Document:

Indenture

 EXHIBIT 4.1 
  

EXECUTION COPY 
  

  
 GREENPOINT HOME EQUITY LOAN TRUST 2004-1 
  
 Class A Variable Rate Asset Backed Notes 
  
 INDENTURE 
  
 Dated as of January 1, 2004 
  
 JPMORGAN CHASE BANK 
 Indenture Trustee

  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	 ARTICLE I Definitions and Incorporation by Reference
	  	2
			
	     SECTION 1.1.
	 	Definitions	  	2
	     SECTION 1.2.
	 	Incorporation by Reference of the Trust Indenture Act	  	2
	     SECTION 1.3.
	 	Rules of Construction	  	3
	     SECTION 1.4.
	 	Action by or Consent of Noteholders and Residual Certificateholders	  	3
	     SECTION 1.5.
	 	Conflict with TIA	  	3
		
	 ARTICLE II The Notes
	  	4
			
	     SECTION 2.1.
	 	Form	  	4
	     SECTION 2.2.
	 	Execution, Authentication and Delivery	  	4
	     SECTION 2.3.
	 	Registration; Registration of Transfer and Exchange	  	4
	     SECTION 2.4.
	 	Mutilated, Destroyed, Lost or Stolen Notes	  	6
	     SECTION 2.5.
	 	Persons Deemed Owners	  	7
	     SECTION 2.6.
	 	Payment of Principal and Interest; Defaulted Interest.	  	7
	     SECTION 2.7.
	 	Cancellation	  	8
	     SECTION 2.8.
	 	Release of Collateral	  	8
	     SECTION 2.9.
	 	Book-Entry Notes	  	8
	     SECTION 2.10.
	 	Notices to Clearing Agency	  	9
	     SECTION 2.11.
	 	Definitive Notes	  	9
		
	 ARTICLE III Covenants; Representations and Warranties of the Issuer
	  	10
			
	     SECTION 3.1.
	 	Payment of Principal and Interest	  	10
	     SECTION 3.2.
	 	Maintenance of Office or Agency	  	10
	     SECTION 3.3.
	 	Money for Payments to be Held in Trust	  	10
	     SECTION 3.4.
	 	Existence	  	11
	     SECTION 3.5.
	 	Protection of Trust Property	  	12
	     SECTION 3.6.
	 	Opinions as to Trust Property.	  	12
	     SECTION 3.7.
	 	Performance of Obligations; Servicing of Mortgage Loans.	  	13
	     SECTION 3.8.
	 	Negative Covenants	  	14
	     SECTION 3.9.
	 	Annual Statement as to Compliance	  	14
	     SECTION 3.10.
	 	Issuer May Not Consolidate or Transfer Assets.	  	15
	     SECTION 3.11.
	 	No Other Business	  	15
	     SECTION 3.12.
	 	No Borrowing	  	15
	     SECTION 3.13.
	 	Servicer’s Obligations	  	15
	     SECTION 3.14.
	 	Guarantees, Loans, Advances and Other Liabilities	  	15
	     SECTION 3.15.
	 	Capital Expenditures	  	16
	     SECTION 3.16.
	 	Compliance with Laws	  	16
	     SECTION 3.17.
	 	Restricted Payments	  	16
	     SECTION 3.18.
	 	Notice of Rapid Amortization Events and Events of Servicing Termination	  	16
	     SECTION 3.19.
	 	Further Instruments and Acts	  	16

  

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	     SECTION 3.20.
	 	Amendments of Sale and Servicing Agreement and Trust Agreement	  	16
	     SECTION 3.21.
	 	Income Tax Characterization	  	16
	     SECTION 3.22.
	 	Representations and Warranties of the Issuer Regarding the Lien of the Indenture Trustee	  	17
		
	 ARTICLE IV Satisfaction and Discharge
	  	17
			
	     SECTION 4.1.
	 	Satisfaction and Discharge of Indenture	  	17
	     SECTION 4.2.
	 	Application of Trust Money	  	18
	     SECTION 4.3.
	 	Repayment of Monies Held by Note Paying Agent	  	18
		
	 ARTICLE V Remedies
	  	19
			
	     SECTION 5.1.
	 	Remedies	  	19
	     SECTION 5.2.
	 	Limitation of Suits	  	19
	     SECTION 5.3.
	 	Unconditional Rights of Noteholders To Receive Principal and Interest	  	20
	     SECTION 5.4.
	 	Restoration of Rights and Remedies	  	20
	     SECTION 5.5.
	 	Rights and Remedies Cumulative	  	20
	     SECTION 5.6.
	 	Delay or Omission Not a Waiver	  	20
	     SECTION 5.7.
	 	Control by Insurer and Noteholders	  	20
	     SECTION 5.8.
	 	Undertaking for Costs	  	21
	     SECTION 5.9.
	 	Waiver of Stay or Extension Laws	  	21
	     SECTION 5.10.
	 	Action on Notes	  	21
	     SECTION 5.11.
	 	Performance and Enforcement of Certain Obligations.	  	21
	     SECTION 5.12.
	 	Subrogation	  	22
	     SECTION 5.13.
	 	Preference Claims.	  	22
	     SECTION 5.14.
	 	Noteholder Rights	  	23
	     SECTION 5.15.
	 	Insurer’s Rights Regarding Actions, Proceedings or Investigations	  	23
		
	 ARTICLE VI The Indenture Trustee
	  	24
			
	     SECTION 6.1.
	 	Duties of Indenture Trustee.	  	24
	     SECTION 6.2.
	 	Rights of Indenture Trustee.	  	26
	     SECTION 6.3.
	 	Individual Rights of Indenture Trustee	  	28
	     SECTION 6.4.
	 	 Indenture Trustee’s Disclaimer
	  	28
	     SECTION 6.5.
	 	Notice of Rapid Amortization Events and Events of Servicing Termination	  	28
	     SECTION 6.6.
	 	Reports by Indenture Trustee to Holders	  	28
	     SECTION 6.7.
	 	Compensation and Indemnity.	  	28
	     SECTION 6.8.
	 	Replacement of Indenture Trustee	  	29
	     SECTION 6.9.
	 	Successor Indenture Trustee by Merger	  	31
	     SECTION 6.10.
	 	Appointment of Co-Indenture Trustee or Separate Indenture Trustee.	  	31
	     SECTION 6.11.
	 	Eligibility; Disqualification	  	32
	     SECTION 6.12.
	 	Preferential Collection of Claims Against Issuer	  	33
	     SECTION 6.13.
	 	Appointment and Powers	  	33

  

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	     SECTION 6.14.
	 	Performance of Duties	  	33
	     SECTION 6.15.
	 	Limitation on Liability	  	33
	     SECTION 6.16.
	 	Reliance Upon Documents	  	34
	     SECTION 6.17.
	 	Representations and Warranties of the Indenture Trustee	  	34
	     SECTION 6.18.
	 	Waiver of Setoffs	  	34
	     SECTION 6.19.
	 	Control by the Controlling Party	  	34
	     SECTION 6.20.
	 	Indenture Trustee May Enforce Claims Without Possession of Notes	  	34
	     SECTION 6.21.
	 	Suits for Enforcement	  	35
	     SECTION 6.22.
	 	Mortgagor Claims	  	35
		
	 ARTICLE VII Noteholders’ Lists and Reports
	  	36
			
	     SECTION 7.1.
	 	Issuer To Furnish To Indenture Trustee Names and Addresses of Noteholders	  	36
	     SECTION 7.2.
	 	Preservation of Information; Communications to Noteholders.	  	36
	     SECTION 7.3.
	 	Reports by Issuer.	  	36
	     SECTION 7.4.
	 	Reports by Indenture Trustee	  	37
		
	 ARTICLE VIII Payments and Statements to Noteholders and Residual Noteholders; Accounts, Disbursements and Releases
	  	37
			
	     SECTION 8.1.
	 	Collection of Money	  	37
	     SECTION 8.2.
	 	Release of Trust Property.	  	37
	     SECTION 8.3.
	 	Establishment of Accounts	  	38
	     SECTION 8.4.
	 	The Policy.	  	38
	     SECTION 8.5.
	 	[Reserved]	  	39
	     SECTION 8.6.
	 	[Reserved]	  	39
	     SECTION 8.7.
	 	Priority of Distributions.	  	39
	     SECTION 8.8.
	 	Statements to Noteholders	  	41
	     SECTION 8.9.
	 	Indenture Trustee Annual Certification	  	43
	     SECTION 8.10.
	 	Rights of Noteholders and Residual Certificateholders	  	44
	     SECTION 8.11.
	 	Opinion of Counsel	  	44
		
	 ARTICLE IX Supplemental Indentures
	  	44
			
	     SECTION 9.1.
	 	Supplemental Indentures Without Consent of Noteholders.	  	44
	     SECTION 9.2.
	 	Supplemental Indentures with Consent of Noteholders	  	45
	     SECTION 9.3.
	 	Execution of Supplemental Indentures	  	47
	     SECTION 9.4.
	 	Effect of Supplemental Indenture	  	47
	     SECTION 9.5.
	 	Reference in Notes to Conformity With Trust Indenture Act	  	47
	     SECTION 9.6.
	 	Reference in Notes to Supplemental Indentures	  	47
		
	 ARTICLE X Redemption of Notes
	  	47
			
	     SECTION 10.1.
	 	Redemption	  	47
	     SECTION 10.2.
	 	Surrender of Notes.	  	48
	     SECTION 10.3.
	 	Form of Redemption Notice	  	49
	     SECTION 10.4.
	 	Notes Payable on Redemption Date	  	49

  

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	 ARTICLE XI Miscellaneous
	  	50
			
	     SECTION 11.1.
	  	Compliance Certificates and Opinions, etc.	  	50
	     SECTION 11.2.
	  	Form of Documents Delivered to Indenture Trustee	  	50
	     SECTION 11.3.
	  	Acts of Noteholders.	  	51
	     SECTION 11.4.
	  	Notices, etc., to Indenture Trustee, Issuer, Insurer and Rating Agencies	  	52
	     SECTION 11.5.
	  	Notices to Noteholders; Waiver	  	52
	     SECTION 11.6.
	  	Alternate Payment and Notice Provisions	  	53
	     SECTION 11.7.
	  	Conflict with Trust Indenture Act	  	53
	     SECTION 11.8.
	  	Effect of Headings and Table of Contents	  	53
	     SECTION 11.9.
	  	Successors and Assigns	  	54
	     SECTION 11.10.
	  	Separability	  	54
	     SECTION 11.11.
	  	Benefits of Indenture	  	54
	     SECTION 11.12.
	  	Legal Holidays	  	54
	     SECTION 11.13.
	  	GOVERNING LAW	  	54
	     SECTION 11.14.
	  	Counterparts	  	54
	     SECTION 11.15.
	  	Recording of Indenture	  	54
	     SECTION 11.16.
	  	Trust Obligation	  	55
	     SECTION 11.17.
	  	No Petition	  	55
	     SECTION 11.18.
	  	Inspection	  	55
	     SECTION 11.19.
	  	Limitation of Liability	  	55
		
	 ARTICLE XII Rapid Amortization Events
	  	56
			
	     SECTION 12.1.
	  	Rapid Amortization Events	  	56

  

							
				
	 ANNEX A
	 	-	 	Defined Terms	  	 
	 EXHIBIT A
	 	-	 	Form of Class A Note	  	 
	 EXHIBIT B
	 	-	 	Form of Opinion of Counsel	  	 
	 EXHIBIT C
	 	-	 	Form of Certification to be Provided by the Indenture Trustee	  	 

  

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 INDENTURE, dated as of January 1, 2004 (the “Indenture”), between GREENPOINT HOME EQUITY
LOAN TRUST 2004-1, a Delaware statutory trust (the “Issuer”), and JPMORGAN CHASE BANK, a New York banking corporation, as trustee (the “Indenture Trustee”). 
  
 Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Issuer’s Class A Variable Rate Asset Backed Notes (the “Notes”). 
  
 As security for the payment and performance by the Issuer of its obligations under this Indenture and the Notes, the Issuer has agreed to assign the
Collateral (as defined below) to the Indenture Trustee on behalf of the Noteholders and the Insurer. 
  
 Ambac Assurance Corporation (the “Insurer”) has issued and delivered a financial guaranty insurance policy for the Notes, dated the
Closing Date (the “Policy”), pursuant to which the Insurer guarantees the Insured Amounts and Preference Amount (as defined in the Policy). 
  
 As an inducement to the Insurer to issue and deliver the Policy, the Issuer and the Insurer have executed and delivered the Insurance and Indemnity
Agreement, dated as of January 29, 2004 (as amended from time to time, the “Insurance Agreement”), among the Insurer, the Issuer, GreenPoint Mortgage Funding, Inc., GreenPoint Mortgage Securities LLC and the Indenture Trustee.

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

 GRANTING CLAUSE 
  

The Issuer hereby Grants to the Indenture Trustee at the Closing Date, for the benefit of the Issuer Secured Parties all of the Issuer’s right, title and interest
in and to: (i) a pool (the “Pool”) of certain adjustable rate home equity revolving credit line loans (the “Mortgage Loans”) (including any Additional Balances related thereto) in each case as set forth in Exhibit A
to the Sale and Servicing Agreement; (ii) the collections in respect of the Mortgage Loans after the Cut-Off Date; (iii) property that secured a Mortgage Loan that has been acquired by foreclosure or deed in lieu of foreclosure; (iv) rights of the
Sponsor under hazard insurance policies covering the Mortgaged Properties; (v) amounts on deposit from time to time in the Collection Account and the Distribution Account; (vi) all rights under the Assignment Agreement assigned to the Issuer
(including all representations and warranties of the Originator contained therein) and all rights of the Issuer under the Sale and Servicing Agreement; (vii) the Policy (solely for the benefit of the Noteholders); and (viii) any and all proceeds of
the foregoing (the items set forth in (i) through (vii) above, the “Collateral”). 
  
 The foregoing Grant is made in trust to the Indenture Trustee, for the benefit first, of the Holders of the Notes, and second, for the
benefit of the Insurer. The Indenture Trustee hereby acknowledges such Grant, accepts the trusts under this Indenture in accordance with the provisions of this Indenture and agrees to perform its duties required in this Indenture to the best of its
ability to the end that the interests of such parties, recognizing the priorities of their respective interests may be adequately and effectively protected. 
  
 The Indenture Trustee hereby agrees that it will hold the Policy in trust and that it will hold any proceeds of any claim made upon the Policy solely for
the use and the benefit of the Noteholders in accordance with the terms hereof and the terms of the Policy. 
  
 Neither the Indenture Trustee nor the Issuer assumes or shall assume any obligation under any Credit Line Agreement that provides for the funding of
future Draws to the Mortgagor thereunder, and neither the Indenture Trustee nor the Issuer shall be obligated or permitted to fund any such future Draws. 
  
 ARTICLE I 
  
 Definitions and Incorporation by Reference 
  
 SECTION 1.1. Definitions. Except as otherwise specified herein, the following terms have the respective meanings set forth in Annex A to this
Indenture. 
  
 SECTION 1.2. Incorporation by Reference of the
Trust Indenture Act. Whenever this Indenture refers to a provision of the Trust Indenture Act (“TIA”), the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have
the following meanings: 
  
 “Commission” means the
Securities and Exchange Commission. 
  
 “indenture
securities” means the Notes. 
  

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 “indenture security holder” means a Holder of a Note. 
  
 “indenture to be qualified” means this Indenture. 
  
 “Indenture Trustee” or “institutional trustee” means the
Indenture Trustee. 
  
 “obligor” on the indenture
securities means the Issuer. 
  
 All other TIA terms used in this
Indenture that are defined by the TIA, or defined by Commission rule have the meaning assigned to them by such definitions. 
  
 SECTION 1.3. Rules of Construction. Unless the context otherwise requires: 
  
 (i) a term has the meaning assigned to it; 
  
 (ii) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally
accepted accounting principles as in effect from time to time; 
  
 (iii) “or” is not exclusive; 
  
 (iv) “including” means including without limitation; and 
  
 (v) words in the singular include the plural and words in the plural include the singular. 
  
 SECTION 1.4. Action by or Consent of Noteholders and Residual
Certificateholders. Whenever any provision of this Indenture refers to action to be taken, or consented to, by Noteholders or Residual Certificateholders, such provision shall be deemed to refer to the Noteholder or Residual Certificateholder,
as the case may be, of record as of the Record Date immediately preceding the date on which such action is to be taken, or consent given, by Noteholders or Residual Certificateholders. Solely for the purposes of any action to be taken, or consented
to, by Noteholders or Residual Certificateholders, any Note or Residual Certificate registered in the name of GreenPoint Mortgage Funding, Inc. or any Affiliate thereof shall be deemed not to be outstanding; provided, however, that, solely
for the purpose of determining whether the Indenture Trustee or the Owner Trustee is entitled to rely upon any such action or consent, only Notes or Residual Certificates which the Owner Trustee or the Indenture Trustee, respectively, knows to be so
owned shall be so disregarded. 
  
 SECTION 1.5. Conflict with
TIA. If any provision hereof limits, qualifies or conflicts with a provision of the TIA that is required under the TIA to be part of and govern this Indenture, the latter provision shall control and all provisions required by the TIA are hereby
incorporated by reference. If any provision of this Indenture modifies or excludes any provision of the TIA that may be so modified or excluded, the latter provisions shall be deemed to apply to this Indenture as so modified or to be excluded, as
the case may be. 
  

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 ARTICLE II 
  
 The Notes 
  
 SECTION 2.1. Form. The Class A Notes, together with the Indenture Trustee’s certificate of authentication, shall be in substantially the form
set forth in Exhibit A hereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the officers executing such Notes, as evidenced by their execution of the Notes. Any portion of the text of any Notes may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note. 
  
 Each
Note shall be dated the date of its authentication. The terms of the Notes set forth in Exhibit A are part of the terms of this Indenture. 
  
 SECTION 2.2. Execution, Authentication and Delivery. The Notes shall be executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be original or facsimile. 
  
 Notes bearing the original or facsimile signature of individuals who were at any time Authorized Officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them have ceased to hold
such offices prior to the authentication and delivery of such Notes or did not hold such offices at the date of such Notes. 
  
 The Indenture Trustee shall authenticate and deliver Class A Notes for original issue in the aggregate principal amount of $202,045,000. The Class A Notes
outstanding at any time may not exceed such amounts. 
  
 Each Note
shall be dated the date of its authentication. The Notes shall be issuable as registered Notes in the minimum denomination of $1,000 and in integral multiples of $1,000 in excess thereof. 
  
 No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there
appears attached to such Note a certificate of authentication substantially in the form provided for herein executed by the Indenture Trustee by the manual signature of one of its authorized signatories, and such certificate attached to any Notes
shall be conclusive evidence, and the only evidence, that such Notes have been duly authenticated and delivered hereunder. Subject to Section 2.11, the Notes shall be Book Entry Notes. 
  
 SECTION 2.3. Registration; Registration of Transfer and Exchange. The Issuer shall cause to be kept a register (the
“Note Register”) in which, subject to such reasonable regulations as it may prescribe, the Issuer shall provide for the registration of Notes and the registration of transfers of Notes. The Indenture Trustee shall be “Note
Registrar” for the purpose of registering Notes and transfers of Notes as herein provided. Upon any resignation of any Note Registrar, the Issuer shall promptly appoint a successor or, if it elects not to make such an appointment, assume the
duties of Note Registrar. 
  

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 If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the Issuer
will give the Indenture Trustee and the Insurer prompt written notice of the appointment of such Note Registrar and of the location, and any change in the location, of the Note Register, and the Indenture Trustee and the Insurer shall have the right
to inspect the Note Register at all reasonable times and to obtain copies thereof. The Indenture Trustee shall have the right to rely upon a certificate executed on behalf of the Note Registrar by an Authorized Officer thereof as to the names and
addresses of the Holders of the Notes and the principal amounts and number of such Notes. 
  
 Upon surrender for registration or transfer of any Note at the office or agency of the Issuer to be maintained as provided in Section 3.2, and if the requirements of Section 8-401(1) of the UCC are met, the Issuer
shall execute or cause the Indenture Trustee to authenticate one or more new Notes, in any authorized denominations, of the same class and a like aggregate principal amount. A Noteholder may also obtain from the Indenture Trustee, in the name of the
designated transferee or transferees one or more new Notes, in any authorized denominations, of the same class and a like aggregate principal amount. Such requirements shall not be deemed to create a duty in the Indenture Trustee to monitor the
compliance by the Issuer with Section 8-401 of the UCC. 
  
 At the
option of the Holder, Notes may be exchanged for other Notes in any authorized denominations, of the same class and a like aggregate principal amount, upon surrender of the Notes to be exchanged at such office or agency. Whenever any Notes are so
surrendered for exchange, and if the requirements of Section 8-401(1) of the UCC are met, the Issuer shall execute and upon its request the Indenture Trustee shall authenticate the Notes which the Noteholder making the exchange is entitled to
receive. Such requirements shall not be deemed to create a duty in the Indenture Trustee to monitor the compliance by the Issuer with Section 8-401 of the UCC. 
  

All Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Issuer, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange. 
  
 Every Note presented or surrendered for registration of transfer or exchange shall be (i) duly endorsed by, or be accompanied by a written instrument of
transfer in the form attached to Exhibit A, duly executed by the Holder thereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note Registrar all in accordance with the Exchange Act, and (ii) accompanied by such other documents as the Note Registrar may require. 
  
 No service charge shall be made to a Holder for any registration of transfer or exchange of Notes, but the Note Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes, other than exchanges pursuant to Section 2.4 or 9.6 not involving any transfer. 
  
 The Note Registrar shall not register the transfer of a Definitive Note
unless the Indenture Trustee has received a representation letter (in form and substance satisfactory to the 
  

 5 

 Indenture Trustee) from the prospective transferee to the effect that either (a) such transferee is not acquiring such
Note for, or on behalf of, such an employee benefit plan (as defined in Section 3(3) of ERISA) whether or not it is subject to the provisions of Title I of ERISA or a plan (as defined in Section 4975(e)(1) of the Code) that is subject to Section
4975 of the Code or an entity which is deemed to hold the assets of the foregoing (each, a “Benefit Plan”) and is not acting on behalf of or investing the assets of a Benefit Plan or (b) the acquisition and holding of such Note by
the transferee will be covered by a U.S. Department of Labor prohibited transaction class exemption. Each Note Owner, by acceptance of a beneficial interest in a Book-Entry Note, will be deemed to make one of the foregoing representations.

  
 SECTION 2.4. Mutilated, Destroyed, Lost or Stolen
Notes. If (i) any mutilated Note is surrendered to the Note Registrar, or the Note Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the Indenture Trustee and the
Insurer such security or indemnity as may be required by it to hold the Issuer, the Indenture Trustee and the Insurer harmless, then, in the absence of notice to the Issuer, the Note Registrar or the Indenture Trustee that such Note has been
acquired by a bona fide purchaser, and provided that the requirements of Section 8-405 of the UCC are met, the Issuer shall execute and upon its request the Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note (such requirement shall not be deemed to create a duty in the Indenture Trustee to monitor the compliance by the Issuer with Section 8-405); provided, however, that if any such
destroyed, lost or stolen Note, but not a mutilated Note, shall have become or within seven days shall be due and payable, or shall have been called for redemption, the Issuer may, instead of issuing a replacement Note, direct the Indenture Trustee,
in writing, to pay such destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without surrender thereof. If, after the delivery of such replacement Note or payment of a destroyed, lost or stolen Note pursuant to the
proviso to the preceding sentence, a bona fide purchaser of the original Note in lieu of which such replacement Note was issued presents for payment such original Note, the Issuer, the Indenture Trustee and the Insurer shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered or any Person taking such replacement Note from such Person to whom such replacement Note was delivered or any assignee of such Person, except a bona fide purchaser,
and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the Issuer, the Indenture Trustee or the Insurer in connection therewith. 
  
 Upon the issuance of any replacement Note under this Section, the Issuer may
require the payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including the fees and expenses of the Indenture Trustee)
connected therewith. 
  
 Every replacement Note issued pursuant to
this Section in replacement of any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder. 
  

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 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights
and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes. 
  
 SECTION 2.5. Persons Deemed Owners. Prior to due presentment for registration of transfer of any Note, the Issuer, the Indenture Trustee and the
Insurer and any agent of the Issuer, the Indenture Trustee and the Insurer may treat the Person in whose name any Note is registered (as of the Record Date) as the owner of such Note for the purpose of receiving payments of principal of and
interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note be overdue, and none of the Issuer, the Insurer, the Indenture Trustee nor any agent of the Issuer, the Insurer or the Indenture Trustee shall be affected
by notice to the contrary. 
  
 SECTION 2.6. Payment of
Principal and Interest; Defaulted Interest. 
  
 (a) The Notes
shall accrue interest as provided herein, and such amount shall be payable on each Payment Date as specified herein. Any installment of interest or principal, if any, payable on any Note which is punctually paid or duly provided for by the Issuer on
the applicable Payment Date shall be paid to the Person in whose name such Note (or one or more Predecessor Notes) is registered on the Record Date, by wire transfer (or upon the request of a Holder holding Class A Notes having denominations
aggregating at least $1,000,000 and received by the Indenture Trustee at least five Business Days prior to the related Record Date, by check or money order or otherwise) to such Person who’s name appears on the Note Register on such Record
Date; provided that if Definitive Notes have been issued pursuant to Section 2.11, then payments shall be made by check mailed first-class, postage prepaid, with respect to Notes registered on the Record Date in the name of the nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payment will be made by wire transfer in immediately available funds to the account designated by such nominee and except for the final installment of principal payable with respect to
such Note on a Payment Date or on the Final Scheduled Payment Date (and except for the Redemption Price for any Note called for redemption pursuant to Section 10.1) which shall be payable as provided below. The funds represented by any such checks
returned undelivered shall be held in accordance with Section 3.3. 
  
 (b) Upon written notice from the Issuer, the Indenture Trustee shall notify the Person in whose name a Note is registered at the close of business on the Record Date preceding the Payment Date on which the Issuer expects that the final
installment of principal of and interest on such Note will be paid. Such notice shall be mailed or transmitted by facsimile prior to such final Payment Date and shall specify that such final installment will be payable only upon presentation and
surrender of such Note and shall specify the place where such Note may be presented and surrendered for payment of such installment. Notices in connection with redemptions of Notes shall be mailed to Noteholders as provided in Section 10.2.

  
 (c) If the Issuer defaults in a payment of interest on the
Notes, the Issuer shall pay defaulted interest (plus interest on such defaulted interest to the extent lawful) at the Class A Note Rate to the extent lawful. The Issuer may pay such defaulted interest to the Persons who are Noteholders on a
subsequent special Record Date, which date shall be at least five Business Days prior to the Payment Date. The Issuer shall fix or cause to be fixed any such special 
  

 7 

 Record Date and Payment Date, and, at least 15 days before any such special Record Date, the Issuer shall mail to each
Noteholder, the Insurer and the Indenture Trustee a notice that states the special Record Date, the Payment Date and the amount of defaulted interest to be paid. 
  
 (d) Promptly following the date on which all principal of and interest on the Notes has been paid in full and the Notes have
been surrendered to the Indenture Trustee, the Indenture Trustee shall, upon written notice from the Servicer of the amounts, if any, that the Insurer has paid in respect of the Notes under the Policy or otherwise which has not been reimbursed to
the Insurer, deliver such surrendered Notes to the Insurer to the extent not previously canceled or destroyed. 
  
 SECTION 2.7. Cancellation. Subject to Section 2.6(d), all Notes surrendered for payment, registration of transfer, exchange or redemption shall, if
surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly canceled by the Indenture Trustee. Subject to Section 2.6(d), the Issuer may at any time deliver to the Indenture Trustee for
cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly canceled by the Indenture Trustee. No Notes shall be authenticated in
lieu of or in exchange for any Notes canceled as provided in this Section, except as expressly permitted by this Indenture. Subject to Section 2.6(d), all canceled Notes may be held or disposed of by the Indenture Trustee in accordance with its
standard retention or disposal policy as in effect at the time unless the Issuer shall direct by an Issuer Order that they be returned to it; provided that such Issuer Order is timely and the Notes have not been previously disposed of by the
Indenture Trustee. 
  
 SECTION 2.8. Release of Collateral.
The Indenture Trustee shall, on or after the Termination Date, release any remaining portion of the Trust Property from the lien created by this Indenture and deposit in the Distribution Account any funds then on deposit in any other Account. The
Indenture Trustee shall release property from the lien created by this Indenture pursuant to this Section 2.8 only upon receipt of an Issuer Request by it accompanied by an Officer’s Certificate and an Opinion of Counsel (which shall also be
addressed to the Insurer) and (if required by the TIA) Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1. 
  
 SECTION 2.9. Book-Entry Notes. The Notes, upon original issuance, will
be issued in the form of typewritten Notes representing the Book-Entry Notes, to be delivered to The Depository Trust Company or its custodian, the initial Clearing Agency, by, or on behalf of, the Issuer. Such Notes shall initially be registered on
the Note Register in the name of Cede & Co., the nominee of the initial Clearing Agency, and no Note Owner will receive a Definitive Note representing such Note Owner’s interest in such Note, except as provided in Section 2.11. Unless and
until definitive, fully registered Notes (the “Definitive Notes”) have been issued to Note Owners pursuant to Section 2.11: 
  
 (i) the provisions of this Section shall be in full force and effect; 
  
 (ii) the Note Registrar and the Indenture Trustee shall be entitled to deal with the Clearing Agency for all
purposes of this Indenture (including the payment 
  

 8 

 of principal of and interest on the Notes and the giving of instructions or directions hereunder) as the
sole Holder of the Notes, and shall have no obligation to the Note Owners; 
  
 (iii) to the extent that the provisions of this Section conflict with any other provisions of this Indenture, the provisions of this Section shall control; 
  
 (iv) the rights of Note Owners shall be exercised only
through the Clearing Agency and shall be limited to those established by law and agreements between such Note Owners and the Clearing Agency and/or the Clearing Agency Participants. Unless and until Definitive Notes are issued pursuant to Section
2.11, the initial Clearing Agency will make book-entry transfers among the Clearing Agency Participants and receive and transmit payments of principal of and interest on the Notes to such Clearing Agency Participants; 
  
 (v) whenever this Indenture requires or permits actions to
be taken based upon instructions or directions of Holders of Notes evidencing a specified percentage of the Outstanding Amount of the Notes, the Clearing Agency shall be deemed to represent such percentage only to the extent that it has received
instructions to such effect from Note Owners and/or Clearing Agency Participants owning or representing, respectively, such required percentage of the beneficial interest in the Notes and has delivered such instructions to the Indenture Trustee; and

  
 (vi) Note Owners may receive copies of any
reports sent to Noteholders pursuant to this Indenture, upon written request, together with a certification that they are Note Owners and payment of reproduction and postage expenses associated with the distribution of such reports, from the
Indenture Trustee at the Corporate Trust Office. 
  
 SECTION 2.10.
Notices to Clearing Agency. Whenever a notice or other communication to the Noteholders is required under this Indenture, unless and until Definitive Notes shall have been issued to Note Owners pursuant to Section 2.11, the Indenture Trustee
shall give all such notices and communications specified herein to be given to Holders of the Notes to the Clearing Agency, and shall have no obligation to the Note Owners. 
  
 SECTION 2.11. Definitive Notes. If (i) the Servicer advises the Indenture Trustee in writing that the Clearing Agency
is no longer willing or able to properly discharge its responsibilities with respect to the Notes, and the Servicer is unable to locate a qualified successor, (ii) the Servicer at its option advises the Indenture Trustee in writing that it elects to
terminate the book-entry system through the Clearing Agency or (iii) after the occurrence of a Rapid Amortization Event, Note Owners representing beneficial interests aggregating at least a majority of the Outstanding Amount of the Notes advise the
Indenture Trustee through the Clearing Agency in writing that the continuation of a book entry system through the Clearing Agency is no longer in the best interests of the Note Owners, then the Clearing Agency shall notify all Note Owners and the
Indenture Trustee of the occurrence of any such event and of the availability of Definitive Notes to Note Owners requesting the same. Upon surrender to the Indenture Trustee of the typewritten Note or Notes representing the Book-Entry Notes by the

  

 9 

 Clearing Agency, accompanied by registration instructions, the Issuer shall execute and the Indenture Trustee shall
authenticate the Definitive Notes in accordance with the instructions of the Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee shall be liable for any delay in delivery of such instructions and may conclusively rely
on, and shall be protected in relying on, such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes as Noteholders. 
  
 ARTICLE III 
  
 Covenants; Representations and Warranties of the Issuer 
  
 SECTION 3.1. Payment of Principal and Interest. The Issuer will duly and punctually pay the principal of and interest
on the Notes in accordance with the terms of the Notes and this Indenture. The Notes shall be debt obligations of the Trust and shall be limited in right of payment to amounts available from the Trust as provided in this Indenture and the Trust
shall not otherwise be liable for payments on the Notes. No person shall be personally liable for any amounts payable under the Notes. Amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest and/or
principal shall be considered as having been paid by the Issuer to such Noteholder for all purposes of this Indenture. 
  
 SECTION 3.2. Maintenance of Office or Agency. The Issuer will maintain in New York, New York, an office or agency where Notes may be surrendered
for registration, transfer or exchange of the Notes, and where notices and demands to or upon the Issuer in respect of the Notes and this Indenture may be served. The Issuer hereby initially appoints the Indenture Trustee to serve as its agent for
the foregoing purposes. The Issuer will give prompt written notice to the Indenture Trustee of the location, and of any change in the location, of any such office or agency. If at any time the Issuer shall fail to maintain any such office or agency
or shall fail to furnish the Indenture Trustee with the address thereof, such surrenders, notices and demands may be made or served at the Corporate Trust Office, and the Issuer hereby appoints the Indenture Trustee as its agent to receive all such
surrenders, notices and demands. 
  
 SECTION 3.3. Money for
Payments to be Held in Trust. The Issuer will cause each Note Paying Agent other than the Indenture Trustee to execute and deliver to the Indenture Trustee and the Insurer an instrument in which such Note Paying Agent shall agree with the
Indenture Trustee (and if the Indenture Trustee acts as Note Paying Agent, it hereby so agrees), subject to the provisions of this Section, that such Note Paying Agent will: 
  
 (i) hold all sums held by it for the payment of amounts due with respect to the Notes in trust for the
benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided and pay such sums to such Persons as herein provided; 
  
 (ii) give the Indenture Trustee (unless the Indenture Trustee is acting as Note Paying Agent) and the
Insurer written notice of any default by the Issuer (or any other obligor upon the Notes) of which it has actual knowledge in the making of any payment required to be made with respect to the Notes; 
  

 10 

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

  
 (iv) immediately resign as a Note Paying
Agent and forthwith pay to the Indenture Trustee all sums held by it in trust for the payment of Notes if at any time it ceases to meet the standards required to be met by a Note Paying Agent at the time of its appointment; and 
  
 (v) comply with all requirements of the Code with respect to
the withholding from any payments made by it on any Notes of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith. 
  
 The Issuer may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, by Issuer Order direct any Note Paying Agent to pay to the Indenture Trustee all sums held in trust by such Note Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts
as those upon which the sums were held by such Note Paying Agent; and upon such a payment by any Note Paying Agent to the Indenture Trustee, such Note Paying Agent shall be released from all further liability with respect to such money. 

 
 Subject to applicable laws with respect to the escheat of funds, any money
held by the Indenture Trustee or any Note Paying Agent in trust for the payment of any amount due with respect to any Note and remaining unclaimed for two years after such amount has become due and payable shall be discharged from such trust and be
paid to the Issuer, with the prior consent of the Insurer, on Issuer Request, and shall be deposited by the Indenture Trustee in the Distribution Account; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to
the Issuer for payment thereof (but only to the extent of the amounts so paid to the Issuer), and all liability of the Indenture Trustee, the Insurer or such Note Paying Agent with respect to such trust money shall thereupon cease; provided,
however, that if such money or any portion thereof had been previously deposited by the Insurer with the Indenture Trustee for the payment of principal or interest on the Notes, to the extent any amounts are owing to the Insurer, such amounts
shall be paid promptly to the Insurer upon receipt of a written request by the Insurer to such effect. 
  
 SECTION 3.4. Existence. The Issuer will keep in full effect its existence, rights and franchises as a statutory trust under the laws of the State
of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes, organized under the laws of any other state or of the United States of America, in which case the Issuer will keep in full effect its existence, rights and franchises
under the laws of such other jurisdiction) and will obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Indenture, the
Trust Property, the Notes, and each other instrument or agreement included in the Trust Property. 
  

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 SECTION 3.5. Protection of Trust Property. The Issuer intends the security interest granted
pursuant to this Indenture in favor of the Issuer Secured Parties to be prior to all other liens in respect of the Trust Property and the Issuer shall take all actions necessary to obtain and maintain, in favor of the Indenture Trustee, for the
benefit of the Issuer Secured Parties, a first lien on and a first priority, perfected security interest in the Trust Property. The Issuer will from time to time prepare (or shall cause to be prepared), execute and deliver all such supplements and
amendments hereto and all such financing statements, continuation statements, instruments of further assurance and other instruments, and will take such other action necessary or advisable to: 
  
 (i) Grant more effectively all or any portion of the Trust
Property; 
  
 (ii) maintain or preserve the lien
and security interest (and the priority thereof) in favor of the Indenture Trustee for the benefit of the Issuer Secured Parties created by this Indenture or carry out more effectively the purposes hereof; 
  
 (iii) perfect, publish notice of or protect the validity of
any Grant made or to be made by this Indenture; 
  
 (iv) enforce any of the Collateral; 
  
 (v) preserve and defend title to the Trust Property and the rights of the Indenture Trustee in such Trust Property against the claims of all persons and parties; and 
  
 (vi) pay all taxes or assessments levied or assessed upon the Trust Property when due. 
  
 The Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact to execute
any financing statement, continuation statement or other instrument required pursuant to this Section; provided that, such designation shall not be deemed to create a duty in the Indenture Trustee to monitor the compliance of the Issuer with
respect to its duties under this Section 3.5 or the adequacy of any financing statement, continuation statement or other instrument prepared by the Issuer. 
  
 SECTION 3.6. Opinions as to Trust Property. 
  
 (a) On the Closing Date, the Issuer shall furnish to the Indenture Trustee and the Insurer an Opinion of Counsel in the form of Exhibit B hereto, stating
that, in the opinion of such counsel, such actions have been taken with respect to the recording and filing of this Indenture, any indentures supplemental hereto, and any other requisite documents, and with respect to the execution and filing of any
financing statements and continuation statements, as are necessary to perfect and make effective the first priority lien and security interest in favor of the Indenture Trustee, for the benefit of the Issuer Secured Parties, created by this
Indenture, subject to the exceptions and qualifications set forth in such Opinion of Counsel. 
  
 (b) Within 90 days after the beginning of each calendar year, beginning in 2005, the Issuer shall furnish to the Indenture Trustee and the Insurer, an Opinion of Counsel either stating that, in the opinion of such
counsel, such actions have been taken with respect to 
  

 12 

 the recording, filing, re-recording and refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any financing statements and continuation statements as are necessary to maintain the lien and security interest created by this Indenture and reciting the details of such action or
stating that in the opinion of such counsel, no such action is necessary to maintain such lien and security interest. Such Opinion of Counsel shall also describe the recording, filing, re-recording and refiling of this Indenture, any indentures
supplemental hereto and any other requisite documents and the execution and filing of any financing statements and continuation statements that will, in the opinion of such counsel, be required to maintain the lien and security interest of this
Indenture. 
  
 SECTION 3.7. Performance of Obligations;
Servicing of Mortgage Loans. 
  
 (a) The Issuer will not take
any action and will use its best efforts not to permit any action to be taken by others that would release any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in the Trust Property
or that would result in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as ordered by any bankruptcy or other court or as expressly
provided in this Indenture, the Basic Documents or such other instrument or agreement. 
  
 (b) The Issuer may contract with other Persons acceptable to the Insurer to assist it in performing its duties under this Indenture, and any performance of such duties by a Person identified to the Indenture Trustee
and the Insurer in an Officer’s Certificate of the Issuer shall be deemed to be action taken by the Issuer. Initially, the Issuer has contracted with the Servicer to assist the Issuer in performing its duties under this Indenture. 

 
 (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, the Basic Documents and in the instruments and agreements included in the Trust Property, including, but not limited to, preparing (or causing to be prepared) and filing (or causing to be filed) all UCC
financing statements and continuation statements required to be filed by the terms of this Indenture and the Sale and Servicing Agreement in accordance with and within the time periods provided for herein and therein. Except as otherwise expressly
provided therein, the Issuer shall not waive, amend, modify, supplement or terminate any Basic Document or any provision thereof without the consent of the Indenture Trustee and the Insurer. 
  
 (d) If a Responsible Officer of the Owner Trustee shall have actual knowledge
of the occurrence of an Event of Servicing Termination under the Sale and Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee, the Insurer and the Rating Agencies thereof in accordance with Section 11.4, and shall specify in
such notice the action, if any, the Issuer is taking at the direction of the Controlling Party in respect of such default. If an Event of Servicing Termination shall arise from the failure of the Servicer to perform any of its duties or obligations
under the Sale and Servicing Agreement with respect to the Mortgage Loans, the Issuer shall take all reasonable steps available to it to remedy such failure. 
  

 13 

 (e) The Issuer agrees that it will not waive timely performance or observance by the Servicer or the
Sponsor of their respective duties under the Basic Documents (x) without the prior consent of the Insurer or (y) if the effect thereof would adversely affect the Holders of the Notes. 
  
