Document:

Unassociated Document

    Form
      of Indenture

    

     

    INDENTURE

     

    among

     

    THORNBURG
      MORTGAGE SECURITIES TRUST [     ],

    Issuer,

    

    

    [     ],

    Indenture
      Trustee

     

    and

     

    [     ],

    Securities
      Administrator

     

     

    Dated
      as
      of [     ]

     

    

    THORNBURG
      MORTGAGE SECURITIES TRUST [     ]

    MORTGAGE-BACKED
      NOTES, SERIES [     ]

     

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF
      CONTENTS

     

    
      	 	 	
              Page

            
	 
	
              ARTICLE
                I
                DEFINITIONS AND INCORPORATION BY REFERENCE

            
	 
	
              Section
                1.01

            	
              Definitions

            	
              2

            
	
              Section
                1.02

            	
              Rules
                of Construction

            	
              9

            
	 
	
              ARTICLE
                II
                THE NOTES

            
	 
	
              Section
                2.01

            	
              Form

            	
              9

            
	
              Section
                2.02

            	
              Execution,
                Authentication and Delivery

            	
              10

            
	
              Section
                2.03

            	
              Limitations
                on Transfer of the Notes

            	
              13

            
	
              Section
                2.04

            	
              Registration;
                Registration of Transfer and Exchange

            	
              15

            
	
              Section
                2.05

            	
              Mutilated,
                Destroyed, Lost or Stolen Notes

            	
              16

            
	
              Section
                2.06

            	
              Persons
                Deemed Owners

            	
              17

            
	
              Section
                2.07

            	
              Payment
                of Principal and Interest

            	
              18

            
	
              Section
                2.08

            	
              Cancellation

            	
              19

            
	
              Section
                2.09

            	
              Release
                of Collateral

            	
              19

            
	
              Section
                2.10

            	
              Book-Entry
                Notes

            	
              20

            
	
              Section
                2.11

            	
              Notices
                to Clearing Agency

            	
              21

            
	
              Section
                2.12

            	
              Definitive
                Notes

            	
              21

            
	
              Section
                2.13

            	
              Tax
                Treatment

            	
              21

            
	
              Section
                2.14

            	
              Restrictions
                on Transfer and Retention of Beneficial Ownership Interest in the
                Privately Offered Notes

            	
              22

            
	 
	
              ARTICLE
                III COVENANTS

            
	 
	
              Section
                3.01

            	
              Payment
                of Principal and Interest

            	
              23

            
	
              Section
                3.02

            	
              Maintenance
                of Office or Agency

            	
              23

            
	
              Section
                3.03

            	
              Money
                for Payments to be Held in Trust

            	
              23

            
	
              Section
                3.04

            	
              Existence

            	
              25

            
	
              Section
                3.05

            	
              Protection
                of Collateral

            	
              25

            
	
              Section
                3.06

            	
              Opinions
                as to Collateral

            	
              26

            
	
              Section
                3.07

            	
              Performance
                of Obligations

            	
              26

            
	
              Section
                3.08

            	
              Negative
                Covenants

            	
              28

            
	
              Section
                3.09

            	
              Annual
                Statement as to Compliance

            	
              28

            
	
              Section
                3.10

            	
              Treatment
                of Notes as Debt for Tax Purposes

            	
              29

            
	
              Section
                3.11

            	
              No
                Other Business

            	
              29

            
	
              Section
                3.12

            	
              No
                Borrowing

            	
              29

            
	
              Section
                3.13

            	
              Guarantees,
                Loans, Advances and Other Liabilities

            	
              29

            
	
              Section
                3.14

            	
              Capital
                Expenditures

            	
              29

            
	
              Section
                3.15

            	
              Removal
                of Administrator

            	
              29

            
	
              Section
                3.16

            	
              Restricted
                Payments

            	
              30

            
	
              Section
                3.17

            	
              Notice
                of Events of Default

            	
              30

            
	
              Section
                3.18

            	
              Further
                Instruments and Acts

            	
              30

            
	
              Section
                3.19

            	
              Covenants
                of the Issuer

            	
              30

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                3.20

            	
              Representations
                and Warranties of the Issuer

            	
              30

            
	 
	
              ARTICLE
                IV
                SATISFACTION AND DISCHARGE

            
	 
	
              Section
                4.01

            	
              Satisfaction
                and Discharge of Indenture

            	
              31

            
	
              Section
                4.02

            	
              Application
                of Trust Money

            	
              33

            
	
              Section
                4.03

            	
              Repayment
                of Moneys Held by Paying Agent

            	
              33

            
	
              Section
                4.04

            	
              Trust
                Money Received by Indenture Trustee

            	
              33

            
	 
	
              ARTICLE
                V
                EVENTS OF DEFAULT; REMEDIES

            
	 
	
              Section
                5.01

            	
              Events
                of Default

            	
              33

            
	
              Section
                5.02

            	
              Acceleration
                of Maturity; Rescission and Annulment

            	
              35

            
	
              Section
                5.03

            	
              Collection
                of Indebtedness and Suits for Enforcement by Indenture
                Trustee

            	
              35

            
	
              Section
                5.04

            	
              Remedies;
                Priorities

            	
              37

            
	
              Section
                5.05

            	
              Optional
                Preservation of the Collateral

            	
              39

            
	
              Section
                5.06

            	
              Limitation
                of Suits

            	
              39

            
	
              Section
                5.07

            	
              Unconditional
                Rights of Noteholders To Receive Principal and Interest

            	
              40

            
	
              Section
                5.08

            	
              Restoration
                of Rights and Remedies

            	
              40

            
	
              Section
                5.09

            	
              Rights
                and Remedies Cumulative

            	
              40

            
	
              Section
                5.10

            	
              Delay
                or Omission Not a Waiver

            	
              41

            
	
              Section
                5.11

            	
              Control
                by Noteholders

            	
              41

            
	
              Section
                5.12

            	
              Waiver
                of Past Defaults

            	
              41

            
	
              Section
                5.13

            	
              Undertaking
                for Costs

            	
              42

            
	
              Section
                5.14

            	
              Waiver
                of Stay or Extension Laws

            	
              42

            
	
              Section
                5.15

            	
              Action
                on Notes

            	
              42

            
	
              Section
                5.16

            	
              Performance
                and Enforcement of Certain Obligations

            	
              43

            
	 
	
              ARTICLE
                VI
                THE INDENTURE TRUSTEE

            
	 
	
              Section
                6.01

            	
              Duties
                of Indenture Trustee

            	
              43

            
	
              Section
                6.02

            	
              Rights
                of Indenture Trustee

            	
              45

            
	
              Section
                6.03

            	
              Individual
                Rights of Indenture Trustee

            	
              46

            
	
              Section
                6.04

            	
              Indenture
                Trustee’s Disclaimer

            	
              47

            
	
              Section
                6.05

            	
              Notice
                of Defaults

            	
              47

            
	
              Section
                6.06

            	
              Reports
                by Securities Administrator to Holders

            	
              47

            
	
              Section
                6.07

            	
              Compensation
                and Indemnity

            	
              47

            
	
              Section
                6.08

            	
              Replacement
                of Indenture Trustee

            	
              48

            
	
              Section
                6.09

            	
              Successor
                Indenture Trustee by Merger

            	
              49

            
	
              Section
                6.10

            	
              Appointment
                of Co-Indenture Trustee or Separate Indenture Trustee

            	
              49

            
	
              Section
                6.11

            	
              Eligibility;
                Disqualification

            	
              50

            
	
              Section
                6.12

            	
              Representations
                and Warranties

            	
              51

            
	
              Section
                6.13

            	
              Preferential
                Collection of Claims Against Issuer

            	
              51

            
	
              Section
                6.14

            	
              Reporting
                Requirements of the Commission

            	
              51

            
	 
	
              ARTICLE
                VII
                NOTEHOLDERS’ LISTS AND REPORTS

            
	 
	
              Section
                7.01

            	
              Issuer
                To Furnish Indenture Trustee Names and Addresses of
                Noteholders

            	
              53

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                7.02

            	
              Preservation
                of Information; Communications to Noteholders

            	
              53

            
	
              Section
                7.03

            	
              Reports
                by Issuer

            	
              54

            
	
              Section
                7.04

            	
              Reports
                by Indenture Trustee

            	
              54

            
	 
	
              ARTICLE
                VIII
                ACCOUNTS, DISBURSEMENTS AND RELEASES

            
	 
	
              Section
                8.01

            	
              Collection
                of Money

            	
              55

            
	
              Section
                8.02

            	
              Note
                Payment Account and Certificate Distribution Account

            	
              55

            
	
              Section
                8.03

            	
              General
                Provisions Regarding Accounts

            	
              55

            
	
              Section
                8.04

            	
              Release
                of Collateral

            	
              56

            
	 
	
              ARTICLE
                IX
                SUPPLEMENTAL INDENTURES

            
	 
	
              Section
                9.01

            	
              Supplemental
                Indentures Without Consent of Noteholders

            	
              56

            
	
              Section
                9.02

            	
              Supplemental
                Indentures with Consent of Noteholders

            	
              57

            
	
              Section
                9.03

            	
              Execution
                of Supplemental Indentures

            	
              59

            
	
              Section
                9.04

            	
              Effect
                of Supplemental Indenture

            	
              59

            
	
              Section
                9.05

            	
              Conformity
                with Trust Indenture Act

            	
              59

            
	
              Section
                9.06

            	
              Reference
                in Notes to Supplemental Indentures

            	
              59

            
	
              Section
                9.07

            	
              Amendments
                to Trust Agreement

            	
              59

            
	
              Section
                9.08

            	
              Opinion
                of Counsel

            	
              59

            
	 
	
              ARTICLE
                X
                REDEMPTION OR CALL OF THE NOTES

            
	 
	
              Section
                10.01

            	
              Redemption
                or Call of the Notes

            	
              60

            
	
              Section
                10.02

            	
              Form
                of Redemption or Call Notice

            	
              60

            
	
              Section
                10.03

            	
              Notes
                Payable on Clean-Up Call Date or Optional Notes Purchase
                Date

            	
              62

            
	 
	
              ARTICLE
                XI
                MISCELLANEOUS

            
	 
	
              Section
                11.01

            	
              Compliance
                Certificates and Opinions, etc.

            	
              62

            
	
              Section
                11.02

            	
              Form
                of Documents Delivered to Indenture Trustee

            	
              63

            
	
              Section
                11.03

            	
              Acts
                of Noteholders

            	
              63

            
	
              Section
                11.04

            	
              Notices,
                etc., to Indenture Trustee, Issuer and Rating Agencies

            	
              64

            
	
              Section
                11.05

            	
              Notices
                to Noteholders; Waiver

            	
              64

            
	
              Section
                11.06

            	
              Conflict
                with Trust Indenture Act

            	
              65

            
	
              Section
                11.07

            	
              Effect
                of Headings and Table of Contents

            	
              65

            
	
              Section
                11.08

            	
              Successors
                and Assigns

            	
              65

            
	
              Section
                11.09

            	
              Severability

            	
              65

            
	
              Section
                11.10

            	
              Benefits
                of Indenture and Consents of Noteholders

            	
              65

            
	
              Section
                11.11

            	
              Legal
                Holidays

            	
              66

            
	
              Section
                11.12

            	
              Governing
                Law

            	
              66

            
	
              Section
                11.13

            	
              Counterparts

            	
              66

            
	
              Section
                11.14

            	
              Recording
                of Indenture

            	
              66

            
	
              Section
                11.15

            	
              Trust
                Obligations

            	
              66

            
	
              Section
                11.16

            	
              No
                Petition

            	
              67

            
	
              Section
                11.17

            	
              Inspection

            	
              67

            
	
              Section
                11.18

            	
              Agreements
                of Noteholders

            	
              67

            

    

    

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    EXHIBITS

     

    
      	
              EXHIBIT
                A-1

            	
              Forms
                of Class [     ] Notes

            
	
              EXHIBIT
                A-2

            	
              Forms
                of Privately Offered Notes

            
	
              EXHIBIT
                B-1

            	
              Form
                of Rule 144A (QIB) Investment Letter

            
	
              EXHIBIT
                B-2

            	
              Form
                of Rule 501(a) Investment Letter

            
	
              EXHIBIT
                C

            	
              Form
                of ERISA Affidavit for Class [     ]
                Notes

            

    

    

    

    

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    This
      INDENTURE, dated as of [     ], is by and among
      THORNBURG MORTGAGE SECURITIES TRUST [     ], a Delaware
      statutory trust (the “Issuer”), [     ], a national
      banking association, as indenture trustee and not in its individual capacity
      (the “Indenture Trustee”), and [     ], a national
      banking association, as securities administrator and not in its individual
      capacity (the “Securities Administrator”).

     

    Each
      party agrees as follows for the benefit of the other parties and for the equal
      and ratable benefit of the Holders of the Issuer’s Mortgage-Backed Notes, Series
      [     ] in the Classes specified herein:

     

    GRANTING
      CLAUSE

     

    The
      Issuer hereby Grants to the Indenture Trustee on the Closing Date, for the
      benefit of the Holders of the Notes, all of the Issuer’s right, title and
      interest, whether now owned or hereafter acquired, in and to: (i) the Trust
      Estate (as defined in the Sale and Servicing Agreement); (ii) the Issuer’s
      rights and benefits but none of its obligations under the Sale and Servicing
      Agreement (including the Issuer’s right to cause the Initial Seller or the
      Seller to repurchase Mortgage Loans from the Issuer under the circumstances
      described therein); (iii) the Yield Maintenance Agreements and all payments
      thereunder; (iv) the Issuer’s rights and benefits but none of its
      obligations under the Administration Agreement; (v) the Issuer’s rights and
      benefits but none of its obligations under each Mortgage Loan Purchase
      Agreement; (vi) the Issuer’s rights and benefits but none of its obligations
      under the Servicing Agreements; (vii) the Trust Accounts, all amounts and
      property in the Trust Accounts from time to time; (viii) all other property
      of
      the Trust from time to time; and (ix) all present and future claims, demands,
      causes of action and choses in action in respect of any or all of the foregoing
      and all payments on or under and all proceeds of every kind and nature
      whatsoever in respect of any or all of the foregoing, including all proceeds
      of
      the conversion thereof, voluntary or involuntary, into cash or other liquid
      property, all cash proceeds, accounts, accounts receivable, notes, drafts,
      acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
      condemnation awards, rights to payment of any and every kind and other forms
      of
      obligations and receivables, instruments and other property which at any time
      constitute all or part of or are included in the proceeds of any of the
      foregoing (collectively, the “Collateral”).

     

    The
      foregoing Grant is made in trust to secure the payment of principal of and
      interest on, and any other amounts owing in respect of, the Notes and to secure
      (i) the payment of all amounts due on the Notes in accordance with their terms,
      (ii) the payment of all other sums payable under the Indenture with respect
      to
      the Notes and (iii) compliance with the provisions of this Indenture, all as
      provided in this Indenture.

     

    The
      Indenture Trustee, as Indenture Trustee on behalf of the Holders of the Notes,
      acknowledges such Grant and accepts the trusts under this Indenture in
      accordance with its terms.

     

    Each
      Holder, by acceptance of the Notes, and the Indenture Trustee agree and
      acknowledge that each item of Collateral that is physically delivered to the
      Indenture Trustee or the Securities Administrator will be held by the Indenture
      Trustee (or its custodian) or the Securities Administrator in trust for the
      benefit of the Noteholders under the terms of this Indenture.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      I

     

    DEFINITIONS
      AND INCORPORATION BY REFERENCE

     

    Section
      1.01. Definitions.
      Except
      as otherwise specified herein or as the context may otherwise require, (i)
      capitalized terms used but not otherwise defined herein shall have the
      respective meanings set forth in the Sale and Servicing Agreement for all
      purposes of this Indenture and (ii) the following terms have the respective
      meanings set forth below for all purposes of this Indenture.

     

    Act:
      The
      meaning specified in Section 11.03(a).

     

    Administration
      Agreement:
      The
      Administration Agreement dated as of [     ] among the
      Issuer, the Indenture Trustee, the Securities Administrator,
      [     ], as owner trustee, and the
      Depositor.

     

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

     

    Authorized
      Officer:
      With
      respect to the Issuer, any officer of the Owner Trustee who is authorized to
      act
      for the Owner Trustee in matters relating to the Issuer and who is identified
      on
      the list of Authorized Officers delivered by the Owner Trustee to the Indenture
      Trustee on the Closing Date (as such list may be modified or supplemented from
      time to time thereafter) and, so long as the Administration Agreement is in
      effect, any Vice President, Assistant Vice President, Trust Officer or more
      senior officer of the Securities Administrator who is authorized to act for
      the
      Securities Administrator in matters relating to the Issuer and to be acted
      upon
      by the Securities Administrator pursuant to the Administration Agreement and
      who
      is identified on the list of Authorized Officers delivered by the Securities
      Administrator to the Indenture Trustee on the Closing Date (as such list may
      be
      modified or supplemented from time to time thereafter).

     

    Book-Entry
      Notes:
      Solely
      with respect to the Class [     ] Notes, beneficial
      interests in Class [     ] Notes, ownership and
      transfers of which shall be evidenced or made through book entries by a Clearing
      Agency as described in Section 2.10; provided,
      that
      after the occurrence of a condition whereupon Definitive Notes are to be issued
      to Note Owners of Class [     ] Notes, such Class
      [     ] Notes shall no longer be “Book-Entry
      Notes.”

     

    Class:
      All
      Notes having the same class designation.

     

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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Certificate
      of Trust:
      The
      certificate of trust of the Issuer substantially in the form of Exhibit B to
      the
      Trust Agreement.

     

    Clearing
      Agency:
      An
      organization registered as a “clearing agency” pursuant to Section 17A of the
      Exchange Act, as amended. As of the Closing Date, the Clearing Agency shall
      be
      The Depository Trust Company.

     

    Clearing
      Agency Participant:
      A
      broker, dealer, bank, other financial institution or other Person for whom
      from
      time to time a Clearing Agency effects book-entry transfers and pledges of
      securities deposited with the Clearing Agency.

     

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

     

    Commission:
      The
      Securities and Exchange Commission.

     

    Corporate
      Trust Office:
      The
      principal office of the Indenture Trustee at which at any particular time its
      corporate trust business shall be administered, which office at the date of
      execution of this Indenture is located at [     ],
      Attention: [     ], or at such other address as the
      Indenture Trustee may designate from time to time by notice to the Noteholders,
      and the Issuer, or the principal corporate trust office of any successor
      Indenture Trustee at the address designated by such successor Indenture Trustee
      by notice to the Noteholders and the Issuer.

     

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

     

    Definitive
      Notes:
      The
      meaning specified in Section 2.10.

     

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

     

    DTC:
      The
      Depository Trust Company.

     

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

     

    Event
      of Default:
      The
      meaning specified in Section 5.01.

     

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

     

    Executive
      Officer:
      With
      respect to any corporation or limited liability company, the Chief Executive
      Officer, Chief Operating Officer, Chief Financial Officer, President, Manager,
      Executive Vice President, any Vice President, the Secretary or the Treasurer
      of
      such entity; and with respect to any partnership, any general partner
      thereof.

     

    Global
      Securities:
      The
      meaning specified in Section 2.01(a).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Grant:
      Mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey,
      assign, transfer, create and grant a lien upon and a security interest in and
      a
      right of set-off against, deposit, set over and confirm pursuant to this
      Indenture. A Grant of the Collateral or of any other agreement or instrument
      shall include all rights, powers and options (but none of the obligations)
      of
      the granting party thereunder, including the immediate and continuing right
      to
      claim for, collect, receive and give receipt for principal and interest payments
      in respect of the Collateral and all other moneys payable thereunder, to give
      and receive notices and other communications, to make waivers or other
      agreements, to exercise all rights and options, to bring Proceedings in the
      name
      of the granting party or otherwise and generally to do and receive anything
      that
      the granting party is or may be entitled to do or receive thereunder or with
      respect thereto.

     

    Holder
      or
Noteholder:
      A
      Person in whose name a Note is registered on the Note Register except that,
      solely for the purposes of taking any action or giving any consent pursuant
      to
      this Indenture, any Note registered in the name of the Indenture Trustee or
      any
      Affiliate thereof shall be deemed not to be Outstanding in determining whether
      the requisite percentage necessary to effect any such consent has been obtained,
      except that, in determining whether the Indenture Trustee shall be protected
      in
      relying upon any such consent, only Notes which a Responsible Officer of the
      Indenture Trustee knows to be so held shall be disregarded.

     

    Independent:
      When
      used with respect to any specified Person, that such Person (a) is in fact
      independent of the Issuer, any other obligor on the Notes, the Seller, the
      Initial Seller and any Affiliate of any of the foregoing Persons, (b) does
      not
      have any direct financial interest or any material indirect financial interest
      in the Issuer, any such other obligor, the Seller, the Initial Seller or any
      Affiliate of any of the foregoing Persons and (c) is not connected with the
      Issuer, any such other obligor, the Seller, the Initial Seller or any Affiliate
      of any of the foregoing Persons as an officer, employee, promoter, underwriter,
      trustee, partner, director or person performing similar functions.

     

    Independent
      Certificate:
      A
      certificate or opinion to be delivered to the Indenture Trustee under the
      circumstances described in, and otherwise complying with, the applicable
      requirements of Section 11.01, made by an Independent appraiser or other expert
      appointed by an Issuer Order and approved by the Indenture Trustee or Securities
      Administrator, as applicable, in the exercise of reasonable care, and such
      opinion or certificate shall state that the signer has read the definition
      of
“Independent” in this Indenture and that the signer is Independent within the
      meaning thereof.

     

    [Interest
      Only Notes:
      The
      Class [     ] Notes.]

     

    Issuer:
      Thornburg Mortgage Securities Trust [     ], a Delaware
      statutory trust, or any successor and, for purposes of any provision contained
      herein and required by the TIA, each other obligor on the Notes.

     

    Issuer
      Order
      or
Issuer
      Request:
      A
      written order or request signed in the name of the Issuer by any one of its
      Authorized Officers and delivered to the Indenture Trustee or Securities
      Administrator, as applicable.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Majority
      Priority Class Noteholders:
      On any
      date Holders of the Priority Class representing more than 50% of the aggregate
      Class Principal Amount of the Priority Class Notes then
      outstanding.

     

    Non-Priority
      Class Note:
      As of
      any date of determination, any Outstanding Note other than the Priority Class
      Notes.

     

    Note:
      Any of
      the Class [     ] Notes issued pursuant to this
      Indenture, substantially in the forms attached hereto as Exhibit A.

     

    Note
      Depository Agreement:
      The
      agreement dated [     ], between the Issuer and The
      Depository Trust Company, as the initial Clearing Agency, relating to the
      Book-Entry Notes.

     

    Note
      Owner
      or
Owner:
      With
      respect to a Book-Entry Note, the Person that is the beneficial owner of such
      Book-Entry Note, as reflected on the books of the Clearing Agency or on the
      books of a Person maintaining an account with such Clearing Agency (directly
      as
      a Clearing Agency Participant or as an indirect participant, in each case in
      accordance with the rules of such Clearing Agency), and with respect to a
      Definitive Note, the Person that is the registered owner of such Note as
      reflected in the Note Register.

     

    Note
      Principal Amount:
      With
      respect to each Note of a given Class (other than any Interest Only Notes)
      and
      any date of determination, the product of (i) the Class Principal Amount of
      such
      Class and (ii) the applicable Percentage Interest of such Note.

     

    Note
      Purchase Price:
      For
      each Class of Notes and any Optional Notes Purchase Date, an amount equal to
      the
      sum of (1) 100% of the aggregate Class Principal Amount for such Class and
      such
      date, (2) the aggregate accrued and unpaid interest, less amounts of interest
      and principal otherwise being paid to such Noteholders on such date and (3)
      any
      unreimbursed Class [     ] Deferred
      Amounts.

     

    Note
      Register
      and
Note
      Registrar:
      The
      respective meanings specified in Section 2.04. The initial Note Registrar shall
      be the Securities Administrator. 

     

    Officer’s
      Certificate:
      A
      certificate signed by any Authorized Officer of the Issuer (or by an officer
      of
      the Depositor under the Administration Agreement), under the circumstances
      described in, and otherwise complying with, the applicable requirements of
      Section 11.01, and delivered to the Indenture Trustee and the Securities
      Administrator. Unless otherwise specified, any reference in this Indenture
      to an
      Officer’s Certificate shall be to an Officer’s Certificate of any Authorized
      Officer of the Issuer.

     

    Opinion
      of Counsel:
      One or
      more written opinions of counsel who may, except as otherwise expressly provided
      in this Indenture, be employees of or counsel to the Issuer and who shall be
      satisfactory to the Indenture Trustee, the Note Registrar or the Securities
      Administrator, as applicable, which opinion or opinions shall be addressed
      to
      the Indenture Trustee, as Indenture Trustee, and shall comply with any
      applicable requirements of Section 11.01 and shall be in form and substance
      satisfactory to the Indenture Trustee, the Note Registrar or
      the
      Securities Administrator, as applicable.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Optional
      Notes Purchase Date:
      Any
      Payment Date on which the Optional Notes Purchase Right is
      exercised.

     

    Optional
      Notes Purchase Right:
      The
      option of [     ], or its assignee, to call the Notes
      on any Payment Date on which the aggregate Scheduled Principal Balance of the
      Mortgage Loans is equal to or less than 20% of the aggregate Cut-off Date
      Balance.

     

    Outstanding:
      With
      respect to any Note as of the date of determination, all Notes theretofore
      authenticated and delivered under this Indenture except:

     

    (i) Notes
      theretofore cancelled by the Note Registrar or delivered to the Note Registrar
      for cancellation;

     

    (ii) Notes,
      or
      portions thereof, the payment for which money in the necessary amount has been
      theretofore deposited with the Securities Administrator or any Paying Agent
      in
      trust for the Holders of such Notes (provided,
      however,
      that if
      such Notes are to be redeemed, notice of such redemption has been duly given
      pursuant to this Indenture or provision for such notice has been made,
      satisfactory to the Securities Administrator); and

     

    (iii) Notes
      or
      portions thereof in exchange for or in lieu of which other Notes have been
      authenticated and delivered pursuant to this Indenture unless proof satisfactory
      to the Securities Administrator is presented that any such Notes are held by
      a
      bona fide purchaser;

     

    provided,
      that in
      determining whether the Holders of the requisite Outstanding Balance of the
      Notes have given any request, demand, authorization, direction, notice, consent
      or waiver hereunder or under any other Operative Agreement, Notes owned by
      the
      Issuer, any other obligor upon the Notes, the Depositor, the Owner Trustee,
      the
      Indenture Trustee, a Servicer, the Securities Administrator or any Affiliate
      of
      any of the foregoing Persons shall be disregarded and deemed not to be
      Outstanding, except that, in determining whether the Indenture Trustee shall
      be
      protected in relying upon any such request, demand, authorization, direction,
      notice, consent or waiver, only Notes that a Responsible Officer of the
      Indenture Trustee or the Securities Administrator knows to be so owned shall
      be
      so disregarded (unless such action requires the consent, waiver, request or
      demand of 100% of the Outstanding Balance represented by a particular Class
      and
      100% of the Outstanding Balance represented by such Class is registered in
      the
      name of one or more of the foregoing entities). Notes so owned that have been
      pledged in good faith may be regarded as Outstanding if the pledgee establishes
      to the satisfaction of the Securities Administrator the pledgee’s right so to
      act with respect to such Notes and that the pledgee is not the Issuer, any
      other
      obligor upon the Notes, the Depositor, the Owner Trustee, the Indenture Trustee,
      the Servicer, the Securities Administrator or any Affiliate of any of the
      foregoing Persons.

     

    Outstanding
      Balance:
      The
      aggregate principal or notional amount of the Notes Outstanding, or of all
      Notes
      of a Class, as applicable, as of the date of determination.

     

    Ownership
      Certificates:
      As
      defined in the Trust Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Paying
      Agent:
      Initially, the Securities Administrator or any other Person that meets the
      eligibility standards for the Indenture Trustee specified in Section 6.11 and
      is
      authorized and appointed by the Issuer to make payments to and from the Note
      Payment Account, including payments of principal of or interest on the Notes
      on
      behalf of the Issuer. 

     

    PCAOB:
      The
      Public Company Accounting Oversight Board.

     

    Predecessor
      Note:
      With
      respect to any particular Note, every previous Note evidencing all or a portion
      of the same debt as that evidenced by such particular Note; and, for the purpose
      of this definition, any Note authenticated and delivered under Section 2.05
      in
      lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence
      the same debt as the mutilated, lost, destroyed or stolen Note.

     

    Priority
      Class Notes:
      Until
      the Class Principal Amounts of the Class [     ] Notes
      are reduced to zero and all sums payable to the Holders of the Class
      [     ] Notes have been paid in full, the Class
      [     ] Notes acting as a single Class; when the Class
      Principal Amounts of the Class [     ] Notes are
      reduced to zero and all sums payable to the Holders of the Class
      [     ] Notes have been paid in full, each individual
      Class of Subordinate Notes consecutively in ascending order, starting with
      the
      Class of Subordinate Notes with the lowest numerical designation, until the
      Class Principal Amounts of such Class of Subordinate Notes are reduced to zero
      and all sums payable to the Holders thereof have been paid in full.

     

    Privately
      Offered Notes:
      The
      Subordinated Notes and the Interest Only Notes.

     

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

     

    Prospective
      Owner:
      Each
      prospective purchaser and any subsequent transferee of a Note.

     

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

     

    Redemption
      Date:
      A
      Clean-Up Call Date or Optional Notes Purchase Date, as applicable.

     

    Required
      Rating:
      The
      Notes have received, on the Closing Date, the following ratings from the Rating
      Agencies:

     

    
      	
              Class

            	
              [     ]
                Rating

            
	
              [     ]

            	
              [     ]

            

    

    N/R
      = Not
      rated by that Rating Agency

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Responsible
      Officer:
      With
      respect to the Indenture Trustee, any Vice President, any Assistant Vice
      President, any Assistant Secretary, or Assistant Treasurer in the corporate
      trust group or similar group of the Indenture Trustee customarily performing
      functions similar to those performed by any of the above-designated officers
      and
      also, with respect to a particular matter, any other officer to whom such matter
      is referred because of such officer’s knowledge of and familiarity with the
      particular subject. With respect to the Securities Administrator, any officer
      in
      the corporate trust department or similar group of the Securities Administrator
      with direct responsibility for the administration of this Indenture and also,
      with respect to a particular corporate trust matter, any other officer to whom
      such matter is referred because of his or her knowledge of and familiarity
      with
      the particular subject.

     

    [Retained
      Class [     ] Note:
      Any of
      the Class [     ], Class
      [     ] and approximately
      [     ]% of the Class [     ]
      Notes acquired by TMI or an affiliate of TMI on the Closing Date.]

     

    Sale
      and Servicing Agreement:
      The
      Sale and Servicing Agreement dated as of [     ], among
      the Issuer, Thornburg Mortgage Securities Corporation, as depositor, Thornburg
      Mortgage Home Loans, Inc., as initial seller and sponsor, Thornburg Mortgage
      Funding, Inc., as seller, [     ], as master servicer
      and securities administrator, and the Indenture Trustee, as such may be amended,
      supplemented or otherwise modified from time to time.

     

    Sponsor:
      Thornburg Mortgage Home Loans, Inc.

     

    State:
      Any one
      of the 50 States of the United States of America or the District of
      Columbia.

     

    Stated
      Maturity Date:
      With
      respect to each Class of Notes, the date set forth in Section 2.02.

     

    Subordinated
      Notes:
      The
      Class B-[     ] Notes.

     

    Trust
      Indenture Act or TIA:
      The
      Trust Indenture Act of 1939 as in force on the date hereof, unless otherwise
      specifically provided.

     

    Section
      1.02. Incorporation
      by Reference of Trust Indenture Act. 

     

    (a) Whenever
      this Indenture refers to a provision of the TIA, the provision is incorporated
      by reference in and made a part of this Indenture. The following TIA terms
      used
      in this Indenture have the following meanings:

     

    “Commission”
      means the Securities and Exchange Commission. 

     

    “indenture
      securities” means the Notes.

     

    “indenture
      security holder” means a Noteholder. 

     

    “indenture
      to be qualified” means this Indenture. 

     

    “indenture
      trustee” or “institutional trustee” means the Indenture Trustee.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    “obligor”
      on the indenture securities means the Issuer and any other obligor on the
      indenture securities.

     

    (b) All
      other
      TIA terms used in this Indenture that are defined in the TIA, defined by TIA
      reference to another statute or defined by rule of the Securities and Exchange
      Commission have the respective meanings assigned to them by such
      definitions.

     

    Section
      1.03. Rules
      of Construction.
      Unless
      the context otherwise requires:

     

    (i) a
      term
      has the meaning assigned to it;

     

    (ii) an
      accounting term not otherwise defined has the meaning assigned to it in
      accordance with generally accepted accounting principles as in effect from
      time
      to time;

     

    (iii) “or”
is
      not exclusive;

     

    (iv) “including”
      means including without limitation;

     

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

     

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

     

    (vii) terms
      defined in the UCC and not otherwise defined herein shall have the meaning
      assigned to them in the UCC; and

     

    (viii) “U.S.
      dollars,” “dollars,” or the sign “$” shall be construed as references to United
      States dollars which are freely transferable by residents and non-residents
      of
      the United States of America and convertible by such persons into any other
      freely convertible currency unless such transferability or convertibility is
      restricted by any law or regulation of general application in which event
      references to “U.S. dollars,” “dollars,” or the sign “$” shall be construed as
      references to such coin or currency of the United States of America as at the
      time of payment shall be legal tender for the payment of public and private
      debts in the United States of America, and “cents” shall be construed
      accordingly.

     

    ARTICLE
      II

     

    THE
      NOTES

     

    Section
      2.01. Form.
      (a) The
      Notes shall be designated as the “Thornburg Mortgage Securities Trust
      [     ] Mortgage
      Backed Notes, Series [     ].” Each Class of Notes,
      together with the Securities Administrator’s certificate of authentication,
      shall be in substantially the forms set forth in Exhibits A-1 and A-2 with
      such
      appropriate insertions, omissions, substitutions and other variations as are
      required or permitted by this Indenture, and may have such letters, numbers
      or
      other marks of identification and such legends or endorsements placed thereon
      as
      may, consistently herewith, be determined by the officers executing such Notes,
      as evidenced by their execution of the Notes. Any portion of the text of any
      Note may be set forth on the reverse thereof, with an appropriate reference
      thereto on the face of the Note.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    The
      Definitive Notes and the global certificates (“Global Securities”) representing
      the Book-Entry Notes shall be typewritten, printed, lithographed or engraved
      or
      produced by any combination of these methods (with or without steel engraved
      borders), all as determined by the officers executing such Notes, as evidenced
      by their execution of such Notes.

     

    The
      Notes
      shall be issued as registered Notes. Each Class of Class
      [     ] Notes, except as otherwise provided by
      supplement to this Indenture, shall be issued in a denomination of at least
      $[     ] in principal amount and any larger
      denomination that is an integral multiple of $[     ]
      approved by the Issuer, such approval to be evidenced by the execution thereof;
      provided,
      however,
      one
      Note may be issued in an amount less than the minimum denomination. Each Class
      of Privately Offered Notes, except as otherwise provided by supplement to the
      Indenture, shall be issued in a denomination of at least
      $[     ] in principal amount or notional amount (in the
      case of any Interest Only Notes), as applicable, and any larger denomination
      that is an integral multiple of $[     ] approved by
      the Issuer, such approval to be evidenced by the execution thereof; provided,
      however,
      one Note
      of each Class may be issued in an amount less than the minimum denomination.
      Privately Offered Notes may solely be issued, transferred and exchanged in
      the
      form of Definitive Notes. If the Class [     ] Notes
      are issuable in whole or in part as Book-Entry Notes, any such Class
      [     ] Note may provide that it shall represent the
      aggregate amount of Outstanding Notes of its Class from time to time endorsed
      thereon and may provide that the aggregate amount of Outstanding Notes of its
      Class represented thereby may from time to time be reduced to reflect exchanges
      or increased to reflect the issuance of an additional principal amount of Notes
      of such Class. Any endorsement of a Book-Entry Note to reflect the amount,
      or
      any increase or decrease in the amount, of Outstanding Notes represented thereby
      shall be made in such manner and by such Person or Persons, as shall be
      specified therein or in the Issuer Order of authentication delivered to the
      Securities Administrator.

     

    Each
      Note
      shall be dated the date of its authentication. The terms of the Notes set forth
      in Exhibit A-1 and A-2 are part of the terms of this Indenture.

     

    Section
      2.02. Execution,
      Authentication and Delivery.
      (a) The
      Notes shall be executed on behalf of the Issuer by any Authorized Officer of
      the
      Owner Trustee. The signature of any such Authorized Officer on the Notes may
      be
      manual or facsimile.

     

    Notes
      bearing the manual or facsimile signature of individuals who were at any time
      Authorized Officers of the Owner Trustee shall bind the Issuer, notwithstanding
      that such individuals or any of them have ceased to hold such offices prior
      to
      the authentication and delivery of such Notes or did not hold such offices
      at
      the date of such Notes.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Subject
      to the satisfaction of the conditions set forth in this Section 2.02, the
      Securities Administrator shall, upon Issuer Order, authenticate and deliver
      the
      Notes for original issue in the initial aggregate principal amounts or notional
      amount with respect to each Class as specified below:

     

    
      	
              Class

            	
              Class
                Principal 

              or
                Notional Amount

            	
               

              Stated
                Maturity Date

            
	
              [     ]

            	
              [     ]

            	
              [     ]

            

    

    ___________________

    *
      Notional Amount

     

    The
      aggregate Class Principal Amounts (or Class Notional Amount) of such Classes
      of
      Notes outstanding at any time may not exceed such respective
      amounts.

     

    (b)
      Issuance of the Notes shall be conditioned upon receipt by the Indenture Trustee
      or the Securities Administrator, as applicable, of the following:

     

    (i) An
      Issuer
      Order authorizing the execution and authentication of such Notes;

     

    (ii) All
      of
      the items of Collateral that are to be delivered to the Indenture Trustee or
      the
      Securities Administrator, as provided herein or in the Servicing
      Agreement;

     

    (iii) An
      executed counterpart from each party to each of the Trust Agreement, the
      Indenture, the Administration Agreement and the Sale and Servicing Agreement,
      respectively, and a certified copy of the Certificate of Trust;

     

    (iv) Except
      to
      the extent provided in subsection (c) below, Opinions of Counsel addressed
      to
      the Indenture Trustee to the effect that:

     

    (I) the
      Issuer has been duly formed and is validly existing as a statutory trust under
      the laws of the State of Delaware, and has power, authority and legal right
      to
      execute and deliver this Indenture and the other Operative Agreements to which
      it is a party;

     

    (II) the
      issuance of the Notes has been duly and validly authorized by the
      Issuer;

     

    (III) the
      Notes, when executed and authenticated in accordance with the provisions of
      this
      Indenture and delivered against payment therefor, will be the legal, valid
      and
      binding obligations of the Issuer pursuant to the terms of this Indenture and
      will be entitled to the benefits of this Indenture, and will be enforceable
      in
      accordance with their terms, subject to bankruptcy, insolvency, reorganization,
      arrangement, moratorium, fraudulent or preferential conveyance and other similar
      laws of general application affecting the rights of creditors generally and
      to
      general principles of equity (regardless of whether such enforcement is
      considered in a proceeding in equity or at law); 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (IV) assuming
      due authorization, execution and delivery thereof by the Indenture Trustee,
      this
      Indenture has been duly executed and delivered by Issuer and constitutes the
      legal, valid and binding obligation of the Issuer, enforceable against the
      Issuer in accordance with its terms, subject to bankruptcy, insolvency,
      reorganization, arrangement, moratorium, fraudulent or preferential conveyance
      and other similar laws of general application affecting the rights of creditors
      generally and to general principles of equity (regardless of whether such
      enforcement is considered in a proceeding in equity or at law); 

     

    (V) the
      Issuer is not required to be registered under the Investment Company Act of
      1940, as amended;

     

    (VI) the
      Issuer will not be characterized as a taxable mortgage pool or an association
      (or publicly traded partnership) taxable as a corporation; 

     

    (VII) the
      provisions of the Indenture are sufficient to create a valid security interest
      in favor of the Indenture Trustee in the Collateral; and

     

    (VIII) this
      Indenture has been duly qualified under the Trust Indenture Act.

     

    (v) An
      Officer’s Certificate of the Depositor on behalf of the Issuer complying with
      the requirements of Section 11.01 and stating that:

     

    (I) the
      Issuer is not in Default under this Indenture and the issuance of the Notes
      will
      not result in any breach of any of the terms, conditions or provisions of,
      or
      constitute a default under, any indenture, mortgage, deed of trust or other
      agreement or instrument to which the Issuer is a party or by which it is bound,
      or any order of any court or administrative agency entered in any proceeding
      to
      which the Issuer is a party or by which it may be bound or to which it may
      be
      subject;

     

    (II) any
      form
      UCC-1 filed or to be filed against the Issuer for the benefit of the Indenture
      Trustee with respect to the Collateral, shall contain a statement that a
      purchaser of a security interest in any Collateral described in such financing
      statement will violate the rights of the Indenture Trustee, as secured party,
      in
      such Collateral;

     

    (III) attached
      thereto are true and correct copies of letters signed by the Rating Agencies
      to
      the effect that each Class of Notes being rated by it has been assigned the
      Required Rating; and

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (IV) all
      conditions precedent provided for in this Indenture relating to the
      authentication and delivery of the Notes have been complied with.

     

    (vi) A
      letter
      from each Rating Agency confirming the Required Rating of each Class of Notes
      rated by such Rating Agency.

     

    (c)
      The
      representations and warranties made pursuant to the Officer’s Certificate
      delivered pursuant to subsection (b)(v) above shall survive the discharge of
      this Indenture and may not be waived by any party hereto. The Opinions of
      Counsel to be delivered pursuant to subsection (b)(iv) above may differ from
      the
      Opinions of Counsel described in such subsection so long as such Opinions of
      Counsel so delivered are acceptable to the Rating Agencies and the Securities
      Administrator, which shall be conclusively evidenced by the Securities
      Administrator’s authentication and delivery of the Notes and the Rating
      Agencies’ issuance of their letters pursuant to subsection (b)(vi) above and
      such acceptable opinions shall be deemed to be the Opinions of Counsel required
      pursuant to subsection (b)(iv) above.

     

    (d)
      The
      Notes that are authenticated and delivered by the Securities Administrator
      to or
      upon the order of the Issuer on the Closing Date shall be dated the Closing
      Date. All other Notes that are authenticated after the Closing Date as a result
      of transfer or exchange or for any other purpose under the Indenture shall
      be
      dated the date of their authentication.

     

    (e)
      No
      Note shall be entitled to any benefit under this Indenture or be valid or
      obligatory for any purpose, unless there appears on such Note a certificate
      of
      authentication substantially in the form provided for herein executed by the
      Securities Administrator by the manual signature of one of its authorized
      signatories, and such certificate upon any Note shall be conclusive evidence,
      and the only evidence, that such Note has been duly authenticated and delivered
      hereunder.

     

    Section
      2.03. Limitations
      on Transfer of the Notes.
      a)
      Except
      for a transfer made to TMI or an affiliate of TMI, no Privately Offered Note
      may
      be offered, sold, delivered or transferred (including, without limitation,
      by
      pledge or hypothecation) except (i) under Rule 144A under the Securities
      Act (“Rule 144A”) to qualified institutional buyers or “QIBs” purchasing for
      their own account or for the account of one or more QIBs, for whom they are
      authorized to act or (ii) to accredited investors or “AIs,” as defined in Rule
      501(a)(1), (2), (3) or (7) under the Securities Act (“Rule 501(a)”), purchasing
      for their own account or for the accounts of one or more AIs for whom they
      are
      authorized to act. Each Privately Offered Note shall bear a restrictive legend
      to the foregoing effect substantially in the form of the legends on the face
      of
      the form of Note at Exhibit A-2. 

     

    (b) Except
      for a transfer made to TMI or an affiliate of TMI, (i) no
      transfer of a Privately Offered Note in the form of a Definitive Note shall
      be
      made unless the Note Registrar shall have received a representation from the
      transferee of such Note, acceptable to and in form and substance satisfactory
      to
      the Note Registrar and the Depositor (such requirement is satisfied only by
      the
      Note Registrar’s receipt of an investment letter from the transferee
      substantially in the form of Exhibit B-1 or Exhibit B-2, as applicable,
      hereto),
      to the
      effect that such transferee is not acquiring such Note for, or with the assets
      of, an employee benefit plan or other retirement arrangement that is subject
      to
      Section 406 of ERISA or to Section 4975 of the Code or to any substantially
      similar law (“Similar Law”), or any entity deemed to hold the plan assets of the
      foregoing (collectively, “Benefit Plans”), (ii) no transfer of a Class
      [     ] Note (other than a Retained Class
      [     ] Note) in the form of a Definitive Note shall be
      made unless the Note Registrar shall have received a representation from the
      transferee of such Note, acceptable to and in form and substance satisfactory
      to
      the Note Registrar and the Depositor (such requirement is satisfied only by
      the
      Note Registrar’s receipt of a transfer affidavit from the transferee
      substantially in the form of Exhibit C hereto) to the effect that its
      acquisition and holding of such Notes for, or with the assets of, a Benefit
      Plan
      will not result in a non-exempt prohibited transaction under Section 406 of
      ERISA or Section 4975 of the Code which is not covered under Prohibited
      Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60,
      PTCE 96-23 (each, an “Investor-Based Exemption”), the non-fiduciary service
      provider exemption under Section 408(b)(17) of ERISA and Section 4975(d)(20)
      of
      the Code or some other applicable exemption, and will not result in a non-exempt
      violation of any Similar Law and (iii) in the case of a transfer of a Retained
      Class [     ] Note to a transferee other than TMI or an
      affiliate of TMI, no transfer of a Retained Class
      [     ] Note in the form of a Definitive Note shall be
      made unless the Note Registrar shall have received a representation from the
      transferee of such Note, acceptable to and in form and substance satisfactory
      to
      the Note Registrar and the Depositor (such requirement is satisfied only by
      the
      Note Registrar’s receipt of a transfer affidavit from the transferee
      substantially in the form of Exhibit C hereto) to the effect that at the date
      of
      transfer, such Note is rated investment grade or better, such transferee
      believes that such Note is properly treated as indebtedness with substantial
      equity features for purposes of the Plan Assets Regulations (based in part
      on
      the issuance of an opinion of counsel of nationally recognized standing in
      the
      United States experienced in such matters that, under the relevant facts and
      circumstances, such Note will be classified as debt instruments for U.S. federal
      income tax purposes) and its acquisition and holding of such Note will not
      result in a non-exempt prohibited transaction under Section 406 of ERISA or
      Section 4975 of the Code which is not covered under an
      Investor-Based Exemption or some other applicable statutory or administrative
      exemption, and will not cause a non-exempt
      violation of any Similar Law.

