Document:

exv4w1wa

EXHIBIT 4.1(A)

 

PHOENIX RESIDENTIAL SECURITIES, LLC,

Company,

[______________],

Master Servicer,

and

[__________],

Trustee

SERIES SUPPLEMENT,

Dated as of [_______], 201[_],

TO

STANDARD TERMS OF

POOLING AND SERVICING AGREEMENT

dated as of [_______], 201[_]

Mortgage-Backed Pass-Through Certificates

Series 201[_]-[___]

 

 

 

	 	 	 	 	 

	ARTICLE I DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	4	 
	Section 1.02 Use of Words and Phrases
	 	 	29	 
	 
	 	 	 	 
	ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
CERTIFICATES
	 	 	 	 
	 
	 	 	 	 
	Section 2.01 Conveyance of Mortgage Loans
	 	 	32	 
	Section 2.02 Acceptance by Trustee
	 	 	32	 
	Section 2.03 Representations, Warranties and Covenants of the Master Servicer and the
Company
	 	 	32	 
	Section 2.04 Representations and Warranties of Sellers.(See Section 2.04 of the Standard
Terms)
	 	 	35	 
	Section 2.05 Execution and Authentication of Certificates/Issuance of Certificates
Evidencing Interests in REMIC I and REMIC II
	 	 	35	 
	Section 2.06 Conveyance of Uncertificated REMIC I Regular Interests and REMIC II Regular
Interests; Acceptance by the Trustee
	 	 	36	 
	Section 2.07 Issuance of Certificates Evidencing Interest in REMIC III
	 	 	36	 
	Section 2.08 Purposes and Powers of the Trust. (See Section 2.08 of the Standard Terms)
	 	 	36	 
	Section 2.09 Agreement Regarding Ability to Disclose
	 	 	37	 
	 
	 	 	 	 
	ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
	 	 	38	 
	 
	 	 	 	 
	ARTICLE IV PAYMENTS TO CERTIFICATEHOLDERS
	 	 	 	 
	 
	 	 	 	 
	Section 4.01 Certificate Account
	 	 	39	 
	Section 4.02 Distributions
	 	 	39	 
	Section 4.03 Statements to Certificateholders; Statements to the Rating Agencies; Exchange
Act Reporting. (See Section 4.03 of the Standard Terms)
	 	 	53	 
	Section 4.04 Distribution of Reports to the Trustee and the Company; P&I Advances by the
Master Servicer. (See Section 4.04 of the Standard Terms)
	 	 	53	 
	Section 4.05 Allocation of Realized Losses
	 	 	53	 
	Section 4.06 Reports of Foreclosures and Abandonment of Mortgaged Property
	 	 	54	 
	Section 4.07 Optional Purchase of Defaulted Mortgage Loans
	 	 	54	 

i

 

	 	 	 	 	 

	Section 4.08 Surety Bond. (See Section 4.08 of the Standard Terms)
	 	 	54	 
	Section 4.09 Reserve Fund
	 	 	54	 
	 
	 	 	 	 
	ARTICLE V THE CERTIFICATES
	 	 	56	 
	 
	 	 	 	 
	ARTICLE VI THE COMPANY AND THE MASTER SERVICER
	 	 	57	 
	 
	 	 	 	 
	ARTICLE VII DEFAULT
	 	 	58	 
	 
	 	 	 	 
	ARTICLE VIII CONCERNING THE TRUSTEE
	 	 	59	 
	 
	 	 	 	 
	ARTICLE IX TERMINATION OR OPTIONAL PURCHASE OF ALL CERTIFICATES
	 	 	 	 
	 
	 	 	 	 
	Section 9.01 Optional Purchase by the Master Servicer of All Certificates; Termination Upon
Purchase by the Master Servicer or Liquidation of All Mortgage Loans
	 	 	60	 
	Section 9.02 Additional Termination Requirements
	 	 	63	 
	Section 9.03 Termination of Multiple REMICs
	 	 	63	 
	 
	 	 	 	 
	ARTICLE X REMIC PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	Section 10.01 REMIC Administration
	 	 	64	 
	Section 10.02 Master Servicer; REMIC Administrator and Trustee Indemnification
	 	 	64	 
	Section 10.03 Designation of REMICs
	 	 	64	 
	Section 10.04 Distributions on the Uncertificated REMIC I and REMIC II Regular Interests

	 	 	65	 
	Section 10.05 Compliance with Withholding Requirements
	 	 	67	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	Section 11.01 Amendment
	 	 	68	 
	Section 11.02 Recordation of Agreement; Counterparts
	 	 	68	 
	Section 11.03 Limitation on Rights of Certificateholders
	 	 	68	 
	Section 11.04 Governing Law
	 	 	68	 
	Section 11.05 Notices
	 	 	68	 
	Section 11.06 Required Notices to Rating Agency and Subservicer
	 	 	69	 
	Section 11.07 Severability of Provisions. (See Section 11.07 of the Standard Terms)
	 	 	69	 

ii

 

	 	 	 	 	 

	Section 11.08 Supplemental Provisions for Resecuritization
	 	 	69	 
	Section 11.09 Allocation of Voting Rights
	 	 	69	 
	Section 11.10 No Petition
	 	 	69	 

iii

 

EXHIBITS

	 	 	 

	Exhibit One-I:

	 	Mortgage Loan Schedule (Group I Loans)
	Exhibit One-II:

	 	Mortgage Loan Schedule (Group II Loans)
	Exhibit One-III:

	 	Mortgage Loan Schedule (Group III Loans)
	Exhibit Two-I:

	 	Schedule of Discount Fractions for Group I Loans
	Exhibit Two-II:

	 	Schedule of Discount Fractions for Group II Loans and Group III Loans
	Exhibit Three:

	 	Information to be Included in
Monthly Distribution Date Statement
	Exhibit Four:

	 	Standard Terms of Pooling and Servicing
	 

	 	Agreement Dated as of [_______], 201[_]
	Exhibit Five:

	 	Planned Principal Balances and Targeted Principal Balances
	Exhibit Six:

	 	Jump Schedule Balance

iv

 

     This is a Series Supplement, dated as of [_____], 201[_] (the “Series Supplement”), to
the Standard Terms of Pooling and Servicing Agreement, dated as of [_____], 201[_] and attached as
Exhibit Four hereto (the “Standard Terms” and, together with this Series Supplement, the “Pooling
and Servicing Agreement” or “Agreement”), among PHOENIX RESIDENTIAL SECURITIES, LLC, as the company
(together with its permitted successors and assigns, the “Company”), [______________], as master
servicer (together with its permitted successors and assigns, the “Master Servicer”), and
[__________], as Trustee (together with its permitted successors and assigns, the “Trustee”).

PRELIMINARY STATEMENT:

     The Company intends to sell mortgage-backed pass-through certificates (collectively, the
“Certificates”), to be issued hereunder in multiple classes, which in the aggregate will evidence
the entire beneficial ownership interest in the Mortgage Loans (as defined herein). As provided
herein, the REMIC Administrator will make an election to treat the entire segregated pool of assets
described in the definition of Trust Fund, and subject to this Agreement (including the Mortgage
Loans), exclusive of the Yield Maintenance Agreements, as three real estate mortgage investment
conduits (each, a “REMIC”) for federal income tax purposes.

     The terms and provisions of the Standard Terms are hereby incorporated by reference herein as
though set forth in full herein. If any term or provision contained herein shall conflict with or
be inconsistent with any provision contained in the Standard Terms, the terms and provisions of
this Series Supplement shall govern. All capitalized terms not otherwise defined herein shall have
the meanings set forth in the Standard Terms. The Pooling and Servicing Agreement shall be dated
as of the date of this Series Supplement.

1

 

     The following table sets forth the designation, type, Pass-Through Rate, aggregate Initial
Certificate Principal Balance, Maturity Date, initial ratings and certain features for each Class
of Certificates comprising the interests in the Trust Fund created hereunder.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate Initial	 	 	 	 	 	 	 	 	 	 	Fitch/	 	 	 	 
	 	 	 	 	 	 	Certificate	 	 	 	 	 	 	Maturity	 	 	Moody’s/S&P/	 	 	Minimum	 
	Designation	 	Pass-Through Rate	 	 	Principal Balance	 	 	Features1	 	 	Date	 	 	DBRS	 	 	Denominations2	 
	I-A-1
	 	 	[___]	%	 	$	[________]	 	 	[Senior/PAC/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Adjustable	 	 	 	 	 	[Senior/TAC/Floater/Adjustable	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-2
	 	Rate3	 	$	[________]	 	 	 	Rate]	 	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Adjustable	 	 	 	 	 	[Senior/Interest Only/Inverse	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-3
	 	Rate3	 	$	0.00	4	 	Floater/Adjustable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[2,000,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	[Senior/Super Senior/	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-4
	 	 	[___]	%	 	$	[________]	 	 	Lockout/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Adjustable	 	 	 	 	 	[Senior/Companion/Floater/	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-5
	 	Rate3	 	$	[________]	 	 	Adjustable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Adjustable	 	 	 	 	 	[Senior/Companion/Inverse	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-6
	 	Rate3	 	$	[________]	 	 	Floater/Adjustable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	[Senior/Interest Only/Fixed	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-7
	 	 	[___]	%	 	$	0.00	4 	 	 	Rate]	 	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[2,000,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-8
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-9
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Adjustable	 		 	[Senior/Accretion Directed/	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-10
	 	Rate3	 	$	[________]	 	 	Floater/ Adjustable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Adjustable	 	 	 	 	 	[Senior/Interest Only/ Inverse	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-11
	 	Rate3	 	$	0.00	4	 	Floater/Adjustable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[2,000,000.00]	 

 

			
	1	 	The Certificates, other than the Class B and
Class R Certificates, shall be Book-Entry Certificates. The Class B and Class R
Certificates shall be delivered to the holders thereof in physical form.
	 
	2	 	The Certificates, other than the Class R
Certificates, shall be issuable in minimum dollar denominations as indicated
above (by Certificate Principal Balance or Notional Amount, as applicable) and
integral multiples of $1 (or $1,000 in the case of the Class I-A-P, Class
II-A-P, Class I-B-1, Class I-B-2, Class I-B-3, Class II-B-1, Class II-B-2 and
Class II-B-3 Certificates) in excess thereof, except that one Certificate of
any of the Class I-A-P, Class II-A-P, Class I-B-1, Class I-B-2, Class I-B-3,
Class II-B-1, Class II-B-2 and Class II-B-3 Certificates that contain an uneven
multiple of $1,000 shall be issued in a denomination equal to the sum of the
related minimum denomination set forth above (or in the case of the Class
II-B-1, Class II-B-2 and Class II-B-3 Certificates in minimum original
denominations equal to the initial Certificate Principal Balance of such
Certificate) and such uneven multiple for such Class or the sum of such
denomination and an integral multiple of $1,000.
	 
	3	 	

	 	 	 	 	 	 	 	 	 
	Adjustable Rates:	 	Initial	 	Formula	 	Maximum	 	Minimum
	Class I-A-2

	 	[___]%
	 	LIBOR + [___]%
	 	Subject to the available funds cap
	 	[___]%
	Class I-A-3

	 	[___]%
	 	[___]% — LIBOR
	 	[___]%
	 	[___]%
	Class I-A-5

	 	[___]%
	 	LIBOR + 1.00%
	 	[___]%
	 	[___]%
	Class I-A-6

	 	[___]%
	 	[___]% — [___] multiplied by LIBOR)
	 	[___]%
	 	[___]%
	Class I-A-10

	 	[___]%
	 	LIBOR + [___]%
	 	Subject to the available funds cap
	 	[___]%
	Class I-A-11

	 	[___]%
	 	[___]% — LIBOR
	 	[___]%
	 	[___]%
	Class I-A-14

	 	[___]%
	 	LIBOR + [___]%
	 	Subject to the available funds cap
	 	[___]%
	Class I-A-15

	 	[___]%
	 	[___]% — LIBOR
	 	[___]%
	 	[___]%
	Class I-A-17

	 	[___]%
	 	LIBOR + [___]%
	 	Subject to the available funds cap
	 	[___]%
	Class I-A-18

	 	[___]%
	 	[___]% — LIBOR
	 	[___]%
	 	[___]%

 

			
	4	 	The Class I-A-3, Class I-A-7, Class
I-A-11, Class I-A-15, and Class I-A-18 Certificates do not have a certificate
principal balance. For the purpose of calculating interest payments, (i)
interest on the Class I-A-3 Certificates will accrue on a notional amount equal
to the certificate principal balance of the Class I-A-2 Certificates
immediately prior to the related distribution date, (ii) interest on the Class
I-A-7 Certificates will accrue on a notional amount equal to ([____]/[____])%
multiplied by the aggregate certificate principal balance of the Class I-A-1,
Class I-A-2, Class I-A-4, Class I-A-5, Class I-A-6, Class I-A-9, Class I-A-10,
Class I-A-12, Class I-A-13, Class I-A-14, Class I-A-16 and Class I-A-17
Certificates immediately prior to the related distribution date, (iii) interest
on the Class I-A-11 Certificates will accrue on a notional amount equal to the
aggregate certificate principal balance of the Class I-A-10 Certificates and
Class I-A-17 Certificates immediately prior to the related distribution date,
(iv) interest on the Class I-A-15 Certificates will accrue on a notional amount
equal to the certificate principal balance of the Class I-A-14 Certificates
immediately prior to the related distribution date, and (v) interest on the
Class I-A-18 Certificates will accrue on a notional amount equal to the
certificate principal balance of the Class I-A-17 Certificates immediately
prior to the related distribution date.

1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate Initial	 	 	 	 	 	 	 	 	 	 	Fitch/	 	 	 	 
	 	 	 	 	 	 	Certificate	 	 	 	 	 	 	Maturity	 	 	Moody’s/S&P/	 	 	Minimum	 
	Designation	 	Pass-Through Rate	 	 	Principal Balance	 	 	Features1	 	 	Date	 	 	DBRS	 	 	Denominations2	 
	 
	 	 	 	 	 	 	 	 	 	[Senior/Jump Accrual/	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-12
	 	 	[___]	%	 	$	[________]	 	 	Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-13
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Accrual/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Adjustable	 	 	 	 	 	[Senior/Accretion Directed/	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-14
	 	Rate3	 	$	[________]	 	 	Floater/Adjustable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Adjustable	 	 	 	 	 	[Senior/Interest Only/ Inverse	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-15
	 	Rate3	 	$	0.00	4	 	Floater/ Adjustable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[2,000,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	[Senior/Senior Support/	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-16
	 	 	[___]	%	 	$	[________]	 	 	Lockout/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aa1/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Adjustable	 	 	 	 	 	[Senior/Accretion Directed/	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-17
	 	Rate3	 	$	[________]	 	 	Floater/Adjustable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Adjustable	 	 	 	 	 	[Senior/Interest Only/ Inverse	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-18
	 	Rate3	 	$	0.00	4	 	Floater/Adjustable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[2,000,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II-A-1
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II-A-2
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	III-A-1
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-P
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Principal Only]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Variable	 	 	 	 	 	[Senior/Interest Only/	 	 	 	 	 	 	 	 	 	 	 	 
	I-A-V
	 	Rate5	 	$	0.00	6	 	Variable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[2,000,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II-A-P
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Principal Only]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Variable	 	 	 	 	 	[Senior/Interest Only/	 	 	 	 	 	 	 	 	 	 	 	 
	II-A-V
	 	Rate5	 	$	0.00	6	 	Variable Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	$	[2,000,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	R-I
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Residual/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	 	7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	R-II
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Residual/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	 	7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	R-III
	 	 	[___]	%	 	$	[________]	 	 	[Senior/Residual/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AAA/Aaa/AAA/AAA]	 	 	7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I-M-1
	 	 	[___]	%	 	$	[________]	 	 	[Mezzanine/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AA/NA/NA/NA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I-M-2
	 	 	[___]	%	 	$	[________]	 	 	[Mezzanine/Fixed Rate]	 	 	[_______], 20[__]	 	 	[A/NA/NA/NA]	 	$	[250,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I-M-3
	 	 	[___]	%	 	$	[________]	 	 	[Mezzanine/Fixed Rate]	 	 	[_______], 20[__]	 	 	[BBB/NA/NA/NA]	 	$	[250,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II-M-1
	 	 	[___]	%	 	$	[________]	 	 	[Mezzanine/Fixed Rate]	 	 	[_______], 20[__]	 	 	[AA/NA/NA/NA]	 	$	[25,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II-M-2
	 	 	[___]	%	 	$	[________]	 	 	[Mezzanine/Fixed Rate]	 	 	[_______], 20[__]	 	 	[A/NA/NA/NA]	 	$	[250,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II-M-3
	 	 	[___]	%	 	$	[________]	 	 	[Mezzanine/Fixed Rate]	 	 	[_______], 20[__]	 	 	[BBB/NA/NA/NA]	 	$	[250,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I-B-1
	 	 	[___]	%	 	$	[________]	 	 	[Subordinate/Fixed Rate]	 	 	[_______], 20[__]	 	 	[BB/NA/NA/NA]	 	$	[250,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I-B-2
	 	 	[___]	%	 	$	[________]	 	 	[Subordinate/Fixed Rate]	 	 	[_______], 20[__]	 	 	[B/NA/NA/NA]	 	$	[250,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I-B-3
	 	 	[___]	%	 	$	[________]	 	 	[Subordinate/Fixed Rate]	 	 	[_______], 20[__]	 	 	[NA/NA/NA/NA]	 	$	[250,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II-B-1
	 	 	[___]	%	 	$	[________]	 	 	[Subordinate/Fixed Rate]	 	 	[_______], 20[__]	 	 	[BB/NA/NA/NA]	 	$	[250,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II-B-2
	 	 	[___]	%	 	$	[________]	 	 	[Subordinate/Fixed Rate]	 	 	[_______], 20[__]	 	 	[B/NA/NA/NA]	 	$	[250,000.00]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II-B-3
	 	 	[___]	%	 	$	[________]	 	 	[Subordinate/Fixed Rate]	 	 	[_______], 20[__]	 	 	[NA/NA/NA/NA]	 	$	[250,000.00]	 

     The Group I Loans have an aggregate principal balance as of the Cut-off Date of
$[_________]. The Group II Loans have an aggregate principal balance as of the Cut-off Date of
$[_________]. The Group III

 

			
	5	 	The initial Pass-Through Rate on the Class
I-A-V Certificates is [____]% and the initial Pass-Through Rate on the Class
II-A-V Certificates is [____]%.
	 
	6	 	The Class I-A-V Certificates and Class II-A-V
Certificates each do not have a principal balance. For the purpose of
calculating interest payments, interest will accrue on a notional amount equal
to, in the case of Class I-A-V Certificate, the aggregate stated principal
balance of the mortgage loans in Loan Group I, and in the case of Class II-A-V
Certificate, the aggregate stated principal balance of the mortgage loans in
Loan Group II and Loan Group III.
	 
	7	 	Each class of the Class R Certificates shall
be issuable in minimum denominations of not less than a 20% Percentage
Interest; provided, however, that one Class R Certificate of
each Class will be issuable to [___________] as “tax matters person” pursuant
to Section 10.01(c) and (e) in a minimum denomination representing a Percentage
Interest of not less than 0.01%.

2

 

Loans have an aggregate principal balance as of the Cut-off Date of $[_________]. The
combined Group II Loans and Group III Loans have an aggregate principal balance as of the Cut-off
Date of $[_________].

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

3

 

ARTICLE I

DEFINITIONS

          Section 1.01 Definitions.

     Whenever used in this Agreement, the following words and phrases, unless the context otherwise
requires, shall have the meanings specified in this Article.

     Accretion Termination Date: The Class I-A-12 Accretion Termination Date or the Class
I-A-13 Accretion Termination Date.

     Accrual Certificates: The Class I-A-12 Certificates and Class I-A-13 Certificates.

     Accrued Certificate Interest: With respect to each Distribution Date, as to any Class
or Subclass of Certificates (other than any Principal Only Certificates), interest accrued during
the related Interest Accrual Period at the related Pass-Through Rate on the Certificate Principal
Balance or Notional Amount thereof immediately prior to such Distribution Date. Accrued Certificate
Interest will be calculated on the basis of a 360-day year, consisting of twelve 30-day months. In
each case Accrued Certificate Interest on any Class or Subclass of Certificates will be reduced by
the amount of:

	 	(i)	 	Prepayment Interest Shortfalls on all Mortgage Loans in the related Loan Group
(to the extent not offset by the Master Servicer with a payment of Compensating
Interest as provided in Section 4.01),
	 
	 	(ii)	 	the interest portion (adjusted to the Net Mortgage Rate (or the Modified Net
Mortgage Rate in the case of a Modified Mortgage Loan)) of Realized Losses on all
Mortgage Loans in the related Loan Group not allocated solely to one or more specific
Classes of Certificates pursuant to Section 4.05, and
	 
	 	(iii)	 	any other interest shortfalls not covered by the subordination provided by the
related Class M Certificates and related Class B Certificates, including interest that
is not collectible from the Mortgagor pursuant to the Servicemembers Civil Relief Act,
as amended, or similar legislation or regulations as in effect from time to time, all
allocated as described below.

The Class I-A Percentage of these reductions with respect to the Group I Loans will be allocated
among the Holders of the Group I Senior Certificates, other than the Class I-A-P Certificates, in
proportion to the amounts of Accrued Certificate Interest that would have been payable to those
Certificates from the Group I Loans on that Distribution Date absent such reductions. The Class
II-A Percentage of these reductions with respect to the Group II Loans will be allocated among the
Holders of the Group II Senior Certificates, in proportion to the amounts of Accrued Certificate
Interest that would have been payable to those Certificates from the Group II Loans on that
Distribution Date absent such reductions. The Class III-A Percentage of these reductions with
respect to the Group III Loans will be allocated among the Holders of the Group III Senior
Certificates, in proportion to the amounts of Accrued Certificate Interest that would have been
payable to those Certificates from the Group III Loans on that Distribution Date absent such

4

 

reductions. The remainder of these reductions will be allocated among the Holders of the related
Class M Certificates and the related Class B Certificates in proportion to the respective amounts
of Accrued Certificate Interest that would have been payable on that Distribution Date absent these
reductions. In the case of each class of Class M Certificates and Class B Certificates, Accrued
Certificate Interest on that class will be further reduced by the interest portion (adjusted to the
Net Mortgage Rate) of Realized Losses that are allocated solely to such Class of Class M
Certificates or such Class of Class B in Certificates pursuant to Section 4.05.

     Adjustable Rate Certificates: Any of the Class I-A-2, Class I-A-3, Class I-A-5, Class
I-A-6, Class I-A-10, Class I-A-11, Class I-A-14, Class I-A-15, Class I-A-17 and Class I-A-18
Certificates.

     Aggregate Accrual Distribution Amount: The sum of the Class I-A-12 Accrual
Distribution Amount and the Class I-A-13 Accrual Distribution Amount.

     Aggregate Available Distribution Amount: With respect to a Distribution Date, the sum
of the Available Distribution Amounts for both Loan Group II and Loan Group III for such
Distribution Date.

     Aggregate Senior Interest Distribution Amount: With respect to a Distribution Date,
the sum of the Senior Interest Distribution Amounts for both Loan Group II and Loan Group III for
such Distribution Date.

     Aggregate Senior Principal Distribution Amount: With respect to a Distribution Date,
the sum of the Senior Principal Distribution Amounts for both Loan Group II and Loan Group III for
such Distribution Date.