 SECTION 3.8. Negative Covenants. So long as any Notes are Outstanding, the Issuer shall not: 
  
 (i) except as expressly permitted by this Indenture or the
Basic Documents, sell, transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer, including those included in the Trust Property (but excluding any Mortgage Loans removed from the Pool pursuant to Section 2.07 of the
Sale and Servicing Agreement), without the consent of the Insurer (which consent may not be unreasonably withheld) provided, that if an Insurer Default has occurred and is continuing the Noteholders representing 66 2/3% of the Outstanding Amount may direct the Indenture Trustee to sell or dispose of the Trust Property.

  
 (ii) claim any credit on, or make any
deduction from the principal or interest payable in respect of, the Notes (other than amounts properly withheld from such payments under the Code) or assert any claim against any present or former Noteholder by reason of the payment of the taxes
levied or assessed upon any part of the Trust Property; or 
  
 (iii) (A) permit the validity or effectiveness of this Indenture to be impaired, or permit the lien in favor of the Indenture Trustee created by this Indenture to be amended, hypothecated, subordinated, terminated or
discharged, or permit any Person to be released from any covenants or obligations with respect to the Notes under this Indenture except as may be expressly permitted hereby, (B) permit any lien, charge, excise, claim, security interest, mortgage or
other encumbrance (other than the lien of this Indenture) to be created on or extend to or otherwise arise upon or burden the Trust Property or any part thereof or any interest therein or the proceeds thereof (other than tax liens, mechanics’
liens and other liens that arise by operation of law, in each case on a Mortgaged Property and arising solely as a result of an action or omission of the related obligor), (C) permit the lien of this Indenture not to constitute a valid first
priority (other than with respect to any such tax, mechanics’ or other lien) security interest in the Trust Property or (D) amend, modify or fail to comply with the provisions of the Basic Documents without the prior written consent of the
Insurer, which consent may not be unreasonably withheld. 
  
 SECTION 3.9. Annual Statement as to Compliance. The Issuer will deliver to the Indenture Trustee and the Insurer, within 90 days after the end of each fiscal year of the Issuer (commencing with the fiscal year ended December 31,
2004) and otherwise in compliance with the requirements of TIA Section 314(a)(4), an Officer’s Certificate stating, as to the Authorized Officer signing such Officer’s Certificate, that 
  

 14 

 (i) a review of the activities of the Issuer during such year and of performance under
this Indenture has been made under such Authorized Officer’s supervision; and 
  
 (ii) to the best of such Authorized Officer’s knowledge, based on such review, the Issuer has complied with all conditions and
covenants under this Indenture throughout such year, or, if there has been a default in the compliance of any such condition or covenant, specifying each such default known to such Authorized Officer and the nature and status thereof. 
  
 SECTION 3.10. Issuer May Not Consolidate or Transfer Assets.

  
 (a) The Issuer may not consolidate or merge with or into any
other Person. 
  
 (b) Except as otherwise provided in the Sale and
Servicing Agreement, the Issuer shall not convey or transfer all or substantially all of its properties or assets, including those included in the Trust Property, to any Person. 
  
 SECTION 3.11. No Other Business. The Issuer shall not engage in any business other than purchasing, owning, selling
and managing the Mortgage Loans and other assets in the manner contemplated by this Indenture and the Basic Documents and activities incidental thereto. 
  
 SECTION 3.12. No Borrowing. The Issuer shall not issue, incur, assume, guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness or any certificates of beneficial interest except for (i) the Residual Certificates, (ii) the Notes, (iii) obligations owing from time to time to the Insurer under the Insurance Agreement and (iv) any other indebtedness permitted by or
arising under the Basic Documents, except that the Issuer shall not incur any indebtedness that would cause it, or any portion thereof, to be treated as a “taxable mortgage pool” under Section 7701 of the Code. The proceeds of the Notes
and the Residual Certificates shall be used exclusively to fund the Issuer’s purchase of the Mortgage Loans and the other assets specified in the Sale and Servicing Agreement and to pay the Issuer’s organizational, transactional and
start-up expenses. 
  
 SECTION 3.13. Servicer’s
Obligations. The Issuer shall cause the Servicer to comply with Sections 3.09, 3.10 and 4.01 of the Sale and Servicing Agreement. 
  
 SECTION 3.14. Guarantees, Loans, Advances and Other Liabilities. Except as contemplated by the Sale and Servicing Agreement, the Insurance
Agreement or this Indenture, the Issuer shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or performance on any obligation or capability of
so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any capital contribution to, any other Person. 
  

 15 

 SECTION 3.15. Capital Expenditures. The Issuer shall not make any expenditure (by long-term or
operating lease or otherwise) for capital assets (either realty or personalty). 
  
 SECTION 3.16. Compliance with Laws. The Issuer shall comply with the requirements of all applicable laws, the non-compliance with which would, individually or in the aggregate, materially and adversely affect
the ability of the Issuer to perform its obligations under the Notes, this Indenture or any Basic Document. 
  
 SECTION 3.17. Restricted Payments. The Issuer shall not, directly or indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination thereof, to the Owner Trustee or any owner of a beneficial interest in the Issuer or otherwise with respect to any ownership or equity interest or security in or of the
Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value any such ownership or equity interest or security or (iii) set aside or otherwise segregate any amounts for any such purpose; provided, however, that the
Issuer may make, or cause to be made, distributions to the Servicer, the Owner Trustee, the Insurer, the Indenture Trustee, the Noteholders and the Residual Certificateholders as permitted by, and to the extent funds are available for such purpose
under, the Sale and Servicing Agreement, the Insurance Agreement, this Indenture, or Trust Agreement. The Issuer will not, directly or indirectly, make payments to or distributions from the Distribution Account except in accordance with this
Indenture and the Basic Documents. 
  
 SECTION 3.18. Notice of
Rapid Amortization Events and Events of Servicing Termination. Upon a Responsible Officer of the Owner Trustee having actual knowledge thereof, the Issuer agrees to give the Indenture Trustee, the Insurer and the Rating Agencies prompt written
notice of each Rapid Amortization Event hereunder or Event of Servicing Termination under the Sale and Servicing Agreement. 
  
 SECTION 3.19. Further Instruments and Acts. Upon request of the Indenture Trustee or the Insurer, the Issuer will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
  
 SECTION 3.20. Amendments of Sale and Servicing Agreement and Trust Agreement. The Issuer shall not agree to any amendment to Section 9.01 of the
Sale and Servicing Agreement or Section 12.1 of the Trust Agreement to eliminate the requirements thereunder that the Indenture Trustee, the Insurer or the Holders of the Notes consent to amendments thereto as provided therein. 
  
 SECTION 3.21. Income Tax Characterization. For purposes of federal
income, state and local income and franchise and any other income taxes, the Issuer and the Noteholders will treat the Notes as indebtedness of the Issuer and hereby instruct the Indenture Trustee to treat the Notes as indebtedness of the Issuer for
federal and state tax reporting purposes. 
  

 16 

 SECTION 3.22. Representations and Warranties of the Issuer Regarding the Lien of the Indenture
Trustee. With respect to the Collateral, the Issuer represents and warrants that, as of the Closing Date: 
  
 (i) This Indenture creates a valid and continuing security interest (as such term is defined in the UCC) in the Collateral in favor of the
Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such against creditors of and purchasers from the Issuer; 
  
 (ii) The Credit Line Agreements constitute either “instruments” or “general intangibles” within the meaning of the
applicable UCC. 
  
 (iii) The Issuer owns or will
own and has or will have good title to the Collateral free and clear of any lien, claim or encumbrance of any Person; 
  
 (iv) The Issuer has or will have received all consents and approvals required by the terms of the Mortgage Loans to the pledge of the
Mortgage Loans hereunder to the Indenture Trustee; 
  
 (v) All original executed copies of each Mortgage Loan have been or will be delivered to the Custodian or the Indenture Trustee; 
  
 (vi) The Issuer has or will have received a written acknowledgement from the Custodian or the Indenture Trustee that the Custodian or
Indenture Trustee is holding the Mortgage Loans solely on behalf and for the benefit of the Indenture Trustee on behalf of the Noteholders; 
  
 (vii) Other than the security interest granted to the Indenture Trustee pursuant to this Indenture, the Issuer has not pledged, assigned,
sold, granted a security interest in, or otherwise conveyed any of the Collateral. The Issuer has not authorized the filing of and is not aware of any financing statement against the Issuer that includes a description of any of the Collateral other
than a financing statement relating to the security interest granted to the Indenture Trustee hereunder or that has been terminated. The Issuer is not aware of any judgment or tax lien filings against the Issuer; and 
  
 (viii) None of the Credit Line Agreements has or will have
any marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Indenture Trustee. 
  
 ARTICLE IV 
 Satisfaction and Discharge

  
 SECTION 4.1. Satisfaction and Discharge of Indenture.
Upon payment in full to the Insurer of amounts due to the Insurer and on the Notes, this Indenture shall cease to be of further effect with respect to the Notes except as to (i) the rights of registration of transfer and exchange, (ii) substitution
of mutilated, destroyed, lost or stolen Notes, (iii) the rights of Noteholders to receive payments of principal thereof and interest thereon, (iv) Sections 3.3, 3.4, 3.5, 3.8, 3.10, 3.12, 3.13, 3.20 and 3.21, (v) the rights, obligations and
immunities of the 
  

 17 

 Indenture Trustee hereunder (including the rights of the Indenture Trustee under Section 6.7 and the obligations of the
Indenture Trustee under Section 4.2) and (vi) the rights of Noteholders and the Insurer as beneficiaries hereof with respect to the property so deposited with the Indenture Trustee payable to all or any of them, and the Indenture Trustee, on demand
of and at the expense of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect to the Notes, when 
  

either 
  
 (1) all Notes theretofore authenticated and delivered (other than (i) Notes that have been destroyed, lost or stolen and that have been replaced or paid
as provided in Section 4.5 of the Trust Agreement and (ii) Notes for which payment money has theretofore been deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.3) have been delivered to the Indenture Trustee for cancellation and the Policy has terminated and been returned to the Insurer for cancellation and all amounts owing to the Insurer have been paid in full; or 
  
 (2) all Notes not theretofore delivered to the Indenture Trustee for
cancellation have become due and payable, and 
  
 (A) the Issuer
has irrevocably deposited or caused to be irrevocably deposited with the Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which will mature prior to the date such amounts are payable), in
trust for such purpose, in an amount sufficient to pay and discharge the entire indebtedness on the Notes, in each case to the extent not theretofore delivered to the Indenture Trustee for cancellation when due on the Final Scheduled Payment Date or
Redemption Date (if Notes shall have been called for redemption pursuant to Section 10.1), as the case may be; 
  
 (B) the Issuer has paid or caused to be paid all Insurer Issuer Secured Obligations and all Indenture Trustee Issuer Secured Obligations; and 

 
 (C) the Issuer has delivered to the Indenture Trustee and the Insurer an
Officer’s Certificate, an Opinion of Counsel and, if required by the TIA, the Indenture Trustee or the Insurer, an Independent Certificate from a firm of certified public accountants, each meeting the applicable requirements of Section 11.1(a)
and each stating that all conditions precedent herein provided relating to the satisfaction and discharge of this Indenture have been complied with. 
  
 SECTION 4.2. Application of Trust Money. All monies deposited with the Indenture Trustee pursuant to Section 4.1 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Note Paying Agent, as the Indenture Trustee may determine, to the Holders of the particular Notes for the payment or
redemption of which such monies have been deposited with the Indenture Trustee, of all sums due and to become due thereon for principal and interest and to the Insurer for the payment of any amounts due to it under the Basic Documents. 

 
 SECTION 4.3. Repayment of Monies Held by Note Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to the Notes, all 
  

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 monies then held by any Note Paying Agent other than the Indenture Trustee under the provisions of this Indenture with
respect to such Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and applied according to Section 3.3 and thereupon such Note Paying Agent shall be released from all further liability with respect to such monies.

  
 ARTICLE V 
  
 Remedies 
  
 SECTION 5.1. Remedies. If a Rapid Amortization Event as described in Article XII shall have occurred and be
continuing, the Noteholders shall be entitled on each Payment Date to an amount equal to the Maximum Principal Payment payable during such Rapid Amortization Period. The rights contained in this Article V are in addition to any rights which the
Noteholders possess pursuant to Article XII. 
  
 SECTION 5.2.
Limitation of Suits. No Holder of any Note shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

  
 (i) such Holder has previously given written
notice to the Indenture Trustee of a continuing Rapid Amortization Event; 
  
 (ii) the Holders of not less than 50% of the Outstanding Amount of the Notes have made written request to the Indenture Trustee to institute such proceeding with respect to the Notes in respect of such Rapid
Amortization Event in its own name as Indenture Trustee hereunder; 
  
 (iii) such Holder or Holders have offered to the Indenture Trustee indemnity reasonably satisfactory to it against the costs, expenses and liabilities to be incurred in complying with such request; 
  
 (iv) the Indenture Trustee for 60 days after its receipt of
such notice, request and offer of indemnity has failed to institute such proceedings; 
  
 (v) no direction inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by the Holders
of a majority of the Outstanding Amount of the Notes; and 
  
 (vi) an Insurer Default shall have occurred and be continuing; 
  
 it being understood and intended that no Holders of Notes shall have any right in any manner whatsoever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of
any other Holders of Notes or to obtain or to seek to obtain priority or preference over any other Holders or to enforce any right under this Indenture, except in the manner herein provided. 
  
 In the event the Indenture Trustee shall receive conflicting or inconsistent
requests and indemnity from two or more groups of Holders of Notes, each representing less than 
  

 19 

 a majority of the Outstanding Amount of the Notes, the Indenture Trustee shall take direction from the group providing
indemnity and representing the greater percentage of the Outstanding Amount of the Notes, notwithstanding any other provisions of this Indenture. 
  
 SECTION 5.3. Unconditional Rights of Noteholders To Receive Principal and Interest. Notwithstanding any other provisions in this Indenture, the
Holder of any Note shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Note on or after the respective due dates thereof expressed in such Note or in this Indenture (or, in
the case of redemption, on or after the Redemption Date) and to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such Holder. 
  
 SECTION 5.4. Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, then and in every such case the Issuer, the Insurer, the Indenture
Trustee and the Noteholders shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Indenture Trustee, the Insurer and the
Noteholders shall continue as though no such proceeding had been instituted. 
  
 SECTION 5.5. Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the Controlling Party or to the related Noteholders is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right
or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
  
 SECTION 5.6. Delay or Omission Not a Waiver. No delay or omission of the Indenture Trustee, the Insurer or any Holder of any Note to exercise any
right or remedy accruing upon any Rapid Amortization Event shall impair any such right or remedy or constitute a waiver of any such Rapid Amortization Event or an acquiescence therein. Every right and remedy given by this Article V or by law to the
Indenture Trustee, the Insurer or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee, the Insurer or by the Noteholders, as the case may be. 
  
 SECTION 5.7. Control by Insurer and Noteholders. The Insurer (or, if
an Insurer Default shall have occurred and is continuing, Holders of a majority of the Outstanding Amount of the Notes) shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Indenture
Trustee pursuant to Section 12.1 hereof with respect to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided that: 
  
 (i) such direction shall not be in conflict with any rule of law or with this Indenture; 
  

 20 

 (ii) the Indenture Trustee may take any other action deemed proper by the Indenture
Trustee that is not inconsistent with such direction; 
  
 provided,
however, that, subject to Section 6.1, the Indenture Trustee need not take any action that it determines might involve it in liability or might materially adversely affect the rights of any Noteholders not consenting to such action. 

 
 SECTION 5.8. Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit instituted by the Insurer, any Noteholder, or group of Noteholders with the prior written consent of the Insurer (so long as no Insurer Default has occurred),
in each case holding in the aggregate more than 10% of the Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder for the enforcement of the payment of principal of or interest on any Note on or after the respective due dates
expressed in such Note and in this Indenture (or, in the case of redemption, on or after the Redemption Date). 
  
 SECTION 5.9. Waiver of Stay or Extension Laws. The Issuer covenants (to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead or in any manner whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the
Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Indenture Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted. 
  
 SECTION 5.10. Action on Notes. The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other
relief under or with respect to this Indenture. Neither the lien of this Indenture nor any rights or remedies of the Indenture Trustee, the Insurer or the Noteholders shall be impaired by the recovery of any judgment by the Indenture Trustee or the
Insurer against the Issuer or by the levy of any execution under such judgment upon any portion of the Trust Property or upon any of the assets of the Issuer. 
  

SECTION 5.11. Performance and Enforcement of Certain Obligations. 
  
 (a) Promptly following a request from the Indenture Trustee (at the direction of the Insurer) to do so and at the
Servicer’s expense, the Issuer agrees to take all such lawful action as the Indenture Trustee may request to compel or secure the performance and observance by the Sponsor and the Servicer, as applicable, of each of their obligations to the
Issuer under or in connection with the Sale and Servicing Agreement in accordance with the terms thereof, and 
  

 21 

 to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under or in connection
with the Sale and Servicing Agreement to the extent and in the manner directed by the Indenture Trustee, including the transmission of notices of default on the part of the Sponsor or the Servicer thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by the Sponsor or the Servicer of each of their obligations under the Sale and Servicing Agreement. 
  
 (b) If a Rapid Amortization Event has occurred and is continuing, the Indenture Trustee, with the consent of the Insurer,
may, and, at the written direction of the Insurer (or, if an Insurer Default has occurred and is continuing, the Holders of 66 2/3% of the Outstanding Amount of the Notes) shall, exercise all rights, remedies, powers, privileges and claims of the Issuer against the Sponsor or the Servicer under or in connection with the Sale and Servicing Agreement, including
the right or power to take any action to compel or secure performance or observance by the Sponsor or the Servicer of each of their obligations to the Issuer thereunder and to give any consent, request, notice, direction, approval, extension or
waiver under the Sale and Servicing Agreement, and any right of the Issuer to take such action shall be suspended. 
  
 SECTION 5.12. Subrogation. The Indenture Trustee shall receive as attorney-in-fact of each Noteholder any Insured Amounts or Preference Amounts
from the Insurer pursuant to the Policy. Any and all Insured Amounts and Preference Amounts disbursed by the Indenture Trustee from claims made under the Policy shall not be considered payment by the Issuer, and shall not discharge the obligations
of the Issuer with respect thereto. The Insurer shall, to the extent it makes any payment with respect to the Notes, become subrogated to the rights of the recipient of such payments to the extent of such payments. Subject to and conditioned upon
any payment with respect to the Notes by or on behalf of the Insurer, the Indenture Trustee shall assign to the Insurer all rights to the payment of interest or principal with respect to the Notes which are then due for payment to the extent of all
payments made by the Insurer. 
  
 SECTION 5.13. Preference
Claims. 
  
 (a) In the event that the Indenture Trustee has
received a certified copy of an order of the appropriate court that any payment of principal and interest on a Note has been avoided in whole or in part as a preference payment under applicable bankruptcy law, the Indenture Trustee shall so notify
the Insurer, shall comply with the provisions of the Policy to obtain payment by the Insurer of such avoided payment, and shall, at the time it provides notice to the Insurer, notify Holders of the Notes by mail that, in the event that any
Noteholder’s payment is so recoverable, such Noteholder will be entitled to payment pursuant to the terms of the Policy. The Indenture Trustee shall furnish to the Insurer at its written request, the requested records it holds in its possession
evidencing the payments of principal of and interest on Notes, if any, which have been made by the Indenture Trustee and subsequently recovered from Noteholders and the dates on which such payments were made. Pursuant to the terms of the Policy, the
Insurer will make such payment on behalf of the related Noteholder to the receiver, conservator, debtor-in-possession or trustee in bankruptcy named in the final order of the court exercising jurisdiction on behalf of the Noteholders and not to the
Indenture Trustee, any Noteholder directly (unless such Noteholder has returned principal or interest paid on the Notes 
  

 22 

 to such receiver or trustee in bankruptcy, in which case the Insurer shall make such payment to the Indenture Trustee for
payment to such Noteholder in accordance with the terms of the Policy). 
  
 (b) The Indenture Trustee shall promptly notify the Insurer of any proceeding or the institution of any action (of which the Indenture Trustee has actual knowledge) seeking the avoidance as a preferential transfer under applicable
bankruptcy, insolvency, receivership, rehabilitation or similar law (a “Preference Claim”) of any distribution made with respect to the Notes. Each Holder, by its purchase of Notes, and the Indenture Trustee hereby agree that so
long as an Insurer Default shall not have occurred and be continuing, the Insurer may at any time during the continuation of any proceeding relating to a Preference Claim direct all matters relating to such Preference Claim, including, without
limitation, (i) the direction of any appeal of any order relating to any Preference Claim and (ii) the posting of any surety, supersedes or performance bond pending any such appeal at the expense of the Insurer, but subject to reimbursement as
provided in the Insurance Agreement. In addition, and without limitation of the foregoing, as set forth in Section 5.12, the Insurer shall be subrogated to, and each Noteholder and the Indenture Trustee hereby delegate and assign, to the fullest
extent permitted by law, the rights of the Indenture Trustee and each Noteholder in the conduct of any proceeding with respect to a Preference Claim, including, without limitation, all rights of any party to an adversary proceeding action with
respect to any court order issued in connection with any such Preference Claim. All actions taken under this Section 5.13(b) by the Indenture Trustee shall be taken in accordance with the terms of the Policy. 
  
 SECTION 5.14. Noteholder Rights. Each Noteholder by the acceptance of
its Note agrees that, so long as no Insurer Default has occurred and is continuing, the Insurer shall be treated by the Issuer, the Seller, the Sponsor, the Servicer, the Owner Trustee and the Indenture Trustee as if the Insurer were the Holder of
the Note for the purpose of the giving of any consent, the making of any direction or the exercise of any voting or other control rights otherwise given to the Noteholder hereunder without any further consent of the Noteholder. So long as no Insurer
Default has occurred and is continuing, the Noteholders may only exercise such rights with the consent of the Insurer. 
  
 SECTION 5.15. Insurer’s Rights Regarding Actions, Proceedings or Investigations. Until all Notes have been paid in full, all amounts owed to
the Insurer have been paid in full, the Insurance Agreement has terminated and the Policy has been returned to the Insurer for cancellation, the following provisions shall apply: 
  
 (a) Unless an Insurer Default resulting from the failure of the Insurer to make payments under the Policy has occurred or is
continuing, notwithstanding anything contained herein or in the other Basic Documents to the contrary, the Insurer shall have the right to participate in, to direct the enforcement or defense of, and, at the Insurer’s sole option, to institute
or assume the defense of, any action, proceeding or investigation that could adversely affect the Issuer, the Collateral, the Trust Property or the rights or obligations of the Insurer hereunder or under the Policy or the Basic Documents, including
(without limitation) any insolvency or bankruptcy proceeding in respect of the Servicer, the Seller, the Sponsor, the Issuer or any affiliate thereof. Following notice to the Indenture Trustee and subject to the preceding sentence, the Insurer shall
have exclusive right to determine, in its sole discretion, the 
  

 23 

 actions necessary to preserve and protect the Issuer, the Collateral, and the Trust Property. All costs and expenses of
the Insurer in connection with such action, proceeding or investigation, including (without limitation) any judgment or settlement entered into affecting the Insurer or the Insurer’s interests, shall be included in the Reimbursement Amount.

  
 (b) In connection with any action, proceeding or investigation
that could adversely affect the Issuer, the Collateral, the Trust Property or the rights or obligations of the Insurer hereunder or under the Policy or the Basic Documents, including (without limitation) any insolvency or bankruptcy proceeding in
respect of the Servicer, the Seller, the Sponsor, the Issuer or any affiliate thereof, the Indenture Trustee hereby agrees to cooperate with, and to take such action as directed by, the Insurer, including (without limitation) entering into such
agreements and settlements as the Insurer shall direct, in its sole discretion, without the consent of any Noteholder. 
  
 (c) The Indenture Trustee hereby agrees to provide to the Insurer prompt written notice of any action, proceeding or investigation that names the Issuer
or the Indenture Trustee as a party or that could adversely affect the Issuer, the Collateral, the Trust Property or the rights or obligations of the Insurer hereunder or under the Policy or the Basic Documents, including (without limitation) any
insolvency or bankruptcy proceeding in respect of the Servicer, the Seller, the Sponsor, the Trust or any affiliate thereof. 
  
 (d) Notwithstanding anything contained herein or in any of the other Basic Documents to the contrary, the Indenture Trustee shall not, without the
Insurer’s prior written consent or unless directed by the Insurer, undertake or join any litigation or agree to any settlement of any action, proceeding or investigation affecting the Issuer, the Collateral, the Trust Property or the rights or
obligations of the Insurer hereunder or under the Policy or the Basic Documents. 
  
 (e) Each Noteholder, by acceptance of its Note, and the Indenture Trustee agree that the Insurer shall have such rights as set forth in this Section, which are in addition to any rights of the Insurer pursuant to the
other provisions of the Basic Documents, that the rights set forth in this Section may be exercised by the Insurer, in its sole discretion, without the need for the consent or approval of any Noteholder or the Indenture Trustee, notwithstanding any
other provision contained herein or in any of the other Basic Documents, and that nothing contained in this Section shall be deemed to be an obligation of the Insurer to exercise any of the rights provided for herein. 
  
 ARTICLE VI 
  
 The Indenture Trustee 
  
 SECTION 6.1. Duties of Indenture Trustee. 
  
 (a) If a Rapid Amortization Event of which a Responsible Officer of the Indenture Trustee has received notice or has actual knowledge has occurred and is
continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this Indenture and the Basic Documents and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances
in the conduct of such person’s own affairs; 
  

 24 

 (b) Except during the continuance of a Rapid Amortization Event of which a Responsible Officer of the
Indenture Trustee has notice or actual knowledge: 
  
 (i) the Indenture Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture against the Indenture Trustee; and

  
 (ii) in the absence of bad faith on its part,
the Indenture Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Indenture Trustee and conforming to the requirements of this
Indenture; however, the Indenture Trustee shall examine the certificates and opinions to determine whether or not they conform on their face to the requirements of this Indenture. 
  
 (c) The Indenture Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act
or its own willful misconduct, its negligent failure to perform its material obligations in compliance with this Agreement, or any liability which would be imposed by reason of its willful misfeasance or bad faith; except that: 
  
 (i) this paragraph does not limit the effect of paragraph
(b) of this Section; 
  
 (ii) the Indenture
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer unless it is proved that the Indenture Trustee was negligent in ascertaining the pertinent facts; 
  
 (iii) the Indenture Trustee shall not be liable with respect
to any action it takes or omits to take in reasonable good faith in accordance with a direction received by it pursuant to the terms herein; and 
  
 (iv) the Indenture Trustee shall not be charged with knowledge of any Rapid Amortization Event or any failure by the Servicer to comply
with the obligations of the Servicer in the Sale and Servicing Agreement unless a Responsible Officer of the Indenture Trustee at the Corporate Trust Office obtains actual knowledge of such failure or occurrence or the Indenture Trustee receives
written notice of such failure or occurrence from the Servicer, the Insurer or the Holders of Notes evidencing more than 50% of the Outstanding Amount. 
  
 (d) The Indenture Trustee shall not be liable for interest on any money received by it except as the Indenture Trustee may agree in writing with the
Issuer. 
  
 (e) No provision of this Indenture shall require the
Indenture Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or indemnity reasonably satisfactory to it against such risk or liability is not reasonably assured to it. 
  

 25 

 (f) Every provision of this Indenture relating to the conduct or affecting the liability of or affording
protection to the Indenture Trustee shall be subject to the provisions of this Section and to the provisions of the TIA. 
  
 (g) The Indenture Trustee shall, upon three Business Days’ prior written notice to the Indenture Trustee, permit any representative of the Insurer,
during the Indenture Trustee’s normal business hours, to examine all books of account, records, reports and other papers of the Indenture Trustee relating to the Notes, to make copies and extracts (at the expense of the party requesting such
copies or extracts) therefrom and to discuss the Indenture Trustee’s affairs and actions, as such affairs and actions relate to the Indenture Trustee’s duties with respect to the Notes, with the Indenture Trustee’s officers and
employees responsible for carrying out the Indenture Trustee’s duties with respect to the Notes. 
  
 (h) The Indenture Trustee shall, and hereby agrees that it will, perform all of the obligations and duties required of it under the Sale and Servicing
Agreement. 
  
 (i) The Indenture Trustee shall, and hereby agrees
that it will, hold the Policy in trust, and will hold any proceeds of any claim on the Policy in trust solely for the use and benefit of the Noteholders. 
  
 (j) In no event shall JPMorgan Chase Bank, in any of its capacities hereunder, be deemed to have assumed any duties of the Owner Trustee under the
Delaware Statutory Trust Statute, common law, or the Trust Agreement. 
  
 (k) The Indenture Trustee shall have no duty (A) to see to any recording, filing, or depositing of this Indenture 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 Property or (D) to confirm or verify the contents of any reports or certificates of the Servicer delivered to the Indenture
Trustee pursuant to this Indenture reasonably believed by the Indenture Trustee to be genuine and to have been signed or presented by the proper party or parties. 
  
 SECTION 6.2. Rights of Indenture Trustee. 
  
 (a) The Indenture Trustee may conclusively rely on any resolution, opinion of counsel, officer’s certificate,
certificate of auditors, servicing officer’s or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document reasonably believed by it to be genuine and to have been
signed or presented by the proper person. The Indenture Trustee need not investigate any fact or matter stated in such document. 
  

 26 

 (b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate or an Opinion of Counsel. The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on the Officer’s Certificate or Opinion of Counsel. 
  
 (c) The Indenture Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents or attorneys or a custodian or nominee and the Indenture Trustee shall not be liable for the negligence of such agents, attorneys, custodians or nominees appointed (i) with due
care and (ii) with the consent of the Insurer, which consent shall not be unreasonably withheld, delayed or denied. 
  
 (d) The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, however, that the Indenture Trustee’s conduct does not constitute willful misconduct, negligence or bad faith. 
  
 (e) The Indenture Trustee may consult with counsel of its selection, and the advice or opinion of counsel with respect to legal matters relating to this
Indenture and the Notes shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel.

  
 (f) The Indenture Trustee shall be under no obligation to
institute, conduct or defend any litigation under this Indenture or in relation to this Indenture, at the request, order or direction of any of the Holders of Notes or the Controlling Party, pursuant to the provisions of this Indenture, unless such
Holders of Notes or the Controlling Party shall have offered to the Indenture Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that may be incurred therein or thereby; provided, however,
that the Indenture Trustee shall, upon the occurrence of a Rapid Amortization Event of which a Responsible Officer of the Indenture Trustee shall have received notice or have actual knowledge (that has not been cured or waived), exercise the rights
and powers vested in it by this Indenture or the Sale and Servicing Agreement with reasonable care and skill. 
  
 (g) The Indenture Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing to do so by the Insurer or by the Holders of Notes evidencing not less than a majority of the Outstanding Amount
thereof; provided, however, that if the payment within a reasonable time to the Indenture 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 Indenture
Trustee, not reasonably assured to the Indenture Trustee by the security afforded to it by the terms of this Indenture or the Sale and Servicing Agreement, the Indenture Trustee may require indemnity reasonably satisfactory to it against such cost,
expense or liability as a condition to so proceeding; the reasonable expense of every such examination shall be paid by the Person making such request, or, if paid by the Indenture Trustee shall be reimbursed by the Person making such request upon
demand. 
  

 27 

 (h) The Indenture Trustee shall not be accountable, shall have no liability and makes no representation
as to any acts or omissions hereunder of the Servicer until such time as the Indenture Trustee may be required to act as Servicer. 
  
 (i) The right of the Indenture Trustee to perform any discretionary act enumerated in this Indenture shall not be construed as a duty, and the Indenture
Trustee shall not be answerable for other than its negligence or willful misconduct in the performance of such act. 
  
 SECTION 6.3. Individual Rights of Indenture Trustee. The Indenture Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it would have if it were not Indenture Trustee. Any Note Paying Agent, Note Registrar, co-registrar or co-paying agent may do the same with like rights. However,
the Indenture Trustee must comply with Sections 6.11 and 6.12. 
  
 SECTION 6.4. Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture, the Trust Property or the Notes, it shall not be
accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be responsible for any statement of the Issuer in the Indenture or in any document issued in connection with the sale of the Notes or in the Notes other than the
Indenture Trustee’s certificate of authentication. 
  
 SECTION 6.5. Notice of Rapid Amortization Events and Events of Servicing Termination. If a Rapid Amortization Period or an Event of Servicing Termination occurs and is continuing and if it is either known by, or written notice of the
existence thereof has been delivered to, a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall (i) promptly mail to the Insurer notice of such event, and (ii) within 90 days after such knowledge or notice occurs, mail to each
Noteholder notice of such event. Except in the case of a default in payment of principal of or interest on any Note, the Indenture Trustee may withhold the notice to the Noteholders if and so long as one of its Responsible Officers in good faith
determines that withholding the notice is in the interests of Noteholders; provided that the Indenture Trustee shall not withhold any such notice to the Insurer. 
  
 SECTION 6.6. Reports by Indenture Trustee to Holders. Upon written request, the Servicer shall on behalf of the
Issuer deliver to each Noteholder such information as may be reasonably required to enable such Holder to prepare its federal and state income tax returns required by law. 
  
 SECTION 6.7. Compensation and Indemnity. 
  
 (a) Pursuant to Section 8.7 and subject to Section 6.10 herein, the Issuer shall, or shall cause the Servicer to, pay to the
Indenture Trustee from time to time compensation as agreed to in writing between the Servicer and the Indenture Trustee for its services. The Indenture Trustee’s compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall or shall cause the Servicer to reimburse the Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by it, including, but not limited to, costs of collection, in addition to the compensation for
its services. Such expenses 
  

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 shall include the reasonable compensation and expenses, disbursements and advances of the Indenture Trustee’s
agents, counsel, accountants and experts. The Issuer shall or shall cause the Servicer to indemnify the Indenture Trustee and its respective officers, directors, employees and agents against any and all loss, liability or expense (including
attorneys’ fees and expenses) incurred by each of them in connection with the acceptance or the administration of this trust and the performance of its duties hereunder or under any other Basic Document. The Indenture Trustee shall notify the
Issuer and the Servicer promptly of any claim for which it may seek indemnity. Failure by the Indenture Trustee to so notify the Issuer and the Servicer shall not relieve the Issuer of its obligations hereunder or the Servicer of its obligations
under Article VIII of the Sale and Servicing Agreement. The Issuer shall or shall cause the Servicer to defend the claim, the Indenture Trustee may have separate counsel and the Issuer shall or shall cause the Servicer to pay the fees and expenses
of such counsel. Neither the Issuer nor the Servicer need reimburse any expense or indemnify against any loss, liability or expense incurred by the Indenture Trustee through the Indenture Trustee’s own willful misconduct, negligence or bad
faith. Anything is this Indenture to the contrary notwithstanding, in no event shall the Indenture Trustee be liable for special, indirect or consequential loss or damage of any kind, whatsoever (including but not limited to lost profits), even if
the Indenture Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
  
 (b) The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section shall survive the discharge of this Indenture. Notwithstanding
anything else set forth in this Indenture or the Basic Documents, the Indenture Trustee agrees that the obligations of the Issuer (but not the Servicer) to the Indenture Trustee hereunder and under the Basic Documents shall be recourse to the Trust
Property only and specifically shall not be recourse to the assets of the Issuer or any Noteholder. In addition, the Indenture Trustee agrees that its recourse to the Issuer, the Trust Property and the Sponsor shall be limited to the right to
receive the distributions referred to in Section 8.7 herein. 
  
 SECTION 6.8. Replacement of Indenture Trustee. The Indenture Trustee may resign at any time by so notifying the Issuer and the Insurer by written notice. Upon receiving such notice of resignation, the Issuer shall promptly appoint a
successor Indenture Trustee (approved in writing by the Insurer, so long as such approval is not unreasonably withheld) by written instrument, in duplicate, one copy of such instrument shall be delivered to the resigning Indenture Trustee (who shall
deliver a copy to the Servicer and the Insurer) and one copy to the successor Indenture Trustee; provided, however, that any such successor Indenture Trustee shall be subject to the prior written approval of the Servicer, which approval shall
not be unreasonably withheld, delayed or denied. The Issuer may, and at the request of the Insurer shall, remove the Indenture Trustee, if: 
  
 (i) the Indenture Trustee fails to comply with Section 6.11; 
  
 (ii) a court having jurisdiction in the premises in respect of the Indenture Trustee in an involuntary case
or proceeding under federal or state banking or bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, shall have entered a decree or order granting relief or
appointing a receiver, liquidator, assignee, custodian, trustee, conservator, sequestrator (or similar official) for the Indenture Trustee or for any substantial part of the Indenture Trustee’s property, or ordering the winding-up or
liquidation of the Indenture Trustee’s affairs; 
  

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 (iii) an involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future federal or state bankruptcy, insolvency or similar law is commenced with respect to the Indenture Trustee and such case is not dismissed within 60 days; 
  
 (iv) the Indenture Trustee commences a voluntary case under
any federal or state banking or bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, or consents to the appointment of or taking possession by a receiver, liquidator,
assignee, custodian, trustee, conservator, sequestrator (or other similar official) for the Indenture Trustee or for any substantial part of the Indenture Trustee’s property, or makes any assignment for the benefit of creditors or fails
generally to pay its debts as such debts become due or takes any corporate action in furtherance of any of the foregoing; 
  
 (v) the Indenture Trustee otherwise becomes incapable of acting; or 
  
 (vi) the Indenture Trustee materially breaches any covenant or obligation under the Basic Documents.

  
 Additionally, the Issuer shall remove the Indenture Trustee at
the request of the Insurer. 
  
 If the Indenture Trustee resigns
or is removed or if a vacancy exists in the office of Indenture Trustee for any reason (the Indenture Trustee in such event being referred to herein as the retiring Indenture Trustee), the Issuer shall promptly appoint a successor Indenture Trustee
acceptable to the Insurer. If the Issuer fails to appoint such a successor Indenture Trustee within 30 days, the Insurer may appoint a successor Indenture Trustee. 
  
 A successor Indenture Trustee shall deliver a written acceptance of its appointment to the retiring Indenture Trustee, to
the Insurer and to the Issuer. Thereupon the resignation or removal of the retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the rights, powers and duties of the retiring Indenture Trustee under
this Indenture. The successor Indenture Trustee shall mail a notice of its succession to Noteholders. The retiring Indenture Trustee shall promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee. 

 
 If a successor Indenture Trustee does not take office within 30 days after
the retiring Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer, the Insurer, or the Holders of a majority in Outstanding Amount of the Notes may, at the expense of the Servicer, petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee acceptable to the Insurer. 
  
 If the Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition any court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee
acceptable to the Insurer. 
  

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 Any resignation or removal of the Indenture Trustee and appointment of a successor Indenture Trustee
pursuant to any of the provisions of this Section shall not become effective until acceptance of appointment by the successor Indenture Trustee pursuant to Section 6.8 and payment of all fees and expenses owed to the outgoing Indenture Trustee.

  
 Notwithstanding the replacement of the Indenture Trustee
pursuant to this Section, the Issuer’s and the Servicer’s indemnity obligations under Section 6.7 shall continue for the benefit of the retiring Indenture Trustee and the Servicer shall pay any amounts owing to the Indenture Trustee.

  
 SECTION 6.9. Successor Indenture Trustee by Merger. If
the Indenture Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Indenture Trustee, provided that such entity meets the requirements of Section 6.11 hereunder and is otherwise acceptable to the Insurer (unless an Insurer Default has occurred and is continuing). The
Indenture Trustee shall provide Insurer and the Servicer with at least 30 days notice of any such transaction. 
  
 In case at the time such successor or successors by merger, conversion or consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the certificate of authentication of any predecessor trustee, and deliver such Notes so authenticated; and in case
at that time any of the Notes shall not have been authenticated, any successor to the Indenture Trustee may authenticate such Notes either in the name of any predecessor hereunder or in the name of the successor to the Indenture Trustee; and in all
such cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture. 
  
 SECTION 6.10. Appointment of Co-Indenture Trustee or Separate Indenture Trustee. 
  
 (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting any legal requirement of
any jurisdiction in which any part of the Trust may at the time be located, the Indenture Trustee, with the consent of the Insurer, which consent shall not be unreasonably withheld, delayed or denied, shall have the power and may execute and deliver
all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or separate trustees, of all or any part of the Trust, and to vest in such Person or Persons, in such capacity and for the benefit of the
Noteholders, such title to the Trust, or any part hereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable. 
  
 (b) Every separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions: 
  
 (i) all rights, powers, duties and obligations conferred or imposed upon the Indenture Trustee shall be conferred or imposed upon and exercised or 
  

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 performed by the Indenture Trustee and such separate trustee or co-trustee jointly (it being understood
that such separate trustee or co-trustee is not authorized to act separately without the Indenture Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the
Indenture Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Trust or any portion thereof in any such jurisdiction) shall be
exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Indenture Trustee; 
  
 (ii) no trustee hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder, including acts or
omissions of predecessor or successor trustees; and 
  
 (iii) the Indenture Trustee and the Servicer acting jointly may at any time accept the resignation of or remove any separate trustee or co-trustee except that following the occurrence of an Event of Servicing Termination, the Indenture
Trustee acting alone may accept the resignation of or remove any separate trustee or co-trustee. 
  
 (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture and the conditions of this Article VI. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this Indenture,
specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the Indenture Trustee. Every such instrument shall be filed with the Indenture Trustee. 
  
