicable Class of Certificates (other than the Class A-R
Certificates and Class P Certificates) pursuant to Section 4.04(e)(iv);
provided, however, that if the Corridor Contracts are subject to early
termination, early termination payments shall be held by the Trustee until the
related Corridor Contract Termination Date and deposited in the Carryover
Reserve Fund, as necessary, to pay any Net Rate Carryover as provided in Section
3.19.

         (c) Upon the earlier of (a) the exercise of the Optional Termination by
the holder of the Class C Certificates or the Master Servicer pursuant to
Section 9.01 and (b) the Class P Principal Distribution Date, all funds on
deposit in the Class P Distribution Account shall be distributed the Class P
Certificates.

         (d) On each Distribution Date, the Principal Distribution Amount for
such Distribution Date with respect to each Loan Group shall be allocated by the
Trustee from the Distribution Account in the following order of priority until
such Principal Distribution Amount has been fully distributed:

               (i) with respect to any Distribution Date prior to the Stepdown
          Date or as to which a Trigger Event is in effect:

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                           (A) concurrently, (i) from the Principal Distribution
                  Amount for Loan Group 1, sequentially, (a) to the Class A-R
                  Certificates until the Certificate Principal Balance thereof
                  is reduced to zero and, (b) pro rata, to the Class 1-A-1
                  Certificates and Class 1-A-2 Certificates, until the
                  Certificate Principal Balance of each such Class is reduced to
                  zero and (ii) from the Principal Distribution Amount for Loan
                  Group 2, sequentially, to the Class 2-A-1, Class 2-A-2, and
                  Class 2-A-3 Certificates, in that order, until the Certificate
                  Principal Balance of each such Class is reduced to zero;
                  provided, however, that if (i) the aggregate Certificate
                  Principal Balance of the Senior Certificates is greater than
                  the aggregate Stated Principal Balance of the Mortgage Loans
                  and (ii) the aggregate Certificate Principal Balance of the
                  Class 2-A Certificates is greater than the Stated Principal
                  Balance of the Mortgage Loans in Loan Group 2, the
                  distributions on the Class 2-A-1, Class 2-A-2 and Class 2-A-3
                  Certificates will be made concurrently on a pro rata basis;
                  provided, further, however, that (x) after the Certificate
                  Principal Balances of the Class 1-A Certificates have been
                  reduced to zero, the Principal Distribution Amount remaining
                  from both Loan Groups will be applied to the Class 2-A-1,
                  Class 2-A-2, and Class 2-A-3 Certificates, on a pro rata
                  basis, until the Certificate Principal Balance of each such
                  Class is reduced to zero and (y) after the Certificate
                  Principal Balances of the Class 2-A Certificates have been
                  reduced to zero, the Principal Distribution Amount remaining
                  from both Loan Groups will be applied to the Class 1-A-1
                  Certificates and Class 1-A-2 Certificates, on a pro rata
                  basis, until the Certificate Principal Balance of each such
                  Class is reduced to zero;

                           (B) the remaining Principal Distribution Amount for
                  both Loan Groups, to the Class M-1 Certificates, until the
                  Certificate Principal Balance thereof is reduced to zero;

                           (C) the remaining Principal Distribution Amount for
                  both Loan Groups, to the Class M-2 Certificates, until the
                  Certificate Principal Balance thereof is reduced to zero;

                           (D) the remaining Principal Distribution Amount for
                  both Loan Groups, to the Class M-3 Certificates, until the
                  Certificate Principal Balance thereof is reduced to zero;

                           (E) the remaining Principal Distribution Amount for
                  both Loan Groups, to the Class M-4 Certificates, until the
                  Certificate Principal Balance thereof is reduced to zero;

                           (F) the remaining Principal Distribution Amount for
                  both Loan Groups, to the Class M-5 Certificates, until the
                  Certificate Principal Balance thereof is reduced to zero;

                           (G) the remaining Principal Distribution Amount for
                  both Loan Groups, to the Class M-6 Certificates, until the
                  Certificate Principal Balance thereof is reduced to zero;

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                           (H) the remaining Principal Distribution Amount for
                  both Loan Groups, to the Class M-7 Certificates, until the
                  Certificate Principal Balance thereof is reduced to zero;

                           (I) the remaining Principal Distribution Amount for
                  both Loan Groups, to the Class M-8 Certificates, until the
                  Certificate Principal Balance thereof is reduced to zero;

                           (J) the remaining Principal Distribution Amount for
                  both Loan Groups, to the Class B Certificates, until the
                  Certificate Principal Balance thereof is reduced to zero; and

                           (K) any remainder, as part of the Excess Cashflow.

               (ii) with respect to each Distribution Date on and after the
          Stepdown Date and as to which a Trigger Event is not in effect:

                           (A) concurrently, (i) the Class 1-A Principal
                  Distribution Amount will be distributed to the Class 1-A-1
                  Certificates and Class 1-A-2 Certificates, pro rata, until the
                  Certificate Principal Balance of each such Class is reduced to
                  zero and (ii) the Class 2-A Principal Distribution Amount will
                  be distributed sequentially, to the Class 2-A-1, Class 2-A-2,
                  and Class 2-A-3 Certificates, in that order, until the
                  Certificate Principal Balance of each such Class is reduced to
                  zero; provided, however, that if (i) the aggregate Certificate
                  Principal Balance of the Senior Certificates is greater than
                  the aggregate Stated Principal Balance of the Mortgage Loans
                  and (ii) the aggregate Certificate Principal Balance of the
                  Class 2-A Certificates is greater than the Stated Principal
                  Balance of the Mortgage Loans in Loan Group 2, the
                  distributions on the Class 2-A-1, Class 2-A-2 and Class 2-A-3
                  Certificates will be made concurrently on a pro rata basis;
                  provided, further however, that (x) after the Certificate
                  Principal Balances of the Class 1-A Certificates have been
                  reduced to zero, the remaining Class 1-A Principal
                  Distribution Amount will be applied to the Class 2-A-1, Class
                  2-A-2 and Class 2-A-3 Certificates concurrently, on a pro rata
                  basis after giving effect to payments made pursuant to clause
                  (A)(ii) above, until the Certificate Principal Balance of each
                  such Class is reduced to zero and (y) after the Certificate
                  Principal Balances of the Class 2-A Certificates have been
                  reduced to zero, the remaining Class 2-A Principal
                  Distribution Amount will be applied to the Class 1-A-1
                  Certificates and Class 1-A-2 Certificates concurrently, on a
                  pro rata basis after giving effect to payments made pursuant
                  to clause (A)(i) above, until the Certificate Principal
                  Balance of each such Class is reduced to zero;

                           (B) to the Class M-1 Certificates, the Class M-1
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof is reduced to zero;

                           (C) to the Class M-2 Certificates, the Class M-2
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof is reduced to zero;

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                           (D) to the Class M-3 Certificates, the Class M-3
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof is reduced to zero;

                           (E) to the Class M-4 Certificates, the Class M-4
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof is reduced to zero;

                           (F) to the Class M-5 Certificates, the Class M-5
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof is reduced to zero;

                           (G) to the Class M-6 Certificates, the Class M-6
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof is reduced to zero;

                           (H) to the Class M-7 Certificates, the Class M-7
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof is reduced to zero;

                           (I) to the Class M-8 Certificates, the Class M-8
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof is reduced to zero;

                           (G) to the Class B Certificates, the Class B
                  Principal Distribution Amount, until the Certificate Principal
                  Balance thereof is reduced to zero; and

                           (H) any remainder, as part of the Excess Cashflow.

         (e) With respect to any Distribution Date, any Excess Cashflow and each
Corridor Contract Payment Amount will be paid to the Classes of Certificates,
after payment of the Seller Shortfall Interest Requirement, if any, as follows:

               (i) from Excess Cashflow from both Loan Groups, to the holders of
          the Class or Classes of Offered Certificates (other than the Class A-R
          Certificates) then entitled to receive distributions in respect of
          principal, in an amount equal to the Extra Principal Distribution
          Amount, payable to such holders as part of the Principal Distribution
          Amount pursuant to Section 4.04(d) above

               (ii) from any remaining Excess Cashflow from both Loan Groups,
          sequentially to the holders of the Class M-1, Class M-2, Class M-3,
          Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B
          Certificates, in that order, in an amount equal to any Interest Carry
          Forward Amount for each such Class;

               (iii) from any remaining Excess Cashflow from both Loan Groups,
          sequentially to the holders of the Class 1-A-2, Class M-1, Class M-2,
          Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and
          Class B Certificates, in that order, in an amount equal to the Unpaid
          Realized Loss Amounts for each such Class;

               (iv) (a) from the Class 1-A Corridor Contract Payment Amount, to
         the Class 1-A-1 Certificates and Class 1-A-2 Certificates, on a pro
         rata basis, based on the Certificate Principal Balances thereof, to the
         extent needed to pay any related Net Rate Carryover for each such
         Class; provided that any Class 1-A Corridor Contract Payment Amount
         remaining after such allocation to pay Net Rate Carryover based on the
         Certificate

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          Principal Balances of these Certificates will be distributed to each
          such Class of Certificates with respect to which there remains any
          unpaid Net Rate Carryover (after the distribution based on Certificate
          Principal Balances), pro rata, based on the amount of such unpaid Net
          Rate Carryover, until reduced to zero, (b) from the Class 2-A Corridor
          Contract Payment Amount, to the Class 2-A-1, Class 2-A-2, and Class
          2-A-3 Certificates, on a pro rata basis, based on the Certificate
          Principal Balances thereof, to the extent needed to pay any related
          Net Rate Carryover for each such Class; provided that any Class 2-A
          Corridor Contract Payment Amount remaining after such allocation to
          pay Net Rate Carryover based on the Certificate Principal Balances of
          these Certificates will be distributed to each such Class of
          Certificates with respect to which there remains any unpaid Net Rate
          Carryover (after the distribution based on Certificate Principal
          Balances), pro rata, based on the amount of such unpaid Net Rate
          Carryover, until reduced to zero, and (c) from the Subordinated
          Corridor Contract Payment Amount, to the Class M-1, Class M-2, Class
          M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B
          Certificates, on a pro rata basis, based on the Certificate Principal
          Balances thereof, to the extent needed to pay any related Net Rate
          Carryover for each such Class; provided that any Subordinated Corridor
          Contract Payment Amount remaining after such allocation to pay Net
          Rate Carryover based on the Certificate Principal Balances of these
          Certificates will be distributed to each such Class of Certificates
          with respect to which there remains any unpaid Net Rate Carryover
          (after the distribution based on Certificate Principal Balances), pro
          rata, based on the amount of such unpaid Net Rate Carryover, until
          reduced to zero;

               (v) from any remaining Excess Cashflow from both Loan Groups and
          any remaining Corridor Contract Payment Amounts as provided in clause
          (iv) above, to the Class 1-A-1, Class 1-A-2, Class 2-A-1, Class 2-A-2,
          Class 2-A-3, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
          Class M-6, Class M-7, Class M-8 and Class B Certificates, on a pro
          rata basis, based on the Certificate Principal Balances thereof, to
          the extent needed to pay any remaining Net Rate Carryover for each
          such Class; provided that any amounts remaining after such allocation
          to pay Net Rate Carryover based on the Certificate Principal Balances
          of these Certificates will be distributed to each such Class of
          Certificates with respect to which there remains any unpaid Net Rate
          Carryover (after the distribution based on Certificate Principal
          Balances), pro rata, based on the amount of such unpaid Net Rate
          Carryover, until reduced to zero

               (vi) from any remaining Excess Cashflow from both Loan Groups, to
          the Class C Certificates, (x) the Current Interest for such Class and
          (y) any remaining Excess Cashflow shall be paid to the Class C
          Certificates;

               (vii) from any remaining Excess Cashflow from both Loan Groups
          and any remaining Corridor Contract Payment Amount, if (x) the related
          Corridor Contract has not been terminated or (y) on any Distribution
          Date on or after the related Corridor Contract Termination Date, to
          the Class C Certificates; and

               (viii) any remaining Excess Cashflow from both Loan Groups, to
          the Class A-R Certificates.

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         (f) On each Distribution Date, all Prepayment Charges (including
amounts deposited in connection with the full or partial waiver of such
Prepayment Charges pursuant to Section 3.20) shall be distributed to the Class P
Certificates.

         (g) To the extent that a Class of Certificates (other than the Class
A-R, Class C and Class P Certificates) receives interest in excess of the Net
Rate Cap, such interest shall be treated as having been paid to the Carryover
Reserve Fund and then paid by the Carryover Reserve Fund to such
Certificateholders.

         (h) [reserved]

         (i) On each Distribution Date, the Trustee shall allocate the Applied
Realized Loss Amount to reduce the Certificate Principal Balances of the
Subordinate Certificates and Class 1-A-2 Certificates in the following order of
priority:

               (i) to the Class B Certificates until the Class B Certificate
          Principal Balance is reduced to zero;

               (ii) to the Class M-8 Certificates until the Class M-8
          Certificate Principal Balance is reduced to zero;

               (iii) to the Class M-7 Certificates until the Class M-7
          Certificate Principal Balance is reduced to zero;

               (iv) to the Class M-6 Certificates until the Class M-6
          Certificate Principal Balance is reduced to zero;

               (v) to the Class M-5 Certificates until the Class M-5 Certificate
          Principal Balance is reduced to zero;

               (vi) to the Class M-4 Certificates until the Class M-4
          Certificate Principal Balance is reduced to zero;

               (vii) to the Class M-3 Certificates until the Class M-3
          Certificate Principal Balance is reduced to zero;

               (viii) to the Class M-2 Certificates until the Class M-2
          Certificate Principal Balance is reduced to zero;

               (ix) to the Class M-1 Certificates until the Class M-1
          Certificate Principal Balance is reduced to zero; and

               (x) with respect to Realized Losses on the Mortgage Loans in Loan
          Group 1 only, to the Class 1-A-2 Certificates until the Class 1-A-2
          Certificate Principal Balance is reduced to zero.

         (j) Subject to Section 9.02 hereof respecting the final distribution,
on each Distribution Date the Trustee shall make distributions to each
Certificateholder of record on the

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preceding Record Date either by wire transfer in immediately available funds to
the account of such holder at a bank or other entity having appropriate
facilities therefor, if (i) such Holder has so notified the Trustee at least 5
Business Days prior to the related Record Date and (ii) such Holder shall hold
Regular Certificates with aggregate principal denominations of not less than
$1,000,000 or evidencing a Percentage Interest aggregating 10% or more with
respect to such Class or, if not, by check mailed by first class mail to such
Certificateholder at the address of such holder appearing in the Certificate
Register. Notwithstanding the foregoing, but subject to Section 9.02 hereof
respecting the final distribution, distributions with respect to Certificates
registered in the name of a Depository shall be made to such Depository in
immediately available funds.

         On or before 5:00 p.m. Pacific time on the fifth Business Day following
each Determination Date (but in no event later than 5:00 p.m. Pacific time on
the third Business Day before the related Distribution Date), the Master
Servicer shall deliver a report to the Trustee in the form of a computer
readable magnetic tape (or by such other means as the Master Servicer and the
Trustee may agree from time to time) containing such data and information as
agreed to by the Master Servicer and the Trustee such as to permit the Trustee
to prepare the Monthly Statement to Certificateholders and make the required
distributions for the related Distribution Date (the "Remittance Report"). The
Trustee shall not be responsible to recompute, recalculate or verify information
provided to it by the Master Servicer and shall be permitted to conclusively
rely on any information provided to it by the Master Servicer.

         Section 4.05 Monthly Statements to Certificateholders.

         (a) Not later than each Distribution Date, the Trustee shall prepare
and cause to be forwarded by first class mail to each Holder of a Class of
Certificates of the Trust Fund, the Master Servicer, the Seller and the
Depositor a statement setting forth for the Certificates:

               (i) the amount of the related distribution to Holders of each
          Class allocable to principal, separately identifying (A) the aggregate
          amount of any Principal Prepayments included therein and (B) the
          aggregate of all scheduled payments of principal included therein;

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

               (iii) any Interest Carry Forward Amount for each Class;

               (iv) the Certificate Principal Balance of each Class after giving
          effect (i) to all distributions allocable to principal on such
          Distribution Date and (ii) the allocation of any Applied Realized Loss
          Amounts for such Distribution Date;

               (v) the aggregate of the Stated Principal Balances of the
          Mortgage Loans for the Mortgage Pool and each Loan Group;

               (vi) the related amount of the Servicing Fees paid to or retained
          by the Master Servicer for the related Due Period;

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               (vii) the Pass-Through Rate for each Class of Certificates with
          respect to the current Accrual Period;

               (viii) with respect to the November 2004 Distribution Date, the
          Seller Shortfall Interest Requirement (if any) for the related Master
          Servicer Advance Date;

               (ix) the amount of Advances for each Loan Group included in the
          distribution on such Distribution Date;

               (x) the cumulative amount of Applied Realized Loss Amounts to
          date;

               (xi) [reserved];

               (xii) the number and aggregate principal amounts of Mortgage
          Loans in each Loan Group: (A) Delinquent (exclusive of Mortgage Loans
          in foreclosure) (1) 30 to 59 days, (2) 60 to 89 days and (3) 90 or
          more days, and (B) in foreclosure and Delinquent (1) 30 to 59 days,
          (2) 60 to 89 days and (3) 90 or more days, in each case as of the
          close of business on the last day of the calendar month preceding such
          Distribution Date;

               (xiii) with respect to any Mortgage Loan that became an REO
          Property during the preceding calendar month in each Loan Group, the
          loan number and Stated Principal Balance of such Mortgage Loan;

               (xiv) and the aggregate Stated Principal Balances of any Mortgage
          Loans converted to REO Properties as of the close of business on the
          Determination Date preceding such Distribution Date;

               (xv) the aggregate Stated Principal Balances of all Liquidated
          Loans;

               (xvi) with respect to any Liquidated Loan in each Loan Group, the
          loan number and Stated Principal Balance relating thereto;

               (xvii) whether a Trigger Event is in effect;

               (xviii) any Net Rate Carryover paid on each Class of Certificates
          (other than the Class A-R, Class C and Class P Certificates) and any
          remaining Net Rate Carryover remaining on each Class of Certificates
          (other than the Class A-R, Class C and Class P Certificates) on such
          Distribution Date;

               (xix) the amount of Prepayment Charges collected or waived by the
          Master Servicer;

               (xx) [reserved];

               (xxi) [reserved]; and

               (xxii) the amount, if any, due, and the amount received under
          each Cap Contract for such Distribution Date.

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<PAGE>

         (b) The Trustee's responsibility for disbursing the above information
to the Certificateholders is limited to the availability, timeliness and
accuracy of the information derived from the Master Servicer. The Trustee will
send a copy of each statement provided pursuant to this Section 4.05 to each
Rating Agency. The Trustee may make the above information available to
Certificateholders via the Trustee's website at http://www.mbsreporting.com.

         (c) Within a reasonable period of time after the end of each calendar
year, the Trustee shall cause to be furnished to each Person who at any time
during the calendar year was a Certificateholder, a statement containing the
information set forth in clauses (a)(i), (a)(ii) and (a)(vi) of this Section
4.05 aggregated for such calendar year or applicable portion thereof during
which such Person was a Certificateholder. Such obligation of the Trustee shall
be deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Trustee pursuant to any requirements of the
Code as from time to time in effect.

         (d) Upon filing with the Internal Revenue Service, the Trustee shall
furnish to the Holders of the Class A-R Certificates the Form 1066 and each Form
1066Q and shall respond promptly to written requests made not more frequently
than quarterly by any Holder of Class A-R Certificates with respect to the
following matters:

               (i) The original projected principal and interest cash flows on
          the Closing Date on each related Class of regular and residual
          interests created hereunder and on the Mortgage Loans, based on the
          Prepayment Assumption;

               (ii) The projected remaining principal and interest cash flows as
          of the end of any calendar quarter with respect to each related Class
          of regular and residual interests created hereunder and the Mortgage
          Loans, based on the Prepayment Assumption;

               (iii) The applicable Prepayment Assumption and any interest rate
          assumptions used in determining the projected principal and interest
          cash flows described above;

               (iv) The original issue discount (or, in the case of the Mortgage
          Loans, market discount) or premium accrued or amortized through the
          end of such calendar quarter with respect to each related Class of
          regular or residual interests created hereunder and to the Mortgage
          Loans, together with each constant yield to maturity used in computing
          the same;

               (v) The treatment of losses realized with respect to the Mortgage
          Loans or the regular interests created hereunder, including the timing
          and amount of any cancellation of indebtedness income of the related
          REMIC with respect to such regular interests or bad debt deductions
          claimed with respect to the Mortgage Loans;

               (vi) The amount and timing of any non-interest expenses of the
          related REMIC; and

               (vii) Any taxes (including penalties and interest) imposed on the
          related REMIC, including, without limitation, taxes on "prohibited
          transactions," "contributions" or "net income from foreclosure
          property" or state or local income or franchise taxes.

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<PAGE>

         The information pursuant to clauses (i), (ii), (iii) and (iv) above
shall be provided by the Depositor pursuant to Section 8.11.

         Section 4.06 [Reserved]

         Section 4.07 [Reserved]

         Section 4.08 Carryover Reserve Fund.

         (a) On the Closing Date, the Trustee shall establish and maintain in
its name, in trust for the benefit of the Holders of the Certificates, the
Carryover Reserve Fund. The Carryover Reserve Fund shall be an Eligible Account,
and funds on deposit therein shall be held separate and apart from, and shall
not be commingled with, any other moneys, including without limitation, other
moneys held by the Trustee pursuant to this Agreement.

         (b) The Trustee shall make withdrawals from the Carryover Reserve Fund
to make distributions of amounts payable from each Corridor Contract to the
related Certificates pursuant to paragraph (e) of Section 4.04 hereof. Any
amounts remaining after the distributions required pursuant to preceding
sentence shall be distributed to the Class C Certificates; provided, however,
that if a Corridor Contract is subject to early termination, early termination
payments received on such Corridor Contract will be held by the Trustee until
the related Corridor Contract Termination Date and deposited in the Carryover
Reserve Fund as necessary to cover any Net Rate Carryover on the Certificates
entitled thereto on future Distribution Dates.

         (c) Funds in the Carryover Reserve Fund may be invested in Permitted
Investments. Any earnings on such amounts shall be payable to the Class C
Certificates. The Class C Certificates shall evidence ownership of the Carryover
Reserve Fund for federal tax purposes and the Holders thereof evidencing not
less than 50% of the Voting Rights of such Class shall direct the Trustee in
writing as to the investment of amounts therein. In the absence of such written
direction, all funds in the Carryover Reserve Fund shall be invested by the
Trustee in The Bank of New York cash reserves.

         (d) Upon termination of the Trust Fund, any amounts remaining in the
Carryover Reserve Fund shall be distributed to the Holders of the Class C
Certificates in the same manner as if distributed pursuant to Section 4.04(f)
hereof.

         Section 4.09 Distributions on the REMIC I Regular Interests.

         (a) (1)(A) On each Distribution Date, the following amounts, in the
following order of priority, shall be distributed by REMIC I to REMIC II on
account of the REMIC I Regular Interests or withdrawn from the Distribution
Account and distributed to the holders of the Class AR Certificates (in respect
of the Class R-I Interest), as the case may be:

               (i) first, (a) to Holders of REMIC I Regular Interest LT-AA,
          REMIC Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC
          I Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I
          Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I
          Regular Interest LT-M2, REMIC Regular Interest LT-M3, REMIC Regular
          Interest LT-M4, REMIC Regular Interest LT-M5, REMIC 1

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          REGULAR Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1
          Regular Interest LT-M8, REMIC Regular Interest LT-B, REMIC I Regular
          Interest LT-ZZ, REMIC I Regular Interest LT-P and REMIC I Regular
          Interest LT-R, pro rata, in an amount equal to (A) the Uncertificated
          Accrued Interest for such Distribution Date, plus (B) any amounts in
          respect thereof remaining unpaid from previous Distribution Dates.
          Amounts payable as Uncertificated Accrued Interest in respect of REMIC
          I Regular Interest LT-ZZ shall be reduced and deferred when the REMIC
          I Overcollateralized Amount is less than the REMIC I
          Overcollateralization Target Amount, by the lesser of (x) the amount
          of such difference and (y) the REMIC I Regular Interest LT-ZZ Maximum
          Interest Deferral Amount and such amount will be payable to the
          Holders of REMIC Regular Interest LT-1A1, REMIC I Regular Interest
          LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest
          LT-2A2, REMIC Regular Interest LT-2A3, REMIC I Regular Interest LT-M1,
          REMIC I Regular Interest LT-M2, REMIC Regular Interest LT-M3, REMIC
          Regular Interest LT-M4, REMIC Regular Interest LT-M5, REMIC 1 REGULAR
          Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular
          Interest LT-M8 and REMIC Regular Interest LT-B in the same proportion
          as the Overcollateralization Increase Amount is allocated to the
          Corresponding Certificates and the Uncertificated Principal Balance of
          REMIC I Regular Interest LT-ZZ shall be increased by such amount; and

         (b) to Holders of REMIC I Regular Interest LT-1SUB, REMIC I Regular
Interest LT-1GRP, REMIC I Regular Interest LT-2SUB, REMIC I Regular Interest
LT-2GRP and REMIC I Regular Interest LT-XX, pro rata, in an amount equal to (A)
the Uncertificated Accrued Interest for such Distribution Date, plus (B) any
amounts in respect thereof remaining unpaid from previous Distribution Dates

               (i) second, to the Holders of REMIC I Regular Interests, in an
          amount equal to the remainder of the REMIC I Marker Allocation
          Percentage of Available Funds for such Distribution Date after the
          distributions made pursuant to clause (i) above, allocated as follows:

                  (a) 98.00% of such remainder (other than amounts payable under
         clause (c) below), to the Holders of REMIC I Regular Interest LT-AA and
         REMIC I Regular Interest LT-P, until the Uncertificated Principal
         Balance of such REMIC I Regular Interest is reduced to zero, provided,
         however, that REMIC I Regular Interest LT-P shall not be reduced until
         the Distribution Date immediately following the expiration of the
         latest Prepayment Charge as identified on the Prepayment Charge
         Schedule or any Distribution Date thereafter, at which point such
         amount shall be distributed to REMIC I Regular Interest LT-P, until
         $100 has been distributed pursuant to this clause;

                  (b) 2.00% of such remainder first, to the Holders of REMIC I
         Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I
         Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I
         Regular Interest LT-2A, REMIC I Regular Interest LT-M1, REMIC I Regular
         Interest LT-M2, REMIC I Regular Interest LT-M3, REMIC I Regular
         Interest LT-M4, REMIC I Regular Interest LT-M5, REMIC 1 REGULAR
         Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular
         Interest LT-M8 and REMIC Regular Interest LT-B, 1.00% in the same
         proportion as principal payments

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<PAGE>

         are allocated to the Corresponding Certificates, until the
         Uncertificated Principal Balances of such REMIC I Regular Interests
         are reduced to zero and second, to the Holders of REMIC I Regular
         Interest LT-ZZ, until the Uncertificated Principal Balance of such
         REMIC I Regular Interest is reduced to zero; then

                  (c) any remaining amount to the Holders of the Class AR
         Certificates (in respect of the Class R-I Interest); and

provided, however, that (i) 98.00% and (ii) 2.00% of any principal payments that
are attributable to an Overcollateralization Reduction Amount shall be allocated
to Holders of (i) REMIC I Regular Interest LT-AA and REMIC I Regular Interest
LT-P, in that order and (ii) REMIC I Regular Interest LT-ZZ, respectively;
provided that REMIC I Regular Interest LT-P shall not be reduced until the
Distribution Date immediately following the expiration of the latest Prepayment
Charge as identified on the Prepayment Charge Schedule or any Distribution Date
thereafter, at which point such amount shall be distributed to REMIC I Regular
Interest LT-P, until $100 has been distributed pursuant to this clause.

         On each Distribution Date, all amounts representing Prepayment Charges
in respect of the Mortgage Loans received during the related Prepayment Period
will be distributed by REMIC I to the Holders of REMIC I Regular Interest LT-P.
The payment of the foregoing amounts to the Holders of REMIC I Regular Interest
LT-P shall not reduce the Uncertificated Principal Balance thereof.

               (ii) third, to the Holders of REMIC I Regular Interests, in an
          amount equal to the remainder of the REMIC I Sub WAC Allocation
          Percentage of Available Funds for such Distribution Date after the
          distributions made pursuant to clause (i) above, allocated as follows:

               (a) Distributions of principal shall be deemed to be made to the
          REMIC I Regular Interests first, so as to keep the Uncertificated
          Principal Balance of each REMIC I Regular Interest ending with the
          designation "GRP" equal to 0.01% of the aggregate Stated Principal
          Balance of the Mortgage Loans in the related Group; second, to each
          REMIC I Regular Interest ending with the designation "SUB," so that
          the Uncertificated Principal Balance of each such REMIC I Regular
          Interest is equal to 0.01% of the excess of (x) the aggregate Stated
          Principal Balance of the Mortgage Loans in the related Group over (y)
          the Certificate Principal Balance of the Class A Certificate in the
          related Group (except that if any such excess is a larger number than
          in the preceding distribution period, the least amount of principal
          shall be distributed to such REMIC I Regular Interests such that the
          REMIC I Subordinated Balance Ratio is maintained); and third, any
          remaining principal to REMIC I Regular Interest LT-XX.

               (b) Notwithstanding the distributions described in this Section
          4.09, distribution of funds shall be made only in accordance with
          Section 4.04.

         Section 4.10 [Reserved].

         Section 4.11 Allocation of Realized Losses on the REMIC I Regular
                      Interests.

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<PAGE>

         (a) The REMIC I Marker Percentage of all Realized Losses on the
Mortgage Loans shall be allocated by the Trustee on each Distribution Date to
the following REMIC I Regular Interests in the specified percentages, as
follows: first, to Uncertificated Interest payable to the REMIC I Regular
Interest LT AA and REMIC I Regular Interest LT ZZ up to an aggregate amount
equal to the REMIC I Interest Loss Allocation Amount, 98% and 2%, respectively;
second, to the Uncertificated Principal Balances of the REMIC I Regular Interest
LT AA and REMIC I Regular Interest LT ZZ up to an aggregate amount equal to the
REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to
the Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I
Regular Interest LT B and REMIC I Regular Interest LT ZZ, 98%, 1.00% and 1%,
respectively, until the Uncertificated Principal Balances of REMIC I Regular
Interest LT B has been reduced to zero; fourth, to the Uncertificated Principal
Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M8 and
REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC I Regular Interest LT M8 has been
reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I
Regular Interest LT AA, REMIC I Regular Interest LT M7 and REMIC I Regular
Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC I Regular Interest LT M7 has been reduced to zero; sixth, to
the Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I
Regular Interest LT M6 and REMIC I Regular Interest LT ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC I Regular
Interest LT M6 has been reduced to zero; seventh to the Uncertificated Principal
Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M5 and
REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC I Regular Interest LT M5 has been
reduced to zero; eighth to the Uncertificated Principal Balances of REMIC I
Regular Interest LT AA, REMIC I Regular Interest LT M4 and REMIC I Regular
Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
Balance of REMIC I Regular Interest LT M4 has been reduced to zero; ninth to the
Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I
Regular Interest LT M3 and REMIC I Regular Interest LT ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC I Regular
Interest LT M3 has been reduced to zero; tenth to the Uncertificated Principal
Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M2 and
REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Principal Balance of REMIC I Regular Interest LT M2 has been
reduced to zero; and eleventh sixth to the Uncertificated Principal Balances of
REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M1 and REMIC I
Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Principal Balance of REMIC I Regular Interest LT M1 has been reduced to zero.

         (b) The REMIC I Sub WAC Allocation Percentage of all Realized Losses
shall be applied after all distributions have been made on each Distribution
Date first, so as to keep the Uncertificated Principal Balance of each REMIC I
Regular Interest ending with the designation "GRP" equal to 0.01% of the
aggregate Stated Principal Balance of the Mortgage Loans in the related Group;
second, to each REMIC I Regular Interest ending with the designation "SUB," so
that the Uncertificated Principal Balance of each such REMIC I Regular Interest
is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of
the Mortgage Loans in the related Group over (y) the Certificate Principal
Balance of the Senior Certificate in the related Group (except that if any such
excess is a larger number than in the preceding distribution period, the least
amount of Realized Losses shall be applied to such REMIC I Regular Interests

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<PAGE>

such that the REMIC I Subordinated Balance Ratio is maintained); and third, any
remaining Realized Losses shall be allocated to REMIC I Regular Interest LT-XX.

         Section 4.12 The Class P Certificates.

         On the Closing Date, $100 shall be deposited into the Class P
Distribution Account and shall be held in trust for the benefit of the Class P
Certificateholders for payment pursuant to Section 4.04 upon the earlier of (a)
the exercise of the Optional Termination by the holders of the Class C
Certificates or the Master Servicer pursuant to Section 9.01 and (b) the Class P
Principal Distribution Date. Such funds may not be invested.

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<PAGE>

                                   ARTICLE V

                                THE CERTIFICATES

         Section 5.01 The Certificates.

         The Certificates shall be substantially in the forms attached hereto as
Exhibits A-1 through A-8, B, C and D. The Certificates shall be issuable in
registered form, in the minimum dollar denominations, integral dollar multiples
in excess thereof and aggregate dollar denominations as set forth in the
following table:

<TABLE>
<CAPTION>
                                                       Integral Multiples in       Original Certificate Principal
             Class           Minimum Denomination        Excess of Minimum                    Balance
             -----           --------------------        -----------------                    -------
<S>            <C>                <C>                           <C>                       <C>
               1-A-1                  $20,000                       $1,000                    $564,755,000.00
               1-A-2                  $20,000                       $1,000                     $56,475,000.00
               2-A-1                  $20,000                       $1,000                     $73,107,000.00
               2-A-2                  $20,000                       $1,000                    $113,646,000.00
               2-A-3                  $20,000                       $1,000                     $31,517,000.00
                 A-R                $99.95(1)                          N/A                            $100.00
                 M-1                  $20,000                       $1,000                     $45,500,000.00
                 M-2                  $20,000                       $1,000                     $22,500,000.00
                 M-3                  $20,000                       $1,000                     $11,500,000.00
                 M-4                  $20,000                       $1,000                     $12,000,000.00
                 M-5                  $20,000                       $1,000                     $11,500,000.00
                 M-6                  $20,000                       $1,000                     $10,000,000.00
                 M-7                  $20,000                       $1,000                     $12,500,000.00
                 M-8                  $20,000                       $1,000                      $7,500,000.00
                   B                  $20,000                       $1,000                      $7,500,000.00
                   C                      20%                           1%                              $0.00
                   P                      20%                           1%                            $100.00

</TABLE>
         (1) The Tax Matters Person Certificate may be issued in a denomination
of $0.05.

         The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer. Certificates bearing the manual
or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall bind
the Trustee, notwithstanding that such individuals or any of them have ceased to
be so authorized prior to the authentication and delivery of such Certificates
or did not hold such offices at the date of such authentication and delivery. No
Certificate shall be entitled to any benefit under this Agreement, or be valid
for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form set forth as attached

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<PAGE>

hereto executed by the Trustee by manual signature, and such certificate of
authentication upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered
hereunder. All Certificates shall be dated the date of their authentication. On
the Closing Date, the Trustee shall authenticate the Certificates to be issued
at the written direction of the Depositor, or any affiliate thereof.

         Section 5.02 Certificate Register; Registration of Transfer and
Exchange of Certificates.

         (a) The Trustee shall maintain, or cause to be maintained in accordance
with the provisions of Section 5.09 hereof, a Certificate Register for the Trust
Fund in which, subject to the provisions of subsections (b) and (c) below and to
such reasonable regulations as it may prescribe, the Trustee shall provide for
the registration of Certificates and of Transfers and exchanges of Certificates
as herein provided. Upon surrender for registration of Transfer of any
Certificate, the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Certificates of the same
Class and of like aggregate Percentage Interest.

         At the option of a Certificateholder, Certificates may be exchanged for
other Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest upon surrender of the Certificates to be
exchanged at the office or agency of the Trustee. Whenever any Certificates are
so surrendered for exchange, the Trustee shall execute, authenticate, and
deliver the Certificates that the Certificateholder making the exchange is
entitled to receive. Every Certificate presented or surrendered for registration
of Transfer or exchange shall be accompanied by a written instrument of Transfer
in form satisfactory to the Trustee duly executed by the holder thereof or his
attorney duly authorized in writing.

         No service charge to the Certificateholders shall be made for any
registration of Transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any Transfer or exchange of Certificates may be required.

         All Certificates surrendered for registration of Transfer or exchange
shall be canceled and subsequently destroyed by the Trustee in accordance with
the Trustee's customary procedures.

         (b) No Transfer of a Private Certificate shall be made unless such
Transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under the Securities Act and such state securities
laws. In the event that a transfer is to be made in reliance upon an exemption
from the Securities Act and such state securities laws, in order to assure
compliance with the Securities Act and such state securities laws, the
Certificateholder desiring to effect such Transfer and such Certificateholder's
prospective transferee shall each certify to the Trustee in writing the facts
surrounding the Transfer in substantially the forms set forth in Exhibit J (the
"Transferor Certificate") and (i) deliver a letter in substantially the form of
either Exhibit K (the "Investment Letter") or Exhibit L (the "Rule 144A Letter")
or (ii) there shall be delivered to the Trustee at the expense of the
Certificateholder desiring to effect such transfer an Opinion of Counsel that
such Transfer may be made pursuant to an exemption from the Securities Act. The

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<PAGE>

Depositor shall provide to any Holder of a Private Certificate and any
prospective transferee designated by any such Holder, information regarding the
related Certificates and the Mortgage Loans and such other information as shall
be necessary to satisfy the condition to eligibility set forth in Rule
144A(d)(4) for transfer of any such Certificate without registration thereof
under the Securities Act pursuant to the registration exemption provided by Rule
144A. The Trustee and the Master Servicer shall cooperate with the Depositor in
providing the Rule 144A information referenced in the preceding sentence,
including providing to the Depositor such information regarding the
Certificates, the Mortgage Loans and other matters regarding the Trust Fund as
the Depositor shall reasonably request to meet its obligation under the
preceding sentence. Each Holder of a Private Certificate desiring to effect such
Transfer shall, and does hereby agree to, indemnify the Trustee, the Depositor,
the Seller and the Master Servicer against any liability that may result if the
Transfer is not so exempt or is not made in accordance with such federal and
state laws.

         No Transfer of an ERISA-Restricted Certificate or a Subordinate
Certificate shall be made unless the Trustee shall have received either (i) a
representation from the transferee of such Certificate acceptable to and in form
and substance satisfactory to the Trustee (in the event such Certificate is a
Private Certificate that is a Definitive Certificate, such requirement is
satisfied only by the Trustee's receipt of a representation letter from the
transferee substantially in the form of Exhibit K or Exhibit L, or in the event
such Certificate is a Class A-R Certificate, such requirement is satisfied only
by the Trustee's receipt of a representation letter from the transferee
substantially in the form of Exhibit I), to the effect that such transferee is
not an employee benefit plan or arrangement subject to Section 406 of ERISA or a
plan or arrangement subject to Section 4975 of the Code, nor a Person acting on
behalf of any such plan or arrangement or using the assets of any such plan or
arrangement to effect such transfer, or (ii) in the case of the Subordinate
Certificates, a representation from the transferee of such Certificates that (A)
it has acquired and is holding such Certificate in reliance on the Underwriters'
Exemption and that it understands that there are certain conditions to the
availability of the Underwriters' Exemption, including that the Certificate must
be rated, at the time of purchase, not less than "BBB-" or its equivalent by one
of the Rating Agencies or (B) the purchaser is an insurance company which is
purchasing such Certificates with funds contained in an "insurance company
general account" (as such term is defined in Section V(e) of Prohibited
Transaction Class Exemption 95-60 ("PTCE 95-60")) and the conditions of Sections
I and III of PTCE 95-60 have been satisfied or (iii) in the case of the Class C
Certificates or the Class P Certificates if such Certificates have been offered
in a placement or underwriting which meets the requirements of the Underwriter's
Exemption, a representation that the purchaser is an insurance company which is
purchasing such Certificates with funds contained in or "insurance company
general account" (as such term is defined in Section V(e) of PTCE 95-60) and the
conditions of sections I and III of PTCE 95-60 have been satisfied, or in the
case of any ERISA-Restricted Certificate presented for registration in the name
of an employee benefit plan subject to ERISA, or a plan or arrangement subject
to Section 4975 of the Code (or comparable provisions of any subsequent
enactments), or a trustee of any such plan or any other person acting on behalf
of any such plan or arrangement, or using such plan's or arrangement's assets,
or (iv) an opinion of counsel satisfactory to the Trustee, for the benefit of
the Trustee, the Seller, the Depositor and the Master Servicer, and on which
they may rely, which opinion of counsel shall not be an expense of either the
Trustee or the Trust Fund, addressed to the Trustee to the effect that the
purchase and holding of such ERISA-Restricted Certificate is permissible under
applicable law, will not constitute or result in a non-

                                      115
<PAGE>

exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the
Code and will not subject the Depositor, the Seller, the Master Servicer or
Trustee to any obligation, or liability (including liabilities or obligations
under ERISA or Section 4975 of the Code) in addition to those expressly
undertaken in this Agreement or to any liability. For purposes of the preceding
sentence, with respect to an ERISA-Restricted Certificate that is not a
Book-Entry Certificate or a Class A-R Certificate, in the event the
representation letter referred to in the preceding sentence is not so furnished,
such representation shall be deemed to have been made to the Trustee by the
transferee's (including an initial acquiror's) acceptance of such
ERISA-Restricted Certificate. Notwithstanding anything else to the contrary
herein, any purported transfer of an ERISA-Restricted Certificate or a
Subordinate Certificate to or on behalf of an employee benefit plan subject to
ERISA or the Code other than as described above shall be void and of no effect.
Any purported beneficial owner whose acquisition or holding of the Certificate
or interest therein was effected in violation of the conditions described in
this paragraph shall indemnify and hold harmless the Depositor, the Trustee, the
Master Servicer, the Seller, any Subservicer and the Trust Fund from and against
any and all liabilities, claims, costs or expenses incurred by those parties as
a result of that acquisition or holding.

         To the extent permitted under applicable law (including, but not
limited to, ERISA), the Trustee shall be under no liability to any Person for
any registration of Transfer of any ERISA-Restricted Certificate that is in fact
not permitted by this Section 5.02(b) or for making any payments due on such
Certificate to the Holder thereof or taking any other action with respect to
such Holder under the provisions of this Agreement so long as the Transfer was
registered by the Trustee in accordance with the foregoing requirements.

         (c) Each Person who has or who acquires any Ownership Interest in a
Class A-R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Class A-R
Certificate are expressly subject to the following provisions:

               (i) Each Person holding or acquiring any Ownership Interest in a
          Class A-R Certificate shall be a Permitted Transferee and shall
          promptly notify the Trustee of any change or impending change in its
          status as a Permitted Transferee.

               (ii) No Ownership Interest in a Class A-R Certificate may be
          registered on the Closing Date or thereafter transferred, and the
          Trustee shall not register the Transfer of any Class A-R Certificate
          unless, in addition to the representation letters required to be
          delivered to the Trustee under subparagraph (b) above, the Trustee
          shall have been furnished with an affidavit (a "Transfer Affidavit")
          of the initial owner or the proposed transferee in the form attached
          hereto as Exhibit I.

               (iii) Each Person holding or acquiring any Ownership Interest in
          a Class A-R Certificate shall agree (A) to obtain a Transfer Affidavit
          from any other Person to whom such Person attempts to Transfer its
          Ownership Interest in a Class A-R Certificate, (B) to obtain a
          Transfer Affidavit from any Person for whom such Person is acting as
          nominee, trustee or agent in connection with any Transfer of a Class
          A-R Certificate and (C) not to Transfer its Ownership Interest in a
          Class A-R Certificate or to cause the Transfer of an

                                      116
<PAGE>

          Ownership Interest in a Class A-R Certificate to any other Person if
          it has actual knowledge that such Person is not a Permitted
          Transferee.

               (iv) Any attempted or purported Transfer of any Ownership
          Interest in a Class A-R Certificate in violation of the provisions of
          this Section 5.02(c) shall be absolutely null and void and shall vest
          no rights in the purported Transferee. If any purported transferee
          shall become a Holder of a Class A-R Certificate in violation of the
          provisions of this Section 5.02(c), then the last preceding Permitted
          Transferee shall be restored to all rights as Holder thereof
          retroactive to the date of registration of Transfer of such Class A-R
          Certificate. The Trustee shall be under no liability to any Person for
          any registration of Transfer of a Class A-R Certificate that is in
          fact not permitted by Section 5.02(b) and this Section 5.02(c) or for
          making any payments due on such Certificate to the Holder thereof or
          taking any other action with respect to such Holder under the
          provisions of this Agreement so long as the Transfer was registered
          after receipt of the related Transfer Affidavit, Transferor
          Certificate and either the Rule 144A Letter or the Investment Letter.
          The Trustee shall be entitled but not obligated to recover from any
          Holder of a Class A-R Certificate that was in fact not a Permitted
          Transferee at the time it became a Holder or, at such subsequent time
          as it became other than a Permitted Transferee, all payments made on
          such Class A-R Certificate at and after either such time. Any such
          payments so recovered by the Trustee shall be paid and delivered by
          the Trustee to the last preceding Permitted Transferee of such
          Certificate.

               (v) The Depositor shall use its best efforts to make available,
          upon receipt of written request from the Trustee, all information
          necessary to compute any tax imposed under Section 860E(e) of the Code
          as a result of a Transfer of an Ownership Interest in a Class A-R
          Certificate to any Holder who is not a Permitted Transferee.

         The restrictions on Transfers of a Class A-R Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Class A-R Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trust Fund, the Trustee, the Seller or
the Master Servicer, to the effect that the elimination of such restrictions
will not cause any REMIC hereunder to fail to qualify as a REMIC at any time
that the Certificates are outstanding or result in the imposition of any tax on
the Trust Fund, a Certificateholder or another Person. Each Person holding or
acquiring any Ownership Interest in a Class A-R Certificate hereby consents to
any amendment of this Agreement that, based on an Opinion of Counsel furnished
to the Trustee, is reasonably necessary (a) to ensure that the record ownership
of, or any beneficial interest in, a Class A-R Certificate is not transferred,
directly or indirectly, to a Person that is not a Permitted Transferee and (b)
to provide for a means to compel the Transfer of a Class A-R Certificate that is
held by a Person that is not a Permitted Transferee to a Holder that is a
Permitted Transferee.

         (d) The preparation and delivery of all representation letters and
opinions referred to above in this Section 5.02 in connection with any Transfers
shall be at the expense of the parties to such Transfers.

         Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

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<PAGE>

         If (a) any mutilated Certificate is surrendered to the Trustee, or the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Certificate and of the ownership thereof and (b) there is delivered to
the Master Servicer and the Trustee such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of notice
to the Trustee that such Certificate has been acquired by a bona fide purchaser,
the Trustee shall execute, authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like Class, tenor and Percentage Interest. In connection with the issuance of
any new Certificate under this Section 5.03, the Trustee may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith. Any replacement Certificate issued
pursuant to this Section 5.03 shall constitute complete and indefeasible
evidence of ownership in the Trust Fund, as if originally issued, whether or not
the lost, stolen or destroyed Certificate shall be found at any time. All
Certificates surrendered to the Trustee under the terms of this Section 5.03
shall be canceled and destroyed by the Trustee in accordance with its standard
procedures without liability on its part.

         Section 5.04 Persons Deemed Owners.

         The Master Servicer, the Trustee and any agent of the Master Servicer
or the Trustee may treat the person in whose name any Certificate is registered
as the owner of such Certificate for the purpose of receiving distributions as
provided in this Agreement and for all other purposes whatsoever, and neither
the Master Servicer, the Trustee nor any agent of the Master Servicer or the
Trustee shall be affected by any notice to the contrary.

         Section 5.05 Access to List of Certificateholders' Names and Addresses.

         If three or more Certificateholders and/or Certificate Owners (a)
request such information in writing from the Trustee, (b) state that such
Certificateholders and/or Certificate Owners desire to communicate with other
Certificateholders and/or Certificate Owners with respect to their rights under
this Agreement or under the Certificates, and (c) provide a copy of the
communication that such Certificateholders and/or Certificate Owners propose to
transmit or if the Depositor or Master Servicer shall request such information
in writing from the Trustee, then the Trustee shall, within ten Business Days
after the receipt of such request, provide the Depositor, the Master Servicer or
such Certificateholders and/or Certificate Owners at such recipients' expense
the most recent list of the Certificateholders and/or Certificate Owners of the
Trust Fund held by the Trustee, if any. The Depositor and every
Certificateholder or Certificate Owner, by receiving and holding a Certificate,
agree that the Trustee shall not be held accountable by reason of the disclosure
of any such information as to the list of the Certificateholders hereunder,
regardless of the source from which such information was derived.

         Section 5.06 Book-Entry Certificates.

         The Regular Certificates, upon original issuance, shall be issued in
the form of one or more typewritten Certificates representing the Book-Entry
Certificates, to be delivered to the Depository by or on behalf of the
Depositor. Such Certificates shall initially be registered on the Certificate
Register in the name of the Depository or its nominee, and no Certificate Owner
of

                                      118
<PAGE>

such Certificates will receive a definitive certificate representing such
Certificate Owner's interest in such Certificates, except as provided in Section
5.08. Unless and until definitive, fully registered Certificates ("Definitive
Certificates") have been issued to the Certificate Owners of such Certificates
pursuant to Section 5.08:

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

         (b) the Depositor, the Seller, the Master Servicer and the Trustee may
deal with the Depository and the Depository Participants for all purposes
(including the making of distributions) as the authorized representative of the
respective Certificate Owners of such Certificates;

         (c) registration of the Book-Entry Certificates may not be transferred
by the Trustee except to another Depository;

         (d) the rights of the respective Certificate Owners of such
Certificates shall be exercised only through the Depository and the Depository
Participants and shall be limited to those established by law and agreements
between the Owners of such Certificates and the Depository and/or the Depository
Participants. Pursuant to the Depository Agreement, unless and until Definitive
Certificates are issued pursuant to Section 5.08, the Depository will make
book-entry transfers among the Depository Participants and receive and transmit
distributions of principal and interest on the related Certificates to such
Depository Participants;

         (e) the Depository may collect its usual and customary fees, charges
and expenses from its Depository Participants;

         (f) the Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its Depository
Participants; and

         (g) to the extent that the provisions of this Section conflict with any
other provisions of this Agreement, the provisions of this Section shall
control.

         For purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Certificateholders
evidencing a specified percentage of the aggregate unpaid principal amount of
any Class of Certificates, such direction or consent may be given by Certificate
Owners (acting through the Depository and the Depository Participants) owning
Book-Entry Certificates evidencing the requisite percentage of principal amount
of such Class of Certificates.

         Section 5.07 Notices to Depository.

         Whenever any notice or other communication is required to be given to
Certificateholders of the Class with respect to which Book-Entry Certificates
have been issued, unless and until Definitive Certificates shall have been
issued to the related Certificate Owners, the Trustee shall give all such
notices and communications to the Depository.

         Section 5.08 Definitive Certificates.

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<PAGE>

         If, after Book-Entry Certificates have been issued with respect to any
Certificates, (a) the Depositor advises the Trustee that the Depository is no
longer willing or able to discharge properly its responsibilities under the
Depository Agreement with respect to such Certificates and the Trustee or the
Depositor is unable to locate a qualified successor or (b) after the occurrence
and continuation of an Event of Default, Certificate Owners of such Book-Entry
Certificates having not less than 51% of the Voting Rights evidenced by any
Class of Book-Entry Certificates advise the Trustee and the Depository in
writing through the Depository Participants that the continuation of a
book-entry system with respect to Certificates of such Class through the
Depository (or its successor) is no longer in the best interests of the
Certificate Owners of such Class, then the Trustee shall notify all Certificate
Owners of such Certificates, through the Depository, of the occurrence of any
such event and of the availability of Definitive Certificates to Certificate
Owners of such Class requesting the same. The Depositor shall provide the
Trustee with an adequate inventory of certificates to facilitate the issuance
and transfer of Definitive Certificates. Upon surrender to the Trustee of any
such Certificates by the Depository, accompanied by registration instructions
from the Depository for registration, the Trustee shall authenticate and deliver
such Definitive Certificates. Neither the Depositor nor the Trustee shall be
liable for any delay in delivery of such instructions and each may conclusively
rely on, and shall be protected in relying on, such instructions. Upon the
issuance of such Definitive Certificates, all references herein to obligations
imposed upon or to be performed by the Depository shall be deemed to be imposed
upon and performed by the Trustee, to the extent applicable with respect to such
Definitive Certificates and the Trustee shall recognize the Holders of such
Definitive Certificates as Certificateholders hereunder.

         Section 5.09 Maintenance of Office or Agency.

         The Trustee will maintain or cause to be maintained at its expense an
office or offices or agency or agencies in New York City where Certificates may
be surrendered for registration of transfer or exchange. The Trustee initially
designates its offices at 101 Barclay Street, New York, New York 10286,
Attention: Corporate Trust MBS Administration, as offices for such purposes. The
Trustee will give prompt written notice to the Certificateholders of any change
in such location of any such office or agency.

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                                   ARTICLE VI

                THE DEPOSITOR, THE MASTER SERVICER AND THE SELLER

         Section 6.01 Respective Liabilities of the Depositor, the Master
                      Servicer and the Seller.

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

         Section 6.02 Merger or Consolidation of the Depositor, the Master
Servicer or the Seller.

         Each of the Depositor and the Seller will keep in full effect its
existence, rights and franchises as a corporation under the laws of the United
States or under the laws of one of the states thereof and will each obtain and
preserve its qualification to do business as a foreign corporation in each
jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Agreement, or any of the Mortgage Loans and
to perform its duties under this Agreement. The Master Servicer will keep in
effect its existence, rights and franchises as a limited partnership under the
laws of the United States or under the laws of one of the states thereof and
will obtain and preserve its qualification or registration to do business as a
foreign partnership in each jurisdiction in which such qualification or
registration is or shall be necessary to protect the validity and enforceability
of this Agreement or any of the Mortgage Loans and to perform its duties under
this Agreement.

         Any Person into which the Depositor, the Master Servicer or the Seller
may be merged or consolidated, or any Person resulting from any merger or
consolidation to which the Depositor, the Master Servicer or the Seller shall be
a party, or any person succeeding to the business of the Depositor, the Master
Servicer or the Seller, shall be the successor of the Depositor, the Master
Servicer or the Seller, 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 that the successor or
surviving Person to the Master Servicer shall be qualified to service mortgage
loans on behalf of Fannie Mae or Freddie Mac.

         Section 6.03 Limitation on Liability of the Depositor, the Seller, the
Master Servicer and Others.

         None of the Depositor, the Seller, the Master Servicer or any of the
directors, officers, employees or agents of the Depositor, the Seller or the
Master Servicer shall be under any liability to the Trust Fund or the
Certificateholders 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 that this provision shall not protect the Depositor, the Seller, the
Master Servicer or any such Person against any breach of representations or
warranties made by it herein or protect the Depositor, the Seller, the Master
Servicer or any such Person from any liability that would otherwise be imposed
by reasons of willful misfeasance, bad faith or gross negligence in the
performance of duties or by reason of reckless disregard of obligations and
duties hereunder. The Depositor, the Seller, the Master Servicer and any
director, officer, employee or agent of the

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Depositor, the Seller or the Master Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising hereunder. The Depositor, the Seller, the Master
Servicer and any director, officer, employee or agent of the Depositor, the
Seller or the Master Servicer shall be indemnified by the Trust Fund 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 Certificates,
other than any loss, liability or expense related to any specific Mortgage Loan
or Mortgage Loans (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) and any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or gross negligence
in the performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder. None of the Depositor, the Seller or the
Master Servicer shall be under any obligation to appear in, prosecute or defend
any legal action that is not incidental to its respective duties hereunder and
that in its opinion may involve it in any expense or liability; provided that
any of the Depositor, the Seller or the Master Servicer may, in its discretion
undertake any such action that it may deem necessary or desirable in respect of
this Agreement and the rights and duties of the parties hereto and interests of
the Trustee and the Certificateholders hereunder. In such event, the legal
expenses and costs of such action and any liability resulting therefrom shall
be, expenses, costs and liabilities of the Trust Fund, and the Depositor, the
Seller and the Master Servicer shall be entitled to be reimbursed therefor out
of the Certificate Account as provided by Section 3.08 hereof.

         Section 6.04 Limitation on Resignation of Master Servicer.

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

         Section 6.05 Errors and Omissions Insurance; Fidelity Bonds.

         The Master 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, together,
comply with the requirements from time to time of Fannie Mae or Freddie Mac for
persons performing servicing for mortgage loans purchased by Fannie Mae or
Freddie Mac. In the event that any such policy or bond ceases to be in effect,
the Master Servicer shall use its reasonable best efforts to 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.

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                                  ARTICLE VII

                     DEFAULT; TERMINATION OF MASTER SERVICER

         Section 7.01 Events of Default.

         "Event of Default," wherever used herein, means any one of the
following events:

         (i) any failure by the Master Servicer to deposit in the Certificate
Account or the Distribution Account or remit to the Trustee any payment
(excluding a payment required to be made under Section 4.01 hereof) required to
be made under the terms of this Agreement, which failure shall continue
unremedied for five calendar days and, with respect to a payment required to be
made under Section 4.01 hereof, for one Business Day, after the date on which
written notice of such failure shall have been given to the Master Servicer by
the Trustee, the Seller or the Depositor, or to the Trustee and the Master
Servicer by the Holders of Certificates evidencing not less than 25% of the
Voting Rights evidenced by the Certificates; or

         (ii) any failure by the Master Servicer to observe or perform in any
material respect any other of the covenants or agreements on the part of the
Master Servicer contained in this Agreement or any representation or warranty
shall prove to be untrue, which failure or breach shall continue unremedied for
a period of 60 days after the date on which written notice of such failure shall
have been given to the Master Servicer by the Trustee or the Depositor, or to
the Trustee by the Holders of Certificates evidencing not less than 25% of the
Voting Rights evidenced by the Certificates; provided that the sixty-day cure
period shall not apply to the initial delivery of the Mortgage File for Delay
Delivery Mortgage Loans nor the failure to repurchase or substitute 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 Master Servicer and such decree or
order shall have remained in force undischarged or unstayed for a period of 60
consecutive days; or

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

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

         (vi) the Master Servicer shall fail to reimburse in full the Trustee
not later than 6:00 P.M., New York time on the Business Day following the
related Distribution Date for any

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Advance made by the Trustee pursuant to Section 4.01(b) together with accrued
and unpaid interest.

         If an Event of Default shall occur, then, and in each and every such
case, so long as such Event of Default shall not have been remedied, the Trustee
shall, but only at the direction of the Holders of Certificates evidencing not
less than 25% of the Voting Rights evidenced by the Certificates, by notice in
writing to the Master Servicer (with a copy to each Rating Agency), terminate
all of the rights and obligations of the Master Servicer under this Agreement
and in and to the Mortgage Loans and the proceeds thereof, other than its rights
as a Certificateholder hereunder. On or after the receipt by the Master Servicer
of such written notice, all authority and power of the Master Servicer
hereunder, whether with respect to the Mortgage Loans or otherwise, shall pass
to and be vested in the Trustee. The Trustee shall thereupon make any Advance
described in Section 4.01 hereof subject to Section 3.04 hereof. The Trustee is
hereby authorized and empowered to execute and deliver, on behalf of the Master
Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the Mortgage Loans and
related documents, or otherwise. Unless expressly provided in such written
notice, no such termination shall affect any obligation of the Master Servicer
to pay amounts owed pursuant to Article VIII. The Master Servicer agrees to
cooperate with the Trustee in effecting the termination of the Master Servicer's
responsibilities and rights hereunder, including, without limitation, the
transfer to the Trustee of all cash amounts which shall at the time be credited
to the Certificate Account, or thereafter be received with respect to the
Mortgage Loans. The Trustee shall promptly notify the Rating Agencies of the
occurrence of an Event of Default.

         Notwithstanding any termination of the activities of a Master Servicer
hereunder, such Master Servicer shall be entitled to receive, out of any late
collection of a Scheduled Payment on a Mortgage Loan that was due prior to the
notice terminating such Master Servicer's rights and obligations as Master
Servicer hereunder and received after such notice, that portion thereof to which
such Master Servicer would have been entitled pursuant to Sections 3.08(a)(i)
through (viii), and any other amounts payable to such Master Servicer hereunder
the entitlement to which arose prior to the termination of its activities
hereunder.

         Section 7.02 Trustee to Act; Appointment of Successor.