     Available Distribution Amount: As to any Distribution Date and each Loan Group, an
amount equal to (a) the sum of (i) the amount relating to the Mortgage Loans on deposit in the
Custodial Account as of the close of business on the immediately preceding Determination Date,
including any Subsequent Recoveries, and amounts deposited in the Custodial Account in connection
with the substitution of Qualified Substitute Mortgage Loans, (ii) the amount of any P&I Advance
made on the immediately preceding Certificate Account Deposit Date, (iii) any amount deposited in
the Certificate Account on the related Certificate Account Deposit Date pursuant to the second
paragraph of Section 3.12(a), (iv) any amount deposited in the Certificate Account pursuant to
Section 4.07, (v) any amount that the Master Servicer is not permitted to withdraw from the
Custodial Account or the Certificate Account pursuant to Section 3.16(e), (vi) any amount received
by the Trustee pursuant to the Surety Bond in respect of such Distribution Date, (vii) the proceeds
of any Pledged Assets received by the Master Servicer and (viii) any additional amounts to be
included with respect to such Loan Group, as applicable, pursuant to Section 4.02(m), reduced by
(b) the sum as of the close of business on the immediately preceding Determination Date of (w)
aggregate Foreclosure Profits, (x) the Amount Held for Future Distribution, and (y) amounts
permitted to be withdrawn by the Master Servicer from the Custodial Account in respect of the
Mortgage Loans in the related Loan Group pursuant to clauses (ii)-(x), inclusive, of Section
3.10(a).

5

 

     Available Funds Cap: With respect to any Distribution Date after the Distribution Date
in [___________] and on or before the Distribution Date in [___________] and the Class I-A-2
Certificates, [___]% per annum plus amounts, if any, paid pursuant to the related Yield Maintenance
Agreement, expressed as a per annum rate. With respect to any Distribution Date after the
Distribution Date in [___________] and on or before the Distribution Date in [___________] and the
Class I-A-10 Certificates, [___]% per annum plus amounts, if any, paid pursuant to the related
Yield Maintenance Agreement, expressed as a per annum rate. With respect to any Distribution Date
after the Distribution Date in [___________] and on or before the Distribution Date in
[___________] and the Class I-A-14 Certificates, [___]% per annum plus amounts, if any, paid
pursuant to the related Yield Maintenance Agreement, expressed as a per annum rate. With respect
to any Distribution Date after the Distribution Date in [___________] and on or before the
Distribution Date in [___________] and the Class I-A-17 Certificates, [___]% per annum, plus
amounts, if any, paid pursuant to the related Yield Maintenance Agreement, expressed as a per annum
rate. With respect to the Distribution Date in [___________] and any Distribution Date after
[___________] with respect to the Class I-A-2 Certificates, the Distribution Date in [___________]
and any Distribution Date after [___________] with respect to the Class I-A-10 Certificates, the
Distribution Date in [___________] and the Distribution Date after [___________] with respect to
the Class I-A-14 Certificates, and the Distribution Date in [___________] and any Distribution Date
after [___________] with respect to the Class I-A-17 Certificates, [___]% per annum.

     Capitalization Reimbursement Amount: As to any Distribution Date and Loan Group the
amount of Advances or Servicing Advances that were added to the Stated Principal Balance of the
Mortgage Loans in such Loan Group during the prior calendar month and reimbursed to the Master
Servicer or Subservicer on or prior to such Distribution Date pursuant to Section 3.10(a)(vii),
plus the related Capitalization Reimbursement Shortfall Amount remaining unreimbursed from any
prior Distribution Date and reimbursed to the Master Servicer or Subservicer on or prior to such
Distribution Date.

     Capitalization Reimbursement Shortfall Amount: As to any Distribution Date and Loan
Group, the amount, if any, by which the amount of Advances or Servicing Advances that were added to
the Stated Principal Balance of the Mortgage Loans in such Loan Group during the preceding calendar
month exceeds the amount of principal payments on the Mortgage Loans included in the Available
Distribution Amount for that Loan Group and Distribution Date.

     Certificate: Any Class I-A-1, Class I-A-2, Class I-A-3, Class I-A-4, Class I-A-5,
Class I-A-6, Class I-A-7, Class I-A-8, Class I-A-9, Class I-A-10, Class I-A-11, Class I-A-12, Class
I-A-13, Class I-A-14, Class I-A-15, Class I-A-16, Class I-A-17, Class I-A-18, Class II-A-1, Class
II-A-2, Class III-A-1, Class R-I, Class R-II, Class R-III, Class I-M-1, Class I-M-2, Class I-M-3,
Class II-M-1, Class II-M-2, Class II-M-3, Class I-B-1, Class I-B-2, Class I-B-3, Class II-B-1,
Class II-B-2 and Class II-B-3 Certificates.

     Certificate Account: The separate account or accounts created and maintained pursuant
to Section 4.01 of the Standard Terms, which shall be entitled “[__________], as trustee, in trust
for the registered holders of Phoenix Residential Securities, LLC, Mortgage-Backed Pass-Through
Certificates, Series 201[_]-[___]” and which must be an Eligible Account.

6

 

     Certificate Group: With respect to (i) Loan Group I, the Group I Senior, Class I-M
and Class I-B Certificates; (ii) Loan Group II, the Group II Senior Certificates; (iii) Loan
Group III, the Group III Senior Certificates and (iv) Loan Group II and Loan Group III in the
aggregate, the Group II Senior, Group III Senior, Class II-A-P, Class II-A-V, Class II-M and Class
II-B Certificates.

     Certificate Policy: None.

     Certificate Principal Balance: With respect to each Certificate (other than any
Interest Only Certificate), on any date of determination, an amount equal to:

	 	(i)	 	the Initial Certificate Principal Balance of such Certificate as specified on
the face thereof, plus
	 
	 	(ii)	 	any Subsequent Recoveries added to the Certificate Principal Balance of such
Certificate pursuant to Section 4.02, plus
	 
	 	(iii)	 	in the case of each Accrual Certificate, an amount equal to the aggregate
Accrued Certificate Interest added to the Certificate Principal Balance thereof prior
to such date of determination, minus
	 
	 	(iii)	 	the sum of (x) the aggregate of all amounts previously distributed with
respect to such Certificate (or any predecessor Certificate) and applied to reduce the
Certificate Principal Balance thereof pursuant to Section 4.02(a) and (y) the aggregate
of all reductions in Certificate Principal Balance deemed to have occurred in
connection with Realized Losses which were previously allocated to such Certificate (or
any predecessor Certificate) pursuant to Section 4.05;

provided, that the Certificate Principal Balance of each Certificate of the Class of Subordinate
Certificates with the Lowest Priority at any given time shall be further reduced by an amount equal
to the Percentage Interest represented by such Certificate multiplied by the excess, if any, of (A)
the then aggregate Certificate Principal Balance of all Classes of Certificates in the related
Certificate Group then outstanding over (B) the then aggregate Stated Principal Balance of the
Mortgage Loans in Loan Group I or Loan Group II and Loan Group III in the aggregate, as applicable.

     Class A-P Collection Shortfall: With respect to the Cash Liquidation or REO
Disposition of a Discount Mortgage Loan, any Distribution Date and any Loan Group, the extent to
which the amount described in clause (C)(1) of the definition of Class A-P Principal Distribution
Amount for such Loan Group is less than the amount described in clause (C)(2) of such definition.

     Class A-P Certificates: The Class I-A-P Certificates, which relate to and are payable
from the Group I Loans, and Class II-A-P Certificates, which relate to and are payable from the
Group II Loans and Group III Loans.

7

 

     Class A-V Certificates: The Class I-A-V Certificates, which relate to and are
payable from the Group I Loans, and Class II-A-V Certificates, which relate to and are payable from
the Group II Loans and Group III Loans.

     Class I-A Certificates: The Class I-A-1, Class I-A-2, Class I-A-3, Class I-A-4, Class
I-A-5, Class I-A-6, Class I-A-7, Class I-A-8, Class I-A-9, Class I-A-10, Class I-A-11, Class
I-A-12, Class I-A-13, Class I-A-14, Class I-A-15, Class I-A-16, Class I-A-17, Class I-A-18, Class
I-A-P and Class I-A-V Certificates.

     Class I-A Percentage: With respect to any Distribution Date, the percentage equal to
the aggregate Certificate Principal Balance of the Group I Senior Certificates, other than the
Class I-A-P Certificates, immediately prior to that Distribution Date divided by the aggregate
Stated Principal Balance of all of the Mortgage Loans in Loan Group I, other than the Discount
Fraction of the Discount Mortgage Loans in Loan Group I, immediately prior to that Distribution
Date. The Class I-A Percentage will initially equal approximately [___]% and will in no event
exceed 100%.

     Class II-A Certificates: The Class II-A-1 Certificates and Class II-A-2 Certificates.

     Class I-A-2 Yield Maintenance Agreement: The agreement dated as of the Closing Date,
between the Trustee and the related Yield Maintenance Agreement Provider, relating to the Class
I-A-2 Certificates, or any replacement, substitute, collateral or other arrangement in lieu
thereto.

     Class I-A-10 Yield Maintenance Agreement: The agreement dated as of the Closing Date,
between the Trustee and the related Yield Maintenance Agreement Provider, relating to the Class
I-A-10 Certificates, or any replacement, substitute, collateral or other arrangement in lieu
thereto.

     Class I-A-12 Accretion Termination Date:The earlier to occur of (i) the Distribution
Date on which the aggregate Certificate Principal Balance of the Class I-A-10, Class I-A-14 and
Class I-A-17 Certificates has been reduced to zero and (ii) the occurrence of the Credit Support
Depletion Date for Loan Group I.

     Class I-A-12 Accrual Distribution Amount: On each Distribution Date preceding the
Class I-A-12 Accretion Termination Date, an amount equal to the amount of Accrued Certificate
Interest on the Class I-A-12 Certificates for that date which will be added to the Certificate
Principal Balance of the Class I-A-12 Certificates and distributed in the manner described in this
prospectus supplement under “—Principal Distributions on the Senior Certificates” to the holders
of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates as principal in
reduction of the Certificate Principal Balances of the Class I-A-10, Class I-A-12, Class I-A-14 and
Class I-A-17 Certificates. Any distributions of the Class I-A-12 Accrual Distribution Amount to
the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates will reduce the
Certificate Principal Balances of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17
Certificates by that amount. The amount that is added to the Certificate Principal Balance of the
Class I-A-12 Certificates will accrue interest at a rate of [___]% per annum. On each Distribution
Date on or after the Class I-A-12 Accretion Termination Date, the entire Accrued Certificate
Interest on the Class I-A-12 Certificates for that date will be payable to the

8

 

holders of the Class I-A-12 Certificates, as interest, to the extent not required to be paid
to the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 in order to fully reduce the
aggregate Certificate Principal Balance of the Class I-A-10, Class I-A-12, Class I-A-14 and Class
I-A-17 Certificates to zero on the Class I-A-12 Accretion Termination Date; provided, however, that
if the Class I-A-12 Accretion Termination Date is the Credit Support Depletion Date, the entire
Accrual Distribution Amount for that date will be payable as interest to the holders of the Class
I-A-12 Certificates.

     Class I-A-13 Accretion Termination Date: The earlier to occur of (i) the Distribution
Date on which the aggregate Certificate Principal Balance of the Class I-A-10, Class I-A-12, Class
I-A-14 and Class I-A-17 Certificates has been reduced to zero and (ii) the occurrence of the Credit
Support Depletion Date for Loan Group I.

     Class I-A-13 Accrual Distribution Amount: On each Distribution Date preceding the
Class I-A-13 Accretion Termination Date, an amount equal to the amount of Accrued Certificate
Interest on the Class I-A-13 Certificates for that date which will be added to the Certificate
Principal Balance of the Class I-A-13 Certificates and distributed in the manner described in this
prospectus supplement under “—Principal Distributions on the Senior Certificates” to the holders
of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates as principal in
reduction of the Certificate Principal Balances of the Class I-A-10, Class I-A-12, Class I-A-14 and
Class I-A-17 Certificates. Any distributions of the Class I-A-13 Accrual Distribution Amount to
the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates will reduce the
Certificate Principal Balances of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17
Certificates by that amount. The amount that is added to the Certificate Principal Balance of the
Class I-A-13 Certificates will accrue interest at a rate of 5.50% per annum. On each Distribution
Date on or after the related Class I-A-13 Accretion Termination Date, the entire Accrued
Certificate Interest on the Class I-A-13 Certificates for that date will be payable to the holders
of the Class I-A-13 Certificates, as interest, to the extent not required to be paid to the Class
I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates in order to fully reduce the
aggregate Certificate Principal Balance of the Class I-A-10, Class I-A-12, Class I-A-14 and Class
I-A-17 Certificates to zero on the related Class I-A-13 Accretion Termination Date; provided,
however, that if the related Class I-A-13 Accretion Termination Date is the Credit Support
Depletion Date, the entire Accrual Distribution Amount for that date will be payable as interest to
the holders of the Class I-A-13 Certificates.

     Class I-A-14 Yield Maintenance Agreement: The agreement dated as of the Closing Date,
between the Trustee and the related Yield Maintenance Agreement Provider, relating to the Class
I-A-14 Certificates, or any replacement, substitute, collateral or other arrangement in lieu
thereto.

     Class I-A-17 Yield Maintenance Agreement: The agreement dated as of the Closing Date,
between the Trustee and the related Yield Maintenance Agreement Provider, relating to the Class
I-A-17 Certificates, or any replacement, substitute, collateral or other arrangement in lieu
thereto.

     Class II-A Percentage: With respect to any Distribution Date, the percentage equal to
the aggregate Certificate Principal Balance of the Group II Senior Certificates, immediately prior
to

9

 

that Distribution Date divided by the aggregate Stated Principal Balance of all of the
Mortgage Loans in Loan Group II, other than the Discount Fraction of the Discount Mortgage Loans in
Loan Group II, immediately prior to that Distribution Date. The Class II-A Percentage will
initially equal approximately [___]% and will in no event exceed 100%.

     Class III-A Percentage: With respect to any Distribution Date, the percentage equal to
the aggregate Certificate Principal Balance of the Group III Senior Certificates immediately prior
to that Distribution Date divided by the aggregate Stated Principal Balance of all of the Mortgage
Loans in Loan Group III, other than the Discount Fraction of the Discount Mortgage Loans in Loan
Group III, immediately prior to that Distribution Date. The Class III-A Percentage will initially
equal approximately 96.49% and will in no event exceed 100%.

     Class B Certificates: The Class I-B-1, Class I-B-2, Class I-B-3, Class II-B-1, Class
II-B-2 and Class II-B-3 Certificates. The Class I-B-1, Class I-B-2 and Class I-B-3 Certificates
relate to and are payable from the Group I Loans. The Class II-B-1, Class II-B-2 and Class II-B-3
Certificates relate to and are payable from the Group II Loans and the Group III Loans.

     Class M Certificates: The Class I-M-1, Class I-M-2, Class I-M-3 Certificates, which
relate to and are payable from the Group I Loans, and the Class II-M-1, Class II-M-2 and Class
II-M-3 Certificates, which relate to and are payable from the Group II Loans and the Group III
Loans.

     Class R Certificate: Any one of the Class R-I, Class R-II and Class R-III
Certificates.

     Class R-I Certificate: Any one of the Class R-I Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed to the Standard
Terms as Exhibit D and evidencing an interest designated as a “residual interest” in REMIC I for
purposes of the REMIC Provisions.

     Class R-II Certificate: Any one of the Class R-II Certificates executed by the
Trustee and authenticated by the Certificate Registrar substantially in the form annexed to the
Standard Terms as Exhibit D and evidencing an interest designated as a “residual interest” in REMIC
II for purposes of the REMIC Provisions.

     Class R-III Certificate: Any one of the Class R-III Certificates executed by the
Trustee and authenticated by the Certificate Registrar substantially in the form annexed to the
Standard Terms as Exhibit D and evidencing an interest designated as a “residual interest” in REMIC
III for purposes of the REMIC Provisions.

     Class I-M Certificates: The Class I-M-1, Class I-M-2 and Class I-M-3 Certificates.

     Class II-M Certificates: The Class II-M-1, Class II-M-2 and Class II-M-3 Certificates.

     Closing Date: [___________], 201[_].

     Compensating Interest: With respect to any Distribution Date and each Loan Group an
amount equal to Prepayment Interest Shortfalls resulting from Principal Prepayments in Full during
the related Prepayment Period and Curtailments during the prior calendar month and

10

 

included in the Available Distribution Amount for the such Loan Group on such Distribution
Date, but not more than the lesser of (a) one-twelfth of [___]% of the aggregate Stated Principal
Balance of the Mortgage Loans in the related Loan Group immediately preceding such Distribution
Date and (b) the sum of the Servicing Fee and all income and gain on amounts held in the Custodial
Account and the Certificate Account and payable to the Certificateholders with respect to the
Mortgage Loans in the related Loan Group and such Distribution Date; provided that for purposes of
this definition the amount of the Servicing Fee will not be reduced pursuant to Section 7.02(a)
except as may be required pursuant to the last sentence of such Section.

     Corporate Trust Office: The principal office of the Trustee at which at any
particular time its corporate trust business with respect to this Agreement shall be administered,
which office at the date of the execution of this instrument is located at [__________],
[________________], Attention: [______________________].

     Credit Support Depletion Date: With respect to Loan Group I, the first Distribution
Date on which the Certificate Principal Balances of the Class I-M, Class I-B-1, Class I-B-2 and
Class I-B-3 Certificates have been reduced to zero. With respect to Loan Group II and Loan Group
III, the first Distribution Date on which the Certificate Principal Balances of the Class II-M,
Class II-B-1, Class II-B-2 and Class II-B-3 Certificates have been reduced to zero.

     Cut-off Date: [____], 201[_].

     DBRS: Dominion Bond Rating Service, or its successor in interest.

     Determination Date: With respect to any Distribution Date, the second Business Day
prior to each Distribution Date.

     Discount Net Mortgage Rate: With respect to Loan Group I, [___]% per annum. With
respect to Loan Group II and Loan Group III, [___]% per annum.

     Due Period: With respect to each Distribution Date, the calendar month in which such
Distribution Date occurs.

     Eligible Funds: With respect to any Distribution Date and Loan Group, an amount equal
to the excess of (a) the Available Distribution Amount for such Loan Group or the Aggregate
Available Distribution Amount, as applicable, over (b) the sum of (i) the aggregate amount of
Accrued Certificate Interest on the related Senior Certificates or the Aggregate Senior Interest
Distribution Amount, as applicable, (ii) the related Senior Principal Distribution Amount or
Aggregate Senior Principal Distribution Amount, as applicable, (determined without regard to
Section 4.02(a)(ii)(Y)(D) hereof), (iii) the related Class A-P Principal Distribution Amount for
Loan Group I or both Loan Group II and Loan Group III, as applicable (determined without regard to
clause (E) of the definition of Class A-P Principal Distribution Amount) and (iv) the aggregate
amount of Accrued Certificate Interest on the Class I-M, Class I-B-1 and Class I-B-2 Certificates,
or the Class II-M, Class II-B-1 and Class II-B-2 Certificates, as applicable. With respect to Loan
Group II and Loan Group III, Eligible Funds will be allocated between the Loan Group II and Loan
Group III on a pro rata basis in accordance with the amount of Class A-P

11

 

Collection Shortfalls for that Distribution Date and remaining unpaid from any previous
Distribution Date on that Distribution Date.

     Excess Subordinate Principal Amount: With respect to any Distribution Date on which
the aggregate Certificate Principal Balance of the Class of Subordinate Certificates in the
Certificate Group related to a Loan Group then outstanding with the Lowest Priority is to be
reduced to zero and on which Realized Losses are to be allocated to such Class or Classes, the
excess, if any, of (i) the amount that would otherwise be distributable in respect of principal on
such class or classes of Certificates on such Distribution Date over (ii) the excess, if any, of
the aggregate Certificate Principal Balance of such Class or Classes of Certificates immediately
prior to such Distribution Date over the aggregate amount of Realized Losses to be allocated to
such Classes of Certificates on such Distribution Date as reduced by any amount calculated with
respect to that Loan Group pursuant to clause (E) of the definition of Class A-P Principal
Distribution Amount. The Excess Subordinate Principal Amount will be allocated between the Loan
Group II and Loan Group III on a pro rata basis in accordance with the amount of Realized Losses on
the Mortgage Loans in each Loan Group allocated to the Certificates on that Distribution Date.

     Floater Certificates: Any of the Class I-A-2, Class I-A-5, Class I-A-10, Class
I-A-14, and Class I-A-17 Certificates.

     Group I Loans: The Mortgage Loans designated on the Mortgage Loan Schedule as Group I
Loans.

     Group II Loans: The Mortgage Loans designated on the Mortgage Loan Schedule as Group
II Loans.

     Group III Loans: The Mortgage Loans designated on the Mortgage Loan Schedule as Group
III Loans.

     Group I Senior Certificates: The Class I-A-1, Class I-A-2, Class I-A-3, Class I-A-4,
Class I-A-5, Class I-A-6, Class I-A-7, Class I-A-8, Class I-A-9, Class I-A-10, Class I-A-11, Class
I-A-12, Class I-A-13, Class I-A-14, Class I-A-15, Class I-A-16, Class I-A-17, Class I-A-18, Class
I-A-V, Class I-A-P and Class R-I Certificates, which relate to and are payable from the Group I
Loans.

     Group II Senior Certificates: The Class II-A-1, Class II-A-2, Class R-II and Class
R-III Certificates, which relate to and are payable from the Group II Loans.

     Group III Senior Certificates: The Class III-A-1 Certificates, which relate to and are
payable from the Group III Loans.

     Highest Priority: As of any date of determination, the Class of related Subordinate
Certificates then outstanding with a Certificate Principal Balance greater than zero, with the
earliest priority for payments pursuant to Section 4.02(a), in the following order: (a) for the
Subordinate Certificates related to Loan Group I, Class I-M-1, Class I-M-2, Class I-M-3, Class
I-B-1, Class I-B-2 and Class I-B-3 Certificates and (b) for the Subordinate Certificates related to

12

 

Loan Group II and Loan Group III combined, Class II-M-1, Class II-M-2, Class II-M-3, Class
II-B-1, Class II-B-2 and Class II-B-3 Certificates.

     Initial Monthly Payment Fund: $[_________], representing scheduled principal
amortization and interest at the Net Mortgage Rate payable during the [_________] Due Period, for
those Mortgage Loans for which the Trustee will not be entitled to receive such payment.

     Initial Notional Amount: With respect to the Class I-A-V Certificates, the aggregate
Cut-off Date Principal Balance of the Group I Loans and with respect to the Class II-A-V
Certificates, the aggregate Cut-off Date Principal Balance of the Group II Loans and Group III
Loans. With respect to any Subclass issued pursuant to Section 5.01(c), the aggregate Stated
Principal Balance of the Mortgage Loans corresponding to such Subclass as of the Cut-Off Date.