 (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Indenture on its behalf and in its name. If any separate trustee or co-trustee
shall die, dissolve, become insolvent, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee. 
  
 (e) The Servicer
shall be responsible for the fees of any co-trustee or separate trustee appointed hereunder. 
  
 (f) No separate trustee or co-trustee hereunder shall be required to meet the terms of eligibility as an indenture trustee under Section 6.11 hereunder and no notice to the Noteholders shall be required under Section
11.05. 
  
 SECTION 6.11. Eligibility; Disqualification. The
Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a). The Indenture Trustee shall have a combined 
  

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 capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. The
Indenture Trustee shall provide copies of such reports to the Insurer upon request. The Indenture Trustee shall comply with TIA § 310(b), including the optional provision permitted by the second sentence of TIA § 310(b)(9); provided,
however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities of the Issuer are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are
met. 
  
 SECTION 6.12. Preferential Collection of Claims
Against Issuer. The Indenture Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). An Indenture Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated. 
  
 SECTION 6.13. Appointment and Powers.
Subject to the terms and conditions hereof, each of the Issuer Secured Parties hereby appoints JPMorgan Chase Bank as the Indenture Trustee with respect to the Collateral, and JPMorgan Chase Bank hereby accepts such appointment and agrees to act as
Indenture Trustee with respect to the Trust Property for the Issuer Secured Parties, to maintain custody and possession of such Trust Property (except as otherwise provided hereunder) and to perform the other duties of the Indenture Trustee in
accordance with the provisions of this Indenture and the other Basic Documents. Each Issuer Secured Party hereby authorizes the Indenture Trustee to take such action on its behalf, and to exercise such rights, remedies, powers and privileges
hereunder, as the Controlling Party may direct and as are specifically authorized to be exercised by the Indenture Trustee by the terms hereof, together with such actions, rights, remedies, powers and privileges as are reasonably incidental thereto.
The Indenture Trustee shall act upon and in compliance with the written instructions delivered to it pursuant to this Indenture promptly following receipt of such written instructions; provided that the Indenture Trustee shall not act in
accordance with any instructions (i) which are not authorized by, or in violation of the provisions of, this Indenture or (ii) for which the Indenture Trustee has not received reasonable indemnity. Receipt of such instructions shall not be a
condition to the exercise by the Indenture Trustee of its express duties hereunder, except where this Indenture provides that the Indenture Trustee is permitted to act only following and in accordance with such instructions. 
  
 SECTION 6.14. Performance of Duties. Subject to Section 6.1, the
Indenture Trustee (a) shall have no duties or responsibilities except those expressly set forth in this Indenture and the other Basic Documents to which the Indenture Trustee is a party or as directed by the Controlling Party in accordance with this
Indenture and (b) shall not be required to take any discretionary actions hereunder except at the written direction and with the indemnification of the Controlling Party. The Indenture Trustee shall, and hereby agrees that it will, perform all of
the duties and obligations required of it under the Sale and Servicing Agreement. 
  
 SECTION 6.15. Limitation on Liability. Neither the Indenture Trustee nor any of its directors, officers, employees and agents shall be liable for any action taken or omitted to be taken by it or them hereunder,
or in connection herewith, except that the Indenture Trustee shall be liable for its negligence, bad faith or willful misconduct; nor shall the Indenture Trustee be responsible for the validity, effectiveness, value, sufficiency or enforceability
against the Issuer of this Indenture or any of the Trust Property (or any part thereof). 
  

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 SECTION 6.16. Reliance Upon Documents. In the absence of negligence, bad faith or willful
misconduct on its part, the Indenture Trustee shall be entitled to conclusively rely on any communication, instrument, paper or other document reasonably believed by it to be genuine and correct and to have been signed or sent by the proper Person
or Persons and shall have no liability in acting, or omitting to act, where such action or omission to act is in reasonable reliance upon any statement or opinion contained in any such document or instrument. 
  
 SECTION 6.17. Representations and Warranties of the Indenture Trustee.
The Indenture Trustee represents and warrants to the Issuer and to each Issuer Secured Party as follows: 
  
 (a) Due Organization. The Indenture Trustee is a New York banking corporation, duly organized, validly existing and in good standing under the laws
of the State of New York and is duly authorized and licensed under applicable law to conduct its business as presently conducted. 
  
 (b) Corporate Power. The Indenture Trustee has all requisite right, power and authority to execute and deliver this Indenture and to perform all of
its duties as the Indenture Trustee hereunder. 
  
 (c) Due
Authorization. The execution and delivery by the Indenture Trustee of this Indenture and the other Basic Documents to which it is a party, and the performance by the Indenture Trustee of its duties hereunder and thereunder, have been duly
authorized by all necessary corporate proceedings, are required for the valid execution and delivery by the Indenture Trustee, or the performance by the Indenture Trustee, of this Indenture and such other Basic Documents. 
  
 SECTION 6.18. Waiver of Setoffs. The Indenture Trustee hereby
expressly waives any and all rights of setoff that the Indenture Trustee may otherwise at any time have under applicable law with respect to any Account and agrees that amounts in the Accounts shall at all times be held and applied solely in
accordance with the provisions hereof. 
  
 SECTION 6.19.
Control by the Controlling Party. The Indenture Trustee shall comply with notices and instructions given by the Issuer only if accompanied by the written consent of the Controlling Party. The Indenture Trustee shall act upon and comply with
notices and instructions given by the Controlling Party alone. 
  
 SECTION 6.20. Indenture Trustee May Enforce Claims Without Possession of Notes. All rights of action and claims under this Indenture or the Notes may be prosecuted and enforced by the Indenture Trustee without the possession of any
of the Notes or the production thereof in any proceeding relating thereto, and such proceeding instituted by the Indenture Trustee shall be brought in its own name or in its capacity as Indenture Trustee. Any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursement and advances of the Indenture Trustee, its agents and counsel, be for the ratable benefit of the Noteholders in respect of which such judgment has been recovered.

  

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 SECTION 6.21. Suits for Enforcement. In case an Event of Servicing Termination or other default by
the Servicer or the Sponsor hereunder shall occur and be continuing, the Controlling Party may proceed to protect and enforce its rights and the rights of the Noteholders under this Indenture by a suit, action or proceeding in equity or at law or
otherwise, whether for the specific performance of any covenant or agreement contained in this Indenture or in aid of the execution of any power granted in this Indenture or for the enforcement of any other legal, equitable or other remedy, as the
Indenture Trustee, being advised by counsel, shall deem most effectual to protect and enforce any of the rights of the Indenture Trustee and the Noteholders. 
  
 SECTION 6.22. Mortgagor Claims. In connection with any offset defenses, or affirmative claim for recovery, asserted in legal actions brought by
Mortgagors under one or more Mortgage Loans based upon provisions therein or upon other rights or remedies arising from any requirements of law applicable to the Mortgage Loans: 
  
 (a) The Indenture Trustee is the holder of the Mortgage Loans only as trustee on behalf of the holders of the Notes and the
Insurer, and not as a principal or in any individual or personal capacity. 
  
 (b) The Indenture Trustee shall not be personally liable for, or obligated to pay Mortgagors, any affirmative claims asserted thereby, or responsible to holders of the Notes for any offset defense amounts applied
against Mortgage Loan payments, pursuant to such legal actions. 
  
 (c) The Indenture Trustee will pay, solely from the Trust Estate, affirmative claims for recovery by Mortgagors only pursuant to final judicial orders or judgments, or judicially-approved settlement agreements, resulting from such legal
actions. 
  
 (d) The Indenture Trustee will comply with judicial
orders and judgments which require its actions or cooperation in connection with Mortgagors’ legal actions to recover affirmative claims against holders of the Notes. 
  
 (e) The Indenture Trustee will cooperate with and assist the Servicer, the Insurer, the Issuer, the Sponsor, or holders of
the Notes in their defense of legal actions by Mortgagors to recover affirmative claims if such cooperation and assistance is not contrary to the interests of the Indenture Trustee as a party to such legal actions and if the Indenture Trustee is
satisfactorily indemnified for all liability, costs and expenses (including attorneys’ fees and expenses) arising therefrom. 
  
 (f) The Issuer and Servicer hereby agree to indemnify, hold harmless and defend the Indenture Trustee from and against any and all liability, loss, costs
and expenses (including attorneys’ fees and expenses) of the Indenture Trustee resulting from any affirmative claims for recovery asserted or collected by Mortgagors under the Mortgage Loans. 
  

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 ARTICLE VII 
  
 Noteholders’ Lists and Reports 
  
 SECTION 7.1. Issuer To Furnish To Indenture Trustee Names and Addresses of Noteholders. The Issuer will furnish or cause to be furnished to the
Indenture Trustee (a) not more than five days after the earlier of (i) each Record Date and (ii) three months after the last Record Date, a list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of the Holders
as of such Record Date, (b) at such other times as the Indenture Trustee may request in writing, within 30 days after receipt by the Issuer of any such request, a list of similar form and content as of a date not more than 10 days prior to the time
such list is furnished; provided, however, that so long as the Indenture Trustee is the Note Registrar, no such list shall be required to be furnished. The Indenture Trustee or, if the Indenture Trustee is not the Note Registrar, the Issuer
shall furnish to the Insurer or the Issuer in writing upon their written request and at such other times as the Insurer or the Issuer may request a copy of the list. 
  
 SECTION 7.2. Preservation of Information; Communications to Noteholders. 
  
 (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders contained in the most recent list furnished to the Indenture Trustee as provided in Section 7.1 and the names and addresses of Holders received by the Indenture Trustee in its capacity
as Note Registrar. The Indenture Trustee may destroy any list furnished to it as provided in such Section 7.1 upon receipt of a new list so furnished. 
  
 (b) Noteholders may communicate with other Noteholders with respect to their rights under this Indenture or under the Notes. 
  
 (c) The Issuer, the Indenture Trustee and the Note Registrar shall have the
protection of TIA § 312(c). 
  
 SECTION 7.3. Reports by
Issuer. 
  
 (a) The Issuer shall: 
  
 (i) file with the Indenture Trustee (with a copy to the
Insurer), within 15 days after the Issuer is required to file the same with the Commission, copies of the annual reports and copies of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission
may from time to time by rules and regulations prescribe) which the Issuer may be required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act; 
  
 (ii) file with the Indenture Trustee and the Commission in accordance with rules and regulations prescribed
from time to time by the Commission such additional information, documents and reports with respect to compliance by the Issuer with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations;
and 
  

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 (iii) supply to the Indenture Trustee (and the Indenture Trustee shall transmit by mail
to all Noteholders described in TIA § 313(c)) (with a copy to the Insurer) such summaries of any information, documents and reports required to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section 7.3(a) as may be required by
rules and regulations prescribed from time to time by the Commission. 
  
 (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer shall end on December 31 of each year. 
  
 SECTION 7.4. Reports by Indenture Trustee. If required by TIA § 313(a), within 60 days after each December 31, beginning with December 31,
2004, the Indenture Trustee shall mail to each Noteholder (with a copy to the Insurer) as required by TIA § 313(c) a brief report dated as of such date that complies with TIA § 313(a). The Indenture Trustee also shall comply with TIA
§ 313(b). 
  
 A copy of each report at the time of its
mailing to Noteholders shall be filed by the Indenture Trustee with the Commission and each stock exchange, if any, on which the Notes are listed. The Issuer shall notify the Indenture Trustee if and when the Notes are listed on any stock exchange
or the delisting thereof. 
  
 ARTICLE VIII 
  
 Payments and Statements to Noteholders and Residual Noteholders;

 Accounts, Disbursements and Releases 
  
 SECTION 8.1. Collection of Money. Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery of, and shall
receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the Indenture Trustee pursuant to this Indenture and the Sale and Servicing
Agreement. The Indenture Trustee shall apply all such money received by it as provided in the Servicing Certificate, this Indenture and the Sale and Servicing Agreement. Except as otherwise expressly provided in this Indenture or in the Sale and
Servicing Agreement, if any default occurs in the making of any payment or performance under any agreement or instrument that is part of the Trust Property, the Indenture Trustee may, with the consent of the Insurer (so long as no Insurer Default
has occurred and is continuing, in which case, with the consent of the majority of the Noteholders), or shall at the direction of the Insurer (so long as no Insurer Default has occurred and is continuing, in which case, at the direction of the
majority of the Noteholders), take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate proceedings. 
  
 SECTION 8.2. Release of Trust Property. 
  
 (a) Subject to Section 8.11 and the payment of its fees and expenses pursuant to Section 6.7, the Indenture Trustee may, and
when required by the Issuer and the provisions of this Indenture shall, execute instruments to release property from the lien of this Indenture, in a manner and under circumstances that are not inconsistent with the provisions of this Indenture or

  

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 the Sale and Servicing Agreement. In the event that the fair value of property to be released from the lien of this
Indenture on any date, together with the fair value of property previously released during the then-current calendar year, equals or exceeds 10% of the Note Principal Balance, in addition to all other actions required to be taken pursuant to this
Indenture, the Sale and Servicing Agreement or otherwise in connection with such release, an Independent Certificate in accordance with TIA §§ 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1 shall also be delivered
to the Indenture Trustee. No party relying upon an instrument executed by the Indenture Trustee as provided in this Article VIII shall be bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions
precedent or see to the application of any monies. 
  
 (b) The
Indenture Trustee shall, at such time as there are no Notes outstanding and all sums due the Indenture Trustee pursuant to Section 6.7, and to the Insurer pursuant to the Insurance Agreement have been paid and the Policy has been cancelled and
returned to the Insurer, release any remaining portion of the Trust Property that secured the Notes from the lien of this Indenture and release to the Issuer or any other Person entitled thereto any funds then on deposit in the Accounts. The
Indenture Trustee shall release property from the lien of this Indenture pursuant to this Section 8.2(b) only upon receipt by the Indenture Trustee and the Insurer of an Issuer Request accompanied by an Officer’s Certificate, an Opinion of
Counsel and (if required by the TIA) Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1. 
  
 SECTION 8.3. Establishment of Distribution Account. The Sponsor shall cause to be established, and the Indenture
Trustee shall maintain, at the Corporate Trust Office of the Indenture Trustee, a Distribution Account to be held by the Indenture Trustee in the name of the Trust for the benefit of the Noteholders and the Insurer, as their interests may appear.
Each account shall be an Eligible Account. The Indenture Trustee shall hold funds in the Distribution Account uninvested. All income and gain realized from the Indenture Trustee’s holding of the funds in the Distribution Account shall be for
the benefit of the Indenture Trustee and shall be subject to its withdrawal from time to time. Any withdrawal of funds from the Distribution Account by the Indenture Trustee shall be made pursuant to Section 3.03 of the Sale and Servicing Agreement.

  
 SECTION 8.4. The Policy. 
  
 (a) By the close of business on the Business Day preceding each
Determination Date the Indenture Trustee shall determine from the Servicing Certificate with respect to the immediately following Payment Date, the Deficiency Amount, if any. 
  
 (b) If the Indenture Trustee determines pursuant to paragraph (a) above that a Deficiency Amount would exist, the Indenture
Trustee shall complete a Notice in the form of Exhibit A to the Policy and submit such notice to the Insurer no later than 12:00 noon New York City time on the related Determination Date preceding such Payment Date as a claim for the payment of an
Insured Amount in an amount equal to the Deficiency Amount. 
  
 (c) The Indenture Trustee shall establish an Eligible Account (which may be a sub-account of the Distribution Account) for the benefit of the Noteholders and the Insurer 
  

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 referred to herein as the “Policy Payment Account” over which the Indenture Trustee shall have exclusive
control and sole right of withdrawal. The Indenture Trustee shall deposit upon receipt any amount paid under the Policy into the Policy Payment Account and distribute such amount only for purposes of payment to the Noteholders of the Insured Amount
for which a claim was made and such amount may not be applied to satisfy any costs, expenses or liabilities of the Sponsor, the Servicer, the Indenture Trustee or the Trust. Amounts paid under the Policy, to the extent needed to pay the Insured
Amount, shall be disbursed by the Indenture Trustee to the Noteholders in accordance with Section 8.7(b). It shall not be necessary for such payments to be made by check or wire transfers separate from checks or wire transfers used to pay the
Insured Amount with other funds available to make such payment. However, the amount of any payment of principal or interest on the Notes to be paid from funds transferred from the Policy Payment Account shall be noted as provided in subsection (d)
of this Section 8.4 in the Note Register and in the Indenture Trustee’s Statement to Noteholders. Funds held in the Policy Payment Account shall not be invested. Any funds remaining in the Policy Payment Account on the first Business Day
following a Payment Date shall be returned to the Insurer pursuant to the written instructions of the Insurer by the end of such Business Day. 
  
 (d) The Indenture Trustee shall keep a complete and accurate record of the amount of interest and principal paid in respect of any Note from moneys
received under the Policy. The Insurer shall have the right to inspect such records at reasonable times during normal business hours upon one (1) Business Day’s prior written notice to the Indenture Trustee. 
  
 (e) The Indenture Trustee shall, upon retirement of the Notes, furnish to the
Insurer a notice of such retirement, and, upon retirement of the Notes, and, upon retirement of the Notes and the expiration of the term of the Policy surrender the Policy to the Insurer for cancellation. 
  
 SECTION 8.5. [Reserved] 
  
 SECTION 8.6. [Reserved] 
  
 SECTION 8.7. Priority of Distributions. 
  
 (a) The Indenture Trustee shall deposit to the Distribution Account, without
duplication, upon receipt, (i) the proceeds of any liquidation of the assets of the Trust and (ii) Interest Collections and Principal Collections remitted by the Servicer, together with any Substitution Amounts, and any Loan Purchase Price amounts
received by the Indenture Trustee. 
  
 (b) With respect to the
Distribution Account, on each Payment Date, from amounts then on deposit therein and based solely on the information contained in the Servicing Certificate, the Indenture Trustee shall make the following allocations, disbursements and transfers in
the following order of priority, and each such allocation, transfer and disbursement shall be treated as having occurred only after all preceding allocations, transfers and disbursements have occurred: 
  
 (i) to the Indenture Trustee, the Indenture Trustee Fee then
due; 
  

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 (ii) to the Insurer, the Premium Amount with respect to the Class A Notes for such
Payment Date; 
  
 (iii) to the Owner Trustee, the
Owner Trustee Fee then due; 
  
 (iv)
concurrently, to the Holders of the Class A Notes, the Interest Payment Amount for such Payment Date, and during the Managed Amortization Period, to the Sponsor, interest at the Class A Note Rate for the related Interest Accrual Period on any
Additional Balance Contributed Amount for such Payment Date; 
  
 (v) on each Payment Date during the Managed Amortization Period, to the Sponsor, from Principal Collections, an amount equal to any Additional Balance Contributed Amount for such Payment Date; 
  
 (vi) to the Holders of the Class A Notes as a distribution
of principal, the Principal Payment Amount for such Payment Date; 
  
 (vii) with respect to any Payment Date, after the first Payment Date, to the Holders of the Class A Notes as a distribution of principal, the Overcollateralization Deficit for such Payment Date, if any; 
  
 (viii) to the Insurer, the Reimbursement Amount, if any,
then due to it, including interest thereon; 
  
 (ix) with respect to any Payment Date after the first Payment Date, to the Holders of the Class A Notes as a distribution of principal, the Accelerated Principal Payment for such Payment Date, if any; 
  
 (x) pari passu (a) to the Servicer, reimbursement for
amounts reimbursable to the Servicer pursuant to Section 3.03 and Section 5.03 of the Sale and Servicing Agreement to the extent not previously reimbursed and (b) to the Indenture Trustee, up to a maximum of $5,000 on any Payment Date to pay certain
amounts that may be required to be paid to the Indenture Trustee with respect to its or the Custodian’s preparation and recording of assignments of mortgages (which amounts were not previously paid pursuant to clause (i) above or reimbursed
pursuant to the Sale and Servicing Agreement); 
  
 (xi) to the Holders of the Class A Notes, the current Deferred Interest with respect to the Class A Notes and any unpaid Deferred Interest from prior Payment Dates with interest thereon at the Class A Formula Note Rate; 
  
 (xii) pari passu, (a) to the Indenture Trustee, any
unpaid fees and unreimbursed expenses due and owing to the Indenture Trustee and not otherwise paid pursuant to clause (i) or (x) above; and (b) to the Owner Trustee, any unpaid fees and unreimbursed expenses due and owing to the Owner Trustee and
not otherwise paid pursuant to clause (iii) above; and 
  

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 (xiii) to the Owner Trustee, any amounts remaining in the Distribution Account, for
payment to the Residual Certificateholders as set forth in Section 4.11 of the Trust Agreement. 
  
 (c) Notwithstanding Section 8.7(b) above and with respect to the first Payment Date only, any amount of Excess Cashflow on such date shall be paid to
Terwin Advisors LLC. 
  
 SECTION 8.8. Statements to
Noteholders. The Indenture Trustee (based upon information received from the Servicer) will make available via its internet website on each Payment Date concurrently with each distribution to the Noteholders, to the Servicer, the Noteholders and
the Insurer, the Servicing Certificate (excluding any information regarding any distribution information relating to the Residual Certificates) setting forth among other items with respect to the Notes: 
  
 (i) the amount being distributed to the Notes; 

 
 (ii) the amount of interest included in such distribution
and the Note Rate; 
  
 (iii) the amount, if any,
of overdue accrued interest included in such distribution (and the amount of interest thereon); 
  
 (iv) the amount, if any, of the remaining overdue accrued interest after giving effect to such distribution; 
  
 (v) the amount, if any, of principal included in such
distribution; 
  
 (vi) the Servicing Fee for such
Payment Date; 
  
 (vii) the related principal
balance, after giving effect to such distribution; 
  
 (viii) the related initial Pool Balance and the related Pool Balance as of the end of the preceding Collection Period; 
  
 (ix) the Indenture Trustee Fee and Owner Trustee Fee for such Payment Date; 
  
 (x) the number and aggregate Principal Balance of Mortgage Loans that were (A) delinquent (exclusive of
Mortgage Loans in bankruptcy or foreclosure or properties acquired by the Trust by deed in lieu of foreclosure) (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 to 119 days, (4) 120 to 149 days, (5) 150 to 179 days, (6) 180 to 269 days and (7) 270 or
more days, (B) in foreclosure, (C) in bankruptcy and (D) properties acquired by the Trust by deed in lieu of foreclosure; 
  

 41 

 (xi) (A) cumulative losses as a percentage of original Pool Balance, (B) cumulative
losses as a percentage of current Pool Balance and (C) the twelve-month rolling average of cumulative losses as a percentage of original Pool Balance; 
  
 (xii) the three-month rolling average of Mortgage Loans that are 60 days or more delinquent; 
  
 (xiii) the book value of any real estate which is acquired
by the Trust through foreclosure or grant of deed in lieu of foreclosure; 
  
 (xiv) the amount of any draws on the Policy; 
  
 (xv) whether the related Payment Date will fall during the Managed Amortization Period or the Rapid Amortization Period; 
  
 (xvi) whether a Rapid Amortization Event has occurred during the related Collection Period; 
  
 (xvii) the amount, if any, of any Relief Act Shortfalls
incurred during the related Collection Period; 
  
 (xviii) the outstanding principal balance of the three Mortgage Loans in with the largest outstanding principal balance; 
  
 (xix) whether an Event of Servicing Termination or an Insurer Default has occurred; 
  
 (xx) the amount, if any, of Additional Balances created
during the related Collection Period; 
  
 (xxi)
the amount, if any, of the Additional Balance Contributed Amount for such Payment Date, and the amount of interest on such amount; 
  
 (xxii) whether the Managed Amortization Period has ended and the Rapid Amortization Period has begun; 
  
 (xxiii) the Specified Overcollateralization Amount;

  
 (xxiv) the Overcollateralization Amount,
after giving effect to payments on such Payment Date; 
  
 (xxv) the amount of any servicing advances made by the Servicer during the related Collection Period; and 
  
 (xxvi) the amount, if any, of interest shortfalls relating to prepayments during the related Collection Period. 
  

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 In the case of information furnished pursuant to clauses (ii), (iii), (iv) and (v) above, the amounts
shall be expressed as a dollar amount per Class A Note with a $1,000 denomination. 
  
 The Indenture Trustee will make the reports referred to above (and, at its option, any additional files containing the same information in an alternative format) available each month to Noteholders, the Insurer, the
Sponsor and the Servicer via the Indenture Trustee’s internet website, which is presently located at www.jpmorgan.com/sfr. Any such persons that are unable to use this website are entitled to have a paper copy of such information sent to them
via first class mail by calling the Indenture Trustee at (800) 275-2048. If the Insurer requests a paper copy of such information, a paper copy shall be sent to the Insurer each month without the need for any additional request. The Indenture
Trustee shall have the right to change the manner in which the reports referred to in this section are distributed in order to make such distribution more convenient and/or more accessible to the Noteholders, the Insurer, the Sponsor and the
Servicer. The Indenture Trustee will provide timely and adequate notification to all such parties regarding any such change to the method of distribution of the reports. 
  
 The Indenture Trustee shall also send a copy of each such report to the Class B Certificateholders, which, in addition to
the information listed above, shall also include (i) the Class Principal Balance of each class of Residual Certificates and (ii) the amount distributable, if any, to each class of Residual Certificates for such Payment Date. 
  
 Each report provided to the Insurer (either via the Indenture Trustee’s
website or a paper copy) pursuant to this Section 8.8 shall additionally report: (a) the total amount of funds received as Insured Amounts or Preference Amounts for such Payment Date, separately stating the portions used to pay principal and
interest components of the Deficiency Amount; (b) the cumulative amount of Insured Amounts or Preference Amounts paid by the Insurer through such Payment Date; and (c) other information as the Insurer may reasonably request from time to time.

  
 Within 60 days after the end of each calendar year, the
Servicer shall prepare or cause to be prepared and shall forward to the Indenture Trustee the information set forth in clauses (i) and (ii) above aggregated for such calendar year. Such obligation of the Servicer shall be deemed to have been
satisfied to the extent that substantially comparable information shall be provided by the Servicer or a Note Paying Agent pursuant to any requirements of the Code. 
  
 SECTION 8.9. Indenture Trustee Annual Certification. On or before January 31 of each year, the Manager, on behalf of
the Trust, shall provide the Indenture Trustee with a written notice listing all Payment Date reports to Noteholders with respect to Payment Dates occurring in the prior calendar year that were included in a Form 8-K filing pursuant to Section 3.14
of the Sale and Servicing Agreement; provided that if no Form 10-K is required to be filed for such prior calendar year, no written notice shall be required. No later than March 15 of each year in which such written notice is provided by the Manager
to the Indenture Trustee, the Indenture Trustee shall sign a certification (in the form attached hereto as Exhibit C) for the benefit of the Person(s) signing the Form 10-K Certification, regarding certain aspects of the Form 10-K Certification.

  

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 SECTION 8.10. Rights of Noteholders and Residual Certificateholders. The Notes shall represent
obligations of the Trust, each representing interests in or secured by the Trust Property, including the Collection Account, the Distribution Account and the right to receive Interest Collections, Principal Collections, if any, and other amounts at
the times and in the amounts specified in this Indenture and the Residual Certificates shall represent a beneficial interest in the Trust (other than the Policy). 
  
 SECTION 8.11. Opinion of Counsel. The Indenture Trustee and the Insurer shall receive at least seven days’
notice when requested by the Issuer to take any action pursuant to Section 8.2(a), accompanied by copies of any instruments involved, and the Indenture Trustee shall also require as a condition to such action, an Opinion of Counsel (addressed to the
Indenture Trustee and to the Insurer), stating the legal effect of any such action, outlining the steps required to complete the same, and concluding that all conditions precedent to the taking of such action have been complied with and such action
will not materially and adversely impair the security for the Notes or the rights of the Noteholders or the Insurer in contravention of the provisions of this Indenture; provided, however, that such Opinion of Counsel shall not be required to
express an opinion as to the fair value of the Trust Property. Counsel rendering any such opinion may rely, without independent investigation, on the accuracy and validity of any certificate or other instrument delivered to the Indenture Trustee in
connection with any such action. 
  
 ARTICLE IX 
 Supplemental Indentures 
  
 SECTION 9.1. Supplemental Indentures Without Consent of Noteholders. 
  
 (a) Without the consent of the Holders of any Notes but with the consent of the Insurer and the Class B Certificateholders,
as evidenced to the Indenture Trustee, the parties hereto, when authorized by an Issuer Order, at any time and from time to time, may enter into one or more indentures supplemental hereto (which shall conform to the provisions of the TIA as in force
at the date of the execution thereof), in form satisfactory to the Indenture Trustee and the Insurer, for any of the following purposes: 
  
 (i) to correct or amplify the description of any property at any time subject to the lien of this Indenture, or better to assure, convey
and confirm unto the Indenture Trustee any property subject or required to be subjected to the lien of this Indenture, or to subject to the lien of this Indenture additional property; 
  
 (ii) to evidence the succession, in compliance with the applicable provisions hereof, of another person to
the Issuer, and the assumption by any such successor of the covenants of the Issuer herein and in the Notes contained; 
  
 (iii) to add to the covenants of the Issuer, for the benefit of the Holders of the Notes, or to surrender any right or power herein
conferred upon the Issuer; 
  
 (iv) to convey,
transfer, assign, mortgage or pledge any property to or with the Indenture Trustee; 
  

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 (v) to cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture which may be inconsistent with any other provision herein or in any supplemental indenture or to make any other provisions with respect to matters or questions arising under this Indenture or in any supplemental indenture;
provided that such action shall not adversely affect the interests of the Holders of the Notes; or 
  
 (vi) to evidence and provide for the acceptance of the appointment hereunder by a successor trustee with respect to the Notes and to add
to or change any of the provisions of this Indenture as shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee, pursuant to the requirements of Article VI. 
  
 (vii) to modify, eliminate or add to the provisions of this
Indenture to such extent as shall be necessary to effect the qualification of the Indenture under the TIA or under any similar federal statue hereafter enacted and to add to this Indenture such other provisions as may be expressly required by the
TIA. 
  
 The Indenture Trustee is hereby authorized to join in the
execution of any such supplemental indenture and to make any further appropriate agreements and stipulations that may be therein contained. 
  
 (b) The parties hereto, when authorized by an Issuer Order, may, also without the consent of any of the Holders of the Notes but with the prior written
consent of the Insurer and with prior notice to the Rating Agencies by the Issuer, as evidenced to the Indenture Trustee, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or changing in any
manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that such action shall not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Noteholder. 
  
 SECTION 9.2. Supplemental Indentures with Consent of Noteholders. The parties hereto, when authorized by an Issuer Order, also may, with prior notice to the Rating Agencies, with the consent of the Insurer and
with the consent of the Class B Certificateholders and the Holders of not less than a majority of the Outstanding Amount of the Notes, by Act of such Holders delivered to the parties hereto, enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that,
subject to the express rights of the Insurer under the Basic Documents, no such supplemental indenture shall, without the consent of the Holder of each Outstanding Notes affected thereby: 
  
 (i) change the date of payment of any installment of
principal of or interest on any Note, or reduce the principal amount thereof, the interest rate thereon or the Redemption Price with respect thereto, change the provision of this Indenture relating to the application of collections on, or the
proceeds of the sale of, the Trust Property to payment of principal of or interest on the Notes, or change any place of payment where, or the coin or currency in which, any Note or the interest thereon is payable; 
  

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 (ii) impair the right to institute suit for the enforcement of the provisions of this
Indenture requiring the application of funds available therefor, as provided in Article V, to the payment of any such amount due on the Notes on or after the respective due dates thereof (or, in the case of redemption, on or after the Redemption
Date); 
  
 (iii) reduce the percentage of the
Outstanding Amount of the Notes, the consent of the Holders of which is required for any such supplemental indenture, or the consent of the Holders of which is required for any waiver of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences provided for in this Indenture; 
  
 (iv) modify or alter the provisions of the proviso to the definition of the term “Outstanding”; 
  
 (v) reduce the percentage of the Outstanding Amount of the
Notes required to direct the Indenture Trustee to direct the Issuer to sell or liquidate the Trust Property pursuant to Section 5.4; 
  
 (vi) modify any provision of this Section except to increase any percentage specified herein or to provide that certain additional
provisions of this Indenture or the Basic Documents cannot be modified or waived without the consent of the Holder of each Outstanding Note affected thereby; 
  

(vii) modify any of the provisions of this Indenture in such manner as to affect the calculation of the amount of any payment of
interest or principal due on any Note on any Payment Date (including the calculation of any of the individual components of such calculation); or 
  
 (viii) permit the creation of any lien ranking prior to or on a parity with the lien of this Indenture with respect to any part of the
Trust Property or, except as otherwise permitted or contemplated herein or in any of the Basic Documents, terminate the lien of this Indenture on any property at any time subject hereto or deprive the Holder of any Note of the security provided by
the lien of this Indenture. 
  
 The Indenture Trustee may
conclusively rely as to whether or not any Notes would be adversely affected by any supplemental indenture upon receipt of an Opinion of Counsel addressed and delivered to the Indenture Trustee and the Insurer to that effect and any such
determination shall be conclusive upon the Holders of all Notes, whether theretofore or thereafter authenticated and delivered hereunder. The Indenture Trustee shall not be liable for relying on such Opinion of Counsel in good faith. 
  
 It shall not be necessary for any Act of Noteholders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
  
 Promptly after the execution by the parties hereto of any supplemental indenture pursuant to this Section, the Indenture Trustee shall mail to the Holders
of the Notes to which 
  

 46 

 such amendment or supplemental indenture relates a notice setting forth in general terms the substance of such
supplemental indenture. Any failure of the Indenture Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture. 
  
 SECTION 9.3. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture permitted by this Article IX or the modifications thereby of the trusts created by this Indenture, the Indenture Trustee and the Insurer shall be entitled to receive, and
subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an Opinion of Counsel (and, if requested, an Officer’s Note) stating that the execution of such supplemental indenture is authorized or permitted by this Indenture. The
Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s own rights, duties, liabilities or immunities under this Indenture or otherwise. 
  
 SECTION 9.4. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to be modified and amended in accordance therewith with respect to the Notes affected thereby, and the respective rights, limitations of rights,
obligations, duties, liabilities and immunities under this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 
  
 SECTION 9.5. Reference in Notes to Conformity With Trust Indenture Act. Every amendment of this Indenture and every
supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the TIA as then in effect so long as this Indenture shall then be qualified under the TIA. 
  
 SECTION 9.6. Reference in Notes to Supplemental Indentures. Notes authenticated and delivered after the execution of
any supplemental indenture pursuant to this Article IX may, and if required by the Indenture Trustee shall, bear a notation in form approved by the Indenture Trustee as to any matter provided for in such supplemental indenture. If the Issuer or the
Indenture Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuer, to any such supplemental indenture may be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes. 
  
 ARTICLE X

  
 Redemption of Notes 
  
 SECTION 10.1. Redemption. The Notes are subject to redemption in
whole, but not in part, at the direction of the Optional Redemption Holder pursuant to Section 7.01(b) of the Sale and Servicing Agreement, on any Payment Date on which such Optional Redemption Holder exercises its option to transfer the Trust
Property pursuant to said Section 7.01(b), for a 
  

 47 

 purchase price equal to the Redemption Price. The Servicer or the Issuer shall furnish the Insurer notice of such
redemption not later than 35 days prior to the Redemption Date. If the Notes are to be redeemed pursuant to this Section 10.1, the Servicer or the Issuer shall furnish notice of such election to the Indenture Trustee not later than 35 days prior to
the Redemption Date and the Issuer shall deposit or undertake to deposit on or prior to the Redemption Date with the Indenture Trustee in the Distribution Account the Redemption Price of such Notes whereupon all such Notes shall be due and payable
on the Redemption Date upon the furnishing of a notice complying with Section 10.2 (unless the Issuer shall default in the deposit of the Redemption Price). 
  
 SECTION 10.2. Surrender of Notes. 
  
 (a) Notice of any termination, specifying the Payment Date (which shall be a date that would otherwise be a Payment Date) upon which the Noteholders may
surrender their Notes to the Indenture Trustee for payment of the final distribution and cancellation, shall be given promptly by the Indenture Trustee (upon receipt of written directions from the Optional Redemption Holder, if the Optional
Redemption Holder is exercising its right to transfer of the Mortgage Loans, given not later than the first day of the month preceding the month of such final distribution) to the Insurer and to the Servicer and by letter to Noteholders mailed not
earlier than the 15th day and not later than the 25th day of the month next preceding the month of such final distribution specifying (i) the Payment Date upon which final distribution of the Notes will be made upon presentation and surrender of
Notes at the office or agency of the Indenture Trustee therein designated, (ii) the amount of any such final distribution and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, distributions being made only upon
presentation and surrender of the Notes at the office or agency of the Indenture Trustee therein specified. In the event written directions are delivered by the Optional Redemption Holder to the Indenture Trustee as described in the preceding
sentence, the Optional Redemption Holder shall deposit in the Distribution Account on or before the Payment Date for such final distribution in immediately available funds an amount which, when added to the funds on deposit in the Collection Account
that are payable to the Noteholders, will be equal to the Redemption Price for the Mortgage Loans, together with all amounts due and owing to the Insurer for unpaid premiums and unreimbursed draws on the Policy and all other amounts due and owing to
the Insurer pursuant to the Insurance Agreement, together with interest thereon as provided under the Insurance Agreement. 
  
 (b) Upon presentation and surrender of the Notes, the Indenture Trustee shall cause to be distributed to the Holders of Notes on the Payment Date for such
final distribution, in proportion to the Percentage Interests of their respective Notes and to the extent that funds are available for such purpose, the amount required to be distributed to Noteholders pursuant to Section 10.1 of this Indenture for
such Payment Date. The distribution on such final Payment Date pursuant to a redemption pursuant to Section 7.01(a)(B)(i) of the Sale and Servicing Agreement shall be in lieu of the distribution otherwise required to be made on such Payment Date in
respect of the Notes. On the final Payment Date prior to having made the distributions called for above, the Indenture Trustee shall, based upon the information set forth in the Servicing Certificate for such Payment Date, withdraw from the
Distribution Account and remit to the Insurer the lesser of (x) the amount available for distribution on such final Payment Date and (y) the unpaid amounts due and owing to the Insurer for unpaid premiums and unreimbursed draws on the Policy and all
other amounts due and owing to the Insurer pursuant to the Insurance Agreement, together with interest thereon as provided under the Insurance Agreement. 
  

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 (c) In the event that all of the Noteholders shall not surrender their Notes for final payment and
cancellation on or before such final Payment Date, the Indenture Trustee shall on such date cause all funds in the Distribution Account not distributed in final distribution to Noteholders to be withdrawn therefrom and credited to the remaining
Noteholders by depositing such funds in a separate escrow account for the benefit of such Noteholders and the Optional Redemption Holder (if the Optional Redemption Holder has exercised its right to transfer the Mortgage Loans) or the Indenture
Trustee (in any other case) and shall give a second written notice to the remaining Noteholders to surrender their Notes for cancellation and receive the final distribution with respect thereto. If within one year after the second notice all the
Notes shall not have been surrendered for cancellation, the Indenture Trustee may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Noteholders concerning surrender of their Notes, and the cost
thereof shall be paid out of the funds on deposit in such escrow account. 
  
 SECTION 10.3. Form of Redemption Notice. Notice of redemption supplied to the Indenture Trustee by the Optional Redemption Holder under Section 10.1 shall be given by the Indenture Trustee by facsimile or by
first-class mail, postage prepaid, transmitted or mailed prior to the applicable Redemption Date to each Holder of Notes of record, as of the close of business on the date which is not less than 5 days prior to the applicable Redemption Date, at
such Holder’s address appearing in the Note Register. 
  
 All
notices of redemption shall state: 
  
 (i) the
Redemption Date; 
  
 (ii) the Redemption Price;

  
 (iii) that the Record Date otherwise
applicable to such Redemption Date is not applicable and that payments shall be made only upon presentation and surrender of such Notes at the place where such Notes are to be surrendered for payment of the Redemption Price (which shall be the
office or agency of the Issuer to be maintained as provided in Section 3.2); and 
  
 (iv) that interest on the Notes shall cease to accrue on the Redemption Date. 
  
 Notice of redemption of the Notes shall be given by the Indenture Trustee in
the name and at the expense of the Issuer. Failure to give notice of redemption, or any defect therein, to any Holder of any Note shall not impair or affect the validity of the redemption of any other Note. 
  
 SECTION 10.4. Notes Payable on Redemption Date. The Notes to be
redeemed shall, following notice of redemption as required by Section 10.2, on the Redemption Date become due and payable at the Redemption Price and (unless the Issuer shall default in the payment of the Redemption Price) no interest shall accrue
on the Redemption Price for any period after the date to which accrued interest is calculated for purposes of calculating the Redemption Price. 
  

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 ARTICLE XI 
  
 Miscellaneous 
  
 SECTION 11.1. Compliance Certificates and Opinions, etc. Upon any application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee and to the Insurer if the application or request is made to the Indenture Trustee (i) an Officer’s Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been complied with, (ii) an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with and (iii) (if required
by the TIA or any provision of this Agreement) an Independent Certificate from a firm of certified public accountants meeting the applicable requirements of this Section, except that, in the case of any such application or request as to which the
furnishing of such documents is specifically required by any provision of this Indenture, no additional certificate or opinion need be furnished. 
  
 Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include: 
  
 (i) a statement that each signatory of such certificate or
opinion has read or has caused to be read such covenant or condition and the definitions herein relating thereto; 
  
 (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; 
  
 (iii)
a statement that, in the opinion of each such signatory, such signatory has made such examination or investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been
complied with; and 
  
 (iv) a statement as to
whether, in the opinion of each such signatory such condition or covenant has been complied with. 
  
 SECTION 11.2. Form of Documents Delivered to Indenture Trustee. In any case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  
 Any certificate or opinion of an Authorized Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, 
  

 50 

 counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his or her certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the Servicer, the Sponsor or the Issuer, stating that the information with respect to such factual matters is in the possession of the Servicer, the Sponsor or the Issuer,
unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous. Any certificate, Issuer Order or Issuer Request may be executed on behalf of
the Issuer by the Manager. 
  
 Where any Person is required to
make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
  
 Whenever in this Indenture, in connection with any application or certificate
or report to the Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the granting of such application, or as evidence of the Issuer’s compliance with any term hereof, it is intended that the truth and
accuracy, at the time of the granting of such application or at the effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the right of the
Issuer to have such application granted or to the sufficiency of such certificate or report. The foregoing shall not, however, be construed to affect the Indenture Trustee’s right to conclusively rely upon the truth and accuracy of any
statement or opinion contained in any such document as provided in Article VI. 
  
 SECTION 11.3. Acts of Noteholders. 
  
 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents duly appointed in writing; and except as herein otherwise expressly provided such action shall become effective when such instrument or instruments are delivered to the
Indenture Trustee, and, where it is hereby expressly required, to the Issuer. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders signing
such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.1) conclusive in favor of the Indenture Trustee and
the Issuer, if made in the manner provided in this Section. 
  
 (b) The fact and date of the execution by any person of any such instrument or writing may be proved in any customary manner of the Indenture Trustee. 
  

(c) The ownership of Notes shall be proved by the Note Register. 
  
 (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Notes shall
bind the Holder of every Note issued upon the 
  

 51 

 registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be
done by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such action is made upon such Note. 
  
 SECTION 11.4. Notices, etc., to Indenture Trustee, Issuer, Insurer and Rating Agencies. Any request, demand, authorization, direction, notice,
order, instruction, consent, waiver or Act of Noteholders or other documents provided or permitted by this Indenture to be made upon, given or furnished to or filed with: 
  
 (a) The Indenture Trustee by any Noteholder or by the Issuer shall be made in writing and either personally delivered,
delivered by overnight courier or mailed first-class to the Indenture Trustee at its Corporate Trust Office and any notice delivered by facsimile shall be addressed to the Corporate Trust Office, telecopy number (212) 623-5930, or 
  
 (b) The Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if personally delivered, delivered by facsimile or overnight courier or mailed first class, and shall deemed to have been duly given upon receipt to the Issuer addressed to: GreenPoint Home Equity Loan Trust
2004-1, in care of U.S. Bank Corporate Trust Services, 209 South LaSalle Street, Chicago, Illinois 60604, Attention: Corporate Trust Services, or at any other address previously furnished in writing to the Indenture Trustee by Issuer. The Issuer
shall promptly transmit any notice received by it from the Noteholders to the Indenture Trustee and the Indenture Trustee shall provide a copy of any notice it receives from the Issuer or any Noteholder to the Owner Trustee for distribution to the
Class B Certificateholders. 
  
 (c) The Insurer by the Issuer or
the Indenture Trustee shall be sufficient for any purpose hereunder if in writing and mailed by first-class mail personally delivered or telecopied to the recipient as follows: 
  

			
	 To the Insurer:
	  	 Ambac Assurance Corporation

	 	  	 One State Street Plaza

	 	  	 New York, NY 10004

	 	  	 Attention: Managing Director

	 	  	 Telecopy: (212) 363-1459

  
 Notices required to be
given to the Rating Agencies by the Issuer, the Indenture Trustee or the Owner Trustee shall be in writing, personally delivered, delivered by overnight courier or first class or via facsimile to (i) in the case of Moody’s, at the following
address: Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10004, Fax No: (212) 533-0355 and (ii) in the case of S&P, at the following address: Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.,
55 Water Street, New York, New York 10041, Attention: Asset Backed Surveillance Department, Fax No: (212) 438-2661; or as to each of the foregoing, at such other address as shall be designated by written notice to the other parties. 
  
 SECTION 11.5. Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be sufficiently given (unless 
  

 52 

 otherwise herein expressly provided) if in writing and mailed, first-class, postage prepaid to each Noteholder affected
by such event (and in all cases, the Insurer shall receive notice), at his address as it appears on the Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case
where notice to Noteholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Noteholder shall affect the sufficiency of such notice with respect to other Noteholders, and any notice
that is mailed in the manner herein provided shall conclusively be presumed to have been duly given. 
  
 Where this Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the Indenture Trustee but such filing shall not be a condition precedent to the validity of any action taken in reliance
upon such a waiver. 
  
 In case, by reason of the suspension of
regular mail service as a result of a strike, work stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner
of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving of such notice. 
  
 Where this Indenture provides for notice to the Rating Agencies, failure to give such notice shall not affect any other rights or obligations created
hereunder. 
  
 SECTION 11.6. Alternate Payment and Notice
Provisions. Notwithstanding any provision of this Indenture or any of the Notes to the contrary, the Issuer may enter into any agreement with any Holder of a Note providing for a method of payment, or notice by the Indenture Trustee or any Note
Paying Agent to such Holder, that is different from the methods provided for in this Indenture for such payments or notices, provided that such methods are reasonable and consented to by the Indenture Trustee (which consent shall not be unreasonably
withheld). The Issuer will furnish to the Indenture Trustee a copy of each such agreement and the Indenture Trustee will cause payments to be made and notices to be given in accordance with such agreements. 
  
 SECTION 11.7. Conflict with Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is required to be included in this indenture by any of the provisions of the TIA, such required provision shall control. 
  
 The provisions of TIA §§ 310 through 317 that impose duties on any
person (including the provisions automatically deemed included herein unless expressly excluded by this Indenture) are a part of and govern this Indenture, whether or not physically contained herein. 
  
 SECTION 11.8. Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
  

 53 

 Notwithstanding anything to the contrary contained in this Indenture or any document delivered herewith,
all persons may disclose to any and all persons, without limitation of any kind, the federal income tax treatment of the Notes, any fact relevant to understanding the federal tax treatment of the Notes, and all materials of any kind (including
opinions or other tax analyses) relating to such federal tax treatment. 
  
 SECTION 11.9. Successors and Assigns. All covenants and agreements in this Indenture and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not. All agreements of the Indenture Trustee in this
Indenture shall bind its successors. 
  
 SECTION 11.10.
Separability. In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

  
 SECTION 11.11. Benefits of Indenture. The Insurer and
its successors and assigns shall be third-party beneficiaries to the provisions of this Indenture, and shall be entitled to rely upon and directly to enforce such provisions of this Indenture. Nothing in this Indenture or in the Notes, express or
implied, shall give to any Person, other than the parties hereto and their successors hereunder, the Insurer, and the Noteholders, and any other party secured hereunder, and any other person with an ownership interest in any part of the Trust
Property, any benefit or any legal or equitable right, remedy or claim under this Indenture. The Insurer may disclaim any of its rights and powers under this Indenture (in which case the Indenture Trustee may exercise such rights or powers
hereunder), but not its duties and obligations under the Policy upon delivery of a written notice to the Indenture Trustee. 
  
 SECTION 11.12. Legal Holidays. In any case where the date on which any payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date on which nominally due, and no interest shall accrue for the
period from and after any such nominal date. 
  
 SECTION 11.13.
GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS . 
  
 SECTION 11.14. Counterparts. This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same instrument. 
  
 SECTION 11.15. Recording of Indenture. If this Indenture is subject to recording in any appropriate public recording offices, such recording is to be effected by the Issuer and at its expense accompanied by an
Opinion of Counsel (which may be counsel to the Trust or any other counsel reasonably acceptable to the Indenture Trustee and the Insurer) to the effect that such recording is necessary either for the protection of the Noteholders or any other
person secured hereunder or for the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture. 
  

 54 

 SECTION 11.16. Trust Obligation. No recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Sponsor, the Servicer, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or any Note or other writing delivered in connection herewith or therewith, against (i) the Sponsor, the
Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Sponsor, the
Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Sponsor, the Servicer, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Sponsor,
the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their
individual capacity) and except that any such owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing
to such entity. For all purposes of this Indenture, in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles VI, VII and
VIII of the Trust Agreement. 
  
 SECTION 11.17. No
Petition. The Indenture Trustee, by entering into this Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree that they will not at any time institute against the Sponsor, or the Issuer, or join in any institution against
the Sponsor, or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States Federal or state bankruptcy or similar law in connection with any obligations relating to
the Notes, this Indenture or any of the Basic Documents. 
  
 SECTION 11.18. Inspection. The Issuer agrees that, on reasonable prior notice, it will permit any representative of the Indenture Trustee or of the Insurer, during the Issuer’s normal business hours, to examine all the books of
account, records, reports, and other papers of the Issuer, to make copies and extracts therefrom, to cause such books to be audited by independent certified public accountants, and to discuss the Issuer’s affairs, finances and accounts with the
Issuer’s officers, employees, and independent certified public accountants, all at such reasonable times and as often as may be reasonably requested. The Indenture Trustee shall and shall cause its representatives to hold in confidence all such
information except to the extent disclosure may be required by law (and all reasonable applications for confidential treatment are unavailing) and except to the extent that the Indenture Trustee may reasonably determine that such disclosure is
consistent with its Obligations hereunder. 
  
 SECTION 11.19.
Limitation of Liability. It is expressly understood and agreed by the parties hereto that (a) this Indenture is executed and delivered by U.S. Bank Trust National Association, not individually or personally but solely as Owner Trustee of the
Issuer under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal
representations, undertakings and agreements by 
  

 55 

 U.S. Bank Trust National Association but is made and intended for the purpose for binding only the Issuer, (c) nothing
herein contained shall be construed as creating any liability on U.S. Bank Trust National Association individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly
waived by the parties to this Indenture and by any person claiming by, through or under them and (d) under no circumstances shall U.S. Bank Trust National Association be personally liable for the payment of any indebtedness or expenses of the Issuer
or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaking by the Issuer under this Indenture or any related documents. 
  
 ARTICLE XII 
  
 Rapid Amortization Events 
  
 SECTION 12.1. Rapid Amortization Events. The following shall constitute Rapid Amortization Events with respect to the Notes: 
  
 (a) failure on the part of the Issuer, the Originator, the Sponsor or the
Servicer, as the case may be, (i) to make any payment or deposit required by the terms of this Indenture, the Sale and Servicing Agreement or the Insurance Agreement, as applicable, within two Business Days after notification that such payment or
deposit is required to be made, or (ii) to observe or perform in any material respect the covenants or agreements of the Issuer, the Originator, the Sponsor or the Servicer, as the case may be, set forth in the Sale and Servicing Agreement or the
Insurance Agreement or this Indenture, as the case may be, and which, in the case of clause (ii), continues unremedied for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been
given to the Issuer, the Sponsor or the Servicer, as the case may be, by the Indenture Trustee, or to the Issuer, the Originator, the Sponsor or the Servicer, as the case may be, and the Indenture Trustee by the Insurer or Holders of Notes
evidencing more than 50% of the Outstanding Amount; 
  
 (b) any
representation or warranty made by the Issuer, the Originator, the Sponsor or the Servicer, as the case may be, in this Indenture, the Sale and Servicing Agreement or the Insurance Agreement shall prove to have been incorrect in any material respect
when made, as a result of which the interests of the Noteholders or the Insurer are materially and adversely affected and which continues to be incorrect in any material respect and continues to affect materially and adversely the interests of the
Noteholders or the Insurer for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Issuer, the Sponsor or the Servicer, as the case may be, by the Indenture
Trustee, or to the Issuer, the Sponsor or the Servicer, as the case may be, and the Indenture Trustee by either the Insurer or the Holders of Notes evidencing more than 50% of the Outstanding Amount; 
  
 (c) the Servicer, the Originator, the Sponsor or the Issuer or any of their
Subsidiaries or Affiliates shall voluntarily go into liquidation, consent to the appointment of a conservator or receiver or liquidator or similar person in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar
proceedings of or relating to the Servicer, the Originator, the Sponsor or the Trust or of or relating to all or substantially all of such Person’s 
  

 56 

 property, or a decree or order of a court or agency or supervisory authority having jurisdiction in the premises for the
appointment of a conservator, receiver, liquidator or similar person in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered
against the Servicer, the Originator, the Sponsor of the Trust and such decree or order shall have remained in force undischarged or unstayed for a period of 30 days; or the Servicer, the Originator, the Sponsor or the Trust 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; 
  
 (d) the Issuer becomes subject to regulation by
the Securities and Exchange Commission as an investment company within the meaning of the Investment Company Act of 1940, as amended; 
  
 (e) any draw is made under the Policy; 
  
 (f) an Event of Servicing Termination has occurred; and 
  
 (g) default in the payment of any interest, principal or any installment of principal on the Notes when the same becomes due and payable, and such default
continues for a period of five Business Days. 
  
 In the case of
any event described in clauses (a) through (g) above, a Rapid Amortization Event will be deemed to have occurred only if, after the applicable grace period, if any, described in the Indenture or Sale and Servicing Agreement, any of the Indenture
Trustee or Holders holding Class A Notes evidencing more than 50% of the outstanding principal balance of the Class A Notes, in each case with the prior written consent of the Insurer (so long as no Insurer Default has occurred and is continuing) or
the Insurer (so long as no Insurer Default has occurred and is continuing), by written notice to the Trust, the Insurer, the Sponsor, and the Servicer (and to the Indenture Trustee, if given by the Noteholders or the Insurer) declare that a Rapid
Amortization Event has occurred as of the date of such notice. 
  
 Following the occurrence of a Rapid Amortization Event, if so directed by the Insurer, so long as no Insurer Default has occurred and is continuing, the Indenture Trustee will sell, dispose of or otherwise liquidate the Trust Property with
respect to the Mortgage Loans in a commercially reasonable manner and on commercially reasonable terms. So long as (i) no Event of Servicing Termination has occurred and is continuing and (ii) such Rapid Amortization Event was not caused by the
Servicer, the Sponsor or the Originator, any such sale, disposal or liquidation will be “servicing retained” by the Servicer. With respect to the Notes, the net proceeds of such sale will be paid (i) first, to the Indenture Trustee and the
Owner Trustee, any unpaid fees due and owing, (ii) second, to the Holders of the Notes insofar as may be necessary to reduce the principal balance of such Class, together with all accrued and unpaid interest due thereon, to zero, (iii) third, to
reimburse the Insurer to the extent of unreimbursed draws under the Policy and other amounts owing to the Insurer, (iv) fourth, to the Indenture Trustee and the Owner Trustee, any unreimbursed expenses due and owing, and (v) fifth, to the Residual
Certificateholders, in the order and priority described in Section 8.7(b)(xiii), any remaining amounts. 
  

 57 

 In addition to the consequences of a Rapid Amortization Event discussed above, if the Sponsor voluntarily
files a bankruptcy petition or goes into liquidation or any person is appointed a receiver or bankruptcy trustee of the Sponsor, on the day of any such filing or appointment no further Additional Balances will be transferred to the Trust and the
Sponsor will promptly give notice to the Indenture Trustee and the Insurer of any such filing or appointment. Within 15 days, the Indenture Trustee notify the Holders of the Notes of the occurrence of such event. 
  
 Upon the occurrence of a Rapid Amortization Event, the Sponsor shall no
longer receive any principal funds upon the transfer of Additional Balances to the Trust in respect of the Additional Balance Contributed Amount but will be reimbursed to the extent of available funds from distributions on the Class G Certificates.

  

 58 

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

			
	 GREENPOINT HOME EQUITY LOAN TRUST 2004-1

		
	 By:
	 	 U.S. BANK TRUST NATIONAL ASSOCIATION,
 not in its individual capacity but
 solely as Owner Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 JPMPORGAN CHASE BANK,
 not in its individual capacity but
 solely as Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

			
	 Acknowledged and Agreed:

	
	 GREENPOINT MORTGAGE SECURITIES LLC

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

 [ANNEX A – Defined Terms] 

 EXHIBIT A 
  
 [Form of Note] 
  
 GREENPOINT HOME EQUITY LOAN TRUST 2004-1 CLASS A NOTE 
  

			
	 REGISTERED
	 	$[            ]

  

			
	 No. A-1
	 	CUSIP NO. 395385 [        ]

  
 Unless this Class A
Note is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuer or its agent for registration of transfer, exchange or payment, and any Class A Note issued is
registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 
  
 THE PRINCIPAL OF THIS CLASS A NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL
AMOUNT OF THIS CLASS A NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 

 GREENPOINT HOME EQUITY LOAN TRUST 2004-1 
  
 CLASS A VARIABLE RATE ASSET BACKED NOTES 
  
 GreenPoint Home Equity Loan Trust 2004-1, a statutory trust organized and existing under the laws of the State of Delaware
(herein referred to as the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of [            ]
($[            ]), such amount payable on each Payment Date in an amount equal to the result obtained by multiplying (i) a fraction the numerator of which is
$[            ] and the denominator of which is $[            ] by (ii) the aggregate amount, if any, payable from
the Distribution Account in respect of principal on the Class A Notes pursuant to Section 8.7 of the Indenture; provided, however, that the entire unpaid principal amount of this Class A Note shall be due and payable on the Payment Date in
July 2029 (the “Final Scheduled Payment Date”). The Issuer will pay interest on this Note at the rate per annum provided in the Indenture on each Payment Date on the principal amount of this Class A Note outstanding on the preceding
Payment Date (after giving effect to all payments of principal made on the preceding Payment Date). Interest on this Class A Note will accrue for each Payment Date from the most recent Payment Date on which interest has been paid to but excluding
such Payment Date or, if no interest has yet been paid, from the Closing Date. Interest will be computed on the basis of the actual number of days elapsed in a 360-day year. Such principal of and interest on this Class A Note shall be paid in the
manner specified on the reverse hereof. 
  
 The principal of and
interest on this Class A Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Class A Note
shall be applied first to interest due and payable on this Class A Note as provided above and then to the unpaid principal of this Class A Note. 
  
 The Notes are entitled to the benefits of a financial guaranty insurance policy (the “Policy”) issued by Ambac Assurance Corporation (the
“Insurer”), pursuant to which the Insurer has unconditionally guaranteed payments of the Insured Amounts with respect to the Class A Notes on each Payment Date and Preference Amounts, all as more fully set forth in the Policy.

  
 For purposes of federal income, state and local income and
franchise and any other income taxes, the Issuer will treat the Notes as indebtedness of the Sponsor and hereby instructs the Indenture Trustee to treat the Notes as indebtedness of the Sponsor for federal and state tax reporting purposes. Each
Noteholder by acceptance of a Note (and each owner of a beneficial interest in a Note by acceptance of such beneficial interest) agrees to treat the Notes for federal income, state and local income and franchise and any other income taxes as
indebtedness of the Sponsor. 
  
 Each Noteholder or Note Owner, by
acceptance of this Class A Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the
Indenture Trustee on the Class A Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Sponsor, the Originator, the Servicer, the Indenture Trustee, or the Owner Trustee in its individual
capacity, (ii) any owner of a 
  

 A-1-2 

 beneficial interest in the Issuer or (iii) any owner, beneficiary, agent, officer, director or employee of the Sponsor,
the Originator, the Servicer, the Indenture Trustee, or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Sponsor, the Originator, the Servicer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Sponsor, the Originator, the Servicer, the Indenture Trustee, or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the
Owner Trustee have no such obligations in their individual capacity) and except that any such owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution
or failure to pay any installment or call owing to such entity. 
  
 Reference is made to the further provisions of this Class A Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Class A Note. 
  
 Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Class A Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose. 
  
 This Class A Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A Variable Rate Asset Backed Notes (herein called the “Class A Notes”), all issued under an Indenture dated as of January 1, 2004 (such agreement, as supplemented or amended, is herein called the
“Indenture”), between the Issuer and JPMorgan Chase Bank, as Indenture Trustee (the “Indenture Trustee”), which term includes any successor Indenture Trustee under the Indenture. 
  
 All terms used in this Class A Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or pursuant to the Indenture, as so supplemented or amended. If any such terms are not defined in the Indenture, as supplemented or amended, then such terms shall have the meanings
assigned to them in or pursuant to the Trust Agreement dated as of January 1, 2004 (such trust agreement, as supplemented or amended is herein called the “Trust Agreement”), between GreenPoint Mortgage Securities LLC, as sponsor,
and U.S. Bank Trust National Association, as Owner Trustee (the “Owner Trustee,” which term includes any successor Owner Trustee under the Trust Agreement), as so supplemented or amended. 
  
 The Class A Notes are and will be secured by the collateral pledged as
security therefor as provided in the Indenture. 
  
 Principal of
the Class A Notes will be payable on each Payment Date in an amount described in the Indenture. “Payment Date” means the twenty-fifth (25th) day of each month, or, if any such date is not a Business Day, the next succeeding Business Day, commencing in February 2004. The term “Payment Date,” shall be deemed to include the Final
Scheduled Payment Date. 
  

 A-1-3 

 As described above, the entire unpaid principal amount of this Class A Note shall be due and payable on
the earlier of the Final Scheduled Payment Date and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture. Notwithstanding the foregoing, on the date on which a Rapid Amortization Period as described in Section 5.1(a) shall have
occurred and be continuing, the Insurer (so long as there is no continuing Insurer Default) shall have the right among others to direct the Indenture Trustee to sell or liquidate the Mortgage Loans as provided in Section 12.1 of the Indenture and
pay such amounts to the Holders of the Class A Notes. All principal payments on the Class A Notes shall be made pro rata to the Holders of the Class A Notes entitled thereto. 
  
 Payments of interest on this Class A Note due and payable on each Payment Date, together with the installment of principal,
if any, to the extent not in full payment of this Class A Note, shall be made by wire transfer (or upon the request of a Holder holding Class A Notes having denominations aggregating at least $1,000,000 and received by the Indenture Trustee at least
five Business Days prior to the related Record Date, by check or money order or otherwise) to the Person whose name appears as the Holder of this Class A Note (or one or more Predecessor Notes) on the Note Register as of the close of business on
each Record Date, except that with respect to Class A Note registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Any check or money order shall be mailed to the Person entitled thereto at the address of such Person as it appears on the Note Register as of the applicable Record Date without requiring
that this Note be submitted for notation of payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Class A
Note and of any Class A Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Class A Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify the Person who was the Holder hereof as of the Record Date preceding such Payment Date by
notice mailed prior to such Payment Date and the amount then due and payable shall be payable only upon presentation and surrender of this Class A Note at the office designated by the Indenture Trustee for such purposes located in The City of New
York. 
  
 The Issuer shall pay interest on overdue installments of
interest at the Class A-1 Interest Rate to the extent lawful. 
  
 As provided in the Indenture, the Class A Notes may be redeemed pursuant to Section 10.1 of the Indenture, in whole, but not in part, at the option of the holder of the majority interest in the Class B Certificates (with the consent of the
Insurer under certain circumstances), on any Payment Date occurring after the end of a Collection Period on which the outstanding Pool Balance on such Payment Date is less than or equal to 10% of the Original Pool Balance. If the holder of the
majority interest in the Class B Certificates does not exercise such option, then the Class A Notes may be redeemed pursuant to Section 10.1 of the Indenture, in whole, but not in part, at the option of the holder of the majority interest in the
Class G Certificates (with the consent of the Insurer under certain circumstances), on any Payment Date occurring after the end of a Collection Period on which the outstanding Pool Balance on such Payment Date is less than or equal to 2% of the
Original Pool Balance. 
  

 A-1-4 

 As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this
Class A Note may be registered on the Note Register upon surrender of this Class A Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, (i) duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the
requirements of the Note Registrar which requirements include membership or participation in Notes Transfer Agents Medallion Program (“Stamp”) or such other “signature guarantee program” as may be determined by the
Registrar in addition to, or in substitution for, Stamp, all in accordance with the Exchange Act, and (ii) accompanied by such other documents as the Indenture Trustee may require, and thereupon one or more new Notes of authorized denominations and
in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Class A Note, but the transferor may be required to pay a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 
  
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Sponsor, the Originator, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any owner, beneficiary, agent, officer, director or employee
of the Sponsor, the Originator, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Sponsor, the Originator, the Servicer, the Owner Trustee or the Indenture
Trustee or of any successor or assign of the Sponsor, the Originator, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed (it being understood that the Indenture
Trustee and the Owner Trustee have no such obligations in their individual capacity) and except that any such owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such entity. 
  
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees that by accepting the benefits of the Indenture and the Trust Agreement that
such Noteholder will not at any time institute against the Sponsor, or the Issuer or join in any institution against the Sponsor, or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings, under any United States Federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Trust Agreement, the Indenture or the Basic Documents. 
  

 A-1-5 

 Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee
and the Insurer and any agent of the Issuer, the Indenture Trustee or the Insurer may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and neither the Issuer, the Indenture Trustee nor any such agent shall be affected by notice to the contrary. 
  
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
and obligations of the Issuer and the rights of the Holders of the Note under the Indenture at any time by the Issuer with the consent of the Insurer and of the Holders of Notes representing a majority of the Outstanding Amount of all Notes at the
time Outstanding. Any such consent or waiver by the Holder of this Note (or any one of more Predecessor Notes) shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain terms and conditions set forth in the
Indenture without the consent of Holders of the Notes issued thereunder but with the consent of the Insurer. 
  
 The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture or the Trust Agreement. 
  
 The Class A Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth. 
  
 This Note, the Trust Agreement and the Indenture shall be construed in accordance with the laws of the State of New York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws. 
  
 No reference herein to the Trust Agreement or the Indenture and no provision of this Note, the Trust Agreement or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or currency herein prescribed. 
  
 Anything herein to the contrary notwithstanding, except as expressly provided in the Trust Agreement, the Indenture or the Basic Documents, neither U.S.
Bank Trust National Association in its individual capacity, any owner of a beneficial interest in the Issuer, nor any of their respective beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or interest on, or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in this Note or the Indenture, it being expressly
understood that said covenants, obligations and indemnifications have been made by the Issuer for the sole purposes of binding the interests of the Issuer in the assets of the Issuer. The Holder of this Note by the acceptance hereof agrees that
except as expressly provided in the Indenture or the Basic Documents in the case of a Rapid Amortization Event with respect to the Class A Notes under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency,
loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note. 
  

 A-1-6 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its
Authorized Officer. 
  

					
	 Date: January     , 2004
	 	 GREENPOINT HOME EQUITY LOAN TRUST 2004-1

			
	 	 	 By:
	 	 U.S. Bank Trust National Association, not in its
 individual capacity but solely as Owner Trustee

			
	 	 	 By:
	 	  

	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 A-1-7 

 INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Notes designated above and referred to in the
within-mentioned Indenture. 
  

					
	 Date: January     , 2004
	 	 JPMORGAN CHASE BANK,
 not in its individual capacity
 but solely as Indenture Trustee

			
	 	 	 By:
	 	  

	 	 	 	 	                       Authorized Signatory

  

 A-1-8 

 EXHIBIT B 
  
 FORM OF OPINION OF COUNSEL 
  

 B-1 

 EXHIBIT C 
  
 FORM OF CERTIFICATION TO BE PROVIDED TO 
 GREENPOINT HOME EQUITY LOAN TRUST 2004-1 BY THE INDENTURE TRUSTEE 
  
 Greenpoint Home Equity Loan Trust 2004-1 (the “Trust”) 
 Class A Variable Rate Asset Backed Notes

  
 JPMorgan Chase Bank (the “Indenture Trustee”) hereby
certifies to GreenPoint Mortgage Securities LLC (the “Sponsor”), and each Person, if any, who “controls” the Sponsor within the meaning of the Securities Act of 1933, as amended, and its officers, directors and affiliates, and
with the knowledge and intent that they will rely upon this certification, that: 
  
 1. The Indenture Trustee has reviewed the annual report on Form 10-K for the fiscal year [        ], and all reports on Form 8-K containing distribution reports filed in
respect of periods included in the year covered by that annual report, of the Sponsor relating to the Trust; 
  
 2. Based solely upon the information provided to the Indenture Trustee by the Manager, and assuming the accuracy and completeness of the information
supplied to the Indenture Trustee by the Manager, the distribution reports referred to in item 1 above, 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 as of the last day of the period covered by that annual report; and 
  
 3. Based on the Indenture Trustee’s knowledge, the distribution information required to be provided by the Indenture Trustee under the Indenture,
dated as of January 1, 2004, between the Trust and the Indenture Trustee, is included in these reports. 
  
 [SIGNATURE PAGE IMMEDIATELY FOLLOWS] 
  

 C-1 

					
	 	 	 JPMORGAN CHASE BANK,
 as Indenture Trustee

			
	 Dated:                    
	 	 By:
	 	  

	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 C-2Sale and Servicing Agreement

 EXHIBIT 4.2 
  

EXECUTION 
  

  
 GREENPOINT MORTGAGE SECURITIES LLC, 
 Sponsor, 
  
 GREENPOINT MORTGAGE FUNDING, INC., 
 Originator and Servicer, 
  
 GREENPOINT HOME EQUITY LOAN TRUST 2004-1, 
 Issuer, 
  
 and 
  
 JPMORGAN CHASE BANK, 
 Indenture Trustee 
  

  
 SALE AND SERVICING AGREEMENT

  
 Dated as of January 1, 2004 
  

  
 Variable Rate Asset-Backed Notes 
  
 Series 2004-1 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I DEFINITIONS
	  	1
			
	 Section 1.01.
	  	 Definitions
	  	1
	 Section 1.02.
	  	 Other Definitional Provisions.
	  	1
	 Section 1.03.
	  	 Interest Calculations
	  	2
		
	 ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF NOTES; TAX TREATMENT
	  	2
			
	 Section 2.01.
	  	 Conveyance of Mortgage Loans; Retention of Obligation to Fund Advances Under Credit Line Agreements.
	  	2
	 Section 2.02.
	  	 Further Encumbrance of Trust Property.
	  	6
	 Section 2.03.
	  	 Acceptance by Indenture Trustee; Certain Substitution of Mortgage Loans.
	  	7
	 Section 2.04.
	  	 Representations and Warranties Regarding the Originator and Servicer and the Sponsor.
	  	8
	 Section 2.05.
	  	 Representations and Warranties of the Originator Regarding the Mortgage Loans; Removal of Certain Mortgage Loans.
	  	11
	 Section 2.06.
	  	 Covenants of the Sponsor
	  	23
	 Section 2.07.
	  	 [Reserved]
	  	24
	 Section 2.08.
	  	 Execution and Authentication of Notes
	  	24
	 Section 2.09.
	  	 Tax Treatment
	  	25
		
	 ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
	  	25
			
	 Section 3.01.
	  	 The Servicer.
	  	25
	 Section 3.02.
	  	 Collection of Certain Mortgage Loan Payments; Remittances
	  	27
	 Section 3.03.
	  	 Withdrawals from the Distribution Account
	  	28
	 Section 3.04.
	  	 Maintenance of Hazard Insurance; Property Protection Expenses
	  	29
	 Section 3.05.
	  	 Assumption and Modification Agreements
	  	30
	 Section 3.06.
	  	 Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage Loans.
	  	30
	 Section 3.07.
	  	 Indenture Trustee to Cooperate
	  	31
	 Section 3.08.
	  	 Servicing Compensation; Payment of Certain Expenses by Servicer
	  	32
	 Section 3.09.
	  	 Annual Statement as to Compliance.
	  	32
	 Section 3.10.
	  	 Annual Servicing Report
	  	32
	 Section 3.11.
	  	 Annual Opinion of Counsel
	  	33
	 Section 3.12.
	  	 Access to Certain Documentation and Information Regarding the Mortgage Loans.
	  	33
	 Section 3.13.
	  	 Maintenance of Certain Servicing Insurance Policies
	  	33
	 Section 3.14.
	  	 Reports to the SEC
	  	34
	 Section 3.15.
	  	 Tax Returns
	  	34
	 Section 3.16.
	  	 Information Required by the Internal Revenue Service Generally and Reports of Foreclosures and Abandonments of Mortgaged Property
	  	35

  

 i 

					
	 Section 3.17.
	  	 Reporting Requirements
	  	35
	 Section 3.18.
	  	 Matters Relating to MERS Loans.
	  	35
	 Section 3.19.
	  	 Additional Balance Payments
	  	36
	 Section 3.20.
	  	 Sponsor Promissory Note.
	  	36
		
	 ARTICLE IV SERVICING CERTIFICATE
	  	37
			
	 Section 4.01.
	  	 Servicing Certificate
	  	37
	 Section 4.02.
	  	 Reserved.
	  	39
	 Section 4.03.
	  	 Reserved.
	  	39
	 Section 4.04.
	  	 Loan Data Remittance Report
	  	39
		
	 ARTICLE V THE SERVICER AND THE SPONSOR
	  	40
			
	 Section 5.01.
	  	 Liability of the Servicer and the Sponsor
	  	40
	 Section 5.02.
	  	 Merger or Consolidation of, or Assumption of the Obligations of, the Servicer or the Sponsor
	  	40
	 Section 5.03.
	  	 Limitation on Liability of the Servicer and Others
	  	40
	 Section 5.04.
	  	 Servicer Not to Resign
	  	41
	 Section 5.05.
	  	 Delegation of Duties
	  	41
	 Section 5.06.
	  	 Indemnification of the Trust by the Servicer
	  	41
	 Section 5.07.
	  	 Indemnification of the Trust by the Sponsor
	  	42
	 Section 5.08.
	  	 Limitation on Liability of the Sponsor
	  	42
		
	 ARTICLE VI SERVICING TERMINATION
	  	43
			
	 Section 6.01.
	  	 Events of Servicing Termination
	  	43
	 Section 6.02.
	  	 Indenture Trustee to Act; Appointment of Successor.
	  	46
	 Section 6.03.
	  	 Notification to Noteholders and Residual Certificateholders
	  	47
		
	 ARTICLE VII TERMINATION
	  	47
			
	 Section 7.01.
	  	 Termination.
	  	47
		
	 ARTICLE VIII ADMINISTRATIVE DUTIES OF THE SERVICER
	  	48
			
	 Section 8.01.
	  	 Administrative Duties.
	  	48
	 Section 8.02.
	  	 Records
	  	50
	 Section 8.03.
	  	 Additional Information to be Furnished to the Issuer
	  	50
		
	 ARTICLE IX MISCELLANEOUS PROVISIONS
	  	51
			
	 Section 9.01.
	  	 Amendment
	  	51
	 Section 9.02.
	  	 Recordation of Agreement
	  	52
	 Section 9.03.
	  	 Limitation on Rights of Noteholders
	  	52
	 Section 9.04.
	  	 Governing Law
	  	53
	 Section 9.05.
	  	 Notices
	  	53
	 Section 9.06.
	  	 Severability of Provisions
	  	54
	 Section 9.07.
	  	 Assignment
	  	54
	 Section 9.08.
	  	 Third-Party Beneficiaries
	  	54
	 Section 9.09.
	  	 Counterparts
	  	54
	 Section 9.10.
	  	 Effect of Headings and Table of Contents
	  	54

  

 ii 

					
	 Section 9.11.
	  	 Insurance Agreement
	  	54
	 Section 9.12.
	  	 Nonpetition Covenant
	  	54
	 Section 9.13.
	  	 Limitation of Liability of U.S. Bank Trust National Association
	  	55
			
	 EXHIBITS
	  	 	  	 
		
	 EXHIBIT A: MORTGAGE LOAN SCHEDULE
	  	A-1
		
	 EXHIBIT B: FORM OF OPINION OF COUNSEL
	  	B-1
		
	 EXHIBIT C-1: FORM OF OFFICER’S CERTIFICATE: PERMANENT RELEASE
	  	C-1
		
	 EXHIBIT C-2: FORM OF OFFICER’S CERTIFICATE: TEMPORARY RELEASE
	  	C-2
		
	 EXHIBIT D: FORM OF CREDIT LINE AGREEMENT
	  	D-1
		
	 EXHIBIT E: FORM OF NON-NEGOTIABLE GREENPOINT MORTGAGE SECURITIES LLC PROMISSORY NOTE
	  	E-1
		
	 EXHIBIT F: FORM OF CERTIFICATE: LOAN LEVEL REPORTING
	  	F-1

  

 iii 

 SALE AND SERVICING AGREEMENT, dated as of January 1, 2004, (the “Agreement”) among
GREENPOINT HOME EQUITY LOAN TRUST 2004-1, a Delaware statutory trust (the “Issuer” or “Trust”), GREENPOINT MORTGAGE SECURITIES LLC, a Delaware limited liability company (the “Sponsor”), GREENPOINT
MORTGAGE FUNDING, INC., a New York corporation (the “Servicer”), and JPMORGAN CHASE BANK, a New York banking corporation, as Indenture Trustee (the “Indenture Trustee”). 
  
 WHEREAS, the Issuer desires to purchase a portfolio of Mortgage Loans arising
in connection with Credit Line Agreements originated or acquired by GreenPoint Mortgage Funding, Inc.; 
  
 WHEREAS, GreenPoint Mortgage Funding, Inc. has sold the Mortgage Loans to Wachovia Bank, National Association who, in turn, sold such Mortgage Loans to
Terwin Advisors LLC; 
  
 WHEREAS, the Sponsor has purchased such
Mortgage Loans from Terwin Advisors LLC and is willing to sell such Mortgage Loans to the Issuer; 
  
 WHEREAS, such Mortgage Loans consist of certain home equity revolving lines of credit (the “Mortgage Loans”); 
  
 WHEREAS, the Servicer is willing to service all such Mortgage Loans;

  
 NOW, THEREFORE, in consideration of the promises and mutual
covenants herein contained, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.01. Definitions. All capitalized terms used in this
Agreement and not otherwise defined herein, shall have the meanings assigned thereto in Annex A to the Indenture dated as of January 1, 2004, between the Issuer and the Indenture Trustee, as the same may be amended and supplemented from time to
time. 
  
 Section 1.02. Other Definitional Provisions.

  
 (a) All terms defined in this Agreement shall have the
defined meanings when used in any instrument governed hereby and in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. 
  
 (b) As used in this Agreement, in any instrument governed hereby and in any certificate or other document made or delivered
pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such instrument, certificate or other document, and accounting terms partly defined in this Agreement or in any such instrument, certificate or other document to
the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles as in effect on the date of this Agreement or any such instrument, certificate or other document, as applicable. To the extent
that the definitions of 

 accounting terms in this Agreement or in any such instrument, certificate or other document are inconsistent with the
meanings of such terms under generally accepted accounting principles, the definitions contained in this Agreement or in any such instrument, certificate or other document shall control. 
  
 (c) Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in
connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated
therein; references to a Person are also to its permitted successors and assigns. 
  
 Section 1.03. Interest Calculations. All calculations of interest hereunder that are made in respect of the Principal Balance of a Mortgage Loan shall be made on a daily basis using a 365-day year. All
calculations of interest on the Notes shall be made on the basis of the actual number of days in an Interest Accrual Period and a year assumed to consist of 360 days. The calculation of the Servicing Fee shall be made on the basis of a 360-day year
consisting of twelve 30-day months. All dollar amounts calculated hereunder shall be rounded to the nearest penny with one-half of one penny being rounded down. 
  

ARTICLE II 
  
 CONVEYANCE OF MORTGAGE LOANS; 
 ORIGINAL ISSUANCE OF NOTES; 
 TAX TREATMENT 
  
 Section 2.01. Conveyance of Mortgage Loans; Retention of Obligation to Fund Advances Under Credit Line Agreements. 
  
 (a) In consideration of the Issuer’s delivery to or upon the order of
the Sponsor on the Closing Date of the net proceeds from the sale of the Notes and the Residual Certificates and the other amounts to be distributed from time to time to the Sponsor in accordance with the terms of this Agreement and the Indenture,
the Sponsor, concurrently with the execution and delivery of this Agreement, hereby sells, transfers, assigns, sets over and otherwise conveys to the Issuer, without recourse (subject to Sections 2.03 and 2.05), all of its right, title and interest
in and to (i) each Mortgage Loan, including its Principal Balance (including any Additional Balances related thereto) and all collections in respect thereof received after the Cut-Off Date (excluding Interest Collections due on or prior to the
Cut-Off Date); (ii) property that secured a Mortgage Loan that is acquired by foreclosure or deed in lieu of foreclosure; (iii) the Sponsor’s rights under the hazard insurance policies; (iv) the Policy; (v) the Collection Account and the
Distribution Account; and (vi) any proceeds of the foregoing and any other Trust Property and all other assets included or to be included in the Trust for the benefit of Noteholders, the Residual Certificateholders and the Insurer; provided,
however, neither the Indenture Trustee nor the Trust assumes or shall assume the obligation under any Credit Line Agreement that provides for the funding of future advances to the Mortgagor thereunder, and neither the Trust nor the Indenture
Trustee shall be obligated or permitted to fund any such future advances. With respect to the Mortgage Loans, Additional Balances shall be part of the related Principal Balance and are hereby transferred to the Trust on the Closing Date pursuant to
this Section 2.01, and therefore 
  

 2 

 part of the Trust Property. On or prior to the Closing Date, the Sponsor shall cause the Insurer to deliver the Policy to
the Indenture Trustee for the benefit of the Noteholders. It is the intention of the Sponsor that the transfer and assignment contemplated by this Agreement shall constitute a sale of the Mortgage Loans and other Trust Property from the Sponsor to
the Issuer and that such sale should constitute a valid transfer and assignment of the Mortgage Loans and other Trust Property to the Issuer and the beneficial interest in and title to the Mortgage Loans and the other Trust Property shall not be
part of the Sponsor’s estate in the event of the filing of a bankruptcy petition by or against the Sponsor under any bankruptcy law. In the event that, notwithstanding the intent of the Sponsor, the transfer and assignment contemplated hereby
is held not to be a sale, this Agreement shall constitute a grant of a security interest in the property referred to in this Section 2.01 for the benefit of the Noteholders, the Residual Certificateholders and the Insurer. Prior to the last day of
the related Collection Period preceding the month in which the commencement of the Rapid Amortization Period occurs, to the extent that the Purchase Price of any Additional Balance is greater than the cash consideration paid by the Issuer for such
Additional Balance, the difference between such Purchase Price and the amount of such cash consideration shall be deemed to be a loan made to the Issuer by the Sponsor, which shall accrue interest and be payable according to the terms of the
Indenture. On and after the first day of the Collection Period in which the commencement of the Rapid Amortization Period occurs, to the extent that the Purchase Price of any Additional Balance is greater than the cash consideration paid by the
Issuer for such Additional Balance, the difference between such Purchase Price and the amount of such cash consideration shall be deemed to be a capital contribution made to the Issuer by the Sponsor. To the extent that the Sponsor receives cash
consideration for the entire Purchase Price of such Additional Balance on any future date, any corresponding capital contribution that had previously been deemed to have been made to the Issuer by the Sponsor shall be deemed to have been redeemed.