         On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.01 hereof, the Trustee shall, to the extent
provided in Section 3.04, be the successor to the Master Servicer in its
capacity as servicer under this Agreement and the transactions set forth or
provided for herein and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Master Servicer by the terms and
provisions hereof and applicable law including the obligation to make advances
pursuant to Section 4.01. As compensation therefor, the Trustee shall be
entitled to all fees, costs and expenses relating to the Mortgage Loans that the
Master Servicer would have been entitled to if the Master Servicer had continued
to act hereunder. Notwithstanding the foregoing, if the Trustee has become the
successor to the Master Servicer in accordance with Section 7.01 hereof, the
Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited
by applicable law from making Advances pursuant to Section 4.01 hereof or if it
is otherwise unable to so act, appoint, or petition a court of competent
jurisdiction

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to appoint, any established mortgage loan servicing institution the appointment
of which does not adversely affect the then current rating of the Certificates
by each Rating Agency as the successor to the Master Servicer hereunder in the
assumption of all or any part of the responsibilities, duties or liabilities of
the Master Servicer hereunder. Any successor Master Servicer shall be an
institution that is a Fannie Mae and Freddie Mac approved seller/servicer in
good standing, that has a net worth of at least $15,000,000, and that is willing
to service the Mortgage Loans and executes and delivers to the Depositor and the
Trustee an agreement accepting such delegation and assignment, that contains an
assumption by such Person of the rights, powers, duties, responsibilities,
obligations and liabilities of the Master Servicer (other than liabilities of
the Master Servicer under Section 6.03 hereof incurred prior to termination of
the Master Servicer under Section 7.01), with like effect as if originally named
as a party to this Agreement; and provided further that each Rating Agency
acknowledges that its rating of the Certificates in effect immediately prior to
such assignment and delegation will not be qualified or reduced as a result of
such assignment and delegation. No appointment of a successor to the Master
Servicer hereunder shall be effective until the Trustee shall have consented
thereto, and written notice of such proposed appointment shall have been
provided by the Trustee to each Certificateholder. The Trustee shall not resign
as servicer until a successor servicer has been appointed and has accepted such
appointment. Pending appointment of a successor to the Master Servicer
hereunder, the Trustee, unless the Trustee is prohibited by law from so acting,
shall, subject to Section 3.04 hereof, act in such capacity as hereinabove
provided. In connection with such appointment and assumption, the Trustee may
make such arrangements for the compensation of such successor out of payments on
Mortgage Loans as it and such successor shall agree; provided that no such
compensation shall be in excess of that permitted the Master Servicer hereunder.
The Trustee and such successor shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession. Neither the
Trustee nor any other successor servicer shall be deemed to be in default
hereunder by reason of any failure to make, or any delay in making, any
distribution hereunder or any portion thereof or any failure to perform, or any
delay in performing, any duties or responsibilities hereunder, in either case
caused by the failure of the Master Servicer to deliver or provide, or any delay
in delivering or providing, any cash, information, documents or records to it.

         Any successor to the Master Servicer as servicer shall give notice to
the Mortgagors of such change of servicer and shall, during the term of its
service as servicer maintain in force the policy or policies that the Master
Servicer is required to maintain pursuant to Section 6.05.

         In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Trustee if the Trustee is acting as successor Master Servicer, shall represent
and warrant that it is a member of MERS in good standing and shall agree to
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS, or (ii) the predecessor Master Servicer shall cooperate with the successor
Master Servicer in causing MERS to execute and deliver an assignment of Mortgage
in recordable form to transfer the Mortgage from MERS to the Trustee and to
execute and deliver such other notices, documents and other instruments as may
be necessary or desirable to effect a transfer of such Mortgage Loan or
servicing of such Mortgage Loan on the MERS(R) System to the successor Master
Servicer. The predecessor Master Servicer shall file or cause to be filed any
such assignment in the appropriate recording office. The successor Master
Servicer shall cause such assignment to

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be delivered to the Trustee or the Custodian promptly upon receipt of the
original with evidence of recording thereon or a copy certified by the public
recording office in which such assignment was recorded.

         Section 7.03 Notification to Certificateholders.

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

         (b) Within 60 days after the occurrence of any Event of Default, the
Trustee shall transmit by mail to all Certificateholders notice of each such
Event of Default hereunder known to the Trustee, unless such Event of Default
shall have been cured or waived.

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                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

         Section 8.01 Duties of Trustee.

         The Trustee, prior to the occurrence of an Event of Default and after
the curing of all Events of Default that may have occurred, shall undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement. In case an Event of Default has occurred and remains uncured, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.

         The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee that are specifically required to be furnished pursuant to any provision
of this Agreement shall examine them to determine whether they conform to the
requirements of this Agreement, to the extent provided in this Agreement. If any
such instrument is found not to conform to the requirements of this Agreement in
a material manner, the Trustee shall take action as it deems appropriate to have
the instrument corrected.

         No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own grossly negligent action, its own gross
negligent failure to act or its own misconduct, its grossly negligent failure to
perform its obligations in compliance with this Agreement, or any liability that
would be imposed by reason of its willful misfeasance or bad faith; provided
that:

         (i) prior to the occurrence of an Event of Default, and after the
curing of all such Events of Default that may have occurred, the duties and
obligations of the Trustee shall be determined solely by the express provisions
of this Agreement, the Trustee shall not be liable, individually or as Trustee,
except for the performance of such duties and obligations as are specifically
set forth in this Agreement, no implied covenants or obligations shall be read
into this Agreement against the Trustee and the Trustee may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon any certificates or opinions furnished to the Trustee and
conforming to the requirements of this Agreement that it reasonably believed in
good faith to be genuine and to have been duly executed by the proper
authorities respecting any matters arising hereunder;

         (ii) the Trustee shall not be liable, individually or as Trustee, for
an error of judgment made in good faith by a Responsible Officer or Responsible
Officers of the Trustee, unless the Trustee was grossly negligent or acted in
bad faith or with willful misfeasance;

         (iii) the Trustee shall not be liable, individually or as Trustee, with
respect to any action taken, suffered or omitted to be taken by it in good faith
in accordance with the direction of Holders of each Class of Certificates
evidencing not less than 25% of the Voting Rights of such Class relating to the
time, method and place of conducting any proceeding for any remedy

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available to the Trustee, or exercising any trust or power conferred upon the
Trustee under this Agreement; and

         (vi) without in any way limiting the provisions of this Section 8.01 or
Section 8.02 hereof, the Trustee shall be entitled to rely conclusively on the
information delivered to it by the Master Servicer in a Trustee Advance Notice
in determining whether or not it is required to make an Advance under Section
4.01(b), shall have no responsibility to ascertain or confirm any information
contained in any Trustee Advance Notice, and shall have no obligation to make
any Advance under Section 4.01(b) in the absence of a Trustee Advance Notice or
actual knowledge of a Responsible Officer of the Trustee that (A) such Advance
was not made by the Master Servicer and (B) that such Advance is not a
Nonrecoverable Advance.

         Section 8.02 Certain Matters Affecting the Trustee.

         (a) Except as otherwise provided in Section 8.01:

               (i) the Trustee may request and rely upon and shall be protected
          in acting or refraining from acting upon any resolution, Officer's
          Certificate, certificate of auditors or any other certificate,
          statement, instrument, opinion, report, notice, request, consent,
          order, appraisal, bond or other paper or document believed by it to be
          genuine and to have been signed or presented by the proper party or
          parties;

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

               (iii) the Trustee shall not be liable, individually or as
          Trustee, for any action taken, suffered or omitted by it in good faith
          and believed by it to be authorized or within the discretion or rights
          or powers conferred upon it by this Agreement;

               (iv) prior to the occurrence of an Event of Default hereunder and
          after the curing of all Events of Default that may have occurred, the
          Trustee shall not be bound to make any investigation into the facts or
          matters stated in any resolution, certificate, statement, instrument,
          opinion, report, notice, request, consent, order, approval, bond or
          other paper or document, unless requested in writing so to do by
          Holders of each Class of Certificates evidencing not less than 25% of
          the Voting Rights of such Class;

               (v) the Trustee may execute any of the trusts or powers hereunder
          or perform any duties hereunder either directly or by or through
          agents, accountants or attorneys;

               (vi) the Trustee shall not be required to expend its own funds or
          otherwise incur any financial liability in the performance of any of
          its duties hereunder if it shall have reasonable grounds for believing
          that repayment of such funds or adequate indemnity against such
          liability is not assured to it;

               (vii) the Trustee shall not be liable, individually or as
          Trustee, for any loss on any investment of funds pursuant to this
          Agreement (other than in its commercial capacity as issuer of the
          investment security);

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<PAGE>

               (viii) the Trustee shall not be deemed to have knowledge of an
          Event of Default until a Responsible Officer of the Trustee shall have
          received written notice thereof; and

               (ix) the Trustee shall be under no obligation to exercise any of
          the trusts or powers vested in it by this Agreement or to make any
          investigation of matters arising hereunder or to institute, conduct or
          defend any litigation hereunder or in relation hereto at the request,
          order or direction of any of the Certificateholders, pursuant to the
          provisions of this Agreement, unless such Certificateholders shall
          have offered to the Trustee reasonable security or indemnity against
          the costs, expenses and liabilities that may be incurred therein or
          thereby.

         (b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by the Trustee without
the possession of any of the Certificates, or the production thereof at the
trial or other proceeding relating thereto, and any such suit, action or
proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of the Certificates, subject to the provisions of
this Agreement.

         Section 8.03 Trustee Not Liable for Mortgage Loans.

         The recitals contained herein shall be taken as the statements of the
Depositor or the Master Servicer, as the case may be, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Agreement or of any Mortgage Loan or related
document or of MERS or the MERS(R) System other than with respect to the
Trustee's execution and authentication of the Certificates. The Trustee shall
not be accountable for the use or application by the Depositor or the Master
Servicer of any funds paid to the Depositor or the Master Servicer in respect of
the Mortgage Loans or deposited in or withdrawn from the Certificate Account by
the Depositor or the Master Servicer.

         Section 8.04 Trustee May Own Certificates.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Certificates with the same rights as it would have if it
were not the Trustee.

         Section 8.05 Master Servicer to Pay Trustee's Fees and Expenses.

         The Master Servicer covenants and agrees to pay or reimburse the
Trustee, upon its request, for all reasonable expenses, disbursements and
advances incurred or made by the Trustee on behalf of the Trust Fund in
accordance with any of the provisions of this Agreement (including, without
limitation: (A) the reasonable compensation and the expenses and disbursements
of its counsel, but only for representation of the Trustee acting in its
capacity as Trustee hereunder and (B) to the extent that the Trustee must engage
persons not regularly in its employ to perform acts or services on behalf of the
Trust Fund, which acts or services are not in the ordinary course of the duties
of a trustee, paying agent or certificate registrar, in the absence of a breach
or default by any party hereto, the reasonable compensation, expenses and
disbursements of such persons, except any such expense, disbursement or advance
as may arise from its negligence, bad faith or willful misconduct). The Trustee
and any director, officer,

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employee or agent of the Trustee shall be indemnified by the Master Servicer and
held harmless against any loss, liability or expense (i) incurred in connection
with any legal action relating to this Agreement or the Certificates, or in
connection with the performance of any of the Trustee's duties hereunder, other
than any loss, liability or expense incurred by reason of willful misfeasance,
bad faith or negligence in the performance of any of the Trustee's duties
hereunder or by reason of reckless disregard of the Trustee's obligations and
duties hereunder and (ii) resulting from any error in any tax or information
return prepared by the Master Servicer. Such indemnity shall survive the
termination of this Agreement or the resignation or removal of the Trustee
hereunder.

         Section 8.06 Eligibility Requirements for Trustee.

         The Trustee hereunder shall, at all times, be a corporation or
association organized and doing business under the laws of a state or the United
States of America, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000, subject
to supervision or examination by federal or state authority and with a credit
rating that would not cause any of the Rating Agencies to reduce their
respective ratings of any Class of Certificates below the ratings issued on the
Closing Date (or having provided such security from time to time as is
sufficient to avoid such reduction). If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.06 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.07 hereof. The corporation or
national banking association serving as Trustee may have normal banking and
trust relationships with the Depositor, the Seller and the Master Servicer and
their respective affiliates; provided that such corporation cannot be an
affiliate of the Master Servicer other than the Trustee in its role as successor
to the Master Servicer.

         Section 8.07 Resignation and Removal of Trustee.

         The Trustee may at any time resign and be discharged from the trusts
hereby created by (1) giving written notice of resignation to the Depositor and
the Master Servicer and by mailing notice of resignation by first class mail,
postage prepaid, to the Certificateholders at their addresses appearing on the
Certificate Register and each Rating Agency, not less than 60 days before the
date specified in such notice when, subject to Section 8.08, such resignation is
to take effect, and (2) acceptance of appointment by a successor trustee in
accordance with Section 8.08 and meeting the qualifications set forth in Section
8.06. If no successor trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice or resignation, the
resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor trustee.

         If at any time (i) the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.06 hereof and shall fail to resign after
written request thereto by the Depositor, (ii) the Trustee shall become
incapable of acting, or shall be adjudged as bankrupt or insolvent, or a

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receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, or
(iii)(A) a tax is imposed with respect to the Trust Fund by any state in which
the Trustee or the Trust Fund is located, (B) the imposition of such tax would
be avoided by the appointment of a different trustee and (C) the Trustee fails
to indemnify the Trust Fund against such tax, then the Depositor or the Master
Servicer may remove the Trustee and appoint a successor trustee by written
instrument, in triplicate, one copy of which instrument shall be delivered to
the Trustee, one copy of which shall be delivered to the Master Servicer and one
copy of which shall be delivered to the successor trustee.

         The Holders evidencing at least 51% of the Voting Rights of each Class
of Certificates may at any time remove the Trustee and appoint a successor
trustee by written instrument or instruments, in triplicate, signed by such
Holders or their attorneys-in-fact duly authorized, one complete set of which
instruments shall be delivered by the successor Trustee to the Master Servicer
one complete set to the Trustee so removed and one complete set to the successor
so appointed. Notice of any removal of the Trustee shall be given to each Rating
Agency by the Successor Trustee.

         Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.07 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.08 hereof.

         Section 8.08 Successor Trustee.

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

         No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.06 hereof and its appointment
shall not adversely affect the then current rating of the Certificates.

         Upon acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Depositor shall mail notice of the succession of such
trustee hereunder to all Holders of Certificates. If the Depositor fails to mail
such notice within ten days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be mailed at the
expense of the Depositor.

         Section 8.09 Merger or Consolidation of Trustee.

         Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation

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to which the Trustee shall be a party, or any corporation succeeding to
substantially all of the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided that such corporation shall be
eligible under the provisions of Section 8.06 hereof without the execution or
filing of any paper or further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.

         Section 8.10 Appointment of Co-Trustee or Separate Trustee.

         Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Fund or property securing any Mortgage Note may at the
time be located, the Master Servicer and the Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee to act as co-trustee or co-trustees jointly with
the Trustee, or separate trustee or separate trustees, of all or any part of the
Trust Fund, and to vest in such Person or Persons, in such capacity and for the
benefit of the Certificateholders, such title to the Trust Fund or any part
thereof, whichever is applicable, and, subject to the other provisions of this
Section 8.10, such powers, duties, obligations, rights and trusts as the Master
Servicer and the Trustee may consider necessary or desirable. If the Master
Servicer shall not have joined in such appointment within 15 days after the
receipt by it of a request to do so, or in the case an Event of Default shall
have occurred and be continuing, the Trustee alone shall have the power to make
such appointment. No co-trustee or separate trustee hereunder shall be required
to meet the terms of eligibility as a successor trustee under Section 8.06 and
no notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.08.

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

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

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

         (iii) The Trustee may at any time accept the resignation of or remove
any separate trustee or co-trustee.

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

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

         Section 8.11 Tax Matters.

         It is intended that the Trust Fund shall constitute, and that the
affairs of the Trust Fund shall be conducted so that each of REMIC I and REMIC
II will qualify as, a "real estate mortgage investment conduit" as defined in
and in accordance with the REMIC Provisions. In furtherance of such intention,
the Trustee covenants and agrees that it shall act as agent (and the Trustee is
hereby appointed to act as agent) on behalf of the Trust Fund and that in such
capacity it shall: (a) prepare and file, or cause to be prepared and filed, in a
timely manner, a U.S. Real Estate Mortgage Investment Conduit Income Tax Returns
(Form 1066 or any successor form adopted by the Internal Revenue Service) and
prepare and file or cause to be prepared and filed with the Internal Revenue
Service and applicable state or local tax authorities income tax or information
returns for each taxable year with respect to each REMIC created hereunder
containing such information and at the times and in the manner as may be
required by the Code or state or local tax laws, regulations, or rules, and
furnish or cause to be furnished to Certificateholders the schedules, statements
or information at such times and in such manner as may be required thereby; (b)
within thirty days of the Closing Date, furnish or cause to be furnished to the
Internal Revenue Service, on Forms 8811 or as otherwise may be required by the
Code, the name, title, address, and telephone number of the person that the
holders of the Certificates may contact for tax information relating thereto,
together with such additional information as may be required by such Form, and
update such information at the time or times in the manner required by the Code
for the Trust Fund; (c) make or cause to be made elections, on behalf of each
REMIC created hereunder to be treated as a REMIC on the federal tax return of
each such REMIC for its first taxable year (and, if necessary, under applicable
state law); (d) prepare and forward, or cause to be prepared and forwarded, to
the Certificateholders and to the Internal Revenue Service and, if necessary,
state tax authorities, all information returns and reports as and when required
to be provided to them in accordance with the REMIC Provisions, including
without limitation, the calculation of any original issue discount using the
Prepayment Assumption; (e) provide information necessary for the computation of
tax imposed on the transfer of a Class A-R Certificate to a Person that is not a
Permitted Transferee, or an agent

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(including a broker, nominee or other middleman) of a Non-Permitted Transferee,
or a pass-through entity in which a Non-Permitted Transferee is the record
holder of an interest (the reasonable cost of computing and furnishing such
information may be charged to the Person liable for such tax); (f) to the extent
that they are under its control conduct the affairs of the Trust Fund at all
times that any Certificates are outstanding so as to maintain the status of each
REMIC created hereunder as a REMIC under the REMIC Provisions; (g) not knowingly
or intentionally take any action or omit to take any action that would cause the
termination of the REMIC status of any REMIC created hereunder; (h) pay, from
the sources specified in the last paragraph of this Section 8.11, the amount of
any federal, state and local taxes, including prohibited transaction taxes as
described below, imposed on any REMIC created hereunder prior to the termination
of the Trust Fund when and as the same shall be due and payable (but such
obligation shall not prevent the Trustee or any other appropriate Person from
contesting any such tax in appropriate proceedings and shall not prevent the
Trustee from withholding payment of such tax, if permitted by law, pending the
outcome of such proceedings); (i) sign or cause to be signed federal, state or
local income tax or information returns; (j) maintain records relating to each
REMIC created hereunder, including but not limited to the income, expenses,
assets and liabilities of each such REMIC, and the fair market value and
adjusted basis of the Trust Fund property determined at such intervals as may be
required by the Code, as may be necessary to prepare the foregoing returns,
schedules, statements or information; and (k) as and when necessary and
appropriate, represent the Trust Fund in any administrative or judicial
proceedings relating to an examination or audit by any governmental taxing
authority, request an administrative adjustment as to any taxable year of any
REMIC created hereunder, enter into settlement agreements with any governmental
taxing agency, extend any statute of limitations relating to any tax item of the
Trust Fund, and otherwise act on behalf of any REMIC created hereunder in
relation to any tax matter involving any such REMIC.

         In order to enable the Trustee to perform its duties as set forth
herein, the Depositor shall provide, or cause to be provided, to the Trustee
within 10 days after the Closing Date all information or data that the Trustee
requests in writing and determines to be relevant for tax purposes to the
valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
to the Trustee promptly upon written request therefor, any such additional
information or data that the Trustee may, from time to time, request in order to
enable the Trustee to perform its duties as set forth herein. The Depositor
hereby indemnifies the Trustee for any losses, liabilities, damages, claims or
expenses of the Trustee arising from any errors, omissions or miscalculations of
the Trustee that result from any failure of the Depositor to provide, or to
cause to be provided, accurate information or data to the Trustee on a timely
basis.

         In the event that any tax is imposed on "prohibited transactions" of
the Trust Fund as defined in Section 860F(a)(2) of the Code, on the "net income
from foreclosure property" of the Trust Fund as defined in Section 860G(c) of
the Code, on any contribution to the Trust Fund after the startup day pursuant
to Section 860G(d) of the Code, or any other tax is imposed, including, without
limitation, any federal, state or local tax or minimum tax imposed upon the
Trust Fund pursuant to Sections 23153 and 24872 of the California Revenue and
Taxation Code if not paid as otherwise provided for herein, such tax shall be
paid by (i) the Trustee, if any such other tax arises out of or results from a
breach by the Trustee of any of its obligations under this

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Agreement, (ii) (x) the Master Servicer, in the case of any such minimum tax,
and (y) any party hereto (other than the Trustee) to the extent any such other
tax arises out of or results from a breach by such other party of any of its
obligations under this Agreement or (iii) in all other cases, or in the event
that any liable party here fails to honor its obligations under the preceding
clauses (i) or (ii), any such tax will be paid first with amounts otherwise to
be distributed to the Class A-R Certificateholders , and second with amounts
otherwise to be distributed to all other Certificateholders in the following
order of priority: first, to the Class B Certificates (pro rata), second, to the
Class M-5 Certificates (pro rata), third, to the Class M-4 Certificates (pro
rata), fourth, to the Class M-3 Certificates (pro rata), fifth, to the Class M-2
Certificates (pro rata), sixth, to the Class M-1 Certificates (pro rata), and
seventh, to the Class 1-A Certificates (pro rata) and Class 2-A Certificates
(pro rata). Notwithstanding anything to the contrary contained herein, to the
extent that such tax is payable by the Class A-R Certificates, the Trustee is
hereby authorized to retain on any Distribution Date, from the Holders of the
Class A-R Certificates (and, if necessary, second, from the Holders of the all
other Certificates in the priority specified in the preceding sentence), funds
otherwise distributable to such Holders in an amount sufficient to pay such tax.
The Trustee agrees to promptly notify in writing the party liable for any such
tax of the amount thereof and the due date for the payment thereof.

         The Trustee shall treat the rights of the Class 1-A-1, Class 1-A-2,
Class 2-A-1, Class 2-A-2, Class 2-A-3, Class M-1, Class M-2, Class M-3, Class
M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B Certificateholders
to receive payments from the Carryover Reserve Fund as rights in an interest
rate cap contracts written by the Corridor Contract Counterparty with respect to
the Net Rate Carryover funded by the Corridor Contracts and Excess Cashflow, in
favor of the Certificateholders (other than the Holders of the Class A-R, Class
C and Class P Certificates). Thus, each Certificate (other than the Class A-R,
Class C and Class P Certificates) shall be treated as representing ownership of
not only REMIC II Regular Interests, but also ownership of an interest in an
interest rate cap contract. For purposes of determining the issue price of the
REMIC II Regular Interests, the Trustee shall assume that the Class I-A Corridor
Contract, the Class 2-A Corridor Contract and Subordinated Corridor Contract
have values of $429,000, $223,500 and $197,000 respectively.

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                                   ARTICLE IX

                                   TERMINATION

         Section 9.01 Termination upon Liquidation or Repurchase of all Mortgage
                      Loans.

         (a) Subject to Section 9.03, the Trust Fund shall terminate and the
obligations and responsibilities of the Depositor, the Master Servicer, the
Seller and the Trustee created hereby shall terminate upon the earlier of (a)
(i) the surrender of a majority of the Class C Certificateholders of their
interests to the Trustee causing the Trustee to liquidate the assets of the
Trust Fund by selling them for at least the aggregate Stated Principal Balance
of the Mortgage Loans plus interest at the related Mortgage Rate, or the
purchase by the Master Servicer of all of the Mortgage Loans (and REO
Properties) remaining in the Trust Fund at the price equal to the sum of (i)
100% of the Stated Principal Balance of each Mortgage Loan plus one month's
accrued interest thereon at the applicable Mortgage Rate less the Servicing Fee
Rate, (ii) the lesser of (x) the appraised value of any REO Property as
determined by the higher of two appraisals completed by two independent
appraisers selected by the Master Servicer at the expense of the Master Servicer
and (y) the Stated Principal Balance of each Mortgage Loan related to any REO
Property and (iii) any remaining unpaid costs and damages incurred by the Trust
Fund that arises out of a violation of any predatory or abusive lending law that
also constitutes an actual breach of representation (xxxiv) of Section 2.03
hereof and (b) the later of (i) the maturity or other liquidation (or any
Advance with respect thereto) of the last Mortgage Loan remaining in the Trust
Fund and the disposition of all REO Property and (ii) the distribution to
Certificateholders of all amounts required to be distributed to them pursuant to
this Agreement. In no event shall the 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', living on the date hereof and (ii) the Latest Possible
Maturity Date.

         (b) The right to cause the Trustee to liquidate the assets of the Trust
Fund and the purchase of all Mortgage Loans and REO Properties by the holders of
the Class C Certificates or the Master Servicer (the party exercising such
purchase option, the "Terminating Party") pursuant to clause (a) above (such
right, the "Option") shall be conditioned upon the Stated Principal Balance of
the Mortgage Loans at the time of any such repurchase, aggregating ten percent
(10%) or less of the aggregate Stated Principal Balance of the Mortgage Loans as
of the Cut-off Date.

         (c) The holders of a majority of the Percentage Interests of the Class
C Certificates may exercise the Option on any distribution date on or after the
first Distribution Date on which the Stated Principal Balance of the Mortgage
Loans aggregates ten percent (10%) or less of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date. If the holders of a
majority of the Class C Certificates do not exercise the Option on any such
Distribution Date, the Master Servicer shall have the right to exercise the
Option on such Distribution Date.

         Section 9.02 Final Distribution on the Certificates.

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         If on any Determination Date, (i) the Master Servicer determines that
there are no Outstanding Mortgage Loans and no other funds or assets in the
Trust Fund other than the funds in the Certificate Account, the Master Servicer
shall direct the Trustee to send a final distribution notice promptly to each
Certificateholder or (ii) the Trustee determines that a Class of Certificates
shall be retired after a final distribution on such Class, the Trustee shall
notify the related Certificateholders within five (5) Business Days after such
Determination Date that the final distribution in retirement of such Class of
Certificates is scheduled to be made on the immediately following Distribution
Date. Any final distribution made pursuant to the immediately preceding sentence
will be made only upon presentation and surrender of the related Certificates at
the Corporate Trust Office of the Trustee. If the Terminating Party elects to
terminate the Trust Fund pursuant to Section 9.01, at least 5 days prior to the
date notice is to be mailed to the Certificateholders, such electing party shall
notify the Depositor and the Trustee of the date such electing party intends to
terminate the Trust Fund and of the applicable repurchase price of the related
Mortgage Loans and REO Properties.

         Notice of any termination of the Trust Fund, specifying the
Distribution Date on which related Certificateholders may surrender their
Certificates for payment of the final distribution and cancellation, shall be
given promptly by the Trustee by letter to related Certificateholders mailed not
earlier than the 10th day and no later than the 15th day of the month of such
final distribution. Any such notice shall specify (a) the Distribution Date upon
which final distribution on related Certificates will be made upon presentation
and surrender of such Certificates at the office therein designated, (b) the
amount of such final distribution, (c) the location of the office or agency at
which such presentation and surrender must be made, and (d) that the Record Date
otherwise applicable to such Distribution Date is not applicable, distributions
being made only upon presentation and surrender of such Certificates at the
office therein specified. The Master Servicer will give such notice to each
Rating Agency at the time such notice is given to the affected
Certificateholders.

         In the event such notice is given, the Master Servicer shall cause all
funds in the Certificate Account to be remitted to the Trustee for deposit in
the Distribution Account on the Business Day prior to the applicable
Distribution Date. Upon such final deposit and the receipt by the Trustee of a
Request for Release therefor, the Trustee shall promptly release to the
Terminating Party the Mortgage Files for the related Mortgage Loans.

         Upon presentation and surrender of the related Certificates, the
Trustee shall cause to be distributed to Certificateholders of each Class the
amounts allocable to such Certificates held in the Distribution Account (and, if
applicable, the Carryover Reserve Fund) in the order and priority set forth in
Section 4.04 hereof on the final Distribution Date and in proportion to their
respective Percentage Interests.

         In the event that any affected Certificateholders shall not surrender
related Certificates for cancellation within six months after the date specified
in the above mentioned written notice, the Trustee shall give a second written
notice to the remaining Certificateholders to surrender their related
Certificates for cancellation and receive the final distribution with respect
thereto. If within six months after the second notice all the applicable
Certificates shall not have been surrendered for cancellation, the Trustee may
take appropriate steps, or may appoint an agent to take appropriate steps, to
contact the remaining Certificateholders concerning surrender of their

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Certificates, and the cost thereof shall be paid out of the funds and other
assets that remain a part of the Trust Fund. If within one year after the second
notice all related Certificates shall not have been surrendered for
cancellation, the Class A-R Certificates shall be entitled to all unclaimed
funds and other assets that remain subject hereto.

         Section 9.03 Additional Termination Requirements.

         (a) In the event the Terminating Party exercises the Option, the Trust
Fund shall be terminated in accordance with the following additional
requirements, unless the Trustee has been supplied with an Opinion of Counsel,
at the expense of the Terminating Party, to the effect that the failure of the
Trust Fund to comply with the requirements of this Section 9.03 will not (i)
result in the imposition of taxes on "prohibited transactions" of a REMIC, or
(ii) cause any REMIC created hereunder to fail to qualify as a REMIC at any time
that any Certificates are outstanding:

         (1) The Terminating Party shall establish a 90 day liquidation period
and notify the Trustee thereof, which shall in turn specify the first day of
such period in a statement attached to the Trust Fund's final Tax Return
pursuant to Treasury Regulation Section 1.860F 1. The Terminating Party shall
prepare a plan of complete liquidation and shall otherwise satisfy all the
requirements of a qualified liquidation under Section 860F of the Code and any
regulations thereunder, as evidenced by an Opinion of Counsel obtained at the
expense of the Terminating Party;

         (2) During such 90 day liquidation period, and at or prior to the time
of making the final payment on the Certificates, the Master Servicer as agent of
the Trustee shall sell all of the assets of the Trust Fund for cash; and

         (3) At the time of the making of the final payment on the Certificates,
the Trustee shall distribute or credit, or cause to be distributed or credited,
to the Class A-R Certificateholders all cash on hand (other than cash retained
to meet claims) related to such Class of Certificates, and the Trust Fund shall
terminate at that time.

         (b) By their acceptance of the Certificates, the Holders thereof hereby
authorize the Terminating Party to specify the 90 day liquidation period for the
Trust Fund, which authorization shall be binding upon all successor
Certificateholders.

         (c) The Trustee as agent for each REMIC created hereunder hereby agrees
to adopt and sign such a plan of complete liquidation upon the written request
of the Terminating Party, and, together with the holders of the Class A-R
Certificates, agree to take such other action in connection therewith as may be
reasonably requested by the Terminating Party.

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                                   ARTICLE X

                            MISCELLANEOUS PROVISIONS

         Section 10.01 Amendment.

         This Agreement may be amended from time to time by the Depositor, the
Master Servicer, the Seller and the Trustee, without the consent of any of the
Certificateholders to cure any ambiguity, to correct or supplement any
provisions herein, to make such other provisions with respect to matters or
questions arising under this Agreement, as shall not be inconsistent with any
other provisions herein or to give effect to the expectations of the investors
if such action shall not, as evidenced by an Opinion of Counsel, adversely
affect in any material respect the interests of any Certificateholder; provided
that any such amendment shall be deemed not to adversely affect in any material
respect the interests of the Certificateholders and no such Opinion of Counsel
shall be required if the Person requesting such amendment obtains a letter from
each Rating Agency stating that such amendment would not result in the
downgrading or withdrawal of the respective ratings then assigned to the
Certificates, 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. Notwithstanding the foregoing, no amendment that
significantly changes the permitted activities of the trust created by this
Agreement may be made without the consent of Certificateholders representing not
less than 51% of the Voting Rights of each Class of Certificates affected by
such amendment.

         The Trustee, the Depositor, the Master Servicer and the Seller may also
at any time and from time to time amend this Agreement, without the consent of
the Certificateholders, to modify, eliminate or add to any of its provisions to
such extent as shall be necessary or appropriate to maintain the qualification
of the Trust Fund as a REMIC under the Code or to avoid or minimize the risk of
the imposition of any tax on the Trust Fund pursuant to the Code that would be a
claim against the Trust Fund at any time prior to the final redemption of the
Certificates, provided that the Trustee have 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 Trustee, to the effect that such
action is necessary or appropriate to maintain such qualification or to avoid or
minimize the risk of the imposition of such a tax.

         This Agreement may also be amended from time to time by the Depositor,
the Master Servicer, the Seller and the Trustee and the Holders of each Class of
Certificates adversely affected thereby evidencing not less than a majority
Percentage Interest of the Voting Rights of such Class for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions
of this Agreement or of modifying in any manner the rights of the Holders of
Certificates; provided that no such amendment pursuant to this paragraph shall
(i) reduce in any manner the amount of, or delay the timing of, payments
required to be distributed on any Certificate without the consent of the Holder
of such Certificate, (ii) adversely affect in any material respect the interests
of the Holders of any Class of Certificates in a manner other than as described
in (i), without the consent of the Holders of Certificates of such Class
evidencing 66%

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or more of the Voting Rights of such Class, or (iii) reduce the aforesaid
percentages of Certificates the Holders of which are required to consent to any
such amendment without the consent of the Holders of all such Certificates then
outstanding.

         Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel, which opinion shall be an expense of the party
requesting such amendment but in any case shall not be an expense of the
Trustee, to the effect that such amendment will not cause the imposition of any
tax on the Trust Fund or the Certificateholders or cause the Trust Fund to fail
to qualify as a REMIC at any time that any Certificates are outstanding.

         Promptly after the execution of any amendment to this Agreement
requiring the consent of Certificateholders, the Trustee shall furnish written
notification of the substance of such amendment to each Certificateholder and
each Rating Agency.

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

         Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel, satisfactory to the 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 Certificateholder or (B) the conclusion set forth in the
immediately preceding clause (A) is not required to be reached pursuant to this
Section 10.01.

         Section 10.02 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 Master Servicer at its expense.

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

         Section 10.03 Governing Law.

         THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN

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ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES
THEREOF.

         Section 10.04 Intention of Parties.

         It is the express intent of the parties hereto that the conveyance of
the Mortgage Notes, Mortgages, assignments of Mortgages, title insurance
policies and any modifications, extensions and/or assumption agreements and
private mortgage insurance policies relating to the Mortgage Loans by the
Depositor to the Trustee be, and be construed as, an absolute sale thereof to
the Trustee. It is, further, not the intention of the parties that such
conveyance be deemed a pledge thereof by the Depositor to the Trustee. However,
in the event that, notwithstanding the intent of the parties, such assets are
held to be the property of the Depositor, or if for any other reason this
Agreement is held or deemed to create a security interest in such assets, then
(i) this Agreement shall be deemed to be a security agreement (within the
meaning of the Uniform Commercial Code of the State of New York) with respect to
all such assets and security interests and (ii) the conveyance provided for in
this Agreement shall be deemed to be an assignment and a grant pursuant to the
terms of this Agreement by the Depositor to the Trustee, for the benefit of the
Certificateholders, of a security interest in all of the assets that constitute
the Trust Fund, whether now owned or hereafter acquired.

         The Depositor for the benefit of the Certificateholders shall, to the
extent consistent with this Agreement, take such actions as may be necessary to
ensure that, if this Agreement were deemed to create a security interest in the
assets of the Trust Fund, such security interest would be deemed to be a
perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of the Agreement. The Depositor shall
arrange for filing any Uniform Commercial Code continuation statements in
connection with any security interest granted or assigned to the Trustee for the
benefit of the Certificateholders.

         Section 10.05 Notices.

         (a) The Trustee shall use its best efforts to promptly provide notice
to each Rating Agency with respect to each of the following of which it has
actual knowledge:

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

               (ii) The occurrence of any Event of Default that has not been
          cured;

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

               (iv) The repurchase or substitution of Mortgage Loans pursuant to
          Sections 2.02, 2.03, 2.04 and 3.12; and

               (v) The final payment to Certificateholders.

         In addition, the Trustee shall promptly furnish to each Rating Agency
copies of the following:

                                      141
<PAGE>

               (i) Each report to Certificateholders described in Section 4.05;

               (ii) Each annual statement as to compliance described in Section
          3.17; and

               (iii) Each annual independent public accountants' servicing
          report described in Section 3.18.

         (b) All directions, demands and notices hereunder shall be in writing
and shall be deemed to have been duly given when sent by facsimile transmission,
first class mail or delivered to (i) in the case of the Depositor, CWABS, Inc.,
4500 Park Granada, Calabasas, California 91302, Attention: Josh Adler, with a
copy to the same address, Attention: Legal Department; (ii) in the case of the
Seller, Countrywide Home Loans, Inc., 4500 Park Granada, Calabasas, California
91302, Attention: Josh Adler, with a copy to the same address, Attention: Legal
Department, or such other address as may be hereafter furnished to the Depositor
and the Trustee by the Master Servicer in writing; (iii) in the case of the
Master Servicer, Countrywide Home Loans Servicing LP, 400 Countrywide Way, Simi
Valley, California 93065, Attention: Mark Wong or such other address as may be
hereafter furnished to the Depositor and the Trustee by the Master Servicer in
writing; (iv) in the case of the Trustee, The Bank of New York, 101 Barclay
Street, New York, New York 10286 Attention: Corporate Trust MBS Administration,
CWABS, Series 2004-BC4, or such other address as the Trustee may hereafter
furnish to the Depositor or the Master Servicer; and (v) in the case of the
Rating Agencies, (y) Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc., Attention: Mortgage Surveillance Group, 25
Broadway, 12th Floor, New York, New York 10004, and (z) Fitch Ratings, One State
Street Plaza, 32nd Floor, New York, New York, 10004, Attention: Alla Sirotic,
Residential Mortgage, or such other address as may hereinafter be furnished to
the Depositor in writing by Fitch Ratiings. Notices to Certificateholders shall
be deemed given when mailed, first class postage prepaid, to their respective
addresses appearing in the Certificate Register.

         Section 10.06 Severability of Provisions.

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

         Section 10.07 Assignment.

         Notwithstanding anything to the contrary contained herein, except as
provided pursuant to Section 6.02, this Agreement may not be assigned by the
Master Servicer without the prior written consent of the Trustee and the
Depositor.

         Section 10.08 Limitation on Rights of Certificateholders

         The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, nor entitle such Certificateholder's
legal representative or heirs to claim an accounting or to take any action or
commence any proceeding in any court for a petition

                                      142
<PAGE>

or winding up of the Trust Fund, or otherwise affect the rights, obligations and
liabilities of the parties hereto or any of them.

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

         No Certificateholder shall have any right by virtue or by availing
itself of any provisions of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Agreement,
unless such Holder previously shall have given to the Trustee a written notice
of an Event of Default and of the continuance thereof, as hereinbefore provided,
the Holders of Certificates evidencing not less than 25% of the Voting Rights
evidenced by the Certificates shall also have made written request to the
Trustee to institute such action, suit or proceeding in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses, and liabilities to be incurred therein
or thereby, and the Trustee, for 60 days after its receipt of such notice,
request and offer of indemnity shall have neglected or refused to institute any
such action, suit or proceeding; it being understood and intended, and being
expressly covenanted by each Certificateholder with every other
Certificateholder and the Trustee, that no one or more Holders of Certificates
shall have any right in any manner whatever by virtue or by availing itself or
themselves of any provisions of this Agreement to affect, disturb or prejudice
the rights of the Holders of any other of the Certificates, or to obtain or seek
to obtain priority over or preference to any other such Holder or to enforce any
right under this Agreement, except in the manner herein provided and for the
common benefit of all Certificateholders. For the protection and enforcement of
the provisions of this Section 10.08, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

         Section 10.09 Inspection and Audit Rights.

         The Master Servicer agrees that, on reasonable prior notice, it will
permit any representative of the Depositor, the Seller or the Trustee during the
Master Servicer's normal business hours, to examine all the books of account,
records, reports and other papers of the Master Servicer relating to the
Mortgage Loans, to make copies and extracts therefrom, to cause such books to be
audited by independent certified public accountants selected by the Depositor,
the Seller or the Trustee and to discuss its affairs, finances and accounts
relating to the Mortgage Loans with its officers, employees and independent
public accountants (and by this provision the Master Servicer hereby authorizes
such accountants to discuss with such representative such affairs, finances and
accounts), all at such reasonable times and as often as may be reasonably
requested. Any out-of-pocket expense incident to the exercise by the Depositor,
the Seller or the Trustee of any right under this Section 10.09 shall be borne
by the party requesting such inspection; all other such expenses shall be borne
by the Master Servicer.

         Section 10.10 Certificates Nonassessable and Fully Paid.

                                      143
<PAGE>

         It is the intention of the Depositor that Certificateholders shall not
be personally liable for obligations of the Trust Fund, that the interests in
the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

                                      * * *

                                      144
<PAGE>

         IN WITNESS WHEREOF, the Depositor, the Master Servicer, the Seller and
the Trustee have caused their names to be signed hereto by their respective
officers thereunto duly authorized as of the day and year first above written.

                                  CWABS, INC.,
                                  as Depositor

                                  By:  /s/ Ruben Avilez
                                      ---------------------------------
                                  Name:    Ruben Avilez
                                  Title:   Vice President

                                  COUNTRYWIDE HOME LOANS, INC.,
                                  as Seller

                                  By:  /s/ Ruben Avilez
                                      ---------------------------------
                                  Name:    Ruben Avilez
                                  Title:   Vice President

                                  COUNTRYWIDE HOME LOANS
                                  SERVICING LP,
                                  as Master Servicer

                                  By:      COUNTRYWIDE GP, INC.

                                  By:  /s/ Ruben Avilez
                                      ---------------------------------
                                  Name:    Ruben Avilez
                                  Title:   Senior Vice President

                                  THE BANK OF NEW YORK,
                                  not in its individual capacity,
                                  but solely as Trustee

                                  By: /s/ Maria Tokarz
                                      -----------------------------------
                                  Name:   Maria Tokarz
                                  Title:  Assistant Treasurer

                                      145
<PAGE>

THE BANK OF NEW YORK
(solely with respect to its obligations under Section 4.01(b))

By: /s/ Paul Connolly
   -----------------------------
Name:   Paul Connolly
Title:  Vice President

                                      146
<PAGE>

STATE OF CALIFORNIA        )
                           )        ss.:
COUNTY OF LOS ANGELES      )

         On this 28th day of October, 2004, before me, a notary public in and
for said State, appeared Ruben Avilez, personally known to me on the basis of
satisfactory evidence to be a Vice President of Countrywide Home Loans, Inc.,
one of the corporations that executed the within instrument, and also known to
me to be the person who executed it on behalf of such corporation and
acknowledged to me that such corporation executed the within instrument.

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

                                             /s/ Glenda Daniel
                                             ------------------------------
                                                       Notary Public

                                      147
<PAGE>

[Notarial Seal]
STATE OF CALIFORNIA        )
                           )        ss.:
COUNTY OF LOS ANGELES      )

         On this 28th day of October, 2004, before me, a notary public in and
for said State, appeared Ruben Avilez, personally known to me on the basis of
satisfactory evidence to be a Senior Vice President of Countrywide GP, Inc., the
general partner of Countrywide Home Loans Servicing LP, one of the organizations
that executed the within instrument, and also known to me to be the person who
executed it on behalf of such corporation and acknowledged to me that such
corporation executed the within instrument.

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

                                             /s/ Glenda Daniel
                                             ------------------------------
                                                       Notary Public

 [Notarial Seal]

                                      148
<PAGE>

STATE OF CALIFORNIA         )
                            )        ss.:
COUNTY OF LOS ANGELES       )

         On this 28th day of October, 2004, before me, a notary public in and
for said State, appeared Ruben Avilez, personally known to me on the basis of
satisfactory evidence to be a Vice President of CWABS, Inc., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of such corporation and acknowledged to me that
such corporation executed the within instrument.

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

                                             /s/ Glenda Daniel
                                             ------------------------------
                                                       Notary Public

 [Notarial Seal]

                                      149
<PAGE>

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

         On this 28th day of October, 2004, before me, a notary public in and
for said State, appeared Courtney A. Bartholomew, personally known to me on the
basis of satisfactory evidence to be a Vice President of The Bank of New York, a
New York banking corporation that executed the within instrument, and also known
to me to be the person who executed it on behalf of such corporation, and
acknowledged to me that such corporation executed the within instrument.

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

                                             /s/ Kara Stairiker
                                             ------------------------------
                                                       Notary Public

 [Notarial Seal]

                                      150

<PAGE>

                                                                   Exhibit A-1

                           Exhibit A-1 is a photocopy
                        of the Class 1-A-1 Certificate as
                                   delivered.

                [See appropriate documents delivered at closing]

                                      A-1
<PAGE>

                                                                   Exhibit A-2

                           Exhibit A-2 is a photocopy
                        of the Class 1-A-2 Certificate as
                                   delivered.

                [See appropriate documents delivered at closing]

                                      A-2
<PAGE>

                                                                   Exhibit A-3

                           Exhibit A-3 is a photocopy
                        of the Class 2-A-1 Certificate as
                                   delivered.

                [See appropriate documents delivered at closing]

                                      A-3
<PAGE>

                                                                   Exhibit A-4

                           Exhibit A-4 is a photocopy
                        of the Class 2-A-2 Certificate as
                                   delivered.

                [See appropriate documents delivered at closing]

                                      A-4
<PAGE>

                                                                   Exhibit A-5

                           Exhibit A-5 is a photocopy
                        of the Class 2-A-3 Certificate as
                                   delivered.

                [See appropriate documents delivered at closing]

                                      A-5
<PAGE>

                                                                   Exhibit A-6

                           Exhibit A-6 is a photocopy
                         of the Class M-1 Certificate as
                                   delivered.

                [See appropriate documents delivered at closing]

                                      A-6
<PAGE>

                                                                   Exhibit A-7

                           Exhibit A-7 is a photocopy
                          of the Class M-2 Certificates
                                  as delivered.

                [See appropriate documents delivered at closing.]

                                      A-7
<PAGE>

                                                                   Exhibit A-8

                           Exhibit A-8 is a photocopy
                          of the Class M-3 Certificate
                                  as delivered.

                [See appropriate documents delivered at closing]

                                      A-8
<PAGE>

                                                                   Exhibit A-9

                           Exhibit A-9 is a photocopy
                          of the Class M-4 Certificates
                                  as delivered.

                [See appropriate documents delivered at closing.]

                                      A-9
<PAGE>

                                                                   Exhibit A-10

                           Exhibit A-10 is a photocopy
                          of the Class M-5 Certificate
                                  as delivered.

                [See appropriate documents delivered at closing]

                                      A-10
<PAGE>

                                                                   Exhibit A-11

                           Exhibit A-11 is a photocopy
                          of the Class M-6 Certificate
                                  as delivered.

                [See appropriate documents delivered at closing]

                                      A-11
<PAGE>

                                                                   Exhibit A-12

                           Exhibit A-12 is a photocopy
                          of the Class M-7 Certificate
                                  as delivered.

                [See appropriate documents delivered at closing]

                                      A-12
<PAGE>

                                                                   Exhibit A-13

                           Exhibit A-13 is a photocopy
                          of the Class M-8 Certificate
                                  as delivered.

                [See appropriate documents delivered at closing]

                                      A-13
<PAGE>

                                                                   Exhibit A-14

                           Exhibit A-14 is a photocopy
                           of the Class B Certificates
                                  as delivered.

                [See appropriate documents delivered at closing.]

                                      A-14
<PAGE>

                                                                   Exhibit B

                            Exhibit B is a photocopy
                           of the Class C Certificate
                                  as delivered.

                [See appropriate documents delivered at closing]

                                      B-1
<PAGE>

                                                                   Exhibit C

                            Exhibit C is a photocopy
                           of the Class P Certificate
                                  as delivered.

                [See appropriate documents delivered at closing]

                                      B-2
<PAGE>

                                                                   Exhibit D-1

                           Exhibit D-1 is a photocopy
                          of the Class A-R Certificate
                                  as delivered.

                [See appropriate documents delivered at closing]

                                      C-1
<PAGE>

                                                                   Exhibit E

                            Exhibit E is a photocopy
                      of the Tax Matters Person Certificate
                                  as delivered.

                [See appropriate documents delivered at closing]

                                      E-1
<PAGE>

                                                            Exhibit F-1 and F-2

               Exhibit F-1 and F-2 are schedules of Mortgage Loans

         [Delivered to Trustee at closing and on file with the Trustee]

                                  F-1 and F-2
<PAGE>

                                   EXHIBIT G-1

                    FORM OF INITIAL CERTIFICATION OF TRUSTEE

                                     [Date]

[Depositor]

[Seller]

[Master Servicer]

                  Re:      Pooling and Servicing Agreement, dated as of October
                           1, 2004, among CWABS, Inc., as Depositor, Countrywide
                           Home Loans, Inc., as Seller, Countrywide Home Loans
                           Servicing LP, as Master Servicer and The Bank of New
                           York, as Trustee, relating to the Asset-Backed
                           Certificates, Series 2004-BC4

Gentlemen:

         In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as Trustee (the "Trustee"), hereby
certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or listed on the attachment hereto)
it has reviewed the Mortgage File and the Mortgage Loan Schedule and has
determined that: (i) all documents required to be included in the Mortgage File
are in its possession; (ii) such documents have been reviewed by it and appear
regular on their face and relate to such Mortgage Loan; and (iii) based on
examination by it, and only as to such documents, the information set forth in
items (i), (ii), (iii) and (iv) of the definition or description of "Mortgage
Loan Schedule" is correct.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representation that any documents specified in clause (vi) of Section 2.01
should be included in any Mortgage File. The Trustee makes no representations as
to and shall not be responsible to verify: (i) the validity, legality,
sufficiency, enforceability, due authorization, recordability or genuineness of
any of the documents contained in each Mortgage File of any of the Mortgage
Loans identified on the Mortgage Loan Schedule, (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan, or (iii)
the existence of any assumption, modification, written assurance or substitution
agreement with respect to any Mortgage File if no such documents appear in the
Mortgage File delivered to the Trustee.

                                     G-1-1
<PAGE>

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

                                              The Bank of New York,
                                               as Trustee

                                              By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                     G-1-2
<PAGE>

                                   EXHIBIT G-2

                    FORM OF INTERIM CERTIFICATION OF TRUSTEE

                                     [Date]

[Depositor]

[Seller]

[Master Servicer]

                  Re:      Pooling and Servicing Agreement, dated as of October
                           1, 2004, among CWABS, Inc., as Depositor, Countrywide
                           Home Loans, Inc., as Seller, Countrywide Home Loans
                           Servicing LP, as Master Servicer and The Bank of New
                           York, as Trustee, relating to the Asset-Backed
                           Certificates, Series 2004-BC4

Gentlemen:

         In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as Trustee, hereby certifies that, except
as listed in the following paragraph, as to each Mortgage Loan listed in the
Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on
the attached list of exceptions) the Trustee has received:

         (i)      the original Mortgage Note, endorsed by the Seller or the
                  originator of such Mortgage Loan, without recourse in the
                  following form: "Pay to the order of _______________ without
                  recourse", with all intervening endorsements that show a
                  complete chain of endorsement from the originator to the
                  Seller, or, if the original Mortgage Note has been lost or
                  destroyed and not replaced, an original lost note affidavit
                  from the Seller, stating that the original Mortgage Note was
                  lost or destroyed, together with a copy of the related
                  Mortgage Note;

         (ii)     in the case of each Mortgage Loan that is not a MERS Mortgage
                  Loan, the original recorded Mortgage, and in the case of each
                  Mortgage Loan that is a MERS Mortgage Loan, the original
                  Mortgage, noting thereon the presence of the MIN of the
                  Mortgage Loan and language indicating that the Mortgage Loan
                  is a MOM Loan if the Mortgage Loan is a MOM Loan, with
                  evidence of recording indicated thereon, or a copy of the
                  Mortgage certified by the public recording office in which
                  such Mortgage has been recorded;

         (iii)    in the case of each Mortgage Loan that is not a MERS Mortgage
                  Loan, a duly executed assignment of the Mortgage to
                  "Asset-Backed Certificates, Series 2004-

                                     G-2-1
<PAGE>

                  BC4, CWABS, Inc., by The Bank of New York, a New York banking
                  corporation, as trustee under the Pooling and Servicing
                  Agreement, dated as of October 1, 2004, without recourse", or,
                  in the case of each Mortgage Loan with respect to property
                  located in the State of California that is not a MERS Mortgage
                  Loan, a duly executed assignment of the Mortgage in blank
                  (each such assignment, when duly and validly completed, to be
                  in recordable form and sufficient to effect the assignment of
                  and transfer to the assignee thereof, under the Mortgage to
                  which such assignment relates);

         (iv)     the original recorded assignment or assignments of the
                  Mortgage together with all interim recorded assignments of
                  such Mortgage [(noting the presence of a MIN in the case of
                  each MERS Mortgage Loan)];

         (v)      the original or copies of each assumption, modification,
                  written assurance or substitution agreement, if any, with
                  evidence of recording thereon if recordation thereof is
                  permissible under applicable law; and

         (vi)     the original or duplicate original lender's title policy or a
                  printout of the electronic equivalent and all riders thereto
                  or, in the event such original title policy has not been
                  received from the insurer, any one of an original title
                  binder, an original preliminary title report or an original
                  title commitment, or a copy thereof certified by the title
                  company, with the original policy of title insurance to be
                  delivered within one year of the Closing Date.

         In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan the Seller cannot deliver the original recorded Mortgage or
all interim recorded assignments of the Mortgage satisfying the requirements of
clause (ii), (iii) or (iv), as applicable, the Trustee has received, in lieu
thereof, a true and complete copy of such Mortgage and/or such assignment or
assignments of the Mortgage, as applicable, each certified by the Seller, the
applicable title company, escrow agent or attorney, or the originator of such
Mortgage Loan, as the case may be, to be a true and complete copy of the
original Mortgage or assignment of Mortgage submitted for recording.

         Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v), (vi),
(viii), (xi) and (xiv) of the definition of the "Mortgage Loan Schedule" in
Section 1.01 of the Pooling and Servicing Agreement accurately reflects
information set forth in the Mortgage File.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representations as to: (i) the validity, legality, sufficiency, enforceability
or genuineness of any of the documents contained in each Mortgage File of any of
the Mortgage Loan identified on the Mortgage Loan Schedule or (ii) the
collectibility, insurability, effectiveness or suitability of any such Mortgage
Loan.

                                     G-2-2
<PAGE>

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

                                              The Bank of New York,
                                               as Trustee

                                              By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                     G-2-3
<PAGE>

                                   EXHIBIT G-3

                      FORM OF DELAY DELIVERY CERTIFICATION

                                     [Date]

[Depositor]

[Seller]

[Master Servicer]

                  Re:      Pooling and Servicing Agreement, dated as of October
                           1, 2004 (the "Pooling and Servicing Agreement"),
                           among CWABS, Inc., as Depositor, Countrywide Home
                           Loans, Inc., as Seller, Countrywide Home Loans
                           Servicing LP, as Master Servicer and The Bank of New
                           York, as Trustee, relating to the Asset-Backed
                           Certificates, - Series 2004-BC4

Gentlemen:

         Reference is made to the Initial Certification of Trustee relating to
the above-referenced series, with the schedule of exceptions attached thereto,
delivered by the undersigned, as Trustee, on the Closing Date in accordance with
Section 2.02 of the above-captioned Pooling and Servicing Agreement. The
undersigned hereby certifies that as to each Delay Delivery Mortgage Loan listed
on the Schedule A attached hereto (other than any Mortgage Loan paid in full or
listed on Schedule B attached hereto) the Trustee has received:

         (i)      the original Mortgage Note, endorsed by the Seller or the
                  originator of such Mortgage Loan, without recourse in the
                  following form: "Pay to the order of _______________ without
                  recourse", with all intervening endorsements that show a
                  complete chain of endorsement from the originator to the
                  Seller, or, if the original Mortgage Note has been lost or
                  destroyed and not replaced, an original lost note affidavit
                  from the Seller, stating that the original Mortgage Note was
                  lost or destroyed, together with a copy of the related
                  Mortgage Note; and

         (ii)     in the case of each Mortgage Loan that is not a MERS Mortgage
                  Loan, a duly executed assignment of the Mortgage to
                  "Asset-Backed Certificates, Series 2004-BC4, CWABS, Inc., by
                  The Bank of New York, a New York banking corporation, as
                  trustee under the Pooling and Servicing Agreement, dated as of
                  October 1, 2004, without recourse", or, in the case of each
                  Mortgage Loan with respect to property located in the State of
                  California that is not a MERS Mortgage Loan, a duly executed
                  assignment of the Mortgage in blank (each such assignment,
                  when duly and validly completed, to be in recordable form and

                                     G-3-1
<PAGE>

                  sufficient to effect the assignment of and transfer to the
                  assignee thereof, under the Mortgage to which such assignment
                  relates).

         Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representations as to: (i) the validity, legality, sufficiency, enforceability
or genuineness of any of the documents contained in each Mortgage File of any of
the Mortgage Loan identified on the Mortgage Loan Schedule or (ii) the
collectibility, insurability, effectiveness or suitability of any such Mortgage
Loan.

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

                                              THE BANK OF NEW YORK,
                                               as Trustee

                                              By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                     G-3-2
<PAGE>

                                   EXHIBIT G-4

                                   [RESERVED]

                                      G-4
<PAGE>

                                    EXHIBIT H

                     FORM OF FINAL CERTIFICATION OF TRUSTEE

                                     [Date]

[Depositor]

[Master Servicer]

[Seller]

                  Re:      Pooling and Servicing Agreement, dated as of October
                           1, 2004 (the "Pooling and Servicing Agreement"),
                           among CWABS, Inc., as Depositor, Countrywide Home
                           Loans, Inc., as Seller, Countrywide Home Loans
                           Servicing LP, as Master Servicer and The Bank of New
                           York, as Trustee, relating to the Asset-Backed
                           Certificates, Series 2004-BC4

Gentlemen:

         In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as Trustee, hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on the attached Document Exception Report) the
Trustee has received:

         (i)      the original Mortgage Note, endorsed by the Seller or the
                  originator of such Mortgage Loan, without recourse in the
                  following form: "Pay to the order of _________________ without
                  recourse", with all intervening endorsements that show a
                  complete chain of endorsement from the originator to the
                  Seller, or, if the original Mortgage Note has been lost or
                  destroyed and not replaced, an original lost note affidavit
                  from the Seller, stating that the original Mortgage Note was
                  lost or destroyed, together with a copy of the related
                  Mortgage Note;

         (ii)     in the case of each Mortgage Loan that is not a MERS Mortgage
                  Loan, the original recorded Mortgage, and in the case of each
                  Mortgage Loan that is a MERS Mortgage Loan, the original
                  Mortgage, noting thereon the presence of the MIN of the
                  Mortgage Loan and language indicating that the Mortgage Loan
                  is a MOM Loan if the Mortgage Loan is a MOM Loan, with
                  evidence of recording indicated thereon, or a copy of the
                  Mortgage certified by the public recording office in which
                  such Mortgage has been recorded;

                                      H-1
<PAGE>

         (iii)    in the case of each Mortgage Loan that is not a MERS Mortgage
                  Loan, a duly executed assignment of the Mortgage to
                  "Asset-Backed Certificates, Series 2004-BC4, CWABS, Inc., by
                  The Bank of New York, a New York banking corporation, as
                  trustee under the Pooling and Servicing Agreement, dated as of
                  October 1, 2004, without recourse", or, in the case of each
                  Mortgage Loan with respect to property located in the State of
                  California that is not a MERS Mortgage Loan, a duly executed
                  assignment of the Mortgage in blank (each such assignment,
                  when duly and validly completed, to be in recordable form and
                  sufficient to effect the assignment of and transfer to the
                  assignee thereof, under the Mortgage to which such assignment
                  relates);

         (iv)     the original recorded assignment or assignments of the
                  Mortgage together with all interim recorded assignments of
                  such Mortgage [(noting the presence of a MIN in the case of
                  each MERS Mortgage Loan)];

         (v)      the original or copies of each assumption, modification,
                  written assurance or substitution agreement, if any, with
                  evidence of recording thereon if recordation thereof is
                  permissible under applicable law; and

         (vi)     the original or duplicate original lender's title policy or a
                  printout of the electronic equivalent and all riders thereto
                  or any one of an original title binder, an original
                  preliminary title report or an original title commitment, or a
                  copy thereof certified by the title company.

         If the public recording office in which a Mortgage or assignment
thereof is recorded has retained the original of such Mortgage or assignment,
the Trustee has received, in lieu thereof, a copy of the original Mortgage or
assignment so retained, with evidence of recording thereon, certified to be true
and complete by such recording office.

         Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v), (vi),
(viii), (xiii) and (xiv) of the definition of the "Mortgage Loan Schedule" in
Section 1.01 of the Pooling and Servicing Agreement accurately reflects
information set forth in the Mortgage File.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representations as to: (i) the validity, legality, sufficiency, enforceability
or genuineness of any of the documents contained in each Mortgage File of any of
the Mortgage Loans identified on the Mortgage Loan Schedule or (ii) the
collectibility, insurability, effectiveness or suitability of any such Mortgage
Loan.

                                      H-2
<PAGE>

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

                                              The Bank of New York,
                                               as Trustee

                                              By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                      H-3
<PAGE>

                                    EXHIBIT I

                               TRANSFER AFFIDAVIT

STATE OF          )
                  )    ss.:
COUNTY OF         )

         The undersigned, being first duly sworn, deposes and says as follows:

         1.       The undersigned is an officer of __________, the proposed
transferee of an Ownership Interest in a Class A-R Certificate (the
"Certificate") issued pursuant to the Pooling and Servicing Agreement, dated as
of October 1, 2004 (the "Agreement"), by and among CWABS, Inc., as depositor
(the "Depositor"), Countrywide Home Loans, Inc., as Seller, Countrywide Home
Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee.
Capitalized terms used, but not defined herein or in Exhibit 1 hereto, shall
have the meanings ascribed to such terms in the Agreement. The transferee has
authorized the undersigned to make this affidavit on behalf of the transferee.