     Initial Subordinate Class Percentage: With respect to each Class of related
Subordinate Certificates, an amount which is equal to the initial aggregate Certificate Principal
Balance of such related Class of Subordinate Certificates divided by the aggregate Stated
Principal Balance of all the Mortgage Loans in the related Loan Group or Loan Groups as of the
Cut-off Date as follows:

	 	 	 	 	 

	 

	 	Class I-M-1: [___]%
	 	Class I-B-1: [___]%
	 

	 	Class I-M-2: [___]%
	 	Class I-B-2: [___]%
	 

	 	Class I-M-3: [___]%
	 	Class I-B-3: [___]%
	 
	 	 	 	 
	 

	 	Class II-M-1: [___]%
	 	Class II-B-1: [___]%
	 

	 	Class II-M-2: [___]%
	 	Class II-B-2: [___]%
	 

	 	Class II-M-3: [___]%
	 	Class II-B-3: [___]%

     Interest Accrual Period: With respect to any Class of Certificates (other than the
Adjustable Rate Certificates) and any Distribution Date, the calendar month preceding the month in
which such Distribution Date occurs. With respect to the Adjustable Rate Certificates and any
Distribution Date, the period beginning on the 25th day of the month preceding the month in which
such Distribution Date occurs and ending on the 24th day of the month in which such Distribution
Date occurs.

     Interest Only Certificates: Any one of the Class I-A-3, Class I-A-7, Class I-A-11,
Class I-A-15 and Class I-A-18, Class I-A-V Certificates and Class II-A-V Certificates. The Interest
Only Certificates will have no Certificate Principal Balance.

     Inverse Floater: Any of the Class I-A-3, Class I-A-6, Class I-A-11, Class I-A-15 and
Class I-A-18 Certificates.

     Jump Scheduled Balance: With respect to the Class I-A-12 and any Distribution Date,
the amount set forth in table entitled “Jump Scheduled Balance” in Exhibit Six opposite such date.

     LIBOR: With respect to any Distribution Date, the arithmetic mean of the London
interbank offered rate quotations for one-month U.S. Dollar deposits, expressed on a per annum
basis, determined in accordance with Section 1.03.

13

 

     LIBOR Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day on
which banking institutions in the city of London, England are required or authorized by law to be
closed.

     Loan Group: Any of Loan Group I, Loan Group II or Loan Group III.

     Loan Group I: The group of Mortgage Loans comprised of the Group I Loans.

     Loan Group II: The group of Mortgage Loans comprised of the Group II Loans.

     Loan Group III: The group of Mortgage Loans comprised of the Group III Loans.

     Lockout Certificates: The Class A-4 Certificates and Class A-16 Certificates.

     Lockout Percentage: For any Distribution Date occurring prior to the Distribution
Date in [_______], 0%. For any Distribution Date occurring thereafter, as follows: [___]% for any
Distribution Date on or after [_______] and prior to [_______]; [___]% for any Distribution Date on
or after [_______] and prior to [_______]; [___]% for any Distribution Date on or after [_______]
and prior to [_______]; [___]% for any Distribution Date on or after [_______] and prior to
[_______]; and 100% for any Distribution Date thereafter.

     Lower Priority: As of any date of determination and any Class of Subordinate
Certificates, any other Class of related Subordinate Certificates then outstanding with a later
priority for payments pursuant to Section 4.02 (a).

     Lowest Priority: As of any date of determination, the Class of related Subordinate
Certificates then outstanding with a Certificate Principal Balance greater than zero, with the
latest priority for payments pursuant to Section 4.02(a), in the following order: (a) for the
Subordinate Certificates related to Loan Group I, Class I-B-3, Class I-B-2, Class I-B-1, Class
I-M-3, Class I-M-2 and Class I-M-1 Certificates and (b) for the Subordinate Certificates related to
Loan Group II and Loan Group III, Class II-B-3, Class II-B-2, Class II-B-1, Class II-M-3, Class
II-M-2 and Class II-M-1 Certificates .

     Maturity Date: With respect to Certificates in the Certificate Group related to Loan
Group I, [_______], the Distribution Date immediately following the latest scheduled maturity date
of any Mortgage Loan in Loan Group I. With respect to Certificates in the Certificate Group related
to Loan Group II and Loan Group III combined, [_______], the Distribution Date immediately
following the latest scheduled maturity date of any Mortgage Loan in Loan Group II and Loan Group
III.

     Mortgage Loan Schedule: The list or lists of the Mortgage Loans attached hereto as
Exhibit One-I (with respect to Loan Group I), Exhibit One-II (with respect to Loan Group II) and
Exhibit One-III (with respect to Loan Group III) (in each case, as amended from time to time to
reflect the addition of Qualified Substitute Mortgage Loans), which list or lists shall set forth
the following information as to each Mortgage Loan in the related Loan Group:

	 	(i)	 	the Mortgage Loan identifying number (“[___] LOAN #”);

14

 

	 	(ii)	 	the maturity of the Mortgage Note (“MATURITY DATE”);
	 
	 	(iii)	 	the Mortgage Rate (“ORIG RATE”);
	 
	 	(iv)	 	the Subservicer pass-through rate (“CURR NET”);
	 
	 	(v)	 	the Net Mortgage Rate (“NET MTG RT”);
	 
	 	(vi)	 	the Pool Strip Rate (“STRIP”);
	 
	 	(vii)	 	the initial scheduled monthly payment of principal, if any, and interest
(“ORIGINAL P & I”);
	 
	 	(viii)	 	the Cut-off Date Principal Balance (“PRINCIPAL BAL”);
	 
	 	(ix)	 	the Loan-to-Value Ratio at origination (“LTV”);
	 
	 	(x)	 	the rate at which the Subservicing Fee accrues (“SUBSERV FEE”) and at which the
Servicing Fee accrues (“MSTR SERV FEE”);
	 
	 	(xi)	 	a code “T,” “BT” or “CT” under the column “LN FEATURE,” indicating that the
Mortgage Loan is secured by a second or vacation residence; and
	 
	 	(xii)	 	a code “N” under the column “OCCP CODE,” indicating that the Mortgage Loan is
secured by a non-owner occupied residence.

Such schedule may consist of multiple reports that collectively set forth all of the information
required.

     Notional Amount: As of any Distribution Date, (i) with respect to the Class I-A-3
Certificates, an amount equal to the Certificate Principal Balance of the Class I-A-2 Certificates
immediately prior to such date; provided, however, for federal income tax purposes, as of any
Distribution Date, with respect to the Class I-A-3 Certificates, the equivalent of the foregoing,
expressed as the Uncertificated Principal Balance of Uncertificated REMIC I Regular Interest Y;
(ii) with respect to the Class I-A-7 Certificates, an amount equal to ([___]/[___])% multiplied by
the aggregate Certificate Principal Balance of the Class I-A-1, Class I-A-2, Class I-A-4, Class
I-A-5, Class I-A-6, Class I-A-9, Class I-A-10, Class I-A-12, Class I-A-13, Class I-A-14, Class
I-A-16 and Class I-A-17 Certificates immediately prior to such date; provided, however, for federal
income tax purposes, as of any Distribution Date, with respect to the Class I-A-7 Certificates, the
equivalent of the foregoing, expressed as the Uncertificated Principal Balance of Uncertificated
REMIC I Regular Interest Y; (iii) with respect to the I-A-11 Certificates, an amount equal to the
Certificate Principal Balance of the Class I-A-10 and Class I-A-17 Certificates immediately prior
to such date; provided, however, for federal income tax purposes, as of any Distribution Date, with
respect to the Class I-A-11 Certificates, the equivalent of the foregoing, expressed as the
Uncertificated Principal Balance of Uncertificated REMIC I Regular Interest Y; (iv) with respect to
the I-A-15 Certificates, an amount equal to the Certificate Principal Balance of the Class I-A-4
Certificates immediately prior to such date; provided, however, for federal income tax purposes, as
of any Distribution Date, with respect to the Class

15

 

I-A-15 Certificates, the equivalent of the foregoing, expressed as the Uncertificated
Principal Balance of Uncertificated REMIC I Regular Interest Y; (v) with respect to the I-A-18
Certificates, an amount equal to the Certificate Principal Balance of the Class I-A-17 Certificates
immediately prior to such date; provided, however, for federal income tax purposes, as of any
Distribution Date, with respect to the Class I-A-18 Certificates, the equivalent of the foregoing,
expressed as the Uncertificated Principal Balance of Uncertificated REMIC I Regular Interest Y; and
(i) with respect to any Class I-A-V Certificates or Subclass thereof issued pursuant to Section
5.01(c), the aggregate Stated Principal Balance of the Group I Loans corresponding to the
Uncertificated Class A-V REMIC Regular Interests represented by such Class or Subclass immediately
prior to such date; and (ii) with respect to any Class II-A-V Certificates or Subclass thereof
issued pursuant to Section 5.01(c), the aggregate Stated Principal Balance of the Group II Loans
and Group III Loans corresponding to the Uncertificated Class A-V REMIC Regular Interests
represented by such Class or Subclass immediately prior to such date.

     Pass-Through Rate: With respect to the Senior Certificates (other than the Adjustable
Rate Certificates, Class A-V Certificates and Class A-P Certificates), Class M Certificates and
Class B Certificates and any Distribution Date, the per annum rates set forth in the Preliminary
Statement hereto.

	 	•	 	With respect to the Class I-A-2 Certificates and the initial Interest
Accrual Period, [___]% per annum, and as to any Interest Accrual Period thereafter,
a per annum rate equal to LIBOR plus [___]%, with a maximum rate of the Available
Funds Cap and a minimum rate of [___]% per annum.
	 
	 	•	 	With respect to the Class I-A-3 Certificates and the initial Interest
Accrual Period, [___]% per annum, and as to any Interest Accrual Period thereafter,
a per annum rate equal to [___]% minus LIBOR, with a maximum rate of [___]% per
annum and a minimum rate of [___]% per annum.
	 
	 	•	 	With respect to the Class I-A-5 Certificates and the initial Interest
Accrual Period, [___]% per annum, and as to any Interest Accrual Period thereafter,
a per annum rate equal to LIBOR plus [___]%, with a maximum rate of [___]% per annum
and a minimum rate of [___]% per annum.
	 
	 	•	 	With respect to the Class I-A-6 Certificates and the initial Interest
Accrual Period, [___]% per annum, and as to any Interest Accrual Period thereafter,
a per annum rate equal to [___] — ([___] multiplied by LIBOR), with a maximum rate
of [___]% per annum and a minimum rate of 0[___]% per annum.
	 
	 	•	 	With respect to the Class I-A-10 Certificates and the initial Interest
Accrual Period, [___]% per annum, and as to any Interest Accrual Period thereafter,
a per annum rate equal to LIBOR plus [___]%, with a maximum rate of the Available
Funds Cap and a minimum rate of [___]% per annum.
	 
	 	•	 	With respect to the Class I-A-11 Certificates and the initial Interest
Accrual Period, [___]% per annum, and as to any Interest Accrual Period thereafter,
a per annum

16

 

	 	 	 	rate equal to [___]% minus LIBOR, with a maximum rate of [___]% per annum and a
minimum rate of [___]% per annum.
	 
	 	•	 	With respect to the Class I-A-14 Certificates and the initial Interest
Accrual Period, [___]% per annum, and as to any Interest Accrual Period thereafter,
a per annum rate equal to LIBOR plus [___]%, with a maximum rate of the Available
Funds Cap and a minimum rate of [___]% per annum.
	 
	 	•	 	With respect to the Class I-A-15 Certificates and the initial Interest
Accrual Period, [___]% per annum, and as to any Interest Accrual Period thereafter,
a per annum rate equal to [___]% minus LIBOR, with a maximum rate of [___]% per
annum and a minimum rate of [___]% per annum.
	 
	 	•	 	With respect to the Class I-A-17 Certificates and the initial Interest
Accrual Period, [___]% per annum, and as to any Interest Accrual Period thereafter,
a per annum rate equal to LIBOR plus [___]%, with a maximum rate of [___]% per annum
and a minimum rate of [___]% per annum.
	 
	 	•	 	With respect to the Class I-A-18 Certificates and the initial Interest
Accrual Period, [___]% per annum, and as to any Interest Accrual Period thereafter,
a per annum rate equal to [___]% minus LIBOR, with a maximum rate of [___]% per
annum and a minimum rate of [___]% per annum.

     With respect to each Class of Class A-V Certificates (other than any Subclass thereof) and any
Distribution Date, a rate equal to the weighted average, expressed as a percentage, of the Pool
Strip Rates of all Mortgage Loans in the related Loan Group or Loan Groups as of the Due Date in
the related Due Period, weighted on the basis of the respective Stated Principal Balances of such
Mortgage Loans as of the day immediately preceding such Distribution Date (or, with respect to the
initial Distribution Date, at the close of business on the Cut-off Date). With respect to the Class
I-A-V Certificates and the Class II-A-V Certificates and the initial Distribution Date the
Pass-Through Rate is equal to [___]% and [___]% per annum, respectively. With respect to any
Subclass of Class A-V Certificates and any Distribution Date, a rate equal to the weighted average,
expressed as a percentage, of the Pool Strip Rates of all Mortgage Loans in the related Loan Group
or Loan Groups corresponding to the Uncertificated Class A-V REMIC Regular Interests represented by
such Subclass as of the Due Date in the related Due Period, weighted on the basis of the respective
Stated Principal Balances of such Mortgage Loans as of the day immediately preceding such
Distribution Date (or with respect to the initial Distribution Date, at the close of business on
the Cut-off Date). The Class A-P Certificates have no Pass-Through Rate and are not entitled to
Accrued Certificate Interest.

     Pool Strip Rate: With respect to each Mortgage Loan in any Loan Group, a per annum
rate equal to the excess of (a) the Net Mortgage Rate of such Mortgage Loan over (b) the Discount
Net Mortgage Rate for such Loan Group (but not less than 0.00%) per annum.

     Planned Principal Balance: With respect to any Distribution Date, the amount set forth
in Schedule I of the table entitled “Planned Principal Balances and Targeted Principal Balances”
in Exhibit Five opposite such date.

17

 

     Prepayment Assumption: With respect to each Loan Group, the prepayment assumption to
be used for determining the accrual of original issue discount and premium and market discount on
the related Certificates for federal income tax purposes, which assumes a constant prepayment rate
of [___]% per annum of the then outstanding principal balance of the related Mortgage Loans in the
first month of the life of such Mortgage Loans and an additional approximately [___]% per annum in
each month thereafter until the twelfth month, and beginning in the twelfth month and in each month
thereafter during the life of the related Mortgage Loans, a constant prepayment rate of [___]% per
annum.

     Prepayment Distribution Percentage: With respect to any Distribution Date and each
Class of Subordinate Certificates in the Certificate Group for Loan Group I and Loan Group II and
Loan Group III combined, under the applicable circumstances set forth below, the respective
percentages set forth below:

	 	(i)	 	For any Distribution Date prior to the Distribution Date in [__________]
(unless the Certificate Principal Balances of the related Senior Certificates (other
than the related Class A-P Certificates), have been reduced to zero), 0%.
	 
	 	(ii)	 	For any Distribution Date not discussed in clause (i) above on which any Class
of related Subordinate Certificates are outstanding:

     (a) in the case of the Class of related Subordinate Certificates then
outstanding with the Highest Priority and each other Class of Subordinate
Certificates for which the related Prepayment Distribution Trigger has been
satisfied, a fraction, expressed as a percentage, the numerator of which is the
Certificate Principal Balance of such Class immediately prior to such date and the
denominator of which is the sum of the Certificate Principal Balances immediately
prior to such date of (1) the Class of related Subordinate Certificates then
outstanding with the Highest Priority and (2) all other Classes of related
Subordinate Certificates for which the respective Prepayment Distribution Triggers
have been satisfied; and

     (b) in the case of each other Class of related Subordinate Certificates for
which the Prepayment Distribution Triggers have not been satisfied, 0%; and

	 	(iii)	 	Notwithstanding the foregoing, if the application of the foregoing percentages
on any Distribution Date as provided in Section 4.02 of this Series Supplement
(determined without regard to the proviso to the definition of “Subordinate Principal
Distribution Amount”) would result in a distribution in respect of principal of any
Class or Classes of Subordinate Certificates in an amount greater than the remaining
Certificate Principal Balance thereof (any such class, a “Maturing Class”), then: (a)
the Prepayment Distribution Percentage of each Maturing Class shall be reduced to a
level that, when applied as described above, would exactly reduce the Certificate
Principal Balance of such Class to zero; (b) the Prepayment Distribution Percentage of
each other Class of Subordinate Certificates (any such Class, a “Non-Maturing Class”)
shall be recalculated in accordance with the provisions in paragraph (ii) above, as if
the Certificate

18

 

Principal Balance of each Maturing Class had been reduced to zero (such
percentage as recalculated, the “Recalculated Percentage”); (c) the total amount of
the reductions in the Prepayment Distribution Percentages of the Maturing Class or
Classes pursuant to clause (a) of this sentence, expressed as an aggregate
percentage, shall be allocated among the Non-Maturing Classes in proportion to their
respective Recalculated Percentages (the portion of such aggregate reduction so
allocated to any Non-Maturing Class, the “Adjustment Percentage”); and (d) for
purposes of such Distribution Date, the Prepayment Distribution Percentage of each
Non-Maturing Class shall be equal to the sum of (1) the Prepayment Distribution
Percentage thereof, calculated in accordance with the provisions in paragraph (ii)
above as if the Certificate Principal Balance of each Maturing Class had not been
reduced to zero, plus (2) the related Adjustment Percentage.

     Prepayment Distribution Trigger: With respect to any Distribution Date and any Class
of related Subordinate Certificates (other than the Class I-M-1 Certificates and the Class II-M-1
Certificates), a test that shall be satisfied if the fraction (expressed as a percentage) equal to
the sum of the Certificate Principal Balances of such Class and each Class of related Subordinate
Certificates with a Lower Priority than such Class immediately prior to such Distribution Date
divided by the aggregate Stated Principal Balance of all of the Mortgage Loans (or related REO
Properties) in the related Loan Group or Loan Groups immediately prior to such Distribution Date is
greater than or equal to the sum of the Initial Subordinate Class Percentages of such Class and
each Class of related Subordinate Certificates with a Lower Priority.

     Principal Only Certificates: Any one of the Class I-A-P Certificates and Class II-A-P
Certificates.

     Record Date: With respect to each Distribution Date and each Class of Certificates
(other than the Adjustable Rate Certificates for so long as the Adjustable Rate Certificates are in
book-entry form), the close of business on the last Business Day of the month preceding the month
in which the related Distribution Date occurs. With respect to each Distribution Date and the
Adjustable Rate Certificates (so long as they are Book-Entry Certificates), the close of business
on the Business Day prior to such Distribution Date

     Related Classes: As to any Uncertificated REMIC I Regular Interest, those classes of
Certificates identified as “Related Classes of Certificates” to such Uncertificated REMIC I Regular
Interest in the definition of Uncertificated REMIC I Regular Interest. As to any Uncertificated
REMIC II Regular Interest, those classes of Certificates identified as “Related Classes of
Certificates” to such Uncertificated REMIC II Regular Interest in the definition of Uncertificated
REMIC II Regular Interest. As to any Uncertificated REMIC II Regular Interest, those classes of
Certificates identified as “Related Classes of Certificates” to such Uncertificated REMIC II
Regular Interest in the definition of Uncertificated REMIC II Regular Interest.

     REMIC I: The segregated pool of assets (exclusive of the Yield Maintenance
Agreements, which are not assets of any REMIC), with respect to which a REMIC election is to be
made, consisting of:

	 	(i)	 	the Group I Loans and the related Mortgage Files,

19

 

	 	(ii)	 	all payments and collections in respect of the Group I Loans
due after the Cut-off Date (other than Monthly Payments due in the month of the
Cut-off Date) as shall be on deposit in the Custodial Account or in the
Certificate Account and identified as belonging to the Trust Fund, including
the proceeds from the liquidation of Additional Collateral for any Additional
Collateral Loan, but not including amounts on deposit in the Initial Monthly
Payment Fund,
	 
	 	(iii)	 	property which secured a Group I Loan and which has been
acquired for the benefit of the Certificateholders by foreclosure or deed in
lieu of foreclosure,
	 
	 	(iv)	 	the hazard insurance policies and Primary Insurance Policies,
if any, the Pledged Assets with respect to each Pledged Asset Mortgage Loan,
and the interest in the Surety Bond transferred to the Trustee pursuant to
Section 2.01 herein, in each case related to Group I Loans, and
	 
	 	(v)	 	all proceeds of clauses (i) through (iv) above.

     REMIC I Certificates: The Class R-I Certificates.

     REMIC II: The segregated pool of assets, with respect to which a REMIC election is to
be made, consisting of:

	 	(i)	 	the Group II Loans and the Group III Loans and the related
Mortgage Files,
	 
	 	(ii)	 	all payments and collections in respect of the Group II Loans
and the Group III Loans due after the Cut-off Date (other than Monthly Payments
due in the month of the Cut-off Date) as shall be on deposit in the Custodial
Account or in the Certificate Account and identified as belonging to the Trust
Fund, including the proceeds from the liquidation of Additional Collateral for
any Additional Collateral Loan, but not including amounts on deposit in the
Initial Monthly Payment Fund,
	 
	 	(iii)	 	property which secured a Group II Loan or Group III Loan and
which has been acquired for the benefit of the Certificateholders by
foreclosure or deed in lieu of foreclosure,
	 
	 	(iv)	 	the hazard insurance policies and Primary Insurance Policies,
if any, the Pledged Assets with respect to each Pledged Asset Mortgage Loan,
and the interest in the Surety Bond transferred to the Trustee pursuant to
Section 2.01 herein, in each case related to Group II Loans or Group III Loans,
and
	 
	 	(v)	 	all proceeds of clauses (i) through (iv) above.

     REMIC II Certificates: The Class R-II Certificates.

20

 

     REMIC III: The segregated pool of assets consisting of the Uncertificated REMIC I
Regular Interests and the Uncertificated REMIC II Regular Interests conveyed in trust to the
Trustee for the benefit of the holders of each Class of Certificates (other than the Class R-I
Certificates and the Class R-II Certificates) pursuant to Section 2.06, with respect to which a
separate REMIC election is to be made.

     REMIC III Certificates: Any Class of Certificates (other than the Class R-I
Certificates and the Class R-II Certificates).