  
 (b) Each of the Servicer and the Sponsor agrees to take or
cause to be taken such actions and execute such documents (including, without limitation, the filing of all necessary continuation statements for the UCC-1 financing statements filed in the States of California, Delaware and New York, respectively,
which shall have been filed on or as of the Closing Date) describing the Cut-Off Date Principal Balances and Additional Balances and naming (i) in the case of the Cut-Off Date Principal Balances, (A) Terwin Advisors LLC as debtor and the Sponsor as
secured party, (B) the Sponsor as debtor and the Issuer as secured party and (ii) in the case of Additional Balances, (A) the Servicer as debtor and the Sponsor as secured party, and (B) the Sponsor as debtor and the Issuer as secured party and any
amendments to UCC-1 financing statements required to reflect a change in the name or corporate structure of the Issuer, the Servicer, Terwin Advisors LLC or the Sponsor or the filing of any additional UCC-1 financing statements due to the change in
the principal office of the Servicer, the Sponsor or Terwin Advisors LLC (within 10 days of any event necessitating such filing) as are necessary to perfect and protect the Noteholders’ and the Insurer’s interests in each Cut-Off Date
Principal Balance and Additional Balance and the proceeds thereof (other than maintaining possession by the Indenture Trustee of the Mortgage Loans and the Mortgage Files). 
  

 3 

 (c) In connection with such transfer and assignment, the Originator shall deliver to the Custodian on
behalf of the Indenture Trustee the following documents or instruments (each a “Related Document” and together for each Mortgage Loan, the “Mortgage File”) with respect to each Mortgage Loan on the Closing Date:

  
 (i) with respect to each Mortgage Loan, the
original Credit Line Agreement; 
  
 (ii) for each
Mortgage Loan that is not a MERS Mortgage Loan, an unsigned and un-notarized but otherwise complete original Assignment of Mortgage in blank; 
  
 (iii) (A) for each Mortgage Loan that is not a MERS Mortgage Loan, the original recorded Mortgage or, if in connection with any Mortgage
Loan, the original recorded Mortgage with evidence of recording thereon cannot be delivered on or prior to the Closing Date because of a delay caused by the public recording office where such original Mortgage has been delivered for recordation or
because such original Mortgage has been lost, the Originator shall deliver or cause to be delivered to the Indenture Trustee, a true and correct copy of such Mortgage, together with (i) in the case of a delay caused by the public recording office,
an Officer’s Certificate of the Originator stating that such original Mortgage has been dispatched to the appropriate public recording official or (ii) in the case of an original Mortgage that has been lost, a certificate by the appropriate
county recording office where such Mortgage is recorded, and (B) in the case of each MERS Mortgage Loan, the original Mortgage, noting the presence of the “Mortgage Identification Number” of such MERS Mortgage Loan; 
  
 (iv) if applicable, the original intervening assignments, if
any (“Intervening Assignments”), with evidence of recording thereon, showing a complete chain of title to the Mortgage from the originator to the Originator (and endorsed in blank in accordance with clause (ii) above) or, if any
such original Intervening Assignment has not been returned from the applicable recording office or has been lost, a true and correct copy thereof, together with (i) in the case of a delay caused by the public recording office, an Officer’s
Certificate of the Sponsor stating that such original Intervening Assignment has been dispatched to the appropriate public recording official for recordation or (ii) in the case of an original Intervening Assignment that has been lost, a certificate
by the appropriate county recording office where such Mortgage is recorded; 
  
 (v) either a title policy or guaranty title with respect to the related Mortgaged Property; 
  
 (vi) the original of any guaranty executed in connection with the Mortgage Loan; 
  
 (vii) the original of each assumption, modification,
consolidation or substitution agreement, if any, relating to the Mortgage Loans; and 
  
 (viii) any security agreement, chattel mortgage or equivalent instrument executed in connection with the Mortgage. 
  
 The Sponsor hereby confirms to the Indenture Trustee that it has caused the
portions of the Electronic Ledgers relating to the Mortgage Loans as of the Closing Date to be clearly and unambiguously marked, and has made, or will make, the appropriate entries in its general accounting records to indicate that such Mortgage
Loans have been transferred to the Trust. The 
  

 4 

 Servicer hereby confirms to the Indenture Trustee that it has clearly and unambiguously made appropriate entries in its
general accounting records indicating that such Mortgage Loans constitute part of the Trust and are serviced by it on behalf of the Trust in accordance with the terms hereof. 
  
 (d) Notwithstanding the characterization of the Notes as debt for federal, state and local income and franchise tax
purposes, the parties hereto intend to treat the transfer of the Mortgage Loans to the Trust as provided herein as a sale, for certain non-tax purposes, of all the Sponsor’s right, title and interest in and to the Mortgage Loans, whether now
existing or hereafter created, and the other property described above and all proceeds thereof. In the event such transfer is deemed not to be a sale for such purposes, the Sponsor grants to the Trust, a security interest in all of such party’s
right, title and interest in, to and under the Mortgage Loans, whether now existing or hereafter created, and the other property described above and all proceeds thereof; and this Agreement shall constitute a security agreement under applicable law.

  
 (e) Within 90 days following delivery of the Mortgage Files to
the Custodian on behalf of the Indenture Trustee pursuant to this Section, the Indenture Trustee shall cause the Custodian to review on its behalf or the Indenture Trustee shall review each such Mortgage File to ascertain that all required documents
set forth in this Section 2.01 have been executed and received, and that such documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule and in so doing the Custodian on behalf of the Indenture Trustee and/or the Indenture
Trustee may rely on the purported due execution and genuineness of any signature thereon. If within such 90-day period the Custodian on behalf of the Indenture Trustee and/or the Indenture Trustee finds any document constituting a part of a Mortgage
File not to have been executed or received or to be unrelated to the Mortgage Loans identified in said Mortgage Loan Schedule or, if in the course of its review, the Custodian on behalf of the Indenture Trustee and/or the Indenture Trustee
determines that such Mortgage File is otherwise defective in any material respect, the Indenture Trustee shall promptly upon the conclusion of its review or the Custodian’s review on its behalf notify the Originator and the Insurer, and the
Originator shall have a period of 90 days after such notice within which to correct or cure any such defect. Upon the completion of its 90-day review, the Custodian on behalf of the Indenture Trustee and/or the Indenture Trustee shall also notify
the Insurer of any Mortgage File with respect to which it has been delivered any items other than the original recorded Mortgage with respect to Section 2.01(c)(iii). 
  
 Neither the Custodian on behalf of the Indenture Trustee nor the Indenture Trustee shall have any responsibility for
reviewing any Mortgage File except as expressly provided in this Section 2.01. In reviewing any Mortgage File pursuant to this Section, the Indenture Trustee and the Custodian on behalf of the Indenture Trustee shall have no responsibility for
determining whether any document is valid and binding, whether the text of any assignment or endorsement is in proper or recordable form (except, if applicable, to determine if the Indenture Trustee is the assignee or endorsee), whether any document
has been recorded in accordance with the requirements of any applicable jurisdiction, or whether a blanket assignment is permitted in any applicable jurisdiction, whether any Person executing any document is authorized to do so or whether any
signature thereon is genuine, but shall only be required to determine whether a document has been executed, that it appears to be what it purports to be, and, where applicable, that it purports to be recorded. 
  

 5 

 Upon its actual knowledge or receipt of written notice from the Insurer that a Recordation Event has
occurred the Servicer shall take all necessary steps to prepare and submit for recordation an Assignment of Mortgage (or a blanket Assignment of Mortgage covering multiple Mortgage Loans if the same is permitted in any applicable jurisdiction).

  
 (f) The Originator shall sell, assign, transfer, set over and
otherwise convey without recourse to the Indenture Trustee all right, title and interest of the Originator in and to any Eligible Substitute Mortgage Loan delivered to the Indenture Trustee on behalf of the Trust by the Originator pursuant to
Section 2.03 or Section 2.05 hereof and all its right, title and interest to principal collected and interest accruing on such Eligible Substitute Mortgage Loan on and after the applicable Substitute Cut-Off Date; provided, however,
that the Originator shall reserve and retain all right, title and interest in and to payments of interest due on such Eligible Substitute Mortgage Loan prior to the applicable Substitute Cut-Off Date; provided, further, that neither
the Trust nor the Indenture Trustee shall be obligated to fund any future advances to the related Mortgagor under such Eligible Substitute Mortgage Loan. 
  
 In connection with any transfer and assignment of an Eligible Substitute Mortgage Loan to the Indenture Trustee on behalf of the Trust, the Originator
agrees to cause to be delivered to the Custodian on behalf of the Indenture Trustee the items described in Section 2.01(c) on the date of such transfer and assignment or, if a later delivery time is permitted by Section 2.01(c), then no later than
such later delivery time. 
  
 (g) Each Defective Mortgage Loan
that is required to be repurchased or substituted pursuant to the provisions this Agreement shall, upon such repurchase or substitution in accordance with the provisions hereof, be released from the Trust and from the lien created by the Indenture.
As to each Mortgage Loan released from the Trust in connection with the repurchase thereof or the conveyance of an Eligible Substitute Mortgage Loan therefor, the Indenture Trustee will transfer, assign, set over and otherwise convey without
recourse, to or upon the order of the Originator, all of its right, title and interest in and to such released Mortgage Loan and all the Trust’s right title and interest to principal collected and interest accruing on such released Mortgage
Loan on and after the first day of the calendar month in which such Mortgage Loan is released; provided, however, that the Trust shall reserve and retain all right, title and interest in and to payments of principal and interest
collected on such released Mortgage Loan prior to such date. 
  
 Section 2.02. Further Encumbrance of Trust Property. 
  
 (a) Immediately upon the conveyance to the Trust by the Sponsor of any item of the Trust Property pursuant to Section 2.01, all right, title and interest of the Sponsor in and to such item of Trust Property shall terminate, and all such
right, title and interest shall vest in the Trust, in accordance with the Trust Agreement and Sections 3802 and 3805 of the Delaware Statutory Trust Act (12 Del. Code, § 3801 et seq.). 
  
 (b) Immediately upon the vesting of the Trust Property in the Trust, the
Trust shall have the sole right to pledge or otherwise encumber, such Trust Property. Pursuant to the Indenture and contemporaneously with such property vesting in the Trust pursuant to (a) above, the Trust shall grant a security interest in the
Trust Property to secure the repayment of the Issuer 
  

 6 

 Secured Obligations. The Residual Certificates shall represent the beneficial ownership interest in the Trust Property,
and the Residual Certificateholders shall be entitled to receive distributions with respect thereto as set forth herein and in the Indenture and Trust Agreement. 
  
 (c) Prior to the payment in full on the Notes, the payment of all amounts due to the Insurer under the Insurance Agreement,
the termination of the Policy (as defined therein) and the surrender of the Policy by the Indenture Trustee to the Insurer, the Indenture Trustee shall hold the Trust Property on behalf of the Noteholders. Following the payment in full of the Notes
and the payment of all amounts due to the Insurer under the Insurance Agreement, and the release and discharge of the Indenture, all covenants of the Issuer under Article III of the Indenture shall, until payment in full of the Residual
Certificates, remain as covenants of the Issuer for the benefit of the Residual Certificateholders, enforceable by the Residual Certificateholders to the same extent as such covenants were enforceable by the Insurer and the Noteholders prior to the
discharge of the Indenture. Any rights of the Indenture Trustee under Article III of the Indenture, following the discharge of the Indenture, shall vest in the Residual Certificateholders. 
  
 Section 2.03. Acceptance by Indenture Trustee; Certain Substitution of
Mortgage Loans. 
  
 (a) The Indenture Trustee shall, at such
time as there are no Notes outstanding and all sums due to (i) the Indenture Trustee or any agent or counsel thereof pursuant to the Indenture, (ii) the Indenture Trustee pursuant to this Agreement and (iii) the Insurer pursuant to the Insurance
Agreement have been paid, release any remaining portion of the Trust Property to the Issuer. 
  
 (b) The Issuer hereby acknowledges its receipt of the Policy and the Mortgage Loans, and declares that the Indenture Trustee holds and will hold such instruments, and to the extent that any documents are delivered to
it pursuant to Section 2.01, will hold such documents, and all amounts received by it thereunder and hereunder, in trust, upon the terms herein set forth, for the use and benefit of all present and future Noteholders, and the Insurer. If the time to
cure any defect in respect of any Mortgage Loan of which the Indenture Trustee or the Insurer has notified the Sponsor and the Originator following the review pursuant to Section 2.01 has expired or if at any time any loss is suffered by the Issuer
or the Indenture Trustee on behalf of the Noteholders or the Insurer, in respect of any Mortgage Loan as a result of (i) a defect in any document constituting a part of its Mortgage File or (ii) an Assignment of Mortgage to the Indenture Trustee not
having been recorded as required by Section 2.01, then on the next succeeding Business Day, the Originator shall (i) substitute in lieu of such Mortgage Loan Eligible Substitute Mortgage Loans, and deliver the Substitution Amount applicable thereto
to the Servicer for deposit in the Collection Account or (ii) purchase such Mortgage Loan at a purchase price equal to the Loan Purchase Price thereof, which purchase price shall be delivered to the Servicer for deposit in the Collection Account.
Upon receipt of any Mortgage Loan or of written notification signed by a Servicing Officer to the effect that the Loan Purchase Price in respect of a Defective Mortgage Loan has been deposited into the Collection Account, then as promptly as
practicable, the Indenture Trustee shall execute such documents and instruments of transfer presented by the Originator, in each case without recourse, representation or warranty, and take such other actions as shall reasonably be requested by the
Originator to effect such transfer by the Trust of such Defective Mortgage Loan pursuant to this Section. It is understood and agreed 
  

 7 

 that the obligation of the Originator to accept a transfer of a Defective Mortgage Loan and to either convey an Eligible
Substitute Mortgage Loan or to make a deposit of any related Loan Purchase Price into the Collection Account shall constitute the sole remedy respecting such defect available to Noteholders and the Indenture Trustee against the Originator.

  
 (c) As to any Eligible Substitute Mortgage Loan, the
Originator shall, if required to deliver any such Eligible Substitute Mortgage Loan, deliver to the Custodian on behalf of the Indenture Trustee with respect to such Eligible Substitute Mortgage Loan such documents and agreements as are required to
be held by the Indenture Trustee in accordance with Section 2.01. For any Collection Period during which the Originator substitutes one or more Eligible Substitute Mortgage Loans, the Servicer shall determine the Substitution Amount which amount
shall be deposited by the Originator in the Collection Account at the time of substitution. All amounts received in respect of the Eligible Substitute Mortgage Loan during the Collection Period in which the circumstances giving rise to such
substitution occur shall not be a part of the Trust and shall not be deposited by the Servicer in the Collection Account. All amounts received by the Servicer during the Collection Period in which the circumstances giving rise to such substitution
occur in respect of any Defective Mortgage Loan so removed by the Trust shall be deposited by the Servicer in the Collection Account. Upon such substitution, the Eligible Substitute Mortgage Loan shall be subject to the terms of this Agreement in
all respects, and the Originator shall be deemed (i) to have made with respect to such Eligible Substitute Mortgage Loan as of the date of substitution, the covenants, representations and warranties set forth in Section 2.05 and (ii) to have
certified that such Mortgage Loan is an Eligible Substitute Mortgage Loan. The procedures applied by the Originator in selecting each Eligible Substitute Mortgage Loan shall not be materially adverse to the interests of the Indenture Trustee, the
Noteholders or the Insurer. 
  
 The Servicer, promptly following
the transfer of a Defective Mortgage Loan from, or an Eligible Substitute Mortgage Loan to, the Trust pursuant to this Section, shall amend the Mortgage Loan Schedule and make appropriate entries in its general account records to reflect such
transfer. The Servicer shall, following such transfer, appropriately mark its records to indicate that it is no longer servicing such Mortgage Loan on behalf of the Trust. The Originator, promptly following such transfer, shall make appropriate
entries in its general account records to reflect such transfer. 
  
 Section 2.04. Representations and Warranties Regarding the Originator and Servicer and the Sponsor. 
  
 (a) The Originator and Servicer (the “Company”) represents and warrants to the Indenture Trustee and the Insurer that as of the Closing Date.

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

 8 

 (ii) The Company has the power and authority to make, execute, deliver and perform this
Agreement and all of the transactions contemplated under this Agreement, and has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement. When executed and delivered, this Agreement will constitute
the legal, valid and binding obligation of the Company enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement
of creditors’ rights generally and by the availability of equitable remedies; 
  
 (iii) The Company is not required to obtain the consent of any other party or any consent, license, approval or authorization from, or
registration or declaration with, any governmental authority, bureau or agency in connection with the execution, delivery, performance, validity or enforceability of this Agreement, except for such consent, license, approval or authorization, or
registration or declaration, as shall have been obtained or filed, as the case may be, prior to the Closing Date; 
  
 (iv) The execution, delivery and performance of this Agreement by the Company will not violate any provision of any existing law or
regulation or any order or decree of any court applicable to the Company or any provision of the Certificate of Incorporation or Bylaws of the Company, or constitute a material breach of any mortgage, Indenture, contract or other agreement to which
the Company is a party or by which the Company may be bound; 
  
 (v) No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending, or to the knowledge of the Company threatened, against the Company or any of its properties or
with respect to this Agreement, or the Notes; 
  
 (vi) The Company is solvent and will not be rendered insolvent by the transactions described herein and, after giving effect to the transactions described herein, will not be left with an unreasonably small amount of capital with which to
engage in the ordinary course of its business and the Company does not intend to incur, nor does the Company believe that it has incurred, debts beyond its ability to pay as they mature. The Company does not contemplate the commencement of
insolvency, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, Indenture Trustee or similar official in respect of the Company or any of its respective assets; and 
  
 (vii) The Company is a member of MERS in good standing, and
will comply in all material respects with the rules and procedures of MERS in connection with the servicing of the MERS Mortgage Loans for as long as such Mortgage Loans are registered with MERS. 
  

 9 

 The representations and warranties set forth in this Section 2.04(a) shall survive the sale and
assignment of the Mortgage Loans to the Trust. Upon discovery of a breach of any representations and warranties which materially and adversely affects the interests of the Noteholders or the Insurer, the person discovering such breach shall give
written notice within five (5) days of discovery to the other parties and the Insurer. Within 30 days of its discovery or its receipt of notice of breach, or, with the prior written consent of a Responsible Officer of the Indenture Trustee and the
Insurer, such longer period specified in such consent, the Company shall cure such breach if such breach is curable and no material adverse effect would result to the Insurer, the Indenture Trustee, the Trust or the Noteholders. 
  
 (b) The Sponsor represents and warrants to the Indenture Trustee and the
Insurer that as of the Closing Date: 
  
 (i) The
Sponsor is a Delaware limited liability company, validly existing and in good standing under the laws of the State of Delaware, and has the statutory power to own its assets and to transact the business in which it is currently engaged. The Sponsor
is duly qualified to do business as a foreign limited liability company and is in good standing in each jurisdiction in which the character of the business transacted by it or any properties owned or leased by it requires such qualification and in
which the failure so to qualify would have a material adverse effect on the business, properties, assets, or condition (financial or other) of the Sponsor; 
  
 (ii) The Sponsor has the power and authority to make, execute, deliver and perform this Agreement and all of the transactions contemplated
under this Agreement, and has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement. When executed and delivered, this Agreement will constitute the legal, valid and binding obligation of the
Sponsor enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by the
availability of equitable remedies; 
  
 (iii) The
Sponsor is not required to obtain the consent of any other party or any consent, license, approval or authorization from, or registration or declaration with, any governmental authority, bureau or agency in connection with the execution, delivery,
performance, validity or enforceability of this Agreement; 
  
 (iv) The execution, delivery and performance of this Agreement by the Sponsor will not violate any provision of any existing law or regulation or any order or decree of any court applicable to the Sponsor or any
provision of the Certificate of Incorporation or bylaws of the Sponsor, or constitute a material breach of any mortgage, Indenture, contract or other agreement to which the Sponsor is a party or by which the Sponsor may be bound; 
  
 (v) No litigation or administrative proceeding of or before
any court, tribunal or governmental body is currently pending, or to the knowledge of the Sponsor threatened, against the Sponsor or any of its properties or with respect to this Agreement or the Notes; and 
  

 10 

 (vi) The Sponsor is solvent and will not be rendered insolvent by the transactions
described herein and, after giving effect to the transactions described herein, will not be left with an unreasonably small amount of capital with which to engage in the ordinary course of its business and the Sponsor does not intend to incur, nor
does the Sponsor believe that it has incurred, debts beyond its ability to pay as they mature. The Sponsor does not contemplate the commencement of insolvency, liquidation or consolidation proceedings or the appointment of a receiver, liquidator,
conservator, Indenture Trustee or similar official in respect of the Sponsor or any of its respective assets. 
  
 The representations and warranties set forth in this Section 2.04(b) shall survive the sale and assignment of the Mortgage Loans to the Trust. Upon discovery of a breach of any representations and warranties which
materially and adversely affects the interests of the Noteholders or the Insurer, the person discovering such breach shall give prompt written notice to the other parties, and the Insurer. Within 30 days of its discovery or its receipt of notice of
breach, or, with the prior written consent of a Responsible Officer of the Indenture Trustee and the Insurer, such longer period specified in such consent, the Sponsor shall cure such breach if such breach is curable and no material adverse effect
would result to the Insurer, the Indenture Trustee, the Trust or the Noteholders. 
  
 Section 2.05. Representations and Warranties of the Originator Regarding the Mortgage Loans; Removal of Certain Mortgage Loans. 
  
 (a) The Originator hereby makes the following representations and warranties on which the Issuer is deemed to have relied in
acquiring the Mortgage Loans and upon which the Insurer is deemed to rely in issuing the Policy. Such representations and warranties speak as of the execution and delivery of this Agreement, as of the Closing Date with respect to the Mortgage Loans
and as of the related Transfer Date with respect to the Eligible Substitute Mortgage Loans, but shall survive the sale, transfer, and assignment of the Mortgage Loans to the Issuer and the pledge thereof to the Indenture Trustee pursuant to the
Indenture, 
  
 (i) As of the Closing Date with
respect to the Mortgage Loans and as of the related Transfer Date with respect to any Eligible Substitute Mortgage Loans and, as of the date any Additional Balance is created, the information set forth in the Mortgage Loan Schedule for such Mortgage
Loans is true and correct in all material respects; 
  
 (ii) Each Mortgage Loan is being serviced by the Servicer and is being serviced in compliance with applicable law; 
  
 (iii) The applicable Cut-Off Date Principal Balance has not been assigned or pledged, and the Sponsor is the sole owner and holder of such
Cut-Off Date Principal Balance, free and clear of any and all liens, claims, encumbrances, participation interests, equities, pledges, charges or security interests of any nature, and has full right and authority, under all governmental and
regulatory bodies having jurisdiction over the ownership of the applicable Mortgage Loans, to sell, assign or transfer the same pursuant to this Agreement and upon its acquisition of the Mortgage Loans, as of the Closing Date, the Trust will be the
sole owner and holder of such Mortgage Loans free and clear of any and all liens claims, encumbrances, participating interests, equities, pledges, charges, or security interests of any nature; 
  

 11 

 (iv) Except with respect to liens released immediately prior to the transfer herein
contemplated, each Credit Line Agreement and each Mortgage Note and related Mortgage has not been assigned or pledged and immediately prior to the transfer and assignment herein contemplated, the Sponsor held good, marketable and indefeasible title
to, and was the sole owner and holder of, each Mortgage Loan subject to no liens, charges, mortgages, claims, participation interests, equities, pledges or security interests of any nature, encumbrances or rights of others (collectively, a
“Lien”); the Sponsor has full right and authority under all governmental and regulatory bodies having jurisdiction over the Sponsor, subject to no interest or participation of, or agreement with, any party, to sell and assign the
same pursuant to this Agreement; and immediately upon the transfers and assignments herein contemplated, the Sponsor shall have transferred all of its right, title and interest in and to each Mortgage Loan and the Trust will hold good, marketable
and indefeasible title to, and be the sole owner of, each Mortgage Loan subject to no Liens; 
  
 (v) As of the Closing Date with respect to the Mortgage Loans and the applicable Transfer Date with respect to any Eligible Substitute
Mortgage Loans, the related Mortgage is a valid, enforceable and subsisting first or second lien, as set forth on the Mortgage Loan Schedule with respect to each related Mortgaged Property, and as of the applicable Cut-Off Date the related Mortgaged
Property is free and clear of all encumbrances and liens having priority over the first or second lien, as applicable, of such Mortgage except for liens for (i) real estate taxes and special assessments not yet delinquent; (ii) any first mortgage
loan secured by such Mortgaged Property and specified on the Mortgage Loan Schedule; (iii) covenants, conditions and restrictions, rights of way, easements and other matters of public record as of the date of recording that are acceptable to
mortgage lending institutions generally or specifically reflected in the appraisals; and (iv) other matters to which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided by
such Mortgage; 
  
 (vi) As of and after the
Closing Date with respect to the Mortgage Loans and as of and after the applicable Transfer Date with respect to any Eligible Substitute Mortgage Loans, there is no valid right to rescission, offset, defense (including the defense of usury) or
counterclaim of any obligor under any Credit Line Agreement or Mortgage; 
  
 (vii) As of the Closing Date with respect to the Mortgage Loans and the applicable Transfer Date with respect to any Eligible Substitute Mortgage Loans, there is no delinquent recording or other tax or fee or
assessment lien against any related Mortgaged Property; 
  
 (viii) As of the Closing Date with respect to the Mortgage Loans and the applicable Transfer Date with respect to any Eligible Substitute Mortgage Loans, there is no proceeding pending or threatened for the total or
partial condemnation of any 
  

 12 

 Mortgaged Property, nor is such a proceeding currently occurring, and such property is in good repair and
is undamaged by waste, fire, earthquake or earth movement, windstorm, flood, other types of water damage, tornado or other casualty, so as to affect adversely the value of the Mortgaged Property as security for the Mortgage Loan or the use for which
the premises were intended; 
  
 (ix) As of the
Closing Date with respect to the Mortgage Loans and the applicable Transfer Date with respect to any Eligible Substitute Mortgage Loans, there are no mechanics’ or similar liens or claims which have been filed for work, labor or material
affecting the related Mortgaged Property which are, or may be, liens prior or equal to the lien of the related Mortgage and no rights are outstanding which could give rise to such liens, except liens which are fully insured against by the title
insurance policy or other title protection referred to in clause (xiv); 
  
 (x) No Minimum Monthly Payment is more than 59 days delinquent (measured on a contractual basis); 
  
 (xi) As of the Closing Date with respect to the Mortgage Loans and the applicable Transfer Date with respect to any Eligible Substitute
Mortgage Loans, for each Mortgage Loan, the related Mortgage File contains each of the documents and instruments specified to be included therein and such Mortgage File has been delivered to the Indenture Trustee; 
  
 (xii) The related Credit Line Agreement and the related
Mortgage at origination complied in all material respects with applicable local, state and federal laws and regulations, including, without limitation, all applicable predatory and abusive lending laws, usury, truth-in-lending, real estate
settlement procedures, consumer credit protection, equal credit opportunity, recording or disclosure laws applicable to the Mortgage Loans, and consummation of the transactions contemplated hereby, including without limitation the receipt of
interest, will not involve the violation of such laws; 
  
 (xiii) On the Closing Date with respect to the Mortgage Loans and to the extent not already included in such filing, on the applicable Transfer Date with respect to any Eligible Substitute Mortgage Loans, the Originator and the Sponsor has
filed UCC-1 financing statements with respect to such Mortgage Loans; 
  
 (xiv) A lender’s policy of title insurance, expressClose.com lender master protection program (standard mortgage guaranty) or a commitment (binder) to issue the same or an attorney’s certificate or opinion
of title was effective on the date of the origination of each mortgage loan and each such policy or certificate or opinion of title is valid and remains in full force and effect; 
  
 (xv) As of the Closing Date with respect to the Mortgage Loans and the applicable Transfer Date with respect
to any Eligible Substitute Mortgage Loans, none of the Mortgaged Properties is a mobile home or a manufactured housing unit; 
  

 13 

 (xvi) As of the Cut-Off Date for the Mortgage Loans no more than approximately 0.65% of
the Mortgage Loans (by Pool Balance) are secured by Mortgaged Properties located in one United States postal zip code; 
  
 (xvii) The Combined Loan-to-Value Ratio for each Mortgage Loan was not in excess of 100%; 
  
 (xviii) No selection procedure that identified the Mortgage
Loans as being less desirable or valuable than other comparable mortgage loans originated or acquired by the Originator or the Sponsor was utilized in selecting the Mortgage Loans for sale to the Trust; provided, however, that the
Mortgage Loans were selected from the pool of mortgage loans originated in connection with the Originator’s mortgage loan origination program; 
  
 (xix) The Originator and the Sponsor have not transferred the Mortgage Loans to the Trust with any intent to hinder, delay or defraud any
of its creditors; 
  
 (xx) The Minimum Monthly
Payment with respect to any Mortgage Loan is not less than the interest accrued at the applicable Loan Rate on the average daily Principal Balance during the interest period relating to the date on which such Minimum Monthly Payment is due;

  
 (xxi) As of the Closing Date with respect to
the Mortgage Loans and the applicable Transfer Date with respect to any Eligible Substitute Mortgage Loans, each Credit Line Agreement and each Mortgage Loan is genuine and is a legal, valid, binding and enforceable obligation of the related
Mortgagor, except as the enforceability thereof may be limited by the bankruptcy, insolvency or similar laws affecting creditors’ rights generally; 
  
 (xxii) As of the Closing Date with respect to the Mortgage Loans and the applicable Transfer Date with respect to any Eligible Substitute
Mortgage Loans, there has been no default, breach, violation or event of acceleration of any senior mortgage loan related to a Mortgaged Property that has not been cured by a party other than the Servicer; 
  
 (xxiii) The terms of each Mortgage Note and each Mortgage
have not been impaired, altered or modified in any respect, except by a written instrument which (if such instrument is secured by real property) has been recorded, if necessary, to protect the interest of the Noteholders and the Insurer and which
has been delivered to the Indenture Trustee. The substance of any such alteration or modification is reflected on the related Mortgage Loan Schedule and has been approved by the primary mortgage guaranty insurer, if any; 
  
 (xxiv) The definition of “prime rate” in each
Credit Line Agreement relating to a Mortgage Loan does not differ materially from the definition in the form of Credit Line Agreement in Exhibit D; 
  

 14 

 (xxv) The weighted average remaining term to maturity of the Mortgage Loans on a
contractual basis as of the Cut-Off Date is approximately 191 months. On each date that the Loan Rates relating to Mortgage Loans have been adjusted, interest rate adjustments on the Mortgage Loans were made in compliance with the related Mortgages
and Credit Line Agreement and applicable law and all required notices of interest rate adjustments were sent to each Mortgagor on a timely basis. Over the term of each Mortgage Loan, the Loan Rate may not exceed the related Loan Rate Cap, if any.
The Loan Rate Cap for each of the Mortgage Loans is 18.000%. With respect to the Mortgage Loans, the margins range between approximately 0.000% and 6.250% and the weighted average margin is approximately 2.771% as of the Cut-Off Date. The Loan Rates
on the Mortgage Loans range between 4.000% and 10.250%, and the weighted average Loan Rate on the Mortgage Loans is approximately 6.771%; 
  
 (xxvi) As of the Closing Date with respect to the Mortgage Loans and the applicable Transfer Date with respect to any Eligible Substitute
Mortgage Loans, each Mortgaged Property consists of a single parcel of real property with a one-to-four unit single family residence erected thereon, or an individual condominium unit, planned unit development unit or townhouse; 
  
 (xxvii) No more than approximately 38.82% (by Pool Balance)
of the Mortgage Loans are secured by real property improved by individual condominium units, planned development units, manufactured housing or two-to-four family residences erected thereon, and approximately 61.18% (by Pool Balance) of the Mortgage
Loans are secured by real property with a one-family residence erected thereon; 
  
 (xxviii) [Reserved]; 
  
 (xxix) The Credit Limits on the Mortgage Loans range between $5,375.00 and $400,000.00 with an average of $50,428.93. The average Credit
Limit Utilization Rate of the Mortgage Loans is approximately 93.34%. The Principal Balances on the Mortgage Loans range between $0.17 and $4000,000.00 with an average of approximately $43,310.96.; 
  
 (xxx) All of the Mortgage Loans are second liens, and either
(A) no consent for each Mortgage Loan was required by the holder of the related senior lien, if any, prior to the making of such Mortgage Loan or (B) such consent has been obtained and is contained in the related Mortgage File; 
  
 (xxxi) This Agreement constitutes a valid transfer and
assignment to the Trust of all right, title and interest of the Originator and of the Sponsor in and to the Cut-Off Date Principal Balances with respect to the applicable Mortgage Loans, all monies due or to become due with respect thereto and all
proceeds of such Cut-Off Date Principal Balances with respect to the Mortgage Loans and such funds as are from time to time deposited in the Collection Account (excluding any investment earnings thereon) and all other property specified in the
definition of “Trust” as being part of the corpus of the Trust conveyed to the Trust, and upon payment for the Additional Balances, will constitute a valid transfer and assignment to the Indenture Trustee of all right, title and

  

 15 

 interest of the Originator and of the Sponsor in and to the Additional Balances, all monies due or to
become due with respect thereto, and all proceeds of such Additional Balances and all other property specified in the definition of “Trust” relating to the Additional Balances; 
  
 (xxxii) As of the Closing Date no Mortgage Loan is the subject of foreclosure proceedings and, to the best
of the Originator’s knowledge, no obligor of any of the Mortgage Loans has filed for bankruptcy protection. As of the applicable Transfer Date, no Eligible Substitute Mortgage Loan is the subject of foreclosure proceedings and, to the best of
the Originator’s knowledge, no obligor of any of the Eligible Substitute Mortgage Loans has filed for bankruptcy protection. 
  
 (xxxiii) [Reserved]; 
  
 (xxxiv) Each Mortgage contains customary and enforceable provisions which render the rights and remedies of the holder thereof adequate
for the realization against the related Mortgaged Property of the benefits of the security, including (A) in the case of a Mortgage designated as a deed of trust, by trustee’s sale and (B) otherwise by judicial foreclosure. Subject to
applicable state law, there is no homestead or other exemption available to the Mortgagor which would materially interfere with the rights to sell the Mortgaged Property at a trustee’s sale or the right to foreclose upon the related Mortgage;

  
 (xxxv) As of the Closing Date with respect to
the Mortgage Loans and the applicable Transfer Date with respect to any Eligible Substitute Mortgage Loan, except for events permissible under Section 3.05 of this Agreement, there is no default, breach, violation or event of acceleration existing
under any Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration; and neither the
Originator nor the Sponsor has waived any default, breach, violation or event of acceleration; 
  
 (xxxvi) To the best knowledge of the Originator, all parties to the Mortgage Note and the Mortgage had legal capacity to execute the
Mortgage Note and the Mortgage and each Mortgage Note and Mortgage have been duly and properly executed by such parties; Each Mortgage and Mortgage Note is the legal, valid and binding obligation of the related Mortgagor and is enforceable by the
Issuer against the Mortgagor in accordance with its terms, except only as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and
by law; There is only one originally executed Mortgage Note or Credit Line Agreement and promissory Note, as applicable, for each Mortgage Loan; 
  
 (xxxvii) None of the Mortgage Loans represent Mortgage Loans with respect to which the related Mortgagor had a Credit Score of 600 or less
at the time of origination or whose Credit Score was unavailable. 
  