     

    
      
        
        

      

      
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    (c) In
      the
      case of a Class [     ] Note that is a Book-Entry Note,
      for purposes of clauses (i), (ii) or (iii) of the preceding paragraph, such
      representations shall be deemed to have been made to the Note Registrar by
      the
      transferee’s acceptance of such Class [     ] Note that
      is also a Book-Entry Note (or the acceptance by a Note Holder of the beneficial
      interest in such Note).

     

    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      none of the Indenture Trustee, the Securities Administrator, the Note Registrar,
      the Issuer or the Depositor shall have any liability to any Person for any
      registration of transfer of any Note that is in fact not permitted by this
      Section 2.03(c) or for the Paying Agent making any payments due on such Note
      to
      the Holder thereof or taking any other action with respect to such Holder under
      the provisions of this Indenture so long as such transfer was registered by
      the
      Note Registrar in accordance with the foregoing requirements. In addition,
      none
      of the Indenture Trustee, the Securities Administrator, the Note Registrar
      or
      the Depositor shall be required to monitor, determine or inquire as to
      compliance with the transfer restrictions with respect to any Note in the form
      of a Book-Entry Note, and none of the Indenture Trustee, Securities
      Administrator, the Note Registrar or the Depositor shall have any liability
      for
      transfers of Class [     ] Notes as Book-Entry Notes or
      any interests therein made in violation of the restrictions on transfer
      described in this Section 2.03(c).

     

    
      
        
        

      

      
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    (d) In
      the
      event that a Note is transferred to a Person that does not meet the requirements
      of this Section 2.03, such transfer shall be of no force and effect, shall
      be
      void ab
      initio,
      and
      shall not operate to transfer any rights to such Person, notwithstanding any
      instructions to the contrary to the Issuer, the Note Registrar, the Indenture
      Trustee or any intermediary; and the Paying Agent shall not make any payments
      on
      such Note for as long as such Person is the Holder of such Note.

     

    (e) The
      Note
      Registrar on behalf of the Depositor shall provide to any Holder of a Privately
      Offered Note and any prospective transferee designated by any such Holder,
      information regarding such Privately Offered Note and the Mortgage Loans and
      such other information as shall be necessary to satisfy the condition to
      eligibility set forth in Rule 144A(d)(4) for transfer of any such Note without
      registration thereof under the Securities Act pursuant to the registration
      exemption provided by Rule 144A. Each Holder of a Privately Offered Note
      desiring to effect such a transfer shall, and does hereby agree to, indemnify
      the Issuer, the Owner Trustee, the Indenture Trustee, the Note Registrar and
      the
      Depositor against any liability that may result if the transfer is not so exempt
      or is not made in accordance with federal and state securities laws and any
      other restrictions specified in this Section 2.03. 

     

    The
      Note
      Registrar shall cause each Note to contain a legend substantially similar to
      the
      applicable legend provided in Exhibit A-1 or A-2 hereto, as applicable, stating
      that transfer of such Notes is subject to certain restrictions as set forth
      herein. 

     

    Section
      2.04. Registration;
      Registration of Transfer and Exchange.
      The
      Issuer shall cause the Note Registrar to keep a register (the “Note Register”)
      in which, subject to such reasonable regulations as it may prescribe and the
      restrictions on transfers of the Notes set forth herein, the Issuer shall
      provide for the registration of Notes and the registration of transfers of
      Notes. The Securities Administrator initially shall be the “Note Registrar” for
      the purpose of registering Notes and transfers of Notes as herein provided,
      and
      the Indenture Trustee shall have the right to inspect the Note Register at
      all
      reasonable times and to obtain copies thereof, and the Indenture Trustee shall
      have the right to rely upon a certificate executed on behalf of the Note
      Registrar by a Responsible Officer thereof as to the names and addresses of
      the
      Holders of the Notes and the principal amounts and number of such Notes. Upon
      any resignation of any Note Registrar, the Issuer shall promptly appoint a
      successor or, if it elects not to make such an appointment, assume the duties
      of
      Note Registrar.

     

    If
      a
      Person other than the Securities Administrator is appointed by the Issuer as
      Note Registrar, the Issuer will give the Indenture Trustee and the Securities
      Administrator prompt written notice of the appointment of such Note Registrar
      and of the location, and any change in the location, of the Note Register,
      and
      the Indenture Trustee and the Securities Administrator shall have the right
      to
      inspect the Note Register at all reasonable times and to obtain copies thereof,
      and the Indenture Trustee and the Securities Administrator shall have the right
      to rely upon a certificate executed on behalf of the Note Registrar by an
      Executive Officer thereof as to the names and addresses of the Holders of the
      Notes and the principal amounts or notional amounts, as applicable, and number
      of such Notes.

     

    
      
        
        

      

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

     

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

     

    All
      Notes
      issued upon any registration of transfer or exchange of Notes shall be the
      valid
      obligations of the Issuer, evidencing the same debt, and entitled to the same
      benefits under this Indenture, as the Notes surrendered upon such registration
      of transfer or exchange.

     

    Every
      Note presented or surrendered for registration of transfer or exchange shall
      be
      duly endorsed by, or be accompanied by a written instrument of transfer in
      form
      satisfactory to the Note Registrar duly executed by, the Holder thereof or
      such
      Holder’s attorney duly authorized in writing, with such signature guaranteed by
      an “eligible guarantor institution” meeting the requirements of the Note
      Registrar, which requirements include membership or participation in the
      Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature
      guarantee program” as may be determined by the Note Registrar in addition to, or
      in substitution for, STAMP.

     

    No
      service charge shall be made to a Holder for any registration of transfer or
      exchange of Notes, but the Issuer or the Note Registrar may require payment
      of a
      sum sufficient to cover any tax or other governmental charge that may be imposed
      in connection with any registration of transfer or exchange of Notes, other
      than
      exchanges pursuant to Section 2.05 or 9.06 not involving any
      transfer.

     

    The
      preceding provisions of this Section 2.04 notwithstanding, the Issuer shall
      not
      be required to make and the Note Registrar need not register transfers or
      exchanges of Notes for a period of fifteen (15) days preceding the Payment
      Date
      for any payment with respect to such Note.

     

    Section
      2.05. Mutilated,
      Destroyed, Lost or Stolen Notes.
      If (i)
      any mutilated Note is surrendered to the Note Registrar, or the Note Registrar
      receives evidence to its satisfaction of the destruction, loss or theft of
      any
      Note, and (ii) there is delivered to the Note Registrar such security or
      indemnity as may be required by it to hold the Issuer, the Indenture Trustee
      and
      the Note Registrar harmless, then, in the absence of actual notice to the
      Issuer, the Note Registrar or the Indenture Trustee that such Note has been
      acquired by a bona fide purchaser, and upon certification provided by the Holder
      of such Note that the requirements of Section 8-405 of the Uniform Commercial
      Code are met, the Issuer shall execute, and upon its request the Securities
      Administrator or the Note Registrar on its behalf shall authenticate and
      deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
      or
      stolen Note, a replacement Note of the same Class; provided,
      however,
      that if
      any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
      become or within seven days shall be due and payable, or shall have been called
      pursuant to exercise of the Clean-up Call Right or the Optional Notes Purchase
      Right, instead of issuing a replacement Note, the Issuer may pay such destroyed,
      lost or stolen Note when so due or payable or upon the Redemption Date without
      surrender thereof. If, after the delivery of such replacement Note or payment
      of
      a destroyed, lost or stolen Note pursuant to the proviso to the preceding
      sentence, a bona fide purchaser of the original Note in lieu of which such
      replacement Note was issued presents for payment such original Note, the Issuer
      and the Indenture Trustee or the Note Registrar on its behalf shall be entitled
      to recover such replacement Note (or such payment) from the Person to whom
      it
      was delivered or any Person taking such replacement Note from such Person to
      whom such replacement Note was delivered or any assignee of such Person, except
      a bona fide purchaser, and shall be entitled to recover upon the security or
      indemnity provided therefor to the extent of any loss, damage, cost or expense
      incurred by the Issuer, the Indenture Trustee or the Note Registrar in
      connection therewith.

     

    
      
        
        

      

      
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    Upon
      the
      issuance of any replacement Note under this Section, the Issuer, the Indenture
      Trustee or the Note Registrar may require the payment by the Holder of such
      Note
      of a sum sufficient to cover any tax or other governmental charge that may
      be
      imposed in relation thereto and any other reasonable expenses (including the
      fees and expenses of the Indenture Trustee or the Note Registrar) connected
      therewith.

     

    Every
      replacement Note issued pursuant to this Section in replacement of any
      mutilated, destroyed, lost or stolen Note shall constitute an original
      additional contractual obligation of the Issuer, whether or not the mutilated,
      destroyed, lost or stolen Note shall be at any time enforceable by anyone,
      and
      shall be entitled to all the benefits of this Indenture equally and
      proportionately with any and all other Notes duly issued hereunder.

     

    The
      provisions of this Section are exclusive and shall preclude (to the extent
      lawful) all other rights and remedies with respect to the replacement or payment
      of mutilated, destroyed, lost or stolen Notes.

     

    Section
      2.06. Persons
      Deemed Owners.
      Prior
      to due presentment for registration of transfer of any Note, the Issuer, the
      Securities Administrator, the Indenture Trustee, the Note Registrar and any
      agent of the Issuer, the Securities Administrator, the Indenture Trustee or
      the
      Note Registrar may treat the Person in whose name any Note is registered (as
      of
      the day of determination) as the owner of such Note for the purpose of receiving
      payments of principal of and interest, if any, on such Note and for all other
      purposes whatsoever, whether or not such Note be overdue, and none of the
      Issuer, the Securities Administrator, the Indenture Trustee or any agent of
      the
      Issuer, the Securities Administrator, the Indenture Trustee or the Note
      Registrar shall be affected by notice to the contrary.

     

    
      
        
        

      

      
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    Section
      2.07. Payment
      of Principal and Interest.
      b)
      Each
      Class of Notes shall accrue interest at its respective Note Interest Rate as
      set
      forth in the Sale and Servicing Agreement, and such interest shall be payable
      on
      each Payment Date, subject to Section 3.01. Interest shall be computed on
      each Class of Class [     ] Notes on the basis of a
      [360-day year and the actual number of days elapsed in each Accrual Period]
      and
      in the case of the Privately Offered Notes, based on a [360-day year consisting
      of twelve (12) thirty (30) day months]. With respect to each outstanding Class
      of Class [     ] Notes, the Securities Administrator
      shall determine one-month LIBOR or one-year LIBOR, as applicable, for each
      applicable Accrual Period on the LIBOR Determination Date, in accordance with
      the provisions of the Sale and Servicing Agreement. All interest payments on
      each Class of Notes shall be made pro
      rata to
      the
      Noteholders of such Class entitled thereto and as among Classes of Notes shall
      be paid in the order of priority as set forth in Section 5.01 of the Sale and
      Servicing Agreement. Any installment of interest or principal payable on any
      Note shall be paid on the applicable Payment Date to the Person in whose name
      such Note (or one or more Predecessor Notes) is registered on the Record Date
      by
      check mailed first-class postage prepaid to such Person’s address as it appears
      on the Note Register on such Record Date or, upon written request made to the
      Paying Agent at least five Business Days prior to the related Record Date,
      by
      the Holder of a Note by wire transfer in immediately available funds to an
      account specified in the request and at the expense of such Noteholder, except
      that, unless Definitive Notes have been issued pursuant to Section 2.12(b),
      with
      respect to Notes registered on the Record Date in the name of the nominee of
      the
      Clearing Agency (initially, such nominee to be Cede & Co.), payment will be
      made by wire transfer in immediately available funds to the account designated
      by such nominee, except for the final installment of principal payable with
      respect to such Note on a Payment Date or on the applicable Stated Maturity
      Date
      for such Class of Notes (and except for the Clean-Up Call Purchase Price for
      any
      Note called for redemption pursuant to Section 10.01(b) hereof or the Note
      Purchase Price for any Note being purchased pursuant to the Optional Notes
      Purchase Right pursuant to Section 10.01(a) hereof), which shall be payable
      as
      provided below. The funds represented by any such checks returned undelivered
      shall be held in accordance with Section 3.03.

     

    (b) The
      principal amount of the Notes (other than any Interest Only Notes) shall be
      payable in installments on each Payment Date as provided herein and in such
      Notes, subject to Section 3.01. Notwithstanding the foregoing, the entire unpaid
      principal amount of a Class of Notes, together with any unpaid Class
      [     ] Deferred Amounts, shall be due and payable, if
      not previously paid, on the earlier of (i) the applicable Stated Maturity Date,
      (ii) the Clean-Up Call Date, or (iii) the date on which an Event of Default
      shall have occurred and be continuing, if the Indenture Trustee or the Majority
      Priority Class Noteholders shall have declared the Notes to be immediately
      due
      and payable in the manner provided in Section 5.02 hereof. In addition, if
      the
      Optional Notes Purchase Right is exercised, and the Note Purchase Price in
      connection therewith is provided to the Securities Administrator in accordance
      with Section 10.01(a) hereof, the then Holder of the Notes shall also receive
      its proportionate share of the Note Purchase Price as provided in Section 10.03
      hereof.

     

    
      
        
        

      

      
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    (c) All
      principal payments on each Class of Notes (other than any Interest Only Notes)
      shall be made pro
      rata
      to the
      Noteholders of such Class entitled thereto based on their respective Note
      Principal Amounts immediately prior to that date and as among Classes of Notes
      shall be paid in the order of priority set forth in Section 5.01 of the Sale
      and
      Servicing Agreement. The Paying Agent shall notify the Person in whose name
      a
      Note is registered at the close of business on the Record Date preceding the
      Payment Date on which the Issuer expects that the final installment of principal
      of and interest on such Note will be paid. Such notice shall be mailed or
      transmitted by facsimile no later than five Business Days prior to such final
      Payment Date and shall specify that such final installment will be payable
      only
      upon presentation and surrender of such Note and shall specify the place where
      such Note may be presented and surrendered for payment of such installment.
      Notices in connection with redemptions of Notes or the exercise of the Optional
      Notes Purchase Right shall be mailed to Noteholders as provided in Section
      10.02.

     

    Section
      2.08. Cancellation.
      All
      Notes surrendered for payment, registration of transfer, exchange or redemption
      shall be delivered to the Note Registrar and shall be promptly cancelled by
      the
      Note Registrar. The Issuer may at any time deliver to the Note Registrar for
      cancellation any Notes previously authenticated and delivered hereunder which
      the Issuer may have acquired in any manner whatsoever, and all Notes so
      delivered shall be promptly cancelled by the Note Registrar. No Notes shall
      be
      authenticated in lieu of or in exchange for any Notes cancelled as provided
      in
      this Section, except as expressly permitted by this Indenture. All cancelled
      Notes may be held or disposed of by the Note Registrar in accordance with its
      standard retention or disposal policy as in effect at the time unless the Issuer
      shall direct by an Issuer Order that they be destroyed or returned to it;
provided,
      that
      such Issuer Order is timely and the Notes have not been previously disposed
      of
      by the Note Registrar.

     

    Section
      2.09. Release
      of Collateral.
      c)
      Except
      as otherwise provided in subsection (b) of this Section and the other Operative
      Agreements, the Indenture Trustee shall release property from the lien of this
      Indenture only upon receipt by it of an Issuer Request accompanied by (i) an
      Officer’s Certificate, (ii) an Opinion of Counsel, (iii) certificates in
      accordance with TIA Sections 314(c) and (d)(1), and (iv)(A) Independent
      Certificates in accordance with TIA Sections 314(c) and 314(d)(1) or (B) an
      Opinion of Counsel in lieu of such Independent Certificates to the effect that
      the TIA does not require any such Independent Certificates; provided
      that no
      such Independent Certificates or Opinion of Counsel in lieu of such Independent
      Certificates shall be necessary in respect of property released from the lien
      of
      the Indenture in accordance with the provisions hereof if such property consists
      solely of cash. 

     

    (b) A
      Servicer (or if such Servicer does not do so, the Master Servicer), on behalf
      of
      the Issuer, shall be entitled to obtain a release from the lien of this
      Indenture for any Mortgage Loan and the related Mortgaged Property at any time
      (i) after a payment by the Seller, the Initial Seller or TMI of the Purchase
      Price of the Mortgage Loan, (ii) after a Qualified Substitute Mortgage Loan
      is
      substituted for such Mortgage Loan and payment of the Substitution Amount,
      if
      any, has been received by the Issuer, (iii) after liquidation of the Mortgage
      Loan in accordance with the Sale and Servicing Agreement and the deposit of
      all
      Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds in the
      Collection Account, (iv) upon the termination of a Mortgage Loan (due to, among
      other causes, a prepayment in full of the Mortgage Loan and sale or other
      disposition of the related Mortgaged Property), or (v) as contemplated by
      Article III of the Sale and Servicing Agreement. The Indenture Trustee
      shall release any such Collateral upon a request to release executed by the
      Master Servicer or a Servicer, as applicable, and an Officer’s Certificate to
      the effect that the requirements for release have been met.

     

    
      
        
        

      

      
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    (c) The
      Indenture Trustee shall, if requested by a Servicer or the Master Servicer,
      temporarily release or cause the Custodian temporarily to release to such party
      the Mortgage File pursuant to the provisions of Section 3.07 of the Sale and
      Servicing Agreement.

     

    Section
      2.10. Book-Entry
      Notes.
      Each
      Class of Class [     ] Notes will be issued in the form
      of typewritten Notes or Global Securities representing Book-Entry Notes, to
      be
      delivered to the Note Registrar, as custodian for the initial Clearing Agency,
      by, or on behalf of, the Issuer. The Book-Entry Notes shall be registered
      initially on the Note Register in the name of Cede & Co., the nominee of the
      initial Clearing Agency, and no Owner of Book-Entry Notes thereof will receive
      a
      Definitive Note representing such Note Owner’s interest in such Book-Entry Note,
      except as provided in Section 2.12. Unless and until definitive, fully
      registered Notes (the “Definitive Notes”) have been issued to such Note Owners
      of Book-Entry Notes pursuant to Section 2.12:

     

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

     

    (ii) the
      Note
      Registrar, the Indenture Trustee and the Securities Administrator shall be
      entitled to deal with the Clearing Agency for all purposes of this Indenture
      (including the payment of principal of and interest on the Book-Entry Notes
      and
      the giving of instructions or directions hereunder) as the sole holder of the
      Book-Entry Notes, and shall have no obligation to the Owners of Book-Entry
      Notes;

     

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

     

    (iv) the
      rights of Owners of Book-Entry Notes shall be exercised only through the
      Clearing Agency and shall be limited to those established by law and agreements
      between such Owners of Book-Entry Notes and the Clearing Agency and/or the
      Clearing Agency Participants pursuant to the Note Depository Agreement. Unless
      and until Definitive Notes are issued to Holders of Class
      [     ] Notes, pursuant to Section 2.12, neither the
      Indenture Trustee nor the Note Registrar shall register any transfer of a
      beneficial interest in a Book-Entry Note; and the initial Clearing Agency will
      make book-entry transfers among the Clearing Agency Participants and receive
      and
      transmit payments of principal of and interest on the Book-Entry Notes to such
      Clearing Agency Participants; and

     

    (v) whenever
      this Indenture requires or permits actions to be taken based upon instructions
      or directions of Holders of Class [     ] Notes
      evidencing a specified percentage of the Outstanding Balance of the Notes (or
      the Priority Class Notes), the Clearing Agency shall be deemed to represent
      such
      percentage only to the extent that it has received instructions to such effect
      from Owners of Book-Entry Notes and/or Clearing Agency Participants owning
      or
      representing, respectively, such required percentage of the beneficial interest
      in the Book-Entry Notes and has delivered such instructions to the Note
      Registrar.

     

    
      
        
        

      

      
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    Section
      2.11. Notices
      to Clearing Agency.
      Whenever a notice or other communication to the Noteholders is required under
      this Indenture, unless and until Definitive Notes shall have been issued to
      such
      Owners of Book-Entry Notes pursuant to Section 2.12, the Note Registrar shall
      give all such notices and communications specified herein to be given to Owners
      of Book-Entry Notes to the Clearing Agency, and shall have no obligation to
      such
      Note Owners.

     

    Section
      2.12. Definitive
      Notes.
      (a) The
      Privately Offered Notes shall solely be issued in the form of Definitive Notes
      and shall be registered initially in the Note Register in the name of TMI,
      or
      its designee.

     

    (b) In
      addition, if (i) the Clearing Agency is no longer willing or able to properly
      discharge its responsibilities with respect to Class
      [     ] Notes held in the form of Book-Entry Notes and
      the Issuer is unable to locate a qualified successor or (ii) after the
      occurrence of an Event of Default hereunder, Note Owners of the Book-Entry
      Notes
      representing beneficial interests aggregating at least a majority of the
      Outstanding Balance of the Book-Entry Notes advise the Clearing Agency in
      writing that the continuation of a book-entry system through the Clearing Agency
      is no longer in the best interests of such Note Owners, then the Clearing Agency
      shall notify all Owners of Book-Entry Notes and the Note Registrar of the
      occurrence of any such event and of the availability of Definitive Notes to
      Owners of Book-Entry Notes requesting the same. Upon surrender to the Note
      Registrar of the typewritten Notes representing the Book-Entry Notes by the
      Clearing Agency, accompanied by registration instructions, the Issuer shall
      execute and the Securities Administrator shall authenticate the Definitive
      Notes
      in accordance with the instructions of the Clearing Agency. None of the Issuer,
      the Note Registrar, the Securities Administrator or the Indenture Trustee shall
      be liable for any delay in delivery of such instructions and may conclusively
      rely on, and shall be protected in relying on, such instructions. 

     

    (c) Upon
      the
      issuance of Definitive Notes, the Indenture Trustee, the Securities
      Administrator and the Note Registrar shall recognize the Holders of such
      Definitive Notes as Noteholders.

     

    Section
      2.13. Tax
      Treatment.
      The
      Issuer has entered into this Indenture, and the Notes will be issued, with
      the
      intention that, for federal, state and local income, single business and
      franchise tax purposes, the Notes (other than the Privately Offered Notes)
      will
      qualify as indebtedness of the Issuer secured by the Collateral. The Issuer,
      by
      entering into this Indenture, and each Noteholder (other than a Holder of a
      Privately Offered Note), by its acceptance of a Note (and each applicable Note
      Owner by its acceptance of an interest in the related Book-Entry Note), agree
      to
      treat the Notes for federal, state and local income, single business and
      franchise tax purposes as indebtedness of the Issuer.

     

    
      
        
        

      

      
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    Section
      2.14. Restrictions
      on Transfer and Retention of Beneficial Ownership Interest in the Privately
      Offered Notes.
      d)  TMI
      will be the initial Note Owner of a 100% Percentage Interest in each of the
      Privately Offered Notes and, pursuant to the Trust Agreement, the initial
“Certificateholder” (as such term is defined in the Trust Agreement) of a 100%
      Percentage Interest in the Ownership Certificates. TMI (or any other
      Certificateholder or Holder of the Privately Offered Notes) is hereby prohibited
      from transferring and agrees not to transfer any beneficial ownership interest
      in any Privately Offered Note or the Ownership Certificates, except as provided
      in subsection (b) below.

     

    (b) Any
      sale,
      transfer, pledge or other disposition of any beneficial ownership interest
      in
      (i) any Privately Offered Note may only be effectuated in conjunction with
      a simultaneous sale, transfer, pledge or other disposition of an equal
      Percentage Interest in (A) all other classes of Privately Offered Notes
      then Outstanding and (B) the Ownership Certificates, and (ii) the
      Ownership Certificates may only be effectuated in conjunction with a
      simultaneous sale, transfer, pledge or other disposition of an equal Percentage
      Interest in all classes of the Privately Offered Notes then Outstanding, unless
      in each case the prospective transferee of such beneficial ownership interest
      furnishes to the Note Registrar an Opinion of Counsel concluding that such
      sale,
      transfer, pledge or other disposition will not cause the Trust to become subject
      to federal income tax as a corporation. No sale, transfer, pledge or other
      disposition of any beneficial ownership interest in any Privately Offered Note
      shall be in respect of less than a 10% Percentage Interest in such Privately
      Offered Note. TMI (or such other Holder of the Ownership Certificates) is hereby
      required to notify the Indenture Trustee and the Note Registrar of any sale,
      transfer, pledge or other disposition or retention of the Ownership Certificates
      or any Privately Offered Notes in contravention of these
      restrictions.

     

    (c) In
      connection with any sale, transfer, pledge or other disposition of all or a
      portion of the Privately Offered Notes pursuant to subsection (b) above, the
      transferee shall certify to the Note Registrar, the Indenture Trustee and the
      Securities Administrator in an investment letter substantially in the form
      attached hereto as Exhibit B-1 or Exhibit B-2, as applicable, that such transfer
      has been made in accordance with subsection (b) above and shall agree to
      indemnify the Issuer, the Indenture Trustee, the Securities Administrator,
      the
      Note Registrar and the Depositor against any liability that may result if the
      transfer was made in contravention of subsection (b) above.

     

    (d) If
      any
      purported transferee shall become a Holder in violation of the provisions of
      this Section 2.14, then upon receipt of written notice to the Note Registrar
      and
      the Paying Agent that the registration of transfer of the Privately Offered
      Notes to such Holder was not in fact permitted by this Section, then the
      transfer to that Holder shall be void ab
      initio
      and the
      last preceding Holder that was and that continues to be an eligible Holder
      in
      accordance with the provisions of this Section shall be restored to all rights
      as Holder thereof retroactive to the date of such registration of transfer
      of
      such Privately Offered Notes. The Note Registrar shall be under no liability
      to
      any Person for any registration of transfer of any Privately Offered Note that
      is in fact not permitted by this Section, for making any payment due on any
      such
      Privately Offered Note to the Holder thereof or for taking any other action
      with
      respect to such Holder under the provisions of this Indenture so long as the
      transfer relates to a simultaneous transfer of an equal Percentage Interest
      in
      all Outstanding Classes of Privately Offered Notes and Ownership Certificates
      or
      the Note Registrar receives the Opinion of Counsel described in subsection
      (b)
      above.

     

    
      
        
        

      

      
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    ARTICLE
      III

     

    COVENANTS

     

    Section
      3.01. Payment
      of Principal and Interest.
      The
      Issuer will duly and punctually pay (or will cause to be duly and punctually
      paid) the principal of and interest on, and any other amounts due in respect
      of,
      the Notes in accordance with the terms of the Notes, the Sale and Servicing
      Agreement and this Indenture. Without limiting the foregoing, unless the Notes
      have been declared due and payable pursuant to Section 5.02 and monies collected
      by the Securities Administrator are being applied in accordance with Section
      5.04(b), subject to and in accordance with Section 8.02(c), the Issuer will
      cause to be distributed all amounts on deposit in the Note Payment Account
      on a
      Payment Date and deposited therein pursuant to the Sale and Servicing Agreement
      for the benefit of the Notes, to the Noteholders. Amounts properly withheld
      under the Code by any Person from a payment to any Noteholder of interest and/or
      principal shall be considered as having been paid by the Issuer to such
      Noteholder for all purposes of this Indenture.

     

    The
      Notes
      shall be non-recourse obligations of the Issuer and shall be limited in right
      of
      payment to amounts available from the Collateral as provided in this Indenture.
      The Issuer shall not otherwise be liable for payments of the Notes, and none
      of
      the owners, agents, officers, directors, employees, trustees or successors
      or
      assigns of the Issuer shall be personally liable for any amounts payable, or
      performance due, under the Notes or this Indenture. If any other provision
      of
      this Indenture shall be deemed to conflict with the provisions of this Section
      3.01, the provisions of this Section 3.01 shall control.

     

    Section
      3.02. Maintenance
      of Office or Agency.
      The
      Note Registrar on behalf of the Issuer will maintain an office or agency where
      Notes may be surrendered for registration of transfer or exchange, and where
      notices and demands to or upon the Issuer in respect of the Notes and this
      Indenture may be served. As of the Closing Date, the Note Registrar designates
      the following office for such purposes:
      [     ].

     

    Section
      3.03. Money
      for Payments to be Held in Trust.
      As
      provided in Section 8.02, all payments of amounts due and payable with respect
      to any Notes that are to be made from amounts withdrawn from the Note Payment
      Account pursuant to Section 5.01 of the Sale and Servicing Agreement shall
      be
      made on behalf of the Issuer by the Securities Administrator or by another
      Paying Agent, and no amounts so withdrawn from the such account for payments
      of
      Notes shall be paid over to the Issuer except as provided in this
      Section.

     

    On
      or
      before the Business Day preceding each Payment Date, the Issuer shall deposit
      or
      cause to be deposited in the Note Payment Account an aggregate sum sufficient
      to
      pay the amounts then becoming due under the Notes, such sum to be held in trust
      for the benefit of the Persons entitled thereto, and (unless the Paying Agent
      is
      the Securities Administrator) shall promptly notify the Securities Administrator
      of its action or failure so to act.

     

    
      
        
        

      

      
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    The
      Securities Administrator is hereby appointed the initial Paying Agent. Any
      successor Paying Agent shall be appointed by Issuer Order with written notice
      thereof to the Indenture Trustee and the Securities Administrator. Any successor
      Paying Agent appointed by the Issuer shall be a Person that would be eligible
      to
      be the indenture trustee hereunder as provided in Section 6.11. The Issuer
      shall
      not appoint any Paying Agent (other than the Indenture Trustee or the Securities
      Administrator) that is not, at the time of such appointment, a Depository
      Institution. The Issuer shall give prior written notice to the Indenture Trustee
      of the appointment of new or additional paying agents for the Notes, the
      location and any change in the location of any such office or
      agency.

     

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

     

    (i) hold
      all
      sums held by it for the payment of amounts due with respect to the Notes in
      trust for the benefit of the Persons entitled thereto until such sums shall
      be
      paid to such Persons or otherwise disposed of as herein provided and pay such
      sums to such Persons as herein provided and as is provided in the Sale and
      Servicing Agreement;

     

    (ii) give
      the
      Indenture Trustee and Securities Administrator notice of any default by the
      Issuer of which the Paying Agent has actual knowledge in the making of any
      payment required to be made with respect to the Notes;

     

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

     

    (iv) immediately
      resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums
      held by it in trust for the payment of Notes if at any time it ceases to meet
      the standards required to be met by a Paying Agent at the time of its
      appointment; and

     

    (v) comply
      with all requirements of the Code with respect to the withholding from any
      payments made by it on any Notes of any applicable withholding taxes imposed
      thereon and with respect to any applicable reporting requirements in connection
      therewith; provided,
      however,
      that
      with respect to reporting requirements applicable to original issue discount,
      the accrual of market discount or the amortization of premium on the Notes,
      the
      Securities Administrator shall have first provided the calculations pertaining
      thereto and the amount of any resulting withholding taxes to the Paying
      Agent.

     

    The
      Issuer may at any time, for the purpose of obtaining the satisfaction and
      discharge of this Indenture or for any other purpose, by Issuer Order direct
      any
      Paying Agent to pay to the Securities Administrator all sums held in trust
      by
      such Paying Agent, such sums to be held by the Securities Administrator upon
      the
      same trusts as those upon which the sums were held by such Paying Agent; and
      upon such payment by any Paying Agent to the Securities Administrator, such
      Paying Agent shall be released from all further liability with respect to such
      money.

     

    
      
        
        

      

      
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    Subject
      to applicable laws with respect to escheat of funds, any money held by the
      Securities Administrator or any Paying Agent in trust for the payment of any
      amount due with respect to any Note and remaining unclaimed for two years after
      such amount has become due and payable shall be discharged from such trust
      and
      be paid to the Issuer on Issuer Request; and the Holder of such Note shall
      thereafter, as an unsecured general creditor, look only to the Issuer for
      payment thereof (but only to the extent of the amounts so paid to the Issuer),
      and all liability of the Indenture Trustee, the Securities Administrator or
      such
      Paying Agent with respect to such trust money shall thereupon cease;
provided,
      however,
      that
      the Paying Agent, before being required to make any such repayment, shall at
      the
      expense and direction of the Issuer cause to be published once, in a newspaper
      published in the English language, customarily published on each Business Day
      and of general circulation in The City of New York (including, but not limited
      to, The
      Bond Buyer),
      notice
      that such money remains unclaimed and that, after a date specified therein,
      which shall not be less than 30 days from the date of such publication, any
      unclaimed balance of such money then remaining will be repaid to the Issuer.
      The
      Indenture Trustee, the Securities Administrator or Paying Agent shall also
      adopt
      and employ, at the expense and direction of the Issuer, any other reasonable
      means of notification of such repayment (including, but not limited to, mailing
      notice of such repayment to Holders whose Notes have been called but have not
      been surrendered for redemption or whose right to or interest in moneys due
      and
      payable but not claimed is determinable from the records of the Indenture
      Trustee, the Securities Administrator or of any Paying Agent, at the last
      address of record for each such Holder).

     

    Section
      3.04. Existence.
      (a) The
      Issuer will keep in full effect its existence, rights and franchises as a
      statutory trust under the laws of the State of Delaware (unless it becomes,
      or
      any successor Issuer hereunder is or becomes, organized under the laws of any
      other State or of the United States of America, in which case the Issuer will
      keep in full effect its existence, rights and franchises under the laws of
      such
      other jurisdiction) and will obtain and preserve its qualification to do
      business in each jurisdiction in which such qualification is or shall be
      necessary to protect the validity and enforceability of this Indenture, the
      Notes, the Collateral and each other instrument or agreement included in the
      Collateral.

     

    (b) Any
      successor to the Owner Trustee appointed pursuant to Section 9.03 of the Trust
      Agreement shall be the successor Owner Trustee under this Indenture without
      the
      execution or filing of any paper, instrument or further act to be done on the
      part of the parties hereto.

     

    (c) Upon
      any
      consolidation or merger of or other succession to the Owner Trustee, the Person
      succeeding to the Owner Trustee under the Trust Agreement may exercise every
      right and power of the Owner Trustee under this Indenture with the same effect
      as if such Person had been named as the Owner Trustee herein.

     

    Section
      3.05. Protection
      of Collateral.
      The
      Issuer will from time to time execute, deliver and file all such supplements
      and
      amendments hereto and all such financing statements, continuation statements,
      instruments of further assurance and other instruments solely at the expense
      of
      the Issuer, and will take such other action necessary or advisable
      to:

     

    
      
        
        

      

      
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    (i) provide
      further assurances with respect to the grant of all or any portion of the
      Collateral;

     

    (ii) maintain
      or preserve the lien and security interest (and the priority thereof) of this
      Indenture or carry out more effectively the purposes hereof;

     

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

     

    (iv) enforce
      any rights with respect to the Collateral; or

     

    (v) preserve
      and defend title to the Collateral and the rights of the Indenture Trustee
      and
      the Noteholders in such Collateral against the claims of all Persons and
      parties.

     

    The
      Issuer hereby designates the Securities Administrator, its agent and
      attorney-in-fact to execute any financing statement, continuation statement
      or
      other instrument provided to the Securities Administrator by the Depositor
      and
      required to be executed pursuant to this Section 3.05.

     

    Section
      3.06. Opinions
      as to Collateral.
      On the
      Closing Date, the Issuer shall furnish to the Indenture Trustee an Opinion
      of
      Counsel to the effect that either, in the opinion of such counsel, such action
      has been taken with respect to the recording and filing of this Indenture,
      any
      indentures supplemental hereto, and any other requisite documents, and with
      respect to the execution and filing of any financing statements and continuation
      statements, as are necessary to make effective the lien and security interest
      of
      this Indenture, or stating that, in the opinion of such counsel, no such action
      is necessary to make such lien and security interest effective. In addition
      to
      any other requirements under the Trust Indenture Act, the Issuer shall furnish
      to the Securities Administrator, at least once every two years and six months
      after the Closing Date, an Opinion of Counsel to the effect that either, in
      the
      opinion of such counsel, such action has been taken with respect to the
      recording, filing, refilling, re-recording and refilling of this Indenture
      as is
      necessary to maintain the lien of this Indenture, or stating that, in the
      opinion of such counsel, no such action is necessary to maintain such
      lien.

     

    Section
      3.07. Performance
      of Obligations.
      (a) The
      Issuer will not take any action and will use its best efforts not to permit
      any
      action to be taken by others that would release any Person from any of such
      Person’s material covenants or obligations under any instrument or agreement
      included in the Collateral or that would result in the amendment, hypothecation,
      subordination, termination or discharge of, or impair the validity or
      effectiveness of, any such instrument or agreement, except as expressly provided
      in this Indenture, the Sale and Servicing Agreement or such other instrument
      or
      agreement.

     

    
      
        
        

      

      
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    (b) The
      Issuer may contract with or otherwise obtain the assistance of other Persons
      (including, without limitation, the Administrator or the Depositor under the
      Administration Agreement) to assist it in performing its duties under this
      Indenture, and any performance of such duties by a Person identified to the
      Securities Administrator in an Officer’s Certificate of the Issuer shall be
      deemed to be action taken by the Issuer. Initially, the Issuer has contracted
      with the Securities Administrator and the Depositor pursuant to the
      Administration Agreement to assist the Issuer in performing its duties under
      this Indenture.

     

    (c) The
      Issuer will punctually perform and observe all of its obligations and agreements
      contained in this Indenture, the other Operative Agreements to which it is
      a
      party and in the instruments and agreements included in the Collateral,
      including but not limited to filing or causing to be filed all financing
      statements and continuation statements required to be filed by the terms of
      this
      Indenture and the Sale and Servicing Agreement in accordance with and within
      the
      time periods provided for herein and therein and recording or causing to be
      recorded all Mortgages, Assignments of Mortgage, all intervening Assignments
      of
      Mortgage and all assumption and modification agreements required to be recorded
      by the terms of the Sale and Servicing Agreement, in accordance with and within
      the time periods provided for in this Indenture and/or the Sale and Servicing
      Agreement, as applicable. Except as otherwise expressly provided therein, the
      Issuer shall not waive, amend, modify, supplement or terminate any Operative
      Agreement or any provision thereof without the consent of the Indenture Trustee
      and the Holders of a majority of the Outstanding Balance of the
      Notes.

     

    (d) If
      a
      responsible officer of the Owner Trustee shall have written notice or actual
      knowledge of the occurrence of an Event of Default under the Sale and Servicing
      Agreement, the Issuer shall promptly notify the Indenture Trustee and the
      Securities Administrator and each Rating Agency thereof, and shall specify
      in
      such notice the actions, if any, the Issuer is taking with respect to such
      default.

     

    (e) As
      promptly as possible after the giving of notice of termination to the Master
      Servicer of the Master Servicer’s rights and powers pursuant to Section 7.01 of
      the Sale and Servicing Agreement, the Indenture Trustee shall proceed in
      accordance with Sections 7.01 and 7.02 of the Sale and Servicing Agreement
      

     

    (f) Without
      derogating from the absolute nature of the assignment granted to the Indenture
      Trustee under this Indenture or the rights of the Indenture Trustee hereunder,
      the Issuer agrees (i) that it will not, without the prior written consent of
      the
      Indenture Trustee and the Securities Administrator or the Holders of at least
      a
      majority in Outstanding Balance or Percentage Interest of the Noteholders
      affected thereby, amend, modify, waive, supplement, terminate or surrender,
      or
      agree to any amendment, modification, supplement, termination, waiver or
      surrender of, the terms of any Collateral or the Operative Agreements (except
      to
      the extent otherwise provided in any such Operative Agreement), or waive timely
      performance or observance by any of the Securities Administrator, the Master
      Servicer or the Depositor of its respective duties under the Sale and Servicing
      Agreement; and (ii) that any such amendment shall not (A) increase or reduce
      in
      any manner the amount of, or accelerate or delay the timing of, payments that
      are required to be made for the benefit of the Noteholders or (B) reduce the
      aforesaid percentage of the Notes that is required to consent to any such
      amendment, without the consent of the Holders of all the Outstanding Notes
      affected thereby. If any such amendment, modification, supplement or waiver
      shall be so consented to by the Indenture Trustee or such Holders, the Issuer
      agrees, promptly following a request by the Indenture Trustee to do so, to
      execute and deliver, in its own name and at its own expense, such agreements,
      instruments, consents and other documents as the Securities Administrator may
      deem necessary or appropriate in the circumstances.

     

    
      
        
        

      

      
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    Section
      3.08. Negative
      Covenants.
      So long
      as any Notes are Outstanding, the Issuer shall not:

     

    (i) except
      as
      expressly permitted by this Indenture, the Trust Agreement, the Mortgage Loan
      Purchase Agreements or the Sale and Servicing Agreement, sell, transfer,
      exchange or otherwise dispose of any of the properties or assets of the Issuer,
      including those included in the Collateral, unless directed to do so by the
      Securities Administrator;

     

    (ii) claim
      any
      credit on, or make any deduction from the principal, interest or other amounts
      payable in respect of, the Notes (other than amounts properly withheld from
      such
      payments under the Code) or assert any claim against any present or former
      Noteholder by reason of the payment of the taxes levied or assessed upon any
      part of the Collateral;

     

    (iii) engage
      in
      any business or activity other than as permitted by the Trust Agreement or
      the
      Sale and Servicing Agreement or other than in connection with, or relating
      to,
      the issuance of Notes pursuant to this Indenture, or take any action under
      Section 5.06 of the Trust Agreement that requires prior written consent of
      the
      Noteholders without such consent;

     

    (iv) (A)
      permit the validity or effectiveness of this Indenture to be impaired, or permit
      the lien of this Indenture to be amended, hypothecated, subordinated, terminated
      or discharged, or permit any Person to be released from any covenants or
      obligations with respect to the Notes under this Indenture except as may be
      expressly permitted hereby, (B) permit any lien, charge, excise, claim, security
      interest, mortgage or other encumbrance (other than the lien of this Indenture)
      to be created on or extend to or otherwise arise upon or burden the Collateral
      or any part thereof or any interest therein or the proceeds thereof (other
      than
      tax liens, mechanics’ liens and other liens that arise by operation of law, in
      each case with respect to any Collateral and arising solely as a result of
      an
      action or omission of a borrower or as otherwise permitted in the Sale and
      Servicing Agreement) or (C) permit the lien of this Indenture not to constitute
      a valid first priority (other than with respect to any such tax, mechanics’ or
      other lien or as otherwise permitted in the Sale and Servicing Agreement)
      security interest in the Collateral;

     

    (v) remove
      the Securities Administrator without cause unless the Rating Agency Condition
      shall have been satisfied in connection with such removal; or

     

    (vi) take
      any
      action or fail to take any action that would result in an imposition of tax
      on
      the Issuer.

     

    Section
      3.09. Annual
      Statement as to Compliance.
      So long
      as the Notes are outstanding, the Issuer will deliver to the Securities
      Administrator, within 120 days after the end of each fiscal year of the Issuer
      (commencing with the fiscal year [     ]), an Officer’s
      Certificate stating, as to the Authorized Officer signing such Officer’s
      Certificate, that:

     

    
      
        
        

      

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

     

    (ii) to
      the
      best of such Authorized Officer’s knowledge, based on such review, the Issuer
      has complied with all conditions and covenants under this Indenture throughout
      such year or, if there has been a default in its compliance with any such
      condition or covenant, specifying each such default known to such Authorized
      Officer and the nature and status thereof.

     

    Section
      3.10. Treatment
      of Notes as Debt for Tax Purposes.
      The
      Issuer shall, and shall cause the Securities Administrator and the Indenture
      Trustee to, treat the Notes (other than the Privately Offered Notes) as
      indebtedness for all federal, state and local tax purposes (except that any
      Class [     ] Note held by a person that, for federal
      income tax purposes, owns or is treated as owning a 100% Percentage Interest
      of
      the Ownership Certificates shall not be treated as outstanding indebtedness
      for
      such purposes).

     

    Section
      3.11. No
      Other Business.
      The
      Issuer shall not engage in any business other than financing, purchasing,
      owning, selling and managing the Collateral in the manner contemplated by this
      Indenture and the other Operative Agreements and activities incidental
      thereto.

     

    Section
      3.12. No
      Borrowing.
      The
      Issuer shall not issue, incur, assume, guarantee or otherwise become liable,
      directly or indirectly, for any indebtedness other than the Notes.

     

    Section
      3.13. Guarantees,
      Loans, Advances and Other Liabilities.
      Except
      as contemplated by the Sale and Servicing Agreement or this Indenture, the
      Issuer shall not make any loan or advance or credit to, or guarantee (directly
      or indirectly or by an instrument having the effect of assuring another’s
      payment or performance on any obligation or capability of so doing or
      otherwise), endorse or otherwise become contingently liable, directly or
      indirectly, in connection with the obligations, stocks or dividends of, or
      own,
      purchase, repurchase or acquire (or agree contingently to do so) any stock,
      obligations, assets or securities of, or any other interest in, or make any
      capital contribution to, any other Person.

     

    Section
      3.14. Capital
      Expenditures.
      The
      Issuer shall not make any expenditure (by long-term or operating lease or
      otherwise) for capital assets (either realty or personalty).

     

    Section
      3.15. Removal
      of Securities Administrator.
      So long
      as any Notes are Outstanding, the Issuer shall not remove the Securities
      Administrator without cause.