     Senior Accelerated Distribution Percentage: With respect to any Distribution Date
occurring on or prior to the 60th Distribution Date and Loan Group I, 100%. With respect to any
Distribution Date thereafter and such Loan Group as follows:

     (i) for any Distribution Date after the [__]th Distribution Date but on or prior to the
[__]th Distribution Date, the related Senior Percentage for such Distribution Date plus
[__]% of the related Subordinate Percentage for such Distribution Date;

     (ii) for any Distribution Date after the [__]th Distribution Date but on or prior to
the [__]th Distribution Date, the related Senior Percentage for such Distribution Date plus
[__]% of the related Subordinate Percentage for such Distribution Date;

     (iii) for any Distribution Date after the [__]th Distribution Date but on or prior to
the [__]th Distribution Date, the related Senior Percentage for such Distribution Date plus
[__]% of the related Subordinate Percentage for such Distribution Date;

     (iv) for any Distribution Date after the [__]th Distribution Date but on or prior to
the [__]th Distribution Date, the related Senior Percentage for such Distribution Date plus
[__]% of the related Subordinate Percentage for such Distribution Date; and

     (v) for any Distribution Date thereafter, the related Senior Percentage for such
Distribution Date;

provided, however,

     (i) that any scheduled reduction to the Senior Accelerated Distribution Percentage described
above shall not occur as of any Distribution Date unless either:

     (a)(1)(X) the outstanding principal balance of the Mortgage Loans in the related Loan
Group delinquent 60 days or more (including Mortgage Loans which are in foreclosure, have
been foreclosed or otherwise liquidated, or with respect to which the Mortgagor is in
bankruptcy and any REO Property) averaged over the last six months, as a percentage of the
aggregate outstanding Certificate Principal Balance of the related Subordinate Certificates,
is less than [__]% or (Y) the outstanding principal balance of Mortgage Loans in the related
Loan Group delinquent 60 days or more (including Mortgage Loans which are in foreclosure,
have been foreclosed or otherwise liquidated, or with respect to which the Mortgagor is in
bankruptcy and any REO Property) averaged over the last six months, as a percentage of the
aggregate outstanding principal balance of all Mortgage Loans in the related Loan Group
averaged over the last six months, does not

21

 

exceed 2% and (2) Realized Losses on the Mortgage Loans in the related Loan Group to
date for such Distribution Date if occurring during the sixth, seventh, eighth, ninth or
tenth year (or any year thereafter) after the Closing Date are less than [__]%, [__]%,
[__]%, [__]% or [__]%, respectively, of the sum of the Initial Certificate Principal
Balances of the related Subordinate Certificates; or

     (b)(1) the outstanding principal balance of Mortgage Loans in the related Loan Group
delinquent 60 days or more (including Mortgage Loans which are in foreclosure, have been
foreclosed or otherwise liquidated, or with respect to which the Mortgagor is in bankruptcy
and any REO Property) averaged over the last six months, as a percentage of the aggregate
outstanding principal balance of all Mortgage Loans in the related Loan Group averaged over
the last six months, does not exceed 4% and (2) Realized Losses on the Mortgage Loans in the
related Loan Group to date for such Distribution Date, if occurring during the sixth,
seventh, eighth, ninth or tenth year (or any year thereafter) after the Closing Date are
less than [__]%, [__]%, [__]%, [__]% or [__]%, respectively, of the sum of the Initial
Certificate Principal Balances of the related Subordinate Certificates; and

     (ii) that for any Distribution Date on which the related Senior Percentage is greater than the
related Senior Percentage as of the Closing Date, the related Senior Accelerated Distribution
Percentage for such Distribution Date shall be 100%.

     Notwithstanding the foregoing, upon the reduction of the Certificate Principal Balances of the
Senior Certificates related to Loan Group I (other than the related Class A-P Certificates, if any)
to zero, the related Senior Accelerated Distribution Percentage shall thereafter be 0%.

     With respect to any Distribution Date occurring on or prior to the 60th Distribution Date and
Loan Group II and Loan Group III, 100%. With respect to any Distribution Date thereafter and Loan
Group II and Loan Group III as follows:

     (i) for any Distribution Date after the [__]th Distribution Date but on or prior to the
[__]th Distribution Date, the related Senior Percentage for such Distribution Date plus
[__]% of the related Subordinate Percentage for such Distribution Date;

     (ii) for any Distribution Date after the [__]th Distribution Date but on or prior to
the [__]th Distribution Date, the related Senior Percentage for such Distribution Date plus
[__]% of the related Subordinate Percentage for such Distribution Date;

     (iii) for any Distribution Date after the [__]th Distribution Date but on or prior to
the [__]th Distribution Date, the related Senior Percentage for such Distribution Date plus
[__]% of the related Subordinate Percentage for such Distribution Date;

     (iv) for any Distribution Date after the [__]th Distribution Date but on or prior to
the [__]th Distribution Date, the related Senior Percentage for such Distribution Date plus
[__]% of the related Subordinate Percentage for such Distribution Date; and

     (v) for any Distribution Date thereafter, the related Senior Percentage for such
Distribution Date;

22

 

provided, however,

     (i) that any scheduled reduction to the Senior Accelerated Distribution Percentage described
above shall not occur as of any Distribution Date unless either:

     (a)(1)(X) the outstanding principal balance of the Mortgage Loans in Loan Group II and
Loan Group III delinquent 60 days or more (including Mortgage Loans which are in
foreclosure, have been foreclosed or otherwise liquidated, or with respect to which the
Mortgagor is in bankruptcy and any REO Property) averaged over the last six months, as a
percentage of the aggregate outstanding Certificate Principal Balance of the related
Subordinate Certificates, is less than [__]% or (Y) the outstanding principal balance of
Mortgage Loans in Loan Group II and Loan Group III delinquent 60 days or more (including
Mortgage Loans which are in foreclosure, have been foreclosed or otherwise liquidated, or
with respect to which the Mortgagor is in bankruptcy and any REO Property) averaged over the
last six months, as a percentage of the aggregate outstanding principal balance of all
Mortgage Loans in Loan Group II and Loan Group III averaged over the last six months, does
not exceed 2% and (2) Realized Losses on the Mortgage Loans in Loan Group II and Loan Group
III to date for such Distribution Date if occurring during the sixth, seventh, eighth, ninth
or tenth year (or any year thereafter) after the Closing Date are less than [__]%, [__]%,
[__]%, [__]% or [__]%, respectively, of the sum of the Initial Certificate Principal
Balances of the related Subordinate Certificates; or

     (b)(1) the outstanding principal balance of Mortgage Loans in Loan Group II and Loan
Group III delinquent 60 days or more (including Mortgage Loans which are in foreclosure,
have been foreclosed or otherwise liquidated, or with respect to which the Mortgagor is in
bankruptcy and any REO Property) averaged over the last six months, as a percentage of the
aggregate outstanding principal balance of all Mortgage Loans in Loan Group II and Loan
Group III averaged over the last six months, does not exceed 4% and (2) Realized Losses on
the Mortgage Loans in Loan Group II and Loan Group III to date for such Distribution Date,
if occurring during the sixth, seventh, eighth, ninth or tenth year (or any year thereafter)
after the Closing Date are less than [__]%, [__]%, [__]%, [__]% or [__]%, respectively, of
the sum of the Initial Certificate Principal Balances of the related Subordinate
Certificates; and

     (ii) that for any Distribution Date on which the weighted average of the Senior Percentages
for Loan Group II and Loan Group III, weighted on the basis of the Stated Principal Balances of the
Mortgage Loans in the related Loan Group excluding the Discount Fraction of the Discount Mortgage
Loans exceeds the weighted average of the initial Senior Percentages, calculated on that basis,
each of the Senior Accelerated Distribution Percentages for Loan Group II and Loan Group III for
that Distribution Date will once again equal 100%.

          Notwithstanding the foregoing, upon the reduction of the Certificate Principal Balances of the
Senior Certificates related to Loan Group II or Loan Group III (other than the related Class A-P
Certificates, if any) to zero, the related Senior Accelerated Distribution Percentage shall
thereafter be 0%.

23

 

     Senior Certificate: Any one of the Group I Senior Certificates, Group II Senior
Certificates, Group III Senior Certificates, Class II-A-V Certificates or Class II-A-P
Certificates, executed by the Trustee and authenticated by the Certificate Registrar substantially
in the form annexed to the Standard Terms as Exhibit A and Exhibit D.

     Senior Interest Distribution Amount: With respect to any Distribution Date and Loan
Group, the amount of Accrued Certificate Interest required to be distributed from the related
Available Distribution Amount to the Holders of the related Senior Certificates for that
Distribution Date, including, with respect to the Certificate Group relating to Loan Group I, the
Accrual Distribution Amount.

     Senior Percentage: The Class I-A Percentage, Class II-A Percentage or Class III-A
Percentage, as applicable.

     Senior Principal Distribution Amount: With respect to any Distribution Date and Loan
Group the lesser of (a) the balance of the related Available Distribution Amount remaining after
the distribution of all amounts required to be distributed therefrom pursuant to Section 4.02(a)(i)
and Section 4.02(a)(ii)(X) (excluding any amount distributable pursuant to clause (E) of the
definition of “Class A-P Principal Distribution Amount”), and (b) the sum of the amounts required
to be distributed to the Senior Certificateholders of the related Certificate Group, other than the
Class I-A-P Certificates, on such Distribution Date pursuant to Sections 4.02(a)(ii)(Y),
4.02(a)(xvi) and 4.02(a)(xvii).

     Senior Support Certificates: Any of the Class I-A-16 Certificates.

     Subordinate Certificate: With respect to Loan Group I, any one of the Class I-M
Certificates or Class I-B-1, Class I-B-2 and Class I-B-3 Certificates, executed by the Trustee and
authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B
and Exhibit C, respectively. With respect to Loan Group II, any one of the Class II-M Certificates
or Class II-B-1, Class II-B-2 and Class II-B-3 Certificates, executed by the Trustee and
authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit B
and Exhibit C, respectively.

     Subordinate Class Percentage: With respect to any Distribution Date and any Class of
Subordinate Certificates, a fraction, expressed as a percentage, the numerator of which is the
aggregate Certificate Principal Balance of such Class of Subordinate Certificates immediately prior
to such date and the denominator of which is the aggregate Stated Principal Balance of all of the
Mortgage Loans in the related Loan Group or Loan Groups (or related REO Properties) (other than the
related Discount Fraction of each related Discount Mortgage Loan) immediately prior to such
Distribution Date.

     Subordinate Percentage: With respect to any Loan Group, as of any date of
determination a percentage equal to 100% minus the related Senior Percentage as of that date.

     Subordinate Principal Distribution Amount: With respect to any Distribution Date and
Loan Group and each Class of related Subordinate Certificates, (a) the sum of the following: (i)
such Class’s pro rata share, based on the Certificate Principal Balance of each Class of related
Subordinate Certificates then outstanding, of the aggregate of the amounts calculated (without

24

 

giving effect to the related Senior Percentages) for such Distribution Date for the related
Loan Group under clauses (1), (2) and (3) of Section 4.02(a)(ii)(Y)(A) to the extent not payable to
the related Senior Certificates; (ii) such Class’s pro rata share, based on the Certificate
Principal Balance of each Class of related Subordinate Certificates then outstanding, of the
principal collections described in Section 4.02(a)(ii)(Y)(B)(b) for the related Loan Group (without
giving effect to the related Senior Accelerated Distribution Percentages) to the extent such
collections are not otherwise distributed to the related Senior Certificates; (iii) the product of
(x) the related Prepayment Distribution Percentage and (y) the aggregate of all Principal
Prepayments in Full received in the related Prepayment Period and Curtailments received in the
preceding calendar month for the related Loan Group (other than the related Discount Fraction of
such Principal Prepayments in Full and Curtailments with respect to a related Discount Mortgage
Loan) to the extent not payable to the related Senior Certificates; (iv) if such Class is the
Class of related Subordinate Certificates with the Highest Priority, any related Excess
Subordinate Principal Amount for the related Loan Group for such Distribution Date not paid to the
related Senior Certificates; and (v) any amounts described in clauses (i), (ii) and (iii) as
determined for any previous Distribution Date, that remain undistributed to the extent that such
amounts are not attributable to Realized Losses which have been allocated to a Class of related
Subordinate Certificates minus (b) the sum of (i) with respect to the Class of Subordinate
Certificates with the Lowest Priority, any related Excess Subordinate Principal Amount for such
Distribution Date; and (ii) the related Capitalization Reimbursement Amount for such Loan Group
and Distribution Date, other than the related Discount Fraction of any portion of that amount
related to each related Discount Mortgage Loan in the related Loan Group, multiplied by a
fraction, the numerator of which is the Subordinate Principal Distribution Amount for such Class of
related Subordinate Certificates, without giving effect to this clause (b)(ii), and the
denominator of which is the sum of the principal distribution amounts for all Classes of
Certificates in the related Certificate Group (other than the Class A-P Certificates), without
giving effect to any reductions for the Capitalization Reimbursement Amount.

     Super Senior Certificates: Any of the Class I-A-4 Certificates.

     Targeted Principal Balance: With respect to any Distribution Date, the amount set
forth in Schedule II of the table entitled “Planned Principal Balances and Targeted Principal
Balances” in Exhibit Five opposite such date.

     Uncertificated Accrued Interest: With respect to each Distribution Date, (i) as to
each Uncertificated REMIC I Regular Interest other than each Uncertificated REMIC I Regular
Interest Z, an amount equal to the aggregate amount of Accrued Certificate Interest that would
result under the terms of the definition thereof on the Related Classes of Certificates (excluding
any Interest Only Certificates) if the Pass-Through Rate on such Classes were equal to the
Uncertificated Pass-Through Rate on such Uncertificated REMIC I Regular Interest, (ii) as to each
Uncertificated REMIC I Regular Interest Z and each Uncertificated REMIC III Regular Interest Z1, an
amount equal to one month’s interest at the Pool Strip Rate of the related Mortgage Loan on the
principal balance of such Mortgage Loan reduced by such Interest’s pro-rata share of any prepayment
interest shortfalls or other reductions of interest allocable to the Class I-A-V Certificates,
(iii) as to each Uncertificated REMIC II Regular Interest other than each Uncertificated REMIC II
Regular Interest Z, an amount equal to the aggregate amount of Accrued Certificate Interest that
would result under the terms of the definition thereof on the

25

 

Related Classes of Certificates (excluding any Interest Only Certificates) if the Pass-Through
Rate on such Classes were equal to the Uncertificated Pass-Through Rate on such Uncertificated
REMIC II Regular Interest and (iv) as to each Uncertificated REMIC II Regular Interest Z and each
Uncertificated REMIC III Regular Interest Z2, an amount equal to one month’s interest at the Pool
Strip Rate of the related Mortgage Loan on the principal balance of such Mortgage Loan reduced by
such Interest’s pro-rata share of any prepayment interest shortfalls or other reductions of
interest allocable to the Class II-A-V Certificates.

     Uncertificated Pass-Through Rate: With respect to each of the Uncertificated REMIC I
Regular Interests, other than the Uncertificated REMIC I Regular Interests Z, the per annum rate
specified in the definition of Uncertificated REMIC I Regular Interests. With respect to each
Uncertificated REMIC I Regular Interest Z and each Uncertificated REMIC III Regular Interest Z1,
the Pool Strip Rate for the related Mortgage Loan. With respect to each of the Uncertificated
REMIC II Regular Interests, other than the Uncertificated REMIC II Regular Interests Z, the per
annum rate specified in the definition of Uncertificated REMIC II Regular Interests. With respect
to each Uncertificated REMIC II Regular Interest Z and each Uncertificated REMIC III Regular
Interest Z2, the Pool Strip Rate for the related Mortgage Loan.

     Uncertificated Principal Balance: With respect to each Uncertificated REMIC I Regular
Interest, as defined in the definition of Uncertificated REMIC I Regular Interest. With respect to
each Uncertificated REMIC II Regular Interest, as defined in the definition of Uncertificated REMIC
II Regular Interest.

     Uncertificated REMIC I Regular Interests: The Uncertificated REMIC I Regular
Interests Z together with the interests identified in the table below, each representing an
undivided beneficial ownership interest in REMIC I, and having the following characteristics:

	 	1.	 	The principal balance from time to time of each Uncertificated REMIC I Regular
Interest identified in the table below shall be the amount identified as the Initial
Principal Balance thereof in such table, minus the sum of (x) the aggregate of all
amounts previously deemed distributed with respect to such interest and applied to
reduce the Uncertificated Principal Balance thereof pursuant to Section 10.04(a)(ii)
and (y) the aggregate of all reductions in Certificate Principal Balance deemed to have
occurred in connection with Realized Losses that were previously deemed allocated to
the Uncertificated Principal Balance of such Uncertificated REMIC I Regular Interest
pursuant to Section 10.04(d), which equals the aggregate principal balance of the
Classes of Certificates identified as related to such Uncertificated REMIC I Regular
Interest in such table.
	 
	 	2.	 	The Uncertificated Pass-Through Rate for each Uncertificated REMIC I Regular
Interest identified in the table below shall be the per annum rate set forth in the
Pass-Through Rate column of such table.
	 
	 	3.	 	The Uncertificated REMIC I Distribution Amount for each REMIC I Regular
Interest identified in the table below shall be, for any Distribution Date, the amount
deemed distributed with respect to such Uncertificated REMIC I Regular Interest on such
Distribution Date pursuant to the provisions of Section 10.04(a).

26

 

	 	 	 	 	 	 	 	 	 
	Uncertificated	 	 	 	 	 	 	 	 
	REMIC I Regular	 	 	 	 	 	 	 	Initial Principal
	Interest	 	Related Classes of Certificates	 	Pass-Through Rate	 	Balance
	X

	 	Class I-A-P
	 	 	0.00	%	 	$[___________]
	Y

	 	Class I-A-1, Class I-A-2,
Class I-A-3, Class I-A-4,
Class I-A-5, Class I-A-6,
Class I-A-7, Class I-A-8,
Class I-A-9, Class I-A-10,
Class I-A-11, Class I-A-12,
Class I-A-13, Class I-A-14,
Class I-A-15, Class I-A-16,
Class I-A-17, Class I-A-18,
Class I-M-1, Class I-M-2,
Class I-M-3, Class I-B-1,
Class I-B-2, Class I-B-3
	 	 	[__]	%	 	$[___________]

     Uncertificated REMIC II Regular Interests: The Uncertificated REMIC II Regular
Interests Z together with the interests identified in the table below, each representing an
undivided beneficial ownership interest in REMIC II, and having the following characteristics:

	 	1.	 	The principal balance from time to time of each Uncertificated REMIC II Regular
Interest identified in the table below shall be the amount identified as the Initial
Principal Balance thereof in such table, minus the sum of (x) the aggregate of all
amounts previously deemed distributed with respect to such interest and applied to
reduce the Uncertificated Principal Balance thereof pursuant to Section 10.04(a)(ii)
and (y) the aggregate of all reductions in Certificate Principal Balance deemed to have
occurred in connection with Realized Losses that were previously deemed allocated to
the Uncertificated Principal Balance of such Uncertificated REMIC II Regular Interest
pursuant to Section 10.04(d), which equals the aggregate principal balance of the
Classes of Certificates identified as related to such Uncertificated REMIC II Regular
Interest in such table.
	 
	 	2.	 	The Uncertificated Pass-Through Rate for each Uncertificated REMIC II Regular
Interest identified in the table below shall be the per annum rate set forth in the
Pass-Through Rate column of such table.
	 
	 	3.	 	The Uncertificated REMIC II Distribution Amount for each REMIC II Regular
Interest identified in the table below shall be, for any Distribution Date, the amount
deemed distributed with respect to such Uncertificated REMIC II Regular Interest on
such Distribution Date pursuant to the provisions of Section 10.04(a).

27

 

	 	 	 	 	 	 	 	 	 
	Uncertificated	 	 	 	 	 	 	 
	REMIC II Regular	 	 	 	Pass-Through	 	Initial Principal	 
	Interest	 	Related Classes of Certificates	 	Rate	 	Balance	 
	X
	 	Class II-A-P	 	0.00%	 	$	[___________]	 
	 
	 	 	 	 	 	 	 	 
	Y
	 	Class II-A-1, Class II-A-2,	 	 	 	 	 	 
	 
	 	Class III-A-1, Class II-M-1,	 	 	 	 	 	 
	 
	 	Class II-M-2, Class II-M-3,	 	 	 	 	 	 
	 
	 	Class II-B-1, Class II-B-2,	 	 	 	 	 	 
	 
	 	Class II-B-3, Class R-III	 	[___]%	 	$	[___________]	 

     Uncertificated REMIC I Regular Interests Z: Each of the [_____] uncertificated
partial undivided beneficial ownership interests in the Trust Fund, numbered sequentially from 1 to
[_____], each relating to the particular Mortgage Loan identified by such sequential number on the
Mortgage Loan Schedule, each having no principal balance, and each bearing interest at the
respective Pool Strip Rate on the Stated Principal Balance of the related Mortgage Loan.

     Uncertificated REMIC I Regular Interests Z Distribution Amount: With respect to any
Distribution Date, the sum of the amounts deemed to be distributed on the Uncertificated REMIC I
Regular Interests Z for such Distribution Date pursuant to Section 10.04(a).

     Uncertificated REMIC I Regular Interest Distribution Amounts: With respect to each
Uncertificated REMIC I Regular Interest, other than the Uncertificated REMIC I Regular Interests Z,
the amount specified as the Uncertificated REMIC I Regular Interest Distribution Amount with
respect thereto in the definition of Uncertificated REMIC I Regular Interests. With respect to the
Uncertificated REMIC I Regular Interests Z, the Uncertificated REMIC I Regular Interests Z
Distribution Amount.

     Uncertificated REMIC II Regular Interests Z: Each of the [_____] uncertificated
partial undivided beneficial ownership interests in the Trust Fund, numbered sequentially from 1 to
[_____], each relating to the particular Mortgage Loan identified by such sequential number on the
Mortgage Loan Schedule, each having no principal balance, and each bearing interest at the
respective Pool Strip Rate on the Stated Principal Balance of the related Mortgage Loan.

     Uncertificated REMIC II Regular Interests Z Distribution Amount: With respect to any
Distribution Date, the sum of the amounts deemed to be distributed on the Uncertificated REMIC II
Regular Interests Z for such Distribution Date pursuant to Section 10.04(a).

     Uncertificated REMIC II Regular Interest Distribution Amounts: With respect to each
Uncertificated REMIC II Regular Interest, other than the Uncertificated REMIC II Regular Interests
Z, the amount specified as the Uncertificated REMIC II Regular Interest Distribution Amount with
respect thereto in the definition of Uncertificated REMIC II Regular Interests. With respect to
the Uncertificated REMIC II Regular Interests Z, the Uncertificated REMIC II Regular Interests Z
Distribution Amount.

     Uncertificated REMIC III Regular Interests Z1: Each of the [_____] uncertificated
partial undivided beneficial ownership interests in REMIC III numbered sequentially from 1 through
[_____] each relating to the identically numbered Uncertificated REMIC I Regular

28

 

Interests Z, each having no principal balance and bearing interest at a rate equal to the
related Pool Strip Rate on the Stated Principal Balance of the Mortgage Loan related to the
identically numbered Uncertificated REMIC I Regular Interests Z, comprising such Uncertificated
REMIC III Regular Interests Z1’s pro rata share of the amount distributed pursuant to Section
10.04(a).

     Uncertificated REMIC III Regular Interests Z2: Each of the [_____] uncertificated
partial undivided beneficial ownership interests in REMIC III numbered sequentially from 1 through
[_____] each relating to the identically numbered Uncertificated REMIC II Regular Interests Z, each
having no principal balance and bearing interest at a rate equal to the related Pool Strip Rate on
the Stated Principal Balance of the Mortgage Loan related to the identically numbered
Uncertificated REMIC II Regular Interests Z, comprising such Uncertificated REMIC III Regular
Interests Z2’s pro rata share of the amount distributed pursuant to Section 10.04(a).

     Uncertificated REMIC III Regular Interests Distribution Amount: With respect to any
Distribution Date, the sum of the amounts deemed to be distributed on the Uncertificated REMIC I
Regular Interests Z and Uncertificated REMIC II Regular Interests Z for such Distribution Date
pursuant to Section 10.04(a).

     Undercollateralized Amount: With respect any Certificate Group and Distribution Date,
the excess of (i) the aggregate Certificate Principal Balance of such Certificate Group over (ii)
the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group, in each
case calculated on such Distribution Date after giving effect to distributions to be made thereon
(other than amounts to be distributed pursuant to Section 4.02(m) on such Distribution Date).

     Undercollateralized Certificate Group: With respect any Distribution Date, a
Certificate Group for which the related Undercollateralized Amount exceeds zero.