         2.       Either (a) the transferee is not an employee benefit plan that
is subject to Section 406 of ERISA or to section 4975 of the Internal Revenue
Code of 1986, nor is it acting on behalf of or with plan assets of any such
plan, or (b) the transferee has provided the opinion of counsel specified in
Section 5.02(b) of the Agreement. The transferee is, as of the date hereof, and
will be, as of the date of the Transfer, a Permitted Transferee. The transferee
is acquiring its Ownership Interest in the Certificate for its own account.

         3.       The transferee has been advised of, and understands that (i) a
tax will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the subsequent transferee furnished to such Person an affidavit that
such subsequent transferee is a Permitted Transferee and, at the time of
Transfer, such Person does not have actual knowledge that the affidavit is
false.

         4.       The transferee has been advised of, and understands that a tax
will be imposed on a "pass-through entity" holding the Certificate if at any
time during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (For this
purpose, a "pass-through entity" includes a

                                      I-1
<PAGE>

regulated investment company, a real estate investment trust or common trust
fund, a partnership, trust or estate, and certain cooperatives and, except as
may be provided in Treasury Regulations, persons holding interests in
pass-through entities as a nominee for another Person.)

         5.       The transferee has reviewed the provisions of Section 5.02(c)
of the Agreement (attached hereto as Exhibit 2 and incorporated herein by
reference) and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The transferee expressly agrees to be bound by and
to abide by the provisions of Section 5.02(c) of the Agreement and the
restrictions noted on the face of the Certificate. The transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the transferee contemplated hereby null and void.

         6.       The transferee agrees to require a Transfer Affidavit from any
Person to whom the transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
transferee is acting as nominee, trustee or agent, and the transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the transferee, the
transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit I to the Agreement (a "Transferor Certificate") to the
effect that such transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.

         7.       The transferee does not have the intention to impede the
assessment or collection of any tax legally required to be paid with respect to
the Class A-R Certificates.

         8.       The transferee's taxpayer identification number is
__________________.

         9.       The transferee is a U.S. Person as defined in Code section
7701(a)(30).

         10.      The transferee is aware that the Class A-R Certificates may be
"noneconomic residual interests" within the meaning of proposed Treasury
regulations promulgated pursuant to the Code and that the transferor of a
noneconomic residual interest will remain liable for any taxes due with respect
to the income on such residual interest, unless no significant purpose of the
transfer was to impede the assessment or collection of tax. In addition, as the
holder of a noneconomic residual interest, the transferee may incur tax
liabilities in excess of any cash flows generated by the interest and the
transferee hereby represents that it intends to pay taxes associated with
holding the residual interest as they become due.

         11.      The transferee has provided financial statements or other
financial information requested by the Transferor in connection with the
transfer of the Class A-R Certificates to permit the Transferor to assess the
financial capability of the transferee to pay such taxes.

                                      * * *

                                      I-2
<PAGE>

         IN WITNESS WHEREOF, the transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this __th day of _______, 20__.

                                              [NAME OF TRANSFEREE]

                                              By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

[Corporate Seal]

ATTEST:

-------------------------
[Assistant] Secretary

         Personally appeared before me the above-named _____________, known or
proved to me to be the same person who executed the foregoing instrument and to
be the _____________________ of the transferee, and acknowledged that he
executed the same as his free act and deed and the free act and deed of the
transferee.

         Subscribed and sworn before me this __th day of _______, 20__.

                                           ------------------------------------
                                                       NOTARY PUBLIC

                                           My Commission expires the ___ day of
                                                        , 20__.

                                      I-3
<PAGE>

                                                                   EXHIBIT 1

                               Certain Definitions

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

         "Permitted Transferee": Any person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, International Organization or
any agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code) that
is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
by section 511 of the Code on unrelated business taxable income) on any excess
inclusions (as defined in section 860E(c)(1) of the Code) with respect to any
Class A-R Certificate, (iv) rural electric and telephone cooperatives described
in section 1381(a)(2)(C) of the Code, (v) an "electing large partnership" as
defined in Section 775 of the Code, (vi) a Person that is not a citizen or
resident of the United States, a corporation, partnership, or other entity
(treated as a corporation or a partnership for federal income tax purposes)
created or organized in or under the laws of the United States, any state
thereof or the District of Columbia, or an estate whose income from sources
without the United States is includible in gross income for United States
federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States, or a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States persons have authority to control all
substantial decisions of the trustor unless such Person has furnished the
transferor and the Trustee with a duly completed Internal Revenue Service Form
W-8ECI, and (vii) any other Person so designated by the Trustee based upon an
Opinion of Counsel that the Transfer of an Ownership Interest in a Class A-R
Certificate to such Person may cause the Trust Fund to fail to qualify as a
REMIC at any time that any Certificates are Outstanding. The terms "United
States," "State" and "International Organization" shall have the meanings set
forth in section 7701 of the Code or successor provisions. A corporation will
not be treated as an instrumentality of the United States or of any State or
political subdivision thereof for these purposes if all of its activities are
subject to tax and, with the exception of the Federal Home Loan Mortgage
Corporation, a majority of its board of directors is not selected by such
government unit.

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

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

                                      I-4
<PAGE>

Section 5.02(c) of the Agreement
--------------------------------

         (c)      Each Person who has or who acquires any Ownership Interest in
a Class A-R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Class A-R
Certificate are expressly subject to the following provisions:

                  (i)      Each Person holding or acquiring any Ownership
         Interest in a Class A-R Certificate shall be a Permitted Transferee and
         shall promptly notify the Trustee of any change or impending change in
         its status as a Permitted Transferee.

                  (ii)     No Ownership Interest in a Class A-R Certificate may
         be registered on the Closing Date or thereafter transferred, and the
         Trustee shall not register the Transfer of any Class A-R Certificate
         unless, in addition to the representation letters required to be
         delivered to the Trustee under subparagraph (b) above, the Trustee
         shall have been furnished with an affidavit (a "Transfer Affidavit") of
         the initial owner or the proposed transferee in the form attached
         hereto as Exhibit I.

                  (iii)    Each Person holding or acquiring any Ownership
         Interest in a Class A-R Certificate shall agree (A) to obtain a
         Transfer Affidavit from any other Person to whom such Person attempts
         to Transfer its Ownership Interest in a Class A-R Certificate, (B) to
         obtain a Transfer Affidavit from any Person for whom such Person is
         acting as nominee, trustee or agent in connection with any Transfer of
         a Class A-R Certificate and (C) not to Transfer its Ownership Interest
         in a Class A-R Certificate or to cause the Transfer of an Ownership
         Interest in a Class A-R Certificate to any other Person if it has
         actual knowledge that such Person is not a Permitted Transferee.

                  (iv)     Any attempted or purported Transfer of any Ownership
         Interest in a Class A-R Certificate in violation of the provisions of
         this Section 5.02(c) shall be absolutely null and void and shall vest
         no rights in the purported transferee. If any purported transferee
         shall become a Holder of a Class A-R Certificate in violation of the
         provisions of this Section 5.02(c), then the last preceding Permitted
         Transferee shall be restored to all rights as Holder thereof
         retroactive to the date of registration of Transfer of such Class A-R
         Certificate. The Trustee shall be under no liability to any Person for
         any registration of Transfer of a Class A-R Certificate that is in fact
         not permitted by Section 5.02(b) and Section 5.02(c) or for making any
         payments due on such Certificate to the Holder thereof or taking any
         other action with respect to such Holder under the provisions of this
         Agreement so long as the Transfer was registered after receipt of the
         related Transfer Affidavit, Transferor Certificate and either the Rule
         144A Letter or the Investment Letter. The Trustee shall be entitled but
         not obligated to recover from any Holder of a Class A-R Certificate
         that was in fact not a Permitted Transferee at the time it became a
         Holder or,

                                      I-5
<PAGE>

         at such subsequent time as it became other than a Permitted Transferee,
         all payments made on such Class A-R Certificate at and after either
         such time. Any such payments so recovered by the Trustee shall be paid
         and delivered by the Trustee to the last preceding Permitted Transferee
         of such Certificate.

         (v)      The Depositor shall use its best efforts to make available,
upon receipt of written request from the Trustee, all information necessary to
compute any tax imposed under Section 860E(e) of the Code as a result of a
Transfer of an Ownership Interest in a Class A-R Certificate to any Holder who
is not a Permitted Transferee.

         The restrictions on Transfers of a Class A-R Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Class A-R Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trust Fund, the Trustee, the Seller or
the Master Servicer, to the effect that the elimination of such restrictions
will not cause any REMIC hereunder to fail to qualify as a REMIC at any time
that the Certificates are outstanding or result in the imposition of any tax on
the Trust Fund, a Certificateholder or another Person. Each Person holding or
acquiring any Ownership Interest in a Class A-R Certificate hereby consents to
any amendment of this Agreement that, based on an Opinion of Counsel furnished
to the Trustee, is reasonably necessary (a) to ensure that the record ownership
of, or any beneficial interest in, a Class A-R Certificate is not transferred,
directly or indirectly, to a Person that is not a Permitted Transferee and (b)
to provide for a means to compel the Transfer of a Class A-R Certificate that is
held by a Person that is not a Permitted Transferee to a Holder that is a
Permitted Transferee.

                                      I-6
<PAGE>

                                   EXHIBIT J-1

                       FORM OF TRANSFEROR CERTIFICATE FOR
                             CLASS A-R CERTIFICATES

                                                                   Date:

CWABS, Inc.,
    as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
    as Trustee
101 Barclay Street
New York, New York 10286

                  Re:      CWABS, Inc. Asset-Backed
                           Certificates, Series 2004-BC4

Ladies and Gentlemen:

In connection with our disposition of the Class A-R Certificates, we certify
that we have no knowledge the Transferee is not a Permitted Transferee. All
capitalized terms used herein but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement, dated as of October 1,
2004, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller,
Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New
York, as Trustee.

                                              Very truly yours,

                                              ----------------------------------
                                              Name of Transferor

                                              By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                     J-1-1
<PAGE>

                                   EXHIBIT J-2

                       FORM OF TRANSFEROR CERTIFICATE FOR
                              PRIVATE CERTIFICATES

                                                                   Date:

CWABS, Inc.,
    as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
    as Trustee
101 Barclay Street
New York, New York 10286

                  Re:      CWABS, Inc. Asset-Backed Certificates,
                           Series 2004-BC4, Class [   ]

Ladies and Gentlemen:

         In connection with our disposition of the above-captioned Certificates
we certify that (a) we understand that the Certificates have not been registered
under the Securities Act of 1933, as amended (the "Act"), and are being disposed
by us in a transaction that is exempt from the registration requirements of the
Act, (b) we have not offered or sold any Certificates to, or solicited offers to
buy any Certificates from, any person, or otherwise approached or negotiated
with any person with respect thereto, in a manner that would be deemed, or taken
any other action which would result in, a violation of Section 5 of the Act. All
capitalized terms used herein but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement, dated as of October 1,
2004, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller,
Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New
York, as Trustee.

                                              Very truly yours,

                                              ----------------------------------
                                              Name of Transferor

                                              By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                     J-2-1
<PAGE>

                                    EXHIBIT K

                    FORM OF INVESTMENT LETTER (NON-RULE 144A)

                                                                   Date:

CWABS, Inc.,
    as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
    as Trustee
101 Barclay Street
New York, New York 10286

                  Re:      CWABS, Inc. Asset-Backed Certificates,
                           Series 2004-BC4, Class [   ]

Ladies and Gentlemen:

         In connection with our acquisition of the above-captioned Certificates
we certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) either (i) we are not an employee benefit plan
that is subject to the Employee Retirement Income Security Act of 1974, as
amended, or a plan or arrangement that is subject to Section 4975 of the
Internal Revenue Code of 1986, as amended, nor are we acting on behalf of any
such plan or arrangement, nor are we using the assets of any such plan or
arrangement to effect such acquisition or (ii) the transferee has provided the
opinion of counsel specified in Section 5.02(b) of the Pooling and Servicing
Agreement, (e) we are acquiring the Certificates for investment for our own
account and not with a view to any distribution of such Certificates (but
without prejudice to our right at all times to sell or otherwise dispose of the
Certificates in accordance with clause (g) below), (f) we have not offered or
sold any Certificates to, or solicited offers to buy any Certificates from, any
person, or otherwise approached or negotiated with any person with respect
thereto, or taken any other action which would result in a violation of Section
5 of the Act, and (g) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is made
pursuant to an effective registration

                                      K-1
<PAGE>

statement under the Act or is exempt from such registration requirements, and if
requested, we will at our expense provide an opinion of counsel satisfactory to
the addressees of this Certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate, and (3) the purchaser or
transferee has otherwise complied with any conditions for transfer set forth in
the Pooling and Servicing Agreement.

         All capitalized terms used herein but not defined herein shall have the
meanings assigned to them in the Pooling and Servicing Agreement dated as of
October 1, 2004, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc.,
as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank
of New York, as Trustee.

                                              Very truly yours,

                                              ----------------------------------
                                              Name of Transferee

                                              By:
                                                 -------------------------------
                                                 Authorized Officer

                                      K-2
<PAGE>

                                    EXHIBIT L

                            FORM OF RULE 144A LETTER

                                                                   Date:

CWABS, Inc.,
    as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
    as Trustee
101 Barclay Street
New York, New York 10286

                  Re:      CWABS, Inc. Asset-Backed Certificates,
                           Series 2004-BC4, Class [   ]

Ladies and Gentlemen:

         In connection with our acquisition of the above-captioned Certificates
we certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we have
such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) either (i) we are not an employee benefit plan
that is subject to the Employee Retirement Income Security Act of 1974, as
amended, or a plan or arrangement that is subject to Section 4975 of the
Internal Revenue Code of 1986, as amended, nor are we acting on behalf of any
such plan or arrangement, nor are we using the assets of any such plan or
arrangement to effect such acquisition or (ii) the transferee has provided the
opinion of counsel specified in Section 5.02(b) of the Pooling and Servicing
Agreement, (e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60"))
and the purchase and holding of such Certificates are covered under Sections I
and III of PTCE 95-60, (e) we have not, nor has anyone acting on our behalf
offered, transferred, pledged, sold or otherwise disposed of the Certificates,
any interest in the Certificates or any other similar security to, or solicited
any offer to buy or accept a transfer, pledge or other disposition of the
Certificates, any interest in the Certificates or any other similar security
from, or otherwise approached or negotiated with respect to the Certificates,
any interest in the Certificates or any other similar security with, any person
in any manner, or made any general solicitation by means of general advertising
or in any other manner, or taken any other action, that would constitute a
distribution of the Certificates under the

                                      L-1
<PAGE>

Securities Act or that would render the disposition of the Certificates a
violation of Section 5 of the Securities Act or require registration pursuant
thereto, nor will act, nor has authorized or will authorize any person to act,
in such manner with respect to the Certificates, (f) we are a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act and have completed either of the forms of certification to that effect
attached hereto as Annex 1 or Annex 2. We are aware that the sale to us is being
made in reliance on Rule 144A. We are acquiring the Certificates for our own
account or for resale pursuant to Rule 144A and further, understand that such
Certificates may be resold, pledged or transferred only (i) to a person
reasonably believed to be a qualified institutional buyer that purchases for its
own account or for the account of a qualified institutional buyer to whom notice
is given that the resale, pledge or transfer is being made in reliance on Rule
144A, or (ii) pursuant to another exemption from registration under the
Securities Act.

         All capitalized terms used herein but not defined herein shall have the
meanings assigned to them in the Pooling and Servicing Agreement, dated as of
October 1, 2004, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc.,
as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank
of New York, as Trustee.

                                      L-2
<PAGE>

                              ANNEX 1 TO EXHIBIT L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

The undersigned (the "Buyer") hereby certifies as follows to the parties listed
in the Rule 144A Transferee Certificate to which this certification relates with
respect to the Certificates described therein:

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

         2.       In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned
and/or invested on a discretionary basis either at least $100,000 in securities
or, if Buyer is a dealer, Buyer must own and/or invest on a discretionary basis
at least $10,000,000 in securities (except for the excluded securities referred
to below) as of the end of the Buyer's most recent fiscal year (such amount
being calculated in accordance with Rule 144A and (ii) the Buyer satisfies the
criteria in the category marked below.

                  ___      Corporation, etc. The Buyer is a corporation (other
                           than a bank, savings and loan association or similar
                           institution), Massachusetts or similar business
                           trust, partnership, or charitable organization
                           described in Section 501(c)(3) of the Internal
                           Revenue Code of 1986, as amended.

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

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

                                      L-3
<PAGE>

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

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

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

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

                  ___      Investment Advisor. The Buyer is an investment
                           advisor registered under the Investment Advisors Act
                           of 1940.

                  ___      Small Business Investment Company. Buyer is a small
                           business investment company licensed by the U.S.
                           Small Business Administration under Section 301(c) or
                           (d) of the Small Business Investment Act of 1958.

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

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

         4.       For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the Buyer used the
cost of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction.

                                      L-4
<PAGE>

However, such securities were not included if the Buyer is a majority-owned,
consolidated subsidiary of another enterprise and the Buyer is not itself a
reporting company under the Securities Exchange Act of 1934, as amended.

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

         6.       Until the date of purchase of the Rule 144A Securities, the
Buyer will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                              ----------------------------------
                                                     Print Name of Buyer

                                              By:
                                                 -------------------------------
                                              Name:
                                              Title:

                                              Date:
                                                    ----------------------------

                                      L-5
<PAGE>

                                                           ANNEX 2 TO EXHIBIT L
                                                           --------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

           [For Transferees That are Registered Investment Companies]

The undersigned (the "Buyer") hereby certifies as follows to the parties listed
in the Rule 144A Transferee Certificate to which this certification relates with
respect to the Certificates described therein:

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

         2.       In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, as amended and (ii) as marked below, the Buyer alone, or the Buyer's
Family of Investment Companies, owned at least $100,000,000 in securities (other
than the excluded securities referred to below) as of the end of the Buyer's
most recent fiscal year. For purposes of determining the amount of securities
owned by the Buyer or the Buyer's Family of Investment Companies, the cost of
such securities was used, except (i) where the Buyer or the Buyer's Family of
Investment Companies reports its securities holdings in its financial statements
on the basis of their market value, and (ii) no current information with respect
to the cost of those securities has been published. If clause (ii) in the
preceding sentence applies, the securities may be valued at market.

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

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

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

                                      L-6
<PAGE>

         4.       The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) securities issued or guaranteed by
the U.S. or any instrumentality thereof, (iii) bank deposit notes and
certificates of deposit, (iv) loan participations, (v) repurchase agreements,
(vi) securities owned but subject to a repurchase agreement and (vii) currency,
interest rate and commodity swaps.

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

         6.       Until the date of purchase of the Certificates, the
undersigned will notify the parties listed in the Rule 144A Transferee
Certificate to which this certification relates of any changes in the
information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification by the undersigned as of the date of such purchase.

                                              ---------------------------------
                                                Print Name of Buyer or Adviser

                                              By:
                                                 -------------------------------
                                              Name:
                                              Title:

                                              IF AN ADVISER:

                                              ----------------------------------
                                                     Print Name of Buyer

                                              Date:
                                                   -----------------------------

                                      L-7
<PAGE>

                                    EXHIBIT M

                               REQUEST FOR RELEASE
                                  (for Trustee)

Loan Information
----------------
         Name of Mortgagor:
                                      ------------------------------------------
         Master Servicer
         Loan No.:
                                      ------------------------------------------
Trustee
-------
         Name:
                                      ------------------------------------------
         Address:
                                      ------------------------------------------
         Trustee
         Mortgage File No.:
                                      ------------------------------------------

         The undersigned Master Servicer hereby acknowledges that it has
received from _______________________________________, as Trustee for the
Holders of Asset-Backed Certificates, Series 2004-BC4, the documents referred to
below (the "Documents"). All capitalized terms not otherwise defined in this
Request for Release shall have the meanings given them in the Pooling and
Servicing Agreement, dated as of October 1, 2004 (the "Pooling and Servicing
Agreement"), among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as
Seller, Countrywide Home Loans Servicing LP, as Master Servicer and the Trustee.

(  )     Mortgage Note dated ___________, ____, in the original principal sum
         of $________, made by __________________, payable to, or endorsed to
         the order of, the Trustee.

(  )     Mortgage recorded on _________________ as instrument no.
         ________________ in the County Recorder's Office of the County of
         ________________, State of _______________ in book/reel/docket
         _______________ of official records at page/image _____________.

(  )     Deed of Trust recorded on _________________ as instrument no.
         ________________ in the County Recorder's Office of the County of
         ________________, State of _______________ in book/reel/docket
         _______________ of official records at page/image _____________.

                                      M-1
<PAGE>

(  )     Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
         _________________ as instrument no. __________ in the County Recorder's
         Office of the County of __________, State of _______________ in
         book/reel/docket _______________ of official records at page/image
         _____________.

(  )     Other documents, including any amendments, assignments or other
         assumptions of the Mortgage Note or Mortgage.

(  )     ----------------------------------------------

(  )     ----------------------------------------------

(  )     ----------------------------------------------

(  )     ----------------------------------------------

         The undersigned Master Servicer hereby acknowledges and agrees as
follows:

                  (1)      The Master Servicer shall hold and retain possession
         of the Documents in trust for the benefit of the Trust Fund, solely for
         the purposes provided in the Agreement.

                  (2)      The Master Servicer shall not cause or knowingly
         permit the Documents to become subject to, or encumbered by, any claim,
         liens, security interest, charges, writs of attachment or other
         impositions nor shall the Master Servicer assert or seek to assert any
         claims or rights of setoff to or against the Documents or any proceeds
         thereof.

                  (3)      The Master Servicer shall return each and every
         Document previously requested from the Mortgage File to the Trustee
         when the need therefor no longer exists, unless the Mortgage Loan
         relating to the Documents has been liquidated and the proceeds thereof
         have been remitted to the Certificate Account and except as expressly
         provided in the Agreement.

                  (4)      The Documents and any proceeds thereof, including any
         proceeds of proceeds, coming into the possession or control of the
         Master Servicer shall at all times be earmarked for the account of the
         Trust Fund, and the Master Servicer shall keep the Documents and any
         proceeds separate and distinct from all other property in the Master
         Servicer's possession, custody or control.

                                              [Master Servicer]

                                              By
                                                 -------------------------------

                                              Its
                                                 -------------------------------

Date: _________________, ____

                                      M-2
<PAGE>

                                    EXHIBIT N

                               REQUEST FOR RELEASE
             [Mortgage Loans Paid in Full, Repurchased or Replaced]

                     OFFICER'S CERTIFICATE AND TRUST RECEIPT
                           ASSET-BACKED CERTIFICATES,
                                 Series 2004-BC4

__________________________________________ HEREBY CERTIFIES THAT HE/SHE IS AN
OFFICER OF THE MASTER SERVICER, HOLDING THE OFFICE SET FORTH BENEATH HIS/HER
SIGNATURE, AND HEREBY FURTHER CERTIFIES AS FOLLOWS:

WITH RESPECT TO THE MORTGAGE LOANS, AS THE TERM IS DEFINED IN THE POOLING AND
SERVICING AGREEMENT DESCRIBED IN THE ATTACHED SCHEDULE:

[ALL PAYMENTS OF PRINCIPAL AND INTEREST HAVE BEEN MADE.] [THE [PURCHASE PRICE]
[MORTGAGE LOAN REPURCHASE PRICE] FOR SUCH MORTGAGE LOANS HAS BEEN PAID.] [THE
MORTGAGE LOANS HAVE BEEN LIQUIDATED AND THE RELATED [INSURANCE PROCEEDS]
[LIQUIDATION PROCEEDS] HAVE BEEN DEPOSITED PURSUANT TO SECTION 3.13 OF THE
POOLING AND SERVICING AGREEMENT.] [A REPLACEMENT MORTGAGE LOAN HAS BEEN
DELIVERED TO THE TRUSTEE IN THE MANNER AND OTHERWISE IN ACCORDANCE WITH THE
CONDITIONS SET FORTH IN SECTIONS 2.02 AND 2.03 OF THE POOLING AND SERVICING
AGREEMENT.]

LOAN NUMBER:_______________                 BORROWER'S NAME:__________________

COUNTY:____________________

[For Substitution or Repurchase Only: The Master Servicer certifies that [an]
[no] opinion is required by Section 2.05 [and is attached hereto].]

I HEREBY CERTIFY THAT ALL AMOUNTS RECEIVED IN CONNECTION WITH SUCH PAYMENTS,
THAT ARE REQUIRED TO BE DEPOSITED IN THE CERTIFICATE ACCOUNT PURSUANT TO SECTION
3.05 OF THE POOLING AND SERVICING AGREEMENT, HAVE BEEN OR WILL BE CREDITED.

____________      _____________________       DATED:__________________

/ /      VICE PRESIDENT

                                      N-1
<PAGE>

/ /      ASSISTANT VICE PRESIDENT

                                      N-2
<PAGE>

                                                                   Exhibit O

                            Exhibit O is a photocopy
                           of the Depository Agreement
                                  as delivered.

                [see appropriate documents delivered at closing]

                                      O-1
<PAGE>

                                    EXHIBIT P

                       FORM OF MORTGAGE NOTE AND MORTGAGE

                             [Provide Upon Request]

                                      P-1
<PAGE>

                                    EXHIBIT Q

                                   [RESERVED]

                                      Q-1
<PAGE>

                                    EXHIBIT R

                              FORM OF CAP CONTRACT

DATE:             [_________], 2004

TO:               Countrywide Home Loans, Inc.
ATTENTION:        Mr. Jeff Staab/Kevin Doyle
TELEPHONE:        818-225-3279
FACSIMILE:        818-225-4099

FROM:             Derivatives Documentation
TELEPHONE:        212-272-2711
FACSIMILE:        212-272-9857

SUBJECT:          Fixed Income Derivatives Confirmation and Agreement

REFERENCE NUMBER: [________]

The purpose of this letter agreement ("Agreement") is to confirm the terms and
conditions of the Transaction entered into on the Trade Date specified below
(the "Transaction") between Bear Stearns Financial Products Inc. ("BSFP") and
Countrywide Home Loans, Inc., ("Counterparty"). This Agreement, which evidences
a complete and binding agreement between BSFP and Counterparty to enter into the
Transaction on the terms set forth below, constitutes a "Confirmation" as
referred to in the "ISDA Form Master Agreement" (as defined below), as well as a
"Schedule" as referred to in the ISDA Form Master Agreement.

1.       This Agreement is subject to and incorporates the 2000 ISDA DEFINITIONS
         (the "Definitions"), as published by the International Swaps and
         Derivatives Association, Inc. ("ISDA"). BSFP and Counterparty have
         agreed to enter into this Agreement in lieu of negotiating a Schedule
         to the 1992 ISDA Master Agreement (Multicurrency--Cross Border) form
         (the "ISDA Form Master Agreement"). An ISDA Form Master Agreement shall
         be deemed to have been executed by BSFP and Counterparty on the date we
         entered into the Transaction. All provisions contained in, or
         incorporated by reference to, the ISDA Form Master Agreement shall
         govern the Transaction referenced in this Confirmation except as
         expressly modified herein. In the event of any inconsistency between
         the provisions of this Agreement and the Definitions or the ISDA Form
         Master Agreement, this Agreement shall prevail for purposes of the
         Transaction.

2.       The terms of the particular Transaction to which this Confirmation
         relates are as follows:

                                      R-1
<PAGE>

    Type of Transaction:       Rate Cap
                               (i)   Notional Amount: With respect to
                                  any Calculation Period, the
                                  amount set forth for such period
                                  in the Schedule of Notional
                                  Amounts and Cap Rates attached
                                  hereto.

    Trade Date:                [_________], 2004

    Effective Date:            [_________], 2004

    Termination Date:          [_______________],   subject  to
                               adjustment   in  accordance   with  the
                               Business  Day Convention.

FIXED AMOUNT (PREMIUM):

    Fixed Rate Payer:          Counterparty

    Fixed Rate Payer

    Payment Date:              [_________], 2004

    Fixed Amount:              [_________]

FLOATING AMOUNTS:

    Floating Rate Payer:       BSFP

    Cap Rate I:                As set forth in the Schedule of Notional
                               Amounts and Cap Rates attached hereto.

    Floating Rate Payer
    Period End Dates           The 25th calendar day of each month during
                               the Term of this Transaction, commencing
                               [_______________] and ending on the
                               Termination Date, subject to adjustment in
                               accordance with the Business Day Convention.

    Floating Rate Payer
    Payment Dates:             Early Payment shall be applicable. One
                               Business Day preceding each Floating Rate
                               Payer Period End Date.

    Floating Amount:           To be determined in accordance with the
                               following formula:
                               Greater of (i) 100 * (Floating Rate Option -
                               Cap Rate I) *

                                      R-2
<PAGE>

                               Notional Amount * Floating Rate Day Count
                               Fraction; and (ii) zero

    Floating                   Rate Option: USD-LIBOR-BBA, provided,
                               however, that if the Floating Rate
                               determined from such Floating Rate Option
                               for any Calculation Period is greater than
                               Cap Rate II (set forth in the Schedule of
                               Notional Amounts and Cap Rates Attached
                               hereto) then the Floating Rate for such
                               Calculation Period shall be deemed equal to
                               Cap Rate II.

    Designated Maturity:       One month

    Floating Rate Day
    Count Fraction:            Actual/360

    Reset Dates:               The first day of each Calculation Period.

    Compounding:               Inapplicable

    Business Days for
    payments:                  New York and London

    Business Day Convention:   Modified Following

3.       Additional
         Provisions:           1) Each party hereto is hereby advised and
                               acknowledges that the other party has
                               engaged in (or refrained from engaging in)
                               substantial financial transactions and has
                               taken (or refrained from taking) other
                               material actions in reliance upon the entry
                               by the parties into the Transaction being
                               entered into on the terms and conditions set
                               forth herein and in the Confirmation
                               relating to such Transaction, as applicable.
                               This paragraph (1) shall be deemed repeated
                               on the trade date of each Transaction.

4.       Provisions Deemed Incorporated in a Schedule to the Master Agreement:

         1)       The parties agree that subparagraph (ii) of Section 2(c) of
the ISDA Form Master Agreement will apply to any Transaction.

         2)       TERMINATION PROVISIONS. For purposes of the Master Agreement:

         (a)      "Specified Entity" is not applicable to BSFP or Counterparty
for any purpose.

                                      R-3
<PAGE>

         (b)      "Specified Transaction" is not applicable to BSFP or
Counterparty for any purpose, and, accordingly, Section 5(a)(v) shall not apply
to BSFP or Counterparty.

         (c)      The "Cross Default" provisions of Section 5(a)(vi) will not
apply to BSFP or to Counterparty.

         (d)      The "Credit Event Upon Merger" provisions of Section 5(b)(iv)
will not apply to BSFP or to Counterparty.

         (e)      The "Automatic Early Termination" provision of Section 6(a)
will not apply to BSFP or to Counterparty.

         (f)      Payments on Early Termination. For the purpose of Section 6(e)
of this Agreement:

                  (i) Market Quotation will apply.

                  (ii) The Second Method will apply.

         (g)      "Termination Currency" means United States Dollars.

         3)       Tax Representations. Not applicable

                                      R-4
<PAGE>

         4)       LIMITATION ON EVENTS OF DEFAULT. Notwithstanding the terms of
Sections 5 and 6 of this Agreement, if at any time and so long as the
Counterparty has satisfied in full all its payment obligations under Section
2(a)(i) of this Agreement and has at the time no future payment obligations,
whether absolute or contingent, under such Section, then unless BSFP is required
pursuant to appropriate proceedings to return to the Counterparty or otherwise
returns to the Counterparty upon demand of the Counterparty any portion of any
such payment, (a) the occurrence of an event described in Section 5(a) of this
Agreement with respect to the Counterparty shall not constitute an Event of
Default or Potential Event of Default with respect to the Counterparty as
Defaulting Party and (b) BSFP shall be entitled to designate an Early
Termination Date pursuant to Section 6 of this Agreement only as a result of the
occurrence of a Termination Event set forth in either Section 5(b)(i) or
5(b)(ii) of this Agreement with respect to BSFP as the Affected Party or Section
5(b)(iii) with respect to BSFP as the Burdened Party.

         5)       DOCUMENTS TO BE DELIVERED. For the purpose of Section 4(a):

         (1)      Tax forms, documents, or certificates to be delivered are:

PARTY REQUIRED TO         FORM/DOCUMENT/                 DATE BY WHICH TO
DELIVER DOCUMENT          CERTIFICATE                    BE DELIVERED

BSFP and                  Any document required or       Promptly after the
the Counterparty          reasonably requested to        earlier of (i)
                          allow the other party to       reasonable demand by
                          make payments under this       either party or (ii)
                          Agreement without any          learning that such form
                          deduction or withholding       or document is required
                          for or on the account of
                          any Tax or with such
                          deduction or withholding
                          at a reduced rate

(2)      Other documents to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO        FORM/DOCUMENT/                  DATE BY WHICH TO              COVERED BY SECTION
DELIVER DOCUMENT         CERTIFICATE                     BE DELIVERED                  3(D) REPRESENTATION

<S>                      <C>                          <C>                           <C>
BSFP and                 Any documents required       Upon the execution and        Yes
the Counterparty         by the receiving party       delivery of this Agreement
                         to evidence the              and such Confirmation
                         authority of the
                         delivering party or its
                         Credit Support Provider,
                         if any, for it

                            R-5
<PAGE>

[TABLE CONTINUED]
<CAPTION>
<S>                      <C>                          <C>                           <C>
                         to execute and deliver
                         this Agreement, any
                         Confirmation , and any
                         Credit Support Documents
                         to which it is a party,
                         and to evidence the
                         authority of the
                         delivering party or its
                         Credit Support Provider
                         to perform its
                         obligations under this
                         Agreement, such
                         Confirmation and/or
                         Credit Support Document,
                         as the case may be

BSFP and                 A certificate of an          Upon the execution and        Yes
the Counterparty         authorized officer of        delivery of this Agreement
                         the party, as to the         and such Confirmation
                         incumbency and authority
                         of the respective
                         officers of the party
                         signing this Agreement,
                         any relevant Credit
                         Support Document, or any
                         Confirmation, as the
                         case may be
</TABLE>

6)       MISCELLANEOUS. Miscellaneous

(a)      Address for Notices: For the purposes of Section
         12(a) of this Agreement:

         Address for notices or communications to BSFP:

                  Address:     383 Madison Avenue, New York, New York  10179
                  Attention:   DPC Manager - Suite 2700
                  Facsimile:   (212) 272-5823

         with a copy to:

                            R-6
<PAGE>

                  Address:     One Metrotech Center North, Brooklyn,
                               New York 11201
                  Attention:   Derivative Operations - 7th Floor
                  Facsimile:   (212) 272-1634

                  (For all purposes)

         Address for notices or communications to the Counterparty:

                  Address:     4500 Park Granada
                               Mail Stop CH-143
                               Calabasas, CA 91302
                  Attention:   Mr. Jeff Staab
                  Facsimile:   818-225-3898
                  Phone:       818-225-3279

(b)      Process Agent. For the purpose of Section 13(c):

                         BSFP appoints as its
                         Process Agent:            Not Applicable

                         The Counterparty appoints as its
                         Process Agent:            Not Applicable

(c)      Offices. The provisions of Section 10(a) will not apply to this
         Agreement; neither BSFP nor the Counterparty have any Offices other
         than as set forth in the Notices Section and BSFP agrees that, for
         purposes of Section 6(b) of this Agreement, it shall not in future have
         any Office other than one in the United States.

(d)      Multibranch Party. For the purpose of Section 10(c) of this Agreement:

         BSFP is not a Multibranch Party.

         The Counterparty is not a Multibranch Party.

(e)      Calculation Agent. The Calculation Agent is BSFP; provided, however,
         that if an Event of Default occurs with respect to BSFP, then the
         Counterparty shall be entitled to appoint a financial institution which
         would qualify as a Reference Market-maker to act as Calculation Agent.

(f)      Credit Support Document. Not applicable for either BSFP or the
         Counterparty.

(g)      Credit Support Provider.

                                      R-7
<PAGE>

         BSFP:    Not Applicable

         The Counterparty: Not Applicable

(h)      Governing Law. The parties to this Agreement hereby agree that the law
         of the State of New York shall govern their rights and duties in whole.

(i)      Severability. If any term, provision, covenant, or condition of this
         Agreement, or the application thereof to any party or circumstance,
         shall be held to be invalid or unenforceable (in whole or in part) for
         any reason, the remaining terms, provisions, covenants, and conditions
         hereof shall continue in full force and effect as if this Agreement had
         been executed with the invalid or unenforceable portion eliminated, so
         long as this Agreement as so modified continues to express, without
         material change, the original intentions of the parties as to the
         subject matter of this Agreement and the deletion of such portion of
         this Agreement will not substantially impair the respective benefits or
         expectations of the parties.

The parties shall endeavor to engage in good faith negotiations to replace any
invalid or unenforceable term, provision, covenant or condition with a valid or
enforceable term, provision, covenant or condition, the economic effect of which
comes as close as possible to that of the invalid or unenforceable term,
provision, covenant or condition.

(j)      Consent to Recording. Each party hereto consents to the monitoring or
         recording, at any time and from time to time, by the other party of any
         and all communications between officers or employees of the parties,
         waives any further notice of such monitoring or recording, and agrees
         to notify its officers and employees of such monitoring or recording.

(k)      Waiver of Jury Trial. Each party waives any right it may have to a
         trial by jury in respect of any Proceedings relating to this Agreement
         or any Credit Support Document.

(l)      BSFP will not unreasonably withhold or delay its consent to an
         assignment of this Agreement to any other third party.

(m)      Set-off. The provisions for Set-off set forth in Section 6(e) of the
         ISDA Form Master Agreement shall not apply for purposes of this
         Transaction.

7)       "Affiliate" will have the meaning specified in Section 14 of the ISDA
Form Master Agreement, provided that BSFP shall not be deemed to have any
Affiliates for purposes of this Agreement, including for purposes of Section
6(b)(ii).

8)       Section 3 of the ISDA Form Master Agreement is hereby amended by adding
at the end thereof the following subsection (g):

                                      R-8
<PAGE>

         "(g) Relationship Between Parties.

                  Each party represents to the other party on each date
                  when it enters into a Transaction that:--

                  (1)      Nonreliance. It is not relying on any statement or
representation of the other party regarding the Transaction (whether written or
oral), other than the representations expressly made in this Agreement or the
Confirmation in respect of that Transaction.

                  (2)      Evaluation and Understanding.

                  (i)      It has the capacity to evaluate (internally or
through independent professional advice) the Transaction and has made its own
decision to enter into the Transaction; and

                  (ii)     It understands the terms, conditions and risks of the
Transaction and is willing and able to accept those terms and conditions and to
assume those risks, financially and otherwise.

                  (3)      Purpose. It is entering into the Transaction for the
purposes of managing its borrowings or investments, hedging its underlying
assets or liabilities or in connection with a line of business.

                  (4)      Principal. It is entering into the Transaction as
principal, and not as agent or in any other capacity, fiduciary or otherwise."

         NEITHER THE BEAR STEARNS COMPANIES INC. NOR ANY SUBSIDIARY OR AFFILIATE
         OF THE BEAR STEARNS COMPANIES INC. OTHER THAN BSFP IS AN OBLIGOR OR A
         CREDIT SUPPORT PROVIDER ON THIS AGREEMENT.

5.     Account Details and
       Settlement Information:      PAYMENTS TO BSFP:
                                    Citibank, N.A., New York ABA
                                    Number: 021-0000-89, for the
                                    account of Bear, Stearns
                                    Securities Corp. Account Number:
                                    0925-3186, for further credit to
                                    Bear Stearns Financial Products
                                    Inc. Sub-account Number:
                                    102-04654-1-3 Attention:
                                    Derivatives Department

                                    PAYMENTS TO COUNTERPARTY:
                                    Please provide

                            R-9
<PAGE>

This Agreement may be executed in several counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.

Counterparty hereby agrees to check this Confirmation and to confirm that the
foregoing correctly sets forth the terms of the Transaction by signing in the
space provided below and returning to BSFP a facsimile of the fully-executed
Confirmation to 212-272-9857. For inquiries regarding U.S. Transactions, please
contact SUSAN DONLON by telephone at 212-272-2364. For all other inquiries
please contact DERIVATIVE DOCUMENTATION by telephone at 353-1-402-6233 Originals
will be provided for your execution upon your request.

We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

Very truly yours,

BEAR STEARNS FINANCIAL PRODUCTS INC.

By:
    ---------------------------
    Name:
    Title:

Counterparty, acting through its duly authorized signatory, hereby agrees to,
accepts and confirms the terms of the foregoing as of the Trade Date.

COUNTRYWIDE HOME LOANS, INC.

By:
    ---------------------------
    As authorized agent or officer for Countrywide Home Loans, Inc.
    Name:
    Title:

                                      R-10
<PAGE>

                                    EXHIBIT S

                           FORM OF NOVATION AGREEMENT

                       dated as of [________, 200_] among:

                       [_______] (the "REMAINING PARTY"),

                          [_______] (the "TRANSFEROR")

                                       AND

    The [_______], not in its individual capacity, but solely as trustee for
  [_______] (the "TRANSFEREE") pursuant to a Pooling and Servicing Agreement,
   dated and effective as of [_______, 200_], among [_______], as Depositor,
            [_______], as seller (the "Seller"), [_______], as master
  servicer, and [_______], as trustee (the "POOLING AND SERVICING AGREEMENT").

The Transferor and the Remaining Party have entered into one or more
Transactions as identified in the attached Annex (each an "OLD TRANSACTION"),
each evidenced by a Confirmation (an "OLD CONFIRMATION") attached hereto,
subject to a 1992 ISDA Master Agreement (as defined below) dated as of [_______]
(the "OLD AGREEMENT").

With effect from and including [_______, 200_] (the "NOVATION DATE"), the
Transferor wishes to transfer by novation to the Transferee, and the Transferee
wishes to accept the transfer by novation of, all the rights, liabilities,
duties and obligations of the Transferor under and in respect of each Old
Transaction, with the effect that the Remaining Party and the Transferee enter
into a new transaction (each a "NEW TRANSACTION") between them having terms
identical to those of each Old Transaction, as more particularly described
below, but with the modifications provided for herein.

The Remaining Party wishes to accept the Transferee as its sole counterparty
with respect to the New Transactions.

The Transferor and the Remaining Party wish to have released and discharged, as
a result and to the extent of the transfer described above, their respective
obligations under and in respect of the Old Transactions.

Accordingly, the parties agree as follows: ---

1.       DEFINITIONS.

Terms defined in the ISDA Master Agreement (Multicurrency-Cross Border) as
published in 1992 by the International Swaps and Derivatives Association, Inc.,
(the "1992 ISDA MASTER AGREEMENT") are used herein as so defined, unless
otherwise provided herein.

2.       TRANSFER, RELEASE, DISCHARGE AND UNDERTAKINGS.

With effect from and including the Novation Date and in consideration of the
mutual representations, warranties and covenants contained in this Novation
Agreement and other good and valuable consideration (the receipt and sufficiency
of which are hereby acknowledged by each of the parties):

         (a)      the Remaining Party and the Transferor are each released and
                  discharged from further obligations to each other with respect
                  to each Old Transaction and their respective rights against
                  each other thereunder are cancelled, provided that such
                  release and discharge shall not affect any rights, liabilities
                  or obligations of the Remaining Party or the Transferor with
                  respect to payments or other obligations due and payable or
                  due to be performed on or prior to the Novation Date, and all
                  such payments and obligations shall be paid or performed by
                  the Remaining Party or the Transferor in accordance with

                                      S-1
<PAGE>

                  the terms of the Old Transactions; provided further, for the
                  avoidance of doubt, the Transferee shall not be liable with
                  respect to payments or other obligations due and payable or
                  due to be performed under the Old Transactions on or prior to
                  the Novation Date.

         (b)      in respect of each New Transaction, the Transferee (pursuant
                  to the Pooling and Servicing Agreement) and the Remaining
                  Party each undertake duties and obligations towards the other
                  and acquire rights against each other identical in their terms
                  to each corresponding Old Transaction (and, for the avoidance
                  of doubt, as if the Transferee were the Transferor and with
                  the Remaining Party remaining the Remaining Party, save for
                  any rights, liabilities or obligations of the Remaining Party
                  or the Transferor with respect to payments or other
                  obligations due and payable or due to be performed on or prior
                  to the Novation Date); and

         (c)      each New Transaction shall be governed by and form part of an
                  agreement in the form of a 1992 ISDA Master Agreement between
                  the Remaining Party and Transferee as if the parties had
                  executed on [_______, 2004_], a 1992 ISDA Master Agreement
                  (but without any Schedule except for (i) the election of the
                  laws of the State of New York (without reference to choice of
                  law doctrine) as the governing law and USD as Termination
                  Currency and (ii) the items specified in Section 10 below (the
                  "NEW AGREEMENT")), and the relevant Old Confirmation, as
                  amended pursuant to this Novation Agreement, shall be deemed
                  to be a Confirmation between the Remaining Party and the
                  Transferee.

3.       REPRESENTATIONS AND WARRANTIES.

         (a)      On the date of this Novation Agreement:

                  (i)      Each of the parties makes to each of the other
                           parties those representations and warranties set
                           forth in Section 3(a) of the 1992 ISDA Master
                           Agreement with references in such Section to "this
                           Agreement" or "any Credit Support Document" being
                           deemed references to this Novation Agreement alone.

                  (ii)     The Remaining Party and the Transferor each makes to
                           the other and the Remaining Party and the Transferee
                           each makes to the other the representation set forth
                           in Section 3(b) of the 1992 ISDA Master Agreement, in
                           the former case with respect to the Old Agreement,
                           and in the latter case with respect to the New
                           Agreement and taking into account the parties
                           entering into and performing their obligations under
                           this Novation Agreement.

                  (iii)    Each of the Transferor and the Remaining Party
                           represents and warrants to each other and to the
                           Transferee that :

                           (A)      it has made no prior transfer (whether by
                                    way of security or otherwise) of the Old
                                    Agreement or any interest or obligation in
                                    or under the Old Agreement or in respect of
                                    any Old Transaction; and

                           (B)      as of the Novation Date, all obligations of
                                    the Transferor and the Remaining Party under
                                    each Old Transaction required to be
                                    performed on or before the Novation Date
                                    have been fulfilled.

         (b)      Subject to its obligations under the Pooling and Servicing
                  Agreement, the Transferor makes no representation or warranty
                  and does not assume any responsibility with respect to the
                  legality, validity, effectiveness, adequacy or enforceability
                  of any New Transaction or the New Agreement or any documents
                  relating thereto and assumes no responsibility for the
                  condition, financial or otherwise, of the Remaining Party, the
                  Transferee or any other person or for the performance and
                  observance by the Remaining Party, the Transferee or any other
                  person of any of its obligations under any New Transaction or
                  the New Agreement or any document relating thereto and any and
                  all such conditions and warranties, whether express or implied
                  by law or otherwise, are hereby excluded.

                                      S-2
<PAGE>

4.       COUNTERPARTS.

This Novation Agreement (and each amendment, modification and waiver in respect
of it) may be executed and delivered in counterparts (including by facsimile
transmission), each of which will be deemed an original.

5.       COSTS AND EXPENSES.

The parties will each pay their own costs and expenses (including legal fees)
incurred in connection with this Novation Agreement and as a result of the
negotiation, preparation and execution of this Novation Agreement.

6.       AMENDMENTS.

No amendment, modification or waiver in respect of this Novation Agreement will
be effective unless in writing (including a writing evidenced by a facsimile
transmission) and executed by each of the parties or confirmed by an exchange of
telexes or electronic messages on an electronic messaging system.

7.       GOVERNING LAW; JURISDICTION.

This Novation Agreement will be governed by and construed in accordance with the
laws of the State of New York without reference to the conflict of laws
provisions thereof.

The terms of Section 13(b) of the 1992 ISDA Master Agreement shall apply to this
Novation Agreement with references in such Section to "this Agreement" being
deemed references to this Novation Agreement alone.

8.       NOTICES.

For the purposes of this Novation Agreement and Section 12(a) of the New
Agreement, the addresses for notices or communications are as follows: (i) in
the case of Transferor, as specified in the Old Confirmations, or such other
address as may be hereafter furnished in writing to Transferee and Remaining
Party; (ii) in the case of Transferee, [_______], or such other address as may
be hereafter furnished in writing to Transferor and Remaining Party; and (iii)
in the case of Remaining Party, as specified in the Old Confirmations, or such
other address as may be hereafter furnished in writing to Transferor and
Transferee.

9.       PAYMENTS.

Any payments remitted by Remaining Party under the New Transaction shall be made
by wire transfer according to the following instructions:

                         [-------]

10.      PROVISIONS DEEMED INCORPORATED INTO THE NEW AGREEMENT.

         (a)      Limitation on Events of Default. Notwithstanding the terms of
                  Sections 5 and 6 of the New Agreement, if at any time and so
                  long as the Transferee has satisfied in full all its payment
                  obligations under Section 2(a)(i) of the New Agreement and has
                  at the time no future payment obligations, whether absolute or
                  contingent, under such Section, then unless Remaining Party is
                  required pursuant to appropriate proceedings to return to the
                  Transferee or otherwise returns to the Transferee upon demand
                  of the Transferee any portion of any such payment: (i) the
                  occurrence of an event described in Section 5(a) (other than
                  Sections 5(a)(vii)(1), 5(a)(vii)(3), 5(a)(vii)(4),
                  5(a)(vii)(5), 5(a)(vii)(6), 5(a)(vii)(7) or 5(a)(vii)(8)) of
                  the New Agreement with respect to the Transferee shall not
                  constitute an Event of Default or Potential Event of Default
                  with respect to the Transferee as Defaulting Party; and (ii)
                  Remaining Party shall be entitled to designate an Early
                  Termination Date pursuant to Section 6 of the New Agreement
                  only as a result of the occurrence of a Termination Event set
                  forth in either Section 5(b)(i) or 5(b)(ii) of the New
                  Agreement with respect to Remaining Party as the Affected
                  Party or Section 5(b)(iii) of the New Agreement with respect
                  to Remaining Party as the Burdened Party.

                                      S-3
<PAGE>

         (b)      Non-Petition. Remaining Party hereby irrevocably and
                  unconditionally agrees that it will not institute against, or
                  join any other person in instituting against, the Transferee,
                  any bankruptcy, reorganization, arrangement, insolvency, or
                  similar proceeding under the laws of the United States or any
                  other jurisdiction for the non-payment of any amount due
                  hereunder or any other reason until the payment in full of the
                  Certificates (as defined in the Pooling and Servicing
                  Agreement) and the expiration of a period of one year plus one
                  day (or, if longer, the applicable preference period)
                  following such payment. Nothing herein shall prevent Remaining
                  Party from participating in any such proceeding once
                  commenced.

         (c)      Additional Provisions. Notwithstanding the terms of Sections 5
                  and 6 of the New Agreement, the provisions of Sections
                  5(a)(ii), 5(a)(iii), 5(a)(iv), 5(a)(v), 5(a)(vi) and 5(b)(iv)
                  shall not apply to Remaining Party or the Transferee.

         (d)      No Set-off. Notwithstanding any provision of this Novation
                  Agreement or any other existing or future agreement, each
                  party irrevocably waives any and all rights it may have to set
                  off, net, recoup or otherwise withhold or suspend or condition
                  payment or performance of any obligation between it and the
                  other party hereunder against any obligation between it and
                  the other party under any other agreements. The provisions for
                  Set-off set forth in Section 6(e) of the New Agreement shall
                  not apply for purposes of the New Transactions.

         (e)      Section 3 of the New Agreement is hereby amended by adding at
                  the end thereof the following subsection (g):

                  "(g)     Relationship Between Parties.

                           Each of Transferor, Transferee and Remaining Party
                           represents to the other on each date when it enters
                           into a Transaction that:

                           (1)      Nonreliance. Each party represents to the
                                    other party (which representation will be
                                    deemed to be repeated by each party on each
                                    date on which a Transaction is entered into
                                    or amended, extended or otherwise modified)
                                    that it is acting for its own account, and
                                    has made its own independent decisions to
                                    enter into the New Agreement and any
                                    Transaction thereunder and as to whether the
                                    New Agreement and any Transaction thereunder
                                    is appropriate or proper for it based on its
                                    own judgment and upon advice from such
                                    advisors as it has deemed necessary. It is
                                    not relying on any communication (written or
                                    oral) of the other party as investment
                                    advice or as a recommendation to enter into
                                    the New Agreement or any Transaction
                                    thereunder, it being understood that
                                    information and explanations related to the
                                    terms and conditions of the New Agreement
                                    and any Transaction thereunder shall not be
                                    considered investment advice or a
                                    recommendation to enter into the New
                                    Agreement or any Transaction thereunder. No
                                    communication (written or oral) received
                                    from the other party shall be deemed to be
                                    an assurance or guarantee as to the expected
                                    results of any Transaction thereunder.

                           (2)      Purpose. Remaining Party is entering into
                                    the New Transactions for the purposes of
                                    managing its borrowings or investments,
                                    hedging its underlying assets or liabilities
                                    or in connection with a line of business
                                    (including financial intermediation
                                    services) or the financing of its business.
                                    The Transferee is entering into the New
                                    Transactions pursuant to the Pooling and
                                    Servicing Agreement.

                           (3)      Principal. The other party is not acting as
                                    an agent, fiduciary or advisor for it in
                                    respect of the New Transactions.

                           (4)      Eligible Contract Participant. It
                                    constitutes an "eligible contract
                                    participant" as such term is defined in
                                    Section 1(a)(12) of the Commodity Exchange
                                    Act, as amended."

                                      S-4
<PAGE>

                           (5)      Evaluation and Understanding. Each party
                                    represents to the other party (which
                                    representation will be deemed to be repeated
                                    by each party on each date on which a
                                    Transaction is entered into or amended,
                                    extended or otherwise modified) that it is
                                    capable of evaluating and understanding (on
                                    its own behalf or through independent
                                    professional advice), and understands and
                                    accepts, the terms, conditions and risks of
                                    that Transaction. It is also capable of
                                    assuming, and assumes, the financial and
                                    other risks of that Transaction.

         (f)      Substitution Event. If at any time the long-term senior
                  unsecured deposit ratings of Remaining Party shall be rated
                  below "BBB+" by Standard & Poor's Ratings Service, below
                  "Baa1" by Moody's Investors Service, Inc. and below "BBB+" by
                  Fitch, Inc., and within ten (10) Local Business Days following
                  the publication date(s) of such ratings, Remaining Party,
                  using its good faith efforts, fails to find an entity
                  acceptable to the Transferee, as directed in writing by the
                  Master Servicer, which acceptance shall not be unreasonably
                  withheld or delayed, to whom all of Remaining Party's
                  interests and obligations under this Agreement shall be
                  assigned at no cost to the Transferee, and following which
                  Remaining Party shall be released from all further obligations
                  under this Agreement, then, at the option of the Transferee,
                  such failure shall constitute an Additional Termination Event
                  with Remaining Party as the Affected Party.

         (g)      Amendment. Section 9(b) of the New Agreement is hereby amended
                  by adding the following at the end of such Section: "No
                  transfer, supplement, assignment, amendment, modification or
                  waiver in respect of the New Agreement will be effective
                  without the prior written consent of Standard & Poor's Ratings
                  Group, Moody's Investors Service, Inc. and Fitch, Inc."

         (h)      Consent to Recording. The parties agree that each may tape
                  (and/or electronically) record all telephonic conversations
                  between marketing and trading personnel in connection herewith
                  and/or the New Agreement (and/or any Transaction thereunder)
                  and that any such recordings may be submitted in evidence in
                  any proceedings relating hereto and/or the New Agreement
                  (and/or any Transaction).

         (i)      Waiver of Jury Trial. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
                  AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL
                  PROCEEDING ARISING OUT OF OR RELATING TO THE NEW AGREEMENT OR
                  ANY TRANSACTION CONTEMPLATED THEREUNDER.

         (j)      Multibranch Party. For purpose of Section 10 of the New
                  Agreement: (i) Remaining Party is a Multibranch Party, and may
                  act through its Charlotte, North Carolina, Chicago, Illinois,
                  San Francisco, California, New York, New York or London,
                  England Office or such other Office as may be agreed to by the
                  parties in connection with a Transaction; and (ii) Transferee
                  is not a Multibranch Party.

         (k)      Amendments to Old Confirmations.

                  (i)      The term "Floating Amount I" on page two of each Old
                           Confirmation is amended by deleting "I".

                  (ii)     The term "Cap Rate I" on page two and Schedule B of
                           each Old Confirmation is amended by deleting "I".

                  (iii)    The definition of "Floating Rate Option" on page two
                           of each Old Confirmation under the caption "Floating
                           Amount" is amended by inserting at the end of
                           "USD-LIBOR-BBA" the following:

                           "provided, however, that if USD-LIBOR-BBA for any
                           Calculation Period is greater than the Ceiling Rate
                           (as set forth in Schedule B attached hereto) then the
                           USD-LIBOR-BBA for such Calculation Period shall be
                           deemed to be the Ceiling Rate"

                                      S-5
<PAGE>

                  (iv)     The term "Floating Amount II" and all terms related
                           to the term "Floating Amount II" (not including
                           Calculation Agent) are deleted in their entirety from
                           each Old Confirmation.

                  (v)      The term "Cap Rate II" on Schedule B of each Old
                           Confirmation is amended by deleting it in its
                           entirety and inserting in its place "Ceiling Rate."

         (l)      Consent and Acknowledgment of Remaining Party. Remaining Party
                  hereby consents to the assignment and delegation by Transferor
                  to Transferee of all of Transferor's rights, duties, and
                  obligations under the Old Transactions pursuant to this
                  Novation Agreement. In addition, Remaining Party hereby
                  acknowledges that the responsibilities of Transferee under the
                  New Transactions will be performed on its behalf by [_______],
                  as master servicer under the Pooling and Servicing Agreement.

         (m)      Limitation on Liability. Transferee and Remaining Party agree
                  that the sole recourse in respect of the obligations of
                  Transferee under each New Transaction shall be to the Trust
                  Fund (as defined in the Pooling and Servicing Agreement).
                  Transferor and Remaining Party agree that: (i) Transferee is
                  entering into this Novation Agreement solely in its capacity
                  as trustee under the Pooling and Servicing Agreement (and not
                  in its individual capacity); and (ii) in no case shall
                  Transferee (or any person acting as successor trustee under
                  the Pooling and Servicing Agreement), be personally liable for
                  or on account of any of the statements, representations,
                  warranties, covenants or obligations stated to be those of
                  Transferee under the terms of each New Transaction, all such
                  liability, if any, being expressly waived by Transferor and
                  Remaining Party and any person claiming by, through or under
                  either such party. Transferor hereby agrees to indemnify and
                  hold harmless the Trustee with respect to any and all claims
                  under the Old Transactions.

                  Notwithstanding the foregoing (or anything to the contrary in
                  this Novation Agreement), [_______] shall be liable for its
                  own negligence, willful misconduct, bad faith and/or fraud.

                                      S-6
<PAGE>

         IN WITNESS WHEREOF the parties have executed this Novation Agreement on
the respective dates specified below with effect from and including the Novation
Date.

[-------]                                     [-------]

By:  ..........................               By: ..............................
     Name:                                        Name:
     Title:                                       Title:
     Date: _________, 2004                        Date: _________, 2004

The [_______], not in its individual capacity, but solely as trustee for
[_______].

By:  ..........................
     Name:
     Title:
     Date:

                                      S-7
<PAGE>

                                      ANNEX

                  Transactions between [_______] and [_______]

             Trade Date [_______],[_______] Reference No. [_______]
             Trade Date [_______],[_______] Reference No. [_______]
             Trade Date [_______],[_______] Reference No. [_______]

                                      S-8
<PAGE>

                                OLD CONFIRMATIONS

                                      S-9
<PAGE>

                                    EXHIBIT T

                OFFICER'S CERTIFICATE WITH RESPECT TO PREPAYMENTS

                           ASSET-BACKED CERTIFICATES,
                                 Series 2004-BC4

                                     [Date]

Via Facsimile

The Bank of New York,
       as Trustee
101 Barclay St., 8W
New York, New York  10286

Dear Sir or Madam:

         Reference is made to the Pooling and Servicing Agreement, dated as of
October 1, 2004, (the "Pooling and Servicing Agreement") among CWABS, Inc., as
Depositor, Countrywide Home Loans, Inc., as Seller, Countrywide Home Loans
Servicing LP, as Master Servicer and The Bank of New York, as Trustee.
Capitalized terms used herein shall have the meanings ascribed to such terms in
the Pooling and Servicing Agreement.

         __________________ hereby certifies that he/she is a Servicing Officer,
holding the office set forth beneath his/her name and hereby further certifies
as follows:

         With respect to the Distribution Date in _________ 20[ ] and each
Mortgage Loan set forth in the attached schedule:

         1. A Principal Prepayment in full or in part was received during the
related Prepayment Period;

         2. Any Prepayment Charge due under the terms of the Mortgage Note with
respect to such Principal Prepayment was or was not, as indicated on the
attached schedule using "Yes" or "No", received from the Mortgagor and deposited
in the Certificate Account;

         3. As to each Mortgage Loan set forth on the attached schedule for
which all or part of the Prepayment Charge required in connection with the
Principal Prepayment was waived by the Master Servicer, such waiver was, as
indicated on the attached schedule, based upon:

                  (i) the Master Servicer's determination that such waiver would
         maximize recovery of Liquidation Proceeds for such Mortgage Loan,
         taking into account the value of such Prepayment Charge, or

                                      T-1
<PAGE>

                  (ii)(A) the enforceability thereof is limited (1) by
         bankruptcy, insolvency, moratorium, receivership, or other similar law
         relating to creditors' rights generally or (2) due to acceleration in
         connection with a foreclosure or other involuntary payment, or (B) the
         enforceability is otherwise limited or prohibited by applicable law;
         and

         4. We certify that all amounts due in connection with the waiver of a
Prepayment Charge inconsistent with clause 3 above which are required to be
deposited by the Servicer pursuant to Section 3.20 of the Pooling and Servicing
Agreement, have been or will be so deposited.