 16 

 (xxxviii) As of the Closing Date with respect to the Mortgage Loans and the applicable
Transfer Date with respect to any Eligible Substitute Mortgage Loan, no Mortgagor has been released, in whole or in part, except in connection with an assumption agreement which has been approved by the applicable title insurer (to the extent
required by such title insurer) and which is part of the Mortgage File delivered to the Indenture Trustee; 
  
 (xxxix) At the time of origination of each Mortgage Loan, the related prior lien was not more than 30 days delinquent. Additionally, as of
the Closing Date, no senior mortgage loan on the related Mortgaged Property was more than 59 days delinquent; 
  
 (xl) All required inspections, licenses and certificates with respect to the use and occupancy of all occupied portions of all property
securing the Mortgages have been made, obtained or issued, as applicable; 
  
 (xli) If the improvements securing a Mortgage Loan were in a federally designated special flood hazard area as of the date of origination, flood insurance to the extent required in Section 3.04 covers the related
Mortgaged Property (either by coverage under the federal flood insurance program or by coverage by private insurers); 
  
 (xlii) With respect to each Mortgage Loan, the related prior lien does not provide for negative amortization; 
  
 (xliii) With respect to each Mortgage Loan, the maturity
date of the Mortgage Loan is prior to the maturity date of the related prior lien if such prior lien provides for a balloon payment; 
  
 (xliv) All amounts received after the Cut-Off Date with respect to the Mortgage Loans to which neither the Originator nor the Sponsor are
entitled will be deposited into the Collection Account within one Business Day after the Closing Date; 
  
 (xlv) Each Mortgage Loan is secured by a property having an appraised value as of origination of $4,700,000 or less; 
  
 (xlvi) Except for events permissible under Section
3.05(a)(x) of this Agreement, there are no defaults in complying with the terms of the Mortgage, and either (1) any taxes, governmental assessments, insurance premiums, water, sewer and municipal charges or ground rents which previously became due
and owing have been paid, or (2) an escrow of funds has been established in an amount sufficient to pay for every such item which remains unpaid and which has been assessed but is not yet due and payable. There are no defaults in complying with the
terms of any senior mortgage on the related Mortgaged Property that have not been cured by anyone other than the Servicer, except for any payment defaults of less than 30 days. Except for payments in the nature of escrow payments, including without
limitation, taxes and insurance payments, the Originator has not advanced funds, or induced, solicited or knowingly received any advance of funds by a party other than the Mortgagor, directly or indirectly, for the payment of any amount required by
the Mortgage Note, except for interest accruing from the date of the Mortgage Note or date of disbursement of the Mortgage proceeds, whichever is greater, to the day which precedes by one month the Due Date of the first installment of principal and
interest; 
  

 17 

 (xlvii) With respect to each Mortgage Loan, the improvements upon each Mortgaged Property
are covered by a valid and existing hazard insurance policy with a carrier generally acceptable to the Servicer that provides for fire and extended coverage representing coverage not less than (a) the Credit Limit of such Mortgage Loan or (b) the
maximum insurable value of the Mortgaged Property; 
  
 (xlviii) No misrepresentation of a material fact or fraud in respect of the origination, modification or amendment of any Mortgage Loan has taken place on the part of any person, including, without limitation, the related Mortgagor, any
appraiser, any builder or developer or any party involved in the origination of such Mortgage Loan; 
  
 (xlix) With respect to the Mortgage Loans, the terms of the Mortgage Note and the Mortgage have not been impaired, altered or modified in
any material respect, except by a written instrument which has been recorded or is in the process of being recorded, if necessary, to protect the interests of the Insurer and the Noteholders and which has been or will be delivered to the Indenture
Trustee on behalf of the Trust, no Mortgage has been satisfied, cancelled or rescinded, in whole or in part, and the Mortgaged Property securing the Mortgage has not been released from the lien of the Mortgage, in whole or in part, nor has any
instrument been executed that would effect any such release, cancellation or rescission; 
  
 (l) As of the Cut-Off Date, no Mortgage Loan is more than 59 days delinquent in payment of principal and interest; 
  
 (li) Except for Mortgage Loans that are delinquent for a
time period less than that set forth in (l) above, there is no default, breach, violation or event of acceleration existing under any Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice and the
expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration; and neither the Originator, nor any other entity involved in originating or servicing a Mortgage Loan, has waived any default, breach,
violation or event of acceleration; 
  
 (lii)
None of the Mortgage Loans is a cooperative share mortgage; 
  
 (liii) Each appraisal of a Mortgage Loan that was used to determine the appraised value of the related Mortgaged Property was conducted generally in accordance with the Originator’s mortgage loan origination
program(s) and customary industry standards and included an assessment of the fair market value of the related mortgaged property at the time of the appraisal. The Mortgage File contains an appraisal of the applicable Mortgaged Property; 

 
 (liv) All individual insurance policies contain a
standard mortgagee clause naming the Servicer, its successors and assigns, as mortgagee. All premiums thereon have been paid. Each Mortgage obligates the Mortgagor thereunder to maintain all such insurance at the Mortgagor’s cost and expense,
and upon the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to obtain and maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from the Mortgagor; 
  

 18 

 (lv) Any advances made after the date of origination of a Mortgage Loan but prior to the
Cut-Off Date have been consolidated with the outstanding principal amount secured by the related Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and single repayment term reflected on the Mortgage Loan
Schedule. The consolidated principal amount does not exceed the original principal amount of the related Mortgage Loan; 
  
 (lvi) No improvement located on or being part of any Mortgaged Property is in violation of any applicable zoning law or regulation. All
inspections, licenses and certificates required to be made or issued with respect to all occupied portions of each Mortgaged Property and, with respect to the use and occupancy of the same, including, but not limited to, certificates of occupancy
and fire underwriting certificates, have been made or obtained from the appropriate authorities and such Mortgaged Property is lawfully occupied under the applicable law and all improvements which were included for the purpose of determining the
appraised value of the Mortgaged Property lie wholly within the boundaries and building restriction lines of such property, and no improvements on adjoining property encroach upon the Mortgage Property; 
  
 (lvii) The proceeds of each fixed rate and balloon Mortgage
Loan have been fully disbursed and there is no obligation on the part of the mortgagee to make future advances thereunder and any and all requirements as to completion of any on-site or off-site improvements and as to disbursement of any escrow
funds therefor have been complied with. All costs, fees and expenses incurred in making, closing or recording the Mortgage Loans were paid and the Mortgagor is not entitled to any refund of amounts paid or due under the Mortgage Note; 
  
 (lviii) No Mortgage Loan has a shared appreciation feature,
or other contingent interest feature; 
  
 (lix)
All parties which have had any interest in the Mortgage Loan, whether as originator, mortgagee, assignee, pledgee or otherwise, are (or, during the period in which they held and disposed of such interest, were): (A) organized under the laws of such
state, or (B) qualified to do business in such state, or (C) federal savings and loan associations or national banks having principal offices in such state, or (D) not doing business in such state so as to require qualification or licensing, or (E)
not otherwise required or licensed in such state. To the best of Originator’s knowledge, all parties which have had any interest in the Mortgage Loan were in compliance with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property is located or were not required to be licensed in such state; 
  
 (lx) Each document or instrument in the related Mortgage File is in a form generally acceptable to prudent mortgage lenders that regularly
originate or purchase mortgage loans comparable to the Mortgage Loans for sale to prudent investors in the secondary market that invest in mortgage loans such as the Mortgage Loans; 
  

 19 

 (lxi) Each original Mortgage was recorded and all subsequent assignments of the original
Mortgage (other than the assignment to the Indenture Trustee) have been recorded in the appropriate jurisdictions wherein such recordation is necessary to perfect the lien thereof as against creditors of the Originator and the Sponosr, or is in the
process of being recorded; 
  
 (lxii) No Mortgage
Loan was originated under a buydown plan; 
  
 (lxiii) (A) None of the Revolving Credit Loans are classified as (1) a “high cost” loan under the Home Ownership and Equity Protection Act of 1994 or (2) a “high cost,” “high risk,” “threshold,”
“covered,” or “predatory” loan under any other applicable state, federal or local law and (B) no Revolving Credit Loan is subject to the Home Ownership and Equity Protection Act of 1994 or any comparable state, federal or local
law; 
  
 (lxiv) The Servicer for each Mortgage
Loan will accurately and fully report its borrower credit files to all three credit repositories in a timely manner; 
  
 (lxv) No proceeds from any Mortgage Loan were used to purchase single-premium credit insurance policies; 
  
 (lxvi) No Mortgage Loan has a prepayment penalty term longer
than five years after its origination; 
  
 (lxvii) Each Mortgage Loan conforms, and all Mortgage Loans in the aggregate conform, in all material respects, to the descriptions thereof set forth in the Prospectus Supplement; 
  
 (lxviii) Each Mortgage Loan was originated on or after
January 3, 2000; 
  
 (lxix) The Originator
represents and warrants that the it currently operates or actively participates in an on-going business (A) to originate single family mortgage loans (“Loans”), and/or (B) to make periodic purchases of Loans from originators or
sellers, and/or (C) to issue and/or purchase securities or bonds supported by the Loans, a portion of which Loans are made to borrowers who are: 
  
 (a) low-income families (families with incomes of 80% or less of area median income) living in low-income areas (a census tract or block numbering area
in which the median income does not exceed 80 percent of the area median income); or 
  
 (b) very low-income families (families with incomes of 60% or less of area median income). 
  
 (lxx) Each Mortgage contains a provision for the acceleration of the payment of the unpaid principal balance of the related Mortgage Loan
in the event the related Mortgaged Property is sold or transferred without the prior consent of the mortgagee thereunder; 
  

 20 

 (lxxi) Each Mortgage Loan was originated substantially in accordance with
Originator’s underwriting criteria, which conform to the underwriting criteria set forth in the Prospectus Supplement. 
  
 (lxxii) There exists no violation of any local, state or federal environmental law, rule or regulation in respect of any Mortgaged
Property which violation has or could have a material adverse effect on the market value of such Mortgaged Property. Originator has no knowledge of any pending action or proceeding directly involving any such Mortgaged Property in which compliance
with any environmental law, rule or regulation is in issue; and, to the best of Originator’s knowledge, nothing further remains to be done to satisfy in full all requirements of each such law, rule or regulation constituting a prerequisite to
the use and enjoyment of any such Mortgaged Property; 
  
 (lxxiii) The Originator has caused or will cause to be performed any and all acts required to be performed to preserve the rights and remedies of the Indenture Trustee in any insurance policies applicable to the Mortgage Loans including,
without limitation, any necessary notifications of insurers, assignment of policies or interests therein, and establishments of co-insured, joint loss payee and mortgagee rights in favor of the Indenture Trustee; 
  
 (lxxiv) The related Mortgage Note is not and has not been
secured by any collateral, pledged account or other security except the lien of the corresponding Mortgage; 
  
 (lxxv) With respect to each Mortgage constituting a deed of trust, a trustee, duly qualified under existing law to serve as such, has been
properly designated and currently so serves and is named in such Mortgage, and no fees or expenses are or will become payable by the Noteholders or the Trust to the trustee under the deed of trust, except in connection with a trustee’s sale
after default by the Mortgagor; 
  
 (lxxvi) Each
Mortgagor has executed a statement to the effect that such Mortgagor has received all disclosure materials including the notice of the right of cancellation or rescission required by applicable law with respect to the making of the Mortgage Loan and
any waiver of any right of cancellation or rescission exercised by the Mortgagor was in accordance with applicable law and is binding on the Mortgagor; 
  
 (lxxvii) The security interest created pursuant to Section 2.01 hereof is a valid and continuing security interest (as defined in the UCC)
in favor of the Issuer in the property sold, transferred, assigned, set over and otherwise conveyed from the Sponsor to the Issuer pursuant to this Agreement, which security interest is prior to all other Liens and is enforceable as such against
creditors of and purchasers from the Sponsor; 
  
 (lxxviii) Neither the Originator nor the Sponsor have authorized the filing of and neither party is aware of any financing statements against the Originator or the Sponsor that include a description of collateral covering the property sold,
transferred, assigned, set over and otherwise conveyed from the Originator to the Sponsor or from the Sponsor to the Issuer pursuant to this Agreement other than any financing statement relating to the security interest granted to the Issuer
hereunder that has not been terminated; 
  

 21 

 (lxxix) The Originator is not aware of any judgment or tax lien filings against it;

  
 (lxxx) None of the Mortgage Notes has any
marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Issuer; 
  
 (lxxxi) The pool tape from which the selection of the Mortgage Loans being acquired on the Closing Date was made available to the
accountants that are providing a comfort letter in connection with the Prospectus Supplement and with respect to the Mortgage Loans as of the Closing Date, the information on the pool tape was complete and accurate as of its date and included a
description of the same Mortgage Loans that are described on the Schedule of Mortgage Loans and the payments due thereunder as of the Closing Date; 
  
 (lxxxii) With respect to each Mortgage Loan, the payments required of the related Mortgagor will be such that the Mortgage Loan will fully
amortize over its amortization term; and 
  
 (lxxxiii) The sale, transfer, assignment and conveyance of the Mortgage Loans by the Sponsor to the Issuer pursuant to the Sale and Servicing Agreement is not subject to and will not result in any tax, fee or governmental charge payable by
the Sponsor, the Issuer or the Indenture Trustee to any federal, state or local governments (“Transfer Taxes”) other than Transfer Taxes which have or will have been paid by the Originator or the Sponsor as due; provided,
that in the event that the Trust or the Indenture Trustee receives actual notice of any Transfer Taxes arising out of the transfer, assignment or conveyance of the Mortgage Loans, on written demand by the Issuer or the Indenture Trustee, or upon the
Originator’s otherwise being given notice thereof by the Issuer or the Indenture Trustee, the Originator shall pay, and otherwise indemnify and hold the Issuer, the Indenture Trustee and the Insurer harmless, on an after-tax basis, from and
against any and all Transfer Taxes, it being understood that the Noteholders, the Issuer, the Indenture Trustee and the Insurer shall have no obligation to pay any such Transfer Taxes. 
  
 With respect to the representations and warranties set forth in this Section 2.05 that are made to the best of the Originator’s
knowledge or as to which the Originator has no knowledge, if it is discovered by the Originator, the Servicer, the Insurer, or a Responsible Officer of the Indenture Trustee that the substance of such representation and warranty is inaccurate and
such inaccuracy materially and adversely affects the value of the related Mortgage Loan then, notwithstanding the Originator’s lack of knowledge with respect to the substance of such representation and warranty being inaccurate at the time the
representation or warranty was made, such inaccuracy shall be deemed a breach of the applicable representation or warranty. Notwithstanding the foregoing, a breach of any of the representations and warranties set forth in clauses (lxiii) through
(lxvi) of this Section 2.05 will be deemed to materially and adversely affect the value of the related Mortgage Loan. 
  

 22 

 (b) It is understood and agreed that the representations and warranties set forth in this Section 2.05
shall survive delivery of the respective Mortgage Files to the Indenture Trustee pursuant to Section 2.01 and the termination of the rights and obligations of the Servicer pursuant to Section 5.04 or 6.02. Upon discovery by the Sponsor, the
Originator, the Servicer, the Insurer, a Responsible Officer of the Indenture Trustee or a Class B Certificateholder of a breach of any of the foregoing representations and warranties, without regard to any limitation set forth therein concerning
the knowledge of the Originator as to the facts stated therein, which materially and adversely affects the interests of the Trust or the Noteholders or the Insurer in the related Mortgage Loans, the party discovering such breach shall give prompt
written notice to the other parties, to the Class B Certificateholders and to the Insurer. Within 90 days of its discovery or its receipt of notice of such breach, the Originator shall use all reasonable efforts to cure such breach or shall, not
later than the Business Day next preceding the Payment Date in the month following the Collection Period in which any such cure period expired (or such later date that is acceptable to the Indenture Trustee or the Insurer as evidenced by their
written consents), either (a) repurchase such Mortgage Loan from the Trust at the Loan Purchase Price or (b) substitute an Eligible Substitute Mortgage Loan, each in the same manner and subject to the same conditions as set forth in Section 2.03 and
the representations and warranties set forth in Section 2.04; provided, however, that the cure for any breach of a representation and warranty relating to the characteristics of the Mortgage Loans in the aggregate shall be a repurchase
of or substitution for only the Mortgage Loans necessary to cause such characteristics to be in compliance with the related representation and warranty. Upon accepting such transfer and making any required deposit into the Collection Account or
substitution of an Eligible Substitute Mortgage Loans, as the case may be, the Originator shall be entitled to receive an instrument of assignment or transfer from the Indenture Trustee to the same extent as set forth in Section 2.03 with respect to
the transfer of Mortgage Loans under that Section. The Insurer shall be notified of any substitution of an Eligible Substitute Mortgage Loan. 
  
 It is understood and agreed that the obligation of the Originator to repurchase a Mortgage Loan as to which a breach has occurred and is continuing and
deposit in the Collection Account the Loan Purchase Price or to substitute an Eligible Substitute Mortgage Loan, as the case may be, shall constitute the sole remedy against the Originator respecting such breach available to Noteholders, the
Indenture Trustee on behalf of Noteholders and the Insurer; provided, however, that the Originator shall defend and indemnify the Sponsor, the Indenture Trustee, the Insurer and the Noteholders against all reasonable costs and
expenses, and all losses, damages, claims and liabilities, including reasonable fees and expenses of counsel and the amount of any settlement entered into with the consent of the Originator (such consent not to be unreasonably withheld), which may
be asserted against or incurred by any of them as a result of any third-party action arising out of any breach of any such representation and warranty. Notwithstanding the foregoing, with regard to any breach of the representation and warranty set
forth in Section 2.05(a)(xxxi), the Originator shall pay to the Trust the Loan Purchase Price. 
  

 23 

 Section 2.06. Covenants of the Sponsor. The Sponsor hereby covenants that: 
  
 (a) Security Interests. The Sponsor will not sell, pledge, assign or
transfer to any other Person, or grant, create, incur, assume or suffer to exist any Lien on any Mortgage Loans, whether now existing or hereafter created, or any interest therein; the Sponsor will notify the Indenture Trustee and the Insurer of the
existence of any Lien on any Mortgage Loans immediately upon discovery thereof; and the Sponsor will defend the Trust’s right, title and interest (including the Trust’s security interest) in, to and under the Mortgage Loans, whether now
existing or hereafter created, against all claims of third parties claiming through or under the Sponsor; provided, however, that nothing in this Section 2.06(a) shall prevent or be deemed to prohibit the Sponsor from suffering to
exist upon any of the Mortgage Loans any Liens for municipal or other local taxes and other governmental charges if such taxes or governmental charges shall not at the time be due and payable or if the Sponsor shall currently be contesting the
validity thereof in good faith by appropriate proceedings and shall have set aside on its books adequate reserves with respect thereto. 
  
 (b) UCC-1 Financing Statements. On the Closing Date with respect to the Mortgage Loans and, to the extent not already included in such filing, on
the applicable Transfer Date with respect to any Eligible Substitute Mortgage Loans, the Sponsor will file UCC-1 financing statements with respect to such Mortgage Loans. 
  
 (c) Negative Pledge. The Sponsor hereby agrees not to transfer, assign, exchange, pledge, finance, hypothecate, grant
a security interest in or otherwise convey the Residual Certificates except in accordance with Sections 5.04 and 6.02 hereof and in accordance with the Insurance Agreement and the Trust Agreement. 
  
 (d) Downgrading. The Sponsor will not engage in any activity which
would result in a downgrading or withdrawal of the ratings on the Notes without regard to the effect of the Policy. 
  
 (e) Amendment to Limited Liability Company Agreement. The Sponsor will not amend its Limited Liability Company Agreement without prior written
notice to the Indenture Trustee and the Rating Agencies and the prior written consent of the Insurer which consent shall not be unreasonably withheld. 
  
 (f) Principal Place of Business. The Sponsor’s principal place of business is in California, and the Sponsor will not change its principal
place of business without prior written notice to the Indenture Trustee, the Rating Agencies and the Insurer. 
  
 (g) No Notification of Mortgagors. The Sponsor hereby agrees not to notify Mortgagors of the transfer of the Mortgage Loans to the Trust unless
required by the terms of the Mortgage Loans or applicable law. 
  
 Section 2.07. [Reserved]. 
  
 Section 2.08.
Execution and Authentication of Notes. The Indenture Trustee, on behalf of the Issuer, has caused to be authenticated and delivered to or upon the order of the Sponsor, in exchange for the Issuer, concurrently with the sale, assignment and
conveyance to the Indenture Trustee of the Issuer, one Class of Notes in authorized denominations and the Residual Certificates, evidencing the ownership of the Issuer. 
  

 24 

 Section 2.09. Tax Treatment. It is the intention of the Sponsor and the Residual
Certificateholders that the Notes will be indebtedness of the Issuer for federal, state and local income and franchise tax purposes and for purposes of any other tax imposed on or measured by income. The Sponsor, the Indenture Trustee and each
Noteholder (or Note Owner) by acceptance of its Note (or, in the case of a Note Owner, by virtue of such Note Owner’s acquisition of a beneficial interest therein) agrees to treat the Notes (or beneficial interest therein), for purposes of
federal, state and local income or franchise taxes and any other tax imposed on or measured by income, as indebtedness of the Issuer secured by the assets of the Trust and to report the transactions contemplated by this Agreement on all applicable
tax returns in a manner consistent with such treatment. Each Noteholder agrees that it will cause any Note Owner acquiring an interest in a Note through it to comply with this Agreement as to treatment of the Notes as indebtedness for federal, state
and local income and franchise tax purposes and for purposes of any other tax imposed on or measured by income. The Servicer will prepare and file all tax reports required hereunder consistent with this Agreement except as may be required by or
provided in Section 3.15. 
  
 ARTICLE III 
  
 ADMINISTRATION AND SERVICING 
 OF MORTGAGE LOANS 
  
 Section 3.01. The Servicer. 
  
 (a) The Servicer is hereby authorized to act as agent for the Trust and in such capacity shall manage, service, administer and make collections on the
Mortgage Loans and perform the other actions under this Agreement. The Servicer shall service and administer the Mortgage Loans in a manner consistent with the terms of this Agreement and with general industry practice and shall have full power and
authority, acting alone or through a subservicer, to do any and all things in connection with such servicing and administration which it may deem necessary or desirable, it being understood, however, that the Servicer shall at all times remain
responsible to the Indenture Trustee, the Noteholders, the Residual Certificateholders and the Insurer for the performance of its duties and obligations hereunder in accordance with the terms hereof. Any amounts received by any subservicer in
respect of a Mortgage Loan shall be deemed to have been received by the Servicer whether or not actually received by it. Without limiting the generality of the foregoing, the Servicer shall continue, and is hereby authorized and empowered by the
Trust, to execute and deliver, on behalf of the Trust, 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 and to make deposits to and withdrawals from the Collection Account. The Indenture Trustee and the Owner Trustee shall, upon the written request of a Servicing Officer, furnish the Servicer with any powers of attorney and
other documents necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties hereunder and consistent with the Indenture Trustee’s internal policies. The Servicer in such capacity may also consent to the
placing of a lien senior to that of any Mortgage on the related Mortgaged Property, provided that 
  
 (i) such Mortgage succeeded to a first lien position after the related Mortgage Loan was conveyed to the Trust and, immediately following
the placement of 
  

 25 

 such senior lien, such Mortgage is in a second lien position and the outstanding principal amount of the
mortgage loan secured by such subsequent senior lien is no greater than the outstanding principal amount of the senior mortgage loan secured by the Mortgaged Property as of the date the related Mortgage Loan was originated; or 
  
 (ii) the Mortgage relating to such Mortgage Loan was in a
second lien position as of the Cut-Off Date and the new senior lien secures a mortgage loan that refinances an existing first mortgage loan and the outstanding principal amount of the replacement first mortgage loan immediately following such
refinancing is not greater than the outstanding principal amount of such existing first mortgage loan at the date of origination of such Mortgage Loan; 
  
 provided, further, that such senior lien does not secure a note that provides for negative amortization. 
  
 The Servicer may also, without prior approval from the Rating Agencies or the
Insurer, increase the Credit Limits on Mortgage Loans provided that (i) new appraisals are obtained and the Combined Loan-to-Value Ratios of the Mortgage Loans after giving effect to such increase are less than or equal to the Combined Loan-to-Value
Ratios of the Mortgage Loans as of the Cut-Off Date and (ii) such increases are consistent with the Servicer’s credit and collection policies. No material change or departure from the Servicer’s credit and collection policies with respect
to any Mortgage Loans as in effect as of the Closing Date shall be permitted without the prior written consent of the Insurer. 
  
 In addition, the Servicer may agree to changes in the terms of a Mortgage Loan at the request of the Mortgagor; provided that (i) such changes do
not materially and adversely affect the interests of Noteholders, the Residual Certificateholders or the Insurer, (ii) such changes are consistent with prudent and customary business practice for enhancing recoveries on mortgage loans as evidenced
by a certificate signed by a Servicing Officer delivered to the Indenture Trustee and the Insurer and (iii) the Rating Agencies and the Insurer are promptly notified of the changes. 
  
 In addition to the foregoing, the Servicer may solicit Mortgagors to change any other terms of the related Mortgage Loans;
provided that such changes (i) do not materially and adversely affect the interest of Noteholders or the Insurer, (ii) are consistent with prudent and customary business practice for enhancing recoveries on mortgage loans as evidenced by a
certificate signed by a Servicing Officer delivered to the Indenture Trustee and the Insurer and (iii) do not adjust the maturity date of such Mortgage Loan past the date that is six months before the Final Scheduled Payment Date of the Notes. The
Servicer shall not solicit Mortgagors with respect to new loans (including mortgage loans) that are not Mortgage Loans nor convey information concerning Mortgagors to any Person for such purpose. 
  
 The relationship of the Servicer (and of any successor to the Servicer as
servicer under this Agreement) to the Indenture Trustee under this Agreement is intended by the parties to be that of an independent contractor and not that of a joint venturer, partner or agent. 
  

 26 

 (b) In the event that the rights, duties and obligations of the Servicer are terminated hereunder, any
successor to the Servicer in its sole discretion may, to the extent permitted by applicable law, terminate the existing subservicer arrangements with any subservicer, without charge, or assume the terminated Servicer’s rights under such
subservicing arrangements which termination or assumption will not violate the terms of such arrangements. 
  
 Section 3.02. Collection of Certain Mortgage Loan Payments; Remittances 
  
 (a) Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Mortgage
Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Mortgage Loans. Consistent with
the foregoing, and without limiting the generality of the foregoing, the Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees which may be collected in the ordinary course of servicing such Mortgage
Loans and (ii) arrange with a Mortgagor a schedule for the payment of interest due and unpaid; provided that such arrangement is consistent with prudent and customary business practice for enhancing recoveries with respect to the mortgage
loans it owns or services; provided, further, that notwithstanding such arrangement such Mortgage Loans will be included in the information regarding delinquent Mortgage Loans set forth in the Servicing Certificate and monthly
statement to Noteholders pursuant to Section 4.01. 
  
 (b) The
Sponsor shall cause to be established, and the Servicer shall maintain, a Collection Account to be held by the Servicer in the name of the Trust for the benefit of the Noteholders, the Indenture Trustee and the Insurer, as their interests may
appear. Each account shall be an Eligible Account. With respect to each Servicer Remittance Date, the Servicer shall invest funds in the Collection Account in Eligible Investments that shall mature not later than the related Servicer Remittance Date
and such Eligible Investments shall not be sold or disposed of prior to its maturity. All income and gain realized from any investment in Eligible Investments of funds in the Collection Account shall be for the benefit of the Servicer as
compensation and the Servicer shall be permitted from time to time to withdraw such amounts from the Collection Account. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the
Collection Account by the Servicer out of its own funds immediately as realized. 
  
 (c) The Servicer, or the Sponsor, as the case may be, shall deposit into the Collection Account within one Business Day following receipt thereof the following payments and collections received or made by it (without
duplication): 
  
 (i) all collections on and in
respect of the Mortgage Loans; 
  
 (ii) the
amounts, if any, deposited to the Collection Account pursuant to Section 3.04; 
  
 (iii) Net Liquidation Proceeds; 
  
 (iv) Insurance Proceeds (including, for this purpose, any amount required to be credited by the Servicer pursuant to the last sentence of
Section 3.04 and excluding 
  

 27 

 the portion thereof, if any, that has been applied to the restoration or repair of the related Mortgaged
Property or released to the related Mortgagor in accordance with the normal servicing procedures of the Servicer); 
  
 (v) any amounts required to be deposited therein pursuant to Section 7.01; 
  
 (vi) any amounts drawn under the Policy pursuant to Section 8.4(f) of the Indenture, but only to be used for
the payment of the items specified in Sections 8.7(b)(iv) and (vi) of the Indenture, as applicable; and 
  
 (vii) the amounts, if any, required to be deposited therein by the Originator pursuant to Section 2.05(b) hereof; 
  
 provided, however, that with respect to each Collection Period, the Servicer
shall be permitted to retain from payments in respect of interest on the Mortgage Loans, the Servicing Fee for such Collection Period. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that,
without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing Foreclosure Profits, fees (including annual fees) or late charge penalties payable by Mortgagors, or amounts received by
the Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments, excess pay off amounts and similar items. The Servicer shall remit all Foreclosure Profits to the Sponsor. 
  
 (d) The Servicer shall on the Closing Date deposit into the Distribution
Account any amounts representing payments on, and any collections in respect of, the Mortgage Loans received after the Cut-Off Date and prior to the Closing Date (exclusive of payments in respect of accrued interest due on or prior to such Cut-Off
Date). On each Servicer Remittance Date, the Servicer shall withdraw all funds then held in the Collection Account (other than amounts the Servicer is entitled to retain pursuant to this Section 3.02) and deposit such funds in the Distribution
Account. The Indenture Trustee shall hold such funds uninvested. The Servicer shall notify the Indenture Trustee and the Insurer in writing on each Determination Date of the amount of payments and collections in the Collection Account allocable to
Interest Collections and Principal Collections for the related Payment Date. 
  
 Section 3.03. Withdrawals from the Distribution Account. From time to time, withdrawals may be made from the Distribution Account by the Indenture Trustee for the following purposes: 
  
 (i) If not received by the Servicer pursuant to Section
3.02(c), to the Servicer as payment for its Servicing Fee pursuant to Section 3.08; 
  
 (ii) To withdraw and retain any earnings on or investment income with respect to funds in or credited to the Distribution Account;

  
 (iii) To make or to permit the Indenture
Trustee to make distributions and payments pursuant to Section 8.7 of the Indenture; 
  

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 (iv) To pay to the Servicer any Liquidation Expenses not reimbursed prior to the deposit
of Net Liquidation Proceeds to the Distribution Account; 
  
 (v) Prior to the last day of the Collection Period preceding month in which the commencement of the Rapid Amortization Period occurs, to pay to the Sponsor the amount of any Additional Balances related to HELOC
Mortgage Loans included in the Pool as and when created during the related Collection Period; provided, that the aggregate amount so paid to the Sponsor in respect of Additional Balances with respect to the HELOC Mortgage Loans at any time
during any Collection Period shall not exceed the amount of Principal Collections theretofore received for such Collection Period; and 
  
 (vi) Upon termination of the Trust, to make any payments required by Section 7.01. 
  
 If the Servicer deposits in the Distribution Account any amount not required
to be deposited therein or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non payment, the Indenture Trustee shall, upon request of the Servicer, immediately withdraw
such amount from the Distribution Account, and any such amounts shall not be included in the amounts to be deposited in the Distribution Account pursuant to Section 3.02(c), any provision herein to the contrary notwithstanding. 
  
 Section 3.04. Maintenance of Hazard Insurance; Property Protection
Expenses. The Servicer shall cause to be maintained for each Mortgage Loan hazard insurance naming the Servicer or its successors or assigns as loss payee thereunder providing extended coverage in an amount which is at least equal to the lesser
of (i) the maximum insurable value of the improvements securing such Mortgage Loan from time to time or (ii) the combined principal balance owing on such Mortgage Loan and any mortgage loan senior to such Mortgage Loan from time to time. The
Servicer shall also maintain on property acquired upon foreclosure, or by deed in lieu of foreclosure, hazard insurance with extended coverage in an amount which is at least equal to the lesser of (i) the maximum insurable value from time to time of
the improvements which are a part of such property or (ii) the combined principal balance owing on such Mortgage Loan and any mortgage loan senior to such Mortgage Loan at the time of such foreclosure or deed in lieu of foreclosure plus accrued
interest and the good-faith estimate of the Servicer of related Liquidation Expenses to be incurred in connection therewith. Amounts collected by the Servicer under any such policies shall be deposited in the Collection Account to the extent called
for by Section 3.02. In cases in which any Mortgaged Property is located in a federally designated flood area, the hazard insurance to be maintained for the related Mortgage Loan shall include flood insurance. All such flood insurance shall be in
such amounts as are required under applicable guidelines of the Federal Flood Emergency Act. The Servicer shall be under no obligation to require that any Mortgagor maintain earthquake or other additional insurance and shall be under no obligation
itself to maintain any such additional insurance on property acquired in respect of a Mortgage 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. If the
Servicer shall obtain and maintain a blanket policy consistent with prudent industry standards insuring against hazard losses on all of the Mortgage Loans in an aggregate amount prudent under industry standards, it shall (a) conclusively be deemed
to have satisfied its obligations as 
  

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 set forth in the first sentence of this Section 3.04 and (b) if there shall have been a loss which would have been
covered by such policy, deposit in the Collection Account without right of reimbursement, as the case may be, the amount not otherwise payable under the blanket policy because of any deductible clause. 
  
 Section 3.05. Assumption and Modification Agreements. In any case in
which a Mortgaged Property has been or is about to be conveyed by the Mortgagor, the Servicer shall exercise its right to accelerate the maturity of such Mortgage Loan consistent with the then current practice of the Servicer and without regard to
the inclusion of such Mortgage Loan in the Trust. If it elects not to enforce its right to accelerate or if it is prevented from doing so by applicable law, the Servicer (so long as such action conforms with the underwriting standards generally
acceptable in the industry at the time for new origination) is authorized to take or enter into an assumption and modification agreement from or with the Person to whom such Mortgaged Property has been or is about to be conveyed, pursuant to which
such Person becomes liable under the Credit Line Agreement and, to the extent permitted by applicable law, the Mortgagor remains liable thereon. The Servicer shall notify the Indenture Trustee that any assumption and modification agreement has been
completed by delivering to the Indenture Trustee an Officer’s Certificate signed by a Servicing Officer certifying that such agreement is in compliance with this Section 3.05 and by forwarding to the Indenture Trustee the original copy of such
assumption and modification agreement. Any such assumption and modification agreement shall, for all purposes, be considered a part of the related Mortgage File to the same extent as all other documents and instruments constituting a part thereof.
No change in the terms of the related Credit Line Agreement may be made by the Servicer in connection with any such assumption to the extent that such change would not be permitted to be made in respect of the original Credit Line Agreement pursuant
to the fourth paragraph of Section 3.01(a). Any fee collected by the Servicer for entering into any such agreement will be retained by the Servicer as additional servicing compensation. 
  
 Section 3.06. Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage Loans. 
  
 (a) The Servicer shall foreclose upon or otherwise comparably convert to
ownership Mortgaged Properties securing such of the Mortgage Loans as come into and continue in default when, in the opinion of the Servicer based upon the practices and procedures referred to in the following sentence, no satisfactory arrangements
can be made for collection of delinquent payments pursuant to Section 3.02; provided, that if the Servicer has knowledge or reasonably believes that any Mortgaged Property is affected by hazardous or toxic wastes or substances and that the
acquisition of such Mortgaged Property would not be commercially reasonable, then the Servicer will not cause the Trust to acquire title to such Mortgaged Property in a foreclosure or similar proceeding. In connection with such foreclosure or other
conversion, the Servicer shall follow such practices (including, in the case of any default on a related senior mortgage loan, the advancing of funds to correct such default) and procedures as it shall deem necessary or advisable and as shall be
normal and usual in its general mortgage servicing activities. The foregoing is subject to the proviso that the Servicer shall not incur any Liquidation Expenses or otherwise expend its own funds in connection with any foreclosure or towards the
correction of any default on a related senior mortgage loan or restoration of any property unless it shall determine that such expenditure will increase Net Liquidation Proceeds. 
  

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 In the event that title to any Mortgaged Property is acquired in foreclosure or by deed in lieu of
foreclosure, the deed or certificate of sale shall be issued to the Indenture Trustee, or to its nominee on behalf of the Trust. 
  
 (b) With respect to any Mortgage Loan that is 90 days or more Delinquent, the Servicer, in its sole discretion, shall have the option to transfer the
servicing of any such Mortgage Loan to a special servicer; provided that any such special servicer shall be acceptable to the Insurer, as evidenced by its prior written consent, which consent shall not be unreasonably withheld; and
provided, further, that the appointment of any such special servicer will not result in the qualification, reduction or withdrawal of the ratings assigned to the Notes by the Rating Agencies without regard to the Policy as evidenced in
writing by a letter from each Rating Agency. Upon the transfer of servicing to the special servicer, the special servicer shall thereupon assume in writing all of the rights and obligations of the Servicer hereunder arising thereafter with respect
to such Mortgage Loan, and the Servicer shall have no further rights or obligations hereunder, with respect to such Mortgage Loan. The special servicer shall be entitled to the Servicing Fee and other compensation accruing after the servicing
transfers to the special servicer with respect to such Mortgage Loans. 
  
 Section 3.07. Indenture Trustee to Cooperate. On or before each Payment Date, the Servicer will notify the Indenture Trustee of the payment in full of the Principal Balance of any Mortgage Loan during the preceding Collection Period,
which notification shall be by a certification (which certification shall include a statement to the effect that all amounts received in connection with such payment which are required to be deposited in the Collection Account pursuant to Section
3.02 have been so deposited or credited) of a Servicing Officer. Upon any such payment in full, the Servicer is authorized to execute, pursuant to the authorization contained in Section 3.01, if the assignments of Mortgage have been recorded as
required hereunder, an instrument of satisfaction regarding the related Mortgage, which instrument of satisfaction shall be recorded by the Servicer if required by applicable law and be delivered to the Person entitled thereto. It is understood and
agreed that no expenses incurred in connection with such instrument of satisfaction or transfer shall be reimbursed from amounts deposited in the Collection Account. If the Indenture Trustee is holding the Mortgage Files, from time to time and as
appropriate for the servicing or foreclosure of any Mortgage Loan, or in connection with the payment in full of the Principal Balance of any Mortgage Loan, the Indenture Trustee shall, upon request of the Servicer and delivery to the Indenture
Trustee of a Request for Release substantially in the form attached hereto as Exhibit C-1 or Exhibit C-2, as applicable, signed by a Servicing Officer, release the related Mortgage File to the Servicer and the Indenture Trustee shall execute such
documents, in the forms provided by the Servicer, as shall be necessary to the prosecution of any such proceedings or the taking of other servicing actions. Such trust receipt shall obligate the Servicer to return the Mortgage File to the Indenture
Trustee when the need therefor by the 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 trust receipt shall be
released by the Indenture Trustee. 
  
 In order to facilitate the
foreclosure of the Mortgage securing any Mortgage Loan that is in default following recordation of the Assignment of Mortgage in accordance with the provisions hereof, the Indenture Trustee shall, if so requested in writing by the Servicer, execute
an appropriate assignment in the form provided to the Indenture Trustee by the Servicer to assign 
  

 31 

 such Mortgage Loan for the purpose of collection to the Servicer or to the related subservicer (any such assignment shall
unambiguously indicate that the assignment is for the purpose of collection only), and, upon such assignment, the Servicer will thereupon bring all required actions in its own name and otherwise enforce the terms of the Mortgage Loan and deposit the
Net Liquidation Proceeds, exclusive of Foreclosure Profits, received with respect thereto in the Collection Account. In the event that all delinquent payments due under any such Mortgage Loan are paid by the Mortgagor and any other defaults are
cured, then the Servicer shall, within two Business Days, reassign such Mortgage Loan to the Indenture Trustee and return the related Mortgage File to the place where it was being maintained. After such reassignment, the Servicer, if requested by
such Residual Certificateholders and if offered suitable indemnification and reimbursement for expenses, is authorized to seek a deficiency judgment if permitted by law against the Mortgagor under such Liquidated Mortgage Loan on behalf of the
Residual Certificateholders to the extent of any losses on liquidation of any Mortgage Loan. 
  
 Section 3.08. Servicing Compensation; Payment of Certain Expenses by Servicer. The Servicer shall be entitled to receive the Servicing Fee pursuant to Section 3.03 as compensation for its services in connection
with servicing the Mortgage Loans. Moreover, additional servicing compensation in the form of income and gain from any investment of funds in the Collection Account, late payment charges or other receipts not required to be deposited in the
Collection Account (other than Foreclosure Profits) shall be retained by the Servicer. The Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder (including payment of all other fees and expenses
not expressly stated hereunder to be for the account of the Noteholders and the Residual Certificateholders) and shall not be entitled to reimbursement therefor except as specifically provided herein. Liquidation Expenses are reimbursable to the
Servicer solely from related Liquidation Proceeds of the related Mortgage Loan. 
  
 Section 3.09. Annual Statement as to Compliance. 
  
 (a) The Servicer will deliver to the Indenture Trustee, the Insurer, the Residual Certificateholders and the Rating Agencies, on or before January 31 of each year, beginning January 31, 2005, an Officer’s
Certificate stating that (i) a review of the activities of the Servicer during the preceding fiscal year (or such shorter period as is applicable in the case of the first report) and of its performance under this Agreement has been made under such
officer’s supervision and (ii) to the best of such officer’s knowledge, based on such review, the Servicer has fulfilled all of its material obligations under this Agreement throughout such fiscal year, or, if there has been a default in
the fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof. 
  
 (b) The Servicer shall deliver to the Indenture Trustee, the Insurer, the Residual Certificateholders and each of the Rating Agencies, promptly after
having obtained knowledge thereof, but in no event later than five Business Days thereafter, written notice by means of an Officer’s Certificate of any event which with the giving of notice or the lapse of time or both, would become an Event of
Servicing Termination. 
  
 Section 3.10. Annual Servicing
Report. On or before January 31 of each year, beginning January 31, 2005, the Servicer, at its expense, shall cause a firm of nationally 
  

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 recognized independent public accountants (who may also render other services to the Servicer) to furnish a report to the
Indenture Trustee, the Insurer, the Residual Certificateholders and each Rating Agency to the effect that such firm has examined certain documents and records relating to the servicing of mortgage loans during the most recent fiscal year then ended
under pooling and servicing agreements (substantially similar to this Agreement, including this Agreement), that such examination was conducted substantially in compliance with the audit guide for audits of non-supervised mortgagees approved by the
Department of Housing and Urban Development for use by independent public accountants (to the extent that the procedures in such audit guide are applicable to the servicing obligations set forth in such agreements) and that such examination has
disclosed no items of noncompliance with the provisions of this Agreement which, in the opinion of such firm, are material, except for such items of noncompliance as shall be set forth in such report. 
  
 Section 3.11. Annual Opinion of Counsel. On or before January 31 of
each year, beginning January 31, 2005, the Sponsor, at its expense, shall deliver to the Indenture Trustee, the Residual Certificateholders and the Insurer the applicable Opinion of Counsel specified in Exhibit B hereto. 
  
 Section 3.12. Access to Certain Documentation and Information Regarding
the Mortgage Loans. 
  
 (a) The Servicer shall provide to the
Indenture Trustee, the Insurer, any Noteholders that are federally insured savings and loan associations, the Office of Thrift Supervision, successor to the Federal Home Loan Bank Board, the FDIC and the supervisory agents and examiners of the
Office of Thrift Supervision access to the documentation regarding the Mortgage Loans required by applicable regulations of the Office of Thrift Supervision and the FDIC (acting as operator of the SAIF or the BIF), such access being afforded without
charge but only upon reasonable request and during normal business hours at the offices of the Servicer. Nothing in this Section 3.12 shall derogate from the obligation of the Servicer to observe any applicable law prohibiting disclosure of
information regarding the Mortgagors and the failure of the Servicer to provide access as provided in this Section 3.12 as a result of such obligation shall not constitute a breach of this Section 3.12. 
  
 (b) The Servicer shall supply information in such form as the Indenture
Trustee shall reasonably request to the Indenture Trustee and the Note Paying Agent, on or before the start of the Determination Date preceding the related Payment Date, as is required in the Indenture Trustee’s reasonable judgment to enable
the Note Paying Agent or the Indenture Trustee, as the case may be, to make required distributions and to furnish the required reports to the Noteholders and the Class B Certificateholders and to make any claim under the Policy. 
  
 (c) The Servicer shall provide to the Class B Certificateholders access to
all documentation relating to the Mortgage Loans within the Servicer’s possession upon reasonable request and during normal business hours at the offices of the Servicer. 
  
 Section 3.13. Maintenance of Certain Servicing Insurance Policies. The Servicer shall maintain, at its own expense, a
blanket fidelity bond (the “Fidelity Bond”) and an errors and omissions insurance policy, with broad coverage with financially responsible companies on all 
  

 33 

 officers, employees, or other persons acting in any capacity with regard to the Mortgage Loans to handle funds, money,
documents and papers relating to the Mortgage Loans. The Fidelity Bond and errors and omissions insurance policy shall be in the form of the Mortgage Banker’s Blanket Bond and shall protect and insure the Servicer against losses, including
forgery, theft, embezzlement, fraud, errors and omissions and negligent acts of such persons. Such Fidelity Bond shall also protect and insure the Servicer against losses in connection with the failure to maintain any insurance policies required
pursuant to this Agreement and the release or satisfaction of a Mortgage Loan without having obtained payment in full of the indebtedness secured thereby. No provision of this Section 3.13 requiring the Fidelity Bond and errors and omissions
insurance policy shall diminish or relieve the Servicer from its duties and obligations as set forth in this Agreement. The minimum coverage under any such bond and insurance policy shall be at least equal to the corresponding amounts required by
the Federal Home Loan Mortgage Corporation in the Federal Home Loan Mortgage Corporation’s Seller/Servicer’s Guide. Upon request of the Indenture Trustee or the Insurer, the Servicer shall cause to be delivered to the Indenture Trustee or
the Insurer a certified true copy of the Fidelity Bond and errors and omissions insurance policy and a statement from the surety and the insurer that such Fidelity Bond and errors and omissions insurance policy shall in no event be terminated or
materially modified without thirty days’ prior written notice to the Indenture Trustee and the Insurer. 
  