     Underwriter[s]: [______________].

     Yield Maintenance Agreement: Each of the Class I-A-2 Yield Maintenance Agreement,
Class I-A-10 Yield Maintenance Agreement, Class I-A-14 Yield Maintenance Agreement and Class I-A-17
Yield Maintenance Agreement.

     Yield Maintenance Agreement Provider: [______________], as applicable, and its
successors and assigns or any party to any replacement, substitute, collateral or other arrangement
in lieu thereof.

     Yield Maintenance Payment: For any Distribution Date, the payment, if any, due under
the applicable Yield Maintenance Agreement in respect of such Distribution Date.

          Section 1.02 Use of Words and Phrases.

     “Herein,” “hereby,” “hereunder,” “hereof,” “hereinbefore,” “hereinafter” and other equivalent
words refer to the Pooling and Servicing Agreement as a whole. All references herein to Articles,
Sections or Subsections shall mean the corresponding Articles, Sections and

29

 

Subsections in the Pooling and Servicing Agreement. The definitions set forth herein include
both the singular and the plural.

          Section 1.03. Determination of LIBOR.

     LIBOR applicable to the calculation of the Pass-Through Rates on the Adjustable Rate
Certificates for any Interest Accrual Period (other than the initial Interest Accrual Period) will
be determined as described below:

     On each Distribution Date, LIBOR shall be established by the Trustee and, as to any Interest
Accrual Period, will equal the rate for one month United States dollar deposits that appears on the
Dow Jones Telerate Screen Page 3750 as of 11:00 a.m., London time, on the second LIBOR Business Day
prior to the first day of such Interest Accrual Period (“LIBOR Rate Adjustment Date”). “Telerate
Screen Page 3750” means the display designated as page 3750 on the Telerate Service (or such other
page as may replace page 3750 on that service for the purpose of displaying London interbank
offered rates of major banks). If such rate does not appear on such page (or such other page as may
replace that page on that service, or if such service is no longer offered, LIBOR shall be so
established by use of any other service for displaying LIBOR or comparable rates as may be selected
by the Trustee after consultation with the Master Servicer), the rate will be the Reference Bank
Rate. The “Reference Bank Rate” will be determined on the basis of the rates at which deposits in
U.S. Dollars are offered by the reference banks (which shall be any three major banks that are
engaged in transactions in the London interbank market, selected by the Trustee after consultation
with the Master Servicer) as of 11:00 a.m., London time, on the day that is one LIBOR Business Day
prior to the immediately preceding Distribution Date to prime banks in the London interbank market
for a period of one month in amounts approximately equal to the aggregate Certificate Principal
Balance of the Adjustable Rate Certificates then outstanding. The Trustee will request the
principal London office of each of the reference banks to provide a quotation of its rate. If at
least two such quotations are provided, the rate will be the arithmetic mean of the quotations
rounded up to the next multiple of 1/16%. If on such date fewer than two quotations are provided as
requested, the rate will be the arithmetic mean of the rates quoted by one or more major banks in
New York City, selected by the Trustee after consultation with the Master Servicer, as of 11:00
a.m., New York City time, on such date for loans in U.S. Dollars to leading European banks for a
period of one month in amounts approximately equal to the aggregate Certificate Principal Balance
of the Adjustable Rate Certificates then outstanding. If no such quotations can be obtained, the
rate will be LIBOR for the prior Distribution Date, or, in the case of the first LIBOR Rate
Adjustment Date, [___]% per annum; provided, however, if, under the priorities described above,
LIBOR for a Distribution Date would be based on LIBOR for the previous Distribution Date for the
third consecutive Distribution Date, the Trustee shall, after consultation with the Master
Servicer, select an alternative comparable index (over which the Trustee has no control), used for
determining one-month Eurodollar lending rates that is calculated and published (or otherwise made
available) by an independent party. “LIBOR Business Day” means any day other than (i) a Saturday or
a Sunday or (ii) a day on which banking institutions in the city of London, England are required or
authorized by law to be closed.

     The establishment of LIBOR by the Trustee on any LIBOR Rate Adjustment Date and the Master
Servicer’s subsequent calculation of the Pass-Through Rates applicable to each of the

30

 

Adjustable Rate Certificates for the relevant Interest Accrual Period, in the absence of
manifest error, will be final and binding.

     Promptly following each LIBOR Rate Adjustment Date the Trustee shall supply the Master
Servicer with the results of its determination of LIBOR on such date. Furthermore, the Trustee
will supply to any Certificateholder so requesting by telephone by calling ([___]) [___]-[___] the
Pass-Through Rates on each of the Adjustable Rate Certificates for the current and the immediately
preceding Interest Accrual Period.

31

 

ARTICLE II

CONVEYANCE OF MORTGAGE LOANS;

ORIGINAL ISSUANCE OF CERTIFICATES

          Section 2.01 Conveyance of Mortgage Loans.

     (a) (See Section 2.01(a) of the Standard Terms).

     (b) (See Section 2.01(b) of the Standard Terms).

     (c) (See Section 2.01(b) of the Standard Terms).

     (d) (See Section 2.01(d) of the Standard Terms).

     (e) (See Section 2.01(e) of the Standard Terms).

     (f) (See Section 2.01(f) of the Standard Terms).

     (g) (See Section 2.01(g) of the Standard Terms).

     (h) (See Section 2.01(h) of the Standard Terms).

     (i) In connection with such assignment, and contemporaneously with the delivery of this
Agreement, the Company delivered or caused to be delivered hereunder to the Trustee, the Yield
Maintenance Agreements (the delivery of which shall evidence that the fixed payment for each of the
Yield Maintenance Agreements has been paid and the Trustee and the Trust Fund shall have no further
payment obligation thereunder and that such fixed payment has been authorized hereby).

          Section 2.02 Acceptance by Trustee. (See Section 2.02 of the Standard Terms)

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

          (a) For representations, warranties and covenants of the Master Servicer, see Section 2.03(a)
of the Standard Terms.

          (b) The Company hereby represents and warrants to the Trustee for the benefit of
Certificateholders that as of the Closing Date (or, if otherwise specified below, as of the date so
specified):

     (i) [No Mortgage Loan] is 30 or more days Delinquent in payment of principal and
interest as of the Cut-off Date and [no Mortgage Loan] has been so Delinquent more than once
in the 12-month period prior to the Cut-off Date;

     (ii) The information set forth in Exhibit One hereto with respect to each Mortgage Loan
or the Mortgage Loans, as the case may be, is true and correct in all material respects at
the date or dates respecting which such information is furnished;

32

 

     (iii) The Mortgage Loans are fully-amortizing (subject to interest only periods, if
applicable), fixed-rate mortgage loans with level Monthly Payments due, with respect to a
majority of the Mortgage Loans, on the first day of each month and terms to maturity at
origination or modification of not more than 30 years, in the case of Group I Loans, and 15
years, in the case of Group II Loans and Group III Loans;

     (iv) To the best of the Company’s knowledge, except in the case of [___] loans
representing [___]% of the Group I Loans, if a Group I Loan is secured by a Mortgaged
Property with a Loan-to-Value Ratio at origination in excess of 80%, such Mortgage Loan is
the subject of a Primary Insurance Policy that insures (a) at least 30% of the Stated
Principal Balance of the Mortgage Loan at origination if the Loan-to-Value Ratio is between
100.00% and 95.01%, (b) at least 25% of the Stated Principal Balance of the Mortgage Loan at
origination if the Loan-to-Value Ratio is between 95.00% and 90.01%, (c) at least 12% of
such balance if the Loan-to-Value Ratio is between 90.00% and 85.01% and (d) at least 6% of
such balance if the Loan-to-Value Ratio is between 85.00% and 80.01%; and , if a Group II
Loan is secured by a Mortgaged Property with a Loan-to-Value Ratio at origination in excess
of 80%, such Mortgage Loan is the subject of a Primary Insurance Policy that insures (a) at
least 35% of the Stated Principal Balance of the Mortgage Loan at origination if the
Loan-to-Value Ratio is between 100.00% and 95.01%, (b) at least 30% of the Stated Principal
Balance of the Mortgage Loan at origination if the Loan-to-Value Ratio is between 95.00% and
90.01%, (c) at least 25% of such balance if the Loan-to-Value Ratio is between 90.00% and
85.01% and (d) at least 12% of such balance if the Loan-to-Value Ratio is between 85.00% and
80.01%. To the best of the Company’s knowledge, each such Primary Insurance Policy is in
full force and effect and the Trustee is entitled to the benefits thereunder;

     (v) The issuers of the Primary Insurance Policies are insurance companies whose
claims-paying abilities are currently acceptable to each Rating Agency;

     (vi) No more than [___]% of the Group I Loans by aggregate Stated Principal Balance as
of the Cut-off Date are secured by Mortgaged Properties located in any one zip code area in
[_________], and no more than [___]% of the Group I Loans by aggregate Stated Principal
Balance as of the Cut-off Date are secured by Mortgaged Properties located in any one zip
code area outside [_________]; no more than [___]% of the Group II Loans by aggregate
Stated Principal Balance as of the Cut-off Date are secured by Mortgaged Properties located
in any one zip code area in [_________], and no more than [___]% of the Group II Loans by
aggregate Stated Principal Balance as of the Cut-off Date are secured by Mortgaged
Properties located in any one zip code area outside [_________]; no more than [___]% of the
Group III Loans by aggregate Stated Principal Balance as of the Cut-off Date are secured by
Mortgaged Properties located in any one zip code area in [_________], and no more than
[___]% of the Group III Loans by aggregate Stated Principal Balance as of the Cut-off Date
are secured by Mortgaged Properties located in any one zip code area outside [_________];

     (vii) The improvements upon the Mortgaged Properties are insured against loss by fire
and other hazards as required by the Program Guide, including flood insurance if required
under the National Flood Insurance Act of 1968, as amended. The Mortgage

33

 

requires the
Mortgagor to maintain such casualty insurance at the Mortgagor’s expense, and on the
Mortgagor’s failure to do so, authorizes the holder of the Mortgage to obtain and maintain
such insurance at the Mortgagor’s expense and to seek reimbursement therefor from the
Mortgagor;

     (viii) Immediately prior to the assignment of the Mortgage Loans to the Trustee, the
Company had good title to, and was the sole owner of, each Mortgage Loan free and clear of
any pledge, lien, encumbrance or security interest (other than rights to servicing and
related compensation) and such assignment validly transfers ownership of the Mortgage Loans
to the Trustee free and clear of any pledge, lien, encumbrance or security interest;

     (ix) Reserved;

     (x) Except with respect to approximately [___]% of the Group I Loans by aggregate
Stated Principal Balance as of the Cut-off Date, approximately [___]% of the Group II Loans
by aggregate Stated Principal Balance as of the Cut-off Date and [___]% of the Group III
Loans by aggregate Stated Principal Balance as of the Cut-off Date, the Mortgagor
represented in its loan application with respect to the related Mortgage Loan that the
Mortgaged Property would be owner-occupied;

     (xi) None of the Mortgage Loans is a Buy-Down Mortgage Loan;

     (xii) Each Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A)
of the Code and Treasury Regulations Section 1.860G-2(a)(1), (2), (4), (5) and (6), without
reliance on the provisions of Treasury Regulation Section 1.860G-2(a)(3) or Treasury
Regulation Section 1.860G-2(f)(2) or any other provision that would allow a Mortgage Loan to
be treated as a “qualified mortgage” notwithstanding its failure to meet the requirements of
Section 860G(a)(3)(A) of the Code and Treasury Regulation Section 1.860G-2(a)(1), (2), (4),
(5) and (6);

     (xiii) A policy of title insurance was effective as of the closing of each Mortgage
Loan and is valid and binding and remains in full force and effect, unless the Mortgaged
Properties are located in the State of Iowa and an attorney’s certificate has been provided
as described in the Program Guide;

     (xiv) Approximately [___]% of the Group I Loans by aggregate Stated Principal Balance
as of the Cut-off Date are Cooperative Loans; with respect to a Mortgage Loan that is a
Cooperative Loan, the Cooperative Stock that is pledged as security for the Mortgage Loan is
held by a person as a tenant-stockholder (as defined in Section 216 of the Code) in a
cooperative housing corporation (as defined in Section 216 of the Code);

     (xv) Reserved;

     (xvi) Interest on each Mortgage Loan is calculated on the basis of a 360-day year
consisting of twelve 30-day months;

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     (xvii) [None of the Mortgage Loans] contain in the related Custodial File a Destroyed
Mortgage Note;

     (xviii) [None of the Mortgage Loans] has been made to an International Borrower, and no
such Mortgagor is a member of a foreign diplomatic mission with diplomatic rank;

     (xix) [No Mortgage Loan] provides for payments that are subject to reduction by
withholding taxes levied by any foreign (non-United States) sovereign government; and

     (xx) [None of the Mortgage Loans] is an Additional Collateral Loan and [none of the
Mortgage Loans] is a Pledged Asset Loan.

It is understood and agreed that the representations and warranties set forth in this Section
2.03(b) shall survive delivery of the respective Custodial Files to the Trustee or any Custodian.

     Upon discovery by any of the Company, the Master Servicer, the Trustee or any Custodian of a
breach of any of the representations and warranties set forth in this Section 2.03(b) that
materially and adversely affects the interests of the Certificateholders in any Mortgage Loan, the
party discovering such breach shall give prompt written notice to the other parties (any Custodian
being so obligated under a Custodial Agreement); provided, however, that in the
event of a breach of the representation and warranty set forth in Section 2.03(b)(xii), the party
discovering such breach shall give such notice within five days of discovery. Within 90 days of
its discovery or its receipt of notice of breach, the Company shall either (i) cure such breach in
all material respects or (ii) purchase such Mortgage Loan from the Trust Fund at the Purchase Price
and in the manner set forth in Section 2.02; provided that the Company shall have the option to
substitute a Qualified Substitute Mortgage Loan or Loans for such Mortgage Loan if such
substitution occurs within two years following the Closing Date; provided that if the omission or
defect would cause the Mortgage Loan to be other than a “qualified mortgage” as defined in Section
860G(a)(3) of the Code, any such cure or repurchase must occur within 90 days from the date such
breach was discovered. Any such substitution shall be effected by the Company under the same terms
and conditions as provided in Section 2.04 for substitutions by [___________]. It is understood
and agreed that the obligation of the Company to cure such breach or to so purchase or substitute
for any Mortgage Loan as to which such a breach has occurred and is continuing shall constitute the
sole remedy respecting such breach available to the Certificateholders or the Trustee on behalf of
the Certificateholders.

          Section 2.04 Representations and Warranties of Sellers.(See Section 2.04 of the Standard
Terms)

          Section 2.05 Execution and Authentication of Certificates/Issuance of Certificates
Evidencing Interests in REMIC I and REMIC II.

     The Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery of the
Custodial Files to it, or any Custodian on its behalf, subject to any exceptions noted, together
with the assignment to it of all other assets included in the Trust Fund and/or the applicable
REMIC, receipt of which is hereby acknowledged. Concurrently with such delivery and in

35

 

exchange
therefor, the Trustee, pursuant to the written request of the Company executed by an officer of the
Company, has executed and caused to be authenticated and delivered to or upon the order of the
Company (i) the Class R-I Certificates in authorized denominations which together with the
Uncertificated REMIC I Regular Interests, evidence the beneficial interest in REMIC I and (ii) the
Class R-II Certificates in authorized denominations which together with the Uncertificated REMIC II
Regular Interests, evidence the beneficial interest in REMIC II.

          Section 2.06 Conveyance of Uncertificated REMIC I Regular Interests and REMIC II Regular
Interests; Acceptance by the Trustee.

     The Company, as of the Closing Date, and concurrently with the execution and delivery hereof,
does hereby assign without recourse all the right, title and interest of the Company in and to the
Uncertificated REMIC I Regular Interests and the Uncertificated REMIC II Regular Interests to the
Trustee for the benefit of the Holders of each Class of Certificates (other than the Class R-I
Certificates and the Class R-II Certificates). The Trustee acknowledges receipt of the
Uncertificated REMIC I Regular Interests and the Uncertificated REMIC II Regular Interests and
declares that it holds and will hold the same in trust for the exclusive use and benefit of all
present and future Holders of each Class of Certificates (other than the Class R-I Certificates and
the Class R-II Certificates). The rights of the Holders of each Class of Certificates (other than
the Class R-I Certificates and the Class R-II Certificates) to receive distributions from the
proceeds of REMIC III in respect of such Classes, and all ownership interests of the Holders of
such Classes in such distributions, shall be as set forth in this Agreement.

          Section 2.07 Issuance of Certificates Evidencing Interest in REMIC III.

     The Trustee acknowledges the assignment to it of the Uncertificated REMIC I Regular Interests
and the Uncertificated REMIC II Regular Interests and, concurrently therewith and in exchange
therefor, pursuant to the written request of the Company executed by an officer of the Company, the
Trustee has executed and caused to be authenticated and delivered to or upon the order of the
Company, all Classes of Certificates (other than the Class R-I Certificates and the Class R-II
Certificates) in authorized denominations, which evidence the beneficial interest in the entire
REMIC III.

          Section 2.08 Purposes and Powers of the Trust. (See Section 2.08 of the Standard
Terms).

          Section 2.09. Agreement Regarding Ability to Disclose.

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     The Company, the Master Servicer and the Trustee hereby agree that, notwithstanding any other
express or implied agreement to the contrary, any and all Persons, and any of their respective
employees, representatives, and other agents may disclose, immediately upon commencement of
discussions, to any and all Persons, without limitation of any kind, the tax treatment and tax
structure of the transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to any of them relating to such tax treatment and tax structure. For
purposes of this paragraph, the terms “tax,” “tax treatment,” “tax structure,” and “tax benefit”
are defined under Treasury Regulation § 1.6011-4(c).

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ARTICLE III

ADMINISTRATION AND SERVICING

OF MORTGAGE LOANS

(See Article III of the Standard Terms)

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ARTICLE IV

PAYMENTS TO CERTIFICATEHOLDERS

          Section 4.01 Certificate Account. (See Section 4.01 of the Standard Terms).

          Section 4.02 Distributions.

          (a) On each Distribution Date the Master Servicer on behalf of the Trustee (or the Paying
Agent appointed by the Trustee) shall distribute to the Master Servicer, in the case of a
distribution pursuant to Section 4.02(a)(iii) below, and to each Certificateholder of record on the
next preceding Record Date (other than as provided in Section 9.01 respecting the final
distribution) either in immediately available funds (by wire transfer or otherwise) to the account
of such Certificateholder at a bank or other entity having appropriate facilities therefor, if such
Certificateholder has so notified the Master Servicer or the Paying Agent, as the case may be, or,
if such Certificateholder has not so notified the Master Servicer or the Paying Agent by the Record
Date, by check mailed to such Certificateholder at the address of such Holder appearing in the
Certificate Register such Certificateholder’s share (which share (A) with respect to each Class of
Certificates (other than any Subclass of the Class A-V Certificates), shall be based on the
aggregate of the Percentage Interests represented by Certificates of the applicable Class held by
such Holder or (B) with respect to any Subclass of the Class A-V Certificates, shall be equal to
the amount (if any) distributed pursuant to Section 4.02(a)(i) below to each Holder of a Subclass
thereof) of the following amounts, in the following order of priority (subject to the provisions of
Section 4.02(b), (c), (e) and (k) below), in each case to the extent of the related Available
Distribution Amount remaining:

     (i) (X) from the Available Distribution Amount (other than the Aggregate Accrual
Distribution Amount) related to the Loan Group I together with the Yield Maintenance
Payments which shall be applied in accordance with Sections 4.02(h) and 4.09), to the
holders of the Group I Senior Certificates (other than the Class I-A-P Certificates) Accrued
Certificate Interest on such Classes of Certificates (or Subclasses, if any, with respect to
the Class I-A-V Certificates) for such Distribution Date, plus any Accrued Certificate
Interest thereon remaining unpaid from any previous Distribution Date except as provided in
the last paragraph of this Section 4.02(a);

     (Y) from the Available Distribution Amount related to Loan Group II , to the holders of
the Group II Senior Certificates Accrued Certificate Interest on such Classes of
Certificates for such Distribution Date, plus any Accrued Certificate Interest thereon
remaining unpaid from any previous Distribution Date except as provided in the last
paragraph of this Section 4.02(a);

     (Z) from the Available Distribution Amount related to each of Loan Group II and Loan
Group III, on a parity with the distributions in Sections 4.02(a)(i)(Y) and 4.02 (a)(i)(AA),
to the holders of the Class II-A-V Certificates Accrued Certificate Interest on such Class
of Certificates for such Distribution Date, plus any Accrued
Certificate Interest thereon remaining unpaid from any previous Distribution Date
except as provided in the last paragraph of this Section 4.02(a); and

39

 

          (AA) from the Available Distribution Amount related to the Loan Group III, to the
holders of the Group III Senior Certificates Accrued Certificate Interest on such Class of
Certificates for such Distribution Date, plus any Accrued Certificate Interest thereon
remaining unpaid from any previous Distribution Date except as provided in the last
paragraph of this Section 4.02(a);

     (ii) (X) to the Class I-A-P Certificates from the Available Distribution Amounts from
Loan Group I and to the Class II-A-P Certificates, from the Available Distribution Amounts
for Loan Group II and Loan Group III, the Class A-P Principal Distribution Amount for the
related Loan Group or Loan Groups (applied to reduce the Certificate Principal Balance of
the related Class A-P Certificates); and

          (Y) to the Senior Certificates (other than the Class A-P Certificates and the Class A-V
Certificates) of each Certificate Group, from the Available Distribution Amount for the
related Loan Group in the priorities and amounts set forth in Section 4.02(b) and (c), the
sum of the following (applied to reduce the Certificate Principal Balances of such Senior
Certificates, as applicable):

               (A) the related Senior Percentage for such Distribution Date and Loan Group, as applicable,
times the sum of the following:

     (1) the principal portion of each Monthly Payment due during the
related Due Period on each Outstanding Mortgage Loan in the related Loan
Group (other than the related Discount Fraction of the principal portion of
such payment with respect to a Discount Mortgage Loan, if any), whether or
not received on or prior to the related Determination Date;

     (2) the Stated Principal Balance of any Mortgage Loan in the related
Loan Group repurchased during the preceding calendar month (or deemed to
have been so repurchased in accordance with Section 3.07(b)) pursuant to
Section 2.02, 2.03, 2.04 or 4.07 and the amount of any shortfall deposited
in the Custodial Account in connection with the substitution of a Deleted
Mortgage Loan in such Loan Group pursuant to Section 2.03 or 2.04 during the
preceding calendar month (other than the related Discount Fraction of such
Stated Principal Balance or shortfall with respect to each Discount Mortgage
Loan, if any); and

     (3) the principal portion of all other unscheduled collections (other
than Principal Prepayments in Full and Curtailments and amounts received in
connection with a Cash Liquidation or REO Disposition of a Mortgage Loan
described in Section 4.02(a)(ii)(Y)(B) of this Series Supplement, including
without limitation Insurance Proceeds, Liquidation Proceeds and REO
Proceeds) with respect to the related Loan Group,
including Subsequent Recoveries, received during the preceding calendar
month (or deemed to have been so received in accordance with Section
3.07(b)) to the extent applied by the Master Servicer as recoveries of

40

 

principal of the related Mortgage Loan pursuant to Section 3.14 of the
Standard Terms (other than the related Discount Fraction of the principal
portion of such unscheduled collections, with respect to each Discount
Mortgage Loan, if any, in the related Loan Group);

     (B) with respect to each Mortgage Loan in the related Loan Group for which a
Cash Liquidation or a REO Disposition occurred during the preceding calendar month
(or was deemed to have occurred during such period in accordance with Section
3.07(b) of the Standard Terms) an amount equal to the lesser of (a) the related
Senior Percentage for such Distribution Date times the Stated Principal Balance of
such Mortgage Loan (other than the related Discount Fraction of such Stated
Principal Balance, with respect to each Discount Mortgage Loan) and (b) the related
Senior Accelerated Distribution Percentage for such Distribution Date times the
related unscheduled collections (including without limitation Insurance Proceeds,
Liquidation Proceeds and REO Proceeds) to the extent applied by the Master Servicer
as recoveries of principal of the related Mortgage Loan pursuant to Section 3.14 of
the Standard Terms (in each case other than the portion of such unscheduled
collections, with respect to a Discount Mortgage Loan, included in clause (C) of the
definition of Class A-P Principal Distribution Amount);.