                                              COUNTRYWIDE HOME LOANS
                                                SERVICING LP,
                                                as Master Servicer

                                              By:  COUNTRYWIDE GP, INC.

                                              By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                      T-2
<PAGE>

         SCHEDULE OF MORTGAGE LOANS FOR WHICH A PREPAYMENT WAS RECEIVED
                      DURING THE RELATED PREPAYMENT PERIOD

-----------------------------------------------------------------------
LOAN NUMBER             CLAUSE 2:  YES/NO        CLAUSE 3:  (I) OR (II)
-----------------------------------------------------------------------

---------------------   ----------------------   ----------------------
---------------------   ----------------------   ----------------------
---------------------   ----------------------   ----------------------
---------------------   ----------------------   ----------------------
---------------------   ----------------------   ----------------------

-----------------------------------------------------------------------

                                      T-3
<PAGE>

         APPENDIX U: Standard & Poor's Predatory Lending Categorization

         Standard & Poor's has categorized loans governed by anti-predatory
lending laws in the Jurisdictions listed below into three categories based upon
a combination of factors that include (a) the risk exposure associated with the
assignee liability and (b) the tests and thresholds set forth in those laws.
Note that certain loans classified by the relevant statute as Covered are
included in Standard & Poor's High Cost Loan Category because they included
thresholds and tests that are typical of what is generally considered High Cost
by the industry.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                           STANDARD & POOR'S HIGH-COST LOAN CATEGORIZATION
------------------------------------------------------------------------------------------------------------------------
STATE/JURISDICTION                                    CATEGORY UNDER APPLICABLE ANTI-PREDATORY LENDING LAW
----------------------------------------------------- ------------------------------------------------------------------
<S>                                                   <C>
Arkansas                                              High Cost Home Loan
Cleveland Heights, Ohio                               Covered Loan
Colorado                                              Covered Loan
Connecticut                                           High Cost Home Loan
District of Columbia                                  Covered Loan
Florida                                               High Cost Home Loan
Georgia (Oct. 1, 2002 - March 6, 2003)                High Cost Home Loan
Georgia as amended (March 7, 2003 - current)          High Cost Home Loan
HOEPA Section 32                                      High Cost Loan
Illinois                                              High Risk Home Loan
Kansas                                                High Loan-to-Value Consumer Loans and High APR Consumer Loans
Kentucky                                              High Cost Home Loan
Los Angeles, Calif.                                   High Cost Refinance Home Loan
Maine                                                 High Rate High Fee Mortgage
Massachusetts                                         High Cost Home Loan
Nevada                                                Home Loan
New Jersey                                            High Cost Home Loan
New York                                              High Cost Home Loan
New Mexico                                            High Cost Home Loan
North Carolina                                        High Cost Home Loan
Oakland, Calif.                                       High Cost Home Loan
Ohio                                                  Covered Loan
Oklahoma                                              Subsection 10 Mortgage
South Carolina                                        High Cost Home Loan
West Virginia                                         West Virginia Mortgage Loan Act Loan
------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                             STANDARD & POOR'S COVERED LOAN CATEGORIZATION
------------------------------------------------------------------------------------------------------------------------
STATE/JURISDICTION                                    CATEGORY UNDER APPLICABLE ANTI-PREDATORY LENDING LAW
----------------------------------------------------- -------------------------------------------------------------------
<S>                                                   <C>
Georgia (Oct. 1, 2002-March 6, 2003)                  Covered Loan
New Jersey                                            Covered Home Loan
------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      U-1
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                                   STANDARD & POOR'S HOME LOAN CATEGORIZATION
------------------------------------------------------------------------------------------------------------------------
STATE/JURISDICTION                                    CATEGORY UNDER APPLICABLE ANTI-PREDATORY LENDING LAW
----------------------------------------------------- -------------------------------------------------------------------
<S>                                                   <C>
Georgia (Oct. 1, 2002-March 6, 2003)                  Home Loan
New Jersey                                            Home Loan
New Mexico                                            Home Loan
North Carolina                                        Consumer Home Loan
Oakland, Calif.                                       Home Loan
South Carolina                                        Consumer Home Loan
------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      U-2MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                    Depositor

                     WELLS FARGO BANK, NATIONAL ASSOCIATION
                  Master Servicer and Securities Administrator

                                       and

                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                                     Trustee

                         POOLING AND SERVICING AGREEMENT

                           Dated as of October 1, 2004

                        ---------------------------------

             Mortgage Pass-Through Certificates, MLMI Series 2004-A4

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
                                                     ARTICLE I
                                                    DEFINITIONS
<S>                                                                                                              <C>
Section 1.01         Accounting..................................................................................31

                                                     ARTICLE II
                                           CONVEYANCE OF MORTGAGE LOANS;
                                         ORIGINAL ISSUANCE OF CERTIFICATES

Section 2.01         Conveyance of Mortgage Loans to Trustee.....................................................32
Section 2.02         Acceptance of Mortgage Loans by Trustee.....................................................35
Section 2.03         Assignment of Interest in the Assignment, Assumption and Recognition Agreement..............38
Section 2.04         Substitution of Mortgage Loans..............................................................38
Section 2.05         Issuance of Certificates....................................................................40
Section 2.06         Representations and Warranties Concerning the Depositor.....................................40

                                                    ARTICLE III
                                   ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

Section 3.01         Master Servicer.............................................................................42
Section 3.02         REMIC-Related Covenants.....................................................................43
Section 3.03         Monitoring of Servicer......................................................................43
Section 3.04         Fidelity Bond...............................................................................44
Section 3.05         Power to Act; Procedures....................................................................44
Section 3.06         Due-on-Sale Clauses; Assumption Agreements..................................................45
Section 3.07         Release of Mortgage Files...................................................................45
Section 3.08         Documents, Records and Funds in Possession of Master Servicer To Be Held for Trustee........46
Section 3.09         Standard Hazard Insurance and Flood Insurance Policies......................................47
Section 3.10         Presentment of Claims and Collection of Proceeds............................................47
Section 3.11         Maintenance of the Primary Mortgage Insurance Policies......................................47
Section 3.12         Trustee to Retain Possession of Certain Insurance Policies and Documents....................48
Section 3.13         Realization Upon Defaulted Mortgage Loans...................................................48
Section 3.14         Compensation for the Master Servicer........................................................48
Section 3.15         REO Property................................................................................49
Section 3.16         Annual Officer's Certificate as to Compliance...............................................49
Section 3.17         Annual Independent Accountant's Servicing Report............................................50
Section 3.18         Reports Filed with Securities and Exchange Commission.......................................50
</TABLE>

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<TABLE>
<S>                                                                                                              <C>
                                                     ARTICLE IV
                                                      ACCOUNTS

Section 4.01         Protected Accounts..........................................................................53
Section 4.02         Master Servicer Collection Account..........................................................54
Section 4.03         Permitted Withdrawals and Transfers from the Master Servicer Collection Account.............55
Section 4.04         Distribution Account........................................................................56
Section 4.05         Permitted Withdrawals and Transfers from the Distribution Account...........................56

                                                     ARTICLE V
                                                    CERTIFICATES

Section 5.01         The Certificates............................................................................59
Section 5.02         Registration of Transfer and Exchange of Certificates.......................................59
Section 5.03         Mutilated, Destroyed, Lost or Stolen Certificates...........................................65
Section 5.04         Persons Deemed Owners.......................................................................65

                                                     ARTICLE VI
                                           Payments to Certificateholders

Section 6.01         Distributions on the Certificates...........................................................67
Section 6.02         Allocation of Losses........................................................................68
Section 6.03         Payments....................................................................................69
Section 6.04         Statements to Certificateholders............................................................70
Section 6.05         Monthly Advances............................................................................72
Section 6.06         Distributions and Losses to REMIC I Regular Interests.......................................72

                                                    ARTICLE VII
                                       THE MASTER SERVICER AND THE DEPOSITOR

Section 7.01         Liabilities of the Master Servicer..........................................................73
Section 7.02         Merger or Consolidation of the Master Servicer..............................................73
Section 7.03         Indemnification of the Trustee, the Master Servicer and the Securities Administrator........73
Section 7.04         Limitations on Liability of the Master Servicer and Others..................................73
Section 7.05         Master Servicer Not to Resign...............................................................75
Section 7.06         Successor Master Servicer...................................................................75
Section 7.07         Sale and Assignment of Master Servicing.....................................................75

                                                    ARTICLE VIII
                                                      DEFAULT

Section 8.01         Events of Default...........................................................................76
Section 8.02         Trustee to Act; Appointment of Successor....................................................77
Section 8.03         Notification to Certificateholders..........................................................78
Section 8.04         Waiver of Defaults..........................................................................78
Section 8.05         List of Certificateholders..................................................................79
</TABLE>

                                       -ii-
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<TABLE>
<S>                                                                                                              <C>
                                                     ARTICLE IX
                              CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

Section 9.01         Duties of Trustee...........................................................................80
Section 9.02         Certain Matters Affecting the Trustee and the Securities Administrator......................82
Section 9.03         Trustee and Securities Administrator Not Liable for Certificates or Mortgage Loans..........83
Section 9.04         Trustee and Securities Administrator May Own Certificates...................................84
Section 9.05         Trustee's and Securities Administrator's Fees and Expenses..................................84
Section 9.06         Eligibility Requirements for Trustee and Securities Administrator...........................85
Section 9.07         Insurance...................................................................................85
Section 9.08         Resignation and Removal of the Trustee and Securities Administrator.........................86
Section 9.09         Successor Trustee and Successor Securities Administrator....................................86
Section 9.10         Merger or Consolidation of Trustee or Securities Administrator..............................87
Section 9.11         Appointment of Co-Trustee or Separate Trustee...............................................87
Section 9.12         Federal Information Returns and Reports to Certificateholders; REMIC Administration.........88

                                                     ARTICLE X
                                                    TERMINATION

Section 10.01        Termination Upon Repurchase by the Depositor or its Designee or Liquidation of the Mortgage Loans.
                     91
Section 10.02        Additional Termination Requirements.........................................................91

                                                     ARTICLE XI
                                              MISCELLANEOUS PROVISIONS

Section 11.01        Intent of Parties...........................................................................94
Section 11.02        Amendment...................................................................................94
Section 11.03        Recordation of Agreement....................................................................95
Section 11.04        Limitation on Rights of Certificateholders..................................................95
Section 11.05        Acts of Certificateholders..................................................................96
Section 11.06        Governing Law...............................................................................97
Section 11.07        Notices.....................................................................................97
Section 11.08        Severability of Provisions..................................................................97
Section 11.09        Successors and Assigns......................................................................98
Section 11.10        Article and Section Headings................................................................98
Section 11.11        Counterparts................................................................................98
Section 11.12        Notice to Rating Agencies...................................................................98
</TABLE>

                                        -iii-
<PAGE>

                                    EXHIBITS

Exhibit A-1       -    Form of Class A and Class M Certificates
Exhibit A-2       -    Form of Class B Certificates
Exhibit A-3       -    Form of Class R Certificates
Exhibit B         -    Mortgage Loan Schedule
Exhibit C         -    [Reserved]
Exhibit D         -    Request for Release of Documents
Exhibit E-1       -    Form of Transfer Affidavit pursuant to Section 860E(e)(4)
Exhibit E-2       -    Form of Transferor Certificate
Exhibit F-1       -    Form of Transferor Representation Letter
Exhibit F-2       -    Form of Investor Representation Letter
Exhibit F-3       -    Form of Rule 144A Letter
Exhibit G         -    Form of Custodial Agreement
Exhibit H-1       -    Servicing Agreement
Exhibit I         -    Assignment, Assumption and Recognition Agreement
Exhibit J         -    [Reserved]
Exhibit K         -    Form Certification to Be Provided by the Master Servicer
                       With Form 10-K

                                       iv
<PAGE>

                         POOLING AND SERVICING AGREEMENT

            This Pooling and Servicing Agreement is dated as of October 1, 2004
(the "Agreement"), among MERRILL LYNCH MORTGAGE INVESTORS, INC., as depositor
(the "Depositor"), WELLS FARGO BANK, NATIONAL ASSOCIATION, as master servicer
(in such capacity, the "Master Servicer") and as securities administrator (in
such capacity, the "Securities Administrator") and WACHOVIA BANK, NATIONAL
ASSOCIATION, as trustee (the "Trustee").

                              PRELIMINARY STATEMENT

            The Depositor intends to sell mortgage pass-through certificates
(collectively, the "Certificates"), to be issued hereunder in multiple classes,
which in the aggregate will evidence the entire beneficial ownership interest in
the Mortgage Loans (as defined herein). As provided herein, the Trustee will
make, in accordance with Section 9.12, an election to treat the entire
segregated pool of assets described in the definition of REMIC Trust (as defined
herein), and subject to this Agreement, as a real estate mortgage investment
conduit (a "REMIC") for federal income tax purposes. The Class A-1, Class A-2,
Class A-3, Class M-1, Class M-2, Class M-3, Class B-1, Class B-2 and Class B-3
Certificates will be "regular interests" in the REMIC Trust, and the Class R
Certificates will be the sole class of "residual interests" therein for purposes
of the REMIC Provisions (as defined herein) under federal income tax law.

            The following table sets forth (or describes) the Class designation,
the initial Pass-Through Rate, Original Class Certificate Balance, and the
Assumed Final Maturity Date for each Class of Certificates comprising the
interests in the Trust Fund created hereunder:

<TABLE>
<CAPTION>
                                         Original
                                    Class Certificate                                          Assumed Final
            Class                       Balance(1)           Initial Pass-Through Rate        Maturity Dates
    -----------------------     -------------------------   --------------------------     ----------------------
<S>                                <C>                              <C>                       <C>
             A-1                   $    274,148,000.00              Variable(2)               August 25, 2034
             A-2                   $    204,000,000.00              Variable(2)               August 25, 2034
             A-3                   $      6,635,000.00              Variable(2)               August 25, 2034
             M-1                   $      8,760,000.00              Variable(2)               August 25, 2034
             M-2                   $      2,753,000.00              Variable(2)               August 25, 2034
             M-3                   $      1,502,000.00              Variable(2)               August 25, 2034
             B-1                   $      1,251,000.00              Variable(2)               August 25, 2034
             B-2                   $      1,001,000.00              Variable(2)               August 25, 2034
             B-3                   $        500,730.59              Variable(2)               August 25, 2034
              R                            N/A                          N/A                   August 25, 2034
</TABLE>

(1)   These balances are approximate and are subject to an increase or decrease
      of up to 5%.

(2)   Interest will accrue on the Class A-1, Class A-2, Class A-3, Class M-1,
      Class M-2, Class M-3, Class B-1, Class B-2 and Class B-3 Certificates
      based upon the weighted average of the net mortgage rates on the Mortgage
      Loans.

                                      -1-
<PAGE>
                                    ARTICLE I
                                   DEFINITIONS

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

      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 Trustee
or the Master Servicer (except in its capacity as successor to a Servicer), or
(y) as provided in the Servicing Agreement, to the extent applicable to the
Servicer, but in no event below the standard set forth in clause (x).

      Account: The Master Servicer Collection Account, Distribution Account and
any Protected Account as the context may require.

      Accrued Certificate Interest: With respect to each Class of Certificates,
an amount equal to the interest accrued during the related Interest Accrual
Period on the Class Certificate Balance thereof at the then-applicable
Pass-Through Rate. Accrued Certificate Interest on any Class of Certificates
will be reduced by the amount of (i) Prepayment Interest Shortfalls (to the
extent not offset by the Servicer or Master Servicer with a payment of
Compensating Interest as provided in Section 6.06), (ii) the interest portion of
Excess Losses allocated to such Class of Certificates pursuant to Section 6.02
and (iii) any other interest shortfalls not covered by the subordination
provided by the Class M Certificates and Class B Certificates, including
shortfalls as a result of the Relief Act or similar legislation or regulations,
with all such reductions allocated among all of the Certificates in proportion
to their respective amounts of Accrued Certificate Interest payable on such
Distribution Date which would have resulted absent such reductions.

      Affiliate: As to any Person, any other Person controlling, controlled by
or under common control with such Person. "Control" means the power to direct
the management and policies of a Person, directly or indirectly, whether through
ownership of voting securities, by contract or otherwise. "Controlled" and
"Controlling" have meanings correlative to the foregoing. The Trustee may
conclusively presume that a Person is not an Affiliate of another Person unless
a Responsible Officer of the Trustee has actual knowledge to the contrary.

      Agreement: This Pooling and Servicing Agreement, including the exhibits
hereto, and all amendments hereof and supplements hereto.

      Applicable Credit Rating: For any long-term deposit or security, a credit
rating of AAA in the case of Fitch or S&P. For any short-term deposit or
security, or a rating of F-l+ in the case of Fitch or S&P.

      Applicable Credit Support Percentage: With respect to any Class of
Certificates, the sum of the related Class Subordination Percentages of such
Class and all Classes of Subordinate Certificates which have a lower relative
priority of payment than such Class.

                                      -2-
<PAGE>

      Applicable State Law: For purposes of Section 9.12(d), the Applicable
State Law shall be (a) the law of the State of New York and (b) such other state
law whose applicability shall have been brought to the attention of the
Securities Administrator and the Trustee by either (i) an Opinion of Counsel
reasonably acceptable to the Securities Administrator and the Trustee delivered
to it by the Master Servicer or the Depositor, or (ii) written notice from the
appropriate taxing authority as to the applicability of such state law.

      Appraised Value: With respect to any Mortgaged Property or Cooperative
Unit, as applicable, the lesser of (i) the value thereof as determined by an
appraisal made for the originator of the Mortgage Loan at the time of
origination of the Mortgage Loan by an appraiser who met the minimum
requirements of the applicable Originator's Underwriting Guidelines, and (ii)
the purchase price paid for the related Mortgaged Property or Cooperative Unit,
as applicable, by the Mortgagor with the proceeds of the Mortgage Loan,
provided, however, in the case of a Refinanced Mortgage Loan, such value of the
Mortgaged Property or Cooperative Unit, as applicable, is based solely upon the
value determined by an appraisal made for the originator of such Refinanced
Mortgage Loan at the time of origination of such Refinanced Mortgage Loan by an
appraiser who met the minimum requirements under the applicable Originator's
Underwriting Guidelines.

      Assignment: 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 of
record the sale of the Mortgage Loan to the Trustee for the benefit of
Certificateholders, which assignment, notice of transfer or equivalent
instrument may be in the form of one or more blanket assignments covering
Mortgages secured by Mortgaged Properties located in the same county, if
permitted by law and accompanied by an Opinion of Counsel to that effect.

      Assignment, Assumption and Recognition Agreement: Shall mean the
Assignment, Assumption and Recognition Agreement (attached hereto as Exhibit I),
dated as of October 29, 2004, among the Seller, the Depositor, the Originators
and Merrill Lynch Bank USA pursuant to which (i) the Mortgage Loans were sold to
the Depositor and (ii) the Washington Mutual Servicing Agreement and the
modifications thereto in the Warranty Bill of Sale and the rights of the Seller
thereunder were assigned to the Depositor for the benefit of the
Certificateholders.

      Assumed Final Distribution Date: August 25, 2034, or if such day is not a
Business Day, the next succeeding Business Day.

      Available Funds: With respect to any Distribution Date and the Mortgage
Loans, an amount equal to the excess of (i) the sum of (a) the aggregate of the
related Monthly Payments received on or prior to the related Determination Date,
(b) Liquidation Proceeds, Insurance Proceeds, Principal Prepayments, Subsequent
Recoveries and other unscheduled recoveries of principal and interest in respect
of the Mortgage Loans during the related Prepayment Period, (c) the aggregate of
any amounts received in respect of a related REO Property withdrawn from any
Protected Account and deposited in the Master Servicer Collection Account for
such Distribution Date, (d) the aggregate of any amounts deposited in the Master
Servicer Collection Account by the Servicer or the Master Servicer in respect of
related Prepayment Interest Shortfalls for such Distribution Date and (e) the
aggregate of any related Monthly Advances made by the Servicer

                                      -3-
<PAGE>

or the Master Servicer for such Distribution Date, over (ii) the sum of (a)
related amounts reimbursable or payable to the Servicer or the Master Servicer
pursuant to Sections 4.03 and 4.05, (b) related Stayed Funds, (c) related
amounts deposited in the Master Servicer Collection Account or the Distribution
Account, as the case may be, in error and (d) any Extraordinary Trust Fund
Expenses.

      Average Loss Severity: With respect to any period, the fraction obtained
by dividing (x) the aggregate amount of Realized Losses for the Mortgage Loans
for such period by (y) the number of related Mortgage Loans which had Realized
Losses for such period.

      Bankruptcy Code: The United States Bankruptcy Code, as amended as codified
in 11 U.S.C. ss.ss. 101-1330.

      Bankruptcy Loss Coverage Amount: As of any date of determination prior to
the first anniversary of the Cut-off Date, an amount equal to the excess, if
any, of (A) $100,000 over (B) the aggregate amount of Bankruptcy Losses
allocated solely to one or more specific Classes of Certificates in accordance
with Section 6.02. As of any date of determination on or after the first
anniversary of the Cut-off Date, an amount equal to the excess, if any, of (1)
the lesser of (a) the Bankruptcy Loss Coverage Amount calculated as of the close
of business on the Business Day immediately preceding the most recent
anniversary of the Cut-off Date coinciding with or preceding such date of
determination (or, if such date of determination is an anniversary of the
Cut-off Date, the Business Day immediately preceding such date of determination)
(for purposes of this definition, the "Relevant Anniversary") and (b) the
greater of

                  (A) the greater of (i) 0.0006 times the aggregate principal
      balance of all the Mortgage Loans in the Mortgage Pool as of the Relevant
      Anniversary having a Loan-to-Value Ratio at origination which exceeds 75%
      and (ii) $100,000; and (B) the greater of (i) the product of (x) an amount
      equal to the largest difference in the related Monthly Payment for any
      Non-Primary Residence Loan remaining in the Mortgage Pool which had an
      original Loan-to-Value Ratio greater than 80% that would result if the Net
      Mortgage Rate thereof was equal to the greater of (I) 5% or (II) the
      weighted average (based on the principal balance of the Mortgage Loans as
      of the Relevant Anniversary) of the Net Mortgage Rates of all Mortgage
      Loans as of the Relevant Anniversary less 1.25% per annum, (y) a number
      equal to the weighted average remaining term to maturity, in months, of
      all Mortgage Loans with a Loan-to-Value Ratio of greater than 80%
      remaining in the Mortgage Pool as of the Relevant Anniversary, and (z) one
      plus the quotient of the number of all Non-Primary Residence Loans with a
      Loan-to-Value Ratio of greater than 80% remaining in the Mortgage Pool
      divided by the total number of outstanding Mortgage Loans in the Mortgage
      Pool as of the Relevant Anniversary, and (ii) $50,000,

      over (2) the aggregate amount of Bankruptcy Losses allocated solely to one
      or more specific Classes of Certificates in accordance with Section 6.02
      since the Relevant Anniversary.

            The Bankruptcy Loss Coverage Amount may be further reduced by the
Depositor (including accelerating the manner in which such coverage is reduced)
provided that prior to any

                                      -4-
<PAGE>

such reduction, the Depositor shall (i) obtain written confirmation from each
Rating Agency that such reduction shall not reduce the rating assigned to any
Class of Certificates by such Rating Agency below the lower of the then-current
rating or the rating assigned to such Certificates as of the Closing Date by
such Rating Agency and (ii) provide a copy of such written confirmation to the
Trustee.

      Bankruptcy Loss: With respect to any Mortgage Loan, any Deficient
Valuation or Debt Service Reduction related to such Mortgage Loan as reported by
the Servicer to the Master Servicer.

      Book-Entry Certificates: Any of the Certificates that shall be registered
in the name of the Depository or its nominee, the ownership of which is
reflected on the books of the Depository or on the books of a Person maintaining
an account with the Depository (directly, as a "Depository Participant", or
indirectly, as an indirect participant in accordance with the rules of the
Depository and as described in Section 5.02 hereof). On the Closing Date, the
Certificates (other than the Class R Certificates and the Private Certificates)
shall be Book-Entry Certificates.

      Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a day
on which the New York Stock Exchange or Federal Reserve is closed or on which
banking institutions in the jurisdiction in which the Trustee, the Master
Servicer, the Servicer or the Securities Administrator are authorized or
obligated by law or executive order to be closed.

      Certificate: Any mortgage pass-through certificate evidencing a beneficial
ownership interest in the Trust Fund signed and countersigned by the Trustee.

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

      Certificate Owner: With respect to each Book-Entry Certificate, any
beneficial owner thereof.

      Certificate Register and Certificate Registrar: The register maintained
and registrar appointed pursuant to Section 5.02 hereof.

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

      Class A Certificate: Any of the Class A-1, Class A-2 and Class A-3
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A-1, executed by the Trustee and authenticated and delivered
by the Trustee, representing the right to distributions as set forth herein and
therein.

      Class A Certificateholder: Any Holder of a Class A Certificate.

      Class B Certificate: Any one of the Class B-1, Class B-2 or Class B-3
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A-2, executed

                                      -5-
<PAGE>

by the Trustee and authenticated and delivered by the Trustee, representing the
right to distributions as set forth herein and therein.

      Class B Certificateholder: Any Holder of a Class B Certificate.

      Class B Percentage: The Class B-1 Percentage, Class B-2 Percentage or
Class B-3 Percentage.

      Class B-1 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class B-1 Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Mortgage Loans (or related REO
Properties) immediately prior to such Distribution Date.

      Class B-2 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class B-2 Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Mortgage Loans (or related REO
Properties) immediately prior to such Distribution Date.

      Class B-3 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class B-3 Certificates immediately
prior to such Distribution Date and the denominator of which is the aggregate
Stated Principal Balance of all of the Mortgage Loans (or related REO
Properties) immediately prior to such Distribution Date.

      Class Certificate Balance: With respect to any Certificate as of any date
of determination, the Class Certificate Balance of such Certificate on the
Distribution Date immediately prior to such date of determination, plus, in the
case of a Class A Certificate and Class M Certificate, any Subsequent Recoveries
added to the Class Certificate Balance of such Certificate pursuant to Section
6.01, and reduced by the aggregate of (a) all distributions of principal made
thereon on such immediately prior Distribution Date and (b) without duplication
of amounts described in clause (a) above, reductions in the Class Certificate
Balance thereof in connection with allocations thereto of Realized Losses on the
Mortgage Loans and Extraordinary Trust Fund Expenses on such immediately prior
Distribution Date (or, in the case of any date of determination up to and
including the initial Distribution Date, the initial Class Certificate Balance
of such Certificate, as stated on the face thereof); provided, however, that the
Class Certificate Balance of each Subordinate Certificate of the Class of
Subordinate Certificates outstanding with the highest numerical designation at
any given time shall be calculated to equal the Percentage Interest evidenced by
such Certificate multiplied by the excess, if any, of (A) the then aggregate
Stated Principal Balance of the Mortgage Loans over (B) the then aggregate Class
Certificate Balance of all other Classes of Certificates then outstanding. The
Class R Certificates shall not have Class Certificate Balances.

      Class M Certificate: Any one of the Class M-1, Class M-2 or Class M-3
Certificates as designated on the face thereof substantially in the form annexed
hereto as Exhibit A-1, executed

                                      -6-
<PAGE>

by the Trustee and authenticated and delivered by the Trustee, representing the
right to distributions as set forth herein and therein.

      Class M Certificateholder: Any Holder of a Class M Certificate.

      Class M Percentage: The Class M-1 Percentage, Class M-2 Percentage or
Class M-3 Percentage.

      Class M-1 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class M-1 Certificates immediately
prior to such date and the denominator of which is the aggregate Stated
Principal Balance of all of the Mortgage Loans (or related REO Properties)
immediately prior to such Distribution Date.

      Class M-2 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class M-2 Certificates immediately
prior to such date and the denominator of which is the aggregate Stated
Principal Balance of all of the Mortgage Loans (or related REO Properties)
immediately prior to such Distribution Date.

      Class M-3 Percentage: With respect to any Distribution Date, the lesser of
100% and a fraction, expressed as a percentage, the numerator of which is the
aggregate Class Certificate Balance of the Class M-3 Certificates immediately
prior to such date and the denominator of which is the aggregate Stated
Principal Balance of all of the Mortgage Loans (or related REO Properties)
immediately prior to such Distribution Date.

      Class R Certificates: The Class R Certificates executed, authenticated and
delivered by the Trustee substantially in the form annexed hereto as Exhibit A-3
and evidencing the ownership of an interest designated as a Residual Interest.

      Class Subordination Percentage: With respect to any Distribution Date and
each Class of Subordinate Certificates, the fraction (expressed as a percentage)
the numerator of which is the Class Certificate Balance of such Class of
Subordinate Certificates immediately prior to such Distribution Date and the
denominator of which is the aggregate of the Class Certificate Balances of all
Classes of Certificates immediately prior to such Distribution Date.

      Closing Date: October 29, 2004.

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

      Commission: The Securities and Exchange Commission.

      Compensating Interest Payment: As defined in Section 6.06.

      Cooperative: A corporation that has been formed for the purpose of
cooperative apartment ownership.

                                      -7-
<PAGE>

      Cooperative Assets: Shares issued by Cooperatives, the related Cooperative
Lease and any other collateral securing the Cooperative Loans.

      Cooperative Lease: With respect to a Cooperative Loan, the proprietary
lease or occupancy agreement with respect to the cooperative apartment occupied
by the Mortgagor and relating to the related Cooperative Assets, which lease or
agreement confers an exclusive right to the holder of such Cooperative Assets to
occupy such apartment.

      Cooperative Loan: The indebtedness of a Mortgagor evidenced by a Mortgage
Note which is secured by Cooperative Assets and which is being sold to the
Depositor pursuant to this Agreement, the Mortgage Loans so sold being
identified in the Mortgage Loan Schedule.

      Cooperative Project: All real property owned by a Cooperative including
the land, separate dwelling units and all common elements.

      Cooperative Unit: Means a specific unit in a Cooperative Project.

      Corporate Trust Office: The principal corporate trust office of the
Trustee at which at any particular time its corporate trust business in
connection with this Agreement shall be administered, which office at the date
of the execution of this instrument is located at Wachovia Bank, National
Association, 401 South Tryon Street, 12th Floor, Charlotte, NC 28288-1179,
Attention: Corporate Trust Group - Merrill Lynch Mortgage Investors, Inc., MLMI
Series 2004-A4, or at such other address as the Trustee may designate from time
to time by notice to the Certificateholders, the Depositor and the Master
Servicer.

      Curtailment: Any Principal Prepayment made by a Mortgagor which is not a
Principal Prepayment in Full.

      Custodial Agreement: An agreement, dated as of the Closing Date among the
Depositor, the Master Servicer, the Trustee and the Custodian in substantially
the form of Exhibit G hereto.

      Custodian: Wells Fargo Bank, National Association, or any successor
custodian appointed pursuant to the provisions hereof and of the Custodial
Agreement.

      Cut-off Date: October 1, 2004.

      Debt Service Reduction: Any reduction of the Monthly Payments which a
Mortgagor is obligated to pay with respect to a Mortgage Loan as a result of any
proceeding under the Bankruptcy Code or any other similar state law or other
proceeding.

      Defective Mortgage Loan: A Mortgage Loan replaced or to be replaced by one
or more Substitute Mortgage Loans.

      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.

                                      -8-
<PAGE>

      Depositor: Merrill Lynch Mortgage Investors, Inc., a Delaware corporation,
or any successor in interest.

      Depository: The Depository Trust Company, the nominee of which is Cede &
Co., or any successor thereto.

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

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

      Determination Date: With respect to each Mortgage Loan, the Determination
Date as defined in the Servicing Agreement.

      Disqualified Organization: Any of the following: (i) the United States,
any State or political subdivision thereof, any possession of the United States,
or any agency or instrumentality of any of the foregoing (other than an
instrumentality which is a corporation if all of its activities are subject to
tax and, except for Freddie Mac or any successor thereto, a majority of its
board of directors is not selected by such governmental unit), (ii) any foreign
government, any international organization, or any agency or instrumentality of
any of the foregoing, (iii) any organization (other than certain farmers'
cooperatives described in Section 521 of the Code) which is exempt from the tax
imposed by Chapter 1 of the Code (including the tax imposed by Section 511 of
the Code on unrelated business taxable income), (iv) rural electric and
telephone cooperatives described in Section 1381(a)(2)(C) of the Code or (v) any
other Person so designated by the Trustee based upon an Opinion of Counsel that
the holding of an ownership interest in a Residual Certificate by such Person
may cause the REMIC Trust contained in the Trust or any Person having an
ownership interest in the Residual Certificate (other than such Person) to incur
a liability for any federal tax imposed under the Code that would not otherwise
be imposed but for the transfer of an ownership interest in a Residual
Certificate to such Person. The terms "United States," "State" and
"international organization" shall have the meanings set forth in Section 7701
of the Code or successor provisions.

      Distribution Account: The trust account or accounts created and maintained
pursuant to Section 4.04, which shall be denominated "Wachovia Bank, National
Association, as Trustee f/b/o holders of Merrill Lynch Mortgage Investors, Inc.,
Mortgage Pass-Through Certificates, MLMI Series 2004-A4 - Distribution Account."
The Distribution Account shall be an Eligible Account.

      Distribution Account Deposit Date: The Business Day prior to each
Distribution Date.

      Distribution Date: The 25th day of any month, beginning in the month
immediately following the month of the Closing Date, or, if such 25th day is not
a Business Day, the Business Day immediately following.

                                      -9-
<PAGE>

      DTC Custodian: Wachovia Bank, National Association, or its successors in
interest as custodian for the Depository.

      Due Date: With respect to each Mortgage Loan, the date in each month on
which its Monthly Payment is due if such due date is the first day of a month
and otherwise is deemed to be the first day of the following month or such other
date specified in the Servicing Agreement.

      Due Period: With respect to any Distribution Date and each Mortgage Loan,
the period commencing on the second day of the month preceding the month in
which the Distribution Date occurs and ending at the close of business on the
first day of the month in which the Distribution Date occurs.

      Eligible Account: Any of (i) an account or accounts maintained with
Servicer, unless and until the Servicer's ratings for short-term unsecured debt
obligations are less than A-2 by S&P or A- by Moody's, (ii) a segregated account
maintained with a federal or state chartered depository institution (A) the
short-term obligations of which are rated A-1 or better by S&P and P-1 by
Moody's at the time of any deposit therein or (B) insured by the FDIC (to the
limits established by such Corporation), the uninsured deposits in which account
are otherwise secured such that, as evidenced by an Opinion of Counsel (obtained
by the Person requesting that the account be held pursuant to this clause (i))
delivered to the Trustee prior to the establishment of such account, the
Certificateholders will have a claim with respect to the funds in such account
and a perfected first priority security interest against any collateral (which
shall be limited to Permitted Investments, each of which shall mature not later
than the Business Day immediately preceding the Distribution Date next following
the date of investment in such collateral or the Distribution Date if such
Permitted Investment is an obligation of the institution that maintains the
Distribution Account) securing such funds that is superior to claims of any
other depositors or general creditors of the depository institution with which
such account is maintained, (iii) a segregated trust account or accounts
maintained with a federal or state chartered depository institution or trust
company with trust powers acting in its fiduciary capacity or (iv) a segregated
account or accounts of a depository institution acceptable to the Rating
Agencies (as evidenced in writing by the Rating Agencies that use of any such
account as the Distribution Account will not have an adverse effect on the
then-current ratings assigned to the Classes of the Certificates then rated by
the Rating Agencies). Eligible Accounts may bear interest.

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

      ERISA-Restricted Certificates: Any of the Class B-1, Class B-2, Class B-3
and Class R Certificates.

      Event of Default: An event of default described in Section 8.01.

      Excess Liquidation Proceeds: To the extent that such amount is not
required by law to be paid to the related Mortgagor, the amount, if any, by
which Liquidation Proceeds with respect to a Liquidated Mortgage Loan exceed the
sum of (i) the Outstanding Principal Balance of such Mortgage Loan and accrued
but unpaid interest at the related Mortgage Interest Rate through the last day
of the month in which the related Liquidation Date occurs, plus (ii) related
Liquidation Expenses.

                                      -10-
<PAGE>

      Excess Losses: (i) Special Hazard Losses in excess of the Special Hazard
Loss Coverage Amount, (ii) Bankruptcy Losses in excess of the Bankruptcy Loss
Coverage Amount, (iii) Fraud Losses in excess of the Fraud Loss Amount and (iv)
Extraordinary Losses.

      Extraordinary Loss: Any Realized Loss or portion thereof caused by or
resulting from:

            (i) nuclear or chemical reaction or nuclear radiation or radioactive
      or chemical contamination, all whether controlled or uncontrolled and
      whether such loss be direct or indirect, proximate or remote or be in
      whole or in part caused by, contributed to or aggravated by a peril
      covered by the definition of the term "Special Hazard Loss";

            (ii) hostile or warlike action in time of peace or war, including
      action in hindering, combating or defending against an actual, impending
      or expected attack by any government or sovereign power, de jure or de
      facto, or by any authority maintaining or using military, naval or air
      forces, or by military, naval or air forces, or by an agent of any such
      government, power, authority or forces;

            (iii) any weapon of war employing atomic fission or radioactive
      forces whether in time of peace or war, and

            (iv) insurrection, rebellion, revolution, civil war, usurped power
      or action taken by governmental authority in hindering, combating or
      defending against such an occurrence, seizure or destruction under
      quarantine or customs regulations, confiscation by order of any government
      or public authority, or risks of contraband or illegal transactions or
      trade.

      Extraordinary Trust Fund Expenses: Any amounts reimbursable to the Master
Servicer or the Depositor pursuant to this Agreement, including but not limited
to Sections 4.03, 4.05 and 7.04, any amounts reimbursable to the Trustee and the
Securities Administrator from the Trust Fund pursuant to this Agreement,
including but not limited to Section 9.05, and any other costs, expenses,
liabilities and losses borne by the Trust Fund (exclusive of any cost, expense,
liability or loss that is specific to a particular Mortgage Loan or REO Property
and is taken into account in calculating a Realized Loss in respect thereof) for
which the Trust Fund has not and, in the reasonable good faith judgment of the
Trustee, shall not, obtain reimbursement or indemnification from any other
Person.

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

      FDIC: Federal Deposit Insurance Corporation or any successor thereto.

      Final Certification: The certification substantially in the form of
Exhibit Two to the Custodial Agreement.

      Fitch: Fitch Ratings or its successor in interest.

      Fraud Loss Amount: Initially, approximately $5,005,507. As of any date of
determination after the Cut-off Date, the Fraud Loss Amount shall equal: (X)
prior to the first anniversary of the Cut-off Date, (1) the lesser of (a) the
Fraud Loss Amount as of the Cut-off

                                      -11-
<PAGE>

Date and (b) 2.00% of the aggregate principal balance of all of the Mortgage
Loans as of the Cut-off Date minus (2) the aggregate amounts allocated through
Subordination with respect to Fraud Losses as of the Cut-off Date up to such
date of determination, (Y) from the first to the second anniversary of the
Cut-off Date, (1) the lesser of (a) the Fraud Loss Amount as of the first
anniversary of the Cut-off Date and (b) 2.00% of the aggregate principal balance
of all of the Mortgage Loans as of the first anniversary of the Cut-off Date
minus (2) the aggregate amounts allocated through Subordination with respect to
Fraud Losses since the first anniversary of the Cut-off Date up to such date of
determination and (Z) from the third to the fifth anniversary of the Cut-off
Date, (1) the lesser of (a) the Fraud Loss Amount as of the most recent
anniversary of the Cut-off Date and (b) 1.00% of the aggregate principal balance
of all of the Mortgage Loans as of the most recent anniversary of the Cut-off
Date minus (2) the aggregate amounts allocated through Subordination with
respect to Fraud Losses since the most recent anniversary of the Cut-off Date up
to such date of determination. On and after the fifth anniversary of the Cut-off
Date, the Fraud Loss Amount shall be zero and Fraud Losses shall not be
allocated through Subordination.

      The Fraud Loss Amount may be further reduced by the Depositor (including
accelerating the manner in which such coverage is reduced) provided that prior
to any such reduction, the Depositor shall (i) obtain written confirmation from
each Rating Agency that such reduction shall not reduce the rating assigned to
any Class of Certificates by such Rating Agency below the lower of the
then-current rating or the rating assigned to such Certificates as of the
Closing Date by such Rating Agency and (ii) provide a copy of such written
confirmation to the Trustee.

      Fraud Losses: Losses sustained on a Liquidated Mortgage Loan by reason of
a default arising from fraud, dishonesty or misrepresentation as reported by the
Servicer to the Master Servicer.

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

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

      Gross Margin: As to each Mortgage Loan, the fixed percentage set forth in
the related Mortgage Note and indicated on the Mortgage Loan Schedule which
percentage is added to the related Index on each Interest Adjustment Date to
determine (subject to rounding, the minimum and maximum Mortgage Interest Rate
and the Periodic Rate Cap) the Mortgage Interest Rate until the next Interest
Adjustment Date.

      Highest Priority: As of any date of determination, the Class of
Subordinate Certificates then outstanding with the earliest priority for
payments pursuant to Section 6.01, in the following order: Class M-1, Class M-2,
Class M-3, Class B-1, Class B-2 and Class B-3 Certificates.

                                      -12-
<PAGE>

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

      Independent: When used with respect to any specified Person, any such
Person who (a) is in fact independent of the Depositor, the Master Servicer and
their respective Affiliates, (b) does not have any direct financial interest in
or any material indirect financial interest in the Depositor or the Master
Servicer or any Affiliate thereof, and (c) is not connected with the Depositor
or the Master Servicer or any Affiliate thereof as an officer, employee,
promoter, underwriter, trustee, partner, director or Person performing similar
functions; provided, however, that a Person shall not fail to be Independent of
the Depositor or the Master Servicer or any Affiliate thereof merely because
such Person is the beneficial owner of 1% or less of any class of securities
issued by the Depositor or the Master Servicer or any Affiliate thereof, as the
case may be.

      Index: The index, if any, specified in a Mortgage Note by reference to
which the related Mortgage Interest Rate will be adjusted from time to time.

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

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

      Initial Class Certificate Balance: With respect to any Regular
Certificate, the amount designated "Initial Class Certificate Balance" on the
face thereof.

      Initial Subordinate Class Percentage: With respect to each Class of
Subordinate Certificates, an amount which is equal to the initial aggregate
Class Certificate Balance of such Class of Subordinate Certificates divided by
the aggregate Stated Principal Balance of all the Mortgage Loans as of the
Cut-off Date as follows:

                  Class M-1: 1.75%          Class B-1: 0.25%

                  Class M-2: 0.55%          Class B-2: 0.20%

                  Class M-3: 0.30%          Class B-3: 0.10%

      Insurance Policy: With respect to any Mortgage Loan, any standard hazard
insurance policy, flood insurance policy or title insurance policy.

      Insurance Proceeds: Amounts paid by the insurer under any Insurance Policy
covering any Mortgage Loan or Mortgaged Property other than amounts required to
be paid over to the Mortgagor pursuant to law or the related Mortgage Note or
Security Instrument and other than amounts used to repair or restore the
Mortgaged Property or to reimburse insured expenses.

      Interest Accrual Period: With respect to each Distribution Date, for each
Class of Certificates, the calendar month preceding the month in which such
Distribution Date occurs.

                                      -13-
<PAGE>

      Interest Adjustment Date: With respect to a Mortgage Loan, the date, if
any, specified in the related Mortgage Note on which the Mortgage Interest Rate
is subject to adjustment.

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

      Liquidation Date: With respect to any Liquidated Mortgage Loan, the date
on which the Servicer has certified that such Mortgage Loan has become a
Liquidated Mortgage Loan.

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

      Liquidation Proceeds: Amounts, other than Insurance Proceeds and
condemnation proceeds, received in connection with the liquidation of a
defaulted Mortgage Loan, whether through trustee's sale, foreclosure sale or
otherwise.

      Loan-to-Value Ratio: With respect to any Mortgage Loan as of any date of
determination, the ratio on such date of the Outstanding Principal Balance of
the Mortgage Loan, to the Appraised Value of the Mortgaged Property.

      Lower Priority: As of any date of determination and with respect to any
Class of Subordinate Certificates, any other Class of Subordinate Certificates
then outstanding with a later priority for payments pursuant to Section 6.01.

      Lowest Priority: As of any date of determination, the Class of Subordinate
Certificates then outstanding with the latest priority for payments pursuant to
Section 6.01, in the following order: Class B-3, Class B-2, Class B-1, Class
M-3, Class M-2 and Class M-1 Certificates.

      Lost Notes: The original Mortgage Notes that have been lost, as indicated
on the Mortgage Loan Schedule.

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

      Master Servicer: Wells Fargo Bank, National Association including, its
respective successors in interest who meet the qualifications of this Agreement.

      Master Servicer Collection Account: The trust account or accounts created
and maintained pursuant to Section 4.02, which shall be denominated "Wachovia
Bank, National Association, as Trustee f/b/o holders of Merrill Lynch Mortgage
Investors, Inc., Mortgage Pass-Through Certificates, MLMI Series 2004-A4 -
Master Servicer Collection Account." The Master Servicer Collection Account
shall be an Eligible Account.

                                      -14-
<PAGE>

      Master Servicing Compensation: The meaning specified in Section 3.14.

      Maximum Lifetime Mortgage Rate: The maximum level to which a Mortgage
Interest Rate can adjust in accordance with its terms, regardless of changes in
the applicable Index.

      Minimum Lifetime Mortgage Rate: The minimum level to which a Mortgage
Interest Rate can adjust in accordance with its terms, regardless of changes in
the applicable Index.

      MLCC: Merrill Lynch Credit Corporation.

      MLMLI: Merrill Lynch Mortgage Lending Inc.

      Monthly Advance: An advance of principal or interest required to be made
by the Servicer pursuant to the Servicing Agreement or the Master Servicer
pursuant to Section 6.05.

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

      Monthly Principal: The principal portion of any Monthly Payment.

      Moody's: Moody's Investors Service, Inc. or its successor in interest.

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

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

      Mortgage Interest Rate: The annual rate at which interest accrues from
time to time on any Mortgage Loan pursuant to the related Mortgage Note, which
rate is equal to the "Mortgage Interest Rate" set forth with respect thereto on
the Mortgage Loan Schedule.

      Mortgage Loan: A mortgage loan transferred and assigned to the Trustee
pursuant to Section 2.01 or Section 2.04 and held as a part of the Trust Fund,
as identified in the Mortgage Loan Schedule, including a mortgage loan the
property securing which has become an REO Property.

      Mortgage Loan Schedule: The schedule, attached hereto as Exhibit B with
respect to the Mortgage Loans and as amended from time to time to reflect the
repurchase or substitution of Mortgage Loans pursuant to this Agreement.

                                      -15-
<PAGE>

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

      Mortgage Pool: The pool of Mortgage Loans, identified on Exhibit B from
time to time, and any REO Properties acquired in respect thereof.

      Mortgaged Property: Land and improvements securing the indebtedness of a
Mortgagor under the related Mortgage Loan or, in the case of REO Property, such
REO Property.

      Mortgagor: The obligor on a Mortgage Note.

      Net Liquidation Proceeds: As to any Liquidated Mortgage Loan, Liquidation
Proceeds net of (i) Liquidation Expenses which are payable therefrom by the
Servicer or the Master Servicer in accordance with the Servicing Agreement or
this Agreement and (ii) unreimbursed advances by the Servicer or the Master
Servicer and Monthly Advances.

      Net Mortgage Rate: With respect to each Mortgage Loan, the Mortgage
Interest Rate in effect from time to time less the Servicing Fee Rate (expressed
as a per annum rate).

      Nonrecoverable Advance: Any Monthly Advance or Servicing Advance
previously made or proposed to be made in respect of a Mortgage Loan or REO
Property that, in the good faith business judgment of the Servicer, will not,
or, in the case of a proposed Monthly Advance or Servicing Advance, would not
be, ultimately recoverable from related late payments, condemnation proceeds,
Insurance Proceeds or Liquidation Proceeds on such Mortgage Loan or REO Property
as provided herein.

      Offered Certificate: Any Senior Certificate or Offered Subordinate
Certificate.

      Offered Subordinate Certificates: The Class M-l, Class M-2 and Class M-3
Certificates.

      Officer's Certificate: A certificate signed by the Chairman of the Board,
the Vice Chairman of the Board, the President or a Vice President or Assistant
Vice President or other authorized officer of the Master Servicer or the
Depositor, as applicable, and delivered to the Trustee, as required by this
Agreement.

      Opinion of Counsel: A written opinion of counsel who is or are acceptable
to the Trustee and who, unless required to be Independent (an "Opinion of
Independent Counsel"), may be internal counsel for the Master Servicer or the
Depositor.

      Optional Termination Date: The first Distribution Date on which the Master
Servicer may opt to terminate the Trust Fund pursuant to Section 10.01.

      Original Class Certificate Balance: With respect to each Class of the
Certificates (other than the and Class R Certificates), the Class Certificate
Balance thereof on the Closing Date, as set forth opposite such Class above in
the Preliminary Statement.

      Original Subordinate Principal Balance: The sum of the aggregate Class
Certificate Balances of each Class of Subordinate Certificates as of the Closing
Date.

                                      -16-
<PAGE>

      Original Value: The lesser of (i) the Appraised Value or (ii) the sales
price of a Mortgaged Property at the time of origination of a Mortgage Loan,
except in instances where either clauses (i) or (ii) is unavailable, the other
may be used to determine the Original Value, or if both clauses (i) and (ii) are
unavailable, Original Value may be determined from other sources reasonably
acceptable to the Depositor.

      Originators: Washington Mutual Bank, FA and Washington Mutual Bank.

      Outstanding Mortgage Loan: With respect to any Due Date, a Mortgage Loan
which, prior to such Due Date, was not the subject of a Principal Prepayment in
Full, did not become a Liquidated Mortgage Loan and was not purchased or
replaced.

      Outstanding Principal Balance: As of the time of any determination, the
principal balance of a Mortgage Loan remaining to be paid by the Mortgagor, or,
in the case of an REO Property, the principal balance of the related Mortgage
Loan remaining to be paid by the Mortgagor at the time such property was
acquired by the Trust Fund less any Net Liquidation Proceeds with respect
thereto to the extent applied to principal.

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

      Pass-Through Rate: With respect to the Class A, Class M and Class B
Certificates and any Distribution Date, the weighted average of the Net Mortgage
Rates on the Mortgage Loans as of the close of business on the first day of the
calendar month preceding the month in which such Distribution Date occurs,
weighted on the basis of the Stated Principal Balances thereof as of the close
of business on the last day of the calendar month preceding the month in which
such Distribution Date occurs. The Pass-Through Rate with respect to the first
Interest Accrual Period is expected to be approximately 4.3015% per annum.

      Paying Agent: The Trustee or any successor Paying Agent appointed by the
Trustee.

      Percentage Interest: With respect to any Certificate (other than a Class R
Certificate), a fraction, expressed as a percentage, the numerator of which is
the Initial Class Certificate Balance represented by such Certificate and the
denominator of which is the Original Class Certificate Balance of the related
Class. With respect to any Class of Class R Certificates, the portion of such
Class evidenced thereby, expressed as a percentage, as stated on the face of
such Certificate; provided, however, that the sum of all such percentages for
each such Class totals 100%.

      Periodic Rate Cap: With respect to each Mortgage Loan, the maximum
adjustment that can be made to the Mortgage Interest Rate on each Interest
Adjustment Date in accordance with its terms, regardless of changes in the
applicable Index.

      Permitted Investments: Any one or more of the following obligations or
securities held in the name of the Trustee for the benefit of the
Certificateholders:

                                      -17-
<PAGE>

      (i) direct obligations of, and obligations the timely payment of which are
fully guaranteed by the United States of America or any agency or
instrumentality of the United States of America the obligations of which are
backed by the full faith and credit of the United States of America;

      (ii) (a) demand or time deposits, federal funds or bankers' acceptances
issued by any depository institution or trust company incorporated under the
laws of the United States of America or any state thereof (including the Trustee
or the Master Servicer or its Affiliates acting in its commercial banking
capacity) and subject to supervision and examination by federal and/or state
banking authorities, provided that the commercial paper and/or the short-term
debt rating and/or the long-term unsecured debt obligations of such depository
institution or trust company at the time of such investment or contractual
commitment providing for such investment have the Applicable Credit Rating or
better from each Rating Agency and (b) any other demand or time deposit or
certificate of deposit that is fully insured by the Federal Deposit Insurance
Corporation;

      (iii) repurchase obligations with respect to (a) any security described in
clause (i) above or (b) any other security issued or guaranteed by an agency or
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, in either
case entered into with a depository institution or trust company (acting as
principal) described in clause (ii)(a) above where the Trustee holds the
security therefor;

      (iv) securities bearing interest or sold at a discount issued by any
corporation (including the Trustee or the Master Servicer or its Affiliates)
incorporated under the laws of the United States of America or any state thereof
that have the Applicable Credit Rating or better from each Rating Agency at the
time of such investment or contractual commitment providing for such investment;
provided, however, that securities issued by any particular corporation will not
be Permitted Investments to the extent that investments therein will cause the
then outstanding principal amount of securities issued by such corporation and
held as part of the Trust to exceed 10% of the aggregate Outstanding Principal
Balances of all the Mortgage Loans and Permitted Investments held as part of the
Trust;

      (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 one year after the date of issuance thereof) having the
Applicable Credit Rating or better from each Rating Agency at the time of such
investment;

      (vi) a Reinvestment Agreement issued by any bank, insurance company or
other corporation or entity;

      (vii) any other demand, money market or time deposit, obligation, security
or investment as may be acceptable to either Rating Agency as evidenced in
writing by each Rating Agency to the Trustee or Master Servicer; and

      (viii) any money market or common trust fund having the Applicable Credit
Rating or better from each Rating Agency (if such fund is rated by each Rating
Agency), including any

                                      -18-
<PAGE>

such fund for which the Trustee or Master Servicer or any affiliate of the
Trustee or Master Servicer acts as a manager or an advisor; provided, however,
that no instrument or security shall be a Permitted Investment if such
instrument or security evidences a right to receive only interest payments with
respect to the obligations underlying such instrument or if such security
provides for payment of both principal and interest with a yield to maturity in
excess of 120% of the yield to maturity at par or if such instrument or security
is purchased at a price greater than par.

      Permitted Transferee: Any Person other than a Disqualified Organization or
an "electing large partnership" (as defined by Section 775 of the Code).

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

      Physical Certificates: The Residual Certificates and the Private
Certificates.

      Preliminary Servicing Period: With respect to any Mortgage Loans, the
period commencing on the related Closing Date and ending on the date the
Servicer enters into Reconstitution Agreements which amend or restate the
servicing provisions of this Agreement.

      Prepayment Distribution Trigger: With respect to any Distribution Date and
any Class of Subordinate Certificates (other than the Class M-1 Certificates), a
test that shall be satisfied if the fraction (expressed as a percentage) equal
to the sum of the Class Certificate Balances of such Class and each Class of
Subordinate Certificates with a Lower Priority than such Class immediately prior
to such Distribution Date divided by the aggregate Stated Principal Balance of
all of the Mortgage Loans (or related REO Properties) immediately prior to such
Distribution Date is greater than or equal to the sum of the related Initial
Subordinate Class Percentages of such Classes of Subordinate Certificates.

      Prepayment Interest Shortfall: As to any Distribution Date and any
Mortgage Loan (other than a Mortgage Loan relating to an REO Property) that was
the subject of (a) a Principal Prepayment in Full during the related Prepayment
Period, an amount equal to the excess of one month's interest at the Net
Mortgage Rate on the Stated Principal Balance of such Mortgage Loan over the
amount of interest (adjusted to the Net Mortgage Rate) paid by the Mortgagor for
such Prepayment Period to the date of such Principal Prepayment in Full or (b) a
Curtailment during the prior calendar month, an amount equal to one month's
interest at the Net Mortgage Rate on the amount of such Curtailment. The
obligations of the Master Servicer in respect of any Prepayment Interest
Shortfall are set forth in Section 6.06.

      Prepayment Period: With respect to any Mortgage Loan and any Distribution
Date, the calendar month preceding the month in which such Distribution Date
occurs.

      Primary Mortgage Insurance Policy: Any primary mortgage guaranty insurance
policy issued in connection with a Mortgage Loan which provides compensation to
a Mortgage Note holder in the event of default by the obligor under such
Mortgage Note or the related Security Instrument, if any or any replacement
policy therefor through the related Interest Accrual Period for such Class
relating to a Distribution Date.

                                      -19-
<PAGE>

      Principal Prepayment: Any payment (whether partial or full) or other
recovery of principal on a Mortgage Loan which is received in advance of its
scheduled Due Date to the extent that it is not accompanied by an amount as to
interest representing scheduled interest due on any date or dates in any month
or months subsequent to the month of prepayment, including Insurance Proceeds
and Repurchase Proceeds, but excluding the principal portion of Net Liquidation
Proceeds.

      Principal Prepayment in Full: Any Principal Prepayment made by a Mortgagor
of the entire unpaid principal balance of the Mortgage Loan.

      Private Certificates: Any of the Class B-1, Class B-2 and Class B-3
Certificates.

      Protected Account: An account established and maintained for the benefit
of Certificateholders by the Servicer with respect to the related Mortgage Loans
and with respect to REO Property pursuant to the Servicing Agreement. The
Protected Account shall be an Eligible Account.

      Purchase Price: With respect to any Mortgage Loan or REO Property to be
purchased pursuant to or as contemplated by Section 2.03 or 10.01, and as
confirmed by an Officers' Certificate from the Master Servicer to the Trustee,
an amount equal to the sum of (i) 100% of the Stated Principal Balance thereof
as of the date of purchase (or such other price as provided in Section 10.01),
(ii) accrued interest on such Stated Principal Balance at the applicable
Mortgage Interest Rate in effect from time to time from the Due Date as to which
interest was last covered by a payment by the Mortgagor or an advance by the
Servicer or Master Servicer, which payment or advance had as of the date of
purchase been distributed to Certificateholders, through the end of the calendar
month in which the purchase is to be effected less any unreimbursed Monthly
Advances and any unpaid Servicing Fees payable to the purchaser of the Mortgage
Loan and (iii) any costs and damages incurred by the Trust in connection with
any violation by such Mortgage Loan or REO Property of any predatory or
abusive-lending law.

      Qualified Insurer: Any insurance company duly qualified as such under the
laws of the state or states in which the related Mortgaged Property or Mortgaged
Properties is or are located, duly authorized and licensed in such state or
states to transact the type of insurance business in which it is engaged and
approved as an insurer by the Master Servicer, so long as the claims paying
ability of which is acceptable to the Rating Agencies for pass-through
certificates having the same rating as the Certificates rated by the Rating
Agencies as of the Closing Date.

      Rating Agencies: Fitch and S&P.

      Realized Loss: With respect to a Liquidated Mortgage Loan, the amount by
which the remaining unpaid principal balance of the Mortgage Loan exceeds the
amount of Liquidation Proceeds applied to the principal balance of the related
Mortgage Loan. To the extent the Master Servicer receives Subsequent Recoveries
with respect to any Mortgage Loan, the amount of the Realized Loss with respect
to that Mortgage Loan will be reduced to the extent such recoveries are applied
to reduce the Class Certificate Balance of any Class of Certificates on any
Distribution Date.

                                      -20-
<PAGE>

      Reconstitution Agreements: The agreement or agreements entered into by the
Servicer and the Seller and/or certain third parties on the Reconstitution Date
or Dates with respect to any or all of the Mortgage Loans serviced hereunder, in
connection with a whole loan transfer or a pass-through transfer as provided in
Section 12 of the Servicing Agreement.

      Reconstitution Date: The date or dates on which any or all of the Mortgage
Loans serviced under this Agreement shall be removed from this Agreement and
reconstituted as part of a Whole Loan Transfer or Pass-Through Transfer pursuant
to Section 12 hereof.

      Record Date: With respect to each Distribution Date and each class of
Offered Certificates, the close of business on the last Business Day of the
month immediately preceding the month in which the related Distribution Date
occurs.

      Refinanced Mortgage Loan: A Mortgage Loan the proceeds of which were not
used to purchase the related Mortgaged Property.

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

      Reinvestment Agreements: One or more reinvestment agreements, acceptable
to the Rating Agencies, from a bank, insurance company or other corporation or
entity (including the Trustee).

      Relief Act: The Servicemembers Civil Relief Act, as amended.

      Relief Act Mortgage Loan: Any Mortgage Loan as to which the Monthly
Payment thereof has been reduced due to the application of the Relief Act.

      REMIC: A "real estate mortgage investment conduit" within the meaning of
Section 860D of the Code.