     

    
      
        
        

      

      
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    Section
      3.16. Restricted
      Payments.
      The
      Issuer shall not, directly or indirectly, (i) pay any dividend or make any
      distribution (by reduction of capital or otherwise), whether in cash, property,
      securities or a combination thereof, to the Owner Trustee or any owner of a
      beneficial interest in the Issuer or otherwise with respect to any ownership
      or
      equity interest or security in or of the Issuer, (ii) redeem, purchase, retire
      or otherwise acquire for value any such ownership or equity interest or security
      or (iii) set aside or otherwise segregate any amounts for any such purpose;
      provided, however,
      the
      Issuer may make, or cause to be made, payments and distributions as contemplated
      by, and to the extent funds are available for such purpose under, this
      Indenture, the Sale and Servicing Agreement, the Trust Agreement or any other
      Operative Agreement. The Issuer will not, directly or indirectly, make payments
      to or cause to be made payments to or distributions from the Trust Accounts
      except in accordance with this Indenture and the other Operative
      Agreements.

     

    Section
      3.17. Notice
      of Events of Default.
      The
      Issuer shall promptly, and in no event more than three Business Days following
      such event, give the Securities Administrator, the Indenture Trustee and each
      Rating Agency written notice of each Event of Default hereunder, and each
      default on the part of the Securities Administrator, the Master Servicer, a
      Servicer or the Depositor of its obligations under the Sale and Servicing
      Agreement, to the extent a responsible officer of the Owner Trustee shall have
      written notice or actual knowledge thereof.

     

    Section
      3.18. Further
      Instruments and Acts.
      Upon
      request of the Indenture Trustee or the Securities Administrator, the Issuer
      will execute and deliver such further instruments and do such further acts
      as
      may be reasonably necessary or proper to carry out more effectively the purpose
      of this Indenture.

     

    Section
      3.19. Covenants
      of the Issuer.
      All
      covenants of the Issuer in this Indenture are covenants of the Issuer and are
      not covenants of the Owner Trustee in its individual capacity. The Owner Trustee
      is, and any successor Owner Trustee under the Trust Agreement will be, executing
      this Indenture on behalf of the Issuer solely as Owner Trustee under the Trust
      Agreement and not in its respective individual capacity, and in no case
      whatsoever shall the Owner Trustee or any such successor Owner Trustee be
      personally liable on, or for any loss in respect of, any of the statements,
      representations, warranties or obligations of the Issuer hereunder, as to all
      of
      which the parties hereto agree to look solely to the property of the
      Issuer.

     

    Section
      3.20. Representations
      and Warranties of the Issuer.
      (a)
      With respect to the Collateral, the Issuer represents and warrants
      that:

     

    (i) This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable Uniform Commercial Code (the “UCC”)) in the Collateral in favor of
      the Indenture Trustee, which security interest is prior to all other liens,
      and
      is enforceable as such against creditors of and purchasers from the
      Issuer;

     

    (ii) The
      Mortgage Notes constitute “instruments” within the meaning of the applicable
      UCC;

     

    
      
        
        

      

      
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    (iii) Immediately
      prior to the pledge hereunder, the Issuer owns and has good title to the
      Collateral free and clear of any lien, claim or encumbrance of any
      Person;

     

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

     

    (v) All
      original executed copies of each Mortgage Note (or a lost note affidavit, where
      applicable) have been or will be delivered to the Indenture Trustee (or its
      custodian), as set forth in the Sale and Servicing Agreement;

     

    (vi) The
      Issuer has received a written acknowledgement from the Indenture Trustee (or
      its
      custodian) that it is holding the Mortgage Loans solely on behalf and for the
      benefit of the Indenture Trustee;

     

    (vii) the
      Issuer has caused or will have caused, within ten days from the Closing Date,
      the filing of all appropriate financing statements in the proper filing office
      in the appropriate jurisdictions under applicable law in order to perfect the
      security interest in the Collateral granted to the Indenture Trustee
      hereunder;

     

    (viii) Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, the Issuer has not pledged, assigned, sold, granted a security
      interest in, or otherwise conveyed any of the Collateral. The Issuer has not
      authorized the filing of and is not aware of any financing statements against
      the Issuer that include a description of the collateral covering the Collateral
      other than a financing statement relating to the security interest granted
      to
      the Indenture Trustee hereunder or that has been terminated. The Issuer is
      not
      aware of any judgment or tax lien filings against the Issuer; and

     

    (ix) None
      of
      the Mortgage Notes has any marks or notations indicating that they have been
      pledged, assigned or otherwise conveyed to any Person other than the Indenture
      Trustee.

     

    (b) The
      representations and warranties set forth in this Section 3.20 shall survive
      the
      Closing Date and shall not be waived.

     

    ARTICLE
      IV

     

    SATISFACTION
      AND DISCHARGE

     

    Section
      4.01. Satisfaction
      and Discharge of Indenture.
      This
      Indenture shall cease to be of further effect with respect to the Notes, except
      as to (i) rights of registration of transfer and exchange, (ii) substitution
      of
      mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
      receive payments of principal thereof and interest thereon, (iv) the rights,
      obligations and immunities of the Indenture Trustee hereunder (including the
      rights of the Indenture Trustee under Section 6.07 and the obligations of the
      Paying Agent under Section 3.03 and of the Securities Administrator under
      Section 4.02) and (v) the rights of Noteholders as beneficiaries hereof with
      respect to the property so deposited with the Indenture Trustee or the
      Securities Administrator payable to all or any of them, and the Indenture
      Trustee, on demand of and at the expense of the Issuer, shall execute proper
      instruments acknowledging satisfaction and discharge of this Indenture with
      respect to the Notes, when either (a) the Sale and Servicing Agreement has
      been
      terminated pursuant to Article X thereof or (b)

     

    
      
        
        

      

      
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    (I) either

     

    (A) all
      Notes
      theretofore authenticated and delivered (other than (i) Notes that have been
      destroyed, lost or stolen and that have been replaced or paid as provided in
      Section 2.05 and (ii) Notes for whose payment money has theretofore been
      deposited in trust or segregated and held in trust by the Issuer and thereafter
      repaid to the Issuer or discharged from such trust, as provided in Section
      3.03)
      have been delivered to the Securities Administrator for cancellation;
      or

     

    (B) all
      Notes
      not theretofore delivered to the Securities Administrator for
      cancellation

     

    (i) have
      become due and payable,

     

    (ii) will
      become due and payable at the applicable Maturity Date within one year,
      or

     

    (iii) are
      to be
      called for redemption within one year under arrangements satisfactory to the
      Securities Administrator for the giving of notice of redemption by the
      Securities Administrator in the name, and at the expense, of the
      Issuer,

     

    and
      the
      Issuer, in the case of (i), (ii) or (iii) above, has irrevocably deposited
      or
      caused to be irrevocably deposited with the Securities Administrator cash or
      direct obligations of or obligations guaranteed by the United States of America
      (which will mature prior to the date such amounts are payable), in trust for
      such purpose, in an amount sufficient to pay and discharge the entire
      indebtedness on such Notes not theretofore delivered to the Securities
      Administrator or the Note Registrar for cancellation when due to the Maturity
      Date or Clean-up Call Date (if the Notes are called for redemption pursuant
      to
      Section 10.01 hereof), as the case may be;

    

    (II) the
      Issuer has paid or caused to be paid all other sums payable hereunder by the
      Issuer;

     

    (III) the
      Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an
      Opinion of Counsel (at the Issuer’s expense) and (if required by the TIA as
      confirmed in the Officer’s Certificate of the Issuer) an Independent Certificate
      from a firm of certified public accountants, each meeting the applicable
      requirements of Section 11.01 hereof and, subject to Section 11.02 hereof,
      each
      stating that all conditions precedent herein provided for relating to the
      satisfaction and discharge of this Indenture with respect to the Notes have
      been
      complied with; and

     

    (IV) the
      Issuer has delivered to each Rating Agency notice of such satisfaction and
      discharge.

     

    
      
        
        

      

      
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    The
      Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
      and deliver proper instruments acknowledging satisfaction and discharge of
      this
      Indenture with respect to the Notes, and shall pay, or assign or transfer and
      deliver, to or at the direction of the Issuer, all Collateral held by it after
      satisfaction of the conditions specified in clauses (I)(B), (II) and (III)
      above.

     

    Section
      4.02. Application
      of Trust Money.
      All
      moneys deposited with the Securities Administrator pursuant to Sections 3.03
      and
      4.01 hereof shall be held in trust and applied by it, in accordance with the
      provisions of the Notes and this Indenture, to the payment, either directly
      or
      through any Paying Agent, as the Securities Administrator may determine, to
      the
      Holders of the particular Notes for the payment or redemption of which such
      moneys have been deposited with the Securities Administrator, of all sums due
      and to become due thereon for principal and interest; but such moneys need
      not
      be segregated from other funds except to the extent required herein or in the
      Sale and Servicing Agreement or required by law.

     

    Section
      4.03. Repayment
      of Moneys Held by Paying Agent.
      In
      connection with the satisfaction and discharge of this Indenture with respect
      to
      the Notes, all moneys then held by any Paying Agent other than the Securities
      Administrator under the provisions of this Indenture with respect to such Notes
      shall, upon demand of the Issuer, be paid to the Securities Administrator to
      be
      held and applied according to Section 3.03 and thereupon such Paying Agent
      shall
      be released from all further liability with respect to such moneys.

     

    Section
      4.04. Trust
      Money Received by Indenture Trustee.
      If the
      Indenture Trustee receives any moneys in respect of the Collateral (other than
      with respect to any amounts in respect of any payments or reimbursements of
      fees, expenses or indemnity amounts properly owing to the Indenture Trustee
      pursuant to the terms of any of the Operative Agreements), the Indenture Trustee
      shall remit such funds promptly to the Securities Administrator.

     

    ARTICLE
      V

     

    EVENTS
      OF
      DEFAULT; REMEDIES

     

    Section
      5.01. Events
      of Default.
      (a)  “Event
      of Default,” wherever used herein, means any one of the following events
      (whatever the reason for such Event of Default and whether it shall be voluntary
      or involuntary or be effected by operation of law or pursuant to any judgment,
      decree or order of any court or any order, rule or regulation of any
      administrative or governmental body):

     

    (i) Default
      for one month or more in the payment of any Current Interest on any Class of
      Notes then outstanding when the same becomes due and payable under Section
      5.01
      of the Sale and Servicing Agreement;

     

    
      
        
        

      

      
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    (ii) failure
      to pay the entire principal amount of any Note when the same becomes due and
      payable under the Sale and Servicing Agreement or on the applicable Maturity
      Date;

     

    (iii) failure
      to observe or perform any covenant or agreement of the Issuer made in this
      Indenture (other than a covenant or agreement, a default in the observance
      or
      performance of which is elsewhere in this Section specifically dealt with),
      or
      any representation or warranty of the Issuer made in this Indenture or in any
      certificate or other writing delivered pursuant hereto or in connection herewith
      proving to have been incorrect in any material respect as of the time when
      the
      same shall have been made, and such default shall continue or not be cured,
      or
      the circumstance or condition in respect of which such representation or
      warranty was incorrect shall not have been eliminated or otherwise cured, for
      a
      period of 60 days after there shall have been given, by registered or certified
      mail, to the Issuer by the Indenture Trustee or to the Issuer and the Indenture
      Trustee by the Holders of at least 25% of the Outstanding Balance of the Notes,
      a written notice specifying such default or incorrect representation or warranty
      and requiring it to be remedied and stating that such notice is a notice of
      Default hereunder;

     

    (iv) the
      filing of a decree or order for relief by a court having jurisdiction in the
      premises in respect of the Issuer or any substantial part of the Collateral
      in
      an involuntary case under any applicable federal or state bankruptcy, insolvency
      or other similar law now or hereafter in effect, or appointing a receiver,
      liquidator, assignee, custodian, trustee, sequestrator or similar official
      of
      the Issuer or for any substantial part of the Collateral, or ordering the
      winding-up or liquidation of the Issuer’s affairs, and such decree or order
      shall remain unstayed and in effect for a period of 60 consecutive
      days;

     

    (v) the
      commencement by the Issuer of a voluntary case under any applicable federal
      or
      state bankruptcy, insolvency or other similar law now or hereafter in effect,
      or
      the consent by the Issuer to the entry of an order for relief in an involuntary
      case under any such law, or the consent by the Issuer to the appointment or
      taking possession by a receiver, liquidator, assignee, custodian, trustee,
      sequestrator or similar official of the Issuer or for any substantial part
      of
      the Collateral, or the making by the Issuer of any general assignment for the
      benefit of creditors, or the failure by the Issuer generally to pay its debts
      as
      such debts become due, or the taking of any action by the Issuer in furtherance
      of any of the foregoing; or

     

    (vi) the
      transfer by any Holder of a beneficial ownership interest in the Ownership
      Certificates and the Privately Offered Notes in contravention of the transfer
      restrictions applicable to the Ownership Certificates and the Privately Offered
      Notes pursuant to Section 2.14, such that the Issuer is subject to federal
      corporate income or similar tax.

     

    (b) The
      Issuer shall deliver to the Indenture Trustee and the Securities Administrator,
      within five days after the occurrence thereof, written notice in the form of
      an
      Officer’s Certificate of any event which with the giving of notice and the lapse
      of time would become an Event of Default under clause (iii), its status and
      what
      action the Issuer is taking or proposes to take with respect thereto. The
      Securities Administrator shall promptly deliver to the Indenture Trustee written
      notice of any Default or Event of Default of which it has actual
      knowledge.

     

    
      
        
        

      

      
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    Section
      5.02. Acceleration
      of Maturity; Rescission and Annulment.
      If an
      Event of Default should occur and be continuing of which a Responsible Officer
      of the Indenture Trustee has actual knowledge, then and in every such case
      the
      Indenture Trustee may, or shall, at the direction of the Majority Priority
      Class
      Noteholders, declare all the Notes to be immediately due and payable, by a
      notice in writing to the Issuer (and to the Indenture Trustee if given by
      Noteholders), and upon any such declaration the unpaid principal amount of
      such
      Notes, together with accrued and unpaid interest on the Notes through the date
      of acceleration, shall become immediately due and payable.

     

    At
      any
      time after such declaration of acceleration of maturity has been made and before
      a judgment or decree for payment of the money due has been obtained by the
      Indenture Trustee as provided in this Article V, the Majority Priority Class
      Noteholders, by written notice to the Issuer and the Indenture Trustee, may
      rescind and annul such declaration and its consequences if:

     

    (i) the
      Issuer has paid or deposited with the Securities Administrator a sum sufficient
      to pay:

     

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

     

    (II) all
      sums
      paid or advanced by the Indenture Trustee hereunder and the reasonable
      compensation, expenses, disbursements and advances of the Indenture Trustee
      and
      its agents and counsel; and

     

    (ii) all
      Events of Default, other than the nonpayment of the principal of the Notes
      that
      has become due solely by such acceleration, have been cured or waived as
      provided in Section 5.12.

     

    No
      such
      rescission shall affect any subsequent default or impair any right consequent
      thereto.

     

    The
      Holders of Non-Priority Class Notes shall have no right to exercise any
      Noteholders’ rights referred to in this Article V, except to the extent
      expressly provided herein.

     

    Section
      5.03. Collection
      of Indebtedness and Suits for Enforcement by Indenture Trustee.
      (a)  The
      Issuer covenants that if (i) default is made in the payment of any Current
      Interest on any Note when the same becomes due and payable, and such default
      continues for a period of five days, or (ii) default is made in the payment
      of
      the principal amount of any Note when the same becomes due and payable on the
      applicable Maturity Date, the Issuer will, upon demand of the Indenture Trustee,
      pay to the Securities Administrator, for the benefit of the Holders of the
      Notes, the whole amount then due and payable on such Notes for principal and
      interest, with interest on the overdue principal and, to the extent payment
      at
      such rate of interest shall be legally enforceable, on overdue installments
      of
      interest at the rate borne by such Notes and, in addition thereto, pay to the
      Indenture Trustee such further amount as shall be sufficient to cover the costs
      and expenses of collection, including the reasonable compensation, expenses,
      disbursements and advances of the Indenture Trustee and its agents and
      counsel.

     

    
      
        
        

      

      
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    (b) In
      case
      the Issuer shall fail forthwith to pay such amounts upon such demand, the
      Indenture Trustee, in its own name and as trustee of an express trust, may,
      and
      shall, at the direction of the Majority Priority Class Noteholders institute
      a
      Proceeding for the collection of the sums so due and unpaid, and may prosecute
      such Proceeding to judgment or final decree, and may enforce the same against
      the Issuer upon such Notes and collect in the manner provided by law out of
      the
      property of the Issuer upon such Notes, wherever situated, the moneys adjudged
      or decreed to be payable.

     

    (c) If
      an
      Event of Default occurs and is continuing, the Indenture Trustee may, in its
      discretion, or shall, at the direction of the Majority Priority Class
      Noteholders, as more particularly provided in Section 5.04, proceed to protect
      and enforce its rights and the rights of the Noteholders, by such appropriate
      Proceedings as the Indenture Trustee shall deem most effective to protect and
      enforce any such rights, whether for the specific enforcement of any covenant
      or
      agreement in this Indenture or in aid of the exercise of any power granted
      herein, or to enforce any other proper remedy or legal or equitable right vested
      in the Indenture Trustee by this Indenture or by law.

     

    (d) In
      case
      there shall be pending, relative to the Issuer or any other obligor upon the
      Notes or any Person having or claiming an ownership interest in the Collateral,
      Proceedings under Title 11 of the United States Code or any other applicable
      federal or state bankruptcy, insolvency or other similar law, or in case a
      receiver, assignee or trustee in bankruptcy or reorganization, or liquidator,
      sequestrator or similar official shall have been appointed for or taken
      possession of the Issuer or its property or such other obligor or Person, or
      in
      case of any other comparable judicial Proceedings relative to the Issuer or
      other obligor upon the Notes, or to the creditors or property of the Issuer
      or
      such other obligor, the Indenture Trustee, irrespective of whether the principal
      of any Notes shall then be due and payable as therein expressed or by
      declaration or otherwise and irrespective of whether the Indenture Trustee
      shall
      have made any demand pursuant to the provisions of this Section, shall be
      entitled and empowered, by intervention in such Proceedings or
      otherwise:

     

    (i) to
      file
      and prove a claim or claims for the whole amount of principal and interest
      owing
      and unpaid in respect of the Notes and to file such other papers or documents
      as
      may be necessary or advisable in order to have the claims of the Indenture
      Trustee (including any claim for reasonable compensation to the Indenture
      Trustee and each predecessor Indenture Trustee, and their respective agents,
      attorneys and counsel, and for reimbursement of all expenses and liabilities
      incurred, and all advances made, by the Indenture Trustee and each predecessor
      Indenture Trustee, except as a result of negligence or bad faith) and of the
      Noteholders allowed in such Proceedings;

     

    (ii) unless
      prohibited by applicable law and regulations, to vote on behalf of the Holders
      of Notes in any election of a trustee, a standby trustee or Person performing
      similar functions in any such Proceedings;

     

    
      
        
        

      

      
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    (iii) to
      collect and receive any moneys or other property payable or deliverable on
      any
      such claims and to distribute all amounts received with respect to the claims
      of
      the Noteholders and of the Indenture Trustee on their behalf;

     

    (iv) to
      file
      such proofs of claim and other papers or documents as may be necessary or
      advisable in order to have the claims of the Indenture Trustee or the Holders
      of
      Notes allowed in any Proceedings relative to the Issuer, its creditors and
      its
      property; and

     

    (v) to
      participate as a member of any official committee of creditors in the matters
      as
      it deems necessary or advisable;

     

    and
      any
      trustee, receiver, liquidator, custodian or other similar official in any such
      Proceeding is hereby authorized by each of such Noteholders to make payments
      to
      the Securities Administrator and, in such event or in the event that the
      Indenture Trustee shall consent to the making of payments directly to such
      Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient
      to cover reasonable compensation to the Indenture Trustee, each predecessor
      Indenture Trustee and their respective agents, attorneys and counsel, and all
      other expenses and liabilities incurred by it or its agents, and all advances
      made, by the Indenture Trustee and each predecessor Indenture Trustee except
      as
      a result of negligence or bad faith.

    

    (e) Nothing
      herein contained shall be deemed to authorize the Indenture Trustee to authorize
      or consent to or vote for or accept or adopt on behalf of any Noteholder any
      plan of reorganization, arrangement, adjustment or composition affecting the
      Notes or the rights of any Holder thereof or to authorize the Indenture Trustee
      to vote in respect of the claim of any Noteholder in any such proceeding except,
      as aforesaid, to vote for the election of a trustee in bankruptcy or similar
      Person.

     

    (f) All
      rights of action and of asserting claims under this Indenture, or under any
      of
      the Notes, may be enforced by the Indenture Trustee without the possession
      of
      any of the Notes or the production thereof in any trial or other Proceedings
      relative thereto, and any such action or Proceedings instituted by the Indenture
      Trustee shall be brought in its own name as trustee of an express trust, and
      any
      recovery of judgment, subject to the payment of the expenses, disbursements
      and
      compensation of the Indenture Trustee, each predecessor Indenture Trustee and
      their respective agents and attorneys, shall be for the ratable benefit of
      the
      Holders of the Notes.

     

    (g) In
      any
      Proceedings brought by the Indenture Trustee (and also any Proceedings involving
      the interpretation of any provision of this Indenture to which the Indenture
      Trustee shall be a party), the Indenture Trustee shall be held to represent
      all
      the Holders of the Notes, and it shall not be necessary to make any Noteholder
      a
      party to any such Proceedings.

     

    Section
      5.04. Remedies;
      Priorities.
      (a) If
      an Event of Default shall have occurred and be continuing of which a Responsible
      Officer of the Indenture Trustee has actual knowledge, the Indenture Trustee
      may, and at the direction of the Majority Priority Class Noteholders shall,
      do
      one or more of the following (subject to Section 5.05):

     

    
      
        
        

      

      
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    (i) institute
      Proceedings in its own name (as Indenture Trustee) and as trustee of an express
      trust for the collection of all amounts then payable on the Notes or under
      this
      Indenture with respect thereto, whether by declaration or otherwise, enforce
      any
      judgment obtained and collect from the Issuer and any other obligor upon such
      Notes moneys adjudged due;

     

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

     

    (iii) exercise
      any remedies of a secured party under the Uniform Commercial Code and take
      any
      other appropriate action to protect and enforce the rights and remedies of
      the
      Indenture Trustee and the Holders of the Notes; and

     

    (iv) sell
      the
      Collateral or any portion thereof or rights or interest therein, at one or
      more
      public or private sales called and conducted in any manner permitted by
      law;

     

    provided,
      however,
      that
      the Indenture Trustee may not sell or otherwise liquidate any Collateral
      following an Event of Default, other than an Event of Default described in
      Section 5.01(i) or (ii), unless (A) the Holders of all Outstanding Notes consent
      thereto, (B) the proceeds of such sale or liquidation distributable to the
      Noteholders are sufficient to discharge in full all amounts then due and unpaid
      upon such Notes for principal and interest or (C) the Indenture Trustee
      determines that the Collateral will not continue to provide sufficient funds
      for
      the payment of principal of and interest on the Notes as they would have become
      due if the Notes had not been declared due and payable, and the Indenture
      Trustee obtains the consent of Holders of 66-2/3% of the Outstanding Balance
      of
      the Notes. In determining such sufficiency or insufficiency with respect to
      clauses (B) and (C), the Indenture Trustee may, but need not, obtain (at the
      cost of the Issuer) and rely upon an opinion of an Independent investment
      banking or accounting firm of national reputation as to the feasibility of
      such
      proposed action and as to the sufficiency of the Collateral for such
      purpose.

     

    (b) If
      the
      Indenture Trustee collects any money or property pursuant to this Article V,
      it
      shall remit such money or property to the Securities Administrator (other than
      amounts owing to it pursuant to clause first
      below),
      and the Securities Administrator shall pay out such money or property in the
      following order:

     

    first:
      in the
      following order, to the Indenture Trustee, for any indemnity expenses, costs
      or
      expenses, including any reasonable out-of-pocket attorneys’ fees and expenses,
      incurred by it in connection with the enforcement of the remedies provided
      for
      in this Article V and for any other unpaid amounts due to the Indenture Trustee
      hereunder or under any other Operative Agreement; to the Custodian, the
      Securities Administrator and the Master Servicer, to the extent of any fees
      and
      expenses due and owing to each of them under any Operative Agreement; and to
      the
      Owner Trustee, to the extent of any fees and expenses due and owing to it
      (including pursuant to Section 7.03 of the Trust Agreement) and for any other
      unpaid amounts due to the Owner Trustee hereunder or under the Sale and
      Servicing Agreement;

     

    
      
        
        

      

      
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    second:
      to
      the
      Master Servicer and the Servicers for any Master Servicing Fees or Servicing
      Fees then due and unpaid and any unreimbursed Monthly Advances and other
      servicing advances;

     

    third:
      to
      the
      applicable parties, any other outstanding expenses of the Trust remaining
      unpaid;

     

    fourth:
      to
      the
      Notes, all accrued and unpaid interest thereon and amounts in respect of
      principal paid to the Trust, in each case according to the priorities set forth
      in Section 5.01 of
      the
      Sale and Servicing Agreement; provided,
      however,
      that no
      payments shall be made to the Holders of the Subordinated Notes or the Interest
      Only Notes under this Section 5.04(b) until all remaining amounts of principal
      and accrued and unpaid interest have been paid to the Holders of the Class
      [     ] Notes; and

     

    fifth:
      to
      the
      Certificate Paying Agent for any amounts to be distributed to the Holders of
      the
      Ownership Certificates.

     

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

     

    Section
      5.05. Optional
      Preservation of the Collateral.
      If the
      Notes have been declared to be due and payable under Section 5.02 following
      an
      Event of Default and such declaration and its consequences have not been
      rescinded and annulled, the Indenture Trustee may, but need not, elect to
      maintain possession of the Collateral. It is the desire of the parties hereto
      and the Noteholders that there be at all times sufficient funds for the payment
      of principal of and interest on the Notes, and the Indenture Trustee shall
      take
      such desire into account when determining whether or not to maintain possession
      of the Collateral. In determining whether to maintain possession of the
      Collateral, the Indenture Trustee may, but need not, obtain and rely upon an
      opinion (at the expense of the Issuer) of an Independent investment banking
      or
      accounting firm of national reputation as to the feasibility of such proposed
      action and as to the sufficiency of the Collateral for such
      purpose.

     

    Section
      5.06. Limitation
      of Suits.
      Other
      than as otherwise expressly provided herein, no Holder of any Note shall have
      any right to institute any Proceeding, judicial or otherwise, with respect
      to
      this Indenture, or for the appointment of a receiver or trustee, or for any
      other remedy hereunder, unless:

     

    (i) such
      Holder has previously given written notice to the Indenture Trustee of a
      continuing Event of Default;

     

    (ii) the
      Holders of not less than 25% of the Outstanding Balance of the Priority Class
      Notes have made written request to the Indenture Trustee to institute such
      Proceeding in respect of such Event of Default in its own name as Indenture
      Trustee hereunder;

     

    
      
        
        

      

      
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    (iii) such
      Holder or Holders have offered to the Indenture Trustee reasonable indemnity
      against the costs, expenses and liabilities to be incurred in complying with
      such request;

     

    (iv) the
      Indenture Trustee for 60 days after its receipt of such notice, request and
      offer of indemnity has failed to institute such Proceedings; and

     

    (v) no
      direction inconsistent with such written request has been given to the Indenture
      Trustee during such 60-day period by the Holders of a majority of the
      Outstanding Balance of the Notes.

     

    It
      is
      understood and intended that no one or more Holders of Notes shall have any
      right in any manner whatever by virtue of, or by availing of, any provision
      of
      this Indenture to affect, disturb or prejudice the rights of any other Holders
      of Notes or to obtain or to seek to obtain priority or preference over any
      other
      Holders or to enforce any right under this Indenture, except in the manner
      herein provided.

     

    In
      the
      event the Indenture Trustee shall receive conflicting or inconsistent requests
      and indemnity from two or more groups of Holders of Notes, each representing
      less than a majority of the Outstanding Balance of the Notes, the Indenture
      Trustee shall take the action requested by the Holders of the largest percentage
      in Outstanding Balance of the Notes and, if there is no single largest
      percentage in Outstanding Balance of the Notes, in its sole discretion may
      determine what action, if any, shall be taken, notwithstanding any other
      provisions of this Indenture.

     

    Section
      5.07. Unconditional
      Rights of Noteholders To Receive Principal and Interest.
      Notwithstanding any other provisions in this Indenture, the Holder of any Note
      shall have the right, which is absolute and unconditional, to receive payment
      of
      the principal of, interest, if any, and Class [     ]
      Deferred Amounts, if any, on such Note on or after the respective due dates
      thereof expressed in such Note or in this Indenture (or, in the case of exercise
      of a Clean-Up Call Right or Optional Notes Purchase Right, on or after the
      applicable Redemption Date) and to institute suit for the enforcement of any
      such payment, and such right shall not be impaired without the consent of such
      Holder.

     

    Section
      5.08. Restoration
      of Rights and Remedies.
      If the
      Indenture Trustee or any Noteholder has instituted any Proceeding to enforce
      any
      right or remedy under this Indenture and such Proceeding has been discontinued
      or abandoned for any reason or has been determined adversely to the Indenture
      Trustee or to such Noteholder, then and in every such case the Issuer, the
      Indenture Trustee and the Noteholders shall, subject to any determination in
      such Proceeding, be restored severally and respectively to their former
      positions hereunder, and thereafter all rights and remedies of the Indenture
      Trustee and the Noteholders shall continue as though no such Proceeding had
      been
      instituted.

     

    Section
      5.09. Rights
      and Remedies Cumulative.
      No
      right or remedy herein conferred upon or reserved to the Indenture Trustee
      or to
      the Noteholders is intended to be exclusive of any other right or remedy, and
      every right and remedy shall, to the extent permitted by law, be cumulative
      and
      in addition to every other right and remedy given hereunder or now or hereafter
      existing at law or in equity or otherwise. The assertion or employment of any
      right or remedy hereunder, or otherwise, shall not prevent the concurrent
      assertion or employment of any other appropriate right or remedy.

     

    
      
        
        

      

      
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    Section
      5.10. Delay
      or Omission Not a Waiver.
      No
      delay or omission of the Indenture Trustee or any Holder of any Note to exercise
      any right or remedy accruing upon any Default or Event of Default shall impair
      any such right or remedy or constitute a waiver of any such Default or Event
      of
      Default or an acquiescence therein. Every right and remedy given by this Article
      V or by law to the Indenture Trustee or to the Noteholders may be exercised
      from
      time to time, and as often as may be deemed expedient, by the Indenture Trustee
      or by the Noteholders, as the case may be.

     

    Section
      5.11. Control
      by Noteholders.
      Except
      as otherwise provided in Section 5.02, the Majority Priority Class Noteholders
      shall have the right to direct the time, method and place of conducting any
      Proceeding for any remedy available to the Indenture Trustee with respect to
      the
      Notes or exercising any trust or power conferred on the Indenture Trustee;
      provided that:

     

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

     

    (ii) subject
      to the express terms of Section 5.04, any direction to the Indenture Trustee
      to
      sell or liquidate the Collateral shall be by Holders of Notes representing
      not
      less than 100% of the Outstanding Balance of the Notes;

     

    (iii) if
      the
      conditions set forth in Section 5.05 have been satisfied and the Indenture
      Trustee elects to retain the Collateral pursuant to such Section, then any
      direction to the Indenture Trustee by Holders of Notes representing less than
      100% of the Outstanding Balance of the Notes to sell or liquidate the Collateral
      shall be of no force and effect; and

     

    (iv) the
      Indenture Trustee may take any other action deemed proper by the Indenture
      Trustee that is not inconsistent with such direction.

     

    Notwithstanding
      the rights of the Noteholders set forth in this Section, subject to Section
      6.01(g), the Indenture Trustee need not take any action that it determines
      might
      involve it in liability or might materially adversely affect the rights of
      any
      Noteholders not consenting to such action. In the event the Indenture Trustee
      takes any action or follows any direction pursuant to this Indenture, the
      Indenture Trustee shall be entitled to indemnification against any loss or
      expense caused by taking such action or following such direction in accordance
      with Section 6.07.

     

    Section
      5.12. Waiver
      of Past Defaults.
      Prior
      to the declaration of the acceleration of the maturity of the Notes as provided
      in Section 5.02, the Majority Priority Class Noteholders may waive, in writing,
      any past Default or Event of Default and its consequences except a Default
      (a)
      in payment of principal of or interest on any of the Notes or (b) in respect
      of
      a covenant or provision hereof which cannot be modified or amended without
      the
      consent of the Holder of each Note. In the case of any such waiver, the Issuer,
      the Indenture Trustee and the Holders of the Notes shall be restored to their
      former positions and rights hereunder, respectively; but no such waiver shall
      extend to any subsequent or other Default or impair any right consequent
      thereto.

     

    
      
        
        

      

      
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    Upon
      any
      such waiver, such Default shall cease to exist and be deemed to have been cured
      and not to have occurred, and any Event of Default arising therefrom shall
      be
      deemed to have been cured and not to have occurred, for every purpose of this
      Indenture; but no such waiver shall extend to any subsequent or other Default
      or
      Event of Default or impair any right consequent thereto.

     

    Section
      5.13. Undertaking
      for Costs.
      All
      parties to this Indenture agree, and each Holder of a Note by such Holder’s
      acceptance thereof shall be deemed to have agreed, that any court may in its
      discretion require, in any suit for the enforcement of any right or remedy
      under
      this Indenture, or in any suit against the Indenture Trustee for any action
      taken, suffered or omitted by it as Indenture Trustee, the filing by any party
      litigant in such suit of an undertaking to pay the costs of such suit, and
      that
      such court may in its discretion assess reasonable costs, including reasonable
      attorneys’ fees, against any party litigant in such suit, having due regard to
      the merits and good faith of the claims or defenses made by such party litigant;
      but the provisions of this Section shall not apply to (a) any suit instituted
      by
      the Indenture Trustee, (b) any suit instituted by any Noteholder, or group
      of
      Noteholders, in each case holding in the aggregate more than 10% of the
      Outstanding Balance or Percentage Interest of the Notes or (c) any suit
      instituted by any Noteholder for the enforcement of the payment of principal
      of
      or interest on any Note on or after the respective due dates expressed in such
      Note and in this Indenture (or, in the case of exercise of a Clean-Up Call
      Right
      or Optional Notes Purchase Right, on or after the applicable Redemption
      Date).

     

    Section
      5.14. Waiver
      of Stay or Extension Laws.
      The
      Issuer covenants (to the extent that it may lawfully do so) that it will not
      at
      any time insist upon, or plead or in any manner whatsoever claim or take the
      benefit or advantage of, any stay or extension law wherever enacted, now or
      at
      any time hereafter in force, that may affect the covenants or the performance
      of
      this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
      expressly waives all benefit or advantage of any such law, and covenants that
      it
      will not hinder, delay or impede the execution of any power herein granted
      to
      the Indenture Trustee, but will suffer and permit the execution of every such
      power as though no such law had been enacted.

     

    Section
      5.15. Action
      on Notes.
      The
      Indenture Trustee’s right to seek and recover judgment on the Notes or under
      this Indenture shall not be affected by the seeking, obtaining or application
      of
      any other relief under or with respect to this Indenture. Neither the lien
      of
      this Indenture nor any rights or remedies of the Indenture Trustee or the
      Noteholders shall be impaired by the recovery of any judgment by the Indenture
      Trustee against the Issuer or by the levy of any execution under such judgment
      upon any portion of the Collateral or upon any of the assets of the Issuer.
      Any
      money or property collected by the Indenture Trustee and remitted to the
      Securities Administrator shall be applied by the Securities Administrator in
      accordance with Section 5.04(b).

     

    
      
        
        

      

      
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    Section
      5.16. Performance
      and Enforcement of Certain Obligations. (a)
      Promptly
      following a request from the Indenture Trustee to do so and at the Issuer’s
      expense, the Issuer shall take all such lawful action as the Indenture Trustee
      may request to compel or secure the performance and observance by the Seller,
      the Initial Seller, the Depositor, the Securities Administrator, the Master
      Servicer or the Servicer, as applicable, of each of their obligations to the
      Issuer under or in connection with the Mortgage Loan Purchase Agreements and
      the
      Sale and Servicing Agreement, and to exercise any and all rights, remedies,
      powers and privileges lawfully available to the Issuer under or in connection
      with the Sale and Servicing Agreement to the extent and in the manner directed
      by the Indenture Trustee, including the transmission of notices of default
      on
      the part of the Seller, the Initial Seller, the Depositor, the Securities
      Administrator, the Master Servicer or a Servicer, as applicable, under the
      Mortgage Loan Purchase Agreements and Sale and Servicing Agreement and the
      institution of legal or administrative actions or proceedings to compel or
      secure performance by the Seller, the Initial Seller, the Depositor, the
      Securities Administrator, the Master Servicer or a Servicer, as applicable,
      of
      each of their applicable obligations under the Mortgage Loan Purchase Agreements
      and the Sale and Servicing Agreement. 

     

    (b) 
      If an
      Event of Default of which a Responsible Officer of the Indenture Trustee has
      actual knowledge has occurred and is continuing, the Indenture Trustee may,
      and
      at the direction (which direction shall be in writing or by telephone (confirmed
      in writing promptly thereafter)) of the Majority Priority Class Noteholders
      shall, exercise all rights, remedies, powers, privileges and claims of the
      Issuer against the Depositor, the Securities Administrator, the Master Servicer
      or a Servicer under or in connection with the Sale and Servicing Agreement
      or
      the Seller or Initial Seller under or in connection with the Mortgage Loan
      Purchase Agreements, including the right or power to take any action to compel
      or secure performance or observance by the Seller, the Initial Seller, the
      Depositor, the Securities Administrator, the Master Servicer or a Servicer,
      of
      each of their respective obligations to the Issuer thereunder and to give any
      consent, request, notice, direction, approval, extension or waiver under the
      Sale and Servicing Agreement, and any right of the Issuer to take such action
      shall be suspended.

     

    ARTICLE
      VI

     

    THE
      INDENTURE TRUSTEE

     

    Section
      6.01. Duties
      of Indenture Trustee.
      (a) If
      an Event of Default has occurred and is continuing, the Indenture Trustee shall
      exercise the rights and powers vested in it by this Indenture and use the same
      degree of care and skill in their exercise as a prudent person would exercise
      or
      use under the circumstances in the conduct of such person’s own
      affairs.

     

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

     

    (i) the
      Indenture Trustee undertakes to perform such duties and only such duties as
      are
      specifically set forth in this Indenture on its part to be performed and shall
      not be liable except for the performance of such duties and obligations as
      are
      specifically set forth in this Indenture and no implied covenants or obligations
      shall be read into this Indenture against the Indenture Trustee;
      and

     

    
      
        
        

      

      
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    (ii) in
      the
      absence of bad faith on its part, the Indenture Trustee may conclusively rely,
      as to the truth of the statements and the correctness of the opinions expressed
      therein, upon certificates or opinions furnished to the Indenture Trustee and
      on
      their face conforming to the requirements of this Indenture; however, the
      Indenture Trustee shall examine the certificates and opinions to determine
      whether or not they conform on their face to the requirements of this
      Indenture.

     

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

     

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

     

    (ii) the
      Indenture Trustee shall not be liable for any error of judgment made in good
      faith by a Responsible Officer unless it is proved that the Indenture Trustee
      was negligent in ascertaining the pertinent facts;

     

    (iii) the
      Indenture Trustee shall not be liable with respect to any action it takes or
      omits to take in good faith in accordance with this Indenture or upon a
      direction received by it from the requisite Noteholders pursuant to Article
      V;
      and

     

    (iv) the
      Indenture Trustee shall not be required to take notice or be deemed to have
      notice or knowledge of (a) any failure by the Issuer to comply with its
      obligations hereunder or in the other Operative Agreements or (b) any Default
      or
      Event of Default, unless a Responsible Officer of the Indenture Trustee assigned
      to and working in its corporate trust department obtains actual knowledge of
      such Default or Event of Default or shall have received written notice thereof.
      In the absence of such actual knowledge or notice, the Indenture Trustee may
      conclusively assume that there is no Default or Event of Default.

     

    (d) Every
      provision of this Indenture that in any way relates to the Indenture Trustee
      is
      subject to the provisions of this Section.

     

    (e) The
      Indenture Trustee shall not be liable for indebtedness evidenced by or arising
      under any of the Operative Agreements, including principal of or interest on
      the
      Notes, or interest on any money received by it except as the Indenture Trustee
      may agree in writing with the Issuer.

     

    (f) Money
      held in trust by the Indenture Trustee (if any) need not be segregated from
      other funds except to the extent required by law or the terms of this Indenture
      or the Sale and Servicing Agreement.

     

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

     

    
      
        
        

      

      
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    (h) Every
      provision of this Indenture or any other Operative Agreement relating to the
      conduct or affecting the liability of or affording protection to the Indenture
      Trustee shall be subject to the provisions of this Section, Section 6.02 and
      to
      the provisions of the TIA.

     

    (i) Anything
      in this Indenture to the contrary notwithstanding, in no event shall the
      Indenture Trustee be liable for special, indirect or consequential loss or
      damage of any kind whatsoever (including but not limited to lost profits),
      even
      if the Indenture Trustee has been advised of the likelihood of such loss or
      damage and regardless of the form of action.

     

    (j) The
      Indenture Trustee shall execute and deliver the Sale and Servicing Agreement
      and
      such other documents and instruments as shall be necessary or appropriate in
      accordance with its duties and obligations under this Indenture.

     

    (k) The
      Indenture Trustee shall not have any duty or obligation to manage, make any
      payment with respect to, register, record, sell, dispose of, or otherwise deal
      with the Collateral, or to otherwise take or refrain from taking any action
      under, or in connection with, any document contemplated hereby to which the
      Indenture Trustee is a party, except as expressly provided (i) in
      accordance with the powers granted to and the authority conferred upon the
      Indenture Trustee pursuant to this Indenture or any other Operative Agreement,
      and (ii) in accordance with any document or instruction delivered to the
      Indenture Trustee pursuant to the terms of this Indenture or any other Operative
      Agreement; and no implied duties or obligations shall be read into this
      Indenture or any other Operative Agreement against the Indenture Trustee. The
      Indenture Trustee shall have no responsibility to prepare or file any Securities
      and Exchange Commission filing for the Trust or to record this Indenture or
      any
      other Operative Agreement or to prepare or file any tax return for the Trust.
      The Indenture Trustee nevertheless agrees that it will, at its own cost and
      expense, promptly take all action as may be necessary to discharge any liens
      on
      any part of the Collateral that result from actions by, or claims against itself
      (in its individual capacity, and not in the capacity of Indenture Trustee)
      that
      are not related to the administration of the Collateral.

     

    (l) In
      the
      absence of bad faith, negligence or willful misconduct on the part of the
      Indenture Trustee or the Securities Administrator, neither the Indenture Trustee
      nor the Securities Administrator shall be responsible for the application of
      any
      money by any Paying Agent other than the Indenture Trustee or the Securities
      Administrator, respectively. Neither the Indenture Trustee nor the Securities
      Administrator shall have any liability or responsibility for the acts or
      omissions of the other Person, it being understood that this Indenture shall
      not
      be construed to render them agents of one another.

     

    Section
      6.02. Rights
      of Indenture Trustee.
      (a) The
      Indenture Trustee may rely on and shall be protected in acting in good faith
      upon any document believed by it to be genuine and to have been signed or
      presented by the proper person. The Indenture Trustee need not investigate
      any
      fact or matter stated in any such document.

     

    
      
        
        

      

      
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    (b) Before
      the Indenture Trustee acts or refrains from acting, it may require an Officer’s
      Certificate or an Opinion of Counsel, which shall not be at the expense of
      the
      Indenture Trustee. The Indenture Trustee shall not be liable for any action
      it
      takes or omits to take in good faith in reliance on an Officer’s Certificate or
      Opinion of Counsel. Any Opinion of Counsel with respect to legal matters
      relating to this Indenture, any Operative Agreement and the Notes shall be
      full
      and complete authorization and protection from liability in respect to any
      action taken, omitted or suffered by it hereunder in good faith and in
      accordance with any Opinion of Counsel of such counsel. The Issuer shall be
      responsible for the reasonable costs and expenses of any such counsel. The
      right
      of the Indenture Trustee to perform any discretionary act enumerated in this
      Indenture or in any Operative Agreement shall not be construed as a duty and
      the
      Indenture Trustee shall not be answerable for other than its negligence or
      willful misconduct in the performance of such act.

     

    (c) The
      Indenture Trustee may execute any of the trusts or powers hereunder or perform
      any duties hereunder either directly or by or through agents or attorneys or
      a
      custodian or nominee and the Indenture Trustee shall not be responsible for
      any
      misconduct or negligence on the part of such agent, attorney, custodian or
      nominee appointed by the Indenture Trustee with due care.

     

    (d) The
      Indenture Trustee shall not be liable for any action it takes or omits to take
      in good faith which it believes to be authorized or within its rights or powers;
      provided, that the Indenture Trustee’s conduct does not constitute willful
      misconduct, negligence or bad faith.

     

    (e) In
      the
      event that the Indenture Trustee is also acting as Paying Agent or Note
      Registrar hereunder or under any other Operative Agreement, the rights and
      protections afforded to the Indenture Trustee pursuant to this Article VI shall
      be afforded to such Paying Agent or Note Registrar.

     

    (f) The
      Indenture Trustee shall not be bound to make any investigation into the facts
      or
      matters stated in any resolution, certificate (including any Officers’
Certificate), statement, instrument, opinion (including any Opinion of Counsel),
      notice, request, direction, consent, order, bond, debenture or other paper
      or
      document, unless requested to do so in writing by Holders of Notes representing
      not less than 25% of the Outstanding Balance of the Notes and provided that
      such
      Holders shall have offered to the Indenture Trustee reasonable security or
      indemnity satisfactory to it against the costs, expenses and liabilities which
      may be incurred thereby.