 Section 3.14. Reports to the SEC. Within 15 days after each Payment Date, the Manager shall, on behalf of the Trust and in accordance with industry
standards, file with the SEC via the Electronic Data Gathering and Retrieval System (EDGAR), a Form 8-K with a copy of the report of the Noteholders for such Payment Date as an exhibit thereto. Prior to March 15, 2005 (and, if applicable, prior to
March 15 of each year), the Manager shall, on behalf of the Trust and in accordance with industry standards, file with the SEC via EDGAR a Form 10-K with respect to the Trust. In addition, the Sponsor will cause its senior officer in charge of
securitization to execute the certification (the “Form 10-K Certification”) required pursuant to Rile 13a-14 under the Securities and Exchange Act of 1934, as amended, and file the same with the SEC prior to March 15, 2005 (and if
applicable, prior to March 15 of each year). To the extent any information or exhibits required to be included in the Form 10-K are not available by March 15, the Manager shall, on behalf of the Trust, file one or more amended Form 10-K’s to
include such missing information or exhibits promptly after receipt thereof by the Manager. Promptly following the first day legally permissible under applicable regulations and interpretations of the SEC, the Manager shall, on behalf of the Trust
an in accordance with industry standards, file with the SEC via EDGAR a Form 15 Suspension Notification with respect to the Trust, if applicable. Each of the Servicer, the Sponsor and the Indenture Trustee agree to furnish to the Manager promptly,
from time to time upon request, such further information, reports and financial statements within its control related to this Agreement and the Mortgage Loans as the Manager reasonable deems appropriate to prepare and file all necessary reports with
the SEC. The Manager shall have no responsibility to file any items other than those specified in this section. 
  
 Section 3.15. Tax Returns. Notwithstanding Section 2.09 hereof, the Indenture Trustee shall prepare and file any federal, state or local income and
franchise tax return for the Trust as well as any other applicable return and apply for a taxpayer identification number on behalf of the Trust as provided in Article VI of the Trust Agreement, including, without 
  

 34 

 limitation, forms 1099 and 1065. The Issuer shall treat the Mortgage Loans as its property for all federal, state or
local tax purposes and shall report all income earned thereon (including amounts payable as fees to the Servicer) as its income for income tax purposes. In the event the Trust shall be required pursuant to an audit or administrative proceeding or
change in applicable regulations to file federal, state or local tax returns, the Indenture Trustee shall prepare and file or shall cause to be prepared and filed any tax returns required to be filed by the Trust; the Issuer shall promptly sign such
returns and deliver such returns back to the Indenture Trustee after signature and such returns shall be filed by the Indenture Trustee. The Indenture Trustee shall also prepare or shall cause to be prepared all tax information required by law to be
distributed to Noteholders. In no event shall the Indenture Trustee be liable for any liabilities, costs or expenses of the Trust, the Noteholders, the Residual Certificateholders or the Note Owners arising under any tax law, including, without
limitation, federal, state or local income and franchise or excise taxes or any other tax imposed on or measured by income (or any interest or penalty with respect thereto or arising from a failure to comply therewith), except for such liabilities,
costs or expenses of the Trust resulting from (i) the Indenture Trustee’s failure to file such tax returns or (ii) an incorrect tax return prepared by the Indenture Trustee. 
  
 Section 3.16. Information Required by the Internal Revenue Service Generally and Reports of Foreclosures and Abandonments
of Mortgaged Property. The Servicer shall prepare and deliver all federal and state information reports when and as required by all applicable state and federal income tax laws. In particular, with respect to the requirement under Section 6050J
of the Code to the effect that the Servicer shall make reports of foreclosures and abandonments of any mortgaged property for each year beginning in 2004, the Servicer shall file reports relating to each instance occurring during the previous
calendar year in which the Servicer (i) on behalf of the Indenture Trustee acquires an interest in any Mortgaged Property through foreclosure or other comparable conversion in full or partial satisfaction of a Mortgage Loan, or (ii) knows or has
reason to know that any Mortgaged Property has been abandoned. The reports from the Servicer shall be in form and substance sufficient to meet the reporting requirements imposed by Section 6050J. 
  
 Section 3.17. Reporting Requirements. For each Mortgage Loan, the
Servicer will accurately and fully report its borrower credit files to each of Equifax Credit Information Services, Inc., TransUnion, LLC and Experion Information Solution, Inc. (or their successors) in a timely manner on a monthly basis.

  
 Section 3.18. Matters Relating to MERS Loans.

  
 (a) The Servicer further is authorized and empowered by the
Indenture Trustee and the Insurer, on behalf of the Noteholders, the Insurer and the Indenture Trustee, in its own name or in the name of the subservicer, when the Servicer believes it appropriate in its best judgment to register any Mortgage Loan
on the MERS System, or cause the removal from the registration of any Mortgage Loan on the MERS System, to execute and deliver, on behalf of the Indenture Trustee, the Insurer and the Noteholders 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 Indenture Trustee and its successors and assigns. 
  

 35 

 (b) In connection with the sale and assignment of any MERS Mortgage Loan by the Sponsor to the Issuer,
the Sponsor agrees that it will cause, at the Sponsor’s expense, the MERS System to indicate that such Mortgage Loans have been assigned by the Sponsor to the Indenture Trustee in accordance with the Indenture for the benefit of the Issuer
Secured Parties by including (or deleting, in the case of Mortgage Loans which are repurchased in accordance with this Agreement) in such computer files the information required by the MERS System to identify the series of the Notes issued in
connection with such Mortgage Loans. The Sponsor further agrees that it will not, and will not permit the Originator or the Servicer to, and the Originator and the Servicer agree that they will not, alter the information referenced in this paragraph
with respect to any Mortgage Loan during the term of this Agreement unless and until such Mortgage Loan is repurchased in accordance with the terms of this Agreement. If at any time pursuant to Section 2.03 or Section 2.05 the Originator repurchases
a Mortgage Loan that is a MERS Mortgage Loan, the Servicer shall either (i) cause MERS to execute and deliver an assignment of the Mortgage in recordable form to transfer the Mortgage from MERS to the Originator and shall cause such Mortgage to be
removed from registration on the MERS System in accordance with MERS’ rules and regulations or (ii) cause MERS to designate on the MERS System the Originator (or any party indicated by the Originator) as the beneficial holder of such Mortgage
Loan. 
  
 (c) In connection with the termination or resignation of
the Servicer hereunder, either (i) the successor Servicer, including the Indenture Trustee if the Indenture Trustee is acting as successor Servicer, shall represent and warrant that it is a member of MERS in good standing and shall agree to comply
in all material respects with the rules and procedures of MERS in connection with the servicing of the Mortgage Loans that are registered with MERS, or (ii) the predecessor Servicer shall cooperate with the successor Servicer either (x) in causing
MERS to execute and deliver an assignment of Mortgage in recordable form to transfer the Mortgage from MERS to the Indenture Trustee and to execute and deliver such other notices, documents and other instruments as may be necessary or desirable to
effect a transfer of such Mortgage Loan or servicing of such Mortgage Loan on the MERS System to the successor Servicer or (y) in causing MERS to designate on the MERS System the successor Servicer as the servicer of such Mortgage Loan. 

 
 Section 3.19. Additional Balance Payments. On the Closing Date and
on the next Business Day following each other day on which any Additional Balances relating to the Mortgage Loans are funded by the Servicer, on the terms and subject to the conditions of this Agreement, the Sponsor shall pay to the Servicer the
applicable Purchase Price by (i) making or causing to be made a cash payment to the Servicer or its designee in such amount determined by the Sponsor, (ii) crediting the Servicer with an additional capital contribution to the Sponsor, (iii)
automatically increasing the principal amount outstanding under the Sponsor Promissory Note by the amount of the excess of the Purchase Price to be paid to the Servicer for such purchased assets over the amount of any cash payment made on such day
to the Servicer and/or any capital contribution made by the Servicer to the Sponsor, subject to a cap on such note at any time equal to $30 million or (iv) any combination of the foregoing. 
  

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 Section 3.20. Sponsor Promissory Note. 
  
 (a) On the Closing Date, the Sponsor shall deliver to the Servicer a
promissory note, substantially in the form of Exhibit E, payable to the order of the Servicer (such promissory note, as the same has been or hereafter may be amended, supplemented, endorsed or otherwise modified from time to time, together
with any promissory note issued from time to time in substitution therefor or renewal thereof in accordance with this Agreement, being herein called the “Sponsor Promissory Note”), which Sponsor Promissory Note shall, in accordance
with its terms, be subordinated to all interests of the Trust, all claims to the cash flows from Trust assets and all obligations of the Sponsor, of any nature, now or hereafter arising under or in connection with the Sale and Servicing Agreement.
The Sponsor Promissory Note shall evidence all amounts incurred thereunder subsequent to the Closing Date as provided in this Agreement. Subject to the foregoing, the Sponsor Promissory Note shall be payable in full on the date which is one year and
one day after the Termination Date. The Sponsor Promissory Note shall bear interest at the Class A Note Rate for the related Payment Date. The Sponsor may prepay all or part of the outstanding balance of the Sponsor Promissory Note and interest
accrued thereon from time to time without any premium or penalty, unless an event of default has occurred and is continuing or would result from such prepayment or payment. 
  
 (b) The Servicer shall hold the Sponsor Promissory Note for the benefit of the Servicer, and shall make all appropriate
recordkeeping entries with respect to the Sponsor Promissory Note or otherwise to reflect the payments on and adjustments of the Sponsor Promissory Note. The Servicer’s books and records shall constitute rebuttable presumptive evidence of the
principal amount of and accrued interest on the Sponsor Promissory Note at any time. The Servicer hereby irrevocably authorizes the Servicer to mark the Sponsor Promissory Note “CANCELLED” and to return the Sponsor Promissory Note to the
Sponsor upon the full and final payment thereof after the Termination Date. 
  
 The Servicer hereby agrees not to transfer, assign, exchange or otherwise convey or pledge, hypothecate or otherwise grant a security interest in the Sponsor Promissory Note or any interest represented thereby, and
any attempt to transfer, assign, exchange, convey, pledge, hypothecate or grant a security interest in the Sponsor Promissory Note or any interest represented thereby shall be void and of no effect. 
  
 ARTICLE IV 
  
 SERVICING CERTIFICATE 
  
 Section 4.01. Servicing Certificate. Not later than seven (7) Business Days prior to the Payment Date, the Servicer shall deliver to the Indenture
Trustee and the Owner Trustee, a Servicing Certificate (and the Indenture Trustee will post such Servicing Certificate (excluding the information contained in items (xxvii) and (xxviii) below) to its internet website for the benefit of the
Noteholders), in the form of computer readable media acceptable to the Indenture Trustee and the Owner Trustee or such other form as may be agreed to by the Indenture Trustee, the Owner Trustee and the Servicer, together with an Officer’s
Certificate to the effect that such Servicing Certificate is true and correct in all material respects, stating the related Collection Period, Payment Date, the series number of the Notes, the date of this Agreement, and: 
  
 (i) the amount being distributed to the Notes; 
  

 37 

 (ii) the amount of interest included in such distribution and the Note Rate; 
  
 (iii) the amount, if any, of overdue accrued interest included in such
distribution (and the amount of interest thereon); 
  
 (iv) the
amount, if any, of the remaining overdue accrued interest after giving effect to such distribution; 
  
 (v) the amount, if any, of principal included in such distribution; 
  
 (vi) the Servicing Fee for such Payment Date; 
  
 (vii) the related principal balance, after giving effect to such distribution; 
  
 (viii) the related initial Pool Balance and the related Pool Balance as of
the end of the preceding Collection Period; 
  
 (ix) the
Indenture Trustee Fee and Owner Trustee Fee for such Payment Date; 
  
 (x) the number and aggregate Principal Balance of Mortgage Loans that were (A) delinquent (exclusive of Mortgage Loans in bankruptcy or foreclosure or properties acquired by the Trust by deed in lieu of foreclosure) (1) 30 to 59 days, (2)
60 to 89 days, (3) 90 to 119 days, (4) 120 to 149 days, (5) 150 to 179 days, (6) 180 to 269 days and (7) 270 or more days, (B) in foreclosure, (C) in bankruptcy and (D) properties acquired by the Trust by deed in lieu of foreclosure; 
  
 (xi) (A) cumulative losses as a percentage of original Pool Balance, (B)
cumulative losses as a percentage of current Pool Balance and (C) the twelve-month rolling average of cumulative losses as a percentage of original Pool Balance; 
  
 (xii) the three-month rolling average of Mortgage Loans that are 60 days or more delinquent; 
  
 (xiii) the book value of any real estate which is acquired by the Trust
through foreclosure or grant of deed in lieu of foreclosure; 
  
 (xiv) the amount of any draws on the Policy; 
  
 (xv)
whether the related Payment Date will fall during the Managed Amortization Period or the Rapid Amortization Period; 
  
 (xvi) whether a Rapid Amortization Event has occurred during the related Collection Period; 
  
 (xvii) the amount, if any, of any Relief Act Shortfalls incurred during the related Collection Period; 
  
 (xviii) the outstanding principal balance of the three Mortgage Loans in
with the largest outstanding principal balance; 
  

 38 

 (xix) whether an Event of Servicing Termination or an Insurer Default has occurred; 
  
 (xx) the amount, if any, of Additional Balances created during the related
Collection Period; 
  
 (xxi) the amount, if any, of the
Additional Balance Contributed Amount for such Payment Date, and the amount of interest on such amount; 
  
 (xxii) whether the Managed Amortization Period has ended and the Rapid Amortization Period has begun; 
  
 (xxiii) the Specified Overcollateralization Amount; 
  
 (xxiv) the Overcollateralization Amount, after giving effect to payments on
such Payment Date; 
  
 (xxv) the amount of any servicing advances
made by the Servicer during the related Collection Period; 
  
 (xxvi) the amount, if any, of interest shortfalls relating to prepayments during the related Collection Period; 
  
 (xxvii) the Class Principal Balance of each class of Residual Certificates; and 
  
 (xxviii) the amount distributable, if any, to each class of Residual Certificates. 
  
 The Indenture Trustee shall conclusively rely upon the information contained in a Servicing
Certificate for purposes of making distributions pursuant to Section 8.7 of the Indenture, shall have no duty to inquire into such information and shall have no liability in so relying. The format and content of the Servicing Certificate may be
modified by the mutual agreement of the Servicer, the Indenture Trustee and the Insurer. The Servicer shall give notice of any such change to the Rating Agencies. 
  
 Section 4.02. Reserved. 
  
 Section 4.03. Reserved. 
  
 Section 4.04. Loan Data Remittance Report. On the seventh Business Day before each Payment Date (the “Loan Data Remittance Date”)
by noon Eastern Standard time, the Servicer shall furnish a report (the “Loan Data Remittance Report”) in the form attached as Exhibit F to this Agreement to the Insurer, the Residual Certificateholders and the Indenture Trustee by
electronic medium as agreed to by the Servicer, the Indenture Trustee and the Insurer. 
  

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 ARTICLE V 
  
 THE SERVICER AND THE SPONSOR 
  
 Section 5.01. Liability of the Servicer and the Sponsor. The Servicer shall be liable in accordance herewith only to the extent of the obligations
specifically imposed upon and undertaken by the Servicer herein. The Sponsor shall be liable in accordance herewith only to the extent of the obligations specifically imposed upon and undertaken by the Sponsor. 
  
 Section 5.02. Merger or Consolidation of, or Assumption of the Obligations
of, the Servicer or the Sponsor. Any corporation into which the Servicer or the Sponsor may be merged or consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Servicer or the Sponsor shall be a
party, or any corporation succeeding to the business of the Servicer or the Sponsor, shall be the successor of the Servicer or the Sponsor, as the case may be, hereunder, without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding. 
  
 Section 5.03. Limitation on Liability of the Servicer and Others. Neither the Servicer nor any of the directors or officers or employees or agents of the Servicer shall be under any liability to the Trust or
the Noteholders or Residual Certificateholders for any action taken or for refraining from the taking of any action by the Servicer in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Servicer or any such Person against any breach of representations and warranties made herein, or against any specific liability imposed on the Servicer for a breach of its servicing under this Agreement or against
liability which would otherwise be imposed by reason of willful misfeasance, bad faith or negligence in the performance of duties of the Servicer or by reason of reckless disregard of obligations and duties of the Servicer hereunder. The Servicer
and any director or officer or employee or agent of the Servicer may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder. The Servicer and
any director or officer or employee or agent of the Servicer shall be indemnified by the Trust, in accordance with the priorities set forth in Section 8.7(b) of the Indenture and held harmless against any loss, liability or expense incurred in
connection with any legal action relating to this Agreement or the Notes, other than any loss, liability or expense related to any specific Mortgage Loan (except as any such loss, liability or expense shall be otherwise reimbursable pursuant to this
Agreement) and any loss, liability or expense incurred by reason of its willful misfeasance, bad faith or negligence, breach of representations and warranties made herein, or against any specific liability imposed on the Servicer for a breach of its
servicing under this Agreement or against in the performance of duties hereunder or by reason of its reckless disregard of obligations and duties hereunder. The Servicer shall not be under any obligation to appear in, prosecute or defend any legal
action which is not incidental to duties to service the Mortgage Loans in accordance with this Agreement, and which in its opinion may involve it in any expense or liability; provided, however, that the Servicer may in its sole
discretion undertake any such action which it may deem necessary or desirable in respect of this Agreement, and the rights and duties of the parties hereto and the interests of the Noteholders and Residual Certificateholders hereunder. In such
event, the reasonable legal expenses and costs of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Trust and the Servicer shall only be entitled to be reimbursed therefor pursuant to Section

  

 40 

 8.7(b)(x) of the Indenture. The Servicer’s right to indemnity or reimbursement pursuant to this Section 5.03 shall
survive any resignation or termination of the Servicer pursuant to Section 5.04 or 6.01 with respect to any losses, expenses, costs or liabilities arising prior to such resignation or termination (or arising from events that occurred prior to such
resignation or termination). 
  
 Section 5.04. Servicer Not to
Resign. Subject to the provisions of Section 5.02, the Servicer shall not resign from the obligations and duties hereby imposed on it except (i) upon determination that the performance of its obligations or 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 or its subsidiaries or Affiliates, the other activities of the Servicer so causing such a conflict being of a type
and nature carried on by the Servicer or its subsidiaries or Affiliates at the date of this Agreement or (ii) upon satisfaction of the following conditions: (a) the Servicer has proposed a successor servicer to the Indenture Trustee and the Insurer
in writing and such proposed successor servicer is reasonably acceptable to the Indenture Trustee; (b) each Rating Agency shall have delivered a letter to the Indenture Trustee and the Insurer prior to the appointment of the successor servicer
stating that the proposed appointment of such successor servicer as Servicer hereunder will not result in the qualification, reduction or withdrawal of the then current rating of the Notes without regard to the Policy; and (c) such proposed
successor servicer is reasonably acceptable to the Insurer, as evidenced by a letter from each to the Indenture Trustee; provided, however, that no such resignation by the Servicer shall become effective until the Indenture Trustee or
successor servicer designated by the Servicer as provided above shall have assumed the Servicer’s responsibilities and obligations hereunder or the Indenture Trustee shall have designated a successor servicer in accordance with Section 6.02.
Any such resignation shall not relieve the Servicer of responsibility for any of the obligations specified in Sections 6.01 and 6.02 as obligations that survive the resignation or termination of the Servicer. Any such determination permitting the
resignation of the Servicer pursuant to clause (i) above shall be evidenced by an Opinion of Counsel to such effect delivered to the Indenture Trustee and the Insurer. The Servicer shall have no claim (whether by subrogation or otherwise) or other
action against any Noteholder or Residual Certificateholder for any amounts paid by the Servicer pursuant to any provision of this Agreement. 
  
 Section 5.05. Delegation of Duties. In the ordinary course of business, the Servicer at any time may delegate any of its duties hereunder to any
Person, including any of its Affiliates, or any subservicer referred to in Section 3.01, who agrees to conduct such duties in accordance with standards comparable to those with which the Servicer complies pursuant to Section 3.01. Such delegation
shall not relieve the Servicer of its liabilities and responsibilities with respect to such duties and shall not constitute a resignation within the meaning of Section 5.04. The Servicer’s delegation of any of its duties hereunder to any
subservicer shall be subject to the prior approval of the Insurer. The Servicer shall terminate its delegation of any of its duties hereunder to any subservicer at the Insurer’s reasonable request. 
  
 Section 5.06. Indemnification of the Trust by the Servicer. The
Servicer shall indemnify and hold harmless the Trust, the Owner Trustee and the Indenture Trustee from and against any loss, liability, expense, damage or injury suffered or sustained by reason of the Servicer’s activities or omissions in
servicing or administering the Mortgage Loans that are not in accordance with this Agreement or breach of representations and warranties made herein, including, but not limited to, any judgment, award, settlement, reasonable attorneys’ fees and

  

 41 

 expenses and other costs or expenses incurred in connection with the defense of any actual or threatened action,
proceeding or claim. Any such indemnification, including any amounts the Issuer shall cause the Servicer to pay pursuant to Section 6.7 of the Indenture, shall not be payable from the assets of the Trust. The provisions of this indemnity shall run
directly to and be enforceable by an injured party subject to the limitations hereof. The provisions of this Section 5.06 shall survive termination of this Agreement. 
  
 Section 5.07. Indemnification of the Trust by the Sponsor. Notwithstanding anything to the contrary contained herein,
the Sponsor (i) agrees to be liable directly to the injured party for the entire amount of any losses, claims, damages, liabilities and expenses of the Trust (other than those attributable to a Noteholder as a result of defaults on the Mortgage
Loans) to the extent that the Sponsor would be liable if the Trust were a partnership under the Delaware Revised Uniform Limited Partnership Act in which the Sponsor was a general partner and (ii) shall indemnify and hold harmless the Trust, the
Owner Trustee and the Indenture Trustee from and against any loss, liability, expense, damage, claim or injury (other than those attributable to a Noteholder as a result of defaults on the Mortgage Loans) arising out of or based on this Agreement by
reason of any acts, omissions, or alleged acts or omissions arising out of activities of the Trust, the Owner Trustee or the Indenture Trustee, or the actions of the Servicer, including, but not limited to, amounts payable to the Servicer pursuant
to Section 5.03, any judgment, award, settlement, reasonable attorneys’ fees and expenses and other costs or expenses incurred in connection with the defense of any actual or threatened action, proceeding or claim; provided that the
Sponsor shall not indemnify the Owner Trustee or the Indenture Trustee (but shall indemnify any other injured party) if such loss, liability, expense, damage or injury is due to the Owner Trustee’s or the Indenture Trustee’s, respectively,
willful misconduct, bad faith or negligence, material breach of representations and warranties made herein, or against any specific liability imposed on the Owner Trustee or Indenture Trustee for a breach of its obligations hereunder. The provisions
of this indemnity shall run directly to and be enforceable by an injured party subject to the limitations hereof. 
  
 Section 5.08. Limitation on Liability of the Sponsor. None of the directors or officers or employees or agents of the Sponsor shall be under any
liability to the Trust, the Owner Trustee or the Indenture Trustee, the Noteholders or the Residual Certificateholders, it being expressly understood that all such liability is expressly waived and released as a condition of, and as consideration
for, the execution of this Agreement and the issuance of the Notes; provided, however, that this provision shall not protect any such Person against any liability which would otherwise be imposed by reason of willful misfeasance, bad
faith, negligence or breach of representations and warranties made herein, or against any specific liability imposed on such Person in the performance of the duties hereunder. Except as provided in Section 5.07, the Sponsor shall not be under any
liability to the Trust, the Owner Trustee or the Indenture Trustee or the Noteholders or the Residual Certificateholders for any action taken or for refraining from the taking of any action in its capacity as Sponsor pursuant to this Agreement
whether arising from express or implied duties under this Agreement; provided, however, that this provision shall not protect the Sponsor against any liability which would otherwise be imposed by reason of willful misconduct, bad faith
or negligence in the performance of its duties or by reason of reckless disregard of its obligations and duties hereunder. The Sponsor and any director or officer or employee or agent of the Sponsor 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. 
  

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 ARTICLE VI 
  
 SERVICING TERMINATION 
  
 Section 6.01. Events of Servicing Termination. If any one of the following events (“Events of Servicing Termination”) shall occur
and be continuing: 
  
 (i) Any failure by the
Servicer to deposit in the Collection Account or Distribution Account any deposit required to be made under the terms of this Agreement which continues unremedied for a period of one Business Day after the date upon which written notice of such
failure shall have been given to the Servicer by the Indenture Trustee or to the Servicer and the Indenture Trustee by the Insurer or Holders of Notes evidencing more than 25% of the Principal Balance of the Notes instruct otherwise; or 

 
 (ii) Failure on the part of the Servicer or the Sponsor
duly to observe or perform any covenants or agreements of the Servicer or Sponsor set forth in the Notes or in this Agreement, which failure continues unremedied for a period of thirty (30) days after the date on which written notice of such
failure, requiring the same to be remedied, and stating that such notice is a “Notice of Default” hereunder, shall have been given to the Servicer by the Indenture Trustee or to the Servicer and the Indenture Trustee by the Insurer or the
Holders of Notes evidencing more than 25% of the Principal Balance of the Notes; provided, that a failure on the part of the Originator to perform its obligations under Section 2.03 or 2.05 hereof shall not be subject to the five day cure
period; 
  
 (iii) The entry against the Servicer
of a decree or order by a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a trustee, conservator, receiver or liquidator in any insolvency, conservatorship, receivership, readjustment of debt,
marshalling of assets and liabilities or similar proceedings, or for the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days; 
  
 (iv) The consent by the Servicer to the appointment of a
trustee, conservator, receiver or liquidator in any insolvency, conservatorship, receivership, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the Servicer or of or relating to substantially all
of its property; or the 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; 
  
 (v) The entry against the Sponsor of a decree or order by a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a trustee, conservator, receiver or liquidator in any
insolvency, conservatorship, receivership, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in
effect for a period of 60 consecutive days; 
  

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 (vi) The consent by the Sponsor to the appointment of a trustee, conservator, receiver or
liquidator in any insolvency, conservatorship, receivership, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the Sponsor or of or relating to substantially all of its property; or the Sponsor
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; 
  
 (vii) The Three
Month Rolling Delinquency Rate exceeds 5.25%; 
  
 (viii) Cumulative Realized Losses exceed the following percentage of the Initial Pool Balance on any Payment Date as set forth below: 
  

				
	 Payment Date

	  	 Cumulative Realized
 Loss Percentage

	 
	 1st
through 12th
	  	1.50	%
	 13th
through 24th
	  	2.75	%
	 25th
through 36th
	  	4.00	%
	 37st
through 48th
	  	5.00	%
	 49th and
thereafter
	  	6.00	%

  
 (ix)
GreenPoint Bank fails to maintain the capital standards established for “well capitalized” institutions under the prompt corrective action regulations issued pursuant to the Federal Deposit Insurance Corporation Improvement Act of 1991, as
amended; 
  
 (x) GreenPoint Bank, GreenPoint
Financial Corp. or its affiliates fail to pay any principal amount of at least $1,000,000 when due, subject to the applicable grace period, if any, specified in the agreement or other instrument relating to such debt and shall continue after the
applicable grace period if the effect of such event is to accelerate the maturity and repayment of such debt before the stated maturity thereof; 
  
 (xi) GreenPoint Bank shall no longer own 100% of the Servicer either directly or indirectly; 
  
 (xii) GreenPoint Bank shall sell the servicing platform of
the Servicer to a Person not affiliated with the Bank who is not acceptable to the Insurer; 
  
 (xiii) A subservicer is contracted to service loans in securitizations sponsored by the Sponsor and insured by the Insurer and such
subservicer is not acceptable to the Insurer; 
  

 44 

 (xiv) Any failure by the Servicer to obtain the prior written consent of the Insurer
prior to the merger or consolidation of the Servicer with, or the acquisition of the Servicer by, any entity that is not 100% owned, directly or indirectly, by GreenPoint Financial Corp. 
  
 (xv) Any governmental authority, including the Federal Deposit Insurance Corporation or any other
governmental authority with regulatory powers over the GreenPoint Bank, GreenPoint Financial Corp. or its affiliates, shall take any mandatory or discretionary supervisory action against the GreenPoint Bank, GreenPoint Financial Corp. or its
affiliates, including, without limitation, by cease and desist order, memorandum or understanding, capital directive or directive to take prompt corrective action, which action, in the reasonable opinion of the Insurer, would have a material adverse
impact on (A) the business, operations or financial condition of the GreenPoint Bank or the Servicer or (B) the ability of GreenPoint Bank or the Servicer to perform its obligations under any transaction document to which it is a party; or

  
 (xvi) GreenPoint Bank’s credit ratings
fall below investment grade by Moody’s or S&P; 
  
 then, and in each and
every such case, so long as an Event of Servicing Termination shall not have been remedied by the Servicer, either the Indenture Trustee, the Insurer or the Holders of Notes evidencing more than 50% of the Outstanding Amount of the Notes, in each
case with the consent of the Insurer, by notice then given in writing to the Servicer (and to the Indenture Trustee if given by the Insurer or the Holders of Notes) may terminate all of the rights and obligations of the Servicer as servicer under
this Agreement. Any such notice to the Servicer shall also be given to each Rating Agency, the Class B Certificateholders and the Insurer. On or after the receipt by the Servicer of such written notice, all authority and power of the Servicer under
this Agreement, whether with respect to the Notes or the Mortgage Loans or otherwise, shall pass to and be vested in the Indenture Trustee pursuant to and under this Section 6.01; and, without limitation, the Indenture Trustee is hereby authorized
and empowered to execute and deliver, on behalf of the 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 of each Mortgage Loan and related documents, or otherwise. The Servicer agrees to cooperate with the Indenture Trustee in effecting the termination of the responsibilities and
rights of the Servicer hereunder, including, without limitation, the transfer to the Indenture Trustee for the administration by it of all cash amounts that shall at the time be held by the Servicer to be deposited by it in the Collection Account,
or that have been deposited by the Servicer in the Collection Account or thereafter received by the Servicer with respect to the Mortgage Loans. All reasonable costs and expenses (including attorneys’ fees and expenses) incurred in connection
with amending this Agreement to reflect such succession as Servicer pursuant to this Section 6.01 shall be paid by the predecessor Servicer (or if the predecessor Servicer is the Indenture Trustee, the initial Servicer) upon presentation of
reasonable documentation of such costs and expenses. 
  
 Notwithstanding the foregoing, a delay in or failure of performance under Section 6.01(i) for a period of one Business Day or under Section 6.01(ii) for a period of thirty (30) days, shall 
  

 45 

 not constitute an Event of Servicing Termination if such delay or failure could not be prevented by the exercise of
reasonable diligence by the Servicer and such delay or failure was caused by an act of God or the public enemy, acts of declared or undeclared war, public disorder, rebellion or sabotage, epidemics, landslides, lightning, fire, hurricanes,
earthquakes or floods. The preceding sentence shall not relieve the Servicer from using its best efforts to perform its respective obligations in a timely manner in accordance with the terms of this Agreement and the Servicer shall provide the
Indenture Trustee, the Sponsor, the Insurer and the Noteholders and Residual Certificateholders with an Officer’s Certificate giving prompt notice of such failure or delay by it, together with a description of its efforts to so perform its
obligations. The Servicer shall immediately notify the Indenture Trustee and the Insurer in writing of any Events of Servicing Termination. 
  
 Section 6.02. Indenture Trustee to Act; Appointment of Successor. 
  
 (a) On and after the time the Servicer receives a notice of termination pursuant to Section 6.01 or resigns pursuant to
Section 5.04, the Indenture Trustee shall be the successor in all respects to the Servicer in its capacity as servicer under this Agreement and the transactions set forth or provided for herein and shall be subject to all the responsibilities,
duties and liabilities relating thereto placed on the Servicer by the terms and provisions hereof and shall use the same degree of care and skill as is required of the Servicer under this Sale and Servicing Agreement; provided, however, if the
Indenture Trustee becomes the Servicer hereunder, it shall have no responsibility or obligation (i) of repurchase or substitution with respect to any Mortgage Loan, (ii) with respect to any representation or warranty of the Servicer, and (iii) for
any act or omission of either a predecessor or successor Servicer other than the Indenture Trustee. As compensation therefor, the Indenture Trustee shall be entitled to such compensation as the Servicer would have been entitled to hereunder if no
such notice of termination had been given. In addition, the Indenture Trustee will be entitled to compensation with respect to its expenses in connection with conversion of certain information, documents and record keeping, as provided in Sections
6.7 and 6.8 of the Indenture. Notwithstanding the above, (i) if the Indenture Trustee is unwilling to act as successor Servicer, or (ii) if the Insurer is unwilling to have the Indenture Trustee act as successor Servicer or (iii) if the Indenture
Trustee is legally unable so to act, the Indenture Trustee may with the consent of the Insurer, which consent shall not be unreasonably withheld, delayed or denied (in the situation described in clauses (i) or (ii)) or shall (in the situation
described in clause (iii)) appoint or petition a court of competent jurisdiction to appoint, any established housing and home finance institution, bank or other mortgage loan or home equity loan servicer with all licenses and permits required to
perform its obligations under this Agreement and having a net worth of not less than $15,000,000 as the successor to the Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Servicer
hereunder; provided that any such successor Servicer shall be acceptable to the Insurer, as evidenced by its prior written consent, which consent shall not be unreasonably withheld; and provided, further, that the appointment of
any such successor Servicer will not result in the qualification, reduction or withdrawal of the ratings assigned to the Notes by the Rating Agencies without regard to the Policy. Pending appointment of a successor to the Servicer hereunder, unless
the Indenture Trustee is prohibited by law from so acting, the Indenture Trustee shall act in such capacity as hereinabove provided. In connection with such appointment and assumption, the successor shall be entitled to receive compensation out of
payments on Mortgage Loans in an amount equal to the compensation which the Servicer would 
  

 46 

 otherwise have received pursuant to Section 3.08 (or such other compensation as the Indenture Trustee and such successor
shall agree). The Indenture Trustee and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. 
  
 (b) Any successor, including the Indenture Trustee, to the Servicer as servicer shall during the term of its service as
servicer (i) continue to service and administer the Mortgage Loans for the benefit of the Noteholders, Residual Certificateholders and the Insurer and (ii) maintain in force a policy or policies of insurance covering errors and omissions in the
performance of its obligations as Servicer hereunder and a fidelity bond in respect of its officers, employees and agents to the same extent as the Servicer is so required pursuant to Section 3.13. The appointment of a successor Servicer shall not
affect any liability of the predecessor Servicer which may have arisen under this Agreement prior to its termination as Servicer (including, without limitation, any deductible under an Insurance Policy pursuant to Section 3.04), nor shall any
successor Servicer be liable for any acts or omissions of the predecessor Servicer or for any breach by such Servicer of any of its representations or warranties contained herein. 
  
 Section 6.03. Notification to Noteholders and Residual Certificateholders. Upon the occurrence of any Event of
Servicing Termination or Rapid Amortization Event in which a Responsible Officer of the Indenture Trustee has actual notice (or any event that with the lapse of time would become an Event of Servicing Termination or Rapid Amortization Event unless
cured), the Indenture Trustee shall promptly notify the Owner Trustee in writing. Upon any termination or appointment of a successor to the Servicer pursuant to this Article VI or Section 5.04, the Indenture Trustee shall give prompt written notice
thereof to the Noteholders, Residual Certificateholders (at their respective addresses appearing in the Note Register and in the Residual Certificate Register), the Insurer and each Rating Agency. 
  
 ARTICLE VII 
  
 TERMINATION 
  
 Section 7.01. Termination. 
  
 (a) The respective obligations and responsibilities of the Servicer, the Originator, the Sponsor and the Indenture Trustee created hereby (other than the
obligation of the Indenture Trustee to make certain payments to Noteholders and Residual Certificateholders after the final Payment Date and the obligation of the Servicer to send certain notices as hereinafter set forth) shall terminate upon the
last action required to be taken by the Indenture Trustee on the final Payment Date pursuant to this Article VII following the later of (A) the Payment Date following payment in full of all amounts owing to the Insurer under the Insurance Agreement
and (B) the earliest of (i) the transfer, under the conditions specified in Section 7.01(b), (ii) the day following the Payment Date on which the distribution made to Noteholders has reduced the Note Principal Balance to zero and no other amounts
are owed to the Noteholders hereunder, and no other amounts are owed to the Insurer pursuant to the Insurance Agreement and Section 8.7 of the Indenture, (iii) the final payment or other liquidation of the last Mortgage Loan remaining in the Trust
(including, without limitation, the disposition of the Mortgage Loans pursuant to Section 5.4 of the Indenture) or the disposition of all property acquired upon foreclosure or deed in lieu 
  

 47 

 of foreclosure of any Mortgage Loan and (iv) the Payment Date in July 2029; provided, however, that in no
event shall the trust created hereby continue beyond the expiration of 21 years from the date of death of the last surviving descendants of Joseph P. Kennedy, the late ambassador of the United States to the Court of St. James, living on the date
hereof. Upon termination in accordance with clause (a)(B)(i) of this Section 7.01, the Indenture Trustee shall execute such documents and instruments of transfer presented by the Optional Redemption Holder, in each case without recourse,
representation or warranty, and take such other actions as the Optional Redemption Holder may reasonably request to effect the transfer of the Mortgage Loans to the Optional Redemption Holder. 
  
 (b) Subject to Section 7.01(d), the holder of the majority interest in the
Class B Certificates shall have the right to redeem the Class A Notes on any Payment Date occurring on or after the end of a Collection Period on which the outstanding Pool Balance on such Payment Date is less than or equal to ten percent (10%) of
the Original Pool Balance. If the holder of the majority interest in the Class B Certificates does not exercise such optional redemption, then the holder of the majority interest in the Class G Certificates shall have the right to redeem the Class A
Notes on any Payment Date occurring on or after the end of a Collection Period on which the outstanding Pool Balance on such Payment Date is less than or equal to two percent (2%) of the Original Pool Balance. If the Optional Redemption Holder
elects to exercise its right it will notify the Issuer, the Servicer, the Indenture Trustee and the Insurer no later than thirty-five (35) days prior to the Payment Date on which the transfer is to take place. The Indenture Trustee will make the
transfer on such Payment Date subject to Section 7.01(d) and provided that the Redemption Price for the Notes has been deposited with it not less than five (5) Business Days prior to such Payment Date. 
  
 (c) The Optional Redemption Holder, at its expense, shall prepare and deliver
to the Indenture Trustee for execution, at the time the related Mortgage Loans are to be released to the Optional Redemption Holder, appropriate documents assigning each such Mortgage Loan from the Indenture Trustee to the Optional Redemption Holder
and shall promptly record such assignments. 
  
 (d) The Optional
Redemption Holder shall not exercise its right under Section 7.01(b) hereof if (a) such optional redemption would result in a draw on the Policy, without the consent of the Insurer, and (b) any Reimbursement Amount due to the Insurer would not be
fully satisfied pursuant to the optional redemption. 
  
 ARTICLE
VIII 
  
 ADMINISTRATIVE DUTIES OF THE SERVICER 
  
 Section 8.01. Administrative Duties. 
  
 (a) Duties with Respect to the Indenture. The Servicer shall perform
all its duties and the duties of the Issuer under the Indenture. In addition, the Servicer shall consult with the Owner Trustee as the Servicer deems appropriate regarding the duties of the Issuer under the Indenture. The Servicer shall monitor the
performance of the Issuer and shall advise the Owner Trustee when action is necessary to comply with the Issuer’s duties under the Indenture. The 
  

 48 

 Servicer shall prepare for execution by the Issuer or shall cause the preparation by other appropriate Persons of all
such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Issuer to prepare, file or deliver pursuant to the Indenture. In furtherance of the foregoing, the Servicer shall take all necessary action that
is the duty of the Issuer to take pursuant to the Indenture. 
  
 (b) Duties with Respect to the Issuer. 
  
 (i) In addition to the duties of the Servicer set forth in this Agreement or any of the Basic Documents, the Servicer shall perform such calculations and shall prepare for execution by the Issuer or the Owner Trustee or shall cause the
preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Issuer or the Owner Trustee to prepare, file or deliver pursuant to this Agreement or any of the
Basic Documents or under state and federal tax and securities laws, and at the request of the Owner Trustee shall take all appropriate action that it is the duty of the Issuer to take pursuant to this Agreement or any of the Basic Documents,
including, without limitation, pursuant to Sections 2.6 and 2.11 of the Trust Agreement. In accordance with the directions of the Issuer or the Owner Trustee, the Servicer shall administer, perform or supervise the performance of such other
activities in connection with the Mortgage Loans (including the Basic Documents) as are not covered by any of the foregoing provisions and as are expressly requested by the Issuer or the Owner Trustee and are reasonably within the capability of the
Servicer. 
  