      REMIC Trust: The segregated pool of assets, with respect to which a REMIC
election is to be made, consisting of: (i) each Mortgage Loan (exclusive of
payments of principal and interest due on or before the Cut-off Date, if any,
received by the Master Servicer which shall not constitute an asset of the Trust
Fund) as from time to time are subject to this Agreement and all payments under
and proceeds of such Mortgage Loans (exclusive of any prepayment fees and late
payment charges received on the Mortgage Loans), together with all documents
included in the related Mortgage File, subject to Section 2.01; (ii) such funds
or assets as from time to time are deposited in the Master Servicer Collection
Account or the Distribution Account and belonging to the Trust Fund; (iii) any
REO Property; (iv) the primary hazard insurance policies, if any, the Primary
Mortgage Insurance Policies, if any, and all other Insurance Policies with
respect to the Mortgage Loans; and (v) the Depositor's interest in respect of
the representations and warranties made by the Seller and the Originators in the
Assignment, Assumption and Recognition Agreement as assigned to the Trustee
pursuant to Section 2.04 hereof.

      REMIC Opinion: An Opinion of Counsel stating that, under the REMIC
Provisions, any contemplated action will not cause the REMIC Trust to fail to
qualify as a REMIC or result in

                                      -21-
<PAGE>

the imposition of a tax upon the Trust Fund (including but not limited to the
tax on prohibited transactions as defined in Section 860F(a)(2) of the Code and
the tax on contributions to the REMIC Trust set forth in Section 860G(d) of the
Code).

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

      REO Property: A Mortgaged Property acquired by the Servicer or Master
Servicer on behalf of the Trust Fund through foreclosure or deed-in-lieu of
foreclosure, as described in Section 3.23 in connection with a defaulted
Mortgage Loan.

      Repurchase Proceeds: The Repurchase Price in connection with any
repurchase of a Mortgage Loan by the Originators and any cash deposit in
connection with the substitution of a Mortgage Loan.

      Request for Release: A request for release in the form attached hereto as
Exhibit D.

      Required Insurance Policy: With respect to any Mortgage Loan, any
insurance policy which is required to be maintained from time to time under this
Agreement with respect to such Mortgage Loan.

      Residual Certificates: Any of the Class R Certificates.

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

      Responsible Officer: Any officer assigned to the Corporate Trust Office
(or any successor thereto), including any Vice President, Assistant Vice
President, Trust Officer, any Assistant Secretary, any trust officer or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and having direct
responsibility for the administration of this Agreement, and any other officer
of the Trustee to whom a matter arising hereunder may be referred.

      Rule 144A Letter: The certificate to be furnished by each purchaser of a
Private Certificate (which is also a Physical Certificate) which is a Qualified
Institutional Buyer as defined under Rule 144A promulgated under the Securities
Act, substantially in the form set forth as Exhibit F-3 hereto.

      S&P: Standard and Poor's, a division of The McGraw-Hill Companies, Inc. or
its successor in interest.

      Scheduled Payment: With respect to any Mortgage Loan and any month, the
scheduled payment or payments of principal and interest due during such month on
such Mortgage Loan which either is payable by a Mortgagor in such month under
the related Mortgage Note or, in the case of REO Property, would otherwise have
been payable under the related Mortgage Note.

                                      -22-
<PAGE>

      Scheduled Principal: The principal portion of any Scheduled Payment.

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

      Securities Administrator: Wells Fargo Bank, National Association, or its
successor in interest, or any successor securities administrator appointed as
herein provided.

      Security Instrument: A written instrument creating a valid first lien on a
Mortgaged Property securing a Mortgage Note, which may be any applicable form of
mortgage, deed of trust, deed to secure debt or security deed, including any
riders or addenda thereto.

      Seller: Merrill Lynch Mortgage Lending Inc., a Delaware corporation, or
any successor in interest.

      Senior Accelerated Distribution Percentage: With respect to any
Distribution Date, the percentage indicated below:

<TABLE>
<CAPTION>
                                                                      Senior Accelerated
                    Distribution Date                               Distribution Percentage
     -----------------------------------------        ---------------------------------------------------
<S>                                                   <C>
     November 2004 through October 2011               100%

     November 2011 through October 2012               Senior Percentage, plus 70% of the Subordinate
                                                      Percentage

     November 2012 through October 2013               Senior Percentage, plus 60% of the Subordinate
                                                      Percentage

     November 2013 through October 2014               Senior Percentage, plus 40% of the Subordinate
                                                      Percentage

     November 2014 through October 2015               Senior Percentage, plus 20% of the Subordinate
                                                      Percentage

     November 2015 and thereafter                     Senior Percentage
</TABLE>

provided, however, that any scheduled reduction to the Senior Accelerated
Distribution Percentage described above shall not occur as of any Distribution
Date unless either (a)(i)(X) the outstanding principal balance of Mortgage Loans
delinquent 60 days or more (including for this purpose any such Mortgage Loans
in foreclosure or bankruptcy and such Mortgage Loans with respect to which the
related Mortgaged Property has been acquired by the Trust) averaged over the
last six months as a percentage of the aggregate outstanding Class Certificate
Balance of the Class M Certificates and the Class B Certificates, is less than
50%, or (Y) the outstanding principal balance of Mortgage Loans delinquent 60
days or more averaged over the last six months, as a percentage of the aggregate
outstanding principal balance of all Mortgage Loans averaged over the last six
months, does not exceed 2% and (ii) Realized Losses on the Mortgage Loans to
date for such Distribution Date, if occurring during the eighth, ninth, tenth,
eleventh or twelfth year (or any year thereafter) after the Closing Date, are
less than 30%, 35%, 40%, 45% or 50%, respectively, of the sum of the Initial
Class Certificate Balances of the Class M Certificates and Class B Certificates;
or (b) (i) the outstanding principal balance of Mortgage Loans delinquent 60
days or more (including for this purpose any such Mortgage Loans in foreclosure

                                      -23-
<PAGE>

or bankruptcy and such Mortgage Loans with respect to which the related
Mortgaged Property has been acquired by the Trust) averaged over the last six
months, as a percentage of the aggregate outstanding principal balance of all
Mortgage Loans averaged over the last six months, does not exceed 4%, and (ii)
Realized Losses on the Mortgage Loans to date for such Distribution Date, if
occurring during the eighth, ninth, tenth, eleventh or twelfth year (or any year
thereafter) after the Closing Date, are less than 10%, 15%, 20%, 25% or 30%,
respectively, of the sum of the initial Class Certificate Balances of the Class
M Certificates and Class B Certificates.

      In addition, on any Distribution Date on or after the Distribution Date
occurring in November 2007, if the Subordinate Percentage is equal to or greater
than two times the initial Subordinate Percentage, and (a) the outstanding
principal balance of the Mortgage Loans delinquent 60 days or more (including
for this purpose any such Mortgage Loans in foreclosure and such Mortgage Loans
with respect to which the related Mortgaged Property has been acquired by the
Trust), averaged over the last six months, as a percentage of the Subordinate
Percentage for that Distribution Date times the aggregate Stated Principal
Balance of the Mortgage Loans, does not exceed 50% and (b) cumulative Realized
Losses on the Mortgage Loans do not exceed 20% of the initial Subordinate
Percentage times the aggregate Stated Principal Balance of the Mortgage Loans as
of the Cut-off Date, then, in each case, the Senior Accelerated Distribution
Percentage for such Distribution Date will equal the Senior Percentage.

      Senior Certificates: The Class A-1, Class A-2 and Class A-3 Certificates.

      Senior Percentage: As of any Distribution Date, the lesser of 100% and a
fraction, expressed as a percentage, the numerator of which is the aggregate
Class Certificate Balance of the Class A Certificates immediately prior to such
Distribution Date and the denominator of which is the aggregate Stated Principal
Balance of all of the Mortgage Loans or related REO Properties immediately prior
to such Distribution Date.

      Senior Principal Distribution Amount: As to any Distribution Date, the
lesser of (a) the balance of the Available Distribution Amount remaining after
the distribution of all amounts required to be distributed pursuant to subclause
first and second of Section 6.01(A) and (b) the sum of the following:

                  (A) the Senior Percentage for such Distribution Date times the
      sum of the following:

                        (1) the principal portion of each Monthly Payment due
            during the related Due Period on each Outstanding Mortgage Loan,
            whether or not received on or prior to the related Determination
            Date, minus the principal portion of any Debt Service Reduction
            which together with other Bankruptcy Losses exceeds the Bankruptcy
            Loss Coverage Amount;

                        (2) the Stated Principal Balance of any Mortgage Loan
            repurchased during the related Prepayment Period pursuant to Section
            2.02 or 2.03 hereof or pursuant to the Servicing Agreement; and

                                      -24-
<PAGE>

                        (3) the principal portion of all other unscheduled
            collections (other than Principal Prepayments in Full and
            Curtailments and amounts received in connection with the liquidation
            or disposition of a Mortgage Loan, including without limitation
            Insurance Proceeds, Liquidation Proceeds and REO Proceeds) received
            during the related Prepayment Period to the extent applied by the
            Servicer as recoveries of principal of the related Mortgage Loan
            pursuant to Servicing Agreement;

                  (B) with respect to the liquidation or other disposition of a
      Mortgage Loan which occurred during the related Prepayment Period and did
      not result in any Excess Special Hazard Losses, Excess Fraud Losses,
      Excess Bankruptcy Losses or Extraordinary Losses, an amount equal to the
      lesser of (a) the Senior Percentage for such Distribution Date times the
      Stated Principal Balance of such Mortgage Loan and (b) the Senior
      Accelerated Distribution Percentage for such Distribution Date times the
      related unscheduled collections (including without limitation Insurance
      Proceeds, Liquidation Proceeds and REO Proceeds) to the extent applied by
      the Servicer or the Master Servicer as recoveries of principal of the
      related Mortgage Loan pursuant to the Servicing Agreement or this
      Agreement;

                  (C) the Senior Accelerated Distribution Percentage for such
      Distribution Date times the aggregate of all Principal Prepayments in Full
      and Curtailments received in the related Prepayment Period with respect to
      the Mortgage Loans;

                  (D) any amounts described in clauses (A), (B) or (C) of this
      definition, as determined for any previous Distribution Date, which remain
      unpaid after application of amounts previously distributed pursuant to
      this clause (D) to the extent that such amounts are not attributable to
      Realized Losses which have been allocated to the Class M Certificates or
      Class B Certificates;

      Servicer: With respect to each Mortgage Loan, Washington Mutual Bank, FA.

      Servicer Remittance Date: With respect to each Mortgage Loan, the date set
forth in the Servicing Agreement as the Remittance Date (as such term is defined
in the Servicing Agreement).

      Servicing Advances: All customary, reasonable and necessary
"out-of-pocket" costs and expenses incurred by the Servicer in the performance
of its servicing obligations, including, but not limited to, the cost of (i)
preservation, restoration, protection and repair of a Mortgaged Property or
Cooperative Unit, as applicable, (ii) any enforcement or judicial proceedings
with respect to a Mortgage Loan, including foreclosure actions and (iii) the
management and liquidation of REO Property.

      Servicing Agreement: The Master Mortgage Loan Purchase and Servicing
Agreement dated as of June 1, 2001 among Merrill Lynch Bank USA, as purchaser,
Washington Mutual Bank, FA, as seller, Washington Mutual Bank fsb, as seller,
Washington Mutual Bank, as seller and Washington Mutual Bank, FA, as servicer,
and the modifications thereto provided in Annex

                                      -25-
<PAGE>

A to the Warranty Bill of Sale dated April 26, 2004, among Merrill Lynch Bank
USA, as purchaser, Washington Mutual Bank, FA, as seller, Washington Mutual
Bank, as seller, and Washington Mutual Bank, FA, as servicer.

      Servicing Fee: With respect to each Mortgage Loan, the amount of the
annual servicing fee the Purchaser shall pay to the Servicer, which shall, for
each month, be equal to one-twelfth of the product of (a) the related Servicing
Fee Rate and (b) the unpaid principal balance of the Mortgage Loan. Such fee
shall be payable monthly, computed on the basis of the same principal amount and
period respectively which any related interest payment on a Mortgage Loan is
computed. The obligation of the Trust Fund to pay the Servicing Fee is limited
to, and payable solely from, the interest portion (including recoveries with
respect to interest from Liquidation Proceeds, Insurance Proceeds, condemnation
proceeds and other proceeds, to the extent permitted by this Agreement) of
related Monthly Payment collected by the Servicer, or as otherwise proved under
Section 11.05. If the Preliminary Servicing Period includes any partial month,
the Servicing Fee for such month shall be pro rated at a per diem rate based
upon a 30-day month. If the Index and/or Gross Margin are adjusted as provided
in the related Mortgage Note, the Servicing Fee shall be the rate per annum in
effect immediately prior to such adjustment.

      Servicing Fee Rate: The per annum rate at which the Servicing Fee accrues,
which rate shall be as calculated or set forth in the related final Mortgage
Loan Schedule.

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

      Special Hazard Loss Coverage Amount: As of any Distribution Date, an
amount equal to $7,109,296 minus the sum of (i) the aggregate amount of Special
Hazard Losses allocated solely to one or more specific Classes of Certificates
in accordance with Section 6.02 and (ii) the Adjustment Amount (as defined
below) as most recently calculated. For each anniversary of the Cut-off Date,
the Adjustment Amount shall be equal to the amount, if any, by which the amount
calculated in accordance with the preceding sentence (without giving effect to
the deduction of the Adjustment Amount for such anniversary) exceeds the greater
of (A) the greatest of (i) twice the outstanding principal balance of the
Mortgage Loan in the Trust Fund which has the largest outstanding principal
balance on the Distribution Date immediately preceding such anniversary, (ii)
the product of 1.00% multiplied by the outstanding principal balance of all
Mortgage Loans on the Distribution Date immediately preceding such anniversary
and (iii) the aggregate outstanding principal balance (as of the immediately
preceding Distribution Date) of the Mortgage Loans in any single five-digit
California zip code area with the largest amount of Mortgage Loans by aggregate
principal balance as of such anniversary and (B) the greater of (i) the product
of 0.50% multiplied by the outstanding principal balance of all Mortgage Loans
on the Distribution Date immediately preceding such anniversary multiplied by a
fraction, the numerator of which is equal to the aggregate outstanding principal
balance (as of the immediately preceding Distribution Date) of all of the
Mortgage Loans secured by Mortgaged Properties located in the State of
California divided by the aggregate outstanding principal balance (as of the
immediately preceding Distribution Date) of all of the Mortgage Loans,

                                      -26-
<PAGE>

expressed as a percentage, and the denominator of which is equal to 73.57%
(which percentage is equal to the percentage of Mortgage Loans initially secured
by Mortgaged Properties located in the State of California) and (ii) the
aggregate outstanding principal balance (as of the immediately preceding
Distribution Date) of the largest Mortgage Loan secured by a Mortgaged Property
located in the State of California.

      The Special Hazard Amount may be further reduced by the Depositor
(including accelerating the manner in which coverage is reduced) provided that
prior to any such reduction, the Depositor shall (i) obtain written confirmation
from each Rating Agency that such reduction shall not reduce the rating assigned
to any Class of Certificates by such Rating Agency below the lower of the
then-current rating or the rating assigned to such Certificates as of the
Closing Date by such Rating Agency and (ii) provide a copy of such written
confirmation to the Trustee.

      Special Hazard Losses: Realized Losses in respect of Special Hazard
Mortgage Loans as reported by the Servicer to the Master Servicer.

      Special Hazard Mortgage Loan: A Liquidated Mortgage Loan as to which the
ability to recover the full amount due thereunder was substantially impaired by
a hazard not insured against under a standard hazard insurance policy.

      Startup Day: October 29, 2004.

      Stated Principal Balance: With respect to any Mortgage Loan and Due Date,
the unpaid principal balance of such Mortgage Loan as of such Due Date, as
specified in the amortization schedule at the time relating thereto (before any
adjustment to such amortization schedule by reason of any moratorium or similar
waiver or grace period), after giving effect to any previous partial prepayments
and Liquidation Proceeds received and to the payment of principal due on such
Due Date and irrespective of any delinquency in payment by the related
Mortgagor.

      Stayed Funds: If the Master Servicer is the subject of a proceeding under
the federal Bankruptcy Code and the making of a remittance by the Master
Servicer pursuant to this Agreement is prohibited by Section 362 of the federal
Bankruptcy Code, funds which are in the custody of the Master Servicer, a
trustee in bankruptcy or a federal bankruptcy court and should have been the
subject of such remittance absent such prohibition.

      Subordinate Certificates: The Class M-1, Class M-2, Class M-3, Class B-1,
Class B-2 and Class B-3 Certificates.

      Subordinate Percentage: For any Distribution Date, the difference between
100% and the Senior Percentage for such date.

      Subordinate Prepayment Percentage: With respect to any Distribution Date
and each Class of Subordinate Certificates, under the applicable circumstances
set forth below, the respective percentages set forth below:

            (i) For any Distribution Date prior to the Distribution Date in
      November 2011 (unless the Class Certificate Balances of the Senior
      Certificates have been reduced to zero), 0%.

                                      -27-
<PAGE>

            (ii) For any Distribution Date for which clause (i) does not apply,
      and on which any Class of Subordinate Certificates are outstanding:

                  (a) in the case of the Class of Subordinate Certificates then
            outstanding with the Highest Priority and each other Class of
            Subordinate Certificates for which the related Prepayment
            Distribution Trigger has been satisfied, a fraction, expressed as a
            percentage, the numerator of which is the Class Certificate Balance
            of such Class immediately prior to such date and the denominator of
            which is the sum of the Class Certificate Balances immediately prior
            to such date of (1) the Class of Subordinate Certificates then
            outstanding with the Highest Priority and (2) all other Classes of
            Subordinate Certificates for which the respective Prepayment
            Distribution Triggers have been satisfied; and

                  (b) in the case of each other Class of Subordinate
            Certificates for which the Prepayment Distribution Triggers have not
            been satisfied, 0%; and

            (iii) Notwithstanding the foregoing, if the application of the
      foregoing percentages on any Distribution Date as provided in Section 6.01
      of this Agreement (determined without regard to the proviso to the
      definition of "Subordinate Principal Distribution Amount") would result in
      a distribution in respect of principal of any Class or Classes of
      Subordinate Certificates in an amount greater than the remaining Class
      Certificate Balance thereof (any such class, a "Maturing Class"), then:
      (a) the Subordinate Prepayment Percentage of each Maturing Class shall be
      reduced to a level that, when applied as described above, would exactly
      reduce the Class Certificate Balance of such Class to zero; (b) the
      Subordinate Prepayment Percentage of each other Class of Subordinate
      Certificates (any such Class, a "Non-Maturing Class") shall be
      recalculated in accordance with the provisions in paragraph (ii) above, as
      if the Class Certificate Balance of each Maturing Class had been reduced
      to zero (such percentage as recalculated, the "Recalculated Percentage");
      (c) the total amount of the reductions in the Subordinate Prepayment
      Percentages of the Maturing Class or Classes pursuant to clause (a) of
      this sentence, expressed as an aggregate percentage, shall be allocated
      among the Non-Maturing Classes in proportion to their respective
      Recalculated Percentages (the portion of such aggregate reduction so
      allocated to any Non- Maturing Class, the "Adjustment Percentage"); and
      (d) for purposes of such Distribution Date, the Subordinate Prepayment
      Percentage of each Non-Maturing Class shall be equal to the sum of (1) the
      Subordinate Prepayment Percentage thereof, calculated in accordance with
      the provisions in paragraph (ii) above as if the Class Certificate Balance
      of each Maturing Class had not been reduced to zero, plus (2) the related
      Adjustment Percentage.

      Subordinate Principal Distribution Amount: With respect to any
Distribution Date and each Class of Class M Certificates and Class B
Certificates, the sum of the following:

                  (i) the product of (x) the related Class M Percentage or Class
      B Percentage for such Class and (y) the aggregate of the following
      amounts:

                        (1) the principal portion of each Monthly Payment due
            during the related Due Period on each Outstanding Mortgage Loan,
            whether or not

                                      -28-
<PAGE>

            received on or prior to the related Determination Date, minus the
            principal portion of any Debt Service Reduction which together with
            other Bankruptcy Losses exceeds the Bankruptcy Loss Coverage Amount;

                        (2) the Stated Principal Balance of any Mortgage Loan
            repurchased during the related Prepayment Period pursuant to Section
            2.02 or 2.03; and

                        (3) the principal portion of all other unscheduled
            collections (other than Principal Prepayments in Full and
            Curtailments and amounts received in connection with the liquidation
            or other disposition of a Mortgage Loan, including without
            limitation Insurance Proceeds, Liquidation Proceeds and REO
            Proceeds) received during the related Prepayment Period to the
            extent applied by the Servicer as recoveries of principal of the
            related Mortgage Loan pursuant to the Servicing Agreement;

                  (ii) such Class's pro rata share, based on the Class
      Certificate Balance of each Class of Class M Certificates and Class B
      Certificates then outstanding, of, with respect to each Mortgage Loan for
      which a liquidation or other disposition occurred during the related
      Prepayment Period and did not result in any Excess Losses, an amount equal
      to the related unscheduled collections (including without limitation
      Insurance Proceeds, Liquidation Proceeds and REO Proceeds) to the extent
      applied by the Servicer as recoveries of principal of the related Mortgage
      Loan pursuant to the Servicing Agreement, to the extent such collections
      are not otherwise distributed to the Senior Certificates;

                  (iii) the product of (x) the related Subordinate Prepayment
      Percentage for such Distribution Date and (y) the aggregate of all
      Principal Prepayments in Full and Curtailments of the Mortgage Loans
      received in the related Prepayment Period, to the extent not payable to
      the Senior Certificates; and

                  (iv) any amounts described in clauses (i), (ii) and (iii) as
      determined for any previous Distribution Date, that remain undistributed
      to the extent that such amounts are not attributable to Realized Losses
      which have been allocated to a Class of Subordinate Certificates;

provided, however, that such amount shall in no event exceed the outstanding
Class Certificate Balance of such Class of Certificates immediately prior to
such date.

      Subordination: As defined in Section 6.02(c).

      Subsequent Recoveries: Any amount recovered by a Servicer or the Master
Servicer (net of reimbursable expenses) with respect to a Liquidated Mortgage
Loan with respect to which a Realized Loss was incurred after the liquidation or
disposition of such Mortgage Loan.

      Substitute Mortgage Loan: A mortgage loan tendered to the Trustee pursuant
to the related Servicing Agreement, the Assignment, Assumption and Recognition
Agreement or Section 2.04 of this Agreement, as applicable, in each case, (i)
which has an Outstanding

                                      -29-
<PAGE>

Principal Balance, after application of all scheduled payments of principal and
interest due during or prior to the month of substitution, not in excess of the
Stated Principal Balance of the Mortgage Loan for which it is to be substituted
as of the Due Date in the calendar month during which the substitution occurs,
(ii) which has a Mortgage Interest Rate not less than (and not more than one
percentage point in excess of) the Mortgage Interest Rate of such Mortgage Loan,
(iii) which has a Net Mortgage Rate equal to or greater than the Net Mortgage
Rate of such Mortgage Loan, (iv) which has a remaining term to maturity not
greater than (and not more than one year less than) that of such Mortgage Loan,
(v) which has the same Due Date as the Due Date on such Mortgage Loan, (vi)
which has a Loan-to-Value Ratio as of the date of substitution equal to or lower
than the Loan-to-Value Ratio of such Mortgage Loan as of such date, (vii) be
covered under a Primary Insurance Policy if such Substitute Mortgage Loan has a
Loan-to-Value Ratio in excess of 80%, (viii) conform to each representation and
warranty set forth in Section 7.02 of the Servicing Agreement and (ix) be the
same type of mortgage loan (i.e. adjustable rate with the same Gross Margin and
Index as the Deleted Mortgage Loan). In the event that one or more mortgage
loans are substituted for one or more Mortgage Loans, the amounts described in
clause (i) hereof shall be determined on the basis of aggregate principal
balances, the Mortgage Interest Rates described in clause (ii) hereof shall be
determined on the basis of weighted average Mortgage Interest Rates, the Net
Mortgage Rates described in clause (iii) hereof shall be determined on the basis
of weighted average Net Mortgage Rates, the terms described in clause (iv) shall
be determined on the basis of weighted average remaining terms to maturity, the
Loan-to-Value Ratios described in clause (vi) 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 (viii) hereof
must be satisfied as to each Substitute Mortgage Loan or in the aggregate, as
the case may be.

      Tax Administration and Tax Matters Person: The Securities Administrator or
any successor thereto or assignee thereof shall serve as tax administrator
hereunder and as agent for the Tax Matters Person. The Holder of each Class of
Residual Certificates shall be the Tax Matters Person for the REMIC Trust, as
more particularly set forth in Section 9.12 hereof.

      Trustee: Wachovia Bank, National Association, or its successor in
interest, or any successor trustee appointed as herein provided.

      Trust Fund: The REMIC Trust.

      Undercollateralized Amount: On any Distribution Date, the excess of (x)
the aggregate Class Certificate Balance of any Class or Classes of Senior
Certificates immediately prior to such Distribution Date over (y) the aggregate
Stated Principal Balance of the Mortgage Loans as of the beginning of the
related Due Period.

      Undercollateralized Senior Certificates: As defined in Section 6.01(D).

      Underwriting Guidelines: The Underwriting Guidelines of the Originators,
attached to the Servicing Agreement as Exhibit 10, as amended from time to time.

      Uninsured Cause: Any cause of damage to a Mortgaged Property or related
REO Property such that the complete restoration of such Mortgaged Property or
related REO Property

                                      -30-
<PAGE>

is not fully reimbursable by the hazard insurance policies required to be
maintained pursuant the Servicing Agreement, without regard to whether or not
such policy is maintained.

      United States Person: A citizen or resident of the United States, a
corporation or partnership (including an entity treated as a corporation or
partnership for federal income tax purposes) created or organized in, or under
the laws of, the United States or any state thereof or the District of Columbia
(except, in the case of a partnership, to the extent provided in regulations),
provided that, for purposes solely of the Class R Certificates, no partnership
or other entity treated as a partnership for United States federal income tax
purposes shall be treated as a United States Person unless all persons that own
an interest in such partnership either directly or through any entity that is
not a corporation for United States federal income tax purposes are United
States Persons, or an estate whose income is subject to United States federal
income tax regardless of its source, or a trust if a court within the United
States is able to exercise primary supervision over the administration of the
trust and one or more such United States Persons have the authority to control
all substantial decisions of the trust. To the extent prescribed in regulations
by the Secretary of the Treasury, which have not yet been issued, a trust which
was in existence on August 20, 1996 (other than a trust treated as owned by the
grantor under subpart E of part I of subchapter J of chapter 1 of the Code), and
which was treated as a United States person on August 20, 1996 may elect to
continue to be treated as a United States person notwithstanding the previous
sentence.

      Voting Rights: The portion of the voting rights of all of the Certificates
which is allocated to any Certificate. The Voting Rights allocated among Holders
of such Certificates outstanding shall be the fraction, expressed as a
percentage, the numerator of which is the aggregate Class Certificate Balance of
all the Certificates of such Class then outstanding and the denominator of which
is the aggregate Class Certificate Balance of all the Certificates then
outstanding (other than the Class R Certificates). 99.50% of all Voting Rights
will be allocated among all holders of the Certificates (other than the Class R
Certificates) in proportion to their then outstanding Class Certificate
Balances, and 0.5% of all Voting Rights will be allocated among the holders of
the Class R Certificates in proportion to the Percentage Interests evidenced by
their Certificates; provided, however, that any Certificate registered in the
name of the Master Servicer, the Depositor or the Trustee or any of their
respective affiliates shall not be included in the calculation of Voting Rights.

      Section 1.01 Accounting.

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

                                      -31-
<PAGE>

                                   ARTICLE II
                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

      Section 2.01 Conveyance of Mortgage Loans to Trustee. (a) The Depositor
concurrently with the execution and delivery of this Agreement, sells, transfers
and assigns to the Trust without recourse all its right, title and interest in
and to (i) the Mortgage Loans identified in the Mortgage Loan Schedule,
including all interest and principal due with respect to the Mortgage Loans
after the Cut-off Date, but excluding any payments of principal and interest due
on or prior to the Cut-off Date; (ii) such assets as shall from time to time be
credited or are required by the terms of this Agreement to be credited to the
Master Servicer Collection Account, (iii) such assets relating to the Mortgage
Loans as from time to time may be held by the Servicer in Protected Accounts,
the Master Servicer in the Master Servicer Collection Account and the Trustee in
the Distribution Account for the benefit of the Trustee on behalf of the Regular
Certificateholders, (iv) any REO Property, (v) the Required Insurance Policies
and any amounts paid or payable by the insurer under any Insurance Policy (to
the extent the mortgagee has a claim thereto), (vi) the Assignment, Assumption
and Recognition Agreement to the extent provided in Subsection 2.03(a), (vii)
the rights with respect to the Servicing Agreement as assigned to the Depositor
by the Assignment, Assumption and Recognition Agreement and (viii) any proceeds
of the foregoing. Although it is the intent of the parties to this Agreement
that the conveyance of the Depositor's right, title and interest in and to the
Mortgage Loans and other assets in the Trust Fund pursuant to this Agreement
shall constitute a purchase and sale and not a loan, in the event that such
conveyance is deemed to be a loan, it is the intent of the parties to this
Agreement that the Depositor shall be deemed to have granted to the Trustee a
first priority perfected security interest in all of the Depositor's right,
title and interest in, to and under the Mortgage Loans and other assets in the
Trust Fund, and that this Agreement shall constitute a security agreement under
applicable law.

      (b) In connection with the above transfer and assignment, the Depositor
hereby deposits with the Trustee or the Custodian, as its agent, the following
documents or instruments (A) with respect to each Mortgage Loan, other than a
Cooperative Loan:

            (i) the original Mortgage Note, endorsed in the following form: "Pay
      to the order of Wachovia Bank, National Association, as Trustee for the
      registered holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
      Pass-Through Certificates, Series 2004-A4, without recourse," with all
      prior and intervening endorsements showing a complete chain of endorsement
      from the originator to the Person so endorsing to the Trustee;

            (ii) the original recorded Mortgage or a copy of the Mortgage
      certified by the public recording office in which such Mortgage has been
      recorded;

            (iii) an original Assignment of the Mortgage executed in the
      following form: "Wachovia Bank, National Association, as Trustee for the
      registered holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
      Pass-Through Certificates, Series 2004-A4.

                                      -32-
<PAGE>

            (iv) the original recorded Assignment or Assignments of the Mortgage
      showing a complete chain of assignment from the originator to the Person
      assigning the Mortgage to the Trustee as contemplated by the immediately
      preceding clause (iii), if applicable and only to the extent available to
      the Depositor with evidence of recording thereon;

            (v) the originals of all assumption, modification, consolidation or
      extension agreements, with evidence of recording thereon, if any;

            (vi) the original of any guarantee executed in connection with the
      Mortgage Note;

            (vii) the original mortgagee title insurance policy;

            (viii) the original of any security agreement, chattel mortgage or
      equivalent document executed in connection with the Mortgage; and

            (ix) the original power of attorney, if applicable.

      (B)   with respect to each Mortgage Loan that is a Cooperative Loan:

            (i) the original Mortgage Note, endorsed in the following form: "Pay
      to the order of Wachovia Bank, National Association, as Trustee for the
      registered holders of the Merrill Lynch Mortgage Investors, Inc., Mortgage
      Pass-Through Certificates, Series 2004-A4, without recourse," with all
      prior and intervening endorsements showing a complete chain of endorsement
      from the originator to the Person so endorsing to the Trustee;

            (ii) the original duly executed assignment of Security Agreement to
      the Trustee;

            (iii) the acknowledgment copy of the original executed Form UCC-1
      (or certified copy thereof) with respect to the Security Agreement, and
      any required continuation statements;

            (iv) the acknowledgment copy of the original executed Form UCC-3
      with respect to the security agreement, indicating the Trustee as the
      assignee of the secured party;

            (v) the stock certificate representing the Cooperative Assets
      allocated to the cooperative unit, with a stock power in blank attached;

            (vi) the original collateral assignment of the proprietary lease by
      Mortgagor to the originator;

            (vii) a copy of the recognition agreement;

                                      -33-
<PAGE>

            (viii) if applicable and to the extent available, the original
      intervening assignments, including warehousing assignments, if any,
      showing, to the extent available, an unbroken chain of the related
      Mortgage Loan to the Trustee, together with a copy of the related Form
      UCC-3 with evidence of filing thereon; and

            (ix) the originals of each assumption, modification or substitution
      agreement, if any, relating to the Mortgage Loan;

provided, however, that in lieu of the foregoing, the Depositor may deliver the
following documents, under the circumstances set forth below: (w) the Depositor
may deliver a Mortgage Note pursuant to (A)(i) and (B)(i) endorsed in blank,
provided that the endorsement is completed within 60 days of the Closing Date;
(x) in lieu of the original Mortgage, assignments to the Trustee or intervening
assignments thereof which have been delivered, are being delivered or will, upon
receipt of recording information relating to the Mortgage required to be
included thereon, be delivered to recording offices for recording and have not
been returned to the Depositor in time to permit their delivery as specified
above, the Depositor may deliver a true copy thereof with a certification by the
Depositor on the face of such copy, substantially as follows: "Certified to be a
true and correct copy of the original, which has been transmitted for
recording"; and (y) in lieu of the Mortgage, assignment to the Trustee or
intervening assignments thereof, if the applicable jurisdiction retains the
originals of such documents (as evidenced by a certification from the Depositor
or the Master Servicer, to such effect) the Depositor may deliver photocopies of
such documents containing an original certification by the judicial or other
governmental authority of the jurisdiction where such documents were recorded;
and provided, further, however, that in the case of Mortgage Loans which have
been prepaid in full after the Cut-off Date and prior to the Closing Date, the
Depositor, in lieu of delivering the above documents, may deliver to the Trustee
a certification to such effect and shall deposit all amounts paid in respect of
such Mortgage Loans in the Distribution Account on the Closing Date. The
Depositor shall deliver such original documents (including any original
documents as to which certified copies had previously been delivered) to the
Trustee promptly after they are received. The Depositor shall cause, at its
expense, the assignment of the Mortgage to the Trustee to be recorded not later
than 180 days after the Closing Date, unless such recordation is not required by
the Rating Agencies or an Opinion of Counsel has been provided as set forth
below in this Section 2.01. With respect to the Cooperative Loans, the Depositor
will, promptly after the Closing Date, cause the related financing statements
(if not yet filed) and an assignment thereof from the Depositor to the Trustee
to be filed in the appropriate offices. The Depositor need not cause to be
recorded any assignment in any jurisdiction under the laws of which, as
evidenced by an Opinion of Counsel delivered by the Depositor to the Trustee and
the Rating Agencies, the recordation of such assignment is not necessary to
protect the Trustee's interest in the related Mortgage Loan; provided, however,
notwithstanding the delivery of any Opinion of Counsel, each assignment shall be
submitted for recording by the Depositor in the manner described above, at no
expense to the Trust Fund, the Trustee or the Custodian, upon the earliest to
occur of: (i) reasonable direction by the Holders of Certificates evidencing
Percentage Interests aggregating not less than 25% of the Trust Fund, (ii) the
occurrence of an Event of Default, (iii) the occurrence of a bankruptcy,
insolvency or foreclosure relating to the Depositor, (iv) the occurrence of a
servicing transfer as described in Section 8.02 hereof and (v) with respect to
any one assignment, the occurrence of a bankruptcy, insolvency or foreclosure
relating to the Mortgagor under the related Mortgage. Notwithstanding the
foregoing, if the Depositor fails to

                                      -34-
<PAGE>

pay the cost of recording the assignments, such expense will be paid by the
Trustee and the Trustee shall be reimbursed for such expenses by the Trust Fund
in accordance with Section 9.05.

      If any original Mortgage Note referred to in Section 2.01(A)(i) or
2.01(B)(i) above cannot be located, the obligations of the Depositor to deliver
such documents shall be deemed to be satisfied upon delivery to the Trustee of a
photocopy of such Mortgage Note, if available, with a lost note affidavit. If
any of the original Mortgage Notes for which a lost note affidavit was delivered
to the Trustee is subsequently located, such original Mortgage Note shall be
delivered to the Trustee within three Business Days.

      (c) The parties hereto agree that it is not intended that any mortgage
loan be included in the Trust that is either (i) a "High-Cost Home Loan" as
defined in the New Jersey Home Ownership Act effective November 27, 2003 or (ii)
a "High-Cost Home Loan" as defined in the New Mexico Home Loan Protection Act
effective January 1, 2004.

      Section 2.02 Acceptance of Mortgage Loans by Trustee.

      (a) The Trustee acknowledges the sale, transfer and assignment of the
Trust to it by the Depositor and receipt of, subject to further review and the
exceptions which may be noted pursuant to the procedures described below, and
declares that it, or the Custodian on its behalf, holds the documents (or
certified copies thereof) delivered to it pursuant to Section 2.01, and declares
that it will continue to hold those documents and any amendments, replacements
or supplements thereto and all other assets of the Trust Fund delivered to it as
Trustee in trust for the use and benefit of all present and future Holders of
the Certificates. On or before the Closing Date (or, with respect to any
Substitute Mortgage Loan, within five Business Days after the receipt by the
Trustee or Custodian thereof), the Trustee agrees, for the benefit of the
Certificateholders, to review or cause to be reviewed by the Custodian on its
behalf (under the Custodial Agreement), each Mortgage File delivered to it and
to execute and deliver, or cause to be executed and delivered, to the Depositor
on the Closing Date an Initial Certification. In conducting such review, the
Trustee or Custodian will certify as to each Mortgage Loan listed in the
Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any
Mortgage Loan specifically identified in the exception report annexed thereto as
not being covered by such certification), (i) all documents constituting part of
such Mortgage File (other than such documents described in Section 2.01(A)(iii))
required to be delivered to it pursuant to this Agreement are in its possession,
provided that with respect to the documents described in Section 2.01(A)(v),
(vi), (viii) and (ix) and 2.01(B)(viii) and (ix) to the extent the Trustee or
the Custodian on its behalf has actual knowledge that such documents exist, (ii)
such documents have been reviewed by it and are not torn, mutilated, defaced or
otherwise altered (except if initialed by the obligor) and appear to relate on
their face to such Mortgage Loan, (iii) based on its examination and only as to
the foregoing, the information set forth in the Mortgage Loan Schedule
corresponding to the loan number for the Mortgage Loan, the Mortgagor's name,
including the street address but excluding the zip code, the Mortgage Interest
Rate and the original principal balance of the Mortgage Loan accurately reflects
information set forth in the Mortgage File and (iv) with respect to Mortgage
Loans with a Mortgage Interest Rate subject to adjustment, the gross margin, the
lifetime cap and the periodic cap for such Mortgage Loan. In

                                      -35-
<PAGE>
performing any such review, the Trustee, or the Custodian, as its agent, may
conclusively rely on the purported due execution and genuineness of any such
document and on the purported genuineness of any signature thereon.
Notwithstanding anything to the contrary in this Agreement, it is herein
acknowledged that, in conducting such review, the Trustee or the Custodian on
its behalf is under no duty or obligation to inspect, review or examine any such
documents, instruments, certificates or other papers to determine whether they
are genuine, enforceable, or appropriate for the represented purpose or whether
they have actually been recorded or that they are other than what they purport
to be on their face, or to determine whether any Person executing any documents
is authorized to do so or whether any signature is genuine. If the Trustee or
the Custodian, as its agent, finds any document constituting part of the
Mortgage File not to have been executed or received, or to be unrelated to the
Mortgage Loans identified in Exhibit B or to appear to be defective on its face,
the Trustee or the Custodian, as its agent, shall promptly notify the Seller. In
accordance with the representation made by the Seller in the Assignment,
Assumption and Recognition Agreement that the Seller has delivered to the
Depositor all documents required to be delivered in accordance with Section 6.03
of the Servicing Agreement, the Seller shall correct or cure any such defect
within ninety (90) days from the date of notice from the Trustee or the
Custodian, as its agent, of the defect and if the Seller fails to correct or
cure the defect within such period, and such defect materially and adversely
affects the interests of the Certificateholders in the related Mortgage Loan,
the Trustee, shall enforce the Seller's obligation pursuant to the
representation made by the Seller in the Assignment, Assumption and Recognition
Agreement, within 90 days from the Trustee's or the Custodian's notification, to
purchase such Mortgage Loan at the Purchase Price; provided that, if such defect
would cause the Mortgage Loan to be other than a "qualified mortgage" as defined
in Section 860G(a)(3) of the Code, any such cure or repurchase must occur within
90 days from the date such breach was discovered; provided, however, that if
such defect relates solely to the inability of the Seller to deliver the
original Security Instrument or intervening assignments thereof, or a certified
copy because the originals of such documents, or a certified copy have not been
returned by the applicable jurisdiction, the Seller shall not be required to
purchase such Mortgage Loan if the Seller delivers such original documents or
certified copy promptly upon receipt, but in no event later than 360 days after
the Closing Date. The foregoing repurchase obligation shall not apply in the
event that the Seller cannot deliver such original or copy of any document
submitted for recording to the appropriate recording office in the applicable
jurisdiction because such document has not been returned by such office;
provided that the Seller shall instead deliver a recording receipt of such
recording office or, if such receipt is not available, a certificate confirming
that such documents have been accepted for recording, and delivery to the
Trustee or the Custodian, as its agent, shall be effected by the Seller within
thirty days of its receipt of the original recorded document.

      (b) No later than 180 days after the Closing Date, the Trustee or the
Custodian, as its agent, will review, for the benefit of the Certificateholders,
the Mortgage Files delivered to it and will execute and deliver or cause to be
executed and delivered to the Depositor a Final Certification. In conducting
such review, the Trustee or the Custodian, as its agent, will certify as to each
Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan
paid in full or any Mortgage Loan specifically identified in the exception
report annexed thereto as not being covered by such certification), that (i) all
documents constituting part of such Mortgage File (other than such documents
described in Section 2.01(A)(v) and (ix)) required to be delivered to it
pursuant to this Agreement are in its possession, provided that with respect to
the documents described in Section 2.01(A)(v), (vi), (viii) and (ix) and
2.01(B)(viii and (ix) to

                                      -36-
<PAGE>

the extent the Trustee or the Custodian on its behalf has actual knowledge that
such documents exist, (ii) such documents have been reviewed by it and are not
torn, mutilated, defaced or otherwise altered (except if initialed by the
obligor) and appear regular on their face and relate to such Mortgage Loan,
(iii) based on its examination and only as to the foregoing, the information set
forth in the Mortgage Loan Schedule corresponding to the loan number for the
Mortgage Loan, the Mortgagor's name, including the street address but excluding
the zip code, the Mortgage Interest Rate and the original principal balance of
the Mortgage Loan accurately reflects information set forth in the Mortgage
File. In performing any such review, the Trustee, or the Custodian, as its
agent, may conclusively rely on the purported due execution and genuineness of
any such document and on the purported genuineness of any signature thereon.
Notwithstanding anything to the contrary in this Agreement, it is herein
acknowledged that, in conducting such review, the Trustee or the Custodian on
its behalf is under no duty or obligation (i) to inspect, review or examine any
such documents, instruments, certificates or other papers to determine whether
they are genuine, enforceable, or appropriate for the represented purpose or
whether they have actually been recorded or that they are other than what they
purport to be on their face, or to determine whether any Person executing any
documents is authorized to do so or whether any signature is genuine. If the
Trustee or the Custodian, as its agent, finds any document constituting part of
the Mortgage File not to have been executed or received, or to be unrelated to
the Mortgage Loans identified in Exhibit B or to appear to be defective on its
face, the Trustee or the Custodian, as its agent, shall promptly notify the
Seller. In accordance with the representation made by the Seller in the
Assignment, Assumption and Recognition Agreement to deliver the mortgage loans
in accordance with Section 6.03 of the Servicing Agreement, the Seller shall
correct or cure any such defect within 90 days from the date of notice from the
Trustee of the defect and if the Seller is unable to cure such defect within
such period, and if such defect materially and adversely affects the interests
of the Certificateholders in the related Mortgage Loan, the Trustee shall
enforce the Seller's obligation under the Assignment, Assumption and Recognition
Agreement to purchase such Mortgage Loan at the Purchase Price, provided,
however, that if such defect relates solely to the inability of the Seller to
deliver the original Security Instrument or intervening assignments thereof, or
a certified copy, because the originals of such documents or a certified copy,
have not been returned by the applicable jurisdiction, the Seller shall not be
required to purchase such Mortgage Loan, if the Seller delivers such original
documents or certified copy promptly upon receipt, but in no event later than
360 days after the Closing Date.

      (c) In the event that a Mortgage Loan is purchased by the Seller in
accordance with Subsections 2.02(a) or (b) above, the Seller shall remit to the
Master Servicer the Purchase Price for deposit in the Master Servicer Collection
Account and the Seller shall provide to the Trustee written notification
detailing the components of the Purchase Price. Upon deposit of the Purchase
Price in the Master Servicer Collection Account, the Depositor shall notify the
Trustee and the Custodian and the Trustee or the Custodian, as its agent (upon
receipt of a Request for Release in the form of Exhibit D attached hereto with
respect to such Mortgage Loan), shall release to the Seller the related Mortgage
File and the Trustee shall execute and deliver all instruments of transfer or
assignment, without recourse, furnished to it by the Seller as are necessary to
vest in the Seller title to and rights under the Mortgage Loan. Such purchase
shall be deemed to have occurred on the date on which the Purchase Price in
available funds is received by the Trustee. The Trustee shall amend the Mortgage
Loan Schedule, which was previously delivered to it by Depositor in a form
agreed to between the Depositor and the Trustee, to reflect such repurchase

                                      -37-
<PAGE>

and shall promptly notify the Rating Agencies and the Master Servicer of such
amendment. The obligation of the Seller to repurchase any Mortgage Loan as to
which such a defect in a constituent document exists shall be the sole remedy
respecting such defect available to the Certificateholders or to the Trustee on
their behalf.

      Section 2.03 Assignment of Interest in the Assignment, Assumption and
Recognition Agreement.

      (a) The Depositor hereby assigns to the Trustee, on behalf of the
Certificateholders, all of its right, title and interest in the Assignment,
Assumption and Recognition Agreement, including but not limited to Depositor's
rights and obligations pursuant to the Servicing Agreement. The obligations of
the Seller or the related Originators pursuant to the Assignment, Assumption and
Recognition Agreement or the Servicing Agreement, as applicable, to substitute
or repurchase a Mortgage Loan shall be the Trustee's and the Certificateholders'
sole remedy for any breach thereof. At the request of the Trustee, the Depositor
shall take such actions as may be necessary to enforce the above right, title
and interest on behalf of the Trustee and the Certificateholders or shall
execute such further documents as the Trustee may reasonably require in order to
enable the Trustee to carry out such enforcement.

      (b) If the Depositor, the Master Servicer, Securities Administrator or the
Trustee discovers a breach of any of the representations and warranties set
forth in Section 7.03 of the Servicing Agreement, which breach materially and
adversely affects the value of the interests of Certificateholders or the
Trustee in the related Mortgage Loan, the party discovering the breach shall
give prompt written notice of the breach to the other parties. The Seller or the
related Originator pursuant to the Assignment, Assumption and Recognition
Agreement or the related Servicing Agreement, as applicable, within 90 days of
its discovery or receipt of notice that such breach has occurred (whichever
occurs earlier), shall cure the breach in all material respects or, subject to
the Assignment, Assumption and Recognition Agreement, Servicing Agreement or
Section 2.04 of this Agreement, as applicable, shall purchase the Mortgage Loan
or any property acquired with respect thereto from the Trustee. The Depositor
shall notify the Trustee and submit to the Trustee or the Custodian, as its
agent, a Request for Release, and the Trustee shall release, or the Trustee
shall cause the Custodian to release, to such Seller or Originator, as
applicable, the related Mortgage File and the Trustee shall execute and deliver
all instruments of transfer or assignment furnished to it by such Seller or
Originator, without recourse, as are necessary to vest in such Seller or
Originator title to and rights under the Mortgage Loan or any property acquired
with respect thereto. Such purchase shall be deemed to have occurred on the date
on which the Purchase Price in available funds is received by the Trustee. The
Trustee or the Master Servicer shall amend the Mortgage Loan Schedule to reflect
such repurchase and shall promptly notify the Master Servicer and the Rating
Agencies of such amendment. Enforcement of the obligation of the Seller or
Originators to purchase (or substitute a Substitute Mortgage Loan for) any
Mortgage Loan or any property acquired with respect thereto (or pay the Purchase
Price as set forth in the above proviso) as to which a breach has occurred and
is continuing shall constitute the sole remedy respecting such breach available
to the Certificateholders or the Trustee on their behalf.

      Section 2.04 Substitution of Mortgage Loans. Notwithstanding anything to
the contrary in this Agreement, in lieu of purchasing a Mortgage Loan pursuant
to Section 7.03 of the

                                      -38-
<PAGE>

Servicing Agreement or Sections 2.02 or 2.03 of this Agreement, the Seller or
applicable Originator may, no later than the date by which such purchase by such
Seller or Originator would otherwise be required, tender to the Trustee a
Substitute Mortgage Loan; provided, however, that substitution pursuant to
Section 7.03 of the Servicing Agreement or Section 2.04 of this Agreement, as
applicable, in lieu of purchase shall not be permitted after the termination of
the two-year period beginning on the Startup Day; provided, further, that if the
breach would cause the Mortgage Loan to be other than a "qualified mortgage" as
defined in Section 860G(a)(3) of the Code, any such cure or substitution must
occur within 90 days from the date the breach was discovered. The Trustee or the
Custodian, as its agent, shall examine the Mortgage File for any Substitute
Mortgage Loan in the manner set forth in Section 2.02(a) and the Trustee or the
Custodian, as its agent, shall notify such Seller or Originator, in writing,
within five Business Days after receipt, whether or not the documents relating
to the Substitute mortgage Loan satisfy the requirements of the fourth sentence
of Subsection 2.02(a). Within one Business Day of receipt, such Seller or
Originator shall provide to the Trustee for deposit in the Distribution Account
the amount, if any, by which the Outstanding Principal Balance as of the next
preceding Due Date of the Mortgage Loan for which substitution is being made,
after giving effect to Scheduled Principal due on such date, exceeds the
Outstanding Principal Balance as of such date of the Substitute Mortgage Loan,
after giving effect to Scheduled Principal due on such date, which amount shall
be treated for the purposes of this Agreement as if it were the payment by the
Seller or the Originator of the Purchase Price for the purchase of a Mortgage
Loan by such Seller or Originator. After such notification to such Seller or
Originator and, if any such excess exists, upon receipt of such deposit, the
Trustee shall accept such Substitute Mortgage Loan which shall thereafter be
deemed to be a Mortgage Loan hereunder. In the event of such a substitution,
accrued interest on the Substitute Mortgage Loan for the month in which the
substitution occurs and any Principal Prepayments made thereon during such month
shall be the property of the Trust Fund and accrued interest for such month on
the Mortgage Loan for which the substitution is made and any Principal
Prepayments made thereon during such month shall be the property of the
applicable Originator. The Scheduled Principal on a Substitute Mortgage Loan due
on the Due Date in the month of substitution shall be the property of such
Originator and the Scheduled Principal on the Mortgage Loan for which the
substitution is made due on such Due Date shall be the property of the Trust
Fund. Upon acceptance of the Substitute Mortgage Loan (and delivery to the
Trustee or Custodian of a Request for Release for such Mortgage Loan), the
Trustee shall release to the Originator the related Mortgage File related to any
Mortgage Loan released pursuant to the Assignment, Assumption and Recognition
Agreement or Section 2.04 of this Agreement, as applicable, and shall execute
and deliver all instruments of transfer or assignment, without recourse, in form
as provided to it as are necessary to vest in the Originator title to and rights
under any Mortgage Loan released pursuant to the Servicing Agreement or Section
2.04 of this Agreement, as applicable. The Originator shall deliver the
documents related to the Substitute Mortgage Loan in accordance with the
provisions of the Servicing Agreement or Subsections 2.01(b) and 2.02(b) of this
Agreement, as applicable, with the date of acceptance of the Substitute Mortgage
Loan deemed to be the Closing Date for purposes of the time periods set forth in
those Subsections. The representations and warranties set forth in the Servicing
Agreement shall be deemed to have been made by the applicable Originator with
respect to each Substitute Mortgage Loan as of the date of acceptance of such
Mortgage Loan by the Trustee. The Master Servicer shall amend the Mortgage Loan
Schedule to

                                      -39-
<PAGE>

reflect such substitution and shall provide a copy of such amended Mortgage Loan
Schedule to the Trustee and the Rating Agencies.

      Section 2.05 Issuance of Certificates.

            The Trustee acknowledges the assignment to it on behalf of the Trust
Fund of the Mortgage Loans and the other assets comprising the Trust Fund and,
concurrently therewith, has signed, and countersigned and delivered to the
Depositor, in exchange therefor, Certificates in such authorized denominations
representing such Percentage Interests as the Depositor has requested. The
Trustee agrees that it will hold the Mortgage Loans and such other assets as may
from time to time be delivered to it segregated on the books of the Trustee in
trust for the benefit of the Certificateholders.

      Section 2.06 Representations and Warranties Concerning the Depositor. The
Depositor hereby represents and warrants to the Trustee, the Master Servicer and
the Securities Administrator as follows:

            (i) the Depositor (a) is a corporation duly organized, validly
      existing and in good standing under the laws of the State of Delaware and
      (b) is qualified and in good standing as a foreign corporation to do
      business in each jurisdiction where such qualification is necessary,
      except where the failure so to qualify would not reasonably be expected to
      have a material adverse effect on the Depositor's business as presently
      conducted or on the Depositor's ability to enter into this Agreement and
      to consummate the transactions contemplated hereby;

            (ii) the Depositor has 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;

            (iii) the execution and delivery by the Depositor of this Agreement
      have been duly authorized by all necessary corporate action on the part of
      the Depositor; and neither the execution and delivery of this Agreement,
      nor the consummation of the transactions herein contemplated, nor
      compliance with the provisions hereof, will conflict with or result in a
      breach of, or constitute a default under, any of the provisions of any
      law, governmental rule, regulation, judgment, decree or order binding on
      the Depositor or its properties or the articles of incorporation or
      by-laws of the Depositor, except those conflicts, breaches or defaults
      which would not reasonably be expected to have a material adverse effect
      on the Depositor's ability to enter into this Agreement and to consummate
      the transactions contemplated hereby;

            (iv) the execution, delivery and performance by the Depositor of
      this Agreement and the consummation of the transactions contemplated
      hereby do not require the consent or approval of, the giving of notice to,
      the registration with, or the taking of any other action in respect of,
      any state, federal or other governmental authority or agency, except those
      consents, approvals, notices, registrations or other actions as have
      already been obtained, given or made;

                                      -40-
<PAGE>

            (v) this Agreement has been duly executed and delivered by the
      Depositor and, assuming due authorization, execution and delivery by the
      other parties hereto, constitutes a valid and binding obligation of the
      Depositor enforceable against it in accordance with its terms (subject to
      applicable bankruptcy and insolvency laws and other similar laws affecting
      the enforcement of the rights of creditors generally);

            (vi) there are no actions, suits or proceedings pending or, to the
      knowledge of the Depositor, threatened against the Depositor, before or by
      any court, administrative agency, arbitrator or governmental body (i) with
      respect to any of the transactions contemplated by this Agreement or (ii)
      with respect to any other matter which in the judgment of the Depositor
      will be determined adversely to the Depositor and will if determined
      adversely to the Depositor materially and adversely affect the Depositor's
      ability to enter into this Agreement or perform its obligations under this
      Agreement; and the Depositor is not in default with respect to any order
      of any court, administrative agency, arbitrator or governmental body so as
      to materially and adversely affect the transactions contemplated by this
      Agreement; and

            (vii) immediately prior to the transfer and assignment to the
      Trustee, each Mortgage Note and each Mortgage were not subject to an
      assignment or pledge, and the Depositor had good and marketable title to
      and was the sole owner thereof and had full right to transfer and sell
      such Mortgage Loan to the Trustee free and clear of any encumbrance,
      equity, lien, pledge, charge, claim or security interest.

                                      -41-
<PAGE>

                                  ARTICLE III
                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

      Section 3.01 Master Servicer. The Master Servicer shall supervise, monitor
and oversee the obligation of the Servicer to service and administer their
respective Mortgage Loans in accordance with the terms of the Servicing
Agreement and shall have full power and authority to do any and all things which
it may deem necessary or desirable in connection with such master servicing and
administration. In performing its obligations hereunder, the Master Servicer
shall act in a manner consistent with 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 such Servicer under the Servicing 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, the
Master Servicer shall provide such information to the Securities Administrator
as shall be necessary in order for it to prepare the statements specified in
Section 6.04, and prepare any other information and statements required to be
forwarded 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 Protected Account pursuant to the Servicing Agreement.

      The Trustee shall furnish the Servicer and 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 the Master Servicer to
service and administer the related Mortgage Loans and REO Property. The Trustee
shall have no liability with respect to the use of any such limited power of
attorney.

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

      The Trustee shall execute and deliver to the Servicer and the Master
Servicer upon request any court pleadings, requests for trustee's sale or other
documents necessary or desirable to (i) the foreclosure or trustee's sale with
respect to a Mortgaged Property; (ii) any legal action brought to obtain
judgment against any Mortgagor on the Mortgage Note or Security Instrument;

                                      -42-
<PAGE>

(iii) obtain a deficiency judgment against the Mortgagor; or (iv) enforce any
other rights or remedies provided by the Mortgage Note or Security Instrument or
otherwise available at law or equity.

      Section 3.02 REMIC-Related Covenants. For as long as the REMIC Trust shall
exist, the Trustee and the Securities Administrator shall act in accordance
herewith to assure continuing treatment of such REMIC Trust as a REMIC, and the
Trustee and the Securities Administrator shall comply with any directions of the
Depositor, the Servicer or the Master Servicer to assure such continuing
treatment. In particular, the Trustee shall not (a) sell or permit the sale of
all or any portion of the Mortgage Loans or of any investment of deposits in an
Account unless such sale is as a result of a repurchase of the Mortgage Loans
pursuant to this Agreement or the Trustee has received a REMIC Opinion prepared
at the expense of the Trust Fund; and (b) other than with respect to a
substitution pursuant to the Assignment, Assumption and Recognition Agreement or
Section 2.04 of this Agreement, as applicable, accept any contribution to the
REMIC Trust after the Startup Day without receipt of a REMIC Opinion.

      Section 3.03 Monitoring of Servicer. (a) The Master Servicer shall be
responsible for reporting to the Trustee and the Depositor the compliance by the
Servicer with its duties under the Servicing 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 such Servicer's compliance with the
terms of its Servicing Agreement. In the event that the Master Servicer, in its
judgment, determines that a Servicer should be terminated in accordance with its
Servicing Agreement, or that a notice should be sent pursuant to such Servicing
Agreement with respect to the occurrence of an event that, unless cured, would
constitute grounds for such termination, the Master Servicer shall notify the
Depositor and the Trustee thereof and the Master Servicer shall issue such
notice or take such other action as it deems appropriate.

      (b) The Master Servicer, for the benefit of the Trustee and the
Certificateholders, shall enforce the obligations of the Servicer under the
Servicing Agreement, and shall, in the event that a Servicer fails to perform
its obligations in accordance with the Servicing Agreement, subject to the
preceding paragraph, terminate the rights and obligations of such Servicer
thereunder and act as servicer of the related Mortgage Loans or to cause the
Trustee to enter in to a new Servicing Agreement with a successor Servicer
selected by the Master Servicer; provided, however, it is understood and
acknowledged by the parties hereto that there will be a period of transition
(not to exceed 90 days) before the actual servicing functions can be fully
transferred to such successor Servicer. Such enforcement, including, without
limitation, the legal prosecution of claims, termination of the Servicing
Agreement and the pursuit of other appropriate remedies, shall be in such form
and carried out to such an extent and at such time as the Master Servicer, in
its good faith business judgment, would require were it the owner of the related
Mortgage Loans. The Master Servicer shall pay the costs of such enforcement at
its own expense subject to Section 3.03(c), provided that the Master Servicer
shall not be required to prosecute or defend any legal action except to the
extent that the Master Servicer shall have received reasonable indemnity for its
costs and expenses in pursuing such action.

      (c) To the extent that the costs and expenses of the Master Servicer
related to any termination of a Servicer, appointment of a successor Servicer or
the transfer and assumption of servicing by the Master Servicer with respect to
the Servicing Agreement (including, without

                                      -43-
<PAGE>

limitation, (i) all legal costs and expenses and all due diligence costs and
expenses associated with an evaluation of the potential termination of the
Servicer as a result of an event of default by such Servicer and (ii) all costs
and expenses associated with the complete transfer of servicing, including all
servicing files and all servicing data and the completion, correction or
manipulation of such servicing data as may be required by the successor servicer
to correct any errors or insufficiencies in the servicing data or otherwise to
enable the successor service to service the Mortgage Loans in accordance with
the Servicing Agreement) are not fully and timely reimbursed by the terminated
Servicer, the Master Servicer shall be entitled to reimbursement of such costs
and expenses from the Master Servicer Collection Account pursuant to Section
4.03(b).

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

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

      Section 3.04 Fidelity Bond. The Master Servicer, at its expense, shall
maintain in effect a blanket fidelity bond and an errors and omissions insurance
policy, affording coverage with respect to all directors, officers, employees
and other Persons acting on such Master Servicer's behalf, and covering errors
and omissions in the performance of the Master Servicer's obligations hereunder.
The errors and omissions insurance policy and the fidelity bond shall be in such
form and amount generally acceptable for entities serving as master servicers or
trustees.

      Section 3.05 Power to Act; Procedures. The Master Servicer shall master
service the Mortgage Loans and shall have full power and authority, subject to
the REMIC Provisions and the provisions of Article X hereof, to do any and all
things that it may deem necessary or desirable in connection with the master
servicing and administration of the Mortgage Loans, including but not limited to
the power and authority (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages, (iii) to
collect any Insurance Proceeds and Liquidation Proceeds, and (iv) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan, in each case, in accordance with the provisions of
this Agreement and the Servicing Agreement, as applicable; provided, however,
that the Master Servicer shall not (and, consistent with its responsibilities
under Section 3.03, shall not permit the Servicer to) knowingly or intentionally
take any action, or fail to take (or fail to cause to be taken) any action
reasonably within its control and the scope of duties more specifically set
forth herein, that, under the REMIC Provisions, if taken or not taken, as the
case may be, would cause the REMIC Trust to fail to qualify as a REMIC or result
in the imposition of a tax upon the Trust Fund (including but not limited to the
tax on prohibited transactions as defined in Section 860F(a)(2) of the Code and
the tax on contributions to a REMIC set forth in Section 860G(d) of the Code)
unless the Master Servicer has received an Opinion of Counsel (but not at the
expense of the Master Servicer) to the effect that the contemplated action will
not would cause the REMIC Trust to fail to qualify as a REMIC or result in the
imposition of a tax upon the REMIC Trust. The Trustee shall furnish the Master
Servicer, upon written request from a Servicing Officer, with any limited powers
of attorney empowering the Master Servicer or the

                                      -44-
<PAGE>

Servicer to execute and deliver instruments of satisfaction or cancellation, or
of partial or full release or discharge, and to foreclose upon or otherwise
liquidate Mortgaged Property, and to appeal, prosecute or defend in any court
action relating to the Mortgage Loans or the Mortgaged Property, in accordance
with the Servicing Agreement and this Agreement, and the Trustee shall execute
and deliver such other documents, as the Master Servicer may request, to enable
the Master Servicer to master service and administer the Mortgage Loans and
carry out its duties hereunder, in each case in accordance with Accepted Master
Servicing Practices (and the Trustee shall have no liability for misuse of any
such powers of attorney by the Master Servicer or the Servicer). If the Master
Servicer or the Trustee has been advised that it is likely that the laws of the
state in which action is to be taken prohibit such action if taken in the name
of the Trustee or that the Trustee would be adversely affected under the "doing
business" or tax laws of such state if such action is taken in its name, the
Master Servicer shall join with the Trustee in the appointment of a co-trustee
pursuant to Section 9.11 hereof. In the performance of its duties hereunder, the
Master Servicer shall be an independent contractor and shall not, except in
those instances where it is taking action in the name of the Trustee, be deemed
to be the agent of the Trustee.

      Section 3.06 Due-on-Sale Clauses; Assumption Agreements. To the extent
provided in the Servicing Agreement, to the extent Mortgage Loans contain
enforceable due-on-sale clauses, the Master Servicer shall cause the Servicer to
enforce such clauses in accordance with the Servicing Agreement. If applicable
law prohibits the enforcement of a due-on-sale clause or such clause is
otherwise not enforced in accordance with the Servicing Agreement, and, as a
consequence, a Mortgage Loan is assumed, the original Mortgagor may be released
from liability in accordance with the Servicing Agreement.

      Section 3.07 Release of Mortgage Files. (a) Upon becoming aware of the
payment in full of any Mortgage Loan, or the receipt by the Servicer of a
notification that payment in full has been escrowed in a manner customary for
such purposes for payment to Certificateholders on the next Distribution Date,
the Servicer or the Master Servicer will furnish to the Custodian, on behalf of
the Trustee, two copies of a certification substantially in the form of Exhibit
D hereto signed by a Servicing Officer or in a mutually agreeable electronic
format which will, in lieu of a signature on its face, originate from a
Servicing Officer (which certification shall include a statement to the effect
that all amounts received in connection with such payment that are required to
be deposited in the Protected Account maintained by the Servicer pursuant to
Section 4.01 or by the Servicer pursuant to its Servicing Agreement have been or
will be so deposited) and shall request that the Custodian, on behalf of the
Trustee, deliver to the Servicer the related Mortgage File. Upon receipt of such
certification and request, the Custodian, on behalf of the Trustee, shall
promptly and no later than five Business Days (or, to the extent that the
Servicer notifies the Seller that a document is not in the Servicer's possession
as part of the Servicing File which is needed for purposes of the Servicer
complying with any applicable law, within such shorter period as may be
necessary to enable the Servicer to comply with such law) release the related
Mortgage File to the Servicer and the Trustee and Custodian shall have no
further responsibility with regard to such Mortgage File. Upon any such payment
in full, the Servicer is authorized, to give, as agent for the Trustee, as the
mortgagee under the Mortgage that secured the Mortgage Loan, an instrument of
satisfaction (or assignment of mortgage without recourse) regarding the
Mortgaged Property subject to the Mortgage, which instrument of satisfaction or
assignment, as the case may be, shall be delivered to the Person or Persons
entitled thereto

                                      -45-
<PAGE>

against receipt therefor of such payment, it being understood and agreed that no
expenses incurred in connection with such instrument of satisfaction or
assignment, as the case may be, shall be chargeable to the Protected Account.

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

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

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

                                      -46-
<PAGE>

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

      Section 3.09 Standard Hazard Insurance and Flood Insurance Policies.

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

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

      Section 3.10 Presentment of Claims and Collection of Proceeds. The Master
Servicer shall (to the extent provided in the Servicing Agreement) cause the
Servicer to, prepare and present on behalf of the Trustee and the
Certificateholders all claims under the Insurance Policies and take such actions
(including the negotiation, settlement, compromise or enforcement of the
insured's claim) as shall be necessary to realize recovery under such policies.
Any proceeds disbursed to the Master Servicer (or disbursed to a Servicer and
remitted to the Master Servicer) in respect of such policies, bonds or contracts
shall be promptly deposited in the Master Servicer Collection Account upon
receipt, except that any amounts realized that are to be applied to the repair
or restoration of the related Mortgaged Property as a condition precedent to the
presentation of claims on the related Mortgage Loan to the insurer under any
applicable Insurance Policy need not be so deposited (or remitted).

      Section 3.11 Maintenance of the Primary Mortgage Insurance Policies.

                                      -47-
<PAGE>

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

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

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

      The Trustee or the Custodian 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 Certificates have
been distributed in full and the Master Servicer otherwise has fulfilled its
obligations under this Agreement, the Trustee or its 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 Trustee or 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 portions of the Mortgage File that come into the possession of
the Master Servicer from time to time.

      Section 3.13 Realization Upon Defaulted Mortgage Loans. The Master
Servicer shall cause the Servicer (to the extent required under the Servicing
Agreement) to foreclose upon, repossess or otherwise comparably convert the
ownership of Mortgaged Properties securing such of the Mortgage Loans as come
into and continue in default and as to which no satisfactory arrangements can be
made for collection of delinquent payments, all in accordance with the terms and
conditions of the Servicing Agreement.

      Section 3.14 Compensation for the Master Servicer.

                                      -48-
<PAGE>

      The Master Servicer will be entitled to all income and gain realized from
any investment of funds in the Distribution Account and the Master Servicer
Collection Account, pursuant to Article IV, for the performance of its
activities hereunder. Servicing compensation in the form of assumption fees, if
any, late payment charges, as collected, if any, or otherwise (but not including
any prepayment premium or penalty) shall be retained by the Servicer and shall
not be deposited in the Protected Account. The Master Servicer shall be required
to pay all expenses incurred by it in connection with its activities hereunder
and shall not be entitled to reimbursement therefor except as provided in this
Agreement.

      Section 3.15 REO Property.

      (a) In the event the Trust Fund acquires ownership of any REO Property in
respect of any related Mortgage Loan, the deed or certificate of sale shall be
issued to the Trustee, or to its nominee, on behalf of the related
Certificateholders. The Master Servicer shall, to the extent provided in the
Servicing Agreement, cause the Servicer to sell, any REO Property as
expeditiously as possible and in accordance with the provisions of this
Agreement and the Servicing Agreement, as applicable. Pursuant to its efforts to
sell such REO Property, the Master Servicer shall cause the Servicer to protect
and conserve, such REO Property in the manner and to the extent required by the
Servicing Agreement, in accordance with the REMIC Provisions and in a manner
that does not result in a tax on "net income from foreclosure property" or cause
such REO Property to fail to qualify as "foreclosure property" within the
meaning of Section 860G(a)(8) of the Code.

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

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

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

      Section 3.16 Annual Officer's Certificate as to Compliance.

      (a) The Master Servicer shall deliver to the Trustee and the Rating
Agencies on or before February 28 of each year, commencing on February 28, 2005,
an Officer's Certificate, certifying that with respect to the period ending
December 31 of the prior year: (i) such Servicing

                                      -49-
<PAGE>

Officer has reviewed the activities of such Master Servicer during the preceding
calendar year or portion thereof and its performance under this Agreement, (ii)
to the best of such Servicing Officer's knowledge, based on such review, such
Master Servicer has performed and fulfilled its duties, responsibilities and
obligations under this Agreement in all material respects throughout such year,
or, if there has been a default in the fulfillment of any such duties,
responsibilities or obligations, specifying each such default known to such
Servicing Officer and the nature and status thereof, (iii) nothing has come to
the attention of such Servicing Officer to lead such Servicing Officer to
believe that the Servicer has failed to perform any of its duties,
responsibilities and obligations under its Servicing 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.

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

      Section 3.17 Annual Independent Accountant's Servicing Report. If the
Master Servicer has, during the course of any fiscal year, directly serviced any
of the Mortgage Loans, then the Master Servicer at its expense shall cause a
nationally recognized firm of independent certified public accountants to
furnish a statement to the Trustee, the Rating Agencies and the Depositor on or
before February 28 of each year, commencing on February 28, 2005 to the effect
that, with respect to the most recently ended fiscal year, such firm has
examined certain records and documents relating to the Master Servicer's
performance of its servicing obligations under this Agreement and pooling and
servicing and trust agreements in material respects similar to this Agreement
and to each other and that, on the basis of such examination conducted
substantially in compliance with the audit program for mortgages serviced for
Freddie Mac or the Uniform Single Attestation Program for Mortgage Bankers, such
firm is of the opinion that the Master Servicer's activities have been conducted
in compliance with this Agreement, or that such examination has disclosed no
material items of noncompliance except for (i) such exceptions as such firm
believes to be immaterial, (ii) such other exceptions as are set forth in such
statement and (iii) such exceptions that the Uniform Single Attestation Program
for Mortgage Bankers or the Audit Program for Mortgages Serviced by Freddie Mac
requires it to report. Copies of such statements shall be provided to any
Certificateholder upon request by the Master Servicer, or by the Trustee at the
expense of the Master Servicer if the Master Servicer shall fail to provide such
copies. If such report discloses exceptions that are material, the Master
Servicer shall advise the Trustee whether such exceptions have been or are
susceptible of cure, and will take prompt action to do so.

      Section 3.18 Reports Filed with Securities and Exchange Commission.

      (a) Within 15 days after each Distribution Date, the Master Servicer
shall, in accordance with industry standards, file with the Commission via the
Electronic Data Gathering and Retrieval System ("EDGAR"), a Form 8-K (or other
comparable form containing the same or comparable information or other
information mutually agreed upon) with a copy of the

                                      -50-
<PAGE>

statement to the Trustee who shall make available on its website a copy of the
statement to the Certificateholders for such Distribution Date as an exhibit
thereto. Prior to March 30, 2005 (and each year thereafter unless a Form 15D
Suspension Notification has been filed pursuant to Section 3.18(d) below), the
Master Servicer shall prepare and file a Form 10-K, in substance conforming to
industry standards, with respect to the Trust Fund. Each such Form 10-K shall
include as exhibits the Servicer's annual statement of compliance and annual
accountant's report as described in the Servicing Agreement, in each case to the
extent timely delivered to the Master Servicer. If they are not so timely
delivered, the Master Servicer shall file an amended Form 10-K including such
documents as exhibits reasonably promptly after they are delivered to the Master
Servicer. The Form 10-K shall also include a certification in the form attached
hereto as Exhibit K, in compliance with Rules 13a-14 and 15d-14 under the
Securities Exchange Act of 1934, as amended (the "Exchange Act") and any
additional directives of the Commission, which shall be signed by a Servicing
Officer of the Master Servicer. The Depositor hereby grants to the Master
Servicer a limited power of attorney to execute and file the Form 8-K and Form
10-K on behalf of the Depositor. Such power of attorney shall continue until
either the earlier of (i) receipt by the Master Servicer from the Depositor of
written termination of such power of attorney and (ii) the termination of the
Trust Fund. The Depositor agrees to promptly furnish to the Master Servicer,
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 Master Servicer reasonably deems appropriate to prepare and file all
necessary reports with the Commission. Notwithstanding the foregoing sentence,
the Master Servicer shall have no responsibility to file any items other than
those specified in this Section 3.18; provided, however, the Master Servicer
will cooperate with the Depositor in connection with any additional filings with
respect to the Trust Fund as the Depositor deems necessary under the Exchange
Act. Copies of all reports filed by the Master Servicer under the Exchange Act
shall be sent to: the Depositor c/o Merrill Lynch & Co. Inc. Attn: Managing
Director-Analysis and Control. Fees and expenses incurred by the Master Servicer
in connection with this Section 3.18 shall not be reimbursable from the Trust
Fund except as pursuant to Sections 7.04(c) hereof.

      (b) The Master Servicer shall indemnify and hold harmless the Trustee, the
Depositor and their respective officers, directors and Affiliates from and
against any losses, damages, penalties, fines, forfeitures, reasonable and
necessary legal fees and related costs, judgments and other costs and expenses
arising out of or based upon a breach of the Master Servicer's obligations under
this Section 3.18 or the Master Servicer's negligence, bad faith or willful
misconduct in connection therewith.

      (c) If, after the Closing Date (a) the Sarbanes-Oxley Act of 2002 is
amended, (b) Rules 13a-14 and 15d-14 under the Exchange Act and any related
directives of the Commission are modified or superseded by any subsequent
statement, rule, directive or regulation of the Commission or any division
thereof, or (c) any future releases, rules and regulations are published by the
Commission from time to time pursuant to the Sarbanes-Oxley Act of 2002, which
in any such case affect the form or substance of the required certification
under Rule 13a-14 and 15d-14 of the Exchange Act such that, in the reasonable
judgment of the Master Servicer, the required certification is materially more
onerous than the form of the requirement attached hereto as Exhibit K as of the
Closing Date, the Master Servicer, the Depositor and the Mortgage Loan Seller
shall negotiate in good faith to determine how to amend the certification
attached hereto as Exhibit K or any of the provisions in this Section 3.18 to
comply with any such new

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<PAGE>

requirements. Notwithstanding any other provision of this Agreement, the
provisions of this Section 3.18 may be amended by the Depositor, the Master
Servicer and the Trustee without the consent of the Certificateholders.

      (d) Prior to January 30th of the first year in which the Master Servicer
is able to do so under applicable law, the Master Servicer shall file with the
Commission a Form 15D Suspension Notification with respect to the Trust Fund.

                                      -52-
<PAGE>

                                   ARTICLE IV
                                    ACCOUNTS

      Section 4.01 Protected Accounts. (a) The Master Servicer shall enforce the
obligation of the Servicer to establish and maintain a Protected Account in
accordance with the Servicing Agreement, with records to be kept with respect
thereto on a Mortgage Loan by Mortgage Loan basis, into which accounts shall be
deposited within 48 hours (or as of such other time specified in the Servicing
Agreement) of receipt all collections of principal and interest on any Mortgage
Loan and with respect to any REO Property received by a Servicer, including
Principal Prepayments, Insurance Proceeds, Liquidation Proceeds, Subsequent
Recoveries and advances made from the Servicer's own funds (less servicing
compensation as permitted by the Servicing Agreement in the case of the
Servicer) and all other amounts to be deposited in the Protected Account. The
Servicer is hereby authorized to make withdrawals from and deposits to the
related Protected Account for purposes required or permitted by this Agreement.
To the extent provided in the Servicing Agreement, the Protected Account shall
be held in a Designated Depository Institution and segregated on the books of
such institution in the name of the Trustee for the benefit of
Certificateholders.

      (b) To the extent provided in the Servicing Agreement, amounts on deposit
in a Protected Account may be invested in Permitted Investments in the name of
the Trustee for the benefit of Certificateholders and, except as provided in the
preceding paragraph, not commingled with any other funds, such Permitted
Investments to mature, or to be subject to redemption or withdrawal, no later
than the date on which such funds are required to be withdrawn for deposit in
the Master Servicer Collection Account, and shall be held until required for
such deposit. The income earned from Permitted Investments made pursuant to this
Section 4.01 shall be paid to the Servicer under the Servicing Agreement, and
the risk of loss of moneys required to be distributed to the Certificateholders
resulting from such investments shall be borne by and be the risk of the
Servicer, as set forth in the Servicing Agreement. The Servicer (to the extent
provided in the Servicing Agreement) shall deposit the amount of any such loss
in the Protected Account within two Business Days of receipt of notification of
such loss but not later than the second Business Day prior to the Distribution
Date on which the moneys so invested are required to be distributed to the
Certificateholders.

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

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

            (ii) Principal Prepayments in Full and any Liquidation Proceeds
      received by the Servicer with respect to such Mortgage Loans in the
      related Prepayment Period, with

                                      -53-
<PAGE>

      interest to the date of prepayment or liquidation, net of the amount
      thereof comprising the Servicing Fees;

            (iii) Curtailments received by the Servicer for such Mortgage Loans
      in the related Prepayment Period; and

            (iv) Any amount to be used as a MonthlyAdvance.

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

      Section 4.02 Master Servicer Collection Account. (a) The Master Servicer
shall establish and maintain in the name of the Trustee, for the benefit of the
Certificateholders, the Master Servicer Collection Account as a segregated trust
account or accounts. The Master Servicer will deposit in the Master Servicer
Collection Account as identified by the Master Servicer and as received by the
Master Servicer, the following amounts:

            (i) Any amounts withdrawn from a Protected Account or other
      permitted account;

            (ii) Any Monthly Advance and any Compensating Interest Payments;

            (iii) Any Insurance Proceeds, Liquidation Proceeds or Subsequent
      Recoveries received by or on behalf of the Master Servicer or which were
      not deposited in a Protected Account or other permitted account;

            (iv) The repurchase price with respect to any Mortgage Loans
      repurchased and all proceeds of any Mortgage Loans or property acquired in
      connection with the optional termination of the trust;

            (v) Any amounts required to be deposited with respect to losses on
      investments of deposits in an Account; and

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

      (b) All amounts deposited to the Master Servicer Collection Account shall
be held by the Master Servicer in the name of the Trustee in trust for the
benefit of the Certificateholders in accordance with the terms and provisions of
this Agreement. The requirements for crediting the Master Servicer Collection
Account or the Distribution Account shall be exclusive, it being understood and
agreed that, without limiting the generality of the foregoing, payments in the

                                      -54-
<PAGE>

nature of (i) prepayment or late payment charges or assumption, tax service,
statement account or payoff, substitution, satisfaction, release and other like
fees and charges and (ii) the items enumerated in Subsections 4.05(a)(i), (ii),
(iii), (iv), (vi), (vii), (viii), (ix), (xi) and (xii) with respect to the
Securities Administrator, need not be credited by the Master Servicer or the
Servicer to the Distribution Account or the Master Servicer Collection Account,
as applicable. In the event that the Master Servicer shall deposit or cause to
be deposited to the Distribution Account any amount not required to be credited
thereto, the Trustee, upon receipt of a written request therefor signed by a
Servicing Officer of the Master Servicer, shall promptly transfer such amount to
the Master Servicer from the Distribution Account, any provision herein to the
contrary notwithstanding.

      (c) The amount at any time credited to the Master Servicer Collection
Account shall be invested, in the name of the Trustee, or its nominee, for the
benefit of the Certificateholders, in Permitted Investments as directed by
Master Servicer. All Permitted Investments shall mature or be subject to
redemption or withdrawal on or before, and shall be held until, the next
succeeding Distribution Account Deposit Date. Any and all investment earnings on
amounts on deposit in the Master Servicer Collection Account from time to time
shall be for the account of the Master Servicer. The Master Servicer from time
to time shall be permitted to withdraw or receive distribution of any and all
investment earnings from the Master Servicer Account. The risk of loss of moneys
required to be distributed to the Certificateholders resulting from such
investments shall be borne by and be the risk of the Master Servicer. The Master
Servicer shall deposit the amount of any such loss in the Master Servicer
Collection Account within two Business Days of receipt of notification of such
loss but not later than the second Business Day prior to the Distribution Date
on which the moneys so invested are required to be distributed to the
Certificateholders.

      Section 4.03 Permitted Withdrawals and Transfers from the Master Servicer
Collection Account. (a) The Master Servicer will, from time to time on demand of
the Master Servicer, the Trustee or the Securities Administrator, make or cause
to be made such withdrawals or transfers from the Master Servicer Collection
Account as the Master Servicer has designated for such transfer or withdrawal
pursuant to the Servicing Agreement. The Master Servicer may clear and terminate
the Master Servicer Collection Account pursuant to Section 10.01 and remove
amounts from time to time deposited in error.

      (b) On an ongoing basis, the Master Servicer shall withdraw from the
Master Servicer Collection Account (i) any expenses recoverable by the Trustee,
the Master Servicer or the Securities Administrator pursuant to this Agreement,
including but not limited to Sections 2.01(b), 3.03, 7.04 and 9.05 and (ii) any
amounts payable to the Master Servicer as set forth in Section 3.14.

      (c) In addition, on or before each Distribution Account Deposit Date, the
Master Servicer shall deposit in the Distribution Account (or remit to the
Trustee for deposit therein) any Monthly Advances required to be made by the
Master Servicer with respect to the Mortgage Loans.

      (d) No later than 3:00 p.m. New York time on each Distribution Account
Deposit Date, the Master Servicer will transfer all Available Funds on deposit
in the Master Servicer

                                      -55-
<PAGE>

Collection Account with respect to the related Distribution Date to the Trustee
for deposit in the Distribution Account.

      Section 4.04 Distribution Account. (a) The Trustee shall establish and
maintain in the name of the Trustee, for the benefit of the Certificateholders,
the Distribution Account as a segregated trust account or accounts.

      (b) All amounts deposited to the Distribution Account shall be held by the
Trustee in the name of the Trustee in trust for the benefit of the
Certificateholders in accordance with the terms and provisions of this
Agreement.

      (c) The Distribution Account shall constitute a trust account of the Trust
Fund segregated on the books of the Trustee and held by the Trustee in trust in
its Corporate Trust Office, and the Distribution Account and the funds deposited
therein shall not be subject to, and shall be protected to the maximum extent
permitted by applicable law from, all claims, liens, and encumbrances of any
creditors or depositors of the Trustee or the Master Servicer (whether made
directly, or indirectly through a liquidator or receiver of the Trustee or the
Master Servicer). The Distribution Account shall be an Eligible Account. The
amount at any time credited to the Distribution Account shall be (i) fully
insured by the FDIC to the maximum coverage provided thereby or (ii) invested in
the name of the Trustee, in such Permitted Investments selected by the Master
Servicer or deposited in demand deposits with such depository institutions as
selected by the Master Servicer, provided that time deposits of such depository
institutions would be a Permitted Investment. All Permitted Investments shall
mature or be subject to redemption or withdrawal on or before, and shall be held
until, the next succeeding Distribution Date if the obligor for such Permitted
Investment is the Trustee or, if such obligor is any other Person, the Business
Day preceding such Distribution Date. All investment earnings on amounts on
deposit in the Distribution Account or benefit from funds uninvested therein
from time to time shall be for the account of the Master Servicer. The Master
Servicer shall be permitted to withdraw or receive distribution of any and all
investment earnings from the Distribution Account on each Distribution Date. If
there is any loss on a Permitted Investment or demand deposit, the Master
Servicer shall remit the amount of the loss to the Trustee who shall deposit
such amount in the Distribution Account. With respect to the Distribution
Account and the funds deposited therein, the Master Servicer shall take such
action as may be necessary to ensure that the Certificateholders shall be
entitled to the priorities afforded to such a trust account (in addition to a
claim against the estate of the Trustee) as provided by 12 U.S.C. ss. 92a(e),
and applicable regulations pursuant thereto, if applicable, or any applicable
comparable state statute applicable to state chartered banking corporations.

      Section 4.05 Permitted Withdrawals and Transfers from the Distribution
Account. (a) The Trustee will, from time to time on demand of the Master
Servicer or the Securities Administrator, make or cause to be made such
withdrawals or transfers from the Distribution Account as the Master Servicer or
the Securities Administrator has designated for such transfer or withdrawal
pursuant to the Servicing Agreement or as the Securities Administrator has
instructed hereunder for the following purposes (limited in the case of amounts
due the Master Servicer to those not withdrawn from the Master Servicer
Collection Account in accordance with the terms of this Agreement):

                                      -56-
<PAGE>

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

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

            (iii) to reimburse the Master Servicer or the Servicer from
      Insurance Proceeds relating to a particular Mortgage Loan for insured
      expenses incurred with respect to such Mortgage Loan and to reimburse the
      Master Servicer or such Servicer from Liquidation Proceeds from a
      particular Mortgage Loan for Liquidation Expenses incurred with respect to
      such Mortgage Loan; provided that the Master Servicer shall not be
      entitled to reimbursement for Liquidation Expenses with respect to a
      Mortgage Loan to the extent that (i) any amounts with respect to such
      Mortgage Loan were paid as Excess Liquidation Proceeds pursuant to clause
      (xi) of this Subsection 4.03 (a) to the Master Servicer; and (ii) such
      Liquidation Expenses were not included in the computation of such Excess
      Liquidation Proceeds;

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

            (v) to pay the Master Servicer or the Servicer from the Purchase
      Price for any Mortgage Loan, the amount which it or such Servicer would
      have been entitled to receive under subclause (ix) of this Subsection 4.03
      (a) as servicing compensation;

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

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

                                      -57-
<PAGE>

            (viii) to pay the Master Servicer as set forth in Section 3.14;

            (ix) to reimburse the Master Servicer for expenses, costs and
      liabilities incurred by and reimbursable to it pursuant to this Agreement,
      including but not limited to Sections 3.03, 7.04(c) and (d);

            (x) to pay to the Master Servicer, as additional servicing
      compensation, any Excess Liquidation Proceeds to the extent not retained
      by the Servicer;

            (xi) to reimburse or pay the Servicer any such amounts as are due
      thereto under the Servicing Agreement and have not been retained by or
      paid to the Servicer, to the extent provided in the Servicing Agreement;

            (xii) to reimburse the Trustee or the Securities Administrator for
      expenses, costs and liabilities incurred by or reimbursable to it pursuant
      to this Agreement;

            (xiii) to remove amounts deposited in error; and

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

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

      (c) On each Distribution Date, the Trustee shall distribute the Available
Funds to the Holders of the Certificates as instructed by the Master Servicer or
the Securities Administrator in accordance with Section 6.01.

                                      -58-
<PAGE>

                                   ARTICLE V
                                  CERTIFICATES

      Section 5.01 The Certificates.

      Each of the Class A-1, Class A-2, Class A-3, Class M-1, Class M-2, Class
M-3, Class B-1, Class B-2, Class B-3 and Class R Certificates shall be
substantially in the forms annexed hereto as exhibits, and shall, on original
issue, be executed, authenticated and delivered by the Trustee to or upon the
receipt of a written order to Authenticate from the Depositor concurrently with
the sale and assignment to the Trustee of the Trust Fund. Each Class of the
Certificates (other than the Residual Certificates) shall be initially evidenced
by one or more Certificates representing a Percentage Interest with a minimum
dollar denomination of $50,000 and integral dollar multiples of $1 in excess
thereof. The Residual Certificates will be issued in registered, certificated
form in minimum denominations of a 25% Percentage Interest. Provided however,
that one Certificate of each such Class of Certificates may be in a different
denomination so that the sum of the denominations of all outstanding
Certificates of such Class shall equal the Class Certificate Balance of such
Class on the Closing Date.

      The Certificates shall be executed on behalf of the Trust Fund by manual
or facsimile signature on behalf of the Trustee by a Responsible Officer.
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures were affixed, authorized to sign on behalf of
the Trustee shall bind the Trust Fund, notwithstanding that such individuals or
any of them have ceased to be so authorized prior to the authentication and
delivery of such Certificates or did not hold such offices at the date of such
Certificate. No Certificate shall be entitled to any benefit under this
Agreement or be valid for any purpose, unless such Certificate shall have been
manually authenticated by the Trustee substantially in the form provided for
herein, and such authentication upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the date
of their authentication. Subject to Section 5.02(c), the Certificates, other
than the Class B-1, Class B-2, Class B-3 and Residual Certificates
(collectively, the "Private Certificates"), shall be Book-Entry Certificates.

      Section 5.02 Registration of Transfer and Exchange of Certificates.

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

      Upon surrender for registration of transfer of any Certificate at any
office or agency of the Certificate Registrar maintained for such purpose
pursuant to the foregoing paragraph and, in the case of a Class R Certificate,
upon satisfaction of the conditions set forth below, the Trustee on behalf of
the Trust shall execute, authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Certificates of the same aggregate
Percentage Interest.

                                      -59-
<PAGE>

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

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

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

      (c) If (i)(x) the Depository or the Depositor advises the Trustee in
writing that the Depository is no longer willing or able to discharge properly
its responsibilities as Depository and (y) the Trustee or the Depositor is
unable to locate a qualified successor, (ii) the Depositor, at its sole option,
with the consent of the Trustee, elects to terminate the book-entry system
through the Depository or (iii) after the occurrence of a Servicer Event of
Termination, the Certificate Owners of each Class of Book-Entry Certificates
representing Percentage Interests of such Classes aggregating not less than 51%
advises the Trustee and the Depository Participants

                                      -60-
<PAGE>

in writing that the continuation of a book-entry system through the Depository
to the exclusion of definitive, fully registered certificates (the "Definitive
Certificates") to Certificate Owners is no longer in the best interests of the
Certificate Owners. Upon surrender to the Certificate Registrar of the
Book-Entry Certificates by the Depository, accompanied by registration
instructions from the Depository for registration, the Trustee shall, at the
Depositor's expense, execute on behalf of the Trust and authenticate the
Definitive Certificates. Neither the Depositor nor the Trustee shall be liable
for any delay in delivery of such instructions and may conclusively rely on, and
shall be protected in relying on, such instructions. Upon the issuance of
Definitive Certificates, the Trustee, the Certificate Registrar, the Servicer,
any Paying Agent and the Depositor shall recognize the Holders of the Definitive
Certificates as Certificateholders hereunder.

      (d) Except with respect to the initial transfer of the Private
Certificates by the Depositor, no transfer, sale, pledge or other disposition of
any Private Certificate shall be made unless such disposition is exempt from the
registration requirements of the Securities Act of 1933, as amended (the "1933
Act"), and any applicable state securities laws or is made in accordance with
the 1933 Act and laws. In the event of any such transfer, made in reliance upon
an exemption from the 1933 Act, (i) the Trustee and the Depositor shall require
(a) the transferor to execute a representation letter (in substantially the form
attached hereto as Exhibit F-1) and the transferee to execute an investor
representation letter (in substantially the form attached hereto as Exhibit F-2)
and (b) a written Opinion of Counsel (which may be in-house counsel) acceptable
to and in form and substance reasonably satisfactory to the Trustee and the
Depositor that such transfer may be made pursuant to an exemption, describing
the applicable exemption and the basis therefor, from the 1933 Act or is being
made pursuant to the 1933 Act, which Opinion of Counsel shall not be an expense
of the Trustee or the Depositor or (ii) the Trustee shall require the transferee
to execute a Rule 144A Letter (in substantially the form attached hereto as
Exhibit F-3) acceptable to and in form and substance reasonably satisfactory to
the Depositor and the Trustee certifying to the Depositor and the Trustee the
facts surrounding such transfer, which certificate shall not be an expense of
the Trustee or the Depositor. The Holder of a Private Certificate desiring to
effect such transfer shall, and does hereby agree to, indemnify the Trustee and
the Depositor against any liability that may result if the transfer is not so
exempt or is not made in accordance with such federal and state laws.

      Notwithstanding the foregoing, no certification or Opinion of Counsel
described in this Section 5.02(d) will be required in connection with the first
transfer by the Depositor or an Affiliate thereof of any Class R Certificate,
and the Depositor or such Affiliate hereby agree only to make such a transfer
to, to an "accredited investor" within the meaning of Rule 501(d) of the 1933
Act.

      No transfer of an ERISA-Restricted Certificate shall be made unless the
Trustee shall have received either (i) a representation from the transferee of
such Certificate, acceptable to and in form and substance satisfactory to the
Trustee and the Depositor, (such requirement is satisfied only by the Trustee's
receipt of a representation letter from the transferee substantially in the form
of Exhibit F-2 or F-3 hereto, as appropriate on which the Trustee and Depositor
is authorized to rely), to the effect that either (A) such transferee is not an
employee benefit plan or arrangement subject to Section 406 of ERISA or a plan
subject to Section 4975 of the Code (collectively, a "Plan"), nor a person
acting on behalf of any such Plan or arrangement nor using

                                      -61-
<PAGE>

the assets of any such Plan or arrangement to effect such transfer (a "Plan
Investor"), or (B) the proposed transfer and holding of such a Certificate and
the servicing, management and operation of the Trust: (I) will not result in a
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code
which is not covered under an individual or class prohibited transaction
exemption including but not limited to Department of Labor Prohibited
Transaction Class Exemption ("PTCE") 84-14 (Class Exemption for Plan Asset
Transactions Determined by Independent Qualified Professional Asset Managers);
PTCE 91-38 (Class Exemption for Certain Transactions Involving Bank Collective
Investment Funds); PTCE 90-1 (Class Exemption for Certain Transactions Involving
Insurance Company Pooled Separate Accounts), PTCE 95-60 (Class Exemption for
Certain Transactions Involving Insurance Company General Accounts), and PTCE
96-23 (Class Exemption for Plan Asset Transactions Determined by In-House Asset
Managers) and (II) will not subject the Depositor, the Securities Administrator,
the Servicer or the Trustee to any obligation in addition to those undertaken in
the Agreement or (ii) in the case of any such ERISA-Restricted Certificate
presented for registration in the name of a Plan or a Plan Investor, an Opinion
of Counsel satisfactory to the Trustee which Opinion of Counsel shall not be an
expense of either the Trustee or the Trust, addressed to the Trustee, to the
effect that the purchase or holding of such Certificate will not result in the
assets of the Trust being deemed to be "Plan assets" and subject to the
prohibited transaction provisions of ERISA and the Code, will not result in such
a prohibited transaction, and will not subject the Trustee, the Securities
Administrator, the Servicer or the Depositor to any obligation in addition to
those expressly undertaken in this Agreement or to any liability. For purposes
of clause (i) of the preceding sentence, such representations shall be deemed to
have been made to the Trustee by the transferee's acceptance of an
ERISA-Restricted Certificate (or the acceptance by a Certificate Owner of the
beneficial interest in any such Class of Certificates) unless the Trustee shall
have received from the transferee an alternative representation acceptable in
form and substance to the Depositor. Notwithstanding anything else to the
contrary herein, any purported transfer of a ERISA-Restricted Certificate to or
on behalf of a Plan or Plan Investor in violation of this paragraph shall be
void and of no effect.

      Any transferee of an ERISA-Restricted Certificate which is a Book-Entry
Certificate will be deemed to have represented by virtue of its purchase or
holding of such Certificate (or interest therein) that either (a) such
transferee is not a Plan Investor or (b) such transferee meets the requirements
in (i)(B) of the immediately preceding paragraph.

      Each beneficial owner of a Class M Certificate or any interest therein
shall be deemed to have represented, by virtue of its acquisition or holding of
that certificate or interest therein, that either (i) it is not a Plan or a Plan
Investor or investing with Plan assets, (ii) it has acquired and is holding such
certificate in reliance on the Prohibited Transaction Exemption 90-29 issued by
the Department of Labor, as amended ("Exemption"), and that it understands that
there are certain conditions to the availability of the Exemption, including
that the certificate must be rated, at the time of purchase, not lower than
"BBB-" (or its equivalent) by Fitch, Moody's or S&P, or (iii) (1) it is an
insurance company, (2) the source of funds used to acquire or hold the
certificate or interest therein is an "insurance company general account," as
such term is defined in PTCE 95-60, and (3) the conditions in Sections I and III
of PTCE 95-60 have been satisfied.

      If any Book-Entry Certificate (or any interest therein) is acquired or
held in violation of the provisions of Section 5.02(d) above, then the last
preceding transferee that is in compliance

                                      -62-
<PAGE>

with such provisions shall be restored, to the extent permitted by law, to all
rights and obligations as Certificate Owner thereof retroactive to the date of
such Transfer of such Certificate. The Trustee shall be under no liability to
any Person for making any payments due on such Certificate to such preceding
transferee.

      Any purported Certificate Owner whose acquisition or holding of any
Book-Entry Certificate (or interest therein) was effected in violation of the
restrictions in this Section 5.02(d) shall indemnify and hold harmless the
Depositor, the Trustee, the Servicer and the Trust Fund from and against any and
all liabilities, claims, costs or expenses incurred by such parties as a result
of such acquisition or holding.

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

            (i) Each Person holding or acquiring any Ownership Interest in a
      Class R Certificate shall be a Permitted Transferee and shall promptly
      notify the Trustee of any change or impending change in its status as a
      Permitted Transferee.

            (ii) No Person shall acquire an Ownership Interest in a Class R
      Certificate unless such Ownership Interest is a pro rata undivided
      interest.

            (iii) In connection with any proposed transfer of any Ownership
      Interest in a Class R Certificate, the Trustee shall as a condition to
      registration of the transfer, require delivery to it, in form and
      substance satisfactory to it, of each of the following:

                  (A) an affidavit in the form of Exhibit E-1 hereto from the
            proposed transferee to the effect that such transferee is a
            Permitted Transferee and that it is not acquiring its Ownership
            Interest in the Class R Certificate that is the subject of the
            proposed transfer as a nominee, trustee or agent for any Person who
            is not a Permitted Transferee, and an affidavit in the form of
            Exhibit E-2 hereto from the proposed transferor, representing and
            warranting, among other things, that no proposed transfer is to
            impede the assessment or collection of tax;

                  (B) a covenant of the proposed transferee to the effect that
            the proposed
         transferee agrees to be bound by and to abide by the transfer
         restrictions applicable to the Class R Certificates.

                  (C) Any attempted or purported transfer of any Ownership
            Interest in a Class R Certificate in violation of the provisions of
            this Section shall be absolutely null and void and shall vest no
            rights in the purported transferee. If any purported transferee
            shall, in violation of the provisions of this Section, become a
            Holder of a Class R Certificate, then the prior Holder of such Class
            R Certificate

                                      -63-
<PAGE>

            that is a Permitted Transferee shall, upon discovery that the
            registration of transfer of such Class R Certificate was not in fact
            permitted by this Section, be restored to all rights as Holder
            thereof retroactive to the date of registration of transfer of such
            Class R Certificate. The Trustee shall be under no liability to any
            Person for any registration of transfer of a Class R Certificate
            that is in fact not permitted by this Section or for making any
            distributions due on such Class R Certificate to the Holder thereof
            or taking any other action with respect to such Holder under the
            provisions of this Agreement so long as the Trustee received the
            documents specified in this clause (iii). The Trustee shall be
            entitled to recover from any Holder of a Class R Certificate that
            was in fact not a Permitted Transferee at the time such
            distributions were made all distributions made on such Class R
            Certificate. Any such distributions so recovered by the Trustee
            shall be distributed and delivered by the Trustee to the prior
            Holder of such Class R Certificate that is a Permitted Transferee.

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

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

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

      (e) No service charge shall be made for any registration of transfer or
exchange of Certificates of any Class, but the Certificate Registrar may require
payment of a sum sufficient to

                                      -64-
<PAGE>

cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.

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

      Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

      If (i) any mutilated Certificate is surrendered to the Certificate
Registrar or the Certificate Registrar receives evidence to its satisfaction of
the destruction, loss or theft of any Certificate and (ii) there is delivered to
the Trustee, the Depositor and the Certificate Registrar such security or
indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Trustee or the Certificate Registrar that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute on behalf of the Trust, authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like tenor and Percentage Interest. Upon the issuance of any new
Certificate under this Section, the Trustee or the Certificate Registrar may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee and the Certificate Registrar) in
connection therewith. Any duplicate Certificate issued pursuant to this Section,
shall constitute complete and indefeasible evidence of ownership in the Trust,
as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

      Section 5.04 Persons Deemed Owners.

      The Servicer, the Master Servicer, the Depositor, the Trustee, the
Certificate Registrar, any Paying Agent and any agent of the Servicer, the
Master Servicer, the Depositor, the Certificate Registrar, any Paying Agent or
the Trustee may treat the Person, including a Depository, in whose name any
Certificate is registered as the owner of such Certificate for the purpose of
receiving distributions pursuant to Section 4.01 and for all other purposes
whatsoever, and none of the Servicer, the Master Servicer, the Trust, the
Trustee nor any agent of any of them shall be affected by notice to the
contrary.

      To the extent the Trustee, Certificate Registrar or any Paying Agent is
required pursuant to this Agreement to determine the identity of the beneficial
owner of a Book-Entry Certificate, any costs assessed by the Depository in
making such determination shall be an expense of the party making such request,
but in no event shall such cost be an expense of the Trust Fund. Section 5.05
Appointment of Paying Agent.

      The Paying Agent shall make distributions to Certificateholders from the
Distribution Account pursuant to Section 4.01 and shall report the amounts of
such distributions to the Trustee. The duties of the Paying Agent may include
the obligation (i) to withdraw funds from the Distribution Account pursuant to
Section 3.11 and for the purpose of making the distributions referred to above
and (ii) to distribute statements and provide information to Certificateholders
as required hereunder. The Paying Agent hereunder shall at all times be an
entity duly incorporated and validly existing under the laws of the United
States of America or any state thereof, authorized under such laws to exercise
corporate trust powers and subject to supervision

                                      -65-
<PAGE>

or examination by federal or state authorities. The Paying Agent shall initially
be the Trustee. The Trustee may appoint a successor to act as Paying Agent,
which appointment shall be reasonably satisfactory to the Depositor and the
Rating Agencies.

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

                                      -66-
<PAGE>

                                   ARTICLE VI
                         PAYMENTS TO CERTIFICATEHOLDERS

      Section 6.01 Distributions on the Certificates. (a) Interest and principal
on the Certificates will be distributed by the Trustee monthly on each
Distribution Date, commencing in November 2004, as instructed by the Master
Servicer or the Securities Administrator, in an aggregate amount equal to the
sum of the Available Funds for such Distribution Date. On each Distribution
Date, the Available Funds shall be distributed as follows:

                  (A) On each Distribution Date, the Available Funds will be
            distributed in the following order of priority among the Senior
            Certificates except as otherwise noted:

            first, to the Class A-1, Class A-2 and Class A-3 Certificates, pro
      rata, the Accrued Certificate Interest on each Class of Senior
      Certificates for such Distribution Date. As described below, Accrued
      Certificate Interest on each Class of Senior Certificates is subject to
      reduction in the event of certain interest shortfalls allocable thereto.
      Any interest shortfalls shall be allocated among the Senior Certificates
      as described below;

            second, to the Class A-1, Class A-2 and Class A-3 Certificates, pro
      rata, any Accrued Certificate Interest thereon remaining undistributed
      from previous Distribution Dates, to the extent of remaining Available
      Funds, any shortfall in available amounts being allocated among the Senior
      Certificates in proportion to the amount of such Accrued Certificate
      Interest remaining undistributed for each Class of Senior Certificates for
      such Distribution Date; and

            third, to the Class A-1, Class A-2 and Class A-3 Certificates, pro
      rata, in reduction of the Class Certificate Balances thereof, the Senior
      Principal Distribution Amount for such Distribution Date to the extent of
      remaining Available Funds, until the Class Certificate Balance of such
      Class has been reduced to zero;

                  (B) On each Distribution Date on or prior to the Distribution
            Date on which the Class Certificate Balances of the Class M
            Certificates and Class B Certificates are reduced to zero (the
            "Credit Support Depletion Date"), an amount equal to the remaining
            Available Funds after the distributions in clause (A) above will be
            distributed sequentially, in the following order, to the Class M-1,
            Class M-2, Class M-3, Class B-1, Class B-2 and Class B-3
            Certificates, in each case up to an amount equal to and in the
            following order: (a) the Accrued Certificate Interest thereon for
            such Distribution Date, (b) any Accrued Certificate Interest thereon
            remaining undistributed from previous Distribution Dates and (c)
            such Class's Subordinate Principal Distribution Amount for such
            Distribution Date, in each case to the extent of the remaining
            Available Funds.

      (b) On each Distribution Date, any Available Funds remaining after payment
of interest and principal to the Classes of Certificates entitled thereto, as
described above, will be distributed to the Class R Certificates. It is not
anticipated that there will be any significant amounts remaining for such
distribution.

                                      -67-
<PAGE>

      (c) In addition to the foregoing distributions, with respect to any
Subsequent Recoveries, the Master Servicer shall deposit such amounts into the
Protected Account pursuant to Section 4.01(a). If, after taking into account
such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount
of such Subsequent Recoveries will be applied to increase the Certificate
Principal Balance of the Class of Subordinate Certificates with the highest
payment priority to which Realized Losses have been allocated, but not by more
than the amount of Realized Losses previously allocated to that Class of
Certificates pursuant to Section 6.02(a). The amount of any remaining Subsequent
Recoveries will be applied to increase the Certificate Principal Balance of the
Class of Certificates with the next highest payment priority, up to the amount
of such Realized Losses previously allocated to that Class of Certificates
pursuant to Section 6.02(a), and so on. Holders of such Certificates will not be
entitled to any payment in respect of Current Interest on the amount of such
increases for any Interest Accrual Period preceding the Distribution Date on
which such increase occurs. Any such increases shall be applied to the
Certificate Principal Balance of each Certificate of such Class in accordance
with its respective Percentage Interest.

      Section 6.02 Allocation of Losses. (a) On or prior to each Determination
Date, the Master Servicer shall determine the amount of any Realized Loss in
respect of each Mortgage Loan that occurred during the immediately preceding
calendar month.

      (b) With respect to any Certificates on any Distribution Date, the
principal portion of each Realized Loss on a Mortgage Loan shall be allocated as
follows:

            first, to the Class B-3 Certificates until the Class Certificate
      Balance thereof has been reduced to zero;

            second, to the Class B-2 Certificates until the Class Certificate
      Balance thereof has been reduced to zero;

            third, to the Class B-1 Certificates until the Class Certificate
      Balance thereof has been reduced to zero;

            fourth, to the Class M-3 Certificates until the Class Certificate
      Balance thereof has been reduced to zero;

            fifth, to the Class M-2 Certificates until the Class Certificate
      Balance thereof has been reduced to zero;

            sixth, to the Class M-1 Certificates until the Class Certificate
      Balance thereof has been reduced to zero and

            seventh, to the Senior Certificates until the Class Certificate
      Balances thereof have been reduced to zero; provided, however, that
      Realized Losses that would otherwise be allocable to the Class A-2
      Certificates will instead be allocated to the Class A-3 Certificates until
      the Class Certificate Balance thereof has been reduced to zero.

      (c) Any allocation of a Realized Loss (other than a Debt Service
Reduction) to a Certificate will be made by reducing the Class Certificate
Balance thereof, in the case of the

                                      -68-
<PAGE>

principal portion of such Realized Loss, in each case until the Class
Certificate Balance of such Class has been reduced to zero, and the Accrued
Certificate Interest thereon, in the case of the interest portion of such
Realized Loss, by the amount so allocated as of the Distribution Date occurring
in the month following the calendar month in which such Realized Loss was
incurred. In addition, any such allocation of a Realized Loss to a Class M
Certificate or Class B Certificate may also be made by operation of the payment
priority to the Senior Certificates set forth under "--Principal Distributions
on the Senior Certificates" and any Class of Class M Certificates or Class B
Certificates with a higher payment priority. As used herein, "Debt Service
Reduction" means a reduction in the amount of the monthly payment due to certain
bankruptcy proceedings, but does not include any permanent forgiveness of
principal. As used herein, "Subordination" refers to the provisions discussed
above for the sequential allocation of Realized Losses among the various
Classes, as well as all provisions effecting such allocations including the
priorities for distribution of cash flows in the amounts described herein.

      (d) Allocations of the principal portion of Debt Service Reductions to the
Class M Certificates and Class B Certificates will result from the priority of
distributions of the Available Funds as described herein, which distributions
shall be made first to the Senior Certificates, second to the Class M
Certificates in the order of their payment priority and third to the Class B
Certificates in the order of their payment priority. An allocation of the
interest portion of a Realized Loss as well as the principal portion of Debt
Service Reductions will not reduce the level of Subordination, as such term is
defined herein, until an amount in respect thereof has been actually disbursed
to the Senior Certificateholders, the Class M Certificateholders or the Class B
Certificateholders, as applicable. The holders of the Offered Certificates will
not be entitled to any additional payments with respect to Realized Losses from
amounts otherwise distributable on any Classes of Certificates subordinate
thereto. Accordingly, the Subordination provided to the Senior Certificates and
to each Class of Class M Certificates and Class B Certificates by the respective
Classes of Certificates subordinate thereto with respect to Realized Losses
allocated on any Distribution Date will be effected primarily by increasing the
Senior Percentage, or the respective Class M Percentage, of future distributions
of principal of the remaining Mortgage Loans. Thus, the Senior Certificates will
bear the entire amount of losses that are not allocated to the Class M
Certificates and Class B Certificates, which losses will be allocated among all
Classes of Senior Certificates as described herein

      (e) Any Excess Losses or other losses on the Mortgage Loans of a type not
covered by Subordination will be allocated on a pro rata basis among the
Certificates (any such Realized Losses so allocated to the Certificates will be
allocated without priority among the various Classes of Certificates). An
allocation of a Realized Loss on a "pro rata basis" among two or more Classes of
Certificates means an allocation to each such Class of Certificates on the basis
of its then outstanding Class Certificate Balance prior to giving effect to
distributions to be made on such Distribution Date in the case of an allocation
of the principal portion of a Realized Loss, or based on the Accrued Certificate
Interest thereon in respect of such Distribution Date in the case of an
allocation of the interest portion of a Realized Loss.

      Section 6.03 Payments. (a) On each Distribution Date, other than the final
Distribution Date, the Trustee shall distribute to each Certificateholder of
record on the directly preceding Record Date the Certificateholder's pro rata
share of its Class (based on the aggregate Percentage Interest represented by
such Holder's Certificates) of all amounts required to be distributed on

                                      -69-
<PAGE>

such Distribution Date to such Class, based solely on information provided to
the Trustee by the Master Servicer or the Securities Administrator. The
Securities Administrator shall calculate the amount to be distributed to each
Class and, based on such amounts, the Securities Administrator shall determine
the amount to be distributed to each Certificateholder. All of the Securities
Administrator's calculations of payments shall be based solely on information
provided to the Securities Administrator by the Master Servicer or the Servicer.
The Securities Administrator shall not be required to confirm, verify or
recompute any such information but shall be entitled to rely conclusively on
such information.

      (b) Payment of the above amounts to each Certificateholder shall be made
(i) by check mailed to each Certificateholder entitled thereto at the address
appearing in the Certificate Register or (ii) upon receipt by the Trustee on or
before the fifth Business Day preceding the Record Date of written instructions
from a Certificateholder by wire transfer to a United States dollar account
maintained by the payee at any United States depository institution with
appropriate facilities for receiving such a wire transfer; provided, however,
that the final payment in respect of each Class of Certificates will be made
only upon presentation and surrender of such respective Certificates at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final payment.

      Section 6.04 Statements to Certificateholders. (a) Concurrently with each
distribution to Certificateholders, the Securities Administrator shall make
available to the parties hereto and each Certificateholder via the Securities
Administrator's internet website as set forth below, the following information:

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

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

            (iii) the aggregate amount the Servicing Fee during the related Due
      Period and such other customary information as the Trustee deems necessary
      or desirable, or which a Certificateholder reasonably requests, to enable
      Certificateholders to prepare their tax returns;

            (iv) the aggregate amount of Advances for the related Due Period;

            (v) the aggregate Stated Principal Balance of the Mortgage Loans at
      the close of business at the end of the related Due Period;

            (vi) the number, weighted average remaining term to maturity and
      weighted average Loan Rate of the Mortgage Loans as of the related Due
      Date;

            (vii) the number and aggregate unpaid principal balance of Mortgage
      Loans (a) one month, two months or three months delinquent on a
      contractual basis, (b) as to which foreclosure proceedings have been
      commenced and (c) in bankruptcy as of the close of business on the last
      day of the calendar month preceding such Distribution Date;

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<PAGE>

            (viii) with respect to any Mortgage Loan that became an REO Property
      during the preceding calendar month, the Stated Principal Balance of such
      Mortgage Loan as of the date it became an REO Property;

            (ix) the book value of any REO Property as of the close of business
      on the last Business Day of the calendar month preceding the Distribution
      Date, and, cumulatively, the total number and cumulative principal balance
      of all REO Properties as of the close of business of the last day of the
      preceding due period;

            (x) the aggregate amount of Principal Prepayments made during the
      related Prepayment Period;

            (xi) the aggregate amount of Realized Losses incurred during the
      related Due Period and the cumulative amount of Realized Losses;

            (xii) the aggregate amount of Extraordinary Trust Fund Expenses
      withdrawn from the Master Servicer Collection Account for such
      Distribution Date;

            (xiii) the Class Certificate Balance of each Class of Certificates,
      after giving effect to the distributions made on such Distribution Date;

            (xiv) the aggregate amount of interest accrued at the related
      Pass-Through Rate with respect to each Class during the related Interest
      Accrual Period and the respective portions thereof, if any, remaining
      unpaid following the distributions made in respect of such Certificates on
      such Distribution Date;

            (xv) the aggregate amount of any Prepayment Interest Shortfalls for
      such Distribution Date, to the extent not covered by Compensating Interest
      Payments by the Servicer or the Master Servicer pursuant to the Servicing
      Agreement or Section 6.06;

            (xvi) the Available Funds;

            (xvii) the Pass-Through Rate for each Class of Certificates for such
      Distribution Date; and

            (xviii) the aggregate Stated Principal Balance of Mortgage Loans
      purchased by the Seller during the related Due Period and indicating the
      Section of this Agreement requiring or allowing the purchase of each such
      Mortgage Loan.

      The information set forth above shall be calculated or reported, as the
case may be, by the Securities Administrator, based solely on, and to the extent
of, information provided to the Securities Administrator by the Master Servicer.
The Securities Administrator may conclusively rely on such information and shall
not be required to confirm, verify or recalculate any such information.

      The Securities Administrator may make available each month, to any
interested party , the monthly statement to Certificateholders via the
Securities Administrator's website initially located at "www.ctslink.com."
Assistance in using the website can be obtained by calling the

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Securities Administrator's customer service desk at (301) 815-6600. Parties that
are unable to use the above distribution option are entitled to have a paper
copy mailed to them via first class mail by calling the customer service desk
and indicating such. The Securities Administrator shall have the right to change
the way such reports are distributed in order to make such distribution more
convenient and/or more accessible to the parties, and the Securities
Administrator shall provide timely and adequate notification to all parties
regarding any such change.

      (b) By January 30 of each year beginning in 2005, the Trustee will furnish
such report to each Holder of the Certificates of record at any time during the
prior calendar year as to the aggregate of amounts reported pursuant to
subclauses (a)(ii) and (a)(v) above with respect to the Certificates, plus
information with respect to the amount of servicing compensation and such other
customary information as the Securities Administrator may determine and advises
the Trustee to be necessary and/or to be required by the Internal Revenue
Service or by a federal or state law or rules or regulations to enable such
Holders to prepare their tax returns for such calendar year. Such obligations
shall be deemed to have been satisfied to the extent that substantially
comparable information shall be provided by the Securities Administrator or the
Trustee pursuant to the requirements of the Code.

      Section 6.05 Monthly Advances. If the Monthly Payment on a Mortgage Loan
that was due on a related Due Date and is delinquent other than as a result of
application of the Relief Act and for which the Servicer was required to make an
advance pursuant to the Servicing Agreement exceeds the amount deposited in the
Master Servicer Collection Account which will be used for a Monthly Advance with
respect to such Mortgage Loan, the Master Servicer will deposit in the Master
Servicer Collection Account not later than the Distribution Account Deposit Date
immediately preceding the related Distribution Date an amount equal to such
deficiency, net of the Servicing Fee for such Mortgage Loan, except to the
extent the Master Servicer determines any such Monthly Advance to be
nonrecoverable from Liquidation Proceeds, Insurance Proceeds or future payments
on the Mortgage Loan for which such Monthly Advance was made. If the Master
Servicer has not deposited the amount described above as of the related
Distribution Account Deposit Date, the Trustee will deposit in the Master
Servicer Collection Account not later than the related Distribution Date, an
amount equal to the remaining deficiency as of the Distribution Account Deposit
Date. Subject to the foregoing, the Master Servicer shall continue to make such
Monthly Advances through the date that the Servicer is required to do so under
its Servicing Agreement. If applicable, on the Distribution Account Deposit
Date, the Master Servicer shall present an Officer's Certificate to the Trustee
(i) stating that the Master Servicer elects not to make a Monthly Advance in a
stated amount and (ii) detailing the reason it deems the advance to be
nonrecoverable.

      Section 6.06 Compensating Interest Payments. The Master Servicer shall
deposit in the Master Servicer Collection Account not later than each
Distribution Account Deposit Date an amount equal to the aggregate amounts
required to be paid by the Servicer under the Servicing Agreement with respect
to subclause (a) of the definition of Prepayment Interest Shortfall with respect
to the Mortgage Loans for the related Distribution Date, and not so paid by the
Servicer (such amount, the "Compensating Interest Payment"). The Master Servicer
shall not be entitled to any reimbursement of any Compensating Interest Payment.

                                      -72-
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                                  ARTICLE VII
                           THE MASTER SERVICER AND THE
                                    DEPOSITOR

      Section 7.01 Liabilities of the Master Servicer. The Master Servicer shall
be liable in accordance herewith only to the extent of the obligations
specifically imposed upon and undertaken by the Master Servicer, as the case may
be, herein. The Depositor shall be liable in accordance herewith only to the
extent of the obligations specifically imposed upon and undertaken by the
Depositor.

      Section 7.02 Merger or Consolidation of the Master Servicer.

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

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

      Section 7.03 Indemnification of the Trustee, the Master Servicer and the
Securities Administrator. (a) The Master Servicer agrees to indemnify the
Indemnified Persons for, and to hold them harmless against, any loss, liability
or expense (including reasonable legal fees and disbursements of counsel)
incurred on their part that may be sustained in connection with, arising out of,
or relating to, any claim or legal action (including any pending or threatened
claim or legal action) relating to this Agreement or the Certificates (i)
related to the Master Servicer's failure to perform its duties in compliance
with this Agreement (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) or (ii) incurred by reason of
the Master Servicer's willful misfeasance, bad faith or gross negligence in the
performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder, provided, in each case, that with respect to
any such claim or legal action (or pending or threatened claim or legal action),
the Trustee shall have given the Master Servicer and the Depositor written
notice thereof promptly after the Trustee shall have with respect to such claim
or legal action knowledge thereof. This indemnity shall survive the resignation
or removal of the Trustee, Master Servicer or the Securities Administrator and
the termination of this Agreement.

      (b) The Depositor will indemnify any Indemnified Person for any loss,
liability or expense of any Indemnified Person not otherwise referred to in
Subsection (a) above.

      Section 7.04 Limitations on Liability of the Master Servicer and Others.
Subject to the obligation of the Master Servicer to indemnify the Indemnified
Persons pursuant to Section 7.03:

                                      -73-
<PAGE>

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

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

      (c) The Master Servicer, the Custodian and any director, officer, employee
or agent of the Master Servicer or the Custodian shall be indemnified by the
Trust and held harmless thereby against any loss, liability or expense
(including reasonable legal fees and disbursements of counsel) incurred on their
part that may be sustained in connection with, arising out of, or related to,
any claim or legal action (including any pending or threatened claim or legal
action) relating to this Agreement, the Certificates or the Servicing Agreement
(except to the extent that the Master Servicer is indemnified by the Servicer
thereunder), other than (i) any such loss, liability or expense related to the
Master Servicer's failure to perform its duties in compliance with this
Agreement (except as any such loss, liability or expense shall be otherwise
reimbursable pursuant to this Agreement), or to the Custodian's failure to
perform its duties under the Custodial Agreement, respectively, or (ii) any such
loss, liability or expense incurred by reason of the Master Servicer's or the
Custodian's willful misfeasance, bad faith or gross negligence in the
performance of duties hereunder or under the Custodial Agreement, as applicable,
or by reason of reckless disregard of obligations and duties hereunder or under
the Custodial Agreement, as applicable.

      (d) The Master Servicer shall not be under any obligation to appear in,
prosecute or defend any legal action that is not incidental to its duties under
this Agreement and that in its opinion may involve it in any expense or
liability; provided, however, the Master Servicer may in its discretion,
undertake any such action which it may deem necessary or desirable with respect
to this Agreement and the rights and duties of the parties hereto and the
interests of the Certificateholders hereunder. In such event, the legal expenses
and costs of such action and any liability resulting therefrom shall be
expenses, costs and liabilities of the Trust Fund, and the Master Servicer shall
be entitled to be reimbursed therefor out of the Master Servicer Collection
Account as provided by Section 4.03. Nothing in this Subsection 7.04(d) shall
affect the Master Servicer's obligation to supervise, or to take such actions as
are necessary to ensure, the servicing and administration of the Mortgage Loans
pursuant to Subsection 3.01(a).