     

    (g) The
      Indenture Trustee shall not be required to give any bond or surety in respect
      of
      the performance of its powers and duties hereunder.

     

    (h) The
      permissive rights of the Indenture Trustee to do things enumerated in this
      Indenture shall not be construed as duties.

     

    Section
      6.03. Individual
      Rights of Indenture Trustee.
      The
      Indenture Trustee in its individual or any other capacity other than as
      Indenture Trustee may, and in its capacity as Indenture Trustee may not, become
      the owner or pledgee of Notes and may otherwise deal with the Issuer or its
      Affiliates with the same rights it would have if it were not Indenture Trustee.
      Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the
      same with like rights. However, the Indenture Trustee must meet the eligibility
      criteria of Section 6.11.

     

    
      
        
        

      

      
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    Section
      6.04. Indenture
      Trustee’s Disclaimer.
      The
      Indenture Trustee shall not be responsible for and makes no representation
      as to
      the validity or adequacy of any of the Operative Agreements or the Notes or
      the
      sufficiency of the Collateral; it shall not be accountable for the Issuer’s use
      of the proceeds from the Notes, and it shall not be responsible for any
      statement of the Issuer in this Indenture, any other Operative Agreement or
      in
      any other document issued in connection with the sale of the Notes or in the
      Notes.

     

    Section
      6.05. Notice
      of Defaults.
      If a
      Default occurs and is continuing and if a Responsible Officer of the Indenture
      Trustee has actual knowledge thereof, the Indenture Trustee shall give written
      notice thereof to the Securities Administrator who shall provide notice to
      each
      Noteholder within thirty (30) days after it acquires knowledge
      thereof.

     

    Section
      6.06. Reports
      by Securities Administrator to Holders.
      The
      Securities Administrator shall deliver to each Noteholder such information
      with
      respect to the Notes as may be required to enable such holder to prepare its
      federal and state income tax returns and shall file such information returns
      with the Internal Revenue Service with respect to payments or accruals of
      interest on the Notes as are required to be filed under the Code or applicable
      Treasury Regulations.

     

    Section
      6.07. Compensation
      and Indemnity.
      The
      Indenture Trustee shall be entitled, as compensation for its services, the
      Indenture Trustee Fee to be paid by the Master Servicer as provided in the
      Sale
      and Servicing Agreement. The Indenture Trustee’s compensation shall not be
      limited by any law on compensation of a trustee of an express trust. The
      Indenture Trustee and any co-trustee shall be reimbursed on behalf of the Issuer
      from funds in the Accounts, as provided in the Sale and Servicing Agreement,
      for
      all reasonable out-of-pocket expenses incurred or made by it, including costs
      of
      collection, in addition to the compensation for its services (as provided in
      the
      Sale and Servicing Agreement) and indemnity payments. Reimbursable expenses
      under this Section shall include the reasonable compensation and expenses,
      disbursements and advances, if any, of the Indenture Trustee’s agents, counsel,
      accountants and experts. The Issuer shall indemnify the Indenture Trustee,
      any
      co-trustee and their respective employees, directors and agents, as provided
      in
      the Sale and Servicing Agreement and from funds in the Accounts, against any
      and
      all claims, losses, liabilities or expenses (including attorneys’ fees) incurred
      by it in connection with the administration of this trust and the performance
      of
      its duties hereunder or under any other Operative Agreement. The Indenture
      Trustee or co-trustee, as applicable, shall notify the Issuer promptly of any
      claim for which it may seek indemnity. Failure by the Indenture Trustee or
      the
      co-trustee, as applicable, to so notify the Issuer shall not relieve the Issuer
      of its obligations hereunder. The Issuer shall defend any such claim, and the
      Indenture Trustee and any co-trustee may have separate counsel fees and expenses
      of such counsel shall be payable on behalf of the Issuer from funds in the
      Accounts. The Issuer shall not be required to reimburse any expense or indemnify
      against any loss, liability or expense incurred by the Indenture Trustee or
      any
      co-trustee, as applicable, through the Indenture Trustee’s or co-trustee’s, as
      the case may be, own willful misconduct, negligence or bad faith.

     

    
      
        
        

      

      
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    The
      Issuer’s obligations to the Indenture Trustee and any co-trustee pursuant to
      this Section shall survive the resignation or removal of the Indenture Trustee
      and the termination of this Indenture. When the Indenture Trustee or any
      co-trustee incurs expenses after the occurrence of a Default specified in
      Section 5.01(iv) or (v) with respect to the Issuer, the expenses are intended
      to
      constitute expenses of administration under Title 11 of the United States Code
      or any other applicable federal or state bankruptcy, insolvency or similar
      law.

     

    Section
      6.08. Replacement
      of Indenture Trustee.
      No
      resignation or removal of the Indenture Trustee and no appointment of a
      successor Indenture Trustee shall become effective until the acceptance of
      appointment by the successor Indenture Trustee pursuant to this Section. The
      Indenture Trustee may resign at any time by giving 90 days’ written notice
      thereof to the Depositor, the Issuer, the Securities Administrator, each
      Noteholder and each Rating Agency. The Issuer shall remove the Indenture Trustee
      if:

     

    (i) the
      Indenture Trustee fails to comply with Section 6.11;

     

    (ii) the
      Indenture Trustee is adjudged to be bankrupt or insolvent;

     

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

     

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

     

    If
      the
      Indenture Trustee resigns or is removed or if a vacancy exists in the office
      of
      the Indenture Trustee for any reason (the Indenture Trustee in such event being
      referred to herein as the retiring Indenture Trustee), the Issuer shall promptly
      appoint a successor Indenture Trustee that satisfies the eligibility
      requirements of Section 6.11.

     

    The
      retiring Indenture Trustee agrees to cooperate with any successor Indenture
      Trustee in effecting the termination of the resigning or removed Indenture
      Trustee’s responsibilities and rights hereunder and shall promptly provide such
      successor Indenture Trustee all documents and records reasonably requested
      by it
      to enable it to assume the Indenture Trustee’s functions hereunder.

     

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

     

    If
      a
      successor Indenture Trustee does not take office within 30 days after the
      retiring Indenture Trustee resigns or is removed, the retiring Indenture
      Trustee, the Issuer or the Holders of a majority in Outstanding Balance of
      the
      Notes may petition any court of competent jurisdiction for the appointment
      of a
      successor Indenture Trustee.

     

    
      
        
        

      

      
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    If
      the
      Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition
      any court of competent jurisdiction for the removal of the Indenture Trustee
      and
      the appointment of a successor Indenture Trustee.

     

    Section
      6.09. Successor
      Indenture Trustee or the Securities Administrator by Merger. (a)  If
      the Indenture Trustee or the Securities Administrator consolidates with, merges
      or converts into, or transfers all or substantially all its corporate trust
      business or assets to, another corporation or banking association, as
      applicable, the resulting, surviving or transferee corporation without any
      further act shall be the successor Indenture Trustee or successor Securities
      Administrator, as the case may be; provided
      that
      such corporation or banking association shall be otherwise qualified and
      eligible hereunder and under any other Operative Agreement. The Indenture
      Trustee or the Securities Administrator, as applicable, shall provide each
      Rating Agency prior written notice of any such transaction.

     

    (b) In
      case
      at the time such successor or successors by merger, conversion or consolidation
      to the Securities Administrator shall succeed to the obligations of the
      Securities Administrator under this Indenture any of the Notes which shall
      have
      been authenticated by the Securities Administrator but not delivered, any such
      successor to the Securities Administrator may adopt the certificate of
      authentication of any predecessor securities administrator and deliver such
      Notes so authenticated; and in case at that time any of the Notes shall not
      have
      been authenticated, any successor to the Securities Administrator may
      authenticate such Notes either in the name of any predecessor hereunder or
      in
      the name of the successor to the Securities Administrator; and in all such
      cases
      such certificates shall have the full force which it is anywhere in the Notes
      or
      in this Indenture provided that the certificate of the Securities Administrator
      shall have.

     

    Section
      6.10. Appointment
      of Co-Indenture Trustee or Separate Indenture Trustee. (a)  Notwithstanding
      any other provisions of this Indenture, at any time, for the purpose of meeting
      any legal requirement of any jurisdiction in which any part of the Collateral
      may at the time be located, the Indenture Trustee shall have the power and
      may
      execute and deliver all instruments to appoint one or more Persons to act as
      a
      co-trustee or co-trustees, or separate trustee or separate trustees, of all
      or
      any part of the Trust Estate, and to vest in such Person or Persons, in such
      capacity and for the benefit of the Noteholders, such title to the Collateral,
      or any part thereof, and, subject to the other provisions of this Section,
      such
      powers, duties, obligations, rights and trusts as the Indenture Trustee may
      consider necessary or desirable. No co-trustee or separate trustee hereunder
      shall be required to meet the terms of eligibility as a successor trustee under
      Section 6.11 and no notice to Noteholders of the appointment of any co-trustee
      or separate trustee shall be required under Section 6.08 hereof.

     

    (b) Every
      separate trustee and co-trustee shall, to the extent permitted by law, be
      appointed and act subject to the following provisions and
      conditions:

     

    
      
        
        

      

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

     

    (ii) no
      trustee hereunder shall be personally liable by reason of any act or omission
      of
      any other trustee hereunder; and

     

    (iii) the
      Indenture Trustee may at any time accept the resignation of or remove any
      separate trustee or co-trustee.

     

    (c) Any
      notice, request or other writing given to the Indenture Trustee shall be deemed
      to have been given to each of the then separate trustees and co-trustees, as
      effectively as if given to each of them. Every instrument appointing any
      separate trustee or co-trustee shall refer to this Indenture and the conditions
      of this Article VI. Each separate trustee and co-trustee, upon its acceptance
      of
      the trusts conferred, shall be vested with the estates or property specified
      in
      its instrument of appointment, either jointly with the Indenture Trustee or
      separately, as may be provided therein, subject to all the provisions of this
      Indenture, specifically including every provision of this Indenture relating
      to
      the conduct of, affecting the liability of, or affording protection to, the
      Indenture Trustee. Every such instrument shall be filed with the Indenture
      Trustee.

     

    (d) Any
      separate trustee or co-trustee may at any time constitute the Indenture Trustee,
      its agent or attorney-in-fact with full power and authority, to the extent
      not
      prohibited by law, to do any lawful act under or in respect of this Indenture
      on
      its behalf and in its name. If any separate trustee or co-trustee shall die,
      become incapable of acting, resign or be removed, all of its estates,
      properties, rights, remedies and trusts shall vest in and be exercised by the
      Indenture Trustee, to the extent permitted by law, without the appointment
      of a
      new or successor trustee.

     

    (e) Notwithstanding
      the foregoing, no such co-trustee or separate trustee shall be vested with
      any
      powers, rights or remedies under this Indenture unless such party has agreed
      to
      comply with Section 6.14(c) of this Indenture to the extent applicable to
      it.

     

    Section
      6.11. Eligibility;
      Disqualification.
      The
      Indenture Trustee shall at all times (i) satisfy the requirements of TIA Section
      310(a), (ii) have a combined capital and surplus of at least $100,000,000 as
      set
      forth in its most recently published annual report of condition, (iii) have
      a
      long-term debt rating equivalent to “A” or better by the Rating Agencies or be
      otherwise acceptable to the Rating Agencies and (iv) not be an Affiliate of
      the
      Issuer or the Owner Trustee. The Indenture Trustee shall comply with TIA Section
      310(b), including the optional provision permitted by the second sentence of
      TIA
      Section 310(b)(9); provided,
      however,
      that
      there shall be excluded from the operation of TIA Section 310(b)(1) any
      indenture or indentures under which other securities of the Issuer are
      outstanding if the requirements for such exclusion set forth in TIA Section
      310(b)(1) are met.

     

    
      
        
        

      

      
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    Section
      6.12. Representations
      and Warranties.
      The
      Indenture Trustee hereby represents that:

     

    (a) the
      Indenture Trustee is duly organized and validly existing as a national banking
      association in good standing under the laws of the United States with power
      and
      authority to own its properties and to conduct its business as such properties
      are currently owned and such business is presently conducted;

     

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

     

    (c) the
      consummation of the transactions contemplated by this Indenture and the
      fulfillment of the terms hereof do not conflict with, result in any breach
      of
      any of the terms and provisions of, or constitute (with or without notice or
      lapse of time) a default under the articles of organization or bylaws of the
      Indenture Trustee or any agreement or other instrument to which the Indenture
      Trustee is a party or by which it is bound; and

     

    (d) to
      the
      Indenture Trustee’s knowledge, there are no proceedings or investigations
      pending or threatened before any court, regulatory body, administrative agency
      or other governmental instrumentality having jurisdiction over the Indenture
      Trustee or its properties: (i) asserting the invalidity of this Indenture,
      (ii)
      seeking to prevent the consummation of any of the transactions contemplated
      by
      this Indenture or (iii) seeking any determination or ruling that might
      materially and adversely affect the performance by the Indenture Trustee of
      its
      obligations under, or the validity or enforceability of, this
      Indenture.

     

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

     

    Section
      6.14. Reporting
      Requirements of the Commission.
      (a) The
      Paying Agent shall provide the assessments, attestations, certificates and
      other
      notices required by this section 6.14. 

     

    (a) Assessment
      of Compliance. 

     

    (i) By
      March
      15 of each year, commencing in March [     ], the
      Paying Agent, at its own expense, shall furnish, and shall cause any Subservicer
      or Subcontractor engaged by it to furnish, at its own expense, to the Sponsor,
      the Depositor, the Owner Trustee and the Securities Administrator, a report
      on
      an assessment of compliance with the Relevant Servicing Criteria as set forth
      on
      Exhibit K to the Sale and Servicing Agreement that contains (A) a statement
      by
      such party of its responsibility for assessing compliance with the Relevant
      Servicing Criteria, (B) a statement that such party used the Servicing Criteria
      to assess compliance with the Relevant Servicing Criteria, (C) such party’s
      assessment of compliance with the Relevant Servicing Criteria as of and for
      the
      fiscal year covered by the Form 10-K required to be filed pursuant to Section
      3.19(b) of the Sale and Servicing Agreement, including, if there has been any
      material instance of noncompliance with the Relevant Servicing Criteria, a
      discussion of each such failure and the nature and status thereof, and (D)
      a
      statement that a registered public accounting firm has issued an attestation
      report on such party’s assessment of compliance with the Relevant Servicing
      Criteria as of and for such period. The Depositor may rely on such certification
      provided by the Paying Agent in signing a Sarbanes Certification and causing
      such certification to be filed with the Commission. 

     

    
      
        
        

      

      
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    (ii) When
      the
      Paying Agent (and any Subservicer or Subcontractor engaged by such party) submit
      their assessments, such parties will also at such time include the assessment
      (and attestation pursuant to subsection (b) of this Section 6.14) of each
      Subservicer or Subcontractor engaged by such party and shall indicate what
      Relevant Servicing Criteria will be addressed in any such reports prepared
      by
      any such Subservicer or Subcontractor.

     

    (b) By
      March
      15 of each year, commencing in March [     ], the
      Paying Agent, at its own expense, shall cause, and shall cause any Subservicer
      or Subcontractor engaged by it to cause, at its own expense, a registered public
      accounting firm (which may also render other services to the Securities
      Administrator) that is a member of the American Institute of Certified Public
      Accountants to furnish a report to the Sponsor, the Depositor, the Securities
      Administrator and the Owner Trustee, to the effect that (A) it has obtained
      a
      representation regarding certain matters from the management of such party,
      which includes an assertion that such party has complied with the Relevant
      Servicing Criteria, and (B) on the basis of an examination conducted by such
      firm in accordance with standards for attestation engagements issued or adopted
      by the PCAOB, it is expressing an opinion as to whether such party’s compliance
      with the Relevant Servicing Criteria was fairly stated in all material respects,
      or it cannot express an overall opinion regarding such party’s assessment of
      compliance with the Relevant Servicing Criteria. In the event that an overall
      opinion cannot be expressed, such registered public accounting firm shall state
      in such report why it was unable to express such an opinion. Such report must
      be
      available for general use and not contain restricted use language.

     

    (c) Each
      of
      the Indenture
      Trustee and the Paying Agent shall promptly notify the Sponsor, the Owner
      Trustee, the
      Securities Administrator
      and the
      Depositor (i) of any legal proceedings pending against the Indenture Trustee
      or
      the Paying Agent of the type described in Item 1117 (§
      229.1117) of
      Regulation AB and (ii) if the Indenture Trustee or the Paying Agent shall become
      (but only to the extent not previously disclosed to the Master Servicer and
      the
      Depositor) at any time an affiliate of any of the parties listed on Exhibit
      E to
      the Trust Agreement.

     

    (d) The
      Paying Agent shall give prior written notice to the Sponsor, the Owner Trustee,
      the Securities Administrator and the Depositor of the appointment of any
      Subcontractor by such party and a written description (in form and substance
      satisfactory to the Sponsor and the Depositor) of the role and function of
      each
      Subcontractor utilized by such party specifying (A) the identity of each such
      Subcontractor and (B) which elements of the servicing criteria set forth under
      Item 1122(d) of Regulation AB will be addressed in assessments of compliance
      provided by each such Subcontractor. The Paying Agent agrees to indemnify the
      Sponsor, the Depositor, the Issuer, the Securities Administrator and the Master
      Servicer, and each of their respective directors, officers, employees and agents
      and hold each of them harmless from and against any losses, damages, penalties,
      fines, forfeitures, legal fees and expenses and related costs, judgments, and
      any other costs, fees and expenses that any of them may sustain arising out
      of
      or based upon the engagement of any Subcontractor in violation of this
      subsection or any failure by the Paying Agent, to deliver any information,
      report, certification, accountants’ letter or other material when and as
      required under this Section 6.14.

     

    
      
        
        

      

      
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    (e) The
      Paying Agent shall deliver to the Sponsor, the Depositor, the Securities
      Administrator and the Owner Trustee on or before March 15 of each year,
      commencing on March 15, [     ], an Officer’s
      Certificate, certifying that with respect to the period ending December 31
      of
      the prior year: (i) such Servicing Officer has reviewed the activities of such
      party during the preceding calendar year or portion thereof and its performance
      under this Indenture, (ii) to the best of such Servicing Officer’s knowledge,
      based on such review, the Paying Agent has performed and fulfilled its duties,
      responsibilities and obligations under this Indenture, 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 Paying Agent has failed to perform any of its duties,
      responsibilities and obligations under this Indenture, 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. 

     

    ARTICLE
      VII

     

    NOTEHOLDERS’
      LISTS AND REPORTS

     

    Section
      7.01. Issuer
      To Furnish Names and Addresses of Noteholders.
      The
      Note Registrar will furnish or cause to be furnished to the Securities
      Administrator and the Indenture Trustee or at the Indenture Trustee’s or the
      Securities Administrator’s direction (a) not more than five days after each
      Record Date, a list, in such form as the Indenture Trustee or the Securities
      Administrator may reasonably require, of the names and addresses of the Holders
      of Notes as of such Record Date, and (b) at such other times as the Indenture
      Trustee or the Securities Administrator may request in writing, within 30 days
      after receipt by the Note Registrar of any such request, a list of similar
      form
      and content as of a date not more than 10 days prior to the time such list
      is
      furnished; provided,
      however,
      that so
      long as the Indenture Trustee or the Securities Administrator is the Note
      Registrar, no such list shall be required to be furnished to the applicable
      Person.

     

    Section
      7.02. Preservation
      of Information; Communications to Noteholders. (a)
      The Note
      Registrar shall preserve, in as current a form as is reasonably practicable,
      the
      names and addresses of the Holders of Notes contained in the most recent list
      furnished to the Indenture Trustee and the Securities Administrator as provided
      in Section 7.01 and the names and addresses of Holders of Notes received by
      the
      Securities Administrator in its capacity as Note Registrar. The Indenture
      Trustee may destroy any list furnished to it as provided in Section 7.01 upon
      receipt of a new list so furnished. If three or more Noteholders, or one or
      more
      Holders of a Class of Notes evidencing not less than 25% of the Outstanding
      Balance thereof (hereinafter referred to as “Applicants”), apply in writing to
      the Securities Administrator, and such application states that the Applicants
      desire to communicate with other holders with respect to their rights under
      this
      Indenture or under the Notes, then the Securities Administrator shall, within
      five Business Days after the receipt of such application, afford such Applicants
      access, during normal business hours, to the current list of Holders. Every
      Holder, by receiving and holding a Note, agrees with the Issuer, the Securities
      Administrator, the Note Registrar and the Indenture Trustee that none of the
      Issuer, the Securities Administrator or the Indenture Trustee shall be held
      accountable by reason of the disclosure of any such information as to the names
      and addresses of the Holders under this Indenture, regardless of the source
      from
      which such information was derived.

     

    
      
        
        

      

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

     

    (c) The
      Issuer, the Indenture Trustee, Securities Administrator and the Note Registrar
      shall have the protection of TIA Section 3l2(c).

     

    Section
      7.03. Reports
      by Issuer.
      (a) The
      Issuer shall:

     

    (i) file
      with
      the Indenture Trustee and the Commission in accordance with the rules and
      regulations prescribed from time to time by the Commission such additional
      information, documents and reports with respect to compliance by the Issuer
      with
      the conditions and covenants of this Indenture as may be required from time
      to
      time by such rules and regulations. Delivery of such information, documents
      and
      reports to the Indenture Trustee is for informational purposes only and the
      Indenture Trustee’s receipt of such reports shall not constitute constructive
      notice of any information contained therein or determinable from information
      contained therein, including the Issuer’s compliance with any of its covenants
      hereunder (as to which the Indenture Trustee is entitled to rely exclusively
      on
      Officers’ Certificates); and

     

    (ii) supply
      to
      the Indenture Trustee and the Securities Administrator (and the Securities
      Administrator on behalf of the Indenture Trustee shall transmit by mail to
      all
      Noteholders described in TIA Section 313(c) to the extent required by applicable
      law) such summaries of any information, documents and reports required to be
      filed by the Issuer pursuant to clause (i) of this Section 7.03(a) and by rules
      and regulations prescribed from time to time by the Commission.

     

    (b) Unless
      the Issuer otherwise determines, the fiscal year of the Issuer shall end on
      December 31 of each year.

     

    Section
      7.04. Reports
      by Indenture Trustee.
      If
      required by TIA Section 313(a), within 60 days after each March 1, beginning
      with March 1, [     ], the Indenture Trustee shall mail
      to each Noteholder as required by TIA Section 313(c) a brief report dated as
      of
      such date that complies with TIA Section 313(a). The Indenture Trustee also
      shall comply with TIA Section 313(b).

     

    
      
        
        

      

      
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    A
      copy of
      each report at the time of its mailing to Noteholders shall be filed by the
      Indenture Trustee with the Commission and each securities exchange, if any,
      on
      which the Notes are listed. The Issuer shall notify the Indenture Trustee if
      and
      when the Notes are listed on any securities exchange.

     

    ARTICLE
      VIII

     

    ACCOUNTS,
      DISBURSEMENTS AND RELEASES

     

    Section
      8.01. Collection
      of Money.
      Except
      as otherwise expressly provided herein, the Securities Administrator may demand
      payment or delivery of, and shall receive and collect, directly and without
      intervention or assistance of any fiscal agent or other intermediary, all money
      and other property payable to or receivable by the Indenture Trustee or the
      Securities Administrator pursuant to this Indenture. The Securities
      Administrator shall apply all such money received by it as provided in this
      Indenture. Except as otherwise expressly provided in this Indenture, if any
      default occurs in the making of any payment or performance under any agreement
      or instrument that is part of the Collateral, the Securities Administrator
      may
      take such action as may be appropriate to enforce such payment or performance,
      including the institution and prosecution of appropriate Proceedings. Any such
      action shall be without prejudice to any right to claim a Default or Event
      of
      Default under this Indenture and any right to proceed thereafter as provided
      in
      Article V.

     

    Section
      8.02. Note
      Payment Account and Certificate Distribution Account. (a)
      On or
      prior to the Closing Date, the Securities Administrator shall establish and
      maintain the Note Payment Account in the name of
      [     ], as Securities Intermediary for the benefit of
      the Indenture Trustee and the Noteholders, and the Certificate Distribution
      Account in the name of the Issuer, as provided in Article V of the Sale and
      Servicing Agreement and Article IV of the Trust Agreement, respectively.

     

    (b) On
      each
      Payment Date, including a Redemption Date, the Paying Agent (or, if the
      Securities Administrator acts as Paying Agent, the Securities Administrator)
      shall distribute all amounts on deposit in the Note Payment Account as provided
      in Section 5.01 of the Sale and Servicing Agreement.

     

    (c) On
      each
      Payment Date, including a Redemption Date, the Securities Administrator hereby
      authorizes the Owner Trustee or the Certificate Paying Agent, as applicable,
      to
      make the distributions from the Certificate Distribution Account as required
      pursuant to Section 4.05 of the Sale and Servicing Agreement and Section 4.02
      of
      the Trust Agreement.

     

    Section
      8.03. General
      Provisions Regarding Accounts.
      Funds
      in the Note Payment Account maintained by the Securities Administrator shall
      be
      invested as provided in the Sale and Servicing Agreement.

     

    
      
        
        

      

      
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    Section
      8.04. Release
      of Collateral. (a)
      Subject
      to the payment of its fees and expenses pursuant to Section 6.07, the Indenture
      Trustee may, and when required by the provisions of this Indenture and the
      Sale
      and Servicing Agreement shall, execute instruments to release property from
      the
      lien of this Indenture, or convey the Indenture Trustee’s interest in the same,
      in a manner and under circumstances that are not inconsistent with the
      provisions of this Indenture. No party relying upon an instrument executed
      by
      the Indenture Trustee as provided in this Article VIII shall be bound to
      ascertain the Indenture Trustee’s authority, inquire into the satisfaction of
      any conditions precedent or see to the application of any monies.

     

    (b) At
      such
      time as the Securities Administrator notifies the Indenture Trustee in writing
      that there are no Notes outstanding and all sums due to the Noteholders pursuant
      to the Sale and Servicing Agreement and any fees and expenses of the Indenture
      Trustee, the Master Servicer, the Securities Administrator, the Custodian,
      the
      Owner Trustee and the Servicers pursuant to this Indenture or any other
      Operative Agreement have been paid, the Indenture Trustee shall release any
      remaining portion of the Collateral that secured the Notes from the lien of
      this
      Indenture, and the Securities Administrator shall release to the Issuer or
      any
      other Person entitled thereto any funds then on deposit in the Note Payment
      Account. The Indenture Trustee shall release property from the lien of this
      Indenture and the Securities Administrator shall release the remaining funds
      on
      deposit in the Note Payment Account pursuant to this subsection (b) only upon
      receipt of an Issuer Request accompanied by an Officer’s Certificate, an Opinion
      of Counsel and (if required by the TIA) Independent Certificates in accordance
      with TIA Sections 314(c) and 314(d)(1) meeting the applicable requirements
      of
      Section 11.01 hereof each of which documents and opinions shall be at the
      expense of the Issuer.

     

    ARTICLE
      IX

     

    SUPPLEMENTAL
      INDENTURES

     

    Section
      9.01. Supplemental
      Indentures Without Consent of Noteholders.
      (a)
      Without the consent of the Holders of any Notes but with prior notice to each
      Rating Agency, the Issuer, the Securities Administrator and the Indenture
      Trustee, when authorized by an Issuer Order, at any time and from time to time,
      may enter into one or more indentures supplemental hereto (which shall conform
      to the provisions of the Trust Indenture Act as in force at the date of the
      execution thereof), in form satisfactory to the Securities Administrator, for
      any of the following purposes:

     

    (i) to
      correct or amplify the description of any property at any time subject to the
      lien of this Indenture, or better to assure, convey and confirm unto the
      Indenture Trustee any property subject or required to be subjected to the lien
      of this Indenture, or to subject to the lien of this Indenture additional
      property;

     

    (ii) to
      evidence the succession, in compliance with the applicable provisions hereof,
      of
      another person to the Issuer, and the assumption by any such successor of the
      covenants of the Issuer herein and in the Notes contained;

     

    
      
        
        

      

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

     

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

     

    (v) (A)
      to
      cure any ambiguity, (B) to correct or supplement any provision herein or in
      any
      supplemental indenture that may be inconsistent with any other provisions herein
      or in any supplemental indenture or to conform the provisions hereof to those
      of
      an Offering Document, (C) to obtain or maintain a rating for a Class of Notes
      from a nationally recognized statistical rating organization, (D) to make any
      other provisions with respect to matters or questions arising under this
      Indenture; provided,
      however,
      that no
      such supplemental indenture entered into pursuant to clause (D) of this
      subparagraph (v) shall adversely affect in any material respect the interests
      of
      any Holder not consenting thereto; 

     

    (vi) to
      evidence and provide for the acceptance of the appointment hereunder by a
      successor trustee with respect to the Notes and to add to or change any of
      the
      provisions of this Indenture as shall be necessary to facilitate the
      administration of the trusts hereunder by more than one trustee, pursuant to
      the
      requirements of Article VI; or

     

    (vii) to
      modify, eliminate or add to the provisions of this Indenture to such extent
      as
      shall be necessary to effect the qualification of this Indenture under the
      TIA
      or under any similar federal statute hereafter enacted and to add to this
      Indenture such other provisions as may be expressly required by the
      TIA.

     

    The
      Indenture Trustee is hereby authorized to join in the execution of any such
      supplemental indenture and to make any further appropriate agreements and
      stipulations that may be therein contained.

     

    (b) A
      letter
      from each Rating Agency addressed and delivered to the Indenture Trustee to
      the
      effect that any supplemental indenture entered into pursuant to this Section
      9.01 will not cause the then-current ratings on the Notes to be qualified,
      reduced or withdrawn shall constitute conclusive evidence that such amendment
      does not adversely affect in any material respect the interests of the
      Noteholders.

     

    Section
      9.02. Supplemental
      Indentures with Consent of Noteholders.
      The
      Issuer, the Securities Administrator and the Indenture Trustee, when authorized
      by an Issuer Order, also may, with prior notice to each Rating Agency and with
      the consent of the Holders of not less than 66-2/3% of the Outstanding Balance
      of the Notes, by Act of such Holders delivered to the Issuer and the Securities
      Administrator, enter into an indenture or indentures supplemental hereto for
      the
      purpose of adding any provisions to or changing in any manner or eliminating
      any
      of the provisions of this Indenture or of modifying in any manner the rights
      of
      the Holders of the Notes under this Indenture; provided, however,
      that no
      such supplemental indenture shall, without the consent of the Holder of each
      Outstanding Note affected thereby (i) change the date of payment of any
      installment of principal of or interest on any Note, or reduce the principal
      amount thereof, the interest rate thereon, change the provisions of this
      Indenture relating to the application of collections on, or the proceeds of
      the
      sale of, the Collateral to payment of principal of or interest on the Notes,
      or
      change any place of payment where, or the coin or currency in which, any Note
      or
      the interest thereon is payable, or impair the right to institute suit for
      the
      enforcement of the provisions of this Indenture requiring the application of
      funds available therefor, as provided in Article V, to the payment of any such
      amount due on the Notes on or after the respective due dates thereof (or, in
      the
      case of exercise of the Optional Notes Purchase Right or the Clean-up Call
      Right, on or after the Redemption Date), (ii) alter the obligations of the
      Master Servicer to make a Monthly Advance or alter the master servicing
      standards set forth in the Sale and Servicing Agreement or the Servicing
      Agreement, (iii) reduce the aforesaid percentages of Notes the Holders of
      which are required to consent to any such supplemental indenture or to waive
      compliance with any provision of this Indenture, without the consent of the
      Holders of all Notes affected thereby, (iv) modify or alter the provisions
      of the proviso to the definition of the term “Outstanding”, (v) reduce the
      percentage of the Outstanding Amount of the Notes required to direct the
      Indenture Trustee to direct the Issuer to sell or liquidate the Collateral
      pursuant to Section 5.04, (vi) modify any provision of this Section except
      to increase any percentage specified herein or to provide that certain
      additional provisions of this Indenture or the Operative Agreements cannot
      be
      modified or waived without the consent of the Holder of each Outstanding Note
      affected thereby, (vii) modify any of the provisions of this Indenture in
      such manner as to affect the calculation of the amount of any payment of
      interest or principal due on any Note on any Payment Date or (viii) permit
      the
      creation of any lien ranking prior to or on a parity with the lien of this
      Indenture with respect to any part of the Collateral or, except as otherwise
      permitted or contemplated herein, terminate the lien of this Indenture on any
      property at any time subject hereto or deprive the Holder of any Note of the
      security provided by the lien of this Indenture.

     

    
      
        
        

      

      
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    The
      Indenture Trustee shall be entitled to conclusively rely on an Opinion of
      Counsel (at the expense of the party requesting the supplemental indenture)
      to
      determine whether or not any Notes would be affected by any supplemental
      indenture and any such determination shall be conclusive upon the Holders of
      all
      Notes, whether theretofore or thereafter authenticated and delivered
      hereunder.

     

    In
      connection with requesting the consent of the Noteholders pursuant to this
      Section, the Issuer shall mail to the Holders of the Notes to which such
      amendment or supplemental indenture relates a notice setting forth in general
      terms the substance of such supplemental indenture. It shall not be necessary
      for any Act of Noteholders under this Section to approve the particular form
      of
      any proposed supplemental indenture, but it shall be sufficient if such Act
      shall approve the substance thereof.

     

    Promptly
      after the execution by the Issuer and the Indenture Trustee of any supplemental
      indenture pursuant to this Section, the Securities Administrator shall mail
      or
      shall cause to be mailed to the Holders of the Notes to which such amendment
      or
      supplemental indenture relates and each Rating Agency a notice setting forth
      in
      general terms the substance of such supplemental indenture. Any failure of
      the
      Securities Administrator to mail such notice, or any defect therein, shall
      not,
      however, in any way impair or affect the validity of any such supplemental
      indenture.

     

    
      
        
        

      

      
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    Section
      9.03. Execution
      of Supplemental Indentures.
      In
      executing, or permitting the additional trusts created by, any supplemental
      indenture permitted by this Article IX or the modification thereby of the trusts
      created by this Indenture, the Securities Administrator and the Indenture
      Trustee shall be entitled to receive, and subject to Section 6.02, shall be
      fully protected in relying upon, an Opinion of Counsel to the effect provided
      in
      Section 9.08. The Indenture Trustee may, but shall not be obligated to, enter
      into any such supplemental indenture that affects the Indenture Trustee’s own
      rights, duties, liabilities or immunities under this Indenture or
      otherwise.

     

    Section
      9.04. Effect
      of Supplemental Indenture.
      Upon
      the execution of any supplemental indenture pursuant to the provisions hereof,
      this Indenture shall be and shall be deemed to be modified and amended in
      accordance therewith with respect to the Notes affected thereby, and the
      respective rights, limitations of rights, obligations, duties, liabilities
      and
      immunities under this Indenture of the Indenture Trustee, the Issuer and the
      Holders of the Notes shall thereafter be determined, exercised and enforced
      hereunder subject in all respects to such modifications and amendments, and
      all
      the terms and conditions of any such supplemental indenture shall be and be
      deemed to be part of the terms and conditions of this Indenture for any and
      all
      purposes.

     

    Section
      9.05. Conformity
      with Trust Indenture Act.
      Every
      amendment of this Indenture and every supplemental indenture executed pursuant
      to this Article IX shall conform to the requirements of the Trust Indenture
      Act
      as then in effect so long as this Indenture shall then be qualified under the
      Trust Indenture Act.

     

    Section
      9.06. Reference
      in Notes to Supplemental Indentures.
      Notes
      authenticated and delivered after the execution of any supplemental indenture
      pursuant to this Article IX may, and if required by the Securities Administrator
      shall, bear a notation in a form approved by the Securities Administrator as
      to
      any matter provided for in such supplemental indenture. If the Issuer or the
      Securities Administrator shall so determine, new Notes so modified as to
      conform, in the opinion of the Indenture Trustee and the Issuer, to any such
      supplemental indenture may be prepared and executed by the Issuer and
      authenticated and delivered by the Securities Administrator in exchange for
      Outstanding Notes.

     

    Section
      9.07. Amendments
      to Trust Agreement.
      The
      Indenture Trustee shall, upon Issuer Order, consent to any proposed amendment
      to
      the Trust Agreement or an amendment to or waiver of any provision of any other
      document relating to the Trust Agreement, such consent to be given without
      the
      necessity of obtaining the consent of the Holders of any Notes upon satisfaction
      of the requirements under Section 10.01 of the Trust Agreement.

     

    Section
      9.08. Opinion
      of Counsel.
      In
      connection with any supplemental indenture pursuant to this Article IX, the
      Indenture Trustee shall be entitled to receive, at the expense of the Issuer
      or
      requesting party, as applicable, an Opinion of Counsel to the effect that such
      supplemental indenture is authorized or permitted by this Indenture and that
      all
      conditions precedent to the execution of such supplemental indenture in
      accordance with the relevant provisions of this Article IX have been
      met.

     

    
      
        
        

      

      
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    Nothing
      in this Section shall be construed to require that any Person obtain the consent
      of the Indenture Trustee to any amendment or waiver or any provision of any
      document where the making of such amendment or the giving of such waiver without
      obtaining the consent of the Indenture Trustee is not prohibited by this
      Indenture or by the terms of the document that is the subject of the proposed
      amendment or waiver.

     

    ARTICLE
      X

     

    REDEMPTION
      OR CALL OF THE NOTES

     

    Section
      10.01. Redemption
      or Call of the Notes . (a)
      TMI will
      have an assignable option to call all outstanding Notes, in whole but not in
      part, on any Payment Date on or after the Optional Notes Purchase Date in the
      manner specified herein and subject to the provisions of Section 10.03 of the
      Sale and Servicing Agreement. Upon exercise of the Optional Notes Purchase
      Right, the Notes shall remain outstanding and neither the lien of the Indenture
      with respect to the Collateral securing the Notes nor the Notes shall be
      terminated. The Notes shall not merge with the security therefor, but shall
      remain validly outstanding. Upon exercise of the Optional Notes Purchase Right,
      the Issuer shall execute, and the Securities Administrator shall authenticate
      and prepare for delivery on the Optional Notes Purchase Date new Notes
      evidencing Book-Entry Notes or Definitive Notes (as directed by the holder
      of
      the Optional Notes Purchase Right), and the Issuer shall issue such new Notes
      to
      the holder of the Optional Notes Purchase Right against receipt by the
      Securities Administrator of immediately available funds in an amount not less
      than the Note Purchase Price on the Optional Notes Purchase Date.

     

    (b) The
      Notes
      are subject to early redemption upon the exercise of a Clean-Up Call Right
      pursuant to Section 10.01(a) of the Sale and Servicing Agreement.

     

    (c) If
      a
      Clean-Up Call Right is to be exercised pursuant to Section 10.01(a) of the
      Sale
      and Servicing Agreement, Thornburg Mortgage Home Loans, Inc. (or its assignee)
      or [     ], as applicable, shall furnish notice of such
      exercise to the Securities Administrator and the Indenture Trustee not later
      than fifteen (15) days prior to the applicable Clean-Up Call Date. The party
      exercising such Clean-Up Call Right shall deposit the Clean-Up Call Purchase
      Price by 10:00 A.M. New York City time on the Business Day prior to the
      applicable Redemption Date with the Securities Administrator which shall
      promptly deposit it into the Note Payment Account, whereupon, upon the
      furnishing of a notice complying with Section 10.02 hereof to each Holder of
      the
      Notes, all such applicable Notes shall be due and payable on the applicable
      Redemption Date. The Issuer shall furnish each Rating Agency and the Indenture
      Trustee and the Securities Administrator notice of any exercise of a Clean-Up
      Call Right or the Optional Notes Purchase Right in accordance with Section
      10.02
      hereof. 

     

    Section
      10.02. Form
      of Redemption or Call Notice.
      Notice
      of redemption or call under Section 10.01 shall be given by the Securities
      Administrator by first-class mail, postage prepaid, or by facsimile mailed
      or
      transmitted not later than ten (10) days prior to the applicable Clean-Up Call
      Date or Optional Notes Purchase Date, as applicable, to each then Holder of
      each
      Class of Notes to be redeemed or called, as of the close of business on the
      Record Date preceding such Clean-Up Call Date or Optional Notes Purchase Date,
      as applicable, at such Holder’s address or facsimile number appearing in the
      Note Register.

     

    
      
        
        

      

      
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    All
      notices of redemption or call shall state:

     

    (i) the
      Clean-Up Call Date or Optional Notes Purchase Date, as applicable;

     

    (ii) the
      Clean-Up Call Purchase Price or Note Purchase Price, as applicable;

     

    (iii) that
      (A) on the Optional Notes Purchase Date, (1) the Note Purchase Price will
      become due and payable only with respect to the then Holders of Notes and that
      the amount payable in respect of the called Notes shall be limited to the Note
      Purchase Price therefor and (2) that interest thereon shall cease to accrue
      on
      the date specified on the notice for the benefit of, and that payment of the
      Note Purchase Price will be made to, the Persons whose names appear as the
      registered holders thereof on the Note Register as of the Record Date applicable
      to such Optional Notes Purchase Date and identified in such notice of call
      or
      (B) on a Clean-Up Call Date, (1) interest thereon shall cease to
      accrue on the date specified in the notice and (2) the payment of all other
      amounts described in Section 10.01(a) of the Sale and Servicing Agreement will
      be made; and

     

    (iv) the
      place
      where such Notes are to be surrendered for payment of the Clean-Up Call Price
      or
      Note Purchase Price (which shall be the office or agency of the Issuer to be
      maintained as provided in Section 3.02).

     

    Notice
      of
      redemption or call of the Notes shall be given by the Securities Administrator
      in the name of the Issuer in the case of a Clean-Up Call or the Person effecting
      the Optional Notes Purchase Right, as applicable, and at the expense of the
      Person exercising the Clean-Up Call Right or the Optional Notes Purchase Right,
      as applicable. Failure to give notice as provided in this Section 10.02, or
      any
      defect therein, to any Holder of any Note shall not impair or affect the
      validity of the redemption or call of any other Note.

     

    
      
        
        

      

      
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    Section
      10.03. Notes
      Payable on Clean-Up Call Date or Optional Notes Purchase Date.Each
      Class of Notes to be redeemed or called shall, following notice of redemption
      or
      call as required under Section 10.02 hereof on the applicable Clean-Up Call
      Date
      or Optional Notes Purchase Date become due and payable at the Clean-Up Call
      Purchase Price or Note Purchase Price and (except pursuant to Section 10.01(a)
      or unless Thornburg Mortgage Home Loans, Inc. (or its assignee) or
      [     ], as applicable, shall default in the payment of
      the Clean-Up Call Purchase Price or the Note Purchase Price, as applicable)
      no
      interest shall accrue thereon (for the benefit of the prior Holder of a Note
      in
      the case of the Optional Notes Purchase Date) for any period after the date
      to
      which accrued interest is calculated for purposes of calculating the Clean-Up
      Call Purchase Price or Note Purchase Price. The Issuer may not redeem any Class
      of Notes unless (i) all outstanding obligations under such Class of Notes have
      been paid in full and (ii) each of the Indenture Trustee and the Securities
      Administrator have been paid all amounts to which they are entitled
      hereunder.

     

    ARTICLE
      XI

     

    MISCELLANEOUS

     

    Section
      11.01. Compliance
      Certificates and Opinions, etc.
      Upon
      any application or request by the Issuer to the Indenture Trustee to take any
      action under any provision of this Indenture, the Issuer shall furnish to the
      Indenture Trustee: (i) an Officer’s Certificate stating that all conditions
      precedent, if any, provided for in this Indenture relating to the proposed
      action have been complied with, (ii) an Opinion of Counsel stating that in
      the
      opinion of such counsel all such conditions precedent, if any, have been
      complied with, and (iii) (if required by the TIA) an Independent
      Certificate from a firm of certified public accountants meeting the applicable
      requirements of this Section, except that, in the case of any such application
      or request as to which the furnishing of such documents is specifically required
      by any provision of this Indenture, no additional certificate or opinion need
      be
      furnished.

     

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

     

    (i) a
      statement that each signatory of such certificate or opinion has read or has
      caused to be read such covenant or condition and the definitions herein relating
      thereto;

     

    (ii) a
      brief
      statement as to the nature and scope of the examination or investigation upon
      which the statements or opinions contained in such certificate or opinion are
      based;

     

    (iii) a
      statement that, in the opinion of each such signatory, such signatory has made
      such examination or investigation as is necessary to enable such signatory
      to
      express an informed opinion as to whether or not such covenant or condition
      has
      been complied with; and

     

    
      
        
        

      

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

     

    Section
      11.02. Form
      of Documents Delivered to Indenture Trustee.
      In any
      case where several matters are required to be certified by, or covered by an
      opinion of, any specified Person, it is not necessary that all such matters
      be
      certified by, or covered by the opinion of, only one such Person, or that they
      be so certified or covered by only one document, but one such Person may certify
      or give an opinion with respect to some matters and one or more other such
      Persons as to other matters, and any such Person may certify or give an opinion
      as to such matters in one or several documents.

     

    Any
      certificate or opinion of an Authorized Officer of the Issuer may be based,
      insofar as it relates to legal matters, upon a certificate or opinion of, or
      representations by, counsel, unless such officer knows, or in the exercise
      of
      reasonable care should know, that the certificate or opinion or representations
      with respect to the matters upon which such officer’s certificate or opinion is
      based are erroneous. Any such certificate of an Authorized Officer or Opinion
      of
      Counsel may be based, insofar as it relates to factual matters, upon a
      certificate or opinion of, or representations by, an officer or officers of
      TMI,
      the Seller, the Initial Seller, the Master Servicer, a Servicer, the Depositor,
      the Issuer or the Securities Administrator, stating that the information with
      respect to such factual matters is in the possession of such Person, unless
      such
      counsel knows, or in the exercise of reasonable care should know, that the
      certificate or opinion or representations with respect to such matters are
      erroneous.

     

    Where
      any
      Person is required to make, give or execute two or more applications, requests,
      consents, certificates, statements, opinions or other instruments under this
      Indenture, they may, but need not, be consolidated and form one
      instrument.