     (C) the related Senior Accelerated Distribution Percentage for such
Distribution Date times the aggregate of all Principal Prepayments in Full with
respect to the related Loan Group received in the related Prepayment Period and
Curtailments with respect to the related Loan Group received in the preceding
calendar month (other than the related Discount Fraction of such Principal
Prepayments in Full and Curtailments, with respect to each Discount Mortgage Loan in
the related Loan Group);

     (D) any portion of the Excess Subordinate Principal Amount for such
Distribution Date allocated with respect to such Loan Group; and

     (E) amounts allocated to the related Certificate Group, as applicable, pursuant
to Section 4.02(m); and

     (F) any amounts described in subsection (ii)(Y), clauses (A), (B) and (C) of
this Section 4.02(a), as determined for any previous Distribution Date, which remain
unpaid after application of amounts previously distributed pursuant to this clause
(F) to the extent that such amounts are not attributable to Realized Losses which
have been allocated to the Subordinate Certificates; minus;

     (G) the related Capitalization Reimbursement Amount for such Distribution Date,
other than the related Discount Fraction of any portion of that amount related to
each Discount Mortgage Loan, if any, in the related Loan
Group, multiplied by a fraction, the numerator of which is the Senior Principal
Distribution Amount, without giving effect to this clause (G), and the denominator
of which is the sum of the principal distribution amounts for all

41

 

Classes of related
Certificates other than the related Class A-P Certificates, payable from the
Available Distribution Amount for the related Loan Group without giving effect to
any reductions for the Capitalization Reimbursement Amount;

     (iii) if the Certificate Principal Balances of the Subordinate Certificates relating to
a Loan Group have not been reduced to zero, to the Master Servicer or a Subservicer, by
remitting for deposit to the Custodial Account, to the extent of and in reimbursement for
any Advances or Subservicer Advances previously made with respect to any related Mortgage
Loan or REO Property which remain unreimbursed in whole or in part following the Cash
Liquidation or REO Disposition of such Mortgage Loan or REO Property;

     (iv) to the Holders of the Class I-M-1 Certificates or the Class II-M-1 Certificates,
as applicable, the Accrued Certificate Interest thereon for such Distribution Date, plus any
Accrued Certificate Interest thereon remaining unpaid from any previous Distribution Date,
except as provided below;

     (v) to the Holders of the Class I-M-1 Certificates or the Class II-M-1 Certificates, as
applicable, an amount equal to (x) the related Subordinate Principal Distribution Amount for
such Class of Certificates for each related Loan Group for such Distribution Date, minus (y)
the amount of any related Class A-P Collection Shortfalls for such Distribution Date or
remaining unpaid for all previous Distribution Dates, to the extent the amounts available
pursuant to clause (x) of Sections 4.02(a)(vii), (ix), (xi), (xiii), (xiv) and (xv) of this
Series Supplement are insufficient therefor, applied in reduction of the Certificate
Principal Balance of the Class I-M-1 Certificates or the Class II-M-1 Certificates, as
applicable;

     (vi) to the Holders of the Class I-M-2 Certificates or the Class II-M-2 Certificates,
as applicable, the Accrued Certificate Interest thereon for such Distribution Date, plus any
Accrued Certificate Interest thereon remaining unpaid from any previous Distribution Date,
except as provided below;

     (vii) to the Holders of the Class I-M-2 Certificates or the Class II-M-2 Certificates,
as applicable, an amount equal to (x) the related Subordinate Principal Distribution Amount
for such Class of Certificates for each related Loan Group for such Distribution Date, minus
(y) the amount of any related Class A-P Collection Shortfalls for such Distribution Date or
remaining unpaid for all previous Distribution Dates, to the extent the amounts available
pursuant to clause (x) of Sections 4.02(a) (ix), (xi), (xiii), (xiv) and (xv) are
insufficient therefor, applied in reduction of the Certificate Principal Balance of the
Class I-M-2 Certificates or the Class II-M-2 Certificates, as applicable;

     (viii) to the Holders of the Class I-M-3 Certificates or the Class II-M-3 Certificates,
as applicable, the Accrued Certificate Interest thereon for such Distribution
Date, plus any Accrued Certificate Interest thereon remaining unpaid from any previous
Distribution Date, except as provided below;

42

 

     (ix) to the Holders of the Class I-M-3 Certificates or the Class II-M-3 Certificates,
as applicable, an amount equal to (x) the related Subordinate Principal Distribution Amount
for such Class of Certificates for each related Loan Group for such Distribution Date minus
(y) the amount of any related Class A-P Collection Shortfalls for such Distribution Date or
remaining unpaid for all previous Distribution Dates, to the extent the amounts available
pursuant to clause (x) of Sections 4.02(a)(xi), (xiii), (xiv) and (xv) are insufficient
therefor, applied in reduction of the Certificate Principal Balance of the Class I-M-3
Certificates or the Class II-M-3 Certificates, as applicable;

     (x) to the Holders of the Class I-B-1 Certificates or the Class II-B-1 Certificates, as
applicable, the Accrued Certificate Interest thereon for such Distribution Date, plus any
Accrued Certificate Interest thereon remaining unpaid from any previous Distribution Date,
except as provided below;

     (xi) to the Holders of the Class I-B-1 Certificates or the Class II-B-1 Certificates,
as applicable, an amount equal to (x) the related Subordinate Principal Distribution Amount
for such Class of Certificates for each related Loan Group for such Distribution Date minus
(y) the amount of any related Class A-P Collection Shortfalls for such Distribution Date or
remaining unpaid for all previous Distribution Dates, to the extent the amounts available
pursuant to clause (x) of Sections 4.02(a)(xiii), (xiv) and (xv) are insufficient therefor,
applied in reduction of the Certificate Principal Balance of the Class I-B-1 Certificates or
the Class II-B-1 Certificates, as applicable;

     (xii) to the Holders of the Class I-B-2 Certificates or the Class II-B-2 Certificates,
as applicable, the Accrued Certificate Interest thereon for such Distribution Date, plus any
Accrued Certificate Interest thereon remaining unpaid from any previous Distribution Date,
except as provided below;

     (xiii) to the Holders of the Class I-B-2 Certificates or the Class II-B-2 Certificates,
as applicable, an amount equal to (x) the related Subordinate Principal Distribution Amount
for such Class of Certificates for each related Loan Group for such Distribution Date minus
(y) the amount of any related Class A-P Collection Shortfalls for such Distribution Date or
remaining unpaid for all previous Distribution Dates, to the extent the amounts available
pursuant to clause (x) of Sections 4.02(a)(xiv) and (xv) are insufficient therefor, applied
in reduction of the Certificate Principal Balance of the Class I-B-2 Certificates or the
Class II-B-2 Certificates, as applicable;

     (xiv) to the Holders of the Class I-B-3 Certificates or the Class II-B-3 Certificates,
as applicable, an amount equal to (x) the Accrued Certificate Interest thereon for such
Distribution Date, plus any Accrued Certificate Interest thereon remaining unpaid from any
previous Distribution Date, except as provided below, minus (y) the amount of any related
Class A-P Collection Shortfalls for such Distribution Date or remaining unpaid for all
previous Distribution Dates, to the extent the amounts available pursuant to clause (x) of
Section 4.02(a)(xv) are insufficient therefor;

     (xv) to the Holders of the Class I-B-3 Certificates or the Class II-B-3 Certificates,
as applicable, an amount equal to (x) the related Subordinate Principal

43

 

Distribution Amount
for such Class of Certificates for each related Loan Group for such Distribution Date minus
(y) the amount of any related Class A-P Collection Shortfalls for such Distribution Date or
remaining unpaid for all previous Distribution Dates applied in reduction of the Certificate
Principal Balance of the Class I-B-3 Certificates or the Class II-B-3 Certificates, as
applicable;

     (xvi) to the Senior Certificates, on a pro rata basis in accordance with their
respective outstanding Certificate Principal Balances, the portion, if any, of the Available
Distribution Amounts for the related Loan Group remaining after the foregoing distributions,
applied to reduce the Certificate Principal Balances of such Senior Certificates, but in no
event more than the aggregate of the outstanding Certificate Principal Balances of each such
Class of Senior Certificates, and thereafter, to each Class of related Subordinate
Certificates then outstanding beginning with such Class with the Highest Priority, any
portion of the related Available Distribution Amounts remaining after the related Senior
Certificates have been retired, applied to reduce the Certificate Principal Balance of each
such Class of related Subordinate Certificates, but in no event more than the outstanding
Certificate Principal Balance of each such Class of Subordinate Certificates; and

     (xvii) to the Class R-III Certificates, the balance, if any, of the Available
Distribution Amounts for all Loan Groups.

     Notwithstanding the foregoing, on any Distribution Date, with respect to the Class of related
Subordinate Certificates outstanding on such Distribution Date with the Lowest Priority, or in the
event the related Subordinate Certificates are no longer outstanding, the related Senior
Certificates, Accrued Certificate Interest thereon remaining unpaid from any previous Distribution
Date will be distributable only to the extent that (1) a shortfall in the amounts available to pay
Accrued Certificate Interest on any Class of Certificates results from an interest rate reduction
in connection with a Servicing Modification, or (2) such unpaid Accrued Certificate Interest was
attributable to interest shortfalls relating to the failure of the Master Servicer to make any
required Advance, or the determination by the Master Servicer that any proposed Advance would be a
Nonrecoverable Advance with respect to the related Mortgage Loan where such Mortgage Loan has not
yet been the subject of a Cash Liquidation or REO Disposition or the related Liquidation Proceeds,
Insurance Proceeds and REO Proceeds have not yet been distributed to the Certificateholders.

     (b) For the Group I Senior Certificates, prior to the occurrence of the Credit Support
Depletion Date:

     (i) the Class A-P Principal Distribution Amount for Loan Group I shall be distributed to
the Class I-A-P Certificates until the Certificate Principal Balance thereof has been reduced to
zero;

     (ii) an amount equal to the Class I-A-13 Accrual Distribution Amount shall be distributed
to the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates in the following
manner:

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     (A) if the principal balance of the Mortgage Loans in Loan Group I for that
Distribution Date is less than or equal to the Jump Scheduled Balance for that
Distribution Date, then such amount shall be distributed in the following order an
priority:

     (a) first, to the Class I-A-12 Certificates until the Certificate Principal
Balance thereof has been reduced to zero; and

     (b) second, to the Class I-A-10, Class I-A-14, Class I-A-17 Certificates,
on a pro rata basis in accordance with their respective Certificate Principal
Balances, until the Certificate Principal Balances thereof have been reduced to
zero;

     (B) if the principal balance of the Mortgage Loans in Loan Group I for that
Distribution Date is greater than the Jump Scheduled Balance for that Distribution Date,
then such amount shall be distributed in the following order an priority:

     (a) first, to the Class I-A-10, Class I-A-14, Class I-A-17 Certificates, on
a pro rata basis in accordance with their respective Certificate Principal
Balances, until the Certificate Principal Balances thereof have been reduced to
zero; and

     (b) second, to the Class I-A-12 Certificates until the Certificate
Principal Balance thereof has been reduced to zero;

     (iii) an amount equal to the Class I-A-12 Accrual Distribution Amount shall be distributed
to the Class I-A-10, Class I-A-14 and Class I-A-17 Certificates in the following manner and
priority;

     (A) if the principal balance of the Mortgage Loans in Loan Group I for that
Distribution Date, after giving effect to the application of the Class I-A-13 Accrual
Distribution Amount, is less than or equal to the Jump Scheduled Balance for that
Distribution Date, then such amount shall be distributed in the following order and
priority:

     (a) first, to the Class I-A-12 Certificates until the Certificate Principal
Balance thereof has been reduced to zero; and

     (b) second, to the Class I-A-10, Class I-A-14, Class I-A-17 Certificates,
on a pro rata basis in accordance with their respective Certificate Principal
Balances, until the Certificate Principal Balances thereof have been reduced to
zero;

     (B) if the principal balance of the Mortgage Loans in Loan Group I for that
Distribution Date, after giving effect to the application of the Class I-A-13 Accrual
Distribution Amount, is greater than the Jump Scheduled Balance for that Distribution
Date, then such amount shall be distributed in the following order and priority:

45

 

     (a) first, to the Class I-A-10, Class I-A-14, Class I-A-17 Certificates, on
a pro rata basis in accordance with their respective Certificate Principal
Balances, until the Certificate Principal Balances thereof have been reduced to
zero; and

     (b) second, to the Class I-A-12 Certificates until the Certificate
Principal Balance thereof has been reduced to zero;

     (iv) the Senior Principal Distribution Amount for Loan Group I shall be distributed in the
following manner and priority:

     (A) first, to the Class R-I Certificates, until the Certificate Principal Balance
thereof has been reduced to zero

     (B) second, the balance of the Senior Principal Distribution Amount remaining after
the distributions, if any, described in clauses (b)(iv)(A) above shall be distributed
concurrently as follows:

     (a) [___]% of such amount shall be distributed as follows:

     (1) [___]% of such amount shall be distributed in the following
manner and priority:

     a. first, to the Class I-A-10, Class I-A-14, Class
I-A-17, Class I-A-12 and Class I-A-13 Certificates an amount
up to $1[___] after giving effect to the application of the
Class I-A-12 Accrual Distribution Amount and Class I-A-13
Accrual Distribution Amount, in the following manner and
priority:

     1) if the principal balance of the Mortgage Loans
in Loan Group I for that Distribution Date is less
than or equal to the Jump Scheduled Balance for that
Distribution Date, then such amount shall be
distributed in the following order and priority:

     a) first, to the Class I-A-12
Certificates until the Certificate
Principal Balance thereof has been reduced
to zero; and

     b) second, to the Class I-A-10, Class
I-A-14, Class I-A-17 Certificates, on a pro
rata basis in accordance with their
respective Certificate Principal Balances,
until the

46

 

Certificate Principal Balances
thereof have been reduced to zero;

     2) if the principal balance of the Mortgage Loans
in Loan Group I for that Distribution Date is greater
than the Jump Scheduled Balance for that Distribution
Date, then such amount shall be distributed in the
following order and priority:

     a) first, to the Class I-A-10, Class
I-A-14, Class I-A-17 Certificates, on a pro
rata basis in accordance with their
respective Certificate Principal Balances,
until the Certificate Principal Balances
thereof have been reduced to zero; and

     b) second, to the Class I-A-12
Certificates until the Certificate
Principal Balance thereof has been reduced
to zero;

     3) to the Class I-A-13 Certificates until the
Certificate Principal Balance thereof has been reduced
to zero; and

     b. second, to the Class I-A-9 Certificates, an amount up
to $[___] until the Certificate Principal Balance thereof has
been reduced to zero;

     c. third, to the Class I-A-10, Class I-A-14, Class
I-A-17, Class I-A-12 Certificates in the following manner and
priority:

     1) if the principal balance of the Mortgage Loans
in Loan Group I for that Distribution Date is less
than or equal to the Jump Scheduled Balance for that
Distribution Date, then such amount shall be
distributed in the following order and priority:

     a) first, to the Class I-A-12
Certificates until the Certificate
Principal
Balance thereof has been reduced to
zero; and

     b) second, to the Class I-A-10, Class
I-A-14, Class I-A-17

47

 

Certificates, on a pro
rata basis in accordance with their
respective Certificate Principal Balances,
until the Certificate Principal Balances
thereof have been reduced to zero;

     2) if the principal balance of the Mortgage Loans
in Loan Group I for that Distribution Date is greater
than the Jump Scheduled Balance for that Distribution
Date, then such amount shall be distributed in the
following order and priority:

     a) first, to the Class I-A-10, Class
I-A-14, Class I-A-17 Certificates, on a pro
rata basis in accordance with their
respective Certificate Principal Balances,
until the Certificate Principal Balances
thereof have been reduced to zero; and

     b) second, to the Class I-A-12
Certificates until the Certificate
Principal Balance thereof has been reduced
to zero;

     d. fourth, to the Class I-A-13 Certificates until the
Certificate Principal Balance thereof has been reduced to
zero; and

     e. fifth, to the Class I-A-9 Certificates until the
Certificate Principal Balance thereof has been reduced to
zero; and

     (2) [___]% of such amount shall be distributed in the following
manner and priority:

     a. first, to the Lockout Certificates, until the
Certificate Principal Balance of the Lockout Certificates has
been reduced to zero, an amount equal to the Lockout
Percentage of the Lockout Certificates’ pro rata share (based
on the aggregate Certificate Principal Balance thereof
relative to the aggregate Certificate Principal Balance of all
classes of Certificates in the Certificate Group relating to
Loan Group I (other than the Class I-A-P Certificates))
of the aggregate of the collections described in clauses (A),
(B), (C), (D) and (E) (net of amounts set forth in clause (F))
of Section 4.02(a)(ii)(Y) with respect to Loan Group I,

48

 

without application of the Senior Percentage or the Senior
Accelerated Distribution Percentage with respect to Loan Group
I; provided, however, that if the aggregate of the amounts set
forth in clauses (A), (B), (C), (D) and (E) (net of amounts
set forth in clause (F)) of Section 4.02(a)(ii)(Y) with
respect to Loan Group I is more than the balance of the
Available Distribution Amount remaining after the Senior
Interest Distribution Amount and the Class A-P Principal
Distribution Amount with respect to Loan Group I have been
distributed, the amount paid to the Lockout Certificates
pursuant to this Section 4.02(b)(iv)(B)(a)(2)a. shall be
reduced by an amount equal to the Lockout Certificates’ pro
rata share (based on the Certificate Principal Balance of the
Lockout Certificates relative to the aggregate Certificate
Principal Balance of the Certificates in the Certificate Group
related to Loan Group I(other than the Class I-A-P
Certificates)) of such difference;

     b. second, any remaining amount to the Class I-A-1
Certificates, until the Certificate Principal Balances thereof
have been reduced to the Planned Principal Balance for that
Distribution Date;

     c. third, any remaining amount to the Class I-A-2
Certificates, until the Certificate Principal Balance thereof
has been reduced to the Targeted Principal Balance for that
Distribution Date;

     d. fourth, to the Class I-A-5 Certificates and Class
I-A-6 Certificates, on a pro rata basis in accordance with
their respective Certificate Principal Balances, until the
Certificate Principal Balances thereof have been reduced to
zero

     e. fifth, any remaining amount to the to the Class I-A-2
Certificates, without regard to the Targeted Principal Balance
for that Distribution Date, until the Certificate Principal
Balance thereof has been reduced to zero;

     f. sixth, any remaining amount to the Class I-A-1
Certificates without regard to the Planned Principal
Balance for that Distribution Date until the Certificate
Principal Balance thereof has been reduced to zero;

     g. seventh, any remaining amount any remaining amount to
the Lockout Certificates, until the

49

 

Certificate Principal
Balance thereof has been reduced to zero; and

     (b) [___]% of such amount shall be distributed to the Class I-A-8
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero.

          (c) For the Group II Senior Certificates and Class II-A-P Certificates prior to the occurrence
of the Credit Support Depletion Date,

          (i) the Class A-P Principal Distribution Amount for Loan Group II shall be distributed to
the Class II-A-P Certificates, until the Certificate Principal Balance of that class has been
reduced to zero; and

          (ii) an amount equal to the Senior Principal Distribution Amount for Loan Group II shall be
distributed as follows:

          (A) first, to the Class R-II Certificates and Class R-III Certificates, on a pro
rata basis in accordance with their respective Certificate Principal Balances, until the
Certificate Principal Balances of those classes have been reduced to zero; and

          (B) second, to the Class II-A-1 and Class II-A-2 Certificates on a pro rata basis,
in accordance with their respective Certificate Principal Balances, until the
Certificate Principal Balances thereof have been reduced to zero.

          (d) For the Group III Senior Certificates and Class II-A-P Certificates prior to the
occurrence of the Credit Support Depletion Date:

          (i) the Class A-P Principal Distribution Amount for Loan Group III shall be distributed to
the Class II-A-P Certificates, until the Certificate Principal Balance of that class has been
reduced to zero; and

          (ii) an amount equal to the Senior Principal Distribution Amount for Loan Group III shall
be distributed to the Class III-A-1 Certificates, until the Certificate Principal Balance
thereof has been reduced to zero.

               (e) Notwithstanding Section 4.02, Section 4.02(c) and Section 4.02(d), on or after the related
Credit Support Depletion Date for Loan Group I or Loan Group II and Loan Group III on a combined
basis, the Senior Principal Distribution Amount for the related Loan Group or Loan Groups will be
distributed to the remaining Senior Certificates in the related Certificate Group (other than the
related Class A-P Certificates and the related Class A-V Certificates) pro rata in accordance with
their respective outstanding Certificate Principal Balances.

               (f) After the reduction of the Certificate Principal Balances of all Classes of Senior
Certificates of a Certificate Group (other than the related Class A-P Certificates) to zero but
prior to the related Credit Support Depletion Date, such Senior Certificates (other than the
related Class A-P Certificates) will be entitled to no further distributions of principal thereon
and

50

 

the applicable Available Distribution Amount will be distributed solely to the holders of the
related Class A-P Certificates, the related Class A-V Certificates and the related Subordinate
Certificates, in each case as described herein or as otherwise provided in Section 4.02(m).

          (g) In addition to the foregoing distributions, with respect to any Subsequent Recoveries, the
Master Servicer shall deposit such funds into the Custodial Account pursuant to Section
3.07(b)(iii). If, after taking into account such Subsequent Recoveries, the amount of a Realized
Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the
Certificate Principal Balance of the Class of related Subordinate Certificates with a Certificate
Principal Balance greater than zero with the highest payment priority to which Realized Losses have
been allocated, but not by more than the amount of Realized Losses previously allocated to that
Class of Certificates pursuant to Section 4.05. The amount of any remaining Subsequent Recoveries
will be applied to increase from zero the Certificate Principal Balance of the Class of related
Certificates with the next lower payment priority, up to the amount of Realized Losses previously
allocated to that Class of Certificates pursuant to Section 4.05. Any remaining Subsequent
Recoveries will in turn be applied to increase from zero the Certificate Principal Balance of the
Class of related Certificates with the next lower payment priority up to the amount of Realized
Losses previously allocated to that Class of Certificates pursuant to Section 4.05, and so on.
Holders of such Certificates will not be entitled to any payment in respect of Accrued Certificate
Interest on the amount of such increases for any Interest Accrual Period preceding the Interest
Accrual Period that relates to the Distribution Date on which such increase occurs. Any such
increases shall be applied to the Certificate Principal Balance of each Certificate of such Class
in accordance with its respective Percentage Interest.