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

                                      -74-
<PAGE>

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

      Section 7.05 Master Servicer Not to Resign. Except as provided in Section
7.07, the Master Servicer shall not resign from the obligations and duties
hereby imposed on it except upon a determination that any such duties hereunder
are no longer permissible under applicable law and such impermissibility cannot
be cured. Any such determination permitting the resignation of the Master
Servicer shall be evidenced by an Opinion of Independent Counsel to such effect
delivered to the Trustee. No such resignation by the Master Servicer shall
become effective until MLMLI or the Trustee or a successor to the Master
Servicer reasonably satisfactory to the Trustee shall have assumed the
responsibilities and obligations of the Master Servicer in accordance with
Section 8.02 hereof. The Trustee shall notify the Rating Agencies of the
resignation of the Master Servicer.

      Section 7.06 Successor Master Servicer. In connection with the appointment
of any successor Master Servicer or the assumption of the duties of the Master
Servicer, MLMLI or the Trustee may make such arrangements for the compensation
of such successor master servicer out of payments on the Mortgage Loans as MLMLI
or the Trustee and such successor master servicer shall agree. If the successor
master servicer does not agree that such market value is a fair price, such
successor master servicer shall obtain two quotations of market value from third
parties actively engaged in the servicing of single-family mortgage loans.

      Section 7.07 Sale and Assignment of Master Servicing. The Master Servicer
may sell and assign its rights and delegate its duties and obligations in its
entirety as Master Servicer under this Agreement; provided, however, that: (i)
the purchaser or transferee accepting such assignment and delegation (a) shall
be a Person which shall be qualified to service mortgage loans for Fannie Mae or
Freddie Mac; (b) shall have a net worth of not less than $10,000,000 (unless
otherwise approved by each Rating Agency pursuant to clause (ii) below); (c)
shall be reasonably satisfactory to the Trustee (as evidenced in a writing
signed by the Trustee); and (d) shall execute and deliver to the Trustee an
agreement, in form and substance reasonably satisfactory to the Trustee, which
contains an assumption by such Person of the due and punctual performance and
observance of each covenant and condition to be performed or observed by it as
master servicer under this Agreement, any custodial agreement from and after the
effective date of such agreement; (ii) each Rating Agency shall be given prior
written notice of the identity of the proposed successor to the Master Servicer
and each Rating Agency's rating of the Certificates in effect immediately prior
to such assignment, sale and delegation will not be downgraded, qualified or
withdrawn as a result of such assignment, sale and delegation, as evidenced by a
letter to such effect delivered to the Master Servicer and the Trustee; and
(iii) the Master Servicer assigning and selling the master servicing shall
deliver to the Trustee an Officer's Certificate and an Opinion of Independent
Counsel, each stating that all conditions precedent to such action under this
Agreement have been completed and such action is permitted by and complies with
the terms of this Agreement. No such assignment or delegation shall affect any
liability of the Master Servicer arising prior to the effective date thereof.

                                      -75-
<PAGE>

                                  ARTICLE VIII
                                     DEFAULT

      Section 8.01 Events of Default. "Event of Default," wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body) and
only with respect to the defaulting Master Servicer:

            (i) The Master Servicer fails to cause to be deposited in the
      Distribution Account any amount so required to be deposited pursuant to
      this Agreement, and such failure continues unremedied for a period of
      three Business Days after the date upon which written notice of such
      failure, requiring the same to be remedied, shall have been given to the
      Master Servicer; or

            (ii) The Master Servicer fails to observe or perform in any material
      respect any other material covenants and agreements set forth in this
      Agreement to be performed by it, which covenants and agreements materially
      affect the rights of Certificateholders, and such failure continues
      unremedied for a period of 60 days after the date on which written notice
      of such failure, properly requiring the same to be remedied, shall have
      been given to the Master Servicer by the Trustee or to the Master Servicer
      and the Trustee by the Holders of Certificates evidencing Percentage
      Interests aggregating not less than 25% of the Trust Fund; or

            (iii) There is entered against the Master Servicer a decree or order
      by a court or agency or supervisory authority having jurisdiction in the
      premises for the appointment of a conservator, receiver or liquidator in
      any insolvency, readjustment of debt, marshaling of assets and liabilities
      or similar proceedings, or for the winding up or liquidation of its
      affairs, and the continuance of any such decree or order is unstayed and
      in effect for a period of 60 consecutive days, or an involuntary case is
      commenced against the Master Servicer under any applicable insolvency or
      reorganization statute and the petition is not dismissed within 60 days
      after the commencement of the case; or

            (iv) The Master Servicer consents to the appointment of a
      conservator or receiver or liquidator in any insolvency, readjustment of
      debt, marshaling of assets and liabilities or similar proceedings of or
      relating to the Master Servicer or substantially all of its property; or
      the Master Servicer admits in writing its inability to pay its debts
      generally as they become due, files a petition to take advantage of any
      applicable insolvency or reorganization statute, makes an assignment for
      the benefit of its creditors, or voluntarily suspends payment of its
      obligations; or

            (v) The Master Servicer assigns or delegates its duties or rights
      under this Agreement in contravention of the provisions permitting such
      assignment or delegation under Sections 7.05 or 7.07.

In each and every such case, so long as such Event of Default with respect to
the Master Servicer shall not have been remedied, either the Trustee or the
Holders of Certificates evidencing

                                      -76-
<PAGE>

Percentage Interests aggregating not less than 51% of the principal of the Trust
Fund, by notice in writing to the Master Servicer (and to the Trustee if given
by such Certificateholders), with a copy to the Rating Agencies, and with the
consent of MLMLI, may terminate all of the rights and obligations (but not the
liabilities) of the Master Servicer under this Agreement and in and to the
Mortgage Loans and/or the REO Property serviced by the Master Servicer and the
proceeds thereof. Upon the receipt by the Master Servicer of the written notice,
all authority and power of the Master Servicer under this Agreement, whether
with respect to the Certificates, the Mortgage Loans, REO Property or under any
other related agreements (but only to the extent that such other agreements
relate to the Mortgage Loans or related REO Property) shall, subject to Section
8.02, automatically and without further action pass to and be vested in the
Trustee pursuant to this Section 8.01; and, without limitation, the Trustee is
hereby authorized and empowered to execute and deliver, on behalf of the Master
Servicer as attorney-in-fact or otherwise, any and all documents and other
instruments and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the Mortgage Loans and
related documents, or otherwise. The Master Servicer agrees to cooperate with
the Trustee in effecting the termination of the Master Servicer's rights and
obligations hereunder, including, without limitation, the transfer to the
Trustee of (i) the property and amounts which are then or should be part of the
Trust or which thereafter become part of the Trust; and (ii) originals or copies
of all documents of the Master Servicer reasonably requested by the Trustee to
enable it to assume the Master Servicer's duties thereunder. In addition to any
other amounts which are then, or, notwithstanding the termination of its
activities under this Agreement, may become payable to the Master Servicer under
this Agreement, the Master Servicer shall be entitled to receive, out of any
amount received on account of a Mortgage Loan or related REO Property, that
portion of such payments which it would have received as reimbursement under
this Agreement if notice of termination had not been given. The termination of
the rights and obligations of the Master Servicer shall not affect any
obligations incurred by the Master Servicer prior to such termination.

      Section 8.02 Trustee to Act; Appointment of Successor. (a) Upon the
receipt by the Master Servicer of a notice of termination pursuant to Section
8.01 or an Opinion of Independent Counsel pursuant to Section 7.05 to the effect
that the Master Servicer is legally unable to act or to delegate its duties to a
Person which is legally able to act, the Trustee shall automatically become the
successor in all respects to the Master Servicer in its capacity under this
Agreement and the transactions set forth or provided for herein and shall
thereafter be subject to all the responsibilities, duties, liabilities and
limitations on liabilities relating thereto placed on the Master Servicer by the
terms and provisions hereof; provided, however, that MLMLI shall have the right
to either (a) immediately assume the duties of the Master Servicer or (b) select
a successor Master Servicer; provided further, however, that the Trustee shall
have no obligation whatsoever with respect to any liability (other than advances
deemed recoverable and not previously made) incurred by the Master Servicer at
or prior to the time of termination. As compensation therefor, the Trustee shall
be entitled to all funds relating to the Mortgage Loans which the Master
Servicer would have been entitled to retain if the Master Servicer had continued
to act hereunder, except for those amounts due the Master Servicer as
reimbursement permitted under this Agreement for advances previously made or
expenses previously incurred. Notwithstanding the above, or anything herein to
the contrary, the Trustee, if it becomes Master Servicer, shall have no
responsibility or obligation (i) to repurchase or substitute any Mortgage Loan,
(ii) for any representation or warranty of the Master Servicer hereunder, and
(iii) for any

                                      -77-
<PAGE>

act or omission of either a predecessor or successor Master Servicer other than
the Trustee. The Trustee may conduct any activity required of it as Master
Servicer hereunder through an Affiliate or through an agent. Neither the Trustee
nor any other successor Master Servicer shall be deemed to be in default
hereunder due to any act or omission of a predecessor Master Servicer, including
but not limited to failure to timely deliver to the Trustee distribution
instructions, any funds required to be deposited to the Trust Fund, or any
breach of its duty to cooperate with a transfer of master servicing.
Notwithstanding the above, the Trustee may, if it shall be unwilling so to act,
or shall, if it is legally unable so to act, appoint or petition a court of
competent jurisdiction to appoint, any established housing and home finance
institution which is a Fannie Mae- or Freddie Mac-approved servicer, and with
respect to a successor to the Master Servicer only, having a net worth of not
less than $10,000,000, as the successor to the Master Servicer hereunder in the
assumption of all or any part of the responsibilities, duties or liabilities of
the Master Servicer hereunder; provided, that the Trustee shall obtain a letter
from each Rating Agency that the ratings, if any, on each of the Certificates
will not be lowered as a result of the selection of the successor to the Master
Servicer. Pending appointment of a successor to the Master Servicer hereunder,
the Trustee shall act in such capacity as hereinabove provided. In connection
with such appointment and assumption, the Trustee may make such arrangements for
the compensation of such successor out of payments on the Mortgage Loans as it
and such successor shall agree; provided, however, that the provisions of
Section 7.06 shall apply, no such compensation shall be in excess of that
permitted the Trustee under this Subsection 8.02(a), and that such successor
shall undertake and assume the obligations of the Trustee to pay compensation to
any third Person acting as an agent or independent contractor in the performance
of master servicing responsibilities hereunder. The Trustee and such successor
shall take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession.

      (b) If the Trustee shall succeed to any duties of the Master Servicer
respecting the Mortgage Loans as provided herein, it shall do so in a separate
capacity and not in its capacity as Trustee and, accordingly, the provisions of
Article IX shall be inapplicable to the Trustee in its duties as the successor
to the Master Servicer in the servicing of the Mortgage Loans (although such
provisions shall continue to apply to the Trustee in its capacity as Trustee);
the provisions of Article VII, however, shall apply to it in its capacity as
successor master servicer.

      Section 8.03 Notification to Certificateholders. Upon any termination or
appointment of a successor to the Master Servicer, the Trustee shall give prompt
written notice thereof to Certificateholders at their respective addresses
appearing in the Certificate Register and to the Rating Agencies.

      Section 8.04 Waiver of Defaults. The Trustee shall transmit by mail to all
Certificateholders, within 60 days after the occurrence of any Event of Default
known to the Trustee, unless such Event of Default shall have been cured, notice
of each such Event of Default hereunder known to the Trustee. The Holders of
Certificates evidencing Percentage Interests aggregating not less than 51% of
the Trust Fund may, on behalf of all Certificateholders, waive any default by
the Master Servicer in the performance of its obligations hereunder and the
consequences thereof, except a default in the making of or the causing to be
made any required distribution on the Certificates. Upon any such waiver of a
past default, such default shall be deemed to cease to exist, and any Event of
Default arising therefrom shall be deemed to have

                                      -78-
<PAGE>

been timely remedied for every purpose of this Agreement. No such waiver shall
extend to any subsequent or other default or impair any right consequent thereon
except to the extent expressly so waived. The Trustee shall give notice of any
such waiver to the Rating Agencies.

      Section 8.05 List of Certificateholders. Upon written request of three or
more Certificateholders of record, for purposes of communicating with other
Certificateholders with respect to their rights under this Agreement, the
Trustee will afford such Certificateholders access during business hours to the
most recent list of Certificateholders held by the Trustee.

                                      -79-
<PAGE>

                                   ARTICLE IX
                           CONCERNING THE TRUSTEE AND
                          THE SECURITIES ADMINISTRATOR

      Section 9.01 Duties of Trustee. (a) The Trustee, prior to the occurrence
of an Event of Default and after the curing or waiver of all Events of Default
which may have occurred, and the Securities Administrator each undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement as duties of the Trustee and the Securities Administrator,
respectively. If an Event of Default has occurred and has not been cured or
waived, the Trustee shall exercise such of the rights and powers vested in it by
this Agreement, and subject to Section 8.02(b) use the same degree of care and
skill in their exercise, as a prudent person would exercise under the
circumstances in the conduct of his own affairs.

      (b) Upon receipt of all resolutions, certificates, statements, opinions,
reports, documents, orders or other instruments which are specifically required
to be furnished to the Trustee and the Securities Administrator pursuant to any
provision of this Agreement, the Trustee and the Securities Administrator,
respectively, shall examine them to determine whether they are in the form
required by this Agreement; provided, however, that neither the Trustee nor the
Securities Administrator shall be responsible for the accuracy or content of any
resolution, certificate, statement, opinion, report, document, order or other
instrument furnished by the Master Servicer; provided, further, that neither the
Trustee nor the Securities Administrator shall be responsible for the accuracy
or verification of any calculation provided to it pursuant to this Agreement.

      (c) On each Distribution Date, the Trustee shall make monthly
distributions and the final distribution to the Certificateholders from funds in
the Distribution Account as provided in Sections 6.01 and 10.01 herein based
solely on the report of the Securities Administrator.

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

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

            (ii) Neither the Trustee nor the Securities Administrator shall be
      liable in its individual capacity for an error of judgment made in good
      faith by a Responsible Officer

                                      -80-
<PAGE>

      or Responsible Officers of the Trustee or an officer of the Securities
      Administrator, respectively, unless it shall be proved that the Trustee or
      the Securities Administrator, respectively, was negligent in ascertaining
      the pertinent facts;

            (iii) Neither the Trustee nor the Securities Administrator shall be
      liable with respect to any action taken, suffered or omitted to be taken
      by it in good faith in accordance with the directions of the Holders of
      Certificates evidencing Percentage Interests aggregating not less than 25%
      of the Trust Fund, if such action or non-action relates to the time,
      method and place of conducting any proceeding for any remedy available to
      the Trustee or the Securities Administrator, respectively, or exercising
      any trust or other power conferred upon the Trustee or the Securities
      Administrator, respectively, under this Agreement;

            (iv) The Trustee shall not be required to take notice or be deemed
      to have notice or knowledge of any default or Event of Default unless a
      Responsible Officer of the Trustee's Corporate Trust Office shall have
      actual knowledge thereof. In the absence of such notice, the Trustee may
      conclusively assume there is no such default or Event of Default;

            (v) The Trustee shall not in any way be liable by reason of any
      insufficiency in any Account held by or in the name of Trustee unless it
      is determined by a court of competent jurisdiction that the Trustee's
      gross negligence or willful misconduct was the primary cause of such
      insufficiency (except to the extent that the Trustee is obligor and has
      defaulted thereon);

            (vi) Anything in this Agreement to the contrary notwithstanding, in
      no event shall the Trustee or the Securities Administrator be liable for
      special, indirect or consequential loss or damage of any kind whatsoever
      (including but not limited to lost profits), even if the Trustee or the
      Securities Administrator, respectively, has been advised of the likelihood
      of such loss or damage and regardless of the form of action; and

            (vii) None of the Securities Administrator, MLMLI, the Master
      Servicer, the Servicer or the Trustee shall be responsible for the acts or
      omissions of the other, it being understood that this Agreement shall not
      be construed to render them partners, joint venturers or agents of one
      another.

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

                                      -81-
<PAGE>

      (e) All funds received by the Master Servicer and the Trustee and required
to be deposited in the Master Servicer Collection Account or Distribution
Account pursuant to this Agreement will be promptly so deposited by the Master
Servicer and the Trustee.

      (f) Except for those actions that the Trustee or the Securities
Administrator is required to take hereunder, neither the Trustee nor the
Securities Administrator shall have any obligation or liability to take any
action or to refrain from taking any action hereunder in the absence of written
direction as provided hereunder.

      Section 9.02 Certain Matters Affecting the Trustee and the Securities
Administrator. Except as otherwise provided in Section 9.01:

            (i) The Trustee and the Securities Administrator may rely and shall
      be protected in acting or refraining from acting in reliance on any
      resolution, certificate of a Depositor, Master Servicer or Servicer,
      certificate of auditors or any other certificate, statement, instrument,
      opinion, report, notice, request, consent, order, appraisal, bond or other
      paper or document believed by it to be genuine and to have been signed or
      presented by the proper party or parties;

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

            (iii) Neither the Trustee nor the Securities Administrator shall be
      under any obligation to exercise any of the trusts or powers vested in it
      by this Agreement, other than its obligation to give notices pursuant to
      this Agreement, or to institute, conduct or defend any litigation
      hereunder or in relation hereto at the request, order or direction of any
      of the Certificateholders pursuant to the provisions of this Agreement,
      unless such Certificateholders shall have offered to the Trustee
      reasonable security or indemnity against the costs, expenses and
      liabilities which may be incurred therein or thereby. Nothing contained
      herein shall, however, relieve the Trustee of the obligation, upon the
      occurrence of an Event of Default of which a Responsible Officer of the
      Trustee's Corporate Trust Office has actual knowledge (which has not been
      cured or waived), subject to Section 8.02(b), to exercise such of the
      rights and powers vested in it by this Agreement, and to use the same
      degree of care and skill in their exercise, as a prudent person would
      exercise under the circumstances in the conduct of his own affairs;

            (iv) Prior to the occurrence of an Event of Default hereunder and
      after the curing or waiver of all Events of Default which may have
      occurred, neither the Trustee nor the Securities Administrator shall be
      liable in its individual capacity for any action taken, suffered or
      omitted by it in good faith and believed by it to be authorized or within
      the discretion or rights or powers conferred upon it by this Agreement;

            (v) Neither the Trustee nor the Securities Administrator shall be
      bound to make any investigation into the facts or matters stated in any
      resolution, certificate, statement, instrument, opinion, report, notice,
      request, consent, order, approval, bond or

                                      -82-
<PAGE>

      other paper or document, unless requested in writing to do so by Holders
      of Certificates evidencing Percentage Interests aggregating not less than
      25% of the Trust Fund and provided that the payment within a reasonable
      time to the Trustee or the Securities Administrator, as applicable, of the
      costs, expenses or liabilities likely to be incurred by it in the making
      of such investigation is, in the opinion of the Trustee or the Securities
      Administrator, as applicable, reasonably assured to the Trustee or the
      Securities Administrator, as applicable, by the security afforded to it by
      the terms of this Agreement. The Trustee or the Securities Administrator
      may require reasonable indemnity against such expense or liability as a
      condition to taking any such action. The reasonable expense of every such
      examination shall be paid by the Certificateholders requesting the
      investigation;

            (vi) The Trustee and the Securities Administrator may execute any of
      the trusts or powers hereunder or perform any duties hereunder either
      directly or through Affiliates, agents or attorneys; provided, however,
      that the Trustee may not appoint any agent to perform its custodial
      functions with respect to the Mortgage Files or paying agent functions
      under this Agreement without the express written consent of the Master
      Servicer, which consent will not be unreasonably withheld. Neither the
      Trustee nor the Securities Administrator shall be liable or responsible
      for the misconduct or negligence of any of the Trustee's or the Securities
      Administrator's agents or attorneys or a custodian or paying agent
      appointed hereunder by the Trustee or the Securities Administrator with
      due care and, when required, with the consent of the Master Servicer;

            (vii) Should the Trustee or the Securities Administrator deem the
      nature of any action required on its part, other than a payment or
      transfer under Subsection 4.01(b) or Section 4.02, to be unclear, the
      Trustee or the Securities Administrator, respectively, may require prior
      to such action that it be provided by the Depositor with reasonable
      further instructions;

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

            (ix) Neither the Trustee nor the Securities Administrator shall be
      required to give any bond or surety with respect to the execution of the
      trust created hereby or the powers granted hereunder, except as provided
      in Subsection 9.07; and

            (x) Neither the Trustee nor the Securities Administrator shall have
      any duty to conduct any affirmative investigation as to the occurrence of
      any condition requiring the repurchase of any Mortgage Loan by the Seller
      pursuant to this Agreement or the Assignment, Assumption and Recognition
      Agreement, or by an Originator pursuant to this Agreement or the Servicing
      Agreement, as applicable, or the eligibility of any Mortgage Loan for
      purposes of this Agreement.

      Section 9.03 Trustee and Securities Administrator Not Liable for
Certificates or Mortgage Loans. The recitals contained herein and in the
Certificates (other than the signature

                                      -83-
<PAGE>

and countersignature of the Trustee on the Certificates) shall be taken as the
statements of the Depositor, and neither the Trustee nor the Securities
Administrator shall have any responsibility for their correctness. Neither the
Trustee nor the Securities Administrator makes any representation as to the
validity or sufficiency of the Certificates (other than the signature and
countersignature of the Trustee on the Certificates) or of any Mortgage Loan
except as expressly provided in Sections 2.02 and 2.05 hereof; provided,
however, that the foregoing shall not relieve the Trustee or the Custodian of
the obligation to review the Mortgage Files pursuant to Sections 2.02 and 2.04.
The Trustee's signature and countersignature (or countersignature of its agent)
on the Certificates shall be solely in its capacity as Trustee of the Trust Fund
and shall not constitute the Certificates an obligation of the Trustee in any
other capacity. Neither the Trustee or the Securities Administrator shall be
accountable for the use or application by the Depositor of any of the
Certificates or of the proceeds of such Certificates, or for the use or
application of any funds paid to the Depositor with respect to the Mortgage
Loans. Subject to the provisions of Section 2.05, neither the Trustee nor the
Securities Administrator shall not be responsible for the legality or validity
of this Agreement or any document or instrument relating to this Agreement, the
validity of the execution of this Agreement or of any supplement hereto or
instrument of further assurance, or the validity, priority, perfection or
sufficiency of the security for the Certificates issued hereunder or intended to
be issued hereunder. Neither the Trustee nor the Securities Administrator shall
at any time have any responsibility or liability for or with respect to the
legality, validity and enforceability of any Mortgage or any Mortgage Loan, or
the perfection and priority of any Mortgage or the maintenance of any such
perfection and priority, or for or with respect to the sufficiency of the Trust
Fund or its ability to generate the payments to be distributed to
Certificateholders, under this Agreement. Neither the Trustee nor the Securities
Administrator shall have any responsibility for filing any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder or to record this Agreement other than any continuation statements
filed by the Trustee pursuant to Section 3.20.

      Section 9.04 Trustee and Securities Administrator May Own Certificates.
The Trustee and the Securities Administrator in its individual capacity or in
any capacity other than as Trustee hereunder may become the owner or pledgee of
any Certificates with the same rights it would have if it were not Trustee or
the Securities Administrator, as applicable, and may otherwise deal with the
parties hereto.

      Section 9.05 Trustee's and Securities Administrator's Fees and Expenses.
The fees and expenses of the Trustee and the Securities Administrator shall be
paid by the Master Servicer in accordance with a side letter agreement. In
addition, the Trustee and the Securities Administrator will be entitled to
recover from the Master Servicer Collection Account pursuant to Section 4.03(b)
all reasonable out-of-pocket expenses, disbursements and advances and the
expenses of the Trustee and the Securities Administrator, respectively, in
connection with any Event of Default, any breach of this Agreement or any claim
or legal action (including any pending or threatened claim or legal action)
incurred or made by the Trustee or the Securities Administrator, respectively,
in the administration of the trusts hereunder (including the reasonable
compensation, expenses and disbursements of its counsel) except any such
expense, disbursement or advance as may arise from its negligence or intentional
misconduct or which is the responsibility of the Certificateholders or the Trust
Fund hereunder. If funds in the Master Servicer Collection Account are
insufficient therefor, the Trustee and the Securities

                                      -84-
<PAGE>

Administrator shall recover such expenses from the Depositor. Such compensation
and reimbursement obligation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust.

      Section 9.06 Eligibility Requirements for Trustee and Securities
Administrator. (a) The Trustee and any successor Trustee and the Securities
Administrator and any successor Securities Administrator shall during the entire
duration of this Agreement be a state bank or trust company or a national
banking association organized and doing business under the laws of such state or
the United States of America, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus and undivided profits of at
least $40,000,000 or, in the case of a successor Trustee, $50,000,000, subject
to supervision or examination by federal or state authority and, in the case of
the Trustee, rated "BBB" or higher by S&P and Fitch with respect to their
long-term rating and rated "BBB" or higher by S&P and Fitch with respect to any
outstanding long-term unsecured unsubordinated debt, and, in the case of a
successor Trustee or successor Securities Administrator other than pursuant to
Section 9.10, rated in one of the two highest long-term debt categories of, or
otherwise acceptable to, each of the Rating Agencies. If the Trustee publishes
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purposes of
this Section 9.06 the combined capital and surplus of such corporation shall be
deemed to be its total equity capital (combined capital and surplus) as set
forth in its most recent report of condition so published. In case at any time
the Trustee or the Securities Administrator shall cease to be eligible in
accordance with the provisions of this Section 9.06, the Trustee or the
Securities Administrator shall resign immediately in the manner and with the
effect specified in Section 9.08.

      (b) In addition, the Securities Administrator (i) may not be an
Originator, Master Servicer, Servicer, the Depositor or an affiliate of the
Depositor unless the Securities Administrator is in an institutional trust
department of the relevant entity, (ii) must be authorized to exercise corporate
trust powers under the laws of its jurisdiction of organization, and (iii) must
be rated at least "A/F1" by Fitch, if Fitch is a Rating Agency, or the
equivalent rating by S&P or Moody's, or such other rating as is acceptable to
Fitch as provided in an Rating Agency Confirmation. If no successor Securities
Administrator shall have been appointed and shall have accepted appointment
within 60 days after the Securities Administrator ceases to be the Securities
Administrator pursuant to Section 9.08, then the Trustee shall perform the
duties of the Securities Administrator pursuant to this Agreement until such
time as a new Securities Administrator is appointed. The Trustee shall notify
the Rating Agencies of any change of Securities Administrator.

      Section 9.07 Insurance. The Trustee and the Securities Administrator, at
their own expense, shall at all times maintain and keep in full force and
effect: (i) fidelity insurance, (ii) theft of documents insurance and (iii)
forgery insurance (which may be collectively satisfied by a "Financial
Institution Bond" and/or a "Bankers' Blanket Bond"). All such insurance shall be
in amounts, with standard coverage and subject to deductibles, as are customary
for insurance typically maintained by banks or their affiliates which act as
custodians for investor-owned mortgage pools. A certificate of an officer of the
Trustee or the Securities Administrator as to the Trustee's or the Securities
Administrator's, respectively, compliance with this Section 9.07 shall be
furnished to any Certificateholder upon reasonable written request.

                                      -85-
<PAGE>

      Section 9.08 Resignation and Removal of the Trustee and Securities
Administrator. (a) The Trustee and the Securities Administrator may at any time
resign and be discharged from the Trust hereby created by giving written notice
thereof to the Depositor and the Master Servicer, with a copy to the Rating
Agencies. Upon receiving such notice of resignation, the Depositor shall
promptly appoint a successor Trustee or successor Securities Administrator, as
applicable, by written instrument, in triplicate, one copy of which instrument
shall be delivered to each of the resigning Trustee or Securities Administrator,
as applicable, the successor Trustee or Securities Administrator, as applicable.
If no successor Trustee or Securities Administrator shall have been so appointed
and have accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Trustee or Securities Administrator may petition any
court of competent jurisdiction for the appointment of a successor Trustee or
Securities Administrator.

      (b) If at any time the Trustee or the Securities Administrator shall cease
to be eligible in accordance with the provisions of Section 9.06 and shall fail
to resign after written request therefor by the Depositor or if at any time the
Trustee or the Securities Administrator shall become incapable of acting, or
shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or the
Securities Administrator, as applicable, or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or the
Securities Administrator, as applicable, or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, then the Depositor shall
promptly remove the Trustee, or shall be entitled to remove the Securities
Administrator, as applicable, and appoint a successor Trustee or Securities
Administrator, as applicable, by written instrument, in triplicate, one copy of
which instrument shall be delivered to each of the Trustee or Securities
Administrator, as applicable, so removed, the successor Trustee or Securities
Administrator, as applicable.

      (c) The Holders of Certificates evidencing Percentage Interests
aggregating not less than 51% of the Trust Fund may at any time remove the
Trustee or the Securities Administrator and appoint a successor Trustee or
Securities Administrator by written instrument or instruments, in quadruplicate,
signed by such Holders or their attorneys-in-fact duly authorized, one complete
set of which instruments shall be delivered to the Depositor, the Master
Servicer, the Securities Administrator (if the Trustee is removed), the Trustee
(if the Securities Administrator is removed), and the Trustee or Securities
Administrator so removed and the successor so appointed.

      (d) No resignation or removal of the Trustee or the Securities
Administrator and appointment of a successor Trustee or Securities Administrator
pursuant to any of the provisions of this Section 9.08 shall become effective
except upon appointment of and acceptance of such appointment by the successor
Trustee or Securities Administrator as provided in Section 9.09.

      Section 9.09 Successor Trustee and Successor Securities Administrator. (a)
Any successor Trustee or Securities Administrator appointed as provided in
Section 9.08 shall execute, acknowledge and deliver to the Depositor and to its
predecessor Trustee or Securities Administrator an instrument accepting such
appointment hereunder. The resignation or removal of the predecessor Trustee or
Securities Administrator shall then become effective and such successor Trustee
or Securities Administrator, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as Trustee or
Securities Administrator herein.

                                      -86-
<PAGE>

The predecessor Trustee or Securities Administrator shall after payment of its
outstanding fees and expenses promptly deliver to the successor Trustee or
Securities Administrator, as applicable, all assets and records of the Trust
held by it hereunder, and the Depositor and the predecessor Trustee or
Securities Administrator, as applicable, shall execute and deliver such
instruments and do such other things as may reasonably be required for more
fully and certainly vesting and confirming in the successor Trustee or
Securities Administrator, as applicable, all such rights, powers, duties and
obligations.

      (b) No successor Trustee or Securities Administrator shall accept
appointment as provided in this Section 9.09 unless at the time of such
acceptance such successor Trustee or Securities Administrator shall be eligible
under the provisions of Section 9.06.

      (c) Upon acceptance of appointment by a successor Trustee or Securities
Administrator as provided in this Section 9.09, the successor Trustee or
Securities Administrator shall mail notice of the succession of such Trustee or
Securities Administrator hereunder to all Certificateholders at their addresses
as shown in the Certificate Register and to the Rating Agencies. MLMLI shall pay
the cost of any mailing by the successor Trustee or Securities Administrator.

      Section 9.10 Merger or Consolidation of Trustee or Securities
Administrator. Any state bank or trust company or national banking association
into which the Trustee or the Securities Administrator may be merged or
converted or with which it may be consolidated or any state bank or trust
company or national banking association resulting from any merger, conversion or
consolidation to which the Trustee or the Securities Administrator,
respectively, shall be a party, or any state bank or trust company or national
banking association succeeding to all or substantially all of the corporate
trust business of the Trustee or the Securities Administrator, respectively,
shall be the successor of the Trustee or the Securities Administrator,
respectively, hereunder, provided such state bank or trust company or national
banking association shall be eligible under the provisions of Section 9.06. Such
succession shall be valid without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

      Section 9.11 Appointment of Co-Trustee or Separate Trustee. (a)
Notwithstanding any other provisions hereof, at any time, for the purpose of
meeting any legal requirements of any jurisdiction in which any part of the
Trust or property constituting the same may at the time be located, the
Depositor and the Trustee acting jointly shall have the power and shall execute
and deliver all instruments to appoint one or more Persons approved by the
Trustee and the Depositor to act as co-trustee or co-trustees, jointly with the
Trustee, or separate trustee or separate trustees, of all or any part of the
Trust, and to vest in such Person or Persons, in such capacity, such title to
the Trust, or any part thereof, and, subject to the other provisions of this
Section 9.11, such powers, duties, obligations, rights and trusts as the
Depositor and the Trustee may consider necessary or desirable.

      (b) If the Depositor shall not have joined in such appointment within 15
days after the receipt by it of a written request so to do, the Trustee shall
have the power to make such appointment without the Depositor.

                                      -87-
<PAGE>

      (c) No co-trustee or separate trustee hereunder shall be required to meet
the terms of eligibility as a successor Trustee under Section 9.06 hereunder and
no notice to Certificateholders of the appointment of co-trustee(s) or separate
trustee(s) shall be required under Section 9.08 hereof.

      (d) In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 9.11, all rights, powers, duties and obligations
conferred or imposed upon the Trustee and required to be conferred on such
co-trustee shall be conferred or imposed upon and exercised or performed by the
Trustee and such separate trustee or co-trustee jointly, except to the extent
that under any law of any jurisdiction in which any particular act or acts are
to be performed (whether as Trustee hereunder or as successor to the Master
Servicer hereunder), the Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Trust or any portion thereof in any such
jurisdiction) shall be exercised and performed by such separate trustee or
co-trustee at the direction of the Trustee.

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

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

      (g) No trustee under this Agreement shall be personally liable by reason
of any act or omission of another trustee under this Agreement. The Depositor
and the Trustee acting jointly may at any time accept the resignation of or
remove any separate trustee or co-trustee.

      Section 9.12 Federal Information Returns and Reports to
Certificateholders; REMIC Administration. (a) For federal income tax purposes,
the taxable year of the REMIC Trust shall be a calendar year and the Securities
Administrator shall maintain or cause the maintenance of the books of such REMIC
Trust on the accrual method of accounting.

      (b) The Securities Administrator shall prepare and file or cause to be
filed with the Internal Revenue Service, and the Trustee shall sign, federal tax
information returns or elections required to be made hereunder with respect to
the REMIC Trust, the Trust Fund, if applicable, and the Certificates containing
such information and at the times and in the manner as may be required by the
Code or applicable Treasury regulations, and shall furnish to each Holder of

                                      -88-
<PAGE>

Certificates at any time during the calendar year for which such returns or
reports are made such statements or information at the times and in the manner
as may be required thereby, including, without limitation, reports relating to
interest, original issue discount and market discount or premium (using a
constant prepayment assumption of 25% CPR for the Mortgage Loans). The
Securities Administrator will apply for an Employee Identification Number from
the IRS under Form SS-4 or any other acceptable method for all tax entities. In
connection with the foregoing, the Securities Administrator shall timely prepare
and file, and the Trustee shall sign, IRS Form 8811, which shall provide the
name and address of the person who can be contacted to obtain information
required to be reported to the holders of regular interests in the REMIC Trust
(the "REMIC Reporting Agent"). The Trustee shall make an election to treat the
REMIC Trust as a REMIC (which elections shall apply to the taxable period ending
December 31, 2004 and each calendar year thereafter) in such manner as the Code
or applicable Treasury regulations may prescribe, and as described by the
Securities Administrator. The Trustee shall sign all tax information returns
filed pursuant to this Section and any other returns as may be required by the
Code. The Holder of the Class R Certificate is hereby designated as the "Tax
Matters Person" (within the meaning of Treas. Reg. ss.ss.1.860F-4(d)) for the
REMIC Trust. The Securities Administrator is hereby designated and appointed as
the agent of each such Tax Matters Person. Any Holder of a Residual Certificate
will by acceptance thereof appoint the Securities Administrator as agent and
attorney-in-fact for the purpose of acting as Tax Matters Person for the REMIC
Trust during such time as the Securities Administrator does not own any such
Residual Certificate. In the event that the Code or applicable Treasury
regulations prohibit the Trustee from signing tax or information returns or
other statements, or the Securities Administrator from acting as agent for the
Tax Matters Person, the Trustee and the Securities Administrator shall take
whatever action that in its sole good faith judgment is necessary for the proper
filing of such information returns or for the provision of a tax matters person,
including designation of the Holder of a Residual Certificate to sign such
returns or act as tax matters person. Each Holder of a Residual Certificate
shall be bound by this Section.

      (c) The Securities Administrator shall provide upon request and receipt of
reasonable compensation, such information as required in Section 860D(a)(6)(B)
of the Code to the Internal Revenue Service, to any Person purporting to
transfer a Residual Certificate to a Person other than a transferee permitted by
Section 5.05(b), and to any regulated investment company, real estate investment
trust, common trust fund, partnership, trust, estate, organization described in
Section 1381 of the Code, or nominee holding an interest in a pass-through
entity described in Section 860E(e)(6) of the Code, any record holder of which
is not a transferee permitted by Section 5.05(b) (or which is deemed by statute
to be an entity with a disqualified member).

      (d) The Securities Administrator shall prepare and file or cause to be
filed, and the Trustee shall sign, any state income tax returns required under
Applicable State Law with respect to the REMIC Trust or the Trust Fund.

      (e) Notwithstanding any other provision of this Agreement, the Trustee and
the Securities Administrator shall comply with all federal withholding
requirements respecting payments to Certificateholders of interest or original
issue discount on the Mortgage Loans, that the Trustee or the Securities
Administrator reasonably believes are applicable under the Code. The consent of
Certificateholders shall not be required for such withholding. In the event the
Trustee or the Securities Administrator withholds any amount from interest or
original issue

                                      -89-
<PAGE>

discount payments or advances thereof to any Certificateholder pursuant to
federal withholding requirements, the Trustee or the Securities Administrator
shall, together with its monthly report to such Certificateholders, indicate
such amount withheld.

      (f) The Trustee and the Securities Administrator agree to indemnify the
Trust Fund and the Depositor for any taxes and costs including, without
limitation, any reasonable attorneys fees imposed on or incurred by the Trust
Fund, the Depositor or the Master Servicer, as a result of a breach of the
Trustee's covenants and the Securities Administrator's covenants, respectively,
set forth in this Section 9.12; provided, however, such liability and obligation
to indemnify in this paragraph shall not be joint and several and neither the
Trustee nor the Securities Administrator shall be liable or be obligated to
indemnify the Trust Fund for the failure by the other to perform any duty under
this Agreement or the breach by the other of any covenant in this Agreement.

                                      -90-
<PAGE>

                                   ARTICLE X
                                   TERMINATION

      Section 10.01 Termination Upon Repurchase by the Depositor or its Designee
or Liquidation of the Mortgage Loans.

      (a) The respective obligations and responsibilities of the Master
Servicer, the Depositor and the Trustee created hereby (other than the
obligation of the Trustee to make certain payments to Certificateholders after
the final Distribution Date and the obligation of the Master Servicer to send
certain notices as hereinafter set forth) shall terminate upon notice to the
Trustee upon the earliest of (i) the Distribution Date on which the Class
Certificate Balance of each Class of Class A Certificates has been reduced to
zero, (ii) the final payment or other liquidation of the last Mortgage Loan in
the Trust, and (iii) the optional purchase by the Master Servicer of the
Mortgage Loans as described below. Notwithstanding the foregoing, in no event
shall the trust created hereby continue beyond the expiration of 21 years from
the death of the last survivor of the descendants of Joseph P. Kennedy, the late
ambassador of the United States to the Court of St. James's, living on the date
hereof.

      (b) The Master Servicer may, at its option, terminate this Agreement on
any date on which the Loan Balance is less than 1% of the aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date or by purchasing,
on the next succeeding Distribution Date, all of the outstanding Mortgage Loans
and REO Properties at a price equal to the sum of the outstanding Stated
Principal Balance of the Mortgage Loans and accrued and unpaid interest thereon
at the weighted average of the Loan Rates through the end of the Due Period
preceding the final Distribution Date plus unreimbursed Servicing Advances,
Advances and any unpaid Servicing Fees allocable to such Mortgage Loans and REO
Properties (the "Termination Price").

      (c) In connection with any such purchase pursuant to the preceding
paragraph, the Master Servicer shall deposit in the Distribution Account all
amounts then on deposit in the Collection Account (less amounts permitted to be
withdrawn by the Master Servicer pursuant to Section 3.10), which deposit shall
be deemed to have occurred immediately preceding such purchase.

      (d) Any such purchase shall be accomplished by deposit into the
Distribution Account on the Business Day before such Distribution Date of the
Termination Price and the delivery of an opinion of counsel that such
termination is a "qualified liquidation" under Section 860F of the Code.

      (e) Notice of any termination, specifying the Distribution Date (which
shall be a date that would otherwise be a Distribution Date) upon which the
Certificateholders may surrender their Certificates to the Trustee for payment
of the final distribution and cancellation, shall be given promptly by the
Trustee upon the Trustee receiving notice of such date from the Master Servicer,
by letter to the Certificateholders mailed not earlier than the 15th day and not
later than the 25th day of the month next preceding the month of such final
distribution specifying (1) the Distribution Date upon which final distribution
of the Certificates will be made upon presentation and surrender of such
Certificates at the office or agency of the Trustee therein designated, (2) the
amount of any such final distribution and (3) that the Record Date otherwise

                                      -91-
<PAGE>

applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of the Certificates at the office or agency
of the Trustee therein specified.

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

      (g) In the event that all Certificateholders shall not surrender their
Certificates for final payment and cancellation on or before such final
Distribution Date, the Trustee shall promptly following such date cause all
funds in the Distribution Account not distributed in final distribution to
Certificateholders to be withdrawn therefrom and credited to the remaining
Certificateholders by depositing such funds in a separate servicing account for
the benefit of such Certificateholders, and the Master Servicer (if the Master
Servicer has exercised its right to purchase the Mortgage Loans) or the Trustee
(in any other case) shall give a second written notice to the remaining
Certificateholders, to surrender their Certificates for cancellation and receive
the final distribution with respect thereto. If within nine months after the
second notice all the Certificates shall not have been surrendered for
cancellation, the Class R Certificateholders shall be entitled to all unclaimed
funds and other assets which remain subject hereto, and the Trustee upon
transfer of such funds shall be discharged of any responsibility for such funds,
and the Certificateholders shall look to the Class R Certificateholders for
payment.

      Section 10.02 Additional Termination Requirements. (a) In the event that
the Master Servicer exercises its purchase option as provided in Section 10.01,
the Trust Fund shall be terminated in accordance with the following additional
requirements, unless the Trustee shall have been furnished with an Opinion of
Counsel to the effect that the failure of the Trust to comply with the
requirements of this Section will not (i) result in the imposition of taxes on
"prohibited transactions" of the Trust as defined in Section 860F of the Code or
(ii) cause the Trust Fund constituting part of the Trust Fund to fail to qualify
as a REMIC at any time that any Certificates are outstanding:

            (i) Within 90 days prior to the final Distribution Date, the Trustee
      shall adopt and sign a plan of complete liquidation of the Trust Fund
      meeting the requirements of a "qualified liquidation" under Section 860F
      of the Code and any regulations thereunder;

            (ii) At or after the time of adoption of such a plan of complete
      liquidation and at or prior to the final Distribution Date, the Trustee
      shall sell all of the assets of the Trust to the Master Servicer for cash
      pursuant to the terms of the plan of complete liquidation; and

            (iii) At the time of the making of the final payment on the
      Certificates, the Trustee shall distribute or credit, or cause to be
      distributed or credited (A) to the Holders of each of the Class A, Class B
      and Class M Certificates, an amount equal to the sum of the related Class
      Certificate Balance and one month's interest thereon at the applicable
      Pass-Through Rate and (B) to the Class R Certificateholders, all cash on
      hand after such

                                      -92-
<PAGE>

      payment to the Class A, Class M and Class B Certificateholders (other than
      cash retained to meet claims) and the Trust shall terminate at such time.

      (b) By their acceptance of Certificates, the Holders thereof hereby agree
to appoint the Trustee as their attorney in fact to: (i) adopt such a plan of
complete liquidation (and the Certificateholders hereby appoint the Trustee as
their attorney in fact to sign such plan) as appropriate and (ii) to take such
other action in connection therewith as may be reasonably required to carry out
such plan of complete liquidation all in accordance with the terms hereof.

                                      -93-
<PAGE>

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

      Section 11.01 Intent of Parties. The parties intend that the REMIC Trust
shall be treated as a REMIC for federal income tax purposes and that the
provisions of this Agreement should be construed in furtherance of this intent.

      Section 11.02 Amendment. (a) This Agreement may be amended from time to
time by MLMLI, the Depositor, the Master Servicer, the Securities Administrator
and the Trustee, and the Servicing Agreement may be amended from time to time by
MLMLI, the Master Servicer and the Trustee, without notice to or the consent of
any of the Certificateholders, to cure any ambiguity, to correct or supplement
any provisions herein or therein that may be defective or inconsistent with any
other provisions herein or therein, to comply with any changes in the Code or to
make any other provisions with respect to matters or questions arising under
this Agreement which shall not be inconsistent with the provisions of this
Agreement; provided, however, that such action shall not, as evidenced by an
Opinion of Independent Counsel, addressed to the Trustee, adversely affect in
any material respect the interests of any Certificateholder or adversely affect
the status of the REMIC Trust created hereunder as a REMIC.

      (b) This Agreement may also be amended from time to time by MLMLI, the
Master Servicer, the Depositor, the Securities Administrator and the Trustee,
and the Servicing Agreement may also be amended from time to time by the Master
Servicer and the Trustee, with the consent of the Holders of Certificates
evidencing Percentage Interests aggregating not less than 51% of the Trust Fund
or of the applicable Class or Classes, if such amendment affects only such Class
or Classes, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Certificateholders; provided, however, that no such
amendment shall (i) reduce in any manner the amount of, or delay the timing of,
payments received on Mortgage Loans which are required to be distributed on any
Regular Certificate without the consent of the Holder of such Regular
Certificate, (ii) reduce the aforesaid percentage of Certificates the Holders of
which are required to consent to any such amendment, without the consent of the
Holders of all Certificates then outstanding, or (iii) cause the REMIC Trust to
fail to qualify as a REMIC for federal income tax purposes, as evidenced by an
Opinion of Independent Counsel which shall be provided to the Trustee other than
at the Trustee's expense. Notwithstanding any other provision of this Agreement,
for purposes of the giving or withholding of consents pursuant to Section
11.02(b), Certificates registered in the name of or held for the benefit of the
Depositor, the Securities Administrator, the Master Servicer, or the Trustee or
any Affiliate thereof shall be entitled to vote their Percentage Interests with
respect to matters affecting such Certificates.

      (c) Promptly after the execution of any such amendment, the Trustee shall
furnish a copy of such amendment or written notification of the substance of
such amendment to each Certificateholder, with a copy to the Rating Agencies.

      (d) In the case of an amendment under Subsection 11.02(b) above, it shall
not be necessary for the Certificateholders to approve the particular form of
such an amendment. Rather, it shall be sufficient if the Certificateholders
approve the substance of the amendment.

                                      -94-
<PAGE>

The manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

      (e) Prior to the execution of any amendment to this Agreement, the Trustee
shall be entitled to receive and rely upon an Opinion of Counsel stating that
the execution of such amendment is authorized or permitted by this Agreement and
will not adversely affect the status of the REMIC Trust created hereunder. The
Trustee and the Securities Administrator may, but shall not be obligated to,
enter into any such amendment which affects the Trustee's or the Securities
Administrator's own respective rights, duties or immunities under this
Agreement.

      Section 11.03 Recordation of Agreement. To the extent permitted by
applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the Mortgaged Properties are situated, and
in any other appropriate public recording office or elsewhere. The Depositor
shall effect such recordation, at the expense of the Trust upon the request in
writing of a Certificateholder, but only if such direction is accompanied by an
Opinion of Counsel (provided at the expense of the Certificateholder requesting
recordation) to the effect that such recordation would materially and
beneficially affect the interests of the Certificateholders or is required by
law.

      Section 11.04 Limitation on Rights of Certificateholders. (a) The death or
incapacity of any Certificateholder shall not terminate this Agreement or the
Trust, nor entitle such Certificateholder's legal representatives or heirs to
claim an accounting or to take any action or proceeding in any court for a
partition or winding up of the Trust, nor otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

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

      (c) No Certificateholder shall have any right by virtue of any provision
of this Agreement to institute any suit, action or proceeding in equity or at
law upon, under or with respect to this Agreement against the Depositor, the
Securities Administrator, the Master Servicer or any successor to any such
parties unless (i) such Certificateholder previously shall have given to the
Trustee a written notice of a continuing default, as herein provided, (ii) the
Holders of Certificates evidencing Percentage Interests aggregating not less
than 51% of the Trust Fund shall have made written request upon the Trustee to
institute such action, suit or proceeding in its own name as Trustee hereunder
and shall have offered to the Trustee such reasonable indemnity as it may
require against the costs and expenses and liabilities to be incurred therein or
thereby, and (iii) the Trustee, 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.

                                      -95-
<PAGE>

      (d) No one or more Certificateholders shall have any right by virtue of
any provision of this Agreement to affect the rights of any other
Certificateholders or to obtain or seek to obtain priority or preference over
any other such Certificateholder, or to enforce any right under this Agreement,
except in the manner herein provided and for the equal, ratable and common
benefit of all Certificateholders. For the protection and enforcement of the
provisions of this Section 11.04, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

      Section 11.05 Acts of Certificateholders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Agreement to be given or taken by Certificateholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Certificateholders in person or by an agent duly appointed in writing.
Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is expressly required, to the Depositor. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Agreement and conclusive in favor of the Trustee and the
Depositor, if made in the manner provided in this Section 11.05.

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

      (c) The ownership of Certificates (notwithstanding any notation of
ownership or other writing on such Certificates, except an endorsement in
accordance with Section 5.02 made on a Regular Certificate presented in
accordance with Section 5.04) shall be proved by the Certificate Register, and
neither the Trustee, the Securities Administrator, the Depositor, the Master
Servicer nor any successor to any such parties shall be affected by any notice
to the contrary.

      (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action of the holder of any Regular Certificate shall bind every future
holder of the same Regular Certificate and the holder of every Regular
Certificate issued upon the registration of transfer or exchange thereof, if
applicable, or in lieu thereof with respect to anything done, omitted or
suffered to be done by the Trustee, the Securities Administrator, the Depositor,
the Master Servicer or any successor to any such party in reliance thereon,
whether or not notation of such action is made upon such Certificates.

      (e) In determining whether the Holders of the requisite percentage of
Certificates evidencing Percentage Interests have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Certificates
owned by the Trustee, the Securities Administrator, the Depositor, the Master
Servicer or any Affiliate thereof shall be disregarded, except as otherwise

                                      -96-
<PAGE>

provided in Section 11.02(b) and except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Certificates which the Trustee knows
to be so owned shall be so disregarded. Certificates which have been pledged in
good faith to the Trustee, the Securities Administrator, the Depositor, the
Master Servicer or any Affiliate thereof may be regarded as outstanding if the
pledgor establishes to the satisfaction of the Trustee the pledgor's right to
act with respect to such Certificates and that the pledgor is not an Affiliate
of the Trustee, the Securities Administrator, the Depositor, or the Master
Servicer, as the case may be.

      Section 11.06 Governing Law. THIS AGREEMENT AND THE CERTIFICATES SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE
TO ITS CONFLICT OF LAWS RULES AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

      Section 11.07 Notices. All demands and notices hereunder shall be in
writing and shall be deemed given when delivered at (including delivery by
facsimile) or mailed by registered mail, return receipt requested, postage
prepaid, or by recognized overnight courier, to (i) in the case of the
Depositor, 4 World Financial Center, New York, New York 10281, Attention: Vice
President-Servicing, telecopier number: (212) 449-1000, or to such other address
as may hereafter be furnished to the other parties hereto in writing; (ii) in
the case of the Trustee, at its Corporate Trust Office, or such other address as
may hereafter be furnished to the other parties hereto in writing; (iii) in the
case of the MLMLI, 4 World Financial Center, New York, New York 10281,
Attention: Vice President-Servicing, telecopier number: (212) 449-1000, or to
such other address as may hereafter be furnished to the other parties hereto in
writing; (iv) in the case of the Master Servicer or Securities Administrator,
Wells Fargo Bank, National Association, P.O. Box 98, Columbia, Maryland 21046,
Attention: MLMI Series 2004-A4, or, in the case of overnight deliveries, 9062
Old Annapolis Road, Columbia, Maryland 21045-1951, Attention: MLMI series
2004-A4, facsimile no.: (410) 715-4513, or such other address as may hereafter
be furnished to the other parties hereto in writing; (v) in the case of the
Custodian, Wells Fargo Bank, National Association, 1015 10th Avenue Southeast,
MS 0031, Minneapolis, Minnesota 55414 Attention: MLMI Series 2004-A4; or such
other address as may hereafter be furnished to the other parties hereto in
writing; or (vi) in the case of the Rating Agencies, Standard & Poor's, a
division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York
10041, and Fitch, Inc., One State Street Plaza - 32nd Floor, New York, New York
10004. Any notice delivered to the Depositor, the Master Servicer, the
Securities Administrator or the Trustee under this Agreement shall be effective
only upon receipt. Any notice required or permitted to be mailed to a
Certificateholder, unless otherwise provided herein, shall be given by
first-class mail, postage prepaid, at the address of such Certificateholder as
shown in the Certificate Register. Any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given when mailed, whether or not the Certificateholder receives such notice.

      Section 11.08 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severed from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way

                                      -97-
<PAGE>

affect the validity or enforceability of the other provisions of this Agreement
or of the Certificates or the rights of the holders thereof.

      Section 11.09 Successors and Assigns. The provisions of this Agreement
shall be binding upon and inure to the benefit of the respective successors and
assigns of the parties hereto.

      Section 11.10 Article and Section Headings. The article and section
headings herein are for convenience of reference only, and shall not limit or
otherwise affect the meaning hereof.

      Section 11.11 Counterparts. This Agreement may be executed in two or more
counterparts each of which when so executed and delivered shall be an original
but all of which together shall constitute one and the same instrument.

      Section 11.12 Notice to Rating Agencies. The article and section headings
herein are for convenience of reference only, and shall not limited or otherwise
affect the meaning hereof. The Trustee shall promptly provide notice to each
Rating Agency with respect to each of the following of which it has actual
knowledge:

      1. Any material change or amendment to this Agreement or the Servicing
Agreement;

      2. The occurrence of any Event of Default that has not been cured;

      3. The resignation or termination of the Master Servicer, the Trustee or
the Securities Administrator;

      4. The repurchase or substitution of Mortgage Loans;

      5. The final payment to Certificateholders; and

      6. Any change in the location of the Master Servicer Collection Account or
the Distribution Account.

      Section 11.13 Third Party Beneficiary. For purposes of Sections 3.07,
3.08, 3.15(c), 4.01 and 4.05 of this Agreement, Washington Mutual Bank, FA shall
be considered a third party beneficiary entitled to all the rights and benefits
accruing to any servicer herein as if it were a direct party to this agreement.

                                      -98-
<PAGE>

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

                             MERRILL LYNCH MORTGAGE INVESTORS, INC., as
                             Depositor

                             By: /s/ Andrew Beal
                               ------------------------------------------------
                                 Name: Andrew Beal
                                 Title:  Managing Director

                             WACHOVIA BANK, NATIONAL ASSOCIATION, as Trustee

                             By: /s/ Bryon M.  Tinnin
                               ------------------------------------------------
                                 Name:  Bryon M. Tinnin
                                 Title:  Assistant Vice President

                             WELLS FARGO BANK, NATIONAL ASSOCIATION, as
                             Master Servicer

                             By: /s/ Peter J. Masterman
                               ------------------------------------------------
                                 Name:  Peter J. Masterman
                                 Title:  Vice President

                             WELLS FARGO BANK, NATIONAL ASSOCIATION, as
                             Securities Administrator

                             By: /s/ Peter J. Masterman
                               ------------------------------------------------
                                 Name:  Peter J. Masterman
                                 Title:  Vice President

<PAGE>

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

      On the ___ day of October, 2004 before me, a notary public in and for said
State, personally appeared ___________________, known to me to be a(n)
____________________ of Merrill Lynch Mortgage Investors, Inc., the corporation
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                        ------------------------------
                                        Notary Public

[Notarial Seal]

<PAGE>

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

      On the _____ day of October, 2004 before me, a notary public in and for
said State, personally appeared __________________, known to me to be a(n)
_________________ of Wachovia Bank, National Association, the entity that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said entity, and acknowledged to me that such entity
executed the within instrument.

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

                                          ------------------------------
                                          Notary Public

[Notarial Seal]

<PAGE>

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

      On the _____ day of October, 2004 before me, a notary public in and for
said State, personally appeared _____________________, known to me to be a(n)
_______________________ of Wells Fargo Bank, National Association, the entity
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said entity, and acknowledged to me that such entity
executed the within instrument.

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

                                         ------------------------------
                                         Notary Public

[Notarial Seal]

<PAGE>

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

      On the ___ day of October, 2004 before me, a notary public in and for said
State, personally appeared _________________, known to me to be a(n)
__________________ of Wells Fargo Bank, National Association, the entity that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said entity, and acknowledged to me that such entity
executed the within instrument.

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

                                   ------------------------------
                                   Notary Public

[Notarial Seal]

<PAGE>

                                                                     EXHIBIT A-1

                      FORM OF CLASS [A-_][M-_] CERTIFICATE

          SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

          [THIS CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES [THE CLASS
M-1 CERTIFICATES AND THE CLASS M-2 CERTIFICATES] AND THE RESIDUAL CERTIFICATES
TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.]

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN
THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

          [EACH BENEFICIAL OWNER OF A CLASS M CERTIFICATE OR ANY INTEREST
THEREIN SHALL BE DEEMED TO HAVE REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR
HOLDING OF THAT CERTIFICATE OR INTEREST THEREIN, THAT EITHER (I) IT IS NOT A
PLAN OR A PLAN INVESTOR OR INVESTING WITH PLAN ASSETS, (II) IT HAS ACQUIRED AND
IS HOLDING SUCH CERTIFICATE IN RELIANCE ON THE PROHIBITED TRANSACTION EXEMPTION
90-29 ISSUED BY THE DEPARTMENT OF LABOR, AS AMENDED ("EXEMPTION"), AND THAT IT
UNDERSTANDS THAT THERE ARE CERTAIN CONDITIONS TO THE AVAILABILITY OF THE
EXEMPTION, INCLUDING THAT THE CERTIFICATE MUST BE RATED, AT THE TIME OF
PURCHASE, NOT LOWER THAN "BBB-" (OR ITS EQUIVALENT) BY FITCH, MOODY'S OR S&P, OR
(III) (1) IT IS AN INSURANCE COMPANY, (2) THE SOURCE OF FUNDS USED TO ACQUIRE OR
HOLD THE CERTIFICATE OR INTEREST THEREIN IS AN "INSURANCE COMPANY GENERAL
ACCOUNT," AS SUCH TERM IS DEFINED IN PTCE 95-60, AND (3) THE CONDITIONS IN
SECTIONS I AND III OF PTCE 95-60 HAVE BEEN SATISFIED.]

          [IF ANY BOOK-ENTRY CERTIFICATE (OR ANY INTEREST THEREIN) IS ACQUIRED
OR HELD IN VIOLATION OF THE PROVISIONS OF SECTION 5.02(D) OF THE POOLING AND
SERVICING AGREEMENT, THEN THE LAST PRECEDING TRANSFEREE THAT IS IN COMPLIANCE
WITH SUCH PROVISIONS SHALL BE RESTORED, TO THE EXTENT PERMITTED BY LAW, TO ALL
RIGHTS AND OBLIGATIONS AS CERTIFICATE OWNER THEREOF RETROACTIVE TO THE DATE OF
SUCH TRANSFER OF SUCH CERTIFICATE. THE TRUSTEE SHALL BE

<PAGE>

UNDER NO LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON SUCH CERTIFICATE
TO SUCH PRECEDING TRANSFEREE.]

          [ANY PURPORTED CERTIFICATE OWNER WHOSE ACQUISITION OR HOLDING OF ANY
BOOK-ENTRY CERTIFICATE (OR INTEREST THEREIN) WAS EFFECTED IN VIOLATION OF THE
RESTRICTIONS IN SECTION 5.02(D) OF THE AGREEMENT SHALL INDEMNIFY AND HOLD
HARMLESS THE DEPOSITOR, THE TRUSTEE, THE SERVICER AND THE TRUST FUND FROM AND
AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED BY SUCH
PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.]

                                     A-1-2
<PAGE>

<TABLE>
<S>                                           <C>
MLMI Series 2004-A4, Class [A-_][M-_]           Aggregate [Class Certificate Balance] of the
                                                Class [A-_][M-_] Certificates as of the Issue
                                                Date: $__________

Pass-Through Rate: __________                   Initial [Class Certificate Balance] of this
                                                Class [A-_][M-_] Certificate as of the Issue
                                                Date $__________

Date of Agreement and Cut-off Date:             Master Servicer:
October 1, 2004                                 Wells Fargo Bank, National Association

First Distribution Date: November 26, 2004      Trustee: Wachovia Bank, National
                                                Association

No. __                                          Issue Date: October 29, 2004

                                                CUSIP: ___________
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE [CLASS CERTIFICATE BALANCE] OF THIS
          CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
          OUTSTANDING [CLASS CERTIFICATE BALANCE] HEREOF AT ANY TIME MAY BE LESS
          THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.

                        MORTGAGE PASS-THROUGH CERTIFICATE

                               MLMI SERIES 2004-A4

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of a pool of one- to four-family, fixed-rate and
adjustable-rate mortgage loans secured by first liens on residential property
(the "Mortgage Loans") formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          MERRILL LYNCH MORTGAGE INVESTORS, INC., THE MASTER SERVICER, THE
          TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
          CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY
          AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that Cede & Co. is the registered owner of a Percentage
Interest obtained by dividing the denomination of this Certificate by the
aggregate [Class Certificate Balance] of the Class [A-_][M-_] Certificates as of
the Issue Date in that certain beneficial

                                     A-1-3
<PAGE>

ownership interest evidenced by all the Class [A-_][M-_] Certificates in the
Trust Fund created pursuant to a Pooling and Servicing Agreement, dated as
specified above (the "Agreement"), among Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor," which term includes any successor entity
under the Agreement), Wells Fargo Bank, National Association as master servicer
(in such capacity, the "Master Servicer") and securities administrator (in such
capacity, the "Securities Administrator"), and Wachovia Bank, National
Association (the "Trustee"), a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

          Interest on this Certificate will accrue during the period specified
in the Agreement on the [Class Certificate Balance] hereof at a per annum rate
equal to the Pass-Through Rate set forth above and as further described in the
Agreement.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class [A-_][M-_] Certificates on such
Distribution Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date and is the registered owner of Class [A-_][M-_] Certificates,
or otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon the presentation and surrender of this Certificate at
the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

          [As described above, each any transferee of a Class M Certificate or
any interest therein shall be deemed to have represented, by virtue of its
acquisition or holding of that certificate or interest therein, that either (i)
it is not a Plan or a Plan Investor or investing with Plan assets, (ii) it has
acquired and is holding such certificate in reliance on the Prohibited
Transaction Exemption 90-29 issued by the Department of Labor, as amended
("Exemption"), and that it understands that there are certain conditions to the
availability of the Exemption, including that the certificate must be rated, at
the time of purchase, not lower than "BBB-" (or its equivalent) by Fitch,
Moody's or S&P, or (iii) (1) it is an insurance company, (2) the source of funds
used to acquire or hold the certificate or interest therein is an "insurance
company general account," as such term is defined in PTCE 95-60, and (3) the
conditions in Sections I and III of PTCE 95-60 have been satisfied.]

                                     A-1-4
<PAGE>

          [If any Book-Entry Certificate (or any interest therein) is acquired
or held in violation of the provisions of Section 5.02(d) of the Agreement, then
the last preceding Transferee that is in compliance with such provisions shall
be restored, to the extent permitted by law, to all rights and obligations as
Certificate Owner thereof retroactive to the date of such Transfer of such
Certificate. The Trustee shall be under no liability to any Person for making
any payments due on such Certificate to such preceding Transferee.]

          [Any purported Certificate Owner whose acquisition or holding of any
Book-Entry Certificate (or interest therein) was effected in violation of the
restrictions in Section 5.02(d) of the Agreement shall indemnify and hold
harmless the Depositor, the Trustee, the Servicer and the Trust Fund from and
against any and all liabilities, claims, costs or expenses incurred by such
parties as a result of such acquisition or holding.]

          This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (hereinafter called the "Certificates") and representing a
Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
[Class Certificate Balance] of the Class of Certificates specified on the face
hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to Holders
of the Certificates, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions and conditions provided
therein, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer and the Trustee and the rights
of the Holders of the Certificates under the Agreement at any time by the
Depositor, the Master Servicer and the Trustee, with the consent of the Holders
of Certificates evidencing Percentage Interests aggregating not less than 51% of
the Trust Fund or of the applicable Class or Classes, if such amendment affects
only such Class or Classes, for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement or
of modifying in any manner the rights of the Certificateholders. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations set
forth therein, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

                                     A-1-5
<PAGE>

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations set forth therein, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          This certificate shall be governed by and construed in accordance with
the laws of the state of New York.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment (or provision for payment) to the Holders
of the Certificates of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the final payment (or any advance with respect thereto) on or other
liquidation of the last Mortgage Loan remaining in the Trust Fund and (ii) the
optional purchase by the party designated in the Agreement at a price determined
as provided in the Agreement from the Trust Fund of all the Mortgage Loans and
all property acquired in respect of such Mortgage Loans remaining therein. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase from the Trust Fund all the Mortgage Loans and all property acquired
in respect of any Mortgage Loan remaining therein at a price determined as
provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Loan Balance of the Mortgage Loans at the time of purchase being
less than 1% of the aggregate Stated Principal Balance of the Mortgage Loans as
of the Cut-off Date.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-1-6
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: _____________, 2004

                                        WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:  __________________________________
                                              Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Class [A-_][M-_] Certificates referred to in the
within-mentioned Agreement.

                                        WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as Certificate Registrar

                                        By: ___________________________________
                                             Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

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

  TEN COM - as tenants in common          UNIF GIFT MIN ACT - CUSTODIAN
                                                             (Cust)(Minor)
                                                             under Uniform Gifts
                                                             to Minors Act
                                                             __________________
                                                                 (State)
  TEN ENT - as tenants by the entireties

  JT TEN  - as joint tenants with right
            of survivorship and not as
              tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

the Percentage Interest evidenced by the Mortgage Pass-Through Certificate and
hereby authorize(s) the registration of transfer of such interest to assignee on
the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:
_______________________________________________________________________________
_______________________________________________________________________________

Dated:

                                        _______________________________________
                                        Signature by or on behalf of assignor

                                        _______________________________________
                                        Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _______________________________________________,
for the account of ________________________, account number _________________,
or, if mailed by check, to ________________________________. Applicable
statements should be mailed to _______________________________________________.

          This information is provided by ____________________________________,
the assignee named above, or __________________________, as its agent.

<PAGE>

                                                                     EXHIBIT A-2

                         FORM OF CLASS [B-_] CERTIFICATE

          SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT", AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

          THIS CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES AND THE
CLASS M CERTIFICATES TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO
HEREIN.

          NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE CODE WILL BE REGISTERED
EXCEPT IN ACCORDANCE WITH SECTION 5.02(D) OF THE AGREEMENT.

          THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND
LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION
UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

<PAGE>

<TABLE>
<S>                                            <C>
MLMI Series 2004-A4, Class [B-_]                Aggregate Certificate Principal Balance of
                                                Class [B-_] Certificates as of the Issue Date:
                                                $__________________

Pass Through Rate: __________                   Denomination: $__________

Date of Agreement and Cut-off Date:             Master Servicer:
October 1, 2004                                 Wells Fargo Bank, National Association

First Distribution Date: November 26, 2004      Trustee: Wachovia Bank, National Association

[  ], 2004                                      Issue Date: October 29, 2004
No. __                                          CUSIP: __________
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
          CERTIFICATE.

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of a pool of conventional, one- to four-family, fixed-rate
and adjustable-rate mortgage loans secured by first liens on residential
property (the "Mortgage Loans") formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

                               MLMI SERIES 2004-A4

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          MERRILL LYNCH MORTGAGE INVESTORS, INC., THE MASTER SERVICER, THE
          TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
          CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY
          AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ____________________ is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class [B-_] Certificates
as of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class [B-_] Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among

                                     A-2-2
<PAGE>

Merrill Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), Wells Fargo Bank,
National Association as master servicer (in such capacity, the "Master
Servicer") and securities administrator (in such capacity, the "Securities
Administrator"), and Wachovia Bank, National Association (the "Trustee"), a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class [B-_] Certificates on such
Distribution Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by or on behalf of the Trustee by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Trustee in writing at
least five Business Days prior to the Record Date immediately prior to such
Distribution Date and is the registered owner of Class [B-_] Certificates, or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon the presentation and surrender of this Certificate at
the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

          This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (hereinafter called the "Certificates") and representing a
Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to Holders
of the Certificates, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

          The Agreement permits, with certain exceptions and conditions provided
therein, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer and the Trustee and the rights
of the Holders of the Certificates under the Agreement at any time by the
Depositor, the Master Servicer and the Trustee, with the consent of the Holders
of Certificates evidencing Percentage Interests aggregating not less than 51% of
the

                                     A-2-3
<PAGE>

Trust Fund or of the applicable Class or Classes, if such amendment affects only
such Class or Classes, for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Certificateholders. Any such consent
by the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations set
forth therein, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations set forth therein, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No transfer of this Certificate shall be made unless the transfer is
made pursuant to an effective registration statement under the Securities Act of
1933, as amended (the "1933 Act"), and an effective registration or
qualification under applicable state securities laws, or is made in a
transaction that does not require such registration or qualification. In the
event that such a transfer of this Certificate is to be made without
registration or qualification, (i) unless such transfer is made in reliance upon
Rule 144A (as evidenced by the investment letter delivered to the Trustee, in
substantially the form attached to the Agreement as Exhibit F-3) under the 1933
Act, the Trustee and the Depositor shall require a written Opinion of Counsel
(which may be in-house counsel) acceptable to and in form and substance
reasonably satisfactory to the Trustee and the Depositor that such transfer may
be made pursuant to an exemption, describing the applicable exemption and the
basis therefor, from the 1933 Act or is being made pursuant to the 1933 Act,
which Opinion of Counsel shall not be an expense of the Trustee or the Depositor
or (ii) the Trustee shall require the transferor to execute a transferor
certificate (in substantially the form attached to the Agreement as Exhibit F-2)
and the transferee to execute an investment letter (in substantially the form
attached to the Agreement as Exhibit F-2) acceptable to and in form and
substance reasonably satisfactory to the Depositor and the Trustee certifying to
the Depositor and the Trustee the facts surrounding such transfer, which
investment letter shall not be an expense of the Trustee or the Depositor. None
of the Depositor, the Certificate Registrar or the Trustee is obligated to
register or qualify the Class of Certificates specified on the face hereof under
the 1933 Act or any other securities law or to take any action not otherwise
required under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify

                                     A-2-4
<PAGE>

the Trustee, the Depositor, the Certificate Registrar and the Master Servicer
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

          No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement. No service
charge will be made for any such registration of transfer or exchange of
Certificates, but the Certificate Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any transfer or exchange of Certificates.

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment (or provision for payment) to the Holders
of the Certificates of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the Distribution Date on which the Certificate Principal Balance of each
Class of Certificates has been reduced to zero, (ii) the final payment (or any
advance with respect thereto) on or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and (iii) the optional purchase by the party
designated in the Agreement at a price determined as provided in the Agreement
from the Trust Fund of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans remaining therein. The Agreement permits, but
does not require, the party designated in the Agreement to purchase from the
Trust Fund all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan remaining therein at a price determined as provided in the
Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Loan
Balance of the Mortgage Loans at the time of purchase being less than 1% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-2-5
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: ______________, 2004

                                   WACHOVIA BANK, NATIONAL ASSOCIATION,
                                   as Trustee

                                   By: _______________________________________
                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

          This is one of the Class [B-_] Certificates referred to in the
within-mentioned Agreement.

                                   WACHOVIA BANK, NATIONAL ASSOCIATION,
                                   as Certificate Registrar

                                   By: _________________________________
                                       Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

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

  TEN COM - as tenants in common          UNIF GIFT MIN ACT-CUSTODIAN
                                                            (Cust)(Minor)
                                                            under Uniform Gifts
                                                            to Minors Act
                                                            __________________
                                                                (State)
  TEN ENT - as tenants by the entireties

  JT TEN  - as joint tenants with right
            of survivorship and not as
            tenants in common

                      Additional abbreviations may also be used though not in
the above list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto ______________________________________________________________
_______________________________________________________________________________

(Please print or typewrite name, address including postal zip
code, and Taxpayer Identification Number of assignee)

the Percentage Interest evidenced by the within Mortgage Pass-Through
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address: ______________________________________________________________________
_______________________________________________________________________________

Dated:

                                        ____________________________________
                                        Signature by or on behalf of assignor

                                        ____________________________________
                                        Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _______________________________________________,
for the account of ________________________, account number _________________,
or, if mailed by check, to ________________________________. Applicable
statements should be mailed to _______________________________________________.

          This information is provided by ____________________________________,
the assignee named above, or __________________________, as its agent.

<PAGE>

                                                                     EXHIBIT A-3

                          FORM OF CLASS R CERTIFICATE

         THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

          SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" ("REMIC"), AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

          ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT
REFERRED TO HEREIN.

          NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR THE CODE WILL BE REGISTERED
EXCEPT IN ACCORDANCE WITH SECTION 5.02(D) OF THE AGREEMENT.

          THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND
LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION
UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

          ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE TRUSTEE
THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY POSSESSION THEREOF,
ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION
521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE
CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL HEREINAFTER
BE REFERRED TO AS A "DISQUALIFIED ORGANIZATION") OR (4) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE
ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN
ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE

<PAGE>

PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE
REGISTER OF ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A
DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND
SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE
DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS
OF SECTION 5.02(D) OF THE AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A
DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF
THIS CERTIFICATE.

                                     A-3-2
<PAGE>

<TABLE>
<S>                                              <C>
MLMI Series 2004-A4, Class R                      Percentage Interest: 100%

Date of Agreement and Cut-off Date:               Master Servicer:  Wells Fargo Bank,
October 1, 2004                                   National  Association

First Distribution Date: November 26, 2004        Trustee: Wachovia Bank, National Association

No. __                                            Issue Date: October 29, 2004

                                                  CUSIP: __________
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

                               MLMI SERIES 2004-A4

evidencing a beneficial ownership interest in a Trust Fund (the "Trust Fund")
consisting primarily of a pool of one-to four-family, fixed-rate and
adjustable-rate mortgage loans secured by first liens on residential property
(the "Mortgage Loans") formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
          MERRILL LYNCH MORTGAGE INVESTORS, INC., THE MASTER SERVICER, THE
          TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
          CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY
          AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that ____________________, is a registered owner of a
100% Percentage Interest specified above in that certain beneficial ownership
interest evidenced by all the Class R Certificates in the Trust Fund created
pursuant to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Merrill Lynch Mortgage Investors, Inc. (hereinafter called
the "Depositor," which term includes any successor entity under the Agreement),
Wells Fargo Bank, National Association as master servicer (in such capacity, the
"Master Servicer") and securities administrator (in such capacity, the
"Securities Administrator"), and Wachovia Bank, National Association (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately

                                     A-3-3
<PAGE>

following (each, a "Distribution Date"), commencing on the First Distribution
Date specified above, to the Person in whose name this Certificate is registered
on the Record Date, in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount required to be distributed to the
Holders of Class R Certificates on such Distribution Date pursuant to the
Agreement.

          This Certificate does not have a Class Certificate Balance or
Pass-Through Rate and will be entitled to distributions only to the extent set
forth in the Agreement. In addition, any distribution of the proceeds of any
remaining assets of the Trust will be made only upon presentment and surrender
of this Certificate at the Corporate Trust Office.

          This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (hereinafter called the "Certificates") and representing a
Percentage Interest in the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the related Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to Holders
of the Certificates, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the related Mortgage Loans.

          The Agreement permits, with certain exceptions and conditions provided
therein, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer and the Trustee and the rights
of the Holders of the Certificates under the Agreement at any time by the
Depositor, the Master Servicer and the Trustee, with the consent of the Holders
of Certificates evidencing Percentage Interests aggregating not less than 51% of
the Trust Fund or of the applicable Class or Classes, if such amendment affects
only such Class or Classes, for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement or
of modifying in any manner the rights of the Certificateholders. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

          As provided in the Agreement and subject to certain limitations set
forth therein, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
of the same Class in authorized denominations evidencing the same aggregate
Percentage Interest will be issued to the designated transferee or transferees.

                                     A-3-4
<PAGE>

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations set forth therein, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No transfer, sale, pledge or other disposition of this Class R
Certificate shall be made unless such disposition is exempt from the
registration requirements of the Securities Act of 1933, as amended (the "1933
Act"), and any applicable state securities laws or is made in accordance with
the 1933 Act and laws. In the event of any such transfer, made in reliance upon
an exemption from the 1933 Act, (i) the Trustee and the Depositor shall require
(a) the transferor to certify in writing the facts surrounding the transfer (in
substantially the form attached to the Agreement as Exhibit E-2), and the
transferee to execute an investment letter (in substantially the form attached
to the Agreement as Exhibit E-1) and (b) a written Opinion of Counsel (which may
be in-house counsel) acceptable to and in form and substance reasonably
satisfactory to the Trustee and the Depositor that such transfer may be made
pursuant to an exemption, describing the applicable exemption and the basis
therefor, from the 1933 Act or is being made pursuant to the 1933 Act, which
Opinion of Counsel shall not be an expense of the Trustee or the Depositor. The
Holder of this Class R Certificate desiring to effect such transfer shall, and
does hereby agree to, indemnify the Trustee and the Depositor against any
liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.

          No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

          Prior to registration of any transfer, sale or other disposition of
this Certificate, the proposed transferee shall provide to the Trustee (i) an
affidavit to the effect that such transferee is any Person other than a
Disqualified Organization or the agent (including a broker, nominee or
middleman) of a Disqualified Organization, and (ii) a certificate that
acknowledges that (A) the Class R Certificates have been designated as a
residual interest in a REMIC, (B) it will include in its income a pro rata share
of the net income of the Trust Fund and that such income may be an "excess
inclusion," as defined in the Code, that, with certain exceptions, cannot be
offset by other losses or benefits from any tax exemption, and (C) it expects to
have the financial means to satisfy all of its tax obligations including those
relating to holding the Class R Certificates. Notwithstanding the registration
in the Certificate Register of any transfer, sale or other disposition of this
Certificate to a Disqualified Organization or an agent (including a broker,
nominee or middleman) of a Disqualified Organization, such registration shall be
deemed to be of no legal force or effect whatsoever and such Person shall not be
deemed to be a Certificateholder for any purpose, including, but not limited to,
the receipt of distributions in respect of this Certificate.

          The Holder of this Certificate, by its acceptance hereof, shall be
deemed to have consented to the provisions of Section 5.02 of the Agreement and
to any amendment of the Agreement deemed necessary by counsel of the Depositor
to ensure that the transfer of this

                                     A-3-5
<PAGE>

Certificate to any Person other than a Permitted Transferee or any other Person
will not cause the REMIC to cease to qualify as a REMIC or cause the imposition
of a tax upon the REMIC.

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

          The Depositor, the Master Servicer, the Trustee and the Certificate
Registrar and any agent of the Depositor, the Master Servicer, the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar nor any such agent shall
be affected by notice to the contrary.

          This certificate shall be governed by and construed in accordance with
the laws of the state of New York.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment (or provision for payment) to the Holders
of the Certificates of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the final payment (or any advance with respect thereto) on or other
liquidation of the last Mortgage Loan remaining in the Trust Fund and (ii) the
optional purchase by the party designated in the Agreement at a price determined
as provided in the Agreement from the Trust Fund of all the Mortgage Loans and
all property acquired in respect of such Mortgage Loans remaining therein. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase from the Trust Fund all the Mortgage Loans and all property acquired
in respect of any Mortgage Loan remaining therein at a price determined as
provided in the Agreement. The exercise of such right will effect early
retirement of the Certificates; however, such right to purchase is subject to
the aggregate Loan Balance of the Mortgage Loans at the time of purchase being
less than 1% of the aggregate Stated Principal Balance of the Mortgage Loans as
of the Cut-off Date.

          The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

          Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-3-6
<PAGE>

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: _____________, 2004

                                   WACHOVIA BANK, NATIONAL ASSOCIATION,
                                   as Trustee

                                   By:________________________________________
                                      Authorized Officer

                         CERTIFICATE OF AUTHENTICATION

This is one of the Class R Certificates referred to in the within-mentioned
Agreement.

                                   WACHOVIA BANK, NATIONAL ASSOCIATION,
                                   as Certificate Registrar

                                   By:________________________________________
                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

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

  TEN COM - as tenants in common          UNIF GIFT MIN ACT-CUSTODIAN
                                                            (Cust) (Minor)
                                                            under Uniform Gifts
                                                            to Minors Act
                                                            __________________
                                                                (State)
  TEN ENT - as tenants by the entireties

  JT TEN  - as joint tenants with right
            of survivorship and not as
            tenants in common

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

the Percentage Interest evidenced by the Mortgage Pass-Through Certificate and
hereby authorize(s) the registration of transfer of such interest to assignee on
the Certificate Register of the Trust Fund.

          I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:_________________________
______________________________________________________________________________.

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of
distribution:

          Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _______________________________________________,
for the account of ________________________, account number _________________,
or, if mailed by check, to ________________________________. Applicable
statements should be mailed to _______________________________________________.

          This information is provided by ____________________________________,
the assignee named above, or __________________________, as its agent.

<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                             [Provided Upon Request]

                                       B-1
<PAGE>

                                    EXHIBIT C

                                   [RESERVED]

                                       C-1
<PAGE>

                                                                       EXHIBIT D

                        REQUEST FOR RELEASE OF DOCUMENTS

To:       Wells Fargo Bank, National Association
          1015 10th Avenue S.E.
          Minneapolis Minnesota 55414
          Attn: ______________________

          Re:   Custodial Agreement dated as of _________, among ______________,
                 _____, and Wells Fargo Bank, National Association, as Custodian

          In connection with the administration of the Mortgage Loans held by
you as Custodian for the Owner pursuant to the above-captioned Custody
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:______________________
-----------

                                                   By:__________________________
                                                     (authorized signer)
                                                   Issuer:______________________
                                                   Address:_____________________
                                                           _____________________
                                                   Date:________________________

                                      D-1
<PAGE>

CUSTODIAN

Wells Fargo Bank, National Association

Please acknowledge the execution of the above request by your signature and date
below:

Please acknowledge the execution of the above request by your signature and date
below:

_________________________                                  ____________________
Signature                                                  Date

Documents returned to Custodian:

_________________________                                  ____________________
Custodian                                                  Date

                                      D-2
<PAGE>

                                   EXHIBIT E-1

                           FORM OF TRANSFER AFFIDAVIT

                                           Affidavit pursuant to Section
                                           860E(e)(4) of the Internal Revenue
                                           Code of 1986, as amended, and for
                                           other purposes

STATE OF                 )
                         )ss:
COUNTY OF                )

          [NAME OF OFFICER], being first duly sworn, deposes and says:

          1. That he is [Title of Officer] of [Name of Investor] (the
"Investor"), a [savings institution] [corporation] duly organized and existing
under the laws of [the State of _____] [the United States], on behalf of which
he makes this affidavit.

          2. That (i) the Investor is not a "disqualified organization" as
defined in Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended
(the "Code"), and will not be a disqualified organization as of [Closing Date]
[date of purchase]; (ii) it is not acquiring the Merrill Lynch Mortgage
Investors, Inc. Mortgage Pass-Through Certificates, MLMI Series 2004-A4, Class R
Certificates (the "Residual Certificates") for the account of a disqualified
organization; (iii) it consents to any amendment of the Pooling and Servicing
Agreement that shall be deemed necessary by Merrill Lynch Mortgage Investors,
Inc. (upon advice of counsel) to constitute a reasonable arrangement to ensure
that the Residual Certificates will not be owned directly or indirectly by a
disqualified organization; and (iv) it will not transfer such Residual
Certificates unless (a) it has received from the transferee an affidavit in
substantially the same form as this affidavit containing these same four
representations and (b) as of the time of the transfer, it does not have actual
knowledge that such affidavit is false.

          3. That the Investor is one of the following: (i) a citizen or
resident of the United States, (ii) a corporation or partnership (including an
entity treated as a corporation or partnership for federal income tax purposes)
created or organized in, or under the laws of, the United States or any state
thereof or the District of Columbia (except, in the case of a partnership, to
the extent provided in regulations), provided that no partnership or other
entity treated as a partnership for United States federal income tax purposes
shall be treated as a United States Person unless all persons that own an
interest in such partnership either directly or through any entity that is not a
corporation for United States federal income tax purposes are United States
Persons, (iii) an estate whose income is subject to United States federal income
tax regardless of its source, or (iv) a trust other than a "foreign trust," as
defined in Section 7701 (a)(31) of the Code.

          4. That the Investor's taxpayer identification number is
______________________.

                                     E-1-1
<PAGE>

          5. That no purpose of the acquisition of the Residual Certificates is
to avoid or impede the assessment or collection of tax.

          6. That the Investor understands that, as the holder of the Residual
Certificates, the Investor may incur tax liabilities in excess of any cash flows
generated by such Residual Certificates.

          7. That the Investor intends to pay taxes associated with holding the
Residual Certificates as they become due.

          IN WITNESS WHEREOF, the Investor has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer] this ____ day of _________, 20__.

                        [NAME OF INVESTOR]

                        By:  ______________________________________
                             [Name of Officer]
                             [Title of Officer]
                             [Address of Investor for receipt of distributions]

                             Address of Investor for
                             receipt of tax
                             information:

                                     E-1-2
<PAGE>

                                   EXHIBIT E-2

                         FORM OF TRANSFEROR CERTIFICATE

                                                               __________ , 20__

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center
New York, New York 10281

[Trustee]

Attention: Merrill Lynch Mortgage Investors, Inc, Series _______

          Re:       Merrill Lynch Mortgage Investors, Inc.,
                    Mortgage Pass-Through Certificates, MLMI Series 2004-A4,
                    Class [  _]

Ladies and Gentlemen:

          This letter is delivered to you in connection with the transfer by
_____________________ (the "Seller") to _____________________(the "Purchaser")
of $______________ Initial Certificate Principal Balance of Mortgage
Pass-Through Certificates, MLMI Series ________, Class R (the "Certificates"),
pursuant to Section 5.02 of the Pooling and Servicing Agreement, dated as of
October 1, 2004 among Merrill Lynch Mortgage Investors, Inc., (the "Depositor"),
Wells Fargo Bank, National Association as master servicer (in such capacity, the
"Master Servicer") and securities administrator (in such capacity, the
"Securities Administrator"), and Wachovia Bank, National Association, as trustee
(the "Trustee"). All terms used herein and not otherwise defined shall have the
meanings set forth in the Pooling and Servicing Agreement. The Seller hereby
certifies, represents and warrants to, and covenants with, the Company and the
Trustee that:

          1. No purpose of the Seller relating to the transfer of the
Certificate by the Seller to the Purchaser is or will be to impede the
assessment or collection of any tax.

          2. The Seller understands that the Purchaser has delivered to the
Trustee and the Master Servicer a transfer affidavit and agreement in the form
attached to the Pooling and Servicing Agreement as Exhibit E-1. The Seller does
not know or believe that any representation contained therein is false.

          3. The Seller has at the time of the transfer conducted a reasonable
investigation of the financial condition of the Purchaser as contemplated by
Treasury Regulations Section 1.860E- 1(c)(4)(i) and, as a result of that
investigation, the Seller has determined that the Purchaser has historically
paid its debts as they become due and has found no significant evidence to
indicate that the Purchaser will not continue to pay its debts as they become
due in the future. The Seller understands that the transfer of a Class R
Certificate may not be respected for United States income tax purposes (and the
Seller may continue to be liable for United States income taxes Associated
therewith) unless the Seller has conducted such an investigation.

                                     E-2-1
<PAGE>

          4. The Seller has no actual knowledge that the proposed Transferee is
not both a United States Person and a Permitted Transferee.

                                   Very truly yours,

                                   ___________________________________________
                                   (Seller)

                                   By:________________________________________
                                   Name:
                                   Title:

                                     E-2-2
<PAGE>

                                   EXHIBIT F-1

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                           ______________,200___

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center
New York, New York 10281

Wachovia Bank, National Association
401 South Tryon Street, 12th Floor
Charlotte, North Carolina 28288-1179

          Re:       Merrill Lynch Mortgage Investors, Inc.,
                    Mortgage Pass-Through Certificates, MLMI Series 2004-A4,
                    Class [  _]

Ladies and Gentlemen:

          In connection with the sale by ___________ (the "Seller") to ________
(the "Purchaser") of $_________ Initial Certificate Principal Balance of
Mortgage Pass-Through Certificates, Series 2004-A4, Class _____ (the
"Certificates"), issued pursuant to the Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement"), dated as of October 1, 2004 among Merrill
Lynch Mortgage Investors, Inc., (the "Depositor"), Wells Fargo Bank, National
Association as master servicer (in such capacity, the "Master Servicer") and
securities administrator (in such capacity, the "Securities Administrator"), and
Wachovia Bank, National Association, as trustee (the "Trustee"). The Seller
hereby certifies, represents and warrants to, and covenants with, the Depositor
and the Trustee that:

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

                                     F-1-1
<PAGE>

                                      Very truly yours,

                                      _________________________________________
                                      (Seller)

                                      By:______________________________________
                                      Name:____________________________________
                                      Title:___________________________________

                                     F-1-2
<PAGE>

                                   EXHIBIT F-2

             FORM OF INVESTOR REPRESENTATION LETTER (NON-RULE 144A)

                                                               __________, 200__

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center
New York, New York 10281

Wachovia Bank, National Association
401 South Tryon Street, 12th Floor
Charlotte, North Carolina 28288-1179

          Re:       Merrill Lynch Mortgage Investors, Inc.,
                    Mortgage Pass-Through Certificates, MLMI Series 2004-A4,
                    Class R

Ladies and Gentlemen:

          In connection with our acquisition of the above Certificates we
certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (The "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we are an
institutional "accredited investor," as defined in Regulation D under the Act,
and have such knowledge and experience in financial and business matters that we
are capable of evaluating the merits and risks of investments in the
Certificates, (c) we have had the opportunity to ask questions of and receive
answers from the Depositor concerning the purchase of the Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificates, (d) either (i) we are not an employee
benefit plan that is subject to the Employee Retirement Income Security Act of
1974, as amended ("ERISA"), or a plan or arrangement that is subject to Section
4975 of the Internal Revenue Code of 1986, as amended ("Code"), nor are we
acting on behalf of any such plan or arrangement nor are we using the assets of
any such plan or arrangement to effect such acquisition or (ii) the proposed
transfer and holding of such a Certificate and the servicing, management and
operation of the Trust: (I) will not result in a prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code which is not covered under an
individual or class prohibited transaction exemption including but not limited
to Department of Labor Prohibited Transaction Class Exemption ("PTCE") 84-14
(Class Exemption for Plan Asset Transactions Determined by Independent Qualified
Professional Asset Managers); PTCE 91-38 (Class Exemption for Certain
Transactions Involving Bank Collective Investment Funds); PTCE 90-1 (Class
Exemption for Certain Transactions Involving Insurance Company Pooled Separate
Accounts), PTCE 95-60 (Class Exemption for Certain Transactions Involving
Insurance Company General Accounts), and PTCE 96-23 (Class Exemption for Plan
Asset Transactions Determined by In-House Asset Managers) and (II) will not
subject the Depositor, the Servicer, the Master Servicer, the Securities
Administrator or the Trustee to any obligation in addition to those undertaken
in the Agreement, (e) we are acquiring the Certificates for investment for our
own account and not with a view to any distribution of

                                     F-2-1
<PAGE>

such Certificates (but without prejudice to our right at all times to sell or
otherwise dispose of the Certificates in accordance with clause (g) below), (f)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, or taken any other action which would result in a
violation of Section 5 of the Act, and (g) we will not sell, transfer or
otherwise dispose of any Certificates unless (1) such sale, transfer or other
disposition is made pursuant to an effective registration statement under the
Act or is exempt from such registration requirements, and if requested, we will
at our expense provide an opinion of counsel satisfactory to the addressees of
this Certificate that such sale, transfer or other disposition may be made
pursuant to an exemption from the Act, (2) The purchaser or transferee of such
Certificate has executed and delivered to you a certificate to substantially the
same effect as this certificate, and (3) The purchaser or transferee has
otherwise complied with any conditions for transfer set forth in the Pooling and
Servicing Agreement.

                                        Very truly yours,

                                        _______________________________________
                                        Print Name of Transferee

                                        By: ___________________________________
                                            Authorized Officer

                                     F-2-2
<PAGE>

                                   EXHIBIT F-3

                            FORM OF RULE 144A LETTER

                                                              ____________, 2004

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center
New York, New York 10281

Wachovia Bank, National Association
401 South Tryon Street, 12th Floor
Charlotte, North Carolina 28288-1179

          Re:       Merrill Lynch Mortgage Investors, Inc.,
                    Mortgage Pass-Through Certificates, MLMI Series 2004-A4,
                    Class R

Ladies and Gentlemen:

          In connection with our acquisition of the above Certificates we
certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (The "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we have
such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) either we are not an employee benefit plan that
is subject to the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), or a plan or arrangement that is subject to Section 4975 of the
Internal Revenue Code of 1986, as amended ("Code"), nor are we acting on behalf
of any such plan or arrangement nor using the assets of any such plan or
arrangement to effect such acquisition or the proposed transfer and holding of
such a Certificate and the servicing, management and operation of the Trust: (I)
will not result in a prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code which is not covered under an individual or class
prohibited transaction exemption including but not limited to Department of
Labor Prohibited Transaction Class Exemption ("PTCE") 84-14 (Class Exemption for
Plan Asset Transactions Determined by Independent Qualified Professional Asset
Managers); PTCE 91-38 (Class Exemption for Certain Transactions Involving Bank
Collective Investment Funds); PTCE 90-1 (Class Exemption for Certain
Transactions Involving Insurance Company Pooled Separate Accounts), PTCE 95-60
(Class Exemption for Certain Transactions Involving Insurance Company General
Accounts), and PTCE 96-23 (Class Exemption for Plan Asset Transactions
Determined by In-House Asset Managers) and (II) will not subject the Depositor,
the Servicer, the Master Servicer, the Securities Administrator or the Trustee
to any obligation in addition to those undertaken in the Agreement, (e) we have
not, nor has anyone acting on our behalf offered, transferred, pledged, sold or
otherwise disposed of the Certificates, any interest in the Certificates or any
other similar security to, or solicited any offer to buy or

                                     F-3-1
<PAGE>

accept a transfer, pledge or other disposition of the Certificates, any interest
in the Certificates or any other similar security from, or otherwise approached
or negotiated with respect to the Certificates, any interest in the Certificates
or any other similar security with, any person in any manner, or made any
general solicitation by means of general advertising or in any other manner, or
taken any other action, that would constitute a distribution of the Certificates
under the Act or that would render the disposition of the Certificates a
violation of Section 5 of the Act or require registration pursuant thereto, nor
will act, nor has authorized or will authorize any person to act, in such manner
with respect to the Certificates, (f) we are a "qualified institutional buyer"
as that term is defined in Rule 144A under the Act ("Rule 144A") and have
completed either of the forms of certification to that effect attached hereto as
Annex 1 or Annex 2, (g) we are aware that the sale to us is being made in
reliance on Rule 144A, and (h) we are acquiring the Certificates for our own
account or for resale pursuant to Rule 144A and further, understand that such
Certificates may be resold, pledged or transferred only (A) to a person
reasonably believed to be a qualified institutional buyer that purchases for its
own account or for the account of a qualified institutional buyer to whom notice
is given that the resale, pledge or transfer is being made in reliance on Rule
144A, or (B) pursuant to another exemption from registration under the Act.

                                        Very truly yours,

                                        _______________________________________
                                        Print Name of Transferee

                                        By:____________________________________
                                           Authorized Officer

                                     F-3-2
<PAGE>

                                                          ANNEX I TO EXHIBIT F-2

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees Other Than Registered Investment Companies]

          The undersigned (The "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

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

          2. In connection with purchases by the Buyer, The Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) The Buyer owned
and/or invested on a discretionary basis $___________1 in securities (except for
the 1 excluded securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with Rule 144A
and (ii) The Buyer satisfies the criteria in the category marked below.

          ___ Corporation, etc. The Buyer is a corporation (other than a bank,
          savings and loan association or similar institution), Massachusetts or
          similar business trust, partnership, or charitable organization
          described in Section 501(c)(3) of the Internal Revenue Code of 1986,
          as amended.

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

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

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

          ___ Insurance Company. The Buyer is an insurance company whose primary
          and predominant business activity is the writing of insurance or the
          reinsuring of risks

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

                                 Ax.I to F-2-1
<PAGE>

          underwritten by insurance companies and which is subject to
          supervision by the insurance commissioner or a similar official or
          agency of a State, territory or the District of Columbia.

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

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

          ___ Investment Advisor. The Buyer is an investment advisor registered
          under the Investment Advisors Act of 1940.

          ___ Small Business Investment Company. Buyer is a small business
          investment company licensed by the U.S. Small Business Administration
          under Section 301(c) or (d) of the Small Business Investment Act of
          1958.

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

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

          4. For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, The Buyer used the
cost of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
The securities may be valued at market. Further, in determining such aggregate
amount, The Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

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

                                 Ax.I to F-2-2
<PAGE>

          6. Until the date of purchase of the Rule 144A Securities, The Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
The Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, The Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                     __________________________________________
                                     Print Name of Buyer

                                     By:_______________________________________
                                     Name:
                                     Title:

                                     Date:_____________________________________

                                 Ax.I to F-2-3
<PAGE>

                                                         ANNEX II TO EXHIBIT F-2

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That are Registered Investment Companies]

          The undersigned (The "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

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

2. In connection with purchases by Buyer, The Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) The Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, The Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, The cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, The securities may be valued at market.

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

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

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

4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

                                 Ax.II to F-2-1
<PAGE>

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

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

                                     __________________________________________
                                     Print Name of Buyer or Adviser

                                     By:_______________________________________
                                     Name:
                                     Title:

                                     IF AN ADVISER:

                                     ___________________________________________
                                     Print Name of Buyer

                                     Date:______________________________________

                                 Ax.II to F-2-2
<PAGE>

                                    EXHIBIT G

                               CUSTODIAL AGREEMENT

          THIS CUSTODIAL AGREEMENT (as amended and supplemented from time to
time, the "Agreement'), dated as of October 29, 2004, by and among WACHOVIA
BANK, NATIONAL ASSOCIATION, as trustee (including its successors under the
Pooling and Servicing Agreement defined below, the "Trustee"), MERRILL LYNCH
MORTGAGE INVESTORS, INC., as company (together with any successor in interest,
the "Company"), WELLS FARGO BANK, NATIONAL ASSOCIATION, as master servicer and
securities administrator (together with any successor in interest or successor
under the Pooling and Servicing Agreement referred to below, the "Master
Servicer") and WELLS FARGO BANK, NATIONAL ASSOCIATION, as custodian (together
with any successor in interest or any successor appointed hereunder, the
"Custodian").

                                WITNESSETH THAT:

          WHEREAS, the Company, the Master Servicer and the Trustee have entered
into a Pooling and Servicing Agreement, dated as of October 1, 2004, relating to
the issuance of Mortgage Pass-Through Certificates, MLMI Series 2004-A4 (as in
effect on the date of this agreement, the "Original Pooling and Servicing
Agreement," and as amended and supplemented from time to time, the "Pooling and
Servicing Agreement"); and

          WHEREAS, the Custodian has agreed to act as agent for the Trustee for
the purposes of receiving and holding certain documents and other instruments
delivered by the Company or the Master Servicer under the Pooling and Servicing
Agreement and the Servicers under their respective Servicing Agreements, all
upon the terms and conditions and subject to the limitations hereinafter set
forth;

          NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements hereinafter set forth, the Trustee, the Company, the
Master Servicer and the Custodian hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

          Capitalized terms used in this Agreement and not defined herein shall
have the meanings assigned in the Original Pooling and Servicing Agreement,
unless otherwise required by the context herein.

                                   ARTICLE II
                          CUSTODY OF MORTGAGE DOCUMENTS

          Section 2.1 CUSTODIAN TO ACT AS AGENT: ACCEPTANCE OF MORTGAGE FILES.
The Custodian, as the duly appointed agent of the Trustee for these purposes,
acknowledges (subject to any exceptions noted in the Initial Certification
referred to in Section 2.3(a) receipt of the Mortgage Files relating to the
Mortgage Loans identified on the schedule attached hereto (the

                                      G-1
<PAGE>

"Mortgage Files") and declares that it holds and will hold such Mortgage Files
as agent for the Trustee, in trust, for the use and benefit of all present and
future Certificateholders.

          Section 2.2 RECORDATION OF ASSIGNMENTS. If any Mortgage File includes
one or more assignments of Mortgage to the Trustee in a state which is
specifically excluded from the Opinion of Counsel delivered by the Seller to the
Trustee (with a copy to the Custodian) pursuant to the provisions of Section
2.01 of the Pooling and Servicing Agreement, the Custodian shall deliver each
such assignment to the Company for the purpose of recording it in the
appropriate public office for real property records, and the Company, at no
expense to the Custodian, shall promptly cause to be recorded in the appropriate
public office for real property records each such assignment of Mortgage and,
upon receipt thereof from such public office, shall return each such assignment
of Mortgage to the Custodian.

          Section 2.3 REVIEW OF MORTGAGE FILES.

          (a) On or prior to the Closing Date, the Custodian agrees, for the
benefit of Certificateholders, to review, in accordance with the provisions of
Section 2.02 of the Pooling and Servicing Agreement, each such document, and
shall deliver to the Trustee an Initial Certification in the form annexed hereto
as Exhibit One evidencing receipt (subject to any exceptions noted therein) of a
Mortgage File for each of the Mortgage Loans listed on the Schedule attached
hereto (the "Mortgage Loan Schedule") and certifying that all such documents
have been executed and received and that such documents relate to the Mortgage
Loans identified on the Mortgage Loan Schedule, except for any exceptions listed
on Schedule A attached to such Initial Certification. The Custodian shall be
under no duty or obligation to inspect, review or examine said documents,
instruments, certificates or other papers to determine that the same are
genuine, enforceable, or appropriate for the represented purpose or that they
have actually been recorded or that they are other than what they purport to be
on their face.

          (b) Not later than 180 days after the Closing Date, the Custodian
shall review the Mortgage Files as provided in Section 2.02 of the Pooling and
Servicing Agreement and deliver to the Trustee a Final Certification in the form
annexed hereto as Exhibit Two evidencing the completeness of the Mortgage Files
(subject to any exceptions noted therein).

          (c) In reviewing the Mortgage Files as provided herein and in the
Pooling and Servicing Agreement, the Custodian shall make no representation as
to and shall not be responsible to verify (i) the validity, legality,
enforceability, due authorization, recordability, sufficiency or genuineness of
any of the documents included in any Mortgage File or (ii) the collectibility,
insurability, effectiveness or suitability of any of the documents in any
Mortgage File.

          Upon receipt of written request from the Trustee, the Custodian shall
as soon as practicable supply the Trustee with a list of all of the documents
relating to the Mortgage Loans then contained in the Mortgage Files.

          Section 2.4 NOTIFICATION OF BREACHES OF REPRESENTATIONS AND
WARRANTIES. Upon discovery by the Custodian of a breach of any representation or
warranty made by the Company as set forth in the Pooling and Servicing Agreement
with respect to a Mortgage Loan relating to

                                      G-2
<PAGE>

a Mortgage File, the Custodian shall give prompt written notice to the Company,
the related Servicer and the Trustee.

          Section 2.5 CUSTODIAN TO COOPERATE: RELEASE OF MORTGAGE FILES. Upon
receipt of written notice from the Master Servicer that the Mortgage Loan Seller
has repurchased a Mortgage Loan pursuant to Article II of the Pooling and
Servicing Agreement, and that the purchase price therefore has been deposited in
the Master Servicer Collection Account or the Distribution Account, then the
Custodian agrees to promptly release to the Mortgage Loan Seller the related
Mortgage File.

          Upon the Custodian's receipt of a request for release (a "Request for
Release") substantially in the form of Exhibit D to the Pooling and Servicing
Agreement signed by a Servicing Officer of the related Servicer stating that it
has received payment in full of a Mortgage Loan or that payment in full will be
escrowed in a manner customary for such purposes, the Custodian agrees promptly
to release to the related Servicer the related Mortgage File. The Company shall
deliver to the Custodian and the Custodian agrees to accept the Mortgage Note
and other documents constituting the Mortgage File with respect to any
Substitute Mortgage Loan.

          From time to time as is appropriate for the servicing or foreclosure
of any Mortgage Loan, including, for this purpose, collection under any Primary
Insurance Policy, the related Servicer shall deliver to the Custodian a Request
for Release signed by a Servicing Officer requesting that possession of all of
the Mortgage File be released to the related Servicer and certifying as to the
reason for such release and that such release will not invalidate any insurance
coverage provided in respect of the Mortgage Loan under any of the Insurance
Policies. Upon receipt of the foregoing, the Custodian shall deliver the
Mortgage File to the related Servicer. The related Servicer shall cause each
Mortgage File or any document therein so released to be returned to the
Custodian when the need therefore by the related Servicer no longer exists,
unless (i) the Mortgage Loan has been liquidated and the Liquidation Proceeds
relating to the Mortgage Loan have been deposited in the Master Servicer
Collection Account or the Distribution Account or (ii) the Mortgage File or such
document has been delivered to an attorney, or to a public trustee or other
public official as required by law, for purposes of initiating or pursuing legal
action or other proceedings for the foreclosure of the Mortgaged Property either
judicially or non-judicially, and the related Servicer has delivered to the
Custodian a certificate of a Servicing Officer certifying as to the name and
address of the Person to which such Mortgage File or such document was delivered
and the purpose or purposes of such delivery.

          At any time that a Servicer is required to deliver to the Custodian a
Request for Release, the Servicer shall deliver two copies of the Request for
Release if delivered in hard copy or the Servicer may furnish such Request for
Release electronically to the Custodian, in which event the Servicing Officer
transmitting the same shall be deemed to have signed the Request for Release. In
connection with any Request for Release of a Mortgage File because of a
repurchase of a Mortgage Loan, the Serviced shall send to the Trustee an
assignment of mortgage, without recourse, representation or warranty from the
Trustee to the Mortgage Loan

                                      G-3
<PAGE>

Seller and the related Mortgage Note which shall be endorsed without recourse,
representation or warranty by the Trustee and the Trustee shall forward such
documents to the Mortgage Loan Seller. In connection with any Request for
Release of a Mortgage File because of the payment in full of a Mortgage Loan,
the Serviced shall send to the Trustee a certificate of satisfaction or other
similar instrument to be executed by or on behalf of the Trustee and returned to
the related Servicer.

          Section 2.6 ASSUMPTION AGREEMENTS. In the event that any assumption
agreement or substitution of liability agreement is entered into with respect to
any Mortgage Loan subject to this Agreement in accordance with the terms and
provisions of the Pooling and Servicing Agreement, the Master Servicer, to the
extent provided in the related Servicing Agreement, shall cause the related
Servicer to notify the Custodian that such assumption or substitution agreement
has been completed by forwarding to the Custodian the original of such
assumption or substitution agreement, which shall be added to the related
Mortgage File and, for all purposes, shall be considered a part of such Mortgage
File to the same extent as all other documents and instruments constituting
parts thereof.

                                  ARTICLE III
                            CONCERNING THE CUSTODIAN

          Section 3.1 CUSTODIAN A BAILEE AND AGENT OF THE TRUSTEE. With respect
to each Mortgage Note, Mortgage and other documents constituting each Mortgage
File which are delivered to the Custodian, the Custodian is exclusively the
bailee and agent of the Trustee and has no instructions to hold any Mortgage
Note or Mortgage for the benefit of any person other than the Trustee and the
Certificateholders and undertakes to perform such duties and only such duties as
are specifically set forth in this Agreement. Except upon compliance with the
provisions of Section 2.5 of this Agreement, no Mortgage Note, Mortgage or
Mortgage File shall be delivered by the Custodian to the Company, the Servicers
or the Master Servicer or otherwise released from the possession of the
Custodian.

          Section 3.2 RESERVED.

          Section 3.3 CUSTODIAN MAY OWN CERTIFICATES. The Custodian in its
individual or any other capacity may become the owner or pledgee of Certificates
with the same rights it would have if it were not Custodian.

          Section 3.4 MASTER SERVICER TO PAY CUSTODIAN'S FEES AND EXPENSES. The
Master Servicer covenants and agrees to pay to the Custodian from time to time,
and the Custodian shall be entitled to, reasonable compensation for all services
rendered by it in the exercise and performance of any of the powers and duties
hereunder of the Custodian, and the Master Servicer will pay or reimburse the
Custodian upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Custodian in accordance with any of the
provisions of this Agreement (including the reasonable compensation and the
expenses and disbursements of its counsel and of all persons not regularly in
its employ), except any such expense, disbursement or advance as may arise from
its negligence or bad faith or to the extent that such cost or expense is
indemnified by the Company pursuant to the Pooling and Servicing Agreement.

                                      G-4
<PAGE>

          Section 3.5 CUSTODIAN MAY RESIGN; TRUSTEE MAY REMOVE CUSTODIAN. The
Custodian may resign from the obligations and duties hereby imposed upon it as
such obligations and duties relate to its acting as Custodian of the Mortgage
Loans. Upon receiving such notice of resignation, the Trustee shall either take
custody of the Mortgage Files itself and give prompt notice thereof to the
Company, the Master Servicer and the Custodian, or promptly appoint a successor
Custodian by written instrument, in duplicate, one copy of which instrument
shall be delivered to the resigning Custodian and one copy to the successor
Custodian. If the Trustee shall not have taken custody of the Mortgage Files and
no successor Custodian shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Custodian may petition any court of competent jurisdiction for the
appointment of a successor Custodian.

          The Trustee may remove the Custodian at any time with the consent of
the Master Servicer. In such event, the Trustee shall appoint, or petition a
court of competent jurisdiction to appoint, a successor Custodian hereunder. Any
successor Custodian shall be a depository institution subject to supervision or
examination by federal or state authority, shall be able to satisfy the other
requirements contained in Section 3.7 and shall be unaffiliated with the
Servicer or the Company.

          Any resignation or removal of the Custodian and appointment of a
successor Custodian pursuant to any of the provisions of this Section 3.5 shall
become effective upon acceptance of appointment by the successor Custodian. The
Trustee shall give prompt notice to the Company and the Master Servicer of the
appointment of any successor Custodian. No successor Custodian shall be
appointed by the Trustee without the prior approval of the Company and the
Master Servicer.

          Section 3.6 MERGER OR CONSOLIDATION OF CUSTODIAN. Any Person into
which the Custodian may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Custodian shall be a party, or any Person succeeding
to the business of the Custodian, shall be the successor of the Custodian
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

          Section 3.7 REPRESENTATIONS OF THE CUSTODIAN. The Custodian hereby
represents that it is a depository institution subject to supervision or
examination by a federal or state authority, has a combined capital and surplus
of at least $15,000,000 and is qualified to do business in the jurisdictions in
which it will hold any Mortgage File.

                                   ARTICLE IV
                            MISCELLANEOUS PROVISIONS

          Section 4.1 NOTICES. All notices, requests, consents and demands and
other communications required under this Agreement or pursuant to any other
instrument or document delivered hereunder shall be in writing and, unless
otherwise specifically provided, may be delivered personally, by telegram or
telex, or by registered or certified mail, postage prepaid, return receipt
requested, at the addresses specified on the signature page hereof (unless
changed

                                      G-5
<PAGE>

by the particular party whose address is stated herein by similar notice in
writing), in which case the notice will be deemed delivered when received.

          Section 4.2 AMENDMENTS. No modification or amendment of or supplement
to this Agreement shall be valid or effective unless the same is in writing and
signed by all parties hereto, and neither the Company, the Master Servicer nor
the Trustee shall enter into any amendment hereof except as permitted by the
Pooling and Servicing Agreement. The Trustee shall give prompt notice to the
Custodian of any amendment or supplement to the Pooling and Servicing Agreement
and furnish the Custodian with written copies thereof.

          Section 4.3 GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          Section 4.4 RECORDATION OF AGREEMENT. To the extent permitted by
applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere,
such recordation to be effected by the Company and at the Trust's expense on
direction by the Trustee, but only upon direction accompanied by an Opinion of
Counsel reasonably satisfactory to the Company to the effect that the failure to
effect such recordation is likely to materially and adversely affect the
interests of the Certificateholders.

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

          Section 4.5 SEVERABILITY OF PROVISIONS. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the holders thereof.

                                      G-6
<PAGE>

          IN WITNESS WHEREOF, this Agreement is executed as of the date first
above written.

<TABLE>
<S>                                            <C>
Address:                                         WACHOVIA BANK, NATIONAL
                                                 ASSOCIATION, as Trustee

401 South Tryon Street, 12th Floor
Charlotte, NC 28288-1179                         By:____________________________
                                                 Name:
Attention:                                       Title:
Telecopy:
Confirmation:
Address:                                         MERRILL LYNCH MORTGAGE
                                                 INVESTORS, INC.

4 World Financial Center
New York, NY 10281                               By:____________________________
                                                 Name:    Andrew Beal
                                                 Title:   Managing Director

Address:                                         WELLS FARGO BANK,
                                                 NATIONAL ASSOCIATION, as Master
                                                 Servicer
9062 Old Annapolis Road
Columbia, Maryland 21045-1951
                                                 By:____________________________
                                                 Name:
                                                 Title:

Address:                                         WELLS FARGO BANK,
                                                 NATIONAL ASSOCIATION, as Custodian
1015 10th Avenue Southeast, MS 0031
Minneapolis, MN  55414                           By:____________________________
                                                 Name:
                                                 Title:
</TABLE>

                                      G-7
<PAGE>

STATE OF NORTH CAROLINA                )
                                       ) ss:
COUNTY OF MECKLENBURG                  )

          On the 29th day of October 2004 before me, a notary public in and for
said State, personally appeared ___________________________, known to me to be
an _____________________ of Wachovia Bank, National Association, a national
banking association that executed the within instrument, and also known to me to
be the person who executed it on behalf of said national banking association,
and acknowledged to me that such national banking association executed the
within instrument.

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

                                        _______________________________________
                                                     Notary Public
[SEAL]

                                      G-8
<PAGE>

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

          On the 29th day of October 2004 before me, a notary public in and for
said State, personally appeared Andrew Beal, known to me to be a Managing
Director of Merrill Lynch Mortgage Investors, Inc., one of the corporations that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                        _______________________________________
                                                  Notary Public

[Notarial Seal]

                                      G-9
<PAGE>

STATE OF MARYLAND)
                                    ) ss:
COUNTY OF HOWARD                    )

          On the 29th day of October 2004 before me, a notary public in and for
said State, personally appeared ________________, known to me to be an
_________________________ of Wells Fargo Bank, National Association, a national
banking association that executed the within instrument, and also known to me to
be the person who executed it on behalf of said national banking association,
and acknowledged to me that such national banking association executed the
within instrument.

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

                                        ________________________________________
                                                  Notary Public
 [SEAL]

                                      G-10
<PAGE>

STATE OF MINNESOTA                          )
                                            )ss:
COUNTY OF HENNEPIN                          )

          On the 29th day of October 2004 before me, a notary public in and for
said State, personally appeared ___________________, known to me to be an
____________________ of Wells Fargo Bank, National Association, a national
banking association that executed the within instrument, and also known to me to
be the person who executed it on behalf of said national banking association,
and acknowledged to me that such corporation executed the within instrument.

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

                                        _______________________________________
                                                  Notary Public
 [Notarial Seal]

                                      G-11
<PAGE>

                                   EXHIBIT ONE

                     FORM OF CUSTODIAN INITIAL CERTIFICATION

                                                                October __, 2004

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center, 10th Floor
New York, New York 10281

Wachovia Bank, National Association
401 South Tryon Street, 12th Floor
Charlotte, NC 28288-1179

          Re:       Pooling and Servicing Agreement, dated as of October 1,
                    2004, among Merrill Lynch Mortgage Investors, Inc., as
                    depositor, Wells Fargo Bank, National Association, as master
                    servicer and securities administrator, and Wachovia Bank,
                    National Association, as trustee,
               MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2004-A4

Ladies and Gentlemen:

          Attached is the Custodian's preliminary exception report delivered in
accordance with Section 2.02 of the referenced Pooling and Servicing Agreement
(the "Pooling and Servicing Agreement"). Capitalized terms used but not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

          The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Custodian makes no representations as to
(i) the validity, legality, sufficiency, enforceability or genuineness of any of
the documents contained in the Mortgage File pertaining to the Mortgage Loans
identified on the Mortgage Loan Schedule, (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan or (iii) the existence of
any assumption, modification, written assurance, or substitution agreement, with
respect to any Mortgage File if no such documents appear in the Mortgage File
delivered to the Custodian.

                                        WELLS FARGO BANK,
                                        NATIONAL ASSOCIATION, as Custodian

                                        By:  __________________________________
                                        Name:
                                        Title:

                                      G-12
<PAGE>

                                   EXHIBIT TWO

                      FORM OF CUSTODIAN FINAL CERTIFICATION

                                                              ____________, 2004

Merrill Lynch Mortgage Investors, Inc.
World Financial Center--North Tower
250 Vesey Street
New York, NY 10281
Attention: Oleg Saitskiy

Wachovia Bank, National Association
401 South Tryon Street, 12th Floor
Charlotte, NC 28288-1179

          Re:       Pooling and Servicing Agreement, dated as of October 1,
                    2004, among Merrill Lynch Mortgage Investors, Inc., as
                    depositor, Wells Fargo Bank, National Association, as master
                    servicer and securities administrator and Wachovia Bank,
                    National Association, as trustee,
               MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2004-A4

Ladies and Gentlemen:

          In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement, the undersigned, hereby certifies that, except as noted on
the Schedule of Exceptions attached hereto, for each Mortgage Loan listed on the
Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on
the attachment hereto), it has received a complete Mortgage File which includes
the documents required to be included in the Mortgage File as set forth in the
Pooling and Servicing Agreement.

          The undersigned has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The undersigned makes no
representation as to: (i) the validity, legality, sufficiency, enforceability or
genuineness of any documents contained in any Mortgage File for any of the
Mortgage Loans listed on the Mortgage Loan Schedule to the Pooling and Servicing
Agreement, (ii) the collectability, insurability, effectiveness or suitability
of any such Mortgage Loan or (iii) whether any Mortgage File should include any
flood insurance policy, any rider, addends, surety or guaranty agreement, power
of attorney, buy down agreement, assumption agreement, modification agreement,
written assurance or substitution agreement.

                                      G-13
<PAGE>

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

                                        WELLS FARGO BANK,
                                        NATIONAL ASSOCIATION, as Custodian

                                        By:  __________________________________
                                        Name:

                                      G-14
<PAGE>

                        REQUEST FOR RELEASE OF DOCUMENTS

To:      Wells Fargo Bank, N.A.
         1015 10th Avenue S.E.
         Minneapolis, Minnesota 55414
         Attn: MLMI 2004-A4

          Re:       Custodial Agreement dated as of October 29, 2004, among
                    Wachovia Bank, National Association, as Trustee, Merrill
                    Lynch Mortgage Investors, Inc., as Company, Wells Fargo
                    Bank, National Association, as Master Servicer and
                    Securities Administrator, and Wells Fargo Bank, National
                    Association, as Custodian

          In connection with the administration of the Mortgage Loans held by
you as Custodian for the Owner pursuant to the above-captioned Custody
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:_____________________
------------

                                                   By:
                                                   (authorized singer)
                                                   Issuer:_____________________
                                                   Address:____________________
                                                           ____________________
                                                   Date:_______________________

                                      G-15
<PAGE>

CUSTODIAN

Wells Fargo Bank, N.A.

Please acknowledge the execution of the above request by your signature and date
below:

___________________________________                           __________________
Signature                                                     Date

Documents returned to Custodian:

___________________________________                           __________________
Custodian                                                     Date

                                      G-16
<PAGE>

                                   EXHIBIT H-1

                               SERVICING AGREEMENT

                           WASHINGTON MUTUAL BANK, FA

                                     H-1-1
<PAGE>

                                    EXHIBIT I

                              ASSIGNMENT AGREEMENT

                               (See Tabs [_____])

                                       I-1
<PAGE>

                                    EXHIBIT J

                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

                                 (See Tab [___])

                                       J-1
<PAGE>

                                    EXHIBIT K

            FORM CERTIFICATION TO BE PROVIDED BY THE MASTER SERVICER
                                 WITH FORM 10-K

          Re:       Merrill Lynch Mortgage Investors, Inc. Mortgage Pass-Through
                    Certificates, Series 2004-A4

                    I, [identify the certifying individual], certify that:

                    l. I have reviewed this annual report on Form 10-K, and all
reports on Form 8-K containing distribution or servicing reports filed in
respect of periods included in the year covered by this annual report, of
Merrill Lynch Mortgage Investors, Inc. (the "Registrant");

                    2. Based on my knowledge, the information in these reports,
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 this annual report;

                    3. Based on my knowledge, the servicing information required
to be provided to the Trustee by the Master Servicer under the Pooling and
Servicing Agreement for inclusion in these reports is included in these reports;

                    4. I am responsible for reviewing the activities performed
by the Servicer under the Servicing Agreement and based upon my knowledge and
the annual compliance review required under the Servicing Agreement, and except
as disclosed in the reports, the Servicer has fulfilled its obligations under
the Servicing Agreement; and

                    5. The reports disclose all significant deficiencies
relating to the Servicer's compliance with the minimum servicing standards based
upon the report provided by an independent public accountant, after conducting a
review in compliance with the Uniform Single Attestation Program for Mortgage
Bankers or similar standard as set forth in the Servicing Agreement that is
included in these reports.

          In giving the certifications above, I have reasonably relied on
information provided to me by the following unaffiliated parties:

                  ____________________________

                  ____________________________

                  ____________________________

                                       K-1
<PAGE>

          Capitalized terms used but not defined herein have the meanings
ascribed to them in Pooling and Servicing Agreement, dated October 1, 2004,
among Merrill Lynch Mortgage Investors, Inc., as depositor, Wells Fargo Bank,
National Association, as master servicer and securities administrator and
Wachovia Bank, National Association, as trustee.

                                        WELLS FARGO BANK, NATIONAL ASSOCIATION

                                        By:____________________________
                                        Name:
                                        Title:
                                        Date:

                                       K-2

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