 (ii) Notwithstanding anything in
this Agreement or any of the Basic Documents to the contrary, the Servicer shall be responsible for promptly notifying the Owner Trustee and the Indenture Trustee and the Insurer in the event that any withholding tax is imposed on the Issuer’s
payments (or allocations of income) to a Residual Certificateholder (as defined in the Trust Agreement) as contemplated by this Agreement. Any such notice shall be in writing and specify the amount of any withholding tax required to be withheld by
the Owner Trustee or the Indenture Trustee pursuant to such provision. 
  
 (iii) Notwithstanding anything in this Agreement or the Basic Documents to the contrary, the Servicer shall be responsible for performance of the duties of the Issuer or the Sponsor set forth in Section 5.1(a), (b),
(c) and (d) of the Trust Agreement with respect to, among other things, accounting and reports to Residual Certificateholders (as defined in the Trust Agreement). 
  
 (iv) The Servicer shall perform the duties of the Sponsor specified in Section 11.2 of the Trust Agreement
required to be performed in connection with the resignation or removal of the Owner Trustee, and any other duties expressly required to be performed by the Servicer under this Agreement or any of the Basic Documents. 
  
 (v) In carrying out the foregoing duties or any of its other
obligations under this Agreement, the Servicer may enter into transactions with or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any
directions received from the Issuer and shall be, in the Servicer’s opinion, no less favorable to the Issuer in any material respect. 
  

 49 

 (c) Non-Ministerial Matters. With respect to matters that in the reasonable judgment of the
Servicer are non-ministerial, the Servicer shall not take any action pursuant to this Article VIII unless within a reasonable time before the taking of such action, the Servicer shall have notified the Owner Trustee and the Insurer of the proposed
action and the Owner Trustee and the Insurer shall not have withheld consent or provided an alternative direction. For the purpose of the preceding sentence, “non-ministerial matters” shall include: 
  
 (A) the amendment of or any supplement to the Indenture;

  
 (B) the initiation of any claim or lawsuit by
the Issuer and the compromise of any action, claim or lawsuit brought by or against the Issuer (other than in connection with the collection of the Mortgage Loans); 
  
 (C) the amendment, change or modification of this Agreement or any of the Basic Documents; 
  
 (D) the appointment of successor Note Registrars, successor
Paying Agents and successor Indenture Trustees pursuant to the Indenture or the appointment of successor Servicers or the consent to the assignment by the Note Registrar, Paying Agent or Indenture Trustee of its obligations under the Indenture; and

  
 (E) the removal of the Indenture Trustee.

  
 (d) Exceptions. Notwithstanding anything to the
contrary in this Agreement, except as expressly provided herein or in the other Basic Documents, the Servicer, in its capacity hereunder, shall not be obligated to, and shall not, (1) make any payments to the Noteholders or the Residual
Certificateholders under the Basic Documents, (2) sell the Trust Property pursuant to Section 5.4 of the Indenture, (3) take any other action that the Issuer directs the Servicer not to take on its behalf or (4) in connection with its duties
hereunder assume any indemnification obligation of any other Person. 
  
 (e) The Indenture Trustee or any successor Servicer shall not be responsible for any obligations or duties of the Servicer under Section 8.01. 
  
 Section 8.02. Records. The Servicer shall maintain appropriate books of account and records relating to services performed under this Agreement,
which books of account and records shall be accessible for inspection by the Issuer, the Insurer and the Indenture Trustee at any time during normal business hours. 
  
 Section 8.03. Additional Information to be Furnished to the Issuer. The Servicer shall furnish to the Issuer and the
Indenture Trustee from time to time such additional information regarding the Mortgage Loans as the Issuer and the Indenture Trustee shall reasonably request. 
  

 50 

 ARTICLE IX 
  
 MISCELLANEOUS PROVISIONS 
  
 Section 9.01. Amendment. This Agreement may be amended from time to time by agreement among the Sponsor, the Servicer, the Originator and the
Indenture Trustee, in each case without notice to or the consent of any of the Noteholders or Residual Certificateholders, but only with the consent of the Insurer (which consent shall not be unreasonably withheld, delayed or denied), (i) to cure
any ambiguity, (ii) to correct any defective provisions or to correct or supplement any provisions herein that may be inconsistent with any other provisions herein, (iii) to add to the duties of the Sponsor or the Servicer, (iv) to add any other
provisions with respect to matters or questions arising under this Agreement or the Policy, as the case may be, which shall not be inconsistent with the provisions of this Agreement, (v) to add or amend any provisions of this Agreement as required
by any Rating Agency or any other nationally recognized statistical rating organization in order to maintain or improve any rating of the Notes (it being understood that, after obtaining the ratings in effect on the Closing Date, neither the
Indenture Trustee, the Sponsor nor the Servicer is obligated to obtain, maintain or improve any such rating) or (vi) to comply with any requirement imposed by the Code; provided, however, that such action shall not, as evidenced by an
Opinion of Counsel, materially and adversely affect the interests of any Noteholder, any Residual Certificateholder, or the Insurer; and provided, further, that the amendment shall be deemed not to adversely affect in any material
respect the interests of the Noteholders and the Residual Certificateholders and no opinion referred to in the preceding proviso shall be required to be delivered if the Person requesting the amendment obtains the consent of the Class B
Certificateholders and a letter from each Rating Agency stating that the amendment would not result in the downgrading or withdrawal of the respective ratings then assigned to the Notes without regard to the Policy. 
  
 This Agreement also may be amended from time to time by agreement among the
Servicer, the Originator, the Sponsor and the Indenture Trustee, with the consent of the Insurer and the Holders of the Notes evidencing more than 50% of the Outstanding Amount of the Notes and the Residual Certificateholders evidencing more than
50% of the percentage interest in each class of Residual Certificates (which consent of such Noteholders and Residual Certificateholders given pursuant to this Section 9.01 or pursuant to any other provision of this Agreement shall be conclusive and
binding on such holders and all future holders of such securities and of any security issued upon the transfer thereof or in exchange thereof or in lieu thereof whether or not notation of such consent is made upon the security) 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 Noteholders or the Residual Certificateholders; provided, however, that no such
amendment shall (i) reduce in any manner the amount of, or delay the timing of, payments on the Notes or the Residual Certificates or distributions or payments under the Policy which are required to be made on any Note without the consent of the
Holder of such Note or the related Certificateholder, as applicable, or (ii) reduce the aforesaid percentage required to consent to any such amendment, without the consent of the holders of all then outstanding Notes and Residual Certificates or
(iii) adversely affect in any material respect the interests of the Insurer. 
  

 51 

 Following the execution and delivery of any such amendment hereto or to the Policy, either the Sponsor,
if the Sponsor requested the amendment, or the Servicer, if the Servicer requested the amendment, shall reimburse the Insurer for the reasonable out-of-pocket costs and expenses incurred by each in connection with such amendment. 
  
 Prior to the execution of any such amendment, the party hereto requesting any
such amendment shall furnish written notification of the substance of such amendment to each Rating Agency. In addition, promptly after the execution of any such amendment made with the consent of the Noteholders or the Residual Certificateholders,
the Indenture Trustee shall furnish written notification of the substance of such amendment to each Noteholder and Residual Certificateholder and fully executed original counterparts of the instruments effecting such amendment to the Insurer.

  
 It shall not be necessary for the consent of Noteholders or
Residual Certificateholders under this Section 9.01 to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents and of
evidencing the authorization of the execution thereof by Noteholders and Residual Certificateholders shall be subject to such reasonable requirements as the Indenture Trustee may prescribe. 
  
 In executing any amendment permitted by this Section 9.01, the Indenture
Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel stating that such amendment is authorized or permitted hereby and that all conditions precedent to the execution and delivery of such amendment
have been satisfied. The Indenture Trustee may, but shall not be obligated to, enter into any such amendment which affects the Indenture Trustee’s own rights, duties or immunities under this Agreement or otherwise. 
  
 Section 9.02. Recordation of Agreement. This Agreement is subject to
recordation in all appropriate public offices for real property records in all the counties or other comparable jurisdictions in which any or all of the properties subject to the Mortgages are situated, and in any other appropriate public recording
office or elsewhere, such recordation to be effected by the Servicer, but only upon direction of Noteholders accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of Noteholders.
The Noteholders requesting such recordation shall bear all costs and expenses of such recordation. The Indenture Trustee shall have no obligation to ascertain whether such recordation so affects the interests of the Noteholders. 
  
 For the purpose of facilitating the recordation of this Agreement as herein
provided and for other purposes, this Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall constitute but one and the same instrument.

  
 Section 9.03. Limitation on Rights of Noteholders . No
Noteholder shall have any right to vote (except as provided in Sections 6.01, 7.01, and 9.01 herein and Section 5.4 of the Indenture) or in any manner otherwise control the operation and management of the Trust, or the obligations of the parties
hereto, nor shall anything herein set forth, or contained in the terms of the Notes, be construed so as to constitute the Noteholders from time to time as partners or members of an association; nor shall any Noteholder be under any liability to any
third person by reason of any action taken by the parties to this Agreement pursuant to any provision hereof. 
  

 52 

 No Noteholder shall have any right by virtue or by availing itself of any provisions of this Agreement to
institute any suit, action or proceeding in equity or at law upon or under or with respect to this Agreement, unless such Holder previously shall have given to the Indenture Trustee a written notice of default and of the continuance thereof, as
hereinbefore provided, and unless also the Holders of Notes evidencing more than 50% of the Outstanding Amount of the Notes shall have made written request upon the Indenture Trustee to institute such action, suit or proceeding in its own
name as Indenture Trustee hereunder and shall have offered to the Indenture Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Indenture Trustee, for 60 days
after its receipt of such notice, request and offer of indemnity, shall have neglected or refused to institute any such action, suit or proceeding; it being understood and intended, and being expressly covenanted by each Noteholder with every other
Noteholder and the Indenture Trustee, that no one or more Holders of Notes shall have any right in any manner whatever by virtue or by availing itself or themselves of any provisions of this Agreement to affect, disturb or prejudice the rights of
the Holders of any other of the Notes, or to obtain or seek to obtain priority over or preference to any other such Holder, or to enforce any right under this Agreement, except in the manner herein provided and for the equal, ratable and common
benefit of all Noteholders. For the protection and enforcement of the provisions of this Section 9.03, each and every Noteholder and the Indenture Trustee shall be entitled to such relief as can be given either at law or in equity. 
  
 Anything to the contrary notwithstanding, by accepting its Note, each
Noteholder agrees that unless a Insurer Default exists, the Insurer shall have the right to exercise all rights of the Noteholder under this Agreement without any further consent of the Noteholder. 
  
 Section 9.04. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 Section
9.05. Notices. All demands, notices, directions, requests and communications hereunder shall be in writing and shall be deemed to have been duly given if sent via facsimile (receipt confirmed), personally delivered at or mailed by certified
mail, return receipt requested, to (a) in the case of the Sponsor, GreenPoint Mortgage Securities LLC, 100 Wood Hollow Drive, Doorstop #22210, Novato, California 94945, Attention: S.A. Ibrahim, (b) in the case of the Originator and Servicer,
GreenPoint Mortgage Funding, Inc., 100 Wood Hollow Drive, Doorstop #32210, Novato, California 94945, Attention: Nathan Hieter, (c) in the case of the Indenture Trustee, at the Corporate Trust Office, (d) in the case of the Insurer, Ambac Assurance
Corporation, One State Street Plaza, New York, New York 10004, Attention: Managing Director (telecopy number (212) 363-1459), (e) in the case of Moody’s, Residential Loan Monitoring Group, 4th Floor, 99 Church Street, New York, New York 10007,
and (f) in the case of Standard & Poor’s, 55 Water Street, New York, New York 10041, or, as to each party, at such other address as shall be designated by such party in a written notice to each other party. 
  

 53 

 Any notice required or permitted to be mailed to a Noteholder shall be given by first class mail, postage prepaid, at the
address of such Holder as shown in the Note Register. Any notice so mailed within the time prescribed in this Agreement shall be conclusively presumed to have been duly given, whether or not the Noteholder or Residual Certificateholder receives such
notice. Any notice or other document required to be delivered or mailed by the Indenture Trustee to any Rating Agency shall be given on a best efforts basis and only as a matter of courtesy and accommodation and the Indenture Trustee shall have no
liability for failure to deliver such notice or document to any Rating Agency. 
  
 Section 9.06. Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements,
provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement or of the Notes or the
rights of the Holders thereof. 
  
 Section 9.07.
Assignment. Notwithstanding anything to the contrary contained herein, except as provided in Sections 5.02 and 5.04, this Agreement may not be assigned by the Sponsor or the Servicer without the prior written consent of the Insurer and
Holders of the Notes evidencing Percentage Interests aggregating not less than 66%. 
  
 Section 9.08. Third-Party Beneficiaries. This Agreement will inure to the benefit of and be binding upon the parties hereto, the Residual Certificateholders, the Note Owners and the Insurer and their respective
successors and permitted assigns. Except as otherwise provided in this Agreement, no other Person will have any right or obligation hereunder. 
  
 Section 9.09. Counterparts. This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same instrument. 
  
 Section 9.10. Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
  
 Section 9.11. Insurance Agreement. The Indenture Trustee is authorized
and directed to execute and deliver the Insurance Agreement and to perform the obligations of the Indenture Trustee thereunder. 
  
 Section 9.12. Nonpetition Covenant. Until one year plus one day shall have elapsed since the termination of the Trust in accordance with Section
7.01, none of the Sponsor, the Originator, the Servicer, nor the Indenture Trustee shall petition or otherwise invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Sponsor or the
Trust under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, Indenture Trustee, custodian, sequestrator or other similar official of the Sponsor or the Trust or any substantial part of its
property, or ordering the winding up or liquidation of the affairs of the Sponsor or the Trust. 
  

 54 

 Section 9.13. Limitation of Liability of U.S. Bank Trust National Association. It is expressly
understood and agreed by the parties hereto that (a) this Sale and Servicing Agreement is executed and delivered by U.S. Bank Trust National Association, not individually or personally but solely as Owner Trustee of the Issuer under the Trust
Agreement, in the exercise of the powers and authority conferred and vested in it, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings
and agreements by U.S. Bank Trust National Association but is made and intended for the purpose for binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on U.S. Bank Trust National Association
individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties to this Sale and Servicing Agreement and by any person claiming by, through or under
them and (d) under no circumstances shall U.S. Bank Trust National Association be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or
covenant made or undertaking by the Issuer under this Sale and Servicing Agreement or any related documents. 
  

 55 

 IN WITNESS WHEREOF, the Sponsor, the Originator and Servicer and the Indenture Trustee have caused this
Agreement to be duly executed by their respective officers all as of the day and year first above written. 
  

			
	GREENPOINT MORTGAGE SECURITIES LLC,
	    as Sponsor
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	 GREENPOINT MORTGAGE FUNDING, INC.,
     as Originator and Servicer

		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	JPMORGAN CHASE BANK, not in its individual     capacity but solely as Indenture Trustee
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	GREENPOINT HOME EQUITY LOAN TRUST 2004-1, as Issuer
	 	 	By: U.S. Bank Trust National Association,
	 	 	not in its individual capacity but solely as
	 	 	Owner Trustee
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 [Sale and
Servicing Agreement] 

			
	 State of                     
	 	 )

	 	 	 ) ss.:

	 County of
                    
	 	 )

  
 On the
    th day of January, 2004 before me, a notary public in and for the State of
                                        ,
personally appeared
                                        ,
known to me who, being by me duly sworn, did depose and say that he resides at
                                        ;
that he is the                                      of
GreenPoint Mortgage Securities LLC, a Delaware limited liability company, one of the parties that executed the foregoing instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it
was so affixed by order of the Board of Directors of said company; and that he signed his name thereto by like order. 
  

	
	  

	 Notary Public

  
 [Notarial Seal] 

			
	 State of                     
	  	 )

	 	  	 ) ss.:

	 County of                     
	  	 )

  
 On the
     day of January, 2004 before me, a notary public in and for the State of New York, personally appeared
                                        ,
known to me who, being by me duly sworn, did depose and say that he resides at
                                        ;
that he is the
                                        
of U.S. Bank Trust National Association, a national banking association, one of the parties that executed the foregoing instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it
was so affixed by order of the Board of Directors of said banking association; and that he signed his name thereto by like order. 
  

	
	  

	 Notary Public

  
 [Notarial Seal] 

			
	 State of                     
	  	 )

	 	  	 ) ss.:

	 County of                     
	  	 )

  
 On the
     day of January, 2004 before me, a notary public in and for the State of
                                        ,
personally appeared
                                        ,
known to me who, being by me duly sworn, did depose and say that he resides at                     ,
                    ,
                                 ; that he is the
                     of GreenPoint Mortgage Funding, Inc., one of the parties that executed the foregoing instrument; that he knows the seal
of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that he signed his name thereto by like order. 
  

	
	  

	 Notary Public

  
 [Notarial Seal] 

			
	 State of                     
	  	 )

	 	  	 ) ss.:

	 County of                     
	  	 )

  
 On the
     day of January, 2004 before me, a notary public in and for the State of                     , personally
appeared                     , known to me who, being by me duly sworn, did depose and say that he resides at
                    ,
                    
                    ; that he is the
                     of JPMorgan Chase Bank, a New York banking corporation, one of the parties that executed the foregoing instrument; and
that he signed his name thereto by order of the Board of Directors of said banking corporation. 
  

	
	  

	 Notary Public

  
 [Notarial Seal] 

 EXHIBIT A 
  

MORTGAGE LOAN SCHEDULE 
  
 [On file with Indenture Trustee] 
  

 A-1 

 EXHIBIT B 
  

FORM OF OPINION OF COUNSEL 
 WITH RESPECT TO
SECTION 3.11 OF THE 
 SALE AND SERVICING AGREEMENT 
  
 The opinions set forth below may be subject to all the qualifications, assumptions, limitations and exceptions taken or made in the opinions of counsel to the Issuer, the
Sponsor, the Originator and the Servicer delivered on the Closing Date. Unless otherwise indicated, all capitalized terms used herein shall have the meanings ascribed to them in the Sale and Servicing Agreement dated as of January 1, 2004 among
GreenPoint Mortgage Funding, Inc. (the “Originator” and the “Servicer”), GreenPoint Mortgage Securities LLC (the “Sponsor”) and JPMorgan Chase Bank, as Indenture Trustee (the “Indenture
Trustee”). Terms used but not defined herein shall have the meaning given to such terms in the above-referenced Sale and Servicing Agreement. 
  
 The Indenture Trustee has a valid perfected first priority security interest with respect to the Sponsor’s right, title and interest in and to the Mortgage Loans
(including all Eligible Substitute Mortgage Loans). 
  

 B-1 

 EXHIBIT C-1 
  

FORM OF OFFICER’S CERTIFICATE 
  
 REQUEST BY THE SERVICER FOR PERMANENT 
 RELEASE OF MORTGAGE LOANS AND MORTGAGE FILES 
  

			
	 TO:
	 	 JPMorgan Chase Bank,

	 	 	     as Indenture Trustee

	 	 	 Four New York Plaza, 6th Floor

	 	 	 New York, New York 10004

	 	 	 Attention: Institutional Trust Services/Global Debt – GPHE 2004-1

  
 Gentlemen: 
  
 In connection with the payment in full of the Mortgage Loans held by you as Indenture
Trustee, under the Sale and Servicing Agreement dated as of January 1, 2004 among GreenPoint Mortgage Funding, Inc., as Originator and Servicer, GreenPoint Mortgage Securities LLC, as Sponsor, and you, as Indenture Trustee, the undersigned requests
the release of the Mortgage Loans and the Mortgage Files for the Mortgage Loans identified in the schedule attached to this Request. 
  
 The undersigned hereby certifies that (i) the release of Collateral requested will not impair the security under the Indenture, (ii) any and all payments received on the
Mortgage Loans identified in the schedule attached to this Request which are required to be deposited in the Collection Account pursuant to Section 3.02 of such Sale and Servicing Agreement have been so deposited, (iii) the information with respect
to such factual matters necessary for us to so certify is in our possession and (iv) I am qualified to make these certifications. 
  

			
	 GREENPOINT MORTGAGE FUNDING, INC.,

	     as Servicer

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	 Date:
	 	  

  

			
	 ACKNOWLEDGED BY:

	
	 JPMORGAN CHASE BANK,

	     not in its individual capacity,

	     but solely as Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	 Date:
	 	  

  

 C-2-1 

 EXHIBIT C-2 
  

FORM OF OFFICER’S CERTIFICATE 
  
 REQUEST BY THE SERVICER FOR TEMPORARY 
 RELEASE OF MORTGAGE LOANS AND MORTGAGE FILES 
  

			
	 TO:
	 	 JPMorgan Chase Bank,

	 	 	     as Indenture Trustee

	 	 	 Four New York Plaza, 6th Floor

	 	 	 New York, New York 10004

	 	 	 Attention: Institutional Trust Services/Global Debt – GPHE 2004-1

	

	Gentlemen:	

  
 In connection with the administration of the Mortgage Loans held by you as Indenture Trustee, under the Sale and Servicing Agreement dated as of January 1, 2004 among GreenPoint Mortgage Funding, Inc., as Originator and Servicer, GreenPoint
Mortgage Securities LLC, as Sponsor, and you, as Indenture Trustee, the undersigned requests the temporary release of the Mortgage Loans and the related Mortgage Files for the Mortgage Loans identified in the schedule attached to this Request.

  

			
	 GREENPOINT MORTGAGE FUNDING, INC.,

	     as Servicer

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	 Date:
	 	  

  

			
	 ACKNOWLEDGED BY:

	
	 JPMORGAN CHASE BANK,

	     not in its individual capacity,

	     but solely as Indenture Trustee

	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	 Date:
	 	  

  

 C-2-1 

 EXHIBIT D 
  

FORM OF CREDIT LINE AGREEMENT 
  

 D-1 

 EXHIBIT E 
  

FORM OF NON-NEGOTIABLE 
 GREENPOINT MORTGAGE
SECURITIES LLC 
 PROMISSORY NOTE 
  
 January 29, 2004 
  
 EXCEPT TO THE EXTENT PROVIDED IN THE SALE AND SERVICING AGREEMENT REFERRED TO BELOW, THIS PROMISSORY NOTE AND ANY INTEREST REPRESENTED HEREBY SHALL NOT BE TRANSFERRED, ASSIGNED, EXCHANGED, CONVEYED, PLEDGED,
HYPOTHECATED OR OTHERWISE THE SUBJECT OF THE GRANT OF A SECURITY INTEREST AND ANY ATTEMPT TO TRANSFER, ASSIGN, EXCHANGE, CONVEY, PLEDGE, HYPOTHECATE OR GRANT A SECURITY INTEREST IN THIS PROMISSORY NOTE OR ANY INTEREST REPRESENTED HEREBY SHALL BE
VOID AND OF NO EFFECT. 
  
 FOR VALUE RECEIVED, the undersigned,
GREENPOINT MORTGAGE SECURITIES LLC, a Delaware limited liability company (the “Sponsor”), promises to pay to GREENPOINT MORTGAGE FUNDING, INC., a California corporation (the “Servicer”), on the terms and subject to
the conditions set forth herein and in the Sale and Servicing Agreement referred to below, the aggregate unpaid Purchase Price of all assets purchased and to be purchased by the Purchaser pursuant to the Sale and Servicing Agreement; provided
that such amount shall in no event exceed $30,000,000. Such amount as shown in the records of the Servicer will be rebuttable presumptive evidence of the principal amount owing under this Note. 
  
 1. Sale and Servicing Agreement. This Note is the Sponsor Promissory
Note described in, and is subject to the terms and conditions set forth in, that certain Sale and Servicing Agreement dated as of January 1, 2004 (as the same may be amended, supplemented, restated or otherwise modified in accordance with its terms,
the “Sale and Servicing Agreement”), among the Sponsor, the Servicer and Originator, and the Indenture Trustee. Reference is hereby made to the Sale and Servicing Agreement for a statement of certain other rights and obligations of
the Sponsor and the Servicer. 
  
 2. Definitions.
Capitalized terms used (but not defined) herein have the meanings ascribed thereto in the Sale and Servicing Agreement. In addition, as used herein, the following terms have the following meanings: 
  
 “Bankruptcy Proceedings” has the meaning set forth in
clause (a) of paragraph 7 hereof. 
  
 “Final Maturity
Date” means the date that falls one year and one day after the Termination Date. 
  
 “Junior Liabilities” means all obligations of the Sponsor to the Servicer under this Note. 
  
 “Senior Liabilities” means all obligations of the Sponsor to the Trust and any other obligations of the Sponsor arising under or in
connection with the Sale and Servicing Agreement, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or thereafter existing, or due or to become due on or before the Final Maturity Date. 

 “Subordination Provisions” means, collectively, clauses (a) through (j) of paragraph 7
hereof. 
  
 3. Interest. Subject to the Subordination
Provisions and paragraph 10 hereof, the Sponsor promises to pay interest on the aggregate unpaid principal amount of this Note outstanding on each day, at the Class A Note Rate for the related Payment Date. 
  
 4. Interest Payment Dates. Subject to the Subordination Provisions,
paragraph 10 hereof, the Sponsor shall pay accrued interest on this Note on each Payment Date and on the Final Maturity Date. The Sponsor also shall pay accrued interest on the principal amount of each prepayment hereof on the date of each such
prepayment. 
  
 5. Basis of Computation. Interest accrued
hereunder shall be computed for the actual number of days elapsed on the basis of a 360-day year. 
  
 6. Principal Payment Dates. Subject to the Subordination Provisions, any unpaid principal of this Note shall be paid on the Final Maturity Date
(or, if such date is not a Business Day, the next succeeding Business Day). Subject to the Subordination Provisions, paragraph 10 hereof, the principal amount of and accrued interest on this Note may be prepaid on any Business Day without premium or
penalty. 
  
 7. Subordination Provisions. The Sponsor
covenants and agrees, and the Servicer, by its acceptance of this Note, likewise covenants and agrees, that the payment of all Junior Liabilities is hereby expressly subordinated in right of payment to the payment and performance of the Senior
Liabilities to the extent and in the manner set forth in the following clauses of this paragraph 7: 
  
 (a) (i) In the event of any dissolution, winding up, liquidation, readjustment, reorganization or other similar event relating to the Sponsor, whether
voluntary or involuntary, partial or complete, and whether in bankruptcy, insolvency, receivership or other similar proceedings, or upon an assignment for the benefit of creditors, or any other marshalling of the assets and liabilities of the
Sponsor or any sale of all or substantially all of the assets of the Sponsor except pursuant to the Sale and Servicing Agreement (such proceedings being herein collectively called “Bankruptcy Proceedings”), and (ii) on and after the
occurrence of an Event of Default, the Senior Liabilities shall first be paid and performed in full and in cash before the Servicer shall be entitled to receive and to retain any payment or distribution in respect of the Junior Liabilities. In order
to implement the foregoing: (x) all payments and distributions of any kind or character in respect of the Junior Liabilities to which the Servicer would be entitled except for this clause (a) shall be made directly to the Indenture Trustee
(for the benefit of the Noteholders, and the Insurer); and (y) the Servicer hereby irrevocably agrees that the Indenture Trustee (on behalf of the Noteholders), in the name of the Servicer or otherwise, may demand, sue for, collect, receive and
receipt for any and all such payments or distributions, and file, prove and vote or consent in any such Bankruptcy Proceedings with respect to any and all claims of the Servicer relating to the Junior Liabilities, in each case until the Senior
Liabilities shall have been paid and performed in full and in cash. 
  

 E-2 

 (b) Following the occurrence of any of the events described in clause (a)(i) or (ii), in the event
that the Servicer receives any payment or other distribution of any kind or character from the Sponsor or from any other source whatsoever, in respect of the Junior Liabilities, such payment or other distribution shall be received in trust for the
Indenture Trustee and shall be turned over by the Servicer to the Indenture Trustee (for the benefit of the Noteholders, and the Insurer) forthwith. All payments and distributions received by the Indenture Trustee in respect of this Note, to the
extent received in or converted into cash, may be applied by the Indenture Trustee (for the benefit of the Noteholders and the Insurer) first to the payment of any and all reasonable expenses (including reasonable attorneys’ fees and legal
expenses) paid or incurred by the Indenture Trustee, the Noteholders or the Insurer in enforcing these Subordination Provisions, or in endeavoring to collect or realize upon the Junior Liabilities, and any balance thereof shall, solely as between
the Servicer and the Noteholders and the Insurer, be applied by the Indenture Trustee toward the payment of the Senior Liabilities in a manner determined by the Indenture Trustee to be in accordance with the Indenture; but as between the Sponsor and
its creditors, no such payments or distributions of any kind or character shall be deemed to be payments or distributions in respect of the Senior Liabilities. 
  

(c) Upon the final payment in full and in cash of all Senior Liabilities, the Servicer shall be subrogated to the rights of the Indenture Trustee to
receive payments or distributions from the Sponsor that are applicable to the Senior Liabilities until the Junior Liabilities are paid in full. 
  
 (d) These Subordination Provisions are intended solely for the purpose of defining the relative rights of the Servicer, on the one hand, and the Indenture
Trustee (on behalf of Noteholders and the Insurer), on the other hand. Nothing contained in these Subordination Provisions or elsewhere in this Note (subject to paragraph 10 hereof) is intended to or shall impair, as between the Sponsor, its
creditors (other than the Noteholders and the Insurer) and the Servicer, the Sponsor’s obligation, which is unconditional and absolute, to pay the Junior Liabilities as and when the same shall become due and payable in accordance with the terms
hereof (subject to paragraph 10 hereof) and of the Sale and Servicing Agreement or to affect the relative rights of the Servicer and creditors of the Sponsor (other than the Noteholders and the Insurer). 
  
 (e) The Servicer shall not, until the Senior Liabilities have been finally
paid and performed in full and in cash, (i) cancel, waive, forgive, transfer or assign, or commence legal proceedings to enforce or collect, or subordinate to any obligation of the Sponsor, howsoever created, arising or evidenced, whether direct or
indirect, absolute or contingent, or now or thereafter existing, or due or to become due (other than the Senior Liabilities), the Junior Liabilities or any rights in respect hereof or (ii) convert the Junior Liabilities into an equity interest in
the Sponsor, unless, in the case of each of clauses (i) and (ii) above, the Servicer shall have received the prior written consent of the Indenture Trustee and the Insurer in each case. 
  
 (f) The Servicer shall not, except without the advance written consent of the
Indenture Trustee and the Insurer commence, or join with any other Person in commencing, any Bankruptcy Proceedings with respect to the Sponsor until at least one year and one day have passed since the Termination Date. 
  

 E-3 

 (g) If, at any time, any of the payment (in whole or in part) made with respect to any Senior Liabilities
is rescinded or must be restored or returned by the Indenture Trustee or Noteholders or the Insurer (whether in connection with any Bankruptcy Proceedings or otherwise), these Subordination Provisions shall continue to be effective or shall be
reinstated, as the case may be, as though such payment had not been made. 
  
 (h) The Indenture Trustee (on behalf of Noteholders and the Insurer) may, from time to time, with the consent of the Insurer without notice to the Servicer, and without waiving any of its rights under these
Subordination Provisions, take any or all of the following actions: retain or obtain an interest in any property to secure any of the Senior Liabilities; (ii) retain or obtain the primary or secondary obligations of any other obligor or obligors
with respect to any of the Senior Liabilities; (iii) extend or renew for one or more periods (whether or not longer than the original period), alter or exchange any of the Senior Liabilities, or release or compromise any obligation of any nature
with respect to any of the Senior Liabilities; (iv) amend, supplement, amend and restate, or otherwise modify the Sale and Servicing Agreement or any related document; and (v) release its security interest in or surrender, release or permit any
substitution or exchange for all or any part of any rights or property securing any of the Senior Liabilities, or extend or renew for one or more periods (whether or not longer than the original period) or release, compromise, alter or exchange any
obligations of any nature of any obligor with respect to any such rights or property. 
  
 (i) The Servicer hereby waives: (i) notice of acceptance of these Subordination Provisions by any of the Noteholders and the Insurer, (ii) notice of the existence, creation, non-payment or non-performance of all or
any of the Senior Liabilities; and (iii) all diligence in enforcement, collection or protection of, or realization upon, the Senior Liabilities, or any thereof, or any security therefor. 
  
 (j) These Subordination Provisions constitute a continuing offer from the Sponsor to all Persons who become the holders of,
or who continue to hold, Senior Liabilities; and these Subordination Provisions are made for the benefit of the Noteholders and the Insurer, and the Indenture Trustee may proceed to enforce such provisions on behalf of each of such Persons.

  
 8. General. No failure or delay on the part of the
Servicer in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right preclude any other or further exercise thereof or the exercise of any other power or right. No
amendment, modification or waiver of, or consent with respect to, any provision of this Note shall in any event be effective unless (a) the same shall be in writing and signed and delivered by the Sponsor and the Servicer, and (b) all consents
required for such actions under the Sale and Servicing Agreement and the Sale and Servicing Agreement shall have been received by the appropriate Persons. The rights and remedies granted hereunder to the Indenture Trustee and the Noteholders are
subject to exercise as provided in the Sale and Servicing Agreement. 
  
 9. Limitation on Interest. Notwithstanding anything in this Note to the contrary, the Sponsor shall never be required to pay unearned interest on any amount outstanding hereunder, and shall never be required to pay interest on the
principal amount outstanding hereunder at a rate in excess of the maximum interest rate that may be contracted for, charged or received without violation of applicable federal or state law. 
  

 E-4 

 10. Acknowledgment. The Servicer acknowledges and agrees that it has no rights to payment under
this Note, and will not make any claim for payment hereunder, unless funds are available for payment by the Sponsor in excess of amounts due and payable by it at the time under the Indenture and the Sale and Servicing Agreement. 
  
 11. No Negotiation. This Note is not negotiable. 
  
 12. Governing Law. THIS NOTE SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
  
 13. Captions. Paragraph captions used in this Note are provided solely
for convenience of reference only and shall not affect the meaning or interpretation of any provision of this Note. 
  

			
	 GREENPOINT MORTGAGE SECURITIES LLC

		
	 By:
	 	  

	 Name:
	 	  

	 Title :
	 	  

  

 E-5 

 EXHIBIT F 
  

FORM OF CERTIFICATE: 
 LOAN LEVEL REPORTING

  

			
	DETAIL RECORD FIELDS:	 	File Name: T0##MMYY.LNS

  

							
	 Data:
 T0nnMMYY.LNS

	  	 Field
 Nbr

	  	 Format

	  	 Definition

	 Servicer Loan No.
	  	1	  	13(X)	  	Unique loan number assigned to the mortgage by the Originator/Servicer
				
	 Blank
	  	 	  	1(x)	  	 
				
	 Due Date of Last Paid Installment (DDLPI)
	  	2	  	YYYYMMDD	  	Due Date of last full payment received from the borrower.
				
	 Blank
	  	 	  	1(x)	  	 
				
	 Last Payment Received Date (LPRD)
	  	3	  	YYYYMMDD	  	Receipt Date of the last fully paid monthly installment of principal, interest, and escrow (if any) that was received from the borrower. Note: Dates of partial payments should not be
entered here. {Data is when payment was actually received from the borrower) If this information is not available, then populate the field with the default value of 19000101.
				
	 Blank
	  	 	  	1(x)	  	 
				
	 Unpaid Principal Balance (UPB) 100%
	  	4	  	13.2	  	Unpaid Principal balance as of the end of the current period
				
	 Blank
	  	 	  	1(x)	  	 
				
	 Interest Paid
	  	5	  	13.2	  	Gross / Coupon Interest payment amount
				
	 Blank
	  	 	  	1(x)	  	 
				
	 Principal Paid
	  	6	  	13.2	  	 Total principal paid down on the mortgage balance.
 * For
approved payment reversals or principal applied incorrectly in a prior cycle the amount of negative principal to bring the mortgage balance in line with the correct UPB reported.

				
	 Blank
	  	 	  	1(x)	  	 
				
	 Draw Amount
	  	7	  	13.2	  	Total draws made against the line of credit for the current month
				
	 Blank
	  	 	  	1(x)	  	 

							
	 Data:
 T0nnMMYY.LNS

	  	Field
Nbr

	  	Format

	 	 Definition

	 Exception Code
	  	8	  	2(x)	 	 This field should contain an exception code only when exception activity occurs for that period, otherwise this field should contain a 0.

DEFAULT VALUE IS 0.
 40     Inactivate loan, deemed the loan non-recoverable
 60     Payoff - mortgage matured
 61     Payoff -
mortgage prepaid
 65     Payoff - mortgage repurchased
 69     Payoff - mortgage liquidated
 70     Transfer to REO (status change exception)
 72     Foreclosure (change of status from Active to Foreclosure)
 80     Substituted Loan - Loan is added as a substitute for another loan
 81     Reinstated Loan - Loan was previously delinquent, but the borrower has brought it
current.
 90     Loan Modified - This is an exceptional activity code which is reserved for
future use. Modifications typically require repurchase from the trust prior to modifying the loan.

				
	 Blank
	  	 	  	1(x)	 	 
				
	 Exception Date
	  	9	  	YYYYMMDD	 	Date the exception occurred. If an exception has not occurred, this field should contain the default value of 19000101.
				
	 Blank
	  	 	  	1(x)	 	 
				
	 Mortgage Note Rate
	  	10	  	6.3	 	Rate associated with the borrower’s scheduled payment
				
	 Blank
	  	 	  	1(x)	 	 
				
	 Mortgage P&I Amount
	  	11	  	13.2	 	Principal and interest portion of the borrowers minimum installment. Note: 100% of the principal and interest amount should be entered in this field, including servicing and guarantee
fees.
				
	 Blank
	  	 	  	1(x)	 	 
				
	 Realized Losses
	  	12	  	13.2	 	Amount of realized losses for that period. This field will also include any supplemental claims or proceeds for loans liquidated in a previous cycle.
				
	 Blank
	  	 	  	1(x)	 	 
				
	 Cumulative Principal Advances
	  	13	  	13.2	 	 Total principal payments advanced by the Servicer and not repaid by the borrower.
 NOT APPLICABLE—DO NOT REPORT

				
	 Blank
	  	 	  	1(x)	 	 
				
	 Interest Advances
	  	14	  	13.2	 	 Amount of interest payment advanced by the Servicer for that period.
 NOT APPLICABLE—DO NOT REPORT

				
	 Blank
	  	 	  	1(x)	 	 
				
	 Loan Status
	  	15	  	1(X)	 	 Pertains to activity in the prior reporting cycle.
 0 -
Active
 4 - Foreclosure
 5 - REO
 6 - Closed (PAYOFFS & REPURCHASES)
 9 - Bankruptcy (OVERRIDES
Active Status)
 Note: 30,60 & 90 day delinquency status will be derived from the DDLPI field.

				
	 Blank
	  	 	  	1(x)	 	 
				
	 Subservicer No.
	  	16	  	6	 	Subservicer ID# - 6 digits
				
	 Blank
	  	 	  	1(x)	 	 
				
	 Actual Loan Balance
	  	17	  	13.2	 	Actual loan balance outstanding from the borrower.
				
	 Blank
	  	 	  	1(x)	 	 

  

 F-2 

							
	 Data:
 T0nnMMYY.LNS

	  	Field
Nbr

	  	Format

	 	 Definition

	Next Interest Rate Change Date	  	18	  	YYYYMMDD	 	Applies only to ARM loans and reflects the next pending interest rate adjustment date. Default is 19000101. Since loans adjust monthly, only report the first adjustment date for loans with
teaser period.
				
	Blank	  	 	  	1(x)	 	 
				
	Next Interest Payment Change Date	  	19	  	YYYYMMDD	 	Applies only to payment capped ARM loans and reflects the next pending payment adjustment date. Default is 19000101.
				
	Blank	  	 	  	1(x)	 	 
				
	Index Value at Reset Date	  	20	  	6.3	 	 The index rate used in determining the ARM coupon.
 Default value is 0 for an ARM loan if the index is not changing in the current period. Also populate 0 if the loan is a fixed rate loan.

				
	Blank	  	 	  	1(x)	 	 
				
	Next Mortgage Rate expected at reset date	  	21	  	6.3	 	Should be populated in advance of the rate adjustment.. Default value is 0 for an ARM loan if the rate is not changing. Default value is 0 if the loan is a fixed rate
loan.
				
	Blank	  	 	  	1(x)	 	 
				
	Collateral Group No. #	  	22	  	2	 	This is a collateral grouping number for whole loan directed collateral deals. Default value is 0. Report the HELOCs and Fixed Rates separately.
				
	Blank	  	 	  	1(x)	 	 
				
	Current Arrearage Paid	  	23	  	13.2	 	The current amount of cashflow applied to the arrearage balance. Applies to loans that have been or are currently in default. Default value is 0.
				
	Blank	  	 	  	1(x)	 	 
				
	Outstanding Arrearage Balance	  	24	  	13.2	 	The total amount of outstanding interest accrued under forbearance period, after current arrearage payment. Default value is 0.
				
	Blank	  	 	  	1(x)	 	 
				
	Loan Number	  	25	  	13(X)	 	Loan number assigned to the mortgage by             . Used for disclosure.
				
	Blank	  	 	  	1(x)	 	 
				
	Prepayment Premium Amount	  	26	  	13.2	 	The borrowers penalty payment for prepaying his mortgage. This amount is allocated in aggregate as a directed collateral amount to a specific bond. Default value is 0.

 The Notes: 

	•	File must be a text file (either space or tab delimited). 

	•	Any dates should be in YYYYMMDD format. They should not contain slashes (/) or dashes (-). 

	•	Number fields should NOT include commas. 

	•	Any negative number should be denoted by a “-” in front of the number, do not put the “-” after the number or use parentheses. 

  

 F-3

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