          (h) On each Distribution Date, the related Yield Maintenance Payment will be distributed to
the Class I-A-2, Class I-A-10, Class I-A-14 and Class I-A-17 Certificates, as applicable, as part
of the Accrued Certificate Interest thereon.

          (i) Each distribution with respect to a Book-Entry Certificate shall be paid to the
Depository, as Holder thereof, and the Depository shall be solely responsible for crediting the
amount of such distribution to the accounts of its Depository Participants in accordance with its
normal procedures. Each Depository Participant shall be responsible for disbursing such
distribution to the Certificate Owners that it represents and to each indirect participating
brokerage firm (a “brokerage firm”) for which it acts as agent. Each brokerage firm shall be
responsible for disbursing funds to the Certificate Owners that it represents. None of the
Trustee, the Certificate Registrar, the Company or the Master Servicer shall have any
responsibility therefor.

          (j) Except as otherwise provided in Section 9.01 of the Standard Terms, if the Master Servicer
anticipates that a final distribution with respect to any Class of Certificates will be made on a
future Distribution Date, the Master Servicer shall, no later than 40 days prior to such final
Distribution Date, notify the Trustee and the Trustee shall, not earlier than the 15th day and not
later than the 25th day of the month next preceding the month of such final
distribution, distribute, or cause to be distributed, to each Holder of such Class of
Certificates a notice to the effect that: (i) the Trustee anticipates that the final distribution
with respect to such Class of Certificates will be made on such Distribution Date but only upon
presentation and surrender of such Certificates at the office of the Trustee or as otherwise
specified therein, and

51

 

(ii) no interest shall accrue on such Certificates from and after the end of
the related Interest Accrual Period. In the event that Certificateholders required to surrender
their Certificates pursuant to Section 9.01(c) do not surrender their Certificates for final
cancellation, the Trustee shall cause funds distributable with respect to such Certificates to be
withdrawn from the Certificate Account and credited to a separate escrow account for the benefit of
such Certificateholders as provided in Section 9.01(d).

          (k) On each Distribution Date preceding the Class I-A-12 Accretion Termination Date, the
Accrued Certificate Interest that would otherwise be distributed to the Class I-A-12 Certificates
will be added to the Certificate Principal Balance of the Class I-A-12 Certificates and will be
distributed to the holders of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17
Certificates as distributions of principal pursuant to Section 4.02(b)(iii) in reduction of the
Certificate Principal Balances of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17
Certificates. Any distributions of the Class I-A-12 Accrual Distribution Amount to the Class
I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates will reduce the Certificate
Principal Balance of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates by
such amount. The amount that is added to the Certificate Principal Balance of the Class I-A-12
Certificates will accrue interest at a rate of 5.50% per annum. On each Distribution Date on or
after the Accretion Termination Date, the entire Accrued Certificate Interest on the Class I-A-12
Certificates for such date will be payable to the holders of the Class I-A-12 Certificates, as
interest, to the extent not required to be paid to the Class I-A-10, Class I-A-12, Class I-A-14 and
Class I-A-17 Certificates in order to fully reduce the aggregate Certificate Principal Balance of
the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates to zero on the Class
I-A-12 Accretion Termination Date; provided, however, that if the Accretion Termination Date is the
Credit Support Depletion Date, the entire Class I-A-12 Accrual Distribution Amount for such date
will be payable as interest to the holders of the Class I-A-12 Certificates.

          (l) On each Distribution Date preceding the Class I-A-13 Accretion Termination Date, the
Accrued Certificate Interest that would otherwise be distributed to the Class I-A-13 Certificates
will be added to the Certificate Principal Balance of the Class I-A-13 Certificates and will be
distributed to the holders of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17
Certificates as distributions of principal pursuant to Section 4.02(b)(iii) in reduction of the
Certificate Principal Balances of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17
Certificates. Any distributions of the Class I-A-13 Accrual Distribution Amount to the Class
I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates will reduce the Certificate
Principal Balance of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17 Certificates by
such amount. The amount that is added to the Certificate Principal Balance of the Class I-A-13
Certificates will accrue interest at a rate of 5.50% per annum. On each Distribution Date on or
after the Accretion Termination Date, the entire Accrued Certificate Interest on the Class I-A-13
Certificates for such date will be payable to the holders of the Class I-A-13 Certificates, as
interest, to the extent not required to be paid to the Class I-A-10, Class I-A-12, Class I-A-14 and
Class I-A-17 Certificates in order to fully reduce the aggregate
Certificate Principal Balance of the Class I-A-10, Class I-A-12, Class I-A-14 and Class I-A-17
Certificates to zero on the Class I-A-13 Accretion Termination Date; provided, however, that if the
Accretion Termination Date is the Credit Support Depletion Date, the entire Class I-A-13

52

 

Accrual Distribution Amount for such date will be payable as interest to the holders of the Class I-A-13
Certificates.

          (m) On any Distribution Date prior to the occurrence of the Credit Support Depletion Date for
Loan Group II and Loan Group III that occurs after the reduction of the aggregate Certificate
Principal Balance of the Group II Senior Certificates or Group III Senior Certificates to zero, the
outstanding Certificates relating to the other of Group II Senior Certificates or Group III Senior
Certificates, as applicable, will be entitled to receive 100% of the mortgagor prepayments on the
Mortgage Loans in the Loan Group related to the Certificate Group that has been reduced to zero.
Such amounts allocated to a Certificate Group shall be treated as part of the related Available
Distribution Amount and distributed as part of the related Senior Principal Distribution Amount in
accordance with the priorities set forth in Section 4.02(c) or 4.02(b) above, as applicable, in
reduction of such Certificate Principal Balances. Notwithstanding the foregoing, the remaining
Certificates in a Certificate Group will not be entitled to receive mortgagor prepayments on the
Mortgage Loans in the Loan Group related to the Certificate Group that has been reduced to zero if
the following two conditions are satisfied: (1) the weighted average of the Subordinate
Percentages for both Loan Group II and Loan Group III for such Distribution Date, weighted on the
basis of the Stated Principal Balances of the Mortgage Loans in the related Loan Group, is at least
two times the weighted average of the initial Subordinate Percentages for both such Loan Groups,
calculated on that basis and (2) the outstanding principal balance of the Mortgage Loans in both
such Loan Groups delinquent 60 days or more averaged over the last six months, as a percentage of
the aggregate outstanding Certificate Principal Balance of the Class II-M Certificates and Class
II-B Certificates, is less than 50%.

          (n) For any Undercollateralized Certificate Group relating to Loan Group II or Loan Group III
on any Distribution Date prior to the related Credit Support Depletion Date (i) 100% of the
mortgagor prepayments allocable to the Class II-M Certificates and Class II-B Certificates on the
Mortgage Loans in the non-related Loan Group II or Loan Group II, as applicable, will be
distributed to such Undercollateralized Certificate Group in accordance with the priorities set
forth in Section 4.02(c) or 4.02(b) above, as applicable, for the related Senior Principal
Distribution Amount, in reduction of the Certificate Principal Balance of such Undercollateralized
Certificate Group, until such Certificate Principal Balance equals the aggregate Stated Principal
Balance of the Mortgage Loans in the related Loan Group and (ii) an amount equal to one month’s
interest at a rate of 5.50% per annum on the related Undercollateralized Amount will be distributed
from that portion of the Available Distribution Amount for the non-related Loan Group that would be
otherwise allocable to the Class II-M Certificates and Class II-B Certificates, in the following
priority: first to pay any unpaid interest on such Undercollateralized Certificate Group, pro rata,
and then to pay principal thereon in the manner described in clause (i) above.

53

 

          Section 4.03 Statements to Certificateholders; Statements to the Rating Agencies;
Exchange Act Reporting. (See Section 4.03 of the Standard Terms)

          Section 4.04 Distribution of Reports to the Trustee and the Company; P&I Advances by the
Master Servicer. (See Section 4.04 of the Standard Terms)

          Section 4.05 Allocation of Realized Losses.

     Prior to each Distribution Date, the Master Servicer shall determine the total amount of
Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modification, Debt
Service Reduction, Deficient Valuation or REO Disposition that occurred during the related
Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the
interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the
Monthly Payment due during the related Due Period. The amount of each Realized Loss shall be
evidenced by an Officers’ Certificate. All Realized Losses on Mortgage Loans in a Loan Group,
shall be allocated to the Certificates in the related Certificate Group as follows: first, to the
Class I-B-3 Certificates or the Class II-B-3 Certificates, as applicable, until the Certificate
Principal Balance thereof has been reduced to zero; second, to the Class I-B-2 Certificates or the
Class II-B-2 Certificates, as applicable, until the Certificate Principal Balance thereof has been
reduced to zero; third, to the Class I-B-1 Certificates or the Class II-B-1 Certificates, as
applicable, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to
the Class I-M-3 Certificates or the Class II-M-3 Certificates, as applicable, until the Certificate
Principal Balance thereof has been reduced to zero; fifth, to the Class I-M-2 Certificates or the
Class II-M-2 Certificates, as applicable, until the Certificate Principal Balance thereof has been
reduced to zero; sixth, to the Class I-M-1 Certificates or the Class II-M-1 Certificates, as
applicable, until the Certificate Principal Balance thereof has been reduced to zero; and,
thereafter, if any such Realized Loss is on a Discount Mortgage Loan, to the related Class A-P
Certificates in an amount equal to the related Discount Fraction of the principal portion of the
Realized Loss until the Certificate Principal Balance of such Class A-P Certificates has been
reduced to zero, and the remainder of such Realized Losses on the Discount Mortgage Loans in the
related Loan Group and the entire amount of such Realized Losses on Non-Discount Mortgage Loans in
the related Loan Group will be allocated among (i) the Group I Senior (other than the Class I-A-P
Certificates) and, in the case of the interest portion of such Realized Loss, the Class I-A-V
Certificates (in the case of a Group I Loan) on a pro rata basis, (ii) Group II Senior Certificates
and, in the case of the interest portion of such Realized Loss, Class II-A-V on a pro rata basis or
(iii) to the Group III Senior Certificates and, in the case of the interest portion of such
Realized Loss, the Class II-A-V Certificates (in the case of a Group III Loan) on a pro rata basis,
as described below; provided, however, that such Realized Losses otherwise allocable to the Super
Senior Certificates will be allocated to the Senior Support Certificates until the Certificate
Principal Balance of the Senior Support Certificates has been reduced to zero.

     As used herein, an allocation of a Realized Loss on a “pro rata basis” among two or more
specified Classes of Certificates means an allocation on a pro rata basis, among the various
Classes so specified, to each such Class of Certificates on the basis of their then outstanding
Certificate Principal Balances prior to giving effect to distributions to be made on such
Distribution Date in the case of the principal portion of a Realized Loss or based on the Accrued
Certificate Interest thereon payable from the related Loan Group in respect of such Distribution

54

 

Date (without regard to any Compensating Interest allocated to the Available Distribution
Amount of such Loan Group for such Distribution Date) in the case of an interest portion of a
Realized Loss. Except as provided in the following sentence, any allocation of the principal
portion of Realized Losses (other than Debt Service Reductions) to a Class of Certificates shall be
made by reducing the Certificate Principal Balance thereof by the amount so allocated, which
allocation shall be deemed to have occurred on such Distribution Date; provided that no such
reduction shall reduce the aggregate Certificate Principal Balance of the Certificates in the
Certificate Group related to Loan Group I or Loan Group II and Loan Group III in the aggregate, as
applicable, below the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan
Group or Loan Groups. Any allocation of the principal portion of Realized Losses (other than Debt
Service Reductions) to the related Subordinate Certificates then outstanding with the Lowest
Priority shall be made by operation of the definition of “Certificate Principal Balance” and by
operation of the provisions of Section 4.02(a). Allocations of the interest portions of Realized
Losses (other than any interest rate reduction resulting from a Servicing Modification) shall be
made in proportion to the amount of Accrued Certificate Interest and by operation of the definition
of “Accrued Certificate Interest” and by operation of the provisions of Section 4.02(a).
Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in
connection with a Servicing Modification shall be made by operation of the provisions of Section
4.02(a). Allocations of the principal portion of Debt Service Reductions shall be made by
operation of the provisions of Section 4.02(a). All Realized Losses and all other losses allocated
to a Class of Certificates hereunder will be allocated among the Certificates of such Class in
proportion to the Percentage Interests evidenced thereby; provided that if any Subclasses of the
Class A-V Certificates have been issued pursuant to Section 5.01(c), such Realized Losses and other
losses allocated to the Class A-V Certificates shall be allocated among such Subclasses in
proportion to the respective amounts of Accrued Certificate Interest payable on such Distribution
Date that would have resulted absent such reductions.

          Section 4.06 Reports of Foreclosures and Abandonment of Mortgaged Property. (See Section
4.06 of the Standard Terms)

          Section 4.07 Optional Purchase of Defaulted Mortgage Loans. (See Section 4.07 of the
Standard Terms)

          Section 4.08 Surety Bond. (See Section 4.08 of the Standard Terms)

          Section 4.09 Reserve Fund

     (a) On or before the Closing Date, the Trustee shall establish a Reserve Fund on behalf of the
Holders of the Class I-A-2, Class I-A-10, Class I-A-14 and Class I-A-17 Certificates. The Reserve
Fund must be an Eligible Account. The Reserve Fund shall be entitled “Reserve Fund, [__________] as
Trustee for the benefit of holders of Phoenix Residential Securities, LLC, Mortgage-Backed
Pass-Through Certificates, Series 201[_]-[___]”. The Trustee shall demand payment of all money
payable by each Yield Maintenance Agreement Provider under the related Yield Maintenance Agreement.
The Trustee shall deposit in the Reserve Fund all payments received by it from each Yield
Maintenance Agreement Provider pursuant to the related Yield Maintenance Agreement. On each
Distribution Date, the Trustee shall remit amounts received by it from each Yield Maintenance
Agreement Provider to the Holders of the

55

 

Class I-A-2, Class I-A-10, Class I-A-14 and Class I-A-17, as applicable, in the manner
provided in Section 4.02(h) as it is directed by the Master Servicer.

     (b) The Reserve Fund is an “outside reserve fund” within the meaning of Treasury Regulation
§1.860G-2(h) and shall be an asset of the Trust Fund but not an asset of any 201[_]-[___] REMIC.
The Trustee on behalf of the Trust shall be the nominal owner of the Reserve Fund. Deutsche Bank
Securities Inc. shall be the beneficial owner of the Reserve Fund, subject to the power of the
Trustee to distribute amounts under Section 4.02(h). Amounts in the Reserve Fund shall be held
uninvested in a trust account of the Trustee with no liability for interest or other compensation
thereon.

56

 

ARTICLE V

THE CERTIFICATES

(See Article V of the Standard Terms)

57

 

ARTICLE VI

THE COMPANY AND THE MASTER SERVICER

(See Article VI of the Standard Terms)

58

 

ARTICLE VII

DEFAULT

(See Article VII of the Standard Terms)

59

 

ARTICLE VIII

CONCERNING THE TRUSTEE

(See Article VIII of the Standard Terms)

60

 

ARTICLE IX

TERMINATION OR OPTIONAL PURCHASE OF ALL CERTIFICATES

          Section 9.01 Optional Purchase by the Master Servicer of All Certificates; Termination
Upon Purchase by the Master Servicer or Liquidation of All Mortgage Loans.

     (a) Subject to Section 9.02, the respective obligations and responsibilities of the Depositor,
the Master Servicer and the Trustee created hereby in respect of the Certificates (other than the
obligation of the Trustee to make certain payments after the Final Distribution Date to
Certificateholders and the obligation of the Depositor to send certain notices as hereinafter set
forth) shall terminate upon the last action required to be taken by the Trustee on the Final
Distribution Date pursuant to this Article IX following the earlier of:

     (i) the later of the final payment or other liquidation (or any Advance with respect
thereto) of the last Mortgage Loan remaining in the Trust Find or the disposition of all
property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan, or

     (ii) the purchase by the Master Servicer of all Group I Loans and all property acquired
in respect of any Group I Loan remaining in the Trust Fund and the purchase by the Master
Servicer of all Group II Loans and Group III Loans and all property acquired in respect of
any Group II Loan and Group III Loan remaining in the Trust Fund, in each case, at a price
equal to 100% of the unpaid principal balance of each such Mortgage Loan (or, if less than
such unpaid principal balance, the fair market value of the related underlying property of
such Mortgage Loan with respect to Mortgage Loans as to which title has been acquired if
such fair market value is less than such unpaid principal balance) (net of any unreimbursed
Advances attributable to principal) on the day of repurchase, plus accrued interest thereon
at the Net Mortgage Rate (or Modified Net Mortgage Rate in the case of any Modified Mortgage
Loan), to, but not including, the first day of the month in which such repurchase price is
distributed; provided, however, that in no event shall the trust created hereby continue
beyond the expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late ambassador of the United States to the Court of St. James,
living on the date hereof; and provided further, that the purchase price set forth above
shall be increased as is necessary, as determined by the Master Servicer, to avoid
disqualification of any portion of any REMIC formed under this Series Supplement as a REMIC.
The purchase price paid by the Master Servicer shall also include any amounts owed by
[___________] pursuant to the last paragraph of Section 4 of the Assignment Agreement in
respect of any liability, penalty or expense that resulted from a breach of the compliance
with laws representation pursuant to Section 4(k) of the Assignment Agreement, that remain
unpaid on the date of such purchase.

     The right of the Master Servicer to purchase all the assets of the Trust Fund relating to the
Group I Loans, pursuant to clause (ii) above is conditioned upon the Aggregate Stated Principal
Balance of the Group I Loans as of the Final Distribution Date, prior to giving effect to
distributions to be made on such Distribution Date, being less than ten percent of the Cut-off

61

 

Date Principal Balance of Group I Loans. The right of the Master Servicer to purchase all the
assets of the Trust Fund relating to the Group II Loans and the Group III Loans, pursuant to clause
(ii) above is conditioned upon the Aggregate Stated Principal Balance of the Group II Loans and
Group III Loans as of the Final Distribution Date, prior to giving effect to distributions to be
made on such Distribution Date, being less than ten percent of the Cut-off Date Principal Balance
of the Group II Loans and Group III Loans. If such right is exercised by the Master Servicer, the
Master Servicer shall be deemed to have been reimbursed for the full amount of any unreimbursed
Advances theretofore made by it with respect to the Mortgage Loans being purchased. In addition,
the Master Servicer shall provide to the Trustee the certification required by Section 3.15 and the
Trustee and any Custodian shall, promptly following payment of the purchase price, release to the
Master Servicer the Custodial Files pertaining to the Mortgage Loans being purchased.

     In addition to the foregoing, on any Distribution Date on which the Aggregate Stated Principal
Balance of the Group I Loans, prior to giving effect to distributions to be made on such
Distribution Date, is less than ten percent of the Cut-off Date Principal Balance of the Group I
Loans, the Master Servicer shall have the right, at its option, to purchase the Certificates
related to Loan Group I, in whole, but not in part, at a price equal to the sum of the outstanding
Certificate Principal Balance of such Certificates plus the sum of one month’s Accrued Certificate
Interest thereon, or, with respect to the Class I-A-V Certificates, on their Notional Amount, any
previously unpaid Accrued Certificate Interest. On any Distribution Date on which the Aggregate
Stated Principal Balance of the Group II Loans and Group III Loans, prior to giving effect to
distributions to be made on such Distribution Date, is less than ten percent of the Cut-off Date
Principal Balance of the Group II Loans and Group III Loans, the Master Servicer shall have the
right, at its option, to purchase the Certificates related to Loan Group II and Loan Group III, in
whole, but not in part, at a price equal to the sum of the outstanding Certificate Principal
Balance of such Certificates plus the sum of one month’s Accrued Certificate Interest thereon, or,
with respect to the Class II-A-V Certificates, on their Notional Amount, any previously unpaid
Accrued Certificate Interest. If the Master Servicer exercises this right to purchase the
outstanding Certificates, the Master Servicer will promptly terminate the respective obligations
and responsibilities created hereby in respect of these Certificates pursuant to this Article IX.

     (b) The Master Servicer shall give the Trustee not less than 40 days’ prior notice of the
Distribution Date on which the Master Servicer anticipates that the final distribution will be made
to Certificateholders (whether as a result of the exercise by the Master Servicer of its right to
purchase the assets of the Trust Fund or otherwise). Notice of any termination, specifying the
anticipated Final Distribution Date (which shall be a date that would otherwise be a Distribution
Date) upon which the Certificateholders may surrender their Certificates to the Trustee for payment
of the final distribution and cancellation, shall be given promptly by the Master Servicer (if it
is exercising its right to purchase the assets of the Trust Fund), or by the Trustee (in any other
case) by letter to Certificateholders mailed not earlier than the 15th day and not later than the
25th day of the month next preceding the month of such final distribution specifying:

62

 

     (i) the anticipated Final Distribution Date upon which final payment of the
Certificates is anticipated to be made upon presentation and surrender of Certificates at
the office or agency of the Trustee therein designated,

     (ii) the amount of any such final payment, if know, and

     (iii) that the Record Date otherwise applicable to such Distribution Date is not
applicable, and that payment will be made only upon presentation and surrender of the
Certificates at the office or agency of the Trustee therein specified.

     If the Master Servicer is obligated to give notice to Certificateholders as aforesaid, it
shall give such notice to the Certificate Registrar at the time such notice is given to
Certificateholders. In the event such notice is given by the Master Servicer, the Master Servicer
shall deposit in the Certificate Account before the Final Distribution Date in immediately
available funds an amount equal to the purchase price for the assets of the Trust Fund computed as
above provided. The Master Servicer shall provide to the Trustee written notification of any
change to the anticipated Final Distribution Date as soon as practicable. If the Trust Fund is not
terminated on the anticipated Final Distribution Date, for any reason, the Trustee shall promptly
mail notice thereof to each affected Certificateholder.

     (c) Upon presentation and surrender of the Certificates by the Certificateholders, the Trustee
shall distribute to the Certificateholders (i) the amount otherwise distributable on such
Distribution Date, if not in connection with the Master Servicer’s election to repurchase, or (ii)
if the Master Servicer elected to so repurchase, an amount equal to the outstanding Certificate
Principal Balance of the Certificates, plus Accrued Certificate Interest thereon for the related
Interest Accrual Period and any previously unpaid Accrued Certificate Interest.

     (d) In the event that any Certificateholders shall not surrender their Certificates for final
payment and cancellation on or before the Final Distribution Date, the Trustee shall on such date
cause all funds in the Certificate Account not distributed in final distribution to
Certificateholders to be withdrawn therefrom and credited to the remaining Certificateholders by
depositing such funds in a separate escrow account for the benefit of such Certificateholders, and
the Master Servicer (if it exercised its right to purchase the assets of the Trust Fund), or the
Trustee (in any other case) shall give a second written notice to the remaining Certificateholders
to surrender their Certificates for cancellation and receive the final distribution with respect
thereto. If within six months after the second notice any Certificate shall not have been
surrendered for cancellation, the Trustee shall take appropriate steps as directed by the Master
Servicer to contact the remaining Certificateholders concerning surrender of their Certificates.
The costs and expenses of maintaining the escrow account and of contacting Certificateholders shall
be paid out of the assets which remain in the escrow account. If within nine months after the
second notice any Certificates shall not have been surrendered for cancellation, the Trustee shall
pay to the Master Servicer all amounts distributable to the holders thereof and the Master Servicer
shall thereafter hold such amounts until distributed to such holders. No interest shall accrue or
be payable to any Certificateholder on any amount held in the escrow account or by the Master
Servicer as a result of such Certificateholder’s failure to surrender its Certificate(s) for final
payment thereof in accordance with this Section 9.01 and the Certificateholders shall look only to
the Master Servicer for such payment.

63

 

     (e) Upon termination of the Trust Fund pursuant to this Section 9.01, the Trustee on behalf of
the Trust Fund shall, under documents prepared by the Master Servicer or Holders of the Class
I-A-2, Class I-A-10, Class I-A-14 and Class I-A-17 Certificates, assign without recourse,
representation or warranty all the right, title and interest of the Trustee and the Trust Fund in
and to each Yield Maintenance Agreement to Deutsche Bank Securities Inc.

          Section 9.02 Additional Termination Requirements. (See Section 9.02 of the Standard
Terms).

          Section 9.03 Termination of Multiple REMICs. (See Section 9.03 of the Standard
Terms).

64

 

ARTICLE X

REMIC PROVISIONS

          Section 10.01 REMIC Administration. (See Section 10.01 of the Standard Terms)

          Section 10.02 Master Servicer; REMIC Administrator and Trustee Indemnification. (See
Section 10.02 of the Standard Terms)

          Section 10.03 Designation of REMICs.

     The REMIC Administrator shall make an election to treat the entire segregated pool of assets
described in the definition of REMIC I, and subject to this Agreement (including the Group I Loans)
as a REMIC (“REMIC I”) for federal income tax purposes. The REMIC Administrator shall make an
election to treat the entire segregated pool of assets described in the definition of REMIC II, and
subject to this Agreement (including the Group II Loans and the Group III Loans) as a REMIC (“REMIC
II”) for federal income tax purposes. The REMIC Administrator shall make an election to treat the
entire segregated pool of assets comprised of the Uncertificated REMIC I Regular Interests and
Uncertificated REMIC II Regular Interests as a REMIC (“REMIC III”) for federal income tax purposes.

     The Uncertificated REMIC I Regular Interests will be “regular interests” in REMIC I and the
Class R-I Certificates will be the sole class of “residual interests” in REMIC I for purposes of
the REMIC Provisions (as defined herein) under the federal income tax law. The Uncertificated
REMIC II Regular Interests will be “regular interests” in REMIC II and the Class R-II Certificates
will be the sole class of “residual interests” in REMIC II for purposes of the REMIC Provisions (as
defined herein) under the federal income tax law.

     The Class I-A-1, Class I-A-2 (exclusive of any rights to payment of amounts received pursuant
to the related Yield Maintenance Agreement), Class I-A-3, Class I-A-4, Class I-A-5, Class I-A-6,
Class I-A-7, Class I-A-8, Class I-A-9, Class I-A-10 (exclusive of any rights to payment of amounts
received pursuant to the related Yield Maintenance Agreement), Class I-A-11, Class I-A-12, Class
I-A-13, Class I-A-14(exclusive of any rights to payment of amounts received pursuant to the related
Yield Maintenance Agreement), Class I-A-15, Class I-A-16, Class I-A-17(exclusive of any rights to
payment of amounts received pursuant to the related Yield Maintenance Agreement), Class I-A-18,
Class II-A-1, Class II-A-2, Class I-A-V, Class I-A-P, Class II-A-P, Class II-A-V, Class I-M-1,
Class I-M-2, Class I-M-3, Class I-B-1, Class I-B-2, Class I-B-3, Class II-M-1, Class II-M-2, Class
II-M-3, Class II-B-1, Class II-B-2 and Class II-B-3 Certificates and the Uncertificated REMIC III
Regular Interests Z1 and the Uncertificated REMIC III Regular Interests Z2, the rights in and to
which will be represented by the related Class A-V Certificates, will be “regular interests” in
REMIC III, and the Class R-III Certificates will be the sole class of “residual interests” therein
for purposes of the REMIC Provisions (as defined herein) under federal income tax law. On and
after the date of issuance of any Subclass of related Class A-V Certificates pursuant to Section
5.01(c) of the Standard Terms, any such Subclass will represent the related Uncertificated REMIC
III Regular Interest or Interests Z1 or

65

 

Interests Z2 specified by the initial Holder of the related Class A-V Certificates pursuant to
said Section.

          Section 10.04 Distributions on the Uncertificated REMIC I and REMIC II Regular
Interests.

     (a) On each Distribution Date the Trustee shall be deemed to distribute to itself, as the
holder of the Uncertificated REMIC I Regular Interests and Uncertificated REMIC II Regular
Interests, the Uncertificated REMIC I Regular Interest Distribution Amounts and the Uncertificated
REMIC II Regular Interest Distribution Amounts, respectively, in the following order of priority to
the extent of the related Available Distribution Amount, as reduced by distributions made to the
Class R-I Certificates or the Class R-II Certificates, as applicable, pursuant to Section 4.02(a):

     (i) Uncertificated Accrued Interest on the Uncertificated REMIC I Regular Interests or
the Uncertificated REMIC II Regular Interests, as applicable, for such Distribution Date,
plus any Uncertificated Accrued Interest thereon remaining unpaid from any previous
Distribution Date; and

     (ii) In accordance with the priority set forth in Section 10.04(b), an amount equal to
the sum of the amounts in respect of principal distributable on each Class of Certificates
(other than the Class R-I Certificates and the Class R-II Certificates) under Section
4.02(a), as allocated thereto pursuant to Section 4.02(b).

     (b) The amount described in Section 10.04(a)(ii) in respect of the Uncertificated REMIC I
Regular Interest Distribution Amounts shall be deemed distributed to (i) Uncertificated REMIC I
Regular Interest X and (ii) Uncertificated REMIC I Regular Interest Y with the amount to be
distributed allocated among such interests in accordance with the priority assigned to each Related
Class of Certificates, respectively, under Section 4.02(b) until the Uncertificated Principal
Balance of each such interest is reduced to zero. The amount described in Section 10.04(a)(ii) in
respect of the Uncertificated REMIC II Regular Interest Distribution Amounts shall be deemed
distributed to (i) Uncertificated REMIC II Regular Interest X and (iii) Uncertificated REMIC II
Regular Interest Y with the amount to be distributed allocated among such interests in accordance
with the priority assigned to each Related Class of Certificates (other than the Class R-III
Certificates), respectively, under Section 4.02(b) until the Uncertificated Principal Balance of
each such interest is reduced to zero.

     (c) The portion of the Uncertificated REMIC I Regular Interest Distribution Amounts described
in Section 10.04(a)(ii) shall be deemed distributed by REMIC I to REMIC III or REMIC II to REMIC
III, as the case may be, in accordance with the priority assigned to the REMIC III Certificates
relative to that assigned to the REMIC I Certificates and the REMIC II Certificates under Section
4.02(b).

     (d) In determining from time to time the Uncertificated REMIC I Regular Interest Distribution
Amounts, the Uncertificated REMIC II Regular Interest Distribution Amounts and Uncertificated REMIC
III Regular Interest Distribution Amounts:

66

 

     (i) Realized Losses allocated to the Class A-V Certificates under Section 4.05 shall be
deemed allocated to the Uncertificated REMIC III Regular Interests Z1, in the case of the
Class I-A-V Certificates, and the Uncertificated REMIC III Regular Interests Z2, in the
case of the Class I-A-V Certificates, pro rata according to the respective amounts of
Uncertificated Accrued Interest that would have accrued on such Uncertificated REMIC III
Regular Interests Z1 or Z2 for the Distribution Date for which such allocation is being
made in the absence of such allocation;

     (ii) Realized Losses allocated to the Class I-A-P Certificates under Section 4.05 shall
be deemed allocated to Uncertificated REMIC I Regular Interest X;

     (iii) Realized Losses allocated to the Class II-A-P Certificates under Section 4.05
shall be deemed allocated to Uncertificated REMIC II Regular Interest X;

     (iv) Realized Losses allocated to the Class I-A-1, Class I-A-2, Class I-A-3, Class
I-A-4, Class I-A-5, Class I-A-6, Class I-A-7, Class I-A-8, Class I-A-9, Class I-A-10, Class
I-A-11, Class I-A-12, Class I-A-13, Class I-A-14, Class I-A-15, Class I-A-16, Class I-A-17,
Class I-A-18, Class I-M-1, Class I-M-2, Class I-M-3, Class I-B-1, Class I-B-2 and Class
I-B-3 under Section 4.05 shall be deemed allocated to Uncertificated REMIC I Regular
Interest Y;

     (v) Realized Losses allocated to the Class II-A-1, Class II-A-2, Class III-A-1, Class
II-M-1, Class II-M-2, Class II-M-3, Class II-B-1, Class II-B-2, Class II-B-3 Certificates
and Class R-III Certificates under Section 4.05 shall be deemed allocated to Uncertificated
REMIC II Regular Interest Y;

     (vi) Realized Losses allocated to the Uncertificated REMIC II Regular Interests Z1
under clause (i), above, shall be deemed allocated, in each case, to the related
Uncertificated REMIC I Regular Interest Z; and

     (vii) Realized Losses allocated to the Uncertificated REMIC II Regular Interests Z2
under clause (i), above, shall be deemed allocated, in each case, to the related
Uncertificated REMIC II Regular Interest Z.

     (e) On each Distribution Date the Trustee shall be deemed to distribute from REMIC III, in the
priority set forth in Sections 4.02(a) and (b), to the Holders of each Class of Certificates (other
than the Class R-I Certificates and the Class R-II Certificates) the amounts distributable thereon
from the Uncertificated REMIC I Regular Interest Distribution Amounts and the Uncertificated REMIC
II Regular Interest Distribution Amounts deemed to have been received by REMIC III from REMIC I and
REMIC II under this Section 10.04. The amounts deemed distributed hereunder with respect to the
Class I-A-V Certificates and the Class II-A-V Certificates shall be deemed to have been distributed
in respect of the Uncertificated REMIC III Regular Interests Z1 and the Uncertificated REMIC III
Regular Interests Z2, respectively, in accordance with their respective Uncertificated REMIC III
Regular Interest Distribution Amounts, as such Uncertificated REMIC III Regular Interests Z1 and
the Uncertificated REMIC III Regular Interests Z2 comprise the Class I-A-V Certificates and the
Class II-A-V Certificates, respectively.

67

 

     (f) Notwithstanding the deemed distributions on the Uncertificated REMIC I Regular Interests
and the Uncertificated REMIC II Regular Interests described in this Section 10.04, distributions of
funds from the Certificate Account shall be made only in accordance with Section 4.02.

          Section 10.05 Compliance with Withholding Requirements.

          Notwithstanding any other provision of this Agreement, the Trustee or any Paying Agent, as
applicable, shall comply with all federal withholding requirements respecting payments to
Certificateholders, including interest or original issue discount payments or advances thereof that
the Trustee or any Paying Agent, as applicable, reasonably believes are applicable under the Code.
The consent of Certificateholders shall not be required for such withholding. In the event the
Trustee or any Paying Agent, as applicable, does withhold any amount from interest or original
issue discount payments or advances thereof to any Certificateholder pursuant to federal
withholding requirements, the Trustee or any Paying Agent, as applicable, shall indicate the amount
withheld to such Certificateholder pursuant to the terms of such requirements.

68

 

ARTICLE XI

MISCELLANEOUS PROVISIONS

          Section 11.01 Amendment. (See Section 11.01 of the Standard Terms)

          Section 11.02 Recordation of Agreement; Counterparts. (See Section 11.02 of the
Standard Terms)

          Section 11.03 Limitation on Rights of Certificateholders. (See Section 11.03 of the
Standard Terms)

          Section 11.04 Governing Law. (See Section 11.04 of the Standard Terms)

     Section 11.05 Notices. All demands and notices hereunder shall be in writing and
shall be deemed to have been duly given if personally delivered at or mailed by registered mail,
postage prepaid (except for notices to the Trustee which shall be deemed to have been duly given
only when received), to the appropriate address for each recipient listed in the table below or, in
each case, such other address as may hereafter be furnished in writing to the Master Servicer, the
Trustee and the Company, as applicable:

	 	 	 
	Recipient	 	Address
	Company

	 	1100 Virginia Drive
	 

	 	Fort Washington, Pennsylvania 19034,
	 

	 	Attention: President (PRS)
	 
	 	 
	Master Servicer

	 	[______________]
	 

	 	[______________],
	 

	 	Attention: [______________]
	 
	 	 
	Trustee

	 	[______________]
	 

	 	[______________],
	 

	 	Attention: [______________]
	 
	 	 
	Moody’s Investors Service, Inc.

	 	99 Church Street
	 

	 	New York, New York 10007,
	 

	 	Attention: ABS Monitoring Department
	 
	 	 
	Fitch Ratings

	 	One State Street Plaza
	 

	 	New York, New York 10041,
	 

	 	Attention: [______________]
	 
	 	 
	Standard & Poor’s Ratings Services

	 	55 Water Street, 41st Floor
	 

	 	New York, New York 10041,
	 

	 	Attention: Mortgage Surveillance

69

 

Any notice required or permitted to be mailed to a Certificateholder shall be given by first class
mail, postage prepaid, at the address of such holder as shown in the Certificate Register. Any
notice so mailed within the time prescribed in this Agreement shall be conclusively presumed to
have been duly given, whether or not the Certificateholder receives such notice.

          Section 11.06 Required Notices to Rating Agency and Subservicer. (See Section 11.06 of
the Standard Terms)

          Section 11.07 Severability of Provisions. (See Section 11.07 of the Standard Terms)

          Section 11.08 Supplemental Provisions for Resecuritization. (See Section 11.08 of the
Standard Terms)

          Section 11.09 Allocation of Voting Rights.

          [ ]% of all of the Voting Rights shall be allocated among Holders of Certificates, other than
the Interest Only Certificates and Class R Certificates, in proportion to the outstanding
Certificate Principal Balances of their respective Certificates; [ ]% of all Voting Rights shall be
allocated among the Holders of each Class of Class A-V Certificates, in accordance with their
respective Percentage Interests; and [ ]% of all Voting Rights shall be allocated among the Holders
of each Class of Class R Certificates, in accordance with their respective Percentage Interests.

          Section 11.010 No Petition.

          The Depositor, Master Servicer and the Trustee, by entering into this Agreement, and each
Certificateholder, by accepting a Certificate, hereby covenant and agree that they will not at any
time institute against the Trust Fund, or join in any institution against the Trust Fund of, any
bankruptcy proceedings under any United States federal or state bankruptcy or similar law in
connection with any obligation with respect to the Certificates or this Agreement.

70

 

     IN WITNESS WHEREOF, the Company, the Master Servicer and the Trustee have caused their names
to be signed hereto by their respective officers thereunto duly authorized and their respective
seals, duly attested, to be hereunto affixed, all as of the day and year first above written.

	 	 	 	 	 
	[Seal] 	PHOENIX RESIDENTIAL SECURITIES, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	 	 
	 	Attest:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	[Seal] 	[______________]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	 	 
	 	Attest:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	[Seal] 	[__________], as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	 	 
	 	Attest:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

			
	STATE OF ____________
	 	)
	 
	 	) ss.:
	COUNTY OF _________
	 	)

          On the [__]th day of [______], 201[_] before me, a notary public in and for said State,
personally appeared [___________], known to me to be a [_________] of Phoenix Residential
Securities, LLC, one of the limited liability companies that executed the within instrument, and
also known to me to be the person who executed it on behalf of said corporation, and acknowledged
to me that such corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public 	 
	 	 	 

[Notarial Seal]

 

 

			
	STATE OF ____________
	 	)
	 
	 	) ss.:
	COUNTY OF __________
	 	)

          On the [__]th day of [_________], 201[_] before me, a notary public in and for said State,
personally appeared [_____________________], known to me to be a(n) [____________________] of
[______________], one of the limited liability companies that executed the within instrument, and
also known to me to be the person who executed it on behalf of said corporation, and acknowledged
to me that such corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public 	 
	 	 	 

[Notarial Seal]

 

 

			
	STATE OF ____________
	 	)
	 
	 	) ss.:
	COUNTY OF __________
	 	)

          On the [__]th day of [________], 201[_] before me, a notary public in and for said State,
personally appeared [__________], known to me to be a(n) [__________] of [__________], the national
banking association that executed the within instrument, and also known to me to be the person who
executed it on behalf of said national banking association and acknowledged to me that such
national banking association executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public 	 
	 	 	 
	 

[Notarial Seal]

 

 

EXHIBIT ONE—I

MORTGAGE LOAN SCHEDULE

GROUP I LOANS

AVAILABLE UPON REQUEST

 

 

EXHIBIT ONE—II

MORTGAGE LOAN SCHEDULE

GROUP II LOANS

AVAILABLE UPON REQUEST

 

 

EXHIBIT ONE—III

MORTGAGE LOAN SCHEDULE

GROUP III LOANS

AVAILABLE UPON REQUEST

 

 

EXHIBIT TWO-I

SCHEDULE OF DISCOUNT FRACTIONS FOR GROUP I LOANS

AVAILABLE UPON REQUEST

 

 

EXHIBIT TWO-II

SCHEDULE OF DISCOUNT FRACTIONS FOR

GROUP II LOANS AND GROUP III LOANS

AVAILABLE UPON REQUEST

 

 

EXHIBIT THREE

INFORMATION TO BE INCLUDED IN

MONTHLY DISTRIBUTION DATE STATEMENT

     (i) the applicable Record Date, Determination Date and Distribution Date;

     (ii) for Loan Group I and Loan Group II and Loan Group III together and for each Loan
Group separately, the aggregate amount of payments received with respect to the Mortgage
Loans, including prepayment amounts;

     (iii) the Servicing Fee and Subservicing Fee payable to the Master Servicer and the
Subservicer;

     (iv) the amount of any other fees or expenses paid;

     (v) (a) the amount of such distribution to the Certificateholders of such Class
applied to reduce the Certificate Principal Balance thereof, and (b) the aggregate amount
included therein representing Principal Prepayments;

     (vi) the amount of such distribution to Holders of such Class of Certificates allocable
to interest;

     (vii) if the distribution to the Holders of such Class of Certificates is less than the
full amount that would be distributable to such Holders if there were sufficient funds
available therefor, the amount of the shortfall;

     (viii) the aggregate Certificate Principal Balance of each Class of Certificates and
each of the Senior Percentage and Subordinate Class Percentage, before and after giving
effect to the amounts distributed on such Distribution Date, separately identifying any
reduction thereof due to Realized Losses other than pursuant to an actual distribution of
principal;

     (ix) the aggregate Certificate Principal Balance of each of the Class A Certificates,
Class M Certificates and Class B Certificates as of the Closing Date;

     (x) for Loan Group I and Loan Group II and Loan Group III together and for each Loan
Group separately, the weighted average remaining term to maturity of the Mortgage Loans
after giving effect to the amounts distributed on such Distribution Date;

     (xi) for Loan Group I and Loan Group II and Loan Group III together and for each Loan
Group separately, the weighted average Mortgage Rates of the Mortgage Loans after giving
effect to the amounts distributed on such Distribution Date;

     (xii) if applicable, the Special Hazard Amount, Fraud Loss Amount and Bankruptcy Amount
and as of the close of business on the applicable Distribution Date;

     (xiii) the Pool Stated Principal Balance and number of the Mortgage Loans after giving
effect to the distribution of principal on such Distribution Date and the number of Mortgage
Loans at the beginning and end of the related Due Period;

     (xiv) for Loan Group I and Loan Group II and Loan Group III together and for each Loan
Group separately, on the basis of the most recent reports furnished to it by

2

 

Sub-Servicers, the number and Stated Principal Balances of Mortgage Loans that are
Delinquent (A) 30-59 days, (B) 60-89 days and (C) 90 or more days and the number and Stated
Principal Balances of Mortgage Loans that are in foreclosure;

     (xv) for Loan Group I and Loan Group II and Loan Group III together and for each Loan
Group separately, the aggregate amount of Realized Losses for such Distribution Date;

     (xvi) the amount, terms and general purpose of any Advance by the Master Servicer
pursuant to Section 4.04;

     (xvii) any material modifications, extensions or waivers to the terms of the Mortgage
Loans during the Due Period or that have cumulatively become material over time;

     (xviii) any material breaches of Mortgage Loan representations or warranties or
covenants in the Agreement.

     (xix) the related Subordinate Principal Distribution Amount;

     (xx) for Loan Group I and Loan Group II and Loan Group III together and for each Loan
Group separately, the number, aggregate principal balance and Stated Principal Balances of
any REO Properties;

     (xxi) the aggregate Accrued Certificate Interest remaining unpaid, if any, for each
Class of Certificates, after giving effect to the distribution made on such Distribution
Date;

     (xxii) the Pass-Through Rate with respect to the Class A-V Certificates;

     (xxiii) the Pass-Through Rates on the Floater Certificates and Inverse Floater
Certificates for such Distribution Date, separately identifying LIBOR for such Distribution
Date;

     (xxiv) the Notional Amount with respect to each class of Interest Only Certificates;

     (xxv) the occurrence of the Credit Support Depletion Date;

     (xxvi) the related Senior Accelerated Distribution Percentage applicable to such
distribution;

     (xxvii) the related Senior Percentage for such Distribution Date;

     (xxviii) for Loan Group I and Loan Group II and Loan Group III together and for each
Loan Group separately, the aggregate amount of any recoveries on previously foreclosed loans
from Sellers;

     In the case of information furnished pursuant to clauses (i) and (ii) above, the amounts shall
be expressed as a dollar amount per Certificate with a $1,000 denomination.

     The Trustee’s internet website will initially be located at http://www.[______].com. To
receive this statement via first class mail, telephone the trustee at ([___]) [___]-[____].

3

 

EXHIBIT FOUR

STANDARD TERMS OF POOLING AND SERVICING

AGREEMENT DATED AS OF [_______], 201[_]

 

 

 

STANDARD TERMS OF

POOLING AND SERVICING AGREEMENT

Dated as of [_________], 201[_]

Phoenix Residential Securities, LLC

Mortgage-Backed Pass-Through Certificates

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	2	 
	Section 1.01. Definitions
	 	 	2	 
	Section 1.02. Use of Words and Phrases
	 	 	33	 
	ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
CERTIFICATES
	 	 	34	 
	Section 2.01. Conveyance of Mortgage Loans
	 	 	34	 
	Section 2.02. Acceptance by Trustee
	 	 	39	 
	Section 2.03. Representations, Warranties and Covenants of the Master Servicer and the
Company
	 	 	41	 
	Section 2.04. Representations and Warranties of [_______________]
	 	 	42	 
	Section 2.05. Execution and Authentication of Certificates/Issuance of Certificates
Evidencing Interests in REMIC I Certificates
	 	 	44	 
	Section 2.06. Conveyance of Uncertificated REMIC I and REMIC II Regular Interests;
Acceptance by the Trustee
	 	 	44	 
	Section 2.07. Issuance of Certificates Evidencing Interests in REMIC II
	 	 	45	 
	Section 2.08. Purposes and Powers of the Trust
	 	 	45	 
	ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
	 	 	45	 
	Section 3.01. Master Servicer to Act as Servicer
	 	 	45	 
	Section 3.02. Subservicing Agