Document:

Unassociated Document

     

    STRUCTURED
      ASSET SECURITIES CORPORATION,

    as
      Depositor,

     

    AURORA
      LOAN SERVICES LLC,

    as
      Master
      Servicer,

     

    and

     

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    as
      Trustee 

    
      
         

          
            

          

        

      

    

     

    TRUST
      AGREEMENT

     

    Dated
      as
      of September 1, 2006

     

      
        

      

    

     

    LEHMAN
      XS
      TRUST

    MORTGAGE
      PASS-THROUGH CERTIFICATES,

    SERIES
      2006-16N

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      TABLE
        OF CONTENTS

    

     

    
      
        
          
            	 	 	 	 	
                    Page 

                  
	 	 	 	 	 
	
                    ARTICLE
                      I. 

                  	 	
                    DEFINITIONS 

                  	 	
                    12 

                  
	 	 	 	 	 
	
                    Section
                      1.01 

                  	 	
                    Definitions 

                  	 	
                    12 

                  
	 	 	 	 	 
	
                    Section
                      1.02 

                  	 	
                    Calculations
                      Respecting Mortgage Loans 

                  	 	
                    54 

                  
	 	 	 	 	 
	
                    Section
                      1.03 

                  	 	
                    Calculations
                      Respecting Accrued Interest 

                  	 	
                    54 

                  
	 	 	 	 	 
	
                    Section
                      1.04 

                  	 	
                    Rights
                      of the NIMS Insurer 

                  	 	
                    54 

                  
	 	 	 	 	 
	
                    ARTICLE
                      II. 

                  	 	
                    DECLARATION
                      OF TRUST; ISSUANCE OF CERTIFICATES 

                  	 	
                    55 

                  
	 	 	 	 	 
	
                    Section
                      2.01 

                  	 	
                    Creation
                      and Declaration of Trust Fund; Conveyance of Mortgage Loans 

                  	 	
                    55 

                  
	 	 	 	 	 
	
                    Section
                      2.02 

                  	 	
                    Acceptance
                      of Trust Fund by Trustee: Review of Documentation for Trust
                      Fund 

                  	 	
                    58 

                  
	 	 	 	 	 
	
                    Section
                      2.03 

                  	 	
                    Representations
                      and Warranties of the Depositor 

                  	 	
                    60 

                  
	 	 	 	 	 
	
                    Section
                      2.04 

                  	 	
                    Discovery
                      of Breach 

                  	 	
                    62 

                  
	 	 	 	 	 
	
                    Section
                      2.05 

                  	 	
                    Repurchase,
                      Purchase or Substitution of Mortgage Loans 

                  	 	
                    62 

                  
	 	 	 	 	 
	
                    Section
                      2.06 

                  	 	
                    Grant
                      Clause 

                  	 	
                    63 

                  
	 	 	 	 	 
	
                    ARTICLE
                      III. 

                  	 	
                    THE
                      CERTIFICATES 

                  	 	
                    64 

                  
	 	 	 	 	 
	
                    Section
                      3.01 

                  	 	
                    The
                      Certificates 

                  	 	
                    64 

                  
	 	 	 	 	 
	
                    Section
                      3.02 

                  	 	
                    Registration 

                  	 	
                    65 

                  
	 	 	 	 	 
	
                    Section
                      3.03 

                  	 	
                    Transfer
                      and Exchange of Certificates 

                  	 	
                    65 

                  
	 	 	 	 	 
	
                    Section
                      3.04 

                  	 	
                    Cancellation
                      of Certificates 

                  	 	
                    69 

                  
	 	 	 	 	 
	
                    Section
                      3.05 

                  	 	
                    Replacement
                      of Certificates 

                  	 	
                    69 

                  
	 	 	 	 	 
	
                    Section
                      3.06 

                  	 	
                    Persons
                      Deemed Owners 

                  	 	
                    70 

                  
	 	 	 	 	 
	
                    Section
                      3.07 

                  	 	
                    Temporary
                      Certificates 

                  	 	
                    70 

                  
	 	 	 	 	 
	
                    Section
                      3.08 

                  	 	
                    Appointment
                      of Paying Agent 

                  	 	
                    70 

                  
	 	 	 	 	 
	
                    Section
                      3.09 

                  	 	
                    Book
                      Entry Certificates 

                  	 	
                    71 

                  
	 	 	 	 	 
	
                    ARTICLE
                      IV. 

                  	 	
                    ADMINISTRATION
                      OF THE TRUST FUND 

                  	 	
                    73 

                  
	 	 	 	 	 
	
                    Section
                      4.01 

                  	 	
                    Collection
                      Account 

                  	 	
                    73 

                  

          

           

          
            
              
              

            

            
              i

              
                

              

            

            
              
              

            

          

           

          

            TABLE
              OF CONTENTS

            (continued)

          

           

          
            	
                  	 	 	 	
                    Page 

                  
	 

          

          
            	
                    Section
                      4.02 

                  	 	
                    Application
                      of Funds in the Collection Account 

                  	 	
                    75 

                  
	 	 	 	 	 
	
                    Section
                      4.03 

                  	 	
                    Reports
                      to Certificateholders 

                  	 	
                    77 

                  
	 	 	 	 	 
	
                    Section
                      4.04 

                  	 	
                    Certificate
                      Account and Grantor Trust Certificate Accounts 

                  	 	
                    81 

                  
	 	 	 	 	 
	
                    ARTICLE
                      V. 

                  	 	
                    DISTRIBUTIONS
                      TO HOLDERS OF CERTIFICATES 

                  	 	
                    83 

                  
	 	 	 	 	 
	
                    Section
                      5.01 

                  	 	
                    Distributions
                      Generally 

                  	 	
                    83 

                  
	 	 	 	 	 
	
                    Section
                      5.02 

                  	 	
                    Distributions
                      from the Certificate Account and Grantor Trust Certificate
                      Accounts 

                  	 	
                    84 

                  
	 	 	 	 	 
	
                    Section
                      5.03 

                  	 	
                    Allocation
                      of Losses 

                  	 	
                    92 

                  
	 	 	 	 	 
	
                    Section
                      5.04 

                  	 	
                    Advances
                      by Master Servicer, Servicer and Trustee 

                  	 	
                    93 

                  
	 	 	 	 	 
	
                    Section
                      5.05 

                  	 	
                    Compensating
                      Interest Payments 

                  	 	
                    94 

                  
	 	 	 	 	 
	
                    Section
                      5.06 

                  	 	
                    Basis
                      Risk Reserve Fund 

                  	 	
                    94 

                  
	 	 	 	 	 
	
                    Section
                      5.07 

                  	 	
                    [Reserved] 

                  	 	
                    95 

                  
	 	 	 	 	 
	
                    Section
                      5.08 

                  	 	
                    [Reserved] 

                  	 	
                    95 

                  
	 	 	 	 	 
	
                    Section
                      5.09 

                  	 	
                    [Reserved] 

                  	 	
                    95 

                  
	 	 	 	 	 
	
                    Section
                      5.10 

                  	 	
                    Capitalized
                      Interest Account 

                  	 	
                    95 

                  
	 	 	 	 	 
	
                    Section
                      5.11 

                  	 	
                    [Reserved] 

                  	 	
                    96 

                  
	 	 	 	 	 
	
                    Section
                      5.12 

                  	 	
                    Class
                      X Account 

                  	 	
                    96 

                  
	 	 	 	 	 
	
                    ARTICLE
                      VI. 

                  	 	
                    CONCERNING
                      THE TRUSTEE; EVENTS OF DEFAULT 

                  	 	
                    96 

                  
	 	 	 	 	 
	
                    Section
                      6.01 

                  	 	
                    Duties
                      of Trustee 

                  	 	
                    96 

                  
	 	 	 	 	 
	
                    Section
                      6.02 

                  	 	
                    Certain
                      Matters Affecting the Trustee 

                  	 	
                    99 

                  
	 	 	 	 	 
	
                    Section
                      6.03 

                  	 	
                    Trustee
                      Not Liable for Certificates 

                  	 	
                    100 

                  
	 	 	 	 	 
	
                    Section
                      6.04 

                  	 	
                    Trustee
                      May Own Certificates 

                  	 	
                    101 

                  
	 	 	 	 	 
	
                    Section
                      6.05 

                  	 	
                    Eligibility
                      Requirements for Trustee 

                  	 	
                    101 

                  
	 	 	 	 	 
	
                    Section
                      6.06 

                  	 	
                    Resignation
                      and Removal of Trustee 

                  	 	
                    101 

                  
	 	 	 	 	 
	
                    Section
                      6.07 

                  	 	
                    Successor
                      Trustee 

                  	 	
                    102 

                  
	 	 	 	 	 

          

           

          
            
              
              

            

            
              ii

              
                

              

            

            
              
              

            

          

           

          
            
              TABLE
                OF CONTENTS

              (continued)

            

             

            
              	
                    	 	 	 	
                      Page 

                    
	 

            

          

          
            	
                    Section
                      6.08 

                  	 	
                    Merger
                      or Consolidation of Trustee 

                  	 	
                    103 

                  
	 	 	 	 	 
	
                    Section
                      6.09 

                  	 	
                    Appointment
                      of Co-Trustee, Separate Trustee or Custodian 

                  	 	
                    103 

                  
	 	 	 	 	 
	
                    Section
                      6.10 

                  	 	
                    Authenticating
                      Agents 

                  	 	
                    105 

                  
	 	 	 	 	 
	
                    Section
                      6.11 

                  	 	
                    Indemnification
                      of Trustee 

                  	 	
                    106 

                  
	 	 	 	 	 
	
                    Section
                      6.12 

                  	 	
                    Fees
                      and Expenses of Trustee and Custodians 

                  	 	
                    107 

                  
	 	 	 	 	 
	
                    Section
                      6.13 

                  	 	
                    Collection
                      of Monies 

                  	 	
                    107 

                  
	 	 	 	 	 
	
                    Section
                      6.14 

                  	 	
                    Events
                      of Default; Trustee To Act; Appointment of Successor 

                  	 	
                    108 

                  
	 	 	 	 	 

          

          
            	
                    Section
                      6.15 

                  	 	
                    Additional
                      Remedies of Trustee Upon Event of Default 

                  	 	
                    112 

                  
	 	 	 	 	 
	
                    Section
                      6.16 

                  	 	
                    Waiver
                      of Defaults 

                  	 	
                    112 

                  
	 	 	 	 	 
	
                    Section
                      6.17 

                  	 	
                    Notification
                      to Holders 

                  	 	
                    113 

                  
	 	 	 	 	 
	
                    Section
                      6.18 

                  	 	
                    Directions
                      by Certificateholders and Duties of Trustee During Event of
                      Default 

                  	 	
                    113 

                  
	 	 	 	 	 
	
                    Section
                      6.19 

                  	 	
                    Action
                      Upon Certain Failures of the Master Servicer and Upon Event
                      of
                      Default 

                  	 	
                    113 

                  
	 	 	 	 	 
	
                    Section
                      6.20 

                  	 	
                    Preparation
                      of Tax Returns and Other Reports 

                  	 	
                    114 

                  
	 	 	 	 	 
	
                    Section
                      6.21 

                  	 	
                    Reporting
                      Requirements of the Commission 

                  	 	
                    120 

                  
	 	 	 	 	 
	
                    Section
                      6.22 

                  	 	
                    Indemnification
                      by the Trustee 

                  	 	
                    120 

                  
	 	 	 	 	 
	
                    ARTICLE
                      VII. 

                  	 	
                    PURCHASE
                      OF MORTGAGE LOANS AND TERMINATION OF THE TRUST FUND 

                  	 	
                    120 

                  
	 	 	 	 	 
	
                    Section
                      7.01 

                  	 	
                    Purchase
                      of Mortgage Loans; Termination of the Trust Fund Upon Purchase
                      or
                      Liquidation of Mortgage Loans 

                  	 	
                    120 

                  
	 	 	 	 	 
	
                    Section
                      7.02 

                  	 	
                    Procedure
                      Upon Termination of Trust Fund 

                  	 	
                    122 

                  
	 	 	 	 	 
	
                    Section
                      7.03 

                  	 	
                    Additional
                      Trust Fund Termination Requirements 

                  	 	
                    123 

                  
	 	 	 	 	 
	
                    Section
                      7.04 

                  	 	
                    Optional
                      Purchase Right of NIMS Insurer 

                  	 	
                    124 

                  
	 	 	 	 	 
	
                    Section
                      7.05 

                  	 	
                    Grantor
                      Trust Termination 

                  	 	
                    124 

                  
	 	 	 	 	 
	
                    ARTICLE
                      VIII. 

                  	 	
                    RIGHTS
                      OF CERTIFICATEHOLDERS 

                  	 	
                    124 

                  

          

           

          
            
              
                
                

              

              
                iii

                
                  

                

              

              
                
                

              

            

             

            
              TABLE
                OF CONTENTS

              (continued)

            

             

            
              	
                    	 	 	 	
                      Page 

                    
	 

 

          

          
            	 	 	 	 	 
	
                    Section
                      8.01 

                  	 	
                    Limitation
                      on Rights of Holders 

                  	 	
                    124 

                  
	 	 	 	 	 
	
                    Section
                      8.02 

                  	 	
                    Access
                      to List of Holders 

                  	 	
                    125 

                  
	 	 	 	 	 
	
                    Section
                      8.03 

                  	 	
                    Acts
                      of Holders of Certificates 

                  	 	
                    125 

                  
	 	 	 	 	 
	
                    ARTICLE
                      IX. 

                  	 	
                    ADMINISTRATION
                      AND SERVICING OF MORTGAGE LOANS BY THE MASTER SERVICER 

                  	 	
                    126 

                  
	 	 	 	 	 
	
                    Section
                      9.01 

                  	 	
                    Duties
                      of the Master Servicer 

                  	 	
                    126 

                  
	 	 	 	 	 
	
                    Section
                      9.02 

                  	 	
                    Master
                      Servicer Fidelity Bond and Master Servicer Errors and Omissions
                      Insurance
                      Policy 

                  	 	
                    126 

                  
	 	 	 	 	 
	
                    Section
                      9.03 

                  	 	
                    Master
                      Servicer’s Financial Statements and Related Information 

                  	 	
                    127 

                  

          

          
            	 

          

          
            	
                    Section
                      9.04 

                  	 	
                    Power
                      to Act; Procedures 

                  	 	
                    128 

                  
	 	 	 	 	 
	
                    Section
                      9.05 

                  	 	
                    Enforcement
                      of Servicers’ and Master Servicer’s Obligations 

                  	 	
                    130 

                  
	 	 	 	 	 
	
                    Section
                      9.06 

                  	 	
                    Collection
                      of Taxes, Assessments and Similar Items 

                  	 	
                    131 

                  
	 	 	 	 	 
	
                    Section
                      9.07 

                  	 	
                    Termination
                      of Servicing Agreements; Successor Servicers 

                  	 	
                    131 

                  
	 	 	 	 	 
	
                    Section
                      9.08 

                  	 	
                    Master
                      Servicer Liable for Enforcement 

                  	 	
                    132 

                  
	 	 	 	 	 
	
                    Section
                      9.09 

                  	 	
                    No
                      Contractual Relationship Between the Servicer, Any NIMS Insurer
                      and
                      Trustee or Depositor 

                  	 	
                    132 

                  
	 	 	 	 	 
	
                    Section
                      9.10 

                  	 	
                    Assumption
                      of Servicing Agreement by the Trustee 

                  	 	
                    133 

                  
	 	 	 	 	 
	
                    Section
                      9.11 

                  	 	
                    Due-on-Sale
                      Clauses; Assumption Agreements; Easements 

                  	 	
                    133 

                  
	 	 	 	 	 
	
                    Section
                      9.12 

                  	 	
                    Release
                      of Mortgage Files 

                  	 	
                    134 

                  
	 	 	 	 	 
	
                    Section
                      9.13 

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

                  	 	
                    135 

                  
	 	 	 	 	 
	
                    Section
                      9.14 

                  	 	
                    Representations
                      and Warranties of the Master Servicer 

                  	 	
                    136 

                  
	 	 	 	 	 
	
                    Section
                      9.15 

                  	 	
                    Opinion 

                  	 	
                    138 

                  
	 	 	 	 	 
	
                    Section
                      9.16 

                  	 	
                    Standard
                      Hazard and Flood Insurance Policies 

                  	 	
                    138 

                  
	 	 	 	 	 
	
                    Section
                      9.17 

                  	 	
                    Presentment
                      of Claims and Collection of Proceeds 

                  	 	
                    139 

                  
	 	 	 	 	 
	
                    Section
                      9.18 

                  	 	
                    Maintenance
                      of the Primary Mortgage Insurance Policies 

                  	 	
                    139 

                  
	 	 	 	 	 

          

           

          
            
              
              

            

            
              iv

              
                

              

            

            
              
              

            

          

           

            TABLE
              OF CONTENTS

            
              (continued)

            

             

            
              	
                    	 	 	 	
                      Page 

                    
	 

            

          

          
            	
                    Section
                      9.19 

                  	 	
                    Trustee
                      To Retain Possession of Certain Insurance Policies and
                      Documents 

                  	 	
                    140 

                  
	 	 	 	 	 
	
                    Section
                      9.20 

                  	 	
                    Realization
                      Upon Defaulted Mortgage Loans 

                  	 	
                    140 

                  
	 	 	 	 	 
	
                    Section
                      9.21 

                  	 	
                    Compensation
                      to the Master Servicer 

                  	 	
                    141 

                  
	 	 	 	 	 
	
                    Section
                      9.22 

                  	 	
                    REO
                      Property 

                  	 	
                    141 

                  
	 	 	 	 	 
	
                    Section
                      9.23 

                  	 	
                    Notice
                      to the Sponsor, the Depositor and the Trustee 

                  	 	
                    142 

                  
	 	 	 	 	 
	
                    Section
                            9.24 

                  	 	
                    Reports
                      to the Trustee 

                  	 	
                    143 

                  
	 	 	 	 	 
	
                    Section
                      9.25 

                  	 	
                    Assessment
                      of Compliance and Attestation Reports 

                  	 	
                    143 

                  
	 	 	 	 	 
	
                    Section
                      9.26 

                  	 	
                    Annual
                      Statement of Compliance with Applicable Servicing Criteria 

                  	 	
                    145 

                  
	 	 	 	 	 
	
                    Section
                      9.27 

                  	 	
                    Merger
                      or Consolidation 

                  	 	
                    145 

                  
	 	 	 	 	 
	
                    Section
                      9.28 

                  	 	
                    Resignation
                      of Master Servicer 

                  	 	
                    146 

                  
	 	 	 	 	 
	
                    Section
                      9.29 

                  	 	
                    Assignment
                      or Delegation of Duties by the Master Servicer 

                  	 	
                    146 

                  
	 	 	 	 	 
	
                    Section
                      9.30 

                  	 	
                    Limitation
                      on Liability of the Master Servicer and Others 

                  	 	
                    147 

                  
	 	 	 	 	 
	
                    Section
                      9.31 

                  	 	
                    Indemnification;
                      Third Party Claims 

                  	 	
                    148 

                  
	 	 	 	 	 
	
                    Section
                      9.32 

                  	 	
                    Special
                      Servicing of Delinquent Mortgage Loans 

                  	 	
                    148 

                  
	 	 	 	 	 

          

          
            	
                    Section
                      9.33 

                  	 	
                    Allocation
                      to Related Mortgage Pool 

                  	 	
                    148 

                  
	 	 	 	 	 
	
                    ARTICLE
                      X. 

                  	 	
                    REMIC
                      ADMINISTRATION 

                  	 	
                    148 

                  
	 	 	 	 	 
	
                    Section
                      10.01 

                  	 	
                    REMIC
                      Administration 

                  	 	
                    148 

                  
	 	 	 	 	 
	
                    Section
                      10.02 

                  	 	
                    Prohibited
                      Transactions and Activities 

                  	 	
                    156 

                  
	 	 	 	 	 
	
                    Section
                      10.03 

                  	 	
                    Indemnification
                      with Respect to Certain Taxes and Loss of REMIC Status 

                  	 	
                    157 

                  
	 	 	 	 	 
	
                    Section
                      10.04 

                  	 	
                    REO
                      Property 

                  	 	
                    157 

                  
	 	 	 	 	 
	
                    ARTICLE
                      XI. 

                  	 	
                    MISCELLANEOUS
                      PROVISIONS 

                  	 	
                    158 

                  
	 	 	 	 	 
	
                    Section
                      11.01 

                  	 	
                    Binding
                      Nature of Agreement; Assignment 

                  	 	
                    158 

                  
	 	 	 	 	 
	
                    Section
                      11.02 

                  	 	
                    Entire
                      Agreement 

                  	 	
                    158 

                  
	 	 	 	 	 

          

           

          
            
              
              

            

            
              v

              
                

              

            

            
              
              

            

          

           

          
            TABLE
              OF CONTENTS

            
              (continued)

            

             

            
              	
                    	 	 	 	
                      Page 

                    
	 

            

          

          
            	
                    Section
                      11.03 

                  	 	
                    Amendment 

                  	 	
                    158 

                  
	 	 	 	 	 
	
                    Section
                      11.04 

                  	 	
                    Voting
                      Rights 

                  	 	
                    160 

                  
	 	 	 	 	 
	
                    Section
                      11.05 

                  	 	
                    Provision
                      of Information 

                  	 	
                    160 

                  
	 	 	 	 	 
	
                    Section
                      11.06 

                  	 	
                    Governing
                      Law 

                  	 	
                    160 

                  
	 	 	 	 	 
	
                    Section
                      11.07 

                  	 	
                    Notices 

                  	 	
                    161 

                  
	 	 	 	 	 
	
                    Section
                      11.08 

                  	 	
                    Severability
                      of Provisions 

                  	 	
                    161 

                  
	 	 	 	 	 
	
                    Section
                      11.09 

                  	 	
                    Indulgences;
                      No Waivers 

                  	 	
                    161 

                  
	 	 	 	 	 
	
                    Section
                      11.10 

                  	 	
                    Headings
                      Not To Affect Interpretation 

                  	 	
                    161 

                  
	 	 	 	 	 
	
                    Section
                      11.11 

                  	 	
                    Benefits
                      of Agreement 

                  	 	
                    162 

                  
	 	 	 	 	 
	
                    Section
                      11.12 

                  	 	
                    Special
                      Notices to the Rating Agencies and NIMS Insurer 

                  	 	
                    162 

                  
	 	 	 	 	 
	
                    Section
                      11.13 

                  	 	
                    Conflicts 

                  	 	
                    163 

                  
	 	 	 	 	 
	
                    Section
                      11.14 

                  	 	
                    Counterparts 

                  	 	
                    163 

                  
	 	 	 	 	 
	
                    Section
                      11.15 

                  	 	
                    Transfer
                      of Servicing 

                  	 	
                    163 

                  
	 	 	 	 	 
	
                    Section
                      11.16 

                  	 	
                    Third
                      Party Rights 

                  	 	
                    165 

                  

          

           

          
            
              
              

            

            
              vi

              
                

              

            

            
              
              

            

             

          

        

      

    

    ATTACHMENTS

     

    
      	
              Exhibit
                A

            	 	
              Forms
                of Certificates

            
	
              Exhibit
                B-1

            	 	
              Form
                of Initial Certification

            
	
              Exhibit
                B-2

            	 	
              Form
                of Interim Certification

            
	
              Exhibit
                B-3

            	 	
              Form
                of Final Certification

            
	
              Exhibit
                B-4

            	 	
              Form
                of Endorsement

            
	
              Exhibit
                C

            	 	
              Request
                for Release of Documents and Receipt

            
	
              Exhibit
                D-l

            	 	
              Form
                of Residual Certificate Transfer Affidavit (Transferee)

            
	
              Exhibit
                D-2

            	 	
              Form
                of Residual Certificate Transfer Affidavit (Transferor)

            
	
              Exhibit
                E

            	 	
              Servicing
                Agreements

            
	
              Exhibit
                F

            	 	
              Form
                of Rule 144A Transfer Certificate

            
	
              Exhibit
                G

            	 	
              Form
                of Purchaser’s Letter for Institutional Accredited
                Investors

            
	
              Exhibit
                H

            	 	
              Form
                of ERISA Transfer Affidavit

            
	
              Exhibit
                I

            	 	
              [Reserved]

            
	
              Exhibit
                J

            	 	
              [Reserved]

            
	
              Exhibit
                K

            	 	
              Custodial
                Agreements

            
	
              Exhibit
                L

            	 	
              [Reserved]

            
	
              Exhibit
                M

            	 	
              [Reserved]

            
	
              Exhibit
                N

            	 	
              Forms
                of Cap Agreements

            
	
              Exhibit
                O

            	 	
              [Reserved]

            
	
              Exhibit
                P

            	 	
              Forms
                of Deferred Interest Cap Agreements

            
	
              Exhibit
                Q-1

            	 	
              Additional
                Form 10-D Disclosure

            
	
              Exhibit
                Q-2

            	 	
              Additional
                Form 10-K Disclosure

            
	
              Exhibit
                Q-3

            	 	
              Additional
                Form 8-K Disclosure

            
	
              Exhibit
                Q-4

            	 	
              Additional
                Disclosure Notification

            
	
              Exhibit
                R

            	 	
              Servicing
                Criteria to be Addressed in Report on Assessment of
                Compliance

            
	
              Exhibit
                S

            	 	
              Transaction
                Parties

            
	
              Exhibit
                T

            	 	
              Form
                of Back-Up Sarbanes-Oxley Certification

            
	
              Exhibit
                U

            	 	
              Form
                of Back-Up Sarbanes-Oxley Certification to be Provided by the
                Trustee

            
	 	 	 
	
              Schedule
                A

            	 	
              Mortgage
                Loan Schedule

            

    

    
       

      
        
        

      

      
        vii

        
          

        

      

      
        
        

      

    

    This
      TRUST AGREEMENT, dated as of September 1, 2006 (the “Agreement”), is by and
      among STRUCTURED ASSET SECURITIES CORPORATION, a Delaware corporation, as
      depositor (the “Depositor”), AURORA LOAN SERVICES LLC, as master servicer (the
“Master Servicer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking
      association, as trustee (the “Trustee”).

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor has acquired the Mortgage Loans from Lehman Brothers Holdings Inc.
      (the “Seller”), and at the Closing Date is the owner of the Mortgage Loans and
      the other property being conveyed by it to the Trustee hereunder for inclusion
      in the Trust Fund. On the Closing Date, the Depositor will acquire the
      Certificates from the Trust Fund as consideration for its transfer to the Trust
      Fund of the Mortgage Loans and the other property constituting the Trust Fund.
      The Depositor has duly authorized the execution and delivery of this Agreement
      to provide for the conveyance to the Trustee of the Mortgage Loans and the
      other
      property constituting the Trust Fund. All covenants and agreements made by
      the
      Seller in the Mortgage Loan Sale Agreement and by the Depositor, the Master
      Servicer and the Trustee herein with respect to the Mortgage Loans and the
      other
      property constituting the Trust Fund are for the benefit of the Holders from
      time to time of the Certificates and, to the extent provided herein, any NIMS
      Insurer. The Depositor, the Trustee and the Master Servicer are entering into
      this Agreement, and the Trustee is accepting the Trust Fund created hereby,
      for
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged.

     

    As
      provided herein, the Trustee shall elect that the Trust Fund (other than (i)
      the
      Basis Risk Reserve Fund, (ii) the Capitalized Interest Account, (iii) the rights
      to receive Prepayment Premiums distributable to the Class P Certificates, (iv)
      the Class X Account, and (v) the Lower Tier Interests) be treated for federal
      income tax purposes as comprising two real estate mortgage investment conduits
      (each a “REMIC” and referred to herein separately as “REMIC 1” and “REMIC 2”).
      Each Certificate (other than the Grantor Trust Certificates, the Class C
      Certificates, the Class R Certificates and the Class P Certificates) represents
      ownership of a regular interest in REMIC 2 for purposes of the REMIC Provisions.
      In addition, each LIBOR Certificate represents the right to receive certain
      payments with respect to Excess Interest and from the Capitalized Interest
      Account as set forth herein. In addition, each of the Class 1-A2A and Class
      1-A32A1 Certificates represents ownership of the related Cap Agreement and
      related Deferred Interest Cap Agreement. Each of the Underlying Certificates
      shall be held in a grantor trust, established pursuant to Section 4.04 of this
      Trust Agreement, together with certain other property for the benefit of the
      holders of the Class 1-A2A, Class 1-A31 and Class 1-A32A1, Certificates,
      respectively, as set forth herein. The Class R Certificate represents ownership
      of the sole Class of residual interest in each of REMIC 1 and REMIC 2 for
      purposes of the REMIC Provisions.

     

    REMIC
      2
      shall hold as its assets the several Classes of uncertificated REMIC 1 Regular
      Interests and each such REMIC 1 Regular Interest is hereby designated as a
      regular interest in REMIC 1. REMIC 1 shall hold as its assets the property
      of
      the Trust Fund other than (i) the Capitalized Interest Account, (ii) the Basis
      Risk Reserve fund, (iii) the Lower Tier Interests, (iv) the Class X Account
      and
      (v) the rights to receive Prepayment Premiums distributable to the Class P
      Certificates.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      startup day for each REMIC created hereby for purposes of the REMIC Provisions
      is the Closing Date. In addition, for purposes of the REMIC Provisions, the
      latest possible maturity date for each regular interest in each REMIC created
      hereby is the Latest Possible Maturity Date.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    REMIC
      1

     

    The
      following table sets forth (or describes) the Class designation, interest rate,
      and initial principal amount for each Class of REMIC 1 Interests.

     

    
      	
              Class
                
Designation

            	 	
               

              Interest
                Rate

            	 	
              Initial
                Class 
Principal Amount

            	 	
              Related
                Mortgage 
Pool or
Senior
                
Certificates

            	 	
              
                
                  Corresponding
Class
                    of
Certificates

              

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A1A

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A1A
                

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A1B

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A1B

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A2A

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A2AU

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A2B

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A2B

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A31

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A31U

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A32A1

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A32A1U

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A32A2

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A3A2A2

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A32B

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A32B

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A4A

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A4A

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A4B

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A4B

            
	 	 	 	 	 	 	 	 	 
	
              LT1-1A4C

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              1-A4C

            
	 	 	 	 	 	 	 	 	 
	
              LT1-2A

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              2-A

            
	 	 	 	 	 	 	 	 	 
	
              LT1-M1

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              M1

            
	 	 	 	 	 	 	 	 	 
	
              LT1-M2

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              M2

            
	 	 	 	 	 	 	 	 	 
	
              LT1-M3

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              M3

            
	 	 	 	 	 	 	 	 	 
	
              LT1-M4

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              M4

            
	 	 	 	 	 	 	 	 	 
	
              LT1-M5

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              M5

            
	 	 	 	 	 	 	 	 	 
	
              LT1-M6

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              M6

            
	 	 	 	 	 	 	 	 	 
	
              LT1-M7

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              M7

            
	 	 	 	 	 	 	 	 	 
	
              LT1-M8

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              M8

            
	 	 	 	 	 	 	 	 	 
	
              LT1-M9

            	 	
              (1)

            	 	
              (2)

            	 	
              N/A

            	 	
              M9

            
	 	 	 	 	 	 	 	 	 
	
              LT1-XI

            	 	
              (1)

            	 	
              (3)

            	 	
              N/A

            	 	
              N/A

            
	 	 	 	 	 	 	 	 	 
	
              LT1-IA

            	 	
              (1)

            	 	
              (4)

            	 	
              Pool
                1/ Pool 1 Senior Certificates

            	 	 
	 	 	 	 	 	 	 	 	 
	
              LT1-IB

            	 	
              (5)

            	 	
              (6)

            	 	
              Pool
                1/ Pool 1 Senior Certificates

            	 	 
	 	 	 	 	 	 	 	 	 
	
              LT1-IIA

            	 	
              (1)

            	 	
              (7)

            	 	
              Pool
                2/ Pool
                2 Senior Certificates

            	 	 
	 	 	 	 	 	 	 	 	 
	
              LT1-IIB

            	 	
              (8)

            	 	
              (9)

            	 	
              Pool
                2/ Pool
                2 Senior Certificates

            	 	 
	 	 	 	 	 	 	 	 	 
	
              LT1-XII

            	 	
              (1)

            	 	
              (10)

            	 	
              N/A

            	 	
              N/A

            
	 	 	 	 	 	 	 	 	 
	
              LT1-R

            	 	
              (11)

            	 	
              (11)

            	 	
              N/A

            	 	
              N/A

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              (1)

            	
              The
                interest rate with respect to any Distribution Date (and the related
                Accrual Period) for each of these REMIC 1 Interests is a per annum
                rate
                equal to the weighted average of the interest rates on 100% of the
                aggregate Mortgage Loans in Pool 1 and Pool
                2.

            

    

     

    
      	
              (2)

            	
              The
                initial principal amount for each of these REMIC 1 Interests equals
                25% of
                the initial principal amount of the Corresponding Class of
                Certificates.

            

    

     

    
      	
              (3)

            	
              This
                interest shall have an initial principal balance equal to the excess
                of
                (i) 50% of the aggregate Pool Balance of the Mortgage Pools as of
                the
                Cut-off Date over (ii) the aggregate initial principal balance of
                the
                REMIC 1-I Marker Classes.

            

    

     

    
      	
              (4)

            	
              The
                initial principal amount for the Class LT1-IA Interest shall equal
                0.0005%
                of the Pool Subordinate Amount for Pool 1 as of the first Distribution
                Date.

            

    

     

    
      	
              (5)

            	
              The
                interest rate with respect to any Distribution Date for this interest
                is a
                per annum rate equal to the Pool 1 Net Funds
                Cap.

            

    

     

    
      	
              (6)

            	
              The
                initial principal amount for the Class LT1-IB Interest shall equal
                0.0005%
                of the aggregate Scheduled Principal Balance of the Mortgage Loans
                in Pool
                1 as of the Cut-off Date.

            

    

     

    
      	
              (7)

            	
              The
                initial principal amount for the Class LT1-IIA Interest shall equal
                0.0005% of the Pool Subordinate Amount for Pool 2 as of the first
                Distribution Date.

            

    

     

    
      	
              (8)

            	
              The
                interest rate with respect to any Distribution Date for this interest
                is a
                per annum rate equal to the Pool 2 Net Funds
                Cap.

            

    

     

    
      	
              (9)

            	
              The
                initial principal amount for the Class LT1-IIB Interest shall equal
                0.0005% of the aggregate Scheduled Principal Balance of the Mortgage
                Loans
                in Pool 2 as of the Cut-off Date.

            

    

     

    
      	
              (10)

            	
              The
                initial principal amount for the Class LT1-XII Interest shall equal
                the
                excess of (i) 50% of the aggregate Pool Balance of Pool 1 and Pool
                2 as of
                the Cut-off Date over (ii) the aggregate initial principal balance
                of the
                REMIC I-II Marker Classes.

            

    

     

    
      	
              (11)

            	
              The
                Class LT1-R Interest is the sole Class of residual interest in REMIC
                1. It
                does not have an interest rate or a principal
                balance.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    REMIC
      2

     

    The
      following table sets forth (or describes) the Class designation, interest rate,
      and initial principal amount for each Class of REMIC 2 Interests.

     

    
      	
              Class

            	 	
              Interest

            	 	 	
              Initial
                Class

            	 	
              Class
                of Related

            
	
              Designation

            	 	
              Rate

            	 	 	
              Principal
                Amount

            	 	
              Certificates

            
	 	 	 	 	 	 	 	 
	
              LT2-A1A

            	 	
              (1)

            	 	$ 	
              288,202,000
                

            	 	
              1-A1A
                

            
	 	 	 	 	 	 	 	 
	
              LT2-1AB

            	 	
              (1)

            	 	$	
              32,022,000
                

            	 	
              1-A1B

            
	 	 	 	 	 	 	 	 
	
              LT2-A2AU

            	 	
              (1)

            	 	$ 	
              138,008,000
                

            	 	
              1-A2AU

            
	 	 	 	 	 	 	 	 
	
              LT2-1A2B

            	 	
              (1)

            	 	$ 	
               15,334,000
                

            	 	
              1-A2B

            
	 	 	 	 	 	 	 	 
	
              LT2-1A31U

            	 	
              (1)

            	 	$	
              150,000,000
                

            	 	
              1-A31U

            
	 	 	 	 	 	 	 	 
	
              LT2-1A32A1U

            	 	
              (1)

            	 	$	
              142,450,000
                

            	 	
              1-A32A1U

            
	 	 	 	 	 	 	 	 
	
              LT2-1A32A2

            	 	
              (1)

            	 	$	
              7,497,000
                

            	 	
              1-A32A2

            
	 	 	 	 	 	 	 	 
	
              LT2-1A32B

            	 	
              (1)

            	 	$	
              16,661,000
                

            	 	
              1-A32B

            
	 	 	 	 	 	 	 	 
	
              LT2-1A4A

            	 	
              (1)

            	 	$	
              335,000,000
                

            	 	
              1-A4A

            
	 	 	 	 	 	 	 	 
	
              LT2-1A4B

            	 	
              (1)

            	 	$	
              111,000,000
                

            	 	
              1-A4B

            
	 	 	 	 	 	 	 	 
	
              LT2-1A4C

            	 	
              (1)

            	 	$	
              52,000,000
                

            	 	
              1-A4C

            
	 	 	 	 	 	 	 	 
	
              LT2-2A

            	 	
              (1)

            	 	$	
              694,913,000
                

            	 	
              2-A

            
	 	 	 	 	 	 	 	 
	
              LT2-M1

            	 	
              (1)

            	 	$	
              57,674,000
                

            	 	
              M1

            
	 	 	 	 	 	 	 	 
	
              LT2-M2

            	 	
              (1)

            	 	$	
              47,692,000
                

            	 	
              M2

            
	 	 	 	 	 	 	 	 
	
              LT2-M3

            	 	
              (1)

            	 	$	
              12,200,000
                

            	 	
              M3

            
	 	 	 	 	 	 	 	 
	
              LT2-M4

            	 	
              (1)

            	 	$	
              31,055,000
                

            	 	
              M4

            
	 	 	 	 	 	 	 	 
	
              LT2-M5

            	 	
              (1)

            	 	$	
              13,309,000
                

            	 	
              M5

            
	 	 	 	 	 	 	 	 
	
              LT2-M6

            	 	
              (1)

            	 	$	
              13,309,000
                

            	 	
              M6

            
	 	 	 	 	 	 	 	 
	
              LT2-M7

            	 	
              (1)

            	 	$	
              11,091,000
                

            	 	
              M7

            
	 	 	 	 	 	 	 	 
	
              LT2-M8

            	 	
              (1)

            	 	$ 	
              11,091,000
                

            	 	
              M8

            
	 	 	 	 	 	 	 	 
	
              LT2-M9

            	 	
              (1)

            	 	$	
              11,091,000

            	 	
              M9

            
	 	 	 	 	 	 	 	 
	
              Uncertficated
                Class X Interest

            	 	
              (2)

            	 	 	
              (2)

            	 	 
	 	 	 	 	 	 	 	 
	
              Residual
                Interest

            	 	
              (3)

            	 	 	
              (3)

            	 	
              N/A

            
	 	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              (1)

            	
              The
                interest rate with respect to any Distribution Date (and the related
                Accrual Period) for each of these REMIC 2 Interests is a per annum
                rate
                equal to the Certificate Interest Rate for the Related Certificates,
                provided that the REMIC 2 Interests shall not be entitled to payments
                in
                respect of Excess Interest or from the Capitalized Interest
                Account.

            

    

     

    
      	
              (2)

            	
              The
                Uncertificated Class X Interest shall have an initial principal balance
                equal to $26,619,289.81. The Uncertificated Class X Interest shall
                accrue
                interest on a notional balance equal to the Class X Notional Balance
                at a
                rate equal to the Class X Interest Rate. The Uncertificated Class
                X
                Interest shall be represented by the Class X
                Certificates.

            

    

     

    
      	
              (3)

            	
              The
                Residual Interest is the sole Class of residual interest in REMIC
                2. It
                does not have an interest rate or a principal balance. The Residual
                Interest shall be represented by the Class R
                Certificates.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    The
      Certificates

     

    The
      following table sets forth (or describes) the Class designation, Certificate
      Interest Rate, initial Class Principal Amount (or Class Notional Amount) and
      minimum denomination for each Class of Certificates comprising interests in
      the
      Trust Fund created hereunder and for each Class of Grantor Trust Certificates.
      Each LIBOR Certificate and Class X Certificate represents ownership of regular
      interests in REMIC 2 and, in the case of the LIBOR Certificates, rights to
      certain other payments as set forth herein. Each Grantor Trust Certificate
      represents a beneficial interest in a grantor trust, the assets of which consist
      of the related Underlying Certificate, the associated Cap Agreement, the
      associated Deferred Interest Cap Agreement and the associated Deferred Interest
      Cap Account.

    

      
        	 	 	 	 	
                Initial
                  Class

              	 	 	 
	 	 	 	 	
                Principal
                  Amount

              	 	 	 
	 	 	 	 	
                or
                  Class Notional

              	 	
                Minimum

              	 
	
                Class
                  Designation

              	 	
                Interest
                  Rate

              	 	
                Amount
                  ($)

              	 	
                Denominations

              	 
	 	 	 	 	 	 	 	 
	
                Class
                  1-A1A 

              	 	 	
                (1)

              	
                 

              	
                $

              	
                288,202,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A1B 

              	 	 	
                (2)

              	
                 

              	
                $

              	
                32,022,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A2AU

              	 	 	
                (3)

              	
                 

              	
                $

              	
                138,008,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A2A

              	 	 	
                (4)

              	
                 

              	
                $

              	
                138,008,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A2B

              	 	 	
                (5)

              	
                 

              	
                $

              	
                15,334,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A31U

              	 	 	
                (6)

              	
                 

              	
                $

              	
                150,000,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A31

              	 	 	
                (7)

              	
                 

              	
                $

              	
                150,000,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A32A1U

              	 	 	
                (8)

              	
                 

              	
                $

              	
                142,450,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A32A1

              	 	 	
                (9)

              	
                 

              	
                $

              	
                142,450,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A32A2

              	 	 	
                (10)

              	
                 

              	
                $

              	
                7,497,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A32B

              	 	 	
                (11)

              	
                 

              	
                $

              	
                16,661,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A4A

              	 	 	
                (12)

              	
                 

              	
                $

              	
                335,000,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A4B

              	 	 	
                (13)

              	
                 

              	
                $

              	
                111,000,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  1-A4C

              	 	 	
                (14)

              	
                 

              	
                $

              	
                52,000,000

              	 	
                $

              	
                25,000.00

              	 
	
                Class
                  2-A

              	 	 	
                (15)

              	
                 

              	
                $

              	
                694,913,000

              	 	
                $

              	
                100,000.00

              	 
	
                Class
                  M1

              	 	 	
                (16)

              	
                 

              	
                $

              	
                57,674,000

              	 	
                $

              	
                100,000.00

              	 
	
                Class
                  M2

              	 	 	
                (17)

              	
                 

              	
                $

              	
                47,692,000

              	 	
                $

              	
                100,000.00

              	 
	
                Class
                  M3

              	 	 	
                (18)

              	
                 

              	
                $

              	
                12,200,000

              	 	
                $

              	
                100,000.00

              	 
	
                Class
                  M4

              	 	 	
                (19)

              	
                 

              	
                $

              	
                31,055,000

              	 	
                $

              	
                100,000.00

              	 
	
                Class
                  M5

              	 	 	
                (20)

              	
                 

              	
                $

              	
                13,309,000

              	 	
                $

              	
                100,000.00

              	 
	
                Class
                  M6

              	 	 	
                (21)

              	
                 

              	
                $

              	
                13,309,000

              	 	
                $

              	
                100,000.00

              	 
	
                Class
                  M7

              	 	 	
                (22)

              	
                 

              	
                $

              	
                11,091,000

              	 	
                $

              	
                100,000.00

              	 
	
                Class
                  M8

              	 	 	
                (23)

              	
                 

              	
                $

              	
                11,091,000

              	 	
                $

              	
                100,000.00

              	 
	
                Class
                  M9

              	 	 	
                (24)

              	
                 

              	
                $

              	
                11,091,000

              	 	
                $

              	
                100,000.00

              	 
	
                Class
                  X

              	 	 	
                (25)

              	
                 

              	 	
                (25)

              	
                 

              	 	
                (28)

              	
                 

              
	
                Class
                  P

              	 	 	
                (26)

              	
                 

              	 	
                (26)

              	
                 

              	 	
                (28)

              	
                 

              
	
                Class
                  R

              	 	 	
                (27)

              	
                 

              	 	
                (27)

              	
                 

              	 	
                (28)

              	
                 

              
	
                Class
                  C

              	 	 	
                (29)

              	
                 

              	 	
                (29)

              	
                 

              	 	
                (28)

              	
                 

              

      

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              (1)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A1A Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.080% (the “1-A1A Margin”) and
                (ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A1A Certificates
                will be LIBOR plus 0.160%.

            

    

     

    
      	
              (2)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A1B Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.120% (the “1-A1B Margin”) and
                (ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A1B Certificates
                will be LIBOR plus 0.240%.

            

    

     

    
      	
              (3)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A2AU Certificates is the
                per annum
                rate equal to the lesser of (i) LIBOR plus 0.150% (the “1-A2A Margin”) and
                (ii) the Pool 1 Net FundsCap for such Distribution Date; provided,
                that if
                the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A2AU Certificates
                will be LIBOR plus 0.300%.

            

    

     

    
      	
              (4)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A2A Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.150% (the “1-A2A Margin”) and
                (ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A2A Certificates
                will be LIBOR plus 0.300%.

            

    

     

    
      	
              (5)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A2B Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.210% (the “1-A2B Margin”) and
                (ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A2B Certificates
                will be LIBOR plus 0.420%.

            

    

     

    
      	
              (6)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A31U Certificates is the
                per annum
                rate equal to the lesser of (i) LIBOR plus 0.210% (the “1-A1B Margin”) and
                (ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A31U Certificates
                will be LIBOR plus 0.420%.

            

    

     

    
      	
              (7)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A31 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.210% (the “1-A31 Margin”) and
                (ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A31 Certificates
                will be LIBOR plus 0.420%.

            

    

     

    
      	
              (8)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A32A1U Certificates is the
                per
                annum rate equal to the lesser of (i) LIBOR plus 0.200% (the “1-A32A1U
                Margin”) and (ii) the Pool 1 Net Funds Cap for such Distribution Date;
                provided, that if the Mortgage Loans and related property are not
                purchased pursuant to Section 7.01(b) on the Initial Optional Termination
                Date, then with respect to each subsequent Distribution Date the
                per annum
                rate calculated pursuant to clause (i) above with respect to the
                Class
                1-A32A1U Certificates will be LIBOR plus
                0.400%.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              (9)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A32A1 Certificates is the
                per
                annum rate equal to the lesser of (i) LIBOR plus 0.200% (the “1-A32A1
                Margin”) and (ii) the Pool 1 Net Funds Cap for such Distribution Date;
                provided, that if the Mortgage Loans and related property are not
                purchased pursuant to Section 7.01(b) on the Initial Optional Termination
                Date, then with respect to each subsequent Distribution Date the
                per annum
                rate calculated pursuant to clause (i) above with respect to the
                Class
                1-A32A1 Certificates will be LIBOR plus
                0.400%.

            

    

     

    
      	
              (10)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A32A2 Certificates is the
                per
                annum rate equal to the lesser of (i) LIBOR plus 0.320% (the “1-A32A2
                Margin”) and (ii) the Pool 1 Net Funds Cap for such Distribution Date;
                provided, that if the Mortgage Loans and related property are not
                purchased pursuant to Section 7.01(b) on the Initial Optional Termination
                Date, then with respect to each subsequent Distribution Date the
                per annum
                rate calculated pursuant to clause (i) above with respect to the
                Class
                1-A32A2 Certificates will be LIBOR plus
                0.640%.

            

    

     

    
      	
              (11)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A32B Certificates is the
                per annum
                rate equal to the lesser of (i) LIBOR plus 0.260% (the “1-A32B Margin”)
                and (ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A32B Certificates
                will be LIBOR plus 0.520%.

            

    

     

    
      	
              (12)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A4A Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.190% (the “1-A4A Margin”) and
                (ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A4A Certificates
                will be LIBOR plus 0.380%.

            

    

     

    
      	
              (13)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A4B Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.240% (the “1-A4B Margin”) and
                (ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A4B Certificates
                will be LIBOR plus 0.480%.

            

    

     

    
      	
              (14)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 1-A4C Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.280% (the “1-A4C Margin”) and
                (ii) the Pool 1 Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 1-A4C Certificates
                will be LIBOR plus 0.560%.

            

    

     

    
      	
              (15)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class 2-A Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.200% (the “2-A Margin”) and
                (ii) the Pool 2 Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class 2-A Certificates
                will be LIBOR plus 0.400%.

            

    

     

    
      	
              (16)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M1 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.380% (the “M1 Margin”) and
                (ii) the Subordinate Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M1 Certificates
                will be LIBOR plus 0.570%.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              (17)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M2 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.400% (the “M2 Margin”) and
                (ii) the Subordinate Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M2 Certificates
                will be LIBOR plus 0.600%.

            

    

     

    
      	
              (18)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M3 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.430% (the “M3 Margin”) and
                (ii) the Subordinate Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M3 Certificates
                will be LIBOR plus 0.645%.

            

    

     

    
      	
              (19)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M4 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.520% (the “M4 Margin”) and
                (ii) the Subordinate Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M4 Certificates
                will be LIBOR plus 0.780%.

            

    

     

    
      	
              (20)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M5 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.560% (the “M5 Margin”) and
                (ii) the Subordinate Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M5 Certificates
                will be LIBOR plus 0.840%.

            

    

     

    
      	
              (21)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M6 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.630% (the “M6 Margin”) and
                (ii) the Subordinate Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M6 Certificates
                will be LIBOR plus 0.945%.

            

    

     

    
      	
              (22)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M7 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 1.100% (the “M7 Margin”) and
                (ii) the Subordinate Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M7 Certificates
                will be LIBOR plus 1.650%.

            

    

     

    
      	
              (23)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M8 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 1.350% (the “M8 Margin”) and
                (ii) the Subordinate Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M8 Certificates
                will be LIBOR plus 2.025%.

            

    

     

    
      	
              (24)

            	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M9 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 1.750% (the “M9 Margin”) and
                (ii) the Subordinate Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M9 Certificates
                will be LIBOR plus 2.625%.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              (25)

            	
              The
                Class X Certificate shall have an initial principal balance of
                $26,619,289.81. For each Distribution Date, the Class X Certificate
                shall
                be entitled to the Class X Current Interest. Unpaid interest on the
                Class
                X Certificates shall not itself bear
                interest.

            

    

     

    
      	
              (26)

            	
              The
                Class P Certificates will be entitled to receive Prepayment Premiums
                paid
                by borrowers upon voluntary full or partial prepayment of the Mortgage
                Loans.

            

    

     

    
      	
              (27)

            	
              The
                Class R Certificate will be issued without a Certificate Principal
                Amount
                and will not bear interest at a stated rate. The Class R Certificate
                represents ownership of the residual interest in REMIC 2, as well
                as
                ownership of the Class LT1-R
                Interest.

            

    

     

    
      	
              (28)

            	
              The
                Class X, Class P and Class C Certificates will each be issued in
                minimum
                Percentage Interests of 10% and increments of 1% thereafter. The
                Class R
                Certificate will be issued as a single Certificate evidencing the
                entire
                Percentage Interest in such Class.

            

    

     

    
      	
              (29)

            	
              The
                Class C Certificates will be issued without a Certificate Principal
                Amount
                and will not bear interest at a stated rate. The Class C Certificates
                shall be entitled to receive all reinvestment income on amounts on
                deposit
                in the Class X Account and amounts on deposit in the Class X Account
                on
                the Distribution Date as described herein as provided in Section
                5.02(e).

            

    

     

    As
      of the
      Cut-off Date, the Mortgage Loans had an aggregate Scheduled Principal Balance
      of
      $2,218,218,289.81. 

     

    In
      consideration of the mutual agreements herein contained, the Depositor, the
      Seller, the Master Servicer and the Trustee hereby agree as
      follows:

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      I.

     

    DEFINITIONS

     

    Section
      1.01  Definitions.

     

    The
      following words and phrases, unless the context otherwise requires, shall have
      the following meanings:

     

    10-K
      Filing Deadline:
      As
      defined in Section 6.20(d)(i).

     

    1-A1A
      Margin:
      As
      defined in footnote (1) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A1B
      Margin:
      As
      defined in footnote (2) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A2A
      Margin:
      As
      defined in footnote (4) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A2AU
      Margin:
      As
      defined in footnote (3) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A2B
      Margin:
      As
      defined in footnote (5) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A31
      Margin:
      As
      defined in footnote (7) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A31U
      Margin:
      As
      defined in footnote (6) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A32A1
      Margin:
      As
      defined in footnote (9) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A32A1U
      Margin:
      As
      defined in footnote (8) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A32A2
      Margin:
      As
      defined in footnote (10) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A32B
      Margin:
      As
      defined in footnote (11) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A4A
      Margin:
      As
      defined in footnote (12) of the Preliminary Statement under the caption “The
      Certificates”.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    1-A4B
      Margin:
      As
      defined in footnote (13) of the Preliminary Statement under the caption “The
      Certificates”.

     

    1-A4C
      Margin:
      As
      defined in footnote (14) of the Preliminary Statement under the caption “The
      Certificates”.

     

    2-A
      Margin:
      As
      defined in footnote (15) of the Preliminary Statement under the caption “The
      Certificates”.

     

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

     

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

     

    Accrual
      Period:
      For the
      LIBOR Certificates, the Related REMIC 2 Interests, the Grantor Trust
      Certificates and the REMIC 1 Interests for each Distribution Date, the period
      beginning on the immediately preceding Distribution Date (or on September 25,
      2006, in the case of the first Distribution Date) and ending on the day
      immediately preceding the related Distribution Date. The LIBOR Certificates,
      their Related REMIC 2 Interests, the Grantor Trust Certificates and the REMIC
      1
      Interests shall accrue interest on the basis of a 360-day year and the actual
      number of days in each Accrual Period.

     

    Act:
      As
      defined in Section 3.03(c)(ii).

     

    Additional
      Form 10-D Disclosure:
      As
      defined in Section 6.20(c)(i).

     

    Additional
      Form 10-K Disclosure:
      As
      defined in Section 6.20(d)(i).

     

    Additional
      Servicer:
      Each
      affiliate of each Servicer that Services any of the Mortgage Loans and each
      Person who is not an affiliate of the any Servicer, who Services 10% or more
      of
      the Mortgage Loans.

     

    Advance:
      An
      advance of the aggregate of payments of principal and interest (net of the
      applicable Servicing Fee) on one or more Mortgage Loans that were due on the
      Due
      Date in the related Collection Period and not received as of the close of
      business on the related Determination Date, required to be made by a Servicer
      or
      by the Master Servicer on behalf of a Servicer (or by the Trustee as successor
      master servicer) pursuant to Section 5.04.

     

    Adverse
      REMIC Event:
      Either
      (i) loss of status as a REMIC, within the meaning of Section 860D of the Code,
      for any group of assets identified as a REMIC in the Preliminary Statement
      to
      this Agreement, or (ii) imposition of any tax, including the tax imposed under
      Section 860F(a)(1) on prohibited transactions, and the tax imposed under Section
      860G(d) on certain contributions to a REMIC, on any REMIC created
      hereunder.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

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

     

    Aggregate
      Loan Balance:
      As of
      any Distribution Date, the total Scheduled Principal Balance of the Mortgage
      Loans included in Pool 1 and Pool 2 for that Distribution Date.

     

    Aggregate
      Voting Interests:
      The
      aggregate of the Voting Interests of all the Certificates under this
      Agreement.

     

    Agreement:
      This
      Trust Agreement and all amendments and supplements hereto.

     

    Applied
      Loss Amount:
      With
      respect to any Distribution Date, the amount, if any, by which (x) the aggregate
      Certificate Principal Amount of the LIBOR Certificates after giving effect
      to
      all Realized Losses incurred with respect to the Mortgage Loans during the
      related Collection Period and distributions of principal on such Distribution
      Date, but before giving effect to any application of the Applied Loss Amount
      with respect to such date, exceeds (y) the Aggregate Loan Balance for such
      Distribution Date.

     

    Apportioned
      Principal Balance:
      For any
      Class of Subordinate Certificates for any Distribution Date, the Class Principal
      Amount of that Class immediately prior to that Distribution Date multiplied
      by a
      fraction, the numerator of which is the applicable Pool Subordinate Amount
      for
      that date and the denominator of which is the sum of the Pool Subordinate
      Amounts for each Mortgage Pool for that date.

     

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

     

    Assignment
      of Mortgage:
      An
      assignment of the Mortgage, notice of transfer or equivalent instrument, in
      recordable form, sufficient under the laws of the jurisdiction wherein the
      related Mortgaged Property is located to reflect the sale of the Mortgage to
      the
      Trustee, which assignment, notice of transfer or equivalent instrument may
      be in
      the form of one or more blanket assignments covering the Mortgage Loans secured
      by Mortgaged Properties located in the same jurisdiction, if permitted by law;
      provided, however, that neither the applicable Custodian nor the Trustee shall
      be responsible for determining whether any such assignment is in recordable
      form.

     

    Aurora:
      Aurora
      Loan Services LLC or its successors in interest.

     

    Authenticating
      Agent:
      Any
      authenticating agent appointed by the Trustee pursuant to Section
      6.10.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Authorized
      Officer:
      Not
      applicable.

     

    Back-Up
      Certification:
      As
      defined in Section 6.20(d)(iv).

     

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

     

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

     

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

     

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

     

    Basis
      Risk Payment:
      With
      respect to any Distribution Date, an amount equal to the sum of (i) any Basis
      Risk Shortfall for such Distribution Date not otherwise funded out of amounts
      in
      the Cap Agreement Account and (ii) any Unpaid Basis Risk Shortfall for such
      Distribution Date not otherwise funded out of amounts in the Cap Agreement
      Account. The amount of the Basis Risk Payment for any Distribution Date,
      however, cannot exceed the amount of Monthly Excess Cashflow that would be
      distributable to the Class X Certificate pursuant to Section 5.02(d) hereof
      on
      such Distribution Date (as determined under the definition of “Class X
      Distributable Amount” without regard to the Basis Risk Payment for such
      Distribution Date).

     

    Basis
      Risk Reserve Fund:
      A fund
      created as part of the Trust Fund pursuant to Section 5.06 of this Agreement
      but
      which is not an asset of any of the REMICs.

     

    Basis
      Risk Shortfall:
      With
      respect to any Distribution Date and any Class of LIBOR Certificates, the amount
      by which the amount of interest calculated at the Certificate Interest Rate
      applicable to such Class for such date, determined without regard to the
      applicable Net Funds Cap for such date but subject to a cap equal to the Maximum
      Interest Rate of the Mortgage Pool to which such Class relates, exceeds the
      amount of interest calculated at the applicable Net Funds Cap.

     

    Benefit
      Plan Opinion:
      Not
      applicable.

     

    Book-Entry
      Certificates:
      Beneficial interests in Certificates designated as “Book-Entry Certificates” in
      this Agreement, ownership and transfers of which shall be evidenced or made
      through book entries by a Clearing Agency as described in Section 3.09;
      provided, that after the occurrence of a condition whereupon book-entry
      registration and transfer are no longer permitted and Definitive Certificates
      are to be issued to Certificate Owners, such Book-Entry Certificates shall
      no
      longer be “Book-Entry Certificates.” As of the Closing Date, the Offered
      Certificates constitute Book-Entry Certificates.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Bulk
      PMI Policy:
      Not
      applicable.

     

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday, (ii) a day on which banking institutions
      in New York City, New York or, if other than New York City, the city in which
      the Corporate Trust Office of the Trustee is located and the States of Colorado,
      Massachusetts, Minnesota or New York, or (iii) with respect to the Servicer
      Remittance Date or the Servicer reporting date, the States specified in the
      definition of “Business Day” in the Servicing Agreements, are authorized or
      obligated by law or executive order to be closed.

     

    Cap
      Agreement:
      Each of
      the Interest Rate Cap Agreements dated as of September 29, 2006, entered into
      between the Trustee on behalf of the Class 1-A2A Certificateholders
      and the Class 1-A32A1 Certificateholders,
      as
      applicable, and the Cap Provider, which agreements provide for the monthly
      payment, commencing on the Distribution Date in October 2006 and terminating
      on
      the Distribution Date in (x) June 2009, with respect to the Cap Agreement
      relating to the Class 1-A2A Certificates and (y) June 2013, with respect to
      the
      Cap Agreements relating to the Class 1-A32A1 Certificates, by the Cap Provider,
      but subject to the conditions set forth therein, together with the confirmation
      and schedules relating thereto, each of which is attached hereto as Exhibit
      N.
      The Cap Provider will be obligated to pay to the applicable Grantor Trust Fund
      at least one Business Day prior to each Distribution Date, commencing with
      the
      Distribution Date in October 2006 and ending with the Distribution Date in
      (x)
      June 2009, with respect to the Cap Agreement relating to the Class 1-A2A
      Certificates and (y) June 2013, with respect to the Cap Agreements relating
      to
      the Class 1-A32A1 Certificates, one month’s interest calculated at an annual
      rate equal to the lesser of (i) 1.875% and (ii) the excess, if any, of LIBOR
      over the respective strike rate (the “Strike Rate”) in effect for such
      Distribution Date based on a calculated notional amount as described in the
      Cap
      Agreement, multiplied by the actual number of days in the Accrual Period
      (treating, solely for purposes of such calculation, the initial Accrual Period
      as beginning on the Closing Date and ending on the day immediately preceding
      the
      initial Distribution Date), and divided by 360.

     

    Cap
      Agreement Account:
      The
      account described in Section 5.02(g) hereof.

     

    Cap
      Deferred Interest Amount:
      As of
      any Distribution Date and with respect to each Grantor Trust Certificate, the
      amount, if any, of Deferred Interest allocated to the underlying Class 1-A2AU,
      Class 1-A32A1U or Class 1-A31U Certificates, as applicable, to the extent
      covered by a previous payment made by the Cap Provider and not previously paid
      to the Cap Provider.

     

    Cap
      Payment Date: For so long as any Deferred
      Interest Cap Agreement is in effect or any amounts remain unpaid thereunder,
      the
      Business Day prior to each Distribution Date.

     

    Cap
      Provider:
      Lehman
      Brothers Special Financing Inc.

     

    Cap
      Termination Payment: Upon an optional
      termination pursuant to Section 7.01(b), any payment required to be made to
      the
      Cap Provider or by the Cap Provider to the applicable trust pursuant to the
      terms of the applicable Deferred Interest Cap Agreement, and any unpaid amounts
      due on previous Cap Payment Dates and accrued interest thereon as provided
      in
      the applicable Deferred Interest Cap Agreement, as calculated by the Cap
      Provider and furnished to the Trustee.

     

    Capitalized
      Interest Account:
      A trust
      account, established by the Trustee for the benefit of the holders of the LIBOR
      Certificates and the Seller.

     

    Capitalized
      Interest Amount:
      $15,000.

     

    Carryforward
      Interest:
      With
      respect to any Distribution Date and any Class of LIBOR Certificates, the sum
      of
      (i) the amount, if any, by which (x) the sum of (A) Current Interest for such
      Class for the immediately preceding Distribution Date and (B) any unpaid
      Carryforward Interest for such Class from previous Distribution Dates exceeds
      (y) the amount distributed in respect of interest on such Class on such
      immediately preceding Distribution Date, and (ii) interest on such amount for
      the related Accrual Period at the applicable Certificate Interest Rate.
      Carryforward Interest shall not include amounts attributable to an allocation
      of
      Deferred Interest.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Certificate:
      Any one
      of the certificates signed and countersigned by the Trustee in substantially
      the
      forms attached hereto as Exhibit A.

     

    Certificate
      Account:
      The
      account maintained by the Trustee in accordance with the provisions of Section
      4.04.

     

    Certificate
      Group:
      Not
      applicable.

     

    Certificate
      Insurance Policy:
      Not
      applicable.

     

    Certificate
      Insurance Premium:
      Not
      applicable.

     

    Certificate
      Insurer:
      Not
      applicable.

     

    Certificate
      Insurer Default:
      Not
      applicable.

     

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

     

    Certificate
      Owner:
      With
      respect to a Book-Entry Certificate, the Person who is the owner of such
      Book-Entry Certificate, as reflected on the books of the Clearing Agency, or
      on
      the books of a Person maintaining an account with such Clearing Agency (directly
      or as an indirect participant, in accordance with the rules of such Clearing
      Agency).

     

    Certificate
      Principal Amount:
      With
      respect to any Certificate (other than the Class X, Class C, Class P and Class
      R
      Certificates) and any Distribution Date, the initial Certificate Principal
      Amount thereof on the Closing Date, less the amount of all principal
      distributions previously distributed with respect to such Certificate prior
      to
      such Distribution Date, and as reduced by any Applied Loss Amount previously
      allocated thereto, plus, in the case of any Negative Amortization Certificate,
      any Deferred Interest allocated thereto on previous Distribution Dates;
      provided, however, that on each Distribution Date on which a Subsequent Recovery
      is distributed, the Certificate Principal Amount of any Certificate that has
      been reduced by application of an Applied Loss Amount will be increased, in
      order of seniority, by an amount (to be applied pro
      rata
      to all
      Certificates of such Class) equal to the lesser of (1) any Deferred Amount
      for
      each such Class immediately prior to such date and (2) the total amount of
      any
      Subsequent Recovery distributed on such date to Certificateholders, after
      application (for this purpose) to more senior Classes of such Certificates.
      The
      Class X, Class C, Class P and Class R Certificates are issued without
      Certificate Principal Amounts.

     

    Certificate
      Register and Certificate Registrar:
      The
      register maintained and the registrar appointed pursuant to Section
      3.02.

     

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

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Certification
      Parties:
      As
      defined in Section 6.20(d)(iv).

     

    Certifying
      Person:
      As
      defined in Section 6.20(d)(iv).

     

    Class:
      All
      Certificates and, in the case of REMIC 1, all Lower Tier Interests bearing
      the
      same Class designation.

     

    Class
      1-A2A Grantor Trust:
      The
      Grantor Trust formed pursuant to this Agreement, the assets of which consist
      of
      (i) the Class 1-A2AU Certificates, (ii) the related Deferred Interest Cap
      Agreement, (iii)
      the
      Cap Agreement relating to the Class 1-A2A Certificates and
      (iv)
      the related Grantor Trust Certificate Account.

     

    Class
      1-A31 Grantor Trust:
      The
      Grantor Trust formed pursuant to this Agreement, the assets of which consist
      of
      (i) the Class 1-A31U Certificates, (ii) the related Deferred Interest Cap
      Agreement and (iii) the related Grantor Trust Certificate Account.

     

    Class
      1-A32A1 Grantor Trust:
      The
      Grantor Trust formed pursuant to this Agreement, the assets of which consist
      of
      (i) the Class 1-A32A1U Certificates, (ii) the related Deferred Interest Cap
      Agreement, (iii) the Cap Agreement relating to the Class 1-A32A1 Certificates
      and (iv) the related Grantor Trust Certificate Account.

     

    Class
      C Distributable Amount:
      For
      each Distribution Date on and prior to the Distribution Date occurring on the
      Class X Account Termination Date, an amount equal to the lesser of (a) aggregate
      investment earnings on the Class X Account for the related Collection Period
      and
      (b) the amount on deposit in the Class X Account on such Distribution Date,
      after taking into account any payments made from the Class X Account on such
      Distribution Date to the Class X Certificates. On the Distribution Date
      occurring on the Class X Account Termination Date, an amount equal to the entire
      amount remaining on deposit in the Class X Account after making the payments
      set
      forth in the preceding sentence.

     

    Class
      C Mortgage Loan:
      Any
      Mortgage Loan which has become a Liquidated Mortgage Loan on or prior to the
      Collection Period ending on March 1, 2009.

     

    Class
      CX Excess Cap Amount:
      Not
      applicable.

     

    Class
      I Shortfalls:
      As
      defined in Section 10.01(n) hereof.

     

    Class
      M Certificates:
      Any of
      the Class M1, Class M2, Class M3, Class M4, Class M5, Class M6, Class M7, Class
      M8 and Class M9 Certificates.

     

    Class
      Notional Amount:
      Not
      applicable.

     

    Class
      P Interest:
      Not
      applicable.

     

    Class
      P Principal Amount:
      Not
      applicable.

     

    Class
      Principal Amount:
      With
      respect to each Class of Certificates other than the Class R, Class P, Class
      C,
      and Class X Certificates, the aggregate of the Certificate Principal Amounts
      (or
      related Percentage Interest therein aggregating to 100%) of all Certificates
      of
      such Class at the date of determination. With respect to the Class R, Class
      P,
      Class C and Class X Certificates, zero.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Class
      R Certificate:
      The
      Class R Certificate executed by the Trustee, and authenticated and delivered
      by
      the Certificate Registrar, substantially in the form annexed hereto as Exhibit
      A
      and evidencing the ownership of the residual interest in each REMIC created
      hereunder.

     

    Class
      X Account:
      An
      account established as part of the Trust Fund pursuant to Section 5.12 of this
      Agreement, but which is not an asset of any of the REMICs, for the benefit
      of
      the Class X and Class C Certificates.

     

    Class
      X Account Termination Date:
      The
      Distribution Date in March 2009.

     

    Class
      X Current Interest:
      For any
      Distribution Date, the interest accrued during the related Accrual Period on
      the
      Class X Notional Balance at the Class X Interest Rate.

     

    Class
      X Distributable Amount:
      On any
      Distribution Date, the excess of (i) the sum of (x) $26,619,289.81, (y) the
      aggregate Class X Current Interest for such Distribution Date and all prior
      Distribution Dates and (z) amounts treated as received by the Class X
      Certificates in respect of Class I Shortfalls described in Section 10.01(n)
      over
      (ii) the sum of (w) the aggregate payments in respect of Excess Interest for
      such Distribution Date and all prior Distribution Dates, all prior distributions
      to the Class X Certificate under Section 5.02(d)(v) hereof .

     

    Class
      X Interest Rate:
      For any
      Distribution Date, the excess of (i) the weighted average of the interest rates
      on the REMIC 1-I Regular Interests over (ii) two times the weighted average
      of
      the interest rates on the REMIC 1-I Regular Interests (treating for purposes
      of
      this clause (ii) the interest rate on each of the REMIC 1-I Marker Classes
      as
      being capped at the interest rate of the Related REMIC 2 Interest of the
      Corresponding Classes of Certificates and treating the interest rate on the
      Class LT1-XI Interest as capped at zero). The average described in the preceding
      sentence shall be weighted on the basis of the respective principal balances
      of
      the REMIC 1-I Regular Interests immediately prior to such Distribution
      Date.

     

    Class
      X Notional Balance:
      With
      respect to any Distribution Date (and the related Accrual Period), the aggregate
      principal balance of the REMIC 1 Regular Interests immediately prior to such
      Distribution Date.

     

    Clearing
      Agency:
      An
      organization registered as a “clearing agency” pursuant to Section 17A of the
      Exchange Act. 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:
      Not
      applicable.

     

    Closing
      Date:
      September 29, 2006.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

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

     

    Collection
      Account:
      A
      separate account established and maintained by the Master Servicer pursuant
      to
      Section 4.01.

     

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

     

    Commission:
      The
      Securities and Exchange Commission.

     

    Commitment
      Letter:
      Not
      applicable.

     

    Compensating
      Interest Payment:
      With
      respect to any Distribution Date and prepayments in full or in part, an amount
      equal the aggregate amount of any Prepayment Interest Shortfalls required to
      be
      paid by a Servicer with respect to such Distribution Date. The Master Servicer
      shall not be responsible for making any Compensating Interest
      Payment.

     

    Component:
      Not
      applicable.

     

    Component
      Interest Rate:
      Not
      applicable.

     

    Component
      Principal Amount:
      Not
      applicable.

     

    Conventional
      Loan:
      Not
      applicable.

     

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

     

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

     

    Cooperative
      Loan Documents:
      As to
      any Cooperative Loan, (i) the Cooperative Shares, together with a stock power
      in
      blank; (ii) the original executed Security Agreement and the assignment of
      the
      Security Agreement endorsed in blank; (iii) the original executed Proprietary
      Lease and the assignment of the Proprietary Lease endorsed in blank; (iv) the
      original executed Recognition Agreement and the assignment of the Recognition
      Agreement (or a blanket assignment of all Recognition Agreements) endorsed
      in
      blank; (v) the executed UCC-1 financing statement with evidence of recording
      thereon, which has been filed in all places required to perfect the security
      interest in the Cooperative Shares and the Proprietary Lease; and (vi) executed
      UCC-3 financing statements (or copies thereof) or other appropriate UCC
      financing statements required by state law, evidencing a complete and unbroken
      line from the mortgagee to the Trustee with evidence of recording thereon (or
      in
      a form suitable for recordation).

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

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

     

    Cooperative
      Shares:
      Shares
      issued by a Cooperative Corporation.

     

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

     

    Corporate
      Trust Office:
      The
      principal corporate trust office of the Trustee is located at U.S. Bank National
      Association, One Federal Street, 3rd Floor, Boston, M.A. 02110, Attention:
      LXS
      2006-16N.

     

    Corresponding
      Class:
      The
      Class of Certificates that corresponds to a Class of Lower Tier Interests in
      REMIC 1 and as described in the Preliminary Statement.

     

    Credit
      Score:
      Not
      applicable.

     

    Cumulative
      Loss Trigger Event:
      With
      respect to any Distribution Date, a Cumulative Loss Trigger Event shall occur
      if
      the fraction, expressed as a percentage, obtained by dividing (x) the aggregate
      amount of cumulative Realized Losses incurred on the Mortgage Loans from the
      Cut-off Date through the last day of the related Collection Period by (y) the
      Cut-off Date Balance, exceeds the applicable percentages described below with
      respect to such Distribution Date.

    

      
        	
                Distribution
                  Date

              	 	
                Loss
                  Percentage

              
	
                 

              	 	
                 

              
	
                October
                  2009 through September 2010

              	 	
                0.50%
                  for the first month plus
                  an
                  additional 1/12th of 0.40% for each month thereafter.

              
	
                 

              	 	
                 

              
	
                October
                  2010 through September 2011

              	 	
                0.90%
                  for the first month plus
                  an
                  additional 1/12th of 0.35% for each month thereafter.

              
	
                 

              	 	
                 

              
	
                October
                  2011 through September 2012

              	 	
                1.25%
                  for the first month plus
                  an
                  additional 1/12th of 0.50% for each month thereafter.

              
	
                 

              	 	
                 

              
	
                October
                  2012 through September 2013

              	 	
                1.75%
                  for the first month plus
                  an
                  additional 1/12th of 0.15% for each month thereafter.

              
	
                 

              	 	
                 

              
	
                October
                  2013 and thereafter

              	 	
                1.90%

              

      

    

     

    Current
      Interest:
      With
      respect to any Class of LIBOR Certificates or Grantor Trust Certificates and
      any
      Distribution Date, the aggregate amount of interest accrued at the applicable
      Certificate Interest Rate during the related Accrual Period on the Class
      Principal Amount of such Class immediately prior to such Distribution Date
      minus
      the Deferred Interest, if any, allocated to that Class for that Distribution
      Date in accordance with section 5.02.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    Custodial
      Account:
      Any
      custodial account (other than an Escrow Account) established and maintained
      by
      the applicable Servicer pursuant to the applicable Servicing
      Agreement.

     

    Custodial
      Agreement:
      Each
      custodial agreement attached as Exhibit K hereto, and any custodial agreement
      subsequently executed by the Trustee and acknowledged by the Master Servicer
      substantially in the form thereof.

     

    Custodian:
      Each
      custodian appointed by the Trustee pursuant to a Custodial Agreement, and any
      successor thereto. The initial Custodians are Deutsche Bank National Trust
      Company and U.S. Bank National Association.

     

    Cut-off
      Date:
      With
      respect to all Mortgage Loans, September 1, 2006.

     

    Cut-off
      Date Balance:
      With
      respect to the Mortgage Loans in a Mortgage Pool on the Closing Date, the Pool
      Balance as of the Cut-off Date.

     

    Debt
      Service Reduction:
      With
      respect to any Mortgage Loan, a reduction of the Scheduled Payment that the
      related Mortgagor is obligated to pay on any Due Date as a result of, or in
      connection with, any proceeding under Bankruptcy law or any similar
      proceeding.

     

    Deferred
      Amount:
      For
      each Distribution Date and for each Class of LIBOR Certificates, the sum of
      (A)
      the amount by which (x) the aggregate of Applied Loss Amounts previously applied
      in reduction of the Class Principal Amount thereof exceeds (y) the sum of (1)
      the aggregate of amounts previously distributed in reimbursement thereof and
      (2)
      the amount by which the Class Principal Amount of such Class has been increased
      due to any Subsequent Recovery and (B) for the Senior Certificates only,
      interest accrued on the related amount calculated under clause (A).

     

    Deferred
      Interest:
      Any
      interest shortfall resulting from Net Negative Amortization.

     

    Deferred
      Interest Cap Account:
      The
      separate Eligible Account created and initially maintained by the Trustee
      entitled: “Grantor Trust Certificates Deferred Interest Cap Account, U.S. Bank
      National Association, as Trustee, in trust for the benefit of the Holders of
      Lehman XS Trust Mortgage Pass-Through Certificates, Series
      2006-16N”.

     

    Deferred
      Interest Cap Agreement:
      With
      respect to the Class 1-A2A, Class 1-A31 and Class 1-A32A1 Certificates, each
      transaction evidenced by the related Confirmation between the Trustee and the
      Cap Provider, forms of which are attached as Exhibit P.

     

    Deficient
      Valuation:
      With
      respect to any Mortgage Loan, a valuation by a court of competent jurisdiction
      of the Mortgaged Property in an amount less than the then outstanding
      indebtedness under such Mortgage Loan, which valuation results from a proceeding
      under Bankruptcy law or any similar proceeding.

     

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

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

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

     

    Delinquency
      Event:
      With
      respect to any Distribution Date, a “Delinquency Event” shall occur if the
      Rolling Three Month Delinquency Rate as of the last day of the immediately
      preceding month equals or exceeds, for Distribution Dates prior to October
      2012,
      26.00%, and, for Distribution Dates during or after October 2012, 32.50% of
      the
      Senior Enhancement Percentage for such Distribution Date.

     

    Delinquency
      Rate:
      With
      respect to any calendar month, the fraction, expressed as a percentage, the
      numerator of which is the aggregate outstanding principal balance of all
      Mortgage Loans that are 60 or more days Delinquent (including all foreclosures,
      bankruptcies and REO Properties, without duplication, as of the close of
      business on the last day of such month), and the denominator of which is the
      Aggregate Loan Balance as of the close of business on the last day of such
      month.

     

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

     

    Deposit
      Date:
      With
      respect to each Distribution Date, the Business Day immediately preceding such
      Distribution Date.

     

    Depositor:
      Structured Asset Securities Corporation, a Delaware corporation, having its
      principal place of business in New York, or its successors in
      interest.

     

    Determination
      Date:
      With
      respect to each Distribution Date, the 18th day of the month in which such
      Distribution Date occurs, or, if such 18th day is not a Business Day, the next
      succeeding Business Day.

     

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

     

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

     

    Distribution
      Date:
      The
      25th day of each month or, if such 25th day is not a Business Day, the next
      succeeding Business Day, commencing in October 2006.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

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

     

    Due
      for Payment:
      Not
      applicable.

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    (vi) a
      Qualified GIC;

     

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

     

    (viii) any
      other
      demand, money market, common trust fund or time deposit or obligation, or
      interest bearing or other security or investment (including those managed or
      advised by the Trustee or any Affiliate thereof), approved by the NIMS Insurer
      and (A) rated in the highest rating category by each Rating Agency or (B) that
      would not adversely affect the then current rating assigned by each Rating
      Agency of any of the Certificates or the NIM Securities and has a short-term
      rating of at least “A-1” or its equivalent by each Rating Agency. Such
      investments in this subsection (viii) may include money market mutual funds
      or
      common trust funds, including any fund for which U.S. Bank National Association,
      in its capacity other than as Trustee, the Master Servicer or an affiliate
      thereof serves as an investment advisor, administrator, shareholder, servicing
      agent, and/or custodian or subcustodian, notwithstanding that (x) U.S. Bank
      National Association, the Trustee, the Master Servicer or any affiliate thereof
      charges and collects fees and expenses from such funds for services rendered,
      (y) U.S. Bank National Association, the Trustee, the Master Servicer, or any
      affiliate thereof charges and collects fees and expenses for services rendered
      pursuant to this Agreement, and (z) services performed for such funds and
      pursuant to this Agreement may converge at any time. U.S. Bank National
      Association or an affiliate thereof is hereby authorized to charge and collect
      from the Trust Fund such fees as are collected from all investors in such funds
      for services rendered to such funds (but not to exceed investment earnings
      thereon);

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    ERISA-Qualifying
      Underwriting:
      A best
      efforts or firm commitment underwriting or private placement that would satisfy
      the requirements of the Underwriter’s Exemption, except, in relevant part, for
      the requirement that the certificates have received a rating at the time of
      acquisition that is in one of the three (or four, in the case of a “designated
      transaction”) highest generic rating categories by at least one of the Rating
      Agencies.

     

    ERISA-Restricted
      Certificate:
      Any
      Class X, Class C, or Class P Certificate, and any other Certificate, as long
      as
      the acquisition and holding of such other Certificate is not covered by and
      exempt under the Underwriter’s Exemption.

     

    Errors
      and Omission Insurance Policy:
      The
      errors or omission insurance policy required to be obtained by the Servicers
      satisfying the requirements of the Servicing Agreements.

     

    Escrow
      Account:
      Any
      account established and maintained by the Servicers pursuant to the Servicing
      Agreements.

     

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

     

    Event
      of Default:
      Any one
      of the conditions or circumstances enumerated in Section 6.14(a).

     

    Excess
      Interest:
      On any
      Distribution Date, for each Class of LIBOR Certificates, the excess, if any,
      of
      (1) the amount of interest such Class of Certificates is entitled to receive
      on
      such Distribution Date (other than amounts received from the Capitalized
      Interest Account or the Cap Agreement Account) over (2) the amount of interest
      such Class of Certificates would have been entitled to receive on such
      Distribution Date at an interest rate equal to the applicable REMIC Pass-Through
      Rate.

     

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

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    Exchange
      Act Signing Party:
      Either
      the Depositor or the Master Servicer, to be determined by mutual agreement
      between such parties.

     

    Fannie
      Mae:
      Fannie
      Mae, f/k/a the Federal National Mortgage Association, a federally chartered
      and
      privately owned corporation organized and existing under the Federal National
      Mortgage Association Charter Act, or any successor thereto.

     

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

     

    Fidelity
      Bond:
      The
      fidelity bond required to be obtained by each Servicer satisfying the
      requirements of the related Servicing Agreement.

     

    Final
      Scheduled Distribution Date:
      With
      respect to the Senior Certificates, Subordinate Certificates and Grantor Trust
      Certificates, the Distribution Date in November 2046, and (ii) all other Classes
      of Certificates, the Latest Possible Maturity Date.

     

    Financial
      Intermediary:
      A
      broker, dealer, bank or other financial institution or other Person that clears
      through or maintains a custodial relationship with a Clearing Agency
      Participant.

     

    Form
      8-K Disclosure Information:
      As
      defined in Section 6.20(e)(i).

     

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

     

    Ginnie
      Mae:
      Ginnie
      Mae, f/k/a the Government National Mortgage Association, a wholly owned
      corporate instrumentality of the United States within HUD.

     

    Global
      Securities:
      The
      global certificates representing the Book-Entry Certificates.

     

    Grantor
      Trust:
      Each of
      the “grantor trusts” (within the meaning of the Grantor Trust Provisions)
      described in Section 10.01 or established pursuant to Section 4.04
      herein.

     

    Grantor
      Trust Available Funds:
      For any
      Distribution Date, the sum, without duplication, of:

     

    (i)
      any
      payments received from the underlying Class 1-A2AU, Class 1-A31U or Class
      1-A32A1U Certificates, as applicable, on that Distribution Date;

     

    (ii)
      any
      payments received by the Trustee from the Cap Provider under the related
      Deferred Interest Cap Agreement on the Business Day prior to that Distribution
      Date; 

     

    (iii)
      in
      the case of the Class 1-A2A and Class 1-A32A1 Certificates, any payments
      received by the Trustee from the Cap Provider under the related Cap Agreement
      on
      the Business Day prior to that Distribution Date; and

     

    
      
        
        

      

      
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    (iv)
      all
      other assets of the Class 1-A2A Grantor Trust, Class 1-A31 Grantor Trust or
      Class 1-A32A1 Grantor Trust, as applicable, following the payments of amounts
      to
      reimburse the Trustee for its related reimbursable expenses.

     

    Grantor
      Trust Certificates:
      Class
      1-A2A, Class 1-A31 and Class 1-A32A1 Certificates.

     

    Grantor
      Trust Certificate Account:
      Any of
      the separate Eligible Accounts created and maintained by the Trustee pursuant
      to
      Section 4.04 in the name of the Trustee for the benefit of the Grantor Trust
      Certificates and designated “Class 1-A2A Grantor Trust Certificate Account, U.S.
      Bank National Association, as Trustee, in trust for the benefit of the Holders
      of Lehman XS Trust Mortgage Pass-Through Certificates, Series 2006-16N,” “Class
      1-A31 Grantor Trust Certificate Account, U.S. Bank National Association, as
      Trustee, in trust for the benefit of the Holders of Lehman XS Trust Mortgage
      Pass-Through Certificates, Series 2006-16N” and “Class 1-A32A1 Grantor Trust
      Certificate Account, U.S. Bank National Association, as Trustee, in trust for
      the benefit of the Holders of Lehman XS Trust Mortgage Pass-Through
      Certificates, Series 2006-16N.” Funds in the Grantor Trust Certificate Accounts
      shall be held in trust for the applicable Certificateholders for the uses and
      purposes set forth in this Agreement.

     

    Grantor
      Trust Provisions:
      Subpart
      E of Subchapter J of the Code, including Treasury regulation section
      301.7701-4(c)(2).

     

    Guaranteed
      Certificate:
      Not
      applicable.

     

    Guaranteed
      Distribution:
      Not
      applicable.

     

    Holder
      or Certificateholder:
      The
      registered owner of any Certificate as recorded on the books of the Certificate
      Registrar except that, solely for the purposes of taking any action or giving
      any consent pursuant to this Agreement, any Certificate registered in the name
      of the Depositor, the Trustee, the Master Servicer, a Servicer, the Cap Provider
      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 Trustee and any NIMS Insurer
      shall be protected in relying upon any such consent, only Certificates which
      a
      Responsible Officer of the Trustee knows to be so owned shall be disregarded.
      The Trustee and any NIMS Insurer may request and conclusively rely on
      certifications by the Depositor, the Master Servicer, any Servicer or the Cap
      Provider, in determining whether any Certificates are registered to an Affiliate
      of the Depositor, the Master Servicer, such Servicer or the Cap Provider,
      respectively.

     

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

     

    Indenture:
      An
      indenture relating to the issuance of notes secured by the Class X Certificates
      (or any portion thereof) which may or may not be guaranteed by a NIMS
      Insurer.

     

    Independent:
      When
      used with respect to any Accountants, a Person who is “independent” within the
      meaning of Rule 2-01(b) of the Commission’s Regulation S-X. When used with
      respect to any other Person, a Person who (a) is in fact independent of another
      specified Person and any Affiliate of such other Person, (b) does not have
      any
      material direct financial interest in such other Person or any Affiliate of
      such
      other Person, and (c) is not connected with such other Person or any Affiliate
      of such other Person as an officer, employee, promoter, underwriter, trustee,
      partner, director or Person performing similar functions.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    Initial
      LIBOR Rate:
      5.3300%
      per annum.

     

    Initial
      Optional Termination Date:
      The
      Distribution Date occurring in the month following the month in which the
      Aggregate Loan Balance initially declines to less than 10.00% of the Cut-off
      Date Balance.

     

    Insurance
      Fee Rate:
      Not
      applicable.

     

    Insurance
      Policy:
      Any
      Primary Mortgage Insurance Policy and any standard hazard insurance policy,
      flood insurance policy, earthquake insurance policy or title insurance policy
      relating to the Mortgage Loans or the Mortgaged Properties, to be in effect
      as
      of the Closing Date or thereafter during the term of this
      Agreement.

     

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

     

    Insured
      Amount:
      Not
      applicable.

     

    Insured
      Payment:
      Not
      applicable.

     

    Interest
      Remittance Amount:
      With
      respect to any Distribution Date and for either Mortgage Pool, an amount equal
      to (a) the sum of (1) all interest collected (other than in connection with
      Payaheads and Prepayment Premiums) or advanced in respect of Scheduled Payments
      on the related Mortgage Loans during the related Collection Period by any
      Servicer, the Master Servicer or the Trustee (solely in its capacity as
      successor master servicer) minus (x) the applicable Servicing Fee with respect
      to such Mortgage Loans and (y) previously unreimbursed Advances and other
      amounts due to any Servicer, the Master Servicer or the Trustee (solely in
      its
      capacity as successor master servicer), to the extent allocable to interest
      and
      the allocable portion of previously unreimbursed Servicing Advances with respect
      to the related Mortgage Loans, (2) any Compensating Interest Payments with
      respect to the related Mortgage Loans with respect to the related Prepayment
      Period, (3) the portion of any Purchase Price or Substitution Amount paid with
      respect to such related Mortgage Loans during the related Prepayment Period
      allocable to interest and (4) all Net Liquidation Proceeds, Insurance Proceeds
      and any other recoveries collected with respect to the related Mortgage Loans
      during the related Prepayment Period, to the extent allocable to interest,
      as
      reduced by (b) the amount of other costs, expenses or liabilities related to
      such Mortgage Pool and reimbursable to the Master Servicer, any Servicer, any
      Custodians pursuant to the applicable Custodial Agreement or the Trustee and
      as
      increased by (c) the lesser of (1) the aggregate amount set forth in clauses
      (a)
      (1) through (5) of the definition of Principal Remittance Amount with respect
      to
      the Mortgage Loans in such Mortgage Pool for such Distribution Date and (2)
      the
      aggregate amount of Negative Amortization with respect to the Mortgage Loans
      in
      such Mortgage Pool during the related Collection Period.

     

    
      
        
        

      

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

     

    Late
      Payment Rate:
      Not
      applicable.

     

    Latest
      Possible Maturity Date:
      The
      Distribution Date occurring in November 2046.

     

    LBH:
      Lehman
      Brothers Holdings Inc., or any successor in interest.

     

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

     

    If
      on
      such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
      appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
      Telerate Page 3750 is not available on such date, the Trustee will obtain such
      rate from Reuters’ “page LIBOR 01” or Bloomberg’s page “BBAM.” If such rate is
      not published for such LIBOR Determination Date, LIBOR for such date will be
      the
      most recently published Interest Settlement Rate. In the event that the BBA
      no
      longer sets an Interest Settlement Rate, the Trustee will designate an
      alternative index that has performed, or that the Trustee expects to perform,
      in
      a manner substantially similar to the BBA’s Interest Settlement Rate. The
      Trustee will select a particular index as the alternative index only if it
      receives an Opinion of Counsel (a copy of which shall be furnished to any NIMS
      Insurer), which opinion shall be an expense reimbursed from the Certificate
      Account pursuant to Section 4.04, that the selection of such index will not
      cause any of the REMICs to lose their classification as REMICs for federal
      income tax purposes.

     

    The
      establishment of LIBOR by the Trustee and the Trustee’s subsequent calculation
      of the Certificate Interest Rate applicable to the LIBOR Certificates for the
      relevant Accrual Period, in the absence of manifest error, will be final and
      binding.

     

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

     

    LIBOR
      Certificate:
      (i) Any
      Offered Certificate (other than the Grantor Trust Certificates) and (ii) any
      Underlying Certificate.

     

    LIBOR
      Determination Date:
      The
      second LIBOR Business Day immediately preceding the commencement of each Accrual
      Period (other than the first Accrual Period) for any LIBOR
      Certificates.

     

    Liquidated
      Mortgage Loan:
      Any
      defaulted Mortgage Loan as to which the Master Servicer or a Servicer has
      determined that all amounts that it expects to recover on behalf of the Trust
      Fund from or on account of such Mortgage Loan have been recovered (exclusive
      of
      any possibility of a deficiency judgment).

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    Liquidation
      Expenses:
      Expenses that are incurred by the Master Servicer or a Servicer in connection
      with the liquidation of any defaulted Mortgage Loan and that are not recoverable
      under the applicable Primary Mortgage Insurance Policy, if any, including,
      without limitation, foreclosure and rehabilitation expenses, legal expenses
      and
      unreimbursed amounts, if any, expended pursuant to Sections 9.06, 9.16 or
      9.22.

     

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

     

    Loan-to-Value
      Ratio:
      With
      respect to any Mortgage Loan, the ratio of the principal balance of such
      Mortgage Loan at origination, or such other date as is specified, to the
      Original Value thereof.

     

    Lower
      Tier Interest:
      Any of
      the REMIC 1 Interests.

     

    M1
      Margin:
      As
      defined in footnote (16) of the Preliminary Statement under the caption “The
      Certificates”.

     

    M1
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates after giving effect to distributions on such
      Distribution Date and after the allocation of Deferred Interest, if any, for
      each Distribution Date, and (ii) the Class Principal Amount of the Class M1
      Certificates after the allocation of Deferred Interest, if any, for such
      Distribution Date and immediately prior to such Distribution Date exceeds (y)
      the M1 Target Amount.

     

    M1
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) (x) for each distribution prior to the Distribution Date in
      October 2012, 79.63% and (y) thereafter, 83.70% and (ii) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period immediately prior to such Distribution Date and (b) the
      amount, if any, by which (1) the Aggregate Loan Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (2)
      the Overcollateralization Floor.

     

    M2
      Margin:
      As
      defined in footnote (17) of the Preliminary Statement under the caption “The
      Certificates”.

     

    M2
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1 Certificates, in each case after
      giving effect to distributions on such Distribution Date and after the
      allocation of Deferred Interest, if any, for each Distribution Date, and (ii)
      the Class Principal Amount of the Class M2 Certificates after the allocation
      of
      Deferred Interest, if any, for such Distribution Date and immediately prior
      to
      such Distribution Date exceeds (y) the M2 Target Amount.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    M2
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) (x) for each distribution prior to the Distribution Date in
      October 2012, 85.00% and (y) thereafter, 88.00% and (ii) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period immediately prior to such Distribution Date and (b) the
      amount, if any, by which (1) the Aggregate Loan Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (2)
      the Overcollateralization Floor.

     

    M3
      Margin:
      As
      defined in footnote (18) of the Preliminary Statement under the caption “The
      Certificates”.

     

    M3
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1 and Class M2 Certificates, in each
      case after giving effect to distributions on such Distribution Date and after
      the allocation of Deferred Interest, if any, for each Distribution Date, and
      (ii) the Class Principal Amount of the Class M3 Certificates after the
      allocation of Deferred Interest, if any, for such Distribution Date and
      immediately prior to such Distribution Date exceeds (y) the M3 Target
      Amount.

     

    M3
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) (x) for each distribution prior to the Distribution Date in
      October 2012, 86.38% and (y) thereafter, 89.10% and (ii) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period immediately prior to such Distribution Date and (b) the
      amount, if any, by which (1) the Aggregate Loan Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (2)
      the Overcollateralization Floor.

     

    M4
      Margin:
      As
      defined in footnote (19) of the Preliminary Statement under the caption “The
      Certificates”.

     

    M4
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2 and Class M3 Certificates,
      in each case after giving effect to distributions on such Distribution Date
      and
      after the allocation of Deferred Interest, if any, for each Distribution Date,
      and (ii) the Class Principal Amount of the Class M4 Certificates after the
      allocation of Deferred Interest, if any, for such Distribution Date and
      immediately prior to such Distribution Date exceeds (y) the M4 Target
      Amount.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    M4
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) (x) for each distribution prior to the Distribution Date in
      October 2012, 89.88% and (y) thereafter, 91.90% and (ii) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period immediately prior to such Distribution Date and (b) the
      amount, if any, by which (1) the Aggregate Loan Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (2)
      the Overcollateralization Floor.

     

    M5
      Margin:
      As
      defined in footnote (20) of the Preliminary Statement under the caption “The
      Certificates”.

     

    M5
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2, Class M3 and Class M4
      Certificates, in each case after giving effect to distributions on such
      Distribution Date and after the allocation of Deferred Interest, if any, for
      each Distribution Date, and (ii) the Class Principal Amount of the Class M5
      Certificates after the allocation of Deferred Interest, if any, for such
      Distribution Date and immediately prior to such Distribution Date exceeds (y)
      the M5 Target Amount.

     

    M5
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) (x) for each distribution prior to the Distribution Date in
      October 2012, 91.38% and (y) thereafter, 93.10% and (ii) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period immediately prior to such Distribution Date and (b) the
      amount, if any, by which (1) the Aggregate Loan Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (2)
      the Overcollateralization Floor.

     

    M6
      Margin:
      As
      defined in footnote (21) of the Preliminary Statement under the caption “The
      Certificates”.

     

    M6
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2, Class M3, Class M4 and
      Class M5 Certificates, in each case after giving effect to distributions on
      such
      Distribution Date and after the allocation of Deferred Interest, if any, for
      each Distribution Date, and (ii) the Class Principal Amount of the Class M6
      Certificates after the allocation of Deferred Interest, if any, for such
      Distribution Date and immediately prior to such Distribution Date exceeds (y)
      the M6 Target Amount.

     

    M6
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) (x) for each distribution prior to the Distribution Date in
      October 2012, 92.88% and (y) thereafter, 94.30% and (ii) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period immediately prior to such Distribution Date and (b) the
      amount, if any, by which (1) the Aggregate Loan Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (2)
      the Overcollateralization Floor.

     

    
      
        
        

      

      
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    M7
      Margin:
      As
      defined in footnote (22) of the Preliminary Statement under the caption “The
      Certificates”.

     

    M7
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2, Class M3, Class M4,
      Class
      M5 and Class M6 Certificates, in each case after giving effect to distributions
      on such Distribution Date and after the allocation of Deferred Interest, if
      any,
      for each Distribution Date, and (ii) the Class Principal Amount of the Class
      M7
      Certificates after the allocation of Deferred Interest, if any, for such
      Distribution Date and immediately prior to such Distribution Date exceeds (y)
      the M7 Target Amount.

     

    M7
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) (x) for each distribution prior to the Distribution Date in
      October 2012, 94.13% and (y) thereafter, 95.30% and (ii) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period immediately prior to such Distribution Date and (b) the
      amount, if any, by which (1) the Aggregate Loan Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (2)
      the Overcollateralization Floor.

     

    M8
      Margin:
      As
      defined in footnote (23) of the Preliminary Statement under the caption “The
      Certificates”.

     

    M8
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2, Class M3, Class M4,
      Class
      M5, Class M6 and Class M7 Certificates, in each case after giving effect to
      distributions on such Distribution Date and after the allocation of Deferred
      Interest, if any, for each Distribution Date, and (ii) the Class Principal
      Amount of the Class M8 Certificates after the allocation of Deferred Interest,
      if any, for such Distribution Date and immediately prior to such Distribution
      Date exceeds (y) the M8 Target Amount.

     

    M8
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) (x) for each distribution prior to the Distribution Date in
      October 2012, 95.38% and (y) thereafter, 96.30% and (ii) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period immediately prior to such Distribution Date and (b) the
      amount, if any, by which (1) the Aggregate Loan Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (2)
      the Overcollateralization Floor.

     

    M9
      Margin:
      As
      defined in footnote (24) of the Preliminary Statement under the caption “The
      Certificates”.

     

    M9
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2, Class M3, Class M4,
      Class
      M5, Class M6, Class M7 and Class M8 Certificates, in each case after giving
      effect to distributions on such Distribution Date and after the allocation
      of
      Deferred Interest, if any, for each Distribution Date, and (ii) the Class
      Principal Amount of the Class M9 Certificates after the allocation of Deferred
      Interest, if any, for such Distribution Date and immediately prior to such
      Distribution Date exceeds (y) the M9 Target Amount.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    M9
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) (x) for each distribution prior to the Distribution Date in
      October 2012, 96.63% and (y) thereafter, 97.30% and (ii) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period immediately prior to such Distribution Date and (b) the
      amount, if any, by which (1) the Aggregate Loan Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (2)
      the Overcollateralization Floor.

     

    Master
      Servicer:
      Aurora
      Loan Services LLC, or any successor in interest, or if any successor master
      servicer shall be appointed as herein provided, then such successor master
      servicer.

     

    Master
      Servicing Fee:
      As to
      any Distribution Date, an amount equal to one-twelfth the product of (a) the
      Master Servicing Fee Rate and (b) the outstanding principal balance of each
      Mortgage Loan.

     

    Master
      Servicing Fee Rate:
      0.00%
      per annum.

     

    Material
      Defect:
      As
      defined in Section 2.02(c) hereof.

     

    Maximum
      Interest Rate:
      Any of
      the Pool 1 Maximum Interest Rate, Pool 2 Maximum Interest Rate or Subordinate
      Maximum Interest Rate.

     

    Maximum
      Rate:
      For any
      Mortgage Loan, the rate specified in the related Mortgage Note which the related
      mortgage rate will never exceed.

     

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

     

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

     

    Monthly
      Excess Cashflow:
      With
      respect to any Distribution Date, the sum of (x) the Monthly Excess Interest
      for
      such date, (y) Overcollateralization Release Amount for such date and (z) that
      portion, if any, of the Principal Distribution Amount for such date available
      for distribution pursuant to Section 5.02(c)(i)(A)(4), Section 5.02(c)(i)(B)(4)
      or Section 5.02(c)(ii)(K) hereof.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    Monthly
      Excess Interest:
      With
      respect to any Distribution Date, that portion, if any, of the Interest
      Remittance Amount available for distribution pursuant to Section 5.02(b)(iv)
      hereof for such date.

     

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

     

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

     

    Mortgage
      File:
      The
      mortgage documents listed in Section 2.01(b) pertaining to a particular Mortgage
      Loan required to be delivered to the Trustee pursuant to this
      Agreement.

     

    Mortgage
      Loan:
      A
      Mortgage and the related notes or other evidences of indebtedness secured by
      each such Mortgage conveyed, transferred, sold, assigned to or deposited with
      the Trustee pursuant to Section 2.01 or Section 2.05, including without
      limitation, each Mortgage Loan listed on the Mortgage Loan Schedule, as amended
      from time to time.

     

    Mortgage
      Loan Sale Agreement:
      The
      mortgage loan sale and assignment agreement dated as of September 1, 2006 for
      the sale of the Mortgage Loans by the Seller to the Depositor.

     

    Mortgage
      Loan Schedule:
      The
      schedule attached hereto as Schedule A, which shall identify each Mortgage
      Loan,
      as such schedule may be amended from time to time to reflect the addition of
      Mortgage Loans to, or the deletion of Mortgage Loans from, the Trust Fund.
      Such
      schedule shall set forth, among other things, the following information with
      respect to each Mortgage Loan: (i) the Mortgage Loan identifying number; (ii)
      the Mortgagor’s name; (iii) the street address of the Mortgaged Property
      including the city, state and zip code; (iv) the original principal amount
      of
      the Mortgage Loan; (v) the Mortgage Rate at origination; (vi) the monthly
      payment of principal and interest at origination; (vii) the Seller of such
      Mortgage Loan to the Depositor; (viii) the Servicer servicing such Mortgage
      Loan
      and the applicable Servicing Fee Rate; (ix) the applicable prepayment premium,
      if any, and the method of calculation and (x) the Custodian with respect to
      the
      Mortgage File related to such Mortgage Loan. The Depositor shall be responsible
      for providing the Trustee and the Master Servicer with all amendments to the
      Mortgage Loan Schedule.

     

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

     

    Mortgage
      Pool:
      Either
      of Pool 1 or Pool 2.

     

    Mortgage
      Rate:
      As to
      any Mortgage Loan, the per annum rate at which interest accrues on such Mortgage
      Loan, determined under in the related Mortgage Note as reduced by any Relief
      Act
      Reductions.

     

    Mortgaged
      Property:
      Either
      of (x) the fee simple interest in real property, together with improvements
      thereto including any exterior improvements to be completed within 120 days
      of
      disbursement of the related Mortgage Loan proceeds, or (y) in the case of a
      Cooperative Loan, the related Cooperative Shares and Proprietary Lease, securing
      the indebtedness of the Mortgagor under the related Mortgage Loan.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    Mortgagor:
      The
      obligor on a Mortgage Note.

     

    Negative
      Amortization:
      With
      respect to each Distribution Date, the amount of interest on the Mortgage Loans
      that the related Mortgagors are not obligated to pay as interest (and which
      shall be added to the Scheduled Principal Balance of each such Mortgage Loan)
      due to the negative amortization feature of such Mortgage Loans, in each case
      during the related Collection Period.

     

    Negative
      Amortization Certificate:
      Any
      Certificate (other than a Grantor Trust Certificate (unless the related Deferred
      Interest Cap Agreement has been terminated)) and the Class R
      Certificate.

     

    Net
      Funds Cap:
      Either
      of the Pool 1 Net Funds Cap or the Pool 2 Net Funds Cap or the Subordinate
      Net
      Funds Cap.

     

    Net
      Liquidation Proceeds:
      With
      respect to any Liquidated Mortgage Loan, the related Liquidation Proceeds net
      of
      (i) unreimbursed expenses and (ii) any unreimbursed Advances, if any, received
      and retained in connection with the liquidation of such Mortgage
      Loan.

     

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

     

    Net
      Negative Amortization:
      For any
      Distribution Date and each Mortgage Pool, the excess, if any, of (i) the
      Negative Amortization with respect to all Mortgage Loans in such Mortgage Pool
      for the calendar month prior to that Distribution Date, over (ii) the aggregate
      amount of all scheduled monthly principal payments received with respect to
      all
      Mortgage Loans in such Mortgage Pool during the related Collection Period,
      prepayments in full and partial prepayments received with respect to all
      Mortgage Loans in such Mortgage Pool during the related Prepayment Period
      (including principal received in connection with the repurchase of a Mortgage
      Loan from the Trust Fund and all other principal received other than scheduled
      monthly payments) and recoveries in respect of the Mortgage Loans in such
      Mortgage Pool received during the related Prepayment Period.

     

    Net
      Prepayment Interest Shortfall:
      With
      respect to any Deposit Date and any Class of Certificates (with respect to
      the
      Grantor Trust Certificates, indirectly through the underlying Class 1-A2AU,
      Class 1-A31U or Class 1-A32A1U Certificates, as applicable), the excess, if
      any,
      of any Prepayment Interest Shortfalls with respect to the Mortgage Loans in
      a
      Mortgage Pool for such date over (i) any Prepayment Interest Excess with respect
      to such Mortgage Loans for such date and (ii) any amounts paid with respect
      to
      such shortfalls by a Servicer pursuant to the applicable Servicing Agreement
      or
      by the Master Servicer.

     

    Net
      Rate:
      With
      respect to any Distribution Date (and the related Accrual Period), a per annum
      rate equal to (a) a fraction, expressed as a percentage, the numerator of which
      is the product of (i) the aggregate Optimal Interest Remittance Amount for
      such
      Distribution Date and (ii) 12, and the denominator of which is the aggregate
      Pool Balance as of the first day of the related Collection Period (not including
      for this purpose Mortgage Loans for which prepayments in full have been received
      and distributed in the month prior to that Distribution Date) multiplied by
      (b)
      a fraction, the numerator of which is 30 and the denominator of which is the
      actual number of days in the Accrual Period related to such Distribution
      Date.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    Net
      WAC:
      Not
      applicable.

     

    NIM
      Redemption Amount:
      As
      defined in Section 7.01(b).

     

    NIM
      Securities:
      Any net
      interest margin securities issued subsequent to the Closing Date by an owner
      trust or other special purpose entity, the principal assets of such trust or
      other entity including the Class X and Class P Certificates and the payments
      received thereon, which principal assets back such securities.

     

    NIMS
      Agreement:
      Not
      applicable.

     

    NIMS
      Insurer:
      One or
      more insurers issuing financial guaranty insurance policies in connection with
      the issuance of NIM Securities.

     

    Non-Book-Entry
      Certificate:
      Not
      applicable.

     

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

     

    Non-permitted
      Foreign Holder:
      As
      defined in Section 3.03(f).

     

    Non-U.S.
      Person:
      Any
      person other than a “United States person” within the meaning of Section
      7701(a)(30) of the Code.

     

    Nonpayment:
      Not
      applicable.

     

    Notice:
      Not
      applicable.

     

    Notice
      of Nonpayment.
      Not
      applicable.

     

    Notional
      Amount:
      Not
      applicable.

     

    Notional
      Certificate:
      None.

     

    Offered
      Certificates:
      Collectively, the Class 1-A1A, Class 1-A1B, Class 1-A2A, Class 1-A2B, Class
      1-A31, Class 1-A32A1, Class 1-A32A2, Class 1-A32B, Class 1-A4A, Class 1-A4B,
      Class 1-A4C, Class 2-A, Class M1, Class M2, Class M3, Class M4, Class M5, Class
      M6, Class M7, Class M8 and Class M9 Certificates.

     

    Offered
      Subordinate Certificates:
      Not
      applicable.

     

    Offering
      Document:
      The
      Prospectus.

     

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

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    Opinion
      of Counsel:
      A
      written opinion of counsel, reasonably acceptable in form and substance to
      the
      Trustee, and who may be in house or outside counsel to the Depositor, the Master
      Servicer or the Servicer but which must be Independent outside counsel with
      respect to any such opinion of counsel concerning the transfer of any Residual
      Certificate or concerning certain matters with respect to the Employee
      Retirement Income Security Act of 1974, as amended (“ERISA”), or the taxation,
      or the federal income tax status, of each REMIC.

     

    Optimal
      Interest Remittance Amount:
      For
      each Mortgage Pool for each Distribution Date, the product of (A) (x) the
      weighted average of the Net Mortgage Rates for the Mortgage Loans in such
      Mortgage Pool (based on their Scheduled Principal Balances as of the first
      day
      of the related Collection Period) divided by (y) 12 and (B) the Pool Balance
      for
      such Mortgage Pool as of the first day of the related Collection Period (not
      including for this purpose Mortgage Loans for which prepayments in full have
      been received and distributed in the month prior to that Distribution
      Date).

     

    Original
      Loan-to-Value Ratio:
      Not
      applicable.

     

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

     

    Overcollateralization
      Amount:
      With
      respect to any Distribution Date, the amount, if any, by which (x) the Aggregate
      Loan Balance for such Distribution Date determined as of the last day of the
      related Collection Period exceeds (y) the aggregate Class Principal Amount
      of
      the LIBOR Certificates, after giving effect to distributions on such
      Distribution Date.

     

    Overcollateralization
      Deficiency:
      With
      respect to any Distribution Date, the amount, if any, by which (x) the Targeted
      Overcollateralization Amount for such Distribution Date exceeds (y) the
      Overcollateralization Amount for such Distribution Date, calculated for this
      purpose after giving effect to the reduction on such Distribution Date of the
      aggregate Certificate Principal Amount of the LIBOR Certificates resulting
      from
      the distribution of the Principal Distribution Amount on such Distribution
      Date
      but prior to allocation of any Applied Loss Amount on such Distribution
      Date.

     

    Overcollateralization
      Floor:
      For any
      Distribution Date after the Stepdown Date, $11,091,091 (0.50% of the Cut-off
      Date Balance).

     

    Overcollateralization
      Release Amount:
      With
      respect to any Distribution Date, the lesser of (x) the Principal Remittance
      Amount for such Distribution Date and (y) the amount, if any, by which (1)
      the
      Overcollateralization Amount for such Distribution Date (calculated for this
      purpose on the basis of the assumption that 100% of the Principal Remittance
      Amount for such date is applied on such Distribution Date in reduction of the
      aggregate Certificate Principal Amount of the LIBOR Certificates), exceeds
      (2)
      the Targeted Overcollateralization Amount for such Distribution
      Date.

     

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

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    
Agent:
    Any
    paying agent appointed pursuant to Section 3.08.
     

    PCAOB:
      The
      Public Company Accounting Oversight Board.

     

    Percentage
      Interest:
      With
      respect to any Certificate other than a Grantor Trust Certificate, its
      percentage interest in the undivided beneficial ownership interest in the Trust
      Fund evidenced by all Certificates of the same Class as such Certificate. With
      respect to any Certificate other than the Class X, Class C, Class P and Class
      R
      Certificates, the Percentage Interest evidenced thereby shall equal the initial
      Certificate Principal Amount thereof divided by the initial Class Principal
      Amount of all Certificates of the same Class. With respect to the Class X,
      Class
      C, Class P and Class R Certificates, the Percentage Interest evidenced thereby
      shall be as specified on the face thereof, or otherwise be equal to
      100%.

     

    Permitted
      Servicing Amendment:
      Any
      amendment to a Servicing Agreement pursuant to Section 11.03(a)(iii) hereunder
      in connection with any servicing transfer or transfer of any servicing
      rights.

     

    Permitted
      Transferee:
      As
      defined in Section 3.03(f).

     

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

     

    Placement
      Agent:
      Lehman
      Brothers Inc.

     

    Plan:
      As
      defined in Section 3.03(d).

     

    Plan
      Asset Regulations:
      The
      Department of Labor regulations set forth in 29 C.F.R. 2510.3 101.

     

    Policy
      Payments Account:
      Not
      applicable.

     

    Pool
      1:
      The
      aggregate of the Mortgage Loans identified on the Mortgage Loan Schedule as
      being included in Pool 1.

     

    Pool
      1
      Maximum Interest Rate:
      For any
      Distribution Date, an annual rate equal to the Pool 1 Net Funds Cap for such
      Distribution Date if the Optimal Interest Remittance Amount was computed by
      reference to the weighted average of the excess of the Maximum Rates for the
      Pool 1 Mortgage Loans over the Servicing Fee Rate.

     

    Pool
      1
      Mortgage Loan:
      A
      Mortgage in Pool 1 and the related notes or other evidences of indebtedness
      secured by each such Mortgage conveyed, transferred, sold, assigned to or
      deposited with the Trustee pursuant to Section 2.01 or Section 2.05, including
      without limitation, each Pool 1 Mortgage Loan listed on the Mortgage Loan
      Schedule, as amended from time to time.

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    Pool
      1
      Net Funds Cap:
      With
      respect to any Distribution Date, an annual rate equal to (a) a fraction,
      expressed as a percentage, the numerator of which is the product of (i) the
      Optimal Interest Remittance Amount for Pool 1 for such Distribution Date and
      (ii) 12, and the denominator of which is the Pool Balance for Pool 1 as of
      the
      first day of the related Collection Period (not including for this purpose
      Mortgage Loans for which prepayments in full have been received and distributed
      in the month prior to that Distribution Date), multiplied by (b) a fraction,
      the
      numerator of which is 30 and the denominator of which is the actual number
      of
      days in the Accrual Period related to such Distribution Date.

     

    Pool
      1
      Senior Certificates:
      The
      Class 1-A1A, Class 1-A1B, Class 1-A2AU, Class 1-A2B, Class 1-A32A1U, Class
      1-A32A2, Class 1-A32B, Class 1-A31U, Class 1-A4A, Class 1-A4B and Class 1-A4C
      Certificates.

     

    Pool
      2:
      The
      aggregate of the Mortgage Loans identified on the Mortgage Loan Schedule as
      being included in Pool 2.

     

    Pool
      2
      Maximum Interest Rate:
      For any
      Distribution Date, an annual rate equal to the Pool 2 Net Funds Cap for such
      Distribution Date if the Optimal Interest Remittance Amount was computed by
      reference to the weighted average of the excess of the Maximum Rates for the
      Pool 2 Mortgage Loans over the Servicing Fee Rate.

     

    Pool
      2
      Mortgage Loan:
      A
      Mortgage in Pool 2 and the related notes or other evidences of indebtedness
      secured by each such Mortgage conveyed, transferred, sold, assigned to or
      deposited with the Trustee pursuant to Section 2.01 or Section 2.05, including
      without limitation, each Pool 2 Mortgage Loan listed on the Mortgage Loan
      Schedule, as amended from time to time.

     

    Pool
      2
      Net Funds Cap:
      With
      respect to any Distribution Date, an annual rate equal to (a) a fraction,
      expressed as a percentage, the numerator of which is the product of (i) the
      Optimal Interest Remittance Amount for Pool 2 for such Distribution Date and
      (ii) 12, and the denominator of which is the Pool Balance for Pool 2 as of
      the
      first day of the related Collection Period (not including for this purpose
      Mortgage Loans for which prepayments in full have been received and distributed
      in the month prior to that Distribution Date), multiplied by (b) a fraction,
      the
      numerator of which is 30 and the denominator of which is the actual number
      of
      days in the Accrual Period related to such Distribution Date.

     

    Pool
      2
      Senior Certificates:
      The
      Class 2-A Certificates.

     

    Pool
      Balance:
      As to
      each Mortgage Pool and any Distribution Date or the Cut-off Date, the sum of
      the
      Scheduled Principal Balance of the Mortgage Loans included in such Mortgage
      Pool
      for that Distribution Date or the Cut-off Date, as applicable.

     

    Pool
      Percentage:
      For any
      Mortgage Pool and any Distribution Date, a fraction, the numerator of which
      is
      the Pool Balance for such Mortgage Pool for such Distribution Date and the
      denominator of which is the Aggregate Loan Balance for such Distribution
      Date.

     

    Pool
      Subordinate Amount:
      With
      respect to any Mortgage Pool and any Distribution Date, the excess of the Pool
      Balance for such Mortgage Pool for the immediately preceding Distribution Date
      (or on the Cut-off Date in the case of the first Distribution Date) over the
      aggregate Class Principal Amount of the related Senior Certificates immediately
      prior to the related Distribution Date.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    Preference
      Amount:
      Not
      applicable.

     

    Prepayment
      Interest Excess:
      Not
      applicable.

     

    Prepayment
      Interest Shortfall:
      With
      respect to any Distribution Date and any Principal Prepayment in full, the
      difference between (i) one full month’s interest at the applicable Net Mortgage
      Rate (after giving effect to any applicable Relief Act Reduction) on the
      outstanding principal balance of such Mortgage Loan immediately prior to such
      prepayment and (ii) the amount of interest actually received with respect to
      such Mortgage Loan in connection with such Principal Prepayment.

     

    Prepayment
      Period:
      With
      respect to any Distribution Date and any Principal Prepayment (including any
      liquidation) in full or in part, the calendar month immediately preceding the
      month in which such Distribution Date occurs.

     

    Prepayment
      Premiums:
      With
      respect to any Distribution Date, all premiums or charges paid by the obligors
      under the related Mortgage Notes due to Principal Prepayments and required
      to be
      remitted to the Custodial Accounts pursuant to the Servicing Agreements and
      are
      remitted to the Collection Account during the immediately preceding Prepayment
      Period, if any.

     

    Primary
      Mortgage Insurance Policy:
      Any
      mortgage guaranty insurance, if any, on an individual Mortgage Loan as evidenced
      by a policy or certificate, whether such policy is obtained by the originator,
      the lender or the borrower.

     

    Principal
      Allocation Percentage:
      For
      Pool 1 with respect to any Distribution Date, a fraction, expressed as a
      percentage, the numerator of which is the Principal Remittance Amount for Pool
      1
      for such Distribution Date and the denominator of which is the aggregate of
      the
      Principal Remittance Amounts for such date. For Pool 2 with respect to any
      Distribution Date, a fraction, expressed as a percentage, the numerator of
      which
      is the Principal Remittance Amount for Pool 2 for such Distribution Date, and
      the denominator of which is the aggregate of the Principal Remittance Amounts
      for such date.

     

    Principal
      Distribution Amount:
      With
      respect to any Distribution Date and for Pool 1 and Pool 2, an amount equal
      to
      the Principal Remittance Amount for such date for such Mortgage Pool minus
      the
      Overcollateralization Release Amount attributable to such Mortgage Pool, based
      on the Principal Allocation Percentage for such Pool, if any, for such
      Distribution Date.

     

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

     

    
      
        
        

      

      
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    Principal
      Remittance Amount:
      With
      respect to each Mortgage Pool and any Distribution Date, an amount equal to
      (a)
      the sum of (1) all principal collected (other than in connection with Payaheads)
      or advanced in respect of Scheduled Payments on the Mortgage Loans in such
      Mortgage Pool during the related Collection Period whether by a Servicer, the
      Master Servicer or the Trustee in its capacity as successor master servicer
      (less unreimbursed Advances due to the Master Servicer, the applicable Servicer
      or the Trustee, in its capacity as successor master servicer, with respect
      to
      the related Mortgage Loans, to the extent allocable to principal, and any
      unreimbursed Servicing Advances), (2) all Principal Prepayments in full or
      in
      part received during the related Prepayment Period with respect to the Mortgage
      Loans in such Mortgage Pool, (3) the outstanding principal balance of each
      Mortgage Loan in such Mortgage Pool that was repurchased by the Seller or the
      related Transferor during the related Prepayment Period or any NIMS Insurer
      (in
      the case of certain Mortgage Loans 90 days or more delinquent), (4) the
      principal portion of any Substitution Amount paid with respect to any Deleted
      Mortgage Loan in such Mortgage Pool during the related Prepayment Period
      allocable to principal and (5) all Net Liquidation Proceeds, Insurance Proceeds,
      any Subsequent Recovery and other recoveries collected with respect to the
      Mortgage Loans in such Mortgage Pool during the related Prepayment Period,
      to
      the extent allocable to principal, as reduced (but not by more than the sum
      of
      items (1) through (5) above) by the aggregate amount of Negative Amortization
      with respect to the Mortgage Loans in such Mortgage Pool during the related
      Collection Period, reduced by (b) other costs, expenses or liabilities
      reimbursable to the Trustee, the Master Servicer and any Servicer to the extent
      provided in this Agreement and the applicable Servicing Agreement or to a
      Custodian pursuant to the applicable Custodial Agreement, as applicable to
      each
      Mortgage Pool from the Interest Remittance Amount described in clause (b) of
      the
      definition thereof and not reimbursed therefrom or otherwise.

     

    Proceeding:
      Not
      applicable.

     

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

     

    Prospectus:
      The
      prospectus supplement dated September 28, 2006 together with the accompanying
      prospectus dated September 13, 2006, relating to the Offered
      Certificates.

     

    Purchase
      Price:
      With
      respect to the purchase of a Mortgage Loan or related REO Property pursuant
      to
      this Agreement, an amount equal to the sum of (a) 100% of the unpaid principal
      balance of such Mortgage Loan, (b) accrued interest thereon at the applicable
      Mortgage Rate, from the date as to which interest was last paid to (but not
      including) the Due Date in the Collection Period immediately preceding the
      related Distribution Date; (c) any unreimbursed Servicing Advances with respect
      to such Mortgage Loan; (d) any costs and damages incurred by the Trust Fund
      with
      respect to such Mortgage Loan in connection with any violation of any federal,
      state or local predatory or abusive lending laws or other similar laws; (e)
      the
      fair market value of all other property being purchased (reduced, in the case
      of
      REO Property relating to the Mortgage Loans, by (1) reasonably anticipated
      disposition costs and (2) any amount by which the fair market value as so
      reduced exceeds the outstanding principal balance of the related Mortgage Loan);
      and (f) any Cap Termination Payment payable to the Cap Provider as a result
      of
      an optional termination pursuant to Section 7.01(b). The Master Servicer and
      the
      Servicer (or the Trustee, in its capacity as successor master servicer, if
      applicable) shall be reimbursed from the Purchase Price for any Mortgage Loan
      or
      related REO Property for any Advances made or other amounts advanced with
      respect to such Mortgage Loan that are reimbursable to the Master Servicer
      or
      the Servicer under this Agreement or the Servicing Agreement (or to the Trustee
      hereunder in its capacity as successor master servicer), together with any
      accrued and unpaid compensation due to the Master Servicer, the Servicer or
      the
      Trustee hereunder or thereunder.

     

    
      
        
        

      

      
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    QIB:
      As
      defined in Section 3.03(c)(i).

     

    QIB-Restricted
      Certificate:
      Any
      Class C Certificate.

     

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

     

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

     

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

     

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

     

    (iv) provide
      that the Trustee’s interest therein shall be transferable to any successor
      trustee hereunder; and

     

    (v) provide
      that the funds reinvested thereunder and accrued interest thereon be returnable
      to the Collection Account or the Certificate Account, as the case may be, not
      later than the Business Day prior to any Distribution Date.

     

    Qualified
      Insurer:
      Not
      applicable.

     

    
      
        
        

      

      
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    Qualifying
      Substitute Mortgage Loan:
      In the
      case of a Mortgage Loan substituted for a Deleted Mortgage Loan pursuant to
      the
      terms of this Agreement, a Mortgage Loan that, on the date of such substitution,
      (i) has an outstanding Scheduled Principal Balance (or in the case of a
      substitution of more than one mortgage loan for a Deleted Mortgage Loan, an
      aggregate Scheduled Principal Balance), after application of all Scheduled
      Payments due during or prior to the month of substitution, not in excess of,
      and
      not more than 5% less than, the outstanding Scheduled Principal Balance of
      the
      Deleted Mortgage Loan as of the Due Date in the calendar month during which
      the
      substitution occurs, (ii) has a Mortgage Rate not less than the Mortgage Rate
      on
      the Deleted Mortgage Loan, (iii) if applicable, has a maximum Mortgage Rate
      not
      less than the maximum Mortgage Rate on the Deleted Mortgage Loan, (iv) if
      applicable, has a minimum Mortgage Rate not less than the minimum Mortgage
      Rate
      of the Deleted Mortgage Loan, (v) if applicable, has a gross margin equal to
      or
      greater than the gross margin of the Deleted Mortgage Loan, (vi) is not a
      Cooperative Loan unless the related Deleted Mortgage Loan was a Cooperative
      Loan, (vii) if applicable, has a next adjustment date not later than the next
      adjustment date on the Deleted Mortgage Loan, (viii) has the same Due Date
      as
      the Deleted Mortgage Loan, (ix) has a remaining stated term to maturity not
      longer than 18 months and not more than 18 months shorter than the remaining
      stated term to maturity of the related Deleted Mortgage Loan, (x) is current
      as
      of the date of substitution, (xi) has a Loan-to-Value Ratio as of the date
      of
      substitution equal to or lower than the Loan-to-Value Ratio of the Deleted
      Mortgage Loan as of such date, (xii) has been underwritten by a Transferor
      in
      accordance with the same underwriting criteria and guidelines as the Deleted
      Mortgage Loan, (xiii) has a risk grading determined by the Seller at least
      equal
      to the risk grading assigned on the Deleted Mortgage Loan, (xiv) is secured
      by
      the same property type as the Deleted Mortgage Loan, (xv) conforms to each
      representation and warranty applicable to the Deleted Mortgage Loan made in
      the
      Mortgage Loan Sale and Assignment Agreement, (xvi) has the same or higher lien
      position as the Deleted Mortgage Loan, (xvii) is covered by a Primary Mortgage
      Insurance Policy if the Deleted Mortgage Loan was so covered and (xviii)
      contains provisions covering the payment of Prepayment Premium by the Mortgagor
      for early prepayment of the Mortgage Loan at least as favorable as the Deleted
      Mortgage Loan. In the event that one or more mortgage loans are substituted
      for
      one or more Deleted Mortgage Loans, the amounts described in clause (i) hereof
      shall be determined on the basis of aggregate Scheduled Principal Balances,
      the
      Mortgage Rates described in clause (ii) hereof shall be determined on the basis
      of weighted average Mortgage Rates, the risk gradings described in clause (xiii)
      hereof shall be satisfied as to each such mortgage loan, the terms described
      in
      clause (ix) hereof shall be determined on the basis of weighted average
      remaining term to maturity, the Loan-to-Value Ratios described in clause (xi)
      hereof shall be satisfied as to each such mortgage loan and, except to the
      extent otherwise provided in this sentence, the representations and warranties
      described in clause (xv) hereof must be satisfied as to each Qualified
      Substitute Mortgage Loan or in the aggregate, as the case may be.

     

    Rating
      Agency:
      Each of
      Moody’s and S&P.

     

    Realized
      Loss:
      With
      respect to each Liquidated Mortgage Loan, an amount equal to (i) the unpaid
      principal balance of such Mortgage Loan as of the date of liquidation, minus
      (ii) Liquidation Proceeds received, to the extent allocable to principal, net
      of
      amounts that are reimbursable therefrom to the Master Servicer or the Servicer
      with respect to such Mortgage Loan (other than Advances of principal) including
      expenses of liquidation. In determining whether a Realized Loss is a Realized
      Loss of principal, Liquidation Proceeds shall be allocated, first, to payment
      of
      expenses related to such Liquidated Mortgage Loan, then to accrued unpaid
      interest and finally to reduce the principal balance of the Mortgage
      Loan.

     

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

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    Record
      Date:
      With
      respect to the Book-Entry Certificates and any Distribution Date, the close
      of
      business on the Business Day immediately preceding such Distribution Date.
      With
      respect to the Class C, Class X, Class P and Class R Certificates and any Class
      of Definitive Certificates and any Distribution Date, the last Business Day
      of
      the month immediately preceding the month in which the Distribution Date occurs
      (or, in the case of the first Distribution Date, the Closing Date).

     

    Regulation
      AB:
      Subpart
      229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to
      such clarification and interpretation as have been provided by the Commission
      in
      the adopting release (Asset-Backed Securities, Securities Act Release No.
      33-8518, 70 Fed Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
      Commission, or as may otherwise be provided by the Commission or its staff
      from
      time to time; and all references to any rule, item, section or subsection of,
      or
      definition or term contained in, Regulation AB mean such rule, item, section,
      subsection, definition or term, as the case may be, or any successor thereto,
      in
      each case as the same may be amended from time to time.

     

    Regulation
      S:
      Not
      applicable.

     

    Regulation
      S Global Security:
      Not
      applicable.

     

    Reimbursement
      Amounts:
      Not
      applicable.

     

    Related
      Certificates:
      For any
      REMIC 2 Interest, the Class of Certificates set forth on the same row in the
      table under “REMIC 2” in the Preliminary Statement hereto.

     

    Related
      REMIC 2 Interest:
      For any
      Related Certificates, the REMIC 2 Interest set forth on the same row in the
      table under “REMIC 2” in the Preliminary Statement hereto.

     

    Relevant
      Servicing Criteria:
      The
      Servicing Criteria applicable to each party, as set forth on Exhibit R attached
      hereto. Multiple parties can have responsibility for the same Relevant Servicing
      Criteria. With respect to a Servicing Function Participant engaged by the Master
      Servicer, the Trustee, each Custodian, the Paying Agent or each Servicer, the
      term “Relevant Servicing Criteria” may refer to a portion of the Relevant
      Servicing Criteria applicable to such parties.

     

    Relief
      Act:
      The
      Servicemembers Civil Relief Act and any similar state law or
      regulation.

     

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

     

    REMIC:
      Each of
      REMIC 1 and REMIC 2, as described in the Preliminary Statement
      hereto.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    REMIC
      1:
      As
      described in the Preliminary Statement.

     

    REMIC
      1 Interest:
      Any one
      of the Classes of REMIC 1 Interests described in the Preliminary Statement
      hereto.

     

    REMIC
      1-I Marker Classes:
      Any of
      the REMIC 1-I Regular Interests other than (i) the Class LT1-XI
      Interest.

     

    REMIC
      1-II Marker Classes:
      Any of
      the Class LT1-IA, Class LT1-IB, Class LT1-IIA and Class LT1-IIB
      Interests.

     

    REMIC
      1 Regular Interest:
      Any of
      the REMIC 1 Interests other than the Class LT1-R Interest.

     

    REMIC
      1-I Regular Interests:
      Any of
      the REMIC 1 Regular Interests other than the Class LT1-IA, Class LT1-IB, Class
      LT1-IIA, Class LT1-IIB and Class LT1-XII Interests.

     

    REMIC
      2:
      As
      described in the Preliminary Statement.

     

    REMIC
      2 Interest:
      Any one
      of the Classes of REMIC 2 Interests described in the Preliminary Statement
      hereto.

     

    REMIC
      2 Regular Interest:
      Any of
      the REMIC 2 Interests other than the Residual Interest. 

     

    REMIC
      Pass Through Rate:
      For any
      Distribution Date, the Net Funds Cap for such Distribution Date (as adjusted,
      in
      the case of any Class of Certificates or REMIC 2 Interest that accrues interest
      on the basis of a 360 day year consisting of twelve 30 day months, to reflect
      accruals on such basis).

     

    REMIC
      Provisions:
      The
      provisions of the federal income tax law relating to real estate mortgage
      investment conduits, which appear at sections 860A through 860G of Subchapter
      M
      of Chapter 1 of the Code, and related provisions, and regulations, including
      proposed regulations and rulings, and administrative pronouncements promulgated
      thereunder, as the foregoing may be in effect from time to time.

     

    REO
      Property:
      A
      Mortgaged Property acquired by the Trust Fund through foreclosure or deed in
      lieu of foreclosure in connection with a defaulted Mortgage Loan or otherwise
      treated as having been acquired pursuant to the REMIC Provisions.

     

    Replacement
      Receipts:
      Not
      applicable.

     

    Replacement
      Receipts Account:
      Not
      applicable.

     

    Reportable
      Event:
      As
      defined in Section 6.20(e)(i).

     

    Reporting
      Servicer:
      As
      defined in Section 6.20(d)(i).

     

    Required
      Reserve Fund Amount:
      Not
      applicable.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    Residual
      Certificates:
      The
      Class R Certificates.

     

    Residual
      Interest:
      An
      interest in REMIC 2 that is entitled to all distributions on the Class R
      Certificate other than distributions in respect of the Class MTASW-R Interest,
      Class FIXSW-R Interest and Class LT1-R Interest.

     

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

     

    Restricted
      Certificate:
      Any
      Class X, Class C, Class P or Class R Certificate.

     

    Restricted
      Global Security:
      Not
      applicable.

     

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

     

    Rules:
      As
      defined in Section 6.20(c).

     

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

     

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

     

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

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    Security
      Agreement:
      With
      respect to any Cooperative Loan, the agreement between the owner of the related
      Cooperative Shares and the originator of the related Mortgage Note that defines
      the terms of the security interest in such Cooperative Shares and the related
      Proprietary Lease.

     

    Seller:
      Lehman
      Brothers Holdings Inc. or any successor in interest thereto.

     

    Senior
      Certificates:
      The
      Pool 1 Senior Certificates and the Pool 2 Senior Certificates.

     

    Senior
      Enhancement Percentage:
      With
      respect to any Distribution Date, the fraction, expressed as a percentage,
      the
      numerator of which is the sum of the aggregate Class Principal Amount of the
      Subordinate Certificates and the Overcollateralization Amount (which amount,
      for
      purposes of this definition only, shall not be less than zero and assuming
      for
      purposes of this definition that the Principal Distribution Amount has been
      distributed on such Distribution Date and no Trigger Event has occurred) and
      the
      denominator of which is the Aggregate Loan Balance for such Distribution Date,
      in each case after giving effect to distributions on such Distribution
      Date.

     

    Senior
      Principal Distribution Amount:
      For any
      Distribution Date (a) prior to the Stepdown Date or if a Trigger Event is in
      effect with respect to such Distribution Date, 100% of the Principal
      Distribution Amounts for such Distribution Date and (b) on or after the Stepdown
      Date and as long as a Trigger Event is not in effect with respect to such
      Distribution Date, the amount, if any, by which (x) the aggregate Class
      Principal Amount of each Class of Senior Certificates after the allocation
      of
      Deferred Interest, if any, for each Distribution Date and immediately prior
      to
      distributions on such Distribution Date exceeds (y) the Senior Target
      Amount.

     

    Senior
      Priority:
      Not
      applicable.

     

    Senior
      Proportionate Percentage:
      For
      Pool 1 with respect to any Distribution Date, a fraction, expressed as a
      percentage, the numerator of which is the aggregate of the current Class
      Principal Amounts of the Class 1-A1A, Class 1-A1B, Class 1-A2AU, Class 1-A2B,
      Class 1-A32A1U, Class 1-A32A2, Class 1-A32B, Class 1-A31U, Class 1-A4A, Class
      1-A4B and Class 1-A4C Certificates for such Distribution Date and the
      denominator of which is the aggregate of the current Class Principal Amounts
      for
      the Senior Certificates for such date. For Pool 2 with respect to any
      Distribution Date, a fraction, expressed as a percentage, the numerator of
      which
      is the current Class Principal Amount of the Class 2-A Certificates for such
      Distribution Date and the denominator of which is the aggregate of the current
      Class Principal Amounts for the Senior Certificates for such date.

     

    Senior
      Target Amount:
      With
      respect to any Distribution Date an amount equal to the lesser of (a) the
      product of (1) (i) for each distribution prior to the Distribution Date in
      October 2012, 73.13%; and (ii) thereafter, 78.50% and (2) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period and (b) the amount, if any, by which (1) the Aggregate Loan
      Balance for such Distribution Date determined as of the last day of the related
      Collection Period exceeds (2) the Overcollateralization Floor.

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

    Servicer:
      Each
      Servicer that has entered into one of the Servicing Agreements attached as
      Exhibit E hereto, or any successor in interest. Initially, the Servicers are
      Countrywide Home Loans Servicing LP and IndyMac Bank, F.S.B.

     

    Service(s)(ing):
      In
      accordance with Regulation AB, the act of managing or collecting payments on
      the
      Mortgage Loans or any other assets of the Trust Fund by an entity that meets
      the
      definition of “servicer” set forth in Item 1101 of Regulation AB. For
      clarification purposes, any uncapitalized occurrence of this term shall have
      the
      meaning commonly understood by participants in the residential mortgage-backed
      securitization market.

     

    Servicer
      Remittance Date:
      The day
      in each calendar month on which the applicable Servicer is required to remit
      payments to the Collection Account, as specified in the related Servicing
      Agreement, which is the 18th day of each calendar month (or, if such 18th day
      is
      not a Business Day, the next succeeding Business Day).

     

    Servicing
      Advances:
      Expenditures incurred by a Servicer in connection with the liquidation or
      foreclosure of a Mortgage Loan which are eligible for reimbursement under the
      applicable Servicing Agreement.

     

    Servicing
      Agreement:
      Any of
      the servicing agreements between a Servicer and the Seller, dated as of
      September 1, 2006, and attached hereto in Exhibit E, and any other servicing
      agreement entered into between a successor servicer and the Seller or the
      Trustee pursuant to the terms hereof.

     

    Servicing
      Criteria:
      The
“servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be
      amended from time to time.

     

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

     

    Servicing
      Fee Rate:
      0.375%
      per annum.

     

    Servicing
      Function Participant:
      Any
      Subservicer, Subcontractor or any other Person, other than each Servicer, each
      Custodian, the Master Servicer, the Paying Agent and the Trustee, that is
      participating in the servicing function within the meaning of Regulation AB,
      unless such Person’s activities relate only to 5% or less of the Mortgage
      Loans.

     

    Sponsor:
      Lehman
      Brothers Holdings Inc. and any successor in interest thereto.

     

    Startup
      Day:
      The day
      designated as such pursuant to Section 10.01(b) hereof.

     

    Stepdown
      Date:
      The
      later to occur of (x) the Distribution Date in October 2009 and (y) the first
      Distribution Date on which the Senior Enhancement Percentage (calculated for
      this purpose after giving effect to payments or other recoveries in respect
      of
      the Mortgage Loans during the related Collection Period but before giving effect
      to distributions on any Certificates on such Distribution Date) is greater
      than
      or equal to (i) prior to the Distribution Date in October 2012, 26.87% and
      (ii)
      on or after the Distribution Date in October 2012, 21.50%.

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

     

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

     

    Subordinate
      Certificates:
      Collectively, the Class M1, Class M2, Class M3, Class M4, Class M5, Class M6,
      Class M7, Class M8 and Class M9 Certificates.

     

    Subordinate
      Maximum Interest Rate:
      For
      each Distribution Date, the weighted average of the Pool 1 Maximum Interest
      Rate
      and the Pool 2 Maximum Interest Rate, weighted on the basis of the Pool
      Subordinate Amount for each such Mortgage Pool.

     

    Subordinate
      Net Funds Cap:
      For
      each Distribution Date, the weighted average of the Pool 1 Net Funds Cap and
      the
      Pool 2 Net Funds Cap weighted on the basis of the Pool Subordinate Amount for
      each such Mortgage Pool.

     

    Subordinate
      Priority:
      Distributions to the Class M1, Class M2, Class M3, Class M4, Class M5, Class
      M6,
      Class M7, Class M8 and Class M9 Certificates, sequentially, in that
      order.

     

    Subordinated
      Balance Ratio:
      As of
      any Distribution Date, the ratio among the uncertificated principal balances
      of
      each of the REMIC 1-II Marker Classes ending with the designation “A” that is
      equal to the ratio among, with respect to each such REMIC 1-II Marker Class,
      the
      excess of (x) the aggregate Scheduled Principal Balance of the Mortgage Loans
      in
      the related Mortgage Pool over (y) the aggregate Class Principal Amounts of
      the
      Classes of related Senior Certificates as set forth in the Preliminary Statement
      under the table entitled “REMIC 1” (after giving effect to distributions on such
      Distribution Date).

     

    Subsequent
      Recovery:
      Any
      amount recovered by any Servicer or the Master Servicer with respect to a
      Liquidated Mortgage Loan with respect to which a Realized Loss was incurred
      after the liquidation or disposition of such Mortgage Loan.

     

    Subservicer:
      Any
      Person that (i) is considered to be a Servicing Function Participant, (ii)
      services Mortgage Loans on behalf of any Servicer or an Additional Servicer,
      and
      (iii) is responsible for the performance (whether directly or through
      subservicers or Subcontractors) of material servicing functions required to
      be
      performed by the Servicer or Master Servicer under this Agreement, the Servicing
      Agreements, the Custodial Agreements or other Servicing agreements entered
      into
      with respect to some or all of the Mortgage Loans, that are identified in Item
      1122(d) of Regulation AB.

     

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

     

    
      
        
        

      

      
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    Target
      Amount:
      For any
      Distribution Date, an amount equal to the Aggregate Loan Balance as of such
      Distribution Date minus the Targeted Overcollateralization Amount for such
      Distribution Date.

     

    Targeted
      Overcollateralization Amount:
      For any
      Distribution Date (x) prior to the Stepdown Date an amount equal to
      approximately $29,945,947
      (1.350%
      of the Aggregate Loan Balance as of the Cut-off Date), (y) on or after the
      Stepdown Date, the greater of (1) the lesser of (a) the amount of approximately
      $29,945,947 and (b) the product of (i) for each distribution prior to the
      Distribution Date in October 2012, 3.375%, and thereafter, 2.700% and (ii)
      the
      Aggregate Loan Balance as of the last day of the related Collection Period
      and
      (2) the Overcollateralization Floor and (z) on and after the Stepdown Date
      and
      for which a Trigger Event is in effect, the amount calculated under this
      definition for the immediately preceding Distribution Date.

     

    Tax
      Matters Person:
      Not
      applicable.

     

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

     

    Termination
      Receipts:
      Not
      applicable.

     

    Termination
      Receipts Account:
      Not
      applicable.

     

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

     

    Total
      Distribution Amount:
      With
      respect to any Distribution Date, the sum of (i) the Interest Remittance Amount
      for both Mortgage Pools for such date; (ii) the Principal Remittance Amount
      for
      both Mortgage Pools for such date; and (iii) the Prepayment
      Premiums.

     

    Transfer
      Agreements:
      As
      defined in the Mortgage Loan Sale Agreement.

     

    Transferor:
      Each
      seller of Mortgage Loans to either of LBH or Lehman Brothers Bank, FSB pursuant
      to a Transfer Agreement.

     

    Trigger
      Event:
      With
      respect to any Distribution Date, means that either a Delinquency Event or
      a
      Cumulative Loss Trigger Event is in effect for such Distribution
      Date.