     

    Whenever
      in this Indenture, in connection with any application or certificate or report
      to the Indenture Trustee, it is provided that the Issuer shall deliver any
      document as a condition of the granting of such application, or as evidence
      of
      the Issuer’s compliance with any term hereof, it is intended that the truth and
      accuracy, at the time of the granting of such application or at the effective
      date of such certificate or report (as the case may be), of the facts and
      opinions stated in such document shall in such case be conditions precedent
      to
      the right of the Issuer to have such application granted or to the sufficiency
      of such certificate or report. The foregoing shall not, however, be construed
      to
      affect the Indenture Trustee’s right to rely upon the truth and accuracy of any
      statement or opinion contained in any such document as provided in Article
      VI.

     

    Section
      11.03. Acts
      of Noteholders.
      (a) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given or taken by Noteholders may be
      embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such Noteholders in person or by agents duly appointed in
      writing; and except as herein otherwise expressly provided such action shall
      become effective when such instrument or instruments are delivered to the
      Indenture Trustee and, where it is hereby expressly required, to the Issuer.
      Such instrument or instruments (and the action embodied therein and evidenced
      thereby) are herein sometimes referred to as the “Act” of the Noteholders
      signing such instrument or instruments. Proof of execution of any such
      instrument or of a writing appointing any such agent shall be sufficient for
      any
      purpose of this Indenture and (subject to Section 6.01) conclusive in favor
      of
      the Indenture Trustee and the Issuer, if made in the manner provided in this
      Section.

     

    
      
        
        

      

      
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    (b) The
      fact
      and date of the execution by any person of any such instrument or writing may
      be
      proved in any manner that the Indenture Trustee or the Securities Administrator,
      as applicable, deems sufficient.

     

    (c) The
      ownership of Notes shall be proved by the Note Register.

     

    (d) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by the Holder of any Notes shall bind the Holder of every Note issued
      upon the registration thereof or in exchange therefor or in lieu thereof, in
      respect of anything done, omitted or suffered to be done by the Indenture
      Trustee or the Issuer in reliance thereon, whether or not notation of such
      action is made upon such Note.

     

    Section
      11.04. Notices,
      etc., to Indenture Trustee, Issuer and Rating Agencies.
      Any
      request, demand, authorization, direction, notice, consent, waiver or Act of
      Noteholders or other documents provided or permitted by this Indenture shall
      be
      in writing and if such request, demand, authorization, direction, notice,
      consent, waiver or act of Noteholders is to be made upon, given or furnished
      to
      or filed with:

     

    (i) the
      Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for
      every purpose hereunder if made, given, furnished or filed in writing to or
      with
      the Indenture Trustee at its Corporate Trust Office, or

     

    (ii) the
      Securities Administrator by the Indenture Trustee, any Noteholder or by the
      Issuer shall be sufficient for every purpose hereunder if made, given, furnished
      or filed in writing to or with the Securities Administrator at its Corporate
      Trust Office, or

     

    (iii) the
      Issuer by the Indenture Trustee or any Noteholder shall be sufficient for every
      purpose hereunder if in writing and mailed first-class, postage prepaid to
      the
      Issuer addressed to the address provided in the Sale and Servicing Agreement,
      or
      at any other address previously furnished in writing to the Indenture Trustee
      by
      the Issuer. The Issuer shall promptly transmit any notice received by it from
      the Noteholders to the Indenture Trustee.

     

    Notices
      required to be given to the Rating Agencies by the Issuer, the Indenture
      Trustee, the Securities Administrator or the Owner Trustee shall be in writing,
      personally delivered or mailed by certified mail, return receipt requested,
      to
      the addresses provided in the Sale and Servicing Agreement or such other address
      as shall be designated by written notice to the other parties.

     

    Section
      11.05. Notices
      to Noteholders; Waiver.
      Where
      this Indenture provides for notice to Noteholders of any event, such notice
      shall be sufficiently given (unless otherwise herein expressly provided) if
      in
      writing and mailed, first-class, postage prepaid to each Noteholder affected
      by
      such event, at such Holder’s address as it appears on the Note Register, not
      later than the latest date, and not earlier than the earliest date, prescribed
      for the giving of such notice. In any case where notice to Noteholders is given
      by mail, neither the failure to mail such notice nor any defect in any notice
      so
      mailed to any particular Noteholder shall affect the sufficiency of such notice
      with respect to other Noteholders, and any notice that is mailed in the manner
      herein provided shall conclusively be presumed to have been duly
      given.

     

    
      
        
        

      

      
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    Where
      this Indenture provides for notice in any manner, such notice may be waived
      in
      writing by any Person entitled to receive such notice, either before or after
      the event, and such waiver shall be the equivalent of such notice. Waivers
      of
      notice by Noteholders shall be filed with the Securities Administrator but
      such
      filing shall not be a condition precedent to the validity of any action taken
      in
      reliance upon such a waiver.

     

    In
      case,
      by reason of the suspension of regular mail service as a result of a strike,
      work stoppage or similar activity, it shall be impractical to mail notice of
      any
      event to Noteholders when such notice is required to be given pursuant to any
      provision of this Indenture, then any manner of giving such notice as shall
      be
      satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving
      of such notice.

     

    Where
      this Indenture provides for notice to the Rating Agencies, failure to give
      such
      notice shall not affect any other rights or obligations created hereunder,
      and
      shall not under any circumstance constitute a Default or Event of
      Default.

     

    Section
      11.06. Conflict
      with Trust Indenture Act.
      If any
      provision hereof limits, qualifies or conflicts with another provision hereof
      that is required to be included in this Indenture by any of the provisions
      of
      the Trust Indenture Act, such required provision shall control.

     

    The
      provisions of TIA Sections 310 through 317 that impose duties on any person
      (including the provisions automatically deemed included herein unless expressly
      excluded by this Indenture) are a part of and govern this Indenture, whether
      or
      not physically contained herein.

     

    Section
      11.07. Effect
      of Headings and Table of Contents.
      The
      Article and Section headings herein and the Table of Contents are for
      convenience only and shall not affect the construction hereof.

     

    Section
      11.08. Successors
      and Assigns.
      All
      covenants and agreements in this Indenture and the Notes by the Issuer shall
      bind its successors and assigns, whether so expressed or not. All agreements
      of
      the Indenture Trustee in this Indenture shall bind its successors, co-trustees
      and agents.

     

    Section
      11.09. Severability.
      In case
      any provision in this Indenture or in the Notes shall be invalid, illegal or
      unenforceable, the validity, legality and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

     

    Section
      11.10. Benefits
      of Indenture and Consents of Noteholders.
      Nothing
      in this Indenture or in the Notes, express or implied, shall give to any Person,
      other than the parties hereto and their successors hereunder, the Owner Trustee
      and the Noteholders, any benefit or any legal or equitable right, remedy or
      claim under this Indenture. Each Noteholder and Note Owner, by acceptance of
      a
      Note or, in the case of a Note Owner, a beneficial interest in a Note, consents
      to and agrees to be bound by the terms and conditions of this
      Indenture.

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    Section
      11.11. Legal
      Holidays.
      In any
      case where the date on which any payment is due shall not be a Business Day,
      then (notwithstanding any other provision of the Notes or this Indenture)
      payment need not be made on such date, but may be made on the next succeeding
      Business Day with the same force and effect as if made on the date on which
      nominally due, and no interest shall accrue for the period from and after any
      such nominal date.

     

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

     

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

     

    Section
      11.14. Recording
      of Indenture.
      If this
      Indenture is subject to recording in any appropriate public recording offices,
      such recording is to be effected by the Issuer and at its expense accompanied
      by
      an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
      other counsel reasonably acceptable to the Indenture Trustee) to the effect
      that
      such recording is necessary either for the protection of the Noteholders or
      any
      other Person secured hereunder or for the enforcement of any right or remedy
      granted to the Indenture Trustee under this Indenture.

     

    Section
      11.15. Trust
      Obligations.
      (a) No
      recourse may be taken, directly or indirectly, with respect to the obligations
      of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
      this Indenture or any certificate or other writing delivered in connection
      herewith or therewith, against (i) the Indenture Trustee or the Owner Trustee
      in
      their respective individual capacities, (ii) any owner of a beneficial ownership
      interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
      director, employee or agent of the Indenture Trustee or the Owner Trustee in
      its
      respective individual capacity, any holder of a beneficial ownership interest
      in
      the Issuer, the Owner Trustee or the Indenture Trustee or of any successor
      or
      assign of the Indenture Trustee or the Owner Trustee in its individual capacity,
      except as any such Person may have expressly agreed (it being understood that
      the Indenture Trustee and the Owner Trustee have no such obligations in their
      respective individual capacities) and except that any such partner, owner or
      beneficiary shall be fully liable, to the extent provided by applicable law,
      for
      any unpaid consideration for stock, unpaid capital contribution or failure
      to
      pay any installment or call owing to such entity. For all purposes of this
      Indenture, in the performance of any duties or obligations of the Issuer
      hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
      of, the terms and provisions of Articles V, VI and VII of the Trust
      Agreement.

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

     

    (b)
      In
      addition, (i) this Indenture is executed and delivered by
      [     ], not individually or personally but solely as
      Owner Trustee, in the exercise of the powers and authority conferred and vested
      in it, (ii) each of the representations, undertakings and agreements herein
      made
      on the part of the Issuer is made and intended not as personal representations,
      undertakings and agreements by [     ] but is made and
      intended for the purpose of binding only the Trust, (iii) nothing herein
      contained shall be construed as creating any liability on
      [     ], individually or personally, to perform any
      covenant either expressed or implied contained herein, all such liability,
      if
      any, being expressly waived by the Indenture Trustee and by any Person claiming
      by, through or under the Indenture Trustee, and (iv) under no circumstances
      shall [     ] be personally liable for the payment of
      any indebtedness or expenses of the Issuer or be liable for the breach or
      failure of any obligation, representation, warranty or covenant made or
      undertaken by the Issuer under this Indenture or the Operative
      Agreements.

     

    Section
      11.16. No
      Petition.
      The
      Indenture Trustee, by entering into this Indenture, and each Noteholder, by
      accepting a Note or interest therein, hereby covenant and agree that they will
      not at any time institute against the Depositor or the Issuer, or join in any
      institution against the Depositor or the Issuer of, any bankruptcy,
      reorganization, arrangement, insolvency or liquidation proceedings, or other
      proceedings under any United States federal or state bankruptcy or similar
      law
      in connection with any obligations relating to the Notes, this Indenture or
      any
      of the other Operative Agreements; provided,
      however,
      that
      nothing herein shall be deemed to prohibit the Indenture Trustee from filing
      proofs of claim for itself and on behalf of the Noteholders.

     

    Section
      11.17. Inspection.
      The
      Issuer agrees that, on reasonable prior notice, it will permit any
      representative of the Indenture Trustee, during the Issuer’s normal business
      hours, to examine all the books of account, records, reports and other papers
      of
      the Issuer, to make copies and extracts therefrom, to cause such books to be
      audited by Independent certified public accountants, and to discuss the Issuer’s
      affairs, finances and accounts with the Issuer’s officers, employees and
      Independent certified public accountants, all at such reasonable times and
      as
      often as may be reasonably requested. The Indenture Trustee shall, and shall
      cause its representatives to, hold in confidence all such information except
      to
      the extent disclosure may be required by law (and all reasonable applications
      for confidential treatment are unavailing) and except to the extent that the
      Indenture Trustee may reasonably determine that such disclosure is consistent
      with its obligations hereunder.

     

    Section
      11.18. Agreements
      of Noteholders.
      Each
      Noteholder, by accepting a Note, hereby acknowledges and agrees that, to the
      extent that the Noteholders are deemed to have any interest in any assets of
      the
      Depositor that constitute the assets of the trust for any other series of
      securities with respect to which the Depositor acts as depositor:

     

    (a) the
      interest of the Noteholders in such assets is subordinate to claims or rights
      of
      the holders of such other series of securities to such assets; and

     

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

     

    (b) this
      Indenture constitutes a subordination agreement for purposes of Section 510(a)
      of the Bankruptcy Code.

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

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

     

     

    THORNBURG
      MORTGAGE SECURITIES TRUST [     ], as
      Issuer

    

    By:
      [     ],

    not
      in
      its individual capacity but solely as

    Owner
      Trustee

     

    By:
      _______________________________

    Name:

    Title:
      

     

    [     ],
      not in its individual capacity but solely as Securities
      Administrator

    

    

    By:
      _______________________________

    Name:
      

    Title:
      

    

    [     ],
      not in its individual capacity but solely as Indenture Trustee

    

    

    By:
      __________________________________

    Name:
      

    Title:
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-1

     

    FORMS
      OF
      CLASS [     ] NOTES

    

     

    

     

    

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-2

     

    FORMS
      OF
      PRIVATELY OFFERED NOTES

    

    

    

    

    

    
      
        
        

      

      
        A-2-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B-1

     

    FORM
      OF
      RULE 144A (QIB) INVESTMENT LETTER

     

    (FOR
      PRIVATELY OFFERED NOTES)

     

     

      
        

      

    

    date

    [     ]

    as
      Note
      Registrar

    [     ]

    

    
      	
            	Re:	
              Thornburg
                Mortgage Securities Trust[     ]

              Mortgage Backed Notes, [Class
                [__]
                Notes]               
                

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above-referenced Notes (the “Notes”) we
      certify that (a) we understand that the Notes have not been registered under
      the
      Securities Act of 1933, as amended (the “Act”), or any state securities laws and
      are being transferred to us in a transaction that is exempt from the
      registration requirements of the Act and any such laws, (b) we have such
      knowledge and experience in financial and business matters that we are capable
      of evaluating the merits and risks of investments in the Notes, (c) we have
      had
      the opportunity to ask questions of and receive answers from Thornburg Mortgage
      Securities Corporation (the “Depositor”) concerning the purchase of the Notes
      and all matters relating thereto or any additional information deemed necessary
      to our decision to purchase the Notes, (d) we have not, nor has anyone acting
      on
      our behalf, offered, transferred, pledged, sold or otherwise disposed of the
      Notes or any interest in the Notes, or solicited any offer to buy, transfer,
      pledge or otherwise dispose of the Notes or any interest in the Notes from
      any
      person in any manner, or made any general solicitation by means of general
      advertising or in any other manner, or taken any other action that would
      constitute a distribution of the Notes under the Act or that would render the
      disposition of the Notes a violation of Section 5 of the Act or any state
      securities laws or require registration pursuant thereto, and we will not act,
      or authorize any person to act, in such manner with respect to the Notes, (e)
      we
      are a “qualified institutional buyer” as that term is defined in Rule 144A under
      the Act (“Rule 144A”) and we are aware that the sale to us is being made in
      reliance on Rule 144A and (f) our purchase of the Notes has been duly authorized
      under, and not directly or indirectly in contravention of, any law, charter,
      trust instrument or other operative document, investment guidelines or list
      of
      permissible or impermissible investments applicable to us.

     

    We
      are
      acquiring the Notes for our own account or for resale pursuant to Rule 144A
      and
      understand that such Notes may be resold, pledged or transferred only (1) to
      a
      person reasonably believed to be a qualified institutional buyer that purchases
      for its own account or for the account of a qualified institutional buyer to
      whom notice is given that the resale, pledge or transfer is being made in
      reliance on Rule 144A or (2) pursuant to another exemption from registration
      under the Act.

     

    We
      hereby
      acknowledge that, under the terms of the Indenture (the “Indenture”) among
      Thornburg Mortgage Securities Trust [     ], as Issuer,
      [     ], as Securities Administrator, and
      [     ], as Indenture Trustee, dated as of
      [     ], no sale or transfer of any beneficial
      ownership interest in the Notes shall be permitted to be made to any person
      (i)
      except in the case of transfers of Privately Offered Notes, in conjunction
      with
      a simultaneous sale or transfer of an equal Percentage Interest in (x) all
      other
      classes of Privately Offered Notes then outstanding and (y) the Ownership
      Certificates (and any sale or transfer of any beneficial ownership interest
      in
      the Ownership Certificates may only be effectuated in conjunction with a
      simultaneous sale or transfer of an equal Percentage Interest in all classes
      of
      the Privately Offered Notes outstanding) unless we or any prospective transferee
      furnishes to the Note Registrar an opinion of counsel concluding that the
      transfer will not cause the Trust to become subject to federal income tax as
      a
      corporation and (ii) in the case of all Notes, only if the Note Registrar has
      received a certificate from such transferee in the form hereof. We also hereby
      acknowledge that, under the terms of the Indenture, no transfer of less than
      a
      10% Percentage Interest in the Privately Offered Notes shall be
      permitted.

     

    
      
        
        

      

      
        B-1-1

        
          

        

      

      
        
        

      

    

     

    In
      addition, we hereby certify that we are not an employee benefit plan or other
      retirement arrangement subject to Section 406 of the Employee Retirement Income
      Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Internal
      Revenue Code of 1986, as amended (the “Code”) or to any substantially similar
      law, the trustee of any such plan or a person acting on behalf of any such
      plan
      nor a person using the assets of any such plan.

     

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

     

    Very
      truly yours,

     

    ____________________________________

    Print
      Name of Purchaser

     

    By:_________________________________

    Name:

    Title:

     

    
      
        
        

      

      
        B-1-2

        
          

        

      

      
        
        

      

    

    ANNEX
      1
      TO EXHIBIT B-1

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Buyers Other Than Registered Investment Companies]

     

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

     

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

     

    2. In
      connection with purchases by the Buyer, the Buyer is a “qualified institutional
      buyer” as that term is defined in Rule 144A under the Securities Act of 1933
      (“Rule 144A”) because (i) the Buyer owned and/or invested on a discretionary
      basis $_____________1 
      in
      securities (except for the excluded securities referred to below) as of the
      end
      of the Buyer’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A) and (ii) the Buyer satisfies the criteria in the
      category marked below.

     

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

     

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

     

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

     

    ___ BROKER-DEALER.
      The Buyer is a dealer registered pursuant to Section 15 of the Securities
      Exchange Act of 1934.

    

      

    

    
      
        
          
            	
                    1

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

                  

          

           

        

      

    

    
      
        
        

      

      
        B-1-3

        
          

        

      

      
        
        

      

    

     

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

     

    ___ STATE
      OR
      LOCAL PLAN. The Buyer is a plan established and maintained by a State, its
      political subdivisions, or any agency or instrumentality of the State or its
      political subdivisions, for the benefit of its employees.

     

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

     

    ___ INVESTMENT
      ADVISOR. The Buyer is an investment adviser registered under the Investment
      Advisers Act of 1940.

     

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

     

    ___ BUSINESS
      DEVELOPMENT COMPANY. The Buyer is a business development company as defined
      in
      Section 202(a)(22) of the Investment Advisers Act of 1940.

     

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

     

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

     

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

     

    
      
        
        

      

      
        B-1-4

        
          

        

      

      
        
        

      

    

     

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

     

    
      	
               

              ____

              Yes

            	
               

              ____

              No

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

            

    

     

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

     

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

     

                                                                                                                     
          

    Print
      Name of Buyer

     

    By:                                                                                                              
        

    Name:

    Title:

     

    Date:                                                                                                             

     

    
      
        
        

      

      
        B-1-5

        
          

        

      

      
        
        

      

    

    ANNEX
      2
      TO EXHIBIT B-1

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Buyers That Are Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows in connection with the Rule 144A
      investment representation to which this certification is attached:

     

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

     

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

     

    ____ The
      Buyer
      owned $__________ in securities (other that 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 advisor
      or investment advisers that are affiliated (by virtue of being majority owned
      subsidiaries of the same parent or because one investment adviser is a majority
      owned subsidiary of the other).

     

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

     

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

     

    
      
        
        

      

      
        B-1-6

        
          

        

      

      
        
        

      

       

    

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

     

                                                                                                                   
      

    PRINT
      NAME OF BUYER

     

    BY:                                                                                                         

    NAME:

    TITLE:

     

    IF
      AN
      ADVISER:

     

                                                                                                                   
      

    PRINT
      NAME OF BUYER

     

    DATE:

    

    
      
        
        

      

      
        B-1-7

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B-2

     

    FORM
      OF
      ACCREDITED INVESTOR INVESTMENT LETTER

    (For
      Privately Offered Notes)

     

     

      
        

      

    

    date

    [     ]

    as
      Note
      Registrar

    [     ]

     

    
      	
            	Re:	
              Thornburg
                Mortgage Securities Trust [     ]

              
                Mortgage
                  Backed Notes, [Class [     ]
                  Notes] 

              

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above-referenced Notes (the “Notes”) we
      certify that (a) we understand that the Notes have not been registered under
      the
      Securities Act of 1933, as amended (the “Act”), or any state securities laws and
      are being transferred to us in a transaction that is exempt from the
      registration requirements of the Act and any such laws, (b) we have had the
      opportunity to ask questions of and receive answers from [Thornburg Securities
      Company] (the “Depositor”) concerning the purchase of the Notes and all matters
      relating thereto or any additional information deemed necessary to our decision
      to purchase the Notes, (c) we have not, nor has anyone acting on our behalf,
      offered, transferred, pledged, sold or otherwise disposed of the Notes or any
      interest in the Notes, or solicited any offer to buy, transfer, pledge or
      otherwise dispose of the Notes or any interest in the Notes from any person
      in
      any manner, or made any general solicitation by means of general advertising
      or
      in any other manner, or taken any other action that would constitute a
      distribution of the Notes under the Act or that would render the disposition
      of
      the Notes a violation of Section 5 of the Act or any state securities laws
      or
      require registration pursuant thereto, and we will not act, or authorize any
      person to act, in such manner with respect to the Notes, (d) we are an
“accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) and
      have such knowledge and experience in financial and business matters and, in
      particular, in such matters related to the Notes, such that we are capable
      of
      evaluating the merits and risks of an investment in the Notes and we are aware
      that the sale to us is being made in reliance on Rule 144A and (e) our purchase
      of the Notes has been duly authorized under, and not directly or indirectly
      in
      contravention of any law, charter, trust instrument or other operative document,
      investment guidelines or list of permissible or impermissible investments
      applicable to us. 

     

    We
      hereby
      acknowledge that, under the terms of the Indenture (the “Indenture”) among
      Thornburg Mortgage Securities Trust [     ], as Issuer,
      [     ], as Securities Administrator, and
      [     ], as Indenture Trustee, dated as of
      [     ], no sale or transfer of any beneficial
      ownership interest in the Notes shall be permitted to be made to any person
      (i)
      except in the case of transfers of Privately Offered Notes, in conjunction
      with
      a simultaneous sale or transfer of an equal Percentage Interest in (x) all
      other
      classes of Privately Offered Notes then outstanding and (y) the Ownership
      Certificates (and any sale or transfer of any beneficial ownership interest
      in
      the Ownership Certificates may only be effectuated in conjunction with a
      simultaneous sale or transfer of an equal Percentage Interest in all classes
      of
      the Privately Offered Notes outstanding) unless we or any prospective transferee
      furnishes to the Note Registrar an opinion of counsel concluding that the
      transfer will not cause the Trust to become subject to federal income tax as
      a
      corporation and (ii) in the case of all Notes, only if the Note Registrar has
      received a certificate from such transferee in the form hereof. We also hereby
      acknowledge that, under the terms of the Indenture, no transfer of less than
      a
      10% Percentage Interest in the Privately Offered Notes shall be
      permitted.

     

    
      
        
        

      

      
        B-2-1

        
          

        

      

      
        
        

      

    

     

    In
      addition, we hereby certify that we are not an employee benefit plan or other
      retirement arrangement subject to Section 406 of the Employee Retirement Income
      Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Internal
      Revenue Code of 1986, as amended (the “Code”) or to any substantially similar
      law, the trustee of any such plan or a person acting on behalf of any such
      plan
      nor a person using the assets of any such plan.

     

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

     

    Very
      truly yours,

     

    ___________________________________

    Print
      Name of Purchaser

     

    By:_________________________________

    Name:

    Title:

     

    
      
        
        

      

      
        B-2-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

     

    FORM
      OF
      ERISA TRANSFER AFFIDAVIT

    FOR
      CLASS
      A NOTES

    
       

       

        
          

        

      

      date

       

      
        
          	
                  STATE
                    OF NEW YORK

                	
                  )

                	 
	
                   

                	
                  )

                	
                     
                    ss.: 

                
	
                  COUNTY
                    OF NEW YORK  

                	
                  )

                	 

        

         

      

    

    
      	
            	Re:	
              Thornburg
                Mortgage Securities Trust [     ]

              
                Mortgage
                  Backed Notes  

              

            

    

     

    1. The
      undersigned is the ______________________ of (the “Investor”), a [corporation
      duly organized] and existing under the laws of __________, on behalf of which
      he
      makes this affidavit.

     

    2. [For
      the
      transfer of Class [     ]Notes other than Retained
      Class [     ]Notes] [The Investor’s acquisition and
      holding of the Notes for, or on behalf of, a Benefit Plan will not result in
      a
      non-exempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code which is not covered under Prohibited Transaction Class Exemption
      (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, the non-fiduciary
      service provider exemption under Section 408(b)(17) of ERISA and Section
      4975(d)(20) of the Code or some other applicable exemption, and will not result
      in a non-exempt violation of any Similar Law.]

     

    [For
      the
      transfer of Retained Class [     ] Notes to a
      transferee other than TMI or an affiliate of TMI] [At the date of transfer,
      the
      Notes are rated investment grade or better, the Investor believes that such
      Notes are properly treated as indebtedness with substantial equity features
      for
      purposes of the Plan Assets Regulations (based in part on the issuance of an
      opinion of counsel of nationally recognized standing in the United States
      experienced in such matters that, under the relevant facts and circumstances,
      such Notes will be classified as debt instruments for U.S. federal income tax
      purposes) and the Investor’s acquisition and holding of the Notes will not
      result in a non-exempt prohibited transaction under Section 406 of ERISA or
      Section 4975 of the Code which is not covered under Prohibited Transaction
      Class
      Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE
      96-23
      or some
      other applicable statutory or administrative exemption, and will not cause
      a
      non-exempt
      violation of any Similar Law.]

     

    3. The
      Investor hereby acknowledges that under the terms of the Indenture among
      Thornburg Mortgage Securities Trust [     ], as Issuer,
      [     ], as Securities Administrator, and
      [     ], as Indenture Trustee, dated as of
      [     ], no transfer of any Class
      [     ] Note shall be permitted to be made to any
      person unless the Securities Administrator has received an affidavit from such
      transferee in the form hereof.

     

    
      
        
        

      

      
        C-1-1

        
          

        

      

      
        
        

      

    

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

     

    ________________________________________

    [Investor]

     

    By:_____________________________________

    Name:

    Title:

     

    ATTEST:

     

    _____________________________

     

    
      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	
                 

              	
                )

              	
                   
                  ss.: 

              
	
                COUNTY
                  OF NEW YORK  

              	
                )

              	 

      

       

    

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

     

    Subscribed
      and sworn before me this _____ day of ___________ 20___.

     

    __________________________________

    NOTARY
      PUBLIC

     

    My
      commission expires the

    ____
      day
      of __________, 20__.

     

    
      
        
        

      

      
        C-1-2Form
        of Indenture for HELOC Transactions

     

    INDENTURE

     

    between

     

    THORNBURG
      MORTGAGE SECURITIES TRUST [__],

    Issuer

    

    and

    

    [_________],

    Indenture
      Trustee

     

    Dated
      as
      of [_____] [__], 20[__]

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

    
      	 	 	
              Page

            
	
              ARTICLE
                ONE

            
	
              DEFINITIONS
                AND INCORPORATION BY REFERENCE

            
	 
	
              Section
                1.01.

            	
              Definitions

            	
              2

            
	
              Section
                1.02.

            	
              Incorporation
                by Reference of Trust Indenture Act.

            	
              7

            
	
              Section
                1.03.

            	
              Rules
                of Construction

            	
              7

            
	 	 	 
	
              ARTICLE
                TWO

            
	
              THE
                NOTES

            
	 
	
              Section
                2.01.

            	
              Form

            	
              8

            
	
              Section
                2.02.

            	
              Execution,
                Authentication and Delivery

            	
              8

            
	
              Section
                2.03.

            	
              Limitations
                on Transfer of the Notes

            	
              9

            
	
              Section
                2.04.

            	
              Registration;
                Registration of Transfer and Exchange

            	
              10

            
	
              Section
                2.05.

            	
              Mutilated,
                Destroyed, Lost or Stolen Notes

            	
              11

            
	
              Section
                2.06.

            	
              Persons
                Deemed Owners

            	
              12

            
	
              Section
                2.07.

            	
              Payment
                of Principal and Interest

            	
              12

            
	
              Section
                2.08.

            	
              Cancellation

            	
              13

            
	
              Section
                2.09.

            	
              Release
                of Collateral

            	
              13

            
	
              Section
                2.10.

            	
              Book-Entry
                Notes

            	
              14

            
	
              Section
                2.11.

            	
              Notices
                to Clearing Agency

            	
              15

            
	
              Section
                2.12.

            	
              Definitive
                Notes

            	
              15

            
	
              Section
                2.13.

            	
              Tax
                Treatment

            	
              15

            
	 	 	 
	
              ARTICLE
                THREE

            
	
              COVENANTS

            
	 
	
              Section
                3.01.

            	
              Payment
                of Principal and Interest

            	
              16

            
	
              Section
                3.02.

            	
              Maintenance
                of Office or Agency

            	
              16

            
	
              Section
                3.03.

            	
              Money
                for Payments to be Held in Trust

            	
              16

            
	
              Section
                3.04.

            	
              Existence

            	
              18

            
	
              Section
                3.05.

            	
              Protection
                of Collateral

            	
              18

            
	
              Section
                3.06.

            	
              Opinions
                as to Collateral

            	
              19

            
	
              Section
                3.07.

            	
              Performance
                of Obligations; Servicing of the Assistance Loans

            	
              19

            
	
              Section
                3.08.

            	
              Negative
                Covenants

            	
              20

            
	
              Section
                3.09.

            	
              Annual
                Statement as to Compliance

            	
              21

            
	
              Section
                3.10.

            	
              Treatment
                of Notes as Debt for Tax Purposes

            	
              21

            
	
              Section
                3.11.

            	
              [Reserved].

            	
              21

            
	
              Section
                3.12.

            	
              No
                Other Business

            	
              22

            
	
              Section
                3.13.

            	
              No
                Borrowing

            	
              22

            
	
              Section
                3.14.

            	
              [Reserved].

            	
              22

            
	
              Section
                3.15.

            	
              Guarantees,
                Loans, Advances and Other Liabilities

            	
              22

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    
      	
              Section
                3.16.

            	
              Capital
                Expenditures

            	
              22

            
	
              Section
                3.17.

            	
              Removal
                of Administrator

            	
              22

            
	
              Section
                3.18.

            	
              Restricted
                Payments

            	
              22

            
	
              Section
                3.19.

            	
              Notice
                of Rapid Amortization Events and Events of Servicing
                Termination

            	
              22

            
	
              Section
                3.20.

            	
              Further
                Instruments and Acts

            	
              23

            
	
              Section
                3.21.

            	
              Covenants
                of the Issuer

            	
              23

            
	
              Section
                3.22.

            	
              Representations
                and Warranties of the Issuer

            	
              23

            
	 	 	 
	
              ARTICLE
                FOUR

            
	
              SATISFACTION
                AND DISCHARGE

            
	 
	
              Section
                4.01.

            	
              Satisfaction
                and Discharge of Indenture

            	
              24

            
	
              Section
                4.02.

            	
              Application
                of Trust Money

            	
              25

            
	
              Section
                4.03.

            	
              Repayment
                of Moneys Held by Paying Agent

            	
              25

            
	 	 	 
	
              ARTICLE
                FIVE

            
	
              REMEDIES

            
	 
	
              Section
                5.01.

            	
              Remedies

            	
              26

            
	
              Section
                5.02.

            	
              Limitation
                of Suits

            	
              26

            
	
              Section
                5.03.

            	
              Unconditional
                Rights of Noteholders To Receive Principal and Interest

            	
              27

            
	
              Section
                5.04.

            	
              Restoration
                of Rights and Remedies

            	
              27

            
	
              Section
                5.05.

            	
              Rights
                and Remedies Cumulative

            	
              27

            
	
              Section
                5.06.

            	
              Delay
                or Omission Not a Waiver

            	
              27

            
	
              Section
                5.07.

            	
              Control
                by Insurer and Noteholders

            	
              27

            
	
              Section
                5.08.

            	
              Undertaking
                for Costs

            	
              28

            
	
              Section
                5.09.

            	
              Waiver
                of Stay or Extension Laws

            	
              28

            
	
              Section
                5.10.

            	
              Action
                on Notes

            	
              28

            
	
              Section
                5.11.

            	
              Performance
                and Enforcement of Certain Obligations.

            	
              28

            
	
              Section
                5.12.

            	
              Subrogation

            	
              29

            
	
              Section
                5.13.

            	
              Preference
                Claims.

            	
              29

            
	
              Section
                5.14.

            	
              Noteholder
                Rights

            	
              30

            
	
              Section
                5.15.

            	
              Insurer’s
                Rights Regarding Actions, Proceedings or Investigations

            	
              30

            
	 	 	 
	
              ARTICLE
                SIX

            
	
              THE
                INDENTURE TRUSTEE

            
	 
	
              Section
                6.01.

            	
              Duties
                of Indenture Trustee

            	
              32

            
	
              Section
                6.02.

            	
              Rights
                of Indenture Trustee

            	
              34

            
	
              Section
                6.03.

            	
              Individual
                Rights of Indenture Trustee

            	
              35

            
	
              Section
                6.04.

            	
              Indenture
                Trustee’s Disclaimer

            	
              35

            
	
              Section
                6.05.

            	
              Notice
                of Rapid Amortization Events and Events of Servicing
                Termination

            	
              35

            
	
              Section
                6.06.

            	
              Reports
                by Indenture Trustee to Holders

            	
              35

            
	
              Section
                6.07.

            	
              Compensation
                and Indemnity

            	
              35

            
	
              Section
                6.08.

            	
              Replacement
                of Indenture Trustee

            	
              36

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    
      	
              Section
                6.09.

            	
              Successor
                Indenture Trustee by Merger

            	
              37

            
	
              Section
                6.10.

            	
              Appointment
                of Co-Indenture Trustee or Separate Indenture Trustee

            	
              37

            
	
              Section
                6.11.

            	
              Eligibility;
                Disqualification

            	
              39

            
	
              Section
                6.12.

            	
              Representations
                and Warranties

            	
              39

            
	
              Section
                6.13.

            	
              Preferential
                Collection of Claims Against Issuer.

            	
              39

            
	 	 	 
	
              ARTICLE
                SEVEN

            
	
              NOTEHOLDERS’
                LISTS AND REPORTS

            
	 
	
              Section
                7.01.

            	
              Issuer
                To Furnish Indenture Trustee Names and Addresses of
                Noteholders

            	
              40

            
	
              Section
                7.02.

            	
              Preservation
                of Information; Communications to Noteholders

            	
              40

            
	
              Section
                7.03.

            	
              Reports
                by Issuer

            	
              40

            
	
              Section
                7.04.

            	
              Reports
                by Indenture Trustee

            	
              41

            
	 	 	 
	
              ARTICLE
                EIGHT

            
	
              ACCOUNTS,
                DISBURSEMENTS AND RELEASES

            
	 
	
              Section
                8.01.

            	
              Collection
                of Money

            	
              41

            
	
              Section
                8.02.

            	
              Trust
                Accounts and Certificate Account

            	
              41

            
	
              Section
                8.03.

            	
              General
                Provisions Regarding Accounts

            	
              42

            
	
              Section
                8.04.

            	
              Release
                of Collateral

            	
              42

            
	 	 	 
	
              ARTICLE
                NINE

            
	
              SUPPLEMENTAL
                INDENTURES

            
	 
	
              Section
                9.01.

            	
              Supplemental
                Indentures Without Consent of Noteholders

            	
              42

            
	
              Section
                9.02.

            	
              Supplemental
                Indentures with Consent of Noteholders

            	
              44

            
	
              Section
                9.03.

            	
              Execution
                of Supplemental Indentures

            	
              44

            
	
              Section
                9.04.

            	
              Effect
                of Supplemental Indenture

            	
              45

            
	
              Section
                9.05.

            	
              Conformity
                with Trust Indenture Act

            	
              45

            
	
              Section
                9.06.

            	
              Reference
                in Notes to Supplemental Indentures

            	
              45

            
	
              Section
                9.07.

            	
              Opinion
                of Counsel

            	
              45

            
	 	 	 
	
              ARTICLE
                TEN

            
	
              REDEMPTION
                OF NOTES

            
	 
	
              Section
                10.01.

            	
              Redemption

            	
              45

            
	
              Section
                10.02.

            	
              Form
                of Redemption Notice

            	
              46

            
	
              Section
                10.03.

            	
              Notes
                Payable on Optional Redemption Date

            	
              46

            
	 	 	 
	
              ARTICLE
                ELEVEN

            
	
              MISCELLANEOUS

            
	 
	
              Section
                11.01.

            	
              Compliance
                Certificates and Opinions, etc

            	
              46

            
	
              Section
                11.02.

            	
              Form
                of Documents Delivered to Indenture Trustee

            	
              47

            

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    
      	
              Section
                11.03.

            	
              Acts
                of Noteholders

            	
              48

            
	
              Section
                11.04.

            	
              Notices,
                etc., to Indenture Trustee, Issuer, Insurer and Rating
                Agencies

            	
              48

            
	
              Section
                11.05.

            	
              Notices
                to Noteholders; Waiver

            	
              49

            
	
              Section
                11.06.

            	
              Conflict
                with Trust Indenture Act

            	
              50

            
	
              Section
                11.07.

            	
              Effect
                of Headings and Table of Contents

            	
              
                50

              

            
	
              Section
                11.08.

            	
              Successors
                and Assigns

            	
              
                50

              

            
	
              Section
                11.09.

            	
              Severability

            	
              
                50

              

            
	
              Section
                11.10.

            	
              Benefits
                of Indenture and Consents of Noteholders

            	
              
                50

              

            
	
              Section
                11.11.

            	
              Legal
                Holidays

            	
              
                50

              

            
	
              Section
                11.12.

            	
              Governing
                Law

            	
              50

            
	
              Section
                11.13.

            	
              Counterparts

            	
              51

            
	
              Section
                11.14.

            	
              Recording
                of Indenture

            	
              51

            
	
              Section
                11.15.

            	
              Trust
                Obligations

            	
              51

            
	
              Section
                11.16.

            	
              No
                Petition

            	
              52

            
	
              Section
                11.17.

            	
              Inspection

            	
              52

            

    

     

    EXHIBITS

     

    
      	
              EXHIBIT
                A

            	
              Forms
                of Notes

            

    

    
      	
              EXHIBIT
                B-1

            	
              Form
                of Rule 144A Investment Letter

            

    

    
      	
              EXHIBIT
                B-2

            	
              Form
                of Non-Rule 144 Investment Letter

            

    

    
      	
              EXHIBIT
                C

            	
              Form
                of ERISA Transfer Affidavit

            

    

    
 

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    This
      INDENTURE, dated as of [_____] [__], 20[__], is by and between THORNBURG
      MORTGAGE SECURITIES TRUST [__],
      a
      Delaware statutory trust (the “Issuer”), and [_________] a [national banking
      association], as indenture trustee and not in its individual capacity (the
      “Indenture Trustee”).

     

    Each
      party agrees as follows for the benefit of the other party and for the equal
      and
      ratable benefit of the Holders of the Issuer’s variable rate Class [__]
      Notes
      (the “Notes”):

     

    As
      security for the payment and performance by the Issuer of its obligations under
      this Indenture and the Notes, the Issuer has agreed to assign the Collateral
      (as
      defined below) to the Indenture Trustee on behalf of the Noteholders and the
      Insurer.

     

    [_____]
      (the “Insurer”) has issued and delivered a financial guaranty insurance policy
      for the Notes, dated the Closing Date (the “Policy”), pursuant to which the
      Insurer guarantees the Insured Amounts and Preference Amount (as defined in
      the
      Policy).

     

    As
      an
      inducement to the Insurer to issue and deliver the Policy, the Issuer and the
      Insurer have executed and delivered the Insurance and Indemnity Agreement,
      dated
      as of [_____] [__], 20[__] (as amended from time to time, the “Insurance
      Agreement”), among the Insurer, the Issuer, Thornburg Mortgage Securities
      Corporation and the Indenture Trustee.

     

    As
      an
      additional inducement to the Insurer to issue the Policy, and as security for
      the performance by the Issuer of the Insurer Issuer Secured Obligations and
      as
      security for the performance by the Issuer of the Indenture Trustee Issuer
      Secured Obligations, the Issuer has agreed to grant and assign the Collateral
      (as defined below) to the Indenture Trustee for the benefit of the Issuer
      Secured Parties, as their respective interests may appear.

     

    GRANTING
      CLAUSE

     

    The
      Issuer hereby Grants to the Indenture Trustee at the Closing Date, as Indenture
      Trustee for the benefit of the Holders of the Notes, all of the Issuer’s right,
      title and interest, whether now owned or hereafter acquired, in and to: (i)
      the
      Trust Estate (as defined in the Sale and Servicing Agreement); (ii) the Issuer’s
      rights and benefits but none of its obligations under the Sale and Servicing
      Agreement (including the Issuer’s right to cause the Depositor to repurchase
      Mortgage Loans from the Issuer under the circumstances described therein);
      (iii)
      the Issuer’s rights and benefits but none of its obligations under the Custodial
      Agreements; (iv) the Issuer’s rights and benefits but none of its obligations
      under the Administration Agreement; (v) the Issuer’s rights and benefits but
      none of its obligations under the Mortgage Loan Sale Agreement; (vi) the Trust
      Accounts, all amounts and property in the Trust Accounts from time to time,
      and
      the Security Entitlements to all Financial Assets credited to the Trust Accounts
      from time to time; (vii) all other property of the Trust from time to time;
      and
      (viii) all present and future claims, demands, causes of action and choses
      in
      action in respect of any or all of the foregoing and all payments on or under
      and all proceeds of every kind and nature whatsoever in respect of any or all
      of
      the foregoing, including all proceeds of the conversion thereof, voluntary
      or
      involuntary, into cash or other liquid property, all cash proceeds, accounts,
      accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit
      accounts, insurance proceeds, condemnation awards, rights to payment of any
      and
      every kind and other forms of obligations and receivables, instruments and
      other
      property which at any time constitute all or part of or are included in the
      proceeds of any of the foregoing (collectively, the “Collateral”).

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    The
      foregoing Grant is made in trust to secure the payment of principal of and
      interest on, and any other amounts owing in respect of, the Notes, and to secure
      (i) the payment of all amounts due on the Notes in accordance with their terms,
      (ii) the payment of all other sums payable under the Indenture with respect
      to
      the Notes, and (iii) compliance with the provisions of this Indenture, all
      as
      provided in this Indenture.

     

    The
      Indenture Trustee, as indenture trustee on behalf of the Holders of the Notes,
      acknowledges such Grant, accepts the trusts under this Indenture in accordance
      with the provisions of this Indenture and agrees to perform its duties required
      in this Indenture to the best of its ability to the end that the interests
      of
      the Holders of the Notes may be adequately and effectively
      protected.

     

    ARTICLE
      ONE

     

    DEFINITIONS
      AND INCORPORATION BY REFERENCE

     

    Section
      1.01. Definitions.
      (a) Except as otherwise specified herein or as the context may otherwise
      require, the following terms have the respective meanings set forth below for
      all purposes of this Indenture.

     

    Act:
      The
      meaning specified in Section 11.03(a).

     

    Authorized
      Officer:
      With
      respect to the Issuer, any officer of the Owner Trustee who is authorized to
      act
      for the Owner Trustee in matters relating to the Issuer and who is identified
      on
      the list of Authorized Officers delivered by the Owner Trustee to the Indenture
      Trustee on the Closing Date (as such list may be modified or supplemented from
      time to time thereafter) and, so long as the Administration Agreement is in
      effect, any Vice President, Assistant Vice President, Trust Officer or more
      senior officer of the Administrator who is authorized to act for the
      Administrator in matters relating to the Issuer and to be acted upon by the
      Administrator pursuant to the Administration Agreement and who is identified
      on
      the list of Authorized Officers delivered by the Administrator to the Indenture
      Trustee on the Closing Date (as such list may be modified or supplemented from
      time to time thereafter).

     

    Book-Entry
      Notes:
      Beneficial interests in Notes designated as “Book-Entry Notes” in this
      Indenture, ownership and transfers of which shall be evidenced or made through
      book entries by a Clearing Agency as described in Section 2.10; provided, that
      after the occurrence of a condition whereupon Definitive Notes are to be issued
      to Note Owners, such Book-Entry Notes shall no longer be “Book-Entry
      Notes.”

     

    
      
        
        

      

      
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    Certificate
      of Trust:
      The
      certificate of trust of the Issuer substantially in the form of Exhibit C to
      the
      Trust Agreement.

     

    Clearing
      Agency:
      An
      organization registered as a “clearing agency” pursuant to Section 17A of the
      Exchange Act, as amended. As of the Closing Date, the Clearing Agency shall
      be
      The Depository Trust Company.

     

    Clearing
      Agency Participant:
      A
      broker, dealer, bank, other financial institution or other Person for whom
      from
      time to time a Clearing Agency effects book-entry transfers and pledges of
      securities deposited with the Clearing Agency.

     

    Clearstream:
      Clearstream Banking, société anonyme, and any successor thereto.

     

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

     

    Commission:
      The
      Securities and Exchange Commission.

     

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

     

    Definitive
      Notes:
      The
      meaning specified in Section 2.10.

     

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

     

    Eligible
      Corporation:
      A
      domestic corporation described in section 860L(a)(2) of the Code that (i) is
      not
      the obligor on any debt instrument held as part of the Trust, and (ii) is not
      related, within the meaning of section 860L(g), to any person who is an obligor
      on any debt instrument held as part of the Trust.

     

    Euroclear:
      Euroclear SA/NV, as operator of the Euroclear System.

     

    Event
      of Default:
      The
      meaning specified in Section 5.01.