     

    Trust
      Fund:
      The
      corpus of Lehman XS Trust, Series 2006-16N created pursuant to this Agreement,
      consisting of the Mortgage Loans, the assignment of the Depositor’s rights under
      the Transfer Agreements, the Mortgage Loan Sale Agreement and the Servicing
      Agreements, such amounts as shall from time to time be held in the Basis Risk
      Reserve Fund, the Capitalized Interest Account, Collection Account, Certificate
      Account, any Custodial Account and any Escrow Account, the Insurance Policies,
      any REO Property and the other items referred to in, and conveyed to the Trustee
      under, Section 2.01(a). For the avoidance of doubt, the assets of the Trust
      Fund
      shall not include the Cap Agreements, the Deferred Interest Cap Agreements,
      the
      Deferred Interest Cap Accounts and the Grantor Trust Certificate Accounts,
      which
      are assets of the Grantor Trusts established pursuant to Section 4.04. With
      respect to Exchange Act reporting requirements, the Trust Fund shall be deemed
      to include each Grantor Trust established pursuant to Section 4.04.

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

     

    Trust
      REMIC:
      Each of
      REMIC 1 and REMIC 2, as described in the Preliminary Statement
      hereto.

     

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

     

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

     

    Uncertificated
      Class X Interest:
      An
      uncertificated regular interest in REMIC 2 with an initial principal balance
      equal to the excess of (i) the Cut-off Date Balance over (ii) the aggregate
      initial principal amounts of the LIBOR Certificates and bearing interest on
      a
      each Distribution Date in an amount equal to the Class X Current Interest for
      such Distribution Date; provided,
      however,
      that
      such interest shall have no obligation or right to make or receive any payments
      treated as paid or received by the Class X Certificates pursuant to interest
      rate cap agreements or notional principal contracts under Section 10.01 and
      shall have no rights to receive payments in respect of Class X Shortfall Amounts
      from the Master Servicer as described in Section 10.01.

     

    Underlying
      Certificates:
      The
      Class 1-A2AU, Class 1-A32A1U and the Class 1-A31U Certificates underlying the
      Class 1-A2A, Class 1-A32A1 and Class 1-A31 Certificates,
      respectively.

     

    Underwriter:
      Lehman
      Brothers Inc.

     

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

     

    Unpaid
      Basis Risk Shortfall:
      With
      respect to any Distribution Date and any Class of LIBOR Certificates, the
      aggregate of all Basis Risk Shortfalls with respect to such Class remaining
      unpaid from previous Distribution Dates, plus interest accrued thereon at the
      applicable Certificate Interest Rate (calculated without giving effect to the
      applicable Net Funds Cap but limited to a rate no greater than the applicable
      Maximum Interest Rate).

     

    Upper
      Tier REMIC:
      Not
      applicable.

     

    
      
        
        

      

      
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    Voting
      Interests:
      The
      portion of the voting rights of all the Certificates that is allocated to any
      Certificate for purposes of the voting provisions of this Agreement. At all
      times during the term of this Agreement, 97% of all Voting Interests shall
      be
      allocated to the Class 1-A1A, Class 1-A1B, Class 1-A2AU, Class 1-A2B, Class
      1-A31U, Class 1-A32A1U, Class 1-A32A2, Class 1-A32B, Class 1-A4A, Class 1-A4B
      and Class 1-A4C , Class 2-A, Class M1, Class M2, Class M3, Class M4, Class
      M5,
      Class M6, Class M7, Class M8 and Class M9 and the Class X, Class P and Class
      R
      Certificates will each be allocated 1% of all Voting Interests. Voting Interests
      shall be allocated among such Classes of Certificates (other than the Class
      X,
      Class P and Class R Certificates) in proportion to their Class Principal Amounts
      or Class Notional Amounts and among the Certificates of each Class in proportion
      to their Percentage Interests. The Class C Certificates will not have any Voting
      Interests. 100% of the voting rights under each Grantor Trust established
      pursuant to Section 4.04 will be allocated to the related Grantor Trust
      Certificates.

     

    
      	Section
              1.02 	
              Calculations
                Respecting Mortgage Loans.

            

    

     

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

     

    
      	Section
              1.03  	
              Calculations
                Respecting Accrued Interest.

            

    

     

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

     

    
      	Section
              1.04 	
              Rights
                of the NIMS Insurer.

            

    

     

    Each
      of
      the rights of any NIMS Insurer set forth in this Agreement shall exist so long
      as (i) the NIMS Insurer has undertaken to guarantee certain payments of NIM
      Securities issued pursuant to the Indenture and (ii) the NIM Securities issued
      pursuant to the Indenture remain outstanding or the NIMS Insurer is owed amounts
      in respect of its guarantee of payment on such notes; provided, however, the
      NIMS Insurer shall not have any rights hereunder (except pursuant to Section
      11.03 and any rights to indemnification hereunder in the case of clause (ii)
      below) so long as (i) the NIMS Insurer has not undertaken to guarantee certain
      payments of notes issued pursuant to the Indenture or (ii) any default has
      occurred and is continuing under the insurance policy issued by the NIMS Insurer
      with respect to such notes.

     

    
      
        
        

      

      
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    ARTICLE
      II.

     

    DECLARATION
      OF TRUST;

    ISSUANCE
      OF CERTIFICATES

     

    
      	Section
              2.01  	
              Creation
                and Declaration of Trust Fund; Conveyance of Mortgage
                Loans.

            

    

     

    (a)  Concurrently
      with the execution and delivery of this Agreement, the Depositor does hereby
      transfer, assign, set over, deposit with and otherwise convey to the Trustee,
      without recourse, subject to Sections 2.02, 2.04, 2.05 and 2.06, in trust,
      all
      the right, title and interest of the Depositor in and to the Mortgage Loans.
      Such conveyance includes, without limitation, the right to all payments of
      principal and interest received on or with respect to the Mortgage Loans on
      and
      after the Cut-off Date (other than payments of principal and interest due on
      or
      before such date), and all such payments due after such date but received prior
      to such date and intended by the related Mortgagors to be applied after such
      date together with all of the Depositor’s right, title and interest in and to
      the Collection Account, the Cap Agreement Account, the Deferred Interest Cap
      Account, the Certificate Account, the Grantor Trust Certificate Account and
      all
      amounts from time to time credited to and the proceeds of the Certificate
      Account, the Grantor Trust Certificate Account, any Custodial Accounts, any
      Escrow Account established pursuant to Section 9.06, the Basis Risk Reserve
      Fund
      established pursuant to Section 5.06 and all amounts from time to time credited
      to and the proceeds of each such account, the Class X Account established
      pursuant to Section 5.12 and all amounts from time to time credited to and
      the
      proceeds of each such account, any REO Property and the proceeds thereof, the
      Depositor’s rights under any Insurance Policies related to the Mortgage Loans,
      the Depositor’s security interest in any collateral pledged to secure the
      Mortgage Loans, including the Mortgaged Properties, and any proceeds of the
      foregoing, to have and to hold, in trust; and the Trustee declares that, subject
      to the review provided for in Section 2.02, it has received and shall hold
      the
      Trust Fund, as trustee, and the Grantor Trusts established pursuant to Section
      4.04, as grantor trustee, in trust, for the benefit and use of the Holders
      of
      the related Certificates and for the purposes and subject to the terms and
      conditions set forth in this Agreement, and, concurrently with such receipt,
      has
      caused to be executed, authenticated and delivered to or upon the order of
      the
      Depositor, in exchange for the Trust Fund and Grantor Trusts established
      pursuant to Section 4.04, Certificates in the authorized denominations
      evidencing the entire ownership of the Trust Fund or the Grantor Trusts
      established pursuant to Section 4.04, as applicable.

     

    Concurrently
      with the execution and delivery of this Agreement, the Depositor does hereby
      assign to the Trustee all of its rights and interest under the Mortgage Loan
      Sale Agreement, including all rights of the Sellers under the Servicing
      Agreements and each related Transfer Agreement (other than first payment date
      default or early payment date default rights against the Transferor) but, in
      each case, only to the extent assigned under the Mortgage Loan Sale Agreement.
      The Trustee hereby accepts such assignment and delegation, and shall be entitled
      to exercise all the rights of the Depositor under the Mortgage Loan Sale
      Agreement as if, for such purpose, it were the Depositor. The foregoing sale,
      transfer, assignment, set-over, deposit, delegation and conveyance does not
      and
      is not intended to result in the creation or assumption by the Trustee of any
      obligation of the Depositor, the Sellers or any other Person in connection
      with
      the Mortgage Loans or any other agreement or instrument relating thereto except
      as specifically set forth herein.

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

     

    (b)  In
      connection with such transfer and assignment, the Depositor does hereby deliver
      to, and deposit with, or cause to be delivered to and deposited with, the
      Trustee, and/or a Custodian acting on the Trustee’s behalf, the following
      documents or instruments with respect to each Mortgage Loan (each a “Mortgage
      File”) so transferred and assigned:

     

    (i)  with
      respect to each Mortgage Loan, the original Mortgage Note endorsed without
      recourse in proper form to the order of the Trustee, as shown on Exhibit B-4
      hereto, or in blank (in each case, with all necessary intervening endorsements,
      as applicable) or with respect to any lost Mortgage Note, a lost note affidavit
      stating that the original Mortgage Note was lost, misplaced or destroyed,
      together with a copy of the related Mortgage Note;

     

    (ii)  if
      applicable, the original of any guarantee, security agreement or pledge
      agreement executed in connection with the Mortgage Note, assigned to the
      Trustee;

     

    (iii)  with
      respect to any Mortgage Loan other than a Cooperative Loan, the original
      recorded Mortgage with evidence of recording indicated thereon and the original
      recorded power of attorney, with evidence of recording thereon. If, in
      connection with any Mortgage Loan, the Depositor cannot deliver the Mortgage
      or
      power of attorney with evidence of recording thereon on or prior to the Closing
      Date because of a delay caused by the public recording office where such
      Mortgage has been delivered for recordation or because such Mortgage or power
      of
      attorney has been lost, the Depositor shall deliver or cause to be delivered
      to
      the Trustee (or the applicable Custodian), in the case of a delay due to
      recording, a true copy of such Mortgage or power of attorney, pending delivery
      of the original thereof, together with an Officer’s Certificate of the Depositor
      certifying that the copy of such Mortgage or power of attorney delivered to
      the
      Trustee (or its Custodian) is a true copy and that the original of such Mortgage
      or power of attorney has been forwarded to the public recording office, or,
      in
      the case of a Mortgage or power of attorney that has been lost, a copy thereof
      (certified as provided for under the laws of the appropriate jurisdiction)
      and a
      written Opinion of Counsel delivered to the Trustee and the Depositor that
      an
      original recorded Mortgage or power of attorney is not required to enforce
      the
      Trustee’s interest in the Mortgage Loan;

     

    (iv)  the
      original of each assumption, modification or substitution agreement, if any,
      relating to the Mortgage Loans, or, as to any assumption, modification or
      substitution agreement which cannot be delivered on or prior to the Closing
      Date
      because of a delay caused by the public recording office where such assumption,
      modification or substitution agreement has been delivered for recordation,
      a
      photocopy of such assumption, modification or substitution agreement, pending
      delivery of the original thereof, together with an Officer’s Certificate of the
      Depositor certifying that the copy of such assumption, modification or
      substitution agreement delivered to the Trustee (or the applicable Custodian)
      is
      a true copy and that the original of such agreement has been forwarded to the
      public recording office;

     

    (v)  with
      respect to each Non-MERS Mortgage Loan, an original Assignment of Mortgage,
      in
      form and substance acceptable for recording. The related Mortgage shall be
      assigned either (A) in blank, without recourse or (B) to “U.S. Bank National
      Association, as Trustee of the Lehman XS Trust Mortgage Pass-Through
      Certificates, Series 2006-16N,” without recourse;

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

     

    (vi)  if
      applicable, such original intervening assignments of the Mortgage, notice of
      transfer or equivalent instrument (each, an “Intervening Assignment”), as may be
      necessary to show a complete chain of assignment from the originator, or, in
      the
      case of an Intervening Assignment that has been lost, a written Opinion of
      Counsel delivered to the Trustee that such original Intervening Assignment
      is
      not required to enforce the Trustee’s interest in the Mortgage
      Loans;

     

    (vii)  with
      respect to any Mortgage Loan other than a Cooperative Loan, the original
      mortgagee title insurance policy or attorney’s opinion of title and abstract of
      title, and, if applicable, the original Primary Mortgage Insurance Policy or
      certificate;

     

    (viii)  the
      original of any security agreement, chattel mortgage or equivalent instrument
      executed in connection with the Mortgage or as to any security agreement,
      chattel mortgage or their equivalent instrument that cannot be delivered on
      or
      prior to the Closing Date because of a delay caused by the public recording
      office where such document has been delivered for recordation, a photocopy
      of
      such document, pending delivery of the original thereof, together with an
      Officer’s Certificate of the Depositor certifying that the copy of such security
      agreement, chattel mortgage or their equivalent instrument delivered to the
      Trustee (or the applicable Custodian) is a true copy and that the original
      of
      such document has been forwarded to the public recording office;

     

    (ix)  with
      respect to any manufactured housing contract, any related manufactured housing
      sales contract, installment loan agreement or participation interest;
      and

     

    (x)  with
      respect to any Cooperative Loan, the Cooperative Loan Documents.

     

    The
      parties hereto acknowledge and agree that the form of endorsement attached
      hereto as Exhibit B-4 is intended to effect the transfer to the Trustee, for
      the
      benefit of the Certificateholders, of the Mortgage Notes and the
      Mortgages.

     

    (c)  (i)    
Assignments
      of Mortgage with respect to each Non-MERS Mortgage Loan other than a Cooperative
      Loan shall be recorded; provided, however, that such Assignments need not be
      recorded if, on or prior to the Closing Date, the Depositor delivers, at its
      own
      expense, an Opinion of Counsel addressed to the Trustee (which must be
      Independent counsel) acceptable to the Trustee, the Rating Agencies and any
      NIMS
      Insurer, to the effect that recording in such states is not required to protect
      the Trustee’s interest in the related Non-MERS Mortgage Loans; provided,
      further, that notwithstanding the delivery of any Opinion of Counsel, the Master
      Servicer shall cause the Servicer to submit each Assignment of Mortgage for
      recording upon the occurrence of a bankruptcy, insolvency or foreclosure
      relating to the Mortgagor under the related Mortgage. Subject to the preceding
      sentence, as soon as practicable after the Closing Date (but in no event more
      than three months thereafter except to the extent delays are caused by the
      applicable recording office), the Master Servicer, at the expense of the
      Depositor and with the cooperation of the applicable Servicer, shall cause
      to be
      properly recorded by such Servicer in each public recording office where the
      related Mortgages are recorded each Assignment of Mortgage referred to in
      subsection (b)(v) above with respect to each Non-MERS Mortgage Loan. With
      respect to each Cooperative Loan, the Master Servicer, at the expense of the
      Depositor and with the cooperation of the applicable Servicer, shall cause
      such
      Servicer to take such actions as are necessary under applicable law in order
      to
      perfect the interest of the Trustee in the related Mortgaged
      Property.

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

     

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

     

    (d)  In
      instances where a Title Insurance Policy is required to be delivered to the
      Trustee or the applicable Custodian on behalf of the Trustee under clause
      (b)(vii) above and is not so delivered, the Depositor will provide a copy of
      such Title Insurance Policy to the Trustee, or to the applicable Custodian
      on
      behalf of the Trustee, as promptly as practicable after the execution and
      delivery hereof, but in any case within 180 days of the Closing
      Date.

     

    (e)  For
      Mortgage Loans (if any) that have been prepaid in full after the Cut-off Date
      and prior to the Closing Date, the Depositor, in lieu of delivering the above
      documents, herewith delivers to the Trustee, or to the applicable Custodian
      on
      behalf of the Trustee, an Officer’s Certificate which shall include a statement
      to the effect that all amounts received in connection with such prepayment
      that
      are required to be deposited in the Collection Account pursuant to Section
      4.01
      have been so deposited. All original documents that are not delivered to the
      Trustee or the applicable Custodian on behalf of the Trustee shall be held
      by
      the Master Servicer or the applicable Servicer in trust for the benefit of
      the
      Trustee and the Certificateholders.

     

    
      	Section
              2.02  	
              Acceptance
                of Trust Fund by Trustee: Review of Documentation for Trust
                Fund.

            

    

     

    (a)  The
      Trustee, by execution and delivery hereof, acknowledges receipt by it or by
      the
      applicable Custodian on its behalf of the Mortgage Files pertaining to the
      Mortgage Loans listed on the Mortgage Loan Schedule, subject to review thereof
      by the Trustee, or by the applicable Custodian on behalf of the Trustee, under
      this Section 2.02. The Trustee, or the applicable Custodian on behalf of the
      Trustee, will execute and deliver to the Trustee, the Depositor, the Master
      Servicer and any NIMS Insurer on the Closing Date an Initial Certification
      in
      the form annexed hereto as Exhibit B-1 (or in the form annexed to the applicable
      Custodial Agreement as Exhibit B-1, as applicable).

     

    (b)  Within
      45
      days after the Closing Date, the Trustee or the applicable Custodian on behalf
      of the Trustee, will, for the benefit of Holders of the Certificates and any
      NIMS Insurer, review each Mortgage File to ascertain that all required documents
      set forth in Section 2.01 have been received and appear on their face to contain
      the requisite signatures by or on behalf of the respective parties thereto,
      and
      shall deliver to the Trustee, the Depositor, the Master Servicer and any NIMS
      Insurer an Interim Certification in the form annexed hereto as Exhibit B-2
      (or
      in the form annexed to the applicable Custodial Agreement as Exhibit B-2, as
      applicable) to the effect that, as to each Mortgage Loan listed in the Mortgage
      Loan Schedule (other than any Mortgage Loan prepaid in full or any specifically
      identified in such certification as not covered by such certification), (i)
      all
      of the applicable documents specified in Section 2.01(b) are in its possession
      and (ii) such documents have been reviewed by it and appear to relate to such
      Mortgage Loan. The Trustee, or the applicable Custodian on behalf of the
      Trustee, shall determine whether such documents are executed and endorsed,
      but
      shall be under no duty or obligation to inspect, review or examine any such
      documents, instruments, certificates or other papers to determine that the
      same
      are valid, binding, legally effective, properly endorsed, genuine, enforceable
      or appropriate for the represented purpose or that they have actually been
      recorded or are in recordable form or that they are other than what they purport
      to be on their face. Neither the Trustee nor the applicable Custodian shall
      have
      any responsibility for verifying the genuineness or the legal effectiveness
      of
      or authority for any signatures of or on behalf of any party or
      endorser.

     

    
      
        
        

      

      
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    (c)  If
      in the
      course of the review described in paragraph (b) above the Trustee or the
      applicable Custodian discovers any document or documents constituting a part
      of
      a Mortgage File that is missing, does not appear regular on its face (i.e.,
      is
      mutilated, damaged, defaced, torn or otherwise physically altered) or appears
      to
      be unrelated to the Mortgage Loans identified in the Mortgage Loan Schedule
      (each, a “Material Defect”), the Trustee, or the applicable Custodian on behalf
      of the Trustee, discovering such Material Defect shall promptly identify the
      Mortgage Loan to which such Material Defect relates in the Interim Certification
      delivered to the Trustee, the Depositor, the Master Servicer and any NIMS
      Insurer. Within 90 days of its receipt of such notice, the Transferor, or,
      if
      the Transferor does not do so, the Depositor shall be required to cure such
      Material Defect (and, in such event, the Depositor shall provide the Trustee
      with an Officer’s Certificate confirming that such cure has been effected). If
      the applicable Transferor or the Depositor, as applicable, does not so cure
      such
      Material Defect, the Transferor, or, if the Transferor does not do so, the
      Depositor, shall, if a loss has been incurred with respect to such Mortgage
      Loan
      that would, if such Mortgage Loan were not purchased from the Trust Fund,
      constitute a Realized Loss, and such loss is attributable to the failure of
      the
      Depositor to cure such Material Defect, repurchase the related Mortgage Loan
      from the Trust Fund at the Purchase Price. A loss shall be deemed to be
      attributable to the failure of the Depositor to cure a Material Defect if,
      as
      determined by the Depositor, upon mutual agreement with the Trustee each acting
      in good faith, absent such Material Defect, such loss would not have been
      incurred. Within the two-year period following the Closing Date, the Depositor
      may, in lieu of repurchasing a Mortgage Loan pursuant to this Section 2.02,
      substitute for such Mortgage Loan a Qualifying Substitute Mortgage Loan subject
      to the provisions of Section 2.05. The failure of the Trustee or the applicable
      Custodian to give the notice contemplated herein within 45 days after the
      Closing Date shall not affect or relieve the Depositor of its obligation to
      repurchase any Mortgage Loan pursuant to this Section 2.02 or any other Section
      of this Agreement requiring the repurchase of Mortgage Loans from the Trust
      Fund.

     

    (d)  Within
      180 days following the Closing Date, the Trustee, or the applicable Custodian,
      shall deliver to the Trustee, the Depositor, the Master Servicer and any NIMS
      Insurer a Final Certification substantially in the form attached as Exhibit
      B-3
      (or in the form annexed to the applicable Custodial Agreement as Exhibit B-3,
      as
      applicable) evidencing the completeness of the Mortgage Files in its possession
      or control, with any exceptions noted thereto.

     

    (e)  Nothing
      in this Agreement shall be construed to constitute an assumption by the Trust
      Fund, the Trustee, any Custodian or the Certificateholders of any unsatisfied
      duty, claim or other liability on any Mortgage Loan or to any
      Mortgagor.

     

    
      
        
        

      

      
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    (f)  Each
      of
      the parties hereto acknowledges that the applicable Custodian shall perform
      the
      applicable review of the Mortgage Loans and respective certifications thereof
      as
      provided in this Section 2.02 and in the applicable Custodial
      Agreement.

     

    (g)  Upon
      execution of this Agreement, the Depositor hereby delivers to the Trustee and
      the Trustee acknowledges a receipt of the Mortgage Loan Sale Agreement and
      the
      Servicing Agreement.

     

    
      	Section
              2.03  	
              Representations
                and Warranties of the Depositor.

            

    

     

    (a)  The
      Depositor hereby represents and warrants to the Trustee, for the benefit of
      Certificateholders and to the Master Servicer as of the Closing Date or such
      other date as is specified, that:

     

    (i)  the
      Depositor is a corporation duly organized, validly existing and in good standing
      under the laws governing its creation and existence and has full corporate
      power
      and authority to own its property, to carry on its business as presently
      conducted, to enter into and perform its obligations under this Agreement,
      and
      to create the trust pursuant hereto;

     

    (ii)  the
      execution and delivery by the Depositor of this Agreement have been duly
      authorized by all necessary corporate action on the part of the Depositor;
      neither the execution and delivery of this Agreement, nor the consummation
      of
      the transactions herein contemplated, nor compliance with the provisions hereof,
      will conflict with or result in a breach of, or constitute a default under,
      any
      of the provisions of any law, governmental rule, regulation, judgment, decree
      or
      order binding on the Depositor or its properties or the certificate of
      incorporation or bylaws of the Depositor;

     

    (iii)  the
      execution, delivery and performance by the Depositor of this Agreement and
      the
      consummation of the transactions contemplated hereby do not require the consent
      or approval of, the giving of notice to, the registration with, or the taking
      of
      any other action in respect of, any state, federal or other governmental
      authority or agency, except such as has been obtained, given, effected or taken
      prior to the date hereof;

     

    (iv)  this
      Agreement has been duly executed and delivered by the Depositor and, assuming
      due authorization, execution and delivery by the Trustee and the Master Servicer
      constitutes a valid and binding obligation of the Depositor enforceable against
      it in accordance with its terms except as such enforceability may be subject
      to
      (A) applicable bankruptcy and insolvency laws and other similar laws affecting
      the enforcement of the rights of creditors generally and (B) general principles
      of equity regardless of whether such enforcement is considered in a proceeding
      in equity or at law;

     

    (v)  there
      are
      no actions, suits or proceedings pending or, to the knowledge of the Depositor,
      threatened or likely to be asserted against or affecting the Depositor, before
      or by any court, administrative agency, arbitrator or governmental body (A)
      with
      respect to any of the transactions contemplated by this Agreement or (B) with
      respect to any other matter which in the judgment of the Depositor will be
      determined adversely to the Depositor and will if determined adversely to the
      Depositor materially and adversely affect it or its business, assets, operations
      or condition, financial or otherwise, or adversely affect its ability to perform
      its obligations under this Agreement; and

     

    
      
        
        

      

      
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    (vi)  immediately
      prior to the transfer and assignment of the Mortgage Loans to the Trustee,
      the
      Depositor was the sole owner of record and holder of each Mortgage Loan, and
      the
      Depositor had good and marketable title thereto, and had full right to transfer
      and sell each Mortgage Loan to the Trustee free and clear, subject only to
      (1)
      liens of current real property taxes and assessments not yet due and payable
      and, if the related Mortgaged Property is a condominium unit, any lien for
      common charges permitted by statute, (2) covenants, conditions and restrictions,
      rights of way, easements and other matters of public record as of the date
      of
      recording of such Mortgage acceptable to mortgage lending institutions in the
      area in which the related Mortgaged Property is located and specifically
      referred to in the lender’s Title Insurance Policy or attorney’s opinion of
      title and abstract of title delivered to the originator of such Mortgage Loan,
      and (3) such other matters to which like properties are commonly subject which
      do not, individually or in the aggregate, materially interfere with the benefits
      of the security intended to be provided by the Mortgage, of any encumbrance,
      equity, participation interest, lien, pledge, charge, claim or security
      interest, and had full right and authority, subject to no interest or
      participation of, or agreement with, any other party, to sell and assign each
      Mortgage Loan pursuant to this Agreement.

     

    (b)  The
      representations and warranties of the Transferor with respect to the related
      Mortgage Loans in the applicable Transfer Agreement, which have been assigned
      to
      the Trustee hereunder, were made as of the date specified in the applicable
      Transfer Agreement (or underlying agreement, if such Transfer Agreement is
      in
      the form of an assignment of a prior agreement). To the extent that any fact,
      condition or event with respect to a Mortgage Loan constitutes a breach of
      both
      (i) a representation or warranty of the applicable Transferor under the
      applicable Transfer Agreement and (ii) a representation or warranty of the
      Seller under the Mortgage Loan Sale Agreement, the only right or remedy of
      the
      Trustee or any Certificateholder hereunder (other than a breach by the Seller
      of
      the representations made pursuant to Sections 1.04(b)(xii), 1.04(b)(xvii),
      1.04(b)(xviii), 1.04(b)(ix) and 1.04(b)(xx) of the Mortgage Loan Sale Agreement)
      shall be their rights to enforce the obligations of the applicable Transferor
      under any applicable representation or warranty made by it. Pursuant to the
      terms of the Mortgage Loan Sale Agreement, the representations and warranties
      made by the Seller pursuant to Sections 1.04(b)(xii), 1.04(b)(xvii),
      1.04(b)(xviii), 1.04(b)(ix) and 1.04(b)(xx) of the Mortgage Loan Sale Agreement
      shall be the direct obligations of the Seller. With the exception of the
      immediately proceeding sentence, the Seller shall not have any other obligation
      or liability with respect to any breach of a representation or warranty made
      by
      it with respect to the Mortgage Loans sold by it if the fact, condition or
      event
      constituting such breach also constitutes a breach of a representation or
      warranty made by the applicable Transferor in the applicable Transfer Agreement,
      without regard to whether such Transferor fulfills its contractual obligations
      in respect of such representation or warranty. The Depositor shall have no
      obligation or liability with respect to any breach of any representation or
      warranty with respect to the Mortgage Loans (except as set forth in Section
      2.03(a)(vi)) under any circumstances.

     

    
      
        
        

      

      
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      	Section
              2.04  	
              Discovery
                of Breach.

            

    

     

    It
      is
      understood and agreed that the representations and warranties (i) set forth
      in
      Section 2.03, (ii) of the Seller set forth in the Mortgage Loan Sale Agreement
      and assigned to the Depositor by the Seller under the Mortgage Loan Sale
      Agreement and to the Trustee by the Depositor hereunder and (iii) of the
      Transferor and of the Servicer assigned by the Seller to the Depositor pursuant
      to the Mortgage Loan Sale Agreement and assigned to the Trustee by the Depositor
      hereunder, shall each survive delivery of the Mortgage Files and the Assignment
      of Mortgage of each Mortgage Loan to the Trustee and shall continue throughout
      the term of this Agreement. Upon discovery by any of the Depositor, any NIMS
      Insurer, the Master Servicer or the Trustee of a breach of any of such
      representations and warranties that materially and adversely affects the value
      of the related Mortgage Loan, the party discovering such breach shall give
      prompt written notice to the other parties. Within 90 days of the discovery
      of a
      breach of any representation or warranty given to the Trustee by the Depositor
      or given by a Transferor or the Seller and assigned to the Trustee, the
      Depositor, such Transferor or the Seller, as applicable, shall either (a) cure
      such breach in all material respects, (b) repurchase such Mortgage Loan or
      any
      property acquired in respect thereof from the Trustee at the Purchase Price
      (or,
      with respect to Mortgage Loans as to which there is a breach of a representation
      or warranty set forth in Section 1.04(b)(v) of the Mortgage Loan Sale Agreement,
      at the purchase price therefor paid by the Seller under the Mortgage Loan Sale
      Agreement) or (c) within the two-year period following the Closing Date,
      substitute a Qualifying Substitute Mortgage Loan for the affected Mortgage
      Loan.
      In the event of discovery of a breach of any representation and warranty of
      a
      Transferor assigned to the Trustee, the Trustee shall enforce its rights under
      the applicable Transfer Agreement and the Mortgage Loan Sale Agreement for
      the
      benefit of Certificateholders. As provided in the Mortgage Loan Sale Agreements,
      if a Transferor substitutes a mortgage loan for a Deleted Mortgage Loan pursuant
      to the Transfer Agreement and such substitute mortgage loan is not a Qualifying
      Substitute Mortgage Loan, then pursuant to the terms of the Mortgage Loan Sale
      Agreement the Seller will, in exchange for such substitute mortgage loan, (i)
      pay to the Trust Fund the applicable Purchase Price for the affected Mortgage
      Loan or (ii) within two years of the Closing Date, substitute a Qualifying
      Substitute Mortgage Loan.

     

    
      	Section
              2.05  	
              Repurchase,
                Purchase or Substitution of Mortgage Loans.

            

    

     

    (a)  With
      respect to any Mortgage Loan repurchased by the Depositor pursuant to this
      Agreement, by the Seller pursuant to the Mortgage Loan Sale Agreement, or by
      the
      Transferor pursuant to the applicable Transfer Agreement, the principal portion
      of the funds received by the Master Servicer in respect of such repurchase
      of a
      Mortgage Loan will be considered a Principal Prepayment and the Purchase Price
      shall be deposited in the Collection Account or a Custodial Account, as
      applicable. The Trustee (i) upon receipt of the full amount of the Purchase
      Price for a Deleted Mortgage Loan, (ii) upon receipt of a written certification
      from the Master Servicer that it has received the full amount of the Purchase
      Price for a Deleted Mortgage Loan and has deposited such amount in the
      Collection Account or (iii) upon receipt of notification from the applicable
      Custodian that it had received the Mortgage File for a Qualifying Substitute
      Mortgage Loan substituted for a Deleted Mortgage Loan (and any applicable
      Substitution Amount), shall release or cause to be released and reassign to
      the
      Depositor, the Seller or the Transferor, as applicable, the related Mortgage
      File for the Deleted Mortgage Loan and shall execute and deliver such
      instruments of transfer or assignment, in each case without recourse,
      representation or warranty, as shall be necessary to vest in such party or
      its
      designee or assignee title to any Deleted Mortgage Loan released pursuant
      hereto, free and clear of all security interests, liens and other encumbrances
      created by this Agreement, which instruments shall be prepared by the applicable
      Servicer and the Trustee shall have no further responsibility with respect
      to
      the Mortgage File relating to such Deleted Mortgage Loan. The Seller indemnifies
      and holds the Trust Fund, the Master Servicer, the Trustee, the Depositor and
      each Certificateholder harmless against any and all taxes, claims, losses,
      penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments, and any other costs, fees and expenses that the Trust Fund, the
      Trustee, the Master Servicer, the Depositor and any Certificateholder may
      sustain in connection with any actions of the Seller relating to a repurchase
      of
      a Mortgage Loan other than in compliance with the terms of this Section 2.05
      and
      the Mortgage Loan Sale Agreement, to the extent that any such action causes
      an
      Adverse REMIC Event.

     

    
      
        
        

      

      
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    (b)  With
      respect to each Qualifying Substitute Mortgage Loan to be delivered to the
      Trustee (or the applicable Custodian) pursuant to the terms of this Article
      II
      in exchange for a Deleted Mortgage Loan: (i) the Depositor, the Transferor
      or
      the Seller, as applicable, must deliver to the Trustee (or the applicable
      Custodian) the Mortgage File for the Qualifying Substitute Mortgage Loan
      containing the documents set forth in Section 2.01(b) along with a written
      certification certifying as to the delivery of such Mortgage File and containing
      the granting language set forth in Section 2.01(a); and (ii) the Depositor
      will
      be deemed to have made, with respect to such Qualifying Substitute Mortgage
      Loan, each of the representations and warranties made by it with respect to
      the
      related Deleted Mortgage Loan. As soon as practicable after the delivery of
      any
      Qualifying Substitute Mortgage Loan hereunder, the Master Servicer, at the
      expense of the Depositor and with the cooperation of the applicable Servicer,
      shall (i) with respect to a Qualifying Substitute Mortgage Loan that is a
      Non-MERS Mortgage Loan, cause the Assignment of Mortgage to be recorded by
      the
      applicable Servicer if required pursuant to Section 2.01(c), or (ii) with
      respect to a Qualifying Substitute Mortgage Loan that is a MERS Mortgage Loan,
      cause to be taken such actions as are necessary to cause the Trustee to be
      clearly identified as the owner of each such Mortgage Loan on the records of
      MERS if required pursuant to Section 2.01(c).

     

    (c)  Notwithstanding
      any other provision of this Agreement, the right to substitute Mortgage Loans
      pursuant to this Article II shall be subject to the additional limitations
      that
      no substitution of a Qualifying Substitute Mortgage Loan for a Deleted Mortgage
      Loan shall be made unless the Trustee and the NIMS Insurer have received an
      Opinion of Counsel (at the expense of the party seeking to make the
      substitution) that, under current law, such substitution will not result in
      an
      Adverse REMIC Event.

     

    
      	Section
              2.06  	
              Grant
                Clause.

            

    

     

    (a)  It
      is
      intended that the conveyance of the Depositor’s right, title and interest in and
      to property constituting the Trust Fund pursuant to this Agreement shall
      constitute, and shall be construed as, a sale of such property and not a grant
      of a security interest to secure a loan. However, if such conveyance is deemed
      to be in respect of a loan, it is intended that: (1) the rights and obligations
      of the parties shall be established pursuant to the terms of this Agreement;
      (2)
      the Depositor hereby grants to the Trustee for the benefit of the Holders of
      the
      Certificates a first priority security interest to secure repayment of an
      obligation in an amount equal to the aggregate Class Principal Amount of the
      Certificates in all of the Depositor’s right, title and interest in, to and
      under, whether now owned or hereafter acquired, the Trust Fund and all proceeds
      of any and all property constituting the Trust Fund to secure payment of the
      Certificates and (3) this Agreement shall constitute a security agreement under
      applicable law. If such conveyance is deemed to be in respect of a loan and
      the
      trust created by this Agreement terminates prior to the satisfaction of the
      claims of any Person holding any Certificate, the security interest created
      hereby shall continue in full force and effect and the Trustee shall be deemed
      to be the collateral agent for the benefit of such Person, and all proceeds
      shall be distributed as herein provided.

     

    
      
        
        

      

      
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    (b)  The
      Depositor shall, to the extent consistent with this Agreement, take such
      reasonable actions as may be necessary to ensure that, if this Agreement were
      deemed to create a security interest in the Mortgage Loans and the other
      property described above, such security interest would be deemed to be a
      perfected security interest of first priority under applicable law and shall
      be
      maintained as such throughout the term of this Agreement. The Depositor shall,
      at its own expense, make all initial filings on or about the Closing Date and
      shall forward a copy of such filing or filings to the Trustee. Without limiting
      the generality of the foregoing, the Depositor shall prepare and forward for
      filing, or shall cause to be forwarded for filing, at the expense of the
      Depositor, all filings necessary to maintain the effectiveness of any original
      filings necessary under the relevant UCC to perfect the Trustee’s security
      interest in or lien on the Mortgage Loans, including without limitation (x)
      continuation statements, and (y) such other statements as may be occasioned
      by
      (1) any change of name of the Seller, the Depositor or the Trustee, (2) any
      change of location of the jurisdiction of organization of the Seller or the
      Depositor, (3) any transfer of any interest of the Seller or the Depositor
      in
      any Mortgage Loan or (4) any change under the relevant UCC or other applicable
      laws. Neither the Seller nor the Depositor shall organize under the law of
      any
      jurisdiction other than the State under which each is organized as of the
      Closing Date (whether changing its jurisdiction of organization or organizing
      under an additional jurisdiction) without giving 30 days prior written notice
      of
      such action to its immediate and intermediate transferee, including the Trustee.
      Before effecting such change, the Seller or the Depositor proposing to change
      its jurisdiction of organization shall prepare and file in the appropriate
      filing office any financing statements or other statements necessary to continue
      the perfection of the interests of its immediate and mediate transferees,
      including the Trustee, in the Mortgage Loans. In connection with the
      transactions contemplated by this Agreement, the Seller and the Depositor
      authorizes its immediate or mediate transferee to file in any filing office
      any
      initial financing statements, any amendments to financing statements, any
      continuation statements, or any other statements or filings described in this
      paragraph (b).

     

    ARTICLE
      III.

     

    THE
      CERTIFICATES

     

    
      	Section
              3.01  	
              The
                Certificates.

            

    

     

    (a)  The
      Certificates shall be issuable in registered form only and shall be securities
      governed by Article 8 of the New York Uniform Commercial Code. The Book-Entry
      Certificates will be evidenced by one or more certificates, beneficial ownership
      of which will be held in the dollar denominations in Certificate Principal
      Amount (or Notional Amount), or in the Percentage Interests, specified herein.
      Each Class of LIBOR Certificates and Grantor Trust Certificates will be issued
      in the minimum denominations in Certificate Principal Amount (or Notional
      Amount) specified in the Preliminary Statement hereto and in integral multiples
      of $1 in excess thereof. The Class C, Class X and Class P Certificates shall
      be
      maintained in definitive, fully registered form in a minimum denomination equal
      to 10% of the Percentage Interest of the Class. The Class R Certificate shall
      be
      issued as a single Certificate and maintained in definitive, fully registered
      form in a minimum denomination equal to 100% of the Percentage Interest of
      such
      Class. The Certificates may be issued in the form of typewritten
      certificates.

     

    
      
        
        

      

      
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    (b)  The
      Certificates shall be executed by manual or facsimile signature on behalf of
      the
      Trustee by an authorized officer. Each Certificate shall, on original issue,
      be
      authenticated by the Trustee upon the order of the Depositor upon receipt by
      the
      Trustee of the Mortgage Files described in Section 2.01. No Certificate shall
      be
      entitled to any benefit under this Agreement, or be valid for any purpose,
      unless there appears on such Certificate a certificate of authentication
      substantially in the form provided for herein, executed by an authorized officer
      of the Trustee or the Authenticating Agent, if any, by manual signature, and
      such certification upon any Certificate shall be conclusive evidence, and the
      only evidence, that such Certificate has been duly authenticated and delivered
      hereunder. All Certificates shall be dated the date of their authentication.
      At
      any time and from time to time after the execution and delivery of this
      Agreement, the Depositor may deliver Certificates executed by the Depositor
      to
      the Trustee or the Authenticating Agent for authentication and the Trustee
      or
      the Authenticating Agent shall authenticate and deliver such Certificates as
      in
      this Agreement provided and not otherwise.

     

    
      	Section
              3.02  	
              Registration.

            

    

     

    The
      Trustee is hereby appointed, and hereby accepts its appointment as, Certificate
      Registrar in respect of the Certificates and shall maintain books for the
      registration and for the transfer of Certificates (the “Certificate Register”).
      The Trustee may appoint a bank or trust company to act as Certificate Registrar.
      A registration book shall be maintained for the Certificates collectively.
      The
      Certificate Registrar may resign or be discharged or removed and a new successor
      may be appointed in accordance with the procedures and requirements set forth
      in
      Sections 6.06 and 6.07 hereof with respect to the resignation, discharge or
      removal of the Trustee and the appointment of a successor trustee. The
      Certificate Registrar may appoint, by a written instrument delivered to the
      Holders and the Master Servicer, any bank or trust company to act as co
      registrar under such conditions as the Certificate Registrar may prescribe;
      provided, however, that the Certificate Registrar shall not be relieved of
      any
      of its duties or responsibilities hereunder by reason of such
      appointment.

     

    
      	Section
              3.03  	
              Transfer
                and Exchange of Certificates.

            

    

     

    (a)  A
      Certificate (other than a Book-Entry Certificate, which shall be subject to
      Section 3.09 hereof) may be transferred by the Holder thereof only upon
      presentation and surrender of such Certificate at the office of the Certificate
      Registrar duly endorsed or accompanied by an assignment duly executed by such
      Holder or his duly authorized attorney in such form as shall be satisfactory
      to
      the Certificate Registrar. Upon the transfer of any Certificate in accordance
      with the preceding sentence, the Trustee shall execute, and the Trustee or
      any
      Authenticating Agent shall authenticate and deliver to the transferee, one
      or
      more new Certificates of the same Class and evidencing, in the aggregate, the
      same aggregate Certificate Principal Amount or Percentage Interest as the
      Certificate being transferred. No service charge shall be made to a
      Certificateholder for any registration of transfer of Certificates, but the
      Certificate Registrar may require payment of a sum sufficient to cover any
      tax
      or governmental charge that may be imposed in connection with any registration
      of transfer of Certificates.

     

    
      
        
        

      

      
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    (b)  A
      Certificate may be exchanged by the Holder thereof for any number of new
      Certificates of the same Class, in authorized denominations, representing in
      the
      aggregate the same Certificate Principal Amount or Percentage Interest as the
      Certificate surrendered, upon surrender of the Certificate to be exchanged
      at
      the office of the Certificate Registrar duly endorsed or accompanied by a
      written instrument of transfer duly executed by such Holder or his duly
      authorized attorney in such form as is satisfactory to the Certificate
      Registrar. Certificates delivered upon any such exchange will evidence the
      same
      obligations, and will be entitled to the same rights and privileges, as the
      Certificates surrendered. No service charge shall be made to a Certificateholder
      for any exchange of Certificates, but the Certificate Registrar may require
      payment of a sum sufficient to cover any tax or governmental charge that may
      be
      imposed in connection with any exchange of Certificates. Whenever any
      Certificates are so surrendered for exchange, the Trustee shall execute, and
      the
      Trustee or the Authenticating Agent shall authenticate, date and deliver the
      Certificates which the Certificateholder making the exchange is entitled to
      receive.

     

    (c)  By
      acceptance of a Restricted Certificate or QIB-Restricted Certificate, whether
      upon original issuance or subsequent transfer, each Holder of such a Certificate
      acknowledges the restrictions on the transfer of such Certificate set forth
      thereon and agrees that it will transfer such a Certificate only as provided
      herein. 

     

    The
      following restrictions shall apply with respect to the transfer and registration
      of transfer of a Restricted Certificate to a transferee that takes delivery
      in
      the form of a Definitive Certificate:

     

    (i)  The
      Certificate Registrar shall register the transfer of a Restricted Certificate
      if
      the requested transfer is (x) to the Depositor or the Placement Agent, an
      affiliate (as defined in Rule 405 under the Act) of the Depositor or the
      Placement Agent or (y) being made to a “qualified institutional buyer” (a “QIB”)
      as defined in Rule 144A under the Act by a transferor that has provided the
      Trustee with a certificate in the form of Exhibit F hereto; and

     

    (ii)  The
      Certificate Registrar shall register the transfer of a Restricted Certificate
      if
      the requested transfer is being made to an “accredited investor” under Rule
      501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the
      “Act”), or to any Person all of the equity owners in which are such accredited
      investors, by a transferor who furnishes to the Trustee a letter of the
      transferee substantially in the form of Exhibit G hereto.

     

    
      
        
        

      

      
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    (d) No
      transfer of a Grantor Trust Certificate will be registered unless the Trustee,
      the Certificate Registrar and the Depositor receive (A) a representation as
      set
      forth in Exhibit H to the effect that such transferee is not, and is not acting
      for, on behalf of or with any assets of, an employee benefit plan or other
      arrangement subject to Title I of ERISA or plan subject to Section 4975 of
      the
      Code, or (ii) until the termination of the applicable Deferred Interest Cap
      Agreement, the acquisition and holding of the Grantor Trust Certificate are
      eligible for exemptive relief under any of Section 408(b)(17) of ERISA or
      Section 4975(d)(20) of the Code, Prohibited Transaction Class Exemption (“PTCE”)
      84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23, each as amended. No
      Transfer of an ERISA-Restricted Certificate or a Class R Certificate will be
      registered unless the Trustee, the Certificate Registrar and the Depositor
      receive (A) a representation as set forth in Exhibit D-1 for Class R
      Certificates or Exhibit H for ERISA-Restricted Certificates to the effect that
      such transferee is not an employee benefit plan or other arrangement subject
      to
      Title I of ERISA, a plan subject to Section 4975 of the Code or a plan subject
      to any provisions under any federal, state, local, non-U.S. or other laws or
      regulations that are substantively similar to the foregoing provisions of ERISA
      or the Code (“Similar Law”) (collectively, a “Plan”), and is not directly or
      indirectly acquiring the Class R Certificate for, on behalf of, or with any
      assets of any such Plan, or (B) solely in the case of an ERISA-Restricted
      Certificate (I) a representation as set forth in Exhibit H for ERISA-Restricted
      Certificates that, if the Certificate has been the subject of an
      ERISA-Qualifying Underwriting, such transferee is an insurance company that
      is
      acquiring the Certificate with assets contained in an “insurance company general
      account,” as defined in Section V(e) of Prohibited Transaction Class Exemption
      (“PTCE”) 95-60, and the acquisition and holding of the Certificate are covered
      and exempt under Sections I and III of PTCE 95-60, or (II) solely in the case
      of
      an ERISA-Restricted Certificate that is a Definitive Certificate, an Opinion
      of
      Counsel satisfactory to the Trustee, the Certificate Registrar and the
      Depositor, and upon which the Trustee, the Certificate Registrar and the
      Depositor shall be entitled to rely, to the effect that the acquisition and
      holding of such Certificate will not constitute or result in a nonexempt
      prohibited transaction under ERISA or the Code, or a violation of Similar Law,
      and will not subject the Trustee, the Certificate Registrar, the Master
      Servicer, any Servicer or the Depositor to any obligation in addition to those
      expressly undertaken in this Agreement, which Opinion of Counsel shall not
      be an
      expense of the Trustee, the Certificate Registrar, the Master Servicer, any
      Servicer or the Depositor.

     

    Except
      in
      the case of Definitive Certificates, the representations set forth in the
      preceding paragraphs, other than clause (B)(II) in the immediately preceding
      paragraph, shall be deemed to have been made to the Trustee, the Certificate
      Registrar and the Depositor by the transferee’s acceptance of a Grantor Trust
      Certificate, an ERISA-Restricted Certificate or a Class R Certificate (or the
      acceptance by a Certificate Owner of the beneficial interest in any Class of
      Grantor Trust Certificate, ERISA-Restricted Certificate or Class R Certificate).
      The Trustee, the Certificate Registrar and the Depositor shall not have any
      obligation to monitor transfers of Book-Entry Certificates or Restricted Global
      Securities that are Grantor Trust Certificates, ERISA-Restricted Certificates
      or
      Class R Certificates or any liability for transfers of such Certificates in
      violation of the transfer restrictions.

     

    Notwithstanding
      any other provision herein to the contrary, any purported transfer of a Grantor
      Trust Certificate, an ERISA-Restricted Certificate or Class R Certificate to
      or
      on behalf of a Plan without the delivery to the Trustee, the Certificate
      Registrar and the Depositor of a representation or an Opinion of Counsel
      satisfactory to the Trustee, the Certificate Registrar and the Depositor as
      described above shall be void and of no effect and the next preceding permitted
      beneficial owner will be treated as the beneficial owner of that Certificate,
      retroactive to the date of transfer to the purported beneficial owner. The
      Trustee, the Certificate Registrar and the Depositor shall not have any
      liability to any Person for any registration or transfer of any Grantor Trust
      Certificate, ERISA-Restricted Certificate or Class R Certificate that is in
      fact
      not permitted by this Section 3.03(d) and the Trustee, the Certificate Registrar
      and the Depositor shall not have any liability for making any payments due
      on
      such Certificate to the Holder thereof or taking any other action with respect
      to such Holder under the provisions of this Agreement so long as the transfer
      was registered by the Certificate Registrar in accordance with the foregoing
      requirements. The Trustee, the Certificate Registrar and the Depositor shall
      be
      entitled, but not obligated, to recover from any Holder of any Grantor Trust
      Certificate, ERISA-Restricted Certificate or Class R Certificate that was in
      fact a Plan and that held such Certificate in violation of this Section 3.03(d)
      all payments made on such Grantor Trust Certificate, ERISA-Restricted
      Certificate or Class R Certificate at and after the time it commenced such
      holding. Any such payments so recovered shall be paid and delivered to the
      last
      preceding Holder of such Certificate that is not a Plan.

     

    
      
        
        

      

      
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    (e) As
      a
      condition of the registration of transfer or exchange of any Certificate, the
      Certificate Registrar may require the certified taxpayer identification number
      of the owner of the Certificate and the payment of a sum sufficient to cover
      any
      tax or other governmental charge imposed in connection therewith; provided,
      however, that the Certificate Registrar shall have no obligation to require
      such
      payment or to determine whether or not any such tax or charge may be applicable.
      No service charge shall be made to the Certificateholder for any registration,
      transfer or exchange of a Certificate.

     

    (f) Notwithstanding
      anything to the contrary contained herein, no Residual Certificate may be owned,
      pledged or transferred, directly or indirectly, by or to (i) a Disqualified
      Organization or (ii) an individual, corporation or partnership or other person
      unless, in the case of clause (ii), such person is (A) not a Non-U.S. Person
      or
      (B) is a Non-U.S. Person that holds a Residual Certificate in connection with
      the conduct of a trade or business within the United States and has furnished
      the transferor and the Trustee with an effective Internal Revenue Service Form
      W-8ECI or successor form at the time and in the manner required by the Code
      (any
      such person who is not covered by clause (A) or (B) above is referred to herein
      as a “Non-permitted Foreign Holder”).

     

    Prior
      to
      and as a condition of the registration of any transfer, sale or other
      disposition of a Residual Certificate, the proposed transferee shall deliver
      to
      the Trustee an affidavit in substantially the form attached hereto as Exhibit
      D-1 representing and warranting, among other things, that such transferee is
      neither a Disqualified Organization, an agent or nominee acting on behalf of
      a
      Disqualified Organization, nor a Non-permitted Foreign Holder (any such
      transferee, a “Permitted Transferee”), and the proposed transferor shall deliver
      to the Trustee an affidavit in substantially the form attached hereto as Exhibit
      D-2. In addition, the Trustee may (but shall have no obligation to) require,
      prior to and as a condition of any such transfer, the delivery by the proposed
      transferee of an Opinion of Counsel, addressed to the Depositor, the Master
      Servicer, any NIMS Insurer and the Trustee satisfactory in form and substance
      to
      the Depositor, that such proposed transferee or, if the proposed transferee
      is
      an agent or nominee, the proposed beneficial owner, is not a Disqualified
      Organization, agent or nominee thereof, or a Non-permitted Foreign Holder.
      Notwithstanding the registration in the Certificate Register of any transfer,
      sale, or other disposition of a Residual Certificate to a Disqualified
      Organization, an agent or nominee thereof, or Non-permitted Foreign Holder,
      such
      registration shall be deemed to be of no legal force or effect whatsoever and
      such Disqualified Organization, agent or nominee thereof, or Non-permitted
      Foreign Holder shall not be deemed to be a Certificateholder for any purpose
      hereunder, including, but not limited to, the receipt of distributions on such
      Residual Certificate. The Trustee shall not be under any liability to any person
      for any registration or transfer of a Residual Certificate to a Disqualified
      Organization, agent or nominee thereof or Non-permitted Foreign Holder or for
      the maturity of any payments due on such Residual Certificate to the Holder
      thereof or for taking any other action with respect to such Holder under the
      provisions of the Agreement, so long as the transfer was effected in accordance
      with this Section 3.03(f), unless a Responsible Officer of the Trustee shall
      have actual knowledge at the time of such transfer or the time of such payment
      or other action that the transferee is a Disqualified Organization, or an agent
      or nominee thereof, or Non-permitted Foreign Holder. The Trustee shall be
      entitled, but not obligated, to recover from any Holder of a Residual
      Certificate that was a Disqualified Organization, agent or nominee thereof,
      or
      Non-permitted Foreign Holder at the time it became a Holder or any subsequent
      time it became a Disqualified Organization, agent or nominee thereof, or
      Non-permitted Foreign Holder, all payments made on such Residual Certificate
      at
      and after either such times (and all costs and expenses, including but not
      limited to attorneys’ fees, incurred in connection therewith). Any payment (not
      including any such costs and expenses) so recovered by the Trustee shall be
      paid
      and delivered to the last preceding Holder of such Residual
      Certificate.

     

    
      
        
        

      

      
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    If
      any
      purported transferee shall become a registered Holder of a Residual Certificate
      in violation of the provisions of this Section 3.03(f), then upon receipt of
      written notice to the Trustee that the registration of transfer of such Residual
      Certificate was not in fact permitted by this Section 3.03(f), the last
      preceding Permitted Transferee shall be restored to all rights as Holder thereof
      retroactive to the date of such registration of transfer of such Residual
      Certificate. The Trustee shall be under no liability to any Person for any
      registration of transfer of a Residual Certificate that is in fact not permitted
      by this Section 3.03(f), for making any payment due on such Certificate to
      the
      registered Holder thereof or for taking any other action with respect to such
      Holder under the provisions of this Agreement so long as the transfer was
      registered upon receipt of the affidavit described in the preceding paragraph
      of
      this Section 3.03(f).

     

    (g) Each
      Holder or Certificate Owner of a Restricted Certificate, ERISA-Restricted
      Certificate, QIB-Restricted Certificate or Residual Certificate, or an interest
      therein, by such Holder’s or Owner’s acceptance thereof, shall be deemed for all
      purposes to have consented to the provisions of this section.

     

    
      	Section
              3.04  	
              Cancellation
                of Certificates.

            

    

     

    Any
      Certificate surrendered for registration of transfer or exchange shall be
      cancelled and retained in accordance with normal retention policies with respect
      to cancelled certificates maintained by the Trustee or the Certificate
      Registrar.

     

    
      	Section
              3.05  	
              Replacement
                of Certificates.

            

    

     

    If
      (i)
      any Certificate is mutilated and is surrendered to the Trustee or any
      Authenticating Agent or (ii) the Trustee or any Authenticating Agent receives
      evidence to its satisfaction of the destruction, loss or theft of any
      Certificate, and there is delivered to any NIMS Insurer and the Trustee or
      the
      Authenticating Agent such security or indemnity as may be required by them
      to
      save each of them harmless, then, in the absence of notice to the Depositor
      and
      any Authenticating Agent that such destroyed, lost or stolen Certificate has
      been acquired by a bona fide purchaser, the Trustee shall execute and the
      Trustee or any Authenticating Agent shall authenticate and deliver, in exchange
      for or in lieu of any such mutilated, destroyed, lost or stolen Certificate,
      a
      new Certificate of like tenor and Certificate Principal Amount. Upon the
      issuance of any new Certificate under this Section 3.05, the Trustee and
      Authenticating Agent may require the payment of a sum sufficient to cover any
      tax or other governmental charge that may be imposed in relation thereto and
      any
      other expenses (including the fees and expenses of the Trustee or the
      Authenticating Agent) connected therewith. Any replacement Certificate issued
      pursuant to this Section 3.05 shall constitute complete and indefeasible
      evidence of ownership in the applicable Trust Fund, as if originally issued,
      whether or not the lost, stolen or destroyed Certificate shall be found at
      any
      time.

     

    
      
        
        

      

      
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      	Section
              3.06  	
              Persons
                Deemed Owners.

            

    

     

    Subject
      to the provisions of Section 3.09 with respect to Book Entry Certificates,
      the
      Depositor, the Master Servicer, the Trustee, any NIMS Insurer, the Certificate
      Registrar and any agent of any of them may treat the Person in whose name any
      Certificate is registered upon the books of the Certificate Registrar as the
      owner of such Certificate for the purpose of receiving distributions pursuant
      to
      Sections 5.01 and 5.02 and for all other purposes whatsoever, and neither the
      Depositor, the Master Servicer, the Trustee, any NIMS Insurer, the Certificate
      Registrar nor any agent of any of them shall be affected by notice to the
      contrary.

     

    
      	Section
              3.07  	
              Temporary
                Certificates.

            

    

     

    (a)  Pending
      the preparation of Definitive Certificates, upon the order of the Depositor,
      the
      Trustee shall execute and shall authenticate and deliver temporary Certificates
      that are printed, lithographed, typewritten, mimeographed or otherwise produced,
      in any authorized denomination, substantially of the tenor of the Definitive
      Certificates in lieu of which they are issued and with such variations as the
      authorized officers executing such Certificates may determine, as evidenced
      by
      their execution of such Certificates.

     

    (b)  If
      temporary Certificates are issued, the Depositor will cause Definitive
      Certificates to be prepared without unreasonable delay. After the preparation
      of
      Definitive Certificates, the temporary Certificates shall be exchangeable for
      Definitive Certificates upon surrender of the temporary Certificates at the
      office or agency of the Trustee without charge to the Holder. Upon surrender
      for
      cancellation of any one or more temporary Certificates, the Trustee shall
      execute and authenticate and deliver in exchange therefor a like aggregate
      Certificate Principal Amount of Definitive Certificates of the same Class in
      the
      authorized denominations. Until so exchanged, the temporary Certificates shall
      in all respects be entitled to the same benefits under this Agreement as
      Definitive Certificates of the same Class.

     

    
      	Section
              3.08  	
              Appointment
                of Paying Agent.

            

    

     

    (a) The
      Trustee hereby appoints itself as Paying Agent. The Trustee may appoint a
      successor Paying Agent acceptable to the NIMS Insurer, for the purpose of making
      distributions to Certificateholders hereunder. The Trustee shall cause such
      Paying Agent (if other than the Trustee) to execute and deliver to the Trustee
      an instrument in which such Paying Agent shall agree with the Trustee that
      such
      Paying Agent will hold all sums held by it for the payment to Certificateholders
      in an Eligible Account in trust for the benefit of the Certificateholders
      entitled thereto until such sums shall be paid to the Certificateholders. All
      funds remitted by the Trustee to any such Paying Agent for the purpose of making
      distributions shall be paid to Certificateholders on each Distribution Date
      and
      any amounts not so paid shall be returned on such Distribution Date to the
      Trustee. If the Paying Agent is not the Trustee, the Trustee shall cause to
      be
      remitted to the Paying Agent on or before the Business Day prior to each
      Distribution Date, by wire transfer in immediately available funds, the funds
      to
      be distributed on such Distribution Date. 

     

    
      
        
        

      

      
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    (b) Any
      Paying Agent shall be either a bank or trust company or otherwise authorized
      under law to exercise corporate trust powers. A Paying Agent shall comply with
      its reporting obligations under Regulation AB with respect to the Trust Fund
      in
      form and substance similar to those of the Trustee pursuant to Section 6.20,
      and
      the related assessment of compliance shall cover, at a minimum, the matters
      indicated as obligations with respect to the Paying Agent on Exhibit R attached
      hereto. In addition, the Paying Agent (if other than the Trustee) shall notify
      the Sponsor, the Master Servicer and the Depositor within five (5) calendar
      days
      of knowledge thereof (i) of any legal proceedings pending against the Paying
      Agent of the type described in Item 1117 (§ 229.1117) of Regulation AB,
      (ii) any merger, consolidation or sale of substantially all of the assets of
      the
      Paying Agent and (iii) if the Paying Agent shall become (but only to the extent
      not previously disclosed) at any time an Affiliate of any of the parties listed
      on Exhibit S hereto or any of their Affiliates.

     

    (c)
       Any
      Paying Agent (if other than the Trustee) agrees to indemnify the Depositor,
      the
      Trustee (if other than the Paying Agent) and the Master Servicer, and each
      of
      their respective directors, officers, employees and agents and the Trust Fund
      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 failure by such Paying Agent to deliver any information,
      report or certification when and as required under Section 6.20 and Section
      9.25(a), provided, however, that this sentence shall not apply if the Paying
      Agent is the Trustee. This indemnification shall survive the termination of
      this
      Agreement or the termination of such Paying Agent hereunder.

     

    
      	Section
              3.09  	
              Book
                Entry Certificates.

            

    

     

    (a)  Each
      Class of Book Entry Certificates, upon original issuance, shall be issued in
      the
      form of one or more typewritten Certificates representing the Book Entry
      Certificates. The Book Entry Certificates shall initially be registered on
      the
      Certificate Register in the name of the nominee of the Clearing Agency, and
      no
      Certificate Owner will receive a Definitive Certificate representing such
      Certificate Owner’s interest in the Book Entry Certificates, except as provided
      in Section 3.09(c). Unless Definitive Certificates have been issued to
      Certificate Owners of Book Entry Certificates pursuant to Section
      3.09(c):

     

    (i)  the
      provisions of this Section 3.09 shall be in full force and effect;

     

    
      
        
        

      

      
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    (ii)  the
      Depositor, the Master Servicer, the Paying Agent, the Registrar and the Trustee
      may deal with the Clearing Agency for all purposes (including the making of
      distributions on the Book Entry Certificates) as the authorized representatives
      of the Certificate Owners and the Clearing Agency shall be responsible for
      crediting the amount of such distributions to the accounts of such Persons
      entitled thereto, in accordance with the Clearing Agency’s normal
      procedures;

     

    (iii)  to
      the
      extent that the provisions of this Section 3.09 conflict with any other
      provisions of this Agreement, the provisions of this Section 3.09 shall control;
      and

     

    (iv)  the
      rights of Certificate Owners shall be exercised only through the Clearing Agency
      and the Clearing Agency Participants and shall be limited to those established
      by law and agreements between such Certificate Owners and the Clearing Agency
      and/or the Clearing Agency Participants. Unless and until Definitive
      Certificates are issued pursuant to Section 3.09(c), the initial Clearing Agency
      will make book entry transfers among the Clearing Agency Participants and
      receive and transmit distributions of principal of and interest on the Book
      Entry Certificates to such Clearing Agency Participants.

     

    (b)  Whenever
      notice or other communication to the Certificateholders is required under this
      Agreement, unless and until Definitive Certificates shall have been issued
      to
      Certificate Owners pursuant to Section 3.09(c), the Trustee shall give all
      such
      notices and communications specified herein to be given to Holders of the Book
      Entry Certificates to the Clearing Agency.

     

    (c)  If
      (i)
      (A) the Depositor advises the Trustee in writing that the Clearing Agency is
      no
      longer willing or able to discharge properly its responsibilities with respect
      to the Book-Entry Certificates, and (B) the Trustee or the Depositor is unable
      to locate a qualified successor, or (ii) after the occurrence of an Event of
      Default, Certificate Owners representing beneficial interests aggregating not
      less than 50% of the Class Principal Amount of a Class of Book Entry
      Certificates identified as such to the Trustee by an Officer’s Certificate from
      the Clearing Agency advise the Trustee and the Clearing Agency through the
      Clearing Agency Participants in writing that the continuation of a book entry
      system through the Clearing Agency is no longer in the best interests of the
      Certificate Owners of a Class of Book Entry Certificates, the Trustee shall
      notify or cause the Certificate Registrar to notify the Clearing Agency to
      effect notification to all Certificate Owners, through the Clearing Agency,
      of
      the occurrence of any such event and of the availability of Definitive
      Certificates to Certificate Owners requesting the same. Upon surrender to the
      Trustee of the Book Entry Certificates by the Clearing Agency, accompanied
      by
      registration instructions from the Clearing Agency for registration, the Trustee
      shall issue the Definitive Certificates. Neither the Depositor nor the Trustee
      shall be liable for any delay in delivery of such instructions and may
      conclusively rely on, and shall be protected in relying on, such instructions.
      Upon the issuance of Definitive Certificates all references herein to
      obligations imposed upon or to be performed by the Clearing Agency shall be
      deemed to be imposed upon and performed by the Trustee, to the extent
      applicable, with respect to such Definitive Certificates and the Trustee shall
      recognize the holders of the Definitive Certificates as Certificateholders
      hereunder.

     

    
      
        
        

      

      
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    ARTICLE
      IV.

     

    ADMINISTRATION
      OF THE TRUST FUND

     

    
      	Section
              4.01  	
              Collection
                Account.

            

    

     

    (a)  On
      the
      Closing Date, the Master Servicer shall open and shall thereafter maintain
      a
      segregated account held in trust (the “Collection Account”), entitled “Aurora
      Loan Services LLC, as Master Servicer, in trust for the benefit of the Holders
      of Lehman XS Trust Mortgage Pass-Through Certificates, Series 2006-16N” or its
      nominee. The Collection Account shall relate solely to the Certificates issued
      by the Trust Fund hereunder, and funds in such Collection Account shall not
      be
      commingled with any other monies.

     

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

     

    (c)  The
      Master Servicer shall give to the Trustee and any NIMS Insurer prior written
      notice of the name and address of the depository institution at which the
      Collection Account is maintained and the account number of such Collection
      Account. The Master Servicer shall take such actions as are necessary to cause
      the depository institution holding the Collection Account to hold such account
      in the name of the Master Servicer under this Agreement. No later than 2:00
      p.m.
      New York City time on each Deposit Date, the entire amount on deposit in the
      Collection Account (subject to permitted withdrawals set forth in Section 4.02),
      other than amounts not included in the Total Distribution Amount for such
      Distribution Date, shall be remitted to the Trustee for deposit into the
      Certificate Account by wire transfer in immediately available funds. The Master
      Servicer, at its option (but with prior notice to the Trustee), may choose
      to
      make daily remittances from the Collection Account to the Trustee for deposit
      into the Certificate Account.

     

    (d)  The
      Master Servicer shall deposit or cause to be deposited into the Collection
      Account, no later than the second Business Day following the Closing Date,
      any
      amounts received with respect to the Mortgage Loans representing Scheduled
      Payments on the Mortgage Loans due after the Cut-off Date and unscheduled
      payments received on or after the Cut-off Date and on or before the Closing
      Date. Thereafter, the Master Servicer shall deposit or cause to be deposited
      in
      the Collection Account on the earlier of the applicable Deposit Date and two
      Business Days following receipt thereof, the following amounts received or
      payments made by it (other than in respect of principal of and interest on
      the
      Mortgage Loans due on or before the Cut-off Date):

     

    (i)  all
      payments on account of principal, including Principal Prepayments, late
      collections, and any Prepayment Premiums, on the Mortgage Loans;

     

    (ii)  all
      payments on account of interest on the Mortgage Loans, in all cases, net of
      the
      Servicing Fee with respect to each such Mortgage Loan, but only to the extent
      of
      the amount permitted to be withdrawn or withheld from the Collection Account
      in
      accordance with Sections 5.04 and 9.21;

     

    
      
        
        

      

      
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    (iii)  any
      unscheduled payment or other recovery with respect to a Mortgage Loan not
      otherwise specified in this paragraph (d), including any Subsequent Recovery,
      all Net Liquidation Proceeds with respect to the Mortgage Loans and REO
      Property, and all amounts received in connection with the operation of any
      REO
      Property, net of (x) any unpaid Servicing Fees with respect to such Mortgage
      Loans (but only to the extent of the amount permitted to be withdrawn or
      withheld from the Collection Account in accordance with Sections 5.04 and 9.21)
      and (y) any amounts reimbursable to the applicable Servicer with respect to
      such
      Mortgage Loan under the related Servicing Agreement and retained by such
      Servicer;

     

    (iv)  all
      Insurance Proceeds;

     

    (v)  all
      Advances made by the Master Servicer or the applicable Servicer pursuant to
      Section 5.04 or the related Servicing Agreement;

     

    (vi)  all
      amounts paid by the applicable Servicer or the Master Servicer with respect
      to
      Prepayment Interest Shortfalls; and

     

    (vii)  the
      Purchase Price of any Mortgage Loan repurchased by the Depositor, the Seller,
      the Master Servicer or any other Person, and any Substitution Amount related
      to
      any Qualifying Substitute Mortgage Loan and any purchase price paid by any
      NIMS
      Insurer for the purchase of any Distressed Mortgage Loan under Section
      7.04.

     

    (e)  Funds
      in
      the Collection Account may be invested in Eligible Investments selected by
      and
      at the written direction of the Master Servicer, which shall mature not later
      than one Business Day prior to the Deposit Date (except that if such Eligible
      Investment is an obligation of the Trustee, then such Eligible Investment shall
      mature not later than such applicable Deposit Date) and any such Eligible
      Investment shall not be sold or disposed of prior to its maturity. All such
      Eligible Investments shall be made in the name of the Master Servicer in trust
      for the benefit of the Trustee and the Holders of Lehman XS Trust Mortgage
      Pass-Through Certificates, Series 2006-16N. All income and gain realized from
      any Eligible Investment shall be for the benefit of the Master Servicer and
      shall be subject to its withdrawal or order from time to time and shall not
      be
      part of the Trust Fund. The amount of any losses incurred in respect of any
      such
      investments shall be deposited in such Collection Account by the Master Servicer
      out of its own funds, without any right of reimbursement therefor, immediately
      as realized. The foregoing requirements for deposit in the Collection Account
      are exclusive, it being understood and agreed that, without limiting the
      generality of the foregoing, payments of interest on funds in the Collection
      Account and payments in the nature of late payment charges, assumption fees,
      prepayment penalties with respect to mortgages for which the Seller does not
      own
      the servicing rights, and other incidental fees and charges relating to the
      Mortgage Loans (other than Prepayment Premiums) need not be deposited by the
      Master Servicer in the Collection Account and may be retained by the Master
      Servicer or the applicable Servicer as additional servicing compensation. If
      the
      Master Servicer deposits in the Collection Account any amount not required
      to be
      deposited therein, it may at any time withdraw such amount from such Collection
      Account.

     

    
      
        
        

      

      
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      	Section
              4.02  	
              Application
                of Funds in the Collection Account.

            

    

     

    (a)  The
      Master Servicer may, from time to time, make, or cause to be made, withdrawals
      from the Collection Account for the following purposes:

     

    (i)  to
      reimburse itself or any Servicer for Advances or Servicing Advances made by
      it
      or by such Servicer pursuant to Section 5.04 or the applicable Servicing
      Agreement; such right to reimbursement pursuant to this sub-clause (i) is
      limited to amounts received on or in respect of a particular Mortgage Loan
      (including, for this purpose, Liquidation Proceeds and amounts representing
      Insurance Proceeds with respect to the property subject to the related Mortgage)
      which represent late recoveries of payments of principal or interest respecting
      which any such Advance was made, it being understood, in the case of any such
      reimbursement, that the Master Servicer’s or Servicer’s right thereto shall be
      prior to the rights of the Certificateholders;

     

    (ii)  to
      reimburse itself or any Servicer, following a final liquidation of a Mortgage
      Loan (except as otherwise provided in the applicable Servicing Agreement) for
      any previously unreimbursed Advances or Servicing Advances made by it or by
      such
      Servicer (A) that it or such Servicer determines in good faith will not be
      recoverable from amounts representing late recoveries of payments of principal
      or interest respecting the particular Mortgage Loan as to which such Advance
      or
      Servicing Advance was made or from Liquidation Proceeds or Insurance Proceeds
      with respect to such Mortgage Loan and/or (B) to the extent that such
      unreimbursed Advances or Servicing Advances exceed the related Liquidation
      Proceeds or Insurance Proceeds, it being understood, in the case of each such
      reimbursement, that such Master Servicer’s or Servicer’s right thereto shall be
      prior to the rights of the Certificateholders;

     

    (iii)  to
      reimburse itself or any Servicer from Liquidation Proceeds for Liquidation
      Expenses and for amounts expended by it pursuant to Sections 9.20 and 9.22(c)
      or
      the applicable Servicing Agreement in good faith in connection with the
      restoration of damaged property and, to the extent that Liquidation Proceeds
      after such reimbursement exceed the unpaid principal balance of the related
      Mortgage Loan, together with accrued and unpaid interest thereon at the
      applicable Mortgage Rate less the applicable Servicing Fee Rate, for such
      Mortgage Loan to the Due Date next succeeding the date of its receipt of such
      Liquidation Proceeds, to pay to itself out of such excess the amount of any
      unpaid assumption fees, late payment charges or other Mortgagor charges on
      the
      related Mortgage Loan and to retain any excess remaining thereafter as
      additional servicing compensation, it being understood, in the case of any
      such
      reimbursement or payment, that such Master Servicer’s or Servicer’s right
      thereto shall be prior to the rights of the Certificateholders;

     

    (iv)  [Reserved];

     

    (v)  to
      reimburse itself or any Servicer for expenses incurred by and recoverable by
      or
      reimbursable to it or such Servicer pursuant to Sections 9.04, 9.05, 9.06,
      9.07(a), 9.16, 9.30 or 11.15 or pursuant to the applicable Servicing
      Agreement;

     

    (vi)  to
      pay to
      the Depositor, the Seller or the Transferor, as applicable, with respect to
      each
      Mortgage Loan or REO Property acquired in respect thereof that has been
      purchased pursuant to this Agreement, all amounts received thereon and not
      distributed on the date on which the related repurchase was effected, and to
      pay
      to the applicable Person any Advances and Servicing Advances to the extent
      specified in the definition of Purchase Price;

     

    
      
        
        

      

      
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    (vii)  subject
      to Section 5.05, to pay to itself income earned on the investment of funds
      deposited in the Collection Account;

     

    (viii)  to
      make
      payments to the Trustee on each Deposit Date for deposit into the Certificate
      Account in the amount provided in Section 4.04;

     

    (ix)  to
      make
      payment to itself, the Trustee and others pursuant to any other provision of
      this Agreement and to reimburse any Custodian pursuant to the applicable
      Custodial Agreement, but only to the extent that the items reimbursed constitute
      “unanticipated expenses” within the meaning of Treasury Regulation Section
      1.860G-1(b)(3)(ii);

     

    (x)  to
      withdraw funds deposited in error in the Collection Account;

     

    (xi)  to
      clear
      and terminate the Collection Account pursuant to Section 7.02;

     

    (xii)  to
      reimburse the Trustee and a successor master servicer (solely in its capacity
      as
      successor master servicer), for any fee or advance occasioned by a termination
      of the Master Servicer, and the assumption of such duties by the Trustee or
      a
      successor master servicer appointed by the Trustee pursuant to Section 6.14,
      in
      each case to the extent not reimbursed by the terminated Master Servicer, it
      being understood, in the case of any such reimbursement or payment, that the
      right of the Master Servicer or the Trustee thereto shall be prior to the rights
      of the Certificateholders; and

     

    (xiii)  to
      reimburse any Servicer for such amounts as are due thereto under the applicable
      Servicing Agreement and have not been retained by or paid to such Servicer,
      to
      the extent provided in such Servicing Agreement.

     

    If
      provided in its applicable Servicing Agreement, a Servicer shall be entitled
      to
      retain as additional servicing compensation any Prepayment Interest Excess
      (to
      the extent not offset by Prepayment Interest Shortfalls).

     

    In
      the
      event that the Master Servicer fails on any Deposit Date to remit to the Trustee
      any amounts required to be so remitted to the Trustee pursuant to sub-clause
      (viii) by such date, the Master Servicer shall pay the Trustee, for the account
      of the Trustee, interest calculated at the “prime rate” (as published in the
“Money Rates” section of The Wall Street Journal) on such amounts not timely
      remitted for the period from and including that Deposit Date to but not
      including the related Distribution Date. The Master Servicer shall only be
      required to pay the Trustee interest for the actual number of days such amounts
      are not timely remitted (e.g., one day’s interest, if such amounts are remitted
      one day after the Deposit Date).

     

    In
      connection with withdrawals pursuant to sub-clauses (i), (ii), (iii), and (vi)
      above, the Master Servicer’s, any Servicer’s or such other Person’s entitlement
      thereto is limited to collections or other recoveries on the related Mortgage
      Loan. The Master Servicer shall therefore keep and maintain a separate
      accounting for each Mortgage Loan it master services for the purpose of
      justifying any withdrawal from the Collection Account it maintains pursuant
      to
      such sub-clause (i), (ii), (iii) and (vi).

     

    
      
        
        

      

      
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    Any
      withdrawals described in this section shall be allocated and limited to
      collections or other recoveries on the related Mortgage Pool and shall be
      accounted for in such manner.

     

    (b)  The
      Trustee shall afford the NIMS Insurer upon reasonable notice, during normal
      business hours, access to all records maintained by the Trustee in respect
      of
      its duties hereunder and access to officers of the Trustee responsible for
      performing such duties. The Trustee shall cooperate fully with the NIMS Insurer
      and shall make available to the NIMS Insurer for review and copying at the
      expense of the NIMS Insurer, such books, documents or records as may be
      requested with respect to the Trustee’s duties hereunder. The NIMS Insurer shall
      not have any responsibility or liability for any action or failure to act by
      the
      Trustee and are not obligated to supervise the performance of the Trustee under
      this Agreement or otherwise. The Trustee shall also afford the NIMS Insurer,
      upon reasonable notice, during normal business hours, access to the Mortgage
      Files and shall cause the Master Servicer and the Servicer to provide such
      access to the Mortgage Files.

     

    
      	Section
              4.03  	
              Reports
                to Certificateholders.

            

    

     

    (a)  On
      each
      Distribution Date, the Trustee shall prepare (based solely on information
      provided by the Master Servicer or any Cap Provider) and shall make available
      to
      the Certificateholders and any NIMS Insurer a written report setting forth
      the
      following information by Mortgage Pool (on the basis of Mortgage Loan level
      information obtained from the applicable Servicer).

     

    (i)  the
      aggregate amount of the distribution to be made on such Distribution Date to
      the
      Holders of each Class of LIBOR Certificates and Grantor Trust Certificates,
      other than any Class of Notional Certificates, allocable to principal on the
      Mortgage Loans, including Liquidation Proceeds and Insurance Proceeds, stating
      separately the amount attributable to scheduled principal payments and
      unscheduled payments in the nature of principal in each Mortgage
      Pool;

     

    (ii)  the
      aggregate amount of the distribution to be made on such Distribution Date to
      the
      Holders of each Class of LIBOR Certificates and Grantor Trust Certificates
      allocable to interest and the calculation thereof;

     

    (iii)  the
      amount, if any, of any distributions to the Holders of the Class C, Class X
      and
      Class R Certificates on such Distribution Date, stated separately, and the
      aggregate amounts, if any, of distributions to the Holders of the Class C,
      Class
      X and Class R Certificates on all Distribution Dates, stated
      separately;

     

    (iv)  by
      Mortgage Pool and in the aggregate (A) the aggregate amount of any Advances
      required to be made as of the end of the month immediately preceding the month
      in which such Distribution Date occurs by or on behalf of any Servicer with
      respect to such Distribution Date, (B) the aggregate amount of such Advances
      actually made, and (C) the amount, if any, by which (A) above exceeds (B)
      above;

     

    
      
        
        

      

      
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    (v)  by
      Mortgage Pool and in the aggregate, the total number of Mortgage Loans, the
      aggregate Scheduled Principal Balance of all the Mortgage Loans as of the close
      of business on the last day of the related Collection Period, after giving
      effect to payments allocated to principal reported under clause (i)
      above;

     

    (vi)  the
      Class
      Principal Amount (or Class Notional Amount) of each Class of Certificates,
      to
      the extent applicable, as of such Distribution Date after giving effect to
      payments allocated to principal reported under clause (i) above, separately
      identifying any reduction of any of the foregoing Certificate Principal Amounts
      due to any Applied Loss Amounts;

     

    (vii)  by
      Mortgage Pool and in the aggregate, the amount of any Realized Losses incurred
      with respect to the Mortgage Loans (x) in the applicable Prepayment Period
      and
      (y) in the aggregate since the Cut-off Date;

     

    (viii)  by
      Mortgage Pool and in the aggregate, the amount of the Servicing Fees paid during
      the Collection Period to which such distribution relates;

     

    (ix)  by
      Mortgage Pool and in the aggregate, the number and aggregate Scheduled Principal
      Balance of Mortgage Loans, as reported to the Trustee by the Master Servicer,
      (a) remaining outstanding (b) delinquent one month, (c) delinquent two months,
      (d) delinquent three or more months, (e) as to which foreclosure proceedings
      have been commenced as of the close of business on the last Business Day of
      the
      calendar month immediately preceding the month in which such Distribution Date
      occurs, (f) in bankruptcy and (g) that are REO Properties;

     

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

     

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

     

    (xii)  the
      aggregate outstanding Carryforward Interest, Net Prepayment Interest Shortfalls,
      Deferred Amounts, Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls, if
      any, for each applicable Class of Certificates, after giving effect to the
      distribution made on such Distribution Date;

     

    (xiii)  the
      Certificate Interest Rate applicable to such Distribution Date with respect
      to
      each Class of Certificates (with a notation if such Certificate Interest Rate
      reflects the application of the applicable Net Funds Cap);

     

    (xiv)  the
      Interest Remittance Amount, the Principal Remittance Amount, the Principal
      Distribution Amount and the Overcollateralization Release Amount applicable
      to
      such Distribution Date;

     

    
      
        
        

      

      
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    (xv)  if
      applicable, the amount of any shortfall (i.e., the difference between the
      aggregate amounts of principal and interest which Certificateholders would
      have
      received if there were sufficient available amounts in the Certificate Account
      and the amounts actually distributed);

     

    (xvi)  the
      Overcollateralization Amount after giving effect to the distributions made
      on
      such Distribution Date;

     

    (xvii)  the
      amount of any Overcollateralization Deficiency after giving effect to the
      distributions made in such Distribution Date;

     

    (xviii)  the
      level
      of LIBOR and the Certificate Interest Rate of each of the LIBOR Certificates
      and
      Grantor Trust Certificates;

     

    (xix)  the
      amount of any payments made to each Class of Certificates that are treated
      as
      payments received in respect of a REMIC 2 Regular Interest and the amount of
      any
      payments to each Class of Certificates that are not treated as payments received
      in respect of a REMIC 2 Regular Interest; and

     

    (xx)  the
      amount of any payments made by the Cap Provider under the Cap Agreements or
      the
      Deferred Interest Cap Agreements.

     

    In
      the
      case of information furnished pursuant to sub-clauses (i), (ii) and (vi) above,
      the amounts shall (except with respect to the Class X Certificates) be expressed
      as a dollar amount per $1,000 of original principal amount of
      Certificates.

     

    In
      addition to the information listed above for any year in which the Depositor
      is
      subject to Exchange Act reporting with respect to the Certificates, such
      Distribution Date report shall also include such other information as is
      required by Form 10-D, including, but not limited to, the information required
      by Item 1121 (§ 229.1121) of Regulation AB to the extent that the Trustee
      shall have received any such information from the Depositor, the Sponsor, the
      Master Servicer, any Servicer, any Custodian, the Cap Provider or any
      Subservicer or Subcontractor therefor, as applicable, no later than four
      Business Days prior to the Distribution Date. 

     

    The
      Trustee will make such report and additional loan level information (and, at
      its
      option, any additional files containing the same information in an alternative
      format) provided to it by the Master Servicer available each month to
      Certificateholders, any NIMS Insurer, and the Rating Agencies via the Trustee’s
      internet website. The Trustee’s internet website shall initially be located at
      http://trustinvestorreporting.com and assistance in using the website can be
      obtained by emailing the Trustee’s customer service desk at
      ct.information.delivery@usbank.com. Such parties that are unable to use the
      website are entitled to have a paper copy mailed to them via first class mail
      by
      calling the customer service desk and indicating such. The Trustee shall have
      the right to change the way such statements are distributed in order to make
      such distribution more convenient and/or more accessible to the above parties
      and the Trustee shall provide timely and adequate notification to all above
      parties regarding any such changes.

     

    
      
        
        

      

      
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    The
      Trustee shall provide a “zero settlement file” to Bloomberg L.P. within seven
      (7) calendar days after the receipt of the collateral data file from the
      Depositor, but in no event later than the first Distribution Date, which shall
      contain all of the information in the initial Monthly Report (without giving
      effect to any distributions); provided, however, that in no event will such
      zero
      settlement file contain any mortgagor-specific information.

     

    The
      foregoing information and reports shall be prepared and determined by the
      Trustee based solely on Mortgage Loan data provided to the Trustee by the Master
      Servicer (in a format agreed to by the Trustee and the Master Servicer) no
      later
      than 2:00 p.m. Eastern Time four Business Days prior to the Distribution Date
      or
      such other time period as set forth in Section 9.23(c). In preparing or
      furnishing the foregoing information, the Trustee shall be entitled to rely
      conclusively on the accuracy and completeness of the information or data (i)
      regarding the Mortgage Loans and the related REO Property that has been provided
      to the Master Servicer by the Servicer and to the Trustee by the Master Servicer
      and (ii) regarding the Cap Agreement that has been provided to the Trustee
      by
      the Cap Provider, and the Trustee shall not be obligated to verify, recompute,
      reconcile or recalculate any such information or data. The Trustee shall be
      entitled to conclusively rely on the Mortgage Loan data provided by the Master
      Servicer and shall have no liability for any errors or omissions in such
      Mortgage Loan data.

     

    (b) Upon
      the
      reasonable advance written request of any Certificateholder that is a savings
      and loan, bank or insurance company, the Master Servicer shall provide, or
      cause
      to be provided, to the extent such information is available to the Master
      Servicer exercising reasonable efforts to obtain such information (or, to the
      extent that such information or documentation is not required to be provided
      by
      the applicable Servicer under the related Servicing Agreement, shall use
      reasonable efforts to obtain such information and documentation from such
      Servicer, and provide) to such Certificateholder such reports and access to
      information and documentation regarding the Mortgage Loans as such
      Certificateholder may reasonably deem necessary to comply with applicable
      regulations of the Office of Thrift Supervision or its successor or other
      regulatory authorities with respect to the NIM Securities or an investment
      in
      the Certificates; provided, however, that the Master Servicer shall be entitled
      to be reimbursed by such Certificateholder for the actual expenses incurred
      in
      providing such reports and access.

     

    (c) Within
      90
      days, or such shorter period as may be required by statute or regulation, after
      the end of each calendar year, the Trustee shall, upon written request, have
      prepared and shall make available to each Person who at any time during the
      calendar year was a Certificateholder of record, and to any NIMS Insurer, and
      make available to Certificate Owners (identified as such by the Clearing Agency)
      in accordance with applicable regulations, a report summarizing the items
      provided to the Certificateholders pursuant to Section 4.03(a)(i) and (ii)
      on an
      annual basis as may be required to enable such Holders to prepare their federal
      income tax returns; provided, however that this Section 4.03(c) shall not be
      applicable where relevant reports or summaries are required elsewhere in this
      Agreement. Such information shall include the amount of original issue discount
      accrued on each Class of Certificates and information regarding the expenses
      of
      the Trust Fund. The Trustee shall be deemed to have satisfied this requirement
      if it forwards such information in any other format permitted by the Code.
      The
      Master Servicer shall provide the Trustee with such information as is necessary
      for the Trustee to prepare such reports.

     

    
      
        
        

      

      
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    (d) The
      Trustee shall prepare and file with the Internal Revenue Service (“IRS”), on
      behalf of the Trust Fund, an application for an employer identification number
      on IRS Form SS-4 or by any other acceptable method. The Trustee shall also
      file
      a Form 8811 as required. The Trustee, upon receipt from the IRS of the Notice
      of
      Taxpayer Identification Number Assigned, shall upon request promptly forward
      a
      copy of such notice to the Master Servicer and the Depositor. The Trustee shall
      furnish any other information that is required by the Code and regulations
      thereunder to be made available to Certificateholders. The Master Servicer
      shall
      provide the Trustee with such information as is necessary for the Trustee to
      comply with the foregoing.

     

    Section
      4.04 Certificate
      Account and Grantor Trust Certificate Accounts.

     

    (a) The
      Trustee shall establish and maintain in its name, as trustee, trust accounts
      entitled “Certificate Account, U.S. Bank National Association, as Trustee, in
      trust for the benefit of the Holders of Lehman XS Trust Mortgage Pass-Through
      Certificates, Series 2006-16N” (the “Certificate Account”), “Class 1-A2A
      Certificate Account, U.S. Bank National Association, as Trustee, in trust for
      the benefit of the Holders of Lehman XS Trust Mortgage Pass-Through
      Certificates, Series 2006-16N,” “Class 1-A31 Certificate Account, U.S. Bank
      National Association, as Trustee, in trust for the benefit of the Holders of
      Lehman XS Trust Mortgage Pass-Through Certificates, Series 2006-16N” and “Class
      1-A32A1 Certificate Account, U.S. Bank National Association, as Trustee, in
      trust for the benefit of the Holders of Lehman XS Trust Mortgage Pass-Through
      Certificates, Series 2006-16N” (each, a “Grantor Trust Certificate Account”)
      until disbursed pursuant to the terms of this Agreement. The Certificate Account
      and each Grantor Trust Certificate Account shall be an Eligible Account and
      shall be for the benefit of the related Certificateholders. If the existing
      Certificate Account (or Grantor Trust Certificate Account, as applicable) ceases
      to be an Eligible Account, the Trustee shall establish a new Certificate Account
      that is an Eligible Account within 20 Business Days and transfer all funds
      and
      investment property on deposit in such existing Certificate Account into such
      new Certificate Account. The Certificate Account (or Grantor Trust Certificate
      Account, as applicable) shall relate solely to the Certificates issued hereunder
      and funds in the Certificate Account (or Grantor Trust Certificate Account,
      as
      applicable) shall be held separate and apart from and shall not be commingled
      with any other monies including, without limitation, other monies of the Trustee
      held under this Agreement. The Trustee shall give to the Depositor, Master
      Servicer and any NIMS Insurer prior written notice of the name and address
      of
      the depository institution at which the Certificate Account (or Grantor Trust
      Certificate Account, as applicable) is maintained and the account number of
      such
      Certificate Account (or Grantor Trust Certificate Account, as
      applicable).

     

    (b) The
      Trustee shall deposit or cause to be deposited into the Certificate Account
      (or
      Grantor Trust Certificate Account, as applicable), on the day on which, or,
      if
      such day is not a Business Day, the Business Day immediately following the
      day
      on which, any monies are remitted by the Master Servicer to the Trustee, all
      such amounts. The Trustee shall make withdrawals from the Certificate Account
      (or Grantor Trust Certificate Account, as applicable) only for the following
      purposes:

     

    (i) to
      pay
      itself any investment income earned with respect to funds in the Certificate
      Account (or Grantor Trust Certificate Account, as applicable) invested in
      Eligible Investments as set forth in subsection (c) below, and to make payments
      to itself and others prior to making distributions pursuant to Section 5.02
      for
      any expenses or other indemnification owing to itself and others pursuant to
      any
      provision of this Agreement or any Custodial Agreement; provided that such
      payments are for “unanticipated expenses” within the meaning of Treasury
      Regulation Section 1.860G-1(b)(3)(ii);

     

    
      
        
        

      

      
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    (ii) to
      make
      payment to itself pursuant to any provision of this Agreement, or to reimburse
      itself or its agents for any amounts reimbursable to it pursuant to Sections
      6.11, 6.12 or 7.01; provided that such payments are for “unanticipated expenses”
within the meaning of Treasury Regulation Section
      1.860G-1(b)(3)(ii);

     

    (iii) to
      withdraw amounts deposited in the Certificate Account (or Grantor Trust
      Certificate Account, as applicable) in error;

     

    (iv) to
      make
      payments to itself and others pursuant to any provision of this
      Agreement;

     

    (v) to
      make
      distributions to Certificateholders pursuant to Article V; and

     

    (vi) to
      clear
      and terminate the Certificate Account (or Grantor Trust Certificate Account,
      as
      applicable) pursuant to Section 7.02.

     

    Any
      withdrawals described in the preceding sentence shall be allocated and limited
      to collections or other recoveries on the related Mortgage Pool and shall be
      accounted for in such manner.

     

    The
      Trustee may invest, or cause to be invested, funds held in the Certificate
      Account (or Grantor Trust Certificate Account, as applicable), which funds,
      if
      invested, shall be invested in Eligible Investments (which may be obligations
      of
      the Trustee). All such investments must be payable on demand or mature no later
      than the next Distribution Date, and shall not be sold or disposed of prior
      to
      their maturity. All such Eligible Investments will be made in the name of the
      Trustee (in its capacity as such) or its nominee. All income and gain realized
      from any such investment shall be compensation to the Trustee and shall be
      subject to its withdrawal on order from time to time. The amount of any losses
      incurred in respect of any such investments shall be paid by the Trustee for
      deposit in the Certificate Account (or Grantor Trust Certificate Account, as
      applicable) out of its own funds, without any right of reimbursement therefor,
      immediately as realized.

     

    Except
      as
      otherwise expressly provided in this Agreement, if any default occurs in the
      making of a payment due under any Eligible Investment, or if a default occurs
      in
      any other performance required under any Eligible Investment, the Trustee may
      and, subject to Section 6.01 and Section 6.02(iv), upon the request of the
      NIMS
      Insurer, shall take such action as may be appropriate to enforce such payment
      or
      performance, including the institution and prosecution of appropriate
      proceedings.

     

    
      
        
        

      

      
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    ARTICLE
      V.

     

    DISTRIBUTIONS
      TO HOLDERS OF CERTIFICATES

     

    Section
      5.01 Distributions
      Generally.

     

    (a) Subject
      to Section 7.01 respecting the final distribution on the Certificates, on each
      Distribution Date the Trustee or the Paying Agent shall make distributions in
      accordance with this Article V. Such distributions shall be made by wire
      transfer if the Certificateholder has provided the Trustee with wire
      instructions or by check mailed to the address of such Certificateholder as
      it
      appears in the books of the Trustee if the Certificateholder has not provided
      the Trustee with wire instructions in immediately available funds to an account
      specified in the request and at the expense of such Certificateholder; provided,
      however, that the final distribution in respect of any Certificate shall be
      made
      only upon presentation and surrender of such Certificate at the Corporate Trust
      Office; provided, further, that the foregoing provisions shall not apply to
      any
      Class of Certificates as long as such Certificate remains a Book-Entry
      Certificate in which case all payments made shall be made through the Clearing
      Agency and its Clearing Agency Participants. Notwithstanding such final payment
      of principal of any of the Certificates, each Residual Certificate will remain
      outstanding until the termination of each REMIC and the payment in full of
      all
      other amounts due with respect to the Residual Certificates and at such time
      such final payment in retirement of any Residual Certificate will be made only
      upon presentation and surrender of such Certificate at the Corporate Trust
      Office. If any payment required to be made on the Certificates is to be made
      on
      a day that is not a Business Day, then such payment will be made on the next
      succeeding Business Day.

     

    (b) All
      distributions or allocations made with respect to Certificateholders within
      each
      Class on each Distribution Date shall be allocated among the outstanding
      Certificates of such Class equally in proportion to their respective initial
      Class Principal Amounts or initial Class Notional Amounts (or Percentage
      Interests).

     

    (c) The
      Trustee shall make payments to Certificateholders and any other person pursuant
      to this Article V based solely on the information set forth in the monthly
      report furnished by the Trustee in accordance with Section 4.03(a), and shall
      be
      entitled to conclusively rely on such information and reports, and on the
      calculations contained therein, when making distributions to Certificateholders.
      The Trustee shall have no liability for any errors in such reports or
      information, and shall not be required to verify, recompute, reconcile or
      recalculate any such information or data.

     

    
      
        
        

      

      
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      Section
        5.02 Distributions
        from the Certificate Account and Grantor Trust Certificate
        Accounts.

       

      (a) On
        each
        Distribution Date, the Trustee (or the Paying Agent on behalf of the Trustee)
        shall withdraw from the Certificate Account the Total Distribution Amount
        (excluding all Prepayment Premiums) and shall allocate such amount to the
        interests issued in respect of each REMIC and shall distribute such amount
        as
        specified in this Section, concurrently as follows:

       

    

    (i) On
      each
      Distribution Date, the Trustee shall distribute the Interest Remittance Amount
      for Pool 1 for such date as
      follows:

     

    (A) concurrently,
      to each Class of Class 1-A1A, Class 1-A1B, Class 1-A2AU, Class 1-A2B, Class
      1-A31U, Class 1-A32A1U, Class 1-A32A2, Class 1-A32B, Class 1-A4A, Class 1-A4B
      and Class 1-A4C Certificates, Current Interest and any Carryforward Interest
      for
      such Classes for such Distribution Date; provided, however, that if funds
      available are insufficient to pay such amounts, any resulting shortfalls will
      be
      allocated pro
      rata
      on the
      basis of Current Interest and Carryforward Interest due such Classes on such
      Distribution Date;

     

    (B) for
      application pursuant to Section 5.02(b), any such Interest Remittance Amount
      remaining undistributed for such Distribution Date.

     

    (ii) On
      each
      Distribution Date, the Trustee shall distribute the Interest Remittance Amount
      for Pool 2 for such date as follows:

     

    (A) to
      the
      Class 2-A Certificates, Current Interest and any Carryforward Interest for
      such
      Class for such Distribution Date;

     

    (B) for
      application pursuant to Section 5.02(b), any such Interest Remittance Amount
      remaining undistributed for such Distribution Date.

     

    (b) On
      each
      Distribution Date, the Trustee will distribute the aggregate of any remaining
      Interest Remittance Amounts from Sections 5.02(a)(i)(B) and 5.02(a)(ii)(B),
      as
      applicable, as follows:

     

    (i) concurrently,
      to each Class of Senior Certificates, Current Interest and any Carryforward
      Interest for such Classes for such Distribution Date (any shortfall in Current
      Interest and Carryforward Interest to be allocated among such Classes in
      proportion to the amount of Current Interest and Carryforward Interest that
      would otherwise be distributable thereon) to the extent not paid on such
      Distribution Date pursuant to Sections 5.02(a)(i)(A) and
      5.02(a)(ii)(A);

     

    (ii) to
      each
      Class of Subordinate Certificates, in accordance with the Subordinate Priority,
      Current Interest and any Carryforward Interest for such Classes for such
      Distribution Date;

     

    (iii) to
      the
      Trustee, previously unreimbursed extraordinary costs, liabilities and expenses
      related to the Certificates; and

     

    (iv) for
      application as part of the aggregate Monthly Excess Cashflow for such
      Distribution Date, as provided in Section 5.02(d), any such Interest Remittance
      Amount remaining after application pursuant to clauses (i) through (iii)
      above.

     

    
      
        
        

      

      
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    (c) On
      each
      Distribution Date, the Trustee shall distribute the Principal Distribution
      Amount with respect to each Mortgage Pool for such date, concurrently, as
      follows:

     

    (i) On
      each
      Distribution Date (a) prior to the Stepdown Date or (b) with respect to which
      a
      Trigger Event is in effect, until the aggregate Certificate Principal Amount
      of
      the LIBOR Certificates equals the Target Amount for such Distribution Date,
      the
      Trustee shall distribute the Principal Distribution Amount concurrently, as
      follows:

     

    (A) For
      Pool
      1: The Principal Distribution Amount for Pool 1 will be distributed on each
      Distribution Date in the following order of priority:

     

    (1) concurrently
      as follows:

     

    (A)
      sequentially as follows: (I) pro rata, to the Class 1-A1A and Class 1-A1B
      Certificates, until the Class Principal Amount of each such Class has been
      reduced to zero; (II) pro rata, to the Class 1-A2AU and Class 1-A2B
      Certificates, until the Class Principal Amount of each such Class has been
      reduced to zero; (III) concurrently, to (a) pro rata to (x) sequentially to
      the
      Class 1-A32A1U Certificates and then to the Class 1-A32A2 Certificates until
      the
      Class Principal Amount of each such Class has been reduced to zero and (y)
      the
      Class 1-A32B Certificates and (b) the Class 1-A31U Certificates.

     

    (B)
      pro
      rata, to the Class 1-A4A, Class 1-A4B and Class 1-A4C Certificates, until the
      Class Principal Amount of each such Class has been reduced to zero;

     

    (2) to
      the
      Class 2-A Certificates, after giving effect to distribution in Section
      5.02(c)(i)(B)(i), until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (3) to
      the
      Class M1, Class M2, Class M3, Class M4, Class M5, Class M6, Class M7, Class
      M8
      and Class M9 Certificates, sequentially, in that order, until the Class
      Principal Amount of each such Class has been reduced to zero; and

     

    (4) for
      application as part of the Monthly Excess Cashflow for such Distribution Date,
      pursuant to Section 5.02(d), any such Principal Distribution Amount remaining
      after application pursuant to Sections 5.02(c)(i)(A)(1) through (3)
      above.

     

    (B) For
      Pool
      2: The Principal Distribution Amount for Pool 2 will be distributed in the
      following order of priority:

     

    (1) to
      the
      Class 2-A Certificates, until the Class Principal Amount of such Class has
      been
      reduced to zero;

     

    (2) to
      the
      Class 1-A1A, Class 1-A1B, Class 1-A2AU, Class 1-A2B, Class 1-A31U, Class
      1-A32A1U, Class 1-A32A2, Class 1-A32B, Class 1-A4A, Class 1-A4B and Class 1-A4C
      Certificates, in accordance with the priorities set forth in Section
      5.02(c)(i)(A)(1) above and after giving effect to the distributions in such
      Section 5.02(c)(i)(A)(1), until the Class Principal Amount of each such Class
      has been reduced to zero;

     

    
      
        
        

      

      
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    (3) to
      the
      Class M1, Class M2, Class M3, Class M4, Class M5, Class M6, Class M7, Class
      M8
      and Class M9 Certificates, sequentially, in that order, until the Class
      Principal Amount of each such Class has been reduced to zero; and

     

    (4) for
      application as part of the Monthly Excess Cashflow for such Distribution Date
      pursuant to Section 5.02(d), any such Principal Distribution Amount remaining
      after application pursuant to clauses (1) through (3) of this Section
      5.02(c)(i)(B).

     

    (ii) On
      each
      Distribution Date (a) on or after the Stepdown Date and (b) with respect to
      which a Trigger Event is not in effect, the Principal Distribution Amount for
      each of Pool 1 and Pool 2 for such date will be distributed in the following
      order of priority:

     

    (A) (i)
      so
      long as any of the Subordinate Certificates are outstanding, to the Class 1-A1A,
      Class 1-A1B, Class 1-A2AU, Class 1-A2B, Class 1-A31U, Class 1-A32A1U, Class
      1-A32A2, Class 1-A32B, Class 1-A4A, Class 1-A4B and Class 1-A4C Certificates
      (from amounts in Pool 1, except as provided below) and to the Class 2-A
      Certificates (from amounts in Pool 2, except as provided below), in each case
      in
      accordance with Section 5.02(c)(i), concurrently by Principal Allocation
      Percentage, in an amount equal to the lesser of (x) the Principal Distribution
      Amount for the related Mortgage Pool and (y) the Senior Principal Distribution
      Amount for the related Mortgage Pool (allocated by Principal Allocation
      Percentage) for such Distribution Date until the Class Principal Amount of
      each
      such Class has been reduced to zero; or (ii) otherwise to the Class 1-A1A,
      Class
      1-A1B, Class 1-A2AU, Class 1-A2B, Class 1-A31U, Class 1-A32A1U, Class 1-A32A2,
      Class 1-A32B, Class 1-A4A, Class 1-A4B, Class 1-A4C and Class 2-A Certificates
      (in each case in accordance with Section 5.02(c)(i) concurrently by Principal
      Allocation Percentage), the Principal Distribution Amount for the related
      Mortgage Pool for such Distribution Date;

     

    (B) to
      the
      Class M1 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the Principal Distribution Amount for such Distribution Date over (b) the amount
      distributed to the Senior Certificates on such Distribution Date pursuant to
      clause (A) above and (y) the M1 Principal Distribution Amount for such
      Distribution Date, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (C) to
      the
      Class M2 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the Principal Distribution Amount for such Distribution Date over (b) the amount
      distributed to the Senior Certificates and the Class M1 Certificates on such
      Distribution Date pursuant to clauses (A) and (B) above and (y) the M2 Principal
      Distribution Amount for such Distribution Date, until the Class Principal Amount
      of such Class has been reduced to zero;

     

    
      
        
        

      

      
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    (D) to
      the
      Class M3 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the Principal Distribution Amount for such Distribution Date over (b) the amount
      distributed to the Senior Certificates and the Class M1 and Class M2
      Certificates on such Distribution Date pursuant to clauses (A) through (C)
      above
      and (y) the M3 Principal Distribution Amount for such Distribution Date, until
      the Class Principal Amount of such Class has been reduced to zero;

     

    (E) to
      the
      Class M4 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the Principal Distribution Amount for such Distribution Date over (b) the amount
      distributed to the Senior Certificates and the Class M1, Class M2 and Class
      M3
      Certificates on such Distribution Date pursuant to clauses (A) through (D)
      above
      and (y) the M4 Principal Distribution Amount for such Distribution Date, until
      the Class Principal Amount of such Class has been reduced to zero;

     

    (F) to
      the
      Class M5 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the Principal Distribution Amount for such Distribution Date over (b) the amount
      distributed to the Senior Certificates and the Class M1, Class M2, Class M3
      and
      Class M4 Certificates on such Distribution Date pursuant to clauses (A) through
      (E) above and (y) the M5 Principal Distribution Amount for such Distribution
      Date, until the Class Principal Amount of such Class has been reduced to
      zero;

     

    (G) to
      the
      Class M6 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the Principal Distribution Amount for such Distribution Date over (b) the amount
      distributed to the Senior Certificates and the Class M1, Class M2, Class M3,
      Class M4 and Class M5 Certificates on such Distribution Date pursuant to clauses
      (A) through (F) above and (y) the M6 Principal Distribution Amount for such
      Distribution Date, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (H) to
      the
      Class M7 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the Principal Distribution Amount for such Distribution Date over (b) the amount
      distributed to the Senior Certificates and the Class M1, Class M2, Class M3,
      Class M4, Class M5 and Class M6 Certificates on such Distribution Date pursuant
      to clauses (A) through (G) above and (y) the M7 Principal Distribution Amount
      for such Distribution Date, until the Class Principal Amount of such Class
      has
      been reduced to zero;

     

    (I) to
      the
      Class M8 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the Principal Distribution Amount for such Distribution Date over (b) the amount
      distributed to the Senior Certificates and the Class M1, Class M2, Class M3,
      Class M4, Class M5, Class M6 and Class M7 Certificates on such Distribution
      Date
      pursuant to clauses (A) through (H) above and (y) the M8 Principal Distribution
      Amount for such Distribution Date, until the Class Principal Amount of such
      Class has been reduced to zero;

     

    (J) to
      the
      Class M9 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the Principal Distribution Amount for such Distribution Date over (b) the amount
      distributed to the Senior Certificates and the Class M1, Class M2, Class M3,
      Class M4, Class M5, Class M6, Class M7 and Class M8 Certificates on such
      Distribution Date pursuant to clauses (A) through (I) above and (y) the M9
      Principal Distribution Amount for such Distribution Date, until the Class
      Principal Amount of such Class has been reduced to zero; and

     

    
      
        
        

      

      
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    (K) for
      application as part of the Monthly Excess Cashflow for such Distribution Date,
      pursuant to Section 5.02(d), any Principal Distribution Amount remaining after
      application pursuant to clauses (A) through (J) above.

     

    (d) Any
      Monthly Excess Cashflow will, on each Distribution Date, be distributed in
      the
      following order of priority:

     

    (i) for
      each
      Distribution Date occurring (a) before the Stepdown Date or (b) on or after
      the
      Stepdown Date but for which a Trigger Event is in effect, then until the
      aggregate Certificate Principal Amount of the LIBOR Certificates equals the
      Target Amount for such Distribution Date, in the following order of
      priority:

     

    (A) after
      giving effect to principal distributions on such Distribution Date, pro
      rata
      based on
      the Senior Proportionate Percentage, to the Senior Certificates, in accordance
      with Section 5.02(c)(i), in reduction of their respective Class Principal
      Amounts, until the Class Principal Amount of each such Class has been reduced
      to
      zero; and

     

    (B) to
      the
      Subordinate Certificates, in accordance with the Subordinate Priority, until
      the
      Class Principal Amount of each such Class has been reduced to zero;

     

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

     

    (A) after
      giving effect to principal distributions on such Distribution Date, to the
      Senior Certificates, pro
      rata,
      based
      on the Senior Proportionate Percentage, in accordance with Section 5.02(c)(i),
      in reduction of their respective Class Principal Amounts, until the aggregate
      Class Principal Amount of such Senior Certificates, after giving effect to
      distributions on such Distribution Date, equals the Senior Target
      Amount;

     

    (B) to
      the
      Class M1 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate Class Principal Amount of the Senior Certificates and the Class M1
      Certificates, after giving effect to distributions on such Distribution Date,
      equals the M1 Target Amount;

     

    (C) to
      the
      Class M2 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate Class Principal Amount of the Senior Certificates and the Class M1
      and
      Class M2 Certificates, after giving effect to distributions on such Distribution
      Date, equals the M2 Target Amount;

     

    (D) to
      the
      Class M3 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate Class Principal Amount of the Senior Certificates and the Class M1,
      Class M2 and Class M3 Certificates, after giving effect to distributions on
      such
      Distribution Date, equals the M3 Target Amount;

     

    
      
        
        

      

      
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    (E) to
      the
      Class M4 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate Class Principal Amount of the Senior Certificates and the Class M1,
      Class M2, Class M3 and Class M4 Certificates, after giving effect to
      distributions on such Distribution Date, equals the M4 Target
      Amount;

     

    (F) to
      the
      Class M5 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate Class Principal Amount of the Senior Certificates and the Class M1,
      Class M2, Class M3, Class M4 and Class M5 Certificates, after giving effect
      to
      distributions on such Distribution Date, equals the M5 Target
      Amount;

     

    (G) to
      the
      Class M6 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate Class Principal Amount of the Senior Certificates and the Class M1,
      Class M2, Class M3, Class M4, Class M5 and Class M6 Certificates, after giving
      effect to distributions on such Distribution Date, equals the M6 Target
      Amount;

     

    (H) to
      the
      Class M7 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate Class Principal Amount of the Senior Certificates and the Class M1,
      Class M2, Class M3, Class M4, Class M5, Class M6 and Class M7 Certificates,
      after giving effect to distributions on such Distribution Date, equals the
      M7
      Target Amount;

     

    (I) to
      the
      Class M8 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate Class Principal Amount of the Senior Certificates and the Class M1,
      Class M2, Class M3, Class M4, Class M5, Class M6, Class M7 and Class M8
      Certificates, after giving effect to distributions on such Distribution Date,
      equals the M8 Target Amount; and

     

    (J) to
      the
      Class M9 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate Class Principal Amount of the Senior Certificates and the Class M1,
      Class M2, Class M3, Class M4, Class M5, Class M6, Class M7, Class M8 and Class
      M9 Certificates, after giving effect to distributions on such Distribution
      Date,
      equals the M9 Target Amount.

     

    (iii) (a)
      first, in proportion to their respective Deferred Amounts, to the Senior
      Certificates and (b) second, to the Subordinate Certificates, in accordance
      with
      the Subordinate Priority, any Deferred Amount for each such Class and such
      Distribution Date;

     

    (iv) to
      the
      Basis Risk Reserve Fund, the amount of any Basis Risk Payment and then from
      the
      Basis Risk Reserve Fund, in the following order of priority:

     

    (A) pro
      rata,
      to the
      Senior Certificates, any applicable Basis Risk Shortfalls and Unpaid Basis
      Risk
      Shortfalls for each such Class and such Distribution Date (in the case of the
      Class 1-A2A and Class 1-A32A1 Certificates, as reduced by amounts paid to such
      Class on such Distribution Date out of amounts received on the related Cap
      Agreement), in proportion to such shortfalls;

     

    
      
        
        

      

      
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    (B) to
      the
      Subordinate Certificates, in accordance with the Subordinate Priority, any
      applicable Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls for each
      such
      Class and such Distribution Date; and

     

    (C) to
      the
      Class X Certificates, any amounts remaining in the Basis Risk Reserve Fund
      in
      excess of amounts required to be on deposit therein after satisfying Sections
      5.02(d)(iv)(A) and (B) above for such Distribution Date;

     

    (v) to
      the
      Class X Certificates, the Class X Distributable Amount for such Distribution
      Date; and

     

    (vi) to
      the
      Residual Certificate, any remaining amount.

     

    (e) (1) On
      each
      Distribution Date on and prior to the Class X Account Termination Date, the
      Trustee shall withdraw the Class C Distributable Amount for such Distribution
      Date from the Class X Account, pursuant to Section 5.12 herein, and shall
      distribute such amount to the Class C Certificates.

     

    (2) On
      each
      Distribution Date on or prior to the Class X Termination Date, the Trustee
      shall
      withdraw amounts on deposit in the Class X Account and distribute such amounts
      to the Class X Certificates, an amount equal to the excess, if any, of the
      sum
      of Realized Losses attributable to the Class C Mortgage Loans over the sum
      of
      all amounts distributed pursuant to this Section 5.02(e)(2) on prior
      Distribution Dates to the Class X Certificates.

     

    (f) On
      each
      Distribution Date, the Trustee shall distribute to the Class P Certificates
      any
      Prepayment Premiums paid by borrowers upon voluntary full or partial prepayment
      of the Mortgage Loans.

     

    (g) On
      the
      Closing Date, the Trustee shall establish and maintain in its name, in trust
      for
      the benefit of the holders of the Class 1-A2A and Class 1-A32A1 Certificates,
      a
      Cap Agreement Account. The Trustee shall deposit all amounts received on each
      Cap Agreement into the Cap Agreement Account. The Cap Agreement Account shall
      be
      an Eligible Account, and funds on deposit therein shall be held separate and
      apart from, and shall not be commingled with, any other moneys, including,
      without limitation, other moneys of the Trustee held pursuant to this Agreement.
      On each Distribution Date, each Class of LIBOR Certificates shall only be
      entitled to receive amounts from the Cap Agreement related to such Class.
      Subject to the preceding sentence, on each Distribution Date, the Trustee shall
      distribute the amounts in the Cap Agreement Account to the Class 1-A2A and
      Class
      1-A32A1 Certificates, as applicable, up to the amount of any applicable Basis
      Risk Shortfall and Unpaid Basis Risk Shortfall for each such Class on such
      Distribution Date prior to distributions pursuant to Section 5.02(d)(iv) hereof.
      On each Distribution Date, all remaining amounts in the Cap Agreement Account
      derived from the Cap Agreement related to the Class 1-A2A Certificates shall
      be
      distributed to the holders of the Class 1-A2A Certificates and all remaining
      amounts in the Cap Agreement Account derived from the Cap Agreement related
      to
      the Class 1-A32A1 Certificates shall be distributed to the holders of the Class
      1-A32A1 Certificates, but such distributions shall not reduce the Class
      Principal Amounts of such Certificates and such excess distributions shall
      be
      disregarded for purposes of computing any future distributions to such
      Certificates.

     

    
      
        
        

      

      
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    (h) The
      Depositor shall cause the Trustee to enter into the Deferred Interest Cap
      Agreements. The Trustee’s rights to receive certain proceeds of each Deferred
      Interest Cap Agreement as provided in each Deferred Interest Cap Agreement
      shall
      be rights of the Trustee under this Agreement, shall be an asset of the Class
      1-A2A Grantor Trust, Class 1-A31 Grantor Trust or Class 1-A32A1 Grantor Trust,
      as applicable, and shall not be an asset of the Trust Fund nor of any REMIC.
      The
      Trustee shall deposit any amounts received from time to time from the Cap
      Provider with respect to each Deferred Interest Cap Agreement into the Deferred
      Interest Cap Account. 

     

    Funds
      in
      the Cap Agreement Account and Deferred Interest Cap Accounts shall remain
      uninvested. For federal income tax purposes, the Class 1-A2A Certificates and
      the Class 1-A32A1 Certificates shall each evidence ownership of the Cap
      Agreement related to such Class and the portion of the Cap Agreement Account
      related to such Cap Agreement. For federal income tax purposes, the Class 1-A2A
      Certificates, Class 1-A31 Certificates and the Class 1-A32A1 Certificates shall
      each evidence a beneficial interest in the Deferred Interest Cap Agreement
      related to such Class and the portion of the Deferred Interest Cap Account
      related to such Deferred Interest Cap Agreement.

     

    (i) On
      each
      Distribution Date, the Trustee, as holder of the Class 1-A2AU, Class 1-A31U
      and
      Class 1-A32A1U Certificates, shall deposit all distributions received on those
      Certificates for that Distribution Date into the related Grantor Trust
      Certificate Account.

     

    On
      each
      Distribution Date, the Trustee will withdraw the Grantor Trust Available Funds
      for each Grantor Trust Fund and such amounts will be distributed in the
      following priority:

     

    (i) to
      the
      Cap Provider, interest, if any, on the Cap Deferred Interest Amount due to
      the
      Cap Provider from
      the
      applicable Grantor Trust Available Funds;

     

    (ii) to
      the
      related Grantor Trust Certificates, the Current Interest and any Carryforward
      Interest for such Distribution Date;

     

    (iii) to
      the
      Cap Provider, the Cap Deferred Interest Amount for such Distribution Date from
      the applicable Grantor Trust Available Funds;

     

    (iv) to
      the
      related Grantor Trust Certificates, any principal distributions received from
      the Class 1-A2AU Certificates (in the case of the Deferred Interest Cap
      Agreement related to the Class 1-A2A Certificates), Class 1-A31U Certificates
      (in the case of the Deferred Interest Cap Agreement related to the Class 1-A31
      Certificates) or Class 1-A32A1U Certificates (in the case of the Deferred
      Interest Cap Agreement related to the Class 1-A32A1 Certificates), in reduction
      of the Class Principal Amount of such Grantor Trust Certificates, until the
      Class Principal Amount thereof has been reduced to zero; and

     

    (v) to
      the
      Cap Provider, any termination payments (as set forth in the related Deferred
      Interest Cap Agreement) from the applicable Grantor Trust Available Funds;
      and

     

    (j) Any
      interest shortfall resulting from Deferred Interest on the Mortgage Loans in
      a
      Mortgage Pool will be allocated to the related LIBOR
      Certificates, pro rata, according to the Class Principal Amount of each such
      Class of related Senior Certificates and according to the related Apportioned
      Principal Balances of the Subordinate Certificates in reduction of the amount
      of
      interest otherwise distributable to such Classes of Certificates; provided,
      however, that to the extent the amount of Net Negative Amortization otherwise
      allocable to such Certificates exceeds the amount of Current Interest accrued
      on
      such Certificates (or on the Apportioned Principal Balance thereof in the case
      of the Subordinate Certificates), then such excess Net Negative Amortization
      shall be allocated to the Class X Certificates to the extent payments would
      otherwise be made to the Class X Certificates, and then, if necessary, among
      the
      related LIBOR Certificates in proportion to, and up to, the amount of any
      remaining interest otherwise distributable on the related Senior Certificates
      and in the case of the Subordinate Certificates, on their respective
Apportioned
      Principal Balances.

     

    
      
        
        

      

      
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    The
      amount of the reduction of Current Interest distributable to each Class of
      Certificates attributable to Net Negative Amortization will be added to the
      Class Principal Amount of that Class (other than the Grantor Trust Certificates,
      unless the related Deferred Interest Cap Agreement has been terminated). As
      a
      result of Net Negative Amortization, a portion of the interest accrued on the
      Certificates will be distributed to such Certificates later than otherwise
      anticipated. In the case of the Grantor Trust Certificates, the related Deferred
      Interest Cap Agreement will provide for payment to the related Grantor Trust
      Fund on each Distribution Date an amount equal to the Deferred Interest
      allocated to the Class 1-A2AU Certificates (in the case of the Deferred Interest
      Cap Agreement related to the Class 1-A2A Certificates), Class 1-A31U
      Certificates (in the case of the Deferred Interest Cap Agreement related to
      the
      Class 1-A31 Certificates) or Class 1-A32A1U Certificates (in the case of the
      Deferred Interest Cap Agreement related to the Class 1-A32A1
      Certificates).

     

    Section
      5.03 Allocation
      of Losses.

     

    (a) On
      each
      Distribution Date, the aggregate Class Principal Amount of the Certificates
      shall be reduced by the amount of any Applied Loss Amount for such date, in
      the
      following order of priority:

     

    (i) to
      the
      Class M9 Certificates, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (ii) to
      the
      Class M8 Certificates, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (iii) to
      the
      Class M7 Certificates, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (iv) to
      the
      Class M6 Certificates, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (v) to
      the
      Class M5 Certificates, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (vi) to
      the
      Class M4 Certificates, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    
      
        
        

      

      
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    (vii) to
      the
      Class M3 Certificates, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (viii) to
      the
      Class M2 Certificates, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (ix) to
      the
      Class M1 Certificates, until the Class Principal Amount of such Class has been
      reduced to zero; and

     

    (x) concurrently,
      on the basis of Realized Losses on the related Mortgage Pool, (A) concurrently
      (1) first, to the Class 1-A4C Certificates, second, to the Class 1-A4B
      Certificates and third, to the Class 1-A4A Certificates, sequentially, in that
      order, until their Class Principal Amounts have been reduced to zero and (2)
      concurrently (a) concurrently (i) sequentially, first, to the Class 1-A32B
      Certificates and second, pro
      rata,
      to the
      Class 1-A32A1U and Class 1-A32A2 Certificates, in each case until their Class
      Principal Amounts have been reduced to zero and (ii) to the Class 1-A31U
      Certificates, until their Class Principal Amount has been reduced to zero,
      (b)
      first, to the Class 1-A2B Certificates and second, to the Class 1-A2AU
      Certificates, sequentially, in that order, until their Class Principal Amounts
      have been reduced to zero, and (c) first, to the Class 1-A1B Certificates and
      second, to the Class 1-A1A Certificates, sequentially, in that order, until
      their Class Principal Amounts have been reduced to zero and (B) to the Class
      2-A
      Certificates, until their Class Principal Amount has been reduced to
      zero.

     

    Section
      5.04 Advances
      by Master Servicer, Servicer and Trustee.

     

    (a) Subject
      to Section 9.07, Advances shall be made in respect of each Determination Date
      as
      provided herein. If, on any Determination Date, any Servicer determines that
      any
      Scheduled Payments due during the related Collection Period (other than Balloon
      Payments) and relating to any of the Mortgage Loans that it services have not
      been received, such Servicer shall advance such amount to the extent provided
      in
      the related Servicing Agreement. If the applicable Servicer fails to remit
      Advances required to be made under the related Servicing Agreement, the Master
      Servicer shall itself make, or shall cause the successor Servicer to make,
      such
      Advance on the Deposit Date immediately following such Determination Date;
      provided, however, that required Advances remitted by the applicable Servicer
      or
      the Master Servicer may be reduced by an amount, if any, to be set forth in
      an
      Officer’s Certificate to be delivered to the Trustee on such Determination Date,
      which if advanced the Master Servicer or the applicable Servicer has determined
      would not be recoverable from amounts received with respect to such Mortgage
      Loan, including late payments, Liquidation Proceeds, Insurance Proceeds or
      otherwise. If the Master Servicer determines that an Advance is required, it
      shall on the Deposit Date immediately following such Determination Date either
      (i) remit to the Trustee from its own funds (or funds advanced by the applicable
      Servicer) for deposit in the Certificate Account immediately available funds
      in
      an amount equal to such Advance, (ii) cause to be made an appropriate entry
      in
      the records of the Collection Account that funds in such account being held
      for
      future distribution or withdrawal have been, as permitted by this Section 5.04,
      used by the Master Servicer to make such Advance, and remit such immediately
      available funds to the Trustee for deposit in the Certificate Account or (iii)
      make Advances in the form of any combination of clauses (i) and (ii) aggregating
      the amount of such Advance. Any funds being held in the Collection Account
      for
      future distribution to Certificateholders and so used shall be replaced by
      the
      Master Servicer from its own funds by remittance to the Trustee for deposit
      in
      the Certificate Account on or before any future Deposit Date to the extent
      that
      funds in the Certificate Account on such Deposit Date shall be less than
      payments to Certificateholders required to be made on the related Distribution
      Date. The Master Servicer and the Servicers shall be entitled to be reimbursed
      from the Collection Account for all Advances made by it as provided in Section
      4.02. Notwithstanding anything to the contrary herein, in the event the Master
      Servicer determines in its reasonable judgment that an Advance is
      non-recoverable, the Master Servicer shall be under no obligation to make such
      Advance. The Trustee shall be entitled to conclusively rely upon any
      determination by the Master Servicer that an Advance, if made, would constitute
      a non-recoverable Advance.

     

    
      
        
        

      

      
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    (b) In
      the
      event that the Master Servicer or any Servicer fails for any reason to make
      an
      Advance required to be made pursuant to this Section 5.04 on or before the
      Deposit Date, the Trustee, solely in its capacity as successor master servicer
      pursuant to Section 6.14, shall, on or before the related Distribution Date,
      deposit in the Certificate Account an amount equal to the excess of (a) Advances
      required to be made by the Master Servicer or any Servicer that would have
      been
      deposited in such Certificate Account over (b) the amount of any Advance made
      by
      the Master Servicer or such Servicer with respect to such Distribution Date;
      provided, however, that the Trustee shall be required to make such Advance
      only
      if it is not prohibited by law from doing so and it has determined that such
      Advance would be recoverable from amounts to be received with respect to such
      Mortgage Loan, including late payments, Liquidation Proceeds, Insurance
      Proceeds, or otherwise. The Trustee shall be entitled to be reimbursed from
      the
      Certificate Account for Advances made by it pursuant to this Section 5.04 as
      if
      it were the Master Servicer.

     

    Section
      5.05 Compensating
      Interest Payments.

     

    The
      Master Servicer shall not be responsible for making any Compensating Interest
      Payments not made by the Servicers. Any Compensating Interest Payments made
      by
      the Servicers shall be a component of the Interest Remittance
      Amount.

     

    Section
      5.06 Basis
      Risk Reserve Fund.

     

    (a) On
      the
      Closing Date, the Trustee shall establish and maintain in its name, in trust
      for
      the benefit of the holders of the Certificates, a Basis Risk Reserve Fund.
      The
      Basis Risk Reserve Fund shall be an Eligible Account, and funds on deposit
      therein shall be held separate and apart from, and shall not be commingled
      with,
      any other moneys, including, without limitation, other moneys of the Trustee
      held pursuant to this Agreement.

     

    (b) [Reserved]

     

    (c) Funds
      in
      the Basis Risk Reserve Fund shall be invested in Eligible Investments. The
      Class
      X Certificates shall evidence ownership of the Basis Risk Reserve Fund for
      federal income tax purposes and LBH, on behalf of the Holders thereof, shall
      direct the Trustee, in writing, as to investment of amounts on deposit therein.
      LBH shall be liable for any losses incurred on such investments. In the absence
      of written instructions from LBH as to investment funds on deposit in the Basis
      Risk Reserve Fund, such funds shall remain uninvested.

     

    
      
        
        

      

      
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    Section
      5.07 [Reserved].

     

    Section
      5.08 [Reserved].

     

    Section
      5.09 [Reserved].

     

    Section
      5.10 Capitalized
      Interest Account.

     

    (a) No
      later
      than the Closing Date, the Trustee shall establish and maintain a segregated
      trust account that is an Eligible Account, which shall be titled “Capitalized
      Interest Account, U.S. Bank National Association, as trustee for the registered
      holders of Lehman XS Trust Mortgage Pass-Through Certificates Series 2006-16N”
(the “Capitalized Interest Account”). The Trustee shall, promptly upon receipt,
      deposit in the Capitalized Interest Account and retain therein the Capitalized
      Interest Amount remitted on the Closing Date to the Trustee by the Depositor.
      Funds deposited in the Capitalized Interest Account shall be held in trust
      by
      the Trustee on behalf of the Certificateholders for the uses and purposes set
      forth herein. With respect to each Distribution Date up to and including the
      Distribution Date in December 2006, the Trustee will withdraw funds from the
      Capitalized Interest Account and such funds shall be used to pay (i) first,
      to
      the Senior Certificates, the amount of any Basis Risk Shortfalls and Unpaid
      Basis Risk Shortfalls for each such Class and such Distribution Date, in
      proportion to the amount of such shortfalls and (ii) second, to the Subordinate
      Certificates, in accordance with the Subordinate Priority, any applicable Basis
      Risk Shortfalls and Unpaid Basis Risk Shortfalls for each such Class and such
      Distribution Date, in each case, after giving effect (x) to distributions under
      Section 5.02(d) and Section 5.02(e) and (y) in the case of the Class 1-A2A
      and
      Class 1-A32A1 Certificates, amounts paid to such Class on such Distribution
      Date
      out of amounts received on the related Cap Agreement.

     

    (b) The
      Trustee will invest funds deposited in the Capitalized Interest Account in
      Eligible Investments as directed in writing by the Depositor (provided that
      if
      the Trustee does not receive written direction from the Depositor, the amounts
      in the Capitalized Interest Account shall not be invested) with a maturity
      date
      no later than the Business Day preceding each Distribution Date. For federal
      income tax purposes, the Depositor shall be the owner of the Capitalized
      Interest Account and shall report all items of income, deduction, gain or loss
      arising therefrom. At no time will the Capitalized Interest Account be an asset
      of any of the REMICs provided for herein. All income and gain realized from
      investment of funds deposited in the Capitalized Interest Account shall be
      for
      the sole and exclusive benefit of the Depositor and shall be remitted by the
      Trustee to the Depositor on each Distribution Date. The Depositor shall deposit
      in the Capitalized Interest Account the amount of any net loss incurred in
      respect of any such Eligible Investment immediately upon realization of such
      loss.

     

    (c) On
      the
      Distribution Date in December 2006, any amount remaining on deposit in the
      Capitalized Interest Account after withdrawals pursuant to paragraph (a) above
      shall be withdrawn by the Trustee and paid to the Depositor or its
      designee.

     

    
      
        
        

      

      
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    Section
      5.11 [Reserved].

     

    Section
      5.12 Class
      X Account.

     

    (a) On
      the
      Closing Date, the Trustee shall establish and maintain in its name, in trust
      for
      the benefit of the holders of the Class X Certificates, the Class X Account.
      No
      later than the first date on which any NIMS Securities are issued, the Depositor
      may deposit a dollar amount into the Class X Account. The Class X Account shall
      be an Eligible Account, and funds on deposit therein shall be held separate
      and
      apart from, and shall not be commingled with, any other moneys, including,
      without limitation, other moneys of the Trustee held pursuant to this
      Agreement.

     

    (b) Funds
      in
      the Class X Account may be invested in Eligible Investments having fixed
      maturities described in clauses (i), (iv), (v) or (vii) of the definition
      thereof by the Trustee at the direction of the holders of the Class C
      Certificates maturing on or prior to the next succeeding Distribution Date.
      No
      Eligible Investments shall be acquired or disposed of for the primary purpose
      of
      recognizing gains or decreasing losses from market value changes. Any funds
      held
      in the Class X Account that are not invested shall be held in cash. In the
      absence of such written direction, all funds in the Class X Account shall remain
      uninvested. Any investment earnings on such amounts shall be payable to the
      holders of the Class C Certificates. The Trustee shall account for the Class
      X
      Account as an outside reserve fund within the meaning of Treasury regulation
      1.860G-2(h) and not an asset of any REMIC created pursuant to this Agreement.
      The Class C Certificates shall evidence ownership of the Class X Account for
      federal tax purposes and the Holders thereof shall direct the Trustee in writing
      as to the investment of amounts therein. The Trustee shall have no liability
      for
      losses on investments in Eligible Investments made pursuant to this Section
      5.12(b) (other than as obligor on any such investments). Upon termination of
      the
      Class X Account, any amounts remaining in the Class X Account shall be
      distributed to the Holders of the Class C Certificates in the same manner as
      if
      distributed pursuant to Section 5.02(e)(1) hereof.

     

    (c) On
      each
      Distribution Date on or prior to the Class X Termination Date, amounts on
      deposit in the Class X Account will be withdrawn and applied to make payments
      on
      the Class X and Class C Certificates, as provided in Section 5.02(e)(1) of
      this
      Agreement. Any amounts that the Trustee is not required to distribute from
      the
      Class X Account pursuant to Section 5.02(e) of this Agreement shall remain
      on
      deposit in the Class X Account.

     

    (d) The
      Class
      X Account shall terminate on the earlier of (i) the Class X Account Termination
      Date or (ii) the Distribution Date on which the amount on deposit in the Class
      X
      Account is reduced to zero.

     

    ARTICLE
      VI.

     

    CONCERNING
      THE TRUSTEE; EVENTS OF DEFAULT

     

    Section
      6.01 Duties
      of Trustee.

     

    (a) The
      Trustee, except during the continuance of an Event of Default of which a
      Responsible Officer of the Trustee shall have actual knowledge, undertakes
      to
      perform such duties and only such duties as are specifically set forth in this
      Agreement. Any permissive right of the Trustee provided for in this Agreement
      shall not be construed as a duty of the Trustee. If an Event of Default (of
      which a Responsible Officer of the Trustee shall have actual knowledge) has
      occurred and has not otherwise been cured or waived, the Trustee shall exercise
      such of the rights and powers vested in it by this Agreement and use the same
      degree of care and skill in their exercise as a prudent Person would exercise
      or
      use under the circumstances in the conduct of such Person’s own affairs, unless
      the Trustee is acting as Master Servicer, in which case it shall use the same
      degree of care and skill as the Master Servicer hereunder.

     

    
      
        
        

      

      
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    (b) The
      Trustee, upon receipt of all resolutions, certificates, statements, opinions,
      reports, documents, orders or other instruments furnished to the Trustee which
      are specifically required to be furnished pursuant to any provision of this
      Agreement, shall examine them to determine whether they are, on their face,
      in
      the form required by this Agreement; provided, however, that the Trustee shall
      not be responsible for the accuracy or content of any such resolution,
      certificate, statement, opinion, report, document, order or other instrument
      furnished by the Master Servicer, the Cap Provider or any Servicer to the
      Trustee pursuant to this Agreement, and shall not be required to recalculate
      or
      verify any numerical information furnished to the Trustee pursuant to this
      Agreement. Subject to the immediately preceding sentence, if any such
      resolution, certificate, statement, opinion, report, document, order or other
      instrument is found not to conform on its face to the form required by this
      Agreement in a material manner the Trustee shall notify the Person providing
      such resolutions, certificates, statements, opinions, reports or other documents
      of the non-conformity, and if the instrument is not corrected to the Trustee’s
      satisfaction, the Trustee will provide notice thereof to the Certificateholders
      and any NIMS Insurer and will, at the expense of the Trust Fund, which expense
      shall be reasonable given the scope and nature of the required action, take
      such
      further action as directed by the Certificateholders and any NIMS
      Insurer.

     

    (c) The
      Trustee shall not have any liability arising out of or in connection with this
      Agreement, except for its negligence or willful misconduct. Notwithstanding
      anything in this Agreement to the contrary, the Trustee shall not be liable
      for
      special, indirect or consequential losses or damages of any kind whatsoever
      (including, but not limited to, lost profits). No provision of this Agreement
      shall be construed to relieve the Trustee from liability for its own negligent
      action, its own negligent failure to act or its own willful misconduct;
      provided, however, that:

     

    (i) The
      Trustee shall not be personally liable with respect to any action taken,
      suffered or omitted to be taken by it in good faith in accordance with the
      consent or direction of the Holders of Certificates as provided in Section
      6.18
      hereof;

     

    (ii) For
      all
      purposes under this Agreement, the Trustee shall not be deemed to have notice
      of
      any Event of Default (other than resulting from a failure by the Master Servicer
      to remit funds or to furnish information to the Trustee when required to do
      so)
      unless a Responsible Officer of the Trustee has actual knowledge thereof or
      unless written notice of any event which is in fact such a default is received
      by the Trustee at the address provided in Section 11.07, and such notice
      references the Holders of the Certificates and this Agreement; and

     

    
      
        
        

      

      
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    (iii) The
      Trustee shall not be responsible for the acts or omissions of any Servicer,
      Custodian or the Master Servicer, it being understood that this Agreement shall
      not be construed to render any of them agents of one another.

     

    (d) The
      Trustee shall have no duty hereunder with respect to any complaint, claim,
      demand, notice or other document it may receive or which may be alleged to
      have
      been delivered to or served upon it by the parties as a consequence of the
      assignment of any Mortgage Loan hereunder; provided, however, that the Trustee
      shall promptly remit to the Master Servicer upon receipt any such complaint,
      claim, demand, notice or other document (i) which is delivered to the Corporate
      Trust Office of the Trustee and makes reference to this series of Certificate
      or
      this Agreement, (ii) of which a Responsible Officer has actual knowledge, and
      (iii) which contains information sufficient to permit the Trustee to make a
      determination that the real property to which such document relates is a
      Mortgaged Property.

     

    (e) The
      Trustee shall not be personally liable with respect to any action taken,
      suffered or omitted to be taken by it in good faith in accordance with the
      direction of any NIMS Insurer or the Certificateholders of any Class holding
      Certificates which evidence, as to such Class, Percentage Interests aggregating
      not less than 25% as to the time, method and place of conducting any proceeding
      for any remedy available to the Trustee or exercising any trust or power
      conferred upon the Trustee under this Agreement.

     

    (f) The
      Trustee shall not be required to perform services under this Agreement, or
      to
      expend or risk its own funds or otherwise incur financial liability for the
      performance of any of its duties hereunder or the exercise of any of its rights
      or powers if there is reasonable ground for believing that the timely payment
      of
      its fees and expenses or the repayment of such funds or adequate indemnity
      against such risk or liability is not reasonably assured to it, and none of
      the
      provisions contained in this Agreement shall in any event require the Trustee
      to
      perform, or be responsible for the manner of performance of, any of the
      obligations of the Master Servicer or any Servicer under this Agreement or
      any
      Servicing Agreement except during such time, if any, as the Trustee shall be
      the
      successor to, and be vested with the rights, duties, powers and privileges
      of,
      the Master Servicer in accordance with the terms of this Agreement, except
      with
      respect to the Trustee, during such time, if any, as the Trustee shall be the
      successor to, and be vested with the rights, duties, powers and privileges
      of,
      the Master Servicer in accordance with the terms of this Agreement.

     

    (g) The
      Trustee shall not be held liable by reason of any insufficiency in any account
      (including without limitation the Collection Account, the Cap Agreement Account
      and the Certificate Account) held by or on behalf of the Trustee resulting
      from
      any investment loss on any Eligible Investment included therein (except to
      the
      extent that the Trustee is the obligor and has defaulted thereon).

     

    (h) Except
      as
      otherwise provided herein, the Trustee shall not have any duty (A) to see to
      any
      recording, filing, or depositing of this Agreement or any agreement referred
      to
      herein or any financing statement or continuation statement evidencing a
      security interest, or to see to the maintenance of any such recording or filing
      or depositing or to any rerecording, refiling or redepositing of any thereof,
      (B) to see to any insurance, (C) to see to the payment or discharge of any
      tax,
      assessment, or other governmental charge or any lien or encumbrance of any
      kind
      owing with respect to, assessed or levied against, any part of the Trust Fund
      other than from funds available in the Collection Account or the Certificate
      Account, or (D) to confirm or verify the contents of any reports or certificates
      of the Master Servicer, any Servicer, the Cap Provider or the Depositor
      delivered to the Trustee pursuant to this Agreement believed by the Trustee
      to
      be genuine and to have been signed or presented by the proper party or
      parties.

     

    
      
        
        

      

      
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    (i) The
      Trustee shall not be liable in its individual capacity for an error of judgment
      made in good faith by a Responsible Officer or other officers of the Trustee
      unless it shall be proved that the Trustee was negligent in ascertaining the
      pertinent facts.

     

    (j) Notwithstanding
      anything in this Agreement to the contrary, the Trustee shall not be liable
      for
      special, indirect or consequential losses or damages of any kind whatsoever
      (including, but not limited to, lost profits), even if the Trustee has been
      advised of the likelihood of such loss or damage and regardless of the form
      of
      action.

     

    (k)
      This Agreement shall not be construed to render the
      Trustee an agent of the Master Servicer or the Servicer.

     

    (l) For
      so
      long as the Depositor is subject to Exchange Act reporting requirements for
      the
      Lehman XS Trust Mortgage Pass-Through Certificates, Series 2006-16N transaction,
      the Trustee shall give prior written notice to the Sponsor, the Master Servicer
      and the Depositor of the appointment of any Subcontractor by it 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 the
      Trustee, 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.

     

    (m) The
      Trustee shall notify the Sponsor, the Master Servicer and the Depositor within
      five (5) calendar days of knowledge thereof (i) of any legal proceedings pending
      against the Trustee, of the type described in Item 1117 (§ 229.1117) of
      Regulation AB, (ii) of any merger, consolidation or sale of substantially all
      of
      the assets of the Trustee and (iii) if the Trustee shall become (but only to
      the
      extent not previously disclosed) at any time an affiliate of any of the parties
      listed on Exhibit S hereto or any of their affiliates. On or before March 1st
      of
      each year, the Depositor shall distribute the information in Exhibit S to the
      Trustee.

     

    Section
      6.02 Certain
      Matters Affecting the Trustee.

     

    Except
      as
      otherwise provided in Section 6.01:

     

    (i) The
      Trustee may request, and may rely upon and shall be protected in acting or
      refraining from acting upon any resolution, Officer’s Certificate, certificate
      of auditors or any other certificate, statement, instrument, opinion, report,
      notice, request, consent, order, approval, bond or other paper or document
      believed by it to be genuine and to have been signed or presented by the proper
      party or parties;

     

    (ii) The
      Trustee may consult with counsel and any advice of its counsel or Opinion of
      Counsel shall be full and complete authorization and protection in respect
      of
      any action taken or suffered or omitted by it hereunder in good faith and in
      accordance with such advice or Opinion of Counsel;

     

    
      
        
        

      

      
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    (iii) The
      Trustee shall not be personally liable for any action taken, suffered or omitted
      by it in good faith and reasonably believed by it to be authorized or within
      the
      discretion or rights or powers conferred upon it by this Agreement;

     

    (iv) Unless
      an
      Event of Default shall have occurred and be continuing, the Trustee shall not
      be
      bound to make any investigation into the facts or matters stated in any
      resolution, certificate, statement, instrument, opinion, report, notice,
      request, consent, order, approval, bond or other paper or document (provided
      the
      same appears regular on its face), unless requested in writing to do so by
      any
      NIMS Insurer or the Holders of at least a majority in Class Principal Amount
      (or
      Percentage Interest) of each Class of Certificates; provided, however, that,
      if
      the payment within a reasonable time to the Trustee of the costs, expenses
      or
      liabilities likely to be incurred by it in the making of such investigation
      is,
      in the opinion of the Trustee not reasonably assured to the Trustee by the
      security afforded to it by the terms of this Agreement, the Trustee may require
      reasonable indemnity against such expense or liability or payment of such
      estimated expenses from any NIMS Insurer or the Certificateholders, as
      applicable, as a condition to proceeding. The reasonable expense thereof shall
      be paid by the party requesting such investigation and if not reimbursed by
      the
      requesting party shall be reimbursed to the Trustee by the Trust
      Fund;

     

    (v) The
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or by or through agents, custodians or attorneys,
      which agents, custodians or attorneys shall have any and all of the rights,
      powers, duties and obligations of the Trustee conferred on them by such
      appointment, provided that the Trustee shall continue to be responsible for
      its
      duties and obligations hereunder to the extent provided herein, and provided
      further that the Trustee shall not be responsible for any misconduct or
      negligence on the part of any such agent or attorney appointed with due care
      by
      the Trustee;

     

    (vi) The
      Trustee shall not be under any obligation to exercise any of the trusts or
      powers vested in it by this Agreement or to institute, conduct or defend any
      litigation hereunder or in relation hereto, in each case at the request, order
      or direction of any of the Certificateholders or any NIMS Insurer pursuant
      to
      the provisions of this Agreement, unless such Certificateholders or any NIMS
      Insurer shall have offered to the Trustee reasonable security or indemnity
      against the costs, expenses and liabilities which may be incurred therein or
      thereby;

     

    (vii) The
      right
      of the Trustee to perform any discretionary act enumerated in this Agreement
      shall not be construed as a duty, and the Trustee shall not be answerable for
      other than its negligence or willful misconduct in the performance of such
      act;
      and

     

    (viii) The
      Trustee shall not be required to give any bond or surety in respect of the
      execution of the Trust Fund created hereby or the powers granted
      hereunder.

     

    Section
      6.03 Trustee
      Not Liable for Certificates.

     

    The
      Trustee makes no representations as to the validity or sufficiency of this
      Agreement, the Cap Agreements or of the Certificates (other than the certificate
      of authentication on the Certificates) or of any Mortgage Loan, or related
      document save that the Trustee represents that, assuming due execution and
      delivery by the other parties hereto, this Agreement has been duly authorized,
      executed and delivered by it and constitutes its valid and binding obligation,
      enforceable against it in accordance with its terms except that such
      enforceability may be subject to (A) applicable bankruptcy and insolvency laws
      and other similar laws affecting the enforcement of the rights of creditors
      generally, and (B) general principles of equity regardless of whether such
      enforcement is considered in a proceeding in equity or at law. The Trustee
      shall
      not be accountable for the use or application by the Depositor of funds paid
      to
      the Depositor in consideration of the assignment of the Mortgage Loans to the
      Trust Fund by the Depositor or for the use or application of any funds deposited
      into the Collection Account, the Certificate Account, any Escrow Account or
      any
      other fund or account maintained with respect to the Certificates. The Trustee
      shall not be responsible for the legality or validity of this Agreement, the
      Cap
      Agreements, the Deferred Interest Cap Agreements or the validity, priority,
      perfection or sufficiency of the security for the Certificates issued or
      intended to be issued hereunder. Except as otherwise provided herein, the
      Trustee shall have no responsibility for filing any financing or continuation
      statement in any public office at any time or to otherwise perfect or maintain
      the perfection of any security interest or lien granted to it hereunder or
      to
      record this Agreement.

     

    
      
        
        

      

      
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    Section
      6.04 Trustee
      May Own Certificates.

     

    The
      Trustee and any Affiliate or agent of the Trustee in its individual or any
      other
      capacity may become the owner or pledgee of Certificates and may transact
      banking and trust business with the other parties hereto and their Affiliates
      with the same rights it would have if it were not Trustee or such
      agent.

     

    Section
      6.05 Eligibility
      Requirements for Trustee.

     

    The
      Trustee hereunder shall at all times be (i) an institution whose accounts are
      insured by the FDIC, (ii) a corporation or national banking association,
      organized and doing business under the laws of any State or the United States
      of
      America, authorized under such laws to exercise corporate trust powers, having
      a
      combined capital and surplus of not less than $50,000,000 and subject to
      supervision or examination by federal or state authority and (iii) not an
      Affiliate of the Master Servicer or any Servicer. If such corporation or
      national banking association publishes reports of condition at least annually,
      pursuant to law or to the requirements of the aforesaid supervising or examining
      authority, then, for the purposes of this Section, the combined capital and
      surplus of such corporation or national banking association shall be deemed
      to
      be its combined capital and surplus as set forth in its most recent report
      of
      condition so published. In case at any time the Trustee shall cease to be
      eligible in accordance with provisions of this Section, the Trustee shall resign
      immediately in the manner and with the effect specified in Section
      6.06.

     

    Section
      6.06 Resignation
      and Removal of Trustee.

     

    (a) The
      Trustee may at any time resign and be discharged from the trust hereby created
      by giving written notice thereof to the Depositor, any NIMS Insurer and the
      Master Servicer. Upon receiving such notice of resignation, the Depositor will
      promptly appoint a successor trustee acceptable to any NIMS Insurer by written
      instrument, one copy of which instrument shall be delivered to the resigning
      Trustee, one copy to the successor trustee and one copy to each of the Master
      Servicer and any NIMS Insurer. If no successor trustee shall have been so
      appointed and shall have accepted appointment within 30 days after the giving
      of
      such notice of resignation, the resigning Trustee may petition any court of
      competent jurisdiction for the appointment of a successor trustee.

     

    
      
        
        

      

      
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    (b) If
      at any
      time (i) the Trustee shall cease to be eligible in accordance with the
      provisions of Section 6.05 and shall fail to resign after written request
      therefor by the Depositor or any NIMS Insurer, (ii) the Trustee shall become
      incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver
      of the Trustee or of its property shall be appointed, or any public officer
      shall take charge or control of the Trustee or of its property or affairs for
      the purpose of rehabilitation, conservation or liquidation, (iii) a tax is
      imposed or threatened with respect to the Trust Fund by any state in which
      the
      Trustee or the Trust Fund held by the Trustee is located, (iv) the continued
      use
      of the Trustee would result in a downgrading of the rating by any Rating Agency
      of any Class of Certificates with a rating, or (v) the Trustee shall fail to
      provide the information required pursuant to Section 6.01(l) or (m) or Section
      9.25 hereof, then the Depositor, any NIMS Insurer or the Master Servicer shall
      remove the Trustee and the Depositor shall appoint a successor trustee
      acceptable to any NIMS Insurer and the Master Servicer by written instrument,
      one copy of which instrument shall be delivered to the Trustee so removed,
      one
      copy each to the successor trustee and one copy to the Master Servicer and
      any
      NIMS Insurer.

     

    (c) The
      Holders of more than 50% of the Class Principal Amount (or Percentage Interest)
      of each Class of Certificates (or any NIMS Insurer in the event of failure
      of
      the Trustee to perform its obligations hereunder) may at any time upon 30 days’
written notice to the Trustee and the Depositor remove the Trustee by such
      written instrument, signed by such Holders or their attorney in fact duly
      authorized (or by any NIMS Insurer), one copy of which instrument shall be
      delivered to the Depositor, one copy to the Trustee and one copy to the Master
      Servicer and any NIMS Insurer; the Depositor shall thereupon appoint a successor
      trustee in accordance with this Section mutually acceptable to the Depositor
      and
      the Master Servicer and any NIMS Insurer.

     

    (d) Any
      resignation or removal of the Trustee and appointment of a successor trustee
      pursuant to any of the provisions of this Section shall become effective upon
      (i) the payment of all unpaid amounts owed to the Trustee and (ii) the
      acceptance of appointment by the successor trustee as provided in Section
      6.07.

     

    Section
      6.07 Successor
      Trustee.

     

    (a) Any
      successor trustee appointed as provided in Section 6.06 shall execute,
      acknowledge and deliver to the Depositor, the Master Servicer and any NIMS
      Insurer and to its predecessor trustee an instrument accepting such appointment
      hereunder, and thereupon the resignation or removal of the predecessor trustee
      shall become effective and such successor trustee without any further act,
      deed
      or conveyance, shall become fully vested with all the rights, powers, duties
      and
      obligations of its predecessor hereunder, with like effect as if originally
      named as trustee herein. The predecessor trustee (or its custodian) shall
      deliver to the successor trustee (or assign to the Trustee its interest under
      each Custodial Agreement, to the extent permitted thereunder) all Mortgage
      Files
      and documents and statements related to each Mortgage File held by it hereunder,
      and shall duly assign, transfer, deliver and pay over to the successor trustee
      the entire Trust Fund, together with all necessary instruments of transfer
      and
      assignment or other documents properly executed necessary to effect such
      transfer and such of the records or copies thereof maintained by the predecessor
      trustee in the administration hereof as may be requested by the successor
      trustee and shall thereupon be discharged from all duties and responsibilities
      under this Agreement. In addition, the Master Servicer and the predecessor
      trustee shall execute and deliver such other instruments and do such other
      things as may reasonably be required to more fully and certainly vest and
      confirm in the successor trustee all such rights, powers, duties and
      obligations.

     

    
      
        
        

      

      
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    (b) No
      successor trustee shall accept appointment as provided in this Section unless
      at
      the time of such appointment such successor trustee shall be eligible under
      the
      provisions of Section 6.05.

     

    (c) Upon
      acceptance of appointment by a successor trustee as provided in this Section,
      the predecessor trustee shall mail notice of the succession of such trustee
      hereunder to all Holders of Certificates at their addresses as shown in the
      Certificate Register and to any Rating Agency. The expenses of such mailing
      shall be borne by the predecessor trustee.

     

    Section
      6.08 Merger
      or Consolidation of Trustee.

     

    Any
      Person into which the Trustee may be merged or with which it may be
      consolidated, or any Person resulting from any merger, conversion or
      consolidation to which the Trustee shall be a party, or any Persons succeeding
      to the corporate trust business of the Trustee shall be the successor to the
      Trustee hereunder, without the execution or filing of any paper or any further
      act on the part of any of the parties hereto, anything herein to the contrary
      notwithstanding, provided that such Person shall be eligible under the
      provisions of Section 6.05. As a condition to the succession to the Trustee
      under this Agreement by any Person (i) into which the Trustee may be merged
      or
      consolidated, or (ii) which may be appointed as a successor to the Trustee,
      the
      Trustee shall notify the Depositor and the Master Servicer, at least 15 calendar
      days prior to the effective date of such succession or appointment, of such
      succession or appointment and shall furnish to the Depositor in writing and
      in
      form and substance reasonably satisfactory to the Depositor, all information
      reasonably necessary for the Trustee to accurately and timely report, pursuant
      to Section 6.20, the event under Item 6.02 of Form 8-K pursuant to the Exchange
      Act (if such reports under the Exchange Act are required to be filed under
      the
      Exchange Act).

     

    Section
      6.09 Appointment
      of Co-Trustee, Separate Trustee or Custodian.

     

    (a) Notwithstanding
      any other provisions hereof, at any time, the Trustee, the Depositor or the
      Certificateholders evidencing more than 50% of the Class Principal Amount (or
      Percentage Interest) of every Class of Certificates shall have the power from
      time to time to appoint one or more Persons, approved by the Trustee and any
      NIMS Insurer, to act either as co trustees jointly with the Trustee, or as
      separate trustees, or as custodians, for the purpose of holding title to,
      foreclosing or otherwise taking action with respect to any Mortgage Loan outside
      the state where the Trustee has its principal place of business where such
      separate trustee or co trustee is necessary or advisable (or the Trustee has
      been advised by the Master Servicer that such separate trustee or co-trustee
      is
      necessary or advisable) under the laws of any state in which a property securing
      a Mortgage Loan is located or for the purpose of otherwise conforming to any
      legal requirement, restriction or condition in any state in which a property
      securing a Mortgage Loan is located or in any state in which any portion of
      the
      Trust Fund is located. The separate Trustees, co trustees, or custodians so
      appointed shall be trustees or custodians for the benefit of all the
      Certificateholders and shall have such powers, rights and remedies as shall
      be
      specified in the instrument of appointment; provided, however, that no such
      appointment shall, or shall be deemed to, constitute the appointee an agent
      of
      the Trustee. The obligation of the Trustee to make Advances pursuant to Section
      5.04 and 6.14 shall not be affected or assigned by the appointment of a co
      trustee. Prior to the appointment hereunder of any co-trustee, separate trustee,
      or custodian pursuant to this Section 6.09, such Person shall enter into an
      agreement, in form and substance satisfactory to the Depositor, the Master
      Servicer and the Trustee, relating to the satisfaction of such Person of its
      reporting obligations under Regulation AB with respect to any servicing
      performed by it in connection with the Trust Fund. The Trustee shall not be
      responsible for any action or omission of any separate trustee, co-trustee
      or
      custodian. Notwithstanding the foregoing, if such co-custodian or co-trustee
      is
      determined to be a Servicing Function Participant, no such co-custodian or
      co-trustee shall be vested with any powers, rights and remedies under this
      Agreement unless such party has agreed to comply with all Regulation AB
      requirements set forth under this Agreement or each Custodial Agreement, as
      applicable.

     

    
      
        
        

      

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

     

    (i) all
      powers, duties, obligations and rights conferred upon the Trustee in respect
      of
      the receipt, custody and payment of moneys shall be exercised solely by the
      Trustee;

     

    (ii) all
      other
      rights, powers, duties and obligations conferred or imposed upon the Trustee
      shall be conferred or imposed upon and exercised or performed by the Trustee
      and
      such separate trustee, co trustee, or custodian jointly, except to the extent
      that under any law of any jurisdiction in which any particular act or acts
      are
      to be performed the Trustee shall be incompetent or unqualified to perform
      such
      act or acts, in which event such rights, powers, duties and obligations,
      including the holding of title to the Trust Fund or any portion thereof in
      any
      such jurisdiction, shall be exercised and performed by such separate trustee,
      co
      trustee, or custodian;

     

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

     

    (iv) the
      Trustee or the Certificateholders evidencing more than 50% of the Aggregate
      Voting Interests of the Certificates may at any time accept the resignation
      of
      or remove any separate trustee, co trustee or custodian, so appointed by it
      or
      them, if such resignation or removal does not violate the other terms of this
      Agreement.

     

    (c) Any
      notice, request or other writing given to the Trustee shall be deemed to have
      been given to each of the then separate trustees and co trustees, as effectively
      as if given to each of them. Every instrument appointing any separate trustee,
      co trustee or custodian shall refer to this Agreement 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 Trustee or separately, as
      may
      be provided therein, subject to all the provisions of this Agreement,
      specifically including every provision of this Agreement relating to the conduct
      of, affecting the liability of, or affording protection to, the Trustee. Every
      such instrument shall be filed with the Trustee and a copy given to the Master
      Servicer and any NIMS Insurer.

     

    
      
        
        

      

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

     

    (e) No
      separate trustee, co trustee or custodian hereunder shall be required to meet
      the terms of eligibility as a successor trustee under Section 6.05 hereunder
      and
      no notice to Certificateholders of the appointment shall be required under
      Section 6.07 hereof.

     

    (f) The
      Trustee agrees to instruct the co trustees, if any, to the extent necessary
      to
      fulfill the Trustee’s obligations hereunder.

     

    (g) The
      Trustee shall pay the reasonable compensation of the co trustees requested
      by
      the Trustee to be so appointed (which compensation shall not reduce any
      compensation payable to the Trustee) and, if paid by the Trustee, shall be
      a
      reimbursable expense pursuant to Section 6.12.

     

    (h) Notwithstanding
      the foregoing, for so long as reports are required to be filed with the
      Commission under the Exchange Act with respect to the Trust, the Trustee shall
      not utilize any Subcontractor for the performance of its duties hereunder if
      such Subcontractor would be “participating in the servicing function” within the
      meaning of Item 1122 of Regulation AB without (a) giving notice to the Seller,
      the Master Servicer and the Depositor and (b) requiring any such Subcontractor
      to provide to the Trustee an assessment of compliance as provided in Section
      9.25(a) and an attestation report as provided in Section 9.25(b), which reports
      the Trustee shall include in its assessment and attestation reports. The Trustee
      shall indemnify the Depositor and the Master Servicer and any director, officer,
      employee or agent of each of the Depositor and the Master Servicer and hold
      them
      harmless against any and all claims, losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments,
      and any other costs, fees and expenses that any of them may sustain arising
      out
      of or based upon the failure by the Trustee (i) to give notice of the engagement
      of any Subcontractor or (ii) to require any Subcontractor to provide the Trustee
      an assessment of compliance as provided in Section 9.25(a) and an attestation
      report as provided in Section 9.25(b). This indemnity shall survive the
      termination of this Agreement or the earlier resignation or removal of the
      Trustee.

     

    Section
      6.10 Authenticating
      Agents.

     

    (a) The
      Trustee may appoint one or more Authenticating Agents which shall be authorized
      to act on behalf of the Trustee in authenticating Certificates. Wherever
      reference is made in this Agreement to the authentication of Certificates by
      the
      Trustee or the Trustee’s certificate of authentication, such reference shall be
      deemed to include authentication on behalf of the Trustee by an Authenticating
      Agent and a certificate of authentication executed on behalf of the Trustee
      by
      an Authenticating Agent. Each Authenticating Agent must be a corporation
      organized and doing business under the laws of the United States of America
      or
      of any state, having a combined capital and surplus of at least $15,000,000,
      authorized under such laws to do a trust business and subject to supervision
      or
      examination by federal or state authorities and acceptable to any NIMS
      Insurer.

     

    
      
        
        

      

      
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    (b) Any
      Person into which any Authenticating Agent may be merged or converted or with
      which it may be consolidated, or any Person resulting from any merger,
      conversion or consolidation to which any Authenticating Agent shall be a party,
      or any Person succeeding to the corporate agency business of any Authenticating
      Agent, shall continue to be the Authenticating Agent without the execution
      or
      filing of any paper or any further act on the part of the Trustee or the
      Authenticating Agent.

     

    (c) Any
      Authenticating Agent may at any time resign by giving at least 30 days’ advance
      written notice of resignation to the Trustee, any NIMS Insurer and the
      Depositor. The Trustee may at any time terminate the agency of any
      Authenticating Agent by giving written notice of termination to such
      Authenticating Agent, any NIMS Insurer and the Depositor. Upon receiving a
      notice of resignation or upon such a termination, or in case at any time any
      Authenticating Agent shall cease to be eligible in accordance with the
      provisions of this Section 6.10, the Trustee may appoint a successor
      Authenticating Agent, shall give written notice of such appointment to the
      Depositor and any NIMS Insurer and shall mail notice of such appointment to
      all
      Holders of Certificates. Any successor Authenticating Agent upon acceptance
      of
      its appointment hereunder shall become vested with all the rights, powers,
      duties and responsibilities of its predecessor hereunder, with like effect
      as if
      originally named as Authenticating Agent. No successor Authenticating Agent
      shall be appointed unless eligible under the provisions of this Section 6.10.
      No
      Authenticating Agent shall have responsibility or liability for any action
      taken
      by it as such at the direction of the Trustee. Any Authenticating Agent shall
      be
      entitled to reasonable compensation for its services and, if paid by the
      Trustee, it shall be a reimbursable expense pursuant to Section
      6.12.

     

    Section
      6.11 Indemnification
      of Trustee.

     

    The
      Trustee and its respective directors, officers, employees and agents shall
      be
      entitled to indemnification from the Trust Fund for any loss, liability or
      expense incurred in connection with any legal proceeding or incurred without
      negligence or willful misconduct on their part (it being understood that the
      negligence or willful misconduct of any Custodian shall not constitute
      negligence or willful misconduct on the part of the Trustee or its directors,
      officers, employees or agents for such purpose), arising out of, or in
      connection with, the acceptance or administration of the trusts created
      hereunder or in connection with the performance of their duties hereunder,
      the
      Mortgage Loan Sale Agreement, the Cap Agreements, any Transfer Agreement, any
      Servicing Agreement or any Custodial Agreement, including any applicable fees
      and expenses payable pursuant to Section 6.12 and the costs and expenses of
      defending themselves against any claim in connection with the exercise or
      performance of any of their powers or duties hereunder, provided
      that:

     

    
      
        
        

      

      
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    (i) with
      respect to any such claim, the Trustee shall have given the Depositor, the
      Master Servicer and the Holders written notice thereof promptly after the
      Trustee shall have knowledge thereof; provided that failure to so notify shall
      not relieve the Trust Fund of the obligation to indemnify the Trustee; however,
      any reasonable delay by the Trustee to provide written notice to the Depositor,
      the Master Servicer and the Holders promptly after the Trustee shall have
      obtained knowledge of a claim shall not relieve the Trust Fund of the obligation
      to indemnify the Trustee under this Section 6.11;

     

    (ii) while
      maintaining control over its own defense, the Trustee shall cooperate and
      consult fully with the Depositor in preparing such defense; and

     

    (iii) notwithstanding
      anything to the contrary in this Section 6.11, the Trust Fund shall not be
      liable for settlement of any such claim by the Trustee entered into without
      the
      prior consent of the Depositor, which consent shall not be unreasonably
      withheld.

     

    The
      provisions of this Section 6.11 shall survive any termination of this Agreement
      and the resignation or removal of the Trustee and shall be construed to include,
      but not be limited to any loss, liability or expense under any environmental
      law.

     

    Section
      6.12 Fees
      and Expenses of Trustee and Custodians.

     

    The
      Trustee shall be entitled to (i) receive, and is authorized to pay itself,
      the
      amount of income or gain earned from investment of funds in the Certificate
      Account and (ii) reimbursement of all reasonable expenses, disbursements and
      advances incurred or made by the Trustee in accordance with this Agreement
      (including fees and expenses of its counsel and all persons not regularly in
      its
      employment and any amounts described in Section 10.01 to which the Trustee
      is
      entitled as provided therein), except for expenses, disbursements and advances
      that either (i) do not constitute “unanticipated expenses” within the meaning of
      Treasury Regulations Section 1.860G-1(b)(3)(ii) or (ii) arise from its
      negligence, bad faith or willful misconduct. The Custodian shall receive
      compensation and reimbursement or payment of its expenses under the Custodial
      Agreement as provided therein; provided that, to the extent required under
      Section 6 or Section 20 of the Custodial Agreement, the Trustee is hereby
      authorized to pay such compensation or reimbursement from amounts on deposit
      in
      the Certificate Account prior to any distributions to Certificateholders
      pursuant to Section 5.02 hereof.

     

    Section
      6.13 Collection
      of Monies.

     

    Except
      as
      otherwise expressly provided in this Agreement, the Trustee may demand payment
      or delivery of, and shall receive and collect, all money and other property
      payable to or receivable by the Trustee pursuant to this Agreement. The Trustee
      shall hold all such money and property received by it as part of the Trust
      Fund
      and shall distribute it as provided in this Agreement. If the Trustee shall
      not
      have timely received amounts to be remitted with respect to the Mortgage Loans
      from the Master Servicer, the Trustee shall request the Master Servicer to
      make
      such distribution as promptly as practicable or legally permitted. If the
      Trustee shall subsequently receive any such amount, it may withdraw such
      request.

     

    
      
        
        

      

      
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    Section
      6.14 Events
      of Default; Trustee To Act; Appointment of Successor.

     

    (a) The
      occurrence of any one or more of the following events shall constitute an “Event
      of Default”:

     

    (i) Any
      failure by the Master Servicer to furnish to the Trustee the Mortgage Loan
      data
      sufficient to prepare the reports described in Section 4.03(a) which continues
      unremedied for a period of two (2) Business Days after the date upon which
      written notice of such failure shall have been given to such Master Servicer
      by
      the Trustee or to such Master Servicer and the Trustee by any NIMS Insurer
      or
      Holders of not less than 25% of the Class Principal Amount of each Class of
      Certificates affected thereby; or

     

    (ii) Any
      failure on the part of the Master Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of the
      Master Servicer contained in this Agreement which continues unremedied for
      a
      period of 30 days (or 15 days, in the case of failure to maintain any Insurance
      Policy required to be maintained pursuant to this Agreement) after the date
      on
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the Master Servicer by the Trustee or to the Master Servicer
      and the Trustee by any NIMS Insurer or Holders of not less than 25% of the
      Class
      Principal Amount (or Class Notional Amount) of each Class of Certificates
      affected thereby or by any NIMS Insurer; or

     

    (iii) A
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      for
      the appointment of a conservator or receiver or liquidator in any insolvency,
      readjustment of debt, marshalling of assets and liabilities or similar
      proceedings, or for the winding up or liquidation of its affairs, shall have
      been entered against the Master Servicer, and such decree or order shall have
      remained in force undischarged or unstayed for a period of 60 days or any Rating
      Agency reduces or withdraws or threatens to reduce or withdraw the rating of
      the
      Certificates because of the financial condition or loan servicing capability
      of
      such Master Servicer; or

     

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

     

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

     

    (vi) The
      Master Servicer shall be dissolved, or shall dispose of all or substantially
      all
      of its assets, or consolidate with or merge into another entity or shall permit
      another entity to consolidate or merge into it, such that the resulting entity
      does not meet the criteria for a successor servicer as specified in Section
      9.27
      hereof; or

     

    (vii) If
      a
      representation or warranty set forth in Section 9.14 hereof shall prove to
      be
      incorrect as of the time made in any respect that materially and adversely
      affects the interests of the Certificateholders, and the circumstance or
      condition in respect of which such representation or warranty was incorrect
      shall not have been eliminated or cured within 30 days after the date on which
      written notice of such incorrect representation or warranty shall have been
      given to the Master Servicer by the Trustee or to the Master Servicer and the
      Trustee by the Holders of more than 50% of the Aggregate Voting Interests of
      the
      Certificates or by any NIMS Insurer; or

     

    
      
        
        

      

      
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    (viii) A
      sale or
      pledge of any of the rights of the Master Servicer hereunder or an assignment
      of
      this Agreement by the Master Servicer or a delegation of the rights or duties
      of
      the Master Servicer hereunder shall have occurred in any manner not otherwise
      permitted hereunder and without the prior written consent of the Trustee, any
      NIMS Insurer and Certificateholders holding more than 50% of the Aggregate
      Voting Interests of the Certificates; or

     

    (ix) The
      Master Servicer has notice or actual knowledge that a Servicer at any time
      is
      not either a Fannie Mae- or Freddie Mac- approved Seller/Servicer, and the
      Master Servicer has not terminated the rights and obligations of such Servicer
      under the Servicing Agreement and replaced such Servicer with a Fannie Mae-
      or
      Freddie Mac-approved servicer within 60 days of the date the Master Servicer
      receives such notice or acquires such actual knowledge; or

     

    (x) After
      any
      receipt of notice from the Trustee or any NIMS Insurer, any failure of the
      Master Servicer to remit to the Trustee any payment required to be made to
      the
      Trustee for the benefit of Certificateholders under the terms of this Agreement,
      including any Advance, on any Deposit Date, which failure continues unremedied
      for a period of one Business Day after the date upon which such written notice
      of such failure shall have been given to the Master Servicer by the
      Trustee.

     

    If
      an
      Event of Default described in clauses (i) through (ix) of this Section 6.14
      shall occur, then, in each and every case, subject to applicable law, so long
      as
      any such Event of Default shall not have been remedied within any period of
      time
      prescribed by this Section, the Trustee, by notice in writing to the Master
      Servicer may, and shall, if so directed by Certificateholders evidencing more
      than 50% of the Class Principal Amount (or Class Notional Amount) of each Class
      of Certificates or any NIMS Insurer, terminate all of the rights and obligations
      of the Master Servicer hereunder and in and to the Mortgage Loans and the
      proceeds thereof. If an Event of Default described in clause (x) of this Section
      6.14 shall occur, then, in each and every case, subject to applicable law,
      so
      long as such Event of Default shall not have been remedied within the time
      period prescribed by clause (x) of this Section 6.14, the Trustee, by notice
      in
      writing to the Master Servicer and the NIMS Insurer, shall promptly terminate
      all the rights and obligations of the Master Servicer hereunder and in and
      to
      the Mortgage Loans and the proceeds thereof. On or after the receipt by the
      Master Servicer of such written notice, all authority and power of the Master
      Servicer, and only in its capacity as Master Servicer under this Agreement,
      whether with respect to the Mortgage Loans or otherwise, shall pass to and
      be
      vested in the Trustee and pursuant to and under the terms of this Agreement;
      provided, however, the parties acknowledge that notwithstanding the preceding
      sentence, there may be a transition period, not to exceed 90 days, in order
      to
      effect the transfer of the Master Servicer’s obligations to the Trustee, the
      Trustee is hereby authorized and empowered to execute and deliver, on behalf
      of
      the defaulting Master Servicer as attorney-in-fact or otherwise, any and all
      documents and other instruments, and to do or accomplish all other acts or
      things necessary or appropriate to effect the purposes of such notice of
      termination, whether to complete the transfer and endorsement or assignment
      of
      the Mortgage Loans and related documents or otherwise. The defaulting Master
      Servicer agrees to cooperate with the Trustee in effecting the termination
      of
      the defaulting Master Servicer’s responsibilities and rights hereunder as Master
      Servicer including, without limitation, notifying the Servicers of the
      assignment of the master servicing function and providing the Trustee or its
      designee all documents and records in electronic or other form reasonably
      requested by it to enable the Trustee or its designee to assume the defaulting
      Master Servicer’s functions hereunder and the transfer to the Trustee for
      administration by it of all amounts which shall at the time be or should have
      been deposited by the defaulting Master Servicer in the Collection Account
      maintained by such defaulting Master Servicer and any other account or fund
      maintained with respect to the Certificates or thereafter received with respect
      to the Mortgage Loans. The Master Servicer being terminated (or the Trust Fund,
      if the Master Servicer is unable to fulfill its obligations hereunder) as a
      result of an Event of Default shall bear all costs of a master servicing
      transfer, including but not limited to those of the Trustee reasonably allocable
      to specific employees and overhead, legal fees and expenses, accounting and
      financial consulting fees and expenses, and costs of amending the Agreement,
      if
      necessary.

     

    
      
        
        

      

      
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    The
      Trustee shall be entitled to be reimbursed from the Master Servicer (or by
      the
      Trust Fund, if the Master Servicer is unable to fulfill its obligations
      hereunder) for all costs associated with the transfer of master servicing from
      the predecessor Master Servicer, including, without limitation, any costs or
      expenses associated with the complete transfer of all master servicing data
      and
      the completion, correction or manipulation of such servicing data as may be
      required by the Trustee to correct any errors or insufficiencies in the master
      servicing data or otherwise to enable the Trustee to master service the Mortgage
      Loans properly and effectively. If the terminated Master Servicer does not
      pay
      such reimbursement within thirty (30) days of its receipt of an invoice
      therefor, such reimbursement shall be an expense of the Trust Fund and the
      Trustee shall be entitled to withdraw such reimbursement from amounts on deposit
      in the Certificate Account pursuant to Section 4.04(b); provided that the
      terminated Master Servicer shall reimburse the Trust Fund for any such expense
      incurred by the Trust Fund.

     

    Notwithstanding
      the termination of its activities as Master Servicer, each terminated Master
      Servicer shall continue to be entitled to reimbursement to the extent provided
      in Section 4.02(a)(i), (ii), (iii), (v), (vii) and (ix) to the extent such
      reimbursement relates to the period prior to such Master Servicer’s
      termination.

     

    If
      any
      Event of Default shall occur of which a Responsible Officer of the Trustee
      has
      actual knowledge, the Trustee, shall promptly notify any NIMS Insurer and each
      Rating Agency of the nature and extent of such Event of Default. The Trustee
      shall immediately give written notice to the Master Servicer upon the Master
      Servicer’s failure to remit funds on the Deposit Date.

     

    (b) On
      or
      after the time the Master Servicer (and the Trustee, if notice is sent by any
      NIMS Insurer) receives a notice of termination from the Trustee pursuant to
      Section 6.14(a) or the Trustee receives the resignation of the Master Servicer
      evidenced by an Opinion of Counsel pursuant to Section 9.28, the Trustee, within
      90 days of such notice unless another master servicer acceptable to the NIMS
      Insurer shall have been appointed, shall be the successor in all respects to
      the
      Master Servicer in its capacity as such under this Agreement and the
      transactions set forth or provided for herein and shall have all the rights
      and
      powers and be subject to all the responsibilities, duties and liabilities
      relating thereto and arising thereafter placed on the Master Servicer hereunder,
      including the obligation to make Advances; provided, however, that any failure
      to perform such duties or responsibilities caused by the Master Servicer’s
      failure to provide information required by this Agreement shall not be
      considered a default by the Trustee hereunder. In addition, the Trustee shall
      have no responsibility for any act or omission of the Master Servicer prior
      to
      the issuance of any notice of termination. The Trustee shall have no liability
      relating to the representations and warranties of the Master Servicer set forth
      in Section 9.14. In the Trustee’s capacity as such successor, the Trustee shall
      have the same limitations on liability herein granted to the Master Servicer.
      As
      compensation therefor, the Trustee shall be entitled to receive all compensation
      payable to the Master Servicer under this Agreement, including the Master
      Servicing Fee. The Trustee shall be entitled to be reimbursed from the Master
      Servicer (or by the Trust Fund if the Master Servicer is unable to fulfill
      its
      obligations hereunder) for all costs associated with the transfer of master
      servicing from the predecessor master servicer, including, without limitation,
      any costs or expenses associated with the complete transfer of all master
      servicing data and the completion, correction or manipulation of such master
      servicing data as may be required by the Trustee to correct any errors or
      insufficiencies in the master servicing data or otherwise to enable the Trustee
      to master service the Mortgage Loans properly and effectively.

     

    
      
        
        

      

      
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    (c) Notwithstanding
      the above, the Trustee may, if it shall be unwilling to continue to so act,
      or
      shall, if it is unable to so act or if any NIMS Insurer so requests in writing
      to the Trustee, request the Depositor to appoint, petition a court of competent
      jurisdiction to appoint, or appoint on its own behalf any established housing
      and home finance institution servicer, master servicer, servicing or mortgage
      servicing institution acceptable to the NIMS Insurer having a net worth of
      not
      less than $15,000,000 and meeting such other standards for a successor master
      servicer as are set forth in this Agreement, as the successor to such Master
      Servicer in the assumption of all of the responsibilities, duties or liabilities
      of a master servicer, like the Master Servicer hereunder. Any entity designated
      by the Trustee as a successor master servicer may be an Affiliate of the
      Trustee; provided, however, that, unless such Affiliate meets the net worth
      requirements and other standards set forth herein for a successor master
      servicer, the Trustee in its individual capacity shall agree, at the time of
      such designation, to be and remain liable to the Trust Fund for such Affiliate’s
      actions and omissions in performing its duties hereunder. In connection with
      such appointment and assumption, the Trustee may make such arrangements for
      the
      compensation of such successor out of payments on Mortgage Loans as it and
      such
      successor shall agree; provided, however, that no such compensation shall be
      in
      excess of that permitted to the Master Servicer hereunder. The Trustee and
      such
      successor shall take such actions, consistent with this Agreement, as shall
      be
      necessary to effectuate any such succession and may make other arrangements
      with
      respect to the servicing to be conducted hereunder which are not inconsistent
      herewith. The Master Servicer shall cooperate with the Trustee and any successor
      master servicer in effecting the termination of the Master Servicer’s
      responsibilities and rights hereunder including, without limitation, notifying
      Mortgagors of the assignment of the master servicing functions and providing
      the
      Trustee and successor master servicer, as applicable, all documents and records
      in electronic or other form reasonably requested by it to enable it to assume
      the Master Servicer’s functions hereunder and the transfer to the Trustee or
      successor master servicer, as applicable, all amounts which shall at the time
      be
      or should have been deposited by the Master Servicer in the Collection Account
      and any other account or fund maintained with respect to the Certificates or
      thereafter be received with respect to the Mortgage Loans. Neither the Trustee
      nor any other successor master servicer shall be deemed to be in default
      hereunder by reason of any failure to make, or any delay in making, any
      distribution hereunder or any portion thereof caused by (i) the failure of
      the
      Master Servicer to deliver, or any delay in delivering, cash, documents or
      records to it, (ii) the failure of the Master Servicer to cooperate as required
      by this Agreement, (iii) the failure of the Master Servicer to deliver the
      Mortgage Loan data to the Trustee or such successor master servicer as required
      by this Agreement or (iv) restrictions imposed by any regulatory authority
      having jurisdiction over the Master Servicer. No successor master servicer
      shall
      be deemed to be in default hereunder by reason of any failure to make, or any
      delay in making, any distribution hereunder or any portion thereof caused by
      (i)
      the failure of the terminated Master Servicer to deliver, or any delay in
      delivering cash, documents or records to it, or (ii) the failure of the
      terminated Master Servicer to cooperate as required by this
      Agreement.

     

    
      
        
        

      

      
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    Section
      6.15 Additional
      Remedies of Trustee Upon Event of Default.

     

    During
      the continuance of any Event of Default, so long as such Event of Default shall
      not have been remedied, the Trustee, in addition to the rights specified in
      Section 6.14, shall have the right, in its own name and as trustee of an express
      trust, to take all actions now or hereafter existing at law, in equity or by
      statute to enforce its rights and remedies and to protect the interests, and
      enforce the rights and remedies, of any NIMS Insurer and the Certificateholders
      (including the institution and prosecution of all judicial, administrative
      and
      other proceedings and the filings of proofs of claim and debt in connection
      therewith). Except as otherwise expressly provided in this Agreement, no remedy
      provided for by this Agreement shall be exclusive of any other remedy, and
      each
      and every remedy shall be cumulative and in addition to any other remedy, and
      no
      delay or omission to exercise any right or remedy shall impair any such right
      or
      remedy or shall be deemed to be a waiver of any Event of Default.

     

    Section
      6.16 Waiver
      of Defaults.

     

    More
      than
      50% of the Aggregate Voting Interests of Certificateholders (with the consent
      of
      any NIMS Insurer) may waive any default or Event of Default by the Master
      Servicer in the performance of its obligations hereunder, except that a default
      in the making of any required deposit to the Certificate Account that would
      result in a failure of the Trustee to make any required payment of principal
      of
      or interest on the Certificates may only be waived with the consent of 100%
      of
      the affected Certificateholders and with the consent of any NIMS Insurer. Upon
      any such waiver of a past default, such default shall cease to exist, and any
      Event of Default arising therefrom shall be deemed to have been remedied for
      every purpose of this Agreement. No such waiver shall extend to any subsequent
      or other default or impair any right consequent thereon except to the extent
      expressly so waived.

     

    
      
        
        

      

      
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    Section
      6.17 Notification
      to Holders.

     

    Upon
      termination of the Master Servicer or appointment of a successor to the Master
      Servicer, in each case as provided herein, the Trustee shall promptly mail
      notice thereof by first class mail to the Certificateholders at their respective
      addresses appearing on the Certificate Register and any NIMS Insurer. The
      Trustee shall also, within 45 days after the occurrence of any Event of Default
      known to a Responsible Officer of the Trustee, give written notice thereof
      to
      any NIMS Insurer and the Certificateholders, unless such Event of Default shall
      have been cured or waived prior to the issuance of such notice and within such
      45 day period.

     

    Section
      6.18 Directions
      by Certificateholders and Duties of Trustee During Event of
      Default.

     

    Subject
      to the provisions of Section 8.01 hereof, during the continuance of any Event
      of
      Default, Holders of Certificates evidencing not less than 25% of the Class
      Principal Amount (or Percentage Interest) of each Class of Certificates affected
      thereby may, with the consent of any NIMS Insurer, direct the time, method
      and
      place of conducting any proceeding for any remedy available to the Trustee,
      or
      exercising any trust or power conferred upon the Trustee, under this Agreement;
      provided, however, that the Trustee shall be under no obligation to pursue
      any
      such remedy, or to exercise any of the trusts or powers vested in it by this
      Agreement (including, without limitation, (i) the conducting or defending of
      any
      administrative action or litigation hereunder or in relation hereto and (ii)
      the
      terminating of the Master Servicer or any successor master servicer from its
      rights and duties as master servicer hereunder) at the request, order or
      direction of any of the Certificateholders, or any NIMS Insurer, unless such
      Certificateholders, or any NIMS Insurer, shall have offered to the Trustee
      reasonable security or indemnity against the cost, expenses and liabilities
      which may be incurred therein or thereby; and, provided further, that, subject
      to the provisions of Section 8.01, the Trustee shall have the right to decline
      to follow any such direction if the Trustee, in accordance with an Opinion
      of
      Counsel, determines that the action or proceeding so directed may not lawfully
      be taken or if the Trustee in good faith determines that the action or
      proceeding so directed would involve it in personal liability for which it
      is
      not indemnified to its satisfaction or be unjustly prejudicial to the non
      assenting Certificateholders.

     

    Section
      6.19 Action
      Upon Certain Failures of the Master Servicer and Upon Event of
      Default.

     

    In
      the
      event that a Responsible Officer of the Trustee shall have actual knowledge
      of
      any action or inaction of the Master Servicer that would become an Event of
      Default upon the Master Servicer’s failure to remedy the same after notice, the
      Trustee shall give notice thereof to the Master Servicer. For all purposes
      of
      this Agreement, in the absence of actual knowledge by a Responsible Officer
      of
      the Trustee, the Trustee shall not be deemed to have knowledge of any failure
      of
      the Master Servicer or any other Event of Default unless notified in writing
      by
      the Depositor, the Master Servicer or the Certificateholders.

     

    
      
        
        

      

      
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    Section
      6.20 Preparation
      of Tax Returns and Other Reports.

     

    (a) The
      Trustee shall prepare or cause to be prepared on behalf of the Trust Fund,
      based
      upon information calculated in accordance with this Agreement pursuant to
      instructions given by the Depositor, and the Trustee shall file federal tax
      returns, all in accordance with Article X hereof. The Trustee shall prepare
      and
      file required state income tax returns and such other returns as may be required
      by applicable law relating to the Trust Fund, and, if required by state law,
      and
      shall file any other documents to the extent required by applicable state tax
      law (to the extent such documents are in the Trustee’s possession). The Trustee
      shall forward copies to the Depositor of all such returns and Form 1099
      supplemental tax information and such other information within the control
      of
      the Trustee as the Depositor may reasonably request in writing, and shall
      distribute to each Certificateholder such forms and furnish such information
      within the control of the Trustee as are required by the Code and the REMIC
      Provisions to be furnished to them, and will prepare and distribute to
      Certificateholders Form 1099 (supplemental tax information) (or otherwise
      furnish information within the control of the Trustee) to the extent required
      by
      applicable law. The Master Servicer shall indemnify the Trustee for any
      liability of or assessment against the Trustee arising out of or based upon
      any
      error in any of such tax or information returns arising out of or based upon
      errors in the information provided by such Master Servicer.

     

    (b) The
      Trustee shall prepare and file with the Internal Revenue Service (“IRS”), on
      behalf of each REMIC created hereby, an application on IRS Form SS-4. The
      Trustee, upon receipt from the IRS of the Notice of Taxpayer Identification
      Number Assigned for each REMIC, shall promptly forward copies of such notices
      to
      the Master Servicer and the Depositor. The Trustee will file an IRS Form 8811
      for all REMICs created hereunder. The Trustee shall have no obligation to verify
      the information in any Form 8811 or Form SS-4 filing.

     

    (c) Reports
      Filed on Form 10-D.

     

    (i) Within
      15
      days after each Distribution Date (or, if applicable, within such shorter period
      of time as is required under the rules of the Commission as in effect from
      time
      to time (the “Rules”)) during each year in which the Trust Fund is subject to
      Exchange Act reporting requirements, the Trustee shall prepare and file on
      behalf of the Trust Fund any Form 10-D required by the Exchange Act, in form
      and
      substance as required by the Exchange Act. The Trustee shall file each Form
      10-D
      with a copy of the related Distribution Date Statement attached thereto. Any
      disclosure in addition to the Distribution Date Statement that is required
      to be
      included on Form 10-D (“Additional Form 10-D Disclosure”) shall be determined
      and prepared by and at the direction of the Depositor pursuant to the following
      paragraph and the Trustee will have no duty or liability for any failure
      hereunder to determine or prepare any Additional Form 10-D Disclosure, except
      as
      set forth in the next paragraph.

     

    (ii) As
      set
      forth on Exhibit Q-1 hereto, within five calendar days after the related
      Distribution Date, (A) certain parties to the Lehman XS Trust Mortgage
      Pass-Through Certificates, Series 2006-16N transaction shall be required to
      provide to the Trustee, to the extent known by a Responsible Officer thereof,
      in
      EDGAR-compatible form (which may be Word or Excel documents easily convertible
      to EDGAR format), or in such other form as otherwise agreed upon by the Trustee
      and such party, the form and substance of any Additional Form 10-D Disclosure,
      if applicable, and included with such Additional Form 10-D Disclosure, an
      Additional Disclosure Notification in the form attached hereto as Exhibit Q-4,
      (B) the Trustee shall forward to the Depositor, the form and substance of the
      Additional Form 10-D Disclosure, and (C) the Depositor will approve, as to
      form
      and substance, or disapprove, as the case may be, the inclusion of the
      Additional Form 10-D Disclosure on Form 10-D. The Sponsor will be responsible
      for any reasonable fees and expenses assessed or incurred by the Trustee in
      connection with including any Additional Form 10-D Disclosure on Form 10-D
      pursuant to this paragraph.

     

    
      
        
        

      

      
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    (iii) After
      preparing the Form 10-D, the Trustee shall forward electronically a draft copy
      of the Form 10-D to the Exchange Act Signing Party for review and approval.
      If
      the Master Servicer is the Exchange Act Signing Party and the Form 10-D includes
      Additional Form 10-D Disclosure, then the Form 10-D shall also be electronically
      distributed to the Depositor for review and approval. No later than two Business
      Days prior to the 15th calendar day after the related Distribution Date, a
      senior officer of the Exchange Act Signing Party shall sign the Form 10-D and
      return an electronic or fax copy of such signed Form 10-D (with an original
      executed hard copy to follow by overnight mail) to the Trustee. If a Form 10-D
      cannot be filed on time or if a previously filed Form 10-D needs to be amended,
      the Trustee will follow the procedures set forth in subsection (f)(ii) of this
      Section 6.20. Promptly (but no later than one Business Day) after the deadline
      for filing such report with the Commission, the Trustee will make available
      on
      its internet website a final executed copy of each Form 10-D. Each party to
      this
      Agreement acknowledges that the performance by the Trustee of its duties under
      this Section 6.20(c) related to the timely preparation and filing of Form 10-D
      is contingent upon such parties strictly observing all applicable deadlines
      in
      the performance of their duties under this Section 6.20(c). The Trustee shall
      have no liability for any loss, expense, damage, claim arising out of or with
      respect to any failure to properly prepare and/or timely file such Form 10-D,
      where such failure results from the Trustee’s inability or failure to obtain or
      receive, on a timely basis, any information from any other party hereto needed
      to prepare, arrange for execution or file such Form 10-D, not resulting from
      its
      own negligence, bad faith or willful misconduct.

     

    (d) Reports
      Filed on Form 10-K.

     

    (i) Unless
      and until a Form 15 suspension notice shall have been filed, on or prior to
      March 31 after the end of each fiscal year of the Trust Fund or such earlier
      date as may be required by the Exchange Act (the “10-K Filing Deadline”) (it
      being understood that the fiscal year for the Trust Fund ends on December 31st
      of each year), commencing in March 2007, the Trustee shall prepare and file
      on
      behalf of the Trust Fund a Form 10-K, in form and substance as required by
      the
      Exchange Act. To facilitate the Trustee’s preparation of the Form 10-K, the
      Depositor shall provide to the Trustee, no later than 30 days prior to the
      10-K
      Filing Deadline, a template of the Form 10-K in an Edgar-compatible format.
      Each
      such Form 10-K shall include the following items, in each case to the extent
      they have been delivered to the Trustee within the applicable time frames set
      forth in this Agreement and in the Servicing Agreement and the Custodial
      Agreement, (A) an annual compliance statement for the Servicer, each Additional
      Servicer and the Master Servicer, as described under Section 9.26 hereof and
      in
      the Servicing Agreement, (B)(I) the annual reports on assessment of compliance
      with servicing criteria for the Servicer, the Custodian, each Additional
      Servicer, the Master Servicer, any Servicing Function Participant, the Paying
      Agent (if other than the Trustee) and the Trustee (each, a “Reporting
      Servicer”), as described under Section 9.25(a) hereof and in the Servicing
      Agreement and Custodial Agreement, and (II) if any Reporting Servicer’s report
      on assessment of compliance with servicing criteria described under Section
      9.25(a) hereof or in the Servicing Agreement or Custodial Agreement identifies
      any material instance of noncompliance, disclosure identifying such instance
      of
      noncompliance, or if any Reporting Servicer’s report on assessment of compliance
      with servicing criteria described under Section 9.25(a) hereof or in the
      Servicing Agreement or Custodial Agreement is not included as an exhibit to
      such
      Form 10-K, disclosure that such report is not included and an explanation why
      such report is not included, (C)(I) the registered public accounting firm
      attestation report for each Reporting Servicer, as described under Section
      9.25(b) hereof and in the Servicing Agreement and Custodial Agreement and (II)
      if any registered public accounting firm attestation report described under
      Section 9.25(b) hereof or in the Servicing Agreement or Custodial Agreement
      identifies any material instance of noncompliance, disclosure identifying such
      instance of noncompliance, or if any such registered public accounting firm
      attestation report is not included as an exhibit to such Form 10-K, disclosure
      that such report is not included and an explanation why such report is not
      included, and (D) a Sarbanes-Oxley Certification. Any disclosure or information
      in addition to (A) through (D) above that is required to be included on Form
      10-K (“Additional Form 10-K Disclosure”) shall be determined and prepared by and
      at the direction of the Depositor pursuant to the following paragraph and the
      Trustee will have no duty or liability for any failure hereunder to determine
      or
      prepare any Additional Form 10-K Disclosure, except as set forth in the next
      paragraph.

     

    
      
        
        

      

      
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    (ii) As
      set
      forth on Exhibit Q-2 hereto, no later than March 15 of each year that the Trust
      Fund is subject to the Exchange Act reporting requirements, commencing in 2007,
      (A) certain parties to the Lehman XS Trust Mortgage Pass-Through Certificates,
      Series 2006-16N transaction shall be required to provide to the Trustee, to
      the
      extent known by a Responsible Officer thereof, in EDGAR-compatible form (which
      may be Word or Excel documents easily convertible to EDGAR format), or in such
      other form as otherwise agreed upon by the Trustee and such party, the form
      and
      substance of any Additional Form 10-K Disclosure, if applicable, and include
      with such Additional Form 10-K Disclosure, an Additional Disclosure Notification
      in the form attached hereto as Exhibit Q-4, (B) the Trustee shall forward to
      the
      Depositor, the form and substance of the Additional Form 10-K Disclosure, and
      (C) the Depositor will approve, as to form and substance, or disapprove, as
      the
      case may be, the inclusion of the Additional Form 10-K Disclosure on Form 10-K.
      The Trustee has no duty under this Agreement to monitor or enforce the
      performance by the parties listed on Exhibit Q-2 of their duties under this
      paragraph or proactively solicit or procure from such parties any Form 10-K
      Disclosure Information. The Sponsor will be responsible for any reasonable
      fees
      and expenses assessed or incurred by the Trustee in connection with including
      any Additional Form 10-K Disclosure on Form 10-K pursuant to this
      paragraph.

     

    (iii) After
      preparing the Form 10-K, the Trustee shall forward electronically a draft copy
      of the Form 10-K to the Exchange Act Signing Party for review and approval.
      If
      the Master Servicer is the Exchange Act Signing Party and the Form 10-K includes
      Additional Form 10-K Disclosure, then the Form 10-K shall also be electronically
      distributed to the Depositor for review and approval. No later than the close
      of
      business New York City time on the 4th Business Day prior to the 10-K Filing
      Deadline, a senior officer of the Exchange Act Signing Party shall sign the
      Form
      10-K and return an electronic or fax copy of such signed Form 10-K (with an
      original executed hard copy to follow by overnight mail) to the Trustee. If
      a
      Form 10-K cannot be filed on time or if a previously filed Form 10-K needs
      to be
      amended, the Trustee will follow the procedures set forth in subsection (f)
      of
      this Section 6.20. Promptly (but no later than one Business Day) after the
      deadline for filing such report with the Commission, the Trustee will make
      available on its internet website a final executed copy of each Form 10-K.
      The
      parties to this Agreement acknowledge that the performance by the Trustee of
      its
      duties under this Section 6.20(d) related to the timely preparation and filing
      of Form 10-K is contingent upon such parties (and any Additional Servicer or
      Servicing Function Participant) strictly observing all applicable deadlines
      in
      the performance of their duties under this Section 6.20(d), Section 9.25(a),
      Section 9.25(b) and Section 9.26. The Trustee shall have no liability for any
      loss, expense, damage, claim arising out of or with respect to any failure
      to
      properly prepare and/or timely file such Form 10-K, where such failure results
      from the Trustee’s inability or failure to obtain or receive, on a timely basis,
      any information from any other party hereto needed to prepare, arrange for
      execution or file such Form 10-K, not resulting from its own negligence, bad
      faith or willful misconduct.

     

    
      
        
        

      

      
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    (iv) Each
      Form
      10-K shall include the Sarbanes-Oxley Certification. The Trustee, the Paying
      Agent and, if the Depositor is the Exchange Act Signing Party, the Master
      Servicer, shall, and the Trustee, the Paying Agent and the Master Servicer
      (if
      applicable) shall cause any Servicing Function Participant engaged by it to,
      provide to the Person who signs the Sarbanes-Oxley Certification (the
“Certifying Person”), by March 15 of each year in which the Trust Fund is
      subject to the reporting requirements of the Exchange Act (each, a “Back-Up
      Certification”), in the form attached hereto as Exhibit T (or, in the case of
      (x) the Paying Agent (if other than the Trustee), such other form as agreed
      to
      between the Paying Agent and the Exchange Act Signing Party, and (y) the
      Trustee, the form attached hereto as Exhibit U), upon which the Certifying
      Person, the entity for which the Certifying Person acts as an officer, and
      such
      entity’s officers, directors and Affiliates (collectively with the Certifying
      Person, “Certification Parties”) can reasonably rely. The senior officer of the
      Exchange Act Signing Party shall serve as the Certifying Person on behalf of
      the
      Trust Fund. In the event the Master Servicer, the Trustee, the Paying Agent
      or
      any Servicing Function Participant engaged by such parties is terminated or
      resigns pursuant to the terms of this Agreement, such party or Servicing
      Function Participant shall provide a Back-Up Certification to the Certifying
      Person pursuant to this Section 6.20(d)(iv) with respect to the period of time
      it was subject to this Agreement.

     

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

     

    (e) Reports
      Filed on Form 8-K.

     

    (i) During
      any year in which the Trust Fund is subject to Exchange Act reports, within
      four
      Business Days after the occurrence of an event requiring disclosure on Form
      8-K
      (each such event, a “Reportable Event”) or such later date as may be required by
      the Commission, and if requested by the Depositor, the Trustee shall prepare
      and
      file on behalf of the Trust Fund any Form 8-K, as required by the Exchange
      Act;
      provided that the Depositor shall file the initial Form 8-K in connection with
      the issuance of the Certificates. Any disclosure or information related to
      a
      Reportable Event or that is otherwise required to be included on Form 8-K (“Form
      8-K Disclosure Information”) shall be determined and prepared by and at the
      direction of the Depositor pursuant to the following paragraphs and the Trustee
      will have no duty or liability for any failure hereunder to determine or prepare
      any Form 8-K Disclosure Information or any Form 8-K, except as set forth in
      the
      next paragraph.

     

    
      
        
        

      

      
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    (ii) As
      set
      forth on Exhibit Q-3 hereto, for so long as the Trust Fund is subject to the
      Exchange Act reporting requirements, no later than Noon New York City time
      on
      the 2nd Business Day after the occurrence of a Reportable Event (A) certain
      parties to the Lehman XS Trust Mortgage Pass-Through Certificates, Series
      2006-16N transaction shall be required to provide to the Trustee, to the extent
      known by a Responsible Officer thereof, in EDGAR-compatible form (which may
      be
      Word or Excel documents easily convertible to EDGAR format), or in such other
      form as otherwise agreed upon by the Trustee and such party, the form and
      substance of any Form 8-K Disclosure Information, if applicable, and include
      with such Form 8-K Disclosure Information, an Additional Disclosure Notification
      in the form attached hereto as Exhibit Q-4, (B) the Trustee shall forward to
      the
      Depositor, the form and substance of the Form 8-K Disclosure Information, and
      (C) the Depositor will approve, as to form and substance, or disapprove, as
      the
      case may be, the inclusion of the Form 8-K Disclosure Information. The Trustee
      has no duty under this Agreement to monitor or enforce the performance by the
      parties listed on Exhibit Q-3 of their duties under this paragraph or
      proactively solicit or procure from such parties any Form 8-K Disclosure
      Information. The Sponsor will be responsible for any reasonable fees and
      expenses assessed or incurred by the Trustee in connection with including any
      Form 8-K Disclosure Information on Form 8-K pursuant to this
      paragraph.

     

    (iii) After
      preparing the Form 8-K, the Trustee shall forward electronically, no later
      than
      Noon New York city time on the 3rd Business Day after the Reportable Event,
      a
      draft copy of the Form 8-K to the Exchange Act Signing Party for review and
      approval. If the Master Servicer is the Exchange Act Signing Party, then the
      Form 8-K shall also be electronically distributed to the Depositor for review
      and approval. No later than Noon New York City time on the 4th Business Day
      after the Reportable Event, a senior officer of the Exchange Act Signing Party
      shall sign the Form 8-K and return an electronic or fax copy of such signed
      Form
      8-K (with an original executed hard copy to follow by overnight mail) to the
      Trustee. If a Form 8-K cannot be filed on time or if a previously filed Form
      8-K
      needs to be amended, the Trustee will follow the procedures set forth in
      subsection (f) of this Section 6.20. Promptly (but no later than one Business
      Day) after the deadline for filing such form with the Commission, the Trustee
      will, make available on its internet website a final executed copy of each
      Form
      8-K. The parties to this Agreement acknowledge that the performance by the
      Trustee of its duties under this Section 6.20(e) related to the timely
      preparation and filing of Form 8-K is contingent upon such parties strictly
      observing all applicable deadlines in the performance of their duties under
      this
      Section 6.20(e). The Trustee shall have no liability for any loss, expense,
      damage or claim arising out of or with respect to any failure to properly
      prepare and/or timely file such Form 8-K, where such failure results from the
      Trustee’s inability or failure to obtain or receive, on a timely basis, any
      information from any other party hereto needed to prepare, arrange for execution
      or file such Form 8-K, not resulting from its own negligence, bad faith or
      willful misconduct.

     

    
      
        
        

      

      
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    (f) Delisting;
      Amendments; Late Filings.

     

    (i) Prior
      to
      January 30 of the first year in which the Trustee is able to do so under
      applicable law, unless otherwise directed by the Depositor, the Trustee shall
      prepare and file a Form 15 relating to the automatic suspension of reporting
      in
      respect of the Trust Fund under the Exchange Act.

     

    (ii) In
      the
      event that the Trustee becomes aware that it will be unable to timely file
      with
      the Commission all or any required portion of any Form 8-K, 10-D or 10-K
      required to be filed by this Agreement because required disclosure information
      was either not delivered to it or delivered to it after the delivery deadlines
      set forth in this Agreement or for any other reason, the Trustee will
      immediately notify the Depositor. In the case of Form 10-D and 10-K, the parties
      to this Agreement and the Servicer will cooperate to prepare and file a Form
      12b-25 and a 10-D/A and 10-K/A as applicable, pursuant to Rule 12b-25 of the
      Exchange Act. In the case of Form 8-K, the Trustee will, upon receipt of all
      required Form 8-K Disclosure Information and upon the approval and direction
      of
      the Depositor, include such disclosure information on the next Form 10-D. In
      the
      event that any previously filed Form 8-K, 10-D or 10-K needs to be amended,
      the
      Trustee will notify the Depositor and the Servicer and such parties will
      cooperate to prepare any necessary 8-K/A, 10-D/A or 10-K/A. Any Form 15, Form
      12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be signed by a senior
      officer of the Exchange Act Signing Party. The parties to this Agreement
      acknowledge that the performance by the Trustee of its duties under this Section
      6.20(f) related to the timely preparation and filing of Form 15, a Form 12b-25
      or any amendment to Form 8-K, 10-D or 10-K is contingent upon each such party
      performing its duties under this Section. The Trustee shall have no liability
      for any loss, expense, damage, claim arising out of or with respect to any
      failure to properly prepare and/or timely file any such Form 15, Form 12b-25
      or
      any amendments to Forms 8-K, 10-D or 10-K, where such failure results from
      the
      Trustee’s inability or failure to obtain or receive, on a timely basis, any
      information from any other party hereto needed to prepare, arrange for execution
      or file such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K,
      not resulting from its own negligence, bad faith or willful
      misconduct.

     

    (g) Any
      party
      that signs any Exchange Act report that the Trustee is required to file shall
      provide to the Trustee prompt notice of the execution of such Exchange Act
      report along with the name and contact information for the person signing such
      report and shall promptly deliver to the Trustee the original executed signature
      page for such report. In addition, each of the parties agrees to provide to
      the
      Trustee such additional information related to such party as the Trustee may
      reasonably request, including evidence of the authorization of the person
      signing any certification or statement, financial information and reports,
      and
      such other information related to such party or its performance
      hereunder.

     

    (h) The
      Depositor and the Master Servicer, by mutual agreement, shall determine which
      of
      the Depositor or the Master Servicer shall be the initial Exchange Act Signing
      Party. Upon such determination, the Depositor shall timely notify the Trustee,
      and such notice shall provide contact information for the Exchange Act Signing
      Party. If the Depositor and Master Servicer, at any time, mutually agree to
      change the identity of the Exchange Act Signing Party, the Depositor shall
      provide timely notice to the Trustee of any such change.

     

    
      
        
        

      

      
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    (i) The
      Trustee shall promptly send copies of each periodic report filed on Form 8-K,
      Form 10-D or other applicable form, each annual report on Form 10-K, and each
      Form 15 Suspension Notification, together in each case with the acceptance
      confirmation receipt from EDGAR, to McKee Nelson LLP and to the Depositor (i)
      by
      e-mail to the e-mail addresses provided in writing by each of McKee Nelson
      LLP
      and the Depositor, respectively and (ii) to McKee Nelson LLP at 1919 M Street,
      N.W., Washington, D.C. 20036, and to the Depositor at the address specified
      in
      Section 11.07, in each case to the attention of a designated contact specified
      by each of McKee Nelson LLP and the Depositor, respectively.

     

    Section
      6.21 Reporting
      Requirements of the Commission.

     

    Each
      of
      the parties hereto acknowledges and agrees that the purpose of Sections 6.01,
      6.20, 9.25(a) and 9.25(b) of this Agreement is to facilitate compliance by
      the
      Sponsor, the Master Servicer and the Depositor with the provisions of Regulation
      AB, as such may be amended or clarified from time to time. Therefore, each
      of
      the parties agrees that (a) the obligations of the parties hereunder shall
      be
      interpreted in such a manner as to accomplish compliance with Regulation AB,
      (b)
      the parties’ obligations hereunder will be supplemented and modified as
      necessary to be consistent with any such amendments, interpretive advice or
      guidance, convention or consensus among active participants in the asset-backed
      securities markets, advice of counsel, or otherwise in respect of the
      requirements of Regulation AB and (c) the parties shall comply with reasonable
      requests made by the Sponsor, the Depositor, the Master Servicer or the Trustee
      for delivery of additional or different information as the Sponsor, the
      Depositor, the Master Servicer or the Trustee may determine in good faith is
      necessary to comply with the provisions of Regulation AB, provided that such
      information is available without unreasonable effort or expense and within
      such
      timeframe as may be reasonably requested.

     

    Section
      6.22 Indemnification
      by the Trustee.

     

    The
      Trustee (including in its capacity as Paying Agent) agrees to indemnify the
      Depositor and the Master Servicer, and each of their respective directors,
      officers, employees and agents and the Trust Fund 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 Section 6.01 or any failure
      by
      the Trustee to deliver any assessment of compliance pursuant to Section 9.25(a).
      This indemnification shall survive the termination of this Agreement or the
      termination of the Trustee hereunder.

     

    ARTICLE
      VII.

     

    PURCHASE
      OF MORTGAGE LOANS AND

    TERMINATION
      OF THE TRUST FUND

     

    
      	
            	Section
              7.01	
              Purchase
                of Mortgage Loans; Termination of the Trust Fund Upon Purchase or
                Liquidation of Mortgage Loans.

            

    

     

    (a) The
      respective obligations and responsibilities of the Trustee and the Master
      Servicer created hereby (other than the obligation of the Trustee to make
      payments to Certificateholders as set forth in Section 7.02, the obligation
      of
      the Master Servicer to make a final remittance to the Trustee pursuant to
      Section 4.01, and the obligations of the Master Servicer to the Trustee pursuant
      to Sections 9.10 and 9.14) shall terminate on the earliest of (i) the final
      payment or other liquidation of the last Mortgage Loan remaining in the Trust
      Fund and the disposition of all REO Property, (ii) the sale of the property
      held
      by the Trust Fund in accordance with Section 7.01(b) and (iii) the Latest
      Possible Maturity Date; provided, however, that in no event shall the Trust
      Fund
      created hereby continue beyond the expiration of 21 years from the death of
      the
      last survivor of the descendants of Joseph P. Kennedy, the late Ambassador
      of
      the United States to the Court of St. James’s, living on the date hereof. Any
      termination of the Trust Fund shall be carried out in such a manner so that
      the
      termination of each REMIC included therein shall qualify as a “qualified
      liquidation” under the REMIC Provisions.

     

    
      
        
        

      

      
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    (b) On
      any
      Distribution Date occurring on or after the Initial Optional Termination Date,
      the Master Servicer, with the prior written consent of any NIMS Insurer and
      the
      Seller, which consent shall not be unreasonably withheld, has the option to
      cause each of REMIC 1 and REMIC 2 to adopt a plan of complete liquidation and
      to
      purchase the Mortgage Loans and any REO Property related to the Mortgage Pool
      (the “Pool Assets”) for a price equal to the Purchase Price, pursuant to Section
      7.03 hereof. Upon exercise of such option, the property of the Mortgage Pool
      shall be sold to the Master Servicer at a price (the “Purchase Price”) equal to
      the sum of (i) 100% of the unpaid principal balance of each Mortgage Loan on
      the
      day of such purchase plus interest accrued thereon at the Mortgage Rate with
      respect to such Mortgage Loan to the Due Date in the Collection Period
      immediately preceding the Distribution Date on which the proceeds of such sale
      will be distributed to the holders of the Certificates, (ii) the fair market
      value of any REO Property related to the Mortgage Loans and any other property
      related to the Mortgage Loans held by any REMIC, such fair market value to
      be
      determined by an independent appraiser or appraisers mutually agreed upon by
      the
      Master Servicer, any NIMS Insurer and the Trustee (reduced, in the case of
      REO
      Property, by (1) reasonably anticipated disposition costs and (2) any amount
      by
      which the fair market value as so reduced exceeds the outstanding principal
      balance of the related Mortgage Loan plus interest accrued thereon at the
      applicable Net Mortgage Rate to the date of such purchase) and (iii) any
      unreimbursed Servicing Advances and other amounts to be reimbursed pursuant
      to
      the immediately following sentence related to the Mortgage Loans; provided,
      however, if there are any NIM Securities outstanding, the Master Servicer may
      only exercise its option after receiving the prior written consent of the
      holders of such NIM Securities and, if such consent is given, the Purchase
      Price
      shall also include an amount equal to the sum of (1) any accrued interest on
      the
      NIM Securities related to the Mortgage Loans, (2) the unpaid principal balance
      of any such NIM Securities and (3) any other reimbursable expenses owed by
      the
      issuer of the NIM Securities (the “NIM Redemption Amount”). If the Master
      Servicer fails to exercise such right, the NIMS Insurer will have the option
      to
      direct the Master Servicer to exercise such option so long as it is insuring
      the
      NIMS Securities or it is owed any amounts in connection with its guaranty of
      the
      NIM Securities. Following receipt of such notice from the NIMS Insurer, the
      Master Servicer shall advise the NIMS Insurer whether it will exercise the
      option under this Section 7.01(b) for its own account and using its own funds,
      or whether it will exercise such option in its own name but for the NIMS
      Insurer's account and utilizing the NIMS Insurer's funds. If the Master Servicer
      exercises such option for the NIMS Insurer's account, the NIMS Insurer will
      remit the Purchase Price to the Master Servicer one Business Day prior to the
      day the Master Servicer is required to remit the Purchase Price to the Trustee.
      Following its receipt from the NIMS Insurer of the entire Purchase Price and
      its
      subsequent remittance to the Trustee of the entire Purchase Price, the Master
      Servicer will convey to the NIMS Insurer all of the rights it receives from
      the
      Trustee with respect to the related Mortgage Loans as a result of such
      remittance. The Master Servicer, the Servicer, the Trustee and the Custodian
      shall be reimbursed from the Purchase Price for any Mortgage Loan or related
      REO
      Property for any Advances made or other amounts advanced with respect to the
      Mortgage Loans that are reimbursable to any such entity under this Agreement,
      the related Servicing Agreement or the related Custodial Agreement, together
      with any accrued and unpaid compensation and any other amounts due to the Master
      Servicer or the Trustee hereunder or the applicable Servicer or the applicable
      Custodian, to the extent such amounts relate to the Mortgage Loans. Subject
      to
      Section 7.03, the Trustee shall distribute the assets of the Trust Fund on
      the
      Distribution Date on which the repurchase occurred. If the NIMS Insurer directs
      the Master Servicer to exercise such right as described above, then (i) the
      Master Servicer shall cause each REMIC to adopt a plan of complete liquidation
      as described above and (ii) the NIMS Insurer shall remit the Purchase Price
      in
      immediately available funds to the Master Servicer at least three Business
      Days
      prior to the applicable Distribution Date and, upon receipt of such funds from
      the NIMS Insurer, the Master Servicer shall promptly deposit such funds in
      the
      Collection Account. The NIMS Insurer shall be obligated to reimburse the Master
      Servicer and the Trustee for their reasonable out-of-pocket expenses incurred
      in
      connection with the purchase of the Mortgage Loans and REO Property related
      to
      the Mortgage Pool at the direction of the NIMS Insurer and shall indemnify
      and
      hold harmless the Master Servicer and the Trustee for any losses, liabilities
      or
      expenses resulting from any claims arising out of or based upon the Master
      Servicer’s or Trustee’s purchase of the Pool Assets at the direction of the NIMS
      Insurer at the direction of the NIMS Insurer, except to the extent such losses,
      liabilities or expenses arise out of or result from the Master Servicer’s or
      Trustee’s, as the case may be, negligence, bad faith or willful misconduct.
      Notwithstanding anything herein to the contrary, only an amount equal to the
      Purchase Price, shall be made available for distribution to the
      Certificates.

     

    
      
        
        

      

      
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    Section
      7.02 Procedure
      Upon Termination of Trust Fund.

     

    (a) Notice
      of
      any termination pursuant to the provisions of Section 7.01 (or the retirement
      of
      Certificates), specifying the Distribution Date upon which the final
      distribution shall be made, shall be given promptly by the Trustee by first
      class mail to the Certificateholders and any NIMS Insurer, mailed upon (x)
      no
      later than five Business Days after the Trustee has received notice from the
      Master Servicer of its intent to exercise its right to cause the termination
      of
      the Trust Fund pursuant to Section 7.01(b) (or the retirement of the
      Certificates ) or (y) upon final payment or other liquidation of the last
      Mortgage Loan or REO Property in the Trust Fund. Such notice shall specify
      (A)
      the Distribution Date upon which final distribution on the Certificates of
      all
      amounts required to be distributed to Certificateholders pursuant to Section
      5.02 will be made upon presentation and surrender of the related Certificates
      at
      the Corporate Trust Office, and (B) that the Record Date otherwise applicable
      to
      such Distribution Date is not applicable, distribution being made only upon
      presentation and surrender of the related Certificates at the office or agency
      of the Trustee therein specified. The Trustee shall give such notice to the
      Master Servicer and the Certificate Registrar at the time such notice is given
      to Holders of the related Certificates. Upon any termination pursuant to Section
      7.01(b), the duties of the Certificate Registrar with respect to the applicable
      Certificates shall terminate and the Trustee shall terminate or request the
      Master Servicer to terminate, the Collection Account it maintains, the
      Certificate Account and any other account or fund maintained with respect to
      the
      related Certificates, subject to the Trustee’s obligation hereunder to hold all
      amounts payable to Certificateholders in trust without interest pending such
      payment.

     

    
      
        
        

      

      
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    (b) In
      the
      event that all of the Holders do not surrender their Certificates for
      cancellation within three months after the time specified in the above mentioned
      written notice, the Trustee shall give a second written notice to the remaining
      Certificateholders to surrender their Certificates for cancellation and receive
      the final distribution with respect thereto. If within one year after the second
      notice any Certificates shall not have been surrendered for cancellation, the
      Trustee may take appropriate steps to contact the remaining Certificateholders
      concerning surrender of such Certificates, and the cost thereof shall be paid
      out of the amounts distributable to such Holders. If within two years after
      the
      second notice any Certificates shall not have been surrendered for cancellation,
      the Trustee shall, subject to applicable state law relating to escheatment,
      hold
      all amounts distributable to such Holders for the benefit of such Holders.
      No
      interest shall accrue on any amount held by the Trustee and not distributed
      to a
      Certificateholder due to such Certificateholder’s failure to surrender its
      Certificate(s) for payment of the final distribution thereon in accordance
      with
      this Section.

     

    (c) Any
      reasonable expenses incurred by the Trustee in connection with any termination
      or liquidation of the Trust Fund (or a Mortgage Pool thereof) shall be
      reimbursed from proceeds received from the liquidation of the related Mortgage
      Pool or Mortgage Pools.

     

    Section
      7.03 Additional
      Trust Fund Termination Requirements.

     

    Any
      sale
      pursuant to Section 7.01(b) shall be effected in accordance with the following
      additional requirements, unless the Trustee seeks (at the request of the party
      exercising the option to repurchase all of the Mortgage Loans pursuant to
      Section 7.01(b)), and subsequently receives, an Opinion of Counsel (at the
      expense of such requesting party), addressed to the Trustee and any NIMS Insurer
      to the effect that the failure of the Trust Fund to comply with the requirements
      of this Section 7.03 will not (I) result in the imposition of taxes on any
      REMIC
      under the REMIC Provisions or (II) cause any REMIC established hereunder to
      fail
      to qualify as a REMIC at any time that any Certificates are
      outstanding:

     

    (i) On
      the
      date specified for final payment of the Certificates, the Trustee shall make
      final distributions of principal and interest on the Certificates and, after
      payment of, or provision for any outstanding expenses, distribute or credit,
      or
      cause to be distributed or credited, to the Holders of the Residual Certificates
      all cash on hand after such final payment (other than cash retained to meet
      claims), and the Trust Fund (and each REMIC) shall terminate at that
      time;

     

    (ii) In
      the
      case of a sale of assets:

     

    (A) The
      Trustee shall sell all of the assets of the Mortgage Pool for cash and, within
      90 days of such sale, shall distribute the proceeds of such sale to the
      Certificateholders in complete liquidation of each REMIC; and

     

    (B) The
      Trustee shall attach a statement to the final Federal income tax return for
      each
      REMIC stating that pursuant to Treasury Regulation § 1.860F-1, the first
      day of the 90-day liquidation period for each such REMIC was the date on which
      the Trustee sold such assets.

     

    
      
        
        

      

      
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    Section
      7.04 Optional
      Purchase Right of NIMS Insurer.

     

    The
      NIMS
      Insurer may purchase any Distressed Mortgage Loan for a purchase price equal
      to
      the outstanding principal balance of such Mortgage Loan, plus accrued interest
      thereon to the date of repurchase plus any unreimbursed Advances, Servicing
      Advances, Servicing Fees or Trustee Fees and any unreimbursed expenses of the
      Trustee allocable to such Distressed Mortgage Loan. Any such purchase shall
      be
      accomplished by the NIM Insurer’s remittance of the purchase price for the
      Distressed Mortgage Loan to the Master Servicer for deposit into the Collection
      Account.

     

    Section
      7.05 Grantor
      Trust Termination.

     

    The
      Class
      1-A2A Grantor Trust, Class 1-A31 Grantor Trust and Class 1-A32A1 Grantor Trust
      will terminate on the earlier of the date on which the Class Principal Amount
      of
      the related Grantor Trust Certificate is reduced to zero and the termination
      of
      this Agreement.

     

    ARTICLE
      VIII.

     

    RIGHTS
      OF
      CERTIFICATEHOLDERS

     

    Section
      8.01 Limitation
      on Rights of Holders.

     

    (a) The
      death
      or incapacity of any Certificateholder shall not operate to terminate this
      Agreement or this Trust Fund, nor entitle such Certificateholder’s legal
      representatives or heirs to claim an accounting or take any action or proceeding
      in any court for a partition or winding up of this Trust Fund, nor otherwise
      affect the rights, obligations and liabilities of the parties hereto or any
      of
      them. Except as otherwise expressly provided herein, no Certificateholder,
      solely by virtue of its status as a Certificateholder, shall have any right
      to
      vote or in any manner otherwise control the Master Servicer or the operation
      and
      management of the Trust Fund, or the obligations of the parties hereto, nor
      shall anything herein set forth, or contained in the terms of the Certificates,
      be construed so as to constitute the Certificateholders from time to time as
      partners or members of an association, nor shall any Certificateholder be under
      any liability to any third person by reason of any action taken by the parties
      to this Agreement pursuant to any provision hereof.

     

    (b) No
      Certificateholder, solely by virtue of its status as Certificateholder, shall
      have any right by virtue or by availing of any provision of this Agreement
      to
      institute any suit, action or proceeding in equity or at law upon or under
      or
      with respect to this Agreement, unless such Holder previously shall have given
      to the Trustee a written notice of an Event of Default and of the continuance
      thereof, as hereinbefore provided, and unless also the Holders of Certificates
      evidencing not less than 25% of the Class Principal Amount or Class Notional
      Amount (or Percentage Interest) of Certificates of each Class affected thereby
      shall have made written request upon the Trustee to institute such action,
      suit
      or proceeding in its own name as Trustee hereunder and shall have offered to
      the
      Trustee such reasonable indemnity as it may require against the cost, expenses
      and liabilities to be incurred therein or thereby, and the Trustee, for sixty
      days after its receipt of such notice, request and offer of indemnity, shall
      have neglected or refused to institute any such action, suit or proceeding
      and
      no direction inconsistent with such written request has been given such Trustee
      during such sixty day period by such Certificateholders; it being understood
      and
      intended, and being expressly covenanted by each Certificateholder with every
      other Certificateholder and the Trustee, that no one or more Holders of
      Certificates shall have any right in any manner whatever by virtue or by
      availing of any provision of this Agreement to affect, disturb or prejudice
      the
      rights of the Holders of any other of such Certificates, or to obtain or seek
      to
      obtain priority over or preference to any other such Holder, or to enforce
      any
      right under this Agreement, except in the manner herein provided and for the
      benefit of all Certificateholders. For the protection and enforcement of the
      provisions of this Section, each and every Certificateholder and the Trustee
      shall be entitled to such relief as can be given either at law or in
      equity.

     

    
      
        
        

      

      
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    Section
      8.02 Access
      to List of Holders.

     

    (a) If
      the
      Trustee is not acting as Certificate Registrar, the Certificate Registrar will
      furnish or cause to be furnished to the Trustee, within fifteen days after
      receipt by the Certificate Registrar of a request by the Trustee in writing,
      a
      list, in such form as the Trustee may reasonably require, of the names and
      addresses of the Certificateholders of each Class as of the most recent Record
      Date.

     

    (b) If
      three
      or more Holders or Certificate Owners (hereinafter referred to as “Applicants”)
      apply in writing to the Trustee, and such application states that the Applicants
      desire to communicate with other Holders with respect to their rights under
      this
      Agreement or under the Certificates and is accompanied by a copy of the
      communication which such Applicants propose to transmit, then the Trustee shall,
      within five Business Days after the receipt of such application, afford such
      Applicants reasonable access during the normal business hours of the Trustee
      to
      the most recent list of Certificateholders held by the Trustee or shall, as
      an
      alternative, send, at the Applicants’ expense, the written communication
      proffered by the Applicants to all Certificateholders at their addresses as
      they
      appear in the Certificate Register.

     

    (c) Every
      Holder or Certificate Owner, if the Holder is a Clearing Agency, by receiving
      and holding a Certificate, agrees with the Depositor, the Master Servicer,
      the
      Certificate Registrar and the Trustee, that none of the Depositor, the Master
      Servicer, the Certificate Registrar, the Paying Agent or the Trustee shall
      be
      held accountable by reason of the disclosure of any such information as to
      the
      names and addresses of the Certificateholders hereunder, regardless of the
      source from which such information was derived.

     

    Section
      8.03 Acts
      of Holders of Certificates.

     

    (a) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Agreement to be given or taken by Holders or Certificate
      Owner, if the Holder is a Clearing Agency, may be embodied in and evidenced
      by
      one or more instruments of substantially similar tenor signed by such Holders
      in
      person or by agent 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 Trustee, the Certificate Registrar and the
      Paying Agent and, where expressly required herein, to the Master Servicer.
      Such
      instrument or instruments (as the action embodies therein and evidenced thereby)
      are herein sometimes referred to as an “Act” of the Holders signing such
      instrument or instruments. Proof of execution of any such instrument or of
      a
      writing appointing any such agents shall be sufficient for any purpose of this
      Agreement and conclusive in favor of the Trustee and the Master Servicer, if
      made in the manner provided in this Section. Each of the Trustee and the Master
      Servicer shall promptly notify the other of receipt of any such instrument by
      it, and shall promptly forward a copy of such instrument to the
      other.

     

    
      
        
        

      

      
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    (b) The
      fact
      and date of the execution by any Person of any such instrument or writing may
      be
      proved by the affidavit of a witness of such execution or by the certificate
      of
      any notary public or other officer authorized by law to take acknowledgments
      or
      deeds, certifying that the individual signing such instrument or writing
      acknowledged to him the execution thereof. Whenever such execution is by an
      officer of a corporation or a member of a partnership on behalf of such
      corporation or partnership, such certificate or affidavit shall also constitute
      sufficient proof of his authority. The fact and date of the execution of any
      such instrument or writing, or the authority of the individual executing the
      same, may also be proved in any other manner which the Trustee deems
      sufficient.

     

    (c) The
      ownership of Certificates (whether or not such Certificates shall be overdue
      and
      notwithstanding any notation of ownership or other writing thereon made by
      anyone other than the Trustee) shall be proved by the Certificate Register,
      and
      none of the Trustee, the Master Servicer, the Paying Agent or the Depositor
      shall be affected by any notice to the contrary.

     

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

     

    ARTICLE
      IX.

     

    ADMINISTRATION
      AND SERVICING OF MORTGAGE LOANS

    BY
      THE
      MASTER SERVICER

     

    Section
      9.01 Duties
      of the Master Servicer.

     

    The
      Certificateholders, by their purchase and acceptance of the Certificates,
      appoint Aurora Loan Services LLC, as Master Servicer. For and on behalf of
      the
      Depositor, the Trustee and the Certificateholders, the Master Servicer shall
      master service the Mortgage Loans in accordance with the provisions of this
      Agreement and the provisions of the Servicing Agreements.

     

    Section
      9.02 Master
      Servicer Fidelity Bond and Master Servicer Errors and Omissions Insurance
      Policy.

     

    (a) The
      Master Servicer, at its expense, shall maintain in effect a Master Servicer
      Fidelity Bond and a Master Servicer Errors and Omissions Insurance Policy,
      affording coverage with respect to all directors, officers, employees and other
      Persons acting on such Master Servicer’s behalf, and covering errors and
      omissions in the performance of the Master Servicer’s obligations hereunder. The
      Master Servicer Errors and Omissions Insurance Policy and the Master Servicer
      Fidelity Bond shall be in such form and amount that would meet the requirements
      of Fannie Mae or Freddie Mac if it were the purchaser of the Mortgage Loans,
      and
      if the Master Servicer receives notice that such policy is or shall be
      cancelled, it shall immediately notify the NIMS Insurer. The Master Servicer
      shall provide the Trustee and any NIMS Insurer upon request, with a copy of
      such
      policy and fidelity bond. The Master Servicer shall (i) require each Servicer
      to
      maintain an Errors and Omissions Insurance Policy and the Servicer Fidelity
      Bond
      in accordance with the provisions of the applicable Servicing Agreement, (ii)
      cause each Servicer to provide to the Master Servicer certificates evidencing
      that such policy and bond is in effect and to furnish to the Master Servicer
      any
      notice of cancellation, non-renewal or modification of the policy or bond
      received by it, as and to the extent provided in the applicable Servicing
      Agreement, and (iii) furnish copies of such policies and of the certificates
      and
      notices referred to in clause (ii) to the Trustee upon request. The Fidelity
      Bond and Errors and Omissions Insurance Policy may be obtained and maintained
      in
      blanket form.

     

    
      
        
        

      

      
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    (b) The
      Master Servicer shall promptly report to the Trustee any material changes that
      may occur in the Master Servicer Fidelity Bond or the Master Servicer Errors
      and
      Omissions Insurance Policy and shall furnish to the Trustee, on request,
      certificates evidencing that such bond and insurance policy are in full force
      and effect. The Master Servicer shall promptly report to the Trustee all cases
      of embezzlement or fraud, if such events involve funds relating to the Mortgage
      Loans. The total losses, regardless of whether claims are filed with the
      applicable insurer or surety, shall be disclosed in such reports together with
      the amount of such losses covered by insurance. If a bond or insurance claim
      report is filed with any of such bonding companies or insurers, the Master
      Servicer shall promptly furnish a copy of such report to the Trustee. Any
      amounts relating to the Mortgage Loans collected by the Master Servicer under
      any such bond or policy shall be promptly remitted by the Master Servicer to
      the
      Trustee for deposit into the Certificate Account. Any amounts relating to the
      Mortgage Loans collected by a Servicer under any such bond or policy shall
      be
      remitted to the Master Servicer to the extent provided in the applicable
      Servicing Agreement.

     

    Section
      9.03 Master
      Servicer’s Financial Statements and Related Information.

     

    For
      each
      year this Agreement is in effect, the Master Servicer shall submit to the
      Trustee, each Rating Agency, any NIMS Insurer, and the Depositor a copy of
      its
      annual unaudited financial statements on or prior to March 15 of each year,
      beginning March 15, 2007. Such financial statements shall include a balance
      sheet, income statement, statement of retained earnings, statement of additional
      paid in capital, statement of changes in financial position and all related
      notes and schedules and shall be in comparative form, certified by a nationally
      recognized firm of Independent Accountants to the effect that such statements
      were examined and prepared in accordance with generally accepted accounting
      principles applied on a basis consistent with that of the preceding
      year.

     

    
      
        
        

      

      
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    Section
      9.04 Power
      to Act; Procedures.

     

    (a) The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority, subject to the REMIC Provisions and the provisions of
      Article X hereof, and each Servicer shall have full power and authority (to
      the
      extent provided in the applicable Servicing Agreement) to do any and all things
      that it may deem necessary or desirable in connection with the servicing and
      administration of the Mortgage Loans, including but not limited to the power
      and
      authority (i) to execute and deliver, on behalf of the Certificateholders and
      the Trustee, customary consents or waivers and other instruments and documents,
      (ii) to consent to transfers of any Mortgaged Property and assumptions of the
      Mortgage Notes and related Mortgages, (iii) to collect any Insurance Proceeds
      and Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion
      of the ownership of the Mortgaged Property securing any Mortgage Loan, in each
      case, in accordance with the provisions of this Agreement and the applicable
      Servicing Agreement, as applicable; provided that the Master Servicer shall
      not
      take, or knowingly permit any Servicer to take, any action that is inconsistent
      with or prejudices the interests of the Trust Fund or the Certificateholders
      in
      any Mortgage Loan or the rights and interests of the Depositor, the Trustee,
      or
      the Certificateholders under this Agreement. The Master Servicer further is
      authorized and empowered by the Trustee, on behalf of the Certificateholders
      and
      the Trustee, in its own name or in the name of any Servicer (to the extent
      permitted in the applicable Servicing Agreement), when the Master Servicer
      or a
      Servicer, as the case may be, believes it is appropriate in its best judgment
      to
      register any Mortgage Loan with MERS, or cause the removal from the registration
      of any Mortgage Loan on the MERS system, to execute and deliver, on behalf
      of
      the Trustee and the Certificateholders or any of them, any and all instruments
      of assignment and other comparable instruments with respect to such assignment
      or re-recording of a Mortgage in the name of MERS, solely as nominee for the
      Trustee and its successors and assigns. The Master Servicer shall represent
      and
      protect the interests of the Trust Fund in the same manner as it protects its
      own interests in mortgage loans in its own portfolio in any claim, proceeding
      or
      litigation regarding a Mortgage Loan and shall not make or knowingly permit
      any
      Servicer to make any modification, waiver or amendment of any term of any
      Mortgage Loan that would cause an Adverse REMIC Event. Without limiting the
      generality of the foregoing, the Master Servicer in its own name or in the
      name
      of a Servicer, and each Servicer, to the extent such authority is delegated
      to
      such Servicer under the applicable Servicing Agreement, is hereby authorized
      and
      empowered by the Trustee when the Master Servicer or a Servicer, as the case
      may
      be, believes it appropriate in its best judgment and in accordance with Accepted
      Servicing Practices and the applicable Servicing Agreement, to execute and
      deliver, on behalf of itself and the Certificateholders, the Trustee or any
      of
      them, any and all instruments of satisfaction or cancellation, or of partial
      or
      full release or discharge and all other comparable instruments, with respect
      to
      the Mortgage Loans and with respect to the Mortgaged Properties. The Trustee
      shall execute, upon request, any powers of attorney furnished to it by the
      Master Servicer empowering the Master Servicer or such Servicer to execute
      and
      deliver instruments of satisfaction or cancellation, or of partial or full
      release or discharge, and to foreclose upon or otherwise liquidate Mortgaged
      Property, and to appeal, prosecute or defend in any court action relating to
      the
      Mortgage Loans or the Mortgaged Property, in accordance with the applicable
      Servicing Agreement and this Agreement, and the Trustee shall execute and
      deliver such other documents, as the Master Servicer may request, necessary
      or
      appropriate to enable the Master Servicer to master service the Mortgage Loans
      and carry out its duties hereunder and to allow each Servicer to service the
      Mortgage Loans, in each case in accordance with Accepted Servicing Practices
      (and the Trustee shall have no liability for misuse of any such powers of
      attorney by the Master Servicer or the applicable Servicer). If the Master
      Servicer or the Trustee has been advised that it is likely that the laws of
      the
      state in which action is to be taken prohibit such action if taken in the name
      of the Trustee or that the Trustee would be adversely affected under the “doing
      business” or tax laws of such state if such action is taken in its name, then
      upon request of the Trustee the Master Servicer shall join with the Trustee
      in
      the appointment of a co trustee pursuant to Section 6.09 hereof. In the
      performance of its duties hereunder, the Master Servicer shall be an independent
      contractor and shall not, except in those instances where it is taking action
      in
      the name of the Trustee, be deemed to be the agent of the Trustee.
      Notwithstanding anything to the contrary, the Master Servicer shall not without
      the Trustee’s written consent: (i) initiate any action, suit or proceeding
      solely under the Trustee’s name without indicating the Master Servicer’s
      representative capacity or (ii) take any action with the intent to cause, and
      which actually does cause, the Trustee to be registered to do business in any
      state.

     

    
      
        
        

      

      
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    (b) In
      master
      servicing and administering the Mortgage Loans, the Master Servicer shall employ
      procedures, and shall exercise the same care that it customarily employs and
      exercises master servicing and administering loans for its own account, giving
      due consideration to Accepted Servicing Practices where such practices do not
      conflict with this Agreement. Consistent with the foregoing, the Master Servicer
      may, and may permit the Servicer to, in its discretion (i) waive any late
      payment charge (but not any Prepayment Premium, except as set forth below)
      and
      (ii) extend the due dates for payments due on a Mortgage Note for a period
      not
      greater than 120 days; provided, however, that the maturity of any Mortgage
      Loan
      shall not be extended past the date on which the final payment is due on the
      latest maturing Mortgage Loan as of the Cut-off Date. In the event of any
      extension described in clause (ii) above, the Master Servicer shall make or
      cause the applicable Servicer (if required by the related Servicing Agreement)
      to make Advances on the related Mortgage Loan in accordance with the provisions
      of Section 5.04 on the basis of the amortization schedule of such Mortgage
      Loan
      without modification thereof by reason of such extension. Notwithstanding
      anything to the contrary in this Agreement, the Master Servicer shall not make
      or knowingly permit any modification, waiver or amendment of any material term
      of any Mortgage Loan unless: (1) such Mortgage Loan is in default or default
      by
      the related Mortgagor is, in the reasonable judgment of the Master Servicer
      or
      the applicable Servicer, reasonably foreseeable, (2) in the case of a waiver
      of
      a Prepayment Premium if (a) such Mortgage Loan is in default or default by
      the
      related Mortgagor is, in the reasonable judgment of the Master Servicer or
      Servicer, reasonably foreseeable, and such waiver would maximize recovery of
      total proceeds taking into account the value of such Prepayment Premium and
      the
      related Mortgage Loan or (b) if the prepayment is not the result of a
      refinancing by the Servicer or any of its Affiliates and (i) such Mortgage
      Loan
      is in default or default by the related Mortgagor is, in the reasonable judgment
      of the Master Servicer or the applicable Servicer, reasonably foreseeable,
      and
      such waiver would maximize recovery of total proceeds taking into account the
      value of such Prepayment Premium and the related Mortgage Loan or (ii) the
      collection of the Prepayment Premium would be in violation of applicable laws
      or
      (iii) the collection of such Prepayment Premium would be considered “predatory”
pursuant to written guidance published or issued by any applicable federal,
      state or local regulatory authority acting in its official capacity and having
      jurisdiction over such matters, and (3) the Master Servicer shall have provided
      or caused to be provided to the Trustee an Opinion of Counsel addressed to
      the
      Trustee (which opinion shall, if provided by the Master Servicer, be an expense
      reimbursed from the Collection Account pursuant to Section 4.02(a)(v)) in
      writing to the effect that such modification, waiver or amendment would not
      cause an Adverse REMIC Event; provided, in no event shall an Opinion of Counsel
      be required for the waiver of a Prepayment Premium under clause (2)
      above.

     

    
      
        
        

      

      
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    Section
      9.05 Enforcement
      of Servicers’ and Master Servicer’s Obligations.

     

    (a) Each
      Servicing Agreement requires the applicable Servicer to service the Mortgage
      Loans in accordance with the provisions thereof. References in this Agreement
      to
      actions taken or to be taken by the Master Servicer include actions taken or
      to
      be taken by a Servicer on behalf of the Master Servicer. Any fees, costs,
      expenses and other amounts payable to such Servicer shall be deducted from
      amounts remitted to the Master Servicer by the Servicer to the extent permitted
      by the applicable Servicing Agreement and shall not be an obligation of the
      Trust Fund, the Trustee or the Master Servicer.

     

    (b) The
      Master Servicer shall not be required to (i) take any action with respect to
      the
      servicing of any Mortgage Loan that the applicable Servicer is not required
      to
      take under the related Servicing Agreement and (ii) cause a Servicer to take
      any
      action or refrain from taking any action if the related Servicing Agreement
      does
      not require such Servicer to take such action or refrain from taking such
      action; in both cases notwithstanding any provision of this Agreement that
      requires the Master Servicer to take such action or cause such Servicer to
      take
      such action.

     

    (c) The
      Master Servicer, for the benefit of the Trustee and the Certificateholders,
      shall use its reasonable best efforts to enforce the obligations of each
      Servicer under the related Servicing Agreement, and shall, upon obtaining actual
      knowledge of the failure of a Servicer to perform its obligations in accordance
      therewith, to the extent that such non-performance of such obligations would
      have a material adverse effect on a Mortgage Loan, the Trust Fund or the
      Certificateholders, terminate the rights and obligations of such Servicer
      thereunder and either act as servicer of the related Mortgage Loans or cause
      the
      other parties hereto to enter into a Servicing Agreement (and such parties
      hereby agree to execute and deliver any such successor Servicing Agreement),
      with a successor Servicer. Such enforcement, including, without limitation,
      the
      legal prosecution of claims, termination of Servicing Agreements and the pursuit
      of other appropriate remedies, shall be in such form and carried out to such
      an
      extent and at such time as the Master Servicer, in its good faith business
      judgment, would require were it the owner of the related Mortgage Loans. The
      Master Servicer shall pay the costs of such enforcement at its own expense,
      and
      shall be reimbursed therefor initially (i) from a general recovery resulting
      from such enforcement only to the extent, if any, that such recovery exceeds
      all
      amounts due in respect of the related Mortgage Loans, (ii) from a specific
      recovery of costs, expenses or attorneys’ fees against the party against whom
      such enforcement is directed, and then, (iii) to the extent that such amounts
      are insufficient to reimburse the Master Servicer for the costs of such
      enforcement, from the Collection Account.

     

    (d) The
      Master Servicer shall be entitled to conclusively rely on any certifications
      or
      other information provided by the Servicers under the terms of the applicable
      Servicing Agreement, in its preparation of any certifications, notifications,
      filings or reports, in accordance with the terms hereof or as may be required
      by
      applicable law or regulation.

     

    
      
        
        

      

      
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    Section
      9.06 Collection
      of Taxes, Assessments and Similar Items.

     

    (a) To
      the
      extent provided in the applicable Servicing Agreement, the Master Servicer
      shall
      cause each Servicer to establish and maintain one or more custodial accounts
      at
      a depository institution (which may be a depository institution with which
      the
      Master Servicer or the Servicer establishes accounts in the ordinary course
      of
      its servicing activities), the accounts of which are insured to the maximum
      extent permitted by the FDIC (each, an “Escrow Account”) and to deposit therein
      any collections of amounts received with respect to amounts due for taxes,
      assessments, water rates, Standard Hazard Insurance Policy premiums, Payaheads,
      if applicable, or any comparable items for the account of the Mortgagors.
      Withdrawals from any Escrow Account may be made (to the extent amounts have
      been
      escrowed for such purpose) only in accordance with the Servicing Agreements.
      Each Servicer shall be entitled to all investment income not required to be
      paid
      to Mortgagors on any Escrow Account maintained by such Servicer. The Master
      Servicer shall make (or cause to be made) to the extent provided in the
      applicable Servicing Agreement advances to the extent necessary in order to
      effect timely payment of taxes, water rates, assessments, Standard Hazard
      Insurance Policy premiums or comparable items in connection with the related
      Mortgage Loan (to the extent that the Mortgagor is required, but fails, to
      pay
      such items), provided that it or the applicable Servicer has determined that
      the
      funds so advanced are recoverable from escrow payments, reimbursement pursuant
      to Section 4.02 or otherwise.

     

    (b) Costs
      incurred by the Master Servicer or by the Servicers in effecting the timely
      payment of taxes and assessments on the properties subject to the Mortgage
      Loans
      may be added to the amount owing under the related Mortgage Note where the
      terms
      of the Mortgage Note so permit; provided, however, that the addition of any
      such
      cost shall not be taken into account for purposes of calculating the
      distributions to be made to Certificateholders. Such costs, to the extent that
      they are unanticipated, extraordinary costs, and not ordinary or routine costs
      shall be recoverable as a Servicing Advance by the Master Servicer pursuant
      to
      Section 4.02.

     

    Section
      9.07 Termination
      of Servicing Agreements; Successor Servicers.

     

    (a) The
      Master Servicer shall be entitled to terminate the rights and obligations of
      any
      Servicer under the applicable Servicing Agreement in accordance with the terms
      and conditions of such Servicing Agreement and without any limitation by virtue
      of this Agreement; provided, however, that in the event of termination of any
      Servicing Agreement by the Master Servicer or a related Servicer, the Master
      Servicer shall either act as Servicer of the related Mortgage Loans or provide
      for the servicing of the Mortgage Loans by a successor Servicer to be appointed
      as provided in the related Servicing Agreement.

     

    The
      parties acknowledge that notwithstanding the preceding sentence, there may
      be a
      transition period, not to exceed 90 days, in order to effect the transfer of
      servicing to a successor Servicer. The Master Servicer shall be entitled to
      be
      reimbursed from each Servicer (or by the Trust Fund, if such Servicer is unable
      to fulfill its obligations hereunder) for all costs associated with the transfer
      of servicing from the predecessor servicer, including without limitation, any
      costs or expenses associated with the complete transfer of all servicing data
      and the completion, correction or manipulation of such servicing data, as may
      be
      required by the Master Servicer to correct any errors or insufficiencies in
      the
      servicing data or otherwise to enable the Master Servicer to service the
      Mortgage Loans properly and effectively.

     

    
      
        
        

      

      
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    (b) If
      the
      Master Servicer acts as a successor Servicer, it will not assume liability
      for
      the representations and warranties of the Servicer, if any, that it replaces.
      The Master Servicer shall use reasonable efforts to have the successor Servicer
      assume liability for the representations and warranties made by the terminated
      Servicer in the related Servicing Agreement, and in the event of any such
      assumption by the successor Servicer, the Trustee or the Master Servicer, as
      applicable, may, in the exercise of its business judgment, release the
      terminated Servicer from liability for such representations and
      warranties.

     

    (c) If
      the
      Master Servicer acts as a successor servicer, it will have no obligation to
      make
      an Advance if it determines in its reasonable judgment that such Advance is
      non-recoverable. To the extent that the Master Servicer is unable to find a
      successor servicer that is willing to service the Mortgage Loans for the
      Servicing Fee because of the obligation of the servicer to make Advances
      regardless of whether such Advance is recoverable, the applicable Servicing
      Agreement may be amended to provide that the successor servicer shall have
      no
      obligation to make an Advance if it determines in its reasonable judgment that
      such Advance is non-recoverable and provides an Officer’s Certificate to such
      effect to the Master Servicer and the Trustee.

     

    Section
      9.08 Master
      Servicer Liable for Enforcement.

     

    Notwithstanding
      any Servicing Agreement, the Master Servicer shall remain obligated and liable
      to the Trustee and the Certificateholders in accordance with the provisions
      of
      this Agreement, to the extent of its obligations hereunder, without diminution
      of such obligation or liability by virtue of such Servicing Agreements. The
      Master Servicer shall use commercially reasonable efforts to ensure that the
      Mortgage Loans are serviced in accordance with the provisions of this Agreement
      and shall use commercially reasonable efforts to enforce the provisions of
      each
      Servicing Agreement for the benefit of the Certificateholders. The Master
      Servicer shall be entitled to enter into any agreement with the Servicers for
      indemnification of the Master Servicer and nothing contained in this Agreement
      shall be deemed to limit or modify such indemnification. Except as expressly
      set
      forth herein, the Master Servicer shall have no liability for the acts or
      omissions of any Servicer in the performance by such Servicer of its obligations
      under the related Servicing Agreement.

     

    Section
      9.09 No
      Contractual Relationship Between the Servicer, Any NIMS Insurer and Trustee
      or
      Depositor.

     

    Any
      Servicing Agreement and any other transactions or services relating to the
      Mortgage Loans involving a Servicer in its capacity as such and not as an
      originator shall be deemed to be between such Servicer, the Seller and the
      Master Servicer, and the Trustee and the Depositor shall not be deemed parties
      thereto and shall have no obligations, duties or liabilities with respect to
      such Servicer except as set forth in Section 9.10 hereof, but shall have rights
      thereunder as third party beneficiaries.

     

    
      
        
        

      

      
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    Section
      9.10 Assumption
      of Servicing Agreement by the Trustee.

     

    (a) In
      the
      event the Master Servicer shall for any reason no longer be the Master Servicer
      (including by reason of any Event of Default under this Agreement), after a
      period not to exceed ninety days after the issuance of any notice of termination
      pursuant to Section 6.14 or Section 9.28, as applicable, the Trustee, or a
      successor master servicer appointed by it in accordance with Section 6.14,
      shall
      assume all of the rights and obligations of such Master Servicer hereunder
      and
      under each Servicing Agreement entered into with respect to the Mortgage Loans.
      The Trustee, its designee or any successor master servicer appointed by the
      Trustee shall be deemed to have assumed all of the Master Servicer’s interest
      herein and therein to the same extent as if such Servicing Agreement had been
      assigned to the assuming party, except that the Master Servicer shall not
      thereby be relieved of any liability or obligations of the Master Servicer
      under
      such Servicing Agreement accruing prior to its replacement as Master Servicer,
      and shall be liable to the Trustee, and hereby agrees to indemnify and hold
      harmless the Trustee from and against all costs, damages, expenses and
      liabilities (including reasonable attorneys’ fees) incurred by the Trustee as a
      result of such liability or obligations of the Master Servicer and in connection
      with the Trustee’s assumption (but not its performance, except to the extent
      that costs or liability of the Trustee are created or increased as a result
      of
      negligent or wrongful acts or omissions of the Master Servicer prior to its
      replacement as Master Servicer) of the Master Servicer’s obligations, duties or
      responsibilities thereunder; provided that the Master Servicer shall not
      indemnify or hold harmless the Trustee against negligent or willful misconduct
      of the Trustee.

     

    (b) The
      Master Servicer that has been terminated shall, upon request of the Trustee
      but
      at the expense of such Master Servicer or at the expense of the Trust Fund,
      deliver to the assuming party all documents and records relating to each
      Servicing Agreement and the related Mortgage Loans and an accounting of amounts
      collected and held by it and otherwise use its best efforts to effect the
      orderly and efficient transfer of each Servicing Agreement to the assuming
      party.

     

    Section
      9.11 Due-on-Sale
      Clauses; Assumption Agreements; Easements.

     

    (a) To
      the
      extent provided in the applicable Servicing Agreement, to the extent Mortgage
      Loans contain enforceable due on sale clauses, and to the extent that the Master
      Servicer has knowledge of the conveyance of a Mortgaged Property, the Master
      Servicer shall use its reasonable best efforts to cause the Servicers to enforce
      such clauses in accordance with the applicable Servicing Agreement. If
      applicable law prohibits the enforcement of a due on sale clause or such clause
      is otherwise not enforced in accordance with the applicable Servicing Agreement,
      and, as a consequence, a Mortgage Loan is assumed, the original Mortgagor may
      be
      released from liability in accordance with the applicable Servicing
      Agreement.

     

    (b) The
      Master Servicer or the related Servicer, as the case may be, shall be entitled
      to approve a request from a Mortgagor for the granting of an easement thereon
      in
      favor of another Person or any alteration or demolition of the related Mortgaged
      Property if it has determined, exercising its good faith business judgment
      in
      the same manner as it would if it were the owner of the related Mortgage Loan,
      that the security for, and the timely and full collectability of, such Mortgage
      Loan would not be materially adversely affected thereby. Any fee collected
      by
      the Master Servicer or the related Servicer for processing such a request will
      be retained by the Master Servicer or such Servicer as additional servicing
      compensation.

     

    
      
        
        

      

      
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    Section
      9.12 Release
      of Mortgage Files.

     

    (a) Upon
      (i)
      becoming aware of the payment in full of any Mortgage Loan or (ii) the receipt
      by the Master Servicer of a notification that payment in full has been or will
      be escrowed in a manner customary for such purposes, the Master Servicer shall,
      or shall cause the applicable Servicer to, promptly notify the Trustee (or
      the
      applicable Custodian) by a certification (which certification shall include
      a
      statement to the effect that all amounts received in connection with such
      payment that are required to be deposited in the Collection Account maintained
      by the Master Servicer pursuant to Section 4.01 hereof have been or will be
      so
      deposited) of a Servicing Officer and shall request (on the form attached hereto
      as Exhibit C or on the form attached to the applicable Custodial Agreement)
      the
      Trustee or the applicable Custodian, to deliver to the applicable Servicer
      the
      related Mortgage File; provided, however, that in lieu of sending a hard copy
      certification of a Servicing Officer, the Master Servicer may, or may cause
      the
      applicable Servicer to, deliver the request for release in a mutually agreeable
      electronic format, and to the extent that such a request, on its face,
      originates from a Servicing Officer, no original signature shall be required.
      Upon receipt of such certification and request, the Trustee or the applicable
      Custodian, shall promptly release the related Mortgage File to the Servicer
      and
      neither the Trustee nor such Custodian shall have any further responsibility
      with regard to such Mortgage File. Upon any such payment in full, the Master
      Servicer is authorized, and the applicable Servicer, to the extent such
      authority is provided for under the related Servicing Agreement, is authorized,
      to give, as agent for the Trustee, as the mortgagee under the Mortgage that
      secured the Mortgage Loan, an instrument of satisfaction (or assignment of
      mortgage without recourse) regarding the Mortgaged Property subject to the
      Mortgage, which instrument of satisfaction or assignment, as the case may be,
      shall be delivered to the Person or Persons entitled thereto against receipt
      therefor of such payment, it being understood and agreed that no expenses
      incurred in connection with such instrument of satisfaction or assignment,
      as
      the case may be, shall be chargeable to the Collection Account.

     

    (b) From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan
      and in accordance with Accepted Servicing Practices and the applicable Servicing
      Agreement, the Trustee shall execute such documents as shall be prepared and
      furnished to the Trustee by the Master Servicer, or by the applicable Servicer
      (in form reasonably acceptable to the Trustee) and as are necessary to the
      prosecution of any such proceedings. The Trustee or the applicable Custodian,
      shall, upon request of the Master Servicer, or of the applicable Servicer,
      and
      delivery to the Trustee or such Custodian, of a trust receipt signed by a
      Servicing Officer substantially in the form of Exhibit C, release the related
      Mortgage File held in its possession or control to the Master Servicer (or
      the
      applicable Servicer). Such trust receipt shall obligate the Master Servicer
      or
      applicable Servicer to return the Mortgage File to the Trustee or the applicable
      Custodian, as applicable, when the need therefor by the Master Servicer or
      applicable Servicer no longer exists unless (i) the Mortgage Loan shall be
      liquidated, in which case, upon receipt of a certificate of a Servicing Officer
      similar to that hereinabove specified, the trust receipt shall be released
      by
      the Trustee or the Custodian, as applicable, to the Master Servicer (or the
      applicable Servicer) or (ii) the Mortgage File has been delivered directly
      or
      through a Servicer to an attorney, or to a public trustee or other public
      official as required by law, for purposes of initiating or pursuing legal action
      or other proceedings for the foreclosure of the Mortgaged Property either
      judicially or non-judicially, and the Master Servicer has delivered directly
      or
      through a Servicer to the Trustee a certificate of a Servicing Officer
      certifying as to the name and address of the Person to which such Mortgage
      File
      or such document was delivered and the purpose of such delivery.

     

    
      
        
        

      

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

     

    (a) The
      Master Servicer shall transmit, or shall cause the applicable Servicer to
      transmit, to the Trustee such documents and instruments coming into the
      possession of the Master Servicer or such Servicer from time to time as are
      required by the terms hereof or of the related Servicing Agreement to be
      delivered to the Trustee or the applicable Custodian. Any funds received by
      the
      Master Servicer or by a Servicer in respect of any Mortgage Loan or which
      otherwise are collected by the Master Servicer or a Servicer as a Subsequent
      Recovery, Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage
      Loan shall be held for the benefit of the Trustee and the Certificateholders
      subject to the Master Servicer’s right to retain or withdraw from the Collection
      Account the Master Servicing Fee, and other amounts provided in this Agreement
      and to the right of each Servicer to retain its Servicing Fee and other amounts
      as provided in the Servicing Agreement. The Master Servicer shall, and shall
      (to
      the extent provided in the applicable Servicing Agreement) cause each Servicer
      to, provide access to information and documentation regarding the Mortgage
      Loans
      to the Trustee, its respective agents and accountants and to any NIMS Insurer,
      at any time upon reasonable request and during normal business hours, and to
      Certificateholders that are savings and loan associations, banks or insurance
      companies, the Office of Thrift Supervision, the FDIC and the supervisory agents
      and examiners of such Office and Corporation or examiners of any other federal
      or state banking or insurance regulatory authority if so required by applicable
      regulations of the Office of Thrift Supervision or other regulatory authority,
      such access to be afforded without charge but only upon reasonable request
      in
      writing and during normal business hours at the offices of the Master Servicer
      designated by it. In fulfilling such a request the Master Servicer shall not
      be
      responsible for determining the sufficiency of such information. The Master
      Servicer shall afford the NIMS Insurer, and shall (to the extent provided in
      the
      Servicing Agreement) cause the Servicer to afford the NIMS Insurer, upon
      reasonable advance notice, during normal business hours access to all records
      related to their respective rights and obligations hereunder and access to
      officers of the Master Servicer and the Servicer responsible for such
      obligations.

     

    (b) All
      Mortgage Files and funds collected or held by, or under the control of, the
      Master Servicer, or any Servicer, in respect of any Mortgage Loans, whether
      from
      the collection of principal and interest payments or from a Subsequent Recovery,
      Liquidation Proceeds or Insurance Proceeds, shall be held by the Master
      Servicer, or by such Servicer, for and on behalf of the Trustee and the
      Certificateholders and shall be and remain the sole and exclusive property
      of
      the Trustee; provided, however, that the Master Servicer and each Servicer
      shall
      be entitled to setoff against, and deduct from, any such funds any amounts
      that
      are properly due and payable to the Master Servicer or such Servicer under
      this
      Agreement or the applicable Servicing Agreement and shall be authorized to
      remit
      such funds to the Trustee in accordance with this Agreement.

     

    
      
        
        

      

      
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    (c) The
      Master Servicer hereby acknowledges that concurrently with the execution of
      this
      Agreement, the Trustee shall own or, to the extent that a court of competent
      jurisdiction shall deem the conveyance of the Mortgage Loans from the Seller
      to
      the Depositor not to constitute a sale, the Trustee shall have a security
      interest in the Mortgage Loans and in all Mortgage Files representing such
      Mortgage Loans and in all funds and investment property now or hereafter held
      by, or under the control of, a Servicer or the Master Servicer that are
      collected by such Servicer or the Master Servicer in connection with the
      Mortgage Loans, whether as scheduled installments of principal and interest
      or
      as full or partial prepayments of principal or interest or as a Subsequent
      Recovery, Liquidation Proceeds or Insurance Proceeds or otherwise, and in all
      proceeds of the foregoing and proceeds of proceeds (but excluding any fee or
      other amounts to which such Servicer is entitled under the applicable Servicing
      Agreement, or the Master Servicer or the Depositor is entitled to hereunder);
      and the Master Servicer agrees that so long as the Mortgage Loans are assigned
      to and held by the Trustee or the any Custodian, all documents or instruments
      constituting part of the Mortgage Files, and such funds relating to the Mortgage
      Loans which come into the possession or custody of, or which are subject to
      the
      control of, the Master Servicer or any Servicer shall be held by the Master
      Servicer or such Servicer for and on behalf of the Trustee as the Trustee’s
      agent and bailee for purposes of perfecting the Trustee’s security interest
      therein as provided by the applicable Uniform Commercial Code or other
      applicable laws.

     

    (d) The
      Master Servicer agrees that it shall not, and shall not authorize any Servicer
      to, create, incur or subject any Mortgage Loans, or any funds that are deposited
      in any Custodial Account, Escrow Account or the Collection Account, or any
      funds
      that otherwise are or may become due or payable to the Trustee, to any claim,
      lien, security interest, judgment, levy, writ of attachment or other
      encumbrance, nor assert by legal action or otherwise any claim or right of
      setoff against any Mortgage Loan or any funds collected on, or in connection
      with, a Mortgage Loan.

     

    Section
      9.14 Representations
      and Warranties of the Master Servicer.

     

    (a) The
      Master Servicer hereby represents and warrants to the Depositor and the Trustee,
      for the benefit of the Certificateholders, as of the Closing Date
      that:

     

    (i) it
      is
      validly existing and in good standing under the laws of the State of Delaware,
      and as Master Servicer has full power and authority to transact any and all
      business contemplated by this Agreement and to execute, deliver and comply
      with
      its obligations under the terms of this Agreement, the execution, delivery
      and
      performance of which have been duly authorized by all necessary corporate action
      on the part of the Master Servicer;

     

    (ii) the
      execution and delivery of this Agreement by the Master Servicer and its
      performance and compliance with the terms of this Agreement will not (A) violate
      the Master Servicer’s charter or bylaws, (B) violate any law or regulation or
      any administrative decree or order to which it is subject or (C) constitute
      a
      default (or an event which, with notice or lapse of time, or both, would
      constitute a default) under, or result in the breach of, any material contract,
      agreement or other instrument to which the Master Servicer is a party or by
      which it is bound or to which any of its assets are subject, which violation,
      default or breach would materially and adversely affect the Master Servicer’s
      ability to perform its obligations under this Agreement;

     

    
      
        
        

      

      
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    (iii) this
      Agreement constitutes, assuming due authorization, execution and delivery hereof
      by the other respective parties hereto, a legal, valid and binding obligation
      of
      the Master Servicer, enforceable against it in accordance with the terms hereof,
      except as such enforcement may be limited by bankruptcy, insolvency,
      reorganization, moratorium and other laws affecting the enforcement of
      creditors’ rights in general, and by general equity principles (regardless of
      whether such enforcement is considered in a proceeding in equity or at
      law);

     

    (iv) the
      Master Servicer is not in default with respect to any order or decree of any
      court or any order or regulation of any federal, state, municipal or
      governmental agency to the extent that any such default would materially and
      adversely affect its performance hereunder;

     

    (v) the
      Master Servicer is not a party to or bound by any agreement or instrument or
      subject to any charter provision, bylaw or any other corporate restriction
      or
      any judgment, order, writ, injunction, decree, law or regulation that may
      materially and adversely affect its ability as Master Servicer to perform its
      obligations under this Agreement or that requires the consent of any third
      person to the execution of this Agreement or the performance by the Master
      Servicer of its obligations under this Agreement;

     

    (vi) no
      litigation is pending or, to the best of the Master Servicer’s knowledge,
      threatened against the Master Servicer which would prohibit its entering into
      this Agreement or performing its obligations under this Agreement;

     

    (vii) the
      Master Servicer, or an Affiliate thereof the primary business of which is the
      servicing of conventional residential mortgage loans, is a Fannie Mae- or
      Freddie Mac-approved seller/servicer;

     

    (viii) no
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Master
      Servicer of or compliance by the Master Servicer with this Agreement or the
      consummation of the transactions contemplated by this Agreement, except for
      such
      consents, approvals, authorizations and orders (if any) as have been
      obtained;

     

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

     

    (x) the
      Master Servicer has obtained an Errors and Omissions Insurance Policy and a
      Fidelity Bond in accordance with Section 9.02 each of which is in full force
      and
      effect, and each of which provides at least such coverage as is required
      hereunder; and

     

    (xi) the
      information about the Master Servicer under the heading “The Master Servicer” in
      the Offering Document relating to the Master Servicer does not include an untrue
      statement of a material fact and does not omit to state a material fact, with
      respect to the statements made, necessary in order to make the statements in
      light of the circumstances under which they were made not
      misleading.

     

    (b) It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 9.14 shall survive the execution and delivery of this Agreement. The
      Master Servicer shall indemnify the Depositor and the Trustee and hold them
      harmless against any loss, damages, penalties, fines, forfeitures, legal fees
      and related costs, judgments, and other costs and expenses arising out of or
      based upon any claim, demand, defense or assertion based on or grounded upon,
      or
      resulting from, a breach of the Master Servicer’s representations and warranties
      contained in Section 9.14(a). It is understood and agreed that the enforcement
      of the obligation of the Master Servicer set forth in this Section to indemnify
      the Depositor and the Trustee as provided in this Section constitutes the sole
      remedy (other than as set forth in Section 6.14) of the Depositor and the
      Trustee, respecting a breach of the foregoing representations and warranties.
      Such indemnification shall survive any termination of the Master Servicer as
      Master Servicer hereunder, and any termination of this Agreement.

     

    
      
        
        

      

      
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    Any
      cause
      of action against the Master Servicer relating to or arising out of the breach
      of any representations and warranties made in this Section shall accrue upon
      discovery of such breach by any of the Depositor, the Master Servicer, any
      NIMS
      Insurer or the Trustee or notice thereof by any one of such parties to the
      other
      parties. Notwithstanding anything in this Agreement to the contrary, the Master
      Servicer shall not be liable for special, indirect or consequential losses
      or
      damages of any kind whatsoever (including, but not limited to, lost
      profits).

     

    (c) It
      is
      understood and agreed that the representations and warranties of the Depositor
      set forth in Sections 2.03(a)(i) through (vi) shall survive the execution and
      delivery of this Agreement. The Depositor shall indemnify the Master Servicer
      and hold it harmless against any loss, damages, penalties, fines, forfeitures,
      legal fees and related costs, judgments, and other costs and expenses resulting
      from any claim, demand, defense or assertion based on or grounded upon, or
      resulting from, a breach of the Depositor’s representations and warranties
      contained in Sections 2.03(a)(i) through (vi) hereof. It is understood and
      agreed that the enforcement of the obligation of the Depositor set forth in
      this
      Section to indemnify the Master Servicer as provided in this Section constitutes
      the sole remedy hereunder of the Master Servicer respecting a breach by the
      Depositor of the representations and warranties in Sections 2.03(a)(i) through
      (vi) hereof.

     

    Any
      cause
      of action against the Depositor relating to or arising out of the breach of
      the
      representations and warranties made in Sections 2.03(a)(i) through (vi) hereof
      shall accrue upon discovery of such breach by either the Depositor or the Master
      Servicer or notice thereof by any one of such parties to the other
      parties.

     

    Section
      9.15 Opinion.

     

    On
      or
      before the Closing Date, the Master Servicer shall cause to be delivered to
      the
      Depositor, the Seller and the Trustee one or more Opinions of Counsel, dated
      the
      Closing Date, in form and substance reasonably satisfactory to the Depositor
      and
      Lehman Brothers Inc., as to the due authorization, execution and delivery of
      this Agreement by the Master Servicer and the enforceability
      thereof.

     

    Section
      9.16 Standard
      Hazard and Flood Insurance Policies.

     

    For
      each
      Mortgage Loan (other than a Cooperative Loan), the Master Servicer shall
      maintain, or cause to be maintained by each Servicer, standard fire and casualty
      insurance and, where applicable, flood insurance, all in accordance with the
      provisions of this Agreement and the Servicing Agreement, as applicable. It
      is
      understood and agreed that such insurance shall be with insurers meeting the
      eligibility requirements set forth in the applicable Servicing Agreement and
      that no earthquake or other additional insurance is to be required of any
      Mortgagor or to be maintained on property acquired in respect of a defaulted
      loan, other than pursuant to such applicable laws and regulations as shall
      at
      any time be in force and as shall require such additional
      insurance.

     

    
      
        
        

      

      
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    Pursuant
      to Section 4.01, any amounts collected by the Master Servicer, or by any
      Servicer, under any insurance policies maintained pursuant to this Section
      9.16
      or the applicable Servicing Agreement (other than amounts to be applied to
      the
      restoration or repair of the property subject to the related Mortgage or
      released to the Mortgagor in accordance with such Servicing Agreement) shall
      be
      deposited into the Collection Account, subject to withdrawal pursuant to Section
      4.02. Any cost incurred by the Master Servicer or any Servicer in maintaining
      any such insurance if the Mortgagor defaults in its obligation to do so shall
      be
      added to the amount owing under the Mortgage Loan where the terms of the
      Mortgage Loan so permit; provided, however, that the addition of any such cost
      shall not be taken into account for purposes of calculating the distributions
      to
      be made to Certificateholders and shall be recoverable by the Master Servicer
      or
      such Servicer pursuant to Section 4.02.

     

    Section
      9.17 Presentment
      of Claims and Collection of Proceeds.

     

    The
      Master Servicer shall cause each Servicer (to the extent provided in the
      applicable Servicing Agreement) to, prepare and present on behalf of the Trustee
      and the Certificateholders all claims under the Insurance Policies with respect
      to the Mortgage Loans, and take such actions (including the negotiation,
      settlement, compromise or enforcement of the insured’s claim) as shall be
      necessary to realize recovery under such policies. Any proceeds disbursed to
      the
      Master Servicer (or disbursed to the Servicer and remitted to the Master
      Servicer) in respect of such policies or bonds shall be promptly deposited
      in
      the Collection Account or any Custodial Account upon receipt, except that any
      amounts realized that are to be applied to the repair or restoration of the
      related Mortgaged Property or released to the related Mortgagor in accordance
      with the Master Servicer’s or the applicable Servicer’s normal servicing
      procedures need not be so deposited (or remitted).

     

    Section
      9.18 Maintenance
      of the Primary Mortgage Insurance Policies.

     

    (a) The
      Master Servicer shall not take, or knowingly permit any Servicer (consistent
      with the applicable Servicing Agreement) to take, any action that would result
      in noncoverage under any applicable Primary Mortgage Insurance Policy of any
      loss which, but for the actions of such Master Servicer or such Servicer, would
      have been covered thereunder. To the extent that coverage is available, the
      Master Servicer shall use its best reasonable efforts to keep in force and
      effect, or to cause each Servicer to keep in force and effect (to the extent
      that the Mortgage Loan requires the Mortgagor to maintain such insurance),
      primary mortgage insurance applicable to each Mortgage Loan in accordance with
      the provisions of this Agreement and the applicable Servicing Agreement, as
      applicable. The Master Servicer shall not, and shall not knowingly permit any
      Servicer to, cancel or refuse to renew any such Primary Mortgage Insurance
      Policy that is in effect at the date of the initial issuance of the Certificates
      and is required to be kept in force hereunder except in accordance with the
      provisions of this Agreement and the applicable Servicing Agreement, as
      applicable.

     

    
      
        
        

      

      
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    (b) The
      Master Servicer agrees, to the extent provided in the related Servicing
      Agreement, to cause each Servicer to present, on behalf of the Trustee and
      the
      Certificateholders, claims to the insurer under any Primary Mortgage Insurance
      Policies and, in this regard, to take such reasonable action as shall be
      necessary to permit recovery under any Primary Mortgage Insurance Policies
      respecting defaulted Mortgage Loans. Pursuant to Section 4.01, any amounts
      collected by the Master Servicer or any Servicer under any Primary Mortgage
      Insurance Policies shall be deposited in the Collection Account, subject to
      withdrawal pursuant to Section 4.02.

     

    Section
      9.19 Trustee
      To Retain Possession of Certain Insurance Policies and Documents.

     

    The
      Trustee (or the applicable Custodian) shall retain possession and custody of
      the
      originals of the Primary Mortgage Insurance Policies or certificate of insurance
      if applicable and any certificates of renewal as to the foregoing as may be
      issued from time to time as contemplated by this Agreement. Until all amounts
      distributable in respect of the Certificates have been distributed in full
      and
      the Master Servicer otherwise has fulfilled its obligations under this
      Agreement, the Trustee (or the applicable Custodian) shall also retain
      possession and custody of each Mortgage File in accordance with and subject
      to
      the terms and conditions of this Agreement. The Master Servicer shall promptly
      deliver or cause the applicable Servicer to deliver to the Trustee (or the
      applicable Custodian), upon the execution or receipt thereof the originals
      of
      the Primary Mortgage Insurance Policies and any certificates of renewal thereof,
      and such other documents or instruments that constitute portions of the Mortgage
      File that come into the possession of the Master Servicer or a Servicer from
      time to time.

     

    Section
      9.20 Realization
      Upon Defaulted Mortgage Loans.

     

    (a) The
      Master Servicer shall use its reasonable best efforts to, or to cause the
      applicable Servicer to, foreclose upon, repossess or otherwise comparably
      convert the ownership of Mortgaged Properties securing such of the Mortgage
      Loans as come into and continue in default and as to which no satisfactory
      arrangements can be made for collection of delinquent payments, all in
      accordance with the applicable Servicing Agreement. Alternatively, the Master
      Servicer may take, or authorize the applicable Servicer to take, other actions
      in respect of a defaulted Mortgage Loan, which may include (i) accepting a
      short
      sale (a payoff of the Mortgage Loan for an amount less than the total amount
      contractually owed in order to facilitate a sale of the Mortgaged Property
      by
      the Mortgagor) or permitting a short refinancing (a payoff of the Mortgage
      Loan
      for an amount less than the total amount contractually owed in order to
      facilitate refinancing transactions by the Mortgagor not involving a sale of
      the
      Mortgaged Property), (ii) arranging for a repayment plan or (iii) agreeing
      to a
      modification in accordance with Section 9.04. In connection with such
      foreclosure or other conversion or action, the Master Servicer shall, consistent
      with Section 9.18, follow such practices and procedures as it shall reasonably
      determine to be in the best interests of the Trust Fund and the
      Certificateholders and which shall be consistent with its customary practices
      in
      performing its general mortgage servicing activities; provided that the Master
      Servicer shall not be liable in any respect hereunder if the Master Servicer
      is
      acting in connection with any such foreclosure or other conversion or action
      in
      a manner that is consistent with the provisions of this Agreement. Neither
      the
      Master Servicer, nor any Servicer, shall be required to expend its own funds
      or
      incur other reimbursable charges in connection with any foreclosure, or
      attempted foreclosure which is not completed, or toward the correction of any
      default on a related senior mortgage loan, or towards the restoration of any
      property unless it shall determine (i) that such restoration and/or foreclosure
      will increase the proceeds of liquidation of the Mortgage Loan to the
      Certificateholders after reimbursement to itself for such expenses or charges
      and (ii) that such expenses and charges will be recoverable to it through
      Liquidation Proceeds or Insurance Proceeds (as provided in Section
      4.02).

     

    
      
        
        

      

      
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    (b) Notwithstanding
      the foregoing provisions of this Section 9.20 or any other provision of this
      Agreement, with respect to any Mortgage Loan as to which the Master Servicer
      has
      received actual notice of, or has actual knowledge of, the presence of any
      toxic
      or hazardous substance on the related Mortgaged Property, the Master Servicer
      shall not, on behalf of the Trustee, either (i) obtain title to such Mortgaged
      Property as a result of or in lieu of foreclosure or otherwise, or (ii)
      otherwise acquire possession of, or take any other action with respect to,
      such
      Mortgaged Property, if, as a result of any such action, the Trustee, the Trust
      Fund or the Certificateholders would be considered to hold title to, to be
      a
“mortgagee-in-possession” of, or to be an “owner” or “operator” of such
      Mortgaged Property within the meaning of the Comprehensive Environmental
      Response, Compensation and Liability Act of 1980, as amended from time to time,
      or any comparable law, unless the Master Servicer has obtained the prior written
      consent of the NIMS Insurer.

     

    Section
      9.21 Compensation
      to the Master Servicer.

     

    The
      Master Servicer shall be entitled to withdraw from the Collection Account,
      subject to Section 5.05, the Master Servicing Fee to the extent permitted by
      Section 4.02. Servicing compensation in the form of assumption fees, if any,
      late payment charges, as collected, if any, or otherwise (but not including
      any
      Prepayment Premium) shall be retained by the Master Servicer (or the applicable
      Servicer) and shall not be deposited in the Collection Account. If the Master
      Servicer does not retain or withdraw the Master Servicing Fee from the
      Collection Account as provided herein, the Master Servicer shall be entitled
      to
      direct the Trustee to pay the Master Servicing Fee to such Master Servicer
      by
      withdrawal from the Certificate Account to the extent that payments have been
      received with respect to the applicable Mortgage Loan. The Master Servicer
      shall
      be required to pay all expenses incurred by it in connection with its activities
      hereunder and shall not be entitled to reimbursement therefor except as provided
      in this Agreement. Pursuant to Section 4.01(e), all income and gain realized
      from any investment of funds in the Collection Account shall be for the benefit
      of the Master Servicer as compensation. The provisions of this Section 9.21
      are
      subject to the provisions of Section 6.14.

     

    Section
      9.22 REO
      Property.

     

    (a) In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      Mortgage Loan, the deed or certificate of sale shall be issued to the Trustee,
      or to its nominee, on behalf of the Certificateholders. The Master Servicer
      shall use its reasonable best efforts to sell, or cause the applicable Servicer,
      to the extent provided in the related Servicing Agreement, to sell any REO
      Property as expeditiously as possible and in accordance with the provisions
      of
      this Agreement and such Servicing Agreement, as applicable, but in all events
      within the time period, and subject to the conditions set forth in Article
      X
      hereof. Pursuant to its efforts to sell such REO Property, the Master Servicer
      shall protect and conserve, or cause the applicable Servicer to protect and
      conserve, such REO Property in the manner and to such extent required by the
      related Servicing Agreement, subject to Article X hereof.

     

    
      
        
        

      

      
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    (b) The
      Master Servicer shall deposit or cause to be deposited all funds collected
      and
      received by it, or recovered from the Servicer, in connection with the operation
      of any REO Property in the Collection Account.

     

    (c) The
      Master Servicer and the applicable Servicer, upon the final disposition of
      any
      REO Property, shall be entitled to reimbursement for any related unreimbursed
      Advances and other unreimbursed advances as well as any unpaid Master Servicing
      Fees or Servicing Fees from Liquidation Proceeds received in connection with
      the
      final disposition of such REO Property; provided, that (without limitation
      of
      any other right of reimbursement that the Master Servicer or any Servicer shall
      have hereunder) any such unreimbursed Advances as well as any unpaid Net Master
      Servicing Fees or Servicing Fees may be reimbursed or paid, as the case may
      be,
      prior to final disposition, out of any net rental income or other net amounts
      derived from such REO Property.

     

    (d) The
      Liquidation Proceeds from the final disposition of the REO Property, net of
      any
      payment to the Master Servicer and the applicable Servicer as provided above,
      shall be deposited in the Collection Account on or prior to the Determination
      Date in the month following receipt thereof (and the Master Servicer shall
      provide written notice to the Trustee upon such deposit) and be remitted by
      wire
      transfer in immediately available funds to the Trustee for deposit into the
      Certificate Account on the next succeeding Deposit Date.

     

    Section
      9.23 Notice
      to the Sponsor, the Depositor and the Trustee.

     

    (a) The
      Master Servicer shall promptly notify the Trustee, the Sponsor and the Depositor
      (i) of any legal proceedings pending against the Master Servicer of the type
      described in Item 1117 (§ 229.1117) of Regulation AB.

     

    (b) On
      or
      before March 1st of each year, the Depositor shall distribute the information
      in
      Exhibit S to the Master Servicer. If the Master Servicer shall become at any
      time an affiliate of any of the parties listed on Exhibit S hereto or any of
      their affiliates who have been identified to the Master Servicer in writing,
      the
      Master Servicer shall notify the Trustee, the Sponsor and the Depositor of
      such
      affiliation by March 15 of each year (but only to the extent that the Master
      Servicer has not previously notified the Trustee, the Sponsor or the Depositor
      of such affiliation.)

     

    (c) Not
      later
      than four Business Days prior to the Distribution Date of each month, the Master
      Servicer shall provide to the Trustee, the Sponsor and the Depositor notice
      of
      the occurrence of any material modifications, extensions or waivers of terms,
      fees, penalties or payments relating to the Mortgage Loans during the related
      Collection Period or that have cumulatively become material over time (Item
      1121(a)(11) of Regulation AB) along with all information, data, and materials
      related thereto as may be required to be included in the related Distribution
      Report on Form 10-D, in each case solely as reported to the Master Servicer
      by
      the applicable Servicer. The parties to this Agreement acknowledge that the
      performance by the Master Servicer of its duties under this Section 9.23(c)
      related to the timely preparation and delivery of such information is contingent
      upon each applicable Servicer strictly observing all requirements and deadlines
      in the performance of their duties under their related Servicing Agreements.
      The
      Master Servicer shall have no liability for any loss, expense, damage or claim
      arising out of or with respect to any failure to properly prepare and/or timely
      deliver all such information where such failure results from the Master
      Servicer’s inability or failure to obtain or receive, on a timely basis, any
      information from any Servicer needed to prepare or deliver such information,
      which failure does not result from the Master Servicer’s own negligence, bad
      faith or willful misconduct.

     

    
      
        
        

      

      
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    Section
      9.24 Reports
      to the Trustee.

     

    (a) Not
      later
      than 30 days after each Distribution Date, the Master Servicer shall, upon
      request, forward to the Trustee and any NIMS Insurer a statement, deemed to
      have
      been certified by a Servicing Officer, setting forth the status of the
      Collection Account maintained by the Master Servicer as of the close of business
      on the related Distribution Date, indicating that all distributions required
      by
      this Agreement to be made by the Master Servicer have been made (or if any
      required distribution has not been made by the Master Servicer, specifying
      the
      nature and status thereof) and showing, for the period covered by such
      statement, the aggregate of deposits into and withdrawals from the Collection
      Account maintained by the Master Servicer. Copies of such statement shall be
      provided by the Master Servicer, upon request, to the Depositor, Attention:
      Contract Finance and to any Certificateholders (or by the Trustee at the Master
      Servicer’s expense if the Master Servicer shall fail to provide such copies to
      the Certificateholders (unless (i) the Master Servicer shall have failed to
      provide the Trustee with such statement or (ii) the Trustee shall be unaware
      of
      the Master Servicer’s failure to provide such statement)).

     

    (b) Not
      later
      than two Business Days following each Distribution Date, the Master Servicer
      shall deliver to one Person designated by the Depositor, in a format consistent
      with other electronic loan level reporting supplied by the Master Servicer
      in
      connection with similar transactions, “loan level” information with respect to
      the Mortgage Loans as of the related Determination Date, to the extent that
      such
      information has been provided to the Master Servicer by the Servicers or by
      the
      Depositor.

     

    (c) All
      information, reports and statements prepared by the Master Servicer under this
      Agreement shall be based upon information supplied to the Master Servicer by
      the
      Servicers without independent verification thereof and the Master Servicer
      shall
      be entitled to rely on such information.

     

    Section
      9.25 Assessment
      of Compliance and Attestation Reports.

     

    (a) Assessment
      of Compliance

     

    (i) On
      or
      before March 15th of each calendar year in which the Depositor is required
      to
      file reports with respect to the Trust Fund in accordance with the Exchange
      Act
      and the rules and regulations of the Commission, beginning with March 15, 2007,
      the Master Servicer, the Paying Agent (if other than the Trustee) and the
      Trustee, each at its own expense, shall furnish, and each such party shall
      cause
      any Servicing Function Participant engaged by it to furnish, each at its own
      expense, to the Sponsor, the Depositor, the Master Servicer and the Trustee,
      a
      report on an assessment of compliance with the Relevant Servicing Criteria
      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 6.20(d), 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.

     

    
      
        
        

      

      
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    (ii) When
      the
      Master Servicer, the Paying Agent (if other than the Trustee) and the Trustee
      (or any Servicing Function Participant engaged by it) submit their assessments
      to the Trustee and the Master Servicer, such parties will also at such time
      include the assessment (and attestation pursuant to subsection (b) of this
      Section 9.25) of each Servicing Function Participant engaged by it and shall
      indicate to the Trustee what Relevant Servicing Criteria will be addressed
      in
      any such reports prepared by any such Servicing Function
      Participant.

     

    (iii) Promptly
      after receipt of each report on assessment of compliance, the Trustee shall
      confirm that the assessments, taken as a whole, address all applicable Servicing
      Criteria and taken individually address the Relevant Servicing Criteria (and
      disclose the inapplicability of the Servicing Criteria not determined to be
      Relevant Servicing Criteria) for each party as set forth on Exhibit R and on
      any
      similar exhibit set forth in the applicable Servicing Agreement in respect
      of
      any Servicer, and the applicable Custodial Agreement in respect of any
      Custodian, and shall notify the Depositor of any exceptions. By way of
      clarification and for the avoidance of doubt, it is acknowledged that the
      Trustee shall rely exclusively on Exhibit R to determine such applicable
      Servicing Criteria and Relevant Servicing Criteria, as the case may be, and
      shall not otherwise be reporting on the content of or sufficiency of such
      assessments. 

     

    (b) Attestation
      Reports

     

    (i) On
      or
      before March 15th of each calendar year in which the Depositor is required
      to
      file reports with respect to the Trust Fund in accordance with the Exchange
      Act
      and the rules and regulations of the Commission, beginning with March 15, 2007,
      the Master Servicer, the Paying Agent (if other than the Trustee) and the
      Trustee shall, at its own expense, cause a firm of independent public
      accountants (who may also render other services to the Master Servicer, Paying
      Agent or Trustee), which is a member of the American Institute of Certified
      Public Accountants, to furnish to the Sponsor, the Master Servicer, the Trustee
      and the Depositor a report to the effect that such firm attests to, and reports
      on, the assessment made by such asserting party pursuant to Section 6.01(l)
      above, which report shall be made in accordance with standards for attestation
      engagements issued or adopted by the PCAOB. In addition, on or before March
      15th
      of each calendar year in which the Depositor is required to file reports with
      respect to the Trust Fund in accordance with the Exchange Act and the rules
      and
      regulations of the Commission, beginning with March 15, 2007, the Master
      Servicer, the Paying Agent (if other than the Trustee) and the Trustee shall
      cause any Subservicer or Subcontractor with respect to the Trustee to furnish
      to
      the Sponsor and the Depositor an assessment of compliance and attestation
      report.

     

    
      
        
        

      

      
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    (ii) Promptly
      after receipt of such report from the Master Servicer, the Paying Agent, the
      Trustee or any Servicing Function Participant engaged by such parties, the
      Trustee shall confirm that each assessment submitted pursuant subsection (a)
      of
      this Section 9.25 is coupled with an attestation meeting the requirements of
      this Section and notify the Depositor of any exceptions.

     

    (c) The
      Trustee’s, the Paying Agent’s and the Master Servicer’s obligation to provide
      assessments of compliance and attestations under this Section 9.25 shall
      terminate upon the filing of a Form 15 suspension notice on behalf of the Trust
      Fund. After the occurrence of such event, and provided the Depositor is not
      otherwise provided with such reports or copies of such reports, the Trustee,
      the
      Paying Agent and the Master Servicer shall be obligated to provide a copy of
      such reports, by March 15 of each year, to the Depositor.

     

    Section
      9.26 Annual
      Statement of Compliance with Applicable Servicing Criteria.

     

    The
      Master Servicer shall deliver (and the Master Servicer shall cause any
      Additional Servicer engaged by it to deliver) to the Sponsor, the Depositor
      and
      the Trustee on or before March 15 of each year, commencing in March 2007, an
      Officer’s Certificate stating, as to the signer thereof, that (A) a review of
      such party’s activities during the preceding calendar year or portion thereof
      and of such party’s performance under this Agreement, or such other applicable
      agreement in the case of an Additional Servicer, has been made under such
      officer’s supervision and (B) to the best of such officer’s knowledge, based on
      such review, such party has fulfilled all its obligations under this Agreement,
      or such other applicable agreement in the case of an Additional Servicer, in
      all
      material respects throughout such year or portion thereof, or, if there has
      been
      a failure to fulfill any such obligation in any material respect, specifying
      each such failure known to such officer and the nature and status
      thereof.

     

    Section
      9.27 Merger
      or Consolidation.

     

    Any
      Person into which the Master Servicer may be merged or consolidated, or any
      Person resulting from any merger, conversion, other change in form or
      consolidation to which the Master Servicer shall be a party, or any Person
      succeeding to the business of the Master Servicer, shall be the successor to
      the
      Master Servicer hereunder, without the execution or filing of any paper or
      any
      further act on the part of any of the parties hereto, anything herein to the
      contrary notwithstanding; provided, however, that the successor or resulting
      Person to the Master Servicer shall be a Person that shall be qualified and
      approved to service mortgage loans for Fannie Mae or Freddie Mac and shall
      have
      a net worth of not less than $15,000,000. Notwithstanding the foregoing, as
      a
      condition to the succession to the Master Servicer under this Agreement by
      any
      Person (i) into which the Master Servicer may be merged or consolidated, or
      (ii)
      which may be appointed as a successor to the Master Servicer, the Master
      Servicer shall notify the Depositor, at least 15 calendar days prior to the
      effective date of such succession or appointment, of such succession or
      appointment and shall furnish to the Depositor in writing and in form and
      substance reasonably satisfactory to the Depositor, all information reasonably
      necessary for the Trustee to accurately and timely report, pursuant to Section
      6.20, the event under Item 6.02 of Form 8-K pursuant to the Exchange Act (if
      such reports under the Exchange Act are required to be filed under the Exchange
      Act).

     

    
      
        
        

      

      
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    Section
      9.28 Resignation
      of Master Servicer.

     

    Except
      as
      otherwise provided in Sections 9.27 and 9.29 hereof, the Master Servicer shall
      not resign from the obligations and duties hereby imposed on it unless it or
      the
      Trustee determines that the Master Servicer’s duties hereunder are no longer
      permissible under applicable law or are in material conflict by reason of
      applicable law with any other activities carried on by it and cannot be cured.
      Any such determination permitting the resignation of the Master Servicer shall
      be evidenced by an Opinion of Counsel that shall be Independent to such effect
      delivered to the Trustee and the NIMS Insurer. No such resignation shall become
      effective until a period of time not to exceed 90 days after the Trustee and
      the
      NIMS Insurer receives written notice thereof from the Master Servicer and until
      the Trustee shall have assumed, or a successor master servicer shall have been
      appointed by the Trustee, such successor master servicer being acceptable to
      the
      NIMS Insurer, and until such successor shall have assumed, the Master Servicer’s
      responsibilities and obligations under this Agreement. Notice of such
      resignation shall be given promptly by the Master Servicer and the Depositor
      to
      the Trustee.

     

    Section
      9.29 Assignment
      or Delegation of Duties by the Master Servicer.

     

    Except
      as
      expressly provided herein, the Master Servicer shall not assign or transfer
      any
      of its rights, benefits or privileges hereunder to any other Person, or delegate
      to or subcontract with, or authorize or appoint any other Person to perform
      any
      of the duties, covenants or obligations to be performed by the Master Servicer
      hereunder; provided, however, that the Master Servicer shall have the right
      without the prior written consent of the Trustee or the Depositor to delegate
      or
      assign to or subcontract with or authorize or appoint an Affiliate of the Master
      Servicer to perform and carry out any duties, covenants or obligations to be
      performed and carried out by the Master Servicer hereunder. In no case, however,
      shall any such delegation, subcontracting or assignment to an Affiliate of
      the
      Master Servicer relieve the Master Servicer of any liability hereunder. Notice
      of such permitted assignment shall be given promptly by the Master Servicer
      to
      the Depositor and the Trustee. If, pursuant to any provision hereof, the duties
      of the Master Servicer are transferred to a successor master servicer, the
      entire amount of the Master Servicing Fees and other compensation payable to
      the
      Master Servicer pursuant hereto, including amounts payable to or permitted
      to be
      retained or withdrawn by the Master Servicer pursuant to Section 9.21 hereof,
      shall thereafter be payable to such successor master servicer.

     

    Notwithstanding
      the foregoing, for so long as reports are required to be filed with the
      Commission under the Exchange Act with respect to the Trust, the Master Servicer
      shall not utilize any Subcontractor for the performance of its duties hereunder
      if such Subcontractor would be “participating in the servicing function” within
      the meaning of Item 1122 of Regulation AB without (a) giving notice to the
      Trustee and the Depositor and (b) requiring any such Subcontractor to provide
      to
      the Master Servicer an attestation report as provided for in Section 9.25(b)
      and
      an assessment of compliance as provided in Section 9.25(a), which reports the
      Master Servicer shall include in its attestation report and assessment of
      compliance.

     

    
      
        
        

      

      
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    Section
      9.30 Limitation
      on Liability of the Master Servicer and Others.

     

    (a) The
      Master Servicer undertakes to perform such duties and only such duties as are
      specifically set forth in this Agreement.

     

    (b) No
      provision of this Agreement shall be construed to relieve the Master Servicer
      from liability for its own negligent action, its own negligent failure to act
      or
      its own willful misconduct; provided, however, that the duties and obligations
      of the Master Servicer shall be determined solely by the express provisions
      of
      this Agreement, the Master Servicer shall not be liable except for the
      performance of such duties and obligations as are specifically set forth in
      this
      Agreement; no implied covenants or obligations shall be read into this Agreement
      against the Master Servicer and, in absence of bad faith on the part of the
      Master Servicer, the Master Servicer may conclusively rely, as to the truth
      of
      the statements and the correctness of the opinions expressed therein, upon
      any
      certificates or opinions furnished to the Master Servicer and conforming to
      the
      requirements of this Agreement.

     

    (c) None
      of
      the Master Servicer, the Seller, any NIMS Insurer or the Depositor or any of
      the
      directors, officers, employees or agents of any of them shall be under any
      liability to the Trustee or the Certificateholders for any action taken or
      for
      refraining from the taking of any action in good faith pursuant to this
      Agreement, or for errors in judgment; provided, however, that this provision
      shall not protect the Master Servicer, the Seller, any NIMS Insurer or the
      Depositor or any such person against any liability that would otherwise be
      imposed by reason of willful misfeasance, bad faith or negligence in its
      performance of its duties or by reason of reckless disregard for its obligations
      and duties under this Agreement. The Master Servicer, the Seller, any NIMS
      Insurer and the Depositor and any director, officer, employee or agent of any
      of
      them shall be entitled to indemnification by the Trust Fund and will be held
      harmless against any loss, liability or expense incurred in connection with
      any
      legal action relating to this Agreement or the Certificates other than any
      loss,
      liability or expense incurred by reason of willful misfeasance, bad faith or
      negligence in the performance of his or its duties hereunder or by reason of
      reckless disregard of his or its obligations and duties hereunder. The Master
      Servicer, the Seller, any NIMS Insurer and the Depositor and any director,
      officer, employee or agent of any of them may rely in good faith on any document
      of any kind prima facie properly executed and submitted by any Person respecting
      any matters arising hereunder. The Master Servicer shall be under no obligation
      to appear in, prosecute or defend any legal action that is not incidental to
      its
      duties to master service the Mortgage Loans in accordance with this Agreement
      and that in its opinion may involve it in any expenses or liability; provided,
      however, that the Master Servicer may in its sole discretion undertake any
      such
      action that it may deem necessary or desirable in respect to this Agreement
      and
      the rights and duties of the parties hereto and the interests of the
      Certificateholders hereunder. In such event, the legal expenses and costs of
      such action and any liability resulting therefrom shall be expenses, costs
      and
      liabilities of the Trust Fund and the Master Servicer shall be entitled to
      be
      reimbursed therefor out of the Collection Account it maintains as provided
      by
      Section 4.02.

     

    
      
        
        

      

      
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    Section
      9.31 Indemnification;
      Third Party Claims.

     

    The
      Master Servicer agrees to indemnify the Depositor, the Sponsor, the Certificate
      Registrar, the Paying Agent and the Trustee (and each of their respective
      directors, officers, employees and agents) and hold each of them harmless
      against any and all claims, losses, penalties, fines, forfeitures, reasonable
      legal fees and related costs, judgments, and any other costs, liability, fees
      and expenses that the Depositor, the Sponsor, the Certificate Registrar, the
      Paying Agent or the Trustee may sustain arising out of or based upon (a) any
      material breach by the Master Servicer of any of its obligations hereunder,
      including particularly its obligations to provide any report under Section
      9.25(a), Section 9.25(b) or Section 9.26 or any information, data or materials
      required to be included in any Exchange Act report, provided, however, that
      in
      no event shall the Master Servicer be liable for any special, consequential,
      indirect or punitive damages pursuant to this Section 9.31, even if advised
      of
      the possibility of such damages, (b) any material misstatement or omission
      on
      any information, data, or materials provided by the Master Servicer, or (c)
      the
      negligence, bad faith or willful misconduct of the Master Servicer in connection
      with its performance hereunder. The Depositor, the Sponsor, the Certificate
      Registrar, the Paying Agent and the Trustee shall immediately notify the Master
      Servicer if a claim is made by a third party with respect to this Agreement
      or
      the Mortgage Loans entitling the Depositor, the Sponsor or the Trustee to
      indemnification hereunder, whereupon the Master Servicer shall assume the
      defense of any such claim and pay all expenses in connection therewith,
      including counsel fees, and promptly pay, discharge and satisfy any judgment
      or
      decree which may be entered against it or them in respect of such claim. This
      indemnification shall survive the termination of this Agreement or the
      termination of the Master Servicer as a party to this Agreement.

     

    Section
      9.32 Special
      Servicing of Delinquent Mortgage Loans.

     

    If
      permitted under the terms of any Servicing Agreement, the Seller may appoint,
      pursuant to the terms of such Servicing Agreement and with the written consent
      of the Depositor, the Master Servicer, the Trustee and the NIMS Insurer, a
      Special Servicer to special service any Distressed Mortgage Loans. Any
      applicable Termination Fee related to the termination of the Servicer and the
      appointment of any Special Servicer shall be paid by the Seller. Any fees paid
      to any such Special Servicer shall not exceed the applicable Servicing Fee
      Rate.

     

    Section
      9.33 Allocation
      to Related Mortgage Pool.

     

    Payments
      described in this Article IX made from the Trust Fund shall be allocated and
      limited to collections or other recoveries on the related Mortgage Pool or
      Mortgage Pools and shall be accounted for in such manner.

     

    ARTICLE
      X.

     

    REMIC
      ADMINISTRATION

     

    Section
      10.01 REMIC
      Administration.

     

    (a) REMIC
      elections as set forth in the Preliminary Statement and this Section 10.01
      shall
      be made on Forms 1066 or other appropriate federal tax or information return
      for
      the taxable year ending on the last day of the calendar year in which the
      Certificates are issued. The regular interests and residual interest in each
      REMIC shall be as designated in the Preliminary Statement and this Section
      10.01. For purposes of such designations, the interest rate of any regular
      interest that is computed by taking into account the weighted average of the
      Net
      Mortgage Rates of the Mortgage Loans shall be reduced to take into account
      any
      expense paid by the Trust to the extent that (i) such expense was not taken
      into
      account in computing the Net Mortgage Rate of any Mortgage Loan, (ii) such
      expense does not constitute an “unanticipated expense” of a REMIC within the
      meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii) and (iii) the amount
      of such expense was not taken into account in computing the interest rate of
      a
      more junior Class of regular interests.

     

    
      
        
        

      

      
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    (b) The
      Closing Date is hereby designated as the “Startup Day” of each REMIC within the
      meaning of section 860G(a)(9) of the Code. The latest possible maturity date
      for
      purposes of Treasury Regulation 1.860G-1(a)(4) will be the Latest Possible
      Maturity Date.

     

    (c) The
      Trustee shall represent the Trust Fund in any administrative or judicial
      proceeding relating to an examination or audit by any governmental taxing
      authority with respect thereto. The Trustee shall pay any and all tax related
      expenses (not including taxes) of each REMIC and Grantor Trust, including but
      not limited to any professional fees or expenses related to audits or any
      administrative or judicial proceedings with respect to such REMIC or Grantor
      Trust that involve the Internal Revenue Service or state tax authorities, but
      only to the extent that (i) such expenses are ordinary or routine expenses,
      including expenses of a routine audit but not expenses of litigation (except
      as
      described in (ii)); or (ii) such expenses or liabilities (including taxes and
      penalties) are attributable to the negligence or willful misconduct of the
      Trustee in fulfilling its duties hereunder (including its duties as tax return
      preparer). The Trustee shall be entitled to reimbursement from the Certificate
      Account of the expenses to the extent (x) provided in clause (i) above and
      (y)
      with respect to each REMIC, such expenses are “unanticipated expenses” within
      the meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii). Any reimbursement
      described in the preceding sentence shall be allocated and limited to
      collections or other recoveries on the related Mortgage Pool and shall be
      accounted for in such manner.

     

    (d) The
      Trustee shall prepare, the Trustee shall sign, and the Trustee will file, all
      of
      each REMIC’s federal and state tax and information returns as such REMIC’s
      direct representative. The Trustee shall prepare, sign and file all of the
      tax
      or information returns in respect of each Grantor Trust. The Trustee shall
      comply with such requirement by filing Form 1041. The expenses of preparing
      and
      filing such returns shall be borne by the Trustee.

     

    (e) The
      Trustee or its designee shall perform on behalf of the Trust Fund and each
      REMIC
      and Grantor Trust all reporting and other tax compliance duties that are the
      responsibility of the Trust Fund or such REMIC or Grantor Trust under the Code,
      the REMIC Provisions, or other compliance guidance issued by the Internal
      Revenue Service or any state or local taxing authority. Among its other duties,
      if required by the Code, the REMIC Provisions, or other such guidance, the
      Trustee shall provide (i) to the Treasury or other governmental authority such
      information as is necessary for the application of any tax relating to the
      transfer of a Residual Certificate to any disqualified person or organization
      pursuant to Treasury Regulation 1.860E-2(a)(5) and any person designated in
      Section 860E(e)(3) of the Code and (ii) to the Certificateholders such
      information or reports as are required by the Code or REMIC
      Provisions.

     

    
      
        
        

      

      
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    (f) The
      Trustee, the Master Servicer and the Holders of Certificates shall take any
      action, within their respective control and scope of their duties, or cause
      any
      REMIC to take any action necessary to create or maintain the status of any
      REMIC
      as a REMIC under the REMIC Provisions and shall assist each other as necessary
      to create or maintain such status. Neither the Trustee, the Master Servicer
      nor
      the Holder of any Residual Certificate shall knowingly take any action, cause
      any REMIC to take any action or fail to take (or fail to cause to be taken)
      any
      action, within their respective control and scope of their duties, that, under
      the REMIC Provisions, if taken or not taken, as the case may be, could result
      in
      an Adverse REMIC Event unless the Trustee, the NIMS Insurer and the Master
      Servicer have received an Opinion of Counsel (at the expense of the party
      seeking to take such action) to the effect that the contemplated action will
      not
      result in an Adverse REMIC Event. In addition, prior to taking any action with
      respect to any REMIC or the assets therein, or causing any REMIC to take any
      action, which is not expressly permitted under the terms of this Agreement,
      any
      Holder of a Residual Certificate will consult with the Trustee, the NIMS
      Insurer, the Master Servicer or their respective designees, in writing, with
      respect to whether such action could cause an Adverse REMIC Event to occur
      with
      respect to any REMIC, and no such Person shall take any such action or cause
      any
      REMIC to take any such action as to which the Trustee, the NIMS Insurer or
      the
      Master Servicer has advised it in writing that an Adverse REMIC Event could
      occur.

     

    (g) Each
      Holder of a Residual Certificate shall pay when due any and all taxes imposed
      on
      the related REMIC by federal or state governmental authorities. To the extent
      that such taxes are not paid by a Residual Certificateholder, the Trustee shall
      pay any remaining REMIC taxes out of current or future amounts otherwise
      distributable to the Holder of the Residual Certificate in any such REMIC or,
      if
      no such amounts are available, out of other amounts held in the Collection
      Account, and shall reduce amounts otherwise payable to holders of regular
      interests in any such REMIC, as the case may be.

     

    (h) The
      Trustee shall, for federal income tax purposes, maintain books and records
      with
      respect to each REMIC on a calendar year and on an accrual basis.

     

    (i) No
      additional contributions of assets shall be made to any REMIC, except as
      expressly provided in this Agreement with respect to Qualifying Substitute
      Mortgage Loans.

     

    (j) Neither
      the Trustee nor the Master Servicer shall enter into any arrangement by which
      any REMIC will receive a fee or other compensation for services.

     

    (k) Upon
      the
      request of any Rating Agency or any NIMS Insurer, the Trustee shall deliver
      an
      Officer’s Certificate to the Rating Agency and to the NIMS Insurer stating,
      without regard to any actions taken by any party other than the Trustee, the
      Trustee’s compliance with provisions of this Section 10.01.

     

    (l) The
      Class
      P Certificates shall be neither regular interests nor residual interests in
      any
      REMIC created hereunder. It is the intention of the parties hereto that the
      segregated pool of assets consisting of any collections of Prepayment Premiums
      related to the Mortgage Loans shall constitute a grantor trust for federal
      income tax purposes. The Trustee, by its execution and delivery hereof,
      acknowledges the assignment to it of the rights to receive such Prepayment
      Premiums and declares that it holds and will hold such assets in trust for
      the
      exclusive use and benefit of all present and future Holders of the Class P
      Certificates. The rights of Holders of the Class P Certificates to receive
      distributions from the proceeds of such Prepayment Premiums, and all ownership
      interests of such Holders in and to such distributions, shall be as set forth
      in
      this Agreement.

     

    
      
        
        

      

      
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    (m) REMIC
      1
      shall consist of all the assets of the Trust Fund relating to the Mortgage
      Pools
      other than (i) the REMIC 1 Interests, (ii) the Basic Risk Reserve Fund, (iii)
      the Capitalized Interest Account, (iv) the Class X Account and (v) the rights
      to
      receive Prepayment Premiums distributable to the Class P Certificates. The
      REMIC
      1 Regular Interests shall be designated as the regular interests in REMIC 1,
      and
      the Class LT1-R Interest shall be designated as the sole class of residual
      interest in REMIC 1. Each of the REMIC 1 Regular Interests shall have the
      characteristics set forth in the Preliminary Statement.

     

    The
      assets of REMIC 2 shall be the REMIC 1 Regular Interests. The REMIC 2 Regular
      Interests shall be designated as the regular interests in REMIC 2 and the
      Residual Interest shall be designated as the sole class of residual interest
      in
      REMIC 2. For federal income tax purposes, the interest rate on each REMIC 2
      Regular Interest (other than the Uncertificated Class X Interest) shall be
      subject to a cap equal to the REMIC Pass-Through Rate.

     

    The
      beneficial ownership of the Class LT1-R Interest and the Residual Interest
      shall
      be represented by the Class R Certificate. Neither the Class LT1-R Interest
      nor
      the Residual Interest shall have a principal balance or bear
      interest.

     

    (n) It
      is
      intended that the rights of each Class of LIBOR Certificates to receive payments
      in respect of Excess Interest shall be treated as a right in interest rate
      cap
      contracts written by the holders of the Class X Certificates in favor of the
      holders of each Class of the LIBOR Certificates and such shall be accounted
      for
      as property held separate and apart from the regular interests in REMIC 2 held
      by the holders of the LIBOR Certificates. This provision is intended to satisfy
      the requirements of Treasury Regulations Section 1.860G-2(i) for the treatment
      of property rights coupled with REMIC interests to be separately respected
      and
      shall be interpreted consistently with such regulation. On each Distribution
      Date, to the extent that any of the LIBOR Certificates receive payments in
      respect of Excess Interest, such amounts, to the extent not derived from
      payments on the Cap Agreements, from amounts in the Capitalized Interest Account
      or from payments in respect of Class X Shortfalls as set forth in Section
      10.01(p), will be treated as distributed by REMIC 2 to the Class X Certificates
      in respect of the Uncertificated Class X Interest pro
      rata
      and then
      paid to the relevant Class of Certificates pursuant to the related interest
      cap
      agreement. The Trustee is hereby directed to perform its duties and obligations
      in accordance with this Section 10.01(n).

     

    It
      is
      intended that the rights of the Class 1-A2A1 Certificates and Class 1-A3A1A
      Certificates to receive payments in respect of the related Cap Agreement shall
      be treated as a right in interest rate cap contracts written by the Cap Provider
      in favor of the holders of the Class 1-A2A1 Certificates and Class 1-A3A1A
      Certificates and such shall be accounted for as property held separate and
      apart
      from the regular interests in REMIC 2 held by the holders of the Class 1-A2A1
      Certificates and Class 1-A3A1A Certificates. This provision is intended to
      satisfy the requirements of Treasury Regulations Section 1.860G-2(i) for the
      treatment of property rights coupled with REMIC interests to be separately
      respected and shall be interpreted consistently with such regulation. The
      Trustee is hereby directed to perform its duties and obligations in accordance
      with this Section 10.01(n).

     

    
      
        
        

      

      
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    It
      is
      intended that the rights of each Class of LIBOR Certificates to receive payments
      from the Capitalized Interest Account shall be treated as a right in interest
      rate cap contracts written by the Depositor in favor of the holders of each
      Class of the LIBOR Certificates and such shall be accounted for as property
      held
      separate and apart from the regular interests in REMIC 2 held by the holders
      of
      the LIBOR Certificates. This provision is intended to satisfy the requirements
      of Treasury Regulations Section 1.860G-2(i) for the treatment of property rights
      coupled with REMIC interests to be separately respected and shall be interpreted
      consistently with such regulation. The Trustee is hereby directed to perform
      its
      duties and obligations in accordance with this Section 10.01(n).

     

    (o) The
      parties hereto intend that the Uncertificated Class X Interest, the Basis Risk
      Reserve Fund, the right to receive payments in respect of Class X Shortfalls
      as
      set forth in Section 10.01(p) and the obligation of the holders of the Class
      X
      Certificates to pay amounts of Excess Interest to the holders of the LIBOR
      Certificates shall be treated as a “grantor trust” under the Code, and the
      provisions hereof shall be interpreted consistently with this intention. In
      furtherance of such intention, the Trustee shall (i) furnish or cause to be
      furnished to the holders of the Class X Certificates information regarding
      their
      allocable share, if any, of the income with respect to such grantor trust,
      (ii)
      file or cause to be filed with the Internal Revenue Service Form 1041 (together
      with any necessary attachments) and such other forms as may be applicable and
      (iii) comply with such information reporting obligations with respect to
      payments from such grantor trust to the holders of LIBOR Certificates as may
      be
      applicable under the Code. The Trustee is hereby directed to perform its duties
      and obligations in accordance with this Section 10.01(o).

     

    (p) The
      excess, if any, of amounts payable with respect to the REMIC regular interests
      held by REMIC 2 over the amounts payable with respect to the REMIC 2 Regular
      Interests with respect to each Accrual Period shall, solely for purposes of
      the
      REMIC Provisions, be deemed earned by the Master Servicer as an additional
      fee,
      which amount shall be deemed paid by the Master Servicer to the holders of
      the
      Class X Certificates. It is intended that the rights of the holders of the
      Class
      X Certificates to receive such deemed payments (“Class X Shortfalls”) shall be
      treated as rights in respect of an interest rate cap contract written by the
      Master Servicer in favor of the holders of the Class X Certificates and shall
      be
      accounted for as property separate and apart from any REMIC regular interest
      represented by the Class X Certificates. This provision is intended to comply
      with the requirements of Treasury Regulations Section 1.860G-2(i) for the
      treatment of property rights coupled with regular interests to be separately
      respected and shall be interpreted consistently with such regulation. The
      holders of the Class X Certificates agree by their acceptance of such
      Certificates, that they will take tax reporting positions that allocate no
      more
      than a nominal value to the right to receive deemed payments in respect of
      Class
      X Shortfalls. The Master Servicer and Trustee shall agree to take tax reporting
      positions consistent with the allocations by the holders of the Class X
      Certificates of no more than a nominal value to the right to receive deemed
      payments in respect of Class X Shortfalls. For information reporting purposes,
      it will be assumed that such rights have no value. Each payment deemed made
      to
      the Class X Certificates in respect of Class X Shortfalls shall be treated
      for
      federal income tax purposes or having been paid to the Master Servicer as an
      additional servicing fee and then paid by the Master Servicer to the Holders
      of
      the Class X Certificates. The Trustee and Master Servicer agree and each holder
      or beneficial owner of a Class X Certificate agrees, by virtue of its
      acquisition of such Certificate or beneficial interest, to adopt tax reporting
      positions consistent with the payments deemed made to the Class X Certificates
      in respect of Class X Shortfalls as payments in respect of interest rate cap
      agreements written by the Master Servicer. The Trustee is hereby directed to
      perform its duties and obligations in accordance with this Section
      10.01(p).

     

    
      
        
        

      

      
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    (q) Payments
      in the nature of expenses, reimbursements and indemnifications made from the
      Trust Fund shall be allocated and limited to collections or other recoveries
      on
      the related Mortgage Pool or Mortgage Pools (if applicable) and shall be
      accounted for in such manner.

     

    (r) The
      Trustee shall treat the Class X Account as an outside reserve fund within the
      meaning of Treasury Regulation 1.860G-2(h) that is owned by the Holder of the
      Class C Certificates and that is not an asset of any REMIC.

     

    All
      payments received by REMIC 1 shall be paid to the REMIC 1 Regular Interests
      until the principal balance of all such interests have been reduced to zero
      and
      any losses allocated to such interests have been reimbursed. Any excess amounts
      shall be distributed to the Class LT1-R Interest.

     

    (s) On
      each
      Distribution Date,

     

    (i) interest
      shortfalls with respect to the Mortgage Loans (other than interest shortfalls
      attributable to Negative Amortization) shall be allocated to the REMIC 1 Regular
      Interests pro
      rata
      based on
      the principal amounts of such interests immediately prior to such Distribution
      Date;

     

    (ii) the
      principal balance of each REMIC 1 Regular Interest shall be increased by the
      amount of interest accrued thereon (net of interest shortfalls allocated thereto
      pursuant to the immediately preceding clause (i));

     

    (iii) 50%
      of
      the cash received by REMIC 1 shall be distributed to, and 50% of losses with
      respect to the Mortgage Loans shall be allocated to the REMIC 1-II Marker
      Classes and the Class LT1-XII Interest in reduction of their principal amounts
      as follows:

     

    first,
      to
      each of the REMIC 1-II Marker Classes ending with the designation “B”, so that
      its principal balance is as close as possible to .0005% of the aggregate
      Scheduled Principal Balance of the Mortgage Loans in the related Mortgage
      Pool;

     

    second,
      to each of the REMIC 1-II Marker Classes ending with the designation “A”, so
      that its principal balance is as close as possible to .0005% of the excess
      of
      (x) the aggregate Scheduled Principal Balance of the Mortgage Loans in the
      related Mortgage Pool over (y) the aggregate principal amounts of the Classes
      of
      related Senior Certificates after giving effect to distributions and allocations
      on such Distribution Date (provided that the REMIC 1 Subordinated Balance Ratio
      is maintained); and

     

    
      
        
        

      

      
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    third,
      to
      the Class LT1-XII Interest, all remaining amounts;

     

    (iv) 50%
      of
      the cash received by REMIC 1 shall be distributed to, and losses with respect
      to
      the Mortgage Loans shall be allocated to the REMIC 1-I Marker Classes and the
      Class LT1-XI Interest in reduction of their principal amounts as
      follows:

     

    first,
      to the
      Class LT1-M9 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    second,
      to the
      Class LT1-M8 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    third,
      to the
      Class LT1-M7 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    fourth,
      to the
      Class LT1-M6 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    fifth,
      to the
      Class LT1-M5 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    sixth,
      to the
      Class LT1-M4 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    seventh,
      to the
      Class LT1-M3 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    eighth,
      to the
      Class LI1-M2 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    ninth,
      to the
      Class LT1-M1 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    tenth,
      to the
      Class LT1-1A32A2 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    
      
        
        

      

      
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    eleventh,
      to the
      Class LT1-1A4C Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    twelfth,
      to the
      Class LT1-1A32B Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    thirteenth,
      to the
      Class LT1-1A4B Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    fourteenth,
      to the
      Class LT1-1A2B Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    fifteenth,
      to the
      Class LT1-1A31 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    sixteenth,
      to the
      Class LT1-2A Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    seventeenth,
      to the
      Class LT1-1A32A1 Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    eighteenth,
      to the
      Class LT1-1A4A Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    nineteenth,
      to the
      Class LT1-1A2A Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class;

     

    twentieth,
      to the
      Class LT1-1A1B Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class; 

     

    twenty-first,
      to the
      Class LT1-1A1A Interest in reduction of its principal balance so that its
      principal balance is as close as possible to 25% of the principal balance of
      its
      Corresponding Class; and

     

    twenty-second,
      to the
      Class LT1-XI Interest in reduction of its principal balance so that its
      principal balance is as close as possible to the sum of (x) 25% of the aggregate
      Scheduled Principal Balance of the Mortgage Loans and (y) 25% of the
      Overcollateralization Amount.

     

    
      
        
        

      

      
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    If
      on any
      Distribution Date there is an increase in the Certificate Principal Amount
      of
      any Offered Certificate as a result of the proviso in the definition of
      Certificate Principal Amount, then there shall be a corresponding increase
      in
      the principal amount of the REMIC 1 Regular Interests allocated as
      follows:

     

    (i) 50%
      of
      such increase shall be allocated among the REMIC 1-II Marker Classes and the
      Class LT1-XII Interest as follows:

     

    first,
      to
      each of the REMIC 1-II Marker Classes ending with the designation “B” so that
      its principal balance is as close as possible to .0005% of the aggregate
      Schedule Principal Balance of the Mortgage Loans in the related Mortgage
      Pool;

     

    second,
      to each of the REMIC 1-II Marker Classes ending with the designation “A”, so
      that its principal balance is as close as possible to .0005% of the excess
      of
      (x) the aggregate Scheduled Principal Balance of the Mortgage Loans in the
      related Mortgage Pool over (y) the aggregate principal amounts of the Classes
      of
      related Senior Certificates after giving effect to distributions and allocations
      on such Distribution Date (provided that the REMIC 1 Subordinated Balance Ratio
      is maintained); and

     

    third,
      to
      the Class LT1-XII Interest all remaining amounts, and:

     

    (ii) 50%
      of
      such increase shall be allocated among the REMIC 1-I Marker Classes and the
      Class LT1-XI Interest as follows:

     

    first,
      to
      each of the REMIC 1-I Marker Classes so that the principal balance of each
      such
      interest is as close as possible to 25% of the principal balance of its
      Corresponding Class; and

     

    second,
      to the Class LT1-XI Interest so that the principal balance of such interest
      is
      as close as possible to the sum of (x) 25% of the aggregate Scheduled Principal
      Balance of the Mortgage Loans and (y) 25% of the Overcollateralization
      Amount.

     

    (t) Notwithstanding
      the priority and sources of payments set forth in Article 5 hereof or otherwise,
      the Trustee shall account for all distributions with respect to a Class of
      Certificates in amounts that differ from those payable pursuant to the regular
      interest in REMIC 2 corresponding to such Class as amounts paid or received
      (as
      appropriate) pursuant to the interest rate cap contracts or notional principal
      contracts provided for in this Section. In no event shall any such amounts
      be
      treated as payments with respect to a “regular interest” in a REMIC within the
      meaning of Code Section 860G(a)(1).

     

    Section
      10.02 Prohibited
      Transactions and Activities.

     

    None
      of
      the Depositor, the Master Servicer or the Trustee shall sell, dispose of, or
      substitute for any of the Mortgage Loans, except in a disposition pursuant
      to
      (i) the foreclosure of a Mortgage Loan, (ii) the bankruptcy of the Trust Fund,
      (iii) the termination of the REMIC holding such Mortgage Loan pursuant to
      Article VII of this Agreement, (iv) a substitution pursuant to Article II of
      this Agreement or (v) a repurchase of Mortgage Loans pursuant to Article II
      of
      this Agreement, nor acquire any assets for any REMIC, nor sell or dispose of
      any
      investments in the Certificate Account for gain, nor accept any contributions
      to
      any REMIC after the Closing Date, unless it has received an Opinion of Counsel
      (at the expense of the party causing such sale, disposition, or substitution),a
      copy of which shall be provided to any NIMS Insurer, that such disposition,
      acquisition, substitution, or acceptance will not (a) result in an Adverse
      REMIC
      Event, (b) affect the distribution of interest or principal on the Certificates,
      or (c) result in the encumbrance of the assets transferred or assigned to the
      Trust Fund (except pursuant to the provisions of this Agreement).

     

    
      
        
        

      

      
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    Section
      10.03 Indemnification
      with Respect to Certain Taxes and Loss of REMIC Status.

     

    Upon
      the
      occurrence of an Adverse REMIC Event due to the negligent performance by the
      Trustee of its duties and obligations set forth herein, the Trustee shall
      indemnify the NIMS Insurer, the Holder of the related Residual Certificate
      or
      the Trust Fund, as applicable, against any and all losses, claims, damages,
      liabilities or expenses (“Losses”) resulting from such negligence; provided,
      however, that the Trustee shall not be liable for any such Losses attributable
      to the action or inaction of the Master Servicer, the Depositor, the Class
      X or
      Class R Certificateholder, as applicable, nor for any such Losses resulting
      from
      misinformation provided by the Holder of such Residual Certificate on which
      the
      Trustee has relied. The foregoing shall not be deemed to limit or restrict
      the
      rights and remedies of the Holder of such Residual Certificate now or hereafter
      existing at law or in equity. Notwithstanding the foregoing, however, in no
      event shall the Trustee have any liability (1) for any action or omission that
      is taken in accordance with and in compliance with the express terms of, or
      which is expressly permitted by the terms of, this Agreement or any Servicing
      Agreement, (2) for any Losses other than arising out of a negligent performance
      by the Trustee of its duties and obligations set forth herein, and (3) for
      any
      special or consequential damages to Certificateholders (in addition to payment
      of principal and interest on the Certificates).

     

    Section
      10.04 REO
      Property.

     

    (a) Notwithstanding
      any other provision of this Agreement, the Master Servicer, acting on behalf
      of
      the Trustee hereunder, shall not, except to the extent provided in the
      applicable Servicing Agreement, knowingly permit any Servicer to, rent, lease,
      or otherwise earn income on behalf of any REMIC with respect to any REO Property
      which might cause an Adverse REMIC Event unless the Master Servicer has advised,
      or has caused such Servicer to advise, the Trustee in writing to the effect
      that, under the REMIC Provisions, such action would not result in an Adverse
      REMIC Event.

     

    (b) The
      Master Servicer shall cause the applicable Servicer (to the extent provided
      in
      the related Servicing Agreement) to make reasonable efforts to sell any REO
      Property for its fair market value. In any event, however, the Master Servicer
      shall, or shall cause the applicable Servicer to, dispose of any REO Property
      within three years of its acquisition by the Trust Fund unless the Master
      Servicer has received a grant of extension from the Internal Revenue Service
      to
      the effect that, under the REMIC Provisions, the REMIC may hold REO Property
      for
      a longer period without causing an Adverse REMIC Event. If the Master Servicer
      has received such an extension, then the Master Servicer, acting on the
      Trustee’s behalf hereunder, shall, or shall cause the Servicer to, continue to
      attempt to sell the REO Property for its fair market value for such period
      longer than three years as such extension permits (the “Extended Period”). If
      the Master Servicer has not received such an extension and the Master Servicer
      or the applicable Servicer, acting on behalf of the Trustee hereunder, is unable
      to sell the REO Property within 33 months after its acquisition by the Trust
      Fund or if the Master Servicer has received such an extension, and the Master
      Servicer or such Servicer is unable to sell the REO Property within the period
      ending three months before the close of the Extended Period, the Master Servicer
      shall cause such Servicer, before the end of the three year period or the
      Extended Period, as applicable, to (i) purchase such REO Property at a price
      equal to the REO Property’s fair market value or (ii) auction the REO Property
      to the highest bidder (which may be such Servicer) in an auction reasonably
      designed to produce a fair price prior to the expiration of the three year
      period or the Extended Period, as the case may be.

     

    
      
        
        

      

      
        157

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XI.

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      11.01 Binding
      Nature of Agreement; Assignment.

     

    This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and permitted assigns.

     

    Section
      11.02 Entire
      Agreement.

     

    This
      Agreement contains the entire agreement and understanding among the parties
      hereto with respect to the subject matter hereof, and supersedes all prior
      and
      contemporaneous agreements, understandings, inducements and conditions, express
      or implied, oral or written, of any nature whatsoever with respect to the
      subject matter hereof. The express terms hereof control and supersede any course
      of performance and/or usage of the trade inconsistent with any of the terms
      hereof.

     

    Section
      11.03 Amendment.

     

    (a) This
      Agreement may be amended from time to time by the Depositor, the Master Servicer
      and the Trustee, with the consent of the NIMS Insurer, and without notice to
      or
      the consent of any of the Holders, (i) to cure any ambiguity, (ii) to cause
      the
      provisions herein to conform to or be consistent with or in furtherance of
      the
      statements made with respect to the Certificates, the Trust Fund or this
      Agreement in any Offering Document, or to correct or supplement any provision
      herein which may be inconsistent with any other provisions herein or with the
      provisions of any Servicing Agreement, (iii) to make any other provisions with
      respect to matters or questions arising under this Agreement or (iv) to add,
      delete, or amend any provisions to the extent necessary or desirable to comply
      with any requirements imposed by the Code and the REMIC Provisions. No such
      amendment effected pursuant to the preceding sentence shall, as evidenced by
      an
      Opinion of Counsel, result in an Adverse REMIC Event, nor shall such amendment
      effected pursuant to clause (iii) of such sentence adversely affect in any
      material respect the interests of any Holder. Prior to entering into any
      amendment without the consent of Holders pursuant to this paragraph, the Trustee
      and the NIMS Insurer shall be provided with an Opinion of Counsel addressed
      to
      the Trustee and the NIMS Insurer (at the expense of the party requesting such
      amendment) to the effect that such amendment is permitted under this Section.
      Any such amendment shall be deemed not to adversely affect in any material
      respect any Holder, if the Trustee and the NIMS Insurer receive written
      confirmation from each Rating Agency that such amendment will not cause such
      Rating Agency to reduce the then current rating assigned to the Certificates
      (and any Opinion of Counsel requested by the Trustee in connection with any
      such
      amendment may rely expressly on such confirmation as the basis
      therefor).

     

    
      
        
        

      

      
        158

        
          

        

      

      
        
        

      

    

     

    (b) This
      Agreement may also be amended from time to time by the Depositor, the Master
      Servicer, the NIMS Insurer and the Trustee, with the consent of the Holders
      of
      not less than 66 2/3% of the Class Principal Amount or Class Notional
      Amount (or Percentage Interest) of each Class of Certificates (other than the
      Grantor Trust Certificates) affected thereby for the purpose of adding any
      provisions to or changing in any manner or eliminating any of the provisions
      of
      this Agreement or of modifying in any manner the rights of the Holders;
      provided, however, that no such amendment shall be made unless the Trustee
      receives an Opinion of Counsel addressed to the Trustee and the NIMS Insurer,
      at
      the expense of the party requesting the change, that such change will not cause
      an Adverse REMIC Event; and provided further, that no such amendment may (i)
      reduce in any manner the amount of, or delay the timing of, payments received
      on
      Mortgage Loans which are required to be distributed on any Certificate, without
      the consent of the Holder of such Certificate or (ii) reduce the aforesaid
      percentages of Class Principal Amount (or Percentage Interest) of Certificates
      of each Class, the Holders of which are required to consent to any such
      amendment without the consent of the Holders of 100% of the Class Principal
      Amount or Class Notional Amount (or Percentage Interest) of each Class of
      Certificates affected thereby. For purposes of this paragraph, references to
      “Holder” or “Holders” shall be deemed to include, in the case of any Class of
      Book-Entry Certificates, the related Certificate Owners.

     

    (c) Promptly
      after the execution of any such amendment, the Trustee shall furnish written
      notification of the substance of such amendment to each Holder, the NIMS
      Insurer, the Depositor and to the Rating Agencies.

     

    (d) It
      shall
      not be necessary for the consent of Holders under this Section 11.03 to approve
      the particular form of any proposed amendment, but it shall be sufficient if
      such consent shall approve the substance thereof. The manner of obtaining such
      consents and of evidencing the authorization of the execution thereof by Holders
      shall be subject to such reasonable regulations as the Trustee may
      prescribe.

     

    (e) Notwithstanding
      anything to the contrary in any Servicing Agreement, the Trustee shall not
      consent to any amendment of any Servicing Agreement unless (i) such amendment
      is
      effected pursuant to the standards provided in this Section with respect to
      amendment of this Agreement and (ii) except for a Permitted Servicing Amendment,
      any such amendment pursuant to Section 11.03(a)(iii) shall not be materially
      inconsistent with the provisions of such Servicing Agreement.

     

    
      
        
        

      

      
        159

        
          

        

      

      
        
        

      

    

     

    (f) Notwithstanding
      anything to the contrary in this Section 11.03, this Agreement may be amended
      from time to time by the Depositor, the Master Servicer and the Trustee to
      the
      extent necessary, in the judgment of the Depositor and its counsel, to comply
      with the Rules, Regulation AB and any related rules and
      regulations.

     

    Section
      11.04 Voting
      Rights.

     

    Except
      to
      the extent that the consent of all affected Certificateholders is required
      pursuant to this Agreement, with respect to any provision of this Agreement
      requiring the consent of Certificateholders representing specified percentages
      of aggregate outstanding Certificate Principal Amount or Class Notional Amount
      (or Percentage Interest), Certificates owned by the Depositor, the Master
      Servicer, the Trustee, the Servicer or Affiliates thereof are not to be counted
      so long as such Certificates are owned by the Depositor, the Master Servicer,
      the Trustee, any Servicer or any Affiliate thereof.

     

    So
      long
      as the Class 1-A2A Grantor Trust, Class 1-A31 Grantor Trust or Class 1-A32A1
      Grantor Trust exists, the Trustee shall exercise the Voting Rights of the Class
      1-A2AU, Class 1-A31U and Class 1-A31U Certificates, as applicable, only as
      directed by Holders of the related Class 1-A2A, Class 1-A31 and Class 1-A31
      Certificates.

     

    Section
      11.05 Provision
      of Information.

     

    (a) For
      so
      long as any of the Certificates of any series or Class are “restricted
      securities” within the meaning of Rule 144(a)(3) under the Act, each of the
      Depositor, the Master Servicer and the Trustee agree to cooperate with each
      other to provide to any Certificateholders, and to any prospective purchaser
      of
      Certificates designated by such holder, upon the request of such holder or
      prospective purchaser, any information required to be provided to such holder
      or
      prospective purchaser to satisfy the condition set forth in Rule 144A(d)(4)
      under the Act. Any reasonable, out-of-pocket expenses incurred by the Trustee
      in
      providing such information shall be reimbursed by the Depositor.

     

    (b) The
      Trustee shall make available to any person to whom a Prospectus was delivered,
      upon the request of such person specifying the document or documents requested,
      (i) a copy (excluding exhibits) of any report on Form 8-K, Form 10-D or Form
      10-K filed with the Commission pursuant to Section 6.20(c), (d) or (e) and
      (ii)
      a copy of any other document incorporated by reference in the Prospectus (to
      the
      extent that the Trustee has such documents in its possession or such documents
      are reasonably obtainable by the Trustee). Any reasonable out-of-pocket expenses
      incurred by the Trustee in providing copies of such documents shall be
      reimbursed by the Depositor.

     

    (c) On
      each
      Distribution Date, the Trustee shall make available on its website or otherwise
      deliver to the Depositor a copy of the report delivered to Certificateholders
      pursuant to Section 4.03.

     

    Section
      11.06 Governing
      Law.

     

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

     

    
      
        
        

      

      
        160

        
          

        

      

      
        
        

      

    

     

    Section
      11.07 Notices.

     

    All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given when received by (a) in the case of the
      Depositor, Structured Asset Securities Corporation, 745 Seventh Avenue, 7th
      Floor, New York, New York 10019, Attention: Mortgage Finance, LXS 2006-16N,
      (b)
      in the case of the Seller, Lehman Brothers Holdings Inc., 745 Seventh Avenue,
      7th Floor, New York, New York 10019, Attention: Mortgage Finance, LXS 2006-16N,
      (c) in the case of the Trustee, U.S. Bank National Association, One Federal
      Street, Boston, M.A. 02110, Attention: Corporate Trust Services, (d) in the
      case
      of the NIMS Insurer, if any, as set forth in the Indenture and (e) in the case
      of the Master Servicer, Aurora Loan Services LLC, 10350 Park Meadows Drive,
      Littleton, Colorado 80124; Attention: Master Servicing, LXS 2006-16N or, as
      to
      each party such other address as may hereafter be furnished by such party to
      the
      other parties in writing. All demands, notices and communications to a party
      hereunder shall be in writing and shall be deemed to have been duly given when
      delivered to such party at the relevant address, facsimile number or electronic
      mail address set forth above or at such other address, facsimile number or
      electronic mail address as such party may designate from time to time by written
      notice in accordance with this Section 11.07.

     

    Section
      11.08 Severability
      of Provisions.

     

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

     

    Section
      11.09 Indulgences;
      No Waivers.

     

    Neither
      the failure nor any delay on the part of a party to exercise any right, remedy,
      power or privilege under this Agreement shall operate as a waiver thereof,
      nor
      shall any single or partial exercise of any right, remedy, power or privilege
      preclude any other or further exercise of the same or of any other right,
      remedy, power or privilege, nor shall any waiver of any right, remedy, power
      or
      privilege with respect to any occurrence be construed as a waiver of such right,
      remedy, power or privilege with respect to any other occurrence. No waiver
      shall
      be effective unless it is in writing and is signed by the party asserted to
      have
      granted such waiver.

     

    Section
      11.10 Headings
      Not To Affect Interpretation.

     

    The
      headings contained in this Agreement are for convenience of reference only,
      and
      they shall not be used in the interpretation hereof.

     

    
      
        
        

      

      
        161

        
          

        

      

      
        
        

      

    

     

    Section
      11.11 Benefits
      of Agreement.

     

    Nothing
      in this Agreement or in the Certificates, express or implied, shall give to
      any
      Person, other than the parties to this Agreement and their successors hereunder,
      the Holders of the Certificates, any benefit or any legal or equitable right,
      power, remedy or claim under this Agreement, except to the extent specified
      in
      Section 11.15.

     

    Section
      11.12 Special
      Notices to the Rating Agencies and NIMS Insurer.

     

    (a) The
      Depositor shall give prompt notice to the Rating Agencies and the NIMS Insurer
      of the occurrence of any of the following events of which it has
      notice:

     

    (i) any
      amendment to this Agreement pursuant to Section 11.03;

     

    (ii) any
      Assignment by the Master Servicer of its rights hereunder or delegation of
      its
      duties hereunder;

     

    (iii) the
      occurrence of any Event of Default described in Section 6.14;

     

    (iv) any
      notice of termination given to the Master Servicer pursuant to Section 6.14
      and
      any resignation of the Master Servicer hereunder;

     

    (v) the
      appointment of any successor to any Master Servicer pursuant to Section
      6.14;

     

    (vi) the
      making of a final payment pursuant to Section 7.02; and

     

    (vii) any
      termination of the rights and obligations of any Servicer under any Servicing
      Agreement.

     

    (b) All
      notices to the Rating Agencies provided for this Section shall be in writing
      and
      sent by first class mail, telecopy or overnight courier, as
      follows:

     

    If
      to
      Moody’s, to:

     

    Moody’s
      Investors Service, Inc.

    99
      Church
      Street

    New
      York,
      New York 10007

    Attention:
      Residential Mortgages

     

    If
      to
      S&P, to:

    Standard
      & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
      Inc.

    55
      Water
      Street

    New
      York,
      New York 10014

    Attention:
      Residential Mortgages

     

    (c) The
      Trustee shall provide or make available to the Rating Agencies and the NIMS
      Insurer reports prepared pursuant to Section 4.03. In addition, the Trustee
      shall, at the expense of the Trust Fund, make available to each Rating Agency
      such information as such Rating Agency may reasonably request regarding the
      Certificates or the Trust Fund, to the extent that such information is
      reasonably available to the Trustee.

     

    
      
        
        

      

      
        162

        
          

        

      

      
        
        

      

    

     

    Section
      11.13 Conflicts.

     

    To
      the
      extent that the terms of this Agreement conflict with the terms of any Servicing
      Agreement, such Servicing Agreement shall govern unless such provisions shall
      adversely affect the Trustee, the Trust Fund or the status of any REMIC created
      hereunder as a REMIC, provided that nothing in this Section 11.13 shall be
      construed to limit the rights or obligations of the Master Servicer under
      Section 9.05 of this Agreement.

     

    Section
      11.14 Counterparts.

     

    This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original, and all of which together shall constitute one and
      the
      same instrument.

     

    Section
      11.15 Transfer
      of Servicing.

     

    The
      Seller agrees that it shall provide written notice to the Master Servicer,
      the
      NIMS Insurer and the Trustee thirty days prior to any proposed transfer or
      assignment by the Seller of its rights under any Servicing Agreement or of
      the
      servicing thereunder from time to time with respect to any Mortgage Loan or
      group of Mortgage Loans, or delegation of its rights or duties thereunder or
      any
      portion thereof to any other Person other than the initial Servicer under such
      Servicing Agreement; provided, however, that the Seller shall not be required
      to
      provide prior notice of any transfer of servicing that occurs within three
      months following the Closing Date to an entity that is a Servicer on the Closing
      Date. In addition, the ability of the Seller to transfer or assign its rights
      and delegate its duties under a Servicing Agreement or to transfer the servicing
      thereunder, from time to time with respect to any Mortgage Loan or group of
      Mortgage Loans, to a successor servicer shall be subject to the following
      conditions:

     

    (i) Satisfaction
      of the conditions to such transfer as set forth in the Servicing Agreement
      including, without limitation, receipt of written consent of the Master Servicer
      to such transfer;

     

    (ii) Receipt
      of the written consent of the NIMS Insurer, such consent not to be unreasonably
      withheld;

     

    (iii) Such
      successor servicer must be qualified to service loans for Fannie Mae or Freddie
      Mac, and must be a member in good standing of MERS;

     

    (iv) Such
      successor servicer must satisfy the seller/servicer eligibility standards in
      the
      applicable Servicing Agreement, exclusive of any experience in mortgage loan
      origination and must be reasonably acceptable to the Master Servicer, whose
      approval shall not be unreasonably withheld;

     

    (v) Such
      successor servicer must execute and deliver to the Trustee and the Master
      Servicer an agreement, in form and substance reasonably satisfactory to the
      Trustee and the Master Servicer, that contains an assumption by such successor
      servicer of the due and punctual performance and observance of each covenant
      and
      condition to be performed and observed by the applicable Servicer under the
      related Servicing Agreement or such successor servicer shall execute and deliver
      to the Trustee and Master Servicer a servicing agreement which contains
      customary and reasonable servicing provisions and which will not cause either
      Rating Agency to qualify, withdraw or downgrade the then-current rating of
      any
      of the Certificates or, (i) in the case of a transfer of servicing to a party
      that is already a Servicer pursuant to this Agreement, an agreement to add
      the
      related Mortgage Loans to the Servicing Agreement already in effect with such
      Servicer and (ii) in the case of a transfer of servicing to a Special Servicer
      pursuant to Section 9.32 herein, a special servicing agreement in the form
      of
      that attached to the applicable Servicing Agreement;

     

    
      
        
        

      

      
        163

        
          

        

      

      
        
        

      

    

     

    (vi) If
      the
      successor servicer is not a Servicer of Mortgage Loans at the time of the
      transfer, there must be delivered to the Trustee and the Master Servicer a
      letter from each Rating Agency to the effect that such transfer of servicing
      will not result in a qualification, withdrawal or downgrade of the then-current
      rating of any of the Certificates; and

     

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

     

    
      
        
        

      

      
        164

        
          

        

      

      
        
        

      

    

     

    Section
      11.16 Third
      Party Rights.

     

    The
      NIMS
      Insurer shall be deemed a third-party beneficiary of this Agreement to the
      same
      extent as if it were a party hereto, and shall have the right to enforce the
      provisions of this Agreement.

     

    [SIGNATURE
      PAGE IMMEDIATELY FOLLOWS]

     

    
      
        
        

      

      
        165

        
          

        

      

      
        
        

      

    

     

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

    
      	 	 	 
	 	
              STRUCTURED
                ASSET SECURITIES 

              
                      CORPORATION,
                  as Depositor

              

            
	 	 
	 	 
	
            	By:  	
            
	 	 	
              

              Name:
                Michael C. Hitzmann

              Title:
                Senior Vice President  

            
	 	 	 
	 	 	 
	 	
              U.S.
                BANK NATIONAL ASSOCIATION,

                    not
                in its individual capacity, but solely

                    as
                Trustee 

            
	 	 	 
	 	 	 
	 	By: 	 
	 	 	
              

              Name:
                James H. Brynes

              Title:
                Vice President  

            
	 	 	 
	 	 	 
	 	
              AURORA
                LOAN SERVICES LLC,

                    as
                Master Servicer 

            
	 	 	 
	 	 	 
	 	By: 	 
	 	
              

              Name:
                Jerald W. Dreyer

              Title:
                Vice President

            
	 	
            

    

    
      	 	 	 	 
	
              Solely
                for purposes of Section 11.15, 

                accepted
                  and agreed to by:

              

            	 	 
	 	 	 
	
              LEHMAN
                BROTHERS HOLDINGS INC. 

            	 	 
	 	 	 
	 	 	 
	By:	 	 	
            
	
            	
              

              Name:
                Ellen Kiernan

              Title:
                Authorized Signatory  

            	 	
            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    FORMS
      OF
      CERTIFICATES

     

    [Intentionally
      Omitted]

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-1

     

    FORM
      OF
      INITIAL CERTIFICATION

    

      
        	 	
                Date

              

      

    

     

    U.S.
      Bank
      National Association

    1
      Federal
      Street

    Boston,
      M.A. 02110

    Attention:
      Corporate Trust Services

     

    Aurora
      Loan Services LLC, as Master Servicer

    10350
      Park Meadows Drive

    Littleton,
      Colorado 80124

     

    Structured
      Asset Securities Corporation, as Depositor

    745
      Seventh Avenue, 7th Floor

    New
      York,
      New York 10019

    Attention:
      Mortgage Finance, LXS 2006-16N

     

    [NIMS
      Insurer, if applicable]

     

    
      	 	
              Re:

            	
              Trust
                Agreement dated as of September 1, 2006 (the “Trust Agreement”), by and
                among Structured Asset Securities Corporation, as Depositor, Aurora
                Loan
                Services LLC, as Master Servicer and U.S. Bank National Association,
                as
                Trustee with respect to Lehman XS Trust Mortgage Pass-Through
                Certificates, Series 2006-16N

            	 

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02(a) of the Trust Agreement, subject to review of
      the
      contents thereof, the undersigned, as Custodian, hereby certifies that it has
      received the documents listed in Section 2.01(b) of the Trust Agreement for
      each
      Mortgage File pertaining to each Mortgage Loan listed on Schedule A, to the
      Trust Agreement, subject to any exceptions noted on Schedule I
      hereto.

     

    Capitalized
      words and phrases used herein and not otherwise defined herein shall have the
      respective meanings assigned to them in the Trust Agreement. This Certificate
      is
      subject in all respects to the terms of Section 2.02 of the Trust Agreement
      and
      the Trust Agreement sections cross-referenced therein.

    
      	 	 	 
	 	[Custodian]
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

              Title:

            
	 	
            

    

     

    
      
        
        

      

      
        B-1-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-2

     

    FORM
      OF
      INTERIM CERTIFICATION

    
      

        
          	 	
                  Date

                

        

      

       

    

    U.S.
      Bank
      National Association

    1
      Federal
      Street

    Boston,
      M.A. 02110

    Attention:
      Corporate Trust Services

     

    Aurora
      Loan Services LLC, as Master Servicer

    10350
      Park Meadows Drive

    Littleton,
      Colorado 80124

     

    Structured
      Asset Securities Corporation, as Depositor

    745
      Seventh Avenue, 7th Floor

    New
      York,
      New York 10019

    Attention:
      Mortgage Finance, LXS 2006-16N

     

    [NIMS
      Insurer, if applicable]

     

    
      	 	
              Re:

            	
              Trust
                Agreement dated as of September 1, 2006 (the “Trust Agreement”), by and
                among Structured Asset Securities Corporation, as Depositor, Aurora
                Loan
                Services LLC, as Master Servicer and U.S. Bank National Association,
                as
                Trustee with respect to Lehman XS Trust Mortgage Pass-Through
                Certificates, Series 2006-16N

            	 

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02(b) of the Trust Agreement, the undersigned, as
      Custodian, hereby certifies that as to each Mortgage Loan listed in the Mortgage
      Loan Schedule (other than any Mortgage Loan paid in full or listed on Schedule
      I
      hereto) it (or its custodian) has received the applicable documents listed
      in
      Section 2.01(b) of the Trust Agreement.

     

    The
      undersigned hereby certifies that as to each Mortgage Loan identified on the
      Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I
      hereto, it has reviewed the documents listed in Section 2.01(b) of the Trust
      Agreement and has determined that each such document appears regular on its
      face
      and appears to relate to the Mortgage Loan identified in such
      document.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Trust Agreement. This Certificate is qualified in all respects
      by
      the terms of said Trust Agreement including, but not limited to, Section
      2.02(b).

    
      	 	 	 
	 	
              [Custodian]

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

              Title:

            
	 	
            

    

    

    
      
        
        

      

      
        B-2-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-3

     

    FORM
      OF
      FINAL CERTIFICATION

    
      
        

          
            	 	
                    Date

                  

          

        

         

      

    

    U.S.
      Bank
      National Association

    1
      Federal
      Street

    Boston,
      M.A. 02110

    Attention:
      Corporate Trust Services

     

    Aurora
      Loan Services LLC, as Master Servicer

    10350
      Park Meadows Drive

    Littleton,
      Colorado 80124

     

    Structured
      Asset Securities Corporation, as Depositor

    745
      Seventh Avenue, 7th Floor

    New
      York,
      New York 10019

    Attention:
      Mortgage Finance, LXS 2006-16N

     

    [NIMS
      Insurer, if applicable]

     

    
      	 	
              Re:

            	
              Trust
                Agreement dated as of September 1, 2006 (the “Trust Agreement”), by and
                among Structured Asset Securities Corporation, as Depositor, Aurora
                Loan
                Services LLC, as Master Servicer and U.S. Bank National Association,
                as
                Trustee with respect to Lehman XS Trust Mortgage Pass-Through
                Certificates, Series 2006-16N

            	 

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02(d) of the Trust Agreement, the undersigned, as
      Custodian on behalf of the Trustee, hereby certifies that as to each Mortgage
      Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid
      in
      full or listed on Schedule I hereto) it (or its custodian) has received the
      applicable documents listed in Section 2.01(b) of the Trust
      Agreement.

     

    The
      undersigned hereby certifies that as to each Mortgage Loan identified in the
      Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I
      hereto, it has reviewed the documents listed in Section 2.01(b) of the Trust
      Agreement and has determined that each such document appears to be complete
      and,
      based on an examination of such documents, the information set forth in items
      (i) through (vi) of the Mortgage Loan Schedule is correct.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Trust Agreement. This Certificate is qualified in all respects
      by
      the terms of said Trust Agreement.

    
      	 	 	 
	 	
              [Custodian]

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

              Title:

            
	 	
            

    

     

    
      
        
        

      

      
        B-3-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-4

     

    FORM
      OF
      ENDORSEMENT

     

    Pay
      to
      the order of U.S. Bank National Association, as trustee (the “Trustee”), under a
      Trust Agreement dated as of September 1, 2006, among Structured Asset Securities
      Corporation, as depositor, Aurora Loan Services LLC, as master servicer, and
      the
      Trustee, relating to Lehman XS Trust Mortgage Pass-Through Certificates, Series
      2006-16N, without recourse.

    
      	 	 	 
	 	
            
	 	
              

              [current
                signatory on note]  

            
	 	 
	 	 
	
            	By:  	
            
	 	
              

              Name:
                

              Title:
                

            
	 	
            

    

    

    
      
        
        

      

      
        B-4-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

     

    REQUEST
      FOR RELEASE OF DOCUMENTS AND RECEIPT

    
      
        

          
            	 	
                    Date

                  

          

        

      

    

    

    [Addressed
      to Trustee

    or,
      if
      applicable, Custodian]

     

    In
      connection with the administration of the mortgages held by you as Trustee
      under
      a certain Trust Agreement dated as of September 1, 2006 by and among Structured
      Asset Securities Corporation, as Depositor, U.S. Bank National Association,
      as
      Trustee, and Aurora Loan Services LLC, as Master Servicer (the “Trust
      Agreement”), the undersigned Servicer hereby requests a release of the Mortgage
      File held by you as Trustee with respect to the following described Mortgage
      Loan for the reason indicated below.

     

    Mortgagor’s
      Name:

     

    Address:

     

    Loan
      No.:

     

    Reason
      for requesting file:

     

    1. Mortgage
      Loan paid in full. (The Servicer hereby certifies that all amounts received
      in
      connection with the loan have been or will be credited to the Certificate
      Account pursuant to the Trust Agreement.)

     

    2. The
      Mortgage Loan is being foreclosed.

     

    3. Mortgage
      Loan substituted. (The Servicer hereby certifies that a Qualifying Substitute
      Mortgage Loan has been assigned and delivered to you along with the related
      Mortgage File pursuant to the Trust Agreement.)

     

    4. Mortgage
      Loan repurchased. (The Servicer hereby certifies that the applicable Purchase
      Price has been credited to the Certificate Account pursuant to the Trust
      Agreement.)

     

    5. Other.
      (Describe)

     

    The
      undersigned acknowledges that the above Mortgage File will be held by the
      undersigned in accordance with the provisions of the Trust Agreement and will
      be
      returned to you within ten (10) days of our receipt of the Mortgage File, except
      if the Mortgage Loan has been paid in full, or repurchased or substituted for
      a
      Qualifying Substitute Mortgage Loan (in which case the Mortgage File will be
      retained by us permanently) and except if the Mortgage Loan is being foreclosed
      (in which case the Mortgage File will be returned when no longer required by
      us
      for such purpose).

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    Capitalized
      terms used herein shall have the meanings ascribed to them in the Trust
      Agreement.

    
      	 	 	 
	 	
              [Name
                of Servicer]

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                

              Title:
                Servicing Officer

            
	 	
            

    

    

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D-1

     

    FORM
      OF
      RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEREE)

    

      
        	
                STATE
                  OF 

              	
                )

              
	 	
                )
                  ss.:

              
	
                COUNTY
                  OF 

              	
                )

              

      

    

     

    [NAME
      OF
      OFFICER], _________________ being first duly sworn, deposes and
      says:

     

    
      	 	
              1.

            	
              That
                he [she] is [title of officer] ________________________ of [name
                of
                Purchaser] _________________________________________ (the “Purchaser”), a
                _______________________ [description of type of entity] duly organized
                and
                existing under the laws of the [State of __________] [United States],
                on
                behalf of which he [she] makes this
                affidavit.

            

    

     

    
      	 	
              2.

            	
              That
                the Purchaser’s Taxpayer Identification Number is [
                ].

            

    

     

    
      	 	
              3.

            	
              That
                the Purchaser is not a “disqualified organization” within the meaning of
                Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended
                (the
                “Code”) and will not be a “disqualified organization” as of [date of
                transfer], and that the Purchaser is not acquiring a Residual Certificate
                (as defined in the Agreement) for the account of, or as agent (including
                a
                broker, nominee, or other middleman) for, any person or entity from
                which
                it has not received an affidavit substantially in the form of this
                affidavit. For these purposes, a “disqualified organization” means the
                United States, any state or political subdivision thereof, any foreign
                government, any international organization, any agency or instrumentality
                of any of the foregoing (other than an instrumentality if all of
                its
                activities are subject to tax and a majority of its board of directors
                is
                not selected by such governmental entity), any cooperative organization
                furnishing electric energy or providing telephone service to persons
                in
                rural areas as described in Code Section 1381(a)(2)(C), any “electing
                large partnership” within the meaning of Section 775 of the Code, or any
                organization (other than a farmers’ cooperative described in Code Section
                521) that is exempt from federal income tax unless such organization
                is
                subject to the tax on unrelated business income imposed by Code Section
                511.

            

    

     

    
      	 	
              4.

            	
              That
                the Purchaser is not, and on _______________ [date of transfer] will
                not
                be, an employee benefit plan or other arrangement subject to Title
                I of
                the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
                a plan subject to Section 4975 of the Internal Revenue Code of 1986,
                as
                amended (the “Code”) or a plan subject to any provisions under any
                federal, state, local, non-U.S. or other laws or regulations that
                are
                substantively similar to the foregoing provisions of ERISA or the
                Code
                (collectively, a “Plan”), and is not directly or indirectly acquiring a
                Residual Certificate for, on behalf of or with any assets of any
                such
                Plan.

            

    

     

    
      
        
        

      

      
        D-1-1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              5.

            	
              That
                the Purchaser hereby acknowledges that under the terms of the Trust
                Agreement (the “Agreement”) by and among Structured Asset Securities
                Corporation, as Depositor, Aurora Loan Services LLC, as Master Servicer,
                and U.S. Bank National Association, as Trustee, dated as of September
                1,
                2006, relating to Lehman XS Trust Mortgage Pass-Through Certificates,
                Series 2006-16N, no transfer of the Residual Certificates shall be
                permitted to be made to any person unless the Depositor and Trustee
                have
                received a certificate from such transferee containing the representations
                in paragraphs 3 and 4 hereof.

            

    

     

    
      	 	
              6.

            	
              That
                the Purchaser does not hold REMIC residual securities as nominee
                to
                facilitate the clearance and settlement of such securities through
                electronic book entry changes in accounts of participating organizations
                (such entity, a “Book-Entry
                Nominee”).

            

    

     

    
      	 	
              7.

            	
              That
                the Purchaser does not have the intention to impede the assessment
                or
                collection of any federal, state or local taxes legally required
                to be
                paid with respect to such Residual Certificate, and that the Purchaser
                has
                provided financial statements or other financial information requested
                by
                the transferor in connection with the transfer of the Residual Certificate
                in order to permit the transferor to assess the financial capability
                of
                the Purchaser to pay such taxes.

            

    

     

    
      	 	
              8.

            	
              That
                the Purchaser will not transfer a Residual Certificate to any person
                or
                entity (i) as to which the Purchaser has actual knowledge that the
                requirements set forth in paragraph 3, paragraph 6 or paragraph 10
                hereof
                are not satisfied or that the Purchaser has reason to believe does
                not
                satisfy the requirements set forth in paragraph 7 hereof, and (ii)
                without
                obtaining from the prospective Purchaser an affidavit substantially
                in
                this form and providing to the Trustee a written statement substantially
                in the form of Exhibit D-2 to the
                Agreement.

            

    

     

    
      	 	
              9.

            	
              That
                the Purchaser understands that, as the holder of a Residual Certificate,
                the Purchaser may incur tax liabilities in excess of any cash flows
                generated by the interest and that it intends to pay taxes associated
                with
                holding such Residual Certificate as they become
                due.

            

    

     

    
      	 	
              10.

            	
              That
                the Purchaser (i) is not a Non U.S. Person or (ii) is a Non U.S.
                Person
                that holds a Residual Certificate in connection with the conduct
                of a
                trade or business within the United States and has furnished the
                transferor and the Trustee with an effective Internal Revenue Service
                Form
                W-8ECI (Certificate of Foreign Person’s Claim for Exemption From
                Withholding on Income Effectively Connected With the Conduct of a
                Trade or
                Business in the United States) or successor form at the time and
                in the
                manner required by the Code or (iii) is a Non U.S. Person that has
                delivered to both the transferor and the Trustee an opinion of a
                nationally recognized tax counsel to the effect that the transfer
                of such
                Residual Certificate to it is in accordance with the requirements
                of the
                Code and the regulations promulgated thereunder and that such transfer
                of
                a Residual Certificate will not be disregarded for federal income
                tax
                purposes. “Non U.S. Person” means an individual, corporation, partnership
                or other person other than (i) a citizen or resident of the United
                States;
                (ii) a corporation, partnership or other entity created or organized
                in or
                under the laws of the United States or any state thereof, including
                for
                this purpose, the District of Columbia; (iii) an estate that is subject
                to
                U.S. federal income tax regardless of the source of its income; (iv)
                a
                trust if a court within the United States is able to exercise primary
                supervision over the administration of the trust and one or more
                United
                States trustees have authority to control all substantial decisions
                of the
                trust; and, (v) to the extent provided in Treasury regulations, certain
                trusts in existence on August 20, 1996 that are treated as United
                States
                persons prior to such date and elect to continue to be treated as
                United
                States persons.

            

    

     

    
      
        
        

      

      
        D-1-2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              11.

            	
              That
                the Purchaser agrees to such amendments of the Trust Agreement as
                may be
                required to further effectuate the restrictions on transfer of any
                Residual Certificate to such a “disqualified organization,” an agent
                thereof, a Book Entry Nominee, or a person that does not satisfy
                the
                requirements of paragraph 7 and paragraph 10
                hereof.

            

    

     

    
      	 	
              12.

            	
              That
                the Purchaser consents to the designation of the Trustee as its agent
                to
                act as “tax matters person” of the Trust Fund pursuant to the Trust
                Agreement.

            

    

     

    
      
        
        

      

      
        D-1-3

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Purchaser has caused this instrument to be executed on
      its
      behalf, pursuant to authority of its Board of Directors, by its [title of
      officer] this _____ day of __________, 20__.

    
      	 	 	 
	 	
            
	 	
              
[name
              of Purchaser]  
	 	 
	 	 
	
            	By:  	
            
	 	
              

              Name:
                

              Title:
                

            
	 	
            

    

     

    Personally
      appeared before me the above named [name of officer] ________________, known
      or
      proved to me to be the same person who executed the foregoing instrument and
      to
      be the [title of officer] _________________ of the Purchaser, and acknowledged
      to me that he [she] executed the same as his [her] free act and deed and the
      free act and deed of the Purchaser.

     

    Subscribed
      and sworn before me this _____ day of __________, 20__.

     

    NOTARY
      PUBLIC

     

    COUNTY
      OF_____________________

     

    STATE
      OF______________________

     

    My
      commission expires the _____ day of __________, 20__.

     

    
      
        
        

      

      
        D-1-4

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D-2

     

    RESIDUAL
      CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEROR)

    

      
        	 	 
	 	
                Date

              

      

    

     

    
      	 	
              Re:

            	
              Lehman
                XS Trust

              
                Mortgage
                  Pass-Through Certificates, Series
                  2006-16N

              

            

    

     

    _______________________
      (the “Transferor”) has reviewed the attached affidavit of
      _____________________________ (the “Transferee”), and has no actual knowledge
      that such affidavit is not true and has no reason to believe that the
      information contained in paragraph 7 thereof is not true, and has no reason
      to
      believe that the Transferee has the intention to impede the assessment or
      collection of any federal, state or local taxes legally required to be paid
      with
      respect to a Residual Certificate. In addition, the Transferor has conducted
      a
      reasonable investigation at the time of the transfer and found that the
      Transferee had historically paid its debts as they came due and found no
      significant evidence to indicate that the Transferee will not continue to pay
      its debts as they become due.

    
      	 	 	 
	 	
              Very
                truly yours,

            
	 
 	 
 	 
 
	
            	
            	
            
	 	
              

              Name:

              Title:

            
	 	
            

    

    

    
      
        
        

      

      
        D-2-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

     

    SERVICING
      AGREEMENTS

     

    See
      Exhibits 99.2 and 99.5

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

     

    FORM
      OF
      RULE 144A TRANSFER CERTIFICATE

     

    
      	 	
              Re:

            	
              Lehman
                XS Trust

              
                Mortgage
                  Pass Through Certificates, Series
                  2006-16N

              

            

    

     

    Reference
      is hereby made to the Trust Agreement dated as of September 1, 2006 (the “Trust
      Agreement”) by and among Structured Asset Securities Corporation, as Depositor,
      Aurora Loan Services LLC, as Master Servicer, and U.S. Bank National
      Association, as Trustee. Capitalized terms used but not defined herein shall
      have the meanings given to them in the Trust Agreement.

     

    This
      letter relates to $__________ initial Certificate Balance of Class Certificates
      which are held in the form of Definitive Certificates registered in the name
      of
      (the “Transferor”). The Transferor has requested a transfer of such Definitive
      Certificates for Definitive Certificates of such Class registered in the name
      of
      [insert name of transferee].

     

    In
      connection with such request, and in respect of such Certificates, the
      Transferor hereby certifies that such Certificates are being transferred in
      accordance with (i) the transfer restrictions set forth in the Trust Agreement
      and the Certificates and (ii) Rule 144A under the Act to a purchaser that the
      Transferor reasonably believes is a “qualified institutional buyer” within the
      meaning of Rule 144A purchasing for its own account or for the account of a
      “qualified institutional buyer,” which purchaser is aware that the sale to it is
      being made in reliance upon Rule 144A, in a transaction meeting the requirements
      of Rule 144A and in accordance with any applicable securities laws of any state
      of the United States or any other applicable jurisdiction.

     

    This
      certificate and the statements contained herein are made for your benefit and
      the benefit of the Depositor.

    
      	 	 	 
	 	
              

            
	 	
              [Name
                of Transferor]

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name:
	 	Title:
              

    

     

    Dated:
      ___________, ____

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G

     

    FORM
      OF
      PURCHASER’S LETTER FOR

    INSTITUTIONAL
      ACCREDITED INVESTOR

    
      
        

          
            	 	
                    Date

                  

          

        

      

    

     

    Dear
      Sirs:

     

    In
      connection with our proposed purchase of $______________ principal amount of
      Lehman XS Trust Mortgage Pass Through Certificates, Series 2006-16N (the
“Privately Offered Certificates”) of the Structured Asset Securities Corporation
      (the “Depositor”), we confirm that:

     

    
      	 	
              (1)

            	
              We
                understand that the Privately Offered Certificates have not been,
                and will
                not be, registered under the Securities Act of 1933, as amended (the
                “Securities Act”), and may not be sold except as permitted in the
                following sentence. We agree, on our own behalf and on behalf of
                any
                accounts for which we are acting as hereinafter stated, that if we
                should
                sell any Privately Offered Certificates within two years of the later
                of
                the date of original issuance of the Privately Offered Certificates
                or the
                last day on which such Privately Offered Certificates are owned by
                the
                Depositor or any Affiliate of the Depositor we will do so only (A)
                to the
                Depositor, (B) to “qualified institutional buyers” (within the meaning of
                Rule 144A under the Securities Act) in accordance with Rule 144A
                under the
                Securities Act (“QIBs”), (C) pursuant to the exemption from registration
                provided by Rule 144 under the Securities Act, or (D) to an institutional
                “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or
                (7) of Regulation D under the Securities Act that is not a QIB (an
                “Institutional Accredited Investor”) which, prior to such transfer,
                delivers to the Trustee under the Trust Agreement dated as of September
                1,
                2006 by and among the Depositor, Aurora Loan Services LLC, as Master
                Servicer, and U.S. Bank National Association, as Trustee (the “Trustee”),
                a signed letter in the form of this letter; and we further agree,
                in the
                capacities stated above, to provide to any person purchasing any
                of the
                Privately Offered Certificates from us a notice advising such purchaser
                that resales of the Privately Offered Certificates are restricted
                as
                stated herein.

            

    

     

    
      	 	
              (2)

            	
              We
                understand that, in connection with any proposed resale of any Privately
                Offered Certificates to an Institutional Accredited Investor, we
                will be
                required to furnish to the Trustee and the Depositor a certification
                from
                such transferee in the form hereof to confirm that the proposed sale
                is
                being made pursuant to an exemption from, or in a transaction not
                subject
                to, the registration requirements of the Securities Act. We further
                understand that the Privately Offered Certificates purchased by us
                will
                bear a legend to the foregoing
                effect.

            

    

     

    
      	 	
              (3)

            	
              We
                are acquiring the Privately Offered Certificates for investment purposes
                and not with a view to, or for offer or sale in connection with,
                any
                distribution in violation of the Securities Act. We have such knowledge
                and experience in financial and business matters as to be capable
                of
                evaluating the merits and risks of our investment in the Privately
                Offered
                Certificates, and we and any account for which we are acting are
                each able
                to bear the economic risk of such
                investment.

            

    

     

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (4)

            	
              We
                are an Institutional Accredited Investor and we are acquiring the
                Privately Offered Certificates purchased by us for our own account
                or for
                one or more accounts (each of which is an Institutional Accredited
                Investor) as to each of which we exercise sole investment
                discretion.

            

    

     

    
      	 	
              (5)

            	
              We
                have received such information as we deem necessary in order to make
                our
                investment decision.

            

    

     

    
      	 	
              (6)

            	
              If
                we are acquiring an ERISA-Restricted Certificate, we are not a Plan
                and we
                are not acquiring the ERISA-Restricted Certificate for, on behalf
                of or
                with any assets of a Plan, except as may be permitted pursuant to
                Section
                3.03(d) of the Trust Agreement.

            

    

     

    Terms
      used in this letter which are not otherwise defined herein have the respective
      meanings assigned thereto in the Trust Agreement.

     

    
      
        
        

      

      
        G-2

        
          

        

      

      
        
        

      

    

    You
      and
      the Depositor are entitled to rely upon this letter and are irrevocably
      authorized to produce this letter or a copy hereof to any interested party
      in
      any administrative or legal proceeding or official inquiry with respect to
      the
      matters covered hereby.

    
      	 	 	 
	 	
              Very
                truly yours,

            
	 	 
	 	
              [Purchaser] 

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                

              Title:
                

            
	 	
            

    

    

    
      
        
        

      

      
        G-3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      H

     

    FORM
      OF
      ERISA TRANSFER AFFIDAVIT

    

      
        	
                STATE
                  OF NEW YORK

              	
                )

              
	 	
                )
                  ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              

      

    

     

    The
      undersigned, being first duly sworn, deposes and says as follows:

     

    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 in an ERISA-Restricted Certificate (A) is not, and on _______________
      [date of transfer] will not be, an employee benefit plan or arrangement subject
      to Title I of the Employee Retirement Income Security Act of 1974, as amended
      (“ERISA”), a plan subject to Section 4975 of the Internal Revenue Code of 1986,
      as amended (the “Code”) or a plan subject to any provisions under any federal,
      state, local, non-U.S. or other laws or regulations that are substantively
      similar to the foregoing provisions of ERISA or the Code (“Similar Law”)
      (collectively, a “Plan”), and is not directly or indirectly acquiring the
      Certificate for, on behalf of or with any assets of any such Plan, (B) if the
      Certificate has been the subject of an ERISA-Qualifying Underwriting, is an
      insurance company that is acquiring the Certificate with assets of an “insurance
      company general account” as defined in Section V(E) of Prohibited Transaction
      Class Exemption (“PTCE”) 95-60 and the acquisition and holding of the
      Certificate are covered and exempt under Sections I and III of PTCE 95-60,
      or
      (C) solely in the case of a Definitive Certificate, shall herewith deliver
      an
      Opinion of Counsel satisfactory to the Certificate Registrar, the Trustee and
      the Depositor, and upon which the Trustee, the Certificate Registrar and the
      Depositor shall be entitled to rely, to the effect that the acquisition and
      holding of such Certificate by the Investor will not result in a nonexempt
      prohibited transaction under Title I of ERISA or Section 4975 of the Code,
      or a
      violation of Similar Law, and will not subject the Trustee, the Master Servicer,
      the Certificate Registrar, any Servicer or the Depositor to any obligation
      in
      addition to those undertaken by such entities in the Trust Agreement, which
      Opinion of Counsel shall not be an expense of the Trustee, the Master Servicer,
      the Certificate Registrar, any Servicer or the Depositor.

     

    3. Either
      (i) the investor in a Grantor Trust Certificate is not, and is not acting for,
      on behalf of or with any assets of, an employee benefit plan or other
      arrangement subject to Title I of ERISA or plan subject to Section 4975 of
      the
      Code, or (ii) until the termination of the applicable Deferred Interest Cap
      Agreement, the acquisition and holding of the Grantor Trust Certificate by
      the
      investor are eligible for exemptive relief under any of Section 408(b)(17)
      of
      ERISA or Section 4975(d)(20) of the Code, PTCE 84-14, PTCE 90-1, PTCE 91-38,
      PTCE 95-60 or PTCE 96-23.

     

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

     

    4. The
      Investor hereby acknowledges that under the terms of the Trust Agreement (the
      “Agreement”) by and among Structured Asset Securities Corporation, as Depositor,
      Aurora Loan Services LLC, as Master Servicer, and U.S. Bank National
      Association, as Trustee, dated as of September 1, 2006, regarding Lehman XS
      Trust Mortgage Pass-Through Certificates, Series 2006-16N, no transfer of the
      ERISA-Restricted Certificates shall be permitted to be made to any person unless
      the Depositor and Trustee have received a certificate from such transferee
      in
      the form hereof.

     

    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___. 

            

    

    

    
      
        
        

      

      
        H-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

     

    [RESERVED]

     

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

EXHIBIT
        J

    

     

    [RESERVED]

     

    
      
        
        

      

      
        J-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      K

     

    CUSTODIAL
      AGREEMENTS

     

    [Intentionally
      Omitted]

    

    
      
        
        

      

      
        K-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      L

     

    [RESERVED]

     

    
      
        
        

      

      
        L-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      M

     

    [RESERVED]

     

    
      
        
        

      

      
        M-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      N

     

    FORMS
      OF
      CAP AGREEMENTS

     

    See
      Exhibit 99.7

     

    
      
        
        

      

      
        N-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      O

     

    [RESERVED]

     

    
      
        
        

      

      
        O-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      P

     

    FORMS
      OF
      DEFERRED INTEREST CAP AGREEMENTS

     

    See
      Exhibit 99.8

     

    
      
        
        

      

      
        P-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      Q-1

     

    ADDITIONAL
      FORM 10-D DISCLOSURE

     

    
      	
              Item
                on Form 10-D

            	 	
              Party
                Responsible

            
	
              Item
                1: Distribution and Pool Performance Information

              Any
                information required by 1121 which is NOT included on the Distribution
                Date Statement

            	 	
              Master
                Servicer (as to any Servicer, to the extent provided by such Servicer),
                Trustee
                (if Paying Agent), Paying Agent and Depositor (to the extent of any
                additional information that has not already been provided by the
                Master
                Servicer)

            
	 	 	 
	
              Item
                2: Legal Proceedings

              per
                Item 1117 of Reg AB

            	 	
              (i)
                All parties to the Trust Agreement (as to themselves), (ii) the Trustee
                as
                to the issuing entity, (iii) the Depositor as to the sponsor, any
                1110(b)
                originator, any 1100(d)(1) party and (iv) the Master Servicer, as
                to any
                Servicer, to the extent provided by such Servicer

            
	 	 	 
	
              Item
                3: Sale of Securities and Use of Proceeds

            	 	
              Depositor

            
	 	 	 
	
              Item
                4: Defaults Upon Senior Securities

            	 	
              Trustee

            
	 	 	 
	
              Item
                5: Submission of Matters to a Vote of Security Holders

            	 	
              Trustee

            
	 	 	 
	
              Item
                6: Significant Obligors of Pool Assets

            	 	
              Depositor

            
	 	 	 
	
              Item
                7: Significant Enhancement Provider Information

            	 	
              Depositor

            
	 	 	 
	
              Item
                8: Other Information

            	 	
              Any
                party responsible for disclosure items on Form 8-K

            
	 	 	 
	
              Item
                9: Exhibits

            	 	
              Depositor
                and Master Servicer (on behalf of any Servicer or on its own behalf
                if
                acting as a Servicer)

            

    

    

    
      
        
        

      

      
        Q-1-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      Q-2

     

    ADDITIONAL
      FORM 10-K DISCLOSURE

     

    
      	
              Item
                on Form 10-K

            	 	
              Party
                Responsible

            
	
              Item
                1B: Unresolved Staff Comments

            	 	
              Depositor

            
	 	 	 
	
              Item
                9B: Other Information

            	 	
              Any
                party responsible for disclosure items on Form 8-K

            
	 	 	 
	
              Item
                15: Exhibits, Financial Statement Schedules

            	 	
              Depositor,
                Servicer, Master Servicer, Subservicer

            
	 	 	 
	
              Additional
                Item:

              Disclosure
                per Item 1117 of Reg AB

            	 	
              (i)
                All parties to the Trust Agreement (as to themselves), (ii) the Trustee
                and Depositor as to the issuing entity, (iii) the Depositor as to
                the
                sponsor, any 1110(b) originator, any 1100(d)(1) party and (iv) the
                Master
                Servicer, as to any Servicer, to the extent provided by such
                Servicer

            
	 	 	 
	
              Additional
                Item:

              Disclosure
                per Item 1119 of Reg AB

            	 	
              (i)
                All parties to the Trust Agreement as to themselves, (ii) the Depositor
                as
                to the sponsor, originator, significant obligor, enhancement or support
                provider and (iii) the Master Servicer, as to any Servicer, to the
                extent
                provided by such Servicer

            
	 	 	 
	
              Additional
                Item:

              Disclosure
                per Item 1112(b) of Reg AB

            	 	
              Depositor

            
	 	 	 
	
              Additional
                Item:

              Disclosure
                per Items 1114(b) and 1115(b) of Reg AB

            	 	
              Depositor

            

    

    

    
      
        
        

      

      
        Q-2-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      Q-3

     

    ADDITIONAL
      FORM 8-K DISCLOSURE

     

    
      	
              Item
                on Form 8-K

            	 	
              Party
                Responsible

            
	
              Item
                1.01- Entry into a Material Definitive Agreement

            	 	
              Any
                party to the Trust Agreement which is a party to such
                agreement

            
	 	 	 
	
              Item
                1.02- Termination of a Material Definitive Agreement

            	 	
              Any
                party to the Trust Agreement which is a party to such
                agreement

            
	 	 	 
	
              Item
                1.03- Bankruptcy or Receivership

            	 	
              Depositor

            
	 	 	 
	
              Item
                2.04- Triggering Events that Accelerate or Increase a Direct Financial
                Obligation or an Obligation under an Off-Balance Sheet
                Arrangement

            	 	
              Depositor

            
	 	 	 
	
              Item
                3.03- Material Modification to Rights of Security Holders

            	 	
              Trustee
                and Depositor

            
	 	 	 
	
              Item
                5.03- Amendments of Articles of Incorporation or Bylaws; Change of
                Fiscal
                Year

            	 	
              Depositor

            
	 	 	 
	
              Item
                6.01- ABS Informational and Computational Material

            	 	
              Depositor

            
	 	 	 
	
              Item
                6.02- Change of Servicer or Trustee

            	 	
              Master
                Servicer (as to itself and as to any Servicer, to the extent provided
                by
                such Servicer), Trustee (as to itself), Seller

            
	 	 	 
	
              Item
                6.03- Change in Credit Enhancement or External Support

            	 	
              Depositor

            
	 	 	 
	
              Item
                6.04- Failure to Make a Required Distribution

            	 	
              Trustee

            
	 	 	 
	
              Item
                6.05- Securities Act Updating Disclosure

            	 	
              Depositor

            
	 	 	 
	
              Item
                7.01- Reg FD Disclosure

            	 	
              Depositor

            
	 	 	 
	
              Item
                8.01

            	 	
              Depositor

            
	 	 	 
	
              Item
                9.01

            	 	
              Depositor

            

    

    

    
      
        
        

      

      
        Q-3-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      Q-4

     

    ADDITIONAL
      DISCLOSURE NOTIFICATION

     

    U.S.
      Bank
      National Association,

    as
      Trustee to Lehman XS Trust Mortgage

    Pass-Through
      Certificates, Series 2006-16N

    One
      Federal Street

    3rd
      Floor

    Boston,
      Massachusetts 02110

     

    RE:
      **Additional Form [10-D][10-K][8-K] Disclosure** Required

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section [         
] of the Trust Agreement, dated as of February 1, 2006, by and among Structured
      Asset Securities Corporation, as Depositor, Aurora Loan Services LLC, as Master
      Servicer, and U.S. Bank National Association, as Trustee, the undersigned,
      as [
      ], hereby notifies you that certain events have come to our attention that
      [will] [may] need to be disclosed on Form [10-D][10-K][8-K].

     

    Description
      of Additional Form [10-D][10-K][8-K] Disclosure:

     

    List
      of any Attachments hereto to be included in the Additional Form
      [10-D][10-K][8-K] Disclosure:

     

    Any
      inquiries related to this notification should be directed to
      [             ],
      phone number:
      [               ];
      email address:
      [              ].

     

    
      	 	 	 
	 	
              [NAME
                OF PARTY],

              as
                [role]

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:
                

              Title:
                

            
	 	 

    

     

    
      
        
        

      

      
        Q-4-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      R

     

    SERVICING
      CRITERIA TO BE ADDRESSED

    IN
      ASSESSMENT OF COMPLIANCE

     

    Key:
      X
      -
      obligation

     

    Where
      there are multiple checks for criteria the attesting party will identify in
      their management assertion that they are attesting only to the portion of the
      distribution chain they are responsible for in the related transaction
      agreements. Capitalized terms used herein but not defined herein shall have
      the
      meanings assigned to them in the Trust Agreement dated as of September 1, 2006
      (the “Trust Agreement”), by and among U.S. Bank National Association, (the
“Trustee”), Aurora Loan Services LLC, as master servicer (the “Master
      Servicer”), and Structured Asset Securities Corporation, as depositor (the
“Depositor”).

    

    
      	
              Reg
                AB Reference

            	 	
              Servicing
                Criteria

            	 	
              Paying
                Agent

              (including
                the Trustee if acting as Paying Agent)

            	 	
              Trustee

            	 	
              Master
                Servicer

            
	 	 	 	 	 	 	 	 	 
	 	 	
              General Servicing
                 Considerations

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(1)(i)

            	 	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements.

            	 	 	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(1)(ii)

            	 	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities.

            	 	
              If
                applicable for the transaction participant

            	 	
              If
                applicable for the transaction participant

            	 	
              If
                applicable for the transaction participant

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(1)(iii)

            	 	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the pool assets are maintained.

            	 	 	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(1)(iv)

            	 	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements.

            	 	 	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	 	 	
              Cash Collection and Administration

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(2)(i)

            	 	
              Payments
                on pool assets are deposited into the appropriate custodial bank
                accounts
                and related bank clearing accounts no more than two business days
                following receipt, or such other number of days specified in the
                transaction agreements.

            	 	
              X

            	 	 	 	
              X

            

    

     

    
      
        
        

      

      
        R-1

        
          

        

      

      
        
        

      

    

     

    
       

      

      
        	
                Reg
                  AB Reference

              	 	
                Servicing
                  Criteria

              	 	
                Paying
                  Agent

                (including
                  the Trustee if acting as Paying Agent)

              	 	
                Trustee

              	 	
                Master
                  Servicer

              
	 	 	 	 	 	 	 	 	 

      

    

    
      	
              1122(d)(2)(ii)

            	 	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel.

            	 	
              X

            	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(2)(iii)

            	 	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances, are made,
                reviewed and approved as specified in the transaction
                agreements.

            	 	 	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(2)(iv)

            	 	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of over collateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	 	
              X

            	 	
              X

            	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(2)(v)

            	 	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institution” with respect to
                a foreign financial institution means a foreign financial institution
                that
                meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                Act.

            	 	 	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(2)(vi)

            	 	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	 	
              X

            	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(2)(vii)

            	 	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within 30 calendar days after the bank statement cutoff
                date, or
                such other number of days specified in the transaction agreements;
                (C)
                reviewed and approved by someone other than the person who prepared
                the
                reconciliation; and (D) contain explanations for reconciling items.
                These
                reconciling items are resolved within 90 calendar days of their original
                identification, or such other number of days specified in the transaction
                agreements.

            	 	
              X

            	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	 	 	
              Investor
                Remittances and Reporting

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(3)(i)

            	 	
              Reports
                to investors, including those to be filed with the Commission, are
                maintained in accordance with the transaction agreements and applicable
                Commission requirements. Specifically, such reports (A) are prepared
                in
                accordance with timeframes and other terms set forth in the transaction
                agreements; (B) provide information calculated in accordance with
                the
                terms specified in the transaction agreements; (C) are filed with
                the
                Commission as required by its rules and regulations; and (D) agree
                with
                investors’ or the trustee’s records as to the total unpaid principal
                balance and number of Pool Assets serviced by the
                Servicer.

            	 	 	 	
              X

            	 	
              X

            

    

     

    
      
        
        

      

      
        R-2

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Reg
                  AB Reference

              	 	
                Servicing
                  Criteria

              	 	
                Paying
                  Agent

                (including
                  the Trustee if acting as Paying Agent)

              	 	
                Trustee

              	 	
                Master
                  Servicer

              
	 	 	 	 	 	 	 	 	 

      

    

    
      	
              1122(d)(3)(ii)

            	 	
              Amounts
                due to investors are allocated and remitted in accordance with timeframes,
                distribution priority and other terms set forth in the transaction
                agreements.

            	 	 	 	
              X

            	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(3)(iii)

            	 	
              Disbursements
                made to an investor are posted within two business days to the Servicer’s
                investor records, or such other number of days specified in the
                transaction agreements.

            	 	
              X

            	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(3)(iv)

            	 	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank
                statements.

            	 	
              X

            	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	 	 	
              Pool
                Asset Administration

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(i)

            	 	
              Collateral
                or security on pool assets is maintained as required by the transaction
                agreements or related pool asset documents.

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(ii)

            	 	
              Pool
                assets and related documents are safeguarded as required by the
                transaction agreements

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(iii)

            	 	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements.

            	 	 	 	
              X

            	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(iv)

            	 	
              Payments
                on pool assets, including any payoffs, made in accordance with the
                related
                pool asset documents are posted to the Servicer’s obligor records
                maintained no more than two business days after receipt, or such
                other
                number of days specified in the transaction agreements, and allocated
                to
                principal, interest or other items (e.g., escrow) in accordance with
                the
                related pool asset documents.

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(v)

            	 	
              The
                Servicer’s records regarding the pool assets agree with the Servicer’s
                records with respect to an obligor’s unpaid principal
                balance.

            	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        R-3

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Reg
                  AB Reference

              	 	
                Servicing
                  Criteria

              	 	
                Paying
                  Agent

                (including
                  the Trustee if acting as Paying Agent)

              	 	
                Trustee

              	 	
                Master
                  Servicer

              
	 	 	 	 	 	 	 	 	 

      

    

    
      	
              1122(d)(4)(vi)

            	 	
              Changes
                with respect to the terms or status of an obligor's pool assets (e.g.,
                loan modifications or re-agings) are made, reviewed and approved
                by
                authorized personnel in accordance with the transaction agreements
                and
                related pool asset documents.

            	 	 	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(vii)

            	 	
              Loss
                mitigation or recovery actions (e.g., forbearance plans, modifications
                and
                deeds in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                agreements.

            	 	 	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(viii)

            	 	
              Records
                documenting collection efforts are maintained during the period a
                pool
                asset is delinquent in accordance with the transaction agreements.
                Such
                records are maintained on at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent pool assets including, for example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or
                unemployment).

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(ix)

            	 	
              Adjustments
                to interest rates or rates of return for pool assets with variable
                rates
                are computed based on the related pool asset documents.

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(x)

            	 	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s pool asset documents,
                on at least an annual basis, or such other period specified in the
                transaction agreements; (B) interest on such funds is paid, or credited,
                to obligors in accordance with applicable pool asset documents and
                state
                laws; and (C) such funds are returned to the obligor within 30 calendar
                days of full repayment of the related pool assets, or such other
                number of
                days specified in the transaction agreements.

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(xi)

            	 	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements.

            	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        R-4

        
          

        

      

      
        
        

      

    

    
       

      
        	
                Reg
                  AB Reference

              	 	
                Servicing
                  Criteria

              	 	
                Paying
                  Agent

                (including
                  the Trustee if acting as Paying Agent)

              	 	
                Trustee

              	 	
                Master
                  Servicer

              

      

    

    
      	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(xii)

            	 	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the Servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission.

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(xiii)

            	 	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements.

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(xiv)

            	 	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements.

            	 	 	 	 	 	
              X

            
	 	 	 	 	 	 	 	 	 
	
              1122(d)(4)(xv)

            	 	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements.

            	 	 	 	
              X

            	 	 

    

    
      
        
        

      

      
        R-5

        
          

        

      

      
        
        

      

    

    EXHIBIT
      S

     

    TRANSACTION
      PARTIES

     

    SPONSOR
      AND SELLER: LEHMAN BROTHERS HOLDINGS INC.

     

    DEPOSITOR:
      STRUCTURED ASSET SECURITIES CORPORATION

     

    TRUSTEE:
      U.S. BANK NATIONAL ASSOCIATION

     

    MASTER
      SERVICER: AURORA LOAN SERVICES LLC

     

    INTEREST
      RATE SWAP COUNTERPARTY: N/A

     

    CAP
      PROVIDER: LEHMAN BROTHERS SPECIAL FINANCING INC.

     

    SERVICERS:
      COUNTRYWIDE HOME LOANS SERVICING LP AND INDYMAC BANK, F.S.B

     

    ORIGINATORS:
      COUNTRYWIDE HOME LOANS SERVICING LP AND INDYMAC BANK, F.S.B

     

    CUSTODIAN(S):
      DEUTSCHE BANK NATIONAL TRUST COMPANY AND U.S. BANK NATIONAL
      ASSOCIATION

    
      
        
        

      

      
        S-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      T

     

    FORM
      OF
      BACK-UP SARBANES-OXLEY CERTIFICATION

     

    [                ]

    [                ]

    [                ]

     

    Re: Lehman
      XS
      Trust Mortgage Pass-Through Certificates, Series 2006-16N

     

    [_______],
      the [_______] of [_______] (the “Company”) hereby certifies to the Depositor,
      the Master Servicer and the Trustee, and each of their officers, directors
      and
      affiliates that:

     

    (1)
      I
      have reviewed [the servicer compliance statement of the Company provided in
      accordance with Item 1123 of Regulation AB (the “Compliance Statement”),] the
      report on assessment of the Company’s compliance with the Servicing Criteria set
      forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in
      accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act of
      1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Servicing Assessment”), the registered public accounting firm’s attestation
      report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
      Act and Section 1122(b) of Regulation AB (the “Attestation Report”), and all
      servicing reports, officer’s certificates and other information relating to the
      servicing of the Mortgage Loans by the Company during 200[ ] that were delivered
      by the Company to any of the Depositor, the Master Servicer and the Trustee
      pursuant to the Agreement (collectively, the “Company Servicing
      Information”);

     

    (2)
      Based
      on my knowledge, the Company Servicing Information, taken as a whole, does
      not
      contain any untrue statement of a material fact or omit to state a material
      fact
      necessary to make the statements made, in the light of the circumstances under
      which such statements were made, not misleading with respect to the period
      of
      time covered by the Company Servicing Information;

     

    (3)
      Based
      on my knowledge, all of the Company Servicing Information required to be
      provided by the Company under the Agreement has been provided to the Depositor,
      the Master Servicer and the Trustee;

     

    (4)
      I am
      responsible for reviewing the activities performed by [_______] as [_______]
      under the [_______] (the “Agreement”), and based on my knowledge [and the
      compliance review conducted in preparing the Compliance Statement] and except
      as
      disclosed in [the Compliance Statement,] the Servicing Assessment or the
      Attestation Report, the Company has fulfilled its obligations under the
      Agreement in all material respects; and

     

    (5)
      [The
      Compliance Statement required to be delivered by the Company pursuant to the
      Agreement, and] [The] [the] Servicing Assessment and Attestation Report required
      to be provided by the Company and [by any Subservicer or Subcontractor] pursuant
      to the Agreement, have been provided to the Depositor, the Master Servicer
      and
      the Trustee. Any material instances of noncompliance described in such reports
      have been disclosed to the Depositor, the Master Servicer and the Trustee.
      Any
      material instance of noncompliance with the Servicing Criteria has been
      disclosed in such reports.

     

    
      
        
        

      

      
        T-1

        
          

        

      

      
        
        

      

    

     

    Capitalized
      terms used but not defined herein have the meanings ascribed to them in the
      Trust Agreement, dated as of September 1, 2006 (the “Trust Agreement”) by and
      among Structured Asset Securities Corporation, as Depositor, Aurora Loan
      Services LLC, as Master Servicer and U.S. Bank National Association, as Trustee.
      Capitalized terms used but not defined herein shall have the meanings given
      to
      them in the Trust Agreement.

    
      	 	 	
               

            
	 	
              [_______]

              as
                [_______]

            
	 
 	 
 	 
 
	 	By:  	 
	
               

            	Name: 
              Title:
                

              Date:
                

            
	 	 

    

    
      
        
        

      

      
        T-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      U

    

    FORM
      OF
      BACK-UP SARBANES-OXLEY CERTIFICATION 

    TO
      BE
      PROVIDED BY THE TRUSTEE

     

    
      	
              Re:

            	
              Lehman
                XS Trust, Series 2006-16N (the “Trust”), Mortgage Pass-Through
                Certificates, Series 2006-16N, issued pursuant to the Trust Agreement,
                dated as of September 1, 2006, among Structured Asset Securities
                Corporation, as Depositor, Aurora Loan Services, LLC,
                as Master Servicer, and U.S. Bank National Association, as
                Trustee

            

    

     

    The
      Trustee hereby certifies to the Depositor and the Master Servicer, and their
      respective officers, directors and affiliates, and with the knowledge and intent
      that they will rely upon this certification, that:

     

    (1) I
      have
      reviewed the annual report on Form 10-K for the fiscal year [____] (the “Annual
      Report”), and all reports on Form 10-D required to be filed in respect of period
      covered by the Annual Report (collectively with the Annual Report, the
“Reports”), of the Trust;

     

    (2) To
      my
      knowledge, (a)
      the
      Reports, taken as a whole, do not contain any untrue statement of a material
      fact or omit to state a material fact necessary to make the statements made,
      in
      light of the circumstances under which such statements were made, not misleading
      with respect to the period covered by the Annual Report,
      and (b)
      the Trustee’s assessment of compliance and related attestation report referred
      to below, taken as a whole, do not contain any untrue statement of a material
      fact or omit to state a material fact necessary to make the statements made,
      in
      light of the circumstances under which such statements were made, not misleading
      with respect to the period covered by such assessment of compliance and
      attestation report;

     

    (3) To
      my
      knowledge, the distribution information required to be provided by the Trustee
      under the Trust Agreement for inclusion in the Reports is included in the
      Reports;

     

    (4) I
      am
      responsible for reviewing the activities performed by the Trustee under the
      Trust Agreement, and based on my knowledge and the compliance review conducted
      in preparing the assessment of compliance of the Trustee required by the Trust
      Agreement, and except as disclosed in the Reports, the Trustee has fulfilled
      its
      obligations under the Trust Agreement in all material respects; and

     

    (5) The
      report on assessment of compliance with servicing criteria applicable to the
      Trustee for asset-backed securities of the Trustee and each Subcontractor
      utilized by the Trustee and related attestation report on assessment of
      compliance with servicing criteria applicable to it required to be included
      in
      the Annual Report in accordance with Item 1122 of Regulation AB and Exchange
      Act
      Rules 13a-18 and 15d-18 has been included as an exhibit to the Annual Report.
      Any material instances of non-compliance are described in such report and have
      been disclosed in the Annual Report.

     

    
      
        
        

      

      
        U-1

        
          

        

      

      
        
        

      

       

    

    In
      giving
      the certifications above, the Trustee has reasonably relied on information
      provided to it by the following unaffiliated parties: [names of servicer(s),
      master servicer, subservicer(s), depositor, trustee, custodian(s)]

    
      	 	 
 	 
 	 
 
	
               Date: 

            	 	  	 
	 	
              

            	
            
	 U.S. Bank National
              Association, as Trustee	 
	 	 	 
	
              
                

              

              [Signature]

              [Title]

            	 

    

     

    
      
        
        

      

      
        U-2

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

     

    MORTGAGE
      LOAN SCHEDULE

     

    [Intentionally
      Omitted]STRUCTURED
      ASSET SECURITIES CORPORATION, as Depositor,

     

    AURORA
      LOAN SERVICES LLC, as Master Servicer,

     

    RISK
      MANAGEMENT GROUP, LLC, as Credit Risk Manager,

     

    and
      

     

    U.S.
      BANK
      NATIONAL ASSOCIATION, as Trustee

     

    ___________________________

     

    TRUST
      AGREEMENT

     

    Dated
      as
      of September 1, 2006

    ___________________________

     

    BNC
      MORTGAGE LOAN TRUST 2006-1

    MORTGAGE
      PASS-THROUGH CERTIFICATES

    SERIES
      2006-1

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
TABLE
      OF CONTENTS

     

    
      ARTICLE
        I
        DEFINITIONS 
        Page

      

    

    
      
        	 	
                 

              	 
	
                Section
                  1.01

              	
                 Definitions

              	
                14

              
	
                Section
                  1.02

              	
                 Calculations
                  Respecting Mortgage Loans

              	
                58

              
	
                Section
                  1.03

              	
                 Calculations
                  Respecting Accrued Interest

              	
                58

              

      

      

      ARTICLE
        II DECLARATION OF TRUST; ISSUANCE OF CERTIFICATES

      

      
        	
                Section
                  2.01

              	
                 Creation
                  and Declaration of Trust Fund; Conveyance of Mortgage
                  Loans

              	
                58

              
	
                Section
                  2.02

              	
                 Acceptance
                  of Trust Fund by Trustee: Review of Documentation for
                  Trust

              	 
	 	
                 Fund

              	
                62

              
	
                Section
                  2.03

              	
                 Representations
                  and Warranties of the Depositor

              	
                64

              
	
                Section
                  2.04

              	
                 Discovery
                  of Breach

              	
                65

              
	
                Section
                  2.05

              	
                 Repurchase,
                  Purchase or Substitution of Mortgage Loans

              	
                66

              
	
                Section
                  2.06

              	
                 Grant
                  Clause

              	
                67

              
	 	
                 ARTICLE
                  III THE CERTIFICATES

              	 
	
                Section
                  3.01

              	
                 The
                  Certificates

              	
                68

              
	
                Section
                  3.02

              	
                 Registration

              	
                70

              
	
                Section
                  3.03

              	
                 Transfer
                  and Exchange of Certificates

              	
                70

              
	
                Section
                  3.04

              	
                 Cancellation
                  of Certificates

              	
                76

              
	
                Section
                  3.05

              	
                 Replacement
                  of Certificates

              	
                76

              
	
                Section
                  3.06

              	
                 Persons
                  Deemed Owners

              	
                77

              
	
                Section
                  3.07

              	
                 Temporary
                  Certificates

              	
                77

              
	
                Section
                  3.08

              	
                 Appointment
                  of Paying Agent

              	
                77

              
	
                Section
                  3.09

              	
                 Book-Entry
                  Certificates

              	
                79

              
	 	
                 ARTICLE
                  IV ADMINISTRATION OF THE TRUST FUND

              	 
	
                Section
                  4.01

              	
                 Collection
                  Account

              	
                80

              
	
                Section
                  4.02

              	
                 Application
                  of Funds in the Collection Account

              	
                82

              
	
                Section
                  4.03

              	
                 Reports
                  to Certificateholders

              	
                84

              
	
                Section
                  4.04

              	
                 Certificate
                  Account

              	
                88

              
	
                Section
                  4.05

              	
                 [Reserved]

              	
                90

              
	 	 	 
	
                  ARTICLE
                  V DISTRIBUTIONS TO HOLDERS OF CERTIFICATES

              	 
	 	 
	
                Section 5.01

              	
                 Distributions
                  Generally

              	
                90

              
	
                Section5.02

              	
                 Distributions
                  from the Certificate Account

              	
                91

              
	
                Section
                  5.03

              	
                 Allocation
                  of Losses

              	
                103

              
	
                Section
                  5.04

              	
                 Advances
                  by Master Servicer, Servicers and Trustee

              	
                104

              
	
                Section
                  5.05

              	
                 Compensating
                  Interest Payments

              	
                105

              
	
                Section
                  5.06

              	
                 Basis
                  Risk Reserve Fund

              	
                105

              
	
                Section
                  5.07

              	
                 Supplemental
                  Interest Trust

              	
                105

              
	
                Section
                  5.08

              	
                 Rights
                  of Swap Counterparty

              	
                107

              
	
                Section
                  5.09

              	
                 Termination
                  Receipts

              	
                107

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
        	
                 ARTICLE
                  VI CONCERNING THE TRUSTEE; EVENTS
                  OF DEFAULT

              	 
	 	 
	
                Section
                  6.01

              	
                 Duties
                  of Trustee

              	
                109

              
	
                Section
                  6.02

              	
                 Certain
                  Matters Affecting the Trustee

              	
                111

              
	
                Section
                  6.03

              	
                 Trustee
                  Not Liable for Certificates

              	
                113

              
	
                Section
                  6.04

              	
                 Trustee
                  May Own Certificates

              	
                113

              
	
                Section
                  6.05

              	
                 Eligibility
                  Requirements for Trustee

              	
                113

              
	
                Section
                  6.06

              	
                 Resignation
                  and Removal of Trustee

              	
                114

              
	
                Section
                  6.07

              	
                 Successor
                  Trustee

              	
                114

              
	
                Section
                  6.08

              	
                 Merger
                  or Consolidation of Trustee

              	
                115

              
	
                Section
                  6.09

              	
                 Appointment
                  of Co-Trustee, Separate Trustee or Custodian

              	
                116

              
	
                Section
                  6.10

              	
                 Authenticating
                  Agents

              	
                118

              
	
                Section
                  6.11

              	
                 Indemnification
                  of Trustee

              	
                119

              
	
                Section
                  6.12

              	
                 Fees
                  and Expenses of Trustee and Custodian

              	
                119

              
	
                Section
                  6.13

              	
                 Collection
                  of Monies

              	
                120

              
	
                Section
                  6.14

              	
                 Events
                  of Default; Trustee To Act; Appointment of Successor

              	
                120

              
	
                Section
                  6.15

              	
                 Additional
                  Remedies of Trustee Upon Event of Default

              	
                124

              
	
                Section
                  6.16

              	
                 Waiver
                  of Defaults

              	
                125

              
	
                Section
                  6.17

              	
                 Notification
                  to Holders

              	
                125

              
	
                Section
                  6.18

              	
                 Directions
                  by Certificateholders and Duties of Trustee During Event
                  of

              	 
	 	
                 Default

              	
                125

              
	
                Section
                  6.19

              	
                 Action
                  Upon Certain Failures of the Master Servicer and Upon Event
                  of

              	 
	 	
                 Default

              	
                126

              
	
                Section
                  6.20

              	
                 Preparation
                  of Tax Returns and Other Reports

              	
                126

              
	
                Section
                  6.21

              	
                 Reporting
                  Requirements of the Commission

              	
                133

              
	
                Section
                  6.22

              	
                 No
                  Merger

              	
                133

              
	
                Section
                  6.23

              	
                 Indemnification
                  by the Trustee

              	
                133

              

      

      

      ARTICLE
        VII PURCHASE OF MORTGAGE LOANS AND TERMINATION OF THE TRUST FUND 

      

      
        	
                Section
                  7.01

              	
                 Purchase
                  of Mortgage Loans; Termination of Trust Fund Upon Purchase
                  or

              	 
	 	
                 Liquidation
                  of All Mortgage Loans; Purchase of Lower Tier REMIC 1

              	 
	 	
                 Uncertificated
                  Regular Interests

              	
                134

              
	
                Section
                  7.02

              	
                 Procedure
                  Upon Termination of Trust Fund or Purchase of Lower Tier

              	 
	 	
                 REMIC
                  1 Uncertificated Regular Interests

              	
                136

              
	
                Section
                  7.03

              	
                 Additional
                  Trust Fund Termination Event or Purchase of the Lower Tier

              	 
	 	
                 REMIC
                  1 Uncertificated Regular Interests

              	
                137

              
	
                Section
                  7.04

              	
                 Optional
                  Repurchase Right

              	
                138

              
	 	
                 ARTICLE
                  VIII RIGHTS OF CERTIFICATEHOLDERS

              	 
	
                Section
                  8.01

              	
                 Limitation
                  on Rights of Holders

              	
                139

              
	
                Section
                  8.02

              	
                 Access
                  to List of Holders

              	
                140

              
	
                Section
                  8.03

              	
                 Acts
                  of Holders of Certificates

              	
                140

              
	 	 	 
	
                ARTICLE
                  IX ADMINISTRATION AND SERVICING OF MORTGAGE LOANS BY
                  THE

              
	
                  MASTER
                  SERVICER; CREDIT RISK
                  MANAGER

              
	
                Section
                  9.01

              	
                 Duties
                  of the Master Servicer

              	
                141

              

      

      

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      

      
        	
                Section
                  9.02

              	
                 Master
                  Servicer Fidelity Bond and Master Servicer Errors and
                  Omissions

              	 
	 	
                 Insurance
                  Policy

              	
                141

              
	
                Section
                  9.03

              	
                 Master
                  Servicer’s Financial Statements and Related Information

              	
                142

              
	
                Section
                  9.04

              	
                 Power
                  to Act; Procedures

              	
                142

              
	
                Section
                  9.05

              	
                 Enforcement
                  of Servicer’s and Master Servicer’s Obligations

              	
                145

              
	
                Section
                  9.06

              	
                 Collection
                  of Taxes, Assessments and Similar Items

              	
                146

              
	
                Section
                  9.07

              	
                 Termination
                  of Servicing Agreements; Successor Servicers

              	
                146

              
	
                Section
                  9.08

              	
                 Master
                  Servicer Liable for Enforcement

              	
                147

              
	
                Section
                  9.09

              	
                 No
                  Contractual Relationship Between Any Servicer and Trustee
                  or

              	 
	 	
                 Depositor

              	
                147

              
	
                Section
                  9.10

              	
                 Assumption
                  of Servicing Agreement by Trustee

              	
                148

              
	
                Section
                  9.11

              	
                 Due-on-Sale
                  Clauses; Assumption Agreements

              	
                148

              
	
                Section
                  9.12

              	
                 Release
                  of Mortgage Files

              	
                148

              
	
                Section
                  9.13

              	
                 Documents,
                  Records and Funds in Possession of Master Servicer to be
                  Held

              	 
	 	
                 for
                  Trustee

              	
                149

              
	
                Section
                  9.14

              	
                 Representations
                  and Warranties of the Master Servicer

              	
                151

              
	
                Section
                  9.15

              	
                 Opinion

              	
                153

              
	
                Section
                  9.16

              	
                 Standard
                  Hazard and Flood Insurance Policies

              	
                153

              
	
                Section
                  9.17

              	
                 Presentment
                  of Claims and Collection of Proceeds

              	
                154

              
	
                Section
                  9.18

              	
                 Maintenance
                  of the Primary Mortgage Insurance Policies

              	
                154

              
	
                Section
                  9.19

              	
                 Trustee
                  To Retain Possession of Certain Insurance Policies and
                  Documents

              	
                154

              
	
                Section
                  9.20

              	
                 [Reserved]

              	
                155

              
	
                Section
                  9.21

              	
                 Compensation
                  to the Master Servicer

              	
                155

              
	
                Section
                  9.22

              	
                 REO
                  Property

              	
                155

              
	
                Section 9.23

              	
                 Notices
                  to the Sponsor, the Depositor and the Trustee

              	
                156

              
	
                Section
                  9.24

              	
                 Reports
                  to the Trustee

              	
                156

              
	
                Section
                  9.25

              	
                 Assessment
                  of Compliance and Attestation Reports

              	
                157

              
	
                Section
                  9.26

              	
                 Annual
                  Statement of Compliance with Applicable Servicing Criteria

              	
                158

              
	
                Section
                  9.27

              	
                 Merger
                  or Consolidation

              	
                159

              
	
                Section
                  9.28

              	
                 Resignation
                  of Master Servicer

              	
                159

              
	
                Section
                  9.29

              	
                 Assignment
                  or Delegation of Duties by the Master Servicer

              	
                159

              
	
                Section
                  9.30

              	
                 Limitation
                  on Liability of the Master Servicer and Others

              	
                160

              
	
                Section
                  9.31

              	
                 Indemnification;
                  Third-Party Claims

              	
                161

              
	
                Section
                  9.32

              	
                 Special
                  Servicing of Delinquent Mortgage Loans

              	
                161

              
	
                Section
                  9.33

              	
                 Alternative
                  Index

              	
                162

              
	
                Section
                  9.34

              	
                 Duties
                  of the Credit Risk Manager

              	
                162

              
	
                Section
                  9.35

              	
                 Limitation
                  Upon Liability of the Credit Risk Manager

              	
                164

              
	
                Section
                  9.36

              	
                 Indemnification
                  by the Credit Risk Manager

              	
                164

              
	
                Section
                  9.37

              	
                 Removal
                  of Credit Risk Manager

              	
                165

              
	 	
                 ARTICLE
                  X REMIC ADMINISTRATION

              	 
	
                Section
                  10.01

              	
                 REMIC
                  Administration

              	
                165

              
	
                Section
                  10.02

              	
                 Prohibited
                  Transactions and Activities

              	
                168

              
	
                Section
                  10.03

              	
                 Indemnification
                  with Respect to Certain Taxes and Loss of REMIC Status

              	
                168

              
	
                Section
                  10.04

              	
                 REO
                  Property

              	
                169

              

      

      

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

      

      
        	
                  ARTICLE
                  XI MISCELLANEOUS PROVISIONS

              
	 
	
                Section
                  11.01

              	
                 Binding
                  Nature of Agreement; Assignment

              	
                170

              
	
                Section
                  11.02

              	
                 Entire
                  Agreement

              	
                170

              
	
                Section
                  11.03

              	
                 Amendment

              	
                170

              
	
                Section
                  11.04

              	
                 Voting
                  Rights

              	
                172

              
	
                Section
                  11.05

              	
                 Provision
                  of Information

              	
                172

              
	
                Section
                  11.06

              	
                 Governing
                  Law

              	
                173

              
	
                Section
                  11.07

              	
                 Notices

              	
                173

              
	
                Section
                  11.08

              	
                 Severability
                  of Provisions

              	
                173

              
	
                Section
                  11.09

              	
                 Indulgences;
                  No Waivers

              	
                173

              
	
                Section
                  11.10

              	
                 Headings
                  Not To Affect Interpretation

              	
                174

              
	
                Section
                  11.11

              	
                 Benefits
                  of Agreement

              	
                174

              
	
                Section
                  11.12

              	
                 Special
                  Notices to the Rating Agencies and any NIMS Insurer

              	
                174

              
	
                Section
                  11.13

              	
                 Conflicts

              	
                175

              
	
                Section
                  11.14

              	
                 Counterparts

              	
                175

              
	
                Section
                  11.15

              	
                 Transfer
                  of Servicing

              	
                175

              

      

      

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

      

      
        	
                  ATTACHMENTS

              
	 
	
                Exhibit
                  A

              	
                 Forms
                  of Certificates

              
	
                Exhibit
                  B-1

              	
                 Form
                  of Initial Certification

              
	
                Exhibit
                  B-2

              	
                 Form
                  of Interim Certification

              
	
                Exhibit
                  B-3

              	
                 Form
                  of Final Certification

              
	
                Exhibit
                  B-4

              	
                 Form
                  of Endorsement

              
	
                Exhibit
                  C

              	
                 Request
                  for Release of Documents and Receipt

              
	
                Exhibit
                  D-l

              	
                 Form
                  of Residual Certificate Transfer Affidavit (Transferee)

              
	
                Exhibit
                  D-2

              	
                 Form
                  of Residual Certificate Transfer Affidavit (Transferor)

              
	
                Exhibit
                  E

              	
                 List
                  of Servicing Agreements

              
	
                Exhibit
                  F

              	
                 Form
                  of Rule 144A Transfer Certificate

              
	
                Exhibit
                  G

              	
                 Form
                  of Purchaser’s Letter for Institutional Accredited
                  Investors

              
	
                Exhibit
                  H

              	
                 Form
                  of ERISA Transfer Affidavit

              
	
                Exhibit
                  I

              	
                 Monthly
                  Remittance Advice

              
	
                Exhibit
                  J

              	
                 Monthly
                  Electronic Data Transmission

              
	
                Exhibit
                  K

              	
                 Description
                  of Custodial Agreement

              
	
                Exhibit
                  L

              	
                 List
                  of Credit Risk Management Agreements

              
	
                Exhibit
                  M-1

              	
                 Form
                  of Transfer Certificate for Transfer from Restricted Global
                  Security

              
	 	
                 to
                  Regulation S Global Security

              
	
                Exhibit
                  M-2

              	
                 Form
                  of Transfer Certificate for Transfer from Regulation S
                  Global

              
	 	
                 Security
                  to Restricted Global Security

              
	
                Exhibit
                  N

              	
                 Interest
                  Rate Cap Agreement

              
	
                Exhibit
                  O

              	
                 Interest
                  Rate Swap Agreement

              
	
                Exhibit
                  P-1

              	
                 Additional
                  Form 10-D Disclosure

              
	
                Exhibit
                  P-2

              	
                 Additional
                  Form 10-K Disclosure

              
	
                Exhibit
                  P-3

              	
                 Additional
                  Form 8-K Disclosure

              
	
                Exhibit
                  P-4

              	
                 Additional
                  Disclosure Notification

              
	
                Exhibit
                  Q-1

              	
                 Form
                  of Back-Up Sarbanes-Oxley Certification

              
	
                Exhibit
                  Q-2

              	
                 Form
                  of Back-Up Sarbanes-Oxley Certification to be Provided by
                  the

              
	 	
                 Trustee

              
	
                Exhibit
                  R-1

              	
                 Form
                  of Forecasted Loss Report

              
	
                Exhibit
                  R-2

              	
                 Form
                  of Watch List Report

              
	
                Exhibit
                  R-3

              	
                 Form
                  of Red Flag Dashboard Report

              
	
                Exhibit
                  R-4

              	
                 Form
                  of Gain/Loss Report

              
	
                Exhibit
                  R-5

              	
                 Form
                  of Prepayment Premiums Report

              
	
                Exhibit
                  R-6

              	
                 Form
                  of Highlight Summary Report

              
	
                Exhibit
                  R-7

              	
                 Form
                  of Analytics Report

              
	
                Exhibit
                  S

              	
                 Form
                  of Certification Regarding Servicing Criteria to be Addressed
                  in

              
	 	
                 Report
                  on Assessment of Compliance

              
	
                Exhibit
                  T

              	
                 [Reserved]

              
	
                Exhibit
                  U

              	
                 Form
                  of Certification to be Provided by the Credit Risk
                  Manager

              
	
                Exhibit
                  V

              	
                 Transaction
                  Parties

              
	
                Exhibit
                  W

              	
                 Form
                  of Securitization Servicing Agreement for Aurora Loan
                  Services

              
	 	
                 LLC

              

      

       

      
        
          
          

        

        
          v

          
            

          

        

        
          
          

        

      

       

      
        	
                Exhibit
                  X

              	
                 Form
                  of Securitization Subservicing Agreement for Wells Fargo
                  Bank,

              
	 	
                 N.A.

              
	
                Exhibit
                  Y

              	
                 Schedule
                  of Fees for Services as Document Custodian

              
	
                Schedule
                  A

              	
                 Mortgage
                  Loan Schedule (by Mortgage Pool)

              
	
                Schedule
                  B

              	
                 First
                  Payment Default Mortgage Loans

              

      

      

    

    
      
        
        

      

      
        vi

        
          

        

      

      
        
        

      

    

    This
      TRUST AGREEMENT, dated as of September 1, 2006 (the “Agreement”), is by and
      among STRUCTURED ASSET SECURITIES CORPORATION, a Delaware corporation, as
      depositor (the “Depositor”), U.S. BANK NATIONAL ASSOCIATION, as trustee (the
“Trustee”), AURORA LOAN SERVICES LLC, as master servicer (the “Master
      Servicer”), and RISK MANAGEMENT GROUP, LLC, as credit risk manager (the “Credit
      Risk Manager”).

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor has acquired the Mortgage Loans from the Seller, and at the Closing
      Date is the owner of the Mortgage Loans and the other property being conveyed
      by
      it to the Trustee hereunder for inclusion in the Trust Fund. On the Closing
      Date, the Depositor will acquire the Certificates from the Trust Fund, as
      consideration for its transfer to the Trust Fund of the Mortgage Loans and
      the
      other property constituting the Trust Fund. The Depositor has duly authorized
      the execution and delivery of this Agreement to provide for the conveyance
      to
      the Trustee of the Mortgage Loans and the other property constituting the Trust
      Fund. All covenants and agreements made by the Seller in the Mortgage Loan
      Sale
      Agreement and by the Depositor, the Master Servicer and the Trustee herein
      with
      respect to the Mortgage Loans and the other property constituting the Trust
      Fund
      are for the benefit of the Holders from time to time of the Certificates and,
      to
      the extent provided herein, any NIMS Insurer, the Swap Counterparty and the
      Cap
      Counterparty. The Depositor, the Trustee, the Master Servicer and the Credit
      Risk Manager are entering into this Agreement, and the Trustee is accepting
      the
      Trust Fund created hereby, for good and valuable consideration, the receipt
      and
      sufficiency of which are hereby acknowledged. 

     

    As
      provided herein, an election shall be made that the Trust Fund (exclusive of
      (i)
      the Swap Agreement, (ii) the Swap Account, (iii) the right to receive and the
      obligation to pay Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls, (iv)
      the Basis Risk Reserve Fund, (v) the Supplemental Interest Trust, (vi) the
      Interest Rate Cap Agreement, (vii) the Interest Rate Cap Account, (viii) the
      right to receive FPD Premiums and (ix) the obligation to pay Class I Shortfalls
      (collectively, the “Excluded Trust Assets”)) be treated for federal income tax
      purposes as comprising four real estate mortgage investment conduits under
      Section 860D of the Code (each a “REMIC” or, in the alternative “REMIC 1,”
“REMIC 2,” “REMIC 3,” and “REMIC 4” (REMIC 4 also being referred to as the
“Upper Tier REMIC”)). Any inconsistencies or ambiguities in this Agreement or in
      the administration of this Agreement shall be resolved in a manner that
      preserves the validity of such REMIC elections.

     

    Each
      Certificate, other than the Class R and Class LT-R Certificates, represents
      ownership of a regular interest in the Upper Tier REMIC for purposes of the
      REMIC Provisions. In addition, each Certificate, other than the Class R, Class
      LT-R, Class X and Class P Certificates, represents (i) the right to receive
      payments with respect to any Basis Risk Shortfalls and Unpaid Basis Risk
      Shortfalls and (ii) the obligation to pay Class I Shortfalls. The Class LT-R
      Certificate represents ownership of the sole Class of residual interest in
      REMIC
      1. The Class R Certificate represents ownership of the sole Class of residual
      interest in each of REMIC 2, REMIC 3, and the Upper Tier REMIC for purposes
      of
      the REMIC Provisions.

     

    The
      Upper
      Tier REMIC shall hold as its assets the uncertificated Lower Tier Interests
      in
      REMIC 3, other than the Class LT3-R interest, and each such Lower Tier Interest
      is hereby designated as a regular interest in REMIC 3 for purposes of the REMIC
      Provisions. REMIC 3 shall hold as its assets the uncertificated Lower Tier
      Interests in REMIC 2, other than the Class LT2-R interest, and each such Lower
      Tier Interest is hereby designated as a regular interest in REMIC 2. REMIC
      2
      shall hold as its assets the uncertificated Lower Tier Interests in REMIC 1,
      and
      each such Lower Tier Interest is hereby designated as a regular interest in
      REMIC 1. REMIC 1 shall hold as its assets the property of the Trust Fund other
      than the Lower Tier Interests in REMIC 1, REMIC 2, and REMIC 3 and the Excluded
      Trust Assets.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      startup day for each REMIC created hereby for purposes of the REMIC Provisions
      is the Closing Date. In addition, for purposes of the REMIC Provisions, the
      latest possible maturity date for each regular interest in each REMIC created
      hereby is the Latest Possible Maturity Date.

     

    REMIC
      1:  

     

    REMIC
      1
      shall issue one uncertificated interest in respect of each Mortgage Loan held
      by
      the Trust Fund on the Closing Date, each of which is hereby designated as a
      regular interest in REMIC 1 (the “REMIC 1 Regular Interests”). REMIC 1 shall
      also issue the Class LT-R Certificate, which shall represent the sole class
      of
      residual interest in REMIC 1. Each REMIC 1 Regular Interest shall have an
      initial principal balance equal to the Scheduled Principal Balance of the
      Mortgage Loan to which it relates and shall bear interest at a per annum rate
      equal to the Net Mortgage Rate of such Mortgage Loan. In the event a Qualified
      Substitute Mortgage Loan is substituted for such Mortgage Loan (the “Original
      Mortgage Loan”), no amount of interest payable on such Qualified Substitute
      Mortgage Loan shall be distributed on such REMIC 1 Regular Interest at a rate
      in
      excess of the Net Mortgage Rate of the Original Mortgage Loan.

     

    On
      each
      Distribution Date, the Trustee shall first pay or charge as an expense of REMIC
      1 all expenses of the Trust Fund for such Distribution Date, other than any
      expenses in respect of the Swap Agreement.

     

    On
      each
      Distribution Date the Trustee shall distribute the aggregate Interest Remittance
      Amount (net of expenses described in the preceding paragraph) with respect
      to
      each of the Lower Tier Interests in REMIC 1 based on the above-described
      interest rates.

     

    On
      each
      Distribution Date, the Trustee shall distribute the aggregate Principal
      Remittance Amount among the Lower Tier Interests in REMIC 1 in accordance with
      the amount of the Principal Remittance Amount attributable to the Mortgage
      Loan
      corresponding to each such Lower Tier Interest in REMIC 1. All losses on the
      Mortgage Loans shall be allocated among the Lower Tier Interests in REMIC 1
      in
      the same manner that principal distributions are allocated.

     

    On
      each
      Distribution Date, the Trustee shall distribute the Prepayment Premiums
      collected during the preceding Prepayment Period to the Lower Tier Interest
      in
      REMIC 1 corresponding to the Mortgage Loan with respect to which such amounts
      were received.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    REMIC
      2:   

     

    The
      following table sets forth the designations, principal balances and interest
      rates for each interest in REMIC 2, each of which (other than the Class LT2-R
      Lower Tier Interest) is hereby designated as a regular interest in REMIC 2
      (the
“REMIC 2 Regular Interests”):

     

    
      
        	

                Class
                  Designation

              	

                Initial
                  Principal

                Balance

              	

                Interest
                  Rate

              
	
                LT2-A

              	
                 $    
                  41,041,243.84 

              	
                (1)

              
	
                LT2-F1

              	
                 $    
                  12,378,000.00 

              	
                (2)

              
	
                LT2-V1

              	
                 $    
                  12,378,000.00 

              	
                (3)

              
	
                LT2-F2

              	
                 $    
                  12,012,000.00 

              	
                (2)

              

      

      
        	
                LT2-V2

              	
                 $    
                  12,012,000.00 

              	
                (3)

              
	
                LT2-F3

              	
                 $    
                  11,657,500.00 

              	
                (2)

              
	
                LT2-V3

              	
                 $    
                  11,657,500.00 

              	
                (3)

              
	
                LT2-F4

              	
                 $    
                  11,313,000.00 

              	
                (2)

              
	
                LT2-V4

              	
                 $  
                    11,313,000.00 

              	
                (3)

              
	
                LT2-F5

              	
                 $    
                  10,979,000.00 

              	
                (2)

              
	
                LT2-V5

              	
                 $    
                  10,979,000.00 

              	
                (3)

              
	
                LT2-F6

              	
                 $    
                  10,654,500.00 

              	
                (2)

              
	
                LT2-V6

              	
                 $    
                  10,654,500.00 

              	
                (3)

              
	
                LT2-F7

              	
                 $    
                  10,340,000.00 

              	
                (2)

              
	
                LT2-V7

              	
                 $    
                  10,340,000.00 

              	
                (3)

              
	
                LT2-F8

              	
                 $    
                  10,034,000.00 

              	
                (2)

              
	
                LT2-V8

              	
                 $    
                  10,034,000.00 

              	
                (3)

              
	
                LT2-F9

              	
                 $      
                  9,738,000.00 

              	
                (2)

              
	
                LT2-V9

              	
                 $      
                  9,738,000.00 

              	
                (3)

              
	
                LT2-F10

              	
                 $      
                  9,946,500.00 

              	
                (2)

              
	
                LT2-V10

              	
                 $      
                  9,946,500.00 

              	
                (3)

              
	
                LT2-F11

              	
                 $      
                  9,838,000.00 

              	
                (2)

              
	
                LT2-V11

              	
                 $      
                  9,838,000.00 

              	
                (3)

              
	
                LT2-F12

              	
                 $      
                  9,844,000.00 

              	
                (2)

              
	
                LT2-V12

              	
                 $      
                  9,844,000.00 

              	
                (3)

              
	
                LT2-F13

              	
                 $    
                  11,325,500.00 

              	
                (2)

              
	
                LT2-V13

              	
                 $    
                  11,325,500.00 

              	
                (3)

              
	
                LT2-F14

              	
                 $    
                  11,212,500.00 

              	
                (2)

              
	
                LT2-V14

              	
                 $    
                  11,212,500.00 

              	
                (3)

              
	
                LT2-F15

              	
                 $    
                  11,079,500.00 

              	
                (2)

              
	
                LT2-V15

              	
                 $  
                    11,079,500.00 

              	
                (3)

              
	
                LT2-F16

              	
                 $    
                  10,927,500.00 

              	
                (2)

              
	
                LT2-V16

              	
                 $    
                  10,927,500.00 

              	
                (3)

              
	
                LT2-F17

              	
                 $    
                  10,757,000.00 

              	
                (2)

              
	
                LT2-V17

              	
                 $    
                  10,757,000.00 

              	
                (3)

              
	
                LT2-F18

              	
                 $    
                  10,569,000.00 

              	
                (2)

              
	
                LT2-V18

              	
                 $    
                  10,569,000.00 

              	
                (3)

              
	
                LT2-F19

              	
                 $    
                  10,365,500.00 

              	
                (2)

              
	
                LT2-V19

              	
                 $    
                  10,365,500.00 

              	
                (3)

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

    

    
      
        	

                Class
                  Designation

              	
                 

                Initial
                  Principal 

                Balance

              	

                Interest
                  Rate

              
	
                LT2-F20

              	
                 $    
                  10,147,000.00 

              	
                (2)

              
	
                LT2-V20

              	
                 $    
                  10,147,000.00 

              	
                (3)

              
	
                LT2-F21

              	
                 $      
                  9,914,500.00 

              	
                (2)

              
	
                LT2-V21

              	
                 $      
                  9,914,500.00 

              	
                (3)

              
	
                LT2-F22

              	
                 $      
                  9,670,000.00 

              	
                (2)

              
	
                LT2-V22

              	
                 $      
                  9,670,000.00 

              	
                (3)

              
	
                LT2-F23

              	
                 $    
                  33,322,000.00 

              	
                (2)

              
	
                LT2-V23

              	
                 $    
                  33,322,000.00 

              	
                (3)

              
	
                LT2-F24

              	
                 $    
                  17,908,000.00 

              	
                (2)

              
	
                LT2-V24

              	
                 $    
                  17,908,000.00 

              	
                (3)

              
	
                LT2-F25

              	
                 $    
                  15,653,500.00 

              	
                (2)

              
	
                LT2-V25

              	
                 $    
                  15,653,500.00 

              	
                (3)

              
	
                LT2-F26

              	
                 $    
                  11,900,500.00 

              	
                (2)

              
	
                LT2-V26

              	
                 $    
                  11,900,500.00 

              	
                (3)

              
	
                LT2-F27

              	
                 $      
                  9,278,000.00 

              	
                (2)

              
	
                LT2-V27

              	
                 $      
                  9,278,000.00 

              	
                (3)

              
	
                LT2-F28

              	
                 $      
                  7,366,500.00 

              	
                (2)

              
	
                LT2-V28

              	
                 $      
                  7,366,500.00 

              	
                (3)

              
	
                LT2-F29

              	
                 $      
                  5,925,500.00 

              	
                (2)

              
	
                LT2-V29

              	
                 $      
                  5,925,500.00 

              	
                (3)

              
	
                LT2-F30

              	
                 $ 
                       4,810,000.00 

              	
                (2)

              
	
                LT2-V30

              	
                 $      
                  4,810,000.00 

              	
                (3)

              
	
                LT2-F31

              	
                 $      
                  3,926,500.00 

              	
                (2)

              
	
                LT2-V31

              	
                 $      
                  3,926,500.00 

              	
                (3)

              
	
                LT2-F32

              	
                 $      
                  3,212,000.00 

              	
                (2)

              
	
                LT2-V32

              	
                 $      
                  3,212,000.00 

              	
                (3)

              
	
                LT2-F33

              	
                 $      
                  3,054,000.00 

              	
                (2)

              
	
                LT2-V33

              	
                 $     
                   3,054,000.00 

              	
                (3)

              
	
                LT2-F34

              	
                 $      
                  2,903,500.00 

              	
                (2)

              
	
                LT2-V34

              	
                 $      
                  2,903,500.00 

              	
                (3)

              
	
                LT2-F35

              	
                 $      
                  2,761,000.00 

              	
                (2)

              
	
                LT2-V35

              	
                 $      
                  2,761,000.00 

              	
                (3)

              
	
                LT2-F36

              	
                 $      
                  2,626,000.00 

              	
                (2)

              
	
                LT2-V36

              	
                 $      
                  2,626,000.00 

              	
                (3)

              
	
                LT2-F37

              	
                 $      
                  2,497,000.00 

              	
                (2)

              
	
                LT2-V37

              	
                 $      
                  2,497,000.00 

              	
                (3)

              
	
                LT2-F38

              	
                 $      
                  2,375,000.00 

              	
                (2)

              
	
                LT2-V38

              	
                 $      
                  2,375,000.00 

              	
                (3)

              
	
                LT2-F39

              	
                 $      
                  2,258,000.00 

              	
                (2)

              
	
                LT2-V39

              	
                 $      
                  2,258,000.00 

              	
                (3)

              
	
                LT2-F40

              	
                 $      
                  2,148,000.00 

              	
                (2)

              
	
                LT2-V40

              	
                 $      
                  2,148,000.00 

              	
                (3)

              
	
                LT2-F41

              	
                 $      
                  2,042,000.00 

              	
                (2)

              
	
                LT2-V41

              	
                 $      
                  2,042,000.00 

              	
                (3)

              

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      
        	

                Class
                  Designation

              	
                 

                Initial
                  Principal 

                Balance

              	

                Interest
                  Rate

              
	
                LT2-F42

              	
                 $      
                  1,942,500.00 

              	
                (2)

              
	
                LT2-V42

              	
                 $      
                  1,942,500.00 

              	
                (3)

              
	
                LT2-F43

              	
                 $      
                  1,846,500.00 

              	
                (2)

              
	
                LT2-V43

              	
                 $      
                  1,846,500.00 

              	
                (3)

              
	
                LT2-F44

              	
                 $      
                  1,756,500.00 

              	
                (2)

              
	
                LT2-V44

              	
                 $      
                  1,756,500.00 

              	
                (3)

              
	
                LT2-F45

              	
                 $      
                  1,670,500.00 

              	
                (2)

              
	
                LT2-V45

              	
                 $      
                  1,670,500.00 

              	
                (3)

              
	
                LT2-F46

              	
                 $      
                  1,588,500.00 

              	
                (2)

              
	
                LT2-V46

              	
                 $      
                  1,588,500.00 

              	
                (3)

              
	
                LT2-F47

              	
                 $      
                  1,510,000.00 

              	
                (2)

              
	
                LT2-V47

              	
                 $      
                  1,510,000.00 

              	
                (3)

              
	
                LT2-F48

              	
                 $      
                  1,437,000.00 

              	
                (2)

              
	
                LT2-V48

              	
                 $      
                  1,437,000.00 

              	
                (3)

              
	
                LT2-F49

              	
                 $      
                  1,366,000.00 

              	
                (2)

              
	
                LT2-V49

              	
                 $      
                  1,366,000.00 

              	
                (3)

              
	
                LT2-F50

              	
                 $      
                  1,298,500.00 

              	
                (2)

              
	
                LT2-V50

              	
                 $      
                  1,298,500.00 

              	
                (3)

              
	
                LT2-F51

              	
                 $      
                  1,235,500.00 

              	
                (2)

              
	
                LT2-V51

              	
                 $      
                  1,235,500.00 

              	
                (3)

              
	
                LT2-F52

              	
                 $      
                  1,174,500.00 

              	
                (2)

              
	
                LT2-V52

              	
                 $      
                  1,174,500.00 

              	
                (3)

              
	
                LT2-F53

              	
                 $      
                  1,117,000.00 

              	
                (2)

              
	
                LT2-V53

              	
                 $      
                  1,117,000.00 

              	
                (3)

              
	
                LT2-F54

              	
                 $      
                  1,062,000.00 

              	
                (2)

              
	
                LT2-V54

              	
                 $      
                  1,062,000.00 

              	
                (3)

              
	
                LT2-F55

              	
                 $      
                  1,010,000.00 

              	
                (2)

              
	
                LT2-V55

              	
                 $      
                  1,010,000.00 

              	
                (3)

              
	
                LT2-F56

              	
                 $         
                  961,000.00 

              	
                (2)

              
	
                LT2-V56

              	
                 $         
                  961,000.00 

              	
                (3)

              
	
                LT2-F57

              	
                 $         
                  914,000.00 

              	
                (2)

              
	
                LT2-V57

              	
                 $         
                  914,000.00 

              	
                (3)

              
	
                LT2-F58

              	
                 $         
                  872,500.00 

              	
                (2)

              
	
                LT2-V58

              	
                 $         
                  872,500.00 

              	
                (3)

              
	
                LT2-F59

              	
                 $    
                  16,789,000.00 

              	
                (2)

              
	
                LT2-V59

              	
                 $    
                  16,789,000.00 

              	
                (3)

              
	
                LT2-R

              	
                (4)

              	
                (4)

              

      

    

     

     

    
      	(1)  	
              For
                any Distribution Date (and the related Accrual Period) the interest
                rate
                for the Class LT2-A Interest shall be the Net WAC Rate.
                

            

    

     

    
      	(2)  	
              For
                any Distribution Date (and the related Accrual Period) the interest
                rate
                for each of these Lower Tier Interests shall be the lesser of (i)
                the
                REMIC Swap Rate for such Distribution Date, and (ii) the product
                of (a)
                the Net WAC Rate and (b) 2. 

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	(3)  	
              For
                any Distribution Date (and the related Accrual Period) the interest
                rate
                for each of these Lower Tier Interests shall be the excess, if any,
                of (i)
                the product of (a) the Net WAC Rate and (b) 2, over (ii) the REMIC
                Swap
                Rate for such Distribution Date.

            

    

     

    
      	(4)  	
              The
                Class LT2-R interest shall not have a principal amount and shall
                not bear
                interest. The Class LT2-R interest is hereby designated as the sole
                class
                of residual interest in REMIC 2.

            

    

     

    On
      each
      Distribution Date, the Trustee shall distribute the aggregate Interest
      Remittance Amount for the two Mortgage Pools (net of the expenses paid by REMIC
      1) with respect to each of the Lower Tier Interests in REMIC 2 based on the
      above-described interest rates.

     

    On
      each
      Distribution Date, the Trustee shall distribute the aggregate Principal
      Remittance Amount with respect to the two Mortgage Pools with respect to the
      Lower Tier Interests in REMIC 2, first to the Class LT2-A Interest until its
      principal balance is reduced to zero, and then sequentially, to the other Lower
      Tier Interests in REMIC 2 in ascending order of their numerical class
      designation, and, with respect to each pair of classes having the same numerical
      designation, in equal amounts to each such class, until the principal balance
      of
      each such class is reduced to zero. All losses on the Mortgage Loans shall
      be
      allocated among the Lower Tier Interests in REMIC 2 in the same manner that
      principal distributions are allocated.

     

    On
      each
      Distribution Date, the Trustee shall distribute the Prepayment Premiums
      collected during the preceding Prepayment Period to the Class LT2-F59 Lower
      Tier
      Interest.

     

    REMIC
      3:   

     

    The
      following table sets forth the designations, principal balances and interest
      rates for each interest in REMIC 3, each of which (other than the Class LT3-R
      interest) is hereby designated as a regular interest in REMIC 3 (the “REMIC 3
      Regular Interests”):

     

    
      	
              REMIC
                3

              Lower
                Tier 

              Class
                Designation

            	
              REMIC
                3

              Lower
                Tier

              Interest
                Rate

            	
              Initial
                Class 

              Principal
                Amount

            	
              Corresponding
                Class of Certificate(s)

            
	
              Class
                LT3-A1

            	
              (1)

            	
              (3)

            	
              A1

            
	
              Class
                LT3-A2

            	
              (1)

            	
              (3)

            	
              A2

            
	
              Class
                LT3-A3

            	
              (1)

            	
              (3)

            	
              A3

            
	
              Class
                LT3-A4

            	
              (1)

            	
              (3)

            	
              A4

            
	
              Class
                LT3-M1

            	
              (1)

            	
              (3)

            	
              M1

            
	
              Class
                LT3-M2

            	
              (1)

            	
              (3)

            	
              M2

            
	
              Class
                LT3-M3

            	
              (1)

            	
              (3)

            	
              M3

            
	
              Class
                LT3-M4

            	
              (1)

            	
              (3)

            	
              M4

            
	
              Class
                LT3-M5

            	
              (1)

            	
              (3)

            	
              M5

            
	
              Class
                LT3-M6

            	
              (1)

            	
              (3)

            	
              M6

            
	
              Class
                LT3-M7

            	
              (1)

            	
              (3)

            	
              M7

            
	
              Class
                LT3-M8

            	
              (1)

            	
              (3)

            	
              M8

            
	
              Class
                LT3-M9

            	
              (1)

            	
              (3)

            	
              M9

            
	
              Class
                LT3-B

            	
              (1)

            	
              (3)

            	
              B

            
	
              Class
                LT3-Q

            	
              (1)

            	
              (4)

            	
              N/A

            
	
              Class
                LT3-IO

            	
              (2)

            	
              (2)

            	
              N/A

            
	
              Class
                LT3-R

            	
              (5)

            	
              (5)

            	
              R

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    ___________________________

    
      	(1)  	
              For
                any Distribution Date (and the related Accrual Period) the interest
                rate
                for each of these Lower Tier Interests in REMIC 3 is a per annum
                rate
                equal to the weighted average of the interest rates on the Lower
                Tier
                Interests in REMIC 2 for such Distribution Date, provided,
                however, that
                for any Distribution Date on which the Class LT3-IO Interest is entitled
                to a portion of the interest accruals on a Lower Tier Interest in
                REMIC 2
                having an “F” in its class designation, as described in footnote two
                below, such weighted average shall be computed by first subjecting
                the
                rate on such Lower Tier Interest in REMIC 2 to a cap equal to Swap
                LIBOR
                for such Distribution Date.

            

    

     

    
      	(2)  	
              The
                Class LT3-IO is an interest only class that does not have a principal
                balance. For only those Distribution Dates listed in the first column
                in
                the table below, the Class LT3-IO shall be entitled to interest accrued
                on
                the Lower Tier Interest in REMIC 2 listed in the second column in
                the
                table below at a per annum rate equal to the excess, if any, of (i)
                the
                interest rate for such Lower Tier Interest in REMIC 2 for such
                Distribution Date over (ii) Swap LIBOR for such Distribution
                Date.

            

    

     

    
      	
              Distribution
                Dates

            	
              REMIC
                

              2
                Class Designation

            
	
              2

            	
              Class
                LT2-F1

            
	
              2-3

            	
              Class
                LT2-F2

            
	
              2-4

            	
              Class
                LT2-F3

            
	
              2-5

            	
              Class
                LT2-F4

            
	
              2-6

            	
              Class
                LT2-F5

            
	
              2-7

            	
              Class
                LT2-F6

            
	
              2-8

            	
              Class
                LT2-F7

            
	
              2-9

            	
              Class
                LT2-F8

            
	
              2-10

            	
              Class
                LT2-F9

            
	
              2-11

            	
              Class
                LT2-F10

            
	
              2-12

            	
              Class
                LT2-F11

            
	
              2-13

            	
              Class
                LT2-F12

            
	
              2-14

            	
              Class
                LT2-F13

            
	
              2-15

            	
              Class
                LT2-F14

            
	
              2-16

            	
              Class
                LT2-F15

            
	
              2-17

            	
              Class
                LT2-F16

            
	
              2-18

            	
              Class
                LT2-F17

            
	
              2-19

            	
              Class
                LT2-F18

            
	
              2-20

            	
              Class
                LT2-F19

            
	
              2-21

            	
              Class
                LT2-F20

            
	
              2-22

            	
              Class
                LT2-F21

            
	
              2-23

            	
              Class
                LT2-F22

            
	
              2-24

            	
              Class
                LT2-F23

            
	
              2-25

            	
              Class
                LT2-F24

            
	
              2-26

            	
              Class
                LT2-F25

            
	
              2-27

            	
              Class
                LT2-F26

            
	
              2-28

            	
              Class
                LT2-F27

            
	
              2-29

            	
              Class
                LT2-F28

            
	
              2-30

            	
              Class
                LT2-F29

            
	
              2-31

            	
              Class
                LT2-F30

            
	
              2-32

            	
              Class
                LT2-F31

            
	
              2-33

            	
              Class
                LT2-F32

            
	
              2-34

            	
              Class
                LT2-F33

            
	
              2-35

            	
              Class
                LT2-F34

            
	
              2-36

            	
              Class
                LT2-F35

            
	
              2-37

            	
              Class
                LT2-F36

            
	
              2-38

            	
              Class
                LT2-F37

            
	
              2-39

            	
              Class
                LT2-F38

            
	
              2-40

            	
              Class
                LT2-F39

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              2-41

            	
              Class
                LT2-F40

            
	
              2-42

            	
              Class
                LT2-F41

            
	
              2-43

            	
              Class
                LT2-F42

            
	
              2-44

            	
              Class
                LT2-F43

            
	
              2-45

            	
              Class
                LT2-F44

            
	
              2-46

            	
              Class
                LT2-F45

            
	
              2-47

            	
              Class
                LT2-F46

            
	
              2-48

            	
              Class
                LT2-F47

            
	
              2-49

            	
              Class
                LT2-F48

            
	
              2-50

            	
              Class
                LT2-F49

            
	
              2-51

            	
              Class
                LT2-F50

            
	
              2-52

            	
              Class
                LT2-F51

            
	
              2-53

            	
              Class
                LT2-F52

            
	
              2-54

            	
              Class
                LT2-F53

            
	
              2-55

            	
              Class
                LT2-F54

            
	
              2-56

            	
              Class
                LT2-F55

            
	
              2-57

            	
              Class
                LT2-F56

            
	
              2-58

            	
              Class
                LT2-F57

            
	
              2-59

            	
              Class
                LT2-F58

            
	
              2-60

            	
              Class
                LT2-F59

            

    

    ___________________________

    
      	(3)  	
              This
                interest shall have an initial class principal amount equal to one-half
                of
                the initial Class Principal Amount of its Corresponding Class of
                Certificates.

            

    

     

    
      	(4)  	
              This
                interest shall have an initial class principal amount equal to the
                excess
                of (i) the Aggregate Pool Balance as of the Cut-off Date, over (ii)
                the
                aggregate initial class principal amount of each other regular interest
                in
                REMIC 3.

            

    

     

    
      	(5)  	
              The
                Class LT3-R interest is the sole class of residual interests in REMIC
                3.
                It does not have an interest rate or a principal
                balance.

            

    

     

    On
      each
      Distribution Date, interest shall be distributed on the Lower Tier Interests
      in
      REMIC 3 based on the above-described interest rates,
      provided,
      however,
      that
      interest that accrues on the Class LT3-Q Interest shall be deferred in an amount
      equal to one-half of the increase, if any, in the Overcollateralization Amount
      for such Distribution Date. Any interest so deferred shall itself bear interest
      at the interest rate for the Class LT3-Q Interest. An amount equal to the
      interest so deferred shall be distributed as additional principal on the other
      Lower Tier Interests in REMIC 3 having a principal balance in the manner
      described under priority (a) below.

     

    On
      each
      Distribution Date principal shall be distributed, and Realized Losses shall
      be
      allocated, among the Lower Tier Interests in REMIC 3 in the following order
      of
      priority:

     

    (a)
      First, to the Class LT3-A1, Class LT3-A2, Class LT3-A3, Class LT3-A4,
      Class LT3-M1, Class LT3-M2, Class LT3-M3, Class LT3-M4, Class LT3-M5, Class
      LT3-M6, Class LT3-M7, Class LT3-M8, Class LT3-M9 and Class LT3-B Interests
      until
      the principal balance of each such Lower Tier Interest equals one-half of the
      Class Principal Amount of the Corresponding Class of Certificates immediately
      after such Distribution Date; and

     

    (b)
      Second, to the Class LT3-Q Interest, any remaining amounts.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    On
      each
      Distribution Date, the Trustee shall be deemed to have distributed the
      Prepayment Premiums passed through with respect to the Class LT2-F59 Lower
      Tier
      Interest in REMIC 2 on such Distribution Date to the Class LT3-Q
      Interest.

     

    The
      Certificates:

     

    The
      following table sets forth (or describes) the Class designation, Certificate
      Interest Rate, initial Class Principal Amount and minimum denomination for
      each
      Class of Certificates comprising interests in the Trust Fund created hereunder.
      

     

    
      	
               

              Class

              Designation

            	
               

              Certificate

              Interest
                Rate

            	
               

              Initial

              Class
                Principal Amount 

            	
               

              Minimum

              Denomination

            
	
              Class
                A1

            	
              (1)

            	
              $377,245,000

            	
              $
                25,000

            
	
              Class
                A2

            	
              (2)

            	
              $216,842,000

            	
              $
                25,000

            
	
              Class
                A3

            	
              (3)

            	
              $
                69,102,000

            	
              $
                25,000

            
	
              Class
                A4

            	
              (4)

            	
              $
                29,013,000

            	
              $
                25,000

            
	
              Class
                M1

            	
              (5)

            	
              $
                37,475,000

            	
              $100,000

            
	
              Class
                M2

            	
              (6)

            	
              $
                27,998,000

            	
              $100,000

            
	
              Class
                M3

            	
              (7)

            	
              $
                16,368,000

            	
              $100,000

            
	
              Class
                M4

            	
              (8)

            	
              $
                14,214,000

            	
              $100,000

            
	
              Class
                M5

            	
              (9)

            	
              $
                12,922,000

            	
              $100,000

            
	
              Class
                M6

            	
              (10)

            	
              $
                10,769,000

            	
              $100,000

            
	
              Class
                M7

            	
              (11)

            	
              $
                9,046,000

            	
              $100,000

            
	
              Class
                M8

            	
              (12)

            	
              $
                6,030,000

            	
              $100,000

            
	
              Class
                M9

            	
              (13)

            	
              $
                8,615,000

            	
              $100,000

            
	
              Class
                B

            	
              (14)

            	
              $10,337,000

            	
              $100,000

            
	
              Class
                X

            	
              (15)

            	
              (15)

            	
              10%

            
	
              Class
                R

            	
              (16)

            	
              (16)

            	
              100%

            
	
              Class
                P

            	
              (17)

            	
              $100
                (18)

            	
              10%

            
	
              
                Class
                  LT-R

              

            	
              (19)

            	
              (19)

            	
              100%

            

    

    

      __________

    

    
      	(1)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class A1 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.180% and (ii) with respect
                to
                any Distribution Date on which the Class Principal Amounts of the
                Group 2
                Senior Certificates are outstanding, the Pool 1 Net Funds Cap for
                such
                Distribution Date or, after the Distribution Date on which the Class
                Principal Amounts of the Group 2 Senior Certificates have been reduced
                to
                zero, the Subordinate Net Funds Cap for such Distribution
                Date;
                provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class A1 Certificates
                will be LIBOR plus 0.360%. For purposes of the REMIC Provisions,
                each
                reference to a Net Funds Cap in clause (ii) of the preceding sentence
                shall be deemed to be a reference to the REMIC 3 Net Funds Cap; therefore,
                on any Distribution Date on which the Certificate Interest Rate for
                the
                Class A1 Certificates exceeds the REMIC 3 Net Funds Cap, interest
                accruals
                based on such excess shall be treated as having been paid from the
                Basis
                Risk Reserve Fund or the Supplemental Interest Trust, as applicable;
                on
                any Distribution Date on which the Certificate Interest Rate on the
                Class
                A1 Certificates is based on a Net Funds Cap, the amount of interest
                that
                would have accrued on the Class A1 Certificates if the REMIC 3 Net
                Funds
                Cap were substituted for the Net Funds Cap shall be treated as having
                been
                paid by the Class A1 Certificateholders to the Supplemental Interest
                Trust, all pursuant to and as further provided in Section 10.01(n)
                hereof.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	(2)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class A2 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.060% and (ii) with respect
                to
                any Distribution Date on which the Class Principal Amount of the
                Class A1
                Certificates is outstanding, the Pool 2 Net Funds Cap for such
                Distribution Date or, after the Distribution Date on which the Class
                Principal Amount of the Class A1 Certificates has been reduced to
                zero,
                the Subordinate Net Funds Cap for such Distribution Date;
                provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class A2 Certificates
                will be LIBOR plus 0.120%. For purposes of the REMIC Provisions,
                each
                reference to a Net Funds Cap in clause (ii) of the preceding sentence
                shall be deemed to be a reference to the REMIC 3 Net Funds Cap; therefore,
                on any Distribution Date on which the Certificate Interest Rate for
                the
                Class A2 Certificates exceeds the REMIC 3 Net Funds Cap, interest
                accruals
                based on such excess shall be treated as having been paid from the
                Basis
                Risk Reserve Fund or the Supplemental Interest Trust, as applicable;
                on
                any Distribution Date on which the Certificate Interest Rate on the
                Class
                A2 Certificates is based on a Net Funds Cap, the amount of interest
                that
                would have accrued on the Class A2 Certificates if the REMIC 3 Net
                Funds
                Cap were substituted for the Net Funds Cap shall be treated as having
                been
                paid by the Class A2 Certificateholders to the Supplemental Interest
                Trust, all pursuant to and as further provided in Section 10.01(n)
                hereof.

            

    

     

    
      	(3)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class A3 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.160% and (ii) with respect
                to
                any Distribution Date on which the Class Principal Amount of the
                Class A1
                Certificates is outstanding, the Pool 2 Net Funds Cap for such
                Distribution Date or, after the Distribution Date on which the Class
                Principal Amount of the Class A1 Certificates has been reduced to
                zero,
                the Subordinate Net Funds Cap for such Distribution Date;
                provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class A3 Certificates
                will be LIBOR plus 0.320%. For purposes of the REMIC Provisions,
                each
                reference to a Net Funds Cap in clause (ii) of the preceding sentence
                shall be deemed to be a reference to the REMIC 3 Net Funds Cap; therefore,
                on any Distribution Date on which the Certificate Interest Rate for
                the
                Class A3 Certificates exceeds the REMIC 3 Net Funds Cap, interest
                accruals
                based on such excess shall be treated as having been paid from the
                Basis
                Risk Reserve Fund or the Supplemental Interest Trust, as applicable;
                on
                any Distribution Date on which the Certificate Interest Rate on the
                Class
                A3 Certificates is based on a Net Funds Cap, the amount of interest
                that
                would have accrued on the Class A3 Certificates if the REMIC 3 Net
                Funds
                Cap were substituted for the Net Funds Cap shall be treated as having
                been
                paid by the Class A3 Certificateholders to the Supplemental Interest
                Trust, all pursuant to and as further provided in Section 10.01(n)
                hereof.

            

    

     

    
      	(4)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class A4 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.310% and (ii) with respect
                to
                any Distribution Date on which the Class Principal Amount of the
                Class A1
                Certificates is outstanding, the Pool 2 Net Funds Cap for such
                Distribution Date or, after the Distribution Date on which the Class
                Principal Amount of the Class A1 Certificates has been reduced to
                zero,
                the Subordinate Net Funds Cap for such Distribution Date;
                provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class A4 Certificates
                will be LIBOR plus 0.620%. For purposes of the REMIC Provisions,
                each
                reference to a Net Funds Cap in clause (ii) of the preceding sentence
                shall be deemed to be a reference to the REMIC 3 Net Funds Cap; therefore,
                on any Distribution Date on which the Certificate Interest Rate for
                the
                Class A4 Certificates exceeds the REMIC 3 Net Funds Cap, interest
                accruals
                based on such excess shall be treated as having been paid from the
                Basis
                Risk Reserve Fund or the Supplemental Interest Trust, as applicable;
                on
                any Distribution Date on which the Certificate Interest Rate on the
                Class
                A4 Certificates is based on a Net Funds Cap, the amount of interest
                that
                would have accrued on the Class A4 Certificates if the REMIC 3 Net
                Funds
                Cap were substituted for the Net Funds Cap shall be treated as having
                been
                paid by the Class A4 Certificateholders to the Supplemental Interest
                Trust, all pursuant to and as further provided in Section 10.01(n)
                hereof.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	(5)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M1 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.260% and (ii) the Subordinate
                Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M1 Certificates
                will be LIBOR plus 0.390%. For purposes of the REMIC Provisions,
                the
                reference to “Subordinate Net Funds Cap” in clause (ii) of the preceding
                sentence shall be deemed to be a reference to the REMIC 3 Net Funds
                Cap;
                therefore, on any Distribution Date on which the Certificate Interest
                Rate
                for the Class M1 Certificates exceeds the REMIC 3 Net Funds Cap,
                interest
                accruals based on such excess shall be treated as having been paid
                from
                the Basis Risk Reserve Fund or the Supplemental Interest Trust, as
                applicable; on any Distribution Date on which the Certificate Interest
                Rate on the Class M1 Certificates is based on the Subordinate Net
                Funds
                Cap, the amount of interest that would have accrued on the Class
                M1
                Certificates if the REMIC 3 Net Funds Cap were substituted for the
                Subordinate Net Funds Cap shall be treated as having been paid by
                the
                Class M1 Certificateholders to the Supplemental Interest Trust, all
                pursuant to and as further provided in Section 10.01(n) hereof.
                

            

    

     

    
      	(6)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M2 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.330% and (ii) the Subordinate
                Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M2 Certificates
                will be LIBOR plus 0.495%. For purposes of the REMIC Provisions,
                the
                reference to “Subordinate Net Funds Cap” in clause (ii) of the preceding
                sentence shall be deemed to be a reference to the REMIC 3 Net Funds
                Cap;
                therefore, on any Distribution Date on which the Certificate Interest
                Rate
                for the Class M2 Certificates exceeds the REMIC 3 Net Funds Cap,
                interest
                accruals based on such excess shall be treated as having been paid
                from
                the Basis Risk Reserve Fund or the Supplemental Interest Trust, as
                applicable; on any Distribution Date on which the Certificate Interest
                Rate on the Class M2 Certificates is based on the Subordinate Net
                Funds
                Cap, the amount of interest that would have accrued on the Class
                M2
                Certificates if the REMIC 3 Net Funds Cap were substituted for the
                Subordinate Net Funds Cap shall be treated as having been paid by
                the
                Class M2 Certificateholders to the Supplemental Interest Trust, all
                pursuant to and as further provided in Section 10.01(n)
                hereof.

            

    

     

    
      	(7)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M3 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus0.350% and (ii) the Subordinate
                Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M3 Certificates
                will be LIBOR plus 0.525%. For purposes of the REMIC Provisions,
                the
                reference to “Subordinate Net Funds Cap” in clause (ii) of the preceding
                sentence shall be deemed to be a reference to the REMIC 3 Net Funds
                Cap;
                therefore, on any Distribution Date on which the Certificate Interest
                Rate
                for the Class M3 Certificates exceeds the REMIC 3 Net Funds Cap,
                interest
                accruals based on such excess shall be treated as having been paid
                from
                the Basis Risk Reserve Fund or the Supplemental Interest Trust, as
                applicable; on any Distribution Date on which the Certificate Interest
                Rate on the Class M3 Certificates is based on the Subordinate Net
                Funds
                Cap, the amount of interest that would have accrued on the Class
                M3
                Certificates if the REMIC 3 Net Funds Cap were substituted for the
                Subordinate Net Funds Cap shall be treated as having been paid by
                the
                Class M3 Certificateholders to the Supplemental Interest Trust, all
                pursuant to and as further provided in Section 10.01(n)
                hereof.

            

    

     

    
      	(8)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M4 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.410% and (ii) the Subordinate
                Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M4 Certificates
                will be LIBOR plus 0.615%. For purposes of the REMIC Provisions,
                the
                reference to “Subordinate Net Funds Cap” in clause (ii) of the preceding
                sentence shall be deemed to be a reference to the REMIC 3 Net Funds
                Cap;
                therefore, on any Distribution Date on which the Certificate Interest
                Rate
                for the Class M4 Certificates exceeds the REMIC 3 Net Funds Cap,
                interest
                accruals based on such excess shall be treated as having been paid
                from
                the Basis Risk Reserve Fund or the Supplemental Interest Trust, as
                applicable; on any Distribution Date on which the Certificate Interest
                Rate on the Class M4 Certificates is based on the Subordinate Net
                Funds
                Cap, the amount of interest that would have accrued on the Class
                M4
                Certificates if the REMIC 3 Net Funds Cap were substituted for the
                Subordinate Net Funds Cap shall be treated as having been paid by
                the
                Class M4 Certificateholders to the Supplemental Interest Trust, all
                pursuant to and as further provided in Section 10.01(n) hereof.
                

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	(9)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M5 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.430% and (ii) the Subordinate
                Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M5 Certificates
                will be LIBOR plus 0.645%. For purposes of the REMIC Provisions,
                the
                reference to “Subordinate Net Funds Cap” in clause (ii) of the preceding
                sentence shall be deemed to be a reference to the REMIC 3 Net Funds
                Cap;
                therefore, on any Distribution Date on which the Certificate Interest
                Rate
                for the Class M5 Certificates exceeds the REMIC 3 Net Funds Cap,
                interest
                accruals based on such excess shall be treated as having been paid
                from
                the Basis Risk Reserve Fund or the Supplemental Interest Trust, as
                applicable; on any Distribution Date on which the Certificate Interest
                Rate on the Class M5 Certificates is based on the Subordinate Net
                Funds
                Cap, the amount of interest that would have accrued on the Class
                M5
                Certificates if the REMIC 3 Net Funds Cap were substituted for the
                Subordinate Net Funds Cap shall be treated as having been paid by
                the
                Class M5 Certificateholders to the Supplemental Interest Trust, all
                pursuant to and as further provided in Section 10.01(n) hereof.
                

            

    

     

    
      	(10)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M6 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.470% and (ii) the Subordinate
                Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M6 Certificates
                will be LIBOR plus 0.705%. For purposes of the REMIC Provisions,
                the
                reference to “Subordinate Net Funds Cap” in clause (ii) of the preceding
                sentence shall be deemed to be a reference to the REMIC 3 Net Funds
                Cap;
                therefore, on any Distribution Date on which the Certificate Interest
                Rate
                for the Class M6 Certificates exceeds the REMIC 3 Net Funds Cap,
                interest
                accruals based on such excess shall be treated as having been paid
                from
                the Basis Risk Reserve Fund or the Supplemental Interest Trust, as
                applicable; on any Distribution Date on which the Certificate Interest
                Rate on the Class M6 Certificates is based on the Subordinate Net
                Funds
                Cap, the amount of interest that would have accrued on the Class
                M6
                Certificates if the REMIC 3 Net Funds Cap were substituted for the
                Subordinate Net Funds Cap shall be treated as having been paid by
                the
                Class M6 Certificateholders to the Supplemental Interest Trust, all
                pursuant to and as further provided in Section 10.01(n) hereof.
                

            

    

     

    
      	(11)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M7 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 0.800% and (ii) the Subordinate
                Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M7 Certificates
                will be LIBOR plus 1.200%. For purposes of the REMIC Provisions,
                the
                reference to “Subordinate Net Funds Cap” in clause (ii) of the preceding
                sentence shall be deemed to be a reference to the REMIC 3 Net Funds
                Cap;
                therefore, on any Distribution Date on which the Certificate Interest
                Rate
                for the Class M7 Certificates exceeds the REMIC 3 Net Funds Cap,
                interest
                accruals based on such excess shall be treated as having been paid
                from
                the Basis Risk Reserve Fund or the Supplemental Interest Trust, as
                applicable; on any Distribution Date on which the Certificate Interest
                Rate on the Class M7 Certificates is based on the Subordinate Net
                Funds
                Cap, the amount of interest that would have accrued on the Class
                M7
                Certificates if the REMIC 3 Net Funds Cap were substituted for the
                Subordinate Net Funds Cap shall be treated as having been paid by
                the
                Class M7 Certificateholders to the Supplemental Interest Trust, all
                pursuant to and as further provided in Section 10.01(n) hereof.
                

            

    

     

    
      	(12)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M8 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 1.300% and (ii) the Subordinate
                Net Funds Cap for such Distribution Date; provided,
                that
                if the Mortgage Loans and related property are not purchased pursuant
                to
                Section 7.01(b) on the Initial Optional Termination Date, then with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M8 Certificates
                will be LIBOR plus 1.950%. For purposes of the REMIC Provisions,
                the
                reference to “Subordinate Net Funds Cap” in clause (ii) of the preceding
                sentence shall be deemed to be a reference to the REMIC 3 Net Funds
                Cap;
                therefore, on any Distribution Date on which the Certificate Interest
                Rate
                for the Class M8 Certificates exceeds the REMIC 3 Net Funds Cap,
                interest
                accruals based on such excess shall be treated as having been paid
                from
                the Basis Risk Reserve Fund or the Supplemental Interest Trust, as
                applicable; on any Distribution Date on which the Certificate Interest
                Rate on the Class M8 Certificates is based on the Subordinate Net
                Funds
                Cap, the amount of interest that would have accrued on the Class
                M8
                Certificates if the REMIC 3 Net Funds Cap were substituted for the
                Subordinate Net Funds Cap shall be treated as having been paid by
                the
                Class M8 Certificateholders to the Supplemental Interest Trust, all
                pursuant to and as further provided in Section 10.01(n)
                hereof.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	(13)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class M9 Certificates is the per
                annum
                rate equal to the lesser of (i) LIBOR plus 2.350% and (ii) the Subordinate
                Net Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class M9 Certificates
                will be LIBOR plus 3.525%. For purposes of the REMIC Provisions,
                the
                reference to “Subordinate Net Funds Cap” in clause (ii) of the preceding
                sentence shall be deemed to be a reference to the REMIC 3 Net Funds
                Cap;
                therefore, on any Distribution Date on which the Certificate Interest
                Rate
                for the Class M9 Certificates exceeds the REMIC 3 Net Funds Cap,
                interest
                accruals based on such excess shall be treated as having been paid
                from
                the Basis Risk Reserve Fund or the Supplemental Interest Trust, as
                applicable; on any Distribution Date on which the Certificate Interest
                Rate on the Class M9 Certificates is based on the Subordinate Net
                Funds
                Cap, the amount of interest that would have accrued on the Class
                M9
                Certificates if the REMIC 3 Net Funds Cap were substituted for the
                Subordinate Net Funds Cap shall be treated as having been paid by
                the
                Class M9 Certificateholders to the Supplemental Interest Trust, all
                pursuant to and as further provided in Section 10.01(n)
                hereof.

            

    

     

    
      	(14)  	
              The
                Certificate Interest Rate with respect to any Distribution Date (and
                the
                related Accrual Period) for the Class B Certificates is the per annum
                rate
                equal to the lesser of (i) LIBOR plus 2.500% and (ii) the Subordinate
                Net
                Funds Cap for such Distribution Date; provided,
                that if the Mortgage Loans and related property are not purchased
                pursuant
                to Section 7.01(b) on the Initial Optional Termination Date, then
                with
                respect to each subsequent Distribution Date the per annum rate calculated
                pursuant to clause (i) above with respect to the Class B Certificates
                will
                be LIBOR plus 3.750%. For purposes of the REMIC Provisions, the reference
                to “Subordinate Net Funds Cap” in clause (ii) of the preceding sentence
                shall be deemed to be a reference to the REMIC 3 Net Funds Cap; therefore,
                on any Distribution Date on which the Certificate Interest Rate for
                the
                Class B Certificates exceeds the REMIC 3 Net Funds Cap, interest
                accruals
                based on such excess shall be treated as having been paid from the
                Basis
                Risk Reserve Fund or the Supplemental Interest Trust, as applicable;
                on
                any Distribution Date on which the Certificate Interest Rate on the
                Class
                B Certificates is based on the Subordinate Net Funds Cap, the amount
                of
                interest that would have accrued on the Class B Certificates if the
                REMIC
                3 Net Funds Cap were substituted for the Subordinate Net Funds Cap
                shall
                be treated as having been paid by the Class B Certificateholders
                to the
                Supplemental Interest Trust, all pursuant to and as further provided
                in
                Section 10.01(n) hereof.

            

    

     

    
      	(15)  	
              For
                purposes of the REMIC Provisions, Class X shall have an initial principal
                balance of $15,507,143.84, and the right to receive distributions
                of such
                amount represents a regular interest in the Upper Tier REMIC. The
                Class X
                Certificate shall also comprise two notional components, each of
                which
                represents a regular interest in the Upper Tier REMIC. The first
                such
                component has a notional balance that will at all times equal the
                aggregate of the Class Principal Amounts of the Lower Tier Interests
                in
                REMIC 3, and, for each Distribution Date (and the related Accrual
                Period)
                this notional component shall bear interest at a per annum rate equal
                to
                the excess, if any, of (i) (a) the weighted average of the interest
                rates
                on the Lower Tier Interests in REMIC 3 (other than any interest-only
                regular interest) minus (b) the Credit Risk Manager’s Fee Rate, over (ii)
                the Adjusted Lower Tier WAC. The second notional component represents
                the
                right to receive all distributions in respect of the Class LT3-IO
                Interest
                in REMIC 3 (the “Class LT4-I” interest). In addition, for purposes of the
                REMIC Provisions, the Class X Certificate shall represent beneficial
                ownership of (i) the Basis Risk Reserve Fund; (ii) the Supplemental
                Interest Trust, including the Swap Agreement, the Swap Account, the
                Interest Rate Cap Agreement and the Interest Rate Cap Account, and
                (iii)
                an interest in the notional principal contracts described in Section
                10.01(n) hereof.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	(16)  	
              The
                Class R Certificate will be issued without a Class Principal Amount
                and
                will not bear interest at a stated rate. The Class R Certificate
                represents ownership of the residual interest in the Upper Tier REMIC,
                as
                well as ownership of the Class LT2-R Interest and Class LT3-R Interest.
                The Class R Certificate will be issued as a single Certificate evidencing
                the entire Percentage Interest in such
                Class.

            

    

     

    
      	(17)  	
              The
                Class P Certificates shall not bear interest at a stated rate. Prepayment
                Premiums paid with respect to the Mortgage Loans shall be paid to
                the
                Holders of the Class P Certificates as provided in Section 5.02(i).
                For
                purposes of the REMIC Provisions, Class P shall represent a regular
                interest in the Upper Tier REMIC.

            

    

     

    
      	(18)  	
              The
                Class P Certificates will have an initial Class P Principal Amount
                of
                $100.

            

    

     

    
      	(19)  	
              The
                Class LT-R Certificate will be issued without a Class Principal Amount
                and
                will not bear interest at a stated rate. The Class LT-R Certificate
                represents ownership of the residual interest in REMIC 1. The Class
                LT-R
                Certificate will be issued as a single Certificate evidencing the
                entire
                Percentage Interest in such Class.

            

    

     

    As
      of the
      Cut-off Date, the Mortgage Loans had an aggregate Scheduled Principal Balance
      of
      $861,483,243.84.

     

    In
      consideration of the mutual agreements herein contained, the Depositor, the
      Seller, the Credit Risk Manager, the Master Servicer and the Trustee hereby
      agree as follows:

     

    ARTICLE
      I 

     

    DEFINITIONS

     

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

     

    10-K
      Filing Deadline:
      As
      defined in Section 6.20(e)(i).

     

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

     

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

     

    Accrual
      Period:
      With
      respect to each Class of LIBOR Certificates and any Distribution Date, the
      period beginning on the Distribution Date in the calendar month immediately
      preceding the month in which the related Distribution Date occurs (or, in the
      case of the first Distribution Date, beginning on September 25, 2006) and ending
      on the day immediately preceding the related Distribution Date, as calculated
      in
      accordance with Section 1.03.

     

    Act:
      As
      defined in Section 3.03(c).

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Additional
      Collateral:
      None.

     

    Additional
      Form 10-D Disclosure:
      As
      defined in Section 6.20(d)(i).

     

    Additional
      Form 10-K Disclosure:
      As
      defined in Section 6.20(e)(i).

     

    Additional
      Servicer:
      Each
      affiliate of a Servicer that Services any of the Mortgage Loans and each Person
      who is not an affiliate of any Servicer, who Services 10% or more of the
      Mortgage Loans.

     

    Additional
      Termination Event:
      As
      defined in the Swap Agreement.

     

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

     

    Adjusted
      Lower Tier WAC:
      For any
      Distribution Date (and the related Accrual Period), an amount equal to (i)
      two,
      multiplied by (ii) the weighted average of the interest rates for such
      Distribution Date for the Class LT3-A1, Class LT3-A2, Class LT3-A3, Class
      LT3-A4, Class LT3-M1, Class LT3-M2, Class LT3-M3, Class LT3-M4, Class LT3-M5,
      Class LT3-M6, Class LT3-M7, Class LT3-M8, Class LT3-M9, Class LT3-B and Class
      LT3-Q Interests, weighted in proportion to their Class Principal Amounts as
      of
      the beginning of the related Accrual Period and computed by subjecting the
      rate
      on the Class LT3-Q Interest to a cap of 0.00%, and by subjecting the rate on
      each of the Class LT3-A1, Class LT3-A2, Class LT3-A3, Class LT3-A4, Class
      LT3-M1, Class LT3-M2, Class LT3-M3, Class LT3-M4, Class LT3-M5, Class LT3-M6,
      Class LT3-M7, Class LT3-M8, Class LT3-M9 and Class LT3-B Interests to a cap
      that
      corresponds to the Certificate Interest Rate (determined by substituting the
      REMIC 3 Net Funds Cap for the applicable Net Funds Cap) for the Corresponding
      Class of Certificates; provided,
      however,
      that
      for each Class of LIBOR Certificates, the Certificate Interest Rate shall be
      multiplied by an amount equal to (a) the actual number of days in the Accrual
      Period, divided by (b) 30.

     

    Advance:
      With
      respect to a Mortgage Loan other than a Simple Interest Mortgage Loan, an
      advance of the aggregate of payments (other than Balloon Payments) of principal
      and interest (net of the applicable Servicing Fee) on one or more Mortgage
      Loans
      that were due on a Due Date in the related Collection Period and not received
      as
      of the close of business on the related Determination Date, required to be
      made
      by or on behalf of the Master Servicer and any Servicer (or by the Trustee
      as
      successor to the Master Servicer) pursuant to Section 5.04, but only to the
      extent that such amount is expected, in the reasonable judgment of the Master
      Servicer or Servicer (or by the Trustee as successor to the Master Servicer),
      to
      be recoverable from collections or recoveries in respect of such Mortgage Loans.
      With respect to a Simple Interest Mortgage Loan, an advance of an amount equal
      to the interest accrual on such Simple Interest Mortgage Loan through the
      related Due Date but not received as of the close of business on the related
      Distribution Date (net of applicable Servicing Fee) required to be made by
      or on
      behalf of the Master Servicer or any Servicer (or by the Trustee as successor
      to
      the Master Servicer) pursuant to Section 5.04, but only to the extent that
      such
      amount is expected, in the reasonable judgment of the Master Servicer or
      Servicer (or by the Trustee as successor to the Master Servicer), to be
      recoverable from collections or recoveries in respect of such Simple Interest
      Mortgage Loans.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Adverse
      REMIC Event:
      Either
      (i) the loss of status as a REMIC, within the meaning of Section 860D of the
      Code, for any group of assets identified as a REMIC in the Preliminary Statement
      to this Agreement, or (ii) the imposition of any tax, including the tax imposed
      under Section 860F(a)(1) on prohibited transactions and the tax imposed under
      Section 860G(d) on certain contributions to a REMIC, on any REMIC created
      hereunder to the extent such tax would be payable from assets held as part
      of
      the Trust Fund. 

     

    Affected
      Party:
      As
      defined in the Swap Agreement.

     

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

     

    Aggregate
      Expense Rate:
      With
      respect to any Mortgage Loan, the sum of the related Servicing Fee Rate and
      the
      applicable Insurance Fee Rate, in the case of any Mortgage Loan covered by
      a
      Bulk PMI Policy or a LPMI Policy.

     

    Aggregate
      Overcollateralization Release Amount:
      With
      respect to any Distribution Date, the lesser of (x) the aggregate of the
      Principal Remittance Amounts for each Mortgage Pool for such Distribution Date
      and (y) the amount, if any, by which (i) the Overcollateralization Amount for
      such date, calculated for this purpose on the basis of the assumption that
      100%
      of the aggregate of the Principal Remittance Amounts for such Distribution
      Date
      is applied on such date in reduction of the aggregate Certificate Principal
      Amount of the Certificates, exceeds (ii) the Targeted Overcollateralization
      Amount for such Distribution Date.

     

    Aggregate
      Pool Balance:
      As of
      any date of determination, the aggregate of the Pool Balances of Pool 1 and
      Pool
      2 on such date.

     

    Aggregate
      Voting Interests:
      The
      aggregate of the Voting Interests of all the Certificates under this
      Agreement.

     

    Agreement:
      This
      Trust Agreement and all amendments and supplements hereto.

     

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

     

    Applied
      Loss Amount:
      With
      respect to any Distribution Date, the amount, if any, by which (x) the aggregate
      Certificate Principal Amount of the LIBOR Certificates after giving effect
      to
      distributions of principal on such Distribution Date, but before giving effect
      to any application of the Applied Loss Amount with respect to such date, exceeds
      (y) the Aggregate Pool Balance for such Distribution Date.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

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

     

    Assignment
      of Mortgage:
      An
      assignment of the Mortgage, notice of transfer or equivalent instrument, in
      recordable form, sufficient under the laws of the jurisdiction wherein the
      related Mortgaged Property is located to reflect the sale of the Mortgage to
      the
      Trustee, which assignment, notice of transfer or equivalent instrument may
      be in
      the form of one or more blanket assignments covering the Mortgage Loans secured
      by Mortgaged Properties located in the same jurisdiction, if permitted by law;
      provided,
      however,
      that
      neither the Custodian nor the Trustee shall be responsible for determining
      whether any such assignment is in recordable form.

     

    Aurora:
      Aurora
      Loan Services LLC.

     

    Authenticating
      Agent:
      Any
      authenticating agent appointed by the Trustee pursuant to Section
      6.10.

     

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

     

    B
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate of the Class Principal
      Amounts of the Senior Certificates and the Class M1, Class M2, Class M3, Class
      M4, Class M5, Class M6, Class M7, Class M8 and Class M9 Certificates, in each
      case after giving effect to distributions on such Distribution Date and (ii)
      the
      Class Principal Amount of the Class B Certificates immediately prior to such
      Distribution Date exceeds (y) the B Target Amount.

     

    B
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) 96.40% and (ii) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period and (b)
      the
      amount, if any, by which (i) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (ii)
      the Overcollateralization Floor.

     

    Back-Up
      Certification:
      As
      defined in Section 6.20(e)(iv).

     

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

     

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

     

    Bank:
      Lehman
      Brothers Bank, FSB and its successors and assigns.

     

    
      
        
        

      

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

     

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

     

    Basis
      Risk Payment:
      With
      respect to any Distribution Date, the sum of (i) any Basis Risk Shortfall for
      such Distribution Date, (ii) any Unpaid Basis Risk Shortfall from previous
      Distribution Dates and (iii) any Required Reserve Fund Deposit for such
      Distribution Date. The amount of the Basis Risk Payment for any Distribution
      Date cannot exceed the amount of Monthly Excess Cashflow otherwise available
      for
      distribution pursuant to Section 5.02(f)(iv) of this Agreement. 

     

    Basis
      Risk Reserve Fund:
      A fund
      created as part of the Trust Fund pursuant to Section 5.06 of this Agreement
      but
      which is not an asset of any of the REMICs.

     

    Basis
      Risk Shortfall:
      With
      respect to any Distribution Date and any Class of LIBOR Certificates, the amount
      by which the amount of interest calculated at the Certificate Interest Rate
      applicable to such Class for such date, determined without regard to the Pool
      1
      Net Funds Cap, Pool 2 Net Funds Cap or Subordinate Net Funds Cap, as applicable,
      for such date but subject to a cap equal to the applicable Maximum Interest
      Rate, exceeds the amount of interest calculated at the Pool 1 Net Funds Cap,
      Pool 2 Net Funds Cap or Subordinate Net Funds Cap, as applicable.

     

    Benefit
      Plan Opinion:
      An
      Opinion of Counsel satisfactory to the Depositor and the Trustee to the effect
      that any proposed transfer of Certificates will not (i) cause the assets of
      the
      Trust Fund to be regarded as plan assets for purposes of the Plan Asset
      Regulations or (ii) give rise to any fiduciary duty on the part of the Depositor
      or the Trustee, respectively.

     

    Book-Entry
      Certificates:
      Beneficial interests in Certificates designated as “Book-Entry Certificates” in
      this Agreement, ownership and transfers of which shall be evidenced or made
      through book entries by a Clearing Agency as described in Section 3.09;
provided,
      that after
      the
      occurrence of a condition whereupon book-entry registration and transfer are
      no
      longer permitted and Definitive Certificates are to be issued to Certificate
      Owners, such Book-Entry Certificates shall no longer be “Book-Entry
      Certificates.” As of the Closing Date, each Class of LIBOR Certificates
      constitutes Book-Entry Certificates. 

     

    Bulk
      PMI Policy:
      Any of
      the (A)(i) the MGIC Mortgage Guaranty Select Master Policy for Multiple Loan
      Transactions No. 22-590-4-3632 and the MGIC Letter Agreement dated September
      26,
      2006 and (ii) Commitment Certificates covering $89,970,361.75 aggregate
      principal balance of insurable Mortgage Loans and (B) PMI Mortgage Master Policy
      No. 21046-0030-0, Bulk No. 2006-0872,
      subject to the terms and conditions of PMI Mortgage’s Bulk Primary First Lien
      Master Policy UW 2510.00 (09/00) and the PMI Letter Agreement dated September
      29, 2006, covering $43,096,934.72 aggregate principal balance of insurable
      Mortgage Loans.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday, (ii) a day on which banking institutions
      in New York, New York or, if other than New York or the city in which the
      principal office of the Corporate Trust Office of the Trustee is located, or
      the
      States of Massachusetts or Colorado are closed, or (iii) with respect to any
      Servicer Remittance Date or any Servicer reporting date, the States specified
      in
      the definition of “Business Day” in the related Servicing Agreement, are
      authorized or obligated by law or executive order to be closed.

     

    Cap
      Counterparty:
      The
      counterparty to the Supplemental Interest Trust under the Interest Rate Cap
      Agreement, and any successor in interest or assigns. Initially, the Cap
      Counterparty shall be HSBC Bank USA, National Association.

     

    Cap
      Replacement Receipts:
      As
      defined in Section 5.09(b).

     

    Cap
      Replacement Receipts Account:
      As
      defined in Section 5.09(b).

     

    Cap
      Termination Payment:
      Upon
      the designation of an “Early Termination Date” as defined in the Interest Rate
      Cap Agreement, the payment required to be made by the Cap Counterparty to the
      Supplemental Interest Trust pursuant to the terms of the Interest Rate Cap
      Agreement, and any unpaid amounts due on previous Interest Rate Cap Payment
      Dates and accrued interest thereon as provided in the Interest Rate Cap
      Agreement, as calculated by the Cap Counterparty and furnished to the
      Trustee.

     

    Cap
      Termination Receipts:
      As
      defined in Section 5.09(b).

     

    Cap
      Termination Receipts Account:
      As
      defined in Section 5.09(b).

     

    Carryforward
      Interest:
      With
      respect to any Class of LIBOR Certificates and any Distribution Date, the sum
      of
      (i) the amount, if any, by which (x) the sum of (A) Current Interest for such
      Class for the immediately preceding Distribution Date and (B) any unpaid
      Carryforward Interest for such Class from previous Distribution Dates exceeds
      (y) the amount distributed in respect of interest on such Class on such
      immediately preceding Distribution Date, and (ii) interest on such amount for
      the related Accrual Period at the applicable Certificate Interest
      Rate.

     

    Certificate:
      Any one
      of the certificates signed and countersigned by the Trustee in substantially
      the
      forms attached hereto as Exhibit A.

     

    Certificate
      Account:
      The
      account maintained by the Trustee in accordance with the provisions of Section
      4.04.

     

    Certificate
      Interest Rate:
      With
      respect to each Class of Certificates and any Distribution Date, the applicable
      per annum rate set forth or described under the heading “The Certificates” in
      the Preliminary Statement hereto.

     

    Certificate
      Owner:
      With
      respect to a Book-Entry Certificate, the Person who is the owner of such
      Book-Entry Certificate, as reflected on the books of the Clearing Agency, or
      on
      the books of a Person maintaining an account with such Clearing Agency (directly
      or as an indirect participant, in accordance with the rules of such Clearing
      Agency).

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Certificate
      Principal Amount:
      With
      respect to any LIBOR Certificate, the initial Certificate Principal Amount
      thereof on the Closing Date, less the amount of all principal distributions
      previously distributed with respect to such Certificate and, in the case of
      the
      Subordinate Certificates, any Applied Loss Amount previously allocated to such
      Certificate; provided,
      however,
      that on
      each Distribution Date on which a Subsequent Recovery is distributed, the
      Certificate Principal Amount of any Class of Subordinate Certificates whose
      Certificate Principal Amount has previously been reduced by application of
      Applied Loss Amounts will be increased, sequentially, in order of seniority,
      by
      an amount (to be applied pro
      rata
      to all
      Certificates of such Class) equal to the lesser of (1) any Deferred Amount
      for
      each such Class immediately prior to such Distribution Date and (2) the total
      amount of any Subsequent Recovery distributed on such Distribution Date to
      Certificateholders, after application for this purpose to any more senior
      Classes of Certificates. The Class X, Class R and Class LT-R Certificates are
      issued without Certificate Principal Amounts. The Class P Certificates are
      issued with an initial Class P Principal Amount of $100.

    

    Certificate
      Register
      and
Certificate
      Registrar:
      The
      register maintained and the registrar appointed pursuant to Section
      3.02.

     

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

     

    Certification
      Parties:
      As
      defined in Section 6.20(e)(iv).

     

    Certifying
      Person:
      As
      defined in Section 6.20(e)(iv).

     

    Civil
      Relief Act:
      The
      Servicemembers Civil Relief Act, as amended, or any similar state or local
      statute.

     

    Class:
      All
      Certificates, in the case of REMIC 4, all interests bearing the same class
      designation, and, in the case of REMIC 1, REMIC 2 and REMIC 3, all Lower Tier
      Interests, bearing the same class designation.

     

    Class
      I Shortfalls:
      As
      defined in Section 10.01(n) hereof. For purposes of clarity, the Class I
      Shortfall for any Distribution Date shall equal the amount payable to the Swap
      Counterparty on such Distribution Date in excess of the amount payable on the
      Class LT4-I interest in the Upper Tier REMIC on such Distribution Date, all
      as
      further provided in Section 10.01(n) hereof.

     

    Class
      LT-R Certificate:
      Each
      Class LT-R Certificate executed by the Trustee and authenticated and delivered
      by the Certificate Registrar, substantially in the form annexed hereto as
      Exhibit A and evidencing the ownership of the residual interest in REMIC
      1.

     

    Class
      M Certificates:
      Collectively, the Class M1, Class M2, Class M3, Class M4, Class M5, Class M6,
      Class M7, Class M8 and Class M9 Certificates.

     

    Class
      Notional Amount:
      Not
      applicable. 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Class
      P Principal Amount:
      As of
      the Closing Date, $100.

     

    Class
      Principal Amount:
      With
      respect to any Class of LIBOR Certificates and any date of determination, the
      aggregate of the Certificate Principal Amounts of all Certificates of such
      Class
      on such date. With respect to the Class X, Class P, Class LT-R and Class R
      Certificates, zero. With respect to any Lower Tier Interest, the initial Class
      Principal Amount as shown or described in the table set forth in the Preliminary
      Statement to this Agreement for the issuing REMIC, as reduced by principal
      distributed with respect to such Lower Tier Interest and Realized Losses
      allocated to such Lower Tier Interest. 

     

    Class
      R Certificate:
      Each
      Class R Certificate executed by the Trustee, and authenticated and delivered
      by
      the Certificate Registrar, substantially in the form annexed hereto as Exhibit
      A
      and evidencing the ownership of the Class LT2-R Interest, Class LT3-R Interest
      and the residual interest in the Upper Tier REMIC.

     

    Class
      X Distributable Amount:
      With
      respect to any Distribution Date, the amount of interest that has accrued on
      the
      Class X Notional Balance, as described in the Preliminary Statement, but that
      has not been distributed prior to such date. In addition, such amount shall
      include the initial Overcollateralization Amount of $15,507,143.84
      ($15,507,243.84 less $100 of such amount allocated to the Class P Certificates)
      to the extent such amount has not been distributed on an earlier Distribution
      Date as part of the Aggregate Overcollateralization Release Amount.

     

    Class
      X Notional Balance:
      With
      respect to any Distribution Date (and the related Accrual Period) the aggregate
      principal balance of the regular interests in REMIC 3 as specified in the
      Preliminary Statement hereto.

     

    Clearing
      Agency:
      An
      organization registered as a “clearing agency” pursuant to Section 17A of the
      Exchange Act. 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 Luxembourg, and any successor thereto.

     

    Closing
      Date:
      September 29, 2006.

     

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

     

    Collection
      Account:
      A
      separate account established and maintained by the Master Servicer pursuant
      to
      Section 4.01.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

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

     

    Commission:
      The
      United States Securities and Exchange Commission.

     

    Compensating
      Interest Payment:
      With
      respect to any Distribution Date, an amount equal to the aggregate amount of
      any
      Prepayment Interest Shortfalls required to be paid by the Servicers with respect
      to such Distribution Date. The Master Servicer (solely in its capacity as master
      servicer) shall not be responsible for making any Compensating Interest
      Payment.

     

    Controlling
      Person:
      With
      respect to any Person, any other Person who “controls” such Person within the
      meaning of the Securities Act.

     

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

     

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

     

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

     

    Cooperative
      Loan Documents:
      As to
      any Cooperative Loan, (i) the Cooperative Shares, together with a stock power
      in
      blank; (ii) the original executed Security Agreement and the assignment of
      the
      Security Agreement endorsed in blank; (iii) the original executed Proprietary
      Lease and the assignment of the Proprietary Lease endorsed in blank; (iv) the
      original executed Recognition Agreement and the assignment of the Recognition
      Agreement (or a blanket assignment of all Recognition Agreements) endorsed
      in
      blank; (v) the executed UCC-1 financing statement with evidence of recording
      thereon, which has been filed in all places required to perfect the security
      interest in the Cooperative Shares and the Proprietary Lease; and (vi) executed
      UCC-3 financing statements (or copies thereof) or other appropriate UCC
      financing statements required by state law, evidencing a complete and unbroken
      line from the mortgagee to the Trustee with evidence of recording thereon (or
      in
      a form suitable for recordation).

     

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

     

    Cooperative
      Shares:
      Shares
      issued by a Cooperative Corporation.

     

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

     

    Corporate
      Trust Office:
      The
      principal corporate trust office of the Trustee at which, at any particular
      time, its corporate trust business shall be administered, which office at the
      date hereof is located at One Federal Street, 3rd Floor, Boston, MA 02110,
      Attention: Structured Finance—BNC 2006-1.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Corresponding
      Class:
      The
      Class of Certificates that corresponds to a Class of interests in REMIC 3 or
      REMIC 4, as provided in the Preliminary Statement.

     

    Credit
      Risk Management Agreement:
      Each
      credit risk management agreement dated as of the Closing Date, entered into
      by a
      Servicer and the Credit Risk Manager, identified on Exhibit L attached
      hereto.

     

    Credit
      Risk Manager:
      Risk
      Management Group, LLC, formerly known as The Murrayhill Company, a Colorado
      corporation, and its successors and assigns. 

     

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

     

    Credit
      Risk Manager’s Fee Rate:
      0.010%
      per annum.

     

    Cumulative
      Loss Trigger Event:
      A
      Cumulative Loss Trigger Event shall have occurred with respect to any
      Distribution Date if the fraction, expressed as a percentage, obtained by
      dividing (x) the aggregate amount of cumulative Realized Losses incurred on
      the
      Mortgage Loans from the Cut-off Date through the last day of the related
      Collection Period by (y) the Cut-off Date Balance exceeds the applicable
      percentages described below with respect to such Distribution Date:

     

    
      	
              Distribution
                Date

            	 	
              Loss
                Percentage

            
	
              October
                2008 to September 2009

            	 	
              1.35%
                for the first month, plus
                an
                additional 1/12th
                of
                1.65% for each month thereafter

            
	
              October
                2009 to September 2010

            	 	
              3.00%
                for the first month, plus
                an
                additional 1/12th
                of
                1.70% for each month thereafter

            
	
              October
                2010 to September 2011

            	 	
              4.70%
                for the first month, plus
                an
                additional 1/12th
                of
                1.35% for each month thereafter

            
	
              October
                2011 to September 2012

            	 	
              6.05%
                for the first month, plus
                an
                additional 1/12th
                of
                0.75% for each month thereafter

            
	
              October
                2012 and thereafter

            	 	
              6.80%

            

    

     

    Current
      Interest:
      With
      respect to any Class of LIBOR Certificates and any Distribution Date, the
      aggregate amount of interest accrued at the applicable Certificate Interest
      Rate
      during the related Accrual Period on the Class Principal Amount of such Class
      immediately prior to such Distribution Date.

     

    Custodial
      Account:
      Any
      custodial account (other than an Escrow Account) established and maintained
      by a
      Servicer pursuant to the related Servicing Agreement.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    Custodial
      Agreement:
      The
      custodial agreement identified on Exhibit K hereto, and any custodial agreement
      subsequently executed by the Trustee and acknowledged by the Master Servicer
      substantially in the form thereof.

     

    Custodial
      Compensation:
      The
      transactional fees or charges (exclusive of the trustee acceptance fee and
      annual administration fee) and reimbursement of out-of-pocket expenses paid
      to
      or allowed the Custodian pursuant to the Schedule of Fees for Services as
      Document Custodian attached hereto as Exhibit Y.

     

    Custodian:
      The
      custodian appointed by the Trustee pursuant to the Custodial Agreement, and
      any
      successor thereto. The initial Custodian is Deutsche Bank National Trust
      Company.

     

    Cut-off
      Date:
      September 1, 2006.

     

    Cut-off
      Date Balance:
      The
      Aggregate Pool Balance as of the Cut-off Date.

     

    Debt
      Service Reduction:
      With
      respect to any Mortgage Loan, a reduction of the Scheduled Payment that the
      related Mortgagor is obligated to pay on any Due Date as a result of, or in
      connection with, any proceeding under Bankruptcy law or any similar
      proceeding.

     

    Defaulting
      Party:
      As
      defined in the Swap Agreement.

     

    Deferred
      Amount:
      With
      respect to any Distribution Date and each Class of the Subordinate Certificates,
      the amount by which (x) the aggregate of Applied Loss Amounts previously applied
      in reduction of the Class Principal Amount thereof exceeds (y) the sum of (1)
      the aggregate of amounts previously reimbursed in respect thereof and (2) the
      amount by which the Class Principal Amount of such Class has been increased
      due
      to any Subsequent Recovery.

     

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

     

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

     

    Delinquency
      Event:
      Any
      Distribution Date on which the Rolling Three Month Delinquency Rate as of the
      last day of the immediately preceding calendar month equals or exceeds (1)
      40.65% of the Senior Enhancement Percentage for such Distribution
      Date.

     

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

     

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

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    Depositor:
      Structured Asset Securities Corporation, a Delaware corporation having its
      principal place of business in New York, or its successors in
      interest.

     

    Determination
      Date:
      With
      respect to each Distribution Date, the 18th day of the month in which such
      Distribution Date occurs, or, if such 18th day is not a Business Day, the next
      succeeding Business Day.

     

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

     

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

     

    Distribution
      Date:
      The
      25th day of each month or, if such 25th day is not a Business Day, the next
      succeeding Business Day, commencing in October 2006.

     

    Distribution
      Date Statement:
      As
      defined in Section 4.03(a).

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

    (vi)
        a
      Qualified GIC;

     

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

     

    
      
        
        

      

      
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    (viii)
        any
      other
      demand, money market, common trust fund or time deposit or obligation, or
      interest-bearing or other security or investment (including those managed or
      advised by the Trustee or any Affiliate thereof), (A) rated in the highest
      rating category by each Rating Agency rating such investment or (B) that would
      not adversely affect the then current rating assigned by each Rating Agency
      of
      any of the Certificates or the NIM Securities and has a short term rating of
      at
      least “A-1” or its equivalent by each Rating Agency. Such investments in this
      subsection (viii) may include money market mutual funds or common trust funds,
      including any fund for which U.S. Bank National Association (the “Bank”) in its
      capacity other than as Trustee, the Trustee, the Master Servicer, any NIMS
      Insurer or an affiliate thereof serves as an investment advisor, administrator,
      shareholder servicing agent, and/or custodian or subcustodian, notwithstanding
      that (x) the Bank, the Trustee, the Master Servicer, any NIMS Insurer or any
      affiliate thereof charges and collects fees and expenses from such funds for
      services rendered, (y) the Bank, the Trustee, the Master Servicer, any NIMS
      Insurer, the Trustee or any affiliate thereof charges and collects fees and
      expenses for services rendered pursuant to this Agreement, and (z) services
      performed for such funds and pursuant to this Agreement may converge at any
      time. The Trustee specifically authorizes the Bank or an affiliate thereof
      to
      charge and collect from the Trustee such fees as are collected from all
      investors in such funds for services rendered to such funds (but not to exceed
      investment earnings thereon);

     

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

     

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

     

    ERISA-Qualifying
      Underwriting:
      A best
      efforts or firm commitment underwriting or private placement that meets the
      requirements of an Underwriter’s Exemption.

     

    ERISA-Restricted
      Certificate:
      Any
      Class B, Class P, Class X, Class R or Class LT-R Certificate, and any Offered
      Certificate which does not have a rating of BBB- or above or Baa3 or above.
      

     

    ERISA-Restricted
      Trust Certificate:
      Any
      Senior Certificate or Class M Certificate.

     

    Errors
      and Omission Insurance Policy:
      The
      errors or omission insurance policy required to be obtained by each Servicer
      satisfying the requirements of the related Servicing Agreement.

     

    Escrow
      Account:
      Any
      account established and maintained by each Servicer pursuant to the related
      Servicing Agreement.

     

    
      
        
        

      

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

     

    Event
      of Default:
      Any one
      of the conditions or circumstances enumerated in Section 6.14(a).

     

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

     

    Exchange
      Act Signing Party:
      Either
      the Depositor or the Master Servicer, to be determined by mutual agreement
      between such parties.

     

    Excluded
      Trust Assets:
      As
      described in the Preliminary Statement. 

     

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

     

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

     

    Fidelity
      Bond:
      The
      fidelity bond required to be obtained by each Servicer satisfying the
      requirements of the related Servicing Agreement.

     

    Final
      Scheduled Distribution Date:
      With
      respect to each Class of Certificates, the Distribution Date occurring in
      October 2036.

     

    Financial
      Intermediary:
      A
      broker, dealer, bank or other financial institution or other Person that clears
      through or maintains a custodial relationship with a Clearing Agency
      Participant.

     

    First
      Payment Default Mortgage Loan:
      Any
      Mortgage Loan listed in Schedule B, as to which the related Mortgagor fails
      to
      make the first Scheduled Payment that is due on such Mortgage Loan after the
      Initial Sale Date within two calendar months following the date upon which
      the
      first Scheduled Payment was due. By way of example, a first Scheduled Payment
      due on September 1, 2006 must be made by the Mortgagor on or before October
      31,
      2006.

     

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

     

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

     

    Form
      8-K Disclosure Information:
      As
      defined in Section 6.20(f)(i).

     

    Form
      10-K Certification:
      The
      certification required pursuant to Rule 13a-14 under the Exchange
      Act.

     

    FPD
      Premium:
      With
      respect to any First Payment Default Mortgage Loan purchased by the Seller,
      the
      excess, if any of the FPD Purchase Price over the Purchase Price for such
      Mortgage Loan.

     

    
      
        
        

      

      
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    FPD
      Purchase Price:
      With
      respect to any First Payment Default Mortgage Loan, an amount equal to the
      sum
      of (a) 101.50% of the unpaid principal balance of such Mortgage Loan and (b)
      accrued interest thereon at the applicable Mortgage Rate from the date as to
      interest was last paid to (but not including) the Due Date in the Collection
      Period immediately preceding the related Distribution Date.

     

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

     

    Global
      Securities:
      The
      global certificates representing the Book-Entry Certificates.

     

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

     

    Group:
      The
      Group 1 Senior Certificates or the Group 2 Senior Certificates, as the context
      requires.

     

    Group
      1 Senior Certificates:
      The
      Class A1 Certificates.

     

    Group
      2 Senior Certificates:
      Collectively, the Class A2, Class A3 and Class A4 Certificates.

     

    Holder
      or
Certificateholder:
      The
      registered owner of any Certificate as recorded on the books of the Certificate
      Registrar except that, solely for the purposes of taking any action or giving
      any consent pursuant to this Agreement, any Certificate registered in the name
      of the Depositor, the Trustee, the Master Servicer, any Servicer or the Credit
      Risk Manager or any Affiliate thereof shall be deemed not to be outstanding
      in
      determining whether the requisite percentage necessary to effect any such
      consent has been obtained, except that, in determining whether the Trustee
      shall
      be protected in relying upon any such consent, only Certificates which a
      Responsible Officer of the Trustee knows to be so owned shall be disregarded.
      The Trustee and any NIMS Insurer may request and conclusively rely on
      certifications by the Depositor, the Master Servicer, the applicable Servicer
      or
      the Credit Risk Manager in determining whether any Certificates are registered
      to an Affiliate of the Depositor, the Master Servicer, any Servicer or the
      Credit Risk Manager. After a Section 7.01(c) Purchase Event, other than in
      Sections 5.02(b) through (g) and 11.03(a) and (b) and, except in the case of
      the
      Class LT-R Certificates, Sections 3.03, 3.04, 3.05, 3.06, 3.07 and 3.09 herein,
      all references in this Agreement to “Holder” or “Certificateholder” shall be
      deemed to be references to the LTURI-holder, as recorded on the books of the
      Certificate Registrar, as holder of the Lower Tier Uncertificated REMIC 1
      Regular Interests.

     

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

     

    Independent:
      When
      used with respect to any Accountants, a Person who is “independent” within the
      meaning of Rule 2-01(b) of the Commission’s Regulation S-X. When used with
      respect to any other Person, a Person who (a) is in fact independent of another
      specified Person and any Affiliate of such other Person, (b) does not have
      any
      material direct financial interest in such other Person or any Affiliate of
      such
      other Person, (c) is not connected with such other Person or any Affiliate
      of
      such other Person as an officer, employee, promoter, underwriter, trustee,
      partner, director or Person performing similar functions and (d) is not a member
      of the immediate family of a Person defined in clause (b) or (c)
      above.

     

    
      
        
        

      

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

     

    Initial
      LIBOR Rate:
      5.330%.

     

    Initial
      Optional Termination Date:
      The
      first Distribution Date following the date on which the Aggregate Pool Balance
      is less than 10.00% of the Cut-off Date Balance.

     

    Initial
      Sale Date:
      The
      date on which the Mortgage Loan was sold by the Transferor to the Bank, as
      specified in the Mortgage Loan Schedule. 

     

    Insurance
      Fee Rate:
      Not
      applicable.

     

    Insurance
      Policy:
      Any
      Primary Mortgage Insurance Policy, any standard hazard insurance policy, flood
      insurance policy, earthquake insurance policy or title insurance policy relating
      to the Mortgage Loans or the Mortgaged Properties, to be in effect as of the
      Closing Date or thereafter during the term of this Agreement.

     

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

     

    Interest
      Rate Cap Account:
      The
      account created pursuant to Section 5.07(b).

     

    Interest
      Rate Cap Agreement:
      The
      interest rate cap agreement dated September 29, 2006 entered into by the
      Supplemental Interest Trust, which agreement provides for the monthly payment
      specified therein to the Trustee (for the benefit of the Certificateholders)
      commencing with the Distribution Date in September 2007 and ending on the
      Distribution Date in September 2011, by the Cap Counterparty, but subject to
      the
      conditions set forth therein together with any schedules, confirmations or
      other
      agreements relating thereto, attached hereto as Exhibit N. 

     

    Interest
      Rate Cap Amount:
      With
      respect to each Distribution Date, the amount of any Interest Rate Cap Payment
      deposited into the Interest Rate Cap Account.

     

    Interest
      Rate Cap Payment:
      With
      respect to each Distribution Date, any payment required to be made by the Cap
      Counterparty to the Supplemental Interest Trust pursuant to the terms of the
      Interest Rate Cap Agreement.

     

    Interest
      Rate Cap Payment Date:
      For so
      long as the Interest Rate Cap Agreement is in effect or any amounts remain
      unpaid thereunder, the Business Day immediately preceding each Distribution
      Date.

     

    
      
        
        

      

      
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    Interest
      Remittance Amount:
      With
      respect to each Mortgage Pool and any Distribution Date, an amount equal to
      (a)
      the sum of (1) all interest collected (other than Payaheads and Prepayment
      Premiums) or advanced in respect of Scheduled Payments on the Mortgage Loans
      in
      such Mortgage Pool during the related Collection Period by the applicable
      Servicers, the Master Servicer or the Trustee (solely in its capacity as
      successor master servicer), minus
      (w) the
      PMI Insurance Premiums related to the Mortgage Loans in such Mortgage Pool
      and
      any state taxes imposed on such premiums, (x) the Servicing Fee with respect
      to
      such Mortgage Loans in such Mortgage Pool and (y) previously unreimbursed
      Advances due to the Servicers, the Master Servicer or the Trustee (solely in its
      capacity as successor master servicer) to the extent allocable to interest
      and
      the allocable portion of previously unreimbursed Servicing Advances with respect
      to such Mortgage Loans, (2) any amounts actually paid by the Servicers with
      respect to Prepayment Interest Shortfalls and any Compensating Interest Payments
      with respect to such Mortgage Loans and the related Prepayment Period, (3)
      the
      portion of any Purchase Price (or FPD Purchase Price (excluding any FPD
      Premiums) payable with respect to a First Payment Default Mortgage Loan) or
      Substitution Amount paid with respect to such Mortgage Loans during the related
      Prepayment Period allocable to interest and (4) all Net Liquidation
      Proceeds, Insurance Proceeds and any other recoveries collected with respect
      to
      such Mortgage Loans during the related Prepayment Period, to the extent
      allocable to interest, for each Mortgage Pool, as
      reduced by (b)
      the
      product of (i) the applicable Pool Percentage for such Distribution Date and
      (ii) any other costs, expenses or liabilities reimbursable to the Trustee,
      the Master Servicer, the Custodian and each Servicer to the extent provided
      in
      this Agreement, each Servicing Agreement and the Custodial Agreement;
provided,
      however,
      that in
      the case of the Trustee, such reimbursable amounts to the Trustee payable from
      the Interest Remittance Amount and Principal Remittance Amount may not exceed
      $200,000 during any Anniversary Year. In the event that the Trustee incurs
      reimbursable amounts in excess of $200,000, it may seek reimbursement for such
      amounts in subsequent Anniversary Years, but in no event shall more than
      $200,000 be reimbursed to the Trustee per Anniversary Year. Notwithstanding
      the
      foregoing, costs and expenses incurred by the Trustee pursuant to Section
      6.14(a) in connection with any transfer of servicing shall be excluded from
      the
      $200,000 per Anniversary Year limit on reimbursable amounts. For the avoidance
      of doubt, (i) the Interest Remittance Amount available on each Swap Payment
      Date
      for distributions to the Swap Account shall be equal to the Interest Remittance
      Amount on the related Distribution Date and (ii) the Interest Remittance Amount
      for each Distribution Date shall be calculated without regard to any
      distributions to the Swap Account on the related Swap Payment Date.

     

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

     

    Latest
      Possible Maturity Date:
      The
      Distribution Date occurring in October 2041.

     

    LBH:
      Lehman
      Brothers Holdings Inc., or any successor in interest.

     

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

     

    
      
        
        

      

      
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    (b)  If
      on
      such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
      appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
      Telerate Page 3750 is not available on such date, the Trustee will obtain such
      rate first
      from
      Reuters’ “page LIBOR 01,” or if such page is not available, then from
      Bloomberg’s page “BBAM.” If any such rate is not published for such LIBOR
      Determination Date, LIBOR for such date will be the most recently published
      Interest Settlement Rate. In the event that the BBA no longer sets an Interest
      Settlement Rate, the Trustee will designate an alternative index that has
      performed, or that the Trustee expects to perform, in a manner substantially
      similar to the BBA’s Interest Settlement Rate. The Trustee will select a
      particular index as the alternative index only if it receives an Opinion of
      Counsel (a copy of which shall be furnished to any NIMS Insurer), which opinion
      shall be an expense reimbursed from the Certificate Account pursuant to Section
      4.04, that the selection of such index will not cause any of the REMICs to
      lose
      their classification as REMICs for federal income tax purposes.

     

    (c)  The
      establishment of LIBOR by the Trustee and the Trustee’s subsequent calculation
      of the Certificate Interest Rate applicable to the LIBOR Certificates for the
      relevant Accrual Period, in the absence of manifest error, will be final and
      binding.

     

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

     

    LIBOR
      Certificate:
      Any
      Class A1, Class A2, Class A3, Class A4, Class M1, Class M2, Class M3, Class
      M4,
      Class M5, Class M6, Class M7, Class M8, Class M9 or Class B
      Certificate.

     

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

     

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

     

    Liquidation
      Expenses:
      Expenses that are incurred by the Master Servicer or a Servicer in connection
      with the liquidation of any defaulted Mortgage Loan and are not recoverable
      under the related Primary Mortgage Insurance Policy, if any, including, without
      limitation, foreclosure and rehabilitation expenses, legal expenses and
      unreimbursed amounts, if any, expended pursuant to Sections 9.06, 9.16 or
      9.22.

     

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

     

    
      
        
        

      

      
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    Loan-to-Value
      Ratio:
      With
      respect to any Mortgage Loan, the ratio of the principal balance of such
      Mortgage Loan at origination, or such other date as is specified, to the
      Original Value of the related Mortgaged Property.

     

    Lower
      Tier Interest:
      As
      described in the Preliminary Statement.

     

    Lower
      Tier REMIC 1 Uncertificated Regular Interests:
      Lower
      Tier Interests of REMIC 1 constituting regular interests held in uncertificated
      form pursuant to a Section 7.01(c) Purchase Event.

     

    LPMI
      Policy:
      A
      Primary Mortgage Insurance Policy issued by a Qualified Insurer pursuant to
      which the related premium is to be paid from payments by the
      mortgagee.

     

    LTURI-holder:
      The
      holder of Lower Tier REMIC 1 Uncertificated Regular Interests, which upon the
      occurrence of a Section 7.01(c) Purchase Event shall be the Master Servicer
      or
      its designee, and including any trustee in its capacity as trustee of any
      privately placed securitization.

     

    M3
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates, in each case after giving effect to distributions
      on
      such Distribution Date and (ii) the aggregate Class Principal Amount of the
      Class M1, Class M2 and Class M3 Certificates immediately prior to such
      Distribution Date exceeds (y) the M3 Target Amount.

     

    M3
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) 79.70% and (ii) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period and (b)
      the
      amount, if any, by which (i) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (ii)
      the Overcollateralization Floor.

     

    M4
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2 and Class M3 Certificates,
      in each case after giving effect to distributions on such Distribution Date
      and
      (ii) the Class Principal Amount of the Class M4 Certificates immediately prior
      to such Distribution Date exceeds (y) the M4 Target Amount.

     

    M4
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) 83.00% and (ii) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period and (b)
      the
      amount, if any, by which (i) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (ii)
      the Overcollateralization Floor.

     

    M5
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2, Class M3 and Class M4
      Certificates, in each case after giving effect to distributions on such
      Distribution Date and (ii) the Class Principal Amount of the Class M5
      Certificates immediately prior to such Distribution Date exceeds (y) the M5
      Target Amount.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    M5
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) 86.00% and (ii) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period and (b)
      the
      amount, if any, by which (i) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (ii)
      the Overcollateralization Floor.

     

    M6
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2, Class M3, Class M4 and
      Class M5 Certificates, in each case after giving effect to distributions on
      such
      Distribution Date and (ii) the Class Principal Amount of the Class M6
      Certificates immediately prior to such Distribution Date exceeds (y) the M6
      Target Amount.

     

    M6
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) 88.50% and (ii) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period and (b)
      the
      amount, if any, by which (i) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (ii)
      the Overcollateralization Floor.

     

    M7
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2, Class M3, Class M4,
      Class
      M5 and Class M6 Certificates, in each case after giving effect to distributions
      on such Distribution Date and (ii) the Class Principal Amount of the Class
      M7
      Certificates immediately prior to such Distribution Date exceeds (y) the M7
      Target Amount.

     

    M7
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) 90.60% and (ii) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period and (b)
      the
      amount, if any, by which (i) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (ii)
      the Overcollateralization Floor.

     

    M8
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate Class Principal Amount
      of the Senior Certificates and the Class M1, Class M2, Class M3, Class M4,
      Class
      M5, Class M6 and Class M7 Certificates, in each case after giving effect to
      distributions on such Distribution Date and (ii) the Class Principal Amount
      of
      the Class M8 Certificates immediately prior to such Distribution Date exceeds
      (y) the M8 Target Amount.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    M8
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) 92.00% and (ii) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period and (b)
      the
      amount, if any, by which (i) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (ii)
      the Overcollateralization Floor.

     

    M9
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the aggregate of the Class Principal
      Amounts of the Senior Certificates and the Class M1, Class M2, Class M3, Class
      M4, Class M5, Class M6, Class M7 and Class M8 Certificates, in each case after
      giving effect to distributions on such Distribution Date and (ii) the Class
      Principal Amount of the Class M9 Certificates immediately prior to such
      Distribution Date exceeds (y) the M9 Target Amount.

     

    M9
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) 94.00% and (ii) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period and (b)
      the
      amount, if any, by which (i) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period exceeds
      (ii)
      the Overcollateralization Floor.

     

    Master
      Servicer:
      Aurora
      Loan Services LLC, or any successor in interest, or if any successor master
      servicer shall be appointed as herein provided, then such successor master
      servicer.

     

    Master
      Servicer Remittance Date:
      With
      respect to each Distribution Date, two Business Days immediately preceding
      such
      Distribution Date. 

     

    Master
      Servicing Fee:
      As to
      any Distribution Date, an amount equal to 1/12th
      the
      product of (a) the Master Servicing Fee Rate and (b) the outstanding principal
      balance of each Mortgage Loan.

     

    Master
      Servicing Fee Rate:
      0.00%
      per annum.

     

    Material
      Defect:
      As
      defined in Section 2.02(c) hereof.

     

    Maximum
      Interest Rate:
      The
      Pool 1 Maximum Interest Rate, the Pool 2 Maximum Interest Rate or the
      Subordinate Maximum Interest Rate, as applicable.

     

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

     

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

     

    MGIC:
      Mortgage Guaranty Insurance Corporation, or any successor in
      interest.

     

    
      
        
        

      

      
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    MGIC
      Letter Agreement:
      With
      respect to the Bulk PMI Policy with MGIC, the Terms Letter for MGIC Mortgage
      Insurance Coverage or approximately $89,970,361.75 in principal balance of
      insurance mortgage loans dated as of September 26, 2006, among Lehman Brothers
      Inc., MGIC and the Trustee.

     

    Monthly
      Excess Cashflow:
      For
      each Distribution Date, the aggregate of any remaining Interest Remittance
      Amount pursuant to Section 5.02(d)(v) for
      such
      date, any Principal Distribution Amount remaining after distribution pursuant
      to
      Section 5.02(e)(ii)(C) or 5.02 (e)(iii)(L) for such date, and any Aggregate
      Overcollateralization Release Amount for such date.

     

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

     

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

     

    Mortgage
      File:
      The
      mortgage documents listed in Section 2.01(b) pertaining to a particular Mortgage
      Loan required to be delivered to the Trustee pursuant to this
      Agreement.

     

    Mortgage
      Loan:
      A
      Mortgage and the related notes or other evidences of indebtedness secured by
      each such Mortgage conveyed, transferred, sold, assigned to or deposited with
      the Trustee pursuant to Section 2.01 or Section 2.05, including without
      limitation each Mortgage Loan listed on the Mortgage Loan Schedule, as amended
      from time to time.

     

    Mortgage
      Loan Sale Agreement:
      The
      mortgage loan sale and assignment agreement dated as of September 1, 2006,
      for
      the sale of the Mortgage Loans by the Seller to the Depositor.

     

    Mortgage
      Loan Schedule:
      The
      schedule attached hereto as Schedule A, which shall identify each Mortgage
      Loan,
      as such schedule may be amended from time to time to reflect the addition of
      Mortgage Loans to, or the deletion of Mortgage Loans from, the Trust Fund.
      Such
      schedule shall set forth, among other things, the following information with
      respect to each Mortgage Loan: (i) the Mortgage Loan identifying number; (ii)
      the city, state and zip code of the Mortgaged Property; (iii) the original
      principal amount of the Mortgage Loan; (iv) the Mortgage Rate at origination;
      (v) the monthly payment of principal and interest at origination; (vi) the
      Mortgage Pool in which such Mortgage Loan is included; (vii) the applicable
      Servicer servicing such Mortgage Loan and the applicable Servicing Fee Rate;
      (viii) the Custodian with respect to the Mortgage File related to such Mortgage
      Loan; (ix) where applicable, whether such Mortgage Loan is covered by any Bulk
      PMI Policy or LPMI Policy and the applicable PMI Insurer and the applicable
      Insurance Fee Rate; (x) whether such Mortgage Loan is subject to a Prepayment
      Premium for voluntary prepayments by the Mortgagor, the term during which such
      Prepayment Premiums are imposed and the methods of calculation of the Prepayment
      Premium; (xi) whether such Mortgage Loan is a Simple Interest Mortgage Loan;
      and
      (xii) whether such Mortgage Loan is a First Payment Default Mortgage Loan.
      The
      Depositor shall be responsible for providing the Trustee and the Master Servicer
      with all amendments to the Mortgage Loan Schedule.

     

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

     

    Mortgage
      Pool:
      Any of
      Pool 1 or Pool 2.

     

    
      
        
        

      

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

     

    Mortgaged
      Property:
      Either
      of (x) the fee simple interest in real property, together with improvements
      thereto including any exterior improvements to be completed within 120 days
      of
      disbursement of the related Mortgage Loan proceeds, or (y) in the case of a
      Cooperative Loan, the related Cooperative Shares and Proprietary Lease, securing
      the indebtedness of the Mortgagor under the related Mortgage Loan.

     

    Mortgagor:
      The
      obligor on a Mortgage Note.

     

    Net
      Excess Spread:
      With
      respect to any Distribution Date, (A) the fraction, expressed as a percentage,
      the numerator of which is equal to the product of (i) the amount, if any, by
      which (a) the aggregate of the Interest Remittance Amounts for each Mortgage
      Pool for such Distribution Date (as reduced by the aggregate Credit Risk
      Manager’s Fee) exceeds (b) the Current Interest payable with respect to the
      Certificates for such date and (ii) twelve, and the denominator of which is
      the
      Aggregate Pool Balance for such Distribution Date, multiplied
      by (B) a
      fraction, the numerator of which is thirty and the denominator of which is
      the
      greater of thirty and the actual number of days in the immediately preceding
      calendar month minus
      (C)
      the
      product, expressed as a percentage, of (i) the amount of any Net Swap Payment
      owed to the Swap Counterparty for such Distribution Date divided by the
      Aggregate Pool Balance as of the beginning of the related Collection Period
      and
      (ii) a fraction, the numerator of which is 360 and the denominator of which
      is
      the actual number of days in the Accrual Period related to such Distribution
      Date, plus
      (D)
      the
      product, expressed as a percentage, of (i) the sum of (a) the amount of any
      Net
      Swap Payment and (b) any Interest Rate Cap Payment received by the Supplemental
      Interest Trust for such Distribution Date divided by the Aggregate Pool Balance
      as of the beginning of the related Collection Period and (ii) a fraction, the
      numerator of which is 360 and the denominator of which is the actual number
      of
      days in the Accrual Period related to such Distribution Date. 

     

    Net
      Funds Cap:
      The
      Pool 1 Net Funds Cap, the Pool 2 Net Funds Cap or the Subordinate Net Funds
      Cap,
      as the context requires.

     

    Net
      Liquidation Proceeds:
      With
      respect to any Liquidated Mortgage Loan, the related Liquidation Proceeds net
      of
      (i) unreimbursed expenses and (ii) any unreimbursed Advances, if any, received
      and retained in connection with the liquidation of such Mortgage
      Loan.

     

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

     

    Net
      Prepayment Interest Shortfall:
      With
      respect to any Master Servicer Remittance Date, the excess, if any, of any
      Prepayment Interest Shortfalls with respect to the Mortgage Loans for such
      date
      over any amounts paid with respect to such shortfalls by the Servicers pursuant
      to the Servicing Agreements.

     

    Net
      Simple Interest Excess:
      With
      respect to any Distribution Date, the excess, if any, of (a) the amount of
      the
      payments received by the Servicers and the Master Servicer in the related
      Collection Period allocable to interest in respect of Simple Interest Mortgage
      Loans, calculated in accordance with the Simple Interest Method, net of the
      related Servicing Fees, over (b) 30 days’ interest at the weighted average (by
      principal balance) of the Net Mortgage Rates of the Simple Interest Mortgage
      Loans as of the first day of the related Collection Period, as determined by
      the
      related Servicer, on the aggregate principal balance of such Simple Interest
      Mortgage Loans for such Distribution Date, carried to six decimal places,
      rounded down, and calculated on the basis of a 360-day year consisting of twelve
      30-day months. For this purpose, the amount of interest received in respect
      of
      the Simple Interest Mortgage Loans in any month shall be deemed (i) to include
      any Advances of interest made by the related Servicer, the Master Servicer
      or
      the Trustee (solely in its capacity as successor master servicer) in such month
      in respect of such Simple Interest Mortgage Loans and (ii) to be reduced by
      any
      amounts paid to the related Servicer, the Master Servicer or the Trustee (solely
      in its capacity as successor master servicer) in such month in reimbursement
      of
      Advances previously made by the Servicer, the Master Servicer or the Trustee
      (solely in its capacity as successor master servicer) in respect of such Simple
      Interest Mortgage Loans.

     

    
      
        
        

      

      
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    Net
      Simple Interest Shortfall:
      With
      respect to any Distribution Date, the excess, if any, of (a) 30 days’ interest
      at the weighted average (by principal balance) of the Net Mortgage Rates of
      the
      Simple Interest Mortgage Loans as of the first day of the related Collection
      Period, as determined by the related Servicer, on the aggregate principal
      balance of such Simple Interest Mortgage Loans for such Distribution Date,
      carried to six decimal places, rounded down, and calculated on the basis of
      a
      360-day year consisting of twelve 30-day months, over (b) the amount of the
      payments received by the related Servicer or the Master Servicer in the related
      Collection Period allocable to interest in respect of such Simple Interest
      Mortgage Loans, calculated in accordance with the Simple Interest Method, net
      of
      the related Servicing Fees.

     

    Net
      Swap Payment:
      With
      respect to each Swap Payment Date, the sum of (i) net payment required to be
      made pursuant to the terms of the Swap Agreement, which net payment shall not
      take into account any Swap Termination Payment, and (ii) any unpaid amounts
      due
      on previous Swap Payment Dates and accrued interest thereon as provided in
      the
      Swap Agreement, as calculated by the Swap Counterparty and furnished to the
      Trustee.

     

    Net
      WAC Rate:
      With
      respect to any Distribution Date (and the related Accrual Period), a per annum
      rate equal to the weighted average of the Net Mortgage Rates of the Mortgage
      Loans as of the first day of the related Collection Period (not including for
      this purpose Mortgage Loans for which prepayments in full have been received
      and
      distributed in the month prior to that Distribution Date).

     

    NIM
      Redemption Amount:
      As
      defined in Section 7.01(b).

     

    NIM
      Securities:
      Any net
      interest margin securities issued by a trust or other special purpose entity,
      the principal assets of such trust including the Class P and Class X
      Certificates and the payments received thereon, which principal assets back
      such
      securities.

     

    NIMS
      Agreement:
      Any
      agreement pursuant to which the NIM Securities are issued.

     

    
      
        
        

      

      
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    NIMS
      Insurer:
      One or
      more insurers issuing financial guaranty insurance policies in connection with
      the issuance of NIM Securities.

     

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

     

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

     

    Non-permitted
      Foreign Holder:
      As
      defined in Section 3.03(f).

     

    Non-U.S.
      Person:
      Any
      person other than a “United States person” within the meaning of Section
      7701(a)(30) of the Code.

     

    Notional
      Amount:
      Not
      applicable. 

     

    Notional
      Certificate:
      Not
      applicable.

     

    Offered
      Certificates:
      The
      Class A1, Class A2, Class A3, Class A4, Class M1, Class M2, Class M3, Class
      M4,
      Class M5, Class M6, Class M7, Class M8 and Class M9 Certificates.

     

    Offering
      Document:
      Each of
      the Prospectus and the Private Placement Memorandum.

     

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

     

    Opinion
      of Counsel:
      A
      written opinion of counsel, reasonably acceptable in form and substance to
      the
      Trustee, and which may be in-house or outside counsel to the Depositor, the
      Master Servicer or the Trustee but which must be Independent outside counsel
      with respect to any such opinion of counsel concerning the transfer of any
      Residual Certificate or concerning certain matters with respect to the Employee
      Retirement Income Security Act of 1974, as amended (“ERISA”), or the taxation,
      or the federal income tax status, of each REMIC.

     

    Option
      One:
      Option
      One Mortgage Corporation.

     

    Original
      Mortgage Loan:
      As
      described in the Preliminary Statement. 

     

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

     

    Overcollateralization
      Amount:
      With
      respect to any Distribution Date, the amount, if any, by which (x) the Aggregate
      Pool Balance for such Distribution Date exceeds (y) the aggregate Class
      Principal Amount of the LIBOR Certificates after giving effect to distributions
      on such Distribution Date.

     

    Overcollateralization
      Deficiency:
      With
      respect to any Distribution Date, the amount, if any, by which (x) the Targeted
      Overcollateralization Amount for such Distribution Date exceeds (y) the
      Overcollateralization Amount for such Distribution Date, calculated for this
      purpose after giving effect to the reduction on such Distribution Date of the
      Certificate Principal Amounts of the LIBOR Certificates resulting from the
      distribution of the Principal Distribution Amount on such Distribution Date,
      but
      prior to allocation of any Applied Loss Amount on such Distribution
      Date.

     

    
      
        
        

      

      
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    Overcollateralization
      Floor: An
      amount
      equal to $4,307,416.21 or approximately 0.50% of the Cut-off Date
      Balance. 

     

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

     

    Paying
      Agent:
      Any
      paying agent appointed pursuant to Section 3.08.

     

    PCAOB:
      The
      Public Company Accounting Oversight Board.

     

    Percentage
      Interest:
      With
      respect to any Certificate, its percentage interest in the undivided beneficial
      ownership interest in the Trust Fund evidenced by all Certificates of the same
      Class as such Certificate. With respect to any LIBOR Certificate, the Percentage
      Interest evidenced thereby shall equal the Certificate Principal Amount thereof
      divided by the Class Principal Amount of all Certificates of the same Class.
      With respect to the Class X, Class P, Class R and Class LT-R Certificates,
      the
      Percentage Interest evidenced thereby shall be as specified on the face thereof,
      or otherwise be equal to 100%. 

     

    Permitted
      Servicing Amendment:
      Any
      amendment to any Servicing Agreement pursuant to Section 11.03(a)(iii) hereunder
      in connection with any servicing transfer or transfer of any servicing
      rights.

     

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

     

    Plan:
      An
      employee benefit plan or other retirement arrangement which is subject to
      Section 406 of ERISA and/or Section 4975 of the Code or any entity whose
      underlying assets include such plan’s or arrangement’s assets by reason of their
      investment in the entity.

     

    Plan
      Asset Regulations:
      The
      Department of Labor regulations set forth in 29 C.F.R. 2510.3-101.

     

    PMI
      Insurance Premium:
      With
      respect to each Distribution Date and each Mortgage Loan covered by a Bulk
      PMI
      Policy or other lender-paid Primary Mortgage Insurance Policy, the product
      of
      (a) one-twelfth of the applicable Insurance Fee Rate and (b) the Scheduled
      Principal Balance of such Mortgage Loan as of the first day of the related
      Collection Period.

     

    PMI
      Insurer:
      MGIC
      and PMI Mortgage.

     

    
      
        
        

      

      
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    PMI
      Letter Agreement:
      With
      respect to the Bulk PMI Policy with PMI Mortgage, the Terms Letter for PMI
      Mortgage Insurance Coverage dated as of September 29, 2006, among LBH, PMI
      Mortgage and the Trustee.

     

    PMI
      Mortgage:
      PMI
      Mortgage Insurance Co.

     

    Pool
      1:
      The
      aggregate of the Mortgage Loans identified on the Mortgage Loan Schedule as
      being included in Pool 1.

     

    Pool
      1
      Maximum Interest Rate:
      For the
      Group 1 Senior Certificates, for each Distribution Date on or before the
      Distribution Date on which the aggregate Class Principal Amount of the Group
      2
      Senior Certificates has been reduced to zero, an annual rate equal to (a) the
      product, expressed as a percentage, of (1) the amount, if any, by which the
      weighted average of the excess of the maximum “lifetime” Mortgage Rates, as
      specified in the related Mortgage Notes for the Pool 1 Mortgage Loans exceeds
      the applicable weighted average Aggregate Expense Rate and (2) a fraction,
      the
      numerator of which is 30 and the denominator of which is the actual number
      of
      days in the Accrual Period related to such Distribution Date; plus
      (b) the
      product, expressed as a percentage, of (1) the sum of (x) the amount of any
      Net
      Swap Payment owed by the Swap Counterparty on
      the
      related Swap Payment Date
      allocable to Pool 1 (based on the applicable Pool Percentage) and (y) any
      Interest Rate Cap Amount owed by the Cap Counterparty on the related Interest
      Rate Cap Payment Date allocable to Pool 1 (based on the applicable Pool
      Percentage) divided by the Pool Balance for Pool 1 as of the beginning of the
      related Collection Period and (2) a fraction, the numerator of which is 360
      and
      the denominator of which is the actual number of days in the Accrual Period
      related to such Distribution Date; minus
      (c) the
      product, expressed as a percentage, of (1) a fraction, expressed as a
      percentage, the numerator of which is the amount of any Net Swap Payment owed
      to
      the Swap Counterparty on the related Swap Payment Date allocable to Pool 1
      (based on the applicable Pool Percentage) and the denominator of which is the
      Pool Balance for Pool 1 as of the beginning of the related Collection Period
      and
      (2) a fraction, the numerator of which is 360 and the denominator of which
      is
      the actual number of days in the Accrual Period related to such Distribution
      Date.

     

    Pool
      1
      Net Funds Cap:
      With
      respect to any Distribution Date and the Group 1 Senior Certificates, a per
      annum rate equal to (a) a fraction, expressed as a percentage, the numerator
      of
      which is the product of (1) the excess, if any, of (i) the Pool 1 Optimal
      Interest Remittance Amount for such date over (ii) any Net Swap Payment or
      Swap
      Termination Payment (not due to a Swap Counterparty Trigger Event) owed to
      the
      Swap Counterparty on the related Swap Payment Date allocable to Pool 1 (based
      on
      the applicable Pool Percentage) and (2) 12, and the denominator of which is
      the
      Pool Balance for Pool 1 as of the first day of the related Collection Period
      (excluding for this purpose any Mortgage Loans in Pool 1 for which any Principal
      Prepayments in full have been deposited into the Collection Account and
      distributed therefrom in accordance with Section 5.02 during the month prior
      to
      such Distribution Date), multiplied by (b) a fraction, the numerator of which
      is
      30 and the denominator of which is the actual number of days in the Accrual
      Period related to such Distribution Date.

     

    Pool
      1
      Optimal Interest Remittance Amount:
      With
      respect to each Distribution Date, an amount equal to the product of (a) the
      quotient of (i) the weighted average of the Net Mortgage Rates of the Mortgage
      Loans in Pool 1 as of the first day of the related Collection Period, and (ii)
      12 and (b) the Pool Balance for Pool 1 as of the first day of the related
      Collection Period (excluding for purposes of clauses (a)(i) and (b) any Mortgage
      Loans in Pool 1 for which any Principal Prepayments in full have been deposited
      into the Collection Account and distributed therefrom in accordance with Section
      5.02 during the month prior to such Distribution Date).

     

    
      
        
        

      

      
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    Pool
      2:
      The
      aggregate of the Mortgage Loans identified on the Mortgage Loan Schedule as
      being included in Pool 2.

     

    Pool
      2
      Maximum Interest Rate:
      For the
      Group 2 Senior Certificates, and for each Distribution Date on or before the
      Distribution Date on which the aggregate Class Principal Amounts of the Group
      1
      Senior Certificates have been reduced to zero, an annual rate equal to (a)
      the
      product, expressed as a percentage, of (1) the amount, if any, by which the
      weighted average of the excess of the maximum “lifetime” Mortgage Rates, as
      specified in the related Mortgage Notes for the Pool 2 Mortgage Loans exceeds
      the applicable weighted average Aggregate Expense Rate and (2) a fraction,
      the
      numerator of which is 30 and the denominator of which is the actual number
      of
      days in the Accrual Period related to such Distribution Date; plus
      (b) the
      product, expressed as a percentage, of (1) the sum of (x) the amount of any
      Net
      Swap Payment owed by the Swap Counterparty on the related Swap Payment Date
      allocable to Pool 2 (based on the applicable Pool Percentage) and (y) any
      Interest Rate Cap Amount owed by the Cap Counterparty on the related Interest
      Rate Cap Payment Date allocable to Pool 2 (based on the applicable Pool
      Percentage) divided by the Pool Balance for Pool 2 as of the beginning of the
      related Collection Period and (2) a fraction, the numerator of which is 360
      and
      the denominator of which is the actual number of days in the Accrual Period
      related to such Distribution Date; minus
      (c) the
      product, expressed as a percentage, of (1) a fraction, expressed as a
      percentage, the numerator of which is the amount of any Net Swap Payment owed
      to
      the Swap Counterparty on the related Swap Payment Date allocable to Pool 2
      (based on the applicable Pool Percentage) and the denominator of which is the
      Pool Balance for Pool 2 as of the beginning of the related Collection Period
      and
      (2) a fraction, the numerator of which is 360 and the denominator of which
      is
      the actual number of days in the Accrual Period related to such Distribution
      Date.

     

    Pool
      2
      Net Funds Cap:
      With
      respect to any Distribution Date and the Group 2 Senior Certificates, a per
      annum rate equal to (a) a fraction, expressed as a percentage, the numerator
      of
      which is the product of (1) the excess, if any, of (i) the Pool 2 Optimal
      Interest Remittance Amount for such date over (ii) any Net Swap Payment or
      Swap
      Termination Payment (not due to a Swap Counterparty Trigger Event) owed to
      the
      Swap Counterparty on the related Swap Payment Date allocable to Pool 2 (based
      on
      the applicable Pool Percentage) and (2) 12, and the denominator of which is
      the
      Pool Balance for Pool 2 as of the first day of the related Collection Period
      (excluding for this purpose any Mortgage Loans in Pool 2 for which any Principal
      Prepayments in full have been deposited into the Collection Account and
      distributed therefrom in accordance with Section 5.02 during the month prior
      to
      such Distribution Date), multiplied by (b) a fraction, the numerator of which
      is
      30 and the denominator of which is the actual number of days in the Accrual
      Period related to such Distribution Date.

     

    Pool
      2
      Optimal Interest Remittance Amount:
      With
      respect to each Distribution Date, an amount equal to the product of (a) the
      quotient of (i) the weighted average of the Net Mortgage Rates of the Mortgage
      Loans in Pool 2 as of the first day of the related Collection Period, and (ii)
      12 and (b) the Pool Balance for Pool 2 as of the first day of the related
      Collection Period (excluding for purposes of clauses (a)(i) and (b) any Mortgage
      Loans in Pool 2 for which any Principal Prepayments in full have been deposited
      into the Collection Account and distributed therefrom in accordance with Section
      5.02 during the month prior to such Distribution Date).

     

    
      
        
        

      

      
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    Pool
      Balance:
      With
      respect to each Mortgage Pool, the aggregate of the Scheduled Principal Balances
      of all Mortgage Loans in such Mortgage Pool at the date of
      determination.

     

    Pool
      Percentage:
      With
      respect to each Mortgage Pool and any Distribution Date, the fraction, expressed
      as a percentage, the numerator of which is the Pool Balance for such Mortgage
      Pool for such date and the denominator of which is the Aggregate Pool Balance
      for such date.

     

    Pool
      Subordinate Amount:
      As to
      each Mortgage Pool and any Distribution Date, the excess of the Pool Balance
      for
      such Mortgage Pool as of the first day of the immediately preceding Collection
      Period over (i) the Class Principal Amount of the Group 1 Senior Certificates
      (in the case of Pool 1) or (ii) the aggregate Class Principal Amounts of the
      Group 2 Senior Certificates (in the case of Pool 2) immediately prior to the
      related Distribution Date.

     

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

     

    Prepayment
      Period:
      (a)
      With respect to any Distribution Date and any Principal Prepayment in part
      in
      respect of any Mortgage Loan serviced by a Servicer and any Principal Prepayment
      in full in respect of any Mortgage Loan serviced by Option One, the calendar
      month immediately preceding the month in which such Distribution Date occurs;
      (b) with respect to any Distribution Date and any Principal Prepayment in full
      in respect of any Mortgage Loan serviced by Wells Fargo, the period from the
      fourteenth (14th)
      day of
      the preceding calendar month through the thirteenth (13th)
      day of
      the calendar month in which the Distribution Date occurs; and (c) with respect
      to any Distribution Date and any Principal Prepayment in full in respect of
      any
      Mortgage Loan serviced by Aurora, the period from the seventeenth
      (17th)
      day of
      the preceding calendar month through the sixteenth (16th)
      day of
      the calendar month in which the Distribution Date occurs; provided,
      however
      in the
      case of any servicing transfer from Option One to Wells Fargo or Aurora, the
      related Prepayment Period will be the period (a) from the first day of the
      calendar month before the month of such servicing transfer through the
      thirteenth (13th)
      day (in
      the case of Wells Fargo) or sixteenth (16th)
      day (in
      the case of Aurora) of the calendar month in which the Mortgage Loans are
      transferred and in which such Distribution Date occurs. 

     

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

     

    Primary
      Mortgage Insurance Policy:
      Any
      mortgage guaranty insurance, if any, on an individual Mortgage Loan, including
      any Bulk PMI Policy or any LPMI Policy, as evidenced by a policy or certificate,
      whether such policy is obtained by the originator, the lender, the borrower
      or
      the Seller on behalf of the Trust Fund.

     

    
      
        
        

      

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

     

    Principal
      Distribution Amount:
      With
      respect to each Mortgage Pool and any Distribution Date, an amount equal to
      the
      Principal Remittance Amount for such Mortgage Pool for such date minus
      the
      Aggregate Overcollateralization Release Amount, if any, allocable to such
      Mortgage Pool, for such Distribution Date (based on the applicable Pool
      Percentage).

     

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

     

    Principal
      Remittance Amount:
      With
      respect to each Mortgage Pool and any Distribution Date, (a) the sum of (i)
      all
      principal collected (other than Payaheads) or advanced in respect of Scheduled
      Payments on the Mortgage Loans in such Mortgage Pool during the related
      Collection Period whether by the applicable Servicers, the Master Servicer
      or
      the Trustee (less unreimbursed Advances due to the Master Servicer, any Servicer
      or the Trustee with respect to the related Mortgage Loans, to the extent
      allocable to principal), (ii) all Principal Prepayments in full or in part
      received during the related Prepayment Period on the Mortgage Loans in such
      Mortgage Pool, (iii) the outstanding principal balance of each Mortgage Loan
      (excluding any FPD Premium) in such Mortgage Pool that was purchased from the
      Trust Fund by the Seller during the related Prepayment Period or the NIMS
      Insurer (in the case of certain Mortgage Loans 90 days or more delinquent)
      from
      such Mortgage Pool, (iv) the portion of any Substitution Amount paid with
      respect to any Deleted Mortgage Loan in such Mortgage Pool during the related
      Prepayment Period allocable to principal and (v) all Net Liquidation Proceeds,
      Insurance Proceeds, any Subsequent Recovery and other recoveries collected
      with
      respect to the Mortgage Loans in such Mortgage Pool during the related
      Prepayment Period, to the extent allocable to principal, as reduced by (b)
      to
      the extent not reimbursed from amounts otherwise allocable to interest, the
      related Pool Percentage for such date of any other costs, expenses or
      liabilities reimbursable to the Trustee, the Master Servicer, the Custodian
      and
      each Servicer to the extent provided in this Agreement, each Servicing Agreement
      and the Custodial Agreement and, with respect to the Trustee, to the extent
      the
      Interest Remittance Amount is less than amounts reimbursable to the Trustee
      pursuant to Section 4.04(b)(i), the product of (x) the applicable Pool
      Percentage for such Distribution Date and (y) any amounts reimbursable during
      the related Anniversary Year to the Trustee therefrom and not reimbursed from
      the Interest Remittance Amount, or otherwise; provided,
      however,
      that
      such reimbursable amounts from the Interest Remittance Amount and Principal
      Remittance Amount may not exceed $200,000 in the aggregate during any
      Anniversary Year. In the event that the Trustee incurs reimbursable amounts
      in
      excess of $200,000, it may seek reimbursement for such amounts in subsequent
      Anniversary Years, but in no event shall more than $200,000 be reimbursed to
      the
      Trustee per Anniversary Year. Notwithstanding the foregoing, costs and expenses
      incurred by the Trustee pursuant to Section 6.14(a) in connection with any
      transfer of servicing shall be excluded from the $200,000 per Anniversary Year
      limit on reimbursable amounts. For the avoidance of doubt, (i) the Principal
      Remittance Amount available on each Swap Payment Date for distributions to
      the
      Swap Account shall be equal to the Principal Remittance Amount on the related
      Distribution Date and (ii) the Principal Remittance Amount for each Distribution
      Date shall be calculated without regard to any distributions to the Swap Account
      on the related Swap Payment Date.

     

    
      
        
        

      

      
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    Private
      Placement Memorandum:
      The
      private placement memorandum dated September 27, 2006, relating to the Class
      B
      Certificates.

     

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

     

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

     

    Prospectus:
      The
      prospectus supplement dated September 27, 2006, together with the accompanying
      prospectus dated September 13, 2006, relating to the Offered
      Certificates.

     

    Purchase
      Price:
      With
      respect to the purchase of a Mortgage Loan or related REO Property pursuant
      to
      this Agreement, an amount equal to the sum of (a) 100% of the unpaid principal
      balance of such Mortgage Loan; (b) accrued interest thereon at the applicable
      Mortgage Rate, from the date as to which interest was last paid to (but not
      including) the Due Date in the Collection Period immediately preceding the
      related Distribution Date; (c) the amount of any costs and damages incurred
      by
      the Trust Fund as a result of any violation of any applicable federal, state
      or
      local predatory- or abusive-lending law arising from or in connection with
      the
      origination of such Mortgage Loan; and (d) any unreimbursed Servicing Advances
      with respect to such Mortgage Loan. The Master Servicer, each Servicer, the
      Custodian (or the Trustee, if applicable) shall be reimbursed from the Purchase
      Price for any Mortgage Loan or related REO Property for any Advances made or
      other amounts advanced with respect to such Mortgage Loan that are reimbursable
      to the Master Servicer or such Servicer under this Agreement or the related
      Servicing Agreement (or to the Trustee, if applicable), together with any
      accrued and unpaid compensation due to the Master Servicer, any Servicer, the
      Custodian or the Trustee hereunder or thereunder.

     

    QIB:
      As
      defined in Section 3.03(c).

     

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

     

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

     

    
      
        
        

      

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

     

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

     

    (iv)
        provide
      that the Trustee’s interest therein shall be transferable to any successor
      trustee hereunder; and

     

    (v)
        provide
      that the funds reinvested thereunder and accrued interest thereon be returnable
      to the Collection Account or the Certificate Account, as the case may be, not
      later than the Business Day prior to any Distribution Date.

     

    Qualified
      Insurer:
      An
      insurance company duly qualified as such under the laws of the states in which
      the related Mortgaged Properties are located, duly authorized and licensed
      in
      such states to transact the applicable insurance business and to write the
      insurance provided and whose claims paying ability is rated by each Rating
      Agency in its highest rating category or whose selection as an insurer will
      not
      adversely affect the ratings of the Certificates.

     

    Qualifying
      Substitute Mortgage Loan:
      In the
      case of a Mortgage Loan substituted for a Deleted Mortgage Loan pursuant to
      the
      terms of this Agreement, a Mortgage Loan that, on the date of such substitution,
      (i) has an outstanding Scheduled Principal Balance (or in the case of a
      substitution of more than one mortgage loan for a Deleted Mortgage Loan, an
      aggregate Scheduled Principal Balance), after application of all Scheduled
      Payments due during or prior to the month of substitution, not in excess of,
      and
      not more than 5% less than, the outstanding Scheduled Principal Balance of
      the
      Deleted Mortgage Loan as of the Due Date in the calendar month during which
      the
      substitution occurs, (ii) has a Mortgage Rate not less than the Mortgage Rate
      on
      the Deleted Mortgage Loan, (iii) if applicable, has a maximum Mortgage Rate
      not
      less than the maximum Mortgage Rate on the Deleted Mortgage Loan, (iv) if
      applicable, has a minimum Mortgage Rate not less than the minimum Mortgage
      Rate
      of the Deleted Mortgage Loan, (v) if applicable, has a gross margin equal to
      or
      greater than the gross margin of the Deleted Mortgage Loan, (vi) is not a
      Cooperative Loan unless the related Deleted Mortgage Loan was a Cooperative
      Loan, (vii) if applicable, has a next adjustment date not later than the next
      adjustment date on the Deleted Mortgage Loan, (viii) has the same Due Date
      as
      the Deleted Mortgage Loan, (ix) has a remaining stated term to maturity not
      longer than 18 months and not more than 18 months shorter than the remaining
      stated term to maturity of the related Deleted Mortgage Loan; provided,
      that
      in
      no case should such substitute Mortgage Loan have a maturity date later than
      the
      Final Scheduled Distribution Date; (x) is current as of the date of
      substitution, (xi) has a Loan-to-Value Ratio as of the date of substitution
      equal to or lower than the Loan-to-Value Ratio of the Deleted Mortgage Loan
      as
      of such date, (xii) has been underwritten by the Transferor in accordance with
      the same underwriting criteria and guidelines as the Deleted Mortgage Loan,
      (xiii) has a risk grading determined by the Seller at least equal to the risk
      grading assigned on the Deleted Mortgage Loan, (xiv) is secured by the same
      property type as the Deleted Mortgage Loan, (xv) conforms to each representation
      and warranty applicable to the Deleted Mortgage Loan made in the related
      Mortgage Loan Sale Agreement, (xvi) has the same or higher lien position as
      the
      Deleted Mortgage Loan, (xvii) is covered by a Primary Mortgage Insurance Policy
      if the Deleted Mortgage Loan was so covered), (xviii) contains provisions
      covering the payment of Prepayment Premium by the Mortgagor for early prepayment
      of the Mortgage Loan at least as favorable as the Deleted Mortgage Loan and
      (xix) for any Mortgage Loan to be substituted into Pool 1, has an original
      Scheduled Principal Balance within the maximum dollar amount limitations
      prescribed by Fannie Mae for conforming one-to-four family first and second
      lien
      residential mortgaged properties. In the event that one or more mortgage loans
      are substituted for one or more Deleted Mortgage Loans, the amounts described
      in
      clause (i) hereof shall be determined on the basis of aggregate Scheduled
      Principal Balances, the Mortgage Rates described in clause (ii) hereof shall
      be
      determined on the basis of weighted average Mortgage Rates, the risk gradings
      described in clause (xiii) hereof shall be satisfied as to each such mortgage
      loan, the terms described in clause (ix) hereof shall be determined on the
      basis
      of weighted average remaining term to maturity; provided,
      that
      the
      stated maturity date of any Qualifying Substitute Mortgage Loan shall not be
      later than the Final Scheduled Distribution Date, the Loan-to-Value Ratios
      described in clause (xi) hereof shall be satisfied as to each such mortgage
      loan
      and, except to the extent otherwise provided in this sentence, the
      representations and warranties described in clause (xv) hereof must be satisfied
      as to each Qualifying Substitute Mortgage Loan or in the aggregate, as the
      case
      may be.

     

    
      
        
        

      

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

     

    Realized
      Loss:
      With
      respect to each Liquidated Mortgage Loan, an amount equal to (i) the unpaid
      principal balance of such Mortgage Loan as of the date of liquidation,
minus
      (ii)
      Liquidation Proceeds received, to the extent allocable to principal, net of
      amounts that are reimbursable therefrom to the Master Servicer or any Servicer
      with respect to such Mortgage Loan (other than Advances of principal) including
      expenses of liquidation. In determining whether a Realized Loss is a Realized
      Loss of principal, Liquidation Proceeds shall be allocated, first, to payment
      of
      expenses related to such Liquidated Mortgage Loan, then to accrued unpaid
      interest and finally to reduce the principal balance of the Mortgage
      Loan.

     

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

     

    Record
      Date:
      With
      respect to any Class of Book-Entry Certificates and any Distribution Date,
      the
      close of business on the Business Day immediately preceding such Distribution
      Date. With respect to any Class of Definitive Certificates and any Distribution
      Date, the last Business Day of the month immediately preceding the month in
      which the Distribution Date occurs (or, in the case of the first Distribution
      Date, the Closing Date).

     

    Regulation
      AB:
      Subpart
      229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to
      such clarification and interpretation as have been provided by the Commission
      in
      the adopting release (Asset-Backed Securities, Securities Act Release No.
      33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
      Commission, or as may be provided by the Commission or its staff from time
      to
      time.

     

    
      
        
        

      

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

     

    Regulation
      S Global Security:
      The
      meaning specified in Section 3.01(d).

     

    Related
      Senior Principal Distribution Amount:
      For
      each Mortgage Pool and any Distribution Date on or after the Stepdown Date
      and
      for as long as a Trigger Event is not in effect, an amount equal to the lesser
      of (x) the Class Principal Amount of the Group 1 Senior Certificates (with
      respect to Pool 1) or the sum of the Class Principal Amounts of the Group 2
      Senior Certificates (with respect to Pool 2) immediately prior to such date
      and
      (y) the product of (a) the Senior Principal Distribution Amount and (b) the
      related Senior Proportionate Percentage, in each case for such
      date.

     

    Related
      Senior Priority:
      With
      respect to each of Group 1 Senior Certificates and the Group 2 Senior
      Certificates, the priority of distribution on the Senior Certificates relating
      to such Groups as described in 5.02(e)(i)(A)(3) and 5.02(e)(i)(B)(3),
      respectively.

     

    Relevant
      Servicing Criteria:
      The
      Servicing Criteria applicable to each party, as set forth on Exhibit S attached
      hereto. Multiple parties can have responsibility for the same Relevant Servicing
      Criteria. With respect to a Servicing Function Participant engaged by the Master
      Servicer, the Paying Agent, the Trustee, the Credit Risk Manager, the Custodian
      or each Servicer, the term “Relevant Servicing Criteria” may refer to a portion
      of the Relevant Servicing Criteria applicable to such parties.

     

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

     

    REMIC:
      Each
      pool of assets in the Trust Fund designated as a REMIC pursuant to the
      Preliminary Statement.

     

    REMIC
      1:
      As
      described in the Preliminary Statement.

     

    REMIC
      2:
      As
      described in the Preliminary Statement.

     

    REMIC
      3:
      As
      described in the Preliminary Statement.

     

    REMIC
      3 Net Funds Cap:
      For any
      Distribution Date (and the related Accrual Period) and any Class of
      Certificates, an amount equal to (i) the weighted average of the interest rates
      on the Lower Tier Interests in REMIC 3 (other than an interest-only regular
      interest), weighted in proportion to their Class Principal Amounts as of the
      beginning of the related Accrual Period, multiplied by (ii) an amount equal
      to
      (a) 30, divided by (b) the actual number of days in the Accrual
      Period.

     

    
      
        
        

      

      
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    REMIC
      4:
      As
      described in the Preliminary Statement.

     

    REMIC
      Provisions:
      The
      provisions of the federal income tax law relating to real estate mortgage
      investment conduits, which appear at sections 860A through 860G of Subchapter
      M
      of Chapter 1 of the Code, and related provisions, and regulations, including
      proposed regulations and rulings, and administrative pronouncements promulgated
      thereunder, as the foregoing may be in effect from time to time.

     

    REMIC
      Swap Rate:
      For
      each Distribution Date (and the related Accrual Period), a per annum rate equal
      to the product of: (i) the “Rate of Payment (%)” under the Swap Agreement for
      such Distribution Date, as set forth in Annex C-1 to the Prospectus Supplement,
      (ii) 2, and (iii) the quotient of (a) the actual number of days in the related
      Accrual Period divided by (b) 30.

     

    REO
      Property:
      A
      Mortgaged Property acquired by the Trust Fund through foreclosure or
      deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan or
      otherwise treated as having been acquired pursuant to the REMIC
      Provisions.

     

    Reportable
      Event:
      As
      defined in Section 6.20(f)(i).

     

    Reporting
      Servicer:
      As
      defined in Section 6.20(e)(i).

     

    Required
      Reserve Fund Deposit:
      With
      respect to any Distribution Date on which the Net Excess Spread is less than
      0.25%, the amount, if any by which (a) the product of 1.00% and the Aggregate
      Pool Balance for such date exceeds (b) the amount on deposit in the Basis Risk
      Reserve Fund immediately prior to such date. With respect to any Distribution
      Date on which the Net Excess Spread is equal to or greater than 0.25%, the
      amount, if any, by which (i) $1,000 exceeds the amount on deposit in the Basis
      Risk Reserve Fund immediately prior to such date; provided,
      however,
      that on
      any Distribution Date on which the Class Principal Amount of each Class of
      Offered Certificates and the Class B Certificates has been reduced to zero,
      the
      Required Reserve Fund Deposit shall be zero.

     

    Residual
      Certificate:
      Any
      Class R or Class LT-R Certificate.

     

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

     

    Restricted
      Certificate:
      Any
      Class B, Class P, Class X, Class R or Class LT-R Certificate.

     

    Restricted
      Global Security:
      As
      defined in Section 3.01(c).

     

    
      
        
        

      

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

     

    Rules:
      As
      defined in Section 6.20(c).

     

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

     

    Sarbanes-Oxley
      Act:
      The
      Sarbanes-Oxley Act of 2002 and the rules and regulations of the Commission
      promulgated thereunder (including any interpretations thereof by the
      Commission’s staff).

     

    Sarbanes-Oxley
      Certification:
      A
      written certification covering the activities of all Servicing Function
      Participants and signed by an officer of the Exchange Act Signing Party that
      complies with Section 302 of the Sarbanes-Oxley Act, as amended from time to
      time.

     

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

     

    Scheduled
      Principal Balance:
      With
      respect to (i) any Mortgage Loan (other than a Simple Interest Mortgage Loan)
      as
      of any Distribution Date, the principal balance of such Mortgage Loan at the
      close of business on the Cut-off Date after giving effect to principal payments
      due on or before the Cut-off Date, whether or not received, less an amount
      equal
      to principal payments due after the Cut-off Date, and on or before the Due
      Date
      in the related Collection Period, whether or not received from the Mortgagor
      or
      advanced by any Servicer or the Master Servicer, and all amounts allocable
      to
      unscheduled principal payments (including Principal Prepayments, Liquidation
      Proceeds, Insurance Proceeds and condemnation proceeds, in each case to the
      extent identified and applied prior to or during the related Prepayment Period)
      and (ii) any REO Property as of any Distribution Date, the Scheduled Principal
      Balance of the related Mortgage Loan on the Due Date immediately preceding
      the
      date of acquisition of such REO Property by or on behalf of the Trustee (reduced
      by any amount applied as a reduction of principal on the Mortgage Loan). With
      respect to any Mortgage Loan as of the Cut-off Date, the principal balance
      of
      such Mortgage Loan as specified in the Mortgage Loan Schedule. The Scheduled
      Principal Balance of any Liquidated Mortgage Loan shall be zero. In the case
      of
      a Simple Interest Mortgage Loan, references herein to such Mortgage Loan’s
      Scheduled Principal Balance shall mean its actual unpaid principal balance.
      The
      actual unpaid principal balance of a Simple Interest Mortgage Loan with respect
      to any Distribution Date shall be determined by subtracting from such Mortgage
      Loan’s unpaid principal balance as of the end of the preceding Collection Period
      the amount of the borrower’s fixed monthly payment for the related Collection
      Period that is not allocated to the payment of interest applying the Simple
      Interest Method.

     

    
      
        
        

      

      
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    Section
      7.01(c) Purchase Event:
      The
      purchase of all the Lower Tier REMIC 1 Uncertificated Regular
      Interests.

     

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

     

    Security
      Agreement:
      With
      respect to any Cooperative Loan, the agreement between the owner of the related
      Cooperative Shares and the originator of the related Mortgage Note that defines
      the terms of the security interest in such Cooperative Shares and the related
      Proprietary Lease.

     

    Seller:
      Lehman
      Brothers Holdings Inc., or any successor in interest.

     

    Seller
      Remittance Amount:
      With
      respect to each Servicer, the meaning assigned to such term in the related
      Servicing Agreement.

     

    Senior
      Certificate:
      Any
      Class A1, Class A2, Class A3 or Class A4 Certificate. 

     

    Senior
      Enhancement Percentage:
      With
      respect to any Distribution Date, the fraction, expressed as a percentage,
      the
      numerator of which is the sum of the aggregate Class Principal Amount of the
      Subordinate Certificates and the Overcollateralization Amount (which amount,
      for
      purposes of this definition only, shall not be less than zero and assuming
      for
      purposes of this definition that the Principal Distribution Amount has been
      distributed on such Distribution Date and no Trigger Event has occurred) and
      the
      denominator of which is the Aggregate Pool Balance for such Distribution Date,
      in each case after giving effect to distributions on such Distribution
      Date.

     

    Senior
      Principal Distribution Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      lesser of (x) the aggregate Principal Distribution Amount for both Mortgage
      Pools and (y) the amount, if any by which (A) the aggregate Class Principal
      Amount of the Senior Certificates immediately prior to such Distribution Date
      exceeds (B) the Senior Target Amount.

     

    Senior
      Proportionate Percentage:
      With
      respect to Pool 1 and any Distribution Date, the fraction, expressed as a
      percentage, the numerator of which is the Principal Remittance Amount for Pool
      1
      for such Distribution Date and the denominator of which is the aggregate of
      the
      Principal Remittance Amounts for Pool 1 and Pool 2 for such Distribution Date.
      With respect to Pool 2 and any Distribution Date, the fraction, expressed as
      a
      percentage, the numerator of which is the Principal Remittance Amount for Pool
      2
      for such Distribution Date and the denominator of which is the aggregate of
      the
      Principal Remittance Amounts for Pool 1 and Pool 2 for such Distribution Date.
      

     

    Senior
      Target Amount:
      With
      respect to any Distribution Date, an amount equal to the lesser of (a) the
      product of (i) 60.70% and (ii) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the related Collection Period and (b)
      the
      amount, if any, by which (i) the Aggregate Pool Balance for such Distribution
      Date determined as of the last day of the Collection Period exceeds (ii) the
      Overcollateralization Floor.

     

    
      
        
        

      

      
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    Servicer
      Remittance Date:
      The day
      in each calendar month on which each Servicer is required to remit payments
      to
      the Collection Account, as specified in the related Servicing Agreement, which
      is the 18th
      day of
      each calendar month (or, if such 18th
      day is
      not a Business Day, the next succeeding Business Day).

     

    Servicers:
      As of
      the Closing Date, Option One, or its successor in interest. As of the applicable
      Servicing Transfer Date, Aurora or Wells Fargo Bank, N.A, as
      applicable.

     

    Service(s)(ing):
      In
      accordance with Regulation AB, the act of managing or collecting payments on
      the
      Mortgage Loans or any other assets of the Trust Fund by an entity that meets
      the
      definition of “servicer’ set forth in Item 1101 of Regulation AB. For
      clarification purposes, any uncapitalized occurrence of this term shall have
      the
      meaning commonly understood by participants in the residential mortgage-backed
      securitization market.

     

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

     

    Servicing
      Agreement:
      Each
      servicing agreement, subservicing agreement or reconstituted servicing agreement
      identified on Exhibit E hereto, among the Seller, the Master Servicer and one
      of
      the above-named Servicers, and any other servicing agreement entered into
      between a successor servicer and the Seller pursuant to the terms of this
      Agreement. 

     

    Servicing
      Criteria:
      The
      criteria set forth in paragraph (d) of Item 1122 of Regulation AB, as such
      may
      be amended from time to time.

     

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

     

    Servicing
      Fee Rate:
      With
      respect to each Mortgage Loan, the rate specified in the related Servicing
      Agreement.

     

    Servicing
      Function Participant:
      Any
      Subservicer, Subcontractor or any other Person, other than each Servicer, the
      Custodian, the Master Servicer and the Paying Agent, that is participating
      in
      the servicing function within the meaning of Regulation AB, unless such Person’s
      activities relate only to 5% or less of the Mortgage Loans.

     

    Servicing
      Officer:
      Any
      officer of the related Servicer involved in or responsible for, the
      administration and servicing of the Mortgage Loans whose name appears on a
      list
      of servicing officers furnished by the related Servicer to the Master Servicer
      or Seller upon request, as such list may from time to time be
      amended.

     

    
      
        
        

      

      
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    Servicing
      Transfer Date:
      The
      date or dates on which any transfer of servicing from Option One to Aurora
      or
      Wells Fargo Bank, N.A. is effective.

     

    Simple
      Interest Method:
      With
      respect to a Simple Interest Mortgage Loan, the method of allocating a payment
      to principal and interest, pursuant to which the portion of such payment that
      is
      allocated to interest is equal to the product of the applicable rate of interest
      multiplied by the unpaid principal balance multiplied by the period of time
      elapsed since the preceding payment of interest was made and divided by either
      360 or 365, as specified in the related Mortgage Note and the remainder of
      such
      payment is allocated to principal.

     

    Simple
      Interest Mortgage Loan:
      Any
      Mortgage Loan specified as a “DSI Loan” in the Mortgage Loan Schedule attached
      hereto as Schedule A. As of the Closing Date, there are no Simple Interest
      Mortgage Loans included in the Trust Fund.

     

    Sponsor:
      Lehman
      Brothers Holdings Inc., or any successor in interest.

     

    Startup
      Day:
      The day
      designated as such pursuant to Section 10.01(b) hereof.

     

    Stepdown
      Date:
      The
      earlier of (i) the first Distribution Date following the Distribution Date
      on
      which the Class Principal Amounts of the Senior Certificates have each been
      reduced to zero or (ii) the later to occur of (x) the Distribution Date in
      October 2009 and (y) the first Distribution Date on which the Senior Enhancement
      Percentage (calculated for this purpose after giving effect to payments or
      other
      recoveries in respect of the Mortgage Loans during the related Collection Period
      but before giving effect to distributions on the Certificates on such
      Distribution Date) is greater than or equal to 39.30%.

     

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

     

    Subordinate
      Certificate:
      Any
      Class M Certificate or Class B Certificate.

     

    Subordinate
      Maximum Interest Rate:
      For (i)
      the Subordinate Certificates; (ii) the Group 1 Senior Certificates, with respect
      to each Distribution Date after the Distribution Date on which the aggregate
      Class Principal Amount of the Group 2 Senior Certificates has been reduced
      to
      zero; and (iii) the Group 2 Senior Certificates, with respect to each
      Distribution Date after the Distribution Date on which the Class Principal
      Amount of the Group 1 Senior Certificates has been reduced to zero; the weighted
      average of the Pool 1 Maximum Interest Rate and the Pool 2 Maximum Interest
      Rate
      for such Distribution Date, weighted on the basis of (i) in the case of any
      Distribution Date on or before the date on which the aggregate Class Principal
      Amount of the Senior Certificates relating to any Mortgage Pool has been reduced
      to zero, the Pool Subordinate Amount and (ii) for any Distribution Date
      thereafter, such weighting shall be on the basis of the Pool Balance of each
      Mortgage Pool.

     

    
      
        
        

      

      
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    Subordinate
      Net Funds Cap:
      With
      respect to any Distribution Date, an amount equal to the weighted average of
      the
      Pool 1 Net Funds Cap and the Pool 2 Net Funds Cap, weighted on the basis of
      the
      Pool Subordinate Amount for each Mortgage Pool; provided,
      however,
      that on
      any Distribution Date after which the aggregate Class Principal Amount of the
      Senior Certificates relating to any Mortgage Pools has been reduced to zero,
      such weighting shall be on the basis of the Pool Balance of each Mortgage
      Pool.

     

    Subordinate
      Priority:
      To the
      Class M1, Class M2, Class M3, Class M4, Class M5, Class M6, Class M7, Class
      M8,
      Class M9 and Class B Certificates, sequentially, in that order.

     

    Subsequent
      Recovery:
      Any
      amount recovered by a Servicer or the Master Servicer with respect to a
      Liquidated Mortgage Loan with respect to which a Realized Loss was incurred
      after the liquidation or disposition of such Mortgage Loan.

     

    Subservicer:
      Any
      Person that (i) is considered to be a Servicing Function Participant, (ii)
      services Mortgage Loans on behalf of any Servicer or Additional Servicer, and
      (iii) is responsible for the performance (whether directly or through
      subservicers or Subcontractors) of Servicing functions required to be performed
      under this Agreement, any related Servicing Agreement or any subservicing
      agreement that are identified in Item 1122(d) of Regulation AB.

     

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

     

    Supplemental
      Interest Trust:
      The
      corpus of a trust created pursuant to Section 5.07 of this Agreement and
      designated as the “Supplemental Interest Trust,” consisting of the Swap
      Agreement, the Swap Account, the Interest Rate Cap Agreement, the Interest
      Rate
      Cap Account, the right to receive the Class X Distributable Amount as provided
      in Section 5.02(f)(vi), the Class LT4-I interest in REMIC 4 and the right to
      receive Class I Shortfalls.

     

    Swap
      Account:
      The
      account created pursuant to Section 5.07(a) of this Agreement.

     

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

     

    Swap
      Amount:
      With
      respect to each Distribution Date and the related Swap Payment Date, the sum
      of
      any Net Swap Payment and any Swap Termination Payment deposited into the Swap
      Account.

     

    
      
        
        

      

      
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    Swap
      Counterparty:
      The
      counterparty to the Supplemental Interest Trust under the Swap Agreement, and
      any successor in interest or assigns. Initially, the Swap Counterparty shall
      be
      HSBC Bank USA, National Association.

     

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

     

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

     

    Swap
      LIBOR:
      With
      respect to any Distribution Date and the related Swap Payment Date (and the
      Accrual Period relating to such Distribution Date), the product of (i) the
      Floating Rate Option (as defined in the Swap Agreement) for the related Swap
      Payment Date, (ii) two, and (iii) the quotient of (a) the actual number of
      days
      in the Accrual Period for the LIBOR Certificates and (b) 30, as calculated
      by
      the Swap Counterparty and furnished to the Trustee.

     

    Swap
      Payment Date:
      For so
      long as the Swap Agreement is in effect or any amounts remain unpaid thereunder,
      the Business Day immediately preceding each Distribution Date.

     

    Swap
      Replacement Receipts:
      As
      defined in Section 5.09(a).

     

    Swap
      Replacement Receipts Account:
      As
      defined in Section 5.09(a).

     

    Swap
      Termination Payment:
      Upon
      the designation of an “Early Termination Date” as defined in the Swap Agreement,
      the payment required to be made by the Supplemental Interest Trust to the Swap
      Counterparty, or by the Swap Counterparty to the Supplemental Interest Trust,
      as
      applicable, pursuant to the terms of the Swap Agreement, and any unpaid amounts
      due on previous Swap Payment Dates and accrued interest thereon as provided
      in
      the Swap Agreement, as calculated by the Swap Counterparty and furnished to
      the
      Trustee.

     

    Swap
      Termination Receipts:
      As
      defined in Section 5.09(a).

     

    Swap
      Termination Receipts Account:
      As
      defined in Section 5.09(a).

     

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

     

    Targeted
      Overcollateralization Amount:
      For any
      Distribution Date prior to the Stepdown Date, an amount equal to $15,507,243.80
      (or 1.80% of the Cut-off Date Balance). For any Distribution Date and provided
      a
      Trigger Event is not in effect, an amount equal to the greater of (i) the lesser
      of (a) $15,507,243.80 (or 1.80% of the Cut-off Date Balance) and (b) 3.60%
      of
      the Aggregate Pool Balance after giving effect to distributions on such
      Distribution Date and (ii) the Overcollateralization Floor. With respect to
      any
      Distribution Date on or after the Stepdown Date and provided a Trigger Event
      is
      in effect, an amount equal to the Targeted Overcollateralization Amount for
      the
      immediately preceding Distribution Date.

     

    
      
        
        

      

      
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    Tax
      Matters Person:
      The
“tax matters person” as specified in the REMIC Provisions.

     

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

     

    Termination
      Event:
      As
      defined in the Swap Agreement.

     

    Termination
      Price:
      As
      defined in Section 7.01.

     

    Threshold
      Calculation:
      For
      each PMI Insurer and each Distribution Date, the percentage obtained by dividing
      (a) the aggregate of the maximum amount payable for each Mortgage Loan covered
      under the related Bulk PMI Policy as of the last day of the related Collection
      Period by (b) the aggregate Class Principal Amount of the Certificates as of
      the
      last day of the related Collection Period.

     

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

     

    Total
      Distribution Amount:
      With
      respect to any Distribution Date, the sum of (i) the aggregate of the Interest
      Remittance Amounts for such date; (ii) the aggregate of the Principal Remittance
      Amounts for such date; and (iii) all Prepayment Premiums collected during the
      related Prepayment Period.

     

    Transfer
      Agreement:
      As
      defined in the Mortgage Loan Sale and Assignment Agreement.

     

    Transferor:
      BNC
      Mortgage, Inc.

     

    Trigger
      Event:
      A
      Trigger Event shall have occurred with respect to any Distribution Date if
      either a Delinquency Event or a Cumulative Loss Trigger Event is in effect
      for
      such Distribution Date.

     

    Trust
      Fund:
      The
      corpus of the BNC Mortgage Loan Trust 2006-1 created pursuant to this Agreement,
      consisting of the Mortgage Loans, the assignment of the Depositor’s rights under
      the Transfer Agreement, the Mortgage Loan Sale Agreement and each Servicing
      Agreement, such amounts as shall from time to time be held in the Collection
      Account, Certificate Account, any Custodial Account and any Escrow Account,
      the
      Swap Termination Receipts Account, the Swap Replacement Receipts Account, the
      Cap Termination Receipts Account, the Cap Replacement Receipts Account, the
      Basis Risk Reserve Fund, the Insurance Policies, any REO Property and the other
      items referred to in, and conveyed to the Trustee under, Section
      2.01(a).

     

    Trust
      Fund Termination Event:
      As
      defined in Section 7.01(a).

     

    
      
        
        

      

      
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    Trustee:
      U.S.
      Bank National Association, not in its individual capacity but solely as Trustee,
      or any successor in interest, or if any successor trustee shall be appointed
      as
      herein provided, then such successor in interest or successor trustee, as the
      case may be.

     

    Trustee
      Fee:
      As to
      any Distribution Date, an amount equal to (1) any investment earnings from
      amounts on deposit in the Certificate Account for the two-day period from and
      including two Business Days immediately preceding the related Distribution
      Date
      to and including the related Distribution Date less (2) any Custodial
      Compensation due to the Custodian as described in Section 6.12.

     

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

     

    Underwriter:
      Lehman
      Brothers Inc. 

     

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

     

    Unpaid
      Basis Risk Shortfall:
      With
      respect to any Distribution Date and any LIBOR Certificate, the aggregate of
      all
      Basis Risk Shortfalls with respect to such Certificate remaining unpaid from
      previous Distribution Dates, plus interest accrued thereon at the applicable
      Certificate Interest Rate (calculated without giving effect to the applicable
      Net Funds Cap) but limited to a rate no greater than the applicable Maximum
      Interest Rate.

     

    Upper
      Tier REMIC:
      REMIC
      4.

     

    Voting
      Interests:
      The
      portion of the voting rights of all the Certificates that is allocated to any
      Certificate for purposes of the voting provisions of this Agreement. At all
      times during the term of this Agreement, 97.00% of all Voting Interests shall
      be
      allocated to the LIBOR Certificates. Voting Interests shall be allocated among
      the Classes of LIBOR Certificates based on the product of (i) 97.00% and (ii)
      the fraction, expressed as a percentage, the numerator of which is the aggregate
      Class Principal Amount of all Certificates then outstanding and the denominator
      of which is the Aggregate Pool Balance then outstanding. At all times during
      the
      term of this Agreement, 1% of all Voting Interests shall be allocated to each
      of
      the Class P, Class R and Class X Certificates while they remain outstanding.
      Voting Interests shall be allocated among the other Classes of Certificates
      (and
      among the Certificates within each such Class) in proportion to their Class
      Principal Amounts (or Certificate Principal Amounts) or Percentage Interests.
      In
      the case of the purchase by the Master Servicer of the Lower Tier REMIC 1
      Uncertificated Regular Interests pursuant to a Section 7.01(c) Purchase Event,
      the LTURI-holder shall be allocated 100% of the Voting Interests and upon such
      purchase any provision in this Agreement which requires a vote by, a direction
      or notice given by, an action taken by, a request in writing by or the consent
      of, any percentage of the Holders of the Certificates or any Class of
      Certificates may be exercised by the LTURI-holder.

     

    Wells
      Fargo:
      Wells
      Fargo Bank, N.A.

     

    
      
        
        

      

      
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                  Section
                    1.02

                	
                  Calculations
                    Respecting Mortgage Loans. 

                

        

      

    

     

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

     

    Section
      1.03  Calculations
      Respecting Accrued Interest. 

     

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

     

    ARTICLE
      II  

     

    DECLARATION
      OF TRUST;

    ISSUANCE
      OF CERTIFICATES

    
      
         

        
          	
                  Section
                    2.01 

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

                

        

      

    

     

    (a)  Concurrently
      with the execution and delivery of this Agreement, the Depositor does hereby
      transfer, assign, set over, deposit with and otherwise convey to the Trustee,
      without recourse, subject to Sections 2.02, 2.04, 2.05 and 2.06, in trust,
      all
      the right, title and interest of the Depositor in and to the Mortgage Loans.
      Such conveyance includes, without limitation, the right to all payments of
      principal and interest received on or with respect to the Mortgage Loans on
      and
      after the Cut-off Date (other than payments of principal and interest due on
      or
      before such date), and all such payments due after such date but received prior
      to such date and intended by the related Mortgagors to be applied after such
      date together with all of the Depositor’s right, title and interest in and to
      the Collection Account and all amounts from time to time credited to and the
      proceeds of the Collection Account, the Certificate Account and all amounts
      from
      time to time credited to and the proceeds of the Certificate Account, any
      Custodial Accounts and all amounts from time to time credited to and the
      proceeds of the Custodial Accounts, any Escrow Account established pursuant
      to
      Section 9.06 and any Basis Risk Reserve Fund established pursuant to Section
      5.06 and all amounts from time to time credited to and the proceeds of each
      such
      account, any REO Property and the proceeds thereof, the Depositor’s rights under
      any Insurance Policies related to the Mortgage Loans, the Depositor’s security
      interest in any collateral pledged to secure the Mortgage Loans, including
      the
      Mortgaged Properties and any Additional Collateral, and any proceeds of the
      foregoing, to have and to hold, in trust; and the Trustee declares that, subject
      to the review provided for in Section 2.02, it has received and shall hold
      the
      Trust Fund, as trustee, in trust, for the benefit and use of the Holders of
      the
      Certificates and for the purposes and subject to the terms and conditions set
      forth in this Agreement, and, concurrently with such receipt, has caused to
      be
      executed, authenticated and delivered to or upon the order of the Depositor,
      in
      exchange for the Trust Fund, Certificates in the authorized denominations
      evidencing the entire ownership of the Trust Fund.

     

    
      
        
        

      

      
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    Concurrently
      with the execution of this Agreement, the MGIC Letter Agreement and the PMI
      Letter Agreement shall be delivered to the Trustee on behalf of the Issuing
      Entity. In connection therewith, the Depositor hereby directs the Trustee
      (solely in its capacity as such) and the Trustee is hereby authorized to execute
      and deliver the MGIC Letter Agreement and the PMI Letter Agreement for the
      benefit of the Certificateholders. The Seller, the Master Servicer, the
      Depositor, the Servicers and the Certificateholders (by their acceptance of
      such
      Certificates) acknowledge and agree that the Trustee is executing and delivering
      the MGIC Letter Agreement and the PMI Letter Agreement solely in its capacity
      as
      Trustee of the Trust Fund, and not in its individual capacity.

     

    Concurrently
      with the execution of this Agreement, the Swap Agreement and the Interest Rate
      Cap Agreement shall be delivered to the Trustee. In connection therewith, the
      Depositor hereby directs the Trustee (solely in its capacity as such) and the
      Trustee is hereby authorized to execute and deliver the Swap Agreement and
      the
      Interest Rate Cap Agreement (each on behalf of the Supplemental Interest Trust)
      for the benefit of, the Certificateholders. The Seller, the Master Servicer,
      the
      Depositor, the Servicers and the Certificateholders (by their acceptance of
      such
      Certificates) acknowledge and agree that the Trustee is executing and delivering
      the Swap Agreement and the Interest Rate Cap Agreement solely in its capacity
      as
      Trustee of the Supplemental Interest Trust and the Trust Fund and not in its
      individual capacity. The Trustee shall have no duty or responsibility to enter
      into any other swap agreement or interest rate cap agreement upon the expiration
      or termination of the Swap Agreement or the Interest Rate Cap
      Agreement.

     

    Concurrently
      with the execution and delivery of this Agreement, the Depositor does hereby
      assign to the Trustee all of its rights and interest under the Mortgage Loan
      Sale Agreement, including all rights of the Seller under the Servicing
      Agreement, but only to the extent assigned under the Mortgage Loan Sale
      Agreement. The Trustee hereby accepts such assignment, and shall be entitled
      to
      exercise all the rights of the Depositor under the Mortgage Loan Sale Agreement
      as if, for such purpose, it were the Depositor. 

     

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

     

    The
      foregoing sale, transfer, assignment, set-over, deposit and conveyance does
      not
      and is not intended to result in the creation or assumption by the Trustee
      of
      any obligation of the Depositor, the Seller or any other Person in connection
      with the Mortgage Loans. 

     

    The
      Depositor shall have the right to receive any and all loan-level information
      regarding the characteristics and performance of the Mortgage Loans upon
      request, and to publish, disseminate or otherwise utilize such information
      in
      its discretion, subject to applicable laws and regulations.

     

    
      
        
        

      

      
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    (b)  In
      connection with such transfer and assignment, the Depositor does hereby deliver
      to, and deposit with, or cause to be delivered to and deposited with, the
      Trustee, and/or the Custodian acting on the Trustee’s behalf, the following
      documents or instruments with respect to each Mortgage Loan (each a “Mortgage
      File”) so transferred and assigned:

     

    (i)
        with
      respect to each Mortgage Loan, the original Mortgage Note endorsed without
      recourse in proper form to the order of the Trustee, or in blank (in each case,
      with all necessary intervening endorsements, as applicable) or with respect
      to
      any lost Mortgage Note, a lost note affidavit stating that the original Mortgage
      Note was lost, misplaced or destroyed, together with a copy of the related
      Mortgage Note;

     

    (ii)
        the
      original of any guarantee executed in connection with the Mortgage Note,
      assigned to the Trustee;

     

    (iii)
        with
      respect to any Mortgage Loan other than a Cooperative Loan, the original
      recorded Mortgage with evidence of recording indicated thereon and the original
      recorded power of attorney, with evidence of recording thereon. If, in
      connection with any Mortgage Loan, the Depositor cannot deliver the Mortgage
      or
      power of attorney with evidence of recording thereon on or prior to the Closing
      Date because of a delay caused by the public recording office where such
      Mortgage has been delivered for recordation or because such Mortgage or power
      of
      attorney has been lost, the Depositor shall deliver or cause to be delivered
      to
      the Trustee (or the Custodian), in the case of a delay due to recording, a
      true
      copy of such Mortgage or power of attorney, pending delivery of the original
      thereof, together with an Officer’s Certificate of the Depositor certifying that
      the copy of such Mortgage or power of attorney delivered to the Trustee (or
      the
      Custodian) is a true copy and that the original of such Mortgage or power of
      attorney has been forwarded to the public recording office, or, in the case
      of a
      Mortgage or power of attorney that has been lost, a copy thereof (certified
      as
      provided for under the laws of the appropriate jurisdiction) and a written
      Opinion of Counsel acceptable to the Trustee and the Depositor that an original
      recorded Mortgage or power of attorney is not required to enforce the Trustee’s
      interest in the Mortgage Loan;

     

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

     

    (v)
        with
      respect to each Non-MERS Mortgage Loan other than a Cooperative Loan, an
      original Assignment of Mortgage, in form and substance acceptable for recording.
      The Mortgage shall be assigned either (A) in blank, without recourse or (B)
      to
“U.S. Bank National Association, as Trustee of the BNC Mortgage Loan Trust
      2006-1,” without recourse;

     

    
      
        
        

      

      
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    (vi)
        if
      applicable, such original intervening assignments of the Mortgage, notice of
      transfer or equivalent instrument (each, an “Intervening Assignment”), as may be
      necessary to show a complete chain of assignment from the Transferor, or, in
      the
      case of an Intervening Assignment that has been lost, a written Opinion of
      Counsel acceptable to the Trustee and any NIMS Insurer that such original
      Intervening Assignment is not required to enforce the Trustee’s interest in the
      Mortgage Loan;

     

    (vii)
        with
      respect to any Mortgage Loan other than a Cooperative Loan, the original
      mortgagee title insurance policy (or, in lieu thereof, a commitment to issue
      such title insurance policy with an original or certified copy of such title
      insurance policy to follow as soon after the Closing Date as reasonably
      practicable) or attorney’s opinion of title and abstract of title; 

     

    (viii)
        if
      applicable, the original Primary Mortgage Insurance Policy or certificate or,
      an
      electronic certification evidencing the existence of the Primary Mortgage
      Insurance Policy or certificate, if private mortgage guaranty insurance is
      required;

     

    (ix)
        the
      original of any security agreement, chattel mortgage or equivalent instrument
      executed in connection with the Mortgage or as to any security agreement,
      chattel mortgage or their equivalent instrument that cannot be delivered on
      or
      prior to the Closing Date because of a delay caused by the public recording
      office where such document has been delivered for recordation, a photocopy
      of
      such document, pending delivery of the original thereof, together with an
      Officer’s Certificate of the Depositor certifying that the copy of such security
      agreement, chattel mortgage or their equivalent instrument delivered to the
      Trustee (or the Custodian) is a true copy and that the original of such document
      has been forwarded to the public recording office;

     

    (x)
        with
      respect to any Cooperative Loan, the Cooperative Loan Documents;
      and

     

    (xi)
        with
      respect to any manufactured housing contract, any related manufactured housing
      sales contract, installment loan agreement or participation
      interest.

     

    The
      parties hereto acknowledge and agree that the form of endorsement attached
      hereto as Exhibit B-4 is intended to effect the transfer to the Trustee, for
      the
      benefit of the Certificateholders, of the Mortgage Notes and the
      Mortgages.

     

    (c)  (i)
       Assignments
      of Mortgage with respect to each Non-MERS Mortgage Loan other than a Cooperative
      Loan shall be recorded; provided,
      however,
      that
      such Assignments need not be recorded if, on or prior to the Closing Date,
      the
      Depositor delivers, at its own expense, an Opinion of Counsel addressed to
      the
      Trustee (which must be Independent counsel) acceptable to the Trustee and the
      Rating Agencies, to the effect that recording in such states is not required
      to
      protect the Trustee’s interest in the related Non-MERS Mortgage Loans;
provided,
      further,
      that
      notwithstanding the delivery of any Opinion of Counsel, the Master Servicer
      shall direct the applicable Servicer to submit each Assignment of Mortgage
      for
      recording upon the occurrence of a bankruptcy, insolvency or foreclosure
      relating to the Mortgagor under the related Mortgage. Subject to the preceding
      sentence, as soon as practicable after the Closing Date (but in no event more
      than three months thereafter except to the extent delays are caused by the
      applicable recording office), the Master Servicer, at the expense of the
      Depositor and with the cooperation of the applicable Servicer, shall direct
      to
      be properly recorded by each Servicer in each public recording office where
      the
      related Mortgages are recorded each Assignment of Mortgage referred to in
      subsection (b)(v) above with respect to each Non-MERS Mortgage Loan.

     

    
      
        
        

      

      
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    (ii)
        With
      respect to each MERS Mortgage Loan, the Master Servicer shall direct the
      applicable Servicer, at the expense of the Depositor, to take such actions
      as
      are necessary to cause the Trustee to be clearly identified as the owner of
      each
      such Mortgage Loan on the records of MERS for purposes of the system of
      recording transfers of beneficial ownership of mortgages maintained by MERS.
      With respect to each Cooperative Loan, the Master Servicer, at the expense
      of
      the Depositor and with the cooperation of the applicable Servicer, shall direct
      such Servicer to take such actions as are necessary under applicable law in
      order to perfect the interest of the Trustee in the related Mortgaged
      Property.

     

    (d)  In
      instances where a Title Insurance Policy is required to be delivered to the
      Trustee or the Custodian on behalf of the Trustee under clause (b)(vii) above
      and is not so delivered, the Depositor will provide a copy of such Title
      Insurance Policy to the Trustee, or to the Custodian on behalf of the Trustee,
      as promptly as practicable after the execution and delivery hereof, but in
      any
      case within 180 days of the Closing Date.

     

    (e)  For
      Mortgage Loans (if any) that have been prepaid in full after the Cut-off Date
      and prior to the Closing Date, the Depositor, in lieu of delivering the above
      documents, herewith delivers to any NIMS Insurer and the Trustee, or to the
      Custodian on behalf of the Trustee, an Officer’s Certificate which shall include
      a statement to the effect that all amounts received in connection with such
      prepayment that are required to be deposited in the Collection Account pursuant
      to Section 4.01 have been so deposited. All original documents that are not
      delivered to the Trustee or the Custodian on behalf of the Trustee shall be
      held
      by the Master Servicer or the applicable Servicer in trust for the benefit
      of
      the Trustee and the Certificateholders.

     

    
      
        
          	
                  Section
                    2.02 

                	
                  Acceptance
                    of Trust Fund by Trustee: Review of Documentation for Trust Fund.  

                

        

      

    

     

    (a)  The
      Trustee, by execution and delivery hereof, acknowledges receipt by it or by
      the
      Custodian on its behalf of the Mortgage Files pertaining to the Mortgage Loans
      listed on the Mortgage Loan Schedule, subject to review thereof by the Trustee,
      or by the Custodian on behalf of the Trustee, under this Section 2.02. The
      Trustee, or the Custodian on behalf of the Trustee, will execute and deliver
      to
      the Depositor, the Master Servicer, the Trustee and any NIMS Insurer on the
      Closing Date an Initial Certification in the form annexed hereto as Exhibit
      B-1
      (or in the form annexed to the Custodial Agreement as Exhibit B-1, as
      applicable).

     

    
      
        
        

      

      
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    (b)  Within
      45
      days after the Closing Date, the Trustee or the Custodian on behalf of the
      Trustee, will, for the benefit of Holders of the Certificates, review each
      Mortgage File to ascertain that all required documents set forth in Section
      2.01
      have been received and appear on their face to contain the requisite signatures
      by or on behalf of the respective parties thereto, and shall deliver to the
      Trustee, the Depositor, the Master Servicer and any NIMS Insurer an Interim
      Certification in the form annexed hereto as Exhibit B-2 (or in the form annexed
      to the Custodial Agreement as Exhibit B-2, as applicable) to the effect that,
      as
      to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
      Mortgage Loan prepaid in full or any Mortgage Loan specifically identified
      in
      such certification as not covered by such certification), (i) all of the
      applicable documents specified in Section 2.01(b) are in its possession and
      (ii)
      such documents have been reviewed by it and appear to relate to such Mortgage
      Loan. The Trustee, or the Custodian on behalf of the Trustee, shall determine
      whether such documents are executed and endorsed, but shall be under no duty
      or
      obligation to inspect, review or examine any such documents, instruments,
      certificates or other papers to determine that the same are valid, binding,
      legally effective, properly endorsed, genuine, enforceable or appropriate for
      the represented purpose or that they have actually been recorded or are in
      recordable form or that they are other than what they purport to be on their
      face. Neither the Trustee nor the Custodian shall have any responsibility for
      verifying the genuineness or the legal effectiveness of or authority for any
      signatures of or on behalf of any party or endorser.

     

    (c)  If
      in the
      course of the review described in paragraph (b) above the Trustee or the
      Custodian discovers any document or documents constituting a part of a Mortgage
      File that is missing, does not appear regular on its face (i.e.,
      is
      mutilated, damaged, defaced, torn or otherwise physically altered) or appears
      to
      be unrelated to the Mortgage Loans identified in the Mortgage Loan Schedule
      (each, a “Material Defect”), the Trustee, or the Custodian on behalf of the
      Trustee, discovering such Material Defect shall promptly identify the Mortgage
      Loan to which such Material Defect relates in the Interim Certification
      delivered to the Depositor and the Master Servicer. Within 90 days of its
      receipt of such notice, the Transferor, or, if the Transferor does not do so,
      the Depositor shall be required to cure such Material Defect (and, in such
      event, the Depositor shall provide the Trustee with an Officer’s Certificate
      confirming that such cure has been effected). If the Transferor or the
      Depositor, as applicable, does not so cure such Material Defect, the Transferor,
      or, if the Transferor does not do so, the Depositor, shall, if a loss has been
      incurred with respect to such Mortgage Loan that would, if such Mortgage Loan
      were not purchased from the Trust Fund, constitute a Realized Loss, and such
      loss is attributable to the failure of the Depositor to cure such Material
      Defect, repurchase the related Mortgage Loan from the Trust Fund at the Purchase
      Price. A loss shall be deemed to be attributable to the failure of the Depositor
      to cure a Material Defect if, as determined by the Depositor, upon mutual
      agreement with the Trustee each acting in good faith, absent such Material
      Defect, such loss would not have been incurred. Within the two-year period
      following the Closing Date, the Depositor may, in lieu of repurchasing a
      Mortgage Loan pursuant to this Section 2.02, substitute for such Mortgage Loan
      a
      Qualifying Substitute Mortgage Loan subject to the provisions of Section 2.05.
      The failure of the Trustee or the Custodian to give the notice contemplated
      herein within 45 days after the Closing Date shall not affect or relieve the
      Depositor of its obligation to repurchase any Mortgage Loan pursuant to this
      Section 2.02 or any other Section of this Agreement requiring the repurchase
      of
      Mortgage Loans from the Trust Fund.

     

    (d)  Within
      180 days following the Closing Date, the Trustee, or the Custodian, shall
      deliver to the Trustee, the Depositor, the Master Servicer and any NIMS Insurer
      a Final Certification substantially in the form attached as Exhibit B-3 (or
      in
      the form annexed to the Custodial Agreement as Exhibit B-3, as applicable)
      evidencing the completeness of the Mortgage Files in its possession or control,
      with any exceptions noted thereto.

     

    
      
        
        

      

      
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    (e)  Nothing
      in this Agreement shall be construed to constitute an assumption by the Trust
      Fund, the Trustee, the Custodian or the Certificateholders of any unsatisfied
      duty, claim or other liability on any Mortgage Loan or to any
      Mortgagor.

     

    (f)  Each
      of
      the parties hereto acknowledges that the Custodian shall perform the applicable
      review of the Mortgage Loans and respective certifications thereof as provided
      in this Section 2.02 and the Custodial Agreement. The Trustee is hereby
      authorized and directed by the Depositor to appoint the Custodian and to execute
      and deliver the Custodial Agreement.

     

    (g)  Upon
      execution of this Agreement, the Depositor hereby delivers to the Trustee and
      the Trustee acknowledges a receipt of the Mortgage Loan Sale Agreement, each
      Servicing Agreement and the Bulk PMI Policies. The Depositor hereby directs
      the
      Trustee, solely in its capacity as Trustee hereunder, to execute and deliver,
      concurrently with the execution and delivery of this Agreement, the Bulk PMI
      Policies and each Servicing Agreement to which the Trustee is a
      partyt.

    
      
         

        
          	
                  Section
                    2.03

                	
                  Representations
                    and Warranties of the Depositor. 

                

        

      

    

     

    (a)  The
      Depositor hereby represents and warrants to the Trustee, for the benefit of
      Certificateholders, the Master Servicer and any NIMS Insurer as of the Closing
      Date or such other date as is specified, that:

     

    (i)
        the
      Depositor is a corporation duly organized, validly existing and in good standing
      under the laws governing its creation and existence and has full corporate
      power
      and authority to own its property, to carry on its business as presently
      conducted, to enter into and perform its obligations under this Agreement,
      and
      to create the trust pursuant hereto;

     

    (ii)
        the
      execution and delivery by the Depositor of this Agreement have been duly
      authorized by all necessary corporate action on the part of the Depositor;
      neither the execution and delivery of this Agreement, nor the consummation
      of
      the transactions herein contemplated, nor compliance with the provisions hereof,
      will conflict with or result in a breach of, or constitute a default under,
      any
      of the provisions of any law, governmental rule, regulation, judgment, decree
      or
      order binding on the Depositor or its properties or the certificate of
      incorporation or bylaws of the Depositor;

     

    (iii)
        the
      execution, delivery and performance by the Depositor of this Agreement and
      the
      consummation of the transactions contemplated hereby do not require the consent
      or approval of, the giving of notice to, the registration with, or the taking
      of
      any other action in respect of, any state, federal or other governmental
      authority or agency, except such as has been obtained, given, effected or taken
      prior to the date hereof;

     

    (iv)
        this
      Agreement has been duly executed and delivered by the Depositor and, assuming
      due authorization, execution and delivery by the Trustee, the Master Servicer
      and the Credit Risk Manager, constitutes a valid and binding obligation of
      the
      Depositor enforceable against it in accordance with its terms except as such
      enforceability may be subject to (A) applicable bankruptcy and insolvency laws
      and other similar laws affecting the enforcement of the rights of creditors
      generally and (B) general principles of equity regardless of whether such
      enforcement is considered in a proceeding in equity or at law;

     

    
      
        
        

      

      
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    (v)
        there
      are
      no actions, suits or proceedings pending or, to the knowledge of the Depositor,
      threatened or likely to be asserted against or affecting the Depositor, before
      or by any court, administrative agency, arbitrator or governmental body (A)
      with
      respect to any of the transactions contemplated by this Agreement or (B) with
      respect to any other matter which in the judgment of the Depositor will be
      determined adversely to the Depositor and will if determined adversely to the
      Depositor materially and adversely affect it or its business, assets, operations
      or condition, financial or otherwise, or adversely affect its ability to perform
      its obligations under this Agreement; and

     

    (vi)
        immediately
      prior to the transfer and assignment of the Mortgage Loans to the Trustee,
      the
      Depositor was the sole owner of record and holder of each Mortgage Loan, and
      the
      Depositor had good and marketable title thereto, and had full right to transfer
      and sell each Mortgage Loan to the Trustee free and clear, subject only to
      (1)
      liens of current real property taxes and assessments not yet due and payable
      and, if the related Mortgaged Property is a condominium unit, any lien for
      common charges permitted by statute, (2) covenants, conditions and restrictions,
      rights of way, easements and other matters of public record as of the date
      of
      recording of such Mortgage acceptable to mortgage lending institutions in the
      area in which the related Mortgaged Property is located and specifically
      referred to in the lender’s Title Insurance Policy or attorney’s opinion of
      title and abstract of title delivered to the originator of such Mortgage Loan,
      and (3) such other matters to which like properties are commonly subject which
      do not, individually or in the aggregate, materially interfere with the benefits
      of the security intended to be provided by the Mortgage, of any encumbrance,
      equity, participation interest, lien, pledge, charge, claim or security
      interest, and had full right and authority, subject to no interest or
      participation of, or agreement with, any other party, to sell and assign each
      Mortgage Loan pursuant to this Agreement.

     

    (b)  [Reserved]

     

    
      
        
          	
                  Section
                    2.04 

                	
                  Discovery
                    of Breach. 

                

        

      
 

    It
      is
      understood and agreed that the representations and warranties (i) of the
      Depositor set forth in Section 2.03, (ii) of the Seller set forth in the
      Mortgage Loan Sale Agreement and assigned to the Depositor by the Seller under
      the Mortgage Loan Sale Agreement and to the Trustee by the Depositor hereunder
      and (iii) of the Servicer assigned by the Seller to the Depositor pursuant
      to
      the Mortgage Loan Sale Agreement and assigned to the Trustee by the Depositor
      hereunder, shall each survive delivery of the Mortgage Files and the Assignment
      of Mortgage of each Mortgage Loan to the Trustee and shall continue throughout
      the term of this Agreement. Upon discovery by any of the Depositor, the Master
      Servicer or the Trustee of a breach of any of such representations and
      warranties that adversely and materially affects the value of the related
      Mortgage Loan, the party discovering such breach shall give prompt written
      notice to the other parties. Within 90 days of the discovery of a breach of
      any
      representation or warranty given to the Trustee by the Depositor or the Seller,
      the Depositor or the Seller, as applicable, shall either (a) cure such breach
      in
      all material respects, (b) repurchase such Mortgage Loan or any property
      acquired in respect thereof from the Trustee at the Purchase Price (or in the
      case of a First Payment Default Mortgage Loan, the FPD Purchase Price (excluding
      any FPD Premium)) or (c) within the two-year period following the Closing Date,
      substitute a Qualifying Substitute Mortgage Loan for the affected Mortgage
      Loan.

     

    
      
        
        

      

      
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                  Section
                    2.05 

                	
                  Repurchase,
                    Purchase or Substitution of Mortgage Loans.  

                

        

      

    

     

    (a)  With
      respect to any Mortgage Loan repurchased by the Depositor pursuant to this
      Agreement or by the Seller pursuant to the Mortgage Loan Sale Agreement, the
      principal portion of the funds (including the FPD Purchase Price in the case
      of
      any First Payment Default Mortgage Loan) received by the Trustee in respect
      of
      such repurchase of a Mortgage Loan will be considered a Principal Prepayment
      and
      the Purchase Price or FPD Purchase Price (excluding any FPD Premium), as
      applicable, shall be deposited in the Certificate Account. The Trustee (i)
      upon
      receipt of the full amount of the Purchase Price for a Deleted Mortgage Loan,
      (ii) upon receipt of a written certification from the Master Servicer that
      it
      has received the full amount of the Purchase Price for a Deleted Mortgage Loan
      and has deposited such amount in the Collection Account or (iii) upon receipt
      of
      notification from the Custodian that it had received the Mortgage File for
      a
      Qualifying Substitute Mortgage Loan substituted for a Deleted Mortgage Loan
      (and
      any applicable Substitution Amount), shall release or cause to be released
      and
      reassign to the Depositor or the Seller, as applicable, the related Mortgage
      File for the Deleted Mortgage Loan and shall execute and deliver such
      instruments of transfer or assignment, in each case without recourse,
      representation or warranty, as shall be necessary to vest in such party or
      its
      designee or assignee title to any Deleted Mortgage Loan released pursuant
      hereto, free and clear of all security interests, liens and other encumbrances
      created by this Agreement, which instruments shall be prepared by the related
      Servicer and the Trustee shall have no further responsibility with respect
      to
      the Mortgage File relating to such Deleted Mortgage Loan. The Seller indemnifies
      and holds the Trust Fund, the Master Servicer, the Trustee, the Depositor,
      and
      NIMS Insurer and each Certificateholder harmless against any and all taxes,
      claims, losses, penalties, fines, forfeitures, reasonable legal fees and related
      costs, judgments, and any other costs, fees and expenses that the Trust Fund,
      the Trustee, the Master Servicer, the Depositor, any NIMS Insurer and any
      Certificateholder may sustain in connection with any actions of such Seller
      relating to a repurchase of a Mortgage Loan other than in compliance with the
      terms of this Section 2.05 and the Mortgage Loan Sale Agreement, to the extent
      that any such action causes an Adverse REMIC Event.

     

    (b)  With
      respect to each Qualifying Substitute Mortgage Loan to be delivered to the
      Trustee (or the Custodian) pursuant to the terms of this Article II in exchange
      for a Deleted Mortgage Loan: (i) the Depositor or the Seller, as applicable,
      must deliver to the Trustee (or the Custodian) the Mortgage File for the
      Qualifying Substitute Mortgage Loan containing the documents set forth in
      Section 2.01(b) along with a written certification certifying as to the delivery
      of such Mortgage File and containing granting language substantially comparable
      to that set forth in the first paragraph of Section 2.01(a); and (ii) the
      Depositor will be deemed to have made, with respect to such Qualifying
      Substitute Mortgage Loan, each of the representations and warranties made by
      it
      with respect to the related Deleted Mortgage Loan. As soon as practicable after
      the delivery of any Qualifying Substitute Mortgage Loan hereunder, the Master
      Servicer, at the expense of the Depositor and at the direction and with the
      cooperation of the applicable Servicer, shall (i) with respect to a
      Qualifying Substitute Mortgage Loan that is a Non-MERS Mortgage Loan, cause
      the
      Assignment of Mortgage to be recorded by the applicable Servicer if required
      pursuant to Section 2.01(c), or (ii) with respect to a Qualifying Substitute
      Mortgage Loan that is a MERS Mortgage Loan, cause to be taken such actions
      as
      are necessary to cause the Trustee to be clearly identified as the owner of
      each
      such Mortgage Loan on the records of MERS if required pursuant to Section
      2.01(c).

     

    
      
        
        

      

      
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    (c)  Notwithstanding
      any other provision of this Agreement, the right to substitute Mortgage Loans
      pursuant to this Article II shall be subject to the additional limitations
      that
      no substitution of a Qualifying Substitute Mortgage Loan for a Deleted Mortgage
      Loan shall be made unless the Trustee and any NIMS Insurer has received an
      Opinion of Counsel addressed to the Trustee (at the expense of the party seeking
      to make the substitution) that, under current law, such substitution will not
      cause an Adverse REMIC Event.

     

    Section
      2.06  Grant
      Clause. 

     

    (a)  It
      is
      intended that the conveyance of the Depositor’s right, title and interest in and
      to property constituting the Trust Fund pursuant to this Agreement shall
      constitute, and shall be construed as, a sale of such property and not a grant
      of a security interest to secure a loan. However, if such conveyance is deemed
      to be in respect of a loan, it is intended that: (1) the rights and obligations
      of the parties shall be established pursuant to the terms of this Agreement;
      (2)
      the Depositor hereby grants to the Trustee for the benefit of the Holders of
      the
      Certificates a first priority security interest to secure repayment of an
      obligation in an amount equal to the aggregate Class Principal Amount of the
      Certificates (or the aggregate principal balance of the Lower Tier REMIC 1
      Uncertificated Regular Interests, if applicable) in all of the Depositor’s
      right, title and interest in, to and under, whether now owned or hereafter
      acquired, the Trust Fund, the Supplemental Interest Trust and all proceeds
      of
      any and all property constituting the Trust Fund and the Supplemental Interest
      Trust to secure payment of the Certificates or Lower Tier REMIC 1 Uncertificated
      Regular Interests, as applicable (such security interest being, to the extent
      of
      the assets that constitute the Supplemental Interest Trust, pari
      passu
      with the
      security interest as provided in clause (4) below); (3) this Agreement shall
      constitute a security agreement under applicable law; and (4) the Swap
      Counterparty shall be deemed, during the term of such agreement and while such
      agreement is the property of the Trustee, to have a security interest in all
      of
      the assets that constitute the Supplemental Interest Trust, but only to the
      extent of such Swap Counterparty’s right to payment under the Swap Agreement
      (such security interest being pari
      passu
      with the
      security interest as provided in clause (2) above). If such conveyance is deemed
      to be in respect of a loan and the trust created by this Agreement terminates
      prior to the satisfaction of the claims of any Person holding any Certificate
      or
      Lower Tier REMIC 1 Uncertificated Regular Interests, as applicable, the security
      interest created hereby shall continue in full force and effect and the Trustee
      shall be deemed to be the collateral agent for the benefit of such Person,
      and
      all proceeds shall be distributed as herein provided.

     

    (b)  The
      Depositor shall, to the extent consistent with this Agreement, take such
      reasonable actions as may be necessary to ensure that, if this Agreement were
      deemed to create a security interest in the Mortgage Loans and the other
      property described above, such security interest would be deemed to be a
      perfected security interest of first priority under applicable law and shall
      be
      maintained as such throughout the term of this Agreement. The Depositor shall,
      at its own expense, make all initial filings on or about the Closing Date and
      shall forward a copy of such filing or filings to the Trustee. Without limiting
      the generality of the foregoing, the Depositor shall prepare and forward for
      filing, or shall cause to be forwarded for filing, at the expense of the
      Depositor, all filings necessary to maintain the effectiveness of any original
      filings necessary under the relevant UCC to perfect the Trustee’s security
      interest in or lien on the Mortgage Loans, including without limitation (x)
      continuation statements, and (y) such other statements as may be occasioned
      by
      (1) any change of name of the Seller, the Depositor or the Trustee, (2) any
      change of location of the jurisdiction of organization of the Seller or the
      Depositor, (3) any transfer of any interest of the Seller or the Depositor
      in
      any Mortgage Loan or (4) any change under the relevant UCC or other applicable
      laws. Neither the Seller nor the Depositor shall organize under the law of
      any
      jurisdiction other than the State under which each is organized as of the
      Closing Date (whether changing its jurisdiction of organization or organizing
      under an additional jurisdiction) without giving 30 days prior written notice
      of
      such action to its immediate and intermediate transferee, including the Trustee.
      Before effecting such change, the Seller or the Depositor proposing to change
      its jurisdiction of organization shall prepare and file in the appropriate
      filing office any financing statements or other statements necessary to continue
      the perfection of the interests of its immediate and intermediate transferees,
      including the Trustee, in the Mortgage Loans. In connection with the
      transactions contemplated by this Agreement, each of the Seller and the
      Depositor authorizes its immediate or intermediate transferee to file in any
      filing office any initial financing statements, any amendments to financing
      statements, any continuation statements, or any other statements or filings
      described in this paragraph (b).

     

    
      
        
        

      

      
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    ARTICLE
      III

     

    THE
      CERTIFICATES

     

    
      
        
          	
                  Section
                    3.01

                	
                  The
                    Certificates. 

                

        

      

    

     

    (a)  The
      Certificates shall be issuable in registered form only and shall be securities
      governed by Article 8 of the New York Uniform Commercial Code. The Book-Entry
      Certificates will be evidenced by one or more certificates, beneficial ownership
      of which will be held in the dollar denominations in Certificate Principal
      Amount, or in the Percentage Interests, specified herein. Each Class of
      Book-Entry Certificates will be issued in the minimum denominations in
      Certificate Principal Amount specified in the Preliminary Statement hereto
      and
      in integral multiples of $1 in excess thereof. The Class P and Class X
      Certificates shall each be maintained in definitive, fully registered form
      in
      the minimum denomination specified in the Preliminary Statement hereto and
      in
      integral multiples of 1% in excess thereof. Each of the Class R and Class LT-R
      Certificate shall be issued as a single Certificate and maintained in
      definitive, fully registered form in a minimum denomination equal to 100% of
      the
      Percentage Interest of such Class. The Certificates may be issued in the form
      of
      typewritten certificates. 

     

    
      
        
        

      

      
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    (b)  The
      Certificates shall be executed by manual or facsimile signature on behalf of
      the
      Trustee by an authorized officer. Each Certificate shall, on original issue,
      be
      authenticated by the Trustee upon the order of the Depositor upon receipt by
      the
      Trustee (or the Custodian) of the Mortgage Files described in Section 2.01.
      No
      Certificate shall be entitled to any benefit under this Agreement, or be valid
      for any purpose, unless there appears on such Certificate a certificate of
      authentication substantially in the form provided for herein, executed by an
      authorized officer of the Trustee or the Authenticating Agent, if any, by manual
      signature, and such certification upon any Certificate shall be conclusive
      evidence, and the only evidence, that such Certificate has been duly
      authenticated and delivered hereunder. All Certificates shall be dated the
      date
      of their authentication. At any time and from time to time after the execution
      and delivery of this Agreement, the Depositor may deliver Certificates executed
      by the Depositor to the Trustee or the Authenticating Agent for authentication
      and the Trustee or the Authenticating Agent shall authenticate and deliver
      such
      Certificates as in this Agreement provided and not otherwise.

     

    (c)  The
      Class
      B Certificates offered and sold in reliance on the exemption from registration
      under Rule 144A under the Securities Act shall be issued initially in the form
      of one or more permanent global Certificates in definitive, fully registered
      form without interest coupons with the applicable legends set forth in Exhibit
      A
      added to the forms of such Certificates (each, a “Restricted Global Security”),
      which shall be deposited on behalf of the subscribers for such Certificates
      represented thereby with the Trustee, as custodian for The Depository Trust
      Company (“DTC”) and registered in the name of a nominee of DTC, duly executed
      and authenticated by the Trustee as hereinafter provided. The aggregate
      principal amounts of the Restricted Global Securities may from time to time
      be
      increased or decreased by adjustments made on the records of the Trustee or
      DTC
      or its nominee, as the case may be, as hereinafter provided.

     

    (d)  The
      Class
      B Certificates sold in offshore transactions in reliance on Regulation S shall
      be issued initially in the form of one or more permanent global Certificates
      in
      definitive, fully registered form without interest coupons with the applicable
      legends set forth in Exhibit A hereto added to the forms of such Certificates
      (each, a “Regulation S Global Security”), which shall be deposited on behalf of
      the subscribers for such Certificates represented thereby with the Trustee,
      as
      custodian for DTC and registered in the name of a nominee of DTC, duly executed
      and authenticated by the Trustee as hereinafter provided. The aggregate
      principal amounts of the Regulation S Global Securities may from time to time
      be
      increased or decreased by adjustments made on the records of the Trustee or
      DTC
      or its nominee, as the case may be, as hereinafter provided.

     

    (e)  The
      Class
      B Certificates sold to an “accredited investor” under Rule 501(a)(1), (2), (3)
      or (7) under the Securities Act shall be issued initially in the form of one
      or
      more Definitive Certificates.

     

    
      
        
          	
                  Section
                    3.02

                	
                  Registration.

                

        

      

    

     

    The
      Trustee is hereby appointed, and hereby accepts its appointment as, Certificate
      Registrar in respect of the Certificates (and, after a Section 7.01(c) Purchase
      Event, the Lower Tier REMIC 1 Uncertificated Regular Interests) and shall
      maintain books for the registration and for the transfer of Certificates (and,
      after a Section 7.01(c) Purchase Event, the Lower Tier REMIC 1 Uncertificated
      Regular Interests) (the “Certificate Register”). The Trustee may appoint a bank
      or trust company to act as Certificate Registrar. A registration book shall
      be
      maintained for the Certificates (and Lower Tier REMIC 1 Uncertificated Regular
      Interests, as the case may be) collectively. The Certificate Registrar may
      resign or be discharged or removed and a new successor may be appointed in
      accordance with the procedures and requirements set forth in Sections 6.06
      and
      6.07 hereof with respect to the resignation, discharge or removal of the Trustee
      and the appointment of a successor Trustee. The Certificate Registrar may
      appoint, by a written instrument delivered to the Holders, any NIMS Insurer
      and
      the Master Servicer, any bank or trust company to act as co-registrar under
      such
      conditions as the Certificate Registrar may prescribe; provided,
      however,
      that the
      Certificate Registrar shall not be relieved of any of its duties or
      responsibilities hereunder by reason of such appointment.

     

    
      
        
        

      

      
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    Upon
      the
      occurrence of a Section 7.01(c) Purchase Event, the Master Servicer shall
      provide the Trustee with written notice of the identity of any transferee of
      the
      Master Servicer’s interest in the Lower Tier REMIC 1 Uncertificated Regular
      Interests, which notice shall contain a certification that such transferee
      is a
      permitted LTURI-holder hereunder. The Lower Tier REMIC 1 Uncertificated Regular
      Interests may only be transferred in whole and not in part to no more than
      one
      LTURI-holder at a time who is either (1) an affiliate of the Master Servicer
      or
      (2) a trustee of a privately placed securitization. The Trustee and the
      Depositor shall treat the Person in whose name the Lower Tier REMIC 1
      Uncertificated Regular Interests are registered on the books of the Certificate
      Registrar as the LTURI-holder for all purposes hereunder.

    
      
         

        
          	
                  Section
                    3.03 

                	
                  Transfer
                    and Exchange of Certificates.  

                

        

         

      

    

    (a)  A
      Certificate (other than a Book-Entry Certificate which shall be subject to
      Section 3.09 hereof) may be transferred by the Holder thereof only upon
      presentation and surrender of such Certificate at the office of the Certificate
      Registrar duly endorsed or accompanied by an assignment duly executed by such
      Holder or his duly authorized attorney in such form as shall be satisfactory
      to
      the Certificate Registrar. Upon the transfer of any Certificate in accordance
      with the preceding sentence, the Trustee shall execute, and the Trustee or
      any
      Authenticating Agent shall authenticate and deliver to the transferee, one
      or
      more new Certificates of the same Class and evidencing, in the aggregate, the
      same aggregate Certificate Principal Amount or Percentage Interest as the
      Certificate being transferred. No service charge shall be made to a
      Certificateholder for any registration of transfer of Certificates, but the
      Certificate Registrar may require payment of a sum sufficient to cover any
      tax
      or governmental charge that may be imposed in connection with any registration
      of transfer of Certificates.

     

    (b)  A
      Certificate may be exchanged by the Holder thereof for any number of new
      Certificates of the same Class, in authorized denominations, representing in
      the
      aggregate the same Certificate Principal Amount or Percentage Interest as the
      Certificate surrendered, upon surrender of the Certificate to be exchanged
      at
      the office of the Certificate Registrar duly endorsed or accompanied by a
      written instrument of transfer duly executed by such Holder or his duly
      authorized attorney in such form as is satisfactory to the Certificate
      Registrar. Certificates delivered upon any such exchange will evidence the
      same
      obligations, and will be entitled to the same rights and privileges, as the
      Certificates surrendered. No service charge shall be made to a Certificateholder
      for any exchange of Certificates, but the Certificate Registrar may require
      payment of a sum sufficient to cover any tax or governmental charge that may
      be
      imposed in connection with any exchange of Certificates. Whenever any
      Certificates are so surrendered for exchange, the Trustee shall execute, and
      the
      Trustee or the Authenticating Agent shall authenticate, date and deliver the
      Certificates which the Certificateholder making the exchange is entitled to
      receive.

     

    
      
        
        

      

      
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    (c)  By
      acceptance of a Restricted Certificate or a Regulation S Global Security,
      whether upon original issuance or subsequent transfer, each Holder of such
      a
      Certificate acknowledges the restrictions on the transfer of such Certificate
      set forth thereon and agrees that it will transfer such a Certificate only
      as
      provided herein. In addition, each Holder of a Regulation S Global Security
      shall be deemed to have represented and warranted to the Trustee, the
      Certificate Registrar and any of their respective successors that: (i) such
      Person is not a U.S. person within the meaning of Regulation S and was, at
      the
      time the buy order was originated, outside the United States and (ii) such
      Person understands that such Certificates have not been registered under the
      Securities Act, and that (x) until the expiration of the 40-day distribution
      compliance period (within the meaning of Regulation S), no offer, sale, pledge
      or other transfer of such Certificates or any interest therein shall be made
      in
      the United States or to or for the account or benefit of a U.S. person (each
      as
      defined in Regulation S), (y) if in the future it decides to offer, resell,
      pledge or otherwise transfer such Certificates, such Certificates may be
      offered, resold, pledged or otherwise transferred only (A) to a person which
      the
      seller reasonably believes is a “qualified institutional buyer” (a “QIB”) as
      defined in Rule 144A under the Securities Act, that is purchasing such
      Certificates for its own account or for the account of a qualified institutional
      buyer to which notice is given that the transfer is being made in reliance
      on
      Rule 144A or (B) in an offshore transaction (as defined in Regulation S) in
      compliance with the provisions of Regulation S, in each case in compliance
      with
      the requirements of this Agreement; and it will notify such transferee of the
      transfer restrictions specified in this Section.

     

    The
      following restrictions shall apply with respect to the transfer and registration
      of transfer of a Restricted Certificate to a transferee that takes delivery
      in
      the form of a Definitive Certificate:

     

    (i)
        The
      Certificate Registrar shall register the transfer of a Restricted Certificate
      if
      the requested transfer is (x) to the Depositor or the Placement Agent, an
      affiliate (as defined in Rule 405 under the Securities Act) of the Depositor
      or
      the Placement Agent or (y) being made to a “qualified institutional buyer” (a
“QIB”) as defined in Rule 144A under the Securities Act by a transferor that has
      provided the Trustee with a certificate in the form of Exhibit F hereto;
      and

     

    (ii)
        The
      Certificate Registrar shall register the transfer of a Restricted Certificate
      if
      the requested transfer is being made to an “accredited investor” under Rule
      501(a)(1), (2), (3) or (7) under the Securities Act, or to any Person all of
      the
      equity owners in which are such accredited investors, by a transferor who
      furnishes to the Trustee a letter of the transferee substantially in the form
      of
      Exhibit G hereto.

     

    
      
        
        

      

      
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    (d)  (i)
      No
      transfer of an ERISA-Restricted Certificate in the form of a Definitive
      Certificate shall be made to any Person unless the Trustee has received (A)
      a
      certificate substantially in the form of Exhibit H hereto (or Exhibit D-1,
      in
      the case of a Residual Certificate) from such transferee or (B) an Opinion
      of
      Counsel satisfactory to the Trustee, to the effect that the purchase and holding
      of such a Certificate will not constitute or result in prohibited transactions
      under Title I of ERISA or Section 4975 of the Code and will not subject the
      Trustee, the Master Servicer, any Servicer, any NIMS Insurer or the Depositor
      to
      any obligation in addition to those undertaken in the Agreement; provided,
      however,
      that the
      Trustee will not require such certificate or opinion in the event that, as
      a
      result of a change of law or otherwise, counsel satisfactory to the Trustee,
      has
      rendered an opinion to the effect that the purchase and holding of an
      ERISA-Restricted Certificate by a Plan or a Person that is purchasing or holding
      such a Certificate with the assets of a Plan will not constitute or result
      in a
      prohibited transaction under Title I of ERISA or Section 4975 of the Code.
      Each
      Transferee of an ERISA-Restricted Certificate that is a Book-Entry Certificate
      shall be deemed to have made the representations set forth in Exhibit H. The
      preparation and delivery of the certificate and opinions referred to above
      shall
      not be an expense of the Trust Fund, the Trustee, the Master Servicer, any
      NIMS
      Insurer or the Depositor.

     

    Notwithstanding
      the foregoing, no opinion or certificate shall be required for the initial
      issuance of the ERISA-Restricted Certificates. The Trustee shall have no
      obligation to monitor transfers of Book-Entry Certificates that are
      ERISA-Restricted Certificates and shall have no liability for transfers of
      such
      Certificates in violation of the transfer restrictions. The Trustee shall be
      under no liability to any Person for any registration of transfer of any
      ERISA-Restricted Certificate that is in fact not permitted by this Section
      3.03(d) or for making any payments due on such Certificate to the Holder thereof
      or taking any other action with respect to such Holder under the provisions
      of
      this Agreement so long as the transfer was registered by the Trustee in
      accordance with the foregoing requirements. The Trustee shall be entitled,
      but
      not obligated, to recover from any Holder of any ERISA-Restricted Certificate
      that was in fact a Plan or a Person acting on behalf of any such Plan any
      payments made on such ERISA-Restricted Certificate at and after either such
      time. Any such payments so recovered by the Trustee shall be paid and delivered
      by the Trustee to the last preceding Holder of such Certificate that is not
      such
      a Plan or Person acting on behalf of a Plan.

     

    (ii)
      No
      transfer of an ERISA-Restricted Trust Certificate shall be made prior to the
      termination of the Swap Agreement and the Interest Rate Cap Agreement, unless
      the Trustee shall have received a representation letter from the transferee
      of
      such Certificate, substantially in the form set forth in Exhibit H, to the
      effect that either (i) such transferee is neither a Plan nor a Person acting
      on
      behalf of any such Plan or using the assets of any such Plan to effect such
      transfer or (ii) the acquisition and holding of the ERISA-Restricted Trust
      Certificate are eligible for exemptive relief under the statutory exemption
      for
      nonfiduciary service providers under Section 408(b)(17) of ERISA and Section
      4975(d)(20) of the Code, Prohibited Transaction Class Exemption ("PTCE") 84-14,
      PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23 or some other applicable
      exemption. Notwithstanding anything else to the contrary herein, prior to the
      termination of the Swap Agreement and the Interest Rate Cap Agreement, any
      purported transfer of an ERISA-Restricted Trust Certificate on behalf of a
      Plan
      without the delivery to the Trustee of a representation letter as described
      above shall be void and of no effect. If the ERISA-Restricted Trust Certificate
      is a Book-Entry Certificate, prior to the termination of the Swap Agreement
      and
      the Interest Rate Cap Agreement, the transferee will be deemed to have made
      a
      representation as provided in clause (i) or (ii) of this paragraph, as
      applicable.

     

    
      
        
        

      

      
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    If
      any
      ERISA-Restricted Trust Certificate, or any interest therein, is acquired or
      held
      in violation of the provisions of the preceding paragraph, the next preceding
      permitted beneficial owner will be treated as the beneficial owner of that
      Certificate, retroactive to the date of transfer to the purported beneficial
      owner. Any purported beneficial owner whose acquisition or holding of an
      ERISA-Restricted Trust Certificate, or interest therein, was effected in
      violation of the provisions of the preceding paragraph shall indemnify to the
      extent permitted by law and hold harmless the Depositor, the Trustee, any NIMS
      Insurer and the Master Servicer from and against any and all liabilities,
      claims, costs or expenses incurred by such parties as a result of such
      acquisition or holding.

     

    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      the Trustee shall be under no liability to any Person for any registration
      of
      transfer of any ERISA-Restricted Trust Certificate that is in fact not permitted
      by this Section 3.03(d)(ii) or for making any payments due on such Certificate
      to the Holder thereof or taking any other action with respect to such Holder
      under the provisions of this Agreement so long as the transfer was registered
      by
      the Trustee in accordance with the foregoing requirements.

     

    (e)  As
      a
      condition of the registration of transfer or exchange of any Certificate, the
      Certificate Registrar may require the certified taxpayer identification number
      of the owner of the Certificate and the payment of a sum sufficient to cover
      any
      tax or other governmental charge imposed in connection therewith; provided,
      however,
      that the
      Certificate Registrar shall have no obligation to require such payment or to
      determine whether or not any such tax or charge may be applicable. No service
      charge shall be made to the Certificateholder for any registration, transfer
      or
      exchange of a Certificate.

     

    (f)  Notwithstanding
      anything to the contrary contained herein, no Residual Certificate may be owned,
      pledged or transferred, directly or indirectly, by or to (i) a Disqualified
      Organization or (ii) an individual, corporation or partnership or other person
      unless such person is (A) not a Non-U.S. Person or (B) is a Non-U.S. Person
      that
      holds a Residual Certificate in connection with the conduct of a trade or
      business within the United States and has furnished the transferor and the
      Trustee with an effective Internal Revenue Service W-8ECI or successor form
      at
      the time and in the manner required by the Code (any such person who is not
      covered by clause (A) or (B) above is referred to herein as a “Non-permitted
      Foreign Holder”).

     

    Prior
      to
      and as a condition of the registration of any transfer, sale or other
      disposition of a Residual Certificate, the proposed transferee shall deliver
      to
      the Trustee or Certificate Registrar an affidavit in substantially the form
      attached hereto as Exhibit D-1 representing and warranting, among other things,
      that such transferee is neither a Disqualified Organization, an agent or nominee
      acting on behalf of a Disqualified Organization, nor a Non-Permitted Foreign
      Holder (any such transferee, a “Permitted Transferee”), and the proposed
      transferor shall deliver to the Trustee an affidavit in substantially the form
      attached hereto as Exhibit D-2. In addition, the Trustee may (but shall have
      no
      obligation to) require, prior to and as a condition of any such transfer, the
      delivery by the proposed transferee of an Opinion of Counsel, addressed to
      the
      Depositor, the Master Servicer, any NIMS Insurer and the Trustee satisfactory
      in
      form and substance to the Depositor, that such proposed transferee or, if the
      proposed transferee is an agent or nominee, the proposed beneficial owner,
      is
      not a Disqualified Organization, agent or nominee thereof, or a Non-Permitted
      Foreign Holder. Notwithstanding the registration in the Certificate Register
      of
      any transfer, sale, or other disposition of a Residual Certificate to a
      Disqualified Organization, an agent or nominee thereof, or Non-Permitted Foreign
      Holder, such registration shall be deemed to be of no legal force or effect
      whatsoever and such Disqualified Organization, agent or nominee thereof, or
      Non-Permitted Foreign Holder shall not be deemed to be a Certificateholder
      for
      any purpose hereunder, including, but not limited to, the receipt of
      distributions on such Residual Certificate. The Trustee shall not be under
      any
      liability to any person for any registration or transfer of a Residual
      Certificate to a Disqualified Organization, agent or nominee thereof or
      Non-permitted Foreign Holder or for the maturity of any payments due on such
      Residual Certificate to the Holder thereof or for taking any other action with
      respect to such Holder under the provisions of the Agreement, so long as the
      transfer was effected in accordance with this Section 3.03(f), unless a
      Responsible Officer of the Trustee shall have actual knowledge at the time
      of
      such transfer or the time of such payment or other action that the transferee
      is
      a Disqualified Organization, or an agent or nominee thereof, or Non-permitted
      Foreign Holder. The Trustee shall be entitled, but not obligated, to recover
      from any Holder of a Residual Certificate that was a Disqualified Organization,
      agent or nominee thereof, or Non-permitted Foreign Holder at the time it became
      a Holder or any subsequent time it became a Disqualified Organization, agent
      or
      nominee thereof, or Non-permitted Foreign Holder, all payments made on such
      Residual Certificate at and after either such times (and all costs and expenses,
      including but not limited to attorneys’ fees, incurred in connection therewith).
      Any payment (not including any such costs and expenses) so recovered by the
      Trustee shall be paid and delivered to the last preceding Holder of such
      Residual Certificate.

     

    
      
        
        

      

      
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    If
      any
      purported transferee shall become a registered Holder of a Residual Certificate
      in violation of the provisions of this Section 3.03(f), then upon receipt of
      written notice to the Trustee or Certificate Registrar that the registration
      of
      transfer of such Residual Certificate was not in fact permitted by this Section
      3.03(f), the last preceding Permitted Transferee shall be restored to all rights
      as Holder thereof retroactive to the date of such registration of transfer
      of
      such Residual Certificate. The Trustee shall be under no liability to any Person
      for any registration of transfer of a Residual Certificate that is in fact
      not
      permitted by this Section 3.03(f), for making any payment due on such
      Certificate to the registered Holder thereof or for taking any other action
      with
      respect to such Holder under the provisions of this Agreement so long as the
      transfer was registered upon receipt of the affidavit described in the preceding
      paragraph of this Section 3.03(f).

     

    (g)  Each
      Holder or Certificate Owner of a Restricted Certificate, ERISA-Restricted
      Certificate or Residual Certificate, or an interest therein, by such Holder’s or
      Owner’s acceptance thereof, shall be deemed for all purposes to have consented
      to the provisions of this section.

     

    (h)  Notwithstanding
      any provision to the contrary herein, so long as a Global Security representing
      any Class B Certificate remains outstanding and is held by or on behalf of
      DTC,
      transfers of a Global Security representing any such Certificates, in whole
      or
      in part, shall only be made in accordance with Section 3.01 and this Section
      3.03(h).

     

    (A) Subject
      to clauses (B) and (C) of this Section 3.03(h), transfers of a Global Security
      representing any Class B Certificate shall be limited to transfers of such
      Global Security, in whole or in part, to nominees of DTC or to a successor
      of
      DTC or such successor’s nominee.

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

     

    (B) Restricted
      Global Security to Regulation S Global Security.
      If a
      holder of a beneficial interest in a Restricted Global Security deposited with
      or on behalf of DTC wishes at any time to exchange its interest in such
      Restricted Global Security for an interest in a Regulation S Global Security,
      or
      to transfer its interest in such Restricted Global Security to a Person who
      wishes to take delivery thereof in the form of an interest in a Regulation
      S
      Global Security, such holder, provided such holder is not a U.S. person, may,
      subject to the rules and procedures of DTC, exchange or cause the exchange
      of
      such interest for an equivalent beneficial interest in the Regulation S Global
      Security. Upon receipt by the Trustee, as Certificate Registrar, of (I)
      instructions from DTC directing the Trustee, as Certificate Registrar, to be
      credited a beneficial interest in a Regulation S Global Security in an amount
      equal to the beneficial interest in such Restricted Global Security to be
      exchanged but not less than the minimum denomination applicable to such holder’s
      Certificates held through a Regulation S Global Security, (II) a written order
      given in accordance with DTC’s procedures containing information regarding the
      participant account of DTC and, in the case of a transfer pursuant to and in
      accordance with Regulation S, the Euroclear or Clearstream account to be
      credited with such increase and (III) a certificate in the form of Exhibit
      M-1
      hereto given by the holder of such beneficial interest stating that the exchange
      or transfer of such interest has been made in compliance with the transfer
      restrictions applicable to the Global Securities, including that the holder
      is
      not a U.S. person, and pursuant to and in accordance with Regulation S, the
      Trustee, as Certificate Registrar, shall reduce the principal amount of the
      Restricted Global Security and increase the principal amount of the Regulation
      S
      Global Security by the aggregate principal amount of the beneficial interest
      in
      the Restricted Global Security to be exchanged, and shall instruct Euroclear
      or
      Clearstream, as applicable, concurrently with such reduction, to credit or
      cause
      to be credited to the account of the Person specified in such instructions
      a
      beneficial interest in the Regulation S Global Security equal to the reduction
      in the principal amount of the Restricted Global Security.

     

    (C) Regulation
      S Global Security to Restricted Global Security.
      If a
      holder of a beneficial interest in a Regulation S Global Security deposited
      with
      or on behalf of DTC wishes at any time to transfer its interest in such
      Regulation S Global Security to a Person who wishes to take delivery thereof
      in
      the form of an interest in a Restricted Global Security, such holder may,
      subject to the rules and procedures of DTC, exchange or cause the exchange
      of
      such interest for an equivalent beneficial interest in a Restricted Global
      Security. Upon receipt by the Trustee, as Certificate Registrar, of (I)
      instructions from DTC directing the Trustee, as Certificate Registrar, to cause
      to be credited a beneficial interest in a Restricted Global Security in an
      amount equal to the beneficial interest in such Regulation S Global Security
      to
      be exchanged but not less than the minimum denomination applicable to such
      holder’s Certificates held through a Restricted Global Security, to be
      exchanged, such instructions to contain information regarding the participant
      account with DTC to be credited with such increase, and (II) a certificate
      in
      the form of Exhibit M-2 hereto given by the holder of such beneficial interest
      and stating, among other things, that the Person transferring such interest
      in
      such Regulation S Global Security reasonably believes that the Person acquiring
      such interest in a Restricted Global Security is a QIB, is obtaining such
      beneficial interest in a transaction meeting the requirements of Rule 144A
      under
      the Securities Act and in accordance with any applicable securities laws of
      any
      State of the United States or any other jurisdiction, then the Trustee, as
      Certificate Registrar, will reduce the principal amount of the Regulation S
      Global Security and increase the principal amount of the Restricted Global
      Security by the aggregate principal amount of the beneficial interest in the
      Regulation S Global Security to be transferred and the Trustee, as Certificate
      Registrar, shall instruct DTC, concurrently with such reduction, to credit
      or
      cause to be credited to the account of the Person specified in such instructions
      a beneficial interest in the Restricted Global Security equal to the reduction
      in the principal amount of the Regulation S Global Security.

     

    
      
        
        

      

      
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    (D) Other
      Exchanges.
      In the
      event that a Global Security is exchanged for Certificates in definitive
      registered form without interest coupons, pursuant to Section 3.09(c) hereof,
      such Certificates may be exchanged for one another only in accordance with
      such
      procedures as are substantially consistent with the provisions above (including
      certification requirements intended to insure that such transfers comply with
      Rule 144A, comply with Rule 501(a)(1), (2), (3) or (7) or are to non-U.S.
      persons in compliance with Regulation S under the Securities Act, as the case
      may be), and as may be from time to time adopted by the Trustee.

     

    (E) Restrictions
      on U.S. Transfers.
      Transfers of interests in the Regulation S Global Security to U.S. persons
      (as
      defined in Regulation S) shall be limited to transfers made pursuant to the
      provisions of Section 3.03(l)(C).

    
      
         

        
          	
                  Section
                    3.04 

                	
                  Cancellation
                    of Certificates. 

                

        

      

    

     

    Any
      Certificate surrendered for registration of transfer or exchange shall be
      cancelled and retained in accordance with the Trustee’s normal retention
      policies with respect to cancelled certificates maintained by the Trustee or
      the
      Certificate Registrar.

    
      
         

        
          	
                  Section
                    3.05

                	
                  Replacement
                    of Certificates.

                

        

      

    

     

    If
      (i)
      any Certificate is mutilated and is surrendered to the Trustee or any
      Authenticating Agent or (ii) the Trustee or any Authenticating Agent receives
      evidence to its satisfaction of the destruction, loss or theft of any
      Certificate, and there is delivered to the Trustee and the Authenticating Agent
      and any NIMS Insurer such security or indemnity as may be required by them
      to
      save each of them harmless, then, in the absence of notice to the Trustee and
      any Authenticating Agent that such destroyed, lost or stolen Certificate has
      been acquired by a bona fide purchaser, the Trustee shall execute and the
      Trustee or any Authenticating Agent shall authenticate and deliver, in exchange
      for or in lieu of any such mutilated, destroyed, lost or stolen Certificate,
      a
      new Certificate of like tenor and Certificate Principal Amount. Upon the
      issuance of any new Certificate under this Section 3.05, the Trustee and
      Authenticating Agent may require the payment of a sum sufficient to cover any
      tax or other governmental charge that may be imposed in relation thereto and
      any
      other expenses (including the fees and expenses of the Trustee or the
      Authenticating Agent) connected therewith. Any replacement Certificate issued
      pursuant to this Section 3.05 shall constitute complete and indefeasible
      evidence of ownership in the applicable Trust Fund, as if originally issued,
      whether or not the lost, stolen or destroyed Certificate shall be found at
      any
      time.

     

    
      
        
        

      

      
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                  Section
                    3.06

                	
                  Persons
                    Deemed Owners. 

                

        

      

    

     

    Subject
      to the provisions of Section 3.09 with respect to Book-Entry Certificates,
      the
      Depositor, the Master Servicer, the Trustee, the Certificate Registrar, any
      NIMS
      Insurer and any agent of any of them may treat the Person in whose name any
      Certificate is registered upon the books of the Certificate Registrar as the
      owner of such Certificate for the purpose of receiving distributions pursuant
      to
      Sections 5.01 and 5.02 and for all other purposes whatsoever, and neither the
      Depositor, the Master Servicer, the Trustee, the Certificate Registrar, any
      NIMS
      Insurer nor any agent of any of them shall be affected by notice to the
      contrary.

     

    
      
        
          	
                  Section
                    3.07

                	
                  Temporary
                    Certificates. 

                

        

      

    

     

    (a)  Pending
      the preparation of definitive Certificates, upon the order of the Depositor,
      the
      Trustee shall execute and shall authenticate and deliver temporary Certificates
      that are printed, lithographed, typewritten, mimeographed or otherwise produced,
      in any authorized denomination, substantially of the tenor of the definitive
      Certificates in lieu of which they are issued and with such variations as the
      authorized officers executing such Certificates may determine, as evidenced
      by
      their execution of such Certificates.

     

    (b)  If
      temporary Certificates are issued, the Depositor will cause definitive
      Certificates to be prepared without unreasonable delay. After the preparation
      of
      definitive Certificates, the temporary Certificates shall be exchangeable for
      definitive Certificates upon surrender of the temporary Certificates at the
      office or agency of the Trustee without charge to the Holder. Upon surrender
      for
      cancellation of any one or more temporary Certificates, the Trustee shall
      execute and authenticate and deliver in exchange therefor a like aggregate
      Certificate Principal Amount of definitive Certificates of the same Class in
      the
      authorized denominations. Until so exchanged, the temporary Certificates shall
      in all respects be entitled to the same benefits under this Agreement as
      definitive Certificates of the same Class.

     

    
      
        
          	
                  Section
                    3.08

                	
                  Appointment
                    of Paying Agent. 

                

        

      

    

     

    (a)  The
      Trustee, subject to the consent of the NIMS Insurer, may appoint a Paying Agent
      (which may be the Trustee) for the purpose of making distributions to
      Certificateholders hereunder. The Trustee shall cause such Paying Agent (if
      other than the Trustee) to execute and deliver to the Trustee an instrument
      in
      which such Paying Agent shall agree with the Trustee that such Paying Agent
      will
      hold all sums held by it for the payment to Certificateholders in an Eligible
      Account in trust for the benefit of the Certificateholders entitled thereto
      until such sums shall be paid to the Certificateholders. All funds remitted
      by
      the Trustee to any such Paying Agent for the purpose of making distributions
      shall be paid to Certificateholders on each Distribution Date and any amounts
      not so paid shall be returned on such Distribution Date to the Trustee. If
      the
      Paying Agent is not the Trustee, the Trustee shall cause to be remitted to
      the
      Paying Agent on or before the Business Day prior to each Distribution Date,
      by
      wire transfer in immediately available funds, the funds to be distributed on
      such Distribution Date. Any Paying Agent shall be either a bank or trust company
      or otherwise authorized under law to exercise corporate trust powers.

     

    
      
        
        

      

      
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    (b)  Any
      Paying Agent shall comply with its reporting obligations under Regulation AB
      with respect to the Trust Fund in form and substance similar to those of the
      Trustee pursuant to Section 6.20, and the related assessment of compliance
      shall
      cover, at a minimum, the elements of the servicing criteria applicable to the
      Paying Agent indicated in Exhibit S attached hereto. For so long as the
      Depositor is subject to Exchange Act reporting requirements with respect to
      the
      Trust, the Paying Agent (if other than the Trustee) shall give prior written
      notice to the Sponsor, the Master Servicer, the Trustee and the Depositor of
      the
      appointment of any Subcontractor by it and a written description (in form and
      substance reasonably satisfactory to the Sponsor and the Depositor) of the
      role
      and function of each Subcontractor utilized by the Paying Agent, as applicable,
      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.
      In
      addition, for so long as the Depositor is subject to Exchange Act reporting
      requirements with respect to the Trust, the Paying Agent (including the Trustee
      in its capacity as Paying Agent, to the extent not already required of the
      Trustee under this Agreement) shall notify the Sponsor, the Master Servicer,
      the
      Trustee and the Depositor within five (5) calendar days of knowledge thereof
      (i)
      of any legal proceedings pending against the Paying Agent of the type described
      in Item 1117 (§ 229.1117) of Regulation AB, (ii) any merger, consolidation or
      sale of substantially all of the assets of the Paying Agent and (iii) if the
      Paying Agent shall become (but only to the extent not previously disclosed)
      at
      any time an affiliate of any of the parties listed on Exhibit V hereto or any
      of
      their affiliates. On or before March 1st
      of each
      year, the Depositor shall distribute the information in Exhibit V to the Paying
      Agent.

     

    (c)  Any
      Paying Agent (if other than the Trustee) agrees to indemnify the Depositor,
      the
      Trustee (if other than the Paying Agent) and the Master Servicer, and each
      of
      their respective directors, officers, employees and agents and the Trust Fund
      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 failure by such Paying Agent to deliver any information,
      report or certification when and as required under Section 6.20 and Section
      9.25(a), provided,
      however,
      that
      this sentence shall not apply if the Paying Agent is the Trustee. This
      indemnification shall survive the termination of this Agreement or the
      termination of such Paying Agent hereunder.

     

    
      
        
          	
                  Section
                    3.09 

                	
                  Book-Entry
                    Certificates. 

                

        

      

    

     

    (a)  Each
      Class of Book-Entry Certificates, upon original issuance, shall be issued in
      the
      form of one or more typewritten Certificates representing the Book-Entry
      Certificates. The Book-Entry Certificates shall initially be registered on
      the
      Certificate Register in the name of the nominee of the Clearing Agency, and
      no
      Certificate Owner will receive a definitive certificate representing such
      Certificate Owner’s interest in the Book-Entry Certificates, except as provided
      in Section 3.09(c). Unless Definitive Certificates have been issued to
      Certificate Owners of Book-Entry Certificates pursuant to Section
      3.09(c):

     

    (i)
        the
      provisions of this Section 3.09 shall be in full force and effect;

     

    
      
        
        

      

      
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    (ii)
        the
      Depositor, the Master Servicer, the Paying Agent, the Registrar, any NIMS
      Insurer and the Trustee may deal with the Clearing Agency for all purposes
      (including the making of distributions on the Book-Entry Certificates) as the
      authorized representatives of the Certificate Owners and the Clearing Agency
      shall be responsible for crediting the amount of such distributions to the
      accounts of such Persons entitled thereto, in accordance with the Clearing
      Agency’s normal procedures;

     

    (iii)
        to
      the
      extent that the provisions of this Section 3.09 conflict with any other
      provisions of this Agreement, the provisions of this Section 3.09 shall control;
      and

     

    (iv)
        the
      rights of Certificate Owners shall be exercised only through the Clearing Agency
      and the Clearing Agency Participants and shall be limited to those established
      by law and agreements between such Certificate Owners and the Clearing Agency
      and/or the Clearing Agency Participants. Unless and until Definitive
      Certificates are issued pursuant to Section 3.09(c), the initial Clearing Agency
      will make book-entry transfers among the Clearing Agency Participants and
      receive and transmit distributions of principal of and interest on the
      Book-Entry Certificates to such Clearing Agency Participants.

     

    (b)  Whenever
      notice or other communication to the Certificateholders is required under this
      Agreement, unless and until Definitive Certificates shall have been issued
      to
      Certificate Owners pursuant to Section 3.09(c), the Trustee shall give all
      such
      notices and communications specified herein to be given to Holders of the
      Book-Entry Certificates to the Clearing Agency.

     

    (c)  If
      (i)
      (A) the Depositor advises the Trustee in writing that the Clearing Agency is
      no
      longer willing or able to discharge properly its responsibilities with respect
      to the Book-Entry Certificates, and (B) the Depositor is unable to locate a
      qualified successor or (ii) after the occurrence of an Event of Default,
      Certificate Owners representing beneficial interests aggregating not less than
      50% of the Class Principal Amount of a Class of Book-Entry Certificates
      identified as such to the Trustee by an Officer’s Certificate from the Clearing
      Agency advise the Trustee and the Clearing Agency through the Clearing Agency
      Participants in writing that the continuation of a book-entry system through
      the
      Clearing Agency is no longer in the best interests of the Certificate Owners
      of
      a Class of Book-Entry Certificates, the Trustee shall notify any NIMS Insurer
      and shall notify or cause the Certificate Registrar to notify the Clearing
      Agency to effect notification to all Certificate Owners, through the Clearing
      Agency, of the occurrence of any such event and of the availability of
      Definitive Certificates to Certificate Owners requesting the same. Upon
      surrender to the Trustee of the Book-Entry Certificates by the Clearing Agency,
      accompanied by registration instructions from the Clearing Agency for
      registration, the Trustee shall issue the Definitive Certificates. Neither
      the
      Depositor nor the Trustee shall be liable for any delay in delivery of such
      instructions and may conclusively rely on, and shall be protected in relying
      on,
      such instructions. Upon the issuance of Definitive Certificates all references
      herein to obligations imposed upon or to be performed by the Clearing Agency
      shall be deemed to be imposed upon and performed by the Trustee, to the extent
      applicable, with respect to such Definitive Certificates and the Trustee shall
      recognize the holders of the Definitive Certificates as Certificateholders
      hereunder. Notwithstanding the foregoing, the Trustee, upon the instruction
      of
      the Depositor, shall have the right to issue Definitive Certificates on the
      Closing Date in connection with credit enhancement programs.

     

    
      
        
        

      

      
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    ARTICLE
      IV  

     

    ADMINISTRATION
      OF THE TRUST FUND

     

    
      
        
          	
                  Section
                    4.01

                	
                  Collection
                    Account. 

                

        

      

    

     

    (a)  On
      the
      Closing Date, the Master Servicer shall open and shall thereafter maintain
      a
      segregated account held in trust (the “Collection Account”), entitled “Aurora
      Loan Services LLC, as Master Servicer, in trust for the benefit of the Holders
      of BNC Mortgage Loan Trust 2006-1 Mortgage Pass-Through Certificates, Series
      2006-1.” The Collection Account shall relate solely to the Certificates and to
      the Lower Tier REMIC 1 Uncertificated Regular Interests issued by the Trust
      Fund
      hereunder, and funds in such Collection Account shall not be commingled with
      any
      other monies.

     

    (b)  The
      Collection Account shall be an Eligible Account. If an existing Collection
      Account ceases to be an Eligible Account, the Master Servicer shall establish
      a
      new Collection Account that is an Eligible Account within 10 days and transfer
      all funds and investment property on deposit in such existing Collection Account
      into such new Collection Account.

     

    (c)  The
      Master Servicer shall give to the Trustee prior written notice of the name
      and
      address of the depository institution at which the Collection Account is
      maintained and the account number of such Collection Account. The Master
      Servicer shall take such actions as are necessary to cause the depository
      institution holding the Collection Account to hold such account in the name
      of
      the Master Servicer under this Agreement. On each Master Servicer Remittance
      Date, the entire amount on deposit in the Collection Account (subject to
      permitted withdrawals set forth in Section 4.02), other than amounts not
      included in the Total Distribution Amount for such Distribution Date shall
      be
      remitted to the Trustee for deposit into the Certificate Account by wire
      transfer in immediately available funds. The Master Servicer, at its option,
      may
      choose to make daily remittances from the Collection Account to the Trustee
      for
      deposit into the Certificate Account.

     

    (d)  The
      Master Servicer shall deposit or cause to be deposited into the Collection
      Account, no later than the second Business Day following the Closing Date,
      any
      amounts received with respect to the Mortgage Loans representing Scheduled
      Payments (or in the case of Simple Interest Mortgage Loans, representing
      scheduled interest payments, but actual principal payments) on the Mortgage
      Loans due after the Cut-off Date and unscheduled payments received on or after
      the Cut-off Date and on or before the Closing Date. Thereafter, the Master
      Servicer shall deposit or cause to be deposited in the Collection Account on
      the
      earlier of the applicable Master Servicer Remittance Date and two Business
      Days
      following receipt thereof, the following amounts received or payments made
      by it
      (other than in respect of principal of and interest on the Mortgage Loans due
      on
      or before the Cut-off Date):

     

    
      
        
        

      

      
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    (i)
        all
      payments on account of principal, including Principal Prepayments, any
      Subsequent Recovery and any Scheduled Payment attributable to principal received
      after its related Due Date, on the Mortgage Loans;

     

    (ii)
        all
      payments on account of interest on the Mortgage Loans, including Prepayment
      Premiums, in all cases, net of the Servicing Fee and the PMI Insurance Premiums,
      if any, with respect to each such Mortgage Loan, but only to the extent of
      the
      amount permitted to be withdrawn or withheld from the Collection Account in
      accordance with Sections 5.04 and 9.21;

     

    (iii)
        any
      unscheduled payment or other recovery with respect to a Mortgage Loan not
      otherwise specified in this paragraph (d), including all Net Liquidation
      Proceeds with respect to the Mortgage Loans and REO Property, and all amounts
      received in connection with the operation of any REO Property, net of (x) any
      unpaid Servicing Fees with respect to such Mortgage Loans (but only to the
      extent of the amount permitted to be withdrawn or withheld from the Collection
      Account in accordance with Sections 5.04 and 9.21) and (y) any amounts
      reimbursable to a Servicer with respect to such Mortgage Loan under the
      applicable Servicing Agreement and retained by such Servicer;

     

    (iv)
        all
      Insurance Proceeds;

     

    (v)
        all
      Advances made by the Master Servicer or any Servicer pursuant to Section 5.04
      or
      the applicable Servicing Agreement; 

     

    (vi)
        any
      Seller Remittance Amounts remitted by a Servicer;

     

    (vii)
        all
      amounts paid by any Servicer with respect to Net Simple Interest Shortfalls
      and
      Prepayment Interest Shortfalls; and 

     

    (viii)
        the
      Purchase Price or FPD Purchase Price of any Mortgage Loan repurchased by the
      Depositor, the Seller, the Master Servicer or any other Person and any
      Substitution Amount related to any Qualifying Substitute Mortgage
      Loan and
      any
      purchase price paid by any NIMS Insurer for the purchase of any Distressed
      Mortgage Loan under Section 7.04.

     

    The
      Master Servicer shall also deposit from its own funds into the Collection
      Account (to the extent not already received from the related Servicer), without
      right of reimbursement, except from Net Simple Interest Excess, an amount equal
      to any Net Simple Interest Shortfall (to the extent not offset by Net Simple
      Interest Excess) for the related Collection Period.

     

    (e)  Funds
      in
      the Collection Account may be invested in Eligible Investments selected by
      and
      at the written direction of the Master Servicer, which shall mature not later
      than one Business Day prior to the Master Servicer Remittance Date (except
      that
      if such Eligible Investment is an obligation of the Trustee, then such Eligible
      Investment shall mature not later than such applicable Master Servicer
      Remittance Date) and any such Eligible Investment shall not be sold or disposed
      of prior to its maturity. All such Eligible Investments shall be made in the
      name of the Master Servicer in trust for the benefit of the Trustee and Holders
      of the BNC Mortgage Loan Trust 2006-1 Mortgage Pass-Through Certificates, Series
      2006-1. All income and gain realized from any Eligible Investment shall be
      for
      the benefit of the Master Servicer and shall be subject to its withdrawal or
      order from time to time, subject to Section 5.05 hereof, and shall not be part
      of the Trust Fund. The amount of any losses incurred in respect of any such
      investments shall be deposited in such Collection Account by the Master Servicer
      out of its own funds, without any right of reimbursement therefor, immediately
      as realized. The foregoing requirements for deposit in the Collection Account
      are exclusive, it being understood and agreed that, without limiting the
      generality of the foregoing, payments of interest on funds in the Collection
      Account and payments in the nature of late payment charges, assumption fees
      and
      other incidental fees and charges relating to the Mortgage Loans (other than
      Prepayment Premiums) need not be deposited by the Master Servicer in the
      Collection Account and may be retained by the Master Servicer or the applicable
      Servicer as additional servicing compensation. If the Master Servicer deposits
      in the Collection Account any amount not required to be deposited therein,
      it
      may at any time withdraw such amount from such Collection Account. 

     

    
      
        
        

      

      
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                  Section
                    4.02

                	
                  Application
                    of Funds in the Collection Account. 

                

        

      

    

     

    The
      Master Servicer may, from time to time, make, or cause to be made, withdrawals
      from the Collection Account for the following purposes:

     

    (i)
        to
      reimburse itself or any Servicer for Advances or Servicing Advances made by
      it
      or by such Servicer pursuant to Section 5.04 or the applicable Servicing
      Agreement; such right to reimbursement pursuant to this subclause (i) is limited
      to amounts received on or in respect of a particular Mortgage Loan (including,
      for this purpose, Liquidation Proceeds and amounts representing Insurance
      Proceeds with respect to the property subject to the related Mortgage) which
      represent late recoveries (net of the applicable Servicing Fee) of payments
      of
      principal or interest respecting which any such Advance was made, it being
      understood, in the case of any such reimbursement, that the Master Servicer’s or
      Servicer’s right thereto shall be prior to the rights of the
      Certificateholders;

     

    (ii)
        to
      reimburse itself or any Servicer, following a final liquidation of a Mortgage
      Loan (except as otherwise provided in the related Servicing Agreement) for
      any
      previously unreimbursed Advances or Servicing Advances made by it or by such
      Servicer (A) that it determines in good faith will not be recoverable from
      amounts representing late recoveries of payments of principal or interest
      respecting the particular Mortgage Loan as to which such Advance or Servicing
      Advance was made or from Liquidation Proceeds or Insurance Proceeds with respect
      to such Mortgage Loan and/or (B) to the extent that such unreimbursed Advances
      or Servicing Advances exceed the related Liquidation Proceeds or Insurance
      Proceeds, it being understood, in the case of each such reimbursement, that
      such
      Master Servicer's or Servicer's right thereto shall be prior to the rights
      of
      the Certificateholders;

     

    (iii)
        to
      reimburse itself or any Servicer from Liquidation Proceeds for Liquidation
      Expenses and for amounts expended by it pursuant to Section 9.22(c) or the
      applicable Servicing Agreement in good faith in connection with the restoration
      of damaged property and, to the extent that Liquidation Proceeds after such
      reimbursement exceed the unpaid principal balance of the related Mortgage Loan,
      together with accrued and unpaid interest thereon at the applicable Mortgage
      Rate less the applicable Servicing Fee Rate for such Mortgage Loan to the Due
      Date next succeeding the date of its receipt of such Liquidation Proceeds,
      to
      pay to itself out of such excess the amount of any unpaid assumption fees,
      late
      payment charges or other Mortgagor charges on the related Mortgage Loan and
      to
      retain any excess remaining thereafter as additional servicing compensation,
      it
      being understood, in the case of any such reimbursement or payment, that such
      Master Servicer’s or Servicer’s right thereto shall be prior to the rights of
      the Certificateholders;

     

    
      
        
        

      

      
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    (iv)
        to
      the
      extent of any previous Advances made by the Master Servicer with respect to
      Simple Interest Mortgage Loans, to pay itself an amount equal to Net Simple
      Interest Excess for the related Collection Period to the extent not offset
      by
      Net Simple Interest Shortfalls;

     

    (v)
        to
      reimburse itself or any Servicer for expenses incurred by and recoverable by
      or
      reimbursable to it or any Servicer pursuant to this Agreement, including,
      without limitation, Sections 9.04, 9.05(b), 9.07(a), 9.30 or 11.15;

     

    (vi)
        to
      pay to
      the Seller any Seller Remittance Amount;

     

    (vii)
        to
      pay to
      the Depositor or the Seller, as applicable, with respect to each Mortgage Loan
      or REO Property acquired in respect thereof that has been purchased pursuant
      to
      this Agreement, all amounts received thereon and not distributed on the date
      on
      which the related repurchase was effected, and to pay to the applicable Person
      any Advances and Servicing Advances to the extent specified in the definition
      of
      Purchase Price (or FPD Purchase Price and FPD Premium (in the case of a First
      Payment Default Loan);

     

    (viii)
        if
      applicable, to pay the PMI Insurance Premium with respect to each Bulk PMI
      Policy;

     

    (ix)
        subject
      to Section 5.05, to pay to itself income earned on the investment of funds
      deposited in the Collection Account;

     

    (x)
        to
      make
      payments to the Trustee for deposit into the Certificate Account in the amounts
      and in the manner provided herein;

     

    (xi)
        to
      make
      payment to itself, the Trustee and others pursuant to any provision of this
      Agreement;

     

    (xii)
        to
      withdraw funds deposited in error in the Collection Account;

     

    (xiii)
        to
      clear
      and terminate the Collection Account pursuant to Section 7.02;

     

    (xiv)
        to
      reimburse the Trustee and a successor master servicer (solely in its capacity
      as
      successor master servicer), for any fee or advance occasioned by a termination
      of the Master Servicer, and the assumption of such duties by the Trustee or
      a
      successor master servicer appointed by the Trustee pursuant to Section 6.14,
      in
      each case to the extent not reimbursed by the terminated Master Servicer, it
      being understood, in the case of any such reimbursement or payment, that the
      right of the Master Servicer or the Trustee thereto shall be prior to the rights
      of the Certificateholders; and

     

    
      
        
        

      

      
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    (xv)
        to
      reimburse any Servicer for such amounts as are due thereto under the applicable
      Servicing Agreement and have not been retained by or paid to such Servicer,
      to
      the extent provided in such Servicing Agreement.

     

    In
      the
      event that the Master Servicer fails on any Master Servicer Remittance Date
      to
      remit to the Trustee any amounts required to be so remitted to the Trustee
      pursuant to sub-clause (x) by such date, the Master Servicer shall pay the
      Trustee interest calculated at the “prime rate” (as published in the “Money
      Rates” section of The
      Wall Street Journal)
      on such
      amounts not timely remitted for the period from and including that Master
      Servicer Remittance Date through the date such funds are remitted to and
      received by the Trustee. The Master Servicer shall only be required to pay
      the
      Trustee interest for the actual number of days such amounts are not timely
      remitted (e.g.,
      one
      day’s interest, if such amounts are remitted one day after the Master Servicer
      Remittance Date).

     

    In
      connection with withdrawals made pursuant to subclauses (i), (iii), (iv), (vi)
      and (vii) above, the Master Servicer’s, any Servicer’s or such other Person’s
      entitlement thereto is limited to collections or other recoveries on the related
      Mortgage Loan. The Master Servicer shall therefore keep and maintain a separate
      accounting for each Mortgage Loan it master services for the purpose of
      justifying any withdrawal made from the Collection Account it maintains pursuant
      to such subclause (i), (iii), (iv), (vi) and (vii).

     

    
      
        
          	
                  Section
                    4.03

                	
                  Reports
                    to Certificateholders. 

                

        

      

    

     

    (a)  On
      each
      Distribution Date, the Trustee shall have prepared (based solely on information
      provided by the Master Servicer, the Cap Counterparty and the Swap Counterparty)
      and shall make available to the Trustee, any NIMS Insurer, the Swap
      Counterparty, the Credit Risk Manager, the Seller and each Certificateholder
      a
      report (the “Distribution Date Statement”) setting forth the following
      information (on the basis of Mortgage Loan level information obtained from
      the
      Master Servicer):

     

    (i)
        the
      aggregate amount of the distribution to be made on such Distribution Date to
      the
      Holders of each Class of Certificates, to the extent applicable, allocable
      to
      principal on the Mortgage Loans, including Liquidation Proceeds and Insurance
      Proceeds, stating separately the amount attributable to scheduled principal
      payments and unscheduled payments in the nature of principal;

     

    (ii)
        the
      aggregate amount of the distribution to be made on such Distribution Date to
      the
      Holders of each Class of Certificates allocable to interest and the calculation
      thereof;

     

    (iii)
        the
      amount, if any, of any distribution to the Holders of the Class P Certificate,
      the Class X Certificates, the Class LT-R Certificates, and the Residual
      Certificate;

     

    
      
        
        

      

      
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    (iv)
        (A) the
      aggregate amount of any Advances required to be made as of the end of the month
      immediately preceding the month in which the Distribution Date occurs by or
      on
      behalf of the Servicers (or the Master Servicer) with respect to such
      Distribution Date, (B) the aggregate amount of such Advances actually made,
      and (C) the amount, if any, by which (A) above exceeds (B)
      above;

     

    (v)
        by
      Mortgage Pool and in the aggregate, the total number of Mortgage Loans, the
      aggregate Scheduled Principal Balance of all the Mortgage Loans as of the close
      of business on the last day of the related Collection Period, after giving
      effect to payments allocated to principal reported under clause (i)
      above;

     

    (vi)
        the
      Class
      Principal Amount of each Class of Certificates, to the extent applicable, as
      of
      such Distribution Date after giving effect to payments allocated to principal
      reported under clause (i) above, separately identifying any reduction of any
      of
      the foregoing Certificate Principal Amounts due to Applied Loss
      Amounts;

     

    (vii)
        the
      amount of any Prepayment Premiums distributed to the Class P Certificates;
      

     

    (viii)
        by
      Mortgage Pool and in the aggregate, the amount of any Realized Losses incurred
      with respect to the Mortgage Loans (x) in the applicable Prepayment Period
      and
      (y) in the aggregate since the Cut-off Date;

     

    (ix)
        the
      amount of the Servicing Fees and Credit Risk Manager’s Fees and PMI Insurance
      Premiums paid during the Collection Period to which such distribution
      relates;

     

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

     

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

     

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

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

     

    (xiii)
        the
      aggregate outstanding Carryforward Interest, Net Prepayment Interest Shortfalls,
      Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls, if any, for each Class
      of Certificates, after giving effect to the distribution made on such
      Distribution Date;

     

    (xiv)
        the
      Certificate Interest Rate applicable to such Distribution Date with respect
      to
      each Class of Certificates;

     

    (xv)
        with
      respect to each Mortgage Pool, the Interest Remittance Amount and the Principal
      Remittance Amount applicable to such Distribution Date;

     

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

     

    (xvii)
        the
      amount of any Overcollateralization Deficiency after giving effect to the
      distributions made in such Distribution Date;

     

    (xviii)
        the
      level
      of LIBOR for such Distribution Date; 

     

    (xix)
        the
      amount of any payments made by the Cap Counterparty to the Supplemental Interest
      Trust made pursuant to Section 5.07(d); 

     

    (xx)
        the
      amount of any Net Swap Payment to the Supplemental Interest Trust made pursuant
      to Section 5.07, any Net Swap Payment to the Swap Counterparty made pursuant
      to
      Section 5.07, any Swap Termination Payment to the Supplemental Interest Trust
      made pursuant to Sections 5.07 and any Swap Termination Payment to the Swap
      Counterparty made pursuant to Section 5.07; and

     

    (xxi)
        the
      amount of any FPD Premiums, if any, for such Distribution Date.

     

    In
      addition to the information listed above, for every year in which the Depositor
      is subject to Exchange Act reporting with respect to the Certificates, such
      Distribution Date Statement shall also include such other information as is
      required by Item 1121 (§ 229.1121) of Regulation AB to the extent that the
      Trustee shall have received any such information from the Depositor, the
      Sponsor, the Master Servicer, the Servicers, the Custodian, any cap counterparty
      or any Subservicer or Subcontractor therefor, as applicable, no later than
      four
      Business Days prior to the Distribution Date.

     

    In
      the
      case of information furnished pursuant to subclauses (i), (ii) and (vi) above,
      the amounts shall also (except in the case of the report delivered to the holder
      of the Class X Certificates) be expressed as a dollar amount per $1,000 of
      original principal amount of Certificates.

     

    On
      any
      Distribution Date after the occurrence of a Section 7.01(c) Purchase Event,
      the
      information required by subclauses (i), (iii), (iv), (v), (vii), (viii), (ix),
      (x), (xi), (xii), (xv), (xvii), (xviii), (xix) and (xx) shall be provided to
      the
      NIMS Insurer, the Swap Counterparty, the Credit Risk Manager, the Seller, the
      holder of the Class LT-R Certificate and the LTURI-holder with regard to the
      Lower Tier REMIC 1 Uncertificated Regular Interests in lieu of the
      Certificates.

     

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

     

    The
      Trustee shall make such report and any additional loan level information (and,
      at its option, any additional files containing the same information in an
      alternative format) provided to it by the Master Servicer available each month
      to any NIMS Insurer, Certificateholders and the Rating Agencies via the
      Trustee’s internet website. The Trustee’s internet website shall initially be
      located at “http://trustinvestorreporting.com.”
      Assistance in using the website can be obtained by emailing the Trustee at
      “ct.information.delivery@usbank.com.” Such parties that are unable to use the
      website are entitled to have a paper copy mailed to them via first class mail
      by
      emailing the customer service desk and indicating such. The Trustee shall have
      the right to change the way such statements are distributed in order to make
      such distribution more convenient and/or more accessible to the above parties
      and the Trustee shall provide timely and adequate notification to all above
      parties regarding any such changes.

     

    The
      foregoing information and reports shall be prepared and determined by the
      Trustee based solely
      on
      Mortgage Loan data provided to the Trustee by the Master Servicer (in the
      formats attached hereto as Exhibit I and Exhibit J or in such other format
      mutually agreed to by the Trustee and the Master Servicer no later than 2:00
      p.m. Eastern Time four Business Days prior to the Distribution Date
      (or such
      other time period set forth in Section 9.23(b)), and on the information provided
      to the Trustee by the Swap Counterparty and the Cap Counterparty.
      In
      preparing or furnishing the foregoing information to the Certificateholders
      and
      any NIMS Insurer, the Trustee shall be entitled to rely conclusively on the
      accuracy and completeness of
      the
      information or data (i) regarding the Mortgage Loans (including any First
      Payment Default Mortgage Loan) and the related REO Property, that has been
      provided to the Trustee by the Master Servicer based on information received
      by
      the Master Servicer from the Servicers, (ii) regarding the Swap Agreement,
      that
      has been provided to the Trustee by the Swap Counterparty and (iii) regarding
      the Interest Rate Cap Agreement, that has been provided to the Trustee by the
      Cap Counterparty, and the Trustee shall not be obligated to verify, recompute,
      reconcile or recalculate any such information or data. The Trustee shall be
      entitled to conclusively rely on the Mortgage Loan data provided by the Master
      Servicer and shall have no liability for any errors or omissions
      in such
      Mortgage Loan data. The Master Servicer shall be entitled to conclusively rely
      on the Mortgage Loan data provided by the Servicers and shall have no liability
      for any errors in such Mortgage Loans.

     

    (b)  Upon
      the
      reasonable advance written request of any NIMS Insurer or any Certificateholder
      that is a savings and loan, bank or insurance company, which request, if
      received by the Trustee, shall be promptly forwarded to the Master Servicer,
      the
      Master Servicer shall provide, or cause to be provided, (or, to the extent
      that
      such information or documentation is not required to be provided by a Servicer
      under the applicable Servicing Agreement, shall use reasonable efforts to obtain
      such information and documentation from such Servicer, and provide) to any
      NIMS
      Insurer and such Certificateholder such reports and access to information and
      documentation regarding the Mortgage Loans as any NIMS Insurer or such
      Certificateholder may reasonably deem necessary to comply with applicable
      regulations of the Office of Thrift Supervision or its successor or other
      regulatory authorities with respect to an investment in the Certificates;
provided,
      however,
      that the
      Trustee shall be entitled to be reimbursed by such Certificateholder or the
      NIMS
      Insurer for the actual expenses incurred in providing such reports and
      access.

     

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

     

    (c)  Upon
      request of a Certificateholder and prior to a Section 7.01(c) Purchase Event,
      the Trustee shall have prepared and the Trustee shall make available to any
      NIMS
      Insurer and each Person who at any time during the calendar year was a
      Certificateholder of record, and make available to Certificate Owners
      (identified as such by the Clearing Agency) in accordance with applicable
      regulations, a report summarizing the items provided to any NIMS Insurer and
      the
      Certificateholders pursuant to Sections 4.03(a)(i) and 4.03(a)(ii) on an annual
      basis as may be required to enable any NIMS Insurer and such Holders to prepare
      their federal income tax returns; provided,
      however,
      that
      this Section 4.03(c) shall not be applicable where relevant reports or summaries
      are required elsewhere in this Agreement. Such information shall also include
      the amount of original issue discount accrued on each Class of Certificates
      and
      information regarding the expenses of the Trust Fund. The Trustee shall be
      deemed to have satisfied this requirement if it forwards such information in
      any
      other format permitted by the Code. The Master Servicer shall provide the
      Trustee with such information as is necessary for the Trustee to prepare such
      reports (and the Trustee may rely solely upon such information).

     

    (d)  The
      Trustee shall furnish, to the exent reasonably available, any other information
      that is required by the Code and regulations thereunder to be made available
      to
      Certificateholders. The Master Servicer shall provide the Trustee, to the exent
      reasonably available, such information as is necessary for the Trustee to
      prepare such reports (and the Trustee may rely solely upon such
      information).

     

    (e)  So
      long
      as not prohibited by applicable law, the Master Servicer shall provide to the
      Depositor or to any party designated by the Depositor, as promptly as
      practicable upon the Depositor's request, any and all loan-level information
      that the Depositor may request in any format reasonably requested by the
      Depositor.

     

    
      
        
          	
                  Section
                    4.04 

                	
                  Certificate
                    Account.

                

        

      

    

     

    (a)  The
      Trustee shall establish and maintain in its name, as trustee, a trust account
      (the “Certificate Account”) entitled “Certificate Account, U.S. Bank National
      Association, as Trustee, in trust for the benefit of the Holders of BNC Mortgage
      Loan Trust 2006-1 Mortgage Pass-Through Certificates, Series 2006-1” until
      disbursed pursuant to the terms of this Agreement. The Certificate Account
      shall
      be an Eligible Account and shall be for the benefit of the Certificateholders,
      subject to the rights of the Trustee set forth herein. If the existing
      Certificate Account ceases to be an Eligible Account, the Trustee shall
      establish a new Certificate Account that is an Eligible Account within ten
      Business Days and transfer all funds and investment property on deposit in
      such
      existing Certificate Account into such new Certificate Account. The Certificate
      Account shall relate solely to the Certificates and the Lower Tier REMIC 1
      Uncertificated Regular Interests issued hereunder and funds in the Certificate
      Account shall be held separate and apart from and shall not be commingled with
      any other monies including, without limitation, other monies of the Trustee
      held
      under this Agreement.

     

    (b)  The
      Trustee shall deposit or cause to be deposited into the Certificate Account,
      on
      the day on which, or if such day is not a Business Day, the Business Day
      immediately following the day on which, any monies are remitted by the Master
      Servicer to the Trustee, all such amounts. The Trustee shall make withdrawals
      from the Certificate Account only for the following purposes:

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

     

    (i)
        to
      make
      payment to itself pursuant to any provision of this Agreement or to reimburse
      itself for any fees or expenses reimbursable to it pursuant to Section 6.12;
      provided,
      however,
      that
      any amounts in excess of the annual cap described in clause (b) of the
      definition of “Interest Remittance Amount” and clause (b) of the definition of
“Principal Remittance Amount” in any Anniversary Year, other than costs and
      expenses incurred by the Trustee pursuant to Section 6.14, in connection with
      any transfer of servicing, shall not be withdrawn from the Certificate Account
      and paid to the Trustee and the Trustee’s reimbursement for such excess amounts
      shall be made pursuant to Section 5.02(b)(v);

     

    (ii)
        to
      withdraw amounts deposited in the Certificate Account in error;

     

    (iii)
        to
      pay
      itself any investment income earned with respect to funds in the Certificate
      Account invested in Eligible Investments as set forth below and to make payments
      to itself and others pursuant to any provision of this Agreement; 

     

    (iv)
        to
      make
      distributions to Certificateholders pursuant to Article V; and

     

    (v)
        to
      clear
      and terminate the Certificate Account pursuant to Section 7.02.

     

    (c)  Funds
      in
      the Certificate Account may be invested by the Trustee in Eligible Investments
      (which may be obligations of the Trustee or its affiliates). If invested, all
      such investments must be payable on demand or mature no later than one Business
      Day prior to the next Distribution Date, and shall not be sold or disposed
      of
      prior to their maturity. All such Eligible Investments will be made in the
      name
      of the Trustee (in its capacity as such) or its nominee. All income and gain
      realized from any such investment for each Distribution Date shall be
      compensation (1) to the Custodian in payment of its Custodial Compensation
      to
      the extent not paid by the Trustee when due and (2) to the Trustee, any income
      and gain remaining. Subject to the preceding sentence, all income and gain
      realized from any such investment for such Distribution Date shall be subject
      to
      withdrawal by the Trustee from time to time. The amount of any losses incurred
      in respect of any such investments shall be paid by the Trustee for deposit
      in
      the Certificate Account out of its own funds, without any right of reimbursement
      therefor, immediately as realized. Funds held in the Certificate Account may
      also be held uninvested. 

     

    
      
        
        

      

      
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                  Section
                    4.05

                	
                  [Reserved]

                

        

         

      

    

    ARTICLE
      V  

     

    DISTRIBUTIONS
      TO HOLDERS OF CERTIFICATES

     

    
      
        
          	
                  Section
                    5.01

                	
                  Distributions
                    Generally.  

                

        

      

    

     

    (a)  Subject
      to Section 7.01 respecting the final distribution on the Certificates or Lower
      Tier REMIC 1 Uncertificated Regular Interests, on each Distribution Date the
      Trustee or the Paying Agent shall make distributions in accordance with this
      Article V and based solely on the reports for such Distribution Date provided
      to
      it by the Master Servicer pursuant to Section 4.03(a). Such distributions shall
      be made by wire transfer in immediately available funds to an account specified
      in writing to the Trustee at least five (5) Business Days prior to the first
      Distribution Date to such Certificateholder and at the expense of such
      Certificateholder.

     

    (b)  The
      final
      distribution in respect of any Certificate shall be made only upon presentation
      and surrender of such Certificate at the Corporate Trust Office; provided,
      however,
      that
      the foregoing provisions shall not apply to any Class of Certificates as long
      as
      such Certificate remains a Book-Entry Certificate in which case all payments
      made shall be made through the Clearing Agency and its Clearing Agency
      Participants. Notwithstanding such final payment of principal of any of the
      Certificates, each Residual Certificate will remain outstanding until the
      termination of each REMIC and the payment in full of all other amounts due
      with
      respect to the Residual Certificates and at such time such final payment in
      retirement of any Residual Certificate will be made only upon presentation
      and
      surrender of such Certificate at the Corporate Trust Office. If any payment
      required to be made on the Certificates or Lower Tier REMIC 1 Uncertificated
      Regular Interests is to be made on a day that is not a Business Day, then such
      payment will be made on the next succeeding Business Day. 

     

    (c)  All
      distributions or allocations made with respect to Certificateholders within
      each
      Class on each Distribution Date shall be allocated among the outstanding
      Certificates in such Class equally in proportion to their respective initial
      Class Principal Amounts (or Percentage Interests).

     

    (d)  The
      Trustee shall make payments to Certificateholders and to the Swap Counterparty
      and any other person pursuant to this Article V and make deposits to the
      Supplemental Interest Trust based solely on the information set forth in the
      monthly report furnished by the Master Servicer in accordance with Section
      4.03(a), and shall be entitled to conclusively rely on such information and
      reports, and on the calculations contained therein, when making distributions
      to
      Certificateholders and the Swap Counterparty. The Trustee shall have no
      liability for any errors in such reports or information, and shall not be
      required to verify, recompute, reconcile or recalculate any such information
      or
      data.

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                  Section
                    5.02

                	
                  Distributions
                    from the Certificate Account. 

                

        

      

    

     

    (a)  On
      each
      Distribution Date on or prior to a Section 7.01(c) Purchase Event or a Trust
      Fund Termination Event, the Trustee (or the Paying Agent on behalf of the
      Trustee) shall withdraw from the Certificate Account the Total Distribution
      Amount (to the extent such amount is on deposit in the Certificate Account),
      and
      amounts that are available for payment to the Swap Counterparty, and shall
      allocate such amount to the interests issued in respect of each REMIC created
      pursuant to this Agreement and shall distribute such amount as specified in
      subparagraphs (b) through (i) of this Section 5.02; provided,
      that
      amounts that are available for payment to the Swap Counterparty shall be paid
      on
      the related Swap Payment Date. On each Distribution Date after a Section 7.01(c)
      Purchase Event but on or prior to a Trust Fund Termination Event, the Trustee
      (or the Paying Agent acting on behalf of the Trustee) shall withdraw from the
      Certificate Account the Total Distribution Amount (to the extent such amount
      is
      on deposit in the Certificate Account), and amounts that are available for
      payment to the Swap Counterparty, and shall allocate such amount to the
      interests issued in respect of REMIC 1 created pursuant to this Agreement and
      shall distribute such amount as specified in subparagraphs (j) through (l)
      of
      this Section; provided,
      that
      amounts that are available for payment to the Swap Counterparty shall be paid
      on
      the related Swap Payment Date.

     

    (b)  On
      each
      Distribution Date (or, with respect to clauses (i) and (ii) below, on the
      related Swap Payment Date), the Trustee shall distribute the Interest Remittance
      Amount for Pool 1 and for such date in the following order of
      priority:

     

    (i)
        for
      deposit into the Swap Account, an amount equal to the lesser of (x) the product
      of (A) the amount of any Net Swap Payment or Swap Termination Payment (not
      due
      to a Swap Counterparty Trigger Event) owed to the Swap Counterparty on the
      related Swap Payment Date and (B) the Pool Percentage for Pool 1 for such
      Distribution Date and (y) the Interest Remittance Amount for Pool 1 for such
      Distribution Date;

     

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

    

     

    (ii)
        for
      deposit into the Swap Account, the amount of any Net Swap Payment or Swap
      Termination Payment (not due to a Swap Counterparty Trigger Event) owed to
      the
      Swap Counterparty on the related Swap Payment Date (after giving effect to
      distributions made pursuant to clause (i) above and subsection 5.02(c)(i) below
      for such Distribution Date), to be paid concurrently and in proportion to the
      Interest Remittance Amount available with respect to Pool 2 for such
      Distribution Date;

     

    (iii)
        to
      the
      Class A1 Certificates, Current Interest and any Carryforward Interest for such
      Class for such Distribution Date; and

     

    (iv)
        for
      application pursuant to Section 5.02(d) below, any Interest Remittance Amount
      for Pool 1 remaining undistributed after application pursuant to clause (i)
      through (iii) of this Section 5.02(b) for such Distribution Date.

     

    (c)  On
      each
      Distribution Date (or with respect to clauses (i) and (ii) below, on the related
      Swap Payment Date), the Trustee shall distribute the Interest Remittance Amount
      for Pool 2 for such date in the following order of priority: 

     

    (i)
        for
      deposit into the Swap Account, an amount equal to the lesser of (x) the product
      of (A) the amount of any Net Swap Payment or Swap Termination Payment (not
      due
      to a Swap Counterparty Trigger Event) owed to the Swap Counterparty on the
      related Swap Payment Date and (B) the Pool Percentage for Pool 2 for such
      Distribution Date and (y) the Interest Remittance Amount for Pool 2 for such
      Distribution Date;

     

    (ii)
        for
      deposit into the Swap Account, the amount of any Net Swap Payment or Swap
      Termination Payment (not due to a Swap Counterparty Trigger Event) owed to
      the
      Swap Counterparty on the related Swap Payment Date (after giving effect to
      distributions made pursuant subsections 5.02(b)(i) and 5.02(c)(i) above for
      such
      Distribution Date) to be paid concurrently and in proportion to Interest
      Remittance Amount available with respect to Pool 1 for such Distribution
      Date;

     

    (iii)
        concurrently,
      to each Class of the Group 2 Senior Certificates, Current Interest and any
      Carryforward Interest for each such Class and such Distribution Date;
provided,
      however,
      that
      any shortfall in Current Interest and Carryforward Interest shall be allocated
      among such Classes in proportion to the amount of
      Current Interest and Carryforward Interest that would otherwise be distributable
      thereon; and 

     

    (iv)
        for
      application pursuant to Section 5.02(d) below, any Interest Remittance Amount
      for Pool 2 remaining undistributed after application pursuant to clauses (i)
      through (iii) of this Section 5.02(c) for such Distribution Date.

     

    (d)  On
      each
      Distribution Date, the Trustee shall distribute the aggregate of any remaining
      Interest Remittance Amounts from subsections 5.02(b)(iv) and 5.02(c)(iv) above
      in the following order of priority: 

     

    (i)
        concurrently, on
      a
      pro
      rata basis,
      to
      each Class of Senior Certificates, Current Interest and any Carryforward
      Interest (taking into account distributions pursuant to subsections 5.02(b)(iii)
      and 5.02(c)(iii) above) for each such Class and such Distribution Date;
provided,
      however,
      that
      any shortfall in Current Interest and Carryforward Interest shall be allocated
      among such Classes in proportion to the amount of Current Interest and
      Carryforward Interest that would otherwise be distributable
      thereon;

     

    (ii)
        to
      each
      Class of Subordinate Certificates, in accordance with the Subordinate Priority,
      Current Interest and any Carryforward Interest for each such Class and such
      Distribution Date;

     

    (iii)
        to
      the
      Credit Risk Manager, the Credit Risk Manager’s Fee;

     

    (iv)
        to
      the
      Trustee, any amounts reimbursable pursuant to Section 4.04(b)(i) and not
      previously reimbursed to the Trustee; and

     

    (v)
        for
      application as part of Monthly Excess Cashflow for such Distribution Date,
      as
      provided in subsection (f) of this Section, any Interest Remittance Amount
      remaining undistributed for such Distribution Date.

     

    (e)  On
      each
      Distribution Date or related Swap Payment Date, as applicable, the Trustee
      shall
      distribute the Principal Distribution Amount with respect to each Mortgage
      Pool
      for such date as follows:

     

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

     

    (i)
        On
      each
      Distribution Date (or, with respect to clauses (A)(1), (A)(2), (B)(1) and (B)(2)
      below of this Section 5.02(e), on the related Swap Payment Date) (a) prior
      to
      the Stepdown Date or (b) with respect to which a Trigger Event is in effect,
      until the aggregate Certificate Principal Amount of the LIBOR Certificates
      equals the Target Amount for such Distribution Date, the Trustee shall make
      the
      following distributions, concurrently: 

     

    (A) For
      Pool 1:
      The
      Principal Distribution Amount for Pool 1 will be distributed in the following
      order of priority:

     

    (1)  for
      deposit into the Swap Account, an amount equal to the lesser of (x) the product
      of (A) the amount of any Net Swap Payment or Swap Termination Payment (not
      due
      to a Swap Counterparty Trigger Event) owed to the Swap Counterparty on the
      related Swap Payment Date (to the extent not paid previously or from the
      Interest Remittance Amount for such Distribution Date) and (B) the Pool
      Percentage for Pool 1 for such Distribution Date and (y) the Principal
      Remittance Amount for Pool 1 for such Distribution Date;

     

    (2)  for
      deposit into the Swap Account, the amount of any Net Swap Payment or Swap
      Termination Payment (not due to a Swap Counterparty Trigger Event) owed to
      the
      Swap Counterparty on the related Swap Payment Date (after giving effect to
      distributions made pursuant to subsections 5.02(e)(i)(A)(1) above and
      5.02(e)(i)(B)(1) below, and to the extent not paid previously or from the
      Interest Remittance Amount for such Distribution Date), to be paid concurrently
      and in proportion to the related Principal Distribution Amount available with
      respect to Pool 2 for such Distribution Date;

     

    (3)  to
      the
      Class A1 Certificates, until the Class Principal Amount of such Class has been
      reduced to zero; and

     

    (4)  for
      application pursuant to subsection 5.02(e)(ii) below, any such Principal
      Distribution Amount for Pool 1 remaining undistributed for such Distribution
      Date.

     

    (B) For
      Pool 2:
      The
      Principal Distribution Amount for Pool 2 will be distributed in the following
      order of priority: 

     

    (1)  for
      deposit into the Swap Account, an amount equal to the lesser of (x) the product
      of (A) the amount of any Net Swap Payment or Swap Termination Payment (not
      due
      to a Swap Counterparty Trigger Event) owed to the Swap Counterparty on the
      related Swap Payment Date (to the extent not paid previously or from the
      Interest Remittance Amount for such Distribution Date) and (B) the Pool
      Percentage for Pool 2 for such Distribution Date and (y) the Principal
      Remittance Amount for Pool 2 for such Distribution Date;

     

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

     

    (2)  for
      deposit into the Swap Account, the amount of any Net Swap Payment or Swap
      Termination Payment (not due to a Swap Counterparty Trigger Event) owed to
      the
      Swap Counterparty on the related Swap Payment Date (after giving effect to
      distributions made pursuant to subsections 5.02(e)(i)(A)(1) and 5.02(e)(i)(B)(1)
      above, and to the extent not paid previously or from the Interest Remittance
      Amount for such Distribution Date) to be paid concurrently and in proportion
      to
      the related Principal Distribution Amount available with respect to Pool 1
      for
      such Distribution Date;

     

    (3)  sequentially
      to the Class A2, Class A3 and Class A4 Certificates, in that order, until the
      Class Principal Amount of each such Class has been reduced to zero;
      and

     

    (4)  for
      application pursuant to subsection 5.02(e)(ii) below, any such Principal
      Distribution Amount for Pool 2 remaining undistributed for such Distribution
      Date.

     

    (ii)  On
      each
      Distribution Date, the Trustee shall distribute the aggregate of any remaining
      Principal Distribution Amounts from subsections 5.02(e)(i)(A)(4) and
      5.02(e)(i)(B)(4) above, in the following order of priority: 

     

    (A)  concurrently,
      on a pro
      rata
      basis,
      in proportion to the aggregate Class Principal Amount of the Group 1 Senior
      Certificates and the Group 2 Senior Certificates related to each such Group,
      after giving effect to principal distributions on such Distribution Date
      pursuant to subsections 5.02(e)(i)(A)(3) and 5.02(e)(i)(B)(3) above, to the
      Group 1 Senior Certificates and the Group 2 Senior Certificates, in each case
      in
      accordance with the Related Senior Priority, until the Class Principal Amount
      of
      each such Class has been reduced to zero; 

     

    (B)  to
      each
      Class of Subordinate Certificates, in accordance with the Subordinate Priority,
      until the Class Principal Amount of each such Class has been reduced to zero;
      and

     

    (C)  for
      application as part of Monthly Excess Cashflow for such Distribution Date,
      as
      provided in subsection (f) of
      this
      Section, any Principal Distribution Amount remaining after application pursuant
      to clauses (A) and (B) of this Section 5.02(e)(ii).

     

    Any
      Principal Distribution Amount remaining on any Distribution Date after the
      Target Amount is achieved will be applied as part of Monthly Excess Cashflow
      for
      such Distribution Date as provided in subsection (f) of this
      Section.

     

    (iii)
        On
      each
      Distribution Date (or, with respect to clauses (A) and (B) below, on the related
      Swap Payment Date) (a) on or after the Stepdown Date and (b) with respect to
      which a Trigger Event is not in effect, the Principal Distribution Amount for
      each Mortgage Pool for such date will be distributed in the following order
      of
      priority:

     

    
      
        
        

      

      
        94

        
          

        

      

      
        
        

      

    

     

    (A)  for
      deposit into the Swap Account, an amount equal to the lesser of (x) the product
      of (1) the amount of any Net Swap Payment or Swap Termination Payment (not
      due
      to a Swap Counterparty Trigger Event) owed to the Swap Counterparty on the
      related Swap Payment Date (to the extent not paid previously or from the
      Interest Remittance Amount for such Distribution Date) and (2) the Pool
      Percentage for the related Mortgage Pool for such Distribution Date and (y)
      the
      Principal Remittance Amount for such Mortgage Pool for such Distribution
      Date;

     

    (B)  for
      deposit into the Swap Account, the amount of any Net Swap Payment or Swap
      Termination Payment (not due to a Swap Counterparty Trigger Event) owed to
      the
      Swap Counterparty on the related Swap Payment Date (after giving effect to
      distributions made pursuant to subsection 5.02(e)(iii)(A) above, and to the
      extent not paid previously or from the Interest Remittance Amounts for such
      Distribution Date), to be paid concurrently and in proportion to the related
      Principal Distribution Amounts available with respect to each Mortgage Pool
      for
      such Distribution Date);

     

    (C)  (1)
      so
      long as any of the Subordinate Certificates are outstanding, to the Group 1
      Senior Certificates in accordance with the Related Senior Priority (from amounts
      generated by Pool 1, except as provided below) and to the Group 2 Senior
      Certificates in accordance with the Related Senior Priority (from amounts
      generated by Pool 2, except as provided below) in each case, an amount equal
      to
      the lesser of (x) the excess of (a) the Principal Distribution Amount for the
      related Mortgage Pool for such Distribution Date over (b) the amount paid to
      the
      Supplemental Interest Trust for deposit into the Swap Account on the related
      Swap Payment Date pursuant to clauses (A) and (B) above and (y) the Related
      Senior Principal Distribution Amount for such Mortgage Pool for such
      Distribution Date, in each case, until the Class Principal Amount of each such
      Class has been reduced to zero; provided,
      however,
      to the
      extent that the Principal Distribution Amount for a Mortgage Pool exceeds the
      Related Senior Principal Distribution Amount for such Mortgage Pool, such excess
      shall be applied to the Senior Certificates related to the other Mortgage Pool
      (in accordance with the Related Senior Priority), but in an amount not to exceed
      the Senior Principal Distribution Amount for such Distribution Date (as reduced
      by any distributions pursuant to subclauses (x) or (y) of this clause (1) on
      such Distribution Date); or (2) if none of the Subordinate Certificates are
      outstanding, to the Group 1 Senior Certificates and the Group 2 Senior
      Certificates (in each case in accordance with the Related Senior Priority),
      the
      excess of (A) the Principal Distribution Amount for the related Mortgage Pool
      for such Distribution Date over (B) the amount paid to the Supplemental Interest
      Trust for deposit into the Swap Account for the related Mortgage Pool on the
      related Swap Payment Date pursuant to clauses (A) and (B) above, in each case
      until the Class Principal Amount of each such Class has been reduced to
      zero;

     

    (D)  to
      the
      Class M1, Class M2 and Class M3 Certificates, sequentially and in that order,
      an
      amount equal to the lesser of (x) the excess of (a) the aggregate of the
      Principal Distribution Amounts for Pool 1 and Pool 2 for such Distribution
      Date
      over (b) the amount paid to the Supplemental Interest Trust for deposit into
      the
      Swap Account or distributed to the Senior Certificates on such date pursuant
      to
      clauses (A) through (C) above, and (y) the M3 Principal Distribution Amount
      for
      such date, until the Class Principal Amount of each such Class has been reduced
      to zero;

     

    
      
        
        

      

      
        95

        
          

        

      

      
        
        

      

    

     

    (E)  to
      the
      Class M4 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the aggregate of the Principal Distribution Amounts for Pool 1 and Pool 2 for
      such Distribution Date over (b) the amount paid to the Supplemental Interest
      Trust for deposit into the Swap Account or distributed to the Senior
      Certificates, the Class M1, Class M2 and Class M3 Certificates on such date
      pursuant to clauses (A) through (D) above, and (y) the M4 Principal Distribution
      Amount for such date, until the Class Principal Amount of such Class has been
      reduced to zero;

     

    (F)  to
      the
      Class M5 Certificates, an amount equal to the lesser of (x) the excess of
      (a) the aggregate of the Principal Distribution Amounts for Pool 1 and Pool
      2
      for such Distribution Date over (b) the amount paid to the Supplemental Interest
      Trust for deposit into the Swap Account or distributed to the Senior
      Certificates and the Class M1, Class M2, Class M3 and Class M4 Certificates
      on
      such date pursuant to clauses (A) through (E) above, and (y) the M5 Principal
      Distribution Amount for such date, until the Class Principal Amount of such
      Class has been reduced to zero;

     

    (G)  to
      the
      Class M6 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the aggregate of the Principal Distribution Amounts for Pool 1 and Pool 2 for
      such Distribution Date over (b) the amount paid to the Supplemental Interest
      Trust for deposit into the Swap Account or distributed to the Senior
      Certificates and the Class M1, Class M2, Class M3, Class M4 and Class M5
      Certificates on such date pursuant to clauses (A) through (F) above, and (y)
      the
      M6 Principal Distribution Amount for such date, until the Class Principal Amount
      of such Class has been reduced to zero; 

     

    (H)  to
      the
      Class M7 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the aggregate of the Principal Distribution Amounts for Pool 1 and Pool 2 for
      such Distribution Date over (b) the amount paid to the Supplemental Interest
      Trust for deposit into the Swap Account or distributed to the Senior
      Certificates and the Class M1, Class M2, Class M3, Class M4, Class M5 and Class
      M6 Certificates on such date pursuant to clauses (A) through (G) above, and
      (y)
      the M7 Principal Distribution Amount for such date, until the Class Principal
      Amount of such Class has been reduced to zero;

     

    (I)  to
      the
      Class M8 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the aggregate of the Principal Distribution Amounts for Pool 1 and Pool 2 for
      such Distribution Date over (b) the amount paid to the Supplemental Interest
      Trust for deposit into the Swap Account or distributed to the Senior
      Certificates and the Class M1, Class M2, Class M3, Class M4, Class M5, Class
      M6
      and Class M7 Certificates on such date pursuant to clauses (A) through (H)
      above, and (y) the M8 Principal Distribution Amount for such date, until the
      Class Principal Amount of such Class has been reduced to zero; 

     

    
      
        
        

      

      
        96

        
          

        

      

      
        
        

      

    

     

    (J)  to
      the
      Class M9 Certificates, an amount equal to the lesser of (x) the excess of (a)
      the aggregate of the Principal Distribution Amounts for Pool 1 and Pool 2 for
      such Distribution Date over (b) the amount paid to the Supplemental Interest
      Trust for deposit into the Swap Account or distributed to the Senior
      Certificates and the Class M1, Class M2, Class M3, Class M4, Class M5, Class
      M6,
      Class M7 and Class M8 Certificates on such date pursuant to clauses (A) through
      (I) above, and (y) the M9 Principal Distribution Amount for such date, until
      the
      Class Principal Amount of such Class has been reduced to zero; 

     

    (K)  to
      the
      Class B Certificates, an amount equal to the lesser of (x) the excess of (a)
      the
      aggregate of the Principal Distribution Amounts for Pool 1 and Pool 2 for such
      Distribution Date over (b) the amount paid to the Supplemental Interest Trust
      for deposit into the Swap Account or distributed to the Senior Certificates
      and
      the Class M1, Class M2, Class M3, Class M4, Class M5, Class M6, Class M7 and
      Class M8 and Class M9 Certificates on such date pursuant to clauses (A) through
      (J) above, and (y) the B Principal Distribution Amount for such date, until
      the
      Class Principal Amount of such Class has been reduced to zero; and

     

    (L)  for
      application as part of Monthly Excess Cashflow for such Distribution Date,
      as
      provided in Section 5.02(f), any Principal Distribution Amount remaining after
      application pursuant to clauses (A) through (K) above. 

     

    (f)  On
      each
      Distribution Date, the Trustee shall distribute the Monthly Excess Cashflow
      for
      such date in the following order of priority:

     

    (i)
        for
      each
      Distribution Date occurring (a) before the Stepdown Date or (b) on or after
      the Stepdown Date but for which a Trigger Event is in effect, then until the
      aggregate Certificate Principal Amount of the LIBOR Certificates equals the
      Target Amount for such Distribution Date, in the following order of
      priority:

     

    (A)  concurrently,
      to the Group 1 Senior Certificates and the Group 2 Senior Certificates, in
      proportion to the aggregate Class Principal Amount of the Senior Certificates
      related to each Group, after giving effect to previous principal distributions
      on such Distribution Date pursuant to subsection 5.02(e)(ii)(A) above, to the
      Group 1 Senior Certificates and the Group 2 Senior Certificates, in each case
      in
      accordance with the Related Senior Priority, in reduction of their respective
      Class Principal Amounts, until the Class Principal Amount of each such Class
      has
      been reduced to zero; and

     

    
      
        
        

      

      
        97

        
          

        

      

      
        
        

      

    

     

    (B)  to
      each
      Class of Subordinate Certificates, in accordance with the Subordinate Priority,
      in reduction of their respective Class Principal Amounts, until the Class
      Principal Amount of each such Class has been reduced to zero.

     

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

     

    (A)  concurrently,
      to the Group 1 Senior Certificates and the Group 2 Senior Certificates, in
      proportion to the aggregate Class Principal Amount of the Senior Certificates
      related to each such Group, after giving effect to previous principal
      distributions on such Distribution Date pursuant to subsection 5.02(e)(iii)(C)
      above, to the Group 1 Senior Certificates and the Group 2 Senior Certificates,
      in each case in accordance with the Related Senior Priority, in reduction of
      their respective Class Principal Amounts, until the aggregate Class Principal
      Amount of each such Class, after giving effect to distributions on such
      Distribution Date, equals the Senior Target Amount;

     

    (B)  to
      the
      Class M1, Class M2 and Class M3 Certificates, sequentially and in that order,
      in
      reduction of their Class Principal Amount, until the aggregate of the Class
      Principal Amounts of such Classes and the Senior Certificates, after giving
      effect to distributions on such Distribution Date, equals the M3 Target
      Amount;

     

    (C)  to
      the
      Class M4 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate of the Class Principal Amounts of such Class, the Senior Certificates
      and the Class M1, Class M2 and Class M3 Certificates, after giving effect to
      distributions on such Distribution Date, equals the M4 Target Amount;

     

    (D)  to
      the
      Class M5 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate of the Class Principal Amounts of such Class, the Senior Certificates
      and the Class M1, Class M2, Class M3 and Class M4 Certificates, after giving
      effect to distributions on such Distribution Date, equals the M5 Target Amount;
      

     

    (E)  to
      the
      Class M6 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate of the Class Principal Amounts of such Class, the Senior Certificates
      and the Class M1, Class M2, Class M3, Class M4 and Class M5 Certificates, after
      giving effect to distributions on such Distribution Date, equals the M6 Target
      Amount; 

     

    (F)  to
      the
      Class M7 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate of the Class Principal Amounts of such Class and the Senior
      Certificates and the Class M1, Class M2, Class M3, Class M4, Class M5 and Class
      M6 Certificates, after giving effect to distributions on such Distribution
      Date,
      equals the M7 Target Amount; 

     

    
      
        
        

      

      
        98

        
          

        

      

      
        
        

      

    

     

    (G)  to
      the
      Class M8 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate of the Class Principal Amounts of such Class, the Senior Certificates
      and the Class M1, Class M2, Class M3, Class M4, Class M5, Class M6 and Class
      M7
      Certificates, after giving effect to distributions on such Distribution Date,
      equals the M8 Target Amount; 

     

    (H)  to
      the
      Class M9 Certificates, in reduction of their Class Principal Amount, until
      the
      aggregate of the Class Principal Amounts of such Class, the Senior Certificates
      and the Class M1, Class M2, Class M3, Class M4, Class M5, Class M6, Class M7
      and
      Class M8 Certificates, after giving effect to distributions on such Distribution
      Date, equals the M9 Target Amount; and

     

    (I)  to
      the
      Class B Certificates, in reduction of their Class Principal Amount, until the
      aggregate of the Class Principal Amounts of such Class and the Senior
      Certificates and the Class M1, Class M2, Class M3, Class M4, Class M5, Class
      M6,
      Class M7, Class M8 and Class M9 Certificates, after giving effect to
      distributions on such Distribution Date, equals the B Target
      Amount;

     

    (iii)
        to
      each
      Class of Subordinate Certificates, in accordance with the Subordinate Priority,
      any Deferred Amount for each such Class and such Distribution Date;

     

    (iv)
        to
      the
      Basis Risk Reserve Fund, an amount equal to the Basis Risk Payment for such
      Distribution Date, and then from the Basis Risk Reserve Fund, in the following
      order of priority:

     

    (A)  concurrently,
      in proportion to their respective Basis Risk Shortfalls and Unpaid Basis Risk
      Shortfalls, to each Class of Senior Certificates, any applicable Basis Risk
      Shortfall and Unpaid Basis Risk Shortfall for each such Class and such
      Distribution Date;

     

    (B)  to
      each
      Class of Subordinate Certificates, in accordance with the Subordinate Priority,
      any applicable Basis Risk Shortfall and Unpaid Basis Risk Shortfall for each
      such Class and such Distribution Date; and

     

    (C)  to
      the
      Swap Account, for application pursuant to Section 5.02(f)(vi), any amounts
      remaining in the Basis Risk Reserve Fund, after taking into account
      distributions pursuant to clauses (A) and (B) above, in excess of the
      Required Reserve Fund Deposit for such Distribution Date;

     

    (v)
        on
      the
      Distribution Date occurring in September 2009 (or the next succeeding
      Distribution Date on which sufficient funds are available in the Certificate
      Account to make such distributions to the Class P Certificates), $100 to the
      Class P Certificates in payment of its Class P Principal Amount; 

     

    (vi)
        to
      the
      Swap Account, the Class X Distributable Amount (less any Basis Risk Payment
      for
      such Distribution Date) for such Distribution Date, for application pursuant
      to
      Section 5.02(g)(x) and Section 5.02(g)(xi) below; and

     

    
      
        
        

      

      
        99

        
          

        

      

      
        
        

      

    

     

    (vii)
        to
      the
      Class LT-R Certificate, any amount remaining on such date after application
      pursuant to clauses (i) through (vi) above to the extent attributable to REMIC
      1, and otherwise to the Class R Certificates.

     

    (g)  On
      each
      Distribution Date (or, with respect to clauses (i), (ii), (ix) and (x) below,
      on
      the related Swap Payment Date), the Trustee shall distribute the Swap Amount
      for
      such date as follows:

     

    (i)
        to
      the
      Swap Counterparty, any Net Swap Payment owed to the Swap Counterparty pursuant
      to the Swap Agreement for such Swap Payment Date;

     

    (ii)
        to
      the
      Swap Counterparty, any Swap Termination Payment (not due to a Swap Counterparty
      Trigger Event) owed to the Swap Counterparty pursuant to the Swap Agreement
      for
      such Swap Payment Date;

     

    (iii)
        concurrently,
      to the Senior Certificates, Current Interest and any Carryforward Interest
      for
      each such Class and such Distribution Date, to the extent unpaid (any shortfall
      in Current Interest and Carryforward Interest to be allocated among such Classes
      in proportion to the amount of Current Interest and Carryforward Interest that
      would have otherwise been distributable thereon);

     

    (iv)
        to
      the
      Subordinate Certificates, in accordance with the Subordinate Priority, Current
      Interest and any Carryforward Interest for each such Class and such Distribution
      Date to the extent unpaid; 

     

    (v)
        to
      the
      LIBOR Certificates, any amount necessary to maintain the Targeted
      Overcollateralization Amount as specified in Sections 5.02(f)(i) and (ii) above
      for such Distribution Date, for application pursuant to the priorities set
      forth
      in such Sections, after giving effect to distributions pursuant to such
      Sections; provided,
      however,
      that the
      sum of all such amounts distributed pursuant to this Section 5.02(g)(v) and
      all
      amounts distributed pursuant to Section 5.02(g)(vi), Section 5.02(h)(iii) and
      Section 5.02(h)(iv) shall not exceed the aggregate amount of cumulative Realized
      Losses incurred from the Cut-off Date through the last day of the related
      Collection Period less any amounts previously distributed pursuant to this
      Section 5.02(g)(v) and Section 5.02(g)(vi) together with any amounts previously
      distributed pursuant to Section 5.02(h)(iii) and Section
      5.02(h)(iv);

     

    (vi)
        to
      the
      Subordinate Certificates, in accordance with the Subordinate Priority, any
      Deferred Amount for each such Class and such Distribution Date, to the extent
      unpaid; provided,
      however,
      that the
      sum of all such amounts distributed pursuant to this Section 5.02(g)(vi) and
      all
      amounts distributed pursuant to Section 5.02(g)(v), Section 5.02(h)(iii) and
      Section 5.02(h)(iv) shall not exceed the aggregate amount of cumulative Realized
      Losses incurred from the Cut-off Date through the last day of the related
      Collection Period less any amounts previously distributed pursuant to this
      Section 5.02(g)(vi) and Section 5.02(g)(v) together with any amounts previously
      distributed pursuant to Section 5.02(h)(iii) and Section
      5.02(h)(iv);

     

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

     

    (vii)
        to
      the
      Senior Certificates, any Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls
      for each such Class for such Distribution Date, for application pursuant to
      the
      priorities set forth in Section 5.02(f)(iv)(A), to the extent
      unpaid;

     

    (viii)
        to
      the
      Subordinate Certificates, any Basis Risk Shortfalls and Unpaid Basis Risk
      Shortfalls for each such Class and for such Distribution Date, for application
      pursuant to the priorities set forth Section 5.02(f)(iv)(B), to the extent
      unpaid;

     

    (ix)
        if
      applicable, to the Swap Termination Receipts Account for application to the
      purchase of a replacement swap agreement pursuant to Section
      5.09(a);

     

    (x)
        to
      the
      Swap Counterparty, any unpaid Swap Termination Payment due to a Swap
      Counterparty Trigger Event owed to the Swap Counterparty pursuant to the Swap
      Agreement;

     

    (xi)
        to
      the
      Class X Certificates, any remaining amount deposited into the Swap Account
      pursuant to Section 5.02(f)(iv)(C) or Section 5.02(f)(vi) and any remaining
      Swap
      Amount; and

     

    (xii)
        on
      the
      first Distribution Date on which the Class Principal Amount of each Class of
      Certificates has been reduced to zero, to the Class X Certificates, all amounts
      remaining in the Swap Account.

     

    (h)  On
      each
      Distribution Date, the Trustee shall distribute the Interest Rate Cap Amount
      for
      such date after making all distributions under Section 5.02(g) above as
      follows:

     

    (i)
        concurrently,
      to the Senior Certificates, Current Interest and any Carryforward Interest
      for
      each such Class for such Distribution Date, to the extent unpaid pursuant to
      Section 5.02(g)(iii) above (any shortfall in Current Interest and Carryforward
      Interest to be allocated among such Classes in proportion to the amount of
      Current Interest and Carryforward Interest that would have otherwise been
      distributable thereon);

     

    (ii)
        to
      the
      Subordinate Certificates, in accordance with the Subordinate Priority, Current
      Interest and any Carryforward Interest for such Class and such Distribution
      Date
      to the extent unpaid;

     

    (iii)
        to
      the
      LIBOR Certificates, any amount necessary to maintain the Targeted
      Overcollateralization Amount specified in Section 5.02(f)(i) and Section
      5.02(f)(ii) above for such Distribution Date, for application pursuant to the
      priorities set forth in such Sections; provided,
      however,
      that
      the sum of all such amounts distributed pursuant to this Section 5.02(h)(iii)
      and all amounts distributed pursuant to Section 5.02(h)(iv), Section 5.02(g)(v)
      and Section 5.02(g)(vi) shall not exceed the aggregate amount of cumulative
      Realized Losses incurred from the Cut-off Date through the last day of the
      related Collection Period less any amounts previously distributed pursuant
      to
      this Section 5.02(h)(iii) and Section 5.02(h)(iv) together with any amounts
      previously distributed pursuant to Section 5.02(g)(v) and Section
      5.02(g)(vi);

     

    
      
        
        

      

      
        101

        
          

        

      

      
        
        

      

    

     

    (iv)
        to
      the
      Subordinate Certificates, in accordance with the Subordinate Priority, any
      Deferred Amount for each such Class and such Distribution Date to the extent
      unpaid; provided,
      however,
      that the
      sum of all such amounts distributed pursuant to this Section 5.02(h)(iv) and
      all
      amounts distributed pursuant to Section 5.02(h)(iii), Section 5.02(g)(v) and
      Section 5.02(g)(vi) shall not exceed the aggregate amount of cumulative Realized
      Losses incurred from the Cut-off Date through the last day of the related
      Collection Period less any amounts previously distributed pursuant to this
      Section 5.02(h)(iv) and Section 5.02(h)(iii) together with any amounts
      previously distributed pursuant to Sections 5.02(g)(v) and Section
      5.02(g)(vi);

     

    (v)
        to
      the
      Senior Certificates, any Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls
      for each such Class and for such Distribution Date, for application pursuant
      to
      the priorities set forth in Section 5.02(f)(iv)(A), to the extent
      unpaid;

     

    (vi)
        to
      the
      Subordinate Certificates, any Basis Risk Shortfalls and Unpaid Basis Risk
      Shortfalls for each such Class and for such Distribution Date, for application
      pursuant to the priorities set forth in Section 5.02(f)(iv)(B), to the extent
      unpaid; 

     

    (vii)
        to
      the
      Cap Termination Receipts Account for application to the purchase of a
      replacement cap agreement pursuant to Section 5.09(b); and

     

    (viii)
        to
      the
      Class X Certificates, any remaining Interest Rate Cap Amount.

     

    (i)  On
      each
      Distribution Date, an amount equal to the aggregate of all Prepayment Premiums
      collected during the preceding Prepayment Period shall be distributed to the
      Class P Certificates.

     

    (j)  On
      each
      Distribution Date occurring after a Section 7.01(c) Purchase Event, but on
      or
      prior to a Trust Fund Termination Event, the Trustee (or the Paying Agent on
      behalf of the Trustee), shall withdraw from the Certificate Account the Total
      Distribution Amount (to the extent such amount is on deposit in the Certificate
      Account), and shall allocate such amount to the interests issued in respect
      of
      the Lower Tier REMIC 1 Uncertificated Regular Interests created pursuant to
      this
      Agreement and shall distribute such amount first,
      for
      deposit into the Swap Account, an amount equal to any Net Swap Payment or Swap
      Termination Payment owed to the Swap Counterparty on the related Swap Payment
      Date, second,
      to the
      Credit Risk Manager, the Credit Risk Manager’s Fee, third,
      to the
      Trustee, any amounts reimbursable pursuant to Section 4.04(b)(i) and not
      previously reimbursed to the Trustee and fourth,
      to the
      LTURI-holder, any remaining Total Distribution Amount to the extent payable
      on
      the Lower Tier REMIC 1 Uncertificated Regular Interests as provided in the
      Preliminary Statement, and fifth,
      to the
      Class LT-R Certificates.

     

    (k)  On
      each
      Swap Payment Date occurring after a Section 7.01(c) Purchase Event but on or
      prior to a Trust Fund Termination Event, the Trustee shall distribute the Swap
      Amount for such date first,
      to the
      Swap Counterparty to pay any Net Swap Payment owed to the Swap Counterparty
      pursuant to the Swap Agreement for such Swap Payment Date; second,
      to the
      Swap Counterparty, to pay any Swap Termination Payment owed to the Swap
      Counterparty pursuant to the Swap Agreement for such Swap Payment Date,
third,
      if
      applicable, to the Swap Termination Receipts Account, for application to the
      purchase of a replacement swap agreement pursuant to Section 5.09(a); and
fourth,
      any
      remaining amount of Swap Amount, to the LTURI-holder.

     

    
      
        
        

      

      
        102

        
          

        

      

      
        
        

      

    

     

    (l)  On
      each
      Distribution Date occurring after a Section 7.01(c) Purchase Event but on or
      prior to a Trust Fund Termination Event, the Trustee shall distribute any
      amounts received from the Cap Counterparty under the Interest Rate Cap Agreement
      for such Distribution Date first,
      to the
      Cap Termination Receipts Account, for application to the purchase of a
      replacement cap agreement pursuant to Section 5.09(b); and second,
      any
      remaining amount from the Cap Counterparty under the Interest Rate Cap
      Agreement, to the LTURI-holder. 

     

    (m)  On
      each
      Distribution Date, an amount equal to the aggregate FPD Premiums collected
      during the preceding Prepayment Period shall be distributed to the Class X
      Certificates.

     

    
      
        
          	
                  Section
                    5.03 

                	
                  Allocation
                    of Losses. 

                

        

      

    

     

    On
      each
      Distribution Date, the Class Principal Amounts of the Subordinate Certificates
      will be reduced by the amount of any Applied Loss Amount for such date, in
      the
      following order of priority:

     

    (i)
        to
      the
      Class B Certificates, until the Class Principal Amount thereof has been reduced
      to zero;

     

    (ii)
        to
      the
      Class M9 Certificates, until the Class Principal Amount thereof has been reduced
      to zero;

     

    (iii)
        to
      the
      Class M8 Certificates, until the Class Principal Amount thereof has been reduced
      to zero;

     

    (iv)
        to
      the
      Class M7 Certificates, until the Class Principal Amount thereof has been reduced
      to zero;

     

    (v)
        to
      the
      Class M6 Certificates, until the Class Principal Amount thereof has been reduced
      to zero;

     

    (vi)
        to
      the
      Class M5 Certificates, until the Class Principal Amount thereof has been reduced
      to zero;

     

    (vii)
        to
      the
      Class M4 Certificates, until the Class Principal Amount thereof has been reduced
      to zero;

     

    (viii)
        to
      the
      Class M3 Certificates, until the Class Principal Amount thereof has been reduced
      to zero; 

     

    (ix)
        to
      the
      Class M2 Certificates, until the Class Principal Amount thereof has been reduced
      to zero; and

     

    
      
        
        

      

      
        103

        
          

        

      

      
        
        

      

    

     

    (x)
        to
      the
      Class M1 Certificates, until the Class Principal Amount thereof has been reduced
      to zero.

    
      
         

        
          	
                  Section
                    5.04

                	
                  Advances
                    by Master Servicer, Servicers and Trustee.

                

        

      

    

     

    (a)  Subject
      to Section 9.07, Advances shall be made in respect of each Master Servicer
      Remittance Date as provided herein. If, on any Determination Date, any Servicer
      determines that any Scheduled Payments (or in the case of Simple Interest
      Mortgage Loans, the amount of any scheduled interest payments) due during the
      related Collection Period (other than Balloon Payments) have not been received,
      such Servicer shall advance such amount to the extent provided in the applicable
      Servicing Agreement. If any Servicer fails to remit Advances required to be
      made
      under the applicable Servicing Agreement, the Master Servicer shall itself
      make,
      or shall cause the successor servicer to make, such Advance on the Master
      Servicer Remittance Date immediately following such Determination Date. If
      the
      Master Servicer determines that an Advance is required, it shall on the Master
      Servicer Remittance Date immediately following such Determination Date either
      (i) remit to the Trustee from its own funds (or funds advanced by the applicable
      Servicer) for deposit in the Certificate Account immediately available funds
      in
      an amount equal to such Advance, (ii) cause to be made an appropriate entry
      in
      the records of the Collection Account that funds in such account being held
      for
      future distribution or withdrawal have been, as permitted by this Section 5.04,
      used by the Master Servicer to make such Advance, and remit such immediately
      available funds to the Trustee for deposit in the Certificate Account or (iii)
      make Advances in the form of any combination of clauses (i) and (ii) aggregating
      the amount of such Advance. Any funds being held in the Collection Account
      for
      future distribution to Certificateholders and so used shall be replaced by
      the
      Master Servicer from its own funds by remittance to the Trustee for deposit
      in
      the Certificate Account on or before any future Master Servicer Remittance
      Date
      to the extent that funds in the Certificate Account on such Master Servicer
      Remittance Date shall be less than payments to Certificateholders required
      to be
      made on the related Distribution Date. The Master Servicer and each Servicer
      shall be entitled to be reimbursed from the Collection Account for all Advances
      made by it as provided in Section 4.02. Notwithstanding anything to the contrary
      herein, in the event the Master Servicer determines in its reasonable judgment
      that an Advance is non-recoverable, the Master Servicer shall be under no
      obligation to make such Advance.

     

    (b)  In
      the
      event that the Master Servicer or any Servicer fails for any reason to make
      an
      Advance required to be made pursuant to this Section 5.04 on or before the
      Master Servicer Remittance Date, the Trustee, as successor master servicer
      pursuant to Section 6.14, shall, on or before the related Distribution Date,
      deposit in the Certificate Account an amount equal to the excess of (a) Advances
      required to be made by the Master Servicer or the Servicers that would have
      been
      deposited in such Certificate Account over (b) the amount of any Advance made
      by
      the Master Servicer or any Servicer with respect to such Distribution Date;
      provided,
      however,
      that the
      Trustee shall be required to make such Advance only if it is not prohibited
      by
      law from doing so and it has determined that such Advance would be recoverable
      from amounts to be received with respect to such Mortgage Loan, including late
      payments, Liquidation Proceeds, Insurance Proceeds, or otherwise. The Trustee
      shall be entitled to be reimbursed from the Certificate Account for Advances
      made by it pursuant to this Section 5.04 as if it were the Master
      Servicer.

     

    
      
        
        

      

      
        104

        
          

        

      

      
        
        

      

    

     

    
      
         

        
          	
                  Section
                    5.05

                	
                  Compensating
                    Interest Payments. 

                

        

      
  

    The
      Master Servicer shall not be responsible for making any Compensating Interest
      Payments not made by the Servicers. Any Compensating Interest Payments made
      by
      the Servicers shall be a component of the Interest Remittance
      Amount.

     

    
      
        
          	
                  Section
                    5.06

                	
                  Basis
                    Risk Reserve Fund. 

                

        

      

    

     

    (a)  On
      the
      Closing Date, the Trustee shall establish and maintain in its name, in trust
      for
      the benefit of the Certificateholders, a Basis Risk Reserve Fund, into which
      Lehman Brothers Holdings Inc. (“LBH”) shall initially deposit $1,000. The Basis
      Risk Reserve Fund shall be an Eligible Account, and funds on deposit therein
      shall be held separate and apart from, and shall not be commingled with, any
      other monies, including, without limitation, other monies of the Trustee held
      pursuant to this Agreement.

     

    (b)  The
      Trustee shall make withdrawals from the Basis Risk Reserve Fund to make
      distributions pursuant to Section 5.02(f)(iv) hereof in accordance with the
      Distribution Date reports.

     

    (c)  Funds
      in
      the Basis Risk Reserve Fund shall be invested in Eligible Investments. The
      Class
      X Certificates shall evidence ownership of the Basis Risk Reserve Fund for
      federal income tax purposes and LBH on behalf of the Holder thereof shall direct
      the Trustee, in writing, as to investment of amounts on deposit therein. LBH
      shall be liable for any losses incurred on such investments. In the absence
      of
      written instructions from LBH as to investment of funds on deposit in the Basis
      Risk Reserve Fund, such funds shall be invested in the U.S. Bank First American
      Prime Obligation Fund. The Basis Risk Reserve Fund will be terminated after
      the
      earlier of (A) a Section 7.01(c) Purchase Event or (B) a Trust Fund Termination
      Event and any funds remaining in such fund upon such termination shall be
      released to Holders of the Class X Certificates.

     

    
      
        
          	
                  Section
                    5.07 

                	
                  Supplemental
                    Interest Trust. 

                

        

      

    

     

    (a)  A
      separate trust is hereby established (the “Supplemental Interest Trust”), the
      corpus of which shall be held by the Trustee, in trust, for the benefit of
      the
      Certificateholders. The Trustee, as trustee of the Supplemental Interest Trust,
      shall establish an account (the “Swap Account”), into which LBH shall initially
      deposit $1,000. The Swap Account shall be an Eligible Account, and funds on
      deposit therein shall be held separate and apart from, and shall not be
      commingled with, any other monies, including, without limitation, other monies
      of the Trustee held pursuant to this Agreement. 

     

    (b)  In
      addition, the Trustee, as trustee of the Supplemental Interest Trust, shall
      establish an account (the “Interest Rate Cap Account”), into which LBH shall
      initially deposit $1,000. The Interest Rate Cap Account shall be an Eligible
      Account, and funds on deposit therein shall be held separate and apart from,
      and
      shall not be commingled with, any other monies, including, without limitation,
      other monies of the Trustee held pursuant to this Agreement.

     

    
      
        
        

      

      
        105

        
          

        

      

      
        
        

      

    

     

    (c)  The
      Trustee shall deposit into the Swap Account any Net Swap Payment required
      pursuant to Sections 5.02(b), (c), (e) and (j), any Swap Termination Payment
      required pursuant to Sections 5.02(b), (c), (e) and (j), any amounts received
      from the Swap Counterparty under the Swap Agreement and any amounts distributed
      from the Basis Risk Reserve Fund required pursuant to Sections 5.02(f)(iv)(C)
      and (f)(vi), and shall distribute from the Swap Account any Net Swap Payment
      required pursuant to Section 5.02(g)(i) or Section 5.02(k), as applicable,
      or
      Swap Termination Payment required pursuant to Section 5.02(g)(ii), Section
      5.02(g)(x) or Section 5.02(k), as applicable. 

     

    (d)  The
      Trustee shall deposit into the Interest Rate Cap Account any amounts received
      from the Cap Counterparty under the Interest Rate Cap Agreement.

     

    (e)  Funds
      in
      the Swap Account shall be invested in Eligible Investments. Any earnings on
      such
      amounts shall be distributed on each Distribution Date pursuant to Section
      5.02(g) or Section 5.02(k), as applicable. The Class X Certificates shall
      evidence ownership of the Swap Account for federal income tax purposes and
      the
      Holder thereof shall direct the Trustee, in writing, as to investment of amounts
      on deposit therein. LBH shall be liable for any losses incurred on such
      investments. In the absence of written instructions from the Class X
      Certificateholders as to investment of funds on deposit in the Swap Account,
      such funds shall be invested in the First American Government Obligations Fund
      or comparable investment vehicle. Any amounts on deposit in the Swap Account
      in
      excess of the Swap Amount on any Distribution Date shall be held for
      distribution pursuant to Section 5.02(g) or Section 5.02(k), as applicable,
      on
      the following Distribution Date.

     

    (f)  Funds
      in
      the Interest Rate Cap Account shall be invested in Eligible Investments. Any
      earnings on such amounts shall be distributed on each Distribution Date pursuant
      to Section 5.02(h) or Section 5.02(l), as applicable. The Class X Certificates
      shall evidence ownership of the Interest Rate Cap Account for federal income
      tax
      purposes and the Holder thereof shall direct the Trustee, in writing, as to
      investment of amounts on deposit therein. LBH shall be liable for any losses
      incurred on such investments. In the absence of written instructions from the
      Class X Certificateholders as to investment of funds on deposit in the Interest
      Rate Cap Account, such funds shall be invested in the First American Government
      Obligations Fund or comparable investment vehicle. Any amounts on deposit in
      the
      Interest Rate Cap Account in excess of the Interest Rate Cap Amount on any
      Distribution Date shall be held for distribution pursuant to Section 5.02(h)
      or
      Section 5.02(l), as applicable, on the following Distribution Date.

     

    (g)  Upon
      termination of the Trust Fund, any amounts remaining in the Swap Account shall
      be distributed pursuant to the priorities set forth in Section 5.02(g) or
      Section 5.02(k), as applicable.

     

    (h)  Upon
      termination of the Trust Fund, any amounts remaining in the Interest Rate Cap
      Account shall be distributed pursuant to the priorities set forth in Section
      5.02(h) or Section 5.02(l), as applicable.

     

    (i)  It
      is the
      intention of the parties hereto that, for federal and state income and state
      and
      local franchise tax purposes, the Supplemental Interest Trust be disregarded
      as
      an entity separate from the holder of the Class X Certificates unless and until
      the date when either (a) there is more than one Class X Certificateholder or
      (b)
      any Class of Certificates in addition to the Class X Certificates is
      recharacterized as an equity interest in the Supplemental Interest Trust for
      federal income tax purposes. The Trustee shall not be responsible for any entity
      level tax reporting for the Supplemental Interest Trust.

     

    (j)  To
      the
      extent that the Supplemental Interest Trust is determined to be a separate
      legal
      entity from the Trustee, any obligation of the Trustee under the Swap Agreement
      or the Interest Rate Cap Agreement shall be deemed to be an obligation of the
      Supplemental Interest Trust.

     

    
      
        
        

      

      
        106

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                  Section
                    5.08

                	
                  Rights
                    of Swap Counterparty. 

                

        

      

    

     

    (a)  The
      Swap
      Counterparty shall be deemed a third-party beneficiary of this Agreement to
      the
      same extent as if it were a party hereto and shall have the right, upon
      designation of an “Early Termination Date” (as defined in the Swap Agreement),
      to enforce its rights under this Agreement, which rights include but are not
      limited to the obligation of the Trustee (A) to deposit any Net Swap Payment
      required pursuant to Sections 5.02(b), (c), (e) and (j), and any Swap
      Termination Payment required pursuant to Sections 5.02(b), (c), (e) and (j),
      into the Swap Account, (B) to deposit any amounts from the Basis Risk Reserve
      Fund required pursuant to Sections 5.02(f)(iv)(C) and Section 5.02(f)(vi) into
      the Swap Account, (C) to pay any Net Swap Payment required pursuant to Section
      5.02(g)(i) or Section 5.02(k), as applicable, or Swap Termination Payment
      required pursuant to Sections 5.02(g)(ii), Section 5.02(g)(x), or Section
      5.02(k), as applicable to the Swap Counterparty and (D) to establish and
      maintain the Swap Account, to make such deposits thereto, investments therein
      and distributions therefrom as are required pursuant to Section 5.07. For the
      protection and enforcement of the provisions of this Section the Swap
      Counterparty shall be entitled to such relief as can be given either at law
      or
      in equity.

    
      
         

        
          	
                  Section
                    5.09

                	
                  Termination
                    Receipts.

                

        

      

    

     

    (a)  In
      the
      event of an “Early Termination Event” as defined under the Swap Agreement, (i)
      any Swap Termination Payment made by the Swap Counterparty to the Swap Account
      and paid pursuant to Section 5.02(g)(ix), Section 5.02(j) or Section 5.02(k),
      as
      applicable (“Termination Receipts”) will be deposited in a segregated
      non-interest bearing account which shall be an Eligible Account established
      by
      the Trustee (the “Swap Termination Receipts Account”) and (ii) any amounts
      received from a replacement Swap Counterparty (“Swap Replacement Receipts”) will
      be deposited in a segregated non-interest bearing account which shall be an
      Eligible Account established by the Trustee (the “Swap Replacement Receipts
      Account”). The Trustee shall invest, or cause to be invested, funds held in the
      Swap Termination Receipts Account and the Swap Replacement Receipts Account
      in
      time deposits of the Trustee as permitted by clause (ii) of the definition
      of
      Eligible Investments or as otherwise directed in writing by a majority of the
      Certificateholders. All such investments must be payable on demand or mature
      on
      a Swap Payment Date, a Distribution Date or such other date as directed by
      the
      Certificateholders. All such Eligible Investments will be made in the name
      of
      the Trustee of the Supplemental Interest Trust (in its capacity as such) or
      its
      nominee. All income and gain realized from any such investment shall be
      deposited in the Swap Termination Receipts Account or the Swap Replacement
      Receipts Account, as applicable, and all losses, if any, shall be borne by
      the
      related account. 

     

    
      
        
        

      

      
        107

        
          

        

      

      
        
        

      

    

     

    Unless
      otherwise permitted by the Rating Agencies as evidenced in a written
      confirmation, the Depositor shall arrange for replacement Swap Agreement(s)
      and
      the Trustee shall upon written direction of, and with the assistance and
      cooperation of the Depositor, use amounts on deposit in the Swap Termination
      Receipts Account, if necessary, to enter into replacement Swap Agreement(s)
      which shall be executed and delivered by the Trustee on behalf of the
      Supplemental Interest Trust upon receipt of written confirmation from each
      Rating Agency that such replacement Swap Agreement(s) will not result in the
      reduction or withdrawal of the rating of any outstanding Class of Certificates
      with respect to which it is a Rating Agency. 

     

    Amounts
      on deposit in the Swap Replacement Receipts Account shall be held for the
      benefit of the related Swap Counterparty and paid to such Swap Counterparty
      if
      the Supplemental Interest Trust is required to make a payment to such Swap
      Counterparty following an event of default or termination event with respect
      to
      the Supplemental Interest Trust under the related Swap Agreement. Any amounts
      not so applied shall, following the termination or expiration of such Swap
      Agreement, be paid to the Class X Certificates.

     

    (b)  In
      the
      event of an “Early Termination Event” as defined under the Interest Rate Cap
      Agreement, (i) any Cap Termination Payment made by the Cap Counterparty to
      the
      Interest Rate Cap Account and paid pursuant to Section 5.02(h)(vii) (“Cap
      Termination Receipts”) shall be deposited in a segregated non-interest bearing
      account which shall be an Eligible Account established by the Trustee (the
“Cap
      Termination Receipts Account”) and (ii) any amounts received from a replacement
      Cap Counterparty (“Cap Replacement Receipts”) will be deposited in a segregated
      non-interest bearing account which shall be an Eligible Account established
      by
      the Trustee (the “Cap Replacement Receipts Account”). The Trustee shall invest,
      or cause to be invested, funds held in the Cap Termination Receipts Account
      in
      time deposits of the Trustee as permitted by clause (ii) of the definition
      of
      Eligible Investments or as otherwise directed in writing by a majority of the
      Certificateholders. All such investments must be payable on demand or mature
      on
      a Interest Rate Cap Payment Date, a Distribution Date or such other date as
      directed by the Certificateholders. All such Eligible Investments shall be
      made
      in the name of the Trustee of the Supplemental Interest Trust (in its capacity
      as such) or its nominee. All income and gain realized from any such investment
      shall be deposited in the Cap Termination Receipts Account and all losses,
      if
      any, shall be borne by such account. 

     

    Unless
      otherwise permitted by the Rating Agencies as evidenced in a written
      confirmation, the Depositor shall prepare the replacement Interest Rate Cap
      Agreement(s) and the Trustee shall promptly, with the assistance and cooperation
      of the Depositor, use the funds on deposit in the Cap Termination Receipts
      Account, if needed, to enter into replacement Interest Rate Cap Agreement(s)
      which shall be executed and delivered by the Trustee on behalf of the
      Supplemental Interest Trust upon receipt of written confirmation from each
      Rating Agency that such replacement Interest Rate Cap Agreement(s) will not
      result in the reduction or withdrawal of the rating of any outstanding Class
      of
      Certificates with respect to which it is a Rating Agency. 

     

    
      
        
        

      

      
        108

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VI  

    CONCERNING
      THE TRUSTEE; EVENTS OF DEFAULT

     

    
      
        
          	
                  Section
                    6.01

                	
                  Duties
                    of Trustee. 

                

        

      
  

    (a)  The
      Trustee, except during the continuance of an Event of Default of which a
      Responsible Officer of the Trustee shall have actual knowledge undertakes to
      perform such duties and only such duties as are specifically set forth in this
      Agreement. Any permissive right of the Trustee provided for in this Agreement
      shall not be construed as a duty of the Trustee. If an Event of Default (of
      which a Responsible Officer of the Trustee shall have actual knowledge) has
      occurred and has not otherwise been cured or waived, the Trustee shall exercise
      such of the rights and powers vested in it by this Agreement and use the same
      degree of care and skill in their exercise as a prudent Person would exercise
      or
      use under the circumstances in the conduct of such Person’s own affairs, unless
      the Trustee is acting as Master Servicer, in which case it shall use the same
      degree of care and skill as the Master Servicer hereunder.

     

    (b)  The
      Trustee, upon receipt of all resolutions, certificates, statements, opinions,
      reports, documents, orders or other instruments furnished to the Trustee which
      are specifically required to be furnished pursuant to any provision of this
      Agreement, shall examine them to determine whether they are on their face in
      the
      form required by this Agreement; provided,
      however,
      that
      the Trustee shall not be responsible for the accuracy or content of any such
      resolution, certificate, statement, opinion, report, document, order or other
      instrument furnished by the Master Servicer, any Servicer, the Swap
      Counterparty, the Cap Counterparty or the Credit Risk Manager to the Trustee
      pursuant to this Agreement, and shall not be required to recalculate or verify
      any numerical information furnished to the Trustee pursuant to this Agreement.
      Subject to the immediately preceding sentence, if any such resolution,
      certificate, statement, opinion, report, document, order or other instrument
      is
      found not to conform on its face to the form required by this Agreement in
      a
      material manner the Trustee shall notify the Person providing such resolutions,
      certificates, statements, opinions, reports or other documents of the
      non-conformity, and if the instrument is not corrected to the Trustee’s
      satisfaction, the Trustee will provide notice thereof to the Certificateholders
      and any NIMS Insurer and will, at the expense of the Trust Fund, which expense
      shall be reasonable given the scope and nature of the required action, take
      such
      further action as directed by the Certificateholders and any NIMS
      Insurer.

     

    (c)  The
      Trustee shall not have any liability arising out of or in connection with this
      Agreement, except for its negligence or willful misconduct. No provision of
      this
      Agreement shall be construed to relieve the Trustee from liability for its
      own
      negligent action, its own negligent failure to act or its own willful
      misconduct; provided, however, that:

     

    (i)
        The
      Trustee shall not be liable with respect to any action taken, suffered or
      omitted to be taken by it in good faith in accordance with the direction or
      with
      the consent of Holders as provided in Section 6.18 hereof;

     

    (ii)
        For
      all
      purposes under this Agreement, the Trustee shall not be deemed to have notice
      of
      any Event of Default (other than resulting from a failure by the Master Servicer
      to (i) remit funds (or make Advances) or (ii) to furnish information to the
      Trustee when required to do so) unless a Responsible Officer of the Trustee
      has
      actual knowledge thereof or unless written notice of any event which is in
      fact
      such a default is received by the Trustee at the Corporate Trust Office, and
      such notice references the Holders of the Certificates and this
      Agreement;

     

    
      
        
        

      

      
        109

        
          

        

      

      
        
        

      

    

     

    (iii)
        No
      provision of this Agreement shall require the Trustee to expend or risk its
      own
      funds or otherwise incur any 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 for believing that repayment of such funds or
      adequate indemnity against such risk or liability is not reasonably assured
      to
      it; and none of the provisions contained in this Agreement shall in any event
      require the Trustee to perform, or be responsible for the manner of performance
      of, any of the obligations of the Master Servicer under this
      Agreement;

     

    (iv)
        The
      Trustee shall not be responsible for any act or omission of the Master Servicer,
      any Servicer, the Credit Risk Manager, the Depositor, the Seller, the Swap
      Counterparty, the Cap Counterparty or the Custodian.

     

    (d)  The
      Trustee shall have no duty hereunder with respect to any complaint, claim,
      demand, notice or other document it may receive or which may be alleged to
      have
      been delivered to or served upon it by the parties as a consequence of the
      assignment of any Mortgage Loan hereunder; provided,
      however,
      that
      the Trustee shall promptly remit to the Master Servicer upon receipt any such
      complaint, claim, demand, notice or other document (i) which is delivered to
      the
      Corporate Trust Office of the Trustee and makes reference to this series of
      Certificate or this Agreement, (ii) of which a Responsible Officer has actual
      knowledge, and (iii) which contains information sufficient to permit the Trustee
      to make a determination that the real property to which such document relates
      is
      a Mortgaged Property.

     

    (e)  The
      Trustee shall not be personally liable with respect to any action taken,
      suffered or omitted to be taken by it in good faith in accordance with the
      direction of any NIMS Insurer or the Certificateholders of any Class holding
      Certificates which evidence, as to such Class, Percentage Interests aggregating
      not less than 25% as to the time, method and place of conducting any proceeding
      for any remedy available to the Trustee or exercising any trust or power
      conferred upon the Trustee under this Agreement.

     

    (f)  The
      Trustee shall not be required to perform services under this Agreement, or
      to
      expend or risk its own funds or otherwise incur financial liability for the
      performance of any of its duties hereunder or the exercise of any of its rights
      or powers if there is reasonable ground for believing that the timely payment
      of
      its fees and expenses or the repayment of such funds or adequate indemnity
      against such risk or liability is not reasonably assured to it, and none of
      the
      provisions contained in this Agreement shall in any event require the Trustee
      to
      perform, or be responsible for the manner of performance of, any of the
      obligations of the Master Servicer or any Servicer under this Agreement or
      any
      Servicing Agreement except during such time, if any, as the Trustee shall be
      the
      successor to, and be vested with the rights, duties, powers and privileges
      of,
      the Master Servicer in accordance with the terms of this Agreement.

     

    
      
        
        

      

      
        110

        
          

        

      

      
        
        

      

    

     

    (g)  The
      Trustee shall not be held liable by reason of any insufficiency in the
      Collection Account resulting from any investment loss on any Eligible Investment
      included therein (except to the extent that the Trustee is the obligor and
      has
      defaulted thereon).

     

    (h)  The
      Trustee shall not have any duty (A) to see to any recording, filing, or
      depositing of this Agreement or any agreement referred to herein or any
      financing statement or continuation statement evidencing a security interest,
      or
      to see to the maintenance of any such recording or filing or depositing or
      to
      any rerecording, refiling or redepositing of any thereof, (B) to see to any
      insurance or claim under any Insurance Policy, and (C) to see to the payment
      or
      discharge of any tax, assessment, or other governmental charge or any lien
      or
      encumbrance of any kind owing with respect to, assessed or levied against,
      any
      part of the Trust Fund or the Supplemental Interest Trust other than from funds
      available in the Collection Account or the Certificate Account, as applicable.
      Except as otherwise provided herein, the Trustee shall not have any duty to
      confirm or verify the contents of any reports or certificates of the Master
      Servicer, any Servicer, the Swap Counterparty, the Cap Counterparty or the
      Credit Risk Manager delivered to the Trustee pursuant to this Agreement believed
      by the Trustee to be genuine and to have been signed or presented by the proper
      party or parties.

     

    (i)  The
      Trustee shall not be liable in its individual capacity for an error of judgment
      made in good faith by a Responsible Officer or other officers of the Trustee
      unless it shall be proved that the Trustee was negligent in ascertaining the
      pertinent facts.

     

    (j)  Notwithstanding
      anything in this Agreement to the contrary, the Trustee shall not be liable
      for
      special, indirect or consequential losses or damages of any kind whatsoever
      (including, but not limited to, lost profits), even if the Trustee has been
      advised of the likelihood of such loss or damage and regardless of the form
      of
      action.

     

    (k)  This
      Agreement shall not be construed to render the Trustee an agent of the Master
      Servicer or any Servicer.

     

    (l)  For
      so
      long as the Depositor is subject to Exchange Act reporting requirements for
      the
      BNC Mortgage Loan Trust 2006-1 transaction, the Trustee shall give prior written
      notice to the Sponsor, the Master Servicer and the Depositor of the appointment
      of any Subcontractor by it 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 the Trustee, 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.

     

    
      
        
          	
                  Section
                    6.02

                	
                  Certain
                    Matters Affecting the Trustee . 

                

        

      

    

     

    Except
      as
      otherwise provided in Section 6.01:

     

    (a)  The
      Trustee may request, and may rely and shall be protected in acting or refraining
      from acting upon any resolution, Officer’s Certificate, certificate of auditors
      or any other certificate, statement, instrument, opinion, report, notice,
      request, consent, order, approval, bond or other paper or document believed
      by
      it to be genuine and to have been signed or presented by the proper party or
      parties;

     

    
      
        
        

      

      
        111

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Trustee may consult with counsel and any advice of its counsel or Opinion of
      Counsel shall be full and complete authorization and protection in respect
      of
      any action taken or suffered or omitted by it hereunder in good faith and in
      accordance with such advice or Opinion of Counsel;

     

    (c)  The
      Trustee shall not be personally liable for any action taken, suffered or omitted
      by it in good faith and reasonably believed by it to be authorized or within
      the
      discretion or rights or powers conferred upon it by this Agreement;

     

    (d)  Unless
      an
      Event of Default shall have occurred and be continuing, the Trustee shall not
      be
      bound to make any investigation into the facts or matters stated in any
      resolution, certificate, statement, instrument, opinion, report, notice,
      request, consent, order, approval, bond or other paper or document (provided
      the
      same appears regular on its face), unless requested in writing to do so by
      any
      NIMS Insurer or the Holders of at least a majority in Class Principal Amount
      (or
      Percentage Interest) of each Class of Certificates; provided,
      however,
      that,
      if the payment within a reasonable time to the Trustee of the costs, expenses
      or
      liabilities likely to be incurred by it in the making of such investigation
      is,
      in the opinion of the Trustee not reasonably assured to the Trustee by the
      security afforded to it by the terms of this Agreement, the Trustee may require
      reasonable indemnity against such expense or liability or payment of such
      estimated expenses from any NIMS Insurer or the Certificateholders, as
      applicable, as a condition to proceeding. The reasonable expense thereof shall
      be paid by the party requesting such investigation and if not reimbursed by
      the
      requesting party shall be reimbursed to the Trustee by the Trust
      Fund;

     

    (e)  The
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or by or through agents, custodians or attorneys,
      which agents, custodians or attorneys shall have any and all of the rights,
      powers, duties and obligations of the Trustee conferred on them by such
      appointment, provided that the Trustee shall continue to be responsible for
      its
      duties and obligations hereunder to the extent provided herein, and provided
      further that the Trustee shall not be responsible for any misconduct or
      negligence on the part of any such agent or attorney appointed with due care
      by
      the Trustee;

     

    (f)  The
      Trustee shall not be under any obligation to exercise any of the trusts or
      powers vested in it by this Agreement or to institute, conduct or defend any
      litigation hereunder or in relation hereto, in each case at the request, order
      or direction of any of the Certificateholders or any NIMS Insurer pursuant
      to
      the provisions of this Agreement, unless such Certificateholders or any NIMS
      Insurer shall have offered to the Trustee reasonable security or indemnity
      against the costs, expenses and liabilities which may be incurred therein or
      thereby;

     

    (g)  The
      right
      of the Trustee to perform any discretionary act enumerated in this Agreement
      shall not be construed as a duty, and the Trustee shall not be answerable for
      other than its negligence or willful misconduct in the performance of such
      act;
      and

     

    (h)  The
      Trustee shall not be required to give any bond or surety in respect of the
      execution of the Trust Fund or Supplemental Interest Trust created hereby or
      the
      powers granted hereunder.

     

    
      
        
        

      

      
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                  Section
                    6.03 

                	
                  Trustee
                    Not Liable for Certificates. 

                

        

      

    

     

    The
      Trustee makes no representations as to the validity or sufficiency of this
      Agreement, the Swap Agreement, or the Interest Rate Cap Agreement, the
      Certificates (other than the certificate of authentication on the Certificates)
      or the Lower Tier REMIC 1 Uncertificated Regular Interests or of any Mortgage
      Loan, or related document save that the Trustee represents that, assuming due
      execution and delivery by the other parties hereto, this Agreement has been
      duly
      authorized, executed and delivered by it and constitutes its valid and binding
      obligation, enforceable against it in accordance with its terms except that
      such
      enforceability may be subject to (A) applicable bankruptcy and insolvency laws
      and other similar laws affecting the enforcement of the rights of creditors
      generally, and (B) general principles of equity regardless of whether such
      enforcement is considered in a proceeding in equity or at law. The Trustee
      shall
      not be accountable for the use or application by the Depositor of funds paid
      to
      the Depositor in consideration of the assignment of the Mortgage Loans to the
      Trust Fund by the Depositor or for the use or application of any funds deposited
      into the Collection Account, the Certificate Account, any Escrow Account or
      any
      other fund or account maintained with respect to the Certificates. The Trustee
      shall not be responsible for the legality or validity of this Agreement, the
      Swap Agreement or the Interest Rate Cap Agreement, or the validity, priority,
      perfection or sufficiency of the security for the Certificates or the Lower
      Tier
      REMIC 1 Uncertificated Regular Interests issued or intended to be issued
      hereunder. The Trustee shall not have any responsibility for filing any
      financing or continuation statement in any public office at any time or to
      otherwise perfect or maintain the perfection of any security interest or lien
      granted to it hereunder or to record this Agreement.

    
      
         

        
          	
                  Section
                    6.04 

                	
                  Trustee
                    May Own Certificates. 

                

        

      

    

     

    The
      Trustee and any Affiliate or agent of it in its individual or any other capacity
      may become the owner or pledgee of Certificates and may transact banking and
      trust business with the other parties hereto and their Affiliates with the
      same
      rights it would have if it were not Trustee or such agent.

    
      
         

        
          	
                  Section
                    6.05

                	
                  Eligibility
                    Requirements for Trustee. 

                

        

      

    

     

    The
      Trustee hereunder shall at all times be (i) an institution whose accounts are
      insured by the FDIC, (ii) a corporation or national banking association,
      organized and doing business under the laws of any State or the United States
      of
      America, authorized under such laws to exercise corporate trust powers, having
      a
      combined capital and surplus of not less than $50,000,000 and subject to
      supervision or examination by federal or state authority and (iii) not an
      Affiliate of the Master Servicer or the Servicer (except in the case of the
      Trustee). In addition, the Trustee shall have a minimum short-term debt rating
      of at least “A-1” from S&P. If such corporation or national banking
      association publishes reports of condition at least annually, pursuant to law
      or
      to the requirements of the aforesaid supervising or examining authority, then,
      for the purposes of this Section, the combined capital and surplus of such
      corporation or national banking association shall be deemed to be its combined
      capital and surplus as set forth in its most recent report of condition so
      published. In case at any time the Trustee shall cease to be eligible in
      accordance with provisions of this Section, the Trustee shall resign immediately
      in the manner and with the effect specified in Section 6.06.

     

    
      
        
        

      

      
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                  Section
                    6.06 

                	
                  Resignation
                    and Removal of Trustee. 

                

        

      

    

     

    (a)  The
      Trustee may at any time resign and be discharged from the trust hereby created
      by giving written notice thereof to the Trustee, the Depositor, the Swap
      Counterparty, the Cap Counterparty, any NIMS Insurer and the Master Servicer.
      Upon receiving such notice of resignation, the Depositor will promptly appoint
      a
      successor trustee acceptable to any NIMS Insurer by written instrument, one
      copy
      of which instrument shall be delivered to the resigning Trustee, one copy to
      the
      successor trustee, and one copy to each of the Master Servicer and any NIMS
      Insurer. If no successor trustee shall have been so appointed and shall have
      accepted appointment within 30 days after the giving of such notice of
      resignation, the resigning Trustee may petition any court of competent
      jurisdiction for the appointment of a successor trustee.

     

    (b)  If
      at any
      time (i) the Trustee shall cease to be eligible in accordance with the
      provisions of Section 6.05 and shall fail to resign after written request
      therefor by the Depositor or any NIMS Insurer, (ii) the Trustee shall become
      incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver
      of the Trustee of its property shall be appointed, or any public officer shall
      take charge or control of the Trustee or of its property or affairs for the
      purpose of rehabilitation, conservation or liquidation, (iii) a tax is imposed
      or threatened with respect to the Trust Fund by any state in which the Trustee
      or the Trust Fund held by the Trustee is located, (iv) the continued use of
      the
      Trustee would result in a downgrading of the rating by any Rating Agency of
      any
      Class of Certificates with a rating, (v) the Trustee shall fail to provide
      any
      information, reports, assessments or attestations required pursuant to
      subsection 6.01(l) or Section 9.25 or (vi) the Depositor desires to replace
      the
      Trustee with a successor trustee, then the Depositor or any NIMS Insurer shall
      remove the Trustee and the Depositor shall appoint a successor trustee
      acceptable to any NIMS Insurer and the Master Servicer by written instrument,
      one copy of which instrument shall be delivered to the Trustee so removed,
      one
      copy each to the successor trustee and one copy to the Master Servicer and
      any
      NIMS Insurer.

     

    (c)  The
      Holders of more than 50% of the Class Principal Amount (or Percentage Interest)
      of each Class of Certificates (or any NIMS Insurer in the event of failure
      of
      the Trustee to perform its obligations hereunder) may at any time upon 30 days’
written notice to the Trustee and to the Depositor remove the Trustee by such
      written instrument, signed by such Holders or their attorney-in-fact duly
      authorized (or by any NIMS Insurer), one copy of which instrument shall be
      delivered to the Depositor, one copy to the Trustee, one copy each to the Master
      Servicer and any NIMS Insurer; the Depositor shall thereupon appoint a successor
      trustee in accordance with this Section mutually acceptable to the Depositor,
      the Master Servicer and any NIMS Insurer.

     

    (d)  Any
      resignation or removal of the Trustee and appointment of a successor trustee
      pursuant to any of the provisions of this Section shall become effective upon
      (i) the payment of all unpaid amounts owed to the Trustee and (ii) the
      acceptance of appointment by the successor trustee as provided in Section
      6.07.

    
      
         

        
          	
                  Section
                    6.07

                	
                  Successor
                    Trustee. 

                

        

      
  

    (a)  Any
      successor trustee appointed as provided in Section 6.06 shall execute,
      acknowledge and deliver to the Depositor, the Master Servicer, any NIMS Insurer,
      the Swap Counterparty and to its predecessor trustee an instrument accepting
      such appointment hereunder, and thereupon the resignation or removal of the
      predecessor trustee shall become effective and such successor trustee without
      any further act, deed or conveyance, shall become fully vested with all the
      rights, powers, duties and obligations of its predecessor hereunder, with like
      effect as if originally named as trustee herein. A predecessor trustee (or
      its
      custodian) shall deliver to the Trustee or any successor trustee (or assign
      to
      the Trustee its interest under the Custodial Agreement, to the extent permitted
      thereunder), all Mortgage Files and documents and statements related to each
      Mortgage File held by it hereunder, and shall duly assign, transfer, deliver
      and
      pay over to the successor trustee the entire Trust Fund, together with all
      necessary instruments of transfer and assignment or other documents properly
      executed necessary to effect such transfer and such of the records or copies
      thereof maintained by the predecessor trustee in the administration hereof
      as
      may be requested by the successor trustee and shall thereupon be discharged
      from
      all duties and responsibilities under this Agreement. In addition, the Master
      Servicer and the predecessor trustee shall execute and deliver such other
      instruments and do such other things as may reasonably be required to more
      fully
      and certainly vest and confirm in the successor trustee all such rights, powers,
      duties and obligations. 

     

    
      
        
        

      

      
        114

        
          

        

      

      
        
        

      

    

     

    (b)  No
      successor trustee shall accept appointment as provided in this Section unless
      at
      the time of such appointment such successor trustee shall be eligible under
      the
      provisions of Section 6.05.

     

    (c)  Upon
      acceptance of appointment by a successor trustee as provided in this Section,
      the predecessor trustee shall mail notice of the succession of such trustee
      hereunder to all Holders of Certificates at their addresses as shown in the
      Certificate Register and to any Rating Agency. The expenses of such mailing
      shall be borne by the predecessor trustee.

     

    (d)  Upon
      the
      resignation or removal of the Trustee pursuant to this Section 6.07, the Trustee
      shall deliver the amounts held in its possession for the benefit of the
      Certificateholders to the successor trustee upon the appointment of such
      successor trustee.

    
      
         

        
          	
                  Section
                    6.08

                	
                  Merger
                    or Consolidation of Trustee. 

                

        

      

    

     

    Any
      Person into which the Trustee may be merged or with which it may be
      consolidated, or any Person resulting from any merger, conversion or
      consolidation to which the Trustee shall be a party, or any Persons succeeding
      to the corporate trust business of the Trustee, shall be the successor to the
      Trustee hereunder, without the execution or filing of any paper or any further
      act on the part of any of the parties hereto, anything herein to the contrary
      notwithstanding; provided,
      that
      such Person shall be eligible under the provisions of Section 6.05. Unless
      and
      until a Form 15 suspension notice shall have been filed, as a condition to
      the
      succession to the Trustee under this Agreement by any Person (i) into which
      the
      Trustee may be merged or consolidated, or (ii) which may be appointed as a
      successor to the Trustee, the Trustee shall notify the Sponsor, the Depositor
      and the Master Servicer, at least 15 calendar days prior to the effective date
      of such succession or appointment, of such succession or appointment and shall
      furnish to the Sponsor, the Depositor and the Master Servicer in writing and
      in
      form and substance reasonably satisfactory to the Sponsor, the Depositor and
      the
      Master Servicer, all information reasonably necessary for the Trustee to
      accurately and timely report, pursuant to Section 6.20, the event under Item
      6.02 of Form 8-K pursuant to the Exchange Act (if such reports under the
      Exchange Act are required to be filed under the Exchange Act). 

     

    
      
        
        

      

      
        115

        
          

        

      

      
        
        

      

    

    
      
         

        
          	
                  Section
                    6.09

                	
                  Appointment
                    of Co-Trustee, Separate Trustee or Custodian. 

                

        

      

    

     

    (a)  Notwithstanding
      any other provisions hereof, at any time, the Trustee, the Depositor or the
      Certificateholders evidencing more than 50% of the Class Principal Amount (or
      Percentage Interest) of every Class of Certificates shall
      have the power from time to time to appoint one or more Persons, approved by
      the
      Trustee and any NIMS Insurer, to act either as co-trustees jointly with the
      Trustee, or as separate trustees, or as custodians, for the purpose of holding
      title to, foreclosing or otherwise taking action with respect to any Mortgage
      Loan outside the state where the Trustee has its principal place of business
      where such separate trustee or co-trustee is necessary or advisable (or the
      Trustee has been advised by the Master Servicer that such separate trustee
      or
      co-trustee is necessary or advisable) under the laws of any state in which
      a
      property securing a Mortgage Loan is located or for the purpose of otherwise
      conforming to any legal requirement, restriction or condition in any state
      in
      which a property securing a Mortgage Loan is located or in any state in which
      any portion of the Trust Fund is located. The separate Trustees, co-trustees,
      or
      custodians so appointed shall be trustees or custodians for the benefit of
      all
      the Certificateholders and shall have such powers, rights and remedies as shall
      be specified in the instrument of appointment; provided,
      however,
      that no
      such appointment shall, or shall be deemed to, constitute the appointee an
      agent
      of the Trustee. The obligation of the Trustee to make Advances pursuant to
      Section 5.04 and 6.14 hereof shall not be affected or assigned by the
      appointment of a co-trustee. Notwithstanding the foregoing, if such co-custodian
      or co-trustee is determined to be a Servicing Function Participant, no such
      co-custodian or co-trustee shall be vested with any powers, rights and remedies
      under this Agreement unless such party has agreed to comply with all Regulation
      AB requirements set forth under this Agreement or the Custodial Agreement,
      as
      applicable.

     

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

     

    (i)
        all
      powers, duties, obligations and rights conferred upon the Trustee in respect
      of
      the receipt, custody and payment of monies shall be exercised solely by the
      Trustee;

     

    (ii)
        all
      other
      rights, powers, duties and obligations conferred or imposed upon the Trustee
      shall be conferred or imposed upon and exercised or performed by the Trustee
      and
      such separate trustee, co-trustee, or custodian jointly, except to the extent
      that under any law of any jurisdiction in which any particular act or acts
      are
      to be performed the Trustee shall be incompetent or unqualified to perform
      such
      act or acts, in which event such rights, powers, duties and obligations,
      including the holding of title to the Trust Fund or any portion thereof in
      any
      such jurisdiction, shall be exercised and performed by such separate trustee,
      co-trustee, or custodian;

     

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

     

    
      
        
        

      

      
        116

        
          

        

      

      
        
        

      

    

     

    (iv)
        the
      Trustee or the Certificateholders evidencing more than 50% of the Aggregate
      Voting Interests of the Certificates may at any time accept the resignation
      of
      or remove any separate trustee, co-trustee or custodian, so appointed by it
      or
      them, if such resignation or removal does not violate the other terms of this
      Agreement.

     

    (c)  Any
      notice, request or other writing given to the Trustee shall be deemed to have
      been given to each of the then separate trustees and co-trustees, as effectively
      as if given to each of them. Every instrument appointing any separate trustee,
      co-trustee or custodian shall refer to this Agreement 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 Trustee or separately, as
      may
      be provided therein, subject to all the provisions of this Agreement,
      specifically including every provision of this Agreement relating to the conduct
      of, affecting the liability of, or affording protection to, the Trustee. Every
      such instrument shall be filed with the Trustee and a copy given to the Master
      Servicer and any NIMS Insurer.

     

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

     

    (e)  No
      separate trustee, co-trustee or custodian hereunder shall be required to meet
      the terms of eligibility as a successor trustee under Section 6.05 hereunder
      and
      no notice to Certificateholders of the appointment shall be required under
      Section 6.07 hereof.

     

    (f)  The
      Trustee agrees to instruct the co-trustees, if any, to the extent necessary
      to
      fulfill the Trustee’s obligations hereunder.

     

    (g)  The
      Trustee shall pay the reasonable compensation of the co-trustees requested
      by
      the Trustee to be so appointed (which compensation shall not reduce any
      compensation payable to the Trustee ) and, if paid by the Trustee, shall be
      a
      reimbursable expense pursuant to Section 6.12.

     

    (h)  Notwithstanding
      the foregoing, for so long as reports are required to be filed with the
      Commission under the Exchange Act with respect to the Trust, the Trustee shall
      not utilize any Subcontractor for the performance of its duties hereunder if
      such Subcontractor would be “participating in the servicing function” within the
      meaning of Item 1122 of Regulation AB without (a) giving notice to the Seller,
      the Master Servicer, the Sponsor and the Depositor and (b) requiring any such
      Subcontractor to provide to the Trustee an assessment report as provided in
      Section 9.25(a) and an attestation report as provided in Section 9.25(b), which
      reports the Trustee shall include in its assessment and attestation reports.
      The
      Trustee shall indemnify the Sponsor, the Depositor and the Master Servicer
      and
      any director, officer, employee or agent of each of the Sponsor, the Depositor
      and the Master Servicer and hold them harmless against any and all claims,
      losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
      fees and related costs, judgments, and any other costs, fees and expenses that
      any of them may sustain arising out of or based upon the failure by the Trustee
      (i) to give notice of the engagement of any Subcontractor or (ii) to require
      any
      Subcontractor to provide the Trustee an assessment of compliance as provided
      in
      Section 9.25(a) and an attestation report as provided in Section 9.25(b). This
      indemnity shall survive the termination of this Agreement or the earlier
      resignation or removal of the Trustee.

     

    
      
        
        

      

      
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                  Section
                    6.10

                	
                  Authenticating
                    Agents. 

                

        

      

    

     

    (a)  The
      Trustee may appoint one or more Authenticating Agents which shall be authorized
      to act on behalf of the Trustee in authenticating Certificates. Wherever
      reference is made in this Agreement to the authentication of Certificates by
      the
      Trustee or the Trustee’s certificate of authentication, such reference shall be
      deemed to include authentication on behalf of the Trustee by an Authenticating
      Agent and a certificate of authentication executed on behalf of the Trustee
      by
      an Authenticating Agent. Each Authenticating Agent must be a corporation
      organized and doing business under the laws of the United States of America
      or
      of any state, having a combined capital and surplus of at least $15,000,000,
      authorized under such laws to do a trust business and subject to supervision
      or
      examination by federal or state authorities and acceptable to any NIMS
      Insurer.

     

    (b)  Any
      Person into which any Authenticating Agent may be merged or converted or with
      which it may be consolidated, or any Person resulting from any merger,
      conversion or consolidation to which any Authenticating Agent shall be a party,
      or any Person succeeding to the corporate agency business of any Authenticating
      Agent, shall continue to be the Authenticating Agent without the execution
      or
      filing of any paper or any further act on the part of the Trustee or the
      Authenticating Agent.

     

    (c)  Any
      Authenticating Agent may at any time resign by giving at least 30 days’ advance
      written notice of resignation to the Trustee, any NIMS Insurer and the
      Depositor. The Trustee may at any time terminate the agency of any
      Authenticating Agent by giving written notice of termination to such
      Authenticating Agent, any NIMS Insurer and the Depositor. Upon receiving a
      notice of resignation or upon such a termination, or in case at any time any
      Authenticating Agent shall cease to be eligible in accordance with the
      provisions of this Section 6.10, the Trustee may appoint a successor
      Authenticating Agent, shall give written notice of such appointment to the
      Depositor and any NIMS Insurer and shall mail notice of such appointment to
      all
      Holders of Certificates. Any successor Authenticating Agent upon acceptance
      of
      its appointment hereunder shall become vested with all the rights, powers,
      duties and responsibilities of its predecessor hereunder, with like effect
      as if
      originally named as Authenticating Agent. No successor Authenticating Agent
      shall be appointed unless eligible under the provisions of this Section 6.10.
      No
      Authenticating Agent shall have responsibility or liability for any action
      taken
      by it as such at the direction of the Trustee. Any Authenticating Agent shall
      be
      entitled to reasonable compensation for its services and, if paid by the
      Trustee, it shall be a reimbursable expense pursuant to Section
      6.12.

     

    
      
        
        

      

      
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                  Section
                    6.11

                	
                  Indemnification
                    of Trustee. 

                

        

      

    

     

    The
      Trustee and its directors, officers, employees and agents shall be entitled
      to
      indemnification from the Trust Fund for any loss, liability or expense incurred
      in connection with any legal proceeding or incurred without negligence or
      willful misconduct on their part arising out of, or in connection with, the
      acceptance or administration of the trusts created hereunder or in connection
      with the performance of their duties hereunder or under the Swap Agreement,
      the
      Interest Rate Cap Agreement, the Mortgage Loan Sale Agreement, the Transfer
      Agreement, any Servicing Agreement, the MGIC Letter Agreement, the PMI Letter
      Agreement or the Custodial Agreement, including any applicable fees and expenses
      payable pursuant to Section 6.12 and the costs and expenses of defending
      themselves against any claim in connection with the exercise or performance
      of
      any of their powers or duties hereunder, provided that:

     

    (i)
        with
      respect to any such claim, the Trustee shall have given the Depositor, the
      Master Servicer, any NIMS Insurer and the Holders written notice thereof
      promptly after a Responsible Officer of the Trustee shall have knowledge thereof
      provided that the failure to provide such prompt written notice shall not affect
      the Trustee’s right to indemnification hereunder;

     

    (ii)
        while
      maintaining control over its own defense, the Trustee shall cooperate and
      consult fully with the Depositor, the Master Servicer and any NIMS Insurer
      in
      preparing such defense; and

     

    (iii)
        notwithstanding
      anything to the contrary in this Section 6.11, the Trust Fund shall not be
      liable for settlement of any such claim by the Trustee entered into without
      the
      prior consent of the Depositor, the Master Servicer and any NIMS Insurer, which
      consent shall not be unreasonably withheld.

     

    The
      Trustee shall be further indemnified by the Seller for and held harmless
      against, any loss, liability or expense arising out of, or in connection with,
      the provisions set forth in the fifth paragraph of Section 2.01(a) hereof,
      including, without limitation, all costs, liabilities and expenses (including
      reasonable legal fees and expenses) of investigating and defending itself
      against any claim, action or proceeding, pending or threatened, relating to
      the
      provisions of such paragraph.

     

    The
      provisions of this Section 6.11 shall survive any termination of this Agreement
      and the resignation or removal of the Trustee and shall be construed to include,
      but not be limited to any loss, liability or expense under any environmental
      law.

    
      
         

        
          	
                  Section
                    6.12 

                	
                  Fees
                    and Expenses of Trustee and Custodian. 

                

        

      

    

     

    The
      Custodian shall be entitled to the Custodial Compensation provided for in the
      Custodial Agreement which shall be paid by the Trustee as invoiced by the
      Custodian. The Trustee shall be entitled to receive, and is authorized to pay
      itself, any investment income and earnings on the Certificate Account (other
      than any amounts required to be deducted in respect of Custodial Compensation
      as
      provided in Section 4.04(c)). The Trustee shall be entitled to reimbursement
      of
      all reasonable expenses, disbursements and advances incurred or made by the
      Trustee in accordance with this Agreement (including fees and expenses of its
      counsel and all persons not regularly in its employment and any amounts
      described in Section 10.01 to which the Trustee is entitled as provided
      therein), except for expenses, disbursements and advances that either (i) do
      not
      constitute “unanticipated expenses” within the meaning of Treasury Regulation
      Section 1.860G-1(b)(3)(ii) or (ii) arise from its negligence, bad faith or
      willful misconduct. If the Custodial Compensation is not fully paid from (i)
      the
      Trustee’s own funds or (ii) investment income and earnings on amounts on deposit
      in the Certificate Account, then prior to any distribution to Certificateholders
      pursuant to Section 5.02 hereof, the Trust Fund shall immediately reimburse
      the
      Custodian upon demand for any such shortfall from amounts on deposit in the
      Certificate Account. To the extent required under Section 20 of the Custodial
      Agreement, the Trustee is hereby authorized to pay any indemnification amounts
      from amounts on deposit in the Certificate Account prior to any distributions
      to
      Certificateholders pursuant to Section 5.02 hereof. 

     

    
      
        
        

      

      
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                  Section
                    6.13

                	
                  Collection
                    of Monies. 

                

        

      
  

    Except
      as
      otherwise expressly provided in this Agreement, the Trustee may demand payment
      or delivery of, and shall receive and collect, all money and other property
      payable to or receivable by the Trustee pursuant to this Agreement. The Trustee
      shall hold all such money and property received by it as part of the Trust
      Fund
      and shall distribute it as provided in this Agreement. If the Trustee shall
      not
      have timely received amounts to be remitted with respect to the Mortgage Loans
      from the Master Servicer, the Trustee shall request the Master Servicer to
      make
      such distribution as promptly as practicable or legally permitted. If the
      Trustee shall subsequently receive any such amounts, it may withdraw such
      request.

    
      
         

        
          	
                  Section
                    6.14  

                	
                  Events
                    of Default; Trustee To Act; Appointment of Successor. 

                

        

      

    

     

    (a)  The
      occurrence of any one or more of the following events shall constitute an “Event
      of Default”:

     

    (i)
        Any
      failure by the Master Servicer to furnish to the Trustee the Mortgage Loan
      data
      sufficient to prepare the reports described in Section 4.03(a) (other than
      with
      respect to the information referred to in clauses (xix), (xx) and (xxi) of
      such
      Section 4.03(a)) which continues unremedied for a period of two (2) Business
      Days after the date upon which written notice of such failure shall have been
      given to such Master Servicer by the Trustee, or to such Master Servicer and
      the
      Trustee by the Holders of not less than 25% of the Class Principal Amount of
      each Class of Certificates affected thereby; or

     

    (ii)
        Any
      failure by the Master Servicer to duly perform, within the required time period
      and without notice, its obligations to provide any certifications required
      pursuant to Sections 9.25 and 9.26, which failure continues unremedied for
      a
      period of five (5) days from the date of delivery required with respect to
      such
      certification; or

     

    (iii)
        Except
      with respect to those items listed in clause (ii) above, any failure by the
      Servicer to duly perform, within the required time period, without notice or
      grace period, its obligations to provide any information, data or materials
      required to be provided hereunder pursuant to Sections 9.23 and 9.29(b),
      including any items required to be included in any Exchange Act report;
      or

     

    
      
        
        

      

      
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    (iv)
        Any
      failure on the part of the Master Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of the
      Master Servicer contained in this Agreement which continues unremedied for
      a
      period of 30 days after the date on which written notice of such failure,
      requiring the same to be remedied, shall have been given to the Master Servicer
      by the Trustee, or to the Master Servicer and the Trustee by the Holders of
      more
      than 50% of the Aggregate Voting Interests of the Certificates or by any NIMS
      Insurer; or

     

    (v)
        A
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      for
      the appointment of a conservator or receiver or liquidator in any insolvency,
      readjustment of debt, marshalling of assets and liabilities or similar
      proceedings, or for the winding-up or liquidation of its affairs, shall have
      been entered against the Master Servicer, and such decree or order shall have
      remained in force undischarged or unstayed for a period of 60 days or any Rating
      Agency reduces or withdraws or threatens to reduce or withdraw the rating of
      the
      Certificates because of the financial condition or loan servicing capability
      of
      such Master Servicer; or

     

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

     

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

     

    (viii)
        The
      Master Servicer shall be dissolved, or shall dispose of all or substantially
      all
      of its assets, or consolidate with or merge into another entity or shall permit
      another entity to consolidate or merge into it, such that the resulting entity
      does not meet the criteria for a successor servicer as specified in Section
      9.27
      hereof; or

     

    (ix)
        If
      a
      representation or warranty set forth in Section 9.14 hereof shall prove to
      be
      incorrect as of the time made in any respect that materially and adversely
      affects the interests of the Certificateholders, and the circumstance or
      condition in respect of which such representation or warranty was incorrect
      shall not have been eliminated or cured within 30 days after the date on which
      written notice of such incorrect representation or warranty shall have been
      given to the Master Servicer by the Trustee, or to the Master Servicer and
      the
      Trustee by the Holders of more than 50% of the Aggregate Voting Interests of
      the
      Certificates or by any NIMS Insurer; or

     

    (x)
        A
      sale or
      pledge of any of the rights of the Master Servicer hereunder or an assignment
      of
      this Agreement by the Master Servicer or a delegation of the rights or duties
      of
      the Master Servicer hereunder shall have occurred in any manner not otherwise
      permitted hereunder and without the prior written consent of the Trustee, any
      NIMS Insurer and Certificateholders holding more than 50% of the Aggregate
      Voting Interests of the Certificates; or

     

    
      
        
        

      

      
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    (xi)
        The
      Master Servicer has notice or actual knowledge that any Servicer at any time
      is
      not either a Fannie Mae- or Freddie Mac- approved Seller/Servicer, and the
      Master Servicer has not terminated the rights and obligations of such Servicer
      under the applicable Servicing Agreement and replaced such Servicer with a
      Fannie Mae- or Freddie Mac -approved servicer within 60 days of the date the
      Master Servicer receives such notice or acquires such actual knowledge;
      or

     

    (xii)
        After
      receipt of notice from the Trustee or any NIMS Insurer, any failure of the
      Master Servicer to remit to the Trustee any payment required to be made to
      the
      Trustee for the benefit of Certificateholders under the terms of this Agreement,
      including any Advance, on any Master Servicer Remittance Date which such failure
      continues unremedied for a period of one Business Day after the date upon which
      notice of such failure shall have been given to the Master Servicer by the
      Trustee.

     

    If
      an
      Event of Default described in clauses (i) through (xii) of this Section shall
      occur, then, in each and every case, subject to applicable law, so long as
      any
      such Event of Default shall not have been remedied within any period of time
      prescribed by this Section, the Trustee, by notice in writing to the Master
      Servicer may, and shall, if so directed by Certificateholders evidencing more
      than 50% of the Class Principal Amount of each Class of Certificates, terminate
      all of the rights and obligations of the Master Servicer hereunder and in and
      to
      the Mortgage Loans and the proceeds thereof. If an Event of Default described
      in
      clause (xii) of this Section shall occur, then, in each and every case, subject
      to applicable law,
      so long
      as such Event of Default shall not have been remedied within the time period
      prescribed by clause (xii) of this Section 6.14, the
      Trustee, by notice in writing to the Master Servicer, shall promptly terminate
      all of the rights and obligations of the Master Servicer hereunder and in and
      to
      the Mortgage Loans and the proceeds thereof. On or after the receipt by the
      Master Servicer of such written notice, all authority and power of the Master
      Servicer, and only in its capacity as Master Servicer under this Agreement,
      whether with respect to the Mortgage Loans or otherwise, shall pass to and
      be
      vested in the Trustee; provided,
      however,
      the
      parties acknowledge that notwithstanding the preceding sentence there may be
      a
      transition period, not to exceed 90 days, in order to effect the transfer of
      the
      Master Servicing obligations to the Trustee; provided,
      further,
      the
      obligation to make Advances by the Trustee shall be effective upon the Trustee
      providing notice of termination to the Master Servicer pursuant to this Section
      6.14. The Trustee is hereby authorized and empowered to execute and deliver,
      on
      behalf of the defaulting Master Servicer as attorney-in-fact or otherwise,
      any
      and all documents and other instruments, and to do or accomplish all other
      acts
      or things necessary or appropriate to effect the purposes of such notice of
      termination, whether to complete the transfer and endorsement or assignment
      of
      the Mortgage Loans and related documents or otherwise. The defaulting Master
      Servicer agrees to cooperate with the Trustee in effecting the termination
      of
      the defaulting Master Servicer’s responsibilities and rights hereunder as Master
      Servicer including, without limitation, notifying Servicers of the assignment
      of
      the master servicing function and providing the Trustee or its designee all
      documents and records in electronic or other form reasonably requested by it
      to
      enable the Trustee or its designee to assume the defaulting Master Servicer’s
      functions hereunder and the transfer to the Trustee or its designee for
      administration by it of all amounts which shall at the time be or should have
      been deposited by the defaulting Master Servicer in the Collection Account
      maintained by such defaulting Master Servicer and any other account or fund
      maintained with respect to the Certificates or thereafter received with respect
      to the Mortgage Loans. The Master Servicer being terminated (or the Trust Fund,
      if the Master Servicer is unable to fulfill its obligations hereunder) as a
      result of an Event of Default shall bear all costs of a master servicing
      transfer, including but not limited to those of the Trustee reasonably allocable
      to specific employees and overhead, legal fees and expenses, accounting and
      financial consulting fees and expenses, and costs of amending the Agreement,
      if
      necessary.

     

    
      
        
        

      

      
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    The
      Trustee shall be entitled to be reimbursed from the Master Servicer (or by
      the
      Trust Fund, if the Master Servicer is unable to fulfill its obligations
      hereunder) for all costs associated with the transfer of master servicing from
      the predecessor Master Servicer, including, without limitation, any costs or
      expenses associated with the complete transfer of all master servicing data
      and
      the completion, correction or manipulation of such servicing data as may be
      required by the Trustee to correct any errors or insufficiencies in the master
      servicing data or otherwise to enable the Trustee to master service the Mortgage
      Loans properly and effectively. If the terminated Master Servicer does not
      pay
      such reimbursement within thirty (30) days of its receipt of an invoice
      therefore, such reimbursement shall be an expense of the Trust and the Trustee
      shall be entitled to withdraw such reimbursement from amounts on deposit in
      the
      Certificate Account pursuant to Section 4.04(b); provided that the terminated
      Master Servicer shall reimburse the Trust for any such expense incurred by
      the
      Trust; and provided,
      further,
      that
      the Trustee shall decide whether and to what extent it is in the best interest
      of the Certificateholders to pursue any remedy against any party obligated
      to
      make such reimbursement.

     

    Notwithstanding
      the termination of its activities as Master Servicer, each terminated Master
      Servicer shall continue to be entitled to reimbursement to the extent provided
      in Section 4.02 to the extent such reimbursement relates to the period prior
      to
      such Master Servicer’s termination.

     

    If
      any
      Event of Default shall occur, the Trustee, upon a Responsible Officer of the
      Trustee becoming aware of the occurrence thereof, shall promptly notify any
      NIMS
      Insurer, the Swap Counterparty, the Cap Counterparty, and each Rating Agency
      of
      the nature and extent of such Event of Default. The Trustee shall immediately
      give written notice to the Master Servicer upon the Master Servicer’s failure to
      remit funds on the Master Servicer Remittance Date.

     

    (b)  Upon
      termination of the Master Servicer pursuant to Section 6.14(a) or the Trustee
      receives the resignation of the Master Servicer evidenced by an Opinion of
      Counsel pursuant to Section 9.28, the Trustee, unless another master servicer
      shall have been appointed, shall be the successor in all respects to the Master
      Servicer in its capacity as such under this Agreement and the transactions
      set
      forth or provided for herein and shall have all the rights and powers and be
      subject to all the responsibilities, duties and liabilities relating thereto
      and
      arising thereafter placed on the Master Servicer hereunder, including the
      obligation to make Advances; provided,
      however,
      that any
      failure to perform such duties or responsibilities caused by the Master
      Servicer’s or the Trustee’s failure to provide information required by this
      Agreement shall not be considered a default by the Trustee hereunder. In
      addition, the Trustee shall have no responsibility for any act or omission
      of
      the Master Servicer or for any breach of representation or warranty by the
      Master Servicer. The Trustee shall have no liability relating to the
      representations and warranties of the Master Servicer set forth in Section
      9.14.
      In the Trustee’s capacity as such successor, the Trustee shall have the same
      limitations on liability herein granted to the Master Servicer. As compensation
      therefor, the Trustee shall be entitled to receive all compensation payable
      to
      the Master Servicer under this Agreement, including the Master Servicing
      Fee.

     

    
      
        
        

      

      
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    (c)  Notwithstanding
      the above, the Trustee may, if it shall be unwilling to continue to so act,
      or
      shall, if it is unable to so act, request the Trustee to appoint, petition
      a
      court of competent jurisdiction to appoint, or appoint on its own behalf any
      established housing and home finance institution servicer, master servicer,
      servicing or mortgage servicing institution having a net worth of not less
      than
      $15,000,000 and meeting such other standards for a successor master servicer
      as
      are set forth in this Agreement, as the successor to such Master Servicer in
      the
      assumption of all of the responsibilities, duties or liabilities of the Master
      Servicer hereunder. Any entity designated by the Trustee as a successor master
      servicer may be an Affiliate of the Trustee; provided,
      however,
      that,
      unless such Affiliate meets the net worth requirements and other standards
      set
      forth herein for a successor master servicer, or the Trustee, in its individual
      capacity shall agree, at the time of such designation, to be and remain liable
      to the Trust Fund for such Affiliate’s actions and omissions in performing its
      duties hereunder. In connection with such appointment and assumption, the
      Trustee may make such arrangements for the compensation of such successor out
      of
      payments on Mortgage Loans as it and such successor shall agree; provided,
      however,
      that no
      such compensation shall be in excess of that permitted to the Master Servicer
      hereunder. The Trustee and such successor shall take such actions, consistent
      with this Agreement, as shall be necessary to effectuate any such succession
      and
      may make other arrangements with respect to the servicing to be conducted
      hereunder which are not inconsistent herewith. The Master Servicer shall
      cooperate with the Trustee and any successor master servicer in effecting the
      termination of the Master Servicer’s responsibilities and rights hereunder
      including, without limitation, notifying Mortgagors of the assignment of the
      master servicing functions and providing the Trustee and successor master
      servicer, as applicable, all documents and records in electronic or other form
      reasonably requested by it to enable it to assume the Master Servicer’s
      functions hereunder and the transfer to the Trustee or such successor master
      servicer, as applicable, all amounts which shall at the time be or should have
      been deposited by the Master Servicer in the Collection Account and any other
      account or fund maintained with respect to the Certificates or the Lower Tier
      REMIC 1 Uncertificated Regular Interests or thereafter be received with
      respect to the Mortgage Loans. Neither the Trustee nor any other successor
      master servicer shall be deemed to be in default hereunder by reason of any
      failure to make, or any delay in making, any distribution hereunder or any
      portion thereof caused by (i) the failure of the Master Servicer to deliver,
      or
      any delay in delivering, cash, documents or records to it, (ii) the failure
      of
      the Master Servicer to cooperate as required by this Agreement, (iii) the
      failure of the Master Servicer to deliver the Mortgage Loan data to the Trustee
      or such successor master servicer as required by this Agreement or (iv)
      restrictions imposed by any regulatory authority having jurisdiction over the
      Master Servicer. 

     

    
      
        
        

      

      
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                  Section
                    6.15 

                	
                  Additional
                    Remedies of Trustee Upon Event of Default. 

                

        

      

    

     

    During
      the continuance of any Event of Default, so long as such Event of Default shall
      not have been remedied, the Trustee, in addition to the rights specified in
      Section 6.14, shall have the right, in its own name and as trustee of an express
      trust, to take all actions now or hereafter existing at law, in equity or by
      statute to enforce its rights and remedies and to protect the interests, and
      enforce the rights and remedies, of any NIMS Insurer and the Certificateholders
      (including the institution and prosecution of all judicial, administrative
      and
      other proceedings and the filings of proofs of claim and debt in connection
      therewith). Except as otherwise expressly provided in this Agreement, no remedy
      provided for by this Agreement shall be exclusive of any other remedy, and
      each
      and every remedy shall be cumulative and in addition to any other remedy, and
      no
      delay or omission to exercise any right or remedy shall impair any such right
      or
      remedy or shall be deemed to be a waiver of any Event of Default.

    
      
         

        
          	
                  Section
                    6.16 

                	
                  Waiver
                    of Defaults. 

                

        

         

      

    

    More
      than
      50% of the Aggregate Voting Interests of Certificateholders (with the consent
      of
      any NIMS Insurer) may waive any default or Event of Default by the Master
      Servicer in the performance of its obligations hereunder, except that a default
      in the making of any required deposit to the Certificate Account that would
      result in a failure of the Trustee to make any required payment of principal
      of
      or interest on the Certificates may only be waived with the consent of 100%
      of
      the affected Certificateholders and with the consent of any NIMS Insurer. Upon
      any such waiver of a past default, such default shall cease to exist, and any
      Event of Default arising therefrom shall be deemed to have been remedied for
      every purpose of this Agreement. No such waiver shall extend to any subsequent
      or other default or impair any right consequent thereon except to the extent
      expressly so waived.

    
      
         

        
          	
                  Section
                    6.17

                	
                  Notification
                    to Holders. 

                

        

      

    

     

    Upon
      termination of the Master Servicer or appointment of a successor to the Master
      Servicer, in each case as provided herein, the Trustee shall promptly mail
      notice thereof by first class mail to the Certificateholders at their respective
      addresses appearing on the Certificate Register, any NIMS Insurer, the Swap
      Counterparty and the Cap Counterparty. The Trustee shall also, within 45 days
      after the occurrence of any Event of Default known to a Responsible Officer
      of
      the Trustee, give written notice thereof to any NIMS Insurer and the
      Certificateholders, unless such Event of Default shall have been cured or waived
      prior to the issuance of such notice and within such 45-day period.

    
      
         

        
          	
                  Section
                    6.18

                	
                  Directions
                    by Certificateholders and Duties of Trustee During Event of Default. 

                

        

      

    

     

    Subject
      to the provisions of Section 8.01 hereof, during the continuance of any Event
      of
      Default, Holders of Certificates evidencing not less than 25% of the Class
      Principal Amount (or Percentage Interest) of each Class of Certificates affected
      thereby may, with the consent of any NIMS Insurer, direct the time, method
      and
      place of conducting any proceeding for any remedy available to the Trustee,
      or
      exercising any trust or power conferred upon the Trustee, under this Agreement;
      provided,
      however,
      that the
      Trustee shall be under no obligation to pursue any such remedy, or to exercise
      any of the trusts or powers vested in it by this Agreement (including, without
      limitation, (i) the conducting or defending of any administrative action or
      litigation hereunder or in relation hereto and (ii) the terminating of the
      Master Servicer or any successor master servicer from its rights and duties
      as
      master servicer hereunder) at the request, order or direction of any of the
      Certificateholders or any NIMS Insurer, unless such Certificateholders or any
      NIMS Insurer shall have offered to the Trustee reasonable security or indemnity
      against the cost, expenses and liabilities which may be incurred therein or
      thereby; and, provided further, that, subject to the provisions of Section
      8.01,
      the Trustee shall have the right to decline to follow any such direction if
      the
      Trustee, in accordance with an Opinion of Counsel acceptable to any NIMS
      Insurer, determines that the action or proceeding so directed may not lawfully
      be taken or if the Trustee in good faith determines that the action or
      proceeding so directed would involve it in personal liability for which it
      is
      not indemnified to its satisfaction or be unjustly prejudicial to the
      non-assenting Certificateholders.

     

    
      
        
        

      

      
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                  Section
                    6.19

                	
                  Action
                    Upon Certain Failures of the Master Servicer and Upon Event of
                    Default. 

                

        

      

    

     

    In
      the
      event that the Trustee shall have actual knowledge of any action or inaction
      of
      the Master Servicer that would become an Event of Default upon the Master
      Servicer’s failure to remedy the same after notice, the Trustee shall give
      notice thereof to the Master Servicer, any NIMS Insurer, the Trustee, the Swap
      Counterparty and the Cap Counterparty.

    
      
         

        
          	
                  Section
                    6.20

                	
                  Preparation
                    of Tax Returns and Other Reports. 

                

        

         

      

    

    (a)  The
      Trustee shall prepare or cause to be prepared on behalf of the Trust Fund,
      based
      upon information calculated in accordance with this Agreement pursuant to
      instructions given by the Depositor, and the Trustee shall file federal tax
      returns, all in accordance with Article X hereof. If the Trustee determines
      that
      a state tax return or other return is required, then, at its sole expense,
      the
      Trustee shall prepare and file such state income tax returns and such other
      returns as may be required by applicable law relating to the Trust Fund, and,
      if
      required by state law, and shall file any other documents to the extent required
      by applicable state tax law (to the extent such documents are in the Trustee’s
      possession). The Trustee shall forward copies to the Depositor of all such
      returns and supplemental tax information and such other information within
      the
      Trustee’s control as the Depositor may reasonably request in writing, and
      furnish to each Certificateholder, such forms and such information within the
      control of the Trustee as are required by the Code and the REMIC Provisions
      to
      be furnished to them (other than any Form 1099s). The Master Servicer will
      indemnify the Trustee for any liability of or assessment against the Trustee
      arising out of or based upon any error in any of such tax or information returns
      arising out of or based upon errors in the information provided by such Master
      Servicer.

     

    (b)  The
      Trustee shall prepare and file with the Internal Revenue Service (“IRS”), on
      behalf of the Trust Fund and each of the REMICs specified in the Preliminary
      Statement, an application for an employer identification number on IRS Form
      SS-4
      or by any other acceptable method. The Trustee shall also file a Form 8811
      as
      required. The Trustee, upon receipt from the IRS of the Notice of Taxpayer
      Identification Number Assigned, shall upon request promptly forward a copy
      of
      such notice to the Trustee and the Depositor. The Trustee shall have no
      obligation to verify the information in any Form 8811 or Form SS-4
      filing.

     

    (c)  The
      Depositor shall prepare or cause to be prepared the initial current report
      on
      Form 8-K. Thereafter, the Trustee shall, in accordance with industry standards
      and the rules of the Commission as in effect from time to time (the “Rules”),
      prepare and file with the Commission via the Electronic Data Gathering and
      Retrieval System (“EDGAR”), the reports listed in subsections (d) through (f) of
      this Section 6.20 in respect of the Trust Fund as and to the extent required
      under the Exchange Act.

     

    
      
        
        

      

      
        126

        
          

        

      

      
        
        

      

    

     

    (d)  Reports
      Filed on Form 10-D.

     

    (i)
        Within
      15
      days after each Distribution Date (subject to permitted extensions under the
      Exchange Act), the Trustee, shall prepare and file on behalf of the Trust Fund
      any Form 10-D required by the Exchange Act, in form and substance as required
      by
      the Exchange Act. The Trustee shall file each Form 10-D with a copy of the
      related Distribution Date Statement and a copy of each report made available
      by
      the Credit Risk Manager pursuant to Section 9.34 (provided each such report
      is
      made available to the Trustee in a format compatible with EDGAR filing
      requirements) attached thereto. Any disclosure in addition to the Distribution
      Date Statement that is required to be included on Form 10-D (“Additional Form
      10-D Disclosure”) shall be determined and prepared by and at the direction of
      the Depositor pursuant to the following paragraph and the Trustee will have
      no
      duty or liability for any failure hereunder to determine or prepare any
      Additional Form 10-D Disclosure, except as set forth in the next
      paragraph.

     

    (ii)
        As
      set
      forth on Exhibit P-1 hereto, within five calendar days after the related
      Distribution Date, (A) certain parties to the BNC Mortgage Loan Trust 2006-1
      transaction shall be required to provide to the Depositor and the Trustee,
      to
      the extent known by a responsible officer thereof, in EDGAR-compatible form
      (which may be Word or Excel documents easily convertible to EDGAR format),
      or in
      such other form as otherwise agreed upon by the Trustee and such party, the
      form
      and substance of any Additional Form 10-D Disclosure, if applicable, and include
      with such Additional Form 10-D Disclosure, an Additional Disclosure Notification
      in the form attached hereto as Exhibit P-4 and (B) the Depositor will approve,
      as to form and substance, or disapprove, as the case may be, the inclusion
      of
      the Additional Form 10-D Disclosure on Form 10-D. The Sponsor will be
      responsible for any reasonable fees and expenses assessed or incurred by the
      Trustee in connection with including any Additional Form 10-D Disclosure on
      Form
      10-D pursuant to this paragraph.

     

    (iii)
        After
      preparing the Form 10-D, the Trustee shall forward electronically a draft copy
      of the Form 10-D to the Exchange Act Signing Party for review and approval.
      If
      the Master Servicer is the Exchange Act Signing Party and the Form 10-D includes
      Additional Form 10-D Disclosure, then the Form 10-D shall also be electronically
      distributed to the Depositor for review and approval. No later than two Business
      Days prior to the 15th
      calendar
      day after the related Distribution Date, a duly authorized representative of
      the
      Exchange Act Signing Party shall sign the Form 10-D and return an electronic
      or
      fax copy of such signed Form 10-D (with an original executed hard copy to follow
      by overnight mail) to the Trustee. If a Form 10-D cannot be filed on time or
      if
      a previously filed Form 10-D needs to be amended, the Trustee will follow the
      procedures set forth in subsection (g)(ii) of this Section 6.20. Promptly (but
      no later than one Business Day) after the deadline for filing such report with
      the Commission, the Trustee will make available on its internet website a final
      executed copy of each Form 10-D filed by the Trustee. Each party to this
      Agreement acknowledges that the performance by the Trustee of its duties under
      this Section 6.20(d) related to the timely preparation and filing of Form 10-D
      is contingent upon such parties strictly observing all applicable deadlines
      in
      the performance of their duties under this Section 6.20(d). The Trustee shall
      have no liability for any loss, expense, damage, claim arising out of or with
      respect to any failure to properly prepare and/or timely file such Form 10-D,
      where such failure results from the Trustee’s inability or failure to obtain or
      receive, on a timely basis, any information from any other party hereto needed
      to prepare, arrange for execution or file such Form 10-D, not resulting from
      its
      own negligence, bad faith or willful misconduct.

     

    
      
        
        

      

      
        127

        
          

        

      

      
        
        

      

    

     

    (iv)
        Form
      10-D
      requires the registrant to indicate (by checking "yes" or "no") that it “(1) has
      filed all reports required to be filed by Section 13 or 15(d) of the Exchange
      Act during the preceding 12 months (or for such shorter period that the
      registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past 90 days.” The Depositor hereby represents to
      the Trustee that the Depositor has filed all such required reports during the
      preceding 12 months and that it has been subject to such filing requirement
      for
      the past 90 days. The Depositor shall notify the Trustee in writing, no later
      than the fifth calendar day after the related Distribution Date with respect
      to
      the filing of a report on Form 10-D if the answer to the questions should be
      “no.” The Trustee shall be entitled to rely on such representations in
      preparing, executing and/or filing any such report

     

    (e)  Reports
      Filed on Form 10-K.

     

    (i)
        Unless
      and until a Form 15 suspension notice shall have been filed, within 90 days
      after the end of each fiscal year of the Trust Fund or such earlier date as
      may
      be required by the Exchange Act (the “10-K Filing Deadline”) (it being
      understood that the fiscal year for the Trust Fund ends on December
      31st
      of each
      year), commencing in March 2007, the Trustee shall prepare and file on behalf
      of
      the Trust Fund a Form 10-K, in form and substance as required by the Exchange
      Act. To facilitate the Trustee’s preparation of the Form 10-K, the Depositor
      shall provide to the Trustee, no later than 30 days prior to the 10-K Filing
      Deadline, a template of the Form 10-K in an Edgar-compatible format. Each such
      Form 10-K shall include the following items, in each case to the extent they
      have been delivered to the Trustee within the applicable time frames set forth
      in this Agreement and in the related Servicing Agreements and the Custodial
      Agreement, (A) an annual compliance statement for each Servicer, each Additional
      Servicer and the Master Servicer, as described under Section 9.26 hereof and
      in
      each Servicing Agreement, (B)(I) the annual reports on assessment of compliance
      with servicing criteria for each Servicer, the Custodian, each Additional
      Servicer, the Master Servicer, the Credit Risk Manager, any Servicing Function
      Participant, the Paying Agent (if other than the Trustee) and the Trustee (each,
      a “Reporting Servicer”), as described under Section 9.25(a) hereof and in the
      Servicing Agreement and Custodial Agreement, and (II) if any Reporting
      Servicer’s report on assessment of compliance with servicing criteria described
      under Section 9.25(a) hereof or in each Servicing Agreement or Custodial
      Agreement identifies any material instance of noncompliance, disclosure
      identifying such instance of noncompliance, or if any Reporting Servicer’s
      report on assessment of compliance with servicing criteria described under
      Section 9.25(a) hereof or in any Servicing Agreement or Custodial Agreement
      is
      not included as an exhibit to such Form 10-K, disclosure that such report is
      not
      included and an explanation why such report is not included, (C)(I) the
      registered public accounting firm attestation report for each Reporting
      Servicer, as described under Section 9.25(b) hereof and in each Servicing
      Agreement and Custodial Agreement and (II) if any registered public accounting
      firm attestation report described under Section 9.25(b) hereof or in any
      Servicing Agreement or Custodial Agreement identifies any material instance
      of
      noncompliance, disclosure identifying such instance of noncompliance, or if
      any
      such registered public accounting firm attestation report is not included as
      an
      exhibit to such Form 10-K, disclosure that such report is not included and
      an
      explanation why such report is not included, and (D) a Sarbanes-Oxley
      Certification. Any disclosure or information in addition to (A) through (D)
      above that is required to be included on Form 10-K (“Additional Form 10-K
      Disclosure”) shall be determined and prepared by and at the direction of the
      Depositor pursuant to the following paragraph and the Trustee will have no
      duty
      or liability for any failure hereunder to determine or prepare any Additional
      Form 10-K Disclosure, except as set forth in the next paragraph. 

     

    
      
        
        

      

      
        128

        
          

        

      

      
        
        

      

    

     

    (ii)
        As
      set
      forth on Exhibit P-2 hereto, no later than March 15 of each year that the Trust
      Fund is subject to the Exchange Act reporting requirements, commencing in 2007,
      (A) certain parties to the BNC Mortgage Loan Trust 2006-1 transaction shall
      be
      required to provide to the Depositor and the Trustee, to the extent known by
      a
      responsible officer thereof, in EDGAR-compatible form (which may be Word or
      Excel documents easily convertible to EDGAR format), or in such other form
      as
      otherwise agreed upon by the Trustee and such party, the form and substance
      of
      any Additional Form 10-K Disclosure, if applicable, and include with such
      Additional Form 10-K Disclosure, an Additional Disclosure Notification in the
      form attached hereto as Exhibit P-4 and (B) the Depositor will approve, as
      to
      form and substance, or disapprove, as the case may be, the inclusion of the
      Additional Form 10-K Disclosure on Form 10-K. The Trustee has no duty under
      this
      Agreement to monitor or enforce the performance by the parties listed on Exhibit
      P-2 of their duties under this paragraph or proactively solicit or procure
      from
      such parties any Form 10-K Disclosure Information. The Sponsor will be
      responsible for any reasonable fees and expenses assessed or incurred by the
      Trustee in connection with including any Additional Form 10-K Disclosure on
      Form
      10-K pursuant to this paragraph. 

     

    (iii)
        After
      preparing the Form 10-K, the Trustee shall forward electronically a draft copy
      of the Form 10-K to the Exchange Act Signing Party for review and approval.
      If
      the Master Servicer is the Exchange Act Signing Party and the Form 10-K includes
      Additional Form 10-K Disclosure, then the Form 10-K shall also be electronically
      distributed to the Depositor for review and approval. No later than the close
      of
      business New York City time on the fourth Business Day prior to the 10-K Filing
      Deadline, a senior officer of the Exchange Act Signing Party shall sign the
      Form
      10-K and return an electronic or fax copy of such signed Form 10-K (with an
      original executed hard copy to follow by overnight mail) to the Trustee. If
      a
      Form 10-K cannot be filed on time or if a previously filed Form 10-K needs
      to be
      amended, the Trustee will follow the procedures set forth in subsection (g)
      of
      this Section 6.20. Promptly (but no later than one Business Day) after the
      deadline for filing such report with the Commission, the Trustee will make
      available on its internet website a final executed copy of each Form 10-K filed
      by the Trustee. The parties to this Agreement acknowledge that the performance
      by the Trustee of its duties under this Section 6.20(e) related to the timely
      preparation and filing of Form 10-K is contingent upon such parties (and any
      Additional Servicer or Servicing Function Participant) strictly observing all
      applicable deadlines in the performance of their duties under this Section
      6.20(e), Section 9.25(a), Section 9.25(b) and Section 9.26. The Trustee shall
      have no liability for any loss, expense, damage, claim arising out of or with
      respect to any failure to properly prepare and/or timely file such Form 10-K,
      where such failure results from the Trustee’s inability or failure to obtain or
      receive, on a timely basis, any information from any other party hereto needed
      to prepare, arrange for execution or file such Form 10-K, not resulting from
      its
      own negligence, bad faith or willful misconduct.

     

    
      
        
        

      

      
        129

        
          

        

      

      
        
        

      

    

     

    (iv)
        Each
      Form
      10-K shall include the Sarbanes-Oxley Certification. The Trustee, the Paying
      Agent and, if the Depositor is the Exchange Act Signing Party, the Master
      Servicer, shall, and the Trustee, the Paying Agent and the Master Servicer
      (if
      applicable) shall cause any Servicing Function Participant engaged by it to,
      provide to the Person who signs the Sarbanes-Oxley Certification (the
“Certifying Person”), by March 15 of each year in which the Trust Fund is
      subject to the reporting requirements of the Exchange Act (each, a “Back-Up
      Certification”), in the form attached hereto as Exhibit Q-1 (or, in the case of
      (x) the Paying Agent (if other than the Trustee), such other form as agreed
      to between the Paying Agent and the Exchange Act Signing Party, and (y) the
      Trustee, the form attached hereto as Exhibit Q-2), upon which the Certifying
      Person, the entity for which the Certifying Person acts as an officer, and
      such
      entity’s officers, directors and Affiliates (collectively with the Certifying
      Person, “Certification Parties”) can reasonably rely. The senior officer of the
      Exchange Act Signing Party shall serve as the Certifying Person on behalf of
      the
      Trust Fund. In the event the Master Servicer, the Trustee, the Paying Agent
      or
      any Servicing Function Participant engaged by such parties is terminated or
      resigns pursuant to the terms of this Agreement, such party or Servicing
      Function Participant shall provide a Back-Up Certification to the Certifying
      Person pursuant to this Section 6.20(e)(iv) with respect to the period of time
      it was subject to this Agreement.

     

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

     

    (vi)
        Form
      10-K
      requires the registrant to indicate (by checking "yes" or "no") that it “(1) has
      filed all reports required to be filed by Section 13 or 15(d) of the Exchange
      Act during the preceding 12 months (or for such shorter period that the
      registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past 90 days.” The Depositor hereby represents to
      the Trustee that the Depositor has filed all such required reports during the
      preceding 12 months and that it has been subject to such filing requirement
      for
      the past 90 days. The Depositor shall notify the Trustee in writing, no later
      than March 15th
      with
      respect to the filing of a report on Form 10-K, if the answer to the questions
      should be “no.” The Trustee shall be entitled to rely on such representations in
      preparing, executing and/or filing any such report.

     

    
      
        
        

      

      
        130

        
          

        

      

      
        
        

      

    

     

    (f)  Reports
      Filed on Form 8-K.

     

    (i)
        Within
      four Business Days after the occurrence of an event requiring disclosure on
      Form
      8-K (each such event, a “Reportable Event”) or such later date as may be
      required by the Commission, and if requested by the Depositor, the Trustee
      shall
      prepare and file on behalf of the Trust Fund any Form 8-K, as required by the
      Exchange Act; provided
      that the
      Depositor shall file the initial Form 8-K in connection with the issuance of
      the
      Certificates. Any disclosure or information related to a Reportable Event or
      that is otherwise required to be included on Form 8-K (“Form 8-K Disclosure
      Information”) shall be determined and prepared by and at the direction of the
      Depositor pursuant to the following paragraph and the Trustee will have no
      duty
      or liability for any failure hereunder to determine or prepare any Form 8-K
      Disclosure Information or any Form 8-K, except as set forth in the next
      paragraph. 

     

    (ii)
        As
      set
      forth on Exhibit P-3 hereto, for so long as the Trust Fund is subject to the
      Exchange Act reporting requirements, no later than Noon New York City time
      on
      the second Business Day after the occurrence of a Reportable Event (A) certain
      parties to the BNC Mortgage Loan Trust 2006-1 transaction shall be required
      to
      provide to the Depositor and the Trustee, to the extent known by a responsible
      officer thereof, in EDGAR-compatible form (which may be Word or Excel documents
      easily convertible to EDGAR format), or in such other form as otherwise agreed
      upon by the Trustee and such party, the form and substance of any Form 8-K
      Disclosure Information, if applicable, and include with such Form 8-K Disclosure
      Information, an Additional Disclosure Notification in the form attached hereto
      as Exhibit P-4 and (B) the Depositor will approve, as to form and substance,
      or
      disapprove, as the case may be, the inclusion of the Form 8-K Disclosure
      Information. The Trustee has no duty under this Agreement to monitor or enforce
      the performance by the parties listed on Exhibit P-3 of their duties under
      this
      paragraph or proactively solicit or procure from such parties any Form 8-K
      Disclosure Information. The Sponsor will be responsible for any reasonable
      fees
      and expenses assessed or incurred by the Trustee in connection with including
      any Form 8-K Disclosure Information on Form 8-K pursuant to this paragraph.
      

     

    (iii)
        After
      preparing the Form 8-K, the Trustee shall forward electronically, no later
      than
      Noon New York City time on the third Business Day after the Reportable Event,
      a
      draft copy of the Form 8-K to the Exchange Act Signing Party for review and
      approval. If the Master Servicer is the Exchange Act Signing Party, then the
      Form 8-K shall also be electronically distributed to the Depositor for review
      and approval. No later than Noon New York City time on the fourth Business
      Day
      after the Reportable Event, a senior officer of the Exchange Act Signing Party
      shall sign the Form 8-K and return an electronic or fax copy of such signed
      Form
      8-K (with an original executed hard copy to follow by overnight mail) to the
      Trustee. If a Form 8-K cannot be filed on time or if a previously filed Form
      8-K
      needs to be amended, the Trustee will follow the procedures set forth in
      subsection (g) of this Section 6.20. Promptly (but no later than one Business
      Day) after the deadline for filing such Form with the Commission, the Trustee
      will make available on its internet website a final executed copy of each Form
      8-K filed by it pursuant to this Section 6.20(f). The parties to this Agreement
      acknowledge that the performance by the Trustee of its duties under this Section
      6.20(f) related to the timely preparation and filing of Form 8-K is contingent
      upon such parties strictly observing all applicable deadlines in the performance
      of their duties under this Section 6.20(f). The Trustee shall have no liability
      for any loss, expense, damage or claim arising out of or with respect to any
      failure to properly prepare and/or timely file such Form 8-K, where such failure
      results from the Trustee’s inability or failure to obtain or receive, on a
      timely basis, any information from any other party hereto needed to prepare,
      arrange for execution or file such Form 8-K, not resulting from its own
      negligence, bad faith or willful misconduct. 

     

    
      
        
        

      

      
        131

        
          

        

      

      
        
        

      

    

     

    (g)  Suspension
      of Reporting Obligations; Amendments; Late Filings.

     

    (i)
        On
      or
      before January 30 of the first year in which the Trustee is able to do so under
      applicable law, unless otherwise directed by the Depositor, the Trustee shall
      prepare and file a Form 15 relating to the automatic suspension of reporting
      in
      respect of the Trust Fund under the Exchange Act. 

     

    (ii)
        In
      the
      event that the Trustee becomes aware that it will be unable to timely file
      with
      the Commission all or any required portion of any Form 8-K, 10-D or 10-K
      required to be filed by this Agreement because required disclosure information
      was either not delivered to it or delivered to it after the delivery deadlines
      set forth in this Agreement or for any other reason, the Trustee will promptly
      notify the Depositor. In the case of Form 10-D and 10-K, the parties to this
      Agreement and each Servicer will cooperate to prepare and file a Form 12b-25
      and
      a 10-D/A and 10-K/A as applicable, pursuant to Rule 12b-25 of the Exchange
      Act.
      In the case of Form 8-K, the Trustee will, upon receipt of all required Form
      8-K
      Disclosure Information and upon the approval and direction of the Depositor,
      include such disclosure information on the next Form 10-D. In the event that
      any
      previously filed Form 8-K, 10-D or 10-K needs to be amended with respect to
      an
      additional disclosure item, the Trustee will notify the Depositor and any
      applicable party and such parties will cooperate to prepare any necessary 8-K/A,
      10-D/A or 10-K/A. Any Form 15, Form 12b-25 or any amendment to Form 8-K, 10-D
      or
      10-K shall be signed by a senior officer or a duly authorized representative,
      as
      applicable, of the Exchange Act Signing Party. The parties to this Agreement
      acknowledge that the performance by the Trustee of its duties under this Section
      6.20(g) related to the timely preparation and filing of Form 15, a Form 12b-25
      or any amendment to Form 8-K, 10-D or 10-K is contingent upon each such party
      performing its duties under this Section. The Trustee shall have no liability
      for any loss, expense, damage, claim arising out of or with respect to any
      failure to properly prepare and/or timely file any such Form 15, Form 12b-25
      or
      any amendments to Forms 8-K, 10-D or 10-K, where such failure results from
      the
      Trustee’s inability or failure to obtain or receive, on a timely basis, any
      information from any other party hereto needed to prepare, arrange for execution
      or file such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K,
      not resulting from its own negligence, bad faith or willful
      misconduct.

     

    
      
        
        

      

      
        132

        
          

        

      

      
        
        

      

    

     

    (h)  Any
      party
      that signs any Exchange Act report that the Trustee is required to file shall
      provide to the Trustee prompt notice of the execution of such Exchange Act
      report along with the name and contact information for the person signing such
      report and shall promptly deliver to the Trustee the original executed signature
      page for such report. In addition, each of the parties agrees to provide to
      the
      Trustee such additional information related to such party as the Trustee may
      reasonably request, including evidence of the authorization of the person
      signing any certification or statement, financial information and reports,
      and
      such other information related to such party or its performance hereunder.
      

     

    (i)  The
      Depositor and the Master Servicer, by mutual agreement, shall determine which
      of
      the Depositor or the Master Servicer shall be the initial Exchange Act Signing
      Party. Upon such determination, the Depositor shall timely notify the Trustee,
      and such notice shall provide contact information for the Exchange Act Signing
      Party. If the Depositor and Master Servicer, at any time, mutually agree to
      change the identity of the Exchange Act Signing Party, the Depositor shall
      provide timely notice to the Trustee of any such change.

    
      
         

        
          	
                  Section
                    6.21 

                	
                  Reporting
                    Requirements of the Commission.

                

        

      

    

     

    Each
      of
      the parties hereto acknowledges and agrees that the purpose of Sections 6.01
      and
      6.20 of this Agreement is to facilitate compliance by the Sponsor, the Master
      Servicer and the Depositor with the provisions of Regulation AB, as such may
      be
      amended or clarified from time to time. Therefore, each of the parties agrees
      that (a) the obligations of the parties hereunder shall be interpreted in such
      a
      manner as to accomplish compliance with Regulation AB, (b) the parties’
obligations hereunder will be supplemented and modified as necessary to be
      consistent with any such amendments, interpretive advice or guidance, convention
      or consensus among active participants in the asset-backed securities markets,
      advice of counsel, or otherwise in respect of the requirements of Regulation
      AB
      and (c) the parties shall comply with reasonable requests made by the Sponsor,
      the Master Servicer, the Depositor or the Trustee for delivery of additional
      or
      different information, to the extent such information is available or reasonably
      attainable within such time frame as may be requested, as the Sponsor, the
      Master Servicer, the Depositor or the Trustee may determine in good faith is
      necessary to comply with the provisions of Regulation AB.

     

    Section
      6.22  No
      Merger.

     

    The
      Trustee shall not cause or otherwise knowingly permit the assets of the Trust
      Fund to be merged or consolidated with any other entity, except as a result
      of a
      final judicial determination.

    
       

    

    
      
        	
                Section
                  6.23

              	
                
                  Indemnification
                    by the
                    Trustee.

                

              

      

       

    

    The
      Trustee agrees to indemnify the Sponsor, the Depositor and the Master Servicer,
      and each of their respective directors, officers, employees and agents and
      the
      Trust Fund 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
      Section 6.01(l) or any failure by the Trustee to deliver any assessment of
      compliance, information, report or certification when and as required under
      Section 6.20 or Section 9.25(a). 

     

    
      
        
        

      

      
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      ARTICLE
        VII

       

      PURCHASE
        OF MORTGAGE LOANS AND

      TERMINATION
        OF THE TRUST FUND

       

      
        	
                Section
                  7.01

              	
                Purchase
                  of Mortgage Loans; Termination of Trust Fund Upon Purchase or Liquidation
                  of All Mortgage Loans;
                  Purchase of Lower Tier REMIC 1 Uncertificated Regular
                  Interests. 

              

      

       

      (a) The
        respective obligations and responsibilities of the Trustee and the Master
        Servicer created hereby (other than the obligation of the Trustee to make
        payments to Certificateholders and the Swap Counterparty as set forth in
        Section
        7.02, the obligation of the Master Servicer to make a final remittance to
        the
        Trustee pursuant to Section 4.01, and the obligations of the Master Servicer
        to
        the Trustee pursuant to Sections 9.10, 9.14 and 9.31) shall terminate on
        the
        earliest of (i) the final payment or other liquidation of the last Mortgage
        Loan
        remaining in the Trust Fund and the disposition of all REO Property, (ii)
        the
        sale of the property held by the Trust Fund in accordance with Section 7.01(b)
        and (iii) the Latest Possible Maturity Date (each, a “Trust Fund Termination
        Event”); provided,
        however,
        that in
        no event shall the Trust Fund created hereby continue beyond the expiration
        of
        21 years from the death of the last survivor of the descendants of Joseph
        P.
        Kennedy, the late Ambassador of the United States to the Court of St. James’s,
        living on the date hereof. Upon the occurrence of a Trust Fund Termination
        Event, each REMIC shall be terminated in a manner that shall qualify as a
        “qualified liquidation” under the REMIC Provisions.

       

      (b) On
        any
        Distribution Date occurring on or after the Initial Optional Termination
        Date,
        the Master Servicer or LTURI-holder, as applicable, with the prior written
        consent of any NIMS Insurer and the Seller, which consent shall not be
        unreasonably withheld, has the option to cause the Trust Fund to adopt a
        plan of
        complete liquidation pursuant to Section 7.03(a)(i) hereof to sell all of
        its
        property. Upon exercise of such option, the property of the Trust Fund shall
        be
        sold to the Master Servicer at a price (the “Termination Price”) equal to the
        sum of (i) 100% of the unpaid principal balance of each Mortgage Loan on
        the day
        of such purchase plus interest accrued thereon at the applicable Mortgage
        Rate
        with respect to any Mortgage Loan to the Due Date in the Collection Period
        immediately preceding the related Distribution Date to the date of such
        repurchase, (ii) the fair market value of any REO Property and any other
        property held by any REMIC, such fair market value to be determined by an
        independent appraiser or appraisers mutually agreed upon by the Master Servicer,
        any NIMS Insurer and the Trustee (reduced, in the case of REO Property, by
        (1)
        reasonably anticipated disposition costs and (2) any amount by which the
        fair
        market value as so reduced exceeds the outstanding principal balance of the
        related Mortgage Loan plus interest accrued thereon at the applicable Net
        Mortgage Rate to the date of such purchase), (iii) any unreimbursed Servicing
        Advances and (iv) any Swap Termination Payment payable to the Swap Counterparty
        as a result of a termination pursuant to this Section 7.01; provided,
        however, if
        there
        are any NIM Securities outstanding, the Master Servicer may only exercise
        its
        option after receiving the prior written consent of the holders of such NIM
        Securities and, if such consent is given, the Termination Price shall also
        include an amount equal to the sum of (1) any accrued interest on the NIM
        Securities, (2) the unpaid principal balance of any such NIM Securities and
        (3)
        any other reimbursable expenses owed by the issuer of the NIM Securities
        (the
“NIM Redemption Amount”). The Master Servicer, each Servicer, the Trustee and
        the Custodian shall be reimbursed from the Termination Price for any Mortgage
        Loan or related REO Property for any Advances made or other amounts advanced
        with respect to the Mortgage Loans that are reimbursable to any such entity
        under this Agreement, the applicable Servicing Agreement or the Custodial
        Agreement, together with any accrued and unpaid compensation and any other
        amounts due to the Master Servicer or the Trustee hereunder or the Servicers
        or
        the Custodian. If the NIMS Insurer directs the Master Servicer to exercise
        its
        right to cause the Trust Fund to adopt a plan of complete liquidation as
        described above, then (i) the Master Servicer shall cause the Trust Fund
        to
        adopt a plan of complete liquidation as described above, (ii) the NIMS Insurer
        shall remit the Termination Price in immediately available funds to the Master
        Servicer at least three Business Days prior to the applicable Distribution
        Date
        and, upon receipt of such funds from the NIMS Insurer, the Master Servicer
        shall
        promptly deposit such funds in the Collection Account and (iii) upon termination
        of the Trust Fund, the Trustee will transfer the property of the Trust Fund
        to
        the NIMS Insurer. The NIMS Insurer shall be obligated to reimburse the Master
        Servicer and the Trustee for its reasonable out-of-pocket expenses incurred
        in
        connection with its termination of the Trust Fund at the direction of the
        NIMS
        Insurer and shall indemnify and hold harmless the Master Servicer and the
        Trustee for any losses, liabilities or expenses resulting from any claims
        arising out of or relating to the Master Servicer’s termination of the Trust
        Fund at the direction of the NIMS Insurer, except to the extent such losses,
        liabilities or expenses arise out of or result from the Master Servicer’s
        negligence, bad faith or willful misconduct.

       

      
        
          
          

        

        
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      (c) On
        any
        Distribution Date occurring on or after the Initial Optional Termination
        Date
        and provided there are no NIM Securities outstanding, the Master Servicer,
        with
        the prior written consent of the Seller, which consent shall not be unreasonably
        withheld, has the option to purchase all of the Lower Tier REMIC 1
        Uncertificated Regular Interests. Upon exercise of such option, the Lower
        Tier
        REMIC 1 Uncertificated Regular Interests shall be sold to the Master Servicer
        at
        a price (the “Lower Tier REMIC 1 Uncertificated Regular Interests Purchase
        Price”) equal to the sum of (i) 100% of the unpaid principal balance of each
        Mortgage Loan on the day of such purchase plus interest accrued thereon at
        the
        applicable Mortgage Rate with respect to any Mortgage Loan to the Due Date
        in
        the Collection Period immediately preceding the related Distribution Date
        to the
        date of such repurchase and (ii) the fair market value of any REO Property
        and
        any other property held by any REMIC, such fair market value to be determined
        by
        an independent appraiser or appraisers mutually agreed upon by the Master
        Servicer, any NIMS Insurer and the Trustee (reduced, in the case of REO
        Property, by (1) reasonably anticipated disposition costs and (2) any amount
        by
        which the fair market value as so reduced exceeds the outstanding principal
        balance of the related Mortgage Loan plus interest accrued thereon at the
        applicable Net Mortgage Rate to the date of such purchase). If the Master
        Servicer elects to exercise such option, each REMIC created pursuant to this
        Agreement (other than REMIC 1) shall be terminated in such a manner so that
        the
        termination of each such REMIC shall qualify as a “qualified liquidation” under
        the REMIC Provisions and the Lower Tier REMIC 1 Uncertificated Regular Interests
        and the Class LT-R Certificates will evidence the entire beneficial interest
        in
        the property of the Trust Fund. Following a purchase of the Lower Tier REMIC
        1
        Uncertificated Regular Interests pursuant to this subsection, the Trust Fund
        (and REMIC 1) will remain outstanding and final payment on the Certificates
        (other than the Class LT-R Certificates) will be made in accordance with
        Sections 7.03(a)(iii) and 5.02. The Trust Fund will terminate upon the
        occurrence of a Trust Fund Termination Event, in accordance with Section
        7.01(a).

       

      
        
          
          

        

        
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                Section
                  7.02

              	
                Procedure
                  Upon Termination of Trust Fund or Purchase of Lower Tier REMIC
                  1
                  Uncertificated Regular Interests.  

              

      

       

      (a) Notice
        of
        any Trust Fund Termination Event and notice of the purchase of the Lower
        Tier
        REMIC 1 Uncertificated Regular Interests, specifying the Distribution Date
        upon
        which the final distribution to the Certificates (other than the Class LT-R
        Certificates, in the case of a purchase of the Lower Tier REMIC 1 Uncertificated
        Regular Interests) shall be made, shall be given by the Trustee by first
        class
        mail to Certificateholders mailed promptly (and in no event later than five
        Business Days) (x) after the Trustee has received notice from the Master
        Servicer or the LTURI-holder, as applicable, of its election to cause (1)
        the
        sale of all of the property of the Trust Fund pursuant to Section 7.01(b)
        or (2)
        the purchase of the Lower Tier REMIC 1 Uncertificated Regular Interests pursuant
        to Section 7.01(c), or (y) upon the final payment or other liquidation of
        the
        last Mortgage Loan or REO Property in the Trust Fund. In the case of a Trust
        Fund Termination Event, the Trustee shall also give notice to the Master
        Servicer, the Swap Counterparty, the Cap Counterparty and the Certificate
        Registrar at the time notice is given to Holders.

       

      In
        the
        case of a Trust Fund Termination Event, such notice shall specify (A) the
        Distribution
        Date
        upon which final distribution on the Certificates or Lower Tier REMIC 1
        Uncertificated Regular Interests of all amounts required to be distributed
        to
        Certificateholders pursuant to Section 5.02 will be made upon presentation
        and
        surrender of the Certificates at the Corporate Trust Office, and (B) that
        the
        Record Date otherwise applicable to such Distribution Date is not applicable,
        distribution being made only upon presentation and surrender of the Certificates
        at the office or agency of the Trustee therein specified. Upon any such Trust
        Fund Termination Event, the duties of the Certificate Registrar with respect
        to
        the Certificates or Lower Tier REMIC 1 Uncertificated Regular Interests shall
        terminate and the Trustee shall terminate or request the Master Servicer
        to
        terminate, the Collection Account it maintains, the Certificate Account and any
        other account or fund maintained with respect to the Certificates or Lower
        Tier
        REMIC 1 Uncertificated Regular Interests, subject to the Trustee’s obligation
        hereunder to hold all amounts payable to Certificateholders in trust without
        interest pending such payment. 

      

      In
        the
        case of a purchase of the Lower Tier REMIC 1 Uncertificated Regular Interests,
        such notice shall specify (A) the Distribution Date upon which final
        distribution on the Certificates (other than the Class LT-R Certificates)
        of all
        amounts required to be distributed to Certificateholders pursuant to Section
        5.02 (other than any distributions to the Class LT-R Certificates in respect
        of
        REMIC 1) will be made upon presentation and surrender of the Certificates
        (other
        than the Class LT-R Certificates) at the Corporate Trust Office, and (B)
        that
        the Record Date otherwise applicable to such Distribution Date is not
        applicable, distribution being made only upon presentation and surrender
        of the
        Certificates (other than the Class LT-R Certificates) at the office or agency
        of
        the Trustee therein specified. Upon any such purchase of the Lower Tier REMIC
        1
        Uncertificated Regular Interests, the duties of the Certificate Registrar
        with
        respect to the Certificates other than the Class LT-R Certificate shall
        terminate but the Trustee shall not terminate or request the Master Servicer
        to
        terminate, the Collection Account it maintains, the Certificate Account and
        any
        other account or fund maintained with respect to the Certificates, subject
        to
        the Trustee’s obligation hereunder to hold all amounts payable to
        Certificateholders in trust without interest pending such payment. For all
        Distribution Dates following the Distribution Date on which the Master Servicer
        purchases the Lower Tier REMIC 1 Uncertificated Regular Interests, all amounts
        that would be distributed on the Certificates (other than the Class LT-R
        Certificate and exclusive of amounts payable from any fund held outside of
        REMIC
        1) absent such purchase shall be payable to the LTURI-holder.

      

      
        
          
          

        

        
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      (b) In
        the
        event that all of the Holders do not surrender their Certificates for
        cancellation within three months after the time specified in the above-mentioned
        written notice, the Trustee shall give a second written notice to the remaining
        Certificateholders to surrender their Certificates for cancellation and receive
        the final distribution with respect thereto. If within one year after the
        second
        notice any Certificates shall not have been surrendered for cancellation,
        the
        Trustee may take appropriate steps to contact the remaining Certificateholders
        concerning surrender of such Certificates, and the cost thereof shall be
        paid
        out of the amounts distributable to such Holders. If within two years after
        the
        second notice any Certificates shall not have been surrendered for cancellation,
        the Trustee shall, subject to applicable state law relating to escheatment,
        hold
        all amounts distributable to such Holders for the benefit of such Holders.
        No
        interest shall accrue on any amount held by the Trustee and not distributed
        to a
        Certificateholder due to such Certificateholder’s failure to surrender its
        Certificate(s) for payment of the final distribution thereon in accordance
        with
        this Section.

       

      (c) Any
        reasonable expenses incurred by the Trustee in connection with any Trust
        Fund
        Termination Event or any purchase of the Lower Tier REMIC 1 Uncertificated
        Regular Interests shall be reimbursed from proceeds received from such
        termination or purchase.

       

      
        	
                Section
                  7.03

              	
                Additional
                  Trust Fund Termination Event or Purchase of the Lower Tier REMIC
                  1
                  Uncertificated Regular Interests.  

              

      

       

      (a) Any
        termination of the Trust Fund pursuant to Section 7.01(a) or any termination
        of
        a REMIC pursuant to Section 7.01(c) shall be effected in accordance with
        the
        following additional requirements, unless the Trustee seeks (at the request
        of
        the party exercising the option to purchase all of the Mortgage Loans or
        Lower
        Tier REMIC 1 Uncertificated Regular Interests pursuant to Section 7.01(b)
        or
        Section 7.01(c), respectively), and subsequently receives, an Opinion of
        Counsel
        (at the expense of such requesting party), addressed to the Trustee and any
        NIMS
        Insurer to the effect that the failure to comply with the requirements of
        this
        Section 7.03 will not result in an Adverse REMIC Event:

       

      (i)
         Within
        89
        days prior to the time of the making of the final payment on the Certificates
        (other than the Class LT-R Certificates, in the case of a purchase of the
        Lower
        Tier REMIC 1 Uncertificated Regular Interests, upon notification by the Master
        Servicer, any NIMS Insurer or an Affiliate of the Seller that it intends
        to
        exercise its option to cause the termination of the Trust Fund or purchase
        the
        Lower Tier REMIC 1 Uncertificated Regular Interests, the Trustee shall adopt
        a
        plan of complete liquidation on behalf of each REMIC (other than REMIC 1,
        in the
        case of a purchase of the Lower Tier REMIC 1 Uncertificated Regular Interests),
        meeting the requirements of a qualified liquidation under the REMIC
        Provisions;

       

      
        
          
          

        

        
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      (ii)
         Any
        sale
        of the assets of the Trust Fund or the Lower Tier REMIC 1 Uncertificated
        Regular
        Interests pursuant to Section 7.02 shall be a sale for cash and shall occur
        at
        or after the time of adoption of such a plan of complete liquidation and
        prior
        to the time of making of the final payment on the Certificates (other than
        the
        Class LT-R Certificates, in the case of a purchase of the Lower Tier REMIC
        1
        Uncertificated Regular Interests);

       

      (iii)
         On
        the
        date specified for final payment of the Certificates (other than the Class
        LT-R
        Certificates, in the case of a purchase of the Lower Tier REMIC 1 Uncertificated
        Regular Interests), the Trustee shall make final distributions of principal
        and
        interest on such Certificates and shall pay, in the case of a Trust Fund
        Termination Event, any Swap Termination Payment owed to the Swap Counterparty
        on
        the related Swap Payment Date (to the extent not paid on previous Swap Payment
        Dates) in accordance with Section 5.02. In the case of a Trust Fund Termination
        Event, and, after payment of, or provision for any outstanding expenses,
        the
        Trustee shall distribute or credit, or cause to be distributed or credited,
        to
        the Holders of the Residual Certificates all cash on hand after such final
        payment (other than cash retained to meet claims), and the Trust Fund (and
        each
        REMIC) shall terminate at that time; and

       

      (iv)
         In
        no
        event may the final payment on the Certificates or the final distribution
        or
        credit to the Holders of the Residual Certificates in respect of the residual
        interest in any liquidated REMIC be made after the 89th day from the date
        on
        which the plan of complete liquidation for such REMIC is adopted.

       

      (b) By
        its
        acceptance of a Residual Certificate, each Holder thereof hereby agrees to
        accept the plan of complete liquidation prepared by the Depositor and adopted
        by
        the Trustee under this Section and to take such other action in connection
        therewith as may be reasonably requested by the Master Servicer or any
        Servicer.

       

      (c)  In
        connection with the termination of the Trust Fund, or a Section 7.01(c) Purchase
        Event, the Trustee may request an Opinion of Counsel addressed to the Trustee
        (at the expense of the Depositor) to the effect that all the requirements
        of a
        qualified liquidation under the REMIC Provisions have been met.

       

      
        	
                Section
                  7.04

              	
                Optional
                  Repurchase Right.

              

      

       

      The
        NIMS
        Insurer, if any, may repurchase any Distressed Mortgage Loan for a purchase
        price equal to the outstanding principal balance of such Mortgage Loan, plus
        accrued interest thereon to the date of repurchase plus any unreimbursed
        Advances, Servicing Advances or Servicing Fees allocable to such Distressed
        Mortgage Loan. Any such repurchase shall be accomplished by the NIMS Insurer’s
        remittance of the purchase price for the Distressed Mortgage Loan to the
        Master
        Servicer for deposit into the Collection Account. The NIMS Insurer shall
        not use
        any procedure in selecting Distressed Mortgage Loans to be repurchased which
        would be materially adverse to Certificateholders.

       

      
        
          
          

        

        
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      ARTICLE
        VIII

       

      RIGHTS
        OF
        CERTIFICATEHOLDERS

       

      
        	
                Section
                  8.01

              	
                Limitation
                  on Rights of Holders.  

              

      

       

      (a) The
        death
        or incapacity of any Certificateholder shall not operate to terminate this
        Agreement or this Trust Fund, nor entitle such Certificateholder’s legal
        representatives or heirs to claim an accounting or take any action or proceeding
        in any court for a partition or winding up of this Trust Fund, nor otherwise
        affect the rights, obligations and liabilities of the parties hereto or any
        of
        them. Except as otherwise expressly provided herein, no Certificateholder,
        solely by virtue of its status as a Certificateholder, shall have any right
        to
        vote or in any manner otherwise control the Master Servicer or the operation
        and
        management of the Trust Fund, or the obligations of the parties hereto, nor
        shall anything herein set forth, or contained in the terms of the Certificates,
        be construed so as to constitute the Certificateholders from time to time
        as
        partners or members of an association, nor shall any Certificateholder be
        under
        any liability to any third person by reason of any action taken by the parties
        to this Agreement pursuant to any provision hereof.

       

      (b) No
        Certificateholder, solely by virtue of its status as Certificateholder, shall
        have any right by virtue or by availing of any provision of this Agreement
        to
        institute any suit, action or proceeding in equity or at law upon or under
        or
        with respect to this Agreement, unless such Holder previously shall have
        given
        to the Trustee a written notice of an Event of Default and of the continuance
        thereof, as hereinbefore provided, and unless also the Holders of Certificates
        evidencing not less than 25% of the Class Principal Amount (or Percentage
        Interest) of Certificates of each Class affected thereby shall, with the
        prior
        written consent of any NIMS Insurer, have made written request upon the Trustee
        to institute such action, suit or proceeding in its own name as Trustee
        hereunder and shall have offered to the Trustee such reasonable indemnity
        as it
        may require against the cost, expenses and liabilities to be incurred therein
        or
        thereby, and the Trustee, for sixty days after its receipt of such notice,
        request and offer of indemnity, shall have neglected or refused to institute
        any
        such action, suit or proceeding and no direction inconsistent with such written
        request has been given the Trustee during such sixty-day period by such
        Certificateholders or any NIMS Insurer; it being understood and intended,
        and
        being expressly covenanted by each Certificateholder with every other
        Certificateholder, any NIMS Insurer and the Trustee, that no one or more
        Holders
        of Certificates shall have any right in any manner whatever by virtue or
        by
        availing of any provision of this Agreement to affect, disturb or prejudice
        the
        rights of the Holders of any other of such Certificates or the rights of
        any
        NIMS Insurer, or to obtain or seek to obtain priority over or preference
        to any
        other such Holder or any NIMS Insurer, or to enforce any right under this
        Agreement, except in the manner herein provided and for the benefit of all
        Certificateholders. For the protection and enforcement of the provisions
        of this
        Section, each and every Certificateholder, the NIMS Insurer and the Trustee
        shall be entitled to such relief as can be given either at law or in
        equity.

       

      
        
          
          

        

        
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                Section
                  8.02

              	
                Access
                  to List of Holders.  

              

      

       

      (a) If
        the
        Trustee is not acting as Certificate Registrar, the Certificate Registrar
        will
        furnish or cause to be furnished to the Trustee and any NIMS Insurer, within
        fifteen days after receipt by the Certificate Registrar of a request by the
        Trustee or any NIMS Insurer in writing, a list, in such form as the Trustee
        may
        reasonably require, of the names and addresses of the Certificateholders
        of each
        Class as of the most recent Record Date.

       

      (b) If
        any
        NIMS Insurer or three or more Holders or Certificate Owners (hereinafter
        referred to as “Applicants”) apply in writing to the Trustee, and such
        application states that the Applicants desire to communicate with other Holders
        with respect to their rights under this Agreement or under the Certificates
        and
        is accompanied by a copy of the communication which such Applicants propose
        to
        transmit, then the Trustee shall, within five Business Days after the receipt
        of
        such application, afford such Applicants reasonable access during the normal
        business hours of the Trustee to the most recent list of Certificateholders
        held
        by the Trustee or shall, as an alternative, send, at the Applicants’ expense,
        the written communication proffered by the Applicants to all Certificateholders
        at their addresses as they appear in the Certificate Register.

       

      (c) Every
        Holder or Certificate Owner, if the Holder is a Clearing Agency, by receiving
        and holding a Certificate, agrees with the Depositor, the Master Servicer,
        any
        NIMS Insurer, the Certificate Registrar and the Trustee that neither the
        Depositor, the Master Servicer, any NIMS Insurer, the Certificate Registrar
        nor
        the Trustee shall be held accountable by reason of the disclosure of any
        such
        information as to the names and addresses of the Certificateholders hereunder,
        regardless of the source from which such information was derived.

       

      
        	
                Section
                  8.03

              	
                Acts
                  of Holders of Certificates.  

              

      

       

      (a) Any
        request, demand, authorization, direction, notice, consent, waiver or other
        action provided by this Agreement to be given or taken by Holders or Certificate
        Owner, if the Holder is a Clearing Agency, may be embodied in and evidenced
        by
        one or more instruments of substantially similar tenor signed by such Holders
        in
        person or by agent 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 Trustee and, where expressly required herein,
        to the Master Servicer. Such instrument or instruments (as the action embodies
        therein and evidenced thereby) are herein sometimes referred to as an “Act” of
        the Holders signing such instrument or instruments. Proof of execution of
        any
        such instrument or of a writing appointing any such agents shall be sufficient
        for any purpose of this Agreement and conclusive in favor of the Trustee
        and the
        Master Servicer, if made in the manner provided in this Section. Each of
        the
        Trustee and the Master Servicer shall promptly notify the others of receipt
        of
        any such instrument by it, and shall promptly forward a copy of such instrument
        to the others.

       

      (b) The
        fact
        and date of the execution by any Person of any such instrument or writing
        may be
        proved by the affidavit of a witness of such execution or by the certificate
        of
        any notary public or other officer authorized by law to take acknowledgments
        or
        deeds, certifying that the individual signing such instrument or writing
        acknowledged to him the execution thereof. Whenever such execution is by
        an
        officer of a corporation or a member of a partnership on behalf of such
        corporation or partnership, such certificate or affidavit shall also constitute
        sufficient proof of his authority. The fact and date of the execution of
        any
        such instrument or writing, or the authority of the individual executing
        the
        same, may also be proved in any other manner which the Trustee deems
        sufficient.

       

      
        
          
          

        

        
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      (c) The
        ownership of Certificates or Lower Tier REMIC 1 Uncertificated Regular Interests
        (whether or not such Certificates or Lower Tier REMIC 1 Uncertificated Regular
        Interests shall be overdue and notwithstanding any notation of ownership
        or
        other writing thereon made by anyone other than the Trustee) shall be proved
        by
        the Certificate Register, and none of the Trustee, the Master Servicer, the
        NIMS
        Insurer, or the Depositor shall be affected by any notice to the
        contrary.

       

      (d) Any
        request, demand, authorization, direction, notice, consent, waiver or other
        action by the Holder of any Certificate or Lower Tier REMIC 1 Uncertificated
        Regular Interest shall bind every future Holder of the same Certificate or
        Lower
        Tier REMIC 1 Uncertificated Regular Interest and the Holder of every Certificate
        or Lower Tier REMIC 1 Uncertificated Regular Interest issued upon the
        registration of transfer thereof or in exchange therefor or in lieu thereof,
        in
        respect of anything done, omitted or suffered to be done by the Trustee or
        the
        Master Servicer in reliance thereon, whether or not notation of such action
        is
        made upon such Certificate or Lower Tier REMIC 1 Uncertificated Regular
        Interest.

       

      ARTICLE
        IX

       

      ADMINISTRATION
        AND SERVICING OF MORTGAGE LOANS BY THE MASTER
SERVICER; CREDIT RISK
        MANAGER

       

      
        	
                Section
                  9.01

              	
                Duties
                  of the Master Servicer. 

              

      

       

      The
        Certificateholders, by their purchase and acceptance of the Certificates
        or
        Lower Tier REMIC 1 Uncertificated Regular Interests, appoint Aurora Loan
        Services LLC, as Master Servicer. For and on behalf of the Depositor, the
        Trustee and the Certificateholders, the Master Servicer shall master service
        the
        Mortgage Loans in accordance with the provisions of this Agreement and the
        provisions of each Servicing Agreement. Notwithstanding anything in this
        Agreement, any Servicing Agreement or any Credit Risk Management Agreement
        to
        the contrary, the Master Servicer shall have no duty or obligation to enforce
        any Credit Risk Management Agreement or to supervise, monitor or oversee
        the
        activities of any Servicer under its Credit Risk Management Agreement with
        respect to any action taken or not taken by a Servicer at the direction of
        the
        Seller or pursuant to a recommendation of the Credit Risk Manager.

       

      
        	
                Section
                  9.02

              	
                Master
                  Servicer Fidelity Bond and Master Servicer Errors and Omissions
                  Insurance
                  Policy. 

              

      

       

      (a) The
        Master Servicer, at its expense, shall maintain in effect a Master Servicer
        Fidelity Bond and a Master Servicer Errors and Omissions Insurance Policy,
        affording coverage with respect to all directors, officers, employees and
        other
        Persons acting on such Master Servicer’s behalf, and covering errors and
        omissions in the performance of the Master Servicer’s obligations hereunder. The
        Master Servicer Errors and Omissions Insurance Policy and the Master Servicer
        Fidelity Bond shall be in such form and amount that would be consistent with
        coverage customarily maintained by master servicers of mortgage loans similar
        to
        the Mortgage Loans and the Master Servicer shall provide the Trustee and
        any
        NIMS Insurer upon request, with a copy of such policy and fidelity bond.
        The
        Master Servicer shall (i) require each Servicer to maintain an Errors and
        Omissions Insurance Policy and a Servicer Fidelity Bond in accordance with
        the
        provisions of the applicable Servicing Agreement, (ii) cause each Servicer
        to
        provide to the Master Servicer certificates evidencing that such policy and
        bond
        is in effect and to furnish to the Master Servicer any notice of cancellation,
        non-renewal or modification of the policy or bond received by it, as and
        to the
        extent provided in the applicable Servicing Agreement, and (iii) furnish
        copies
        of such policies and of the certificates and notices referred to in clause
        (ii)
        to the Trustee upon request.

       

      
        
          
          

        

        
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      (b) The
        Master Servicer shall promptly report to the Trustee and any NIMS Insurer
        any
        material changes that may occur in the Master Servicer Fidelity Bond or the
        Master Servicer Errors and Omissions Insurance Policy and shall furnish to
        the
        Trustee and any NIMS Insurer, on request, certificates evidencing that such
        bond
        and insurance policy are in full force and effect. The Master Servicer shall
        promptly report to the Trustee and any NIMS Insurer all cases of embezzlement
        or
        fraud, if such events involve funds relating to the Mortgage Loans. The total
        losses, regardless of whether claims are filed with the applicable insurer
        or
        surety, shall be disclosed in such reports together with the amount of such
        losses covered by insurance. If a bond or insurance claim report is filed
        with
        any of such bonding companies or insurers, the Master Servicer shall promptly
        furnish a copy of such report to the Trustee and any NIMS Insurer. Any amounts
        relating to the Mortgage Loans collected by the Master Servicer under any
        such
        bond or policy shall be promptly remitted by the Master Servicer to the Trustee
        for deposit into the Certificate Account. Any amounts relating to the Mortgage
        Loans collected by the applicable Servicer under any such bond or policy
        shall
        be remitted to the Master Servicer to the extent provided in the applicable
        Servicing Agreement.

       

      
        	
                Section
                  9.03

              	
                Master
                  Servicer’s Financial Statements and Related Information. 

              

      

       

      For
        each
        year this Agreement is in effect, the Master Servicer shall submit to the
        Trustee, any NIMS Insurer, each Rating Agency and the Depositor a copy of
        its
        annual unaudited financial statements on or prior to March 15 of each year,
        beginning March 15, 2007. Such financial statements shall include a balance
        sheet, income statement, statement of retained earnings, statement of additional
        paid-in capital, statement of changes in financial position and all related
        notes and schedules and shall be in comparative form, certified by a nationally
        recognized firm of Independent Accountants to the effect that such statements
        were examined and prepared in accordance with generally accepted accounting
        principles applied on a basis consistent with that of the preceding
        year.

       

      
        
          
          

        

        
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                Section
                  9.04

              	
                Power
                  to Act; Procedures. 

              

      

       

      (a) The
        Master Servicer shall master service the Mortgage Loans and shall have full
        power and authority, subject to the REMIC Provisions and the provisions of
        Article X hereof, and each Servicer shall have full power and authority (to
        the
        extent provided in the applicable Servicing Agreement) to do any and all
        things
        that it may deem necessary or desirable in connection with the servicing
        and
        administration of the Mortgage Loans, including but not limited to the power
        and
        authority (i) to execute and deliver, on behalf of the Certificateholders
        and
        the Trustee, customary consents or waivers and other instruments and documents,
        (ii) to consent to transfers of any Mortgaged Property and assumptions of
        the
        Mortgage Notes and related Mortgages, (iii) to collect any Insurance Proceeds
        and Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion
        of the ownership of the Mortgaged Property securing any Mortgage Loan, in
        each
        case, in accordance with the provisions of this Agreement and the applicable
        Servicing Agreement, as applicable; provided that the Master Servicer shall
        not
        take, or knowingly permit any Servicer to take, any action that is inconsistent
        with or prejudices the interests of the Trust Fund or the Certificateholders
        in
        any Mortgage Loan or the rights and interests of the Depositor, the Trustee,
        the
        Certificateholders under this Agreement. The Master Servicer shall represent
        and
        protect the interests of the Trust Fund in the same manner as it protects
        its
        own interests in mortgage loans in its own portfolio in any claim, proceeding
        or
        litigation regarding a Mortgage Loan and shall not make or knowingly permit
        any
        Servicer to make any modification, waiver or amendment of any term of any
        Mortgage Loan that would cause an Adverse REMIC Event. Without limiting the
        generality of the foregoing, the Master Servicer in its own name or in the
        name
        of a Servicer, and each Servicer, to the extent such authority is delegated
        to
        such Servicer under the applicable Servicing Agreement, is hereby authorized
        and
        empowered by the Trustee when the Master Servicer or such Servicer, as the
        case
        may be, believes it appropriate in its best judgment and in accordance with
        Accepted Servicing Practices and the applicable Servicing Agreement, to execute
        and deliver, on behalf of itself and the Certificateholders, the Trustee
        or any
        of them, any and all instruments of satisfaction or cancellation, or of partial
        or full release or discharge and all other comparable instruments, with respect
        to the Mortgage Loans and with respect to the Mortgaged Properties. The Trustee
        shall furnish to the Master Servicer, upon request, with any powers of attorney
        empowering the Master Servicer or any Servicer to execute and deliver
        instruments of satisfaction or cancellation, or of partial or full release
        or
        discharge, and to foreclose upon or otherwise liquidate Mortgaged Property,
        and
        to appeal, prosecute or defend in any court action relating to the Mortgage
        Loans or the Mortgaged Property, in accordance with the applicable Servicing
        Agreement and this Agreement, and the Trustee shall execute and deliver such
        other documents, as the Master Servicer may request, necessary or appropriate
        to
        enable the Master Servicer to master service the Mortgage Loans and carry
        out
        its duties hereunder and to allow each Servicer to service the Mortgage Loans,
        in each case in accordance with Accepted Servicing Practices (and the Trustee
        shall have no liability for misuse of any such powers of attorney by the
        Master
        Servicer or any Servicer). If the Master Servicer or the Trustee has been
        advised that it is likely that the laws of the state in which action is to
        be
        taken prohibit such action if taken in the name of the Trustee or that the
        Trustee would be adversely affected under the “doing business” or tax laws of
        such state if such action is taken in its name, then upon request of the
        Trustee
        the Master Servicer shall join with the Trustee in the appointment of a
        co-trustee pursuant to Section 6.09 hereof. In no event shall the Master
        Servicer, without the Trustee’s written consent: (i) initiate any action, suit
        or proceeding solely under the Trustee’s name without indicating the Master
        Servicer in its applicable, representative capacity, so long as the
        jurisdictional and procedural rules will allow for this insertion to occur,
        (ii)
        initiate any action, suit or proceeding not directly relating to the servicing
        of a Mortgage Loan (including but not limited to actions, suits or proceedings
        against Certificateholders, or against the Depositor or the Transferor for
        breaches of representations and warranties) solely under the Trustee’s name,
        (iii) engage counsel to represent the Trustee in any action, suit or proceeding
        not directly relating to the servicing of a Mortgage Loan (including but
        not
        limited to actions, suits or proceedings against Certificateholders, or against
        the Depositor or the Transferor for breaches of representations and warranties),
        or (iv) prepare, execute or deliver any government filings, forms, permits,
        registrations or other documents or take any action with the intent to cause,
        and that actually causes, the Trustee to be registered to do business in
        any
        state. The Master Servicer shall indemnify the Trustee for any and all costs,
        liabilities and expenses incurred by the Trustee in connection with the
        negligent or willful misuse of such powers of attorney by the Master Servicer.
        In the performance of its duties hereunder, the Master Servicer shall be
        an
        independent contractor and shall not, except in those instances where it
        is
        taking action in the name of the Trustee on behalf of the Trust Fund, be
        deemed
        to be the agent of the Trustee.

       

      
        
          
          

        

        
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      (b) In
        master
        servicing and administering the Mortgage Loans, the Master Servicer shall
        employ
        procedures and exercise the same care that it customarily employs and exercises
        in master servicing and administering loans for its own account, giving due
        consideration to Accepted Servicing Practices where such practices do not
        conflict with this Agreement. Consistent with the foregoing, the Master Servicer
        may, and may permit any Servicer to, in its discretion (i) waive any late
        payment charge (but not any Prepayment Premium, except as set forth below)
        and
        (ii) extend the due dates for payments due on a Mortgage Note for a period
        not
        greater than 120 days; provided,
        however,
        that the
        maturity of any Mortgage Loan shall not be extended past the date on which
        the
        final payment is due on the latest maturing Mortgage Loan as of the Cut-off
        Date. In the event of any extension described in clause (ii) above, the Master
        Servicer shall make or cause such Servicer (if required by the applicable
        Servicing Agreement) to make Advances on the related Mortgage Loan in accordance
        with the provisions of Section 5.04 on the basis of the amortization schedule
        of
        such Mortgage Loan without modification thereof by reason of such extension.
        Notwithstanding anything to the contrary in this Agreement, the Master Servicer
        shall not make or knowingly permit any modification, waiver or amendment
        of any
        material term of any Mortgage Loan, unless: (1) such Mortgage Loan is in
        default
        or default by the related Mortgagor is, in the reasonable judgment of the
        Master
        Servicer or the related Servicer, reasonably foreseeable, (2) in the case
        of a
        waiver of a Prepayment Premium, (a) such Mortgage Loan is in default or default
        by the related Mortgagor is, in the reasonable judgment of the Master Servicer
        or the related Servicer, reasonably foreseeable and such waiver would maximize
        recovery of total proceeds taking into account the value of such Prepayment
        Premium and the related Mortgage Loan or (b) if the prepayment is not the
        result
        of a refinance by the Servicer or any of its affiliates and (i) such Mortgage
        Loan is in default or default by the related Mortgagor is, in the reasonable
        judgment of the Master Servicer or the related Servicer, reasonably foreseeable
        and such waiver would maximize recovery of total proceeds taking into account
        the value of such Prepayment Premium and the related Mortgage Loan or (ii)
        the
        collection of the Prepayment Premium would be in violation of applicable
        law or
        (iii) the collection of such Prepayment Premium would be considered “predatory”
pursuant to written guidance published or issued by any applicable federal,
        state or local regulatory authority acting in its official capacity and having
        jurisdiction over such matters and (3) the Master Servicer shall have provided
        or caused to be provided to the Trustee an Opinion of Counsel addressed to
        the
        Trustee (which opinion shall, if provided by the Master Servicer, be an expense
        reimbursed from the Collection Account pursuant to Section 4.02(v)) to the
        effect that such modification, waiver or amendment would not result in an
        Adverse REMIC Event; provided, in no event shall an Opinion of Counsel be
        required for the waiver of a Prepayment Premium under clause (2)
        above.

       

      
        
          
          

        

        
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                Section
                  9.05

              	
                Enforcement
                  of Servicer’s and Master Servicer’s Obligations. 

              

      

       

      (a) Each
        Servicing Agreement requires the applicable Servicer, respectively, to service
        the Mortgage Loans in accordance with the provisions thereof. References
        in this
        Agreement to actions taken or to be taken by the Master Servicer include
        actions
        taken or to be taken by a Servicer on behalf of the Master Servicer. Any
        fees
        and other amounts payable to a Servicer shall be deducted from amounts remitted
        to the Master Servicer by such Servicer (to the extent permitted by the
        applicable Servicing Agreement) and shall not be an obligation of the Trust
        Fund, the Trustee or the Master Servicer.

       

      (b) The
        Master Servicer shall not be required to (i) take any action with respect
        to the
        servicing of any Mortgage Loan that the related Servicer is not required
        to take
        under the related Servicing Agreement and (ii) cause a Servicer to take any
        action or refrain from taking any action if the related Servicing Agreement
        does
        not require such Servicer to take such action or refrain from taking such
        action; in both cases notwithstanding any provision of this Agreement that
        requires the Master Servicer to take such action or cause such Servicer to
        take
        such action.

       

      (c) The
        Master Servicer, for the benefit of the Trustee, any NIMS Insurer and the
        Certificateholders, shall enforce the obligations of each Servicer under
        the
        related Servicing Agreement, and shall, in the event that a Servicer fails
        to
        perform its obligations in accordance therewith, terminate the rights and
        obligations of such Servicer thereunder and either act as servicer of the
        related Mortgage Loans or cause the other parties hereto to enter into a
        Servicing Agreement (and such parties hereby agree to execute and deliver
        any
        such successor Servicing Agreement), with a successor Servicer. Such
        enforcement, including, without limitation, the legal prosecution of claims,
        termination of Servicing Agreements and the pursuit of other appropriate
        remedies, shall be in such form and carried out to such an extent and at
        such
        time as the Master Servicer, in its good faith business judgment, would require
        were it the owner of the related Mortgage Loans. The Master Servicer shall
        pay
        the costs of such enforcement at its own expense, and shall be reimbursed
        therefor initially (i) from a general recovery resulting from such enforcement
        only to the extent, if any, that such recovery exceeds all amounts due in
        respect of the related Mortgage Loans, (ii) from a specific recovery of costs,
        expenses or attorneys’ fees against the party against whom such enforcement is
        directed, and then, (iii) to the extent that such amounts are insufficient
        to
        reimburse the Master Servicer for the costs of such enforcement, from the
        Collection Account.

       

      (d) The
        Master Servicer shall be entitled to conclusively rely on any certifications
        or
        other information provided by the Servicers under the terms of the applicable
        Servicing Agreement, in its preparation of any certifications, filings or
        reports, in accordance with the terms hereof or as may be required by applicable
        law or regulation.

       

      
        
          
          

        

        
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                Section
                  9.06

              	
                Collection
                  of Taxes, Assessments and Similar Items. 

              

      

       

      (a) To
        the
        extent provided in the applicable Servicing Agreement, the Master Servicer
        shall
        cause each Servicer to establish and maintain one or more custodial accounts
        at
        a depository institution (which may be a depository institution with which
        the
        Master Servicer or any Servicer establishes accounts in the ordinary course
        of
        its servicing activities), the accounts of which are insured to the maximum
        extent permitted by the FDIC (each, an “Escrow Account”) and to deposit therein
        any collections of amounts received with respect to amounts due for taxes,
        assessments, water rates, standard hazard insurance policy premiums, Payaheads,
        if applicable, or any comparable items for the account of the Mortgagors.
        Withdrawals from any Escrow Account may be made (to the extent amounts have
        been
        escrowed for such purpose) only in accordance with the applicable Servicing
        Agreement. Each Servicer shall be entitled to all investment income not required
        to be paid to Mortgagors on any Escrow Account maintained by such Servicer.
        The
        Master Servicer shall make (or cause to be made) to the extent provided in
        the
        applicable Servicing Agreement advances to the extent necessary in order
        to
        effect timely payment of taxes, water rates, assessments, standard hazard
        insurance policy premiums or comparable items in connection with the related
        Mortgage Loan (to the extent that the Mortgagor is required, but fails, to
        pay
        such items), provided that it or the applicable Servicer has determined that
        the
        funds so advanced are recoverable from escrow payments, reimbursement pursuant
        to Section 4.02 or otherwise.

       

      (b) Costs
        incurred by the Master Servicer or by any Servicer in effecting the timely
        payment of taxes and assessments on the properties subject to the Mortgage
        Loans
        may be added to the amount owing under the related Mortgage Note where the
        terms
        of the Mortgage Note so permit; provided,
        however,
        that the
        addition of any such cost shall not be taken into account for purposes of
        calculating the distributions to be made to Certificateholders. Such costs,
        to
        the extent that they are unanticipated, extraordinary costs, and not ordinary
        or
        routine costs shall be recoverable as a Servicing Advance by the Master Servicer
        pursuant to Section 4.02.

       

      
        	
                Section
                  9.07

              	
                Termination
                  of Servicing Agreements; Successor Servicers. 

              

      

       

      (a) The
        Master Servicer shall be entitled to terminate the rights and obligations
        of any
        Servicer under the applicable Servicing Agreement in accordance with the
        terms
        and conditions of such Servicing Agreement and without any limitation by
        virtue
        of this Agreement; provided,
        however,
        that in
        the event of termination of any Servicing Agreement by the Master Servicer,
        the
        Master Servicer shall provide for the servicing of the Mortgage Loans by
        a
        successor Servicer to be appointed as provided in the applicable Servicing
        Agreement.

       

      The
        parties acknowledge that notwithstanding the preceding sentence, there may
        be a
        transition period, not to exceed 90 days, in order to effect the transfer
        of
        servicing to a successor Servicer. The Master Servicer shall be entitled
        to be
        reimbursed from each Servicer (or by the Trust Fund, if the Servicer is unable
        to fulfill its obligations hereunder) for all costs associated with the transfer
        of servicing from the predecessor servicer, including without limitation,
        any
        costs or expenses associated with the complete transfer of all servicing
        data
        and the completion, correction or manipulation of such servicing data, as
        may be
        required by the Master Servicer to correct any errors or insufficiencies
        in the
        servicing data or otherwise to enable the Master Servicer to service the
        Mortgage Loans properly and effectively.

       

      
        
          
          

        

        
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      (b) If
        the
        Master Servicer acts as a successor Servicer, it will not assume liability
        for
        the representations and warranties of a Servicer, if any, that it replaces.
        The
        Master Servicer shall use reasonable efforts to have the successor Servicer
        assume liability for the representations and warranties made by the terminated
        Servicer in the related Servicing Agreement, and in the event of any such
        assumption by the successor Servicer, the Trustee or the Master Servicer,
        as
        applicable, may, in the exercise of its business judgment, release the
        terminated Servicer from liability for such representations and
        warranties.

       

      (c) If
        the
        Master Servicer acts as a successor Servicer, it will have the same obligations
        to make Advances as the Servicer under the related Servicing Agreement and
        to
        reimburse the successor Servicer for unreimbursed Advances if required by
        the
        Servicing Agreement but will have no obligation to make an Advance if it
        determines in its reasonable judgment that such Advance is non-recoverable.
        To
        the extent that the Master Servicer is unable to find a successor Servicer
        that
        is willing to service the Mortgage Loans for the Servicing Fee because of
        the
        obligation of the Servicer to make Advances regardless of whether such Advance
        is recoverable, the applicable Servicing Agreement may be amended to provide
        that the successor Servicer shall have no obligation to make an Advance if
        it
        determines in its reasonable judgment that such Advance is non-recoverable
        and
        provides an Officer’s Certificate to such effect to the Master Servicer, the
        Trustee and the NIMS Insurer.

       

      
        	
                Section
                  9.08

              	
                Master
                  Servicer Liable for Enforcement. 

              

      

       

      Notwithstanding
        any Servicing Agreement, the Master Servicer shall remain obligated and liable
        to the Trustee, any NIMS Insurer and the Certificateholders in accordance
        with
        the provisions of this Agreement, to the extent of its obligations hereunder,
        without diminution of such obligation or liability by virtue of such Servicing
        Agreements. The Master Servicer shall use commercially reasonable efforts
        to
        ensure that the Mortgage Loans are serviced in accordance with the provisions
        of
        this Agreement and shall use commercially reasonable efforts to enforce the
        provisions of each Servicing Agreement for the benefit of the Certificateholders
        and any NIMS Insurer. The Master Servicer shall be entitled to enter into
        any
        agreement with any Servicer for indemnification of the Master Servicer and
        nothing contained in this Agreement shall be deemed to limit or modify such
        indemnification. Except as expressly set forth herein, the Master Servicer
        shall
        have no liability for the acts or omissions of any Servicer in the performance
        by such Servicer of its obligations under the related Servicing
        Agreement.

       

      
        	
                Section
                  9.09

              	
                No
                  Contractual Relationship Between Any Servicer and Trustee or
                  Depositor. 

              

      

       

      Any
        Servicing Agreement that may be entered into and any other transactions or
        services relating to the Mortgage Loans involving any Servicer in its capacity
        as such and not as an originator shall be deemed to be between such Servicer,
        the Seller and the Master Servicer, and the Trustee, any NIMS Insurer and
        the
        Depositor shall not be deemed parties thereto and shall have no obligations,
        duties or liabilities with respect to such Servicer except as set forth in
        Section 9.10 hereof, but shall have rights thereunder as third party
        beneficiaries. It is furthermore understood and agreed by the parties hereto
        that the obligations of any Servicer are set forth in their entirety in such
        Servicer’s related Servicing Agreement and such Servicer has no obligations
        under and is not otherwise bound by the terms of this Agreement.

       

      
        
          
          

        

        
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                Section
                  9.10

              	
                Assumption
                  of Servicing Agreement by Trustee. 

              

      

       

      (a) In
        the
        event the Master Servicer shall for any reason no longer be the Master Servicer
        (including by reason of any Event of Default under this Agreement), after
        a
        period not to exceed ninety days after the issuance of any notice of termination
        pursuant to Section 6.14 or Section 9.28, as applicable, the Trustee shall
        thereupon assume all of the rights and obligations of such Master Servicer
        hereunder and under each Servicing Agreement entered into with respect to
        the
        Mortgage Loans. The Trustee, its designee or any successor master servicer
        appointed by the Trustee shall be deemed to have assumed all of the Master
        Servicer’s interest herein and therein to the same extent as if such Servicing
        Agreement had been assigned to the assuming party, except that the Master
        Servicer shall not thereby be relieved of any liability or obligations of
        the
        Master Servicer under such Servicing Agreement accruing prior to its replacement
        as Master Servicer, and shall be liable to the Trustee and any NIMS Insurer,
        and
        hereby agrees to indemnify and hold harmless the Trustee and any NIMS Insurer
        from and against all costs, damages, expenses and liabilities (including
        reasonable attorneys’ fees) incurred by the Trustee or any NIMS Insurer as a
        result of such liability or obligations of the Master Servicer and in connection
        with the Trustee’s assumption (but not its performance, except to the extent
        that costs or liability of the Trustee are created or increased as a result
        of
        negligent or wrongful acts or omissions of the Master Servicer prior to its
        replacement as Master Servicer) of the Master Servicer’s obligations, duties or
        responsibilities thereunder.

       

      (b) The
        Master Servicer that has been terminated shall, upon request of the Trustee
        but
        at the expense of such Master Servicer, deliver to the assuming party all
        documents and records relating to each Servicing Agreement and the related
        Mortgage Loans and an accounting of amounts collected and held by it and
        otherwise use its best efforts to effect the orderly and efficient transfer
        of
        each Servicing Agreement to the assuming party.

       

      
        	
                Section
                  9.11

              	
                Due-on-Sale
                  Clauses; Assumption Agreements. 

              

      

       

      To
        the
        extent provided in the applicable Servicing Agreement, to the extent Mortgage
        Loans contain enforceable due-on-sale clauses, the Master Servicer shall
        cause
        the related Servicer to enforce such clauses in accordance with the applicable
        Servicing Agreement. If applicable law prohibits the enforcement of a
        due-on-sale clause or such clause is otherwise not enforced in accordance
        with
        the applicable Servicing Agreement, and, as a consequence, a Mortgage Loan
        is
        assumed, the original Mortgagor may be released from liability in accordance
        with the applicable Servicing Agreement.

       

      
        	
                Section
                  9.12

              	
                Release
                  of Mortgage Files. 

              

      

       

      (a) Upon
        (i)
        becoming aware of the payment in full of any Mortgage Loan or (ii) the receipt
        by the Master Servicer of a notification that payment in full has been or
        will
        be escrowed in a manner customary for such purposes, the Master Servicer
        will,
        or will cause the related Servicer to, promptly notify the Trustee (or the
        Custodian) by a certification (which certification shall include a statement
        to
        the effect that all amounts received in connection with such payment that
        are
        required to be deposited in the Collection Account maintained by the Master
        Servicer pursuant to Section 4.01 have been or will be so deposited) of a
        Servicing Officer and shall request (on the form attached hereto as Exhibit
        C or
        on the form attached to the Custodial Agreement) the Trustee or the Custodian,
        to deliver to the applicable Servicer the related Mortgage File. Upon receipt
        of
        such certification and request, the Trustee or the Custodian (with the consent,
        and at the direction of the Trustee), shall promptly release the related
        Mortgage File to the applicable Servicer and the Trustee shall have no further
        responsibility with regard to such Mortgage File. Upon any such payment in
        full,
        the Master Servicer is authorized, and each Servicer, to the extent such
        authority is provided for under the applicable Servicing Agreement, is
        authorized, to give, as agent for the Trustee, as the mortgagee under the
        Mortgage that secured the Mortgage Loan, an instrument of satisfaction (or
        assignment of mortgage without recourse) regarding the Mortgaged Property
        subject to the Mortgage, which instrument of satisfaction or assignment,
        as the
        case may be, shall be delivered to the Person or Persons entitled thereto
        against receipt therefor of such payment, it being understood and agreed
        that no
        expenses incurred in connection with such instrument of satisfaction or
        assignment, as the case may be, shall be chargeable to the Collection
        Account.

       

      
        
          
          

        

        
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      (b) From
        time
        to time and as appropriate for the servicing or foreclosure of any Mortgage
        Loan
        and in accordance with Accepted Servicing Practices and the applicable Servicing
        Agreement, the Trustee shall execute such documents as shall be prepared
        and
        furnished to the Trustee by the Master Servicer, or by a Servicer (in form
        reasonably acceptable to the Trustee) and as are necessary to the prosecution
        of
        any such proceedings. The Trustee or the Custodian, shall, upon request of
        the
        Master Servicer, or of a Servicer, and delivery to the Trustee or the Custodian,
        of a request for release of documents and a receipt signed by a Servicing
        Officer substantially in the form of Exhibit C, release the related Mortgage
        File held in its possession or control to the Master Servicer (or the applicable
        Servicer). Such receipt shall obligate the Master Servicer or Servicer to
        return
        the Mortgage File to the Trustee or the Custodian, as applicable, when the
        need
        therefor by the Master Servicer or Servicer no longer exists unless the Mortgage
        Loan shall be liquidated, in which case, upon receipt of a certificate of
        a
        Servicing Officer similar to that hereinabove specified, the receipt shall
        be
        released by the Trustee or the Custodian, as applicable, to the Master Servicer
        (or the applicable Servicer).

       

      
        	
                Section
                  9.13

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

              

      

       

      (a) The
        Master Servicer shall transmit, or cause the applicable Servicer to transmit,
        to
        the Trustee such documents and instruments coming into the possession of
        the
        Master Servicer or such Servicer from time to time as are required by the
        terms
        hereof or of the applicable Servicing Agreement to be delivered to the Trustee
        or the Custodian. Any funds received by the Master Servicer or by a Servicer
        in
        respect of any Mortgage Loan or which otherwise are collected by the Master
        Servicer or a Servicer as Liquidation Proceeds or Insurance Proceeds in respect
        of any Mortgage Loan shall be held for the benefit of the Trustee and the
        Certificateholders subject to the Master Servicer’s right to retain or withdraw
        from the Collection Account the Master Servicing Fee and other amounts provided
        in this Agreement and to the right of each Servicer to retain its Servicing
        Fee
        and other amounts as provided in the related Servicing Agreement. The Master
        Servicer shall, and shall (to the extent provided in the applicable Servicing
        Agreement) cause each Servicer to, provide access to information and
        documentation regarding the Mortgage Loans to the Trustee, any NIMS Insurer,
        their respective agents and accountants at any time upon reasonable request
        and
        during normal business hours, and to Certificateholders that are savings
        and
        loan associations, banks or insurance companies, the Office of Thrift
        Supervision, the FDIC and the supervisory agents and examiners of such Office
        and Corporation or examiners of any other federal or state banking or insurance
        regulatory authority if so required by applicable regulations of the Office
        of
        Thrift Supervision or other regulatory authority, such access to be afforded
        without charge but only upon reasonable request in writing and during normal
        business hours at the offices of the Master Servicer designated by it. In
        fulfilling such a request the Master Servicer shall not be responsible for
        determining the sufficiency of such information.

       

      
        
          
          

        

        
          149

          
            

          

        

        
          
          

        

      

      (b) All
        Mortgage Files and funds collected or held by, or under the control of, the
        Master Servicer, or any Servicer, in respect of any Mortgage Loans, whether
        from
        the collection of principal and interest payments or from Liquidation Proceeds
        or Insurance Proceeds, shall be held by the Master Servicer, or by any Servicer,
        for and on behalf of the Trustee and the Certificateholders and shall be
        and
        remain the sole and exclusive property of the Trustee; provided,
        however,
        that the
        Master Servicer and each Servicer shall be entitled to setoff against, and
        deduct from, any such funds any amounts that are properly due and payable
        to the
        Master Servicer or such Servicer under this Agreement or the applicable
        Servicing Agreement and shall be authorized to remit such funds to the Trustee
        in accordance with this Agreement.

       

      (c) The
        Master Servicer hereby acknowledges that concurrently with the execution
        of this
        Agreement, the Trustee shall own or, to the extent that a court of competent
        jurisdiction shall deem the conveyance of the Mortgage Loans from the Seller
        to
        the Depositor not to constitute a sale, the Trustee shall have a security
        interest in the Mortgage Loans and in all Mortgage Files representing such
        Mortgage Loans and in all funds and investment property now or hereafter
        held
        by, or under the control of, a Servicer or the Master Servicer that are
        collected by any Servicer or the Master Servicer in connection with the Mortgage
        Loans, whether as scheduled installments of principal and interest or as
        full or
        partial prepayments of principal or interest or as Liquidation Proceeds or
        Insurance Proceeds or otherwise, and in all proceeds of the foregoing and
        proceeds of proceeds (but excluding any fee or other amounts to which a Servicer
        is entitled under the applicable Servicing Agreement, or the Master Servicer
        or
        the Depositor is entitled to hereunder); and the Master Servicer agrees that
        so
        long as the Mortgage Loans are assigned to and held by the Trustee or the
        Custodian, all documents or instruments constituting part of the Mortgage
        Files,
        and such funds relating to the Mortgage Loans which come into the possession
        or
        custody of, or which are subject to the control of, the Master Servicer or
        any
        Servicer shall be held by the Master Servicer or such Servicer for and on
        behalf
        of the Trustee as the Trustee’s agent and bailee for purposes of perfecting the
        Trustee’s security interest therein as provided by the applicable Uniform
        Commercial Code or other applicable laws.

       

      (d) The
        Master Servicer agrees that it shall not, and shall not authorize any Servicer
        to, create, incur or subject any Mortgage Loans, or any funds that are deposited
        in any Custodial Account, Escrow Account or the Collection Account, or any
        funds
        that otherwise are or may become due or payable to the Trustee, to any claim,
        lien, security interest, judgment, levy, writ of attachment or other
        encumbrance, nor assert by legal action or otherwise any claim or right of
        setoff against any Mortgage Loan or any funds collected on, or in connection
        with, a Mortgage Loan.

       

      
        
          
          

        

        
          150

          
            

          

        

        
          
          

        

      

      
        	
                Section
                  9.14

              	
                Representations
                  and Warranties of the Master Servicer. 

              

      

       

      (a) The
        Master Servicer hereby represents and warrants to the Depositor, any NIMS
        Insurer and the Trustee, for the benefit of the Certificateholders, as of
        the
        Closing Date that:

       

      (i)
         it
        is
        validly existing and in good standing under the laws of the state of its
        incorporation, and as Master Servicer has full power and authority to transact
        any and all business contemplated by this Agreement and to execute, deliver
        and
        comply with its obligations under the terms of this Agreement, the execution,
        delivery and performance of which have been duly authorized by all necessary
        corporate action on the part of the Master Servicer;

       

      (ii)
         the
        execution and delivery of this Agreement by the Master Servicer and its
        performance and compliance with the terms of this Agreement will not (A)
        violate
        the Master Servicer’s charter or bylaws, (B) violate any law or regulation or
        any administrative decree or order to which it is subject or (C) constitute
        a
        default (or an event which, with notice or lapse of time, or both, would
        constitute a default) under, or result in the breach of, any material contract,
        agreement or other instrument to which the Master Servicer is a party or
        by
        which it is bound or to which any of its assets are subject, which violation,
        default or breach would materially and adversely affect the Master Servicer’s
        ability to perform its obligations under this Agreement;

       

      (iii)
         this
        Agreement constitutes, assuming due authorization, execution and delivery
        hereof
        by the other respective parties hereto, a legal, valid and binding obligation
        of
        the Master Servicer, enforceable against it in accordance with the terms
        hereof,
        except as such enforcement may be limited by bankruptcy, insolvency,
        reorganization, moratorium and other laws affecting the enforcement of
        creditors’ rights in general, and by general equity principles (regardless of
        whether such enforcement is considered in a proceeding in equity or at
        law);

       

      (iv)
         the
        Master Servicer is not in default with respect to any order or decree of
        any
        court or any order or regulation of any federal, state, municipal or
        governmental agency to the extent that any such default would materially
        and
        adversely affect its performance hereunder;

       

      (v)
         the
        Master Servicer is not a party to or bound by any agreement or instrument
        or
        subject to any charter provision, bylaw or any other corporate restriction
        or
        any judgment, order, writ, injunction, decree, law or regulation that may
        materially and adversely affect its ability as Master Servicer to perform
        its
        obligations under this Agreement or that requires the consent of any third
        person to the execution of this Agreement or the performance by the Master
        Servicer of its obligations under this Agreement; 

       

      (vi)
         no
        litigation is pending or, to the best of the Master Servicer’s knowledge,
        threatened against the Master Servicer which would prohibit its entering
        into
        this Agreement or performing its obligations under this Agreement;

       

      
        
          
          

        

        
          151

          
            

          

        

        
          
          

        

      

      (vii)
         the
        Master Servicer, or an affiliate thereof the primary business of which is
        the
        servicing of conventional residential mortgage loans, is a Fannie Mae- or
        Freddie Mac-approved seller/servicer;

       

      (viii)
         no
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Master
        Servicer of or compliance by the Master Servicer with this Agreement or the
        consummation of the transactions contemplated by this Agreement, except for
        such
        consents, approvals, authorizations and orders (if any) as have been
        obtained;

       

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

       

      (x)
         the
        Master Servicer has obtained an Errors and Omissions Insurance Policy and
        a
        Fidelity Bond in accordance with Section 9.02 each of which is in full force
        and
        effect, and each of which provides at least such coverage as is required
        hereunder; and

       

      (xi)
         the
        information about the Master Servicer under the heading “The Master Servicer” in
        the Offering Documents relating to the Master Servicer does not include an
        untrue statement of a material fact and does not omit to state a material
        fact,
        with respect to the statements made, necessary in order to make the statements
        in light of the circumstances under which they were made not
        misleading.

       

      (b) It
        is
        understood and agreed that the representations and warranties set forth in
        this
        Section 9.14 shall survive the execution and delivery of this Agreement.
        The
        Master Servicer shall indemnify the Depositor, the Trustee and any NIMS Insurer
        and hold them harmless against any loss, damages, penalties, fines, forfeitures,
        legal fees and related costs, judgments, and other costs and expenses arising
        out of or related to any claim, demand, defense or assertion based on or
        grounded upon, or resulting from, a breach of the Master Servicer’s
        representations and warranties contained in Section 9.14(a). It is understood
        and agreed that the enforcement of the obligation of the Master Servicer
        set
        forth in this Section to indemnify the Depositor, the Trustee and any NIMS
        Insurer as provided in this Section constitutes the sole remedy (other than
        as
        set forth in Section 6.14) of the Depositor, the Trustee and any NIMS Insurer,
        respecting a breach of the foregoing representations and warranties. Such
        indemnification shall survive any termination of the Master Servicer as Master
        Servicer hereunder, and any termination of this Agreement.

       

      Any
        cause
        of action against the Master Servicer relating to or arising out of the breach
        of any representations and warranties made in this Section shall accrue upon
        discovery of such breach by any of the Depositor, the Master Servicer, the
        Trustee or any NIMS Insurer or notice thereof by any one of such parties
        to the
        other parties. 

       

      (c) It
        is
        understood and agreed that the representations and warranties of the Depositor
        set forth in Sections 2.03(a)(i) through (vi) shall survive the execution
        and
        delivery of this Agreement. The Depositor shall indemnify the Master Servicer
        and hold it harmless against any loss, damages, penalties, fines, forfeitures,
        legal fees and related costs, judgments, and other costs and expenses resulting
        from any claim, demand, defense or assertion based on or grounded upon, or
        resulting from, a breach of the Depositor’s representations and warranties
        contained in Sections 2.03(a)(i) through (vi) hereof. It is understood and
        agreed that the enforcement of the obligation of the Depositor set forth
        in this
        Section to indemnify the Master Servicer as provided in this Section constitutes
        the sole remedy hereunder of the Master Servicer respecting a breach by the
        Depositor of the representations and warranties in Sections 2.03(a)(i) through
        (vi) hereof.

       

      
        
          
          

        

        
          152

          
            

          

        

        
          
          

        

      

      (d) Any
        cause
        of action against the Master Servicer relating to or arising out of the breach
        of any representations and warranties made in this Section shall accrue upon
        discovery of such breach by either the Depositor, the Master Servicer, the
        Trustee or any NIMS Insurer or notice thereof by any one of such parties
        to the
        other parties. Notwithstanding anything in this Agreement to the contrary,
        the
        Master Servicer shall not be liable for special, indirect or consequential
        losses or damages of any kind whatsoever (including, but not limited to,
        lost
        profits).

       

      
        	
                Section
                  9.15

              	
                Opinion. 

              

      

       

      On
        or
        before the Closing Date, the Master Servicer shall cause to be delivered
        to the
        Depositor, the Seller, the Trustee and any NIMS Insurer one or more Opinions
        of
        Counsel, dated the Closing Date, in form and substance reasonably satisfactory
        to the Depositor and Lehman Brothers Inc., as to the due authorization,
        execution and delivery of this Agreement by the Master Servicer and the
        enforceability thereof. 

       

      
        	
                Section
                  9.16

              	
                Standard
                  Hazard and Flood Insurance Policies. 

              

      

       

      For
        each
        Mortgage Loan (other than a Cooperative Loan), the Master Servicer shall
        maintain, or cause to be maintained by each Servicer, standard fire and casualty
        insurance and, where applicable, flood insurance, all in accordance with
        the
        provisions of this Agreement and the related Servicing Agreement, as applicable.
        It is understood and agreed that such insurance shall be with insurers meeting
        the eligibility requirements set forth in the applicable Servicing Agreement
        and
        that no earthquake or other additional insurance is to be required of any
        Mortgagor or to be maintained on property acquired in respect of a defaulted
        loan, other than pursuant to such applicable laws and regulations as shall
        at
        any time be in force and as shall require such additional
        insurance.

       

      Pursuant
        to Section 4.01, any amounts collected by the Master Servicer, or by any
        Servicer, under any insurance policies maintained pursuant to this Section
        9.16
        or any Servicing Agreement (other than amounts to be applied to the restoration
        or repair of the property subject to the related Mortgage or released to
        the
        Mortgagor in accordance with the applicable Servicing Agreement) shall be
        deposited into the Collection Account, subject to withdrawal pursuant to
        Section
        4.02. Any cost incurred by the Master Servicer or any Servicer in maintaining
        any such insurance if the Mortgagor defaults in its obligation to do so shall
        be
        added to the amount owing under the Mortgage Loan where the terms of the
        Mortgage Loan so permit; provided,
        however,
        that the
        addition of any such cost shall not be taken into account for purposes of
        calculating the distributions to be made to Certificateholders and shall
        be
        recoverable by the Master Servicer or such Servicer pursuant to Section
        4.02.

       

      
        
          
          

        

        
          153

          
            

          

        

        
          
          

        

      

      
        	
                Section
                  9.17

              	
                Presentment
                  of Claims and Collection of Proceeds. 

              

      

       

      The
        Master Servicer shall cause each Servicer (to the extent provided in the
        applicable Servicing Agreement) to, prepare and present on behalf of the
        Trustee
        and the Certificateholders all claims under the Insurance Policies with respect
        to the Mortgage Loans, and take such actions (including the negotiation,
        settlement, compromise or enforcement of the insured’s claim) as shall be
        necessary to realize recovery under such policies. Any proceeds disbursed
        to the
        Master Servicer (or disbursed to a Servicer and remitted to the Master Servicer)
        in respect of such policies or bonds shall be promptly deposited in the
        Collection Account or the Custodial Account upon receipt, except that any
        amounts realized that are to be applied to the repair or restoration of the
        related Mortgaged Property as a condition requisite to the presentation of
        claims on the related Mortgage Loan to the insurer under any applicable
        Insurance Policy need not be so deposited (or remitted).

       

      
        	
                Section
                  9.18

              	
                Maintenance
                  of the Primary Mortgage Insurance Policies. 

              

      

       

      (a) The
        Master Servicer shall cause each Servicer to remit (with respect to any Primary
        Mortgage Insurance Policy) or shall remit on behalf of each Servicer to the
        PMI
        Insurer, the applicable PMI Insurance Premiums and provide monthly Mortgage
        Loan
        balance updates to the related PMI Insurers. The Master Servicer shall not
        take,
        or knowingly permit any Servicer (consistent with the applicable Servicing
        Agreement) to take, any action that would result in noncoverage under any
        applicable Primary Mortgage Insurance Policy of any loss which, but for the
        actions of such Master Servicer or such Servicer, would have been covered
        thereunder. The Master Servicer shall not, and shall not knowingly permit
        any
        Servicer to, cancel or refuse to renew any such Primary Mortgage Insurance
        Policy that is in effect at the date of the initial issuance of the Certificates
        and is required to be kept in force hereunder except in accordance with the
        provisions of this Agreement and the related Servicing Agreement, as applicable.
        

       

      (b) The
        Master Servicer agrees, to the extent provided in each Servicing Agreement,
        to
        cause each Servicer to present, on behalf of the Trustee and the
        Certificateholders, claims to the insurer under any Primary Mortgage Insurance
        Policies and, in this regard, to take such reasonable action as shall be
        necessary to permit recovery under any Primary Mortgage Insurance Policies
        respecting defaulted Mortgage Loans. Pursuant to Section 4.01, any amounts
        collected by the Master Servicer or any Servicer under any Primary Mortgage
        Insurance Policies shall be deposited in the Collection Account, subject
        to
        withdrawal pursuant to Section 4.02.

       

      
        	
                Section
                  9.19

              	
                Trustee
                  To Retain Possession of Certain Insurance Policies and
                  Documents. 

              

      

       

      The
        Master Servicer shall promptly deliver or cause each Servicer to deliver
        to the
        Custodian, upon the execution or receipt thereof the originals of the Primary
        Mortgage Insurance Policies or certificate of insurance, if applicable, and
        any
        certificates of renewal thereof, and such other documents or instruments
        that
        constitute portions of the Mortgage File that come into the possession of
        the
        Master Servicer or any Servicer from time to time. The Custodian on behalf
        of
        the Trustee shall retain possession and custody of the originals of such
        Primary
        Mortgage Insurance Policies or certificate of insurance if applicable and
        any
        certificates of renewal as to the foregoing as may be issued from time to
        time
        as contemplated by this Agreement and delivered to the Custodian by the Master
        Servicer. Until all amounts distributable in respect of the Certificates
        have
        been distributed in full and the Master Servicer otherwise has fulfilled its
        obligations under this Agreement, the Custodian shall also retain possession
        and
        custody of each Mortgage File in accordance with and subject to the terms
        and
        conditions of this Agreement.

       

      
        
          
          

        

        
          154

          
            

          

        

        
          
          

        

      

      
        	
                Section
                  9.20

              	
                [Reserved] 

              

      

       

      
        	
                Section
                  9.21

              	
                Compensation
                  to the Master Servicer. 

              

      

       

      The
        Master Servicer shall be entitled to withdraw from the Collection Account,
        subject to Section 5.05, the Master Servicing Fee to the extent permitted
        by
        Section 4.02. Servicing compensation in the form of assumption fees, if any,
        late payment charges, as collected, if any, or otherwise (but not including
        any
        Prepayment Premium) shall be retained by the Master Servicer (or the applicable
        Servicer) and shall not be deposited in the Collection Account. If the Master
        Servicer does not retain or withdraw the Master Servicing Fee from the
        Collection Account as provided herein, the Master Servicer shall be entitled
        to
        direct the Trustee to pay the Master Servicing Fee to such Master Servicer
        by
        withdrawal from the Certificate Account to the extent that payments have
        been
        received with respect to the applicable Mortgage Loan. The Master Servicer
        shall
        be required to pay all expenses incurred by it in connection with its activities
        hereunder and shall not be entitled to reimbursement therefor except as provided
        in this Agreement. Pursuant to Section 4.01(e), all income and gain realized
        from any investment of funds in the Collection Account shall be for the benefit
        of the Master Servicer as additional compensation. The provisions of this
        Section 9.21 are subject to the provisions of Section 6.14.

       

      
        	
                Section
                  9.22

              	
                REO
                  Property. 

              

      

       

      (a) In
        the
        event the Trust Fund acquires ownership of any REO Property in respect of
        any
        Mortgage Loan, the deed or certificate of sale shall be issued to the Trustee,
        or to its nominee, on behalf of the Certificateholders. The Master Servicer
        shall use its reasonable best efforts to sell, or cause the applicable Servicer,
        to the extent provided in the applicable Servicing Agreement any REO Property
        as
        expeditiously as possible and in accordance with the provisions of this
        Agreement and the related Servicing Agreement, as applicable, but in all
        events
        within the time period, and subject to the conditions set forth in Article
        X
        hereof. Pursuant to its efforts to sell such REO Property, the Master Servicer
        shall protect and conserve, or cause the applicable Servicer to protect and
        conserve, such REO Property in the manner and to such extent required by
        the
        applicable Servicing Agreement, subject to Article X hereof.

       

      (b) The
        Master Servicer shall deposit or cause to be deposited all funds collected
        and
        received by it, or recovered from any Servicer, in connection with the operation
        of any REO Property in the Collection Account.

       

      (c) The
        Master Servicer and each Servicer, upon the final disposition of any REO
        Property, shall be entitled to reimbursement for any related unreimbursed
        Advances and other unreimbursed advances as well as any unpaid Master Servicing
        Fees or Servicing Fees from Liquidation Proceeds received in connection with
        the
        final disposition of such REO Property; provided,
        that
        (without
        limitation of any other right of reimbursement that the Master Servicer or
        any
        Servicer shall have hereunder) any such unreimbursed Advances as well as
        any
        unpaid Net Master Servicing Fees or Servicing Fees may be reimbursed or paid,
        as
        the case may be, prior to final disposition, out of any net rental income
        or
        other net amounts derived from such REO Property.

       

      
        
          
          

        

        
          155

          
            

          

        

        
          
          

        

      

      (d) The
        Liquidation Proceeds from the final disposition of the REO Property, net
        of any
        payment to the Master Servicer and the applicable Servicer as provided above,
        shall be deposited in the Collection Account on or prior to the Determination
        Date in the month following receipt thereof and be remitted by wire transfer
        in
        immediately available funds on the next succeeding Master Servicer Remittance
        Date to the Trustee for deposit into the Certificate Account.

       

      
        	
                Section
                  9.23

              	
                Notices
                  to the Sponsor, the Depositor and the Trustee. 

              

      

       

      (a) The
        Master Servicer shall promptly notify the Trustee, the Sponsor and the Depositor
        (i) of any legal proceedings pending against the Master Servicer of the type
        described in Item 1117 (§ 229.1117) of Regulation AB and (ii) if the Master
        Servicer shall become (but only to the extent not previously disclosed to
        the
        Master Servicer and the Depositor) at any time an affiliate of any of the
        parties listed on Exhibit V hereto. On or before March 1st
        of each
        year, the Depositor shall distribute the information in Exhibit V to the
        Master
        Servicer.

       

      (b) Not
        later
        than four Business Days prior to the Distribution Date of each month, the
        Master
        Servicer shall provide to the Trustee, the Sponsor and the Depositor notice
        of
        the occurrence of any material modifications, extensions or waivers of terms,
        fees, penalties or payments relating to the Mortgage Loans during the related
        Collection Period or that have cumulatively become material over time (Item
        1121(a)(11) of Regulation AB) along with all information, data, and materials
        related thereto as may be required to be included in the related Distribution
        Report on Form 10-D. The parties to this Agreement acknowledge that the
        performance by the Master Servicer of its duties under this Section 9.23(b)
        related to the timely preparation and delivery of such information is contingent
        upon each applicable Servicer strictly observing all requirements and deadlines
        in the performance of their duties under their related Servicing Agreements.
        The
        Master Servicer shall have no liability for any loss, expense, damage or
        claim
        arising out of or with respect to any failure to properly prepare and/or
        timely
        deliver all such information where such failure results from the Master
        Servicer’s inability or failure to obtain or receive, on a timely basis, any
        information from any Servicer needed to prepare or deliver such information,
        which failure does not result from the Master Servicer’s own negligence, bad
        faith or willful misconduct.

       

      
        	
                Section
                  9.24

              	
                Reports
                  to the Trustee.

              

      

       

      (a) Not
        later
        than 30 days after each Distribution Date, the Master Servicer shall, upon
        request, forward to the Trustee a statement, deemed to have been certified
        by a
        Servicing Officer, setting forth the status of the Collection Account maintained
        by the Master Servicer as of the close of business on the related Distribution
        Date, indicating that all distributions required by this Agreement to be
        made by
        the Master Servicer have been made (or if any required distribution has not
        been
        made by the Master Servicer, specifying the nature and status thereof) and
        showing, for the period covered by such statement, the aggregate of deposits
        into and withdrawals from the Collection Account maintained by the Master
        Servicer. Copies of such statement shall be provided by the Master Servicer,
        upon request, to the Depositor, Attention: Contract Finance, any NIMS Insurer
        and any Certificateholders (or by the Trustee at the Master Servicer’s expense
        if the Master Servicer shall fail to provide such copies to the
        Certificateholders (unless (i) the Master Servicer shall have failed to provide
        the Trustee with such statement or (ii) the Trustee shall be unaware of the
        Master Servicer’s failure to provide such statement)).

       

      
        
          
          

        

        
          156

          
            

          

        

        
          
          

        

      

      (b) Not
        later
        than two Business Days following each Distribution Date, the Master Servicer
        shall deliver to one Person designated by the Depositor, in a format consistent
        with other electronic loan level reporting supplied by the Master Servicer
        in
        connection with similar transactions, “loan level” information with respect to
        the Mortgage Loans as of the related Determination Date, to the extent that
        such
        information has been provided to the Master Servicer by the Servicers or
        by the
        Depositor.

       

      (c) All
        information, reports and statements prepared by the Master Servicer under
        this
        Agreement shall be based on information supplied to the Master Servicer by
        the
        Servicers without independent verification thereof and the Master Servicer
        shall
        be entitled to rely on such information.

       

      
        	
                Section
                  9.25

              	
                Assessment
                  of Compliance and Attestation
                  Reports.

              

      

       

      (a) Assessment
        of Compliance

       

      (i) By
        March
        15 of each year, commencing in March 2007, the Master Servicer, the Credit
        Risk
        Manager, the Paying Agent (if other than the Trustee) and the Trustee, each
        at
        its own expense, shall furnish, and each such party shall cause any Servicing
        Function Participant engaged by it to furnish, each at its own expense, to
        the
        Sponsor, the Depositor, the Master Servicer and the Trustee, a report on
        an
        assessment of compliance with the Relevant Servicing Criteria 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 6.20(e), including, if there has been any material instance
        of noncompliance with the Relevant Servicing Criteria, a discussion of each
        such
        failure and the nature and status thereof, and (D) a statement that a registered
        public accounting firm has issued an attestation report on such party’s
        assessment of compliance with the Relevant Servicing Criteria as of and for
        such
        period. 

      

      (ii) When
        the
        Master Servicer, the Credit Risk Manager, the Paying Agent (if other than
        the
        Trustee) and the Trustee (or any Servicing Function Participant engaged by
        it)
        submit their assessments to the Trustee, such parties will also at such time
        include the assessment (and attestation pursuant to subsection (b) of this
        Section 9.25) of each Servicing Function Participant engaged by it and shall
        indicate to the Trustee what Relevant Servicing Criteria will be addressed
        in
        any such reports prepared by any such Servicing Function
        Participant.

      

      
        
          
          

        

        
          157

          
            

          

        

        
          
          

        

      

      (iii) Promptly
        after receipt of each report on assessment of compliance, the Trustee shall
        confirm that the assessments, taken as a whole, address all applicable Servicing
        Criteria and taken individually address the Relevant Servicing Criteria (and
        disclose the inapplicability of the Servicing Criteria not determined to
        be
        Relevant Criteria) for each party as set forth on Exhibit S and on any similar
        exhibit set forth in each Servicing Agreement in respect of each Servicer,
        and
        the Custodial Agreement in respect of the Custodian, and shall notify the
        Depositor of any exceptions. By way of clarification and for the avoidance
        of
        doubt, it is acknowledged that the Trustee shall rely exclusively on Exhibit
        S
        and on any similar exhibit set forth in each Servicing Agreement and the
        Custodial Agreement to determine such applicable Servicing Criteria and Relevant
        Servicing Criteria, as the case may be, and shall not otherwise be reporting
        on
        the content of or sufficiency of such assessments.

      

      (b) Attestation
        Reports

       

      (i) By
        March
        15 of each year, commencing in March 2007, the Master Servicer, the Credit
        Risk
        Manager, the Paying Agent (if other than the Trustee) and the Trustee, each
        at
        its own expense, shall cause, and each such party shall cause any Servicing
        Function Participant engaged by it to cause, each at its own expense, a
        registered public accounting firm (which may also render other services to
        the
        Master Servicer, the Credit Risk Manager, the Paying Agent and the Trustee,
        as
        the case may be) that is a member of the American Institute of Certified
        Public
        Accountants to furnish a report to the Sponsor, the Depositor, the Master
        Servicer and the 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.

       

      (ii) Promptly
        after receipt of such report from the Master Servicer, the Credit Risk Manager,
        the Paying Agent, the Trustee or any Servicing Function Participant engaged
        by
        such parties, the Trustee shall confirm that each assessment submitted pursuant
        subsection (a) of this Section 9.25 is coupled with an attestation meeting
        the
        requirements of this Section and notify the Depositor of any
        exceptions.

       

      (c) The
        Trustee’s, Master Servicer’s and Paying Agent’s obligation to provide
        assessments of compliance and attestations under this Section 9.25 shall
        terminate upon the filing of a Form 15 suspension notice on behalf of the
        Trust
        Fund.

       

      
        	
                Section
                  9.26

              	
                Annual
                  Statement of Compliance with Applicable Servicing
                  Criteria. 

              

      

       

      The
        Master Servicer shall deliver (and the Master Servicer shall cause any
        Additional Servicer engaged by it to deliver) to the Sponsor, the Depositor
        and
        the Trustee on or before March 15 of each year, commencing in March 2007,
        an
        Officer’s Certificate stating, as to the signer thereof, that (A) a review of
        such party’s activities during the preceding calendar year or portion thereof
        and of such party’s performance under this Agreement, or such other applicable
        agreement in the case of an Additional Servicer, has been made under such
        officer’s supervision and (B) to the best of such officer’s knowledge, based on
        such review, such party has fulfilled all its obligations under this Agreement,
        or such other applicable agreement in the case of an Additional Servicer,
        in all
        material respects throughout such year or portion thereof, or, if there has
        been
        a failure to fulfill any such obligation in any material respect, specifying
        each such failure known to such officer and the nature and status
        thereof.

       

      
        
          
          

        

        
          158

          
            

          

        

        
          
          

        

      

      
        	
                Section
                  9.27

              	
                Merger
                  or Consolidation. 

              

      

       

      Any
        Person into which the Master Servicer may be merged or consolidated, or any
        Person resulting from any merger, conversion, other change in form or
        consolidation to which the Master Servicer shall be a party, or any Person
        succeeding to the business of the Master Servicer, shall be the successor
        to the
        Master Servicer hereunder, without the execution or filing of any paper or
        any
        further act on the part of any of the parties hereto, anything herein to
        the
        contrary notwithstanding; provided,
        however,
        that the
        successor or resulting Person to the Master Servicer shall be a Person that
        shall be qualified and approved to service mortgage loans for Fannie Mae
        or
        Freddie Mac and shall have a net worth of not less than
        $15,000,000.

       

      
        	
                Section
                  9.28

              	
                Resignation
                  of Master Servicer. 

              

      

       

      Except
        as
        otherwise provided in Sections 9.27 and 9.29 hereof, the Master Servicer
        shall
        not resign from the obligations and duties hereby imposed on it unless it
        determines that the Master Servicer’s duties hereunder are no longer permissible
        under applicable law or are in material conflict by reason of applicable
        law
        with any other activities carried on by it and cannot be cured. Any such
        determination permitting the resignation of the Master Servicer shall be
        evidenced by an Opinion of Counsel that shall be Independent to such effect
        delivered to the Trustee and any NIMS Insurer. No such resignation shall
        become
        effective until the Trustee shall have assumed, or a successor master servicer
        acceptable to any NIMS Insurer and the Trustee shall have been appointed
        by the
        Trustee and until such successor shall have assumed, the Master Servicer’s
        responsibilities and obligations under this Agreement. Notice of such
        resignation shall be given promptly by the Master Servicer and the Depositor
        to
        the Trustee and any NIMS Insurer.

       

      
        	
                Section
                  9.29

              	
                Assignment
                  or Delegation of Duties by the Master Servicer. 

              

      

       

      (a)
        Except as expressly provided herein, the Master Servicer shall not assign
        or
        transfer any of its rights, benefits or privileges hereunder to any other
        Person, or delegate to or subcontract with, or authorize or appoint any
        Subservicer, Subcontractor or other Person to perform any of the duties,
        covenants or obligations to be performed by the Master Servicer hereunder;
        provided,
        however,
        that the
        Master Servicer shall have the right without the prior written consent of
        the
        Trustee, any NIMS Insurer or the Depositor to delegate or assign to or
        subcontract with or authorize or appoint an Affiliate of the Master Servicer
        to
        perform and carry out any duties, covenants or obligations to be performed
        and
        carried out by the Master Servicer hereunder. In no case, however, shall
        any
        such delegation, subcontracting or assignment to an Affiliate of the Master
        Servicer relieve the Master Servicer of any liability hereunder. Notice of
        such
        permitted assignment, and the name of any such affiliated Subcontractor or
        Subservicer shall be given promptly by the Master Servicer to the Depositor,
        the
        Trustee and any NIMS Insurer. If, pursuant to any provision hereof, the duties
        of the Master Servicer are transferred to a successor master servicer, the
        entire amount of the Master Servicing Fees and other compensation payable
        to the
        Master Servicer pursuant hereto, including amounts payable to or permitted
        to be
        retained or withdrawn by the Master Servicer pursuant to Section 9.21 hereof,
        shall thereafter be payable to such successor master servicer.

       

      
        
          
          

        

        
          159

          
            

          

        

        
          
          

        

      

      (b)
        Notwithstanding the foregoing, for so long as reports are required to be
        filed
        with the Commission under the Exchange Act with respect to the Trust, the
        Master
        Servicer shall not utilize any Subcontractor for the performance of its duties
        hereunder if such Subcontractor would be “participating in the servicing
        function” within the meaning of Item 1122 of Regulation AB without (a) giving
        notice to the Trustee and the Depositor and (b) requiring any such Subcontractor
        to provide to the Master Servicer an attestation report as provided for in
        Section 9.25 and an assessment report as provided in Section 9.26, which
        reports
        the Master Servicer shall include in its attestation and assessment reports.
        

       

      
        	
                Section
                  9.30

              	
                Limitation
                  on Liability of the Master Servicer and Others. 

              

      

       

      (a) The
        Master Servicer undertakes to perform such duties and only such duties as
        are
        specifically set forth in this Agreement. 

       

      (b) No
        provision of this Agreement shall be construed to relieve the Master Servicer
        from liability for its own negligent action, its own negligent failure to
        act or
        its own willful misconduct; provided,
        however,
        that
        the duties and obligations of the Master Servicer shall be determined solely
        by
        the express provisions of this Agreement, the Master Servicer shall not be
        liable except for the performance of such duties and obligations as are
        specifically set forth in this Agreement; no implied covenants or obligations
        shall be read into this Agreement against the Master Servicer and, in absence
        of
        bad faith on the part of the Master Servicer, the Master Servicer may
        conclusively rely, as to the truth of the statements and the correctness
        of the
        opinions expressed therein, upon any certificates or opinions furnished to
        the
        Master Servicer and conforming to the requirements of this
        Agreement.

       

      (c) None
        of
        the Master Servicer, the Seller or the Depositor or any of the directors,
        officers, employees or agents of any of them shall be under any liability
        to the
        Trustee or the Certificateholders for any action taken or for refraining
        from
        the taking of any action in good faith pursuant to this Agreement, or for
        errors
        in judgment; provided,
        however,
        that
        this provision shall not protect the Master Servicer, the Seller or the
        Depositor or any such person against any liability that would otherwise be
        imposed by reason of willful misfeasance, bad faith or negligence in its
        performance of its duties or by reason of reckless disregard for its obligations
        and duties under this Agreement. The Master Servicer and any director, officer,
        employee or agent of any of them shall be entitled to indemnification by
        the
        Trust Fund and will be held harmless against any loss, liability or expense
        incurred in connection with any legal action relating to this Agreement or
        the
        Certificates other than any loss, liability or expense incurred by reason
        of
        willful misfeasance, bad faith or negligence in the performance of its duties
        hereunder or by reason of reckless disregard of his or its obligations and
        duties hereunder. The Master Servicer, the Seller and the Depositor and any
        director, officer, employee or agent of any of them may rely in good faith
        on
        any document of any kind prima facie properly executed and submitted by any
        Person respecting any matters arising hereunder. The Master Servicer, the
        Seller
        and the Depositor shall be under no obligation to appear in, prosecute or
        defend
        any legal action that is not incidental to its duties to master service the
        Mortgage Loans in accordance with this Agreement and that in its opinion
        may
        involve it in any expenses or liability; provided,
        however,
        that the
        Master Servicer may in its sole discretion undertake any such action that
        it may
        deem necessary or desirable in respect to this Agreement and the rights and
        duties of the parties hereto and the interests of the Certificateholders
        hereunder. In such event, the legal expenses and costs of such action and
        any
        liability resulting therefrom shall be expenses, costs and liabilities of
        the
        Trust Fund and the Master Servicer shall be entitled to be reimbursed therefor
        out of the Collection Account it maintains as provided by Section
        4.02.

       

      
        
          
          

        

        
          160

          
            

          

        

        
          
          

        

      

      The
        Master Servicer shall not be liable for any acts or omissions of any Servicer.
        In particular, the Master Servicer shall not be liable for any course of
        action
        taken by the Servicers with respect to loss mitigation of defaulted Mortgage
        Loans at the direction of the Credit Risk Manager or the Seller pursuant
        to any
        Credit Risk Management Agreement. Further, the Master Servicer shall not
        be
        liable for performance by any Servicer under any Credit Risk Management
        Agreement.

       

      
        	
                Section
                  9.31

              	
                Indemnification;
                  Third-Party Claims. 

              

      

       

      The
        Master Servicer agrees to indemnify the Depositor, the Sponsor, the Trustee
        and
        any NIMS Insurer and their respective officers, directors, agents and
        affiliates, and hold each of them harmless against any and all claims, losses,
        penalties, fines, forfeitures, reasonable legal fees and related costs,
        judgments, and any other costs, liability, fees and expenses that the Depositor,
        the Sponsor, the Trustee or any NIMS Insurer may sustain arising out of or
        based
        upon (a) any material breach by the Master Servicer of any if its obligations
        hereunder, including particularly its obligations to provide any reports
        under
        Section 9.25(a), Section 9.25(b) or Section 9.26 or any information, data
        or
        materials required to be included in any Exchange Act report, (b) any material
        misstatement or omission in any information, data or materials provided by
        the
        Master Servicer, or (c) the negligence, bad faith or willful misconduct of
        the
        Master Servicer in connection with its performance hereunder. The Depositor,
        the
        Sponsor, the Trustee and any NIMS Insurer shall immediately notify the Master
        Servicer if a claim is made by a third party with respect to this Agreement
        or
        the Mortgage Loans entitling the Depositor, the Sponsor, the Trustee or any
        NIMS
        Insurer to indemnification hereunder, whereupon the Master Servicer shall
        assume
        the defense of any such claim and pay all expenses in connection therewith,
        including counsel fees, and promptly pay, discharge and satisfy any judgment
        or
        decree which may be entered against it or them in respect of such claim.
        This
        indemnification shall survive the termination of this Agreement or the
        termination of the Master Servicer as a party to this Agreement.

       

      
        	
                Section
                  9.32

              	
                Special
                  Servicing of Delinquent Mortgage Loans. 

              

      

       

      If
        permitted under the terms of the applicable Servicing Agreement, the Seller
        may
        appoint, pursuant to the terms of the applicable Servicing Agreement and
        with
        the written consent of the Depositor, the Master Servicer, the Trustee and
        any
        NIMS Insurer, a special servicer to special service any Distressed Mortgage
        Loans. Any applicable termination fee related to the termination of the related
        Servicer and the appointment of any special servicer shall be paid by the
        Seller
        from its own funds, without right of reimbursement from the Trust Fund. Any
        fees
        paid to any such special servicer shall not exceed the Servicing Fee
        Rate.

       

      
        
          
          

        

        
          161

          
            

          

        

        
          
          

        

      

      
        	
                Section
                  9.33

              	
                Alternative
                  Index. 

              

      

       

      In
        the
        event that the Index for any Mortgage Loan, as specified in the related Mortgage
        Note, becomes unavailable for any reason, the Master Servicer shall select
        an
        alternative index, which in all cases shall be an index that constitutes
        a
        qualified rate on a regular interest under the REMIC Provisions, in accordance
        with the terms of such Mortgage Note or, if such Mortgage Note does not make
        provision for the selection of an alternative index in such event, the Master
        Servicer shall, subject to applicable law, select an alternative index based
        on
        information comparable to that used in connection with the original Index
        and,
        in either case, such alternative index shall thereafter be the Index for
        such
        Mortgage Loan.

       

      
        	
                Section
                  9.34

              	
                Duties
                  of the Credit Risk Manager.

              

      

       

      (a) The
        Certificateholders, by their purchase and acceptance of the Certificates,
        appoint Risk Management Group, LLC, as Credit Risk Manager. For and on behalf
        of
        the Depositor, the Credit Risk Manager will provide reports and recommendations
        concerning certain delinquent and defaulted Mortgage Loans, and as to the
        collection of any Prepayment Premiums with respect to the Mortgage Loans.
        Such
        reports and recommendations will be based upon information provided pursuant
        to
        Credit Risk Management Agreements to the Credit Risk Manager by the Servicers.
        The Credit Risk Manager shall look solely to the Servicers and/or the Master
        Servicer for all information and data (including loss and delinquency
        information and data) and loan level information and data relating to the
        servicing of the Mortgage Loans and the Trustee shall not have any obligation
        to
        provide any such information to the Credit Risk Manager and shall not otherwise
        have any responsibility under the Credit Risk Management Agreement.

       

      (b) On
        or
        about the 15th
        calendar
        day of each month, the Credit Risk Manager shall have prepared and shall
        make
        available to any NIMS Insurer, the Trustee, the Swap Counterparty and each
        Certificateholder, the following reports (each such report to be made in
        a
        format compatible with EDGAR filing requirements):

       

      (i)
         Forecasted
        Loss Report:
        A
        summary of those Mortgage Loans which are either REO Properties or are in
        foreclosure and for which a loss is projected to occur upon liquidation.
        The
        Forecasted Loss Report shall be presented in substantially the same format
        attached hereto as Exhibit R-1;

       

      (ii)
         Watch
        List Report:
        A
        summary of those Mortgage Loans that are Delinquent and may represent potential
        forecasted loss candidates if the economics of such Mortgage Loans remains
        the
        same. The Watch List Report shall be presented in substantially the same
        format
        attached hereto as Exhibit R-2;

       

      (iii)
         Red
        Flag Dashboard Report:
        A
        summary of those Mortgage Loans that represent specific non-performance
        problems; i.e.
        foreclosures that are exceeding their stated timelines by 60 days or more.
        The
        Red Flag Dashboard Report shall be presented in substantially the same format
        attached hereto as Exhibit R-3;

       

      
        
          
          

        

        
          162

          
            

          

        

        
          
          

        

      

      (iv)
         Gain/Loss
        Report:
        A
        summary of those Mortgage Loans that have liquidated during the current month
        and their resulting gain or loss and loss severity. The Gain/Loss Report
        shall
        be presented in substantially the same format attached hereto as Exhibit
        R-4;

       

      (v)
         Mortgage
        Insurance Claims Report:
        A
        summary of mortgage insurance claims submitted to the PMI Insurer by the
        Servicers, claim payment and denial information, and penalties assessed by
        the
        PMI Insurer. The Mortgage Insurance Claims Report shall be presented in
        substantially the same format attached hereto as Exhibit R-5.

       

      (vi)
         Prepayment
        Premiums Report:
        A
        summary of Prepayment Premiums assessed or waived by each Servicer. The
        Prepayment Premiums Report shall be presented in substantially the same format
        attached hereto as Exhibit R-6; and

       

      (vii)
         Highlight
        Summary Report:
        Highlight Summary Reports shall include statistical and/or graphical portrayals
        of:

       

      (A) Delinquency
        Trend:
        The
        delinquency trend, over time, of the Mortgage Loans;

       

      (B) Prepayment
        Analysis:
        The
        constant prepayment rate “CPR” experience of the Mortgage Loans;
        and

       

      (C) Standard
        Default Assumption:  
        The
        Standard Default Assumption experience of the Mortgage Loans.

       

      The
        Highlight Summary Report shall be presented in substantially the same format
        attached hereto as Exhibit R-7.

       

      The
        Credit Risk Manager shall make such reports and any additional information
        reasonably requested by the Depositor available each month to
        Certificateholders, the Trustee, any NIMS Insurer and the Rating Agencies
        via
        the Credit Risk Manager’s internet website. The Credit Risk Manager’s internet
        website shall initially be located at http://www.rmgglobal.com/rmgpd/bnc06-1.
        The
        Trustee shall not have any obligation to review such reports or otherwise
        monitor or supervise the activities of the Credit Risk Manager.

       

      (c) On
        each
        Distribution Date, the Credit Risk Manager shall (A) calculate, for each
        PMI
        Insurer, the Threshold Calculation for each such PMI Insurer for the immediately
        preceding Collection Period and (B) notify the Depositor, the Sponsor and
        the
        related PMI Insurer of each such PMI Insurer’s Threshold
        Calculation.

       

      (d) The
        Credit Risk Manager shall reasonably cooperate with the Depositor and the
        Trustee in connection with the Trust Fund’s satisfying the reporting
        requirements under the Exchange Act with respect to reports prepared by the
        Credit Risk Manager.

       

      
        
          
          

        

        
          163

          
            

          

        

        
          
          

        

      

      (e) The
        Credit Risk Manager has not and shall not engage any Subcontractor without
        (a)
        giving notice to the Sponsor, the Trustee, the Master Servicer and the Depositor
        and (b) requiring any such Subcontractor to provide to the Credit Risk Manager
        an assessment report as provided for in Section 9.25(a) above and an attestation
        report as provided in Section 9.25(b) above, which reports the Credit Risk
        Manager shall include in its assessment and attestation reports.

       

      (f) By
        March
        15 of each year (or if such day is not a Business Day, the immediately preceding
        Business Day), the Credit Risk Manager shall deliver a signed certification,
        in
        the form attached hereto as Exhibit U (the “Credit Risk Manager Certification”),
        for the benefit of the Depositor, the Sponsor, the Master Servicer and the
        Trustee and for the benefit of the Person(s) signing the Form 10-K
        Certification; provided
        (i) that
        the Credit Risk Manager Certification shall be so provided by March 15 of
        such
        year only to the extent that the Depositor delivers a draft (without exhibits)
        of the applicable Annual Report on Form 10-K to the Credit Risk Manager by
        the
        5th
        Business
        Day in March of such year and (ii) in the event that the Depositor delivers
        the
        draft Form 10-K referred to in clause (i) after the fifth Business Day in
        March
        of such year, the Credit Risk Manager shall deliver the Credit Risk Manager
        Certification as soon as practicable but no later than five calendar days
        of
        delivery to the Credit Risk Manager of such draft Form 10-K.

       

      (g) In
        the
        event that prior to the filing date of the Form 10-K in March of each year,
        the
        Credit Risk Manager has knowledge or information material to the Credit Risk
        Manager Certification, the Credit Risk Manager shall promptly notify the
        Depositor and the Trustee, in writing. 

       

      
        	
                Section
                  9.35

              	
                Limitation
                  Upon Liability of the Credit Risk Manager. 

              

      

       

      Except
        as
        provided pursuant to Section 9.36 of this Agreement, neither the Credit Risk
        Manager, nor any of the directors, officers, employees or agents of the Credit
        Risk Manager, shall be under any liability to the Trustee, the
        Certificateholders or the Depositor for any action taken or for refraining
        from
        the taking of any action in good faith pursuant to this Agreement, in reliance
        upon information provided by Servicers under the Credit Risk Management
        Agreements or for errors in judgment; provided, however,
        that
        this provision shall not protect the Credit Risk Manager or any such person
        against liability that would otherwise be imposed by reason of willful
        malfeasance, bad faith or gross negligence in its performance of its duties
        or
        by reason of reckless disregard for its obligations and duties under this
        Agreement or the Credit Risk Management Agreements. The Credit Risk Manager
        and
        any director, officer, employee or agent of the Credit Risk Manager may rely
        in
        good faith on any document of any kind prima facie properly executed and
        submitted by any Person respecting any matters arising hereunder, and may
        rely
        in good faith upon the accuracy of information furnished by the Servicers
        pursuant to the Credit Risk Management Agreements in the performance of its
        duties thereunder and hereunder.

       

      
        	
                Section
                  9.36

              	
                Indemnification
                  by the Credit Risk Manager. 

              

      

       

      The
        Credit Risk Manager agrees to indemnify the Depositor, the Master Servicer
        and
        the Trustee, and each of their respective directors, officers, employees
        and
        agents and the Trust Fund 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 Section 9.34(e) or any failure by the Credit
        Risk
        Manager to deliver any information, report, certification, accountants’ letter
        or other material when and as required under this Agreement, including any
        report under Sections 9.25(a) or (b).

       

      
        
          
          

        

        
          164

          
            

          

        

        
          
          

        

      

      
        	
                Section
                  9.37

              	
                Removal
                  of Credit Risk Manager.

              

      

       

      The
        Credit Risk Manager may be removed as Credit Risk Manager by Certificateholders
        holding not less than a 66-2/3% Voting Interests in the Trust, in the exercise
        of its or their sole discretion, at any time, without cause, upon ten (10)
        days
        prior written notice. The Certificateholders shall provide such written notice
        to the Trustee and upon receipt of such notice, the Trustee shall provide
        written notice to the Credit Risk Manager of its removal, effective upon
        receipt
        of such notice.

       

      ARTICLE
        X

       

      REMIC
        ADMINISTRATION

       

      
        	
                Section
                  10.01

              	
                REMIC
                  Administration.

              

      

       

      (a) REMIC
        elections as set forth in the Preliminary Statement shall be made on Forms
        1066
        or other appropriate federal tax or information return for the taxable year
        ending on the last day of the calendar year in which the Certificates are
        issued. The regular interests and residual interest in each REMIC shall be
        as
        designated in the Preliminary Statement. For purposes of such designations,
        the
        interest rate of any regular interest that is computed by taking into account
        the weighted average of the Net Mortgage Rates of the Mortgage Loans shall
        be
        reduced by the amount of any expense paid by the Trust to the extent that
        (i)
        such expense was not taken into account in computing the Net Mortgage Rate
        of
        any Mortgage Loan, (ii) such expense does not constitute an “unanticipated
        expense” of a REMIC within the meaning of Treasury Regulation Section
        1.860G-1(b)(3)(ii) and (iii) the amount of such expense was not taken into
        account in computing the interest rate of a more junior Class of regular
        interests.

       

      (b) The
        Closing Date is hereby designated as the “Startup Day” of each REMIC within the
        meaning of section 860G(a)(9) of the Code. The latest possible maturity date
        for
        purposes of Treasury Regulation 1.860G-1(a)(4) will be the Latest Possible
        Maturity Date.

       

      (c) The
        Trustee shall represent the Trust Fund in any administrative or judicial
        proceeding relating to an examination or audit by any governmental taxing
        authority with respect thereto. The Trustee shall pay any and all tax related
        expenses (not including taxes) of each REMIC, including but not limited to
        any
        professional fees or expenses related to audits or any administrative or
        judicial proceedings with respect to such REMIC that involve the Internal
        Revenue Service or state tax authorities, but only to the extent that (i)
        such
        expenses are ordinary or routine expenses, including expenses of a routine
        audit
        but not expenses of litigation (except as described in (ii)); or (ii) such
        expenses or liabilities (including taxes and penalties) are attributable
        to the
        negligence or willful misconduct of the Trustee in fulfilling its duties
        hereunder (including its duties as tax return preparer). The Trustee shall
        be
        entitled to reimbursement of expenses to the extent provided in clause (i)
        above
        from the Certificate Account, provided,
        however,
        the
        Trustee shall not be entitled to reimbursement for expenses incurred in
        connection with the preparation of tax returns and other reports as required
        by
        Section 6.20 and this Section.

       

      
        
          
          

        

        
          165

          
            

          

        

        
          
          

        

      

      (d) The
        Trustee shall prepare, sign and file, all of each REMIC’s federal and
        appropriate state tax and information returns as such REMIC’s direct
        representative. The expenses of preparing and filing such returns shall be
        borne
        by the Trustee.

       

      (e) The
        Trustee or its designee shall perform on behalf of each REMIC all reporting
        and
        other tax compliance duties that are the responsibility of such REMIC under
        the
        Code, the REMIC Provisions, or other compliance guidance issued by the Internal
        Revenue Service or any state or local taxing authority. Among its other duties,
        if required by the Code, the REMIC Provisions, or other such guidance, the
        Trustee shall provide (i) to the Treasury or other governmental authority
        such
        information as is necessary for the application of any tax relating to the
        transfer of a Residual Certificate to any disqualified person or organization
        pursuant to Treasury Regulation 1.860E-2(a)(5) and any person designated
        in
        Section 860E(e)(3) of the Code and (ii) to the Trustee such information as
        is
        necessary for the Trustee to provide to the Certificateholders such information
        or reports as are required by the Code or REMIC Provisions.

       

      The
        Trustee shall be entitled to receive reasonable compensation from the Trust
        for
        the performance of its duties under this subsection (e); provided,
        however,
        that
        such compensation shall not exceed $5,000 per year.

       

      (f) The
        Trustee, the Master Servicer and the Holders of Certificates shall take any
        action or cause any REMIC to take any action necessary to create or maintain
        the
        status of any REMIC as a REMIC under the REMIC Provisions and shall assist
        each
        other as necessary to create or maintain such status. Neither the Trustee,
        the
        Master Servicer nor the Holder of any Residual Certificate shall knowingly
        take
        any action, cause any REMIC to take any action or fail to take (or fail to
        cause
        to be taken) any action that, under the REMIC Provisions, if taken or not
        taken,
        as the case may be, could result in an Adverse REMIC Event unless the Trustee,
        any NIMS Insurer and the Master Servicer have received an Opinion of Counsel
        addressed to the Trustee (at the expense of the party seeking to take such
        action) to the effect that the contemplated action will not result in an
        Adverse
        REMIC Event. In addition, prior to taking any action with respect to any
        REMIC
        or the assets therein, or causing any REMIC to take any action, which is
        not
        expressly permitted under the terms of this Agreement, any Holder of a Residual
        Certificate will consult with the Trustee, the Master Servicer, any NIMS
        Insurer
        or their respective designees, in writing, with respect to whether such action
        could cause an Adverse REMIC Event to occur with respect to any REMIC, and
        no
        such Person shall take any such action or cause any REMIC to take any such
        action as to which the Trustee, the Master Servicer or any NIMS Insurer has
        advised it in writing that an Adverse REMIC Event could occur.

       

      (g) Each
        Holder of a Residual Certificate shall pay when due any and all taxes imposed
        on
        the related REMIC by federal or state governmental authorities. To the extent
        that such taxes are not paid by a Residual Certificateholder, the Trustee
        shall
        pay any remaining REMIC taxes out of current or future amounts otherwise
        distributable to the Holder of the Residual Certificate in any such REMIC
        or, if
        no such amounts are available, out of other amounts held in the Collection
        Account, and shall reduce amounts otherwise payable to holders of regular
        interests in any such REMIC, as the case may be.

       

      
        
          
          

        

        
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      (h) The
        Trustee shall, for federal income tax purposes, maintain books and records
        with
        respect to each REMIC on a calendar year and on an accrual basis.

       

      (i) No
        additional contributions of assets shall be made to any REMIC, except as
        expressly provided in this Agreement.

       

      (j) Neither
        the Trustee nor the Master Servicer shall enter into any arrangement by which
        any REMIC will receive a fee or other compensation for services.

       

      (k) On
        or
        before October 15 of each calendar year beginning in 2007, the Trustee shall
        deliver to any NIMS Insurer an Officer’s Certificate stating, without regard to
        any actions taken by any party other than the Trustee, the Trustee’s compliance
        with provisions of this Section 10.01. 

       

      (l) The
        Trustee shall treat each of the Basis Risk Reserve Fund and the Supplemental
        Interest Trust as an outside reserve fund within the meaning of Treasury
        Regulation Section 1.860G-2(h) that is owned by the Holders of the Class
        X
        Certificates and that is not an asset of any REMIC and all amounts deposited
        into the Basis Risk Reserve Fund or the Supplemental Interest Trust shall
        be
        treated as amounts distributed to the Class X Certificateholders. 

       

      (m) For
        federal income tax purposes, upon any sale of the property held by the Trust
        Fund pursuant to Section 7.01(b), any NIM Redemption Amount paid by the Master
        Servicer shall not be treated as a portion of the purchase price paid for
        such
        property but shall instead be treated as an amount paid by the Master Servicer
        to the Holder of the Class X Certificates in exchange for an interest in
        the
        Class X Certificates immediately before the purchase of the property held
        by the
        Trust Fund.

       

      (n) The
        Trustee shall treat the beneficial owners of Certificates (other than the
        Class
        P, Class X, Class LT-R and Class R Certificates) as having entered into a
        notional principal contract with respect to the beneficial owners of the
        Class X
        Certificates. Pursuant to each such notional principal contract, all beneficial
        owners of LIBOR Certificates shall be treated as having agreed to pay, on
        each
        Distribution Date, to the beneficial owners of the Class X Certificates an
        aggregate amount equal to the excess, if any, of (i) the amount payable on
        such
        Distribution Date on the interest in the Upper Tier REMIC corresponding to
        such
        Class of Certificates over
        (ii)
        the
        amount payable on such Class of Certificates on such Distribution Date (such
        excess, a “Class I Shortfall”). A Class I Shortfall payable from interest
        collections shall be allocated to each Class of Certificates to the extent
        that
        interest accrued on such Class for the related Accrual Period at the Certificate
        Interest Rate for a Class, computed by substituting “REMIC 3 Net Funds Cap” for
        the applicable “Net Funds Cap” in the definition thereof, exceeds the amount of
        interest accrued for the related Accrual Period based on the applicable Net
        Funds Cap, and a Class I Shortfall payable from principal collections shall
        be
        allocated to the most subordinate Class of Certificates with an outstanding
        principal balance to the extent of such balance. In addition, pursuant to
        such
        notional principal contract, the beneficial owner of the Class X Certificates
        shall be treated as having agreed to pay Basis Risk Shortfalls and Unpaid
        Basis
        Risk Shortfalls to the Owners of the LIBOR Certificates in accordance with
        the
        terms of this Agreement. Any
        payments to the Certificates in light of the foregoing shall not be payments
        with respect to a “regular interest” in a REMIC within the meaning of Code
        Section 860G(a)(1). However, any payment from the Certificates of a Class
        I
        Shortfall shall be treated for tax purposes as having been received by the
        beneficial
        owners
        of such
        Certificates in respect of their Interests in the Upper Tier REMIC and as
        having
        been paid by such beneficial
        owners
        to the
        Supplemental Interest Trust pursuant to the notional principal
        contract. Thus,
        each Certificate (other than a Class P, Class R and Class LT-R Certificates)
        shall be treated as representing not only ownership of regular interests
        in the
        Upper Tier REMIC, but also ownership of an interest in (and obligations with
        respect to) a notional principal contract. For tax purposes, the notional
        principal contract shall be deemed to have a value in favor of the Certificates
        entitled to receive Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls
        of
        $43,074.16 as of the Closing Date.

       

      
        
          
          

        

        
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      (o) Notwithstanding
        the priority and sources of payments set forth in Article V hereof or otherwise,
        the Trustee shall account for all distributions on the Certificates as set
        forth
        in this Section 10.01. In no event shall any payments of Basis Risk Shortfalls
        or Unpaid Basis Risk Shortfalls provided for in this Section 10.01 be treated
        as
payments
        with respect to a “regular interest” in a REMIC within the meaning of Code
        Section 860G(a)(1).

       

      
        	
                Section
                  10.02

              	
                Prohibited
                  Transactions and Activities. 

              

      

       

      Neither
        the Depositor, the Master Servicer nor the Trustee shall sell, dispose of,
        or
        substitute for any of the Mortgage Loans, except in a disposition pursuant
        to
        (i) the foreclosure of a Mortgage Loan, (ii) the bankruptcy of the Trust
        Fund,
        (iii) the termination of each REMIC pursuant to Article VII of this Agreement,
        (iv) a substitution pursuant to Article II of this Agreement or (v) a repurchase
        of Mortgage Loans pursuant to Article II of this Agreement, nor acquire any
        assets for any REMIC, nor sell or dispose of any investments in the Certificate
        Account for gain, nor accept any contributions to any REMIC after the Closing
        Date, unless the Trustee and any NIMS Insurer has received an Opinion of
        Counsel
        addressed to the Trustee (at the expense of the party causing such sale,
        disposition, or substitution) that such disposition, acquisition, substitution,
        or acceptance will not (a) result in an Adverse REMIC Event, (b) affect the
        distribution of interest or principal on the Certificates or (c) result in
        the
        encumbrance of the assets transferred or assigned to the Trust Fund (except
        pursuant to the provisions of this Agreement).

       

      
        	
                Section
                  10.03

              	
                Indemnification
                  with Respect to Certain Taxes and Loss of REMIC Status. 

              

      

       

      Upon
        the
        occurrence of an Adverse REMIC Event due to the negligent performance by
        the
        Trustee of its duties and obligations set forth herein, the Trustee shall
        indemnify any NIMS Insurer, the Holder of the related Residual Certificate
        or
        the Trust Fund, as applicable, against any and all losses, claims, damages,
        liabilities or expenses (“Losses”) resulting from such negligence; provided,
        however,
        that the
        Trustee shall not be liable for any such Losses attributable to the action
        or
        inaction of the Master Servicer, the Depositor, the Class X Certificateholders
        or the Holder of such Residual Certificate, as applicable, or for any such
        Losses resulting from misinformation provided by the Holder of such Residual
        Certificate on which the Trustee has relied. The foregoing shall not be deemed
        to limit or restrict the rights and remedies of the Holder of such Residual
        Certificate now or hereafter existing at law or in equity. Notwithstanding
        the
        foregoing, however, in no event shall the Trustee have any liability (1)
        for any
        action or omission that is taken in accordance with and in compliance with
        the
        express terms of, or which is expressly permitted by the terms of, this
        Agreement or any Servicing Agreement, (2) for any Losses other than arising
        out
        of a negligent performance by the Trustee of its duties and obligations set
        forth herein, and (3) for any special or consequential damages to
        Certificateholders (in addition to payment of principal and interest on the
        Certificates); provided,
        however,
        that
        this sentence shall not apply in connection with any failure by the Trustee
        to
        comply with the provisions of Subsections 6.01(l) hereof and Subsections
        9.25(a)
        or (b) hereof. In addition, the Trustee shall not have any liability for
        the
        actions or failure to act of any other party hereto.

       

      
        
          
          

        

        
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                Section
                  10.04

              	
                REO
                  Property. 

              

      

       

      (a) Notwithstanding
        any other provision of this Agreement, the Master Servicer, acting on behalf
        of
        the Trustee hereunder, shall not, except to the extent provided in the
        applicable Servicing Agreement, knowingly permit any Servicer to, rent, lease,
        or otherwise earn income on behalf of any REMIC with respect to any REO Property
        which might cause an Adverse REMIC Event unless the Master Servicer has advised,
        or has caused the applicable Servicer to advise, the Trustee and any NIMS
        Insurer in writing to the effect that, under the REMIC Provisions, such action
        would not result in an Adverse REMIC Event.

       

      (b) The
        Master Servicer shall cause the applicable Servicer (to the extent provided
        in
        its Servicing Agreement) to make reasonable efforts to sell any REO Property
        for
        its fair market value. In any event, however, the Master Servicer shall,
        or
        shall cause the applicable Servicer (to the extent provided in its Servicing
        Agreement) to, dispose of any REO Property within three years of its acquisition
        by the Trust Fund unless the Master Servicer has received a grant of extension
        from the Internal Revenue Service to the effect that, under the REMIC
        Provisions, the REMIC may hold REO Property for a longer period without causing
        an Adverse REMIC Event. If the Master Servicer has received such an extension,
        then the Trustee, or the Master Servicer, acting on its behalf hereunder,
        shall,
        or shall cause the applicable Servicer to, continue to attempt to sell the
        REO
        Property for its fair market value for such period longer than three years
        as
        such extension permits (the “Extended Period”). If the Trustee has not received
        such an extension and the Master Servicer or the applicable Servicer, acting
        on
        behalf of the Trustee hereunder, is unable to sell the REO Property within
        33
        months after its acquisition by the Trust Fund or if the Master Servicer
        has
        received such an extension, and the Master Servicer or the applicable Servicer
        is unable to sell the REO Property within the period ending three months
        before
        the close of the Extended Period, the Master Servicer shall cause the applicable
        Servicer, before the end of the three year period or the Extended Period,
        as
        applicable, to (i) purchase such REO Property at a price equal to the REO
        Property’s fair market value or (ii) auction the REO Property to the highest
        bidder (which may be the applicable Servicer) in an auction reasonably designed
        to produce a fair price prior to the expiration of the three-year period
        or the
        Extended Period, as the case may be.

       

      
        
          
          

        

        
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      ARTICLE
        XI

       

      MISCELLANEOUS
        PROVISIONS

       

      
        	
                Section
                  11.01

              	
                Binding
                  Nature of Agreement; Assignment. 

              

      

       

      This
        Agreement shall be binding upon and inure to the benefit of the parties hereto
        and their respective successors and permitted assigns.

       

      
        	
                Section
                  11.02

              	
                Entire
                  Agreement. 

              

      

       

      This
        Agreement contains the entire agreement and understanding among the parties
        hereto with respect to the subject matter hereof, and supersedes all prior
        and
        contemporaneous agreements, understandings, inducements and conditions, express
        or implied, oral or written, of any nature whatsoever with respect to the
        subject matter hereof. The express terms hereof control and supersede any
        course
        of performance and/or usage of the trade inconsistent with any of the terms
        hereof.

       

      
        	
                Section
                  11.03

              	
                Amendment.  

              

      

       

      (a) On
        or
        prior to a Section 7.01(c) Purchase Event, this Agreement may be amended
        from
        time to time by the Depositor, the Master Servicer and the Trustee, with
        the
        consent of any NIMS Insurer, but without the consent of the Credit Risk Manager
        or the Swap Counterparty (except to the extent that the rights or obligations
        of
        (1) the Credit Risk Manager or the Swap Counterparty hereunder or (2) the
        Swap
        Counterparty under the Swap Agreement are affected thereby, and except to
        the
        extent the ability of the Trustee on behalf of the Supplemental Interest
        Trust
        and the Trust Fund to perform fully and timely its obligations under the
        Swap
        Agreement is adversely affected, in which case prior written consent of the
        Swap
        Counterparty is required) and without notice to or the consent of any of
        the
        Holders, (i) to cure any ambiguity, (ii) to cause the provisions herein to
        conform to or be consistent with or in furtherance of the statements made
        with
        respect to the Certificates, the Trust Fund or this Agreement in any Offering
        Document, or to correct or supplement any provision herein which may be
        inconsistent with any other provisions herein or with the provisions of any
        Servicing Agreement, (iii) to make any other provisions with respect to matters
        or questions arising under this Agreement or (iv) to add, delete, or amend
        any
        provisions to the extent necessary or desirable to comply with any requirements
        imposed by the Code and the REMIC Provisions as evidenced by an Opinion of
        Counsel. No such amendment effected pursuant to the preceding sentence shall,
        as
        evidenced by an Opinion of Counsel, result in an Adverse REMIC Event, nor
        shall
        such amendment effected pursuant to clause (iii) of such sentence adversely
        affect in any material respect the interests of any Holder. Prior to entering
        into any amendment without the consent of Holders pursuant to this paragraph,
        the Trustee, any NIMS Insurer and the Swap Counterparty shall be provided
        with
        an Opinion of Counsel addressed to the Trustee, any NIMS Insurer and the
        Swap
        Counterparty (at the expense of the party requesting such amendment) to the
        effect that such amendment is permitted under this Section. Any such amendment
        shall be deemed not to adversely affect in any material respect any Holder,
        if
        the Trustee receives written confirmation from each Rating Agency that such
        amendment will not cause such Rating Agency to reduce then current rating
        assigned to the Certificates.

       

      
        
          
          

        

        
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      (b) On
        or
        prior to a Section 7.01(c) Purchase Event, this Agreement may also be amended
        from time to time by the Depositor, the Master Servicer and the Trustee,
        with
        the consent of any NIMS Insurer, but without the consent of the Credit Risk
        Manager or the Swap Counterparty (except to the extent that the rights or
        obligations of (1) the Credit Risk Manager or the Swap Counterparty hereunder
        or
        (2) the Swap Counterparty under the Swap Agreement are affected thereby,
        or the
        ability of the Trustee on behalf of the Supplemental Interest Trust and the
        Trust Fund to perform fully and timely its obligations under the Swap Agreement
        is adversely affected, in which case prior written consent of the Swap
        Counterparty is required) and with the consent of the Holders of not less
        than
        66-2/3% of the Class Principal Amount (or Percentage Interest) of each Class
        of
        Certificates affected thereby for the purpose of adding any provisions to
        or
        changing in any manner or eliminating any of the provisions of this Agreement
        or
        of modifying in any manner the rights of the Holders; provided,
        however,
        that no
        such amendment shall be made unless the Trustee and any NIMS Insurer receives
        an
        Opinion of Counsel addressed to the Trustee and the NIMS Insurer, at the
        expense
        of the party requesting the change, that such change will not cause an Adverse
        REMIC Event; and provided further, that no such amendment may (i) reduce
        in any
        manner the amount of, or delay the timing of, payments received on Mortgage
        Loans which are required to be distributed on any Certificate, without the
        consent of the Holder of such Certificate or (ii) reduce the aforesaid
        percentages of Class Principal Amount (or Percentage Interest) of Certificates
        of each Class, the Holders of which are required to consent to any such
        amendment without the consent of the Holders of 100% of the Class Principal
        Amount (or Percentage Interest) of each Class of Certificates affected thereby.
        For purposes of this paragraph, references to “Holder” or “Holders” shall be
        deemed to include, in the case of any Class of Book-Entry Certificates, the
        related Certificate Owners.

       

      (c) After
        a
        Section 7.01(c) Purchase Event but on or prior to a Trust Fund Termination
        Event, this Agreement may be amended from time to time by the Depositor,
        the
        Master Servicer, the LTURI-holder and the Trustee, but without the consent
        of
        the Credit Risk Manager, the Cap Counterparty, or the Swap Counterparty (except
        to the extent that the rights or obligations of (1) the Credit Risk Manager,
        the
        Cap Counterparty or the Swap Counterparty hereunder or (2) the Cap Counterparty
        or the Swap Counterparty under the Interest Rate Cap Agreement or the Swap
        Agreement, respectively, or the ability of the Trustee on behalf of the
        Supplemental Interest Trust and the Trust Fund to perform fully and timely
        its
        obligations under the Interest Rate Cap Agreement or Swap Agreement, as
        applicable, is adversely affected, in which case prior written consent of
        the
        Credit Risk Manager, the Cap Counterparty or the Swap Counterparty, as
        applicable, is required). Prior to entering into any amendment without the
        consent of Holders pursuant to this paragraph, the Trustee and the Swap
        Counterparty shall be provided with an Opinion of Counsel addressed to the
        Trustee, any NIMS Insurer and the Swap Counterparty (at the expense of the
        party
        requesting such amendment) to the effect that such amendment is permitted
        under
        this Section and will not result in an Adverse REMIC Event.

       

      (d) Promptly
        after the execution of any such amendment, the Trustee shall furnish written
        notification of the substance of such amendment to each Holder, the Depositor,
        the Swap Counterparty, any NIMS Insurer and to the Rating Agencies.

       

      (e) It
        shall
        not be necessary for the consent of Holders under this Section 11.03 to approve
        the particular form of any proposed amendment, but it shall be sufficient
        if
        such consent shall approve the substance thereof. The manner of obtaining
        such
        consents and of evidencing the authorization of the execution thereof by
        Holders
        shall be subject to such reasonable regulations as the Trustee may
        prescribe.

       

      
        
          
          

        

        
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      (f) Notwithstanding
        anything to the contrary in any Servicing Agreement, the Trustee shall not
        consent to any amendment of any Servicing Agreement unless (i) such amendment
        is
        effected pursuant to the standards provided in Section 11.03(a) or 11.03(b)
        with
        respect to amendment of this Agreement and (ii) except for a Permitted Servicing
        Amendment, any such amendment pursuant to Section 11.03(a)(iii) shall not
        be
        materially inconsistent with the provisions of such Servicing Agreement.
        

       

      (g) Notwithstanding
        anything to the contrary in this Section 11.03, this Agreement may be amended
        from time to time by the Depositor, the Master Servicer and the Trustee to
        the
        extent necessary, in the judgment of the Depositor and its counsel, to comply
        with the Rules.

       

      
        	
                Section
                  11.04

              	
                Voting
                  Rights. 

              

      

       

      Except
        to
        the extent that the consent of all affected Certificateholders is required
        pursuant to this Agreement, with respect to any provision of this Agreement
        requiring the consent of Certificateholders representing specified percentages
        of aggregate outstanding Certificate Principal Amount (or Percentage Interest),
        Certificates owned by the Depositor, the Master Servicer, the Trustee, any
        Servicer, the Credit Risk Manager or Affiliates thereof are not to be counted
        so
        long as such Certificates are owned by the Depositor, the Master Servicer,
        the
        Trustee, any Servicer, the Credit Risk Manager or any Affiliate
        thereof.

       

      
        	
                Section
                  11.05

              	
                Provision
                  of Information. 

              

      

       

      (a) For
        so
        long as any of the Certificates of any Series or Class are “restricted
        securities” within the meaning of Rule 144(a)(3) under the Act, each of the
        Depositor, the Master Servicer and the Trustee agree to cooperate with each
        other to provide to any Certificateholders, any NIM Security holder and to
        any
        prospective purchaser of Certificates designated by such holder, upon the
        request of such holder or prospective purchaser, any information required
        to be
        provided to such holder or prospective purchaser to satisfy the condition
        set
        forth in Rule 144A(d)(4) under the Act. Any reasonable, out-of-pocket expenses
        incurred by the Master Servicer or the Trustee in providing such information
        shall be reimbursed by the Depositor.

       

      (b) The
        Trustee shall provide to any person to whom a Prospectus was delivered, upon
        the
        request of such person specifying the document or documents requested, (i)
        a
        copy (excluding exhibits) of any report on Form 8-K or Form 10-K filed with
        the
        Securities and Exchange Commission pursuant to Section 6.20(c) and (ii) a
        copy
        of any other document incorporated by reference in the Prospectus (to the
        extent
        that the Trustee has such documents in its possession or such documents are
        reasonably obtained by the Trustee). Any reasonable out-of-pocket expenses
        incurred by the Trustee in providing copies of such documents shall be
        reimbursed by the Depositor.

       

      (c) On
        each
        Distribution Date, the Trustee shall deliver or cause to be delivered by
        first
        class mail or make available on its website to the Depositor, Attention:
        Contract Finance, a copy of the report delivered to Certificateholders pursuant
        to Section 4.03.

       

      
        
          
          

        

        
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                Section
                  11.06

              	
                Governing
                  Law.

              

      

       

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

       

      
        	
                Section
                  11.07

              	
                Notices.

              

      

       

      All
        demands, notices and communications hereunder shall be in writing and shall
        be
        deemed to have been duly given when received by (a) in the case of the
        Depositor, Structured Asset Securities Corporation, 745 Seventh Avenue, 7th
        Floor, New York, NY 10019, Attention: Mortgage Finance BNC 2006-1, (b) in
        the case of the Seller, Lehman Brothers Holdings Inc., 745 Seventh Avenue,
        7th
        Floor, New York, NY 10019, Attention: Mortgage Finance BNC 2006-1, (c)  in
        the case of the Credit Risk Manager, Risk Management Group, LLC, 60 Sackett
        St.
        Suite 5, Brooklyn, NY 11231, Attention: General Counsel, (d) in the case
        of the
        Trustee, the Corporate Trust Office, (e) in the case of the Master Servicer,
        Aurora Loan Services LLC, 10350 Park Meadows Drive, Littleton, Colorado 80124;
        Attention: Master Servicing, BNC 2006-1, (f) in the case of Mortgage Guaranty
        Insurance Corporation, 250 E. Kilbourn Avenue, P.O. Box 488, Milwaukee,
        Wisconsin 53201, Attention: Risk Management, (g) in the case of PMI Mortgage
        Insurance Co., 3003 Oak Road, Walnut Creek, California 94597, Attention:
        Structured Transactions, and (h) in the case of the Cap Counterparty or the
        Swap
        Counterparty, at the address therefore set forth in the Interest Rate Cap
        Agreement and Swap Agreement, respectively, or, as to each party, such other
        address as may hereafter be furnished by such party to the other parties
        in
        writing. All demands, notices and communications to a party hereunder shall
        be
        in writing and shall be deemed to have been duly given when delivered to
        such
        party at the relevant address, facsimile number or electronic mail address
        set
        forth above or at such other address, facsimile number or electronic mail
        address as such party may designate from time to time by written notice in
        accordance with this Section 11.07.

      

      
        	
                Section
                  11.08

              	
                Severability
                  of Provisions. 

              

      

       

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

       

      
        	
                Section
                  11.09

              	
                Indulgences;
                  No Waivers.

              

      

       

      Neither
        the failure nor any delay on the part of a party to exercise any right, remedy,
        power or privilege under this Agreement shall operate as a waiver thereof,
        nor
        shall any single or partial exercise of any right, remedy, power or privilege
        preclude any other or further exercise of the same or of any other right,
        remedy, power or privilege, nor shall any waiver of any right, remedy, power
        or
        privilege with respect to any occurrence be construed as a waiver of such
        right,
        remedy, power or privilege with respect to any other occurrence. No waiver
        shall
        be effective unless it is in writing and is signed by the party asserted
        to have
        granted such waiver.

       

      
        
          
          

        

        
          173

          
            

          

        

        
          
          

        

      

      
        	
                Section
                  11.10

              	
                Headings
                  Not To Affect Interpretation.

              

      

       

      The
        headings contained in this Agreement are for convenience of reference only,
        and
        they shall not be used in the interpretation hereof.

       

      
        	
                Section
                  11.11

              	
                Benefits
                  of Agreement.

              

      

       

      The
        Depositor shall promptly notify the Custodian and the Trustee in writing
        of the
        issuance of any Class of NIMS Securities issued by a NIMS Insurer and the
        identity of such NIMS Insurer. Thereafter, the NIMS Insurer shall be deemed
        a
        third-party beneficiary of this Agreement to the same extent as if it were
        a
        party hereto, and shall be subject to and have the right to enforce the
        provisions of this Agreement so long as the NIMS Securities remaining
        outstanding or the NIMS Insurer is owed amounts in respect of its guarantee
        of
        payment of such NIMS Securities. Nothing in this Agreement or in the
        Certificates, express or implied, shall give to any Person, other than the
        parties to this Agreement and their successors hereunder, the Swap Counterparty
        and its successors and assignees under the Swap Agreement, the Holders of
        the
        Certificates and the NIMS Insurer, any benefit or any legal or equitable
        right,
        power, remedy or claim under this Agreement, except to the extent specified
        in
        Sections 5.08 and Section 11.15, as applicable.

       

      
        	
                Section
                  11.12

              	
                Special
                  Notices to the Rating Agencies and any NIMS Insurer.  

              

      

       

      (a) The
        Depositor shall give prompt notice to the Rating Agencies and any NIMS Insurer
        of the occurrence of any of the following events of which it has
        notice:

       

      (i)
         any
        amendment to this Agreement pursuant to Section 11.03;

       

      (ii)
         any
        Assignment by the Master Servicer of its rights hereunder or delegation of
        its
        duties hereunder;

       

      (iii)
         the
        occurrence of any Event of Default described in Section 6.14;

       

      (iv)
         any
        notice of termination given to the Master Servicer pursuant to Section 6.14
        and
        any resignation of the Master Servicer hereunder;

       

      (v)
         the
        appointment of any successor to any Master Servicer pursuant to Section 6.14;
        

       

      (vi)
         the
        making of a final payment pursuant to Section 7.02; and

       

      (vii)
         any
        termination of the rights and obligations of any Servicer under the applicable
        Servicing Agreement.

       

      
        
          
          

        

        
          174

          
            

          

        

        
          
          

        

      

      (b) All
        notices to the Rating Agencies provided for this Section shall be in writing
        and
        sent by first class mail, telecopy or overnight courier, as
        follows:

       

      If
        to
        S&P, to:

      

      Standard
        & Poor’s Ratings Services

      55
        Water
        Street

      New
        York,
        New York 10041

      Attention:
        Residential Mortgages

      

      If
        to
        Moody’s, to:

       

      Moody’s
        Investor Service, Inc.

      99
        Church
        Street

      New
        York,
        New York 10007

      Attention:
        Residential Mortgages

       

      If
        to
        Fitch, to:

      
Fitch,
        Inc.

      One
        State
        Street Plaza

      New
        York,
        New York 10004

      Attention:
        Residential Mortgages

      

      (c) The
        Trustee shall provide or make available to the Rating Agencies reports prepared
        pursuant to Section 4.03. In addition, the Trustee shall, at the expense
        of the
        Trust Fund, make available to each Rating Agency such information as such
        Rating
        Agency may reasonably request regarding the Certificates or the Trust Fund,
        to
        the extent that such information is reasonably available to the
        Trustee.

       

      
        	
                Section
                  11.13

              	
                Conflicts. 

              

      

       

      To
        the
        extent that the terms of this Agreement conflict with the terms of any Servicing
        Agreement, the related Servicing Agreement shall govern, unless such provisions
        shall adversely affect the Trustee or the Trust Fund.

       

      
        	
                Section
                  11.14

              	
                Counterparts. 

              

      

       

      This
        Agreement may be executed in one or more counterparts, each of which shall
        be
        deemed to be an original, and all of which together shall constitute one
        and the
        same instrument.

       

      
        
          
          

        

        
          175

          
            

          

        

        
          
          

        

      

      
        	
                Section
                  11.15

              	
                Transfer
                  of Servicing.

              

      

       

      The
        Seller agrees that it shall provide written notice to the Master Servicer,
        the
        Swap Counterparty, any NIMS Insurer and the Trustee thirty days prior to
        any
        proposed transfer or assignment by such Seller of its rights under any Servicing
        Agreement or of the servicing thereunder or delegation of its rights or duties
        thereunder or any portion thereof to any other Person other than the initial
        Servicer under such Servicing Agreement; provided that the Seller shall not
        be
        required to provide prior notice of (i) any transfer of servicing by Option
        One to either Aurora or Wells Fargo, that occurs within three months of the
        Closing Date or (ii) any assignment of any Servicing rights from one Seller
        to the other Seller. In addition, the ability of the Seller to transfer or
        assign its rights and delegate its duties under a Servicing Agreement or
        to
        transfer the servicing thereunder to a successor servicer shall be subject
        to
        the following conditions, provided that in the case of servicing transfers
        from
        Option One to either Aurora or Wells Fargo pursuant to forms of Servicing
        Agreements attached as Exhibits W and X hereto, the conditions set forth
        in
        clauses (i), (iv) and (v) below shall be deemed satisfied:

       

      (i)
         Satisfaction
        of the conditions to such transfer as set forth in the applicable Servicing
        Agreement including, without limitation, receipt of written consent of any
        NIMS
        Insurer and the Master Servicer to such transfer;

       

      (ii)
         Such
        successor servicer must be qualified to service loans for Fannie Mae or Freddie
        Mac, and must be a member in good standing of MERS;

       

      (iii)
         Such
        successor servicer must satisfy the seller/servicer eligibility standards
        in the
        applicable Servicing Agreement, exclusive of any experience in mortgage loan
        origination;

       

      (iv)
         Such
        successor servicer must execute and deliver to the Trustee and the Master
        Servicer an agreement, in form and substance reasonably satisfactory to the
        Trustee and the Master Servicer, that contains an assumption by such successor
        servicer of the due and punctual performance and observance of each covenant
        and
        condition to be performed and observed by the applicable Servicer under the
        applicable Servicing Agreement or, in the case of a transfer of servicing
        to a
        party that is already a Servicer pursuant to this Agreement, an agreement
        to add
        the related Mortgage Loans to the Servicing Agreement already in effect with
        such Servicer;

       

      (v)
         If
        the
        successor servicer is not a Servicer of Mortgage Loans at the time of the
        transfer, there must be delivered to the Trustee and the Master Servicer
        a
        letter from each Rating Agency to the effect that such transfer of servicing
        will not result in a qualification, withdrawal or downgrade of the then-current
        rating of any of the Certificates; and

       

      
        
          
          

        

        
          176

          
            

          

        

        
          
          

        

      

      (vi)
         The
        Seller shall, at its cost and expense, take such steps, or cause the terminated
        Servicer to take such steps, as may be necessary or appropriate to effectuate
        and evidence the transfer of the servicing of the Mortgage Loans to such
        successor servicer, including, but not limited to, the following: (A) to
        the
        extent required by the terms of the Mortgage Loans and by applicable federal
        and
        state laws and regulations, the Seller shall cause the prior Servicer to
        timely
        mail to each obligor under a Mortgage Loan any required notices or disclosures
        describing the transfer of servicing of the Mortgage Loans to the successor
        servicer; (B) prior to the effective date of such transfer of servicing,
        the
        Seller shall cause the prior Servicer to transmit to any related insurer
        notification of such transfer of servicing; (C) on or prior to the effective
        date of such transfer of servicing, the Seller shall cause the prior Servicer
        to
        deliver to the successor servicer all Mortgage Loan Documents and any related
        records or materials; (D) on or prior to the effective date of such transfer
        of
        servicing, the Seller shall cause the prior Servicer to transfer to the
        successor servicer, all funds held by the prior Servicer in respect of the
        Mortgage Loans; (E) on or prior to the effective date of such transfer of
        servicing, the Seller shall cause the prior Servicer to, after the effective
        date of the transfer of servicing to the successor servicer, continue to
        forward
        to such successor servicer, within one Business Day of receipt, the amount
        of
        any payments or other recoveries received by the prior Servicer, and to notify
        the successor servicer of the source and proper application of each such
        payment
        or recovery; and (F) the Seller shall cause the prior Servicer to, after
        the
        effective date of transfer of servicing to the successor servicer, continue
        to
        cooperate with the successor servicer to facilitate such transfer in such
        manner
        and to such extent as the successor servicer may reasonably request.
        Notwithstanding the foregoing, the prior Servicer shall be obligated to perform
        the items listed above to the extent provided in the applicable Servicing
        Agreement.

       

      
        
          
          

        

        
          177

          
            

          

        

        
          
          

        

      

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

       

      
        	 	 	 
	 	
                STRUCTURED
                  ASSET SECURITIES CORPORATION,
as
                  Depositor

              
	 
 	 
 	 
 
	 	By:  	/s/ Ellen
                V.
                Kiernan
	 	
                
Name:
                Ellen V. Kiernan
	 	Title:
                Senior Vice President

      

       

      
        	 	 	 
	 	
                U.S.
                  BANK NATIONAL ASSOCIATION,
as
                  Trustee

              
	 
 	 
 	 
 
	 	By:  	/s/ James
                H.
                Byrnes
	 	
                
Name:
                James H. Byrnes
	 	Title:
                Vice President

      

       

      
        	 	 	 
	 	
                AURORA
                  LOAN SERVICES LLC,
as Master Servicer

              
	 
 	 
 	 
 
	 	By:  	/s/ Jerald
                W.
                Dreyer
	 	
                
Name:
                Jerald W. Dreyer
	 	Title:
                Vice
                President

      

       

      
        	 	 	 
	 	
                RISK
                  MANAGEMENT GROUP, LLC,
as
                  Credit Risk Manager

              
	 
 	 
 	 
 
	 	By:  	/s/ John
                Cafiero
	 	
                
Name:
                John Cafiero
	 	Title:
                Managing Member

      

      
        	 	 	 
	 
 	 
 	 
 
	 	By:  	/s/ Charlie
                Cacici
	 	
                
Name:
                Charlie Cacici
	 	Title:
                President/Managing Member

 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Solely
        for purposes of Sections 5.07(c), 6.11 and 11.15, 

      accepted
        and agreed to by:

       

      
        	LEHMAN BROTHERS HOLDINGS
                INC. 	 
	 	 	 
	 	 	 
	By: 	
                /s/ Michael C. Hitzmann

              	 
	 	
                
Name:
                Michael C. Hitzmann  	 
	 	Title: Authorized
                Signatory 	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

       

      FORMS
        OF
        CERTIFICATES

      

      
 

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-1

       

      FORM
        OF
        INITIAL CERTIFICATION

       

      
        	 	
                
                  

                

                Date 

              

      

       

      U.S.
        Bank
        National Association

      One
        Federal Street

      3rd
        Floor

      Boston,
        Massachusetts 02110

      

      Structured
        Asset Securities Corporation

      745
        Seventh Avenue, 7th Floor

      New
        York,
        New York 10019

       

      [SERVICERS]

       

      
        
          	
                	Re:	
                  Trust
                    Agreement dated as of September 1, 2006 (the “Trust Agreement”), by and
                    among Structured Asset Securities Corporation, as Depositor,
                    U.S. Bank
                    National Association, as Trustee, Aurora Loan Services
LLC, as Master
                    Servicer, and Risk Management Group, LLC, as Credit Risk Manager
                    with
                    respect to BNC Mortgage Loan
                    Trust 2006-1 Mortgage Pass-Through Certificates, Series 2006-1  

                

        

      

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.02(a) of the Trust Agreement, subject to review
        of the
        contents thereof, the undersigned, as the Custodian, hereby certifies that
        it
        has received the documents listed in Section 2.01(b) of the Trust Agreement
        for
        each Mortgage File pertaining to each Mortgage Loan listed on Schedule A,
        to the
        Trust Agreement, subject to any exceptions noted on Schedule I
        hereto.

       

      Capitalized
        words and phrases used herein and not otherwise defined herein shall have
        the
        respective meanings assigned to them in the Trust Agreement. This Certificate
        is
        subject in all respects to the terms of Section 2.02 of the Trust Agreement
        and
        the Trust Agreement sections cross-referenced therein.

       

      
        	 	 	 
	 	[Custodian]
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:

	 	Title: 

      

       

      
        
          
          

        

        
          B-1-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-2

       

      FORM
        OF
        INTERIM CERTIFICATION

      
         

        
          	 	
                  
                    

                  

                  Date 

                

        

         

        U.S.
          Bank
          National Association

        One
          Federal Street

        3rd
          Floor

        Boston,
          Massachusetts 02110

        

        Structured
          Asset Securities Corporation

        745
          Seventh Avenue, 7th Floor

        New
          York,
          New York 10019

         

        [SERVICERS]

         

        
          
            	
                  	Re:	
                    Trust
                      Agreement dated as of September 1, 2006 (the “Trust Agreement”), by and
                      among Structured Asset Securities Corporation, as Depositor,
                      U.S. Bank
                      National Association, as Trustee, Aurora Loan Services
LLC, as Master
                      Servicer, and Risk Management Group, LLC, as Credit Risk Manager
                      with
                      respect to BNC Mortgage Loan
                      Trust 2006-1 Mortgage Pass-Through Certificates, Series 2006-1  

                  

          

        

      

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.02(b) of the Trust Agreement, the undersigned,
        as
        Custodian, hereby certifies that as to each Mortgage Loan listed in the Mortgage
        Loan Schedule (other than any Mortgage Loan paid in full or listed on Schedule
        I
        hereto) it has received the applicable documents listed in Section 2.01(b)
        of
        the Trust Agreement.

       

      The
        undersigned hereby certifies that as to each Mortgage Loan identified on
        the
        Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I
        hereto, it has reviewed the documents listed in Section 2.01(b) of the Trust
        Agreement and has determined that each such document appears regular on its
        face
        and appears to relate to the Mortgage Loan identified in such
        document.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the Trust Agreement. This Certificate is qualified in all respects
        by
        the terms of said Trust Agreement including, but not limited to, Section
        2.02(b).

      
         

        
          	 	 	 
	 	[Custodian]
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Name:

	 	Title: 

        

         

        
          
            
            

          

          
            B-2-1

            
              

            

          

          
            
            

          

        

      

      EXHIBIT
        B-3

       

      FORM
        OF
        FINAL CERTIFICATION

      
         

        
          	 	
                  
                    

                  

                  Date 

                

        

         

        U.S.
          Bank
          National Association

        One
          Federal Street

        3rd
          Floor

        Boston,
          Massachusetts 02110

        

        Structured
          Asset Securities Corporation

        745
          Seventh Avenue, 7th Floor

        New
          York,
          New York 10019

         

        [SERVICERS]

         

        
          
            	
                  	Re:	
                    Trust
                      Agreement dated as of September 1, 2006 (the “Trust Agreement”), by and
                      among Structured Asset Securities Corporation, as Depositor,
                      U.S. Bank
                      National Association, as Trustee, Aurora Loan Services
LLC, as Master
                      Servicer, and Risk Management Group, LLC, as Credit Risk Manager
                      with
                      respect to BNC Mortgage Loan
                      Trust 2006-1 Mortgage Pass-Through Certificates, Series 2006-1  

                  

          

        

      

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.02(d) of the Trust Agreement, the undersigned,
        as
        Custodian on behalf of the Trustee, hereby certifies that as to each Mortgage
        Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid
        in
        full or listed on Schedule I hereto) it has received the applicable documents
        listed in Section 2.01(b) of the Trust Agreement.

       

      The
        undersigned hereby certifies that as to each Mortgage Loan identified in
        the
        Mortgage Loan Schedule, other than any Mortgage Loan listed on Schedule I
        hereto, it has reviewed the documents listed in Section 2.01(b) of the Trust
        Agreement and has determined that each such document appears to be complete
        and,
        based on an examination of such documents, the information set forth in items
        (i) through (vi) of the definition of Mortgage Loan Schedule is correct.
        

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the Trust Agreement. This Certificate is qualified in all respects
        by
        the terms of said Trust Agreement.

      
         

        
          	 	 	 
	 	[Custodian]
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Name:

	 	Title: 

        

      

       

      
        
          
          

        

        
          B-3-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B-4

       

      FORM
        OF
        ENDORSEMENT

       

      Pay
        to
        the order of U.S. Bank National Association, as trustee (the “Trustee”) under
        the Trust Agreement dated as of September 1, 2006 by and among Structured
        Asset
        Securities Corporation, as Depositor, the Trustee, Aurora Loan Services LLC,
        as
        Master Servicer, and Risk Management Group, LLC, as Credit Risk Manager relating
        to BNC Mortgage Loan Trust 2006-1 Mortgage Pass-Through Certificates, Series
        2006-1, without recourse.

      
         

        
          	 	 	 
	 	
                  __________________________________

                  [current
                    signatory on note]

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Name:

	 	Title: 

        

         

        
          
            
            

          

          
            B-4-1

            
              

            

          

          
            
            

          

        

      

      EXHIBIT
        C

       

      REQUEST
        FOR RELEASE OF DOCUMENTS AND RECEIPT

      
         

        
          	 	
                  
                    

                  

                  Date 

                

        

      

       

      [Addressed
        to Trustee

      or,
        if
        applicable, the Custodian]

       

      In
        connection with the administration of the mortgages held by you as Trustee
        under
        a certain Trust Agreement dated as of September 1, 2006 by and among Structured
        Asset Securities Corporation, as Depositor, you, as Trustee, Aurora Loan
        Services LLC, as Master Servicer, and Risk Management Group, LLC, as Credit
        Risk
        Manager, (the “Trust Agreement”), the undersigned Servicer hereby requests a
        release of the Mortgage File held by you as Trustee with respect to the
        following described Mortgage Loan for the reason indicated below.

       

      Mortgagor’s
        Name:

       

      Address:

       

      Loan
        No.:

       

      Reason
        for requesting file:

       

      1. Mortgage
        Loan paid in full. (The Servicer hereby certifies that all amounts received
        in
        connection with the loan have been or will be credited to the Certificate
        Account pursuant to the Trust Agreement.)

       

      2. The
        Mortgage Loan is being foreclosed.

       

      3. Mortgage
        Loan substituted. (The Servicer hereby certifies that a Qualifying Substitute
        Mortgage Loan has been assigned and delivered to you along with the related
        Mortgage File pursuant to the Trust Agreement.)

       

      4. Mortgage
        Loan repurchased. (The Servicer hereby certifies that the Purchase Price
        or FPD
        Purchase Price (in the case of a First Payment Default Mortgage Loan) has
        been
        credited to the Certificate Account pursuant to the Trust
        Agreement.)

       

      5. Other.
        (Describe)

       

      The
        undersigned acknowledges that the above Mortgage File will be held by the
        undersigned in accordance with the provisions of the Trust Agreement and
        will be
        returned to you within ten (10) days of our receipt of the Mortgage File,
        except
        if the Mortgage Loan has been paid in full, or repurchased or substituted
        for a
        Qualifying Substitute Mortgage Loan (in which case the Mortgage File will
        be
        retained by us permanently) and except if the Mortgage Loan is being foreclosed
        (in which case the Mortgage File will be returned when no longer required
        by us
        for such purpose).

       

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

      Capitalized
        terms used herein shall have the meanings ascribed to them in the Trust
        Agreement.

      
         

        
          	 	 	 
	 	
                  __________________________________

                  [Name
                    of Servicer]

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Name:

	 	Title: Servicing
                  Officer

        

         

        
          
            
            

          

          
            C-2

            
              

            

          

          
            
            

          

        

      

      EXHIBIT
        D-1

       

      FORM
        OF
        RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEREE)

       

       

      
        	STATE OF 	) 
	 	) ss.:
	COUNTY OF 	) 

      

         

      [NAME
        OF
        OFFICER], _________________ being first duly sworn, deposes and
        says:

       

      
        	 	
                1.

              	
                That
                  he [she] is [title of officer] ________________________ of [name
                  of
                  Purchaser] _________________________________________ (the “Purchaser”), a
                  _______________________ [description of type of entity] duly organized
                  and
                  existing under the laws of the [State of __________] [United States],
                  on
                  behalf of which he [she] makes this
                  affidavit.

              

      

       

      
        	 	
                2.

              	
                That
                  the Purchaser’s Taxpayer Identification Number is
                             .

              

      

       

      
        	 	
                3.

              	
                That
                  the Purchaser is not a “disqualified organization” within the meaning of
                  Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended
                  (the
                  “Code”) and will not be a “disqualified organization” as of [date of
                  transfer], and that the Purchaser is not acquiring a Residual Certificate
                  (as defined in the Agreement) for the account of, or as agent (including
                  a
                  broker, nominee, or other middleman) for, any person or entity
                  from which
                  it has not received an affidavit substantially in the form of this
                  affidavit. For these purposes, a “disqualified organization” means the
                  United States, any state or political subdivision thereof, any
                  foreign
                  government, any international organization, any agency or instrumentality
                  of any of the foregoing (other than an instrumentality if all of
                  its
                  activities are subject to tax and a majority of its board of directors
                  is
                  not selected by such governmental entity), any cooperative organization
                  furnishing electric energy or providing telephone service to persons
                  in
                  rural areas as described in Code Section 1381(a)(2)(C), any “electing
                  large partnership” within the meaning of Section 775 of the Code, or any
                  organization (other than a farmers’ cooperative described in Code Section
                  521) that is exempt from federal income tax unless such organization
                  is
                  subject to the tax on unrelated business income imposed by Code
                  Section
                  511.

              

      

       

      
        	 	
                4.

              	
                That
                  the Purchaser either (x) is not, and on __________________ [date
                  of
                  transfer] will not be, 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 Code
                  (“Code”), (collectively, a “Plan”) or a person acting on behalf of any
                  such Plan or investing the assets of any such Plan to acquire a
                  Residual
                  Certificate; (y) if the Residual Certificate has been the subject
                  of an
                  ERISA-Qualifying Underwriting, is an insurance company that is
                  purchasing
                  the Residual Certificate with funds contained in an “insurance company
                  general account” as defined in Section V(e) of Prohibited Transaction
                  Class Exemption (“PTCE”) 95-60 and the purchase and holding of the
                  Residual Certificate are covered under Sections I and III of PTCE
                  95-60;
                  or (z) herewith delivers to the Trustee an opinion of counsel (a
“Benefit
                  Plan Opinion”) satisfactory to the Trustee, and upon which the Trustee,
                  the Master Servicer, any Servicer, the Depositor and any NIMS Insurer
                  shall be entitled to rely, to the effect that the purchase or holding
                  of
                  such Residual Certificate by the Investor will not result in any
                  non-exempt prohibited transactions under Title I of ERISA or Section
                  4975
                  of the Code and will not subject the Trustee, the Depositor, the
                  Master
                  Servicer, any Servicer or any NIMS Insurer to any obligation in
                  addition
                  to those undertaken by such entities in the Trust Agreement, which
                  opinion
                  of counsel shall not be an expense of the Trust Fund or any of
                  the above
                  parties.

              

      

       

      
        
          
          

        

        
          D-1-1

          
            

          

        

        
          
          

        

      

      
        	 	
                5.

              	
                That
                  the Purchaser hereby acknowledges that under the terms of the Trust
                  Agreement (the “Agreement”) by and among Structured Asset Securities
                  Corporation, as Depositor, U.S. Bank National Association, as Trustee,
                  Aurora Loan Services LLC, as Master Servicer, and Risk Management
                  Group,
                  LLC, as Credit Risk Manager, dated as of September 1, 2006, no
                  transfer of
                  the Residual Certificate shall be permitted to be made to any person
                  unless the Depositor and Trustee have received a certificate from
                  such
                  transferee containing the representations in paragraphs 3 and 4
                  hereof.

              

      

       

      
        	 	
                6.

              	
                That
                  the Purchaser does not hold REMIC residual securities as nominee
                  to
                  facilitate the clearance and settlement of such securities through
                  electronic book-entry changes in accounts of participating organizations
                  (such entity, a “Book-Entry
                  Nominee”).

              

      

       

      
        	 	
                7.

              	
                That
                  the Purchaser does not have the intention to impede the assessment
                  or
                  collection of any federal, state or local taxes legally required
                  to be
                  paid with respect to such Residual
                  Certificate.

              

      

       

      
        	 	
                8.

              	
                That
                  the Purchaser will not transfer a Residual Certificate to any person
                  or
                  entity (i) as to which the Purchaser has actual knowledge that
                  the
                  requirements set forth in paragraph 3, paragraph 6 or paragraph
                  10 hereof
                  are not satisfied or that the Purchaser has reason to believe does
                  not
                  satisfy the requirements set forth in paragraph 7 hereof, and (ii)
                  without
                  obtaining from the prospective Purchaser an affidavit substantially
                  in
                  this form and providing to the Trustee a written statement substantially
                  in the form of Exhibit D-2 to the
                  Agreement.

              

      

       

      
        	 	
                9.

              	
                That
                  the Purchaser understands that, as the holder of a Residual Certificate,
                  the Purchaser may incur tax liabilities in excess of any cash flows
                  generated by the interest and that it intends to pay taxes associated
                  with
                  holding such Residual Certificate as they become
                  due.

              

      

       

      
        
          
          

        

        
          D-1-2

          
            

          

        

        
          
          

        

      

      
        	 	
                10.

              	
                That
                  the Purchaser (i) is not a Non-U.S. Person or (ii) is a Non-U.S.
                  Person
                  that holds a Residual Certificate in connection with the conduct
                  of a
                  trade or business within the United States and has furnished the
                  transferor and the Trustee with an effective Internal Revenue Service
                  Form
                  W-8ECI (Certificate of Foreign Person’s Claim for Exemption From
                  Withholding on Income Effectively Connected With the Conduct of
                  a Trade or
                  Business in the United States) or successor form at the time and
                  in the
                  manner required by the Code or (iii) is a Non-U.S. Person that
                  has
                  delivered to both the transferor and the Trustee an opinion of
                  a
                  nationally recognized tax counsel to the effect that the transfer
                  of such
                  Residual Certificate to it is in accordance with the requirements
                  of the
                  Code and the regulations promulgated thereunder and that such transfer
                  of
                  a Residual Certificate will not be disregarded for federal income
                  tax
                  purposes. “Non-U.S. Person” means an individual, corporation, partnership
                  or other person other than (i) a citizen or resident of the United
                  States;
                  (ii) a corporation, partnership or other entity created or organized
                  in or
                  under the laws of the United States or any state thereof, including
                  for
                  this purpose, the District of Columbia; (iii) an estate that is
                  subject to
                  U.S. federal income tax regardless of the source of its income;
                  (iv) a
                  trust if a court within the United States is able to exercise primary
                  supervision over the administration of the trust and one or more
                  United
                  States trustees have authority to control all substantial decisions
                  of the
                  trust; and, (v) to the extent provided in Treasury regulations,
                  certain
                  trusts in existence on August 20, 1996 that are treated as United
                  States
                  persons prior to such date and elect to continue to be treated
                  as United
                  States persons.

              

      

       

      
        	 	
                11.

              	
                That
                  the Purchaser agrees to such amendments of the Trust Agreement
                  as may be
                  required to further effectuate the restrictions on transfer of
                  any
                  Residual Certificate to such a “disqualified organization,” an agent
                  thereof, a Book-Entry Nominee, or a person that does not satisfy
                  the
                  requirements of paragraph 7 and paragraph 10
                  hereof.

              

      

       

      
        	 	
                12.

              	
                That
                  the Purchaser consents to the designation of the Trustee as its
                  agent to
                  act as “tax matters person” of the Trust Fund pursuant to the Trust
                  Agreement.

              

      

       

      
        
          
          

        

        
          D-1-3

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Purchaser has caused this instrument to be executed
        on its
        behalf, pursuant to authority of its Board of Directors, by its [title of
        officer] this _____ day of __________, 20__.

       

      
        
          	 	 	 
	 	
                  __________________________________

                  [Name
                    of Purchaser]

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Name:

	 	Title:

        

         

      

       

      Personally
        appeared before me the above-named [name of officer] ________________, known
        or
        proved to me to be the same person who executed the foregoing instrument
        and to
        be the [title of officer] _________________ of the Purchaser, and acknowledged
        to me that he [she] executed the same as his [her] free act and deed and
        the
        free act and deed of the Purchaser.

       

      Subscribed
        and sworn before me this _____ day of __________, 20__.

       

      NOTARY
        PUBLIC

       

      ______________________________

       

      COUNTY
        OF_____________________

       

      STATE
        OF______________________

       

      My
        commission expires the _____ day of __________, 20__.

       

      
        
          
          

        

        
          D-1-4

          
            

          

        

        
          
          

        

      

      EXHIBIT
        D-2

       

      FORM
        OF
        RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEROR)

      
        
           

          
            	 	
                    
                      

                    

                    Date 

                  

          

        

         

      

      
        	
              	
                Re:

              	
                BNC
                  Mortgage Loan Trust 2006-1

              

      

      
        	
              	 	
                Mortgage Pass-Through
                  Certificates, Series 2006-1

              

      

       

      _______________________
        (the “Transferor”) has reviewed the attached affidavit of
        _____________________________ (the “Transferee”), and has no actual knowledge
        that such affidavit is not true and has no reason to believe that the
        information contained in paragraph 7 thereof is not true, and has no reason
        to
        believe that the Transferee has the intention to impede the assessment or
        collection of any federal, state or local taxes legally required to be paid
        with
        respect to a Residual Certificate. In addition, the Transferor has conducted
        a
        reasonable investigation at the time of the transfer and found that the
        Transferee had historically paid its debts as they came due and found no
        significant evidence to indicate that the Transferee will not continue to
        pay
        its debts as they become due.

       

      
        
          
            	 	 	 
	 	Very truly yours,
	 
 	 
 	 
 
	 	 	 
	 	
                    
Name:

	 	Title:

          

           

          
            
              
              

            

            
              D-2-1

              
                

              

            

            
              
              

            

          

        

      

      EXHIBIT
        E

       

      LIST
        OF
        SERVICING AGREEMENTS

      

      

      
        	 	
                1.

              	
                Securitization
                  Servicing Agreement dated as of November 1, 2006, by and among
                  LBH, as
                  seller, Aurora Loan Services LLC, as servicer, and the Master
                  Servicer.*

              

      

      

      
        	 	
                2.

              	
                Securitization
                  Subservicing Agreement dated as of November 1, 2006, by and among
                  LBH, as
                  seller, Wells Fargo Bank, N.A., as servicer, and the Master
                  Servicer.**

              

      

       

      
        	 	
                3.

              	
                Subservicing
                  Agreement dated as of September 1, 2006, by and among LBH, as seller,
                  Option One Mortgage Company, as servicer, and the Master
                  Servicer.

              

      

       

      

       

       

       

      ___________________________

      

      
        	*	
                To
                  be effective as of the applicable Servicing Transfer Date; the
                  form of
                  agreement is attached as Exhibit W to this
                  Agreement.

              

      

      
        	**	
                To
                  be effective as of the applicable Servicing Transfer Date; the
                  form of
                  agreement is attached as Exhibit X to this
                  Agreement.

              

      

      

      
        
          
          

        

        
          E-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        F

       

      FORM
        OF
        RULE 144A TRANSFER CERTIFICATE

      
         

        
          	
                	
                  Re:

                	
                  BNC
                    Mortgage Loan Trust 2006-1

                

        

        
          	
                	 	
                  Mortgage Pass-Through
                    Certificates, Series
                    2006-1

                

        

      

      

      Reference
        is hereby made to the Trust Agreement dated as of September 1, 2006 (the
“Trust
        Agreement”) by and among Structured Asset Securities Corporation, as Depositor,
        U.S. Bank National Association, as Trustee, Aurora Loan Services LLC, as
        Master
        Servicer, and Risk Management Group, LLC, as Credit Risk Manager. Capitalized
        terms used but not defined herein shall have the meanings given to them in
        the
        Trust Agreement.

       

      This
        letter relates to $__________ initial Certificate Balance of Class     
        Certificates
        which are held in the form of Definitive Certificates registered in the name
        of
                                
        (the
“Transferor”). The Transferor has requested a transfer of such Definitive
        Certificates for Definitive Certificates of such Class registered in the
        name of
        [insert name of transferee].

       

      In
        connection with such request, and in respect of such Certificates, the
        Transferor hereby certifies that such Certificates are being transferred
        in
        accordance with (i) the transfer restrictions set forth in the Trust Agreement
        and the Certificates and (ii) Rule 144A under the Securities Act to a purchaser
        that the Transferor reasonably believes is a “qualified institutional buyer”
within the meaning of Rule 144A purchasing for its own account or for the
        account of a “qualified institutional buyer,” which purchaser is aware that the
        sale to it is being made in reliance upon Rule 144A, in a transaction meeting
        the requirements of Rule 144A and in accordance with any applicable securities
        laws of any state of the United States or any other applicable
        jurisdiction.

       

      This
        certificate and the statements contained herein are made for your benefit
        and
        the benefit of the Placement Agent and the Depositor.

      
         

        
          
            	 	 	 
	 	
                    __________________________________

                    [Name
                      of Transferor]

                  
	 
 	 
 	 
 
	 	By:  	 
	 	
                    
Name:

	 	Title:

          

           

        

      

      Dated:
        ___________, ____

      

      
        
          
          

        

        
          F-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        G

       

      FORM
        OF
        PURCHASER’S LETTER FOR

      INSTITUTIONAL
        ACCREDITED INVESTORS

      
        
          
             

            
              	 	
                      
                        

                      

                      Date 

                    

            

          

        

      

       

       

      Dear
        Sirs:

       

      In
        connection with our proposed purchase of $______________ principal amount
        of BNC
        Mortgage Loan Trust 2006-1 Mortgage Pass-Through Certificates, Series 2006-1,
        Class B Certificates (the “Privately Offered Certificates”) of the Structured
        Asset Securities Corporation (the “Depositor”), we confirm that:

       

      
        	
                (1)

              	
                We
                  understand that the Privately Offered Certificates have not been,
                  and will
                  not be, registered under the Securities Act of 1933, as amended
                  (the
                  “Securities Act”), and may not be sold except as permitted in the
                  following sentence. We agree, on our own behalf and on behalf of
                  any
                  accounts for which we are acting as hereinafter stated, that if
                  we should
                  sell any Privately Offered Certificates within two years of the
                  later of
                  the date of original issuance of the Privately Offered Certificates
                  or the
                  last day on which such Privately Offered Certificates are owned
                  by the
                  Depositor or any affiliate of the Depositor (which includes the
                  Placement
                  Agent) we will do so only (A) to the Depositor, (B) to “qualified
                  institutional buyers” (within the meaning of Rule 144A under the
                  Securities Act) in accordance with Rule 144A under the Securities
                  Act
                  (“QIBs”), (C) pursuant to the exemption from registration provided by
                  Rule
                  144 under the Securities Act, or (D) to an institutional “accredited
                  investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) of
                  Regulation D under the Securities Act that is not a QIB (an “Institutional
                  Accredited Investor”) which, prior to such transfer, delivers to the
                  Trustee under the Trust Agreement dated as of September 1, 2006
                  by and
                  among the Depositor, Aurora Loan Services LLC, as Master Servicer,
                  U.S.
                  Bank National Association, as Trustee (the “Trustee”), and Risk Management
                  Group, LLC, as Credit Risk Manager, a signed letter in the form
                  of this
                  letter; and we further agree, in the capacities stated above, to
                  provide
                  to any person purchasing any of the Privately Offered Certificates
                  from us
                  a notice advising such purchaser that resales of the Privately
                  Offered
                  Certificates are restricted as stated
                  herein.

              

      

       

      
        	
                (2)

              	
                We
                  understand that, in connection with any proposed resale of any
                  Privately
                  Offered Certificates to an Institutional Accredited Investor, we
                  will be
                  required to furnish to the Trustee and the Depositor a certification
                  from
                  such transferee in the form hereof to confirm that the proposed
                  sale is
                  being made pursuant to an exemption from, or in a transaction not
                  subject
                  to, the registration requirements of the Securities Act. We further
                  understand that the Privately Offered Certificates purchased by
                  us will
                  bear a legend to the foregoing
                  effect.

              

      

       

      
        
          
          

        

        
          G-1

          
            

          

        

        
          
          

        

      

      
        	
                (3)

              	
                We
                  are acquiring the Privately Offered Certificates for investment
                  purposes
                  and not with a view to, or for offer or sale in connection with,
                  any
                  distribution in violation of the Securities Act. We have such knowledge
                  and experience in financial and business matters as to be capable
                  of
                  evaluating the merits and risks of our investment in the Privately
                  Offered
                  Certificates, and we and any account for which we are acting are
                  each able
                  to bear the economic risk of such
                  investment.

              

      

       

      
        	
                (4)

              	
                We
                  are an Institutional Accredited Investor and we are acquiring the
                  Privately Offered Certificates purchased by us for our own account
                  or for
                  one or more accounts (each of which is an Institutional Accredited
                  Investor) as to each of which we exercise sole investment
                  discretion.

              

      

       

      
        	(5)	
                We
                  have received such information as we deem necessary in order to
                  make our
                  investment decision.

              

      

       

      
        	(6)	
                If
                  we are acquiring ERISA-Restricted Certificates, we understand that
                  in
                  accordance with ERISA, the Code and the Exemption, no Plan and
                  no person
                  acting on behalf of such a Plan may acquire such Certificate except
                  in
                  accordance with Section 3.03(d) of the Trust
                  Agreement.

              

      

       

      Terms
        used in this letter which are not otherwise defined herein have the respective
        meanings assigned thereto in the Trust Agreement.

      
        
          
          

        

        
          G-2

          
            

          

        

        
          
          

        

      

      You
        and
        the Depositor are entitled to rely upon this letter and are irrevocably
        authorized to produce this letter or a copy hereof to any interested party
        in
        any administrative or legal proceeding or official inquiry with respect to
        the
        matters covered hereby.

      
        
          
            
              
                	 	 	 
	 	Very truly yours, 
	 	 
	 	
                        __________________________________

                        [Purchaser]

                      
	 
 	 
 	 
 
	 	By:  	 
	 	
                        
Name:

	 	Title:

              

               

              
                
                  
                  

                

                
                  G-3

                  
                    

                  

                

                
                  
                  
EXHIBIT
                  H

              

            

          

        

      

       

      FORM
        OF
        ERISA TRANSFER AFFIDAVIT

      
         

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

        

         

      

      The
        undersigned, being first duly sworn, deposes and says as follows:

       

      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. In
        the
        case of an ERISA-Restricted Certificate, the Investor either (x) is not,
        and on
        __________________ [date of transfer] will not be, 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”), (collectively, a “Plan”)
        or a person acting on behalf of any such Plan or investing the assets of
        any
        such Plan to acquire a Certificate; (y) if the Certificate has been the subject
        of an ERISA-Qualifying Underwriting, is an insurance company that is purchasing
        the Certificate with funds contained in an “insurance company general account”
as defined in Section V(e) of Prohibited Transaction Class Exemption (“PTCE”)
        95-60 and the purchase and holding of the Certificate are covered under Sections
        I and III of PTCE 95-60; or (z) herewith delivers to the Trustee an opinion
        of
        counsel (a “Benefit Plan Opinion”) satisfactory to the Trustee, and upon which
        the Trustee, the Master Servicer, any Servicer, the Depositor and any NIMS
        Insurer shall be entitled to rely, to the effect that the purchase or holding
        of
        such Certificate by the Investor will not result in any non-exempt prohibited
        transactions under Title I of ERISA or Section 4975 of the Code and will
        not
        subject the Trustee, the Depositor, the Master Servicer, any Servicer or
        any
        NIMS Insurer to any obligation in addition to those undertaken by such entities
        in the Trust Agreement, which opinion of counsel shall not be an expense
        of the
        Trust Fund or any of the above parties.

       

      3. In
        the
        case of an ERISA-Restricted Trust Certificate, prior to the termination of
        the
        Swap Agreement and the Interest Rate Cap Agreement, either (i) the Investor
        is
        neither a Plan nor a person acting on behalf of any such Plan or using the
        assets of any such Plan to effect such transfer or (ii) the acquisition and
        holding of the ERISA-Restricted Trust Certificate are eligible for exemptive
        relief under the statutory exemption for nonfiduciary service providers under
        Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code, PTCE 84-14,
        PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23 or some other applicable
        exemption.

       

      
        
          
          

        

        
          H-1

          
            

          

        

        
          
          

        

      

      4. The
        Investor hereby acknowledges that under the terms of the Trust Agreement
        (the
“Agreement”) by and among Structured Asset Securities Corporation, as Depositor,
        U.S. Bank National Association, as Trustee, Aurora Loan Services LLC, as
        Master
        Servicer, and Risk Management Group, LLC, as Credit Risk Manager, dated as
        of
        September 1, 2006, no transfer of the ERISA-Restricted Certificates or the
        ERISA-Restricted Trust Certificates shall be permitted to be made to any
        person
        unless the Trustee have received a certificate from such transferee in the
        form
        hereof.

       

      
        
          
          

        

        
          H-2

          
            

          

        

        
          
          

        

      

      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___.

              

      

       

      
        
          
          

        

        
          H-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        I

       

      MONTHLY
        REMITTANCE ADVICE

       

      

       

      
        
          
          

        

        
          I-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        J

       

      MONTHLY
        ELECTRONIC DATA TRANSMISSION

       

      

       

      
        
          
          

        

        
          J-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        K

       

      DESCRIPTION
        OF CUSTODIAL AGREEMENT

       

      
        	 	
                1.

              	
                Custodial
                  Agreement dated as of September 1, 2006 between Deutsche Bank National
                  Trust Company, as Custodian, and U.S. Bank National Association,
                  as
                  Trustee.

              

      

      

      

      
        
          
          

        

        
          K-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        L

       

      LIST
        OF
        CREDIT RISK MANAGEMENT AGREEMENTS

       

      
        	 	
                1)

              	
                Credit
                  Risk Management Agreement dated September 29, 2006 between the
                  Credit Risk
                  Manager and Option One Mortgage Corporation, as
                  servicer.

              

      

       

      
        	 	
                2)

              	
                Credit
                  Risk Management Agreement dated September 29, 2006 between the
                  Credit Risk
                  Manager and Aurora Loan Services, LLC, as
                  servicer.

              

      

       

      
        	 	
                3)

              	
                Credit
                  Risk Management Agreement dated September 29, 2006 between the
                  Credit Risk
                  Manager and Wells Fargo Bank, N.A., as
                  servicer.

              

      

       

      
        
          
          

        

        
          L-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        M-1

       

      FORM
        OF
        TRANSFER CERTIFICATE

      FOR
        TRANSFER FROM RESTRICTED GLOBAL SECURITY

      TO
        REGULATION S GLOBAL SECURITY

      (Transfers
        pursuant to § 3.03(h)(B)

                            
        of the
        Agreement)                            

      
        
           

           

          
            	
                  	
                    Re:

                  	
                    BNC
                      Mortgage Loan Trust 2006-1

                  

          

          
            	
                  	 	
                    Mortgage Pass-Through
                      Certificates, Series
                      2006-1

                  

          

        

      

       

      Reference
        is hereby made to the Trust Agreement (the “Agreement”) by and among Structured
        Asset Securities Corporation, as Depositor, Aurora Loan Services LLC, as
        Master
        Servicer, Risk Management Group, LLC, as Credit Risk Manager, and U.S. Bank
        National Association, as Trustee, dated as of September 1, 2006. Capitalized
        terms used but not defined herein shall have the meanings given to them in
        the
        Agreement.

       

      This
        letter relates to U.S. $                            
        aggregate
        principal amount of Securities which are held in the form of a Restricted
        Global
        Security with DTC in the name of [name of transferor]                                                       
        (the
“Transferor”) to effect the transfer of the Securities in exchange for an
        equivalent beneficial interest in a Regulation S Global Security.

       

      In
        connection with such request, the Transferor does hereby certify that such
        transfer has been effected in accordance with the transfer restrictions set
        forth in the Agreement and the Securities and in accordance with Rule 904
        of
        Regulation S, and that:

       

      
        	
              	a.	
                the
                  offer of the Securities was not made to a person in the United
                  States;
                  

              

      

       

      
        	
              	b.	
                at
                  the time the buy order was originated, the transferee was outside
                  the
                  United States or the Transferor and any person acting on its behalf
                  reasonably believed that the transferee was outside the United
                  States;

              

      

       

      
        	
              	c.	
                no
                  directed selling efforts have been made in contravention of the
                  requirements of Rule 903 or 904 of Regulation S, as
                  applicable;

              

      

       

      
        	
              	d.	
                the
                  transaction is not part of a plan or scheme to evade the registration
                  requirements of the United States Securities Act of 1933, as amended;
                  and

              

      

       

      
        	 	
                e.

              	
                the
                  transferee is not a U.S. person (as defined in Regulation
                  S).

              

      

       

      
        
          
          

        

        
          M-1-1

          
            

          

        

        
          
          

        

      

      You
        are
        entitled to rely upon this letter and are irrevocably authorized to produce
        this
        letter or a copy hereof to any interested party in any administrative or
        legal
        proceedings or official inquiry with respect to the matters covered hereby.
        Terms used in this certificate have the meanings set forth in Regulation
        S.

      
        
           

          
            
              	 	 	 
	 	
                      __________________________________

                      [Name
                        of Transferor]

                    
	 
 	 
 	 
 
	 	By:  	 
	 	
                      
Name:

	 	Title:

            

             

          

        

        Date:
          ___________, ____

      

      

      
        
          
          

        

        
          M-1-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        M-2

      

      FORM
        OF
        TRANSFER CERTIFICATE FOR TRANSFER 

      FROM
        REGULATION S GLOBAL SECURITY

      TO
        RESTRICTED GLOBAL SECURITY

      (Transfers
        pursuant to § 3.03(h)(C)

                                of
        the
        Agreement)                          

      
         

         

        
          	
                	
                  Re:

                	
                  BNC
                    Mortgage Loan Trust 2006-1

                

        

        
          	
                	 	
                  Mortgage Pass-Through
                    Certificates, Series
                    2006-1

                

        

      

       

      Reference
        is hereby made to the Trust Agreement (the “Agreement”) by and among Structured
        Asset Securities Corporation, as Depositor, Aurora Loan Services LLC, as
        Master
        Servicer, Risk Management Group, LLC, as Credit Risk Manager, and U.S. Bank
        National Association, as Trustee, dated as of September 1, 2006. Capitalized
        terms used but not defined herein shall have the meanings given to them in
        the
        Agreement.

       

      This
        letter relates to U.S. $                            
        aggregate
        principal amount of Securities which are held in the form of a Regulations
        S
        Global Security in the name of [name of transferor]                                                       
        (the
        “Transferor”) to effect the transfer of the Securities in exchange for an
        equivalent beneficial interest in a Restricted Global Security.

       

      In
        connection with such request, and in respect of such Securities, the Transferor
        does hereby certify that such Securities are being transferred in accordance
        with (i) the transfer restrictions set forth in the Agreement and the Securities
        and (ii) Rule 144A under the United States Securities Act of 1933, as amended,
        to a transferee that the Transferor reasonably believes is purchasing the
        Securities for its own account or an account with respect to which the
        transferee exercises sole investment discretion, the transferee and any such
        account is a qualified institutional buyer within the meaning of Rule 144A,
        in a
        transaction meeting the requirements of Rule 144A and in accordance with
        any
        applicable securities laws of any state of the United States or any other
        jurisdiction.

      
        
          
             

            
              
                	 	 	 
	 	
                        __________________________________

                        [Name
                          of Transferor]

                      
	 
 	 
 	 
 
	 	By:  	 
	 	
                        
Name:

	 	Title:

              

               

            

          

          Date:
            ___________, ____

        

      

       

      
        
          
          

        

        
          M-2-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        N

      

      INTEREST
        RATE CAP AGREEMENT

      

       

       

      
        
          
          

        

        
          N-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        O

      

      SWAP
        AGREEMENT

       

       

       

      
        
          
          

        

        
          O-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        P-1

      

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              
	
                Item
                  1: Distribution and Pool Performance Information

                 

              	 
	
                Information
                  included in the Distribution Date Statement

              	
                Servicer(1)

                Master
                  Servicer

              
	
                Any
                  information required by 1121 which is NOT included on the Distribution
                  Date Statement

              	
                Depositor

              
	
                Item
                  2: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceedings known to be contemplated by governmental
                  authorities:

              	 
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Trustee,
                  Master Servicer and Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Trust Agreement) or Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Custodian

              	
                Custodian(2)

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Master Servicer)

              	
                Servicer(1)

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Item
                  3: Sale of Securities and Use of Proceeds

                 

                Information
                  from Item 2(a) of Part II of Form 10-Q:

                 

                With
                  respect to any sale of securities by the sponsor, depositor or
                  issuing
                  entity, that are backed by the same asset pool or are otherwise
                  issued by
                  the issuing entity, whether or not registered, provide the sales
                  and use
                  of proceeds information in Item 701 of Regulation S-K. Pricing
                  information
                  can be omitted if securities were not registered.

              	
                Depositor

              
	
                Item
                  4: Defaults Upon Senior Securities

                 

                Information
                  from Item 3 of Part II of Form 10-Q:

                 

                Report
                  the occurrence of any Event of Default (after expiration of any
                  grace
                  period and provision of any required notice)

              	
                Trustee

              

      

       

      
        
          
          

        

        
          P-1-1

          
            

          

        

        
          
          

        

      

       

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE 

              
	
                Item
                  on Form 10-D 

              	Party
                Responsible 
	
                Item
                  5: Submission of Matters to a Vote of Security
                  Holders

                 

                Information
                  from Item 4 of Part II of Form 10-Q

              	
                Trustee

              
	
                Item
                  6: Significant Obligors of Pool Assets

                 

                Item
                  1112(b) - Significant
                  Obligor Financial Information*

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 
	
                Item
                  7: Significant Enhancement Provider Information

                 

                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information*

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 
	
                Item
                  8: Other Information

                 

                Disclose
                  any information required to be reported on Form 8-K during the
                  period
                  covered by the Form 10-D but not reported

              	
                Any
                  party responsible for the applicable Form 8-K Disclosure
                  item

              

      

       

      
        
          
          

        

        
          P-1-2

          
            

          

        

        
          
          

        

      

       

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE 

              
	Item on Form
                10-D 	Party
                Responsible 
	
                
                  Item
                    9: Exhibits

                   

                

                Monthly
                  Statement to Certificateholders

              	
                Trustee

              
	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements

              	
                Depositor

              

      

      _______________________

      
        	(1)	
                This
                  information to be provided pursuant to the applicable Servicing
                  Agreement.

              

      

      
        	(2)	
                This
                  information to be provided pursuant to the Custodial
                  Agreement.

              

      

       

      
        
          
          

        

        
          P-1-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        P-2

      

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              
	
                Item
                  1B: Unresolved Staff Comments

                 

              	
                Depositor

              
	
                Item
                  9B: Other Information

                Disclose
                  any information required to be reported on Form 8-K during the
                  fourth
                  quarter covered by the Form 10-K but not reported

              	
                Any
                  party responsible for disclosure items on Form 8-K

              
	
                Item
                  15: Exhibits, Financial Statement Schedules

              	
                Depositor

              
	
                Reg
                  AB Item 1112(b): Significant Obligors of Pool
                  Assets

              	 
	
                Significant
                  Obligor Financial Information*

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 
	
                Reg
                  AB Item 1114(b)(2): Credit Enhancement Provider Financial
                  Information

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 
	
                Reg
                  AB Item 1115(b): Derivative Counterparty Financial
                  Information

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 

      

       

      
        
          
          

        

        
          P-2-1

          
            

          

        

        
          
          

        

      

      
        	 ADDITIONAL
                FORM 10-K DISCLOSURE
	
                Item
                  on Form 10-K 

              	
                Party
                  Responsible 

              
	
                Reg
                  AB Item 1117: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceedings known to be contemplated by governmental
                  authorities:

              	 
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Trustee,
                  Master Servicer and Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Trust Agreement) or Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Custodian

              	
                Custodian(1)

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Master Servicer)

              	
                Servicer(2)

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Reg
                  AB Item 1119: Affiliations and Relationships

              	 
	
                Whether
                  (a) the Sponsor (Seller), Depositor or Issuing Entity is an affiliate
                  of
                  the following parties, and (b) to the extent known and material,
                  any of
                  the following parties are affiliated with one another:

              	
                Depositor
                  as to (a) 

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer(2)

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor

              

      

       

      
        
          
          

        

        
          P-2-2

          
            

          

        

        
          
          

        

      

      
        	
                 ADDITIONAL
                  FORM 10-K
                  DISCLOSURE

              
	
                 Item
                  on Form 10-K

              	
                Party
                  Responsible  

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor

              
	
                Whether
                  there are any “outside the ordinary course business arrangements” other
                  than would be obtained in an arm’s length transaction between (a) the
                  Sponsor (Seller), Depositor or Issuing Entity on the one hand,
                  and (b) any
                  of the following parties (or their affiliates) on the other hand,
                  that
                  exist currently or within the past two years and that are material
                  to a
                  Certificateholder’s understanding of the Certificates:

              	
                Depositor
                  as to (a) 

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer(2)

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor

              
	
                Whether
                  there are any specific relationships involving the transaction
                  or the pool
                  assets between (a) the Sponsor (Seller), Depositor or Issuing Entity
                  on
                  the one hand, and (b) any of the following parties (or their affiliates)
                  on the other hand, that exist currently or within the past two
                  years and
                  that are material:

              	
                Depositor
                  as to (a) 

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer(2)

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor

              

      

       

      
        	(1)	
                This
                  information to be provided pursuant to the Custodial
                  Agreement.

              

      

      
        	(2)	
                This
                  information to be provided pursuant to the applicable Servicing
                  Agreement.

              

      

      

      
        
          
          

        

        
          P-2-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        P-3

      

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              
	
                Item
                  1.01- Entry into a Material Definitive Agreement

                 

                Disclosure
                  is required regarding entry into or amendment of any definitive
                  agreement
                  that is material to the securitization, even if depositor is not
                  a party.
                  

                 

                Examples:
                  servicing agreement, custodial agreement.

                 

                Note:
                  disclosure not required as to definitive agreements that are fully
                  disclosed in the prospectus

              	
                All
                  parties (with respect to any agreement entered into by such
                  party)

              
	
                Item
                  1.02- Termination of a Material Definitive Agreement

                 

                Disclosure
                  is required regarding termination of any definitive agreement that
                  is
                  material to the securitization (other than expiration in accordance
                  with
                  its terms), even if depositor is not a party. 

                 

                Examples:
                  servicing agreement, custodial agreement.

              	
                All
                  parties (with respect to any agreement entered into by such
                  party)

              
	
                Item
                  1.03- Bankruptcy or Receivership

                 

                Disclosure
                  is required regarding the bankruptcy or receivership, with respect
                  to any
                  of the following: 

              	
                Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Depositor/Sponsor
                  (Seller)

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Affiliated Servicer

              	
                Servicer(1)

              
	
                ▪
                  Other Servicer servicing 20% or more of the pool assets at the
                  time of the
                  report

              	
                Servicer(1)

              
	
                ▪
                  Other material servicers

              	
                Servicer(1)

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Significant Obligor

              	
                Depositor

              
	
                ▪
                  Credit Enhancer (10% or more)

              	
                Depositor

              
	
                ▪
                  Derivative Counterparty

              	
                Depositor

              
	
                ▪
                  Custodian

              	
                Custodian(2)

              

      

       

      
        
          
          

        

        
          P-3-1

          
            

          

        

        
          
          

        

      

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION 

              
	
                Item
                  on Form 8-K 

              	
                Party
                  Responsible 

              
	
                Item
                  2.04- Triggering Events that Accelerate or Increase a Direct Financial
                  Obligation or an Obligation under an Off-Balance Sheet
                  Arrangement

                 

                Includes
                  an early amortization, performance trigger or other event, including
                  event
                  of default, that would materially alter the payment priority/distribution
                  of cash flows/amortization schedule.

                 

                Disclosure
                  will be made of events other than waterfall triggers which are
                  disclosed
                  in the monthly statements to the Certificateholders.

              	
                Depositor

                Master
                  Servicer
Trustee

              

      

      
        	
                Item
                  3.03- Material Modification to Rights of Security
                  Holders

                 

                Disclosure
                  is required of any material modification to documents defining
                  the rights
                  of Certificateholders, including the Trust Agreement.

              	
                Trustee
                  (only to the extent it is a party to any such documents)

                Depositor

              
	
                Item
                  5.03- Amendments of Articles of Incorporation or Bylaws; Change
                  of Fiscal
                  Year

                Disclosure
                  is required of any amendment “to the governing documents of the issuing
                  entity”.

              	
                Depositor

              
	
                Item
                  6.01- ABS Informational and Computational
                  Material

              	
                Depositor

              
	
                Item
                  6.02- Change of Servicer

                 

                Requires
                  disclosure of any removal, replacement, substitution or addition
                  of any
                  master servicer, affiliated servicer, other servicer servicing
                  10% or more
                  of pool assets at time of report, other material servicers or
                  trustee.

              	
                Master
                  Servicer/Depositor/

                Servicer(1)/Trustee
                  (as to itself)

              
	
                Reg
                  AB disclosure about any new servicer or master servicer is also
                  required.

              	
                Servicer(1)/Master
                  Servicer/Depositor

              
	
                Reg
                  AB disclosure about any new Trustee is also required.

              	
                New
                  Trustee

              
	
                Item
                  6.03- Change in Credit Enhancement or External
                  Support

                Covers
                  termination of any enhancement in manner other than by its terms,
                  the
                  addition of an enhancement, or a material change in the enhancement
                  provided. Applies to external credit enhancements as well as derivatives.
                  

              	
                Depositor

              
	
                Reg
                  AB disclosure about any new enhancement provider is also
                  required.

              	
                Depositor

              

      

       

      
        
          
          

        

        
          P-3-2

          
            

          

        

        
          
          

        

      

      
        	FORM
                8-K
                DISCLOSURE INFORMATION 
	
                Item
                  on Form 8-K 

              	
                Party
                  Responsible 

              
	
                Item
                  6.04- Failure to Make a Required Distribution

              	
                Trustee
                  (so long as the Trustee is the Paying Agent)

              
	
                Item
                  6.05- Securities Act Updating Disclosure

                 

                If
                  any material pool characteristic differs by 5% or more at the time
                  of
                  issuance of the securities from the description in the final prospectus,
                  provide updated Reg AB disclosure about the actual asset
                  pool.

              	
                Depositor

              
	
                If
                  there are any new servicers or originators required to be disclosed
                  under
                  Regulation AB as a result of the foregoing, provide the information
                  called
                  for in Items 1108 and 1110 respectively.

              	
                Depositor

              
	
                Item
                  7.01- Reg FD Disclosure

              	
                All
                  parties

              
	
                Item
                  8.01- Other Events

                 

                Any
                  event, with respect to which information is not otherwise called
                  for in
                  Form 8-K, that the registrant deems of importance to
                  Certificateholders.

              	
                Depositor

              
	
                Item
                  9.01- Financial Statements and Exhibits

              	
                Responsible
                  party for reporting/disclosing the financial statement or
                  exhibit

              

      

       

      
        	(1)	
                This
                  information to be provided pursuant to the applicable Servicing
                  Agreement.

              

      

      
        	(2)	
                This
                  information to be provided pursuant to the Custodial
                  Agreement.

              

      

      

      
        
          
          

        

        
          P-3-3

          
            

          

        

        
          
          

        

      

      EXHIBIT
        P-4

       

      ADDITIONAL
        DISCLOSURE NOTIFICATION

      

      U.S.
        Bank
        National Association

      One
        Federal Street

      3rd
        Floor

      Boston,
        Massachusetts 02110

      Attn:
        Structured Finance - BNC 2006-1 - SEC Report Processing

      

      RE:
        **Additional Form [10-D][10-K][8-K] Disclosure** Required

      

      

      Ladies
        and Gentlemen:

       

      In
        accordance with Section [ ] of the Trust Agreement, dated as of September
        1,
        2006, by and among Structured Asset Securities Corporation, as Depositor,
        Aurora
        Loan Services LLC, as Master Servicer, Risk Management Group, LLC, as Credit
        Risk Manager, and U.S. Bank National Association, as Trustee, the undersigned,
        as [ ], hereby notifies you that certain events have come to our attention
        that
        [will] [may] need to be disclosed on Form [10-D][10-K][8-K].

       

      Description
        of Additional Form [10-D][10-K][8-K] Disclosure:

       

      

       

      List
        of any Attachments hereto to be included in the Additional Form
        [10-D][10-K][8-K] Disclosure:

       

      

       

      Any
        inquiries related to this notification should be directed to [___________],
        phone number: [_____________]; email address: [_______________]. 

       

      
        	 	 	 
	 	
                [NAME
                  OF PARTY],

                as
                  [role]

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
	 	Title:

      

       

      
        
          
          

        

        
          P-4-1

          
            

          

        

        
          
          

        

      

      

      
        	cc:	
                Structured
                  Asset Securities Corporation

              

      

      
        	 	
                745
                  Seventh Avenue, 7th Floor

              

      

      
        	 	
                New
                  York, New York 10019

              

      

       

      
        
          
          

        

        
          P-4-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        Q-1

      

      FORM
        OF
        BACK-UP SARBANES-OXLEY CERTIFICATION

      

      [___________]

      [___________]

      [___________]

      

       

      
        	 	
                Re:

              	
                BNC
                  2006-1

              

      

       

      [_______],
        the [_______] of [_______] (the “Company”) hereby certifies to the Depositor,
        the Master Servicer and the Trustee, and each of their officers, directors
        and
        affiliates that:

       

      (1) I
        have
        reviewed [the servicer compliance statement of the Company provided in
        accordance with Item 1123 of Regulation AB (the “Compliance Statement”),] the
        report on assessment of the Company’s compliance with the Servicing Criteria set
        forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in
        accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act
        of
        1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Servicing Assessment”), the registered public accounting firm’s attestation
        report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
        Act and Section 1122(b) of Regulation AB (the “Attestation Report”), and all
        servicing reports, officer’s certificates and other information relating to the
        servicing of the Mortgage Loans by the Company during 200[ ] that were delivered
        by the Company to any of the Depositor, the Master Servicer and the Trustee
        pursuant to the Agreement (collectively, the “Company Servicing
        Information”);

       

      (2) Based
        on
        my knowledge, the Company Servicing Information, taken as a whole, does not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Company Servicing Information;

       

      (3) Based
        on
        my knowledge, all of the Company Servicing Information required to be provided
        by the Company under the Agreement has been provided to the Depositor, the
        Master Servicer and the Trustee;

       

      (4) I
        am
        responsible for reviewing the activities performed by [_______] as [_______]
        under the [_______] (the “Agreement”), and based on my knowledge [and the
        compliance review conducted in preparing the Compliance Statement] and except
        as
        disclosed in [the Compliance Statement,] the Servicing Assessment or the
        Attestation Report, the Company has fulfilled its obligations under the
        Agreement in all material respects; and

       

      
        
          
          

        

        
          Q-1-1

          
            

          

        

        
          
          

        

      

      (5) [The
        Compliance Statement required to be delivered by the Company pursuant to
        the
        Agreement, and] [The] [the] Servicing Assessment and Attestation Report required
        to be provided by the Company and [by any Subservicer or Subcontractor] pursuant
        to the Agreement, have been provided to the Depositor, the Master Servicer
        and
        the Trustee. Any material instances of noncompliance described in such reports
        have been disclosed to the Depositor, the Master Servicer and the Trustee.
        Any
        material instance of noncompliance with the Servicing Criteria has been
        disclosed in such reports.

       

      Capitalized
        terms used but not defined herein have the meanings ascribed to them in the
        Trust Agreement, dated as of September 1, 2006 (the “Trust Agreement”) by and
        among Structured Asset Securities Corporation, as Depositor, U.S. Bank National
        Association, as Trustee, Aurora Loan Services LLC, as Master Servicer, and
        Risk
        Management Group, LLC, as Credit Risk Manager. Capitalized terms used but
        not
        defined herein shall have the meanings given to them in the Trust
        Agreement.

       

      
        
          	 	 	 
	 	
                  [______________],

                  as
                    [_______]

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Name:
	 	Title:
	 	Date: 

        

         

        
          
            
            

          

          
            Q-1-2

            
              

            

          

          
            
            

          

        

      

      EXHIBIT
        Q-2

      

      FORM
        OF
        BACK-UP SARBANES-OXLEY CERTIFICATION

      TO
        BE
        PROVIDED BY THE TRUSTEE

      

       

      
        
          	Re:	
                  BNC
                    Mortgage Loan Trust 2006-1 (the “Trust”)
                    Mortgage Pass-Through Certificates, Series 2006-1, issued pursuant
                    to the
                    Trust Agreement, dated as of September 1, 2006, among Structured
                    Asset
                    Securities Corporation, as Depositor, Aurora Loan Services, LLC,
                    as Master
                    Servicer, Risk Management Group, LLC, as Credit Risk Manager,
                    and
                    U.S.
                    Bank National Association, as Trustee       

                

        

      

       

      The
        Trustee hereby certifies to the Depositor and the Master Servicer, and their
        respective officers, directors and affiliates, and with the knowledge and
        intent
        that they will rely upon this certification, that:

       

      (1) I
        have
        reviewed the annual report on Form 10-K for the fiscal year [____] (the “Annual
        Report”), and all reports on Form 10-D required to be filed in respect of period
        covered by the Annual Report (collectively with the Annual Report, the
“Reports”), of the Trust;

       

      (2) To
        my
        knowledge, (a)
        the
        Reports, taken as a whole, do not contain any untrue statement of a material
        fact or omit to state a material fact necessary to make the statements made,
        in
        light of the circumstances under which such statements were made, not misleading
        with respect to the period covered by the Annual Report,
        and (b)
        the Trustee’s assessment of compliance and related attestation report referred
        to below, taken as a whole, do not contain any untrue statement of a material
        fact or omit to state a material fact necessary to make the statements made,
        in
        light of the circumstances under which such statements were made, not misleading
        with respect to the period covered by such assessment of compliance and
        attestation report;

       

      (3) To
        my
        knowledge, the distribution information required to be provided by the Trustee
        under the Trust Agreement for inclusion in the Reports is included in the
        Reports;

       

      (4) I
        am
        responsible for reviewing the activities performed by the Trustee under the
        Trust Agreement, and based on my knowledge and the compliance review conducted
        in preparing the assessment of compliance of the Trustee required by the
        Trust
        Agreement, and except as disclosed in the Reports, the Trustee has fulfilled
        its
        obligations under the Trust Agreement in all material respects; and

       

      (5) The
        report on assessment of compliance with servicing criteria applicable to
        the
        Trustee for asset-backed securities of the Trustee and each Subcontractor
        utilized by the Trustee and related attestation report on assessment of
        compliance with servicing criteria applicable to it required to be included
        in
        the Annual Report in accordance with Item 1122 of Regulation AB and Exchange
        Act
        Rules 13a-18 and 15d-18 has been included as an exhibit to the Annual Report.
        Any material instances of non-compliance are described in such report and
        have
        been disclosed in the Annual Report.

       

      
        
          
          

        

        
          Q-2-1

          
            

          

        

        
          
          

        

      

      In
        giving
        the certifications above, the Trustee has reasonably relied on information
        provided to it by the following unaffiliated parties: [names of servicer(s),
        master servicer, subservicer(s), depositor, trustee, custodian(s)]

       

      

      Date:
        _______________________

      

      

      U.S.
        BANK
        NATIONAL ASSOCIATION, 

      solely
        in
        its capacity as Trustee

      

      

      _______________________________

      [Signature]

      [Title]

      

      
        
          
          

        

        
          Q-2-2

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R-1

      

      FORM
        OF
        FORECASTED LOSS REPORT

       

       

       

      
        
          
          

        

        
          R-1-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R-2

      

      FORM
        OF
        WATCHLIST REPORT

      

       

       

      
        
          
          

        

        
          R-2-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R-3

      

      FORM
        OF
        RED FLAG DASHBOARD REPORT

      

      

       

      
        
          
          

        

        
          R-3-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R-4

       

      FORM
        OF
        GAIN/LOSS REPORT

      

       

       

      
        
          
          

        

        
          R-4-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R-5

      

      FORM
        OF
        PREPAYMENT PREMIUMS REPORT

      

      

      

      
        
          
          

        

        
          R-5-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R-6

      

      FORM
        OF
        HIGHLIGHT SUMMARY REPORT

      

      
 

      
        
          
          

        

        
          R-6-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R-7

      

      FORM
        OF
        ANALYTICS REPORT

      

      

      

      
        
          
          

        

        
          R-7-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        S

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN REPORT ON ASSESSMENT OF COMPLIANCE

      

      To:
        

      

      [_______]

      

      Where
        there are multiple checks for criteria the attesting party will identify
        in
        their management assertion that they are attesting only to the portion of
        the
        distribution chain they are responsible for in the related transaction
        agreements. Capitalized terms used herein but not defined herein shall have
        the
        meanings assigned to them in the Trust Agreement dated as of September 1,
        2006
        (the “Agreement”), by and among Structured Asset Securities Corporation, as
        Depositor, U.S. Bank National Association, as Trustee, Aurora Loan Services
        LLC,
        as Master Servicer, and Risk Management Group, LLC, as Credit Risk Manager.
        

      

      
        	
                Reg
                  AB
Reference

              	
                Servicing
                  Criteria

              	
                Paying
                  Agent

                (including
                  the Trustee if acting as Paying Agent)

              	
                Credit
                  Risk
Manager

              	
                Trustee

              	
                Master
Servicer

              

      

      
        	 	
                General Servicing
                   Considerations

              
	
                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements.

              	 	 	 	
                X

              
	
                1122(d)(1)(ii)

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities.

              	 	 	 	 
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the pool assets are maintained. 

              	
                 

              	 	
                 

              	
                X

              
	
                1122(d)(1)(iv)

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements. 

              	 	 	 	
                X

              
	 	
                Cash Collection and Administration

              
	
                1122(d)(2)(i)

              	
                Payments
                  on pool assets are deposited into the appropriate custodial bank
                  accounts
                  and related bank clearing accounts no more than two business days
                  following receipt, or such other number of days specified in the
                  transaction agreements. 

              	
                X

              	 	 	
                X

              

      

       

      
        
          
          

        

        
          S-1

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    Reg
                      AB
Reference

                  	
                    Servicing
                      Criteria

                  	
                    Paying
                      Agent

                    (including
                      the Trustee if acting as Paying Agent)

                  	
                    Credit
                      Risk
Manager

                  	
                    Trustee

                  	
                    Master
Servicer

                  

          

        

      

      
        	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel. 

              	
                X

              	 	 	
                X

              
	
                1122(d)(2)(iii)

              	
                Advances
                  of funds or guarantees regarding collections, cash flows or distributions,
                  and any interest or other fees charged for such advances, are made,
                  reviewed and approved as specified in the transaction agreements.
                  

              	 	 	 	
                X

              
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of over collateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements. 

              	
                X

              	 	
                X

              	
                X

              
	
                1122(d)(2)(v)

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institution” with respect to
                  a foreign financial institution means a foreign financial institution
                  that
                  meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                  Act.
                  

              	 	 	 	
                X

              
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized access.
                  

              	
                X

              	 	 	
                X

              
	
                1122(d)(2)(vii)
                  

              	
                Reconciliations
                  are prepared on a monthly basis for all asset-backed securities
                  related
                  bank accounts, including custodial accounts and related bank clearing
                  accounts. These reconciliations are (A) mathematically accurate;
                  (B)
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction agreements;
                  (C)
                  reviewed and approved by someone other than the person who prepared
                  the
                  reconciliation; and (D) contain explanations for reconciling items.
                  These
                  reconciling items are resolved within 90 calendar days of their
                  original
                  identification, or such other number of days specified in the transaction
                  agreements. 

              	
                X

              	 	 	
                X

              
	 	
                Investor
                  Remittances and Reporting

              
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of pool assets serviced by the Servicer.
                  

              	 	
                X

              	
                X

              	
                X

              

      

       

      
        
          
          

        

        
          S-2

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  Reg
                    AB
Reference

                	
                  Servicing
                    Criteria

                	
                  Paying
                    Agent

                  (including
                    the Trustee if acting as Paying Agent)

                	
                  Credit
                    Risk
Manager

                	
                  Trustee

                	
                  Master
Servicer

                

        

      

      
        	
                1122(d)(3)(ii)

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements. 

              	 	 	
                X

              	
                X

              
	
                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  Servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements. 

              	
                X

              	 	 	
                 X

              
	
                1122(d)(3)(iv)

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank statements.
                  

              	
                X

              	 	 	
                X

              
	 	
                Pool
                  Asset Administration

              	 	 	 	 
	
                1122(d)(4)(i)
                  

              	
                Collateral
                  or security on pool assets is maintained as required by the transaction
                  agreements or related pool asset documents. 

              	
                 

              	 	 	 
	
                1122(d)(4)(ii)

              	
                Pool
                  assets and related documents are safeguarded as required by the
                  transaction agreements 

              	
                 

              	 	 	 
	
                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements. 

              	
                 

              	 	
                X

              	 
	
                1122(d)(4)(iv)

              	
                Payments
                  on pool assets, including any payoffs, made in accordance with
                  the related
                  pool asset documents are posted to the Servicer’s obligor records
                  maintained no more than two business days after receipt, or such
                  other
                  number of days specified in the transaction agreements, and allocated
                  to
                  principal, interest or other items (e.g., escrow) in accordance
                  with the
                  related pool asset documents. 

              	 	 	 	 

      

       

      
        
          
          

        

        
          S-3

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  Reg
                    AB
Reference

                	
                  Servicing
                    Criteria

                	
                  Paying
                    Agent

                  (including
                    the Trustee if acting as Paying Agent)

                	
                  Credit
                    Risk
Manager

                	
                  Trustee

                	
                  Master
Servicer

                

        

      

      
        	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the pool assets agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal balance.
                  

              	 	 	 	 
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor's pool assets
                  (e.g.,
                  loan modifications or re-agings) are made, reviewed and approved
                  by
                  authorized personnel in accordance with the transaction agreements
                  and
                  related pool asset documents. 

              	 	 	 	
                X

              
	
                1122(d)(4)(vii)

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements. 

              	 	 	 	
                X

              
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a pool
                  asset is delinquent in accordance with the transaction agreements.
                  Such
                  records are maintained on at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent pool assets including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or unemployment).
                  

              	 	 	 	 
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for pool assets with variable
                  rates
                  are computed based on the related pool asset documents. 

              	 	 	 	 
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s pool asset documents,
                  on at least an annual basis, or such other period specified in
                  the
                  transaction agreements; (B) interest on such funds is paid, or
                  credited,
                  to obligors in accordance with applicable pool asset documents
                  and state
                  laws; and (C) such funds are returned to the obligor within 30
                  calendar
                  days of full repayment of the related pool assets, or such other
                  number of
                  days specified in the transaction agreements. 

              	 	 	 	 

      

       

      
        
          
          

        

        
          S-4

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  Reg
                    AB
Reference

                	
                  Servicing
                    Criteria

                	
                  Paying
                    Agent

                  (including
                    the Trustee if acting as Paying Agent)

                	
                  Credit
                    Risk
Manager

                	
                  Trustee

                	
                  Master
Servicer

                

        

      

      
        	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements. 

              	 	 	 	
                 

              
	
                1122(d)(4)(xii)

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the Servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission. 

              	 	 	 	
                 

              
	
                1122(d)(4)(xiii)

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the servicer, or such other number of days
                  specified in the transaction agreements. 

              	 	 	 	
                 

              
	
                1122(d)(4)(xiv)
                  

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements. 

              	 	 	 	
                X

              
	
                1122(d)(4)(xv)

              	
                Any
                  external enhancement or other support, identified in Item 1114(a)(1)
                  through (3) or Item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements. 

              	 	 	
                X

              	 

      

      

      
        
          
          

        

        
          S-5

          
            

          

        

        
          
          

        

      

      EXHIBIT
        T

       

      [RESERVED]

       

       

      

      
        
          
          

        

        
          T-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        U

      

      FORM
        OF
        CERTIFICATION

      TO
        BE
        PROVIDED BY THE CREDIT RISK MANAGER

      

       

      FORM
        OF CERTIFICATION

       

      Re:
        BNC
        Mortgage Loan Trust 2006-1 Mortgage Pass-Through Certificates, Series 2006-1,
        issued pursuant to the Trust Agreement dated as of September 1, 2006, among
        Structured Asset Securities Corporation, as Depositor (the “Depositor”), Aurora
        Loan Services LLC, as Master Servicer, Risk Management Group, LLC, as Credit
        Risk Manager, and U.S. Bank National Association, as Trustee (the “Trustee”).

       

      RISK
        MANAGEMENT GROUP, LLC (the “Credit Risk Manager”) certifies to the Depositor,
        the Sponsor, the Master Servicer, the Trustee, and [10-K Signatory Entity]
        its
        officers, directors and affiliates, and with the knowledge and intent that
        they
        will rely upon this certification, that:

       

      
        	 	
                1.

              	
                Based
                  on the knowledge of the Credit Risk Manager, taken as a whole,
                  the
                  information in the reports provided during the calendar year immediately
                  preceding the date of this certificate (the “Relevant Year”) by the Credit
                  Risk Manager pursuant to the Master Consulting Agreement dated
                  as of
                  January 28, 2004 (the
                  “Master Consulting Agreement”), by and between the Credit Risk Manager and
                  Lehman Brothers Holdings Inc. and pursuant to Transaction Addendum
                  BNC
                  2006-1 (the “Transaction Addendum BNC 2006-1”), does not contain any
                  untrue statement of a material fact or omit to state a material
                  fact
                  necessary to make the statements made, in light of the circumstances
                  under
                  which such statements were made, not misleading as of the date
                  that each
                  of such reports was provided; and

              

      

       

      
        	 	
                2.

              	
                The
                  Credit Risk Manager has fulfilled its obligations under the Master
                  Consulting Agreement and Transaction Addendum BNC 2006-1 throughout
                  the
                  Relevant Year.

              

      

       

      

      RISK
        MANAGEMENT GROUP, LLC

       

       

      By:____________________________________

       

      Name:_________________________________

       

      Title:
        _________________________________

       

      
        
          
          

        

        
          U-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        V

       

      TRANSACTION
        PARTIES

      

      Sponsor
        and Seller: Lehman Brothers Holdings Inc.

      

      Depositor:
        Structured Asset Securities Corporation

      

      Trustee:
        U.S. Bank National Association

      

      Securities
        Administrator: Not Applicable

      

      Master
        Servicer: Aurora Loan Services LLC

      

      Credit
        Risk Manager: Risk Management Group, LLC

      

      Swap
        Counterparty: HSBC Bank USA, National Association

      

      Cap
        Counterparty: HSBC Bank USA, National Association

      

      Servicer(s):
        Aurora Loan Services LLC**,
        Option
        One Mortgage Corporation*,
        Wells
        Fargo Bank, N.A.** 

      

      Originator(s):
        BNC Mortgage, Inc., 

      

      Custodian:
        Deutsche Bank National Trust Company

      

      PMI
        Insurer(s): Mortgage Guaranty Insurance Corporation, PMI Mortgage Insurance
        Co.

      

      

      

      

      

      _______________

      
        	
                *

              	
                As
                  of the Closing Date

              

      

      
        	
                **

              	
                As
                  of the applicable Servicing Transfer
                  Date

              

      

      

      
        
          
          

        

        
          V-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        W

      

      Form
        of
        Securitization Servicing Agreement for Aurora Loan Services LLC 

      

       

       

      
        
          
          

        

        
          W-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        X

      

      Form
        of
        Securitization Subservicing Agreement for Wells Fargo Bank, N.A.

      

       

       

      
        
          
          

        

        
          X-1

          
            

          

        

        
          
          

        

      

      EXHIBIT
        Y

       

      Schedule
        of Fees for Services as Document Custodian

       

       

      
        	File Reinstatements/ Rejected File
                Reinstatements, per file:	 	
                $4.00

              
	 	 	 
	* Monthly
                Custody Safekeeping, per file, per month:	 	
                $0.20

              
	 	 	 
	Release Requests/ Rejected Release
                Request,
                per file:	 	
                $4.00

              
	 	 	 
	Trailing Document Review and Inter
                Filing,
                per document:	 	
                $2.00

              
	 	 	 
	Completion of Assignments, per
                assignment:	 	
                $2.00

              
	 	 	 
	(applicable if ever required post
                closing and
                not an upfront fee that is paid by the issuer)	 	 
	 	 	 
	Completion of Endorsements, per
                endorsement:	 	
                $2.00

              
	 	 	 
	(applicable if ever required post
                closing and
                not an upfront fee that is paid by the issuer)	 	 
	 	 	 
	Copies, per document:	 	
                $2.00

              
	 	 	 
	(to be billed to the requesting
                party)	 	 

      

           

      

       

      

       

      ________________

        
          * The
            monthly custody fee will be calculated by multiplying the file count
            at the
            beginning of the month plus any files added during the month times the
            monthly
            custody fee.

           

          
            
              
              

            

            
              Y-1

              
                

              

            

            
              
              

            

          

        

      

      SCHEDULE
        A

       

      MORTGAGE
        LOAN SCHEDULE

      [To
        be
        retained in a separate closing binder entitled “BNC 2006-1 Mortgage Loan
        Schedules” at McKee Nelson LLP] 

      
 

       

      
        
          
          

        

        
          S-A-1

          
            

          

        

        
          
          

        

      

      SCHEDULE
        B

       

      FIRST
        PAYMENT DEFAULT MORTGAGE LOANS

       

       

       

      
        
          
          

        

        S-B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]