     

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

     

    Executive
      Officer:
      With
      respect to any corporation or limited liability company, the Chief Executive
      Officer, Chief Operating Officer, Chief Financial Officer, President, Manager,
      Executive Vice President, any Vice President, the Secretary or the Treasurer
      of
      such entity; and with respect to any partnership, any general partner
      thereof.

     

    Global
      Securities:
      The
      meaning specified in Section 2.01(a).

     

    
      
        
        

      

      
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    Grant:
      Mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey,
      assign, transfer, create, and grant a lien upon and a security interest in
      and a
      right of set-off against, deposit, set over and confirm pursuant to this
      Indenture. A Grant of the Collateral or of any other agreement or instrument
      shall include all rights, powers and options (but none of the obligations)
      of
      the granting party thereunder, including the immediate and continuing right
      to
      claim for, collect, receive and give receipt for principal and interest payments
      in respect of the Collateral and all other moneys payable thereunder, to give
      and receive notices and other communications, to make waivers or other
      agreements, to exercise all rights and options, to bring Proceedings in the
      name
      of the granting party or otherwise, and generally to do and receive anything
      that the granting party is or may be entitled to do or receive thereunder or
      with respect thereto.

     

    Holder
      or
Noteholder:
      A
      Person in whose name a Note is registered on the Note Register.

     

    Independent:
      When
      used with respect to any specified Person, that such Person (a) is in fact
      independent of the Issuer, any other obligor on the Notes, the Seller and any
      Affiliate of any of the foregoing Persons, (b) does not have any direct
      financial interest or any material indirect financial interest in the Issuer,
      any such other obligor, the Seller or any Affiliate of any of the foregoing
      Persons and (c) is not connected with the Issuer, any such other obligor, the
      Seller or any Affiliate of any of the foregoing Persons as an officer, employee,
      promoter, underwriter, trustee, partner, director or person performing similar
      functions.

     

    Independent
      Certificate:
      A
      certificate or opinion to be delivered to the Indenture Trustee under the
      circumstances described in, and otherwise complying with, the applicable
      requirements of Section 11.01, made by an Independent appraiser or other expert
      appointed by an Issuer Order and approved by the Indenture Trustee in the
      exercise of reasonable care, and such opinion or certificate shall state that
      the signer has read the definition of “Independent” in this Indenture and that
      the signer is Independent within the meaning thereof.

     

    Issuer:
      Thornburg Mortgage Securities Trust [__], a Delaware statutory trust, or any
      successor and, for purposes of any provision contained herein and required
      by
      the TIA, each other obligor on the Notes.

     

    Issuer
      Order
      or
Issuer
      Request:
      A
      written order or request signed in the name of the Issuer by any one of its
      Authorized Officers and delivered to the Indenture Trustee.

     

    Note:
      The
      Class [__]
      Notes
      issued pursuant to this Indenture, substantially in the form attached hereto
      as
      Exhibit A.

     

    Note
      Depository Agreement:
      The
      agreement dated [_____] [__], 20[__], among the Issuer, the Administrator,
      the
      Indenture Trustee and The Depository Trust Company, as the initial Clearing
      Agency, relating to the Notes.

     

    Note
      Owner or Owner:
      With
      respect to a Book-Entry Note, the Person that is the beneficial owner of such
      Book-Entry Note, as reflected on the books of the Clearing Agency or on the
      books of a Person maintaining an account with such Clearing Agency (directly
      as
      a Clearing Agency Participant or as an indirect participant, in each case in
      accordance with the rules of such Clearing Agency), and with respect to a
      Definitive Note, the Person that is the registered owner of such Note as
      reflected in the Note Register.

     

    
      
        
        

      

      
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    Note
      Register
      and
Note
      Registrar:
      The
      respective meanings specified in Section 2.04.

     

    Officer’s
      Certificate:
      A
      certificate signed by any Authorized Officer of the Issuer, under the
      circumstances described in, and otherwise complying with, the applicable
      requirements of Section 11.01, and delivered to the Indenture Trustee. Unless
      otherwise specified, any reference in this Indenture to an Officer’s Certificate
      shall be to an Officer’s Certificate of any Authorized Officer of the
      Issuer.

     

    Operative
      Agreements:
      This
      Indenture, the Notes, the Residual Certificates, the Certificates of Trust,
      the
      Trust Agreement, the Mortgage Loan Sale Agreement, the Sale and Servicing
      Agreement, the Assignment and Assumption Agreement, the Indemnification
      Agreement, the Administration Agreement, the Insurance Agreement and the
      Policy.

     

    Optional
      Redemption Date:
      As
      defined in the Sale and Servicing Agreement.

     

    Optional
      Redemption Price:
      As
      defined in the Sale and Servicing Agreement.

     

    Outstanding:
      As of
      the date of determination, all Notes theretofore authenticated and delivered
      under this Indenture except:

     

    (i) Notes
      theretofore cancelled by the Note Registrar or delivered to the Note Registrar
      for cancellation;

     

    (ii) Notes
      the
      payment for which money in the necessary amount has been theretofore deposited
      with the Indenture Trustee or any Paying Agent in trust for the Holders of
      such
      Notes (provided,
      however,
      that if
      such Notes are to be redeemed, notice of such redemption has been duly given
      pursuant to this Indenture or provision for such notice has been made,
      satisfactory to the Indenture Trustee); and

     

    (iii) Notes
      in
      exchange for or in lieu of which other Notes have been authenticated and
      delivered pursuant to this Indenture unless proof satisfactory to the Indenture
      Trustee is presented that any such Notes are held by a bona fide
      purchaser;

     

    provided,
      that in determining whether the Holders of the requisite Outstanding Balance
      of
      the Notes have given any request, demand, authorization, direction, notice,
      consent or waiver hereunder or under any Operative Agreement, Notes owned by
      the
      Issuer, any other obligor upon the Notes, the Depositor, the Owner Trustee,
      the
      Indenture Trustee, the Master Servicer, any Servicer, the Administrator or
      any
      Affiliate of any of the foregoing Persons shall be disregarded and deemed not
      to
      be Outstanding, except that, in determining whether the Indenture Trustee shall
      be protected in relying upon any such request, demand, authorization, direction,
      notice, consent or waiver, only Notes that the Indenture Trustee knows to be
      so
      owned shall be so disregarded (unless such action requires the consent, waiver,
      request or demand of 100% of the Outstanding Balance and 100% of the Outstanding
      Balance is registered in the name of one or more of the foregoing entities).
      Notes so owned that have been pledged in good faith may be regarded as
      Outstanding if the pledgee establishes to the satisfaction of the Indenture
      Trustee the pledgee’s right so to act with respect to such Notes and that the
      pledgee is not the Issuer, any other obligor upon the Notes, the Depositor,
      the
      Owner Trustee, the Indenture Trustee, the Master Servicer, any Servicer, the
      Administrator or any Affiliate of any of the foregoing Persons.

     

    
      
        
        

      

      
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    Outstanding
      Balance:
      The
      aggregate Note Principal Amount that is Outstanding as of the date of
      determination.

     

    Paying
      Agent:
      The
      Indenture Trustee or any other Person that meets the eligibility standards
      for
      the Indenture Trustee specified in Section 6.11 and is authorized by the Issuer
      to make payments to and distributions from the Trust Accounts, including
      payments of principal and/or interest on the Notes on behalf of the
      Issuer.

     

    Predecessor
      Note:
      With
      respect to any particular Note, every previous Note evidencing all or a portion
      of the same debt as that evidenced by such particular Note; and, for the purpose
      of this definition, any Note authenticated and delivered under Section 2.05
      in
      lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence
      the same debt as the mutilated, lost, destroyed or stolen Note.

     

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

     

    Prospective
      Owner:
      Each
      prospective purchaser and any subsequent transferee of a Note.

     

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

     

    State:
      Any one
      of the 50 States of the United States of America or the District of
      Columbia.

     

    Sale
      and Servicing Agreement:
      The
      Sale and Servicing Agreement dated as of [_____] [__], 20[__], among the Issuer,
      Thornburg Mortgage Securities Corporation, as depositor, [____________], as
      master servicer, and [_________], as indenture trustee, as such may be amended
      or supplemented from time to time.

     

    Trust
      Indenture Act or TIA:
      The
      Trust Indenture Act of 1939 as in force on the date hereof, unless otherwise
      specifically provided.

     

    (b) Except
      as
      otherwise specified herein or as the context may otherwise require, capitalized
      terms used but not otherwise defined herein shall have the meanings assigned
      to
      them in the Sale and Servicing Agreement.

     

    
      
        
        

      

      
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    Section
      1.02. Incorporation
      by Reference of Trust Indenture Act. 

     

    (a) Whenever
      this Indenture refers to a provision of the TIA, the provision is incorporated
      by reference in and made a part of this Indenture. The following TIA terms
      used
      in this Indenture have the following meanings:

     

    “Commission”
      means the Securities and Exchange Commission. 

     

    “indenture
      securities” means the Notes.

     

    “indenture
      security holder” means a Noteholder. 

     

    “indenture
      to be qualified” means this Indenture. 

     

    “indenture
      trustee” or “institutional trustee” means the Indenture Trustee.

     

    “obligor”
      on the indenture securities means the Issuer and any other obligor on the
      indenture securities.

     

    (b) All
      other
      TIA terms used in this Indenture that are defined in the TIA, defined by TIA
      reference to another statute or defined by rule of the Securities and Exchange
      Commission have the respective meanings assigned to them by such
      definitions.

     

    Section
      1.03. Rules
      of Construction.
      Unless
      the context otherwise requires:

     

    (i) a
      term
      has the meaning assigned to it;

     

    (ii) an
      accounting term not otherwise defined has the meaning assigned to it in
      accordance with generally accepted accounting principles as in effect from
      time
      to time;

     

    (iii) “or”
is
      not exclusive;

     

    (iv) “including”
      means including without limitation;

     

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

     

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

     

    (vii) terms
      defined in the UCC and not otherwise defined herein shall have the meaning
      assigned to them in the UCC; and

     

    
      
        
        

      

      
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    (viii) to
“U.S.
      dollars”, “dollars”, or the sign “$” shall be construed as references to United
      States dollars which are freely transferable by residents and non-residents
      of
      the United States of America and convertible by such persons into any other
      freely convertible currency unless such transferability or convertibility is
      restricted by any law or regulation of general application in which event
      references to “U.S. dollars”, “dollars”, or the sign “$” shall be construed as
      references to such coin or currency of the United States of America as at the
      time of payment shall be legal tender for the payment of public and private
      debts in the United States of America, and “cents” shall be construed
      accordingly.

     

    ARTICLE
      TWO

     

    THE
      NOTES

     

    Section
      2.01. Form.
      The
      Notes shall be designated as the “Thornburg Mortgage Securities Trust
[__],
      Class
[__],
      Series
      20[__]-[__], Home Equity Loan Asset-Backed Notes, Series 20[__]-[__].” The
      Notes, together with the Indenture Trustee’s certificate of authentication,
      shall be in substantially the forms set forth in Exhibit A with such appropriate
      insertions, omissions, substitutions and other variations as are required or
      permitted by this Indenture, and may have such letters, numbers or other marks
      of identification and such legends or endorsements placed thereon as may,
      consistently herewith, be determined by the officers executing such Notes,
      as
      evidenced by their execution of the Notes. Any portion of the text of any Note
      may be set forth on the reverse thereof, with an appropriate reference thereto
      on the face of the Note.

     

    The
      Definitive Notes and the global certificates (“Global Securities”) representing
      the Book-Entry Notes shall be typewritten, printed, lithographed or engraved
      or
      produced by any combination of these methods (with or without steel engraved
      borders), all as determined by the officers executing such Notes, as evidenced
      by their execution of such Notes.

     

    Each
      Note
      shall be dated the date of its authentication. The terms of the Notes set forth
      in Exhibit A are part of the terms of this Indenture.

     

    Section
      2.02. Execution,
      Authentication and Delivery.
      The
      Notes shall be executed on behalf of the Issuer by any Authorized Officer of
      the
      Owner Trustee or the Administrator. The signature of any such Authorized Officer
      on the Notes may be manual or facsimile.

     

    Notes
      bearing the manual or facsimile signature of individuals who were at any time
      Authorized Officers of the Owner Trustee or the Administrator shall bind the
      Issuer, notwithstanding that such individuals or any of them have ceased to
      hold
      such offices prior to the authentication and delivery of such Notes or did
      not
      hold such offices at the date of such Notes.

     

    The
      Indenture Trustee shall, upon Issuer Order, authenticate and deliver the Notes
      for original issue in the aggregate note principal amount of $[_________].
      The
      aggregate principal amounts of the Notes outstanding at any time may not exceed
      such amount.

     

    
      
        
        

      

      
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    The
      Notes
      will be issued in minimum principal amount denominations of $[_________] and
      integral multiples of $1 in excess thereof. 

     

    No
      Note
      shall be entitled to any benefit under this Indenture or be valid or obligatory
      for any purpose, unless there appears on such Note a certificate of
      authentication substantially in the form provided for herein executed by the
      Indenture Trustee by the manual signature of one of its authorized signatories,
      and such certificate upon any Note shall be conclusive evidence, and the only
      evidence, that such Note has been duly authenticated and delivered
      hereunder.

     

    Section
      2.03. Limitations
      on Transfer of the Notes.
      (a)
      No
      transfer of a Note in the form of a Definitive Note shall be made unless the
      Note Registrar shall have received either (i) a representation from the
      transferee of such Note, acceptable to and in form and substance satisfactory
      to
      the Note Registrar and the Depositor (such requirement is satisfied only by
      the
      Note Registrar’s receipt of a transfer affidavit from the transferee
      substantially in the form of Exhibit C hereto), to the effect that such
      transferee (i) is not acquiring such note for, or with the assets of, an
      employee benefit plan or other retirement arrangement that is subject to Section
      406 of ERISA or to Section 4975 of the Code or to any substantially similar
      law
      (“Similar Law”), or any entity deemed to hold the plan assets of the foregoing
      (collectively, “Benefit Plans”), or (ii) with respect to any Note, its
      acquisition and holding of such Notes for, or with the assets of, a Benefit
      Plan
      will not result in a non-exempt prohibited transaction under Section 406 of
      ERISA or Section 4975 of the Code which is not covered under Prohibited
      Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60,
      PTCE 96-23, the non-fiduciary service provider exemption under Section
      408(b)(17) of ERISA and Section 4975(d)(20) of the Code or some other applicable
      exemption, and will not result in a non-exempt violation of any Similar
      Law.

     

    In
      the
      case of a Note that is a Book-Entry Note, for purposes of clauses (i) or (ii)
      of
      the first sentence of the preceding paragraph, such representations shall be
      deemed to have been made to the Note Registrar by the transferee’s acceptance of
      such Note that is also a Book-Entry Note (or the acceptance by a Note Holder
      of
      the beneficial interest in such Note).

     

    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      none of the Indenture Trustee, the Note Registrar or the Depositor shall have
      any liability to any Person for any registration or transfer of any Note that
      is
      in fact not permitted by this Section 2.03(a) or for the Indenture Trustee
      (or
      any paying agent on its behalf) making any payments due on such Note to the
      Holder thereof or taking any other action with respect to such Holder under
      the
      provisions of this Agreement so long as the transfer was registered by the
      Note
      Registrar in accordance with the foregoing requirements. In addition, none
      of
      the Indenture Trustee, the Note Registrar or the Depositor shall be required
      to
      monitor, determine or inquire as to compliance with the transfer restrictions
      with respect to any Note in the form of a Book-Entry Note, and none of the
      Indenture Trustee, the Note Registrar or the Depositor shall have any liability
      for transfers of Book-Entry Notes or any interests therein made in violation
      of
      the restrictions on transfer described in the Prospectus and this
      Agreement.

     

    In
      the
      event that a Note is transferred to a Person that does not meet the requirements
      of this Section 2.03, such transfer shall be of no force and effect, shall
      be
      void ab
      initio,
      and
      shall not operate to transfer any rights to such Person, notwithstanding any
      instructions to the contrary to the Issuer, the Indenture Trustee or any
      intermediary; and the Indenture Trustee shall not make any payments on such
      Note
      for as long as such Person is the Holder of such Note.

     

    
      
        
        

      

      
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    The
      Indenture Trustee shall cause each Note to contain a legend substantially
      similar to the applicable legend provided in Exhibit A hereto stating that
      transfer of such Notes is subject to certain restrictions as set forth herein.
      

     

    (b) Any
      purported transfer of a Note (or any interest therein) not in accordance with
      this Section 2.03 shall be null and void and shall not be given effect for
      any
      purpose hereunder.

     

    (c) The
      Indenture Trustee will not have the ability to monitor transfers of the Notes
      while they are in book-entry form and will have no liability for transfers
      of
      Book-Entry Notes in violation of any of the transfer restrictions described
      in
      this Section 2.03.

     

    Section
      2.04. Registration;
      Registration of Transfer and Exchange.
      The
      Issuer shall cause the Note Registrar to keep a register (the “Note Register”)
      in which, subject to such reasonable regulations as it may prescribe and the
      restrictions on transfers of the Notes set forth herein, the Issuer shall
      provide for the registration of Notes and the registration of transfers of
      Notes. The Indenture Trustee initially shall be the “Note Registrar” for the
      purpose of registering Notes and transfers of Notes as herein provided. Upon
      any
      resignation of any Note Registrar, the Issuer shall promptly appoint a successor
      or, if it elects not to make such an appointment, assume the duties of Note
      Registrar.

     

    If
      a
      Person other than the Indenture Trustee is appointed by the Issuer as Note
      Registrar, the Issuer will give the Indenture Trustee and the Insurer prompt
      written notice of the appointment of such Note Registrar and of the location,
      and any change in the location, of the Note Register, and the Indenture Trustee
      and the Insurer shall have the right to inspect the Note Register at all
      reasonable times and to obtain copies thereof, and the Indenture Trustee shall
      have the right to rely upon a certificate executed on behalf of the Note
      Registrar by an Executive Officer thereof as to the names and addresses of
      the
      Holders of the Notes and the principal amounts and number of such
      Notes.

     

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

     

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

     

    
      
        
        

      

      
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    All
      Notes
      issued upon any registration of transfer or exchange of Notes shall be the
      valid
      obligations of the Issuer, evidencing the same debt, and entitled to the same
      benefits under this Indenture, as the Notes surrendered upon such registration
      of transfer or exchange.

     

    Every
      Note presented or surrendered for registration of transfer or exchange shall
      be
      duly endorsed by, or be accompanied by a written instrument of transfer in
      form
      satisfactory to the Indenture Trustee duly executed by, the Holder thereof
      or
      such Holder’s attorney duly authorized in writing, with such signature
      guaranteed by an “eligible guarantor institution” meeting the requirements of
      the Note Registrar, which requirements include membership or participation
      in
      the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in
      addition to, or in substitution for, STAMP.

     

    No
      service charge shall be made to a Holder for any registration of transfer or
      exchange of Notes, but the Issuer or the Note Registrar may require payment
      of a
      sum sufficient to cover any tax or other governmental charge that may be imposed
      in connection with any registration of transfer or exchange of Notes, other
      than
      exchanges pursuant to Section 2.05 or 9.05 not involving any
      transfer.

     

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

     

    Section
      2.05. Mutilated,
      Destroyed, Lost or Stolen Notes.
      If (i)
      any mutilated Note is surrendered to the Indenture Trustee, or the Indenture
      Trustee receives evidence to its satisfaction of the destruction, loss or theft
      of any Note, and (ii) there is delivered to the Indenture Trustee and the
      Insurer such security or indemnity as may be required by it to hold the Issuer,
      the Indenture Trustee and the Insurer harmless, then, in the absence of actual
      notice to the Issuer, the Note Registrar or the Indenture Trustee that such
      Note
      has been acquired by a bona fide purchaser, and upon certification provided
      by
      the Holder of such Note that the requirements of Section 8-405 of the Relevant
      UCC are met, the Issuer shall execute, and upon its request the Indenture
      Trustee shall authenticate and deliver, in exchange for or in lieu of any such
      mutilated, destroyed, lost or stolen Note, a replacement Note; provided,
      however,
      that if
      any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
      become or within seven days shall be due and payable, or shall have been called
      for redemption, instead of issuing a replacement Note, the Issuer may pay such
      destroyed, lost or stolen Note when so due or payable or upon the Optional
      Redemption Date without surrender thereof. If, after the delivery of such
      replacement Note or payment of a destroyed, lost or stolen Note pursuant to
      the
      proviso to the preceding sentence, a bona fide purchaser of the original Note
      in
      lieu of which such replacement Note was issued presents for payment such
      original Note, the Issuer, the Indenture Trustee and the Insurer shall be
      entitled to recover such replacement Note (or such payment) from the Person
      to
      whom it was delivered or any Person taking such replacement Note from such
      Person to whom such replacement Note was delivered or any assignee of such
      Person, except a bona fide purchaser, and shall be entitled to recover upon
      the
      security or indemnity provided therefor to the extent of any loss, damage,
      cost
      or expense incurred by the Issuer, the Indenture Trustee or the Insurer in
      connection therewith.

     

    
      
        
        

      

      
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    Upon
      the
      issuance of any replacement Note under this Section, the Issuer, the Indenture
      Trustee or the Note Registrar may require the payment by the Holder of such
      Note
      of a sum sufficient to cover any tax or other governmental charge that may
      be
      imposed in relation thereto and any other reasonable expenses (including the
      fees and expenses of the Indenture Trustee) connected therewith.

     

    Every
      replacement Note issued pursuant to this Section in replacement of any
      mutilated, destroyed, lost or stolen Note shall constitute an original
      additional contractual obligation of the Issuer, whether or not the mutilated,
      destroyed, lost or stolen Note shall be at any time enforceable by anyone,
      and
      shall be entitled to all the benefits of this Indenture equally and
      proportionately with any and all other Notes duly issued hereunder.

     

    The
      provisions of this Section are exclusive and shall preclude (to the extent
      lawful) all other rights and remedies with respect to the replacement or payment
      of mutilated, destroyed, lost or stolen Notes.

     

    Section
      2.06. Persons
      Deemed Owners.
      Prior
      to due presentment for registration of transfer of any Note, the Issuer, the
      Indenture Trustee and the Insurer and any agent of the Issuer, the Indenture
      Trustee or the Insurer may treat the Person in whose name any Note is registered
      (as of the day of determination) as the owner of such Note for the purpose
      of
      receiving payments of principal of and interest, if any, on such Note and for
      all other purposes whatsoever, whether or not such Note be overdue, and none
      of
      the Issuer, the Indenture Trustee or the Insurer or any agent of the Issuer,
      the
      Indenture Trustee or the Insurer shall be affected by notice to the
      contrary.

     

    Section
      2.07. Payment
      of Principal and Interest. (a)
      The
      Notes shall accrue interest at the Note Interest Rate as set forth in the Sale
      and Servicing Agreement, and such interest shall be payable on each Payment
      Date, subject to Section 3.01. Interest shall be computed on the Notes on
      the basis of a 360-day year and the actual number of days elapsed in each
      Accrual Period. With respect to the Notes, the Master Servicer shall determine
      LIBOR for each applicable Accrual Period on the second London Business Day
      prior
      thereto, in accordance with the provisions of the Sale and Servicing Agreement.
      All interest payments on the Notes shall be made pro
      rata
      to the
      Noteholders entitled thereto. Any installment of interest or principal payable
      on the Notes shall be paid on the applicable Payment Date to the Person in
      whose
      name such Note (or one or more Predecessor Notes) is registered on the Record
      Date by check mailed first-class postage prepaid to such Person’s address as it
      appears on the Note Register on such Record Date or, upon written request made
      to the Indenture Trustee at least five Business Days prior to the related Record
      Date, by the Holder of a Note having an initial Note Principal Amount of not
      less than $2,500,000 by wire transfer in immediately available funds to an
      account specified in the request and at the expense of such Noteholder, except
      that, unless Definitive Notes have been issued pursuant to Section 2.10, with
      respect to Notes registered on the Record Date in the name of the nominee of
      the
      Clearing Agency (initially, such nominee to be Cede & Co.), payment will be
      made by wire transfer in immediately available funds to the account designated
      by such nominee, except for the final installment of principal payable with
      respect to such Note on a Payment Date or on the applicable Maturity Date for
      the Notes (and except for the Optional Redemption Price if the Notes are called
      for redemption pursuant to Section 10.01), which shall be payable as provided
      below. The funds represented by any such checks returned undelivered shall
      be
      held in accordance with Section 3.03.

     

    
      
        
        

      

      
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    (b) The
      principal of the Notes shall be payable in installments on each Payment Date
      as
      provided herein and in the Notes, subject to Section 3.01. Notwithstanding
      the
      foregoing, the entire unpaid principal amount of the Notes shall be due and
      payable, if not previously paid, on the date on which an Event of Default shall
      have occurred and be continuing. All principal payments on the Notes shall
      be
      made pro
      rata
      to the
      Noteholders entitled thereto. The Indenture Trustee shall notify the Person
      in
      whose name a Note is registered at the close of business on the Record Date
      preceding the Payment Date on which the Issuer expects that the final
      installment of principal of and interest on such Note will be paid. Such notice
      shall be mailed or transmitted by facsimile no later than five Business Days
      prior to such final Payment Date and shall specify that such final installment
      will be payable only upon presentation and surrender of such Note and shall
      specify the place where such Note may be presented and surrendered for payment
      of such installment. Notices in connection with redemptions of Notes shall
      be
      mailed to Noteholders as provided in Section 10.02.

     

    Section
      2.08. Cancellation.
      All
      Notes surrendered for payment, registration of transfer, exchange or redemption
      shall, if surrendered to any Person other than the Indenture Trustee, be
      delivered to the Indenture Trustee and shall be promptly cancelled by the
      Indenture Trustee. The Issuer may at any time deliver to the Indenture Trustee
      for cancellation any Notes previously authenticated and delivered hereunder
      which the Issuer may have acquired in any manner whatsoever, and all Notes
      so
      delivered shall be promptly cancelled by the Indenture Trustee. No Notes shall
      be authenticated in lieu of or in exchange for any Notes cancelled as provided
      in this Section, except as expressly permitted by this Indenture. All cancelled
      Notes may be held or disposed of by the Indenture Trustee in accordance with
      its
      standard retention or disposal policy as in effect at the time unless the Issuer
      shall direct by an Issuer Order that they be destroyed or returned to it;
      provided, that such Issuer Order is timely and the Notes have not been
      previously disposed of by the Indenture Trustee.

     

    Section
      2.09. Release
      of Collateral. (a)
      Except
      as otherwise provided in subsections (b) and (c) of this Section and the terms
      of the Operative Agreements, the Indenture Trustee shall release property from
      the lien of this Indenture only upon receipt by it of an Issuer Request
      accompanied by (i) an Officer’s Certificate, (ii) an Opinion of Counsel, (iii)
      certificates in accordance with TIA Sections 314(c) and (d)(1), and (iv)(A)
      Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1)
      or
      (B) an Opinion of Counsel in lieu of such Independent Certificates to the effect
      that the TIA does not require any such Independent Certificates (which shall
      also be addressed to the Insurer); provided that no such Independent
      Certificates or Opinion of Counsel in lieu of such Independent Certificates
      shall be necessary in respect of property released from the lien of the
      Indenture in accordance with the provisions hereof if such property consists
      solely of cash. 

     

    
      
        
        

      

      
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    (b) The
      Master Servicer or any Servicer, on behalf of the Issuer, shall be entitled
      to
      obtain a release from the lien of this Indenture for any Mortgage Loan and
      the
      Mortgaged Property at any time (i) after a payment by the Seller or the Issuer
      of the Purchase Price of the Mortgage Loan, (ii) after a Qualifying Substitute
      Mortgage Loan is substituted for such Mortgage Loan and payment of the
      Substitution Amount, if any, (iii) after liquidation of the Mortgage Loan in
      accordance with the applicable Servicing Agreement and the deposit of all
      Liquidation Proceeds and Insurance Proceeds in the Collection Account, (iv)
      upon
      the termination of a Mortgage Loan (due to, among other causes, a prepayment
      in
      full of the Mortgage Loan and sale or other disposition of the related Mortgaged
      Property), or (v) as contemplated by Section [___] of the Sale and
      Servicing Agreement.

     

    (c) The
      Indenture Trustee shall, if requested by the Master Servicer or any Servicer,
      temporarily release or cause the applicable Custodian temporarily to release
      to
      such party the Mortgage File pursuant to the provisions of Section [___] of
      the
      Sale and Servicing Agreement and Section [___] of the applicable Custodial
      Agreement; provided,
      however,
      that
      the Mortgage File shall have been stamped to signify the Issuer’s pledge to the
      Indenture Trustee under the Indenture.

     

    Section
      2.10. Book-Entry
      Notes.
      The
      Notes will be issued in the form of typewritten Notes or Global Securities
      representing the Book-Entry Notes, to be delivered to, or to the Indenture
      Trustee as custodian for, the initial Clearing Agency, by, or on behalf of,
      the
      Issuer. The Book-Entry Notes shall be registered initially on the Note Register
      in the name of Cede & Co., the nominee of the initial Clearing Agency, and
      no Owner thereof will receive a Definitive Note representing such Note Owner’s
      interest in such Note, except as provided in Section 2.12. Unless and until
      definitive, fully registered Notes (the “Definitive Notes”) have been issued to
      such Note Owners pursuant to Section 2.12:

     

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

     

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

     

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

     

    (iv) the
      rights of Note Owners shall be exercised only through the Clearing Agency and
      shall be limited to those established by law and agreements between such Note
      Owners and the Clearing Agency and/or the Clearing Agency Participants pursuant
      to the Note Depository Agreement. Unless and until Definitive Notes are issued
      pursuant to Section 2.12, neither the Indenture Trustee nor the Note Registrar
      shall register any transfer of a beneficial interest in a Book-Entry Note;
      and
      the initial Clearing Agency will make book-entry transfers among the Clearing
      Agency Participants and receive and transmit payments of principal of and
      interest on the Notes to such Clearing Agency Participants; and

     

    
      
        
        

      

      
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    (v) whenever
      this Indenture requires or permits actions to be taken based upon instructions
      or directions of Holders of Notes evidencing a specified percentage of the
      Outstanding Balance of the Notes, the Clearing Agency shall be deemed to
      represent such percentage only to the extent that it has received instructions
      to such effect from Note Owners and/or Clearing Agency Participants owning
      or
      representing, respectively, such required percentage of the beneficial interest
      in the Notes and has delivered such instructions to the Indenture
      Trustee.

     

    Section
      2.11. Notices
      to Clearing Agency.
      Whenever a notice or other communication to the Noteholders is required under
      this Indenture, unless and until Definitive Notes shall have been issued to
      such
      Note Owners pursuant to Section 2.12, the Indenture Trustee shall give all
      such
      notices and communications specified herein to be given to Holders of the Notes
      to the Clearing Agency, and shall have no obligation to such Note
      Owners.

     

    Section
      2.12. Definitive
      Notes.
      If (i)
      the Clearing Agency is no longer willing or able to properly discharge its
      responsibilities with respect to the Book-Entry Notes and the Issuer is unable
      to locate a qualified successor, (ii) the Issuer at its option advises the
      Indenture Trustee in writing that it elects to terminate the book-entry system
      through the Clearing Agency or (iii) after the occurrence of an Event of Default
      hereunder, Note Owners of the Book-Entry Notes representing beneficial interests
      aggregating at least a majority of the Outstanding Balance of the Book-Entry
      Notes advise the Clearing Agency in writing that the continuation of a
      book-entry system through the Clearing Agency is no longer in the best interests
      of such Note Owners, then the Clearing Agency shall notify all Note Owners
      and
      the Indenture Trustee of the occurrence of any such event and of the
      availability of Definitive Notes to Note Owners requesting the same. Upon
      surrender to the Indenture Trustee of the typewritten Notes representing the
      Book-Entry Notes by the Clearing Agency, accompanied by registration
      instructions, the Issuer shall execute and the Indenture Trustee shall
      authenticate the Definitive Notes in accordance with the instructions of the
      Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee
      shall be liable for any delay in delivery of such instructions and may
      conclusively rely on, and shall be protected in relying on, such instructions.
      Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize
      the
      Holders of the Definitive Notes as Noteholders.

     

    Section
      2.13. Tax
      Treatment.
      The
      Issuer has entered into this Indenture, and the Notes will be issued, with
      the
      intention that, for federal, state and local income, single business and
      franchise tax purposes, the Notes will qualify as indebtedness of the Issuer
      secured by the Collateral. The Issuer, by entering into this Indenture, and
      each
      Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance
      of an interest in the applicable Book-Entry Note), agree to treat the Notes
      for
      federal, state and local income, single business and franchise tax purposes
      as
      indebtedness of the Issuer.

     

    
      
        
        

      

      
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    ARTICLE
      THREE

     

    COVENANTS

     

    Section
      3.01. Payment
      of Principal and Interest.
      The
      Issuer will duly and punctually pay (or will cause to be duly and punctually
      paid) the principal of and interest on the Notes in accordance with the terms
      of
      the Notes and this Indenture. Without limiting the foregoing, in accordance
      with
      Section 8.02(c), the Issuer will cause to be distributed all amounts on deposit
      in the Note Account on a Payment Date and deposited therein pursuant to the
      Sale
      and Servicing Agreement for the benefit of the Notes, to the Noteholders.
      Amounts properly withheld under the Code by any Person from a payment to any
      Noteholder of interest and/or principal shall be considered as having been
      paid
      by the Issuer to such Noteholder for all purposes of this
      Indenture.

     

    The
      Notes
      shall be non-recourse obligations of the Issuer and shall be limited in right
      of
      payment to amounts available from the Collateral as provided in this Indenture.
      The Issuer shall not otherwise be liable for payments of the Notes, and none
      of
      the owners, agents, officers, directors, employees, or successors or assigns
      of
      the Issuer shall be personally liable for any amounts payable, or performance
      due, under the Notes or this Indenture. If any other provision of this Indenture
      shall be deemed to conflict with the provisions of this Section 3.01, the
      provisions of this Section 3.01 shall control.

     

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

     

    Section
      3.03. Money
      for Payments to be Held in Trust.
      As
      provided in Section 8.02, all payments of amounts due and payable with respect
      to any Notes that are to be made from amounts withdrawn from the Note Account
      pursuant to Article [___] of the Sale and Servicing Agreement shall be made
      on
      behalf of the Issuer by the Indenture Trustee or by another Paying Agent, and
      no
      amounts so withdrawn from the such accounts for payments of Notes shall be
      paid
      over to the Issuer except as provided in this Section.

     

    On
      or
      before the Business Day preceding each Payment Date, the Issuer shall deposit
      or
      cause to be deposited in the Note Account an aggregate sum sufficient to pay
      the
      amounts then becoming due under the Notes, such sum to be held in trust for
      the
      benefit of the Persons entitled thereto, and (unless the Paying Agent is the
      Indenture Trustee) shall promptly notify the Indenture Trustee of its action
      or
      failure so to act.

     

    Any
      Paying Agent shall be appointed by Issuer Order with written notice thereof
      to
      the Indenture Trustee and the Insurer. Any Paying Agent appointed by the Issuer
      shall be a Person that would be eligible to be Indenture Trustee hereunder
      as
      provided in Section 6.11. The Issuer shall not appoint any Paying Agent (other
      than the Indenture Trustee) which is not, at the time of such appointment,
      a
      Depository Institution.

     

    
      
        
        

      

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

     

    (i) hold
      all
      sums held by it for the payment of amounts due with respect to the Notes in
      trust for the benefit of the Persons entitled thereto until such sums shall
      be
      paid to such Persons or otherwise disposed of as herein provided and pay such
      sums to such Persons as herein provided;

     

    (ii) give
      the
      Indenture Trustee and the Insurer notice of any default by the Issuer of which
      the Paying Agent has actual knowledge in the making of any payment required
      to
      be made with respect to the Notes;

     

    (iii) at
      any
      time during the continuance of any such default, upon the written request of
      the
      Indenture Trustee with the written consent of the Insurer, if the Insurer is
      the
      Controlling Party, forthwith pay to the Indenture Trustee all sums so held
      in
      trust by such Paying Agent;

     

    (iv) immediately
      resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums
      held by it in trust for the payment of Notes if at any time it ceases to meet
      the standards required to be met by a Paying Agent at the time of its
      appointment; and

     

    (v) comply
      with all requirements of the Code with respect to the withholding from any
      payments made by it on any Notes of any applicable withholding taxes imposed
      thereon and with respect to any applicable reporting requirements in connection
      therewith; provided,
      however,
      that
      with respect to reporting requirements applicable to original issue discount,
      the accrual of market discount or the amortization of premium on the Notes,
      the
      Issuer shall have first provided the calculations pertaining thereto and the
      amount of any resulting withholding taxes to the Indenture Trustee.

     

    The
      Issuer may at any time, for the purpose of obtaining the satisfaction and
      discharge of this Indenture or for any other purpose, by Issuer Order direct
      any
      Paying Agent to pay to the Indenture Trustee all sums held in trust by such
      Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts
      as those upon which the sums were held by such Paying Agent; and upon such
      payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall
      be
      released from all further liability with respect to such money.

     

    Subject
      to applicable laws with respect to escheat of funds, any money held by the
      Indenture Trustee or any Paying Agent in trust for the payment of any amount
      due
      with respect to the Notes and remaining unclaimed for two years after such
      amount has become due and payable shall be discharged from such trust and be
      paid to the Issuer, with the prior written request of the Insurer, on Issuer
      Request; and the Holder of such Note shall thereafter, as an unsecured general
      creditor, with the prior written consent of the Insurer, look only to the Issuer
      for payment thereof (but only to the extent of the amounts so paid to the
      Issuer), and all liability of the Indenture Trustee, the Insurer or such Paying
      Agent with respect to such trust money shall thereupon cease; provided,
      however,
      that if
      such money or any portion thereof had been previously deposited by the Insurer
      with the Indenture Trustee for the payment of principal or interest on the
      Notes, to the extent any amounts are owing to the Insurer, such amounts shall
      be
      paid promptly to the Insurer upon receipt of a written request by the Insurer
      to
      such effect; and, provided,
      further,
      that
      the Indenture Trustee or such Paying Agent, before being required to make any
      such repayment, shall at the expense and direction of the Issuer cause to be
      published once, in a newspaper published in the English language, customarily
      published on each Business Day and of general circulation in The City of New
      York (including, but not limited to, The
      Bond Buyer),
      notice
      that such money remains unclaimed and that, after a date specified therein,
      which shall not be less than 30 days from the date of such publication, any
      unclaimed balance of such money then remaining will be repaid to the Issuer.
      The
      Indenture Trustee shall also adopt and employ, at the expense and direction
      of
      the Issuer, any other reasonable means of notification of such repayment
      (including, but not limited to, mailing notice of such repayment to Holders
      whose Notes have been called but have not been surrendered for redemption or
      whose right to or interest in moneys due and payable but not claimed is
      determinable from the records of the Indenture Trustee or of any Paying Agent,
      at the last address of record for each such Holder).

     

    
      
        
        

      

      
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    Section
      3.04. Existence. (a)
      The
      Issuer will keep in full effect its existence, rights and franchises as a
      statutory trust under the laws of the State of Delaware (unless it becomes,
      or
      any successor Issuer hereunder is or becomes, organized under the laws of any
      other State or of the United States of America, in which case the Issuer will
      keep in full effect its existence, rights and franchises under the laws of
      such
      other jurisdiction) and will obtain and preserve its qualification to do
      business in each jurisdiction in which such qualification is or shall be
      necessary to protect the validity and enforceability of this Indenture, the
      Notes, the Collateral and each other instrument or agreement included in the
      Collateral.

     

    (b) Any
      successor to the Owner Trustee appointed pursuant to Section 9.03 of the Trust
      Agreement shall be the successor Owner Trustee under this Indenture without
      the
      execution or filing of any paper, instrument or further act to be done on the
      part of the parties hereto.

     

    (c) Upon
      any
      consolidation or merger of or other succession to the Owner Trustee, the Person
      succeeding to the Owner Trustee under the Trust Agreement may exercise every
      right and power of the Owner Trustee under this Indenture with the same effect
      as if such Person had been named as the Owner Trustee herein.

     

    Section
      3.05. Protection
      of Collateral.
      The
      Issuer will from time to time execute, deliver and file all such supplements
      and
      amendments hereto and all such financing statements, continuation statements,
      instruments of further assurance and other instruments, and will take such
      other
      action necessary or advisable to:

     

    (i) maintain
      or preserve the lien and security interest (and the priority thereof) of this
      Indenture or carry out more effectively the purposes hereof,

     

    
      
        
        

      

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

     

    (iii) enforce
      any rights with respect to the Collateral; or

     

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

     

    The
      Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact
      to
      execute any financing statement, continuation statement or other instrument
      required to be executed pursuant to this Section 3.05 and hereby authorizes
      the
      Indenture Trustee to file in any filing office any financing statement,
      amendment to financing statement, or continuation statement required to be
      executed pursuant to this Section 3.05.

     

    Section
      3.06. Opinions
      as to Collateral.
      On the
      Closing Date, the Issuer shall furnish to the Administrator, the Insurer and
      the
      Indenture Trustee an Opinion of Counsel to the effect that either, in the
      opinion of such counsel, such action has been taken with respect to the
      recording and filing of this Indenture, any indentures supplemental hereto,
      and
      any other requisite documents, and with respect to the execution and filing
      of
      any financing statements and continuation statements, as are necessary to make
      effective the lien and security interest of this Indenture, or stating that,
      in
      the opinion of such counsel, no such action is necessary to make such lien
      and
      security interest effective.

     

    Section
      3.07. Performance
      of Obligations; Servicing of the Assistance Loans.
      (a)
      The
      Issuer will not take any action and will use its best efforts not to permit
      any
      action to be taken by others that would release any Person from any of such
      Person’s material covenants or obligations under any instrument or agreement
      included in the Collateral or that would result in the amendment, hypothecation,
      subordination, termination or discharge of, or impair the validity or
      effectiveness of, any such instrument or agreement, except as expressly provided
      in this Indenture, the Sale and Servicing Agreement or such other instrument
      or
      agreement.

     

    (b) The
      Issuer may contract with other Persons acceptable to the Insurer to assist
      it in
      performing its duties under this Indenture, and any performance of such duties
      by a Person identified to the Indenture Trustee and the Insurer in an Officer’s
      Certificate of the Issuer shall be deemed to be action taken by the Issuer.
      Initially, the Issuer has contracted with the Administrator to assist the Issuer
      in performing its duties under this Indenture.

     

    (c) The
      Issuer will punctually perform and observe all of its obligations and agreements
      contained in this Indenture, the Operative Agreements and in the instruments
      and
      agreements included in the Collateral, including but not limited to filing
      or
      causing to be filed all financing statements and continuation statements
      required to be filed by the terms of this Indenture and the Sale and Servicing
      Agreement in accordance with and within the time periods provided for herein
      and
      therein.

     

    
      
        
        

      

      
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    (d) If
      a
      responsible officer of the Owner Trustee shall have written notice or actual
      knowledge of the occurrence of an Event of Default under the Sale and Servicing
      Agreement, the Issuer shall promptly notify the Indenture Trustee, the Insurer
      and each Rating Agency thereof.

     

    (e) As
      promptly as possible after the giving of notice of termination to the Master
      Servicer of the Master Servicer’s rights and powers pursuant to Section [___] of
      the Sale and Servicing Agreement, the Indenture Trustee shall proceed in
      accordance with Section [___] and [___] of the Sale and Servicing Agreement
      

     

    (f) Without
      derogating from the absolute nature of the assignment granted to the Indenture
      Trustee under this Indenture or the rights of the Indenture Trustee hereunder,
      the Issuer agrees (i) that it will not, without the prior written consent of
      the
      Indenture Trustee or the Holders of at least a majority in Outstanding Balance
      of the Notes affected thereby, amend, modify, waive, supplement, terminate
      or
      surrender, or agree to any amendment, modification, supplement, termination,
      waiver or surrender of, the terms of any Collateral or the Operative Agreements
      (except to the extent otherwise provided in any such Operative Agreement),
      or
      waive timely performance or observance by the Master Servicer or the Depositor
      of its respective duties under the Sale and Servicing Agreement; and (ii) that
      any such amendment shall not (A) increase or reduce in any manner the amount
      of,
      or accelerate or delay the timing of, payments that are required to be made
      for
      the benefit of the Noteholders or (B) reduce the aforesaid percentage of the
      Notes that is required to consent to any such amendment, without the consent
      of
      the Holders of all the Outstanding Notes affected thereby. If any such
      amendment, modification, supplement or waiver shall be so consented to by the
      Indenture Trustee or such Holders, the Issuer agrees, promptly following a
      request by the Indenture Trustee to do so, to execute and deliver, in its own
      name and at its own expense, such agreements, instruments, consents and other
      documents as the Indenture Trustee may deem necessary or appropriate in the
      circumstances.

     

    Section
      3.08. Negative
      Covenants.
      So long
      as any Notes are Outstanding, the Issuer shall not:

     

    (i) except
      as
      expressly permitted by this Indenture, the Mortgage Loan Sale Agreement or
      the
      Sale and Servicing Agreement, sell, transfer, exchange or otherwise dispose
      of
      any of the properties or assets of the Issuer, including those included in
      the
      Collateral without the consent of the Insurer, or if an Insurer Default has
      occurred and is continuing, unless directed to do so by the Indenture
      Trustee;

     

    (ii) claim
      any
      credit on, or make any deduction from the principal or interest payable in
      respect of, the Notes (other than amounts properly withheld from such payments
      under the Code) or assert any claim against any present or former Noteholder
      by
      reason of the payment of the taxes levied or assessed upon any part of the
      Collateral;

     

    (iii) (A)
      permit the validity or effectiveness of this Indenture to be impaired, or permit
      the lien of this Indenture to be amended, hypothecated, subordinated, terminated
      or discharged, or permit any Person to be released from any covenants or
      obligations with respect to the Notes under this Indenture except as may be
      expressly permitted hereby, (B) permit any lien, charge, excise, claim, security
      interest, mortgage or other encumbrance (other than the lien of this Indenture)
      to be created on or extend to or otherwise arise upon or burden the Collateral
      or any part thereof or any interest therein or the proceeds thereof (other
      than
      tax liens, mechanics’ liens and other liens that arise by operation of law, in
      each case with respect to any Collateral and arising solely as a result of
      an
      action or omission of a Borrower or as otherwise permitted in the Sale and
      Servicing Agreement) or (C) permit the lien of this Indenture not to constitute
      a valid first priority (other than with respect to any such tax, mechanics’ or
      other lien) or as otherwise permitted in the Sale and Servicing Agreement)
      security interest in the Collateral;

     

    
      
        
        

      

      
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    (iv) dissolve
      or liquidate in whole or in part or merge or consolidate with any other
      Person;

     

    (v) remove
      the Administrator without cause unless the Rating Agency Condition shall have
      been satisfied in connection with such removal;

     

    (vi) take
      any
      other action or fail to take any action that would result in an imposition
      of
      tax on the Issuer (including, but not limited to, the tax on prohibited
      transactions under section 860L(e) of the Code); or 

     

    (vii) except
      with the prior written consent of the Noteholders, take any action described
      in
      Section 5.06 of the Trust Agreement.

     

    Section
      3.09. Annual
      Statement as to Compliance.
      The
      Issuer will deliver to the Indenture Trustee and the Insurer, within 120 days
      after the end of each fiscal year of the Issuer (commencing with the fiscal
      year
      20[__]), an Officer’s Certificate stating, as to the Authorized Officer signing
      such Officer’s Certificate, that:

     

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

     

    (ii) to
      the
      best of such Authorized Officer’s knowledge, based on such review, the Issuer
      has complied with all conditions and covenants under this Indenture throughout
      such year or, if there has been a default in its compliance with any such
      condition or covenant, specifying each such default known to such Authorized
      Officer and the nature and status thereof.

     

    Section
      3.10. Treatment
      of Notes as Debt for Tax Purposes.
      The
      Issuer shall, and shall cause the Administrator and the Master Servicer to,
      treat the Notes as indebtedness for all federal, state and local tax
      purposes.

     

    Section
      3.11. [Reserved].

     

    
      
        
        

      

      
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    Section
      3.12. No
      Other Business.
      The
      Issuer shall not engage in any business other than financing, purchasing,
      owning, selling and managing the Collateral in the manner contemplated by this
      Indenture and the Operative Agreements and activities incidental
      thereto.

     

    Section
      3.13. No
      Borrowing.
      The
      Issuer shall not issue, incur, assume, guarantee or otherwise become liable,
      directly or indirectly, for any indebtedness other than the Notes.

     

    Section
      3.14. [Reserved].

     

    Section
      3.15. Guarantees,
      Loans, Advances and Other Liabilities.
      Except
      as contemplated by the Sale and Servicing Agreement or this Indenture, the
      Issuer shall not make any loan or advance or credit to, or guarantee (directly
      or indirectly or by an instrument having the effect of assuring another’s
      payment or performance on any obligation or capability of so doing or
      otherwise), endorse or otherwise become contingently liable, directly or
      indirectly, in connection with the obligations, stocks or dividends of, or
      own,
      purchase, repurchase or acquire (or agree contingently to do so) any stock,
      obligations, assets or securities of, or any other interest in, or make any
      capital contribution to, any other Person.

     

    Section
      3.16. Capital
      Expenditures.
      The
      Issuer shall not make any expenditure (by long-term or operating lease or
      otherwise) for capital assets (either realty or personalty).

     

    Section
      3.17. Removal
      of Administrator.
      So long
      as any Notes are Outstanding, the Issuer shall not remove the Administrator
      without cause unless the Issuer has received a letter from each Rating Agency
      to
      the effect that such removal will not cause the then-current ratings on the
      Notes and the Certificate to be qualified, reduced or withdrawn. 

     

    Section
      3.18. Restricted
      Payments.
      The
      Issuer shall not, directly or indirectly, (i) pay any dividend or make any
      payment (by reduction of capital or otherwise), whether in cash, property,
      securities or a combination thereof, to the Owner Trustee or any owner of a
      beneficial interest in the Issuer or otherwise with respect to any ownership
      or
      equity interest or security in or of the Issuer, (ii) redeem, purchase, retire
      or otherwise acquire for value any such ownership or equity interest or security
      or (iii) set aside or otherwise segregate any amounts for any such purpose;
      provided, however,
      the
      Issuer may make, or cause to be made, payments and distributions as contemplated
      by, and to the extent funds are available for such purpose under, the Sale
      and
      Servicing Agreement, this Indenture or the Trust Agreement. The Issuer will
      not,
      directly or indirectly, make payments to or from the Collection Account except
      in accordance with this Indenture and the Operative Agreements.

     

    Section
      3.19. Notice
      of Rapid Amortization Events and Events of Servicing Termination.
      The
      Issuer shall promptly, and in no event more than three Business Days following
      such event, give the Indenture Trustee, the Insurer and each Rating Agency
      written notice of each Rapid Amortization Event and/or Event of Servicing
      Termination under the Sale and Servicing Agreement, and each default on the
      part
      of the Master Servicer or the Depositor of its obligations under the Sale and
      Servicing Agreement, to the extent a responsible officer of the Owner Trustee
      shall have written notice or actual knowledge thereof.

     

    
      
        
        

      

      
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    Section
      3.20. Further
      Instruments and Acts.
      Upon
      request of the Indenture Trustee or the Insurer, the Issuer will execute and
      deliver such further instruments and do such further acts as may be reasonably
      necessary or proper to carry out more effectively the purpose of this
      Indenture.

     

    Section
      3.21. Covenants
      of the Issuer.
      All
      covenants of the Issuer in this Indenture are covenants of the Issuer and are
      not covenants of the Owner Trustee in its individual capacity. The Owner Trustee
      is, and any successor Owner Trustee under the Trust Agreement will be, entering
      into this Indenture on behalf of the Issuer solely as Owner Trustee under the
      Trust Agreement and not in its respective individual capacity, and in no case
      whatsoever shall the Owner Trustee or any such successor Owner Trustee be
      personally liable on, or for any loss in respect of, any of the statements,
      representations, warranties or obligations of the Issuer hereunder, as to all
      of
      which the parties hereto agree to look solely to the property of the
      Issuer.

     

    Section
      3.22. Representations
      and Warranties of the Issuer.
      (a)
      With respect to the Mortgage Notes, the Issuer represents and warrants
      that:

     

    (i) This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable Uniform Commercial Code (the “UCC”) in the Mortgage Notes in favor of
      the Indenture Trustee, which security interest is prior to all other liens,
      and
      is enforceable as such against creditors of and purchasers from the
      Issuer;

     

    (ii) The
      Mortgage Notes constitute “instruments” within the meaning of the applicable
      UCC;

     

    (iii) The
      Issuer owns and has good title to the Mortgage Notes free and clear of any
      lien,
      claim or encumbrance of any Person;

     

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

     

    (v) All
      original executed copies of each Mortgage Note have been or will be delivered
      to
      the Indenture Trustee (or its custodian), as set forth in the Sale and Servicing
      Agreement;

     

    (vi) The
      Issuer has received a written acknowledgement from the Indenture Trustee (or
      its
      custodian) that it is holding the Mortgage Notes solely on behalf and for the
      benefit of the Indenture Trustee;

     

    (vii) Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, the Issuer has not pledged, assigned, sold, granted a security
      interest in, or otherwise conveyed any of the Mortgage Notes. The Issuer has
      not
      authorized the filing of and is not aware of any financing statements against
      the Issuer that include a description of the collateral covering the Mortgage
      Notes other than a financing statement relating to the security interest granted
      to the Indenture Trustee hereunder or that has been terminated. The Issuer
      is
      not aware of any judgment or tax lien filings against the Issuer;
      and

     

    
      
        
        

      

      
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    (viii) None
      of
      the Mortgage Notes has any marks or notations indicating that they have been
      pledged, assigned or otherwise conveyed to any Person other than the Indenture
      Trustee.

     

    (b) The
      representations and warranties set forth in this Section 3.22 shall survive
      the
      Closing Date and shall not be waived.

     

    ARTICLE
      FOUR

     

    SATISFACTION
      AND DISCHARGE

     

    Section
      4.01. Satisfaction
      and Discharge of Indenture.
      Upon
      payment in full to the Insurer of amounts due to the Insurer and on the Notes,
      this Indenture shall cease to be of further effect with respect to the Notes,
      except as to (i) rights of registration of transfer and exchange, (ii)
      substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
      Noteholders to receive payments of principal thereof and interest thereon,
      (iv)
      the rights, obligations and immunities of the Indenture Trustee hereunder
      (including the rights of the Indenture Trustee under Section 6.07 and the
      obligations of the Indenture Trustee under Sections 3.03 and 4.02) and (v)
      the
      rights of Noteholders and the Insurer as beneficiaries hereof with respect
      to
      the property so deposited with the Indenture Trustee payable to all or any
      of
      them, and the Indenture Trustee, on demand of and at the expense of the Issuer,
      shall execute proper instruments acknowledging satisfaction and discharge of
      this Indenture with respect to the Notes, when either (I) the Sale and Servicing
      Agreement has been terminated pursuant to Section [___] thereof or
      (II)

     

    (A) either

     

    (1) all
      Notes
      theretofore authenticated and delivered (other than (i) Notes that have been
      destroyed, lost or stolen and that have been replaced or paid as provided in
      Section 2.05 and (ii) Notes for whose payment money has theretofore been
      deposited in trust or segregated and held in trust by the Issuer and thereafter
      repaid to the Issuer or discharged from such trust, as provided in Section
      3.03)
      have been delivered to the Indenture Trustee for cancellation and the Policy
      has
      terminated and been returned to the Insurer for cancellation and all amounts
      owing to the Insurer have been paid in full; or

     

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

     

    a. have
      become due and payable,

     

    b. will
      become due and payable at the applicable Maturity Date within one year,
      or

     

    
      
        
        

      

      
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    c. are
      to be
      called for redemption within one year under arrangements satisfactory to the
      Indenture Trustee for the giving of notice of redemption by the Indenture
      Trustee in the name, and at the expense, of the Issuer,

     

    and
      the
      Issuer, in the case of a., b. or c. above, has irrevocably deposited or caused
      to be irrevocably deposited with the Indenture Trustee cash or direct
      obligations of or obligations guaranteed by the United States of America (which
      will mature prior to the date such amounts are payable), in trust for such
      purpose, in an amount sufficient to pay and discharge the entire indebtedness
      on
      such Notes not theretofore delivered to the Indenture Trustee for cancellation
      when due to the Maturity Date or Optional Redemption Date (if the Notes are
      called for redemption pursuant to Section 10.01 hereof), as the case may
      be;

     

    (B) the
      Issuer has paid or caused to be paid all other sums payable hereunder by the
      Issuer and the Insurer;

     

    (C) the
      Issuer has delivered to the Indenture Trustee and the Insurer an Officer’s
      Certificate and an Opinion of Counsel (at the Issuer’s expense) and (if required
      by the TIA or the Indenture Trustee) an Independent Certificate from a firm
      of
      certified public accountants, each meeting the applicable requirements of
      Section 11.01 hereof and, subject to Section 11.02 hereof, each stating that
      all
      conditions precedent herein provided for relating to the satisfaction and
      discharge of this Indenture with respect to the Notes have been complied with;
      and

     

    (D) the
      Issuer has delivered to each Rating Agency notice of such satisfaction and
      discharge.

     

    Section
      4.02. Application
      of Trust Money.
      All
      moneys deposited with the Indenture Trustee pursuant to Sections 3.03 and 4.01
      hereof shall be held in trust and applied by it, in accordance with the
      provisions of the Notes and this Indenture, to the payment, either directly
      or
      through any Paying Agent, as the Indenture Trustee may determine, to the Holders
      of the particular Notes for the payment or redemption of which such moneys
      have
      been deposited with the Indenture Trustee, of all sums due and to become due
      thereon for principal and interest and to the Insurer for payments of any
      amounts due to it under the Operative Agreements; but such moneys need not
      be
      segregated from other funds except to the extent required herein or in the
      Sale
      and Servicing Agreement or required by law.

     

    Section
      4.03. Repayment
      of Moneys Held by Paying Agent.
      In
      connection with the satisfaction and discharge of this Indenture with respect
      to
      the Notes, all moneys then held by any Paying Agent other than the Indenture
      Trustee under the provisions of this Indenture with respect to such Notes shall,
      upon demand of the Issuer, be paid to the Indenture Trustee to be held and
      applied according to Section 3.03 and thereupon such Paying Agent shall be
      released from all further liability with respect to such moneys.

     

    
      
        
        

      

      
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    ARTICLE
      FIVE

     

    REMEDIES

     

    Section
      5.01. Remedies.
      If a
      Rapid Amortization Event as described in the Sale and Servicing Agreement shall
      have occurred and be continuing, the Noteholders shall be entitled on each
      Payment Date to an amount equal to the Maximum Principal Payment and Interest
      Payment Amount for such Payment Date payable during such Rapid Amortization
      Period. The rights contained in this Article Five are in addition to any rights
      that the Noteholders possess pursuant to the Sale and Servicing
      Agreement.

     

    Section
      5.02. Limitation
      of Suits.
      No
      Holder of any Note shall have any right to institute any proceeding, judicial
      or
      otherwise, with respect to this Indenture, or for the appointment of a receiver
      or trustee, or for any other remedy hereunder, unless:

     

    (i) such
      Holder has previously given written notice to the Indenture Trustee of a
      continuing Rapid Amortization Event;

     

    (ii) the
      Holders of not less than 50% of the Outstanding Amount of the Notes have made
      written request to the Indenture Trustee to institute such proceeding with
      respect to the Notes in respect of such Rapid Amortization Event in its own
      name
      as Indenture Trustee hereunder;

     

    (iii) such
      Holder or Holders have offered to the Indenture Trustee indemnity reasonably
      satisfactory to it against the costs, expenses and liabilities to be incurred
      in
      complying with such request;

     

    (iv) the
      Indenture Trustee for 60 days after its receipt of such notice, request and
      offer of indemnity has failed to institute such proceedings;

     

    (v) no
      direction inconsistent with such written request has been given to the Indenture
      Trustee during such 60-day period by the Holders of a majority of the
      Outstanding Amount of the Notes; and

     

    (vi) an
      Insurer Default shall have occurred and be continuing;

     

    it
      being
      understood and intended that no Holders of Notes shall have any right in any
      manner whatsoever by virtue of, or by availing of, any provision of this
      Indenture to affect, disturb or prejudice the rights of any other Holders of
      Notes or to obtain or to seek to obtain priority or preference over any other
      Holders or to enforce any right under this Indenture, except in the manner
      herein provided.

     

    In
      the
      event the Indenture Trustee shall receive conflicting or inconsistent requests
      and indemnity from two or more groups of Holders of Notes, each representing
      less than a majority of the Outstanding Amount of the Notes, the Indenture
      Trustee shall take direction from the group providing indemnity and representing
      the greater percentage of the Outstanding Amount of the Notes, notwithstanding
      any other provisions of this Indenture.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    Section
      5.03. Unconditional
      Rights of Noteholders To Receive Principal and Interest. Notwithstanding
      any other provisions in this Indenture, the Holder of any Note shall have the
      right, which is absolute and unconditional, to receive payment of the principal
      of and interest, if any, on such Note on or after the respective due dates
      thereof expressed in such Note or in this Indenture (or, in the case of
      redemption, on or after the Redemption Date) and to institute suit for the
      enforcement of any such payment, and such right shall not be impaired without
      the consent of such Holder.

     

    Section
      5.04. Restoration
      of Rights and Remedies.
      If the
      Indenture Trustee or any Noteholder has instituted any proceeding to enforce
      any
      right or remedy under this Indenture and such proceeding has been discontinued
      or abandoned for any reason, then and in every such case the Issuer, the
      Insurer, the Indenture Trustee and the Noteholders shall, subject to any
      determination in such proceeding, be restored severally and respectively to
      their former positions hereunder, and thereafter all rights and remedies of
      the
      Indenture Trustee, the Insurer and the Noteholders shall continue as though
      no
      such proceeding had been instituted.

     

    Section
      5.05. Rights
      and Remedies Cumulative.
      No
      right or remedy herein conferred upon or reserved to the Controlling Party
      or to
      the related Noteholders is intended to be exclusive of any other right or
      remedy, and every right and remedy shall, to the extent permitted by law, be
      cumulative and in addition to every other right and remedy given hereunder
      or
      now or hereafter existing at law or in equity or otherwise. The assertion or
      employment of any right or remedy hereunder, or otherwise, shall not prevent
      the
      concurrent assertion or employment of any other appropriate right or
      remedy.

     

    Section
      5.06. Delay
      or Omission Not a Waiver.
      No
      delay or omission of the Indenture Trustee, the Insurer or any Holder of any
      Note to exercise any right or remedy accruing upon any Rapid Amortization Event
      shall impair any such right or remedy or constitute a waiver of any such Rapid
      Amortization Event or an acquiescence therein. Every right and remedy given
      by
      this Article Five or by law to the Indenture Trustee, the Insurer or to the
      Noteholders may be exercised from time to time, and as often as may be deemed
      expedient, by the Indenture Trustee, the Insurer or by the Noteholders, as
      the
      case may be.

     

    Section
      5.07. Control
      by Insurer and Noteholders.
      The
      Insurer (or, if an Insurer Default shall have occurred and is continuing,
      Holders of a majority of the Outstanding Amount of the Notes) shall have the
      right to direct the time, method and place of conducting any proceeding for
      any
      remedy available to the Indenture Trustee pursuant to Section [___] of the
      Sale
      and Servicing Agreement with respect to the Notes or exercising any trust or
      power conferred on the Indenture Trustee; provided that:

     

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

     

    
      
        
        

      

      
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    (ii) the
      Indenture Trustee may take any other action deemed proper by the Indenture
      Trustee that is not inconsistent with such direction;

     

    provided,
      however,
      that,
      subject to Section 6.01, the Indenture Trustee need not take any action that
      it
      determines might involve it in liability or might materially adversely affect
      the rights of any Noteholders not consenting to such action.

     

    Section
      5.08. Undertaking
      for Costs.
      All
      parties to this Indenture agree, and each Holder of any Note by such Holder’s
      acceptance thereof shall be deemed to have agreed, that any court may in its
      discretion require, in any suit for the enforcement of any right or remedy
      under
      this Indenture, or in any suit against the Indenture Trustee for any action
      taken, suffered or omitted by it as Indenture Trustee, the filing by any party
      litigant in such suit of an undertaking to pay the costs of such suit, and
      that
      such court may in its discretion assess reasonable costs, including reasonable
      attorneys’ fees and expenses, against any party litigant in such suit, having
      due regard to the merits and good faith of the claims or defenses made by such
      party litigant; but the provisions of this Section shall not apply to (a) any
      suit instituted by the Indenture Trustee, (b) any suit instituted by the
      Insurer, any Noteholder, or group of Noteholders with the prior written consent
      of the Insurer (so long as no Insurer Default has occurred), in each case
      holding in the aggregate more than 10% of the Outstanding Amount of the Notes
      or
      (c) any suit instituted by any Noteholder for the enforcement of the payment
      of
      principal of or interest on any Note on or after the respective due dates
      expressed in such Note and in this Indenture (or, in the case of redemption,
      on
      or after the Redemption Date).

     

    Section
      5.09. Waiver
      of Stay or Extension Laws.
      The
      Issuer covenants (to the extent that it may lawfully do so) that it will not
      at
      any time insist upon, or plead or in any manner whatsoever, claim or take the
      benefit or advantage of, any stay or extension law wherever enacted, now or
      at
      any time hereafter in force, that may affect the covenants or the performance
      of
      this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
      expressly waives all benefit or advantage of any such law, and covenants that
      it
      will not hinder, delay or impede the execution of any power herein granted
      to
      the Indenture Trustee, but will suffer and permit the execution of every such
      power as though no such law had been enacted.

     

    Section
      5.10. Action
      on Notes.
      The
      Indenture Trustee’s right to seek and recover judgment on the Notes or under
      this Indenture shall not be affected by the seeking, obtaining or application
      of
      any other relief under or with respect to this Indenture. Neither the lien
      of
      this Indenture nor any rights or remedies of the Indenture Trustee, the Insurer
      or the Noteholders shall be impaired by the recovery of any judgment by the
      Indenture Trustee or the Insurer against the Issuer or by the levy of any
      execution under such judgment upon any portion of the Collateral or upon any
      of
      the assets of the Issuer.

     

    Section
      5.11. Performance
      and Enforcement of Certain Obligations.

     

    (a) Promptly
      following a request from the Indenture Trustee (at the direction of the Insurer)
      to do so and at the Master Servicer’s expense, the Issuer agrees to take all
      such lawful action as the Indenture Trustee may request to compel or secure
      the
      performance and observance by the Seller and the Master Servicer, as applicable,
      of each of their obligations to the Issuer under or in connection with the
      Sale
      and Servicing Agreement in accordance with the terms thereof, and to exercise
      any and all rights, remedies, powers and privileges lawfully available to the
      Issuer under or in connection with the Sale and Servicing Agreement to the
      extent and in the manner directed by the Indenture Trustee, including the
      transmission of notices of default on the part of the Seller or the Master
      Servicer thereunder and the institution of legal or administrative actions
      or
      proceedings to compel or secure performance by the Seller or the Master Servicer
      of each of their obligations under the Sale and Servicing
      Agreement.

     

    
      
        
        

      

      
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    (b) If
      a
      Rapid Amortization Event has occurred and is continuing, the Indenture Trustee,
      with the consent of the Insurer, may, and, at the written direction of the
      Insurer (or, if an Insurer Default has occurred and is continuing, the Holders
      of 66 2/3% of the Outstanding Amount of the Notes) shall, exercise all rights,
      remedies, powers, privileges and claims of the Issuer against the Seller or
      the
      Master Servicer under or in connection with the Sale and Servicing Agreement,
      including the right or power to take any action to compel or secure performance
      or observance by the Seller or the Master Servicer of each of their obligations
      to the Issuer thereunder and to give any consent, request, notice, direction,
      approval, extension or waiver under the Sale and Servicing Agreement, and any
      right of the Issuer to take such action shall be suspended.

     

    Section
      5.12. Subrogation.
      The
      Indenture Trustee shall receive as attorney-in-fact of each Noteholder any
      Insured Amounts or Preference Amounts from the Insurer pursuant to the Policy.
      Any and all Insured Amounts and Preference Amounts disbursed by the Indenture
      Trustee from claims made under the Policy shall not be considered payment by
      the
      Issuer, and shall not discharge the obligations of the Issuer with respect
      thereto. The Insurer shall, to the extent it makes any payment with respect
      to
      the Notes, become subrogated to the rights of the recipient of such payments
      to
      the extent of such payments. Subject to and conditioned upon any payment with
      respect to the Notes by or on behalf of the Insurer, the Indenture Trustee
      shall
      assign to the Insurer all rights to the payment of interest or principal with
      respect to the Notes which are then due for payment to the extent of all
      payments made by the Insurer. 

     

    Section
      5.13. Preference
      Claims.

     

    (a) In
      the
      event that the Indenture Trustee has received a certified copy of an order
      of
      the appropriate court that any payment of principal and interest on a Note
      has
      been avoided in whole or in part as a preference payment under applicable
      bankruptcy law, the Indenture Trustee shall so notify the Insurer, shall comply
      with the provisions of the Policy to obtain payment by the Insurer of such
      avoided payment, and shall, at the time it provides notice to the Insurer,
      notify Holders of the Notes by mail that, in the event that any Noteholder’s
      payment is so recoverable, such Noteholder will be entitled to payment pursuant
      to the terms of the Policy. The Indenture Trustee shall furnish to the Insurer
      at its written request, the requested records it holds in its possession
      evidencing the payments of principal of and interest on Notes, if any, which
      have been made by the Indenture Trustee and subsequently recovered from
      Noteholders and the dates on which such payments were made. Pursuant to the
      terms of the Policy, the Insurer will make such payment on behalf of the related
      Noteholder to the receiver, conservator, debtor-in-possession or trustee in
      bankruptcy named in the final order of the court exercising jurisdiction on
      behalf of the Noteholders and not to the Indenture Trustee, any Noteholder
      directly (unless such Noteholder has returned principal or interest paid on
      the
      Notes to such receiver or trustee in bankruptcy, in which case the Insurer
      shall
      make such payment to the Indenture Trustee for payment to such Noteholder in
      accordance with the terms of the Policy).

     

    
      
        
        

      

      
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    (b) The
      Indenture Trustee shall promptly notify the Insurer of any proceeding or the
      institution of any action (of which the Indenture Trustee has actual knowledge)
      seeking the avoidance as a preferential transfer under applicable bankruptcy,
      insolvency, receivership, rehabilitation or similar law (a “Preference Claim”)
      of any distribution made with respect to the Notes. Each Holder, by its purchase
      of Notes, and the Indenture Trustee hereby agree that so long as an Insurer
      Default shall not have occurred and be continuing, the Insurer may at any time
      during the continuation of any proceeding relating to a Preference Claim direct
      all matters relating to such Preference Claim, including, without limitation,
      (i) the direction of any appeal of any order relating to any Preference Claim
      and (ii) the posting of any surety, supersedes or performance bond pending
      any
      such appeal at the expense of the Insurer, but subject to reimbursement as
      provided in the Insurance Agreement. In addition, and without limitation of
      the
      foregoing, as set forth in Section 5.12, the Insurer shall be subrogated to,
      and
      each Noteholder and the Indenture Trustee hereby delegate and assign, to the
      fullest extent permitted by law, the rights of the Indenture Trustee and each
      Noteholder in the conduct of any proceeding with respect to a Preference Claim,
      including, without limitation, all rights of any party to an adversary
      proceeding action with respect to any court order issued in connection with
      any
      such Preference Claim. All actions taken under this Section 5.13(b) by the
      Indenture Trustee shall be taken in accordance with the terms of the
      Policy.

     

    Section
      5.14. Noteholder
      Rights.
      Each
      Noteholder by the acceptance of its Note agrees that, so long as no Insurer
      Default has occurred and is continuing, the Insurer shall be treated by the
      Issuer, the Seller, the Servicers, the Master Servicer, the Owner Trustee and
      the Indenture Trustee as if the Insurer were the Holder of the Note for the
      purpose of the giving of any consent, the making of any direction or the
      exercise of any voting or other control rights otherwise given to the Noteholder
      hereunder without any further consent of the Noteholder. So long as no Insurer
      Default has occurred and is continuing, the Noteholders may only exercise such
      rights with the consent of the Insurer.

     

    Section
      5.15. Insurer’s
      Rights Regarding Actions, Proceedings or Investigations.
      Until
      all Notes have been paid in full, all amounts owed to the Insurer have been
      paid
      in full, the Insurance Agreement has terminated and the Policy has been returned
      to the Insurer for cancellation, the following provisions shall
      apply:

     

    (a) Unless
      an
      Insurer Default resulting from the failure of the Insurer to make payments
      under
      the Policy has occurred or is continuing, notwithstanding anything contained
      herein or in the other Operative Agreements to the contrary, the Insurer shall
      have the right to participate in, to direct the enforcement or defense of,
      and,
      at the Insurer’s sole option, to institute or assume the defense of, any action,
      proceeding or investigation that could adversely affect the Issuer, the
      Collateral, the Trust Property or the rights or obligations of the Insurer
      hereunder or under the Policy or the Operative Agreements, including (without
      limitation) any insolvency or bankruptcy proceeding in respect of the Servicers,
      the Seller, the Master Servicer, the Issuer or any affiliate thereof. Following
      notice to the Indenture Trustee and subject to the preceding sentence, the
      Insurer shall have exclusive right to determine, in its sole discretion, the
      actions necessary to preserve and protect the Issuer, the Collateral, and the
      Trust Property. All costs and expenses of the Insurer in connection with such
      action, proceeding or investigation, including (without limitation) any judgment
      or settlement entered into affecting the Insurer or the Insurer’s interests,
      shall be included in the Reimbursement Amount. 

     

    
      
        
        

      

      
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    (b) In
      connection with any action, proceeding or investigation that could adversely
      affect the Issuer, the Collateral, the Trust Property or the rights or
      obligations of the Insurer hereunder or under the Policy or the Operative
      Agreements, including (without limitation) any insolvency or bankruptcy
      proceeding in respect of the Servicers, the Seller, the Master Servicer, the
      Issuer or any affiliate thereof, the Indenture Trustee hereby agrees to
      cooperate with, and to take such action as directed by, the Insurer, including
      (without limitation) entering into such agreements and settlements as the
      Insurer shall direct, in its sole discretion, without the consent of any
      Noteholder.

     

    (c) The
      Indenture Trustee hereby agrees to provide to the Insurer prompt written notice
      of any action, proceeding or investigation of which a Responsible Officer has
      received notice or has actual knowledge that names the Issuer or the Indenture
      Trustee as a party or that could adversely affect the Issuer, the Collateral,
      the Trust Property or the rights or obligations of the Insurer hereunder or
      under the Policy or the Operative Agreements, including (without limitation)
      any
      insolvency or bankruptcy proceeding in respect of the Servicers, the Seller,
      the
      Master Servicer, the Trust or any affiliate thereof. 

     

    (d) Notwithstanding
      anything contained herein or in any of the other Operative Agreements to the
      contrary, the Indenture Trustee shall not, without the Insurer’s prior written
      consent or unless directed by the Insurer, undertake or join any litigation
      or
      agree to any settlement of any action, proceeding or investigation affecting
      the
      Issuer, the Collateral, the Trust Property or the rights or obligations of
      the
      Insurer hereunder or under the Policy or the Operative Agreements.

     

    (e) Each
      Noteholder, by acceptance of its Note, and the Indenture Trustee agree that
      the
      Insurer shall have such rights as set forth in this Section, which are in
      addition to any rights of the Insurer pursuant to the other provisions of the
      Operative Agreements, that the rights set forth in this Section may be exercised
      by the Insurer, in its sole discretion, without the need for the consent or
      approval of any Noteholder or the Indenture Trustee, notwithstanding any other
      provision contained herein or in any of the other Operative Agreements, and
      that
      nothing contained in this Section shall be deemed to be an obligation of the
      Insurer to exercise any of the rights provided for herein.

     

    
      
        
        

      

      
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    ARTICLE
      SIX

     

    THE
      INDENTURE TRUSTEE

     

    Section
      6.01. Duties
      of Indenture Trustee.
      (a)
      If a
      Rapid Amortization Event of which a Responsible Officer of the Indenture Trustee
      has record notice or has actual knowledge has occurred and is continuing, the
      Indenture Trustee shall exercise the rights and powers vested in it by this
      Indenture and use the same degree of care and skill in its exercise as a prudent
      person would exercise or use under the circumstances in the conduct of such
      person’s own affairs.

     

    (b) Except
      during the continuance of a Rapid Amortization Event of which a Responsible
      Officer of the Indenture Trustee has received notice or has actual
      knowledge:

     

    (i) the
      Indenture Trustee undertakes to perform such duties and only such duties as
      are
      specifically set forth in this Indenture and shall not be liable except for
      the
      performance of such duties and obligations as are specifically set forth in
      this
      Indenture and no implied covenants or obligations shall be read into this
      Indenture against the Indenture Trustee; and

     

    (ii) in
      the
      absence of bad faith on its part, the Indenture Trustee may conclusively rely,
      as to the truth of the statements and the correctness of the opinions expressed
      therein, upon certificates or opinions furnished to the Indenture Trustee and
      on
      their face conforming to the requirements of this Indenture; however, the
      Indenture Trustee shall examine the certificates and opinions to determine
      whether or not they conform on their face to the requirements of this
      Indenture.

     

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

     

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

     

    (ii) the
      Indenture Trustee shall not be liable for any error of judgment made in good
      faith by a Responsible Officer unless it is proved that the Indenture Trustee
      was negligent in ascertaining the pertinent facts;

     

    (iii) the
      Indenture Trustee shall not be liable with respect to any action it takes or
      omits to take in good faith in accordance with this Indenture or upon a
      direction received by it from the requisite Noteholders pursuant to Article
      V;
      and

     

    (iv) the
      Indenture Trustee shall not be required to take notice or be deemed to have
      notice or knowledge of (a) any failure by the Issuer to comply with its
      obligations hereunder or in the Operative Agreements or (b) any Default or
      Rapid
      Amortization Event, unless a Responsible Officer of the Indenture Trustee
      assigned to and working in its corporate trust department obtains actual
      knowledge of such Default or Rapid Amortization Event or shall have received
      written notice thereof. In the absence of such actual knowledge or notice,
      the
      Indenture Trustee may conclusively assume that there is no Default or Rapid
      Amortization Event.

     

    
      
        
        

      

      
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    (d) Every
      provision of this Indenture that in any way relates to the Indenture Trustee
      is
      subject to the provisions of this Section.

     

    (e) The
      Indenture Trustee shall not be liable for indebtedness evidenced by or arising
      under any of the Operative Agreements, including principal of or interest on
      the
      Notes, or interest on any money received by it except as the Indenture Trustee
      may agree in writing with the Issuer.

     

    (f) Money
      held in trust by the Indenture Trustee need not be segregated from other funds
      except to the extent required by law or the terms of this Indenture or the
      Sale
      and Servicing Agreement.

     

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

     

    (h) Every
      provision of this Indenture or any Operative Agreement relating to the conduct
      or affecting the liability of or affording protection to the Indenture Trustee
      shall be subject to the provisions of this Section, Section 6.02 and to the
      provisions of the TIA.

     

    (i) The
      Indenture Trustee shall, upon three Business Days’ prior written notice to the
      Indenture Trustee, permit any representative of the Insurer, during the
      Indenture Trustee’s normal business hours, to examine all books of account,
      records, reports and other papers of the Indenture Trustee relating to the
      Notes, to make copies and extracts (at the expense of the party requesting
      such
      copies or extracts) therefrom and to discuss the Indenture Trustee’s affairs and
      actions, as such affairs and actions relate to the Indenture Trustee’s duties
      with respect to the Notes, with the Indenture Trustee’s officers and employees
      responsible for carrying out the Indenture Trustee’s duties with respect to the
      Notes.

     

    (j) The
      Indenture Trustee shall execute and deliver the Sale and Servicing Agreement
      and
      such other documents and instruments as shall be necessary or appropriate in
      accordance with its duties and obligations under this Indenture.

     

    (k) The
      Indenture Trustee shall not have any duty or obligation to manage, make any
      payment with respect to, register, record, sell, dispose of, or otherwise deal
      with the Collateral, or to otherwise take or refrain from taking any action
      under, or in connection with, any document contemplated hereby to which the
      Indenture Trustee is a party, except as expressly provided (i) in accordance
      with the powers granted to and the authority conferred upon the Indenture
      Trustee pursuant to this Agreement or any other Operative Agreement, and (ii)
      in
      accordance with any document or instruction delivered to the Indenture Trustee
      pursuant to the terms of this Agreement; and no implied duties or obligations
      shall be read into this Agreement or any Operative Agreement against the
      Indenture Trustee. The Indenture Trustee agrees that it will, at its own cost
      and expense, promptly take all action as may be necessary to discharge any
      liens
      on any part of the Collateral that result from actions by, or claims against
      itself that are not related to the administration of the
      Collateral.

     

    
      
        
        

      

      
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    Section
      6.02. Rights
      of Indenture Trustee.
      (a)
      The
      Indenture Trustee may rely on any document believed by it to be genuine and
      to
      have been signed or presented by the proper person. The Indenture Trustee need
      not investigate any fact or matter stated in the document.

     

    (b) Before
      the Indenture Trustee acts or refrains from acting, it may require an Officer’s
      Certificate or an Opinion of Counsel, which shall not be at the expense of
      the
      Indenture Trustee. The Indenture Trustee shall not be liable for any action
      it
      takes or omits to take in good faith in reliance on an Officer’s Certificate or
      Opinion of Counsel. The right of the Indenture Trustee to perform any
      discretionary act enumerated in this Indenture or in any Operative Agreement
      shall not be construed as a duty and the Indenture Trustee shall not be
      answerable for other than its negligence or willful misconduct in the
      performance of such act.

     

    (c) The
      Indenture Trustee may execute any of the trusts or powers hereunder or perform
      any duties hereunder either directly or by or through agents or attorneys or
      a
      custodian or nominee.

     

    (d) The
      Indenture Trustee shall not be liable for any action it takes or omits to take
      in good faith which it believes to be authorized or within its rights or powers;
      provided, that the Indenture Trustee’s conduct does not constitute willful
      misconduct, negligence or bad faith.

     

    (e) The
      Indenture Trustee may consult with counsel, and any Opinion of Counsel with
      respect to legal matters relating to this Indenture, any Operative Agreement
      and
      the Notes shall be full and complete authorization and protection from liability
      in respect to any action taken, omitted or suffered by it hereunder in good
      faith and in accordance with any Opinion of Counsel of such
      counsel.

     

    (f) In
      the
      event that the Indenture Trustee is also acting as Paying Agent, Note Registrar,
      Custodian or Administrator hereunder or under any Operative Agreement, the
      rights and protections afforded to the Indenture Trustee pursuant to this
      Article Six shall be afforded to such Paying Agent, Note Registrar, Custodian
      and Administrator.

     

    (g) The
      Indenture Trustee shall be under no obligation to institute, conduct or defend
      any litigation under this Indenture or in relation to this Indenture, at the
      request, order or direction of any of the Holders of Notes or the Controlling
      Party, pursuant to the provisions of this Indenture, unless such Holders of
      Notes of the Controlling Party shall have offered to the Indenture Trustee
      security or indemnity reasonably satisfactory to it against the costs, expenses
      and liabilities that may be incurred therein or thereby; provided,
      however,
      that
      the Indenture Trustee shall, upon the occurrence of a Rapid Amortization Event
      which a Responsible Officer of the Indenture Trustee shall have received notice
      or have actual knowledge (that has not been cured or waived), exercise the
      rights and powers vested in it by this Indenture or the Sale and Servicing
      Agreement with reasonable care and skill.

     

    
      
        
        

      

      
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    Section
      6.03. Individual
      Rights of Indenture Trustee.
      The
      Indenture Trustee in its individual or any other capacity may become the owner
      or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates
      with the same rights it would have if it were not Indenture Trustee. Any Paying
      Agent, Note Registrar, co-registrar or co-paying agent may do the same with
      like
      rights. However, the Indenture Trustee must comply with Section
      6.11.

     

    Section
      6.04. Indenture
      Trustee’s Disclaimer.
      The
      Indenture Trustee shall not be responsible for and makes no representation
      as to
      the validity or adequacy of any of the Operative Agreements or the Notes or
      the
      sufficiency of the Collateral; it shall not be accountable for the Issuer’s use
      of the proceeds from the Notes, and it shall not be responsible for any
      statement of the Issuer or the Servicer in this Indenture, any Operative
      Agreement or in any other document issued in connection with the sale of the
      Notes or in the Notes other than the Indenture Trustee’s certificate of
      authentication.

     

    Section
      6.05. Notice
      of Rapid Amortization Events and Events of Servicing Termination.
      If a
      Rapid Amortization Period or an Event of Servicing Termination occurs and is
      continuing and if it is either known by, or written notice of the existence
      thereof has been delivered to, a Responsible Officer of the Indenture Trustee,
      the Indenture Trustee shall (i) promptly mail to the Insurer notice of such
      event, and (ii) within 90 days after such knowledge or notice occurs, mail
      to each Noteholder notice of such event. Except in the case of a default in
      payment of principal of or interest on any Note, the Indenture Trustee may
      withhold the notice of the Noteholders if and so long as one of its Responsible
      Officers in good faith determines that withholding the notice is in the
      interests of Noteholders; provided
      that
      the
      Indenture Trustee shall withhold any such notice to the Insurer.

     

    Section
      6.06. Reports
      by Indenture Trustee to Holders.
      The
      Indenture Trustee shall deliver to each Noteholder such information with respect
      to the Notes as may be required to enable such holder to prepare its federal
      and
      state income tax returns and shall file such information returns with the
      Internal Revenue Service with respect to payments or accruals of interest on
      the
      Notes as are required to be filed under the Code or applicable Treasury
      Regulations.

     

    Section
      6.07. Compensation
      and Indemnity.
      The
      Indenture Trustee shall be entitled, as compensation for its services, to the
      Indenture Trustee Fee, as provided in the Sale and Servicing Agreement. The
      Indenture Trustee’s compensation shall not be limited by any law on compensation
      of a trustee of an express trust. The Indenture Trustee and any co-trustee
      shall
      be reimbursed by the Issuer, as provided in the Sale and Servicing Agreement,
      for all reasonable ordinary out-of-pocket expenses incurred or made by it,
      including costs of collection, in addition to the compensation for its services
      (as provided in the Sale and Servicing Agreement). Reimbursable expenses under
      this Section shall include the reasonable compensation and expenses,
      disbursements and advances of the Indenture Trustee’s agents, counsel,
      accountants and experts. The Issuer shall indemnify the Indenture Trustee,
      any
      co-trustee and their respective employees, directors and agents, as provided
      in
      the Sale and Servicing Agreement, against any and all claim, loss, liability
      or
      expense (including attorneys’ fees) incurred by it in connection with the
      administration of this trust and the performance of its duties hereunder or
      under any Operative Agreement, including, without limitation, the execution
      and
      filing of any information returns and being the mortgagee of record with respect
      to the Assistance Loans. The Indenture Trustee or co-trustee, as applicable,
      shall notify the Issuer and the Administrator promptly of any claim for which
      it
      may seek indemnity. Failure by the Indenture Trustee or the co-trustee, as
      applicable, to so notify the Issuer and the Administrator shall not relieve
      the
      Issuer or the Administrator of its obligations hereunder. The Issuer shall
      defend any such claim, and the Indenture Trustee and any co-trustee may have
      separate counsel and the Issuer shall pay the fees and expenses of such counsel.
      The Issuer shall not be required to reimburse any expense or indemnify against
      any loss, liability or expense incurred by the Indenture Trustee or any
      co-trustee through the Indenture Trustee’s or co-trustee’s, as the case may be,
      own willful misconduct, negligence or bad faith.

     

    
      
        
        

      

      
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    The
      Issuer’s obligations to the Indenture Trustee and any co-trustee pursuant to
      this Section shall survive the discharge of this Indenture. When the Indenture
      Trustee or any co-trustee incurs expenses after the occurrence of a Default
      specified in Section 5.01(iv) or (v) with respect to the Issuer, the expenses
      are intended to constitute expenses of administration under Title 11 of the
      United States Code or any other applicable federal or state bankruptcy,
      insolvency or similar law.

     

    Section
      6.08. Replacement
      of Indenture Trustee.
      No
      resignation or removal of the Indenture Trustee and no appointment of a
      successor Indenture Trustee shall become effective until the acceptance of
      appointment by the successor Indenture Trustee pursuant to this Section. The
      Indenture Trustee may resign at any time by giving 90 days’ written notice
      thereof to the Depositor, the Issuer, the Insurer, each Noteholder and each
      Rating Agency. The Issuer shall remove the Indenture Trustee if:

     

    (i) the
      Indenture Trustee fails to comply with Section 6.11;

     

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

     

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

     

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

     

    If
      the
      Indenture Trustee resigns or is removed or if a vacancy exists in the office
      of
      the Indenture Trustee for any reason (the Indenture Trustee in such event being
      referred to herein as the retiring Indenture Trustee), the Issuer shall promptly
      appoint a successor Indenture Trustee (approved in writing by the Insurer,
      so
      long as such approval is not unreasonably withheld) that satisfies the
      eligibility requirements of Section 6.11.

     

    The
      resigning or removed Indenture Trustee agrees to cooperate with any successor
      Indenture Trustee in effecting the termination of the resigning or removed
      Indenture Trustee’s responsibilities and rights hereunder and shall promptly
      provide such successor Indenture Trustee all documents and records reasonably
      requested by it to enable it to assume the Indenture Trustee’s functions
      hereunder.

     

    
      
        
        

      

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

     

    If
      a
      successor Indenture Trustee does not take office within 30 days after the
      retiring Indenture Trustee resigns or is removed, the retiring Indenture
      Trustee, the Issuer, the Insurer or the Holders of a majority in Outstanding
      Balance of the Notes may petition any court of competent jurisdiction for the
      appointment of a successor Indenture Trustee acceptable to the
      Insurer.

     

    If
      the
      Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition
      any court of competent jurisdiction for the removal of the Indenture Trustee
      and
      the appointment of a successor Indenture Trustee acceptable to the
      Insurer.

     

    Section
      6.09. Successor
      Indenture Trustee by Merger.
      If the
      Indenture Trustee consolidates with, merges or converts into, or transfers
      all
      or substantially all its corporate trust business or assets to, another
      corporation or banking association, the resulting, surviving or transferee
      corporation without any further act shall be the successor Indenture Trustee;
      provided, that such corporation or banking association shall be otherwise
      qualified and eligible under Section 6.11 and is otherwise acceptable to the
      Insurer (unless an Insurer Default has occurred and is continuing). The
      Indenture Trustee shall provide each Rating Agency prior written notice of
      any
      such transaction.

     

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

     

    Section
      6.10. Appointment
      of Co-Indenture Trustee or Separate Indenture Trustee.
      (a) Notwithstanding
      any other provisions of this Indenture, at any time, for the purpose of meeting
      any legal requirement of any jurisdiction in which any part of the Collateral
      may at the time be located, the Indenture Trustee with the consent of the
      Insurer, which consent shall not be unreasonably withheld, delayed or denied,
      shall have the power and may execute and deliver all instruments to appoint
      one
      or more Persons to act as a co-trustee or co-trustees, or separate trustee
      or
      separate trustees, of all or any part of the Trust, and to vest in such Person
      or Persons, in such capacity and for the benefit of the Noteholders, such title
      to the Collateral, or any part hereof, and, subject to the other provisions
      of
      this Section, such powers, duties, obligations, rights and trusts as the
      Indenture Trustee may consider necessary or desirable. No co-trustee or separate
      trustee hereunder shall be required to meet the terms of eligibility as a
      successor trustee under Section 6.11 and no notice to Noteholders of the
      appointment of any co-trustee or separate trustee shall be required under
      Section 6.08 hereof.

     

    
      
        
        

      

      
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    (b) Every
      separate trustee and co-trustee shall, to the extent permitted by law, be
      appointed and act subject to the following provisions and
      conditions:

     

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

     

    (ii) no
      trustee hereunder shall be personally liable by reason of any act or omission
      of
      any other trustee hereunder; and

     

    (iii) the
      Indenture Trustee may at any time accept the resignation of or remove any
      separate trustee or co-trustee.

     

    (c) Any
      notice, request or other writing given to the Indenture Trustee shall be deemed
      to have been given to each of the then separate trustees and co-trustees, as
      effectively as if given to each of them. Every instrument appointing any
      separate trustee or co-trustee shall refer to this Indenture and the conditions
      of this Article Six. Each separate trustee and co-trustee, upon its acceptance
      of the trusts conferred, shall be vested with the estates or property specified
      in its instrument of appointment, either jointly with the Indenture Trustee
      or
      separately, as may be provided therein, subject to all the provisions of this
      Indenture, specifically including every provision of this Indenture relating
      to
      the conduct of, affecting the liability of, or affording protection to, the
      Indenture Trustee. Every such instrument shall be filed with the Indenture
      Trustee.

     

    (d) Any
      separate trustee or co-trustee may at any time constitute the Indenture Trustee,
      its agent or attorney-in-fact with full power and authority, to the extent
      not
      prohibited by law, to do any lawful act under or in respect of this Indenture
      on
      its behalf and in its name. If any separate trustee or co-trustee shall die,
      become incapable of acting, resign or be removed, all of its estates,
      properties, rights, remedies and trusts shall vest in and be exercised by the
      Indenture Trustee, to the extent permitted by law, without the appointment
      of a
      new or successor trustee.

     

    
      
        
        

      

      
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    Section
      6.11. Eligibility;
      Disqualification.
      The
      Indenture Trustee shall at all times (i) satisfy the requirements of TIA Section
      310(a), (ii) have a combined capital and surplus of at least $100,000,000 as
      set
      forth in its most recently published annual report of condition (which report
      shall be provided to the Insurer upon request), (iii) have a long-term debt
      rating equivalent to “A” or better by the Rating Agencies or be otherwise
      acceptable to the Rating Agencies and (iv) not be an Affiliate of the Issuer
      or
      the Owner Trustee. The Indenture Trustee shall comply with TIA Section 310(b),
      including the optional provision permitted by the second sentence of TIA Section
      310(b)(9); provided, however, that there shall be excluded from the operation
      of
      TIA Section 310(b)(1) any indenture or indentures under which other securities
      of the Issuer are outstanding if the requirements for such exclusion set forth
      in TIA Section 310(b)(1) are met.

     

    Section
      6.12. Representations
      and Warranties.
      The
      Indenture Trustee hereby represents that:

     

    (a) the
      Indenture Trustee is duly organized and validly existing as a [national banking
      association] in good standing under the laws of [the United States] with power
      and authority to own its properties and to conduct its business as such
      properties are currently owned and such business is presently
      conducted;

     

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

     

    (c) the
      consummation of the transactions contemplated by this Indenture and the
      fulfillment of the terms hereof do not conflict with, result in any breach
      of
      any of the terms and provisions of, or constitute (with or without notice or
      lapse of time) a default under the articles of organization or bylaws of the
      Indenture Trustee or any agreement or other instrument to which the Indenture
      Trustee is a party or by which it is bound; and

     

    (d) to
      the
      Indenture Trustee’s best knowledge, there are no proceedings or investigations
      pending or threatened before any court, regulatory body, administrative agency
      or other governmental instrumentality having jurisdiction over the Indenture
      Trustee or its properties: (i) asserting the invalidity of this Indenture,
      (ii)
      seeking to prevent the consummation of any of the transactions contemplated
      by
      this Indenture or (iii) seeking any determination or ruling that might
      materially and adversely affect the performance by the Indenture Trustee of
      its
      obligations under, or the validity or enforceability of, this
      Indenture.

     

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

     

    
      
        
        

      

      
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    ARTICLE
      SEVEN

     

    NOTEHOLDERS’
      LISTS AND REPORTS

     

    Section
      7.01. Issuer
      To Furnish Indenture Trustee Names and Addresses of Noteholders.
      The
      Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not
      more than five days after each Record Date, a list, in such form as the
      Indenture Trustee may reasonably require, of the names and addresses of the
      Holders of Notes as of such Record Date, and (b) at such other times as the
      Indenture Trustee may request in writing, within 30 days after receipt by the
      Issuer of any such request, a list of similar form and content as of a date
      not
      more than 10 days prior to the time such list is furnished; provided,
      however,
      that so
      long as the Indenture Trustee is the Note Registrar, no such list shall be
      required to be furnished. The Indenture Trustee or, if the Indenture Trustee
      is
      not the Note Registrar, the Issuer shall furnish to the Insurer or the Issuer
      in
      writing upon their written request and at such other times as the Insurer or
      the
      Issuer may request a copy of the list.

     

    Section
      7.02. Preservation
      of Information; Communications to Noteholders.
      (a)
      The
      Indenture Trustee shall preserve, in as current a form as is reasonably
      practicable, the names and addresses of the Holders of Notes contained in the
      most recent list furnished to the Indenture Trustee as provided in Section
      7.01
      and the names and addresses of Holders of Notes received by the Indenture
      Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy
      any
      list furnished to it as provided in such Section 7.01 upon receipt of a new
      list
      so furnished. If three or more Noteholders, or one or more Holders of a Class
      of
      Notes evidencing not less than 25% of the Outstanding Balance thereof
      (hereinafter referred to as “Applicants”), apply in writing to the Indenture
      Trustee, and such application states that the Applicants desire to communicate
      with other holders with respect to their rights under this Indenture or under
      the Notes, then the Indenture Trustee shall, within five Business Days after
      the
      receipt of such application, afford such Applicants access, during normal
      business hours, to the current list of Holders. Every Holder, by receiving
      and
      holding a Note, agrees with the Issuer and the Indenture Trustee that neither
      the Issuer nor the Indenture Trustee shall be held accountable by reason of
      the
      disclosure of any such information as to the names and addresses of the Holders
      under this Indenture, regardless of the source from which such information
      was
      derived.

     

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

     

    (c) The
      Issuer and the Indenture Trustee shall have the protection of TIA Section
      3l2(c).

     

    Section
      7.03. Reports
      by Issuer.
      (a)
      The
      Issuer shall:

     

    (i) file
      with
      the Indenture Trustee (with a copy to the Insurer) and the Commission in
      accordance with the rules and regulations prescribed from time to time by the
      Commission such additional information, documents and reports with respect
      to
      compliance by the Issuer with the conditions and covenants of this Indenture
      as
      may be required from time to time by such rules and regulations;
      and

     

    
      
        
        

      

      
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    (ii) supply
      to
      the Indenture Trustee (and the Indenture Trustee shall transmit by mail to
      all
      Noteholders described in TIA Section 313(c)) (with a copy to the Insurer) such
      summaries of any information, documents and reports required to be filed by
      the
      Issuer pursuant to clause (i) of this Section 7.03(a) and by rules and
      regulations prescribed from time to time by the Commission.

     

    (b) Unless
      the Issuer otherwise determines, the fiscal year of the Issuer shall end on
      December 31 of each year.

     

    Section
      7.04. Reports
      by Indenture Trustee.
      If
      required by TIA Section 313(a), within 60 days after each [_________] [__],
      beginning with [_________] [__], 20[__], the Indenture Trustee shall mail to
      each Noteholder as required by TIA Section 313(c) (with a copy to the Insurer)
      a
      brief report dated as of such date that complies with TIA Section 313(a). The
      Indenture Trustee also shall comply with TIA Section 313(b).

     

    A
      copy of
      each report at the time of its mailing to Noteholders shall be filed by the
      Indenture Trustee with the Commission and each securities exchange, if any,
      on
      which the Notes are listed. The Issuer shall notify the Indenture Trustee if
      and
      when the Notes are listed on any securities exchange.

     

    ARTICLE
      EIGHT

     

    ACCOUNTS,
      DISBURSEMENTS AND RELEASES

     

    Section
      8.01. Collection
      of Money.
      Except
      as otherwise expressly provided herein, the Indenture Trustee may demand payment
      or delivery of, and shall receive and collect, directly and without intervention
      or assistance of any fiscal agent or other intermediary, all money and other
      property payable to or receivable by the Indenture Trustee pursuant to this
      Indenture. The Indenture Trustee shall apply all such money received by it
      as
      provided in this Indenture. Except as otherwise expressly provided in this
      Indenture, if any default occurs in the making of any payment or performance
      under any agreement or instrument that is part of the Collateral, the Indenture
      Trustee may with the consent of the Insurer (so long as no Insurer Default
      has
      occurred and is continuing, in which case, with the consent of the majority
      of
      the Noteholders) or shall at the direction of the Insurer (so long as no Insurer
      Default has occurred and is continuing, in which case, at the direction of
      the
      majority of the Noteholders) take such action as may be appropriate to enforce
      such payment or performance, including the institution and prosecution of
      appropriate Proceedings. Any such action shall be without prejudice to any
      right
      to claim a Default or Event of Default under this Indenture and any right to
      proceed thereafter as provided in Article Five.

     

    Section
      8.02. Trust
      Accounts and Certificate Account. (a)
      On or
      prior to the Closing Date, the Indenture Trustee shall establish and maintain
      in
      its name the Trust Accounts and the Certificate Account, each as provided in
      Article [___] of the Sale and Servicing Agreement.

     

    
      
        
        

      

      
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    (b) On
      each
      Payment Date and Optional Redemption Date, the Paying Agent (or, if the
      Indenture Trustee acts as Paying Agent, the Indenture Trustee) shall distribute
      all amounts on deposit in the Note Account as provided in Section [___] of
      the
      Sale and Servicing Agreement.

     

    (c) On
      each
      Payment Date and each Optional Redemption Date, the Indenture Trustee hereby
      authorizes the Owner Trustee or the Certificate Paying Agent, as applicable,
      to
      make the distributions from the Certificate Account as required pursuant to
      Section [___] of the Sale and Servicing Agreement.

     

    Section
      8.03. General
      Provisions Regarding Accounts.
      Funds
      in the Trust Accounts maintained by the Indenture Trustee shall be invested
      as
      provided in the Sale and Servicing Agreement.

     

    Section
      8.04. Release
      of Collateral. (a)
      Subject
      to the payment of its fees and expenses pursuant to Section 6.07, the Indenture
      Trustee may, and when required by the provisions of this Indenture and the
      Sale
      and Servicing Agreement shall, execute instruments to release property from
      the
      lien of this Indenture, or convey the Indenture Trustee’s interest in the same,
      in a manner and under circumstances that are not inconsistent with the
      provisions of this Indenture. No party relying upon an instrument executed
      by
      the Indenture Trustee as provided in this Article Eight shall be bound to
      ascertain the Indenture Trustee’s authority, inquire into the satisfaction of
      any conditions precedent or see to the application of any monies.

     

    (b) The
      Indenture Trustee shall, at such time as there are no Notes outstanding and
      all
      sums due to the Noteholders pursuant to the Sale and Servicing Agreement and
      all
      fees and expenses of the Indenture Trustee, the Master Servicer, the
      Administrator and the Custodians pursuant to this Indenture have been paid,
      and
      all fees and expenses to the Insurer pursuant to the Insurance Agreement have
      been paid and the Policy has been cancelled and returned to the Insurer, release
      any remaining portion of the Collateral that secured the Notes from the lien
      of
      this Indenture and release to the Issuer or any other Person entitled thereto
      any funds then on deposit in the Trust Accounts. The Indenture Trustee shall
      release property from the lien of this Indenture pursuant to this subsection
      (b)
      only upon receipt of an Issuer Request accompanied by an Officer’s Certificate,
      an Opinion of Counsel and (if required by the TIA) Independent Certificates
      in
      accordance with TIA Sections 314(c) and 314(d)(1) meeting the applicable
      requirements of Section 11.01 hereof.

     

    ARTICLE
      NINE

     

    SUPPLEMENTAL
      INDENTURES

     

    Section
      9.01. Supplemental
      Indentures Without Consent of Noteholders. (a)
      Without
      the consent of the Holders of any Notes but with the consent of the Insurer
      and
      the prior notice to each Rating Agency, the Issuer and the Indenture Trustee,
      when authorized by an Issuer Order, at any time and from time to time, may
      enter
      into one or more indentures supplemental hereto (which shall conform to the
      provisions of the Trust Indenture Act as in force at the date of the execution
      thereof), in form satisfactory to the Indenture Trustee and the Insurer, for
      any
      of the following purposes:

     

    
      
        
        

      

      
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    (i) to
      correct or amplify the description of any property at any time subject to the
      lien of this Indenture, or better to assure, convey and confirm unto the
      Indenture Trustee any property subject or required to be subjected to the lien
      of this Indenture, or to subject to the lien of this Indenture additional
      property;

     

    (ii) to
      evidence the succession, in compliance with the applicable provisions hereof,
      of
      another person to the Issuer, and the assumption by any such successor of the
      covenants of the Issuer herein and in the Notes contained;

     

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

     

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

     

    (v) (A)
      to
      cure any ambiguity, (B) to correct or supplement any provision herein or in
      any
      supplemental indenture that may be inconsistent with any other provisions herein
      or in any supplemental indenture or to conform the provisions hereof to those
      of
      the Offering Document, (C) to obtain or maintain a rating for a Class of Notes
      from a nationally recognized statistical rating organization, (D) to make any
      other provisions with respect to matters or questions arising under this
      Indenture; provided,
      however,
      that no
      such supplemental indenture entered into pursuant to clause (D) of this
      subparagraph (v) shall adversely affect in any material respect the interests
      of
      any Holder not consenting thereto; 

     

    (vi) to
      evidence and provide for the acceptance of the appointment hereunder by a
      successor trustee with respect to the Notes and to add to or change any of
      the
      provisions of this Indenture as shall be necessary to facilitate the
      administration of the trusts hereunder by more than one trustee, pursuant to
      the
      requirements of Article Six; or

     

    (vii) to
      modify, eliminate or add to the provisions of this Indenture to such extent
      as
      shall be necessary to effect the qualification of this Indenture under the
      TIA
      or under any similar federal statute hereafter enacted and to add to this
      Indenture such other provisions as may be expressly required by the
      TIA.

     

    provided,
      however,
      that no
      such supplemental indenture shall be entered into unless the Indenture Trustee
      shall have received an Opinion of Counsel stating that entering into such
      supplemental indenture will not result in an imposition of tax on the Issuer
      (including, but not limited to, the tax on prohibited transactions under Section
      860L(e) of the Code). 

     

    The
      Indenture Trustee is hereby authorized to join in the execution of any such
      supplemental indenture and to make any further appropriate agreements and
      stipulations that may be therein contained.

     

    (b) A
      letter
      from each Rating Agency to the effect that any supplemental indenture entered
      into pursuant to this Section 9.01 will not cause the then-current ratings
      on
      the Notes to be qualified, reduced or withdrawn shall constitute conclusive
      evidence that such amendment does not adversely affect in any material respect
      the interests of the Noteholders.

     

    
      
        
        

      

      
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    Section
      9.02. Supplemental
      Indentures with Consent of Noteholders.
      The
      Issuer and the Indenture Trustee, when authorized by an Issuer Order, also
      may,
      with prior notice to each Rating Agency and with the consent of the Insurer
      and
      the Holders of not less than 66-2/3% of the Outstanding Balance of the Notes,
      by
      Act of such Holders delivered to the Issuer and the Indenture Trustee, enter
      into an indenture or indentures supplemental hereto for the purpose of adding
      any provisions to or changing in any manner or eliminating any of the provisions
      of this Indenture or of modifying in any manner the rights of the Holders of
      the
      Notes under this Indenture; provided, however,
      that no
      such supplemental indenture shall, adversely affect the interests of the
      Noteholders without the consent of the Holder of each Outstanding Note affected
      thereby (i) reduce in any manner the amount of, or delay the timing of, payments
      in respect of any Note, (ii) alter the obligations of the Servicer or the
      Indenture Trustee to make an Advance or alter the servicing standards set forth
      in the Sale and Servicing Agreement or the Servicing Agreement, (iii) reduce
      the
      aforesaid percentages of Notes the Holders of which are required to consent
      to
      any such supplemental indenture, without the consent of the Holders of all
      Notes
      affected thereby, or (iv) permit the creation of any lien ranking prior to
      or on
      a parity with the lien of this Indenture with respect to any part of the
      Collateral or, except as otherwise permitted or contemplated herein, terminate
      the lien of this Indenture on any property at any time subject hereto or deprive
      the Holder of any Note of the security provided by the lien of this Indenture
      and provided,
      further,
      that
      such action shall not, as evidenced by an Opinion of Counsel, result in an
      imposition of tax on the Issuer (including, but not limited to, the tax on
      prohibited transactions under Section 860L(e) of the Code). 

     

    The
      Indenture Trustee may rely on an Opinion of Counsel to determine whether or
      not
      any Notes would be affected by any supplemental indenture and any such
      determination shall be conclusive upon the Holders of all Notes, whether
      theretofore or thereafter authenticated and delivered hereunder. 

     

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

     

    Promptly
      after the execution by the Issuer and the Indenture Trustee of any supplemental
      indenture pursuant to this Section, the Indenture Trustee shall mail to the
      Holders of the Notes to which such amendment or supplemental indenture relates
      and each Rating Agency a notice setting forth in general terms the substance
      of
      such supplemental indenture. Any failure of the Indenture Trustee to mail such
      notice, or any defect therein, shall not, however, in any way impair or affect
      the validity of any such supplemental indenture.

     

    Section
      9.03. Execution
      of Supplemental Indentures.
      In
      executing, or permitting the additional trusts created by, any supplemental
      indenture permitted by this Article Nine or the modification thereby of the
      trusts created by this Indenture, the Indenture Trustee and the Insurer shall
      be
      entitled to receive, and subject to Section 6.02, shall be fully protected
      in
      relying upon, an Opinion of Counsel to the effect provided in Section 9.06.
      The
      Indenture Trustee may, but shall not be obligated to, enter into any such
      supplemental indenture that affects the Indenture Trustee’s own rights, duties,
      liabilities or immunities under this Indenture or otherwise.

     

    
      
        
        

      

      
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    Section
      9.04. Effect
      of Supplemental Indenture.
      Upon
      the execution of any supplemental indenture pursuant to the provisions hereof,
      this Indenture shall be and shall be deemed to be modified and amended in
      accordance therewith with respect to the Notes affected thereby, and the
      respective rights, limitations of rights, obligations, duties, liabilities
      and
      immunities under this Indenture of the Indenture Trustee, the Issuer and the
      Holders of the Notes shall thereafter be determined, exercised and enforced
      hereunder subject in all respects to such modifications and amendments, and
      all
      the terms and conditions of any such supplemental indenture shall be and be
      deemed to be part of the terms and conditions of this Indenture for any and
      all
      purposes.

     

    Section
      9.05. Conformity
      with Trust Indenture Act.
      Every
      amendment of this Indenture and every supplemental indenture executed pursuant
      to this Article IX shall conform to the requirements of the Trust Indenture
      Act
      as then in effect so long as this Indenture shall then be qualified under the
      Trust Indenture Act.

     

    Section
      9.06. Reference
      in Notes to Supplemental Indentures.
      Notes
      authenticated and delivered after the execution of any supplemental indenture
      pursuant to this Article Nine may, and if required by the Indenture Trustee
      shall, bear a notation in a form approved by the Indenture Trustee as to any
      matter provided for in such supplemental indenture. If the Issuer or the
      Indenture Trustee shall so determine, new Notes so modified as to conform,
      in
      the opinion of the Indenture Trustee and the Issuer, to any such supplemental
      indenture may be prepared and executed by the Issuer and authenticated and
      delivered by the Indenture Trustee in exchange for Outstanding
      Notes.

     

    Section
      9.07. Opinion
      of Counsel.
      In
      connection with any supplemental indenture pursuant to this Article Nine, the
      Indenture Trustee shall be entitled to receive an Opinion of Counsel to the
      effect that such supplemental indenture is authorized or permitted by this
      Indenture and that all conditions precedent to the execution of such
      supplemental indenture in accordance with the relevant provisions of this
      Article Nine have been met.

     

    Nothing
      in this Section shall be construed to require that any Person obtain the consent
      of the Indenture Trustee to any amendment or waiver or any provision of any
      document where the making of such amendment or the giving of such waiver without
      obtaining the consent of the Indenture Trustee is not prohibited by this
      Indenture or by the terms of the document that is the subject of the proposed
      amendment or waiver.

     

    ARTICLE
      TEN

     

    REDEMPTION
      OF NOTES

     

    Section
      10.01. Redemption.
      The
      Notes are subject to redemption pursuant to Section [___] of the Sale and
      Servicing Agreement. The Issuer shall furnish each Rating Agency notice of
      such
      redemption. If any Notes are to be redeemed pursuant to Section 8.02 of the
      Sale
      and Servicing Agreement, the Master Servicer shall furnish notice of its
      exercise of its option to redeem the Notes to the Indenture Trustee and the
      Insurer not later than 10 days prior to the Optional Redemption Date and the
      party exercising its option to redeem such Notes shall deposit by 10:00 A.M.
      New
      York City time on the Optional Redemption Date with the Indenture Trustee in
      the
      Note Account the Optional Redemption Price of the Notes to be redeemed,
      whereupon all such Notes shall be due and payable on the Optional Redemption
      Date upon the furnishing of a notice complying with Section 10.02 hereof to
      each
      Holder of the Notes.

     

    
      
        
        

      

      
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    Section
      10.02. Form
      of Redemption Notice.
      Notice
      of redemption under Section 10.01 shall be given by the Indenture Trustee and
      the Insurer by first-class mail, postage prepaid, or by facsimile mailed or
      transmitted not later than 10 days prior to the applicable Optional Redemption
      Date to each Holder of Notes, as of the close of business on the Record Date
      preceding the applicable Optional Redemption Date, at such Holder’s address or
      facsimile number appearing in the Note Register.

     

    All
      notices of redemption shall state:

     

    (i) the
      Optional Redemption Date;

     

    (ii) the
      Optional Redemption Price; and

     

    (iii) the
      place
      where such Notes are to be surrendered for payment of the Optional Redemption
      Price (which shall be the office or agency of the Issuer to be maintained as
      provided in Section 3.02).

     

    Notice
      of
      redemption of the Notes shall be given by the Indenture Trustee in the name
      and
      at the expense of the Issuer. Failure to give notice of redemption, or any
      defect therein, to any Holder of any Note shall not impair or affect the
      validity of the redemption of any other Note.

     

    Section
      10.03. Notes
      Payable on Optional Redemption Date.
      The
      Notes or portions thereof to be redeemed shall, following notice of redemption
      as required under Section 10.02 (in the case of redemption pursuant to Section
      10.01) and remittance to the Indenture Trustee of the Optional Redemption Price
      as required under Section 10.01, on the Optional Redemption Date become due
      and
      payable at the Optional Redemption Price and (unless the Issuer shall default
      in
      the payment of the Optional Redemption Price) no interest shall accrue on the
      Optional Redemption Price for any period after the date to which accrued
      interest is calculated for purposes of calculating the Optional Redemption
      Price.

     

    ARTICLE
      ELEVEN

     

    MISCELLANEOUS

     

    Section
      11.01. Compliance
      Certificates and Opinions, etc.
      Upon any
      application or request by the Issuer to the Indenture Trustee to take any action
      under any provision of this Indenture, the Issuer shall furnish to the Indenture
      Trustee or the Insurer: (i) an Officer’s Certificate stating that all conditions
      precedent, if any, provided for in this Indenture relating to the proposed
      action have been complied with, (ii) an Opinion of Counsel stating that in
      the
      opinion of such counsel all such conditions precedent, if any, have been
      complied with, and (iii) (if required by the TIA) an Independent Certificate
      from a firm of certified public accountants meeting the applicable requirements
      of this Section, except that, in the case of any such application or request
      as
      to which the furnishing of such documents is specifically required by any
      provision of this Indenture, no additional certificate or opinion need be
      furnished.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

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

     

    (i) a
      statement that each signatory of such certificate or opinion has read or has
      caused to be read such covenant or condition and the definitions herein relating
      thereto;

     

    (ii) a
      brief
      statement as to the nature and scope of the examination or investigation upon
      which the statements or opinions contained in such certificate or opinion are
      based;

     

    (iii) a
      statement that, in the opinion of each such signatory, such signatory has made
      such examination or investigation as is necessary to enable such signatory
      to
      express an informed opinion as to whether or not such covenant or condition
      has
      been complied with; and

     

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

     

    Section
      11.02. Form
      of Documents Delivered to Indenture Trustee.
      In any
      case where several matters are required to be certified by, or covered by an
      opinion of, any specified Person, it is not necessary that all such matters
      be
      certified by, or covered by the opinion of, only one such Person, or that they
      be so certified or covered by only one document, but one such Person may certify
      or give an opinion with respect to some matters and one or more other such
      Persons as to other matters, and any such Person may certify or give an opinion
      as to such matters in one or several documents.

     

    Any
      certificate or opinion of an Authorized Officer of the Issuer may be based,
      insofar as it relates to legal matters, upon a certificate or opinion of, or
      representations by, counsel, unless such officer knows, or in the exercise
      of
      reasonable care should know, that the certificate or opinion or representations
      with respect to the matters upon which such officer’s certificate or opinion is
      based are erroneous. Any such certificate of an Authorized Officer or Opinion
      of
      Counsel may be based, insofar as it relates to factual matters, upon a
      certificate or opinion of, or representations by, an officer or officers of
      the
      Servicer, the Depositor, the Issuer or the Administrator, stating that the
      information with respect to such factual matters is in the possession of the
      Servicer, the Depositor, the Issuer or the Administrator, unless such counsel
      knows, or in the exercise of reasonable care should know, that the certificate
      or opinion or representations with respect to such matters are
      erroneous.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    Where
      any
      Person is required to make, give or execute two or more applications, requests,
      consents, certificates, statements, opinions or other instruments under this
      Indenture, they may, but need not, be consolidated and form one
      instrument.

     

    Whenever
      in this Indenture, in connection with any application or certificate or report
      to the Indenture Trustee, it is provided that the Issuer shall deliver any
      document as a condition of the granting of such application, or as evidence
      of
      the Issuer’s compliance with any term hereof, it is intended that the truth and
      accuracy, at the time of the granting of such application or at the effective
      date of such certificate or report (as the case may be), of the facts and
      opinions stated in such document shall in such case be conditions precedent
      to
      the right of the Issuer to have such application granted or to the sufficiency
      of such certificate or report. The foregoing shall not, however, be construed
      to
      affect the Indenture Trustee’s right to rely upon the truth and accuracy of any
      statement or opinion contained in any such document as provided in Article
      Six.

     

    Section
      11.03. Acts
      of Noteholders. (a)
      Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given or taken by Noteholders may be
      embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such Noteholders in person or by agents duly appointed in
      writing; and except as herein otherwise expressly provided such action shall
      become effective when such instrument or instruments are delivered to the
      Indenture Trustee and, where it is hereby expressly required, to the Issuer.
      Such instrument or instruments (and the action embodied therein and evidenced
      thereby) are herein sometimes referred to as the “Act” of the Noteholders
      signing such instrument or instruments. Proof of execution of any such
      instrument or of a writing appointing any such agent shall be sufficient for
      any
      purpose of this Indenture and (subject to Section 6.01) conclusive in favor
      of
      the Indenture Trustee and the Issuer, if made in the manner provided in this
      Section.

     

    (b) The
      fact
      and date of the execution by any person of any such instrument or writing may
      be
      proved in any manner that the Indenture Trustee deems sufficient.

     

    (c) The
      ownership of Notes shall be proved by the Note Register.

     

    (d) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by the Holder of any Notes shall bind the Holder of every Note issued
      upon the registration thereof or in exchange therefor or in lieu thereof, in
      respect of anything done, omitted or suffered to be done by the Indenture
      Trustee or the Issuer in reliance thereon, whether or not notation of such
      action is made upon such Note.

     

    Section
      11.04. Notices,
      etc., to Indenture Trustee, Issuer, Insurer and Rating Agencies.
      Any
      request, demand, authorization, direction, notice, consent, waiver or Act of
      Noteholders or other documents provided or permitted by this Indenture shall
      be
      in writing and if such request, demand, authorization, direction, notice,
      consent, waiver or act of Noteholders is to be made upon, given or furnished
      to
      or filed with:

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    (i) the
      Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for
      every purpose hereunder if made, given, furnished or filed in writing to or
      with
      the Indenture Trustee at its Corporate Trust Office, or

     

    (ii) the
      Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for
      every purpose hereunder if in writing and mailed first-class, postage prepaid
      to
      the Issuer addressed to the address provided in the Sale and Servicing
      Agreement, or at any other address previously furnished in writing to the
      Indenture Trustee by the Issuer or the Administrator. The Issuer shall promptly
      transmit any notice received by it from the Noteholders to the Indenture
      Trustee. 

     

    (iii) The
      Insurer by the Issuer or the Indenture Trustee shall be sufficient for any
      purpose hereunder if in writing and mailed by first-class mail personally
      delivered or telecopied to the recipient as follows:

     

    
      	 	To the Insurer: 	[_________________]
	 	 	[_________________]
	 	 	[_________________]
	 	 	Attention: [_________________]
	 	 	Telecopy:
              [_________________]

    

     

    Notices
      required to be given to the Rating Agencies by the Issuer, the Indenture Trustee
      or the Owner Trustee shall be in writing, personally delivered or mailed by
      certified mail, return receipt requested, to the address provided in the Sale
      and Servicing Agreement or such other address as shall be designated by written
      notice to the other parties.

     

    Section
      11.05. Notices
      to Noteholders; Waiver.
      Where
      this Indenture provides for notice to Noteholders of any event, such notice
      shall be sufficiently given (unless otherwise herein expressly provided) if
      in
      writing and mailed, first-class, postage prepaid to each Noteholder affected
      by
      such event (and in all cases, the Insurer shall receive notice), at such
      Holder’s address as it appears on the Note Register, not later than the latest
      date, and not earlier than the earliest date, prescribed for the giving of
      such
      notice. In any case where notice to Noteholders is given by mail, neither the
      failure to mail such notice nor any defect in any notice so mailed to any
      particular Noteholder shall affect the sufficiency of such notice with respect
      to other Noteholders, and any notice that is mailed in the manner herein
      provided shall conclusively be presumed to have been duly given.

     

    Where
      this Indenture provides for notice in any manner, such notice may be waived
      in
      writing by any Person entitled to receive such notice, either before or after
      the event, and such waiver shall be the equivalent of such notice. Waivers
      of
      notice by Noteholders shall be filed with the Indenture Trustee but such filing
      shall not be a condition precedent to the validity of any action taken in
      reliance upon such a waiver.

     

    In
      case,
      by reason of the suspension of regular mail service as a result of a strike,
      work stoppage or similar activity, it shall be impractical to mail notice of
      any
      event to Noteholders when such notice is required to be given pursuant to any
      provision of this Indenture, then any manner of giving such notice as shall
      be
      satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving
      of such notice.

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    Where
      this Indenture provides for notice to the Rating Agencies, failure to give
      such
      notice shall not affect any other rights or obligations created hereunder,
      and
      shall not under any circumstance constitute a Default or Event of
      Default.

     

    Section
      11.06. Conflict
      with Trust Indenture Act.
      If any
      provision hereof limits, qualifies or conflicts with another provision hereof
      that is required to be included in this Indenture by any of the provisions
      of
      the Trust Indenture Act, such required provision shall control.

     

    The
      provisions of TIA Sections 310 through 317 that impose duties on any person
      (including the provisions automatically deemed included herein unless expressly
      excluded by this Indenture) are a part of and govern this Indenture, whether
      or
      not physically contained herein.

     

    Section
      11.07. Effect
      of Headings and Table of Contents.
      The
      Article and Section headings herein and the Table of Contents are for
      convenience only and shall not affect the construction hereof.

     

    Section
      11.08. Successors
      and Assigns.
      All
      covenants and agreements in this Indenture and the Notes by the Issuer shall
      bind its successors and assigns, whether so expressed or not. All agreements
      of
      the Indenture Trustee in this Indenture shall bind its successors, co-trustees
      and agents.

     

    Section
      11.09. Severability.
      In case
      any provision in this Indenture or in the Notes shall be invalid, illegal or
      unenforceable, the validity, legality and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

     

    Section
      11.10. Benefits
      of Indenture and Consents of Noteholders.
      Nothing
      in this Indenture or in the Notes, express or implied, shall give to any Person,
      other than the parties hereto and their successors hereunder, the Owner Trustee
      and the Noteholders, any benefit or any legal or equitable right, remedy or
      claim under this Indenture. Each Noteholder and Note Owner, by acceptance of
      a
      Note or, in the case of a Note Owner, a beneficial interest in a Note, consents
      to and agrees to be bound by the terms and conditions of this
      Indenture.

     

    Section
      11.11. Legal
      Holidays.
      The
      Insurer and its successors and assigns shall be third-party beneficiaries to
      the
      provisions of this Indenture, and shall be entitled to rely upon and directly
      to
      enforce such provisions of this Indenture. In any case where the date on which
      any payment is due shall not be a Business Day, then (notwithstanding any other
      provision of the Notes or this Indenture) payment need not be made on such
      date,
      but may be made on the next succeeding Business Day with the same force and
      effect as if made on the date on which nominally due, and no interest shall
      accrue for the period from and after any such nominal date.

     

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

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

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

     

    Section
      11.14. Recording
      of Indenture.
      If this
      Indenture is subject to recording in any appropriate public recording offices,
      such recording is to be effected by the Issuer and at its expense accompanied
      by
      an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
      other counsel reasonably acceptable to the Indenture Trustee and the Insurer)
      to
      the effect that such recording is necessary either for the protection of the
      Noteholders or any other Person secured hereunder or for the enforcement of
      any
      right or remedy granted to the Indenture Trustee under this
      Indenture.

     

    Section
      11.15. Trust
      Obligations.
      No
      recourse may be taken, directly or indirectly, with respect to the obligations
      of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
      this Indenture or any certificate or other writing delivered in connection
      herewith or therewith, against (i) the Indenture Trustee or the Owner Trustee
      in
      their respective individual capacities, (ii) any owner of a beneficial interest
      in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
      director, employee or agent of the Indenture Trustee or the Owner Trustee in
      its
      respective individual capacity, any holder of a beneficial interest in the
      Issuer, the Owner Trustee or the Indenture Trustee or of any successor or assign
      of the Indenture Trustee or the Owner Trustee in its individual capacity, except
      as any such Person may have expressly agreed (it being understood that the
      Indenture Trustee and the Owner Trustee have no such obligations in their
      respective individual capacities) and except that any such partner, owner or
      beneficiary shall be fully liable, to the extent provided by applicable law,
      for
      any unpaid consideration for stock, unpaid capital contribution or failure
      to
      pay any installment or call owing to such entity. For all purposes of this
      Indenture, in the performance of any duties or obligations of the Issuer
      hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
      of, the terms and provisions of Articles [___],[___] and [___] of the Trust
      Agreement.

     

    In
      addition, (i) this Indenture is executed and delivered by [_________], not
      individually or personally but solely as Owner Trustee, in the exercise of
      the
      powers and authority conferred and vested in it, (ii) each of the
      representations, undertakings and agreements herein made on the part of the
      Issuer or the Owner Trustee is made and intended not as personal
      representations, undertakings and agreements by [_________] but is made and
      intended for the purpose for binding only the Trust, (iii) nothing herein
      contained shall be construed as creating any liability on [_________],
      individually or personally, to perform any covenant either expressed or implied
      contained herein, all such liability, if any, being expressly waived by the
      Indenture Trustee and by any Person claiming by, through or under the Indenture
      Trustee, and (iv) under no circumstances shall [_________] be personally liable
      for the payment of any indebtedness or expenses of the Issuer or be liable
      for
      the breach or failure of any obligation, representation, warranty or covenant
      made or undertaken by the Issuer under this Indenture or the Operative
      Agreements.

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    Section
      11.16. No
      Petition.
      The
      Indenture Trustee, by entering into this Indenture, and each Noteholder, by
      accepting a Note, hereby covenant and agree that they will not at any time
      institute against the Depositor or the Issuer, or join in any institution
      against the Depositor or the Issuer of, any bankruptcy, reorganization,
      arrangement, insolvency or liquidation proceedings, or other proceedings under
      any United States federal or state bankruptcy or similar law in connection
      with
      any obligations relating to the Notes, this Indenture or any of the Operative
      Agreements.

     

    Section
      11.17. Inspection.
      The
      Issuer agrees that, on reasonable prior notice, it will permit any
      representative of the Indenture Trustee or of the Insurer, during the Issuer’s
      normal business hours, to examine all the books of account, records, reports
      and
      other papers of the Issuer, to make copies and extracts therefrom, to cause
      such
      books to be audited by Independent Public Accountants, and to discuss the
      Issuer’s affairs, finances and accounts with the Issuer’s officers, employees
      and Independent certified public accountants, all at such reasonable times
      and
      as often as may be reasonably requested. The Indenture Trustee shall, and shall
      cause its representatives to, hold in confidence all such information except
      to
      the extent disclosure may be required by law (and all reasonable applications
      for confidential treatment are unavailing) and except to the extent that the
      Indenture Trustee may reasonably determine that such disclosure is consistent
      with its obligations hereunder.

     

    

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

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

     

    

     

    THORNBURG
      MORTGAGE SECURITIES TRUST [__],
      as
      Issuer

     

    By:
      [_________],

    not
      in
      its individual capacity but solely as

    Owner
      Trustee

     

    By:                                 

    Name:

    Title:

     

    [_________],
      not in its individual capacity but solely as Indenture Trustee

     

    By:                                 

    Name:

    Title:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    FORMS
      OF
      NOTES

    

     

    

     

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-1

     

    FORM
      OF
      RULE 144A INVESTMENT LETTER

     

     

    ________________
date              
      

    [_________]

    as
      Indenture Trustee

    [_________]

    [_________]

    

    Re:         
      Thornburg
      Mortgage Securities Trust 
[__]
      Home
      Equity Loan Asset-Backed Notes, Series 20[__]-[__]---, Class [__]
      Notes

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above-referenced Class [__]
      Notes
      (the “Notes”) we certify that (a) we understand that the Notes have not been
      registered under the Securities Act of 1933, as amended (the “Act”), or any
      state securities laws and are being transferred to us in a transaction that
      is
      exempt from the registration requirements of the Act and any such laws, (b)
      we
      have such knowledge and experience in financial and business matters that we
      are
      capable of evaluating the merits and risks of investments in the Notes, (c)
      we
      have had the opportunity to ask questions of and receive answers from Thornburg
      Mortgage Securities Corporation (the “Depositor”) concerning the purchase of the
      Notes and all matters relating thereto or any additional information deemed
      necessary to our decision to purchase the Notes, (d) we have not, nor has anyone
      acting on our behalf, offered, transferred, pledged, sold or otherwise disposed
      of the Notes or any interest in the Notes, or solicited any offer to buy,
      transfer, pledge or otherwise dispose of the Notes or any interest in the Notes
      from any person in any manner, or made any general solicitation by means of
      general advertising or in any other manner, or taken any other action that
      would
      constitute a payment of the Notes under the Act or that would render the
      disposition of the Notes a violation of Section 5 of the Act or any state
      securities laws or require registration pursuant thereto, and we will not act,
      or authorize any person to act, in such manner with respect to the Notes, (e)
      we
      are a “qualified institutional buyer” as that term is defined in Rule 144A under
      the Act (“Rule 144A”). We are aware that the sale to us is being made in
      reliance on Rule 144A. 

     

    We
      are
      acquiring the Notes for our own account or for resale pursuant to Rule 144A
      and
      understand that such Notes may be resold, pledged or transferred only (1) to
      a
      person reasonably believed to be a qualified institutional buyer that purchases
      for its own account or for the account of a qualified institutional buyer to
      whom notice is given that the resale, pledge or transfer is being made in
      reliance on Rule 144A or (2) pursuant to another exemption from registration
      under the Act.

     

    
      
        
        

      

      
        B-1-1

        
          

        

      

      
        
        

      

    

    We
      hereby
      acknowledge that under the terms of the Indenture between Thornburg Mortgage
      Securities Trust [__], as Issuer, and [_________], as Indenture Trustee, dated
      as of [_____] [__], 20[__], no transfer of the Notes shall be permitted to
      be
      made to any person unless the Indenture Trustee has received a certificate
      from
      such transferee in the form hereof.

     

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

     

    Very
      truly yours,

     

    ____________________________________

    Print
      Name of Purchaser

     

    By:_________________________________

    Name:

    Title:

    

    

    
      
        
        

      

      
        B-1-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-2

     

     

    FORM
      OF
      NON-RULE 144A INVESTMENT LETTER

     

    
       

      ________________
date              
        

    

    [_________]

    as
      Indenture Trustee

    [_________]

    [_________]

    

     

    Re:         
      Thornburg
      Mortgage Securities Trust 
[__]
      Home
      Equity Loan Asset-Backed Notes, Series 20[__]-[__]---, Class [__]
      Notes 

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above-referenced Class [__]
      Notes
      (the “Notes”) we certify that (a) we understand that the Notes have not been
      registered under the Securities Act of 1933, as amended (the “Act”), or any
      state securities laws and are being transferred to us in a transaction that
      is
      exempt from the registration requirements of the Act and any such laws, (b)
      we
      are an “accredited investor,” as defined in Rule 501(a)(1), (2), (3) or (7)
      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 Notes, (c) we have had the opportunity to ask questions of and receive
      answers from the Depositor concerning the purchase of the Notes and all matters
      relating thereto or any additional information deemed necessary to our decision
      to purchase the Notes, (d) we are acquiring the Notes for investment for our
      own
      account and not with a view to any payment of such Notes (but without prejudice
      to our right at all times to sell or otherwise dispose of the Notes in
      accordance with clause (f) below), (e) we have not offered or sold any Notes
      to,
      or solicited offers to buy any Notes from, any person, or otherwise approached
      or negotiated with any person with respect thereto, or taken any other action
      that would result in a violation of Section 5 of the Act or any state securities
      laws and (f) we will not sell, transfer or otherwise dispose of any Notes
      unless (1) such sale, transfer or other disposition is made pursuant to an
      effective registration statement under the Act and in compliance with any
      relevant state securities laws or is exempt from such registration requirements
      and, if requested, we will at our expense provide an opinion of counsel
      satisfactory to the addressees of this certificate that such sale, transfer
      or
      other disposition may be made pursuant to an exemption from the Act, (2) the
      purchaser or transferee of such Note has executed and delivered to you a
      certificate to substantially the same effect as this certificate and (3) the
      purchaser or transferee has otherwise complied with any conditions for transfer
      set forth in the Indenture dated as of [_____] [__], 20[__], between Thornburg
      Mortgage Securities Trust [__], as issuer, and [_________], as indenture
      trustee.

     

    
      
        
        

      

      
        B-2-1

        
          

        

      

      
        
        

      

    

    We
      hereby
      acknowledge that under the terms of the Indenture between Thornburg Mortgage
      Securities Trust [__], as Issuer, and [_________], as Indenture Trustee, dated
      as of [_____] [__], 20[__], no transfer of the Notes shall be permitted to
      be
      made to any person unless the Indenture Trustee has received a certificate
      from
      such transferee in the form hereof.

     

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

     

    Very
      truly yours,

     

    ___________________________________

    Print
      Name of Purchaser

     

    By:_________________________________

    Name:

    Title:

    

    

     

    
      
        
        

      

      
        B-2-2

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      C

     

     

    FORM
      OF
      ERISA TRANSFER AFFIDAVIT

    
       

      ________________
date              
        

    

    STATE
      OF
      NEW YORK     )

    )
      ss.:

    COUNTY
      OF
      NEW YORK )

     

    Re:         
      Thornburg
      Mortgage Securities Trust 
[__]
      Home
      Equity Loan Asset-Backed Notes, Series 20[__]-[__]---__________

     

    1. The
      undersigned is the ______________________ of (the “Investor”), a [corporation
      duly organized] and existing under the laws of __________, on behalf of which
      he
      makes this affidavit.

     

    2. The
      Investor either (i) is not, and on ___________ [date of transfer] will not
      be,
      acquiring the Notes for, or on behalf of, an employee benefit plan or other
      retirement arrangement that is subject to Section 406 of the Employee Retirement
      Income Security Act of 1974, as amended (“ERISA”), or to Section 4975 of the
      Internal Revenue Code of 1986, as amended (or to any substantially similar
      law
      (“Similar Law”)) or any entity deemed to hold the plan assets of the foregoing
      (a “Benefit Plan”) or (ii), with respect to any Note, on ___________ [date of
      transfer] our acquisition and holding of the Notes for, or on behalf of, a
      Benefit Plan will not result in a non-exempt prohibited transaction under
      Section 406 of ERISA or Section 4975 of the Code which is not covered under
      Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38,
      PTCE 95-60, PTCE 96-23, the non-fiduciary service provider exemption under
      Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code or some other
      applicable exemption, and will not result in a non-exempt violation of any
      Similar Law.

     

    3. The
      Investor hereby acknowledges that under the terms of the Indenture between
      Thornburg Mortgage Securities Trust [__], as Issuer, and [_________], as
      Indenture Trustee, dated as of [_____] [__], 20[__], no transfer of any Note
      shall be permitted to be made to any person unless the Indenture Trustee has
      received a certificate from such transferee in the form hereof.

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

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

     

    ________________________________________

    [Investor]

     

    By:_____________________________________

    Name:

    Title:

     

    ATTEST:

     

    ___________________________

     

    STATE
      OF        )

    )
      ss.:

    COUNTY
      OF    )

     

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

     

    Subscribed
      and sworn before me this _____ day of ___________ 20___.

     

    __________________________________

    NOTARY
      PUBLIC

     

    My
      commission expires the

    ____
      day
      of __________, 20__. 

     

     

    
      
        
        

      

      
        C-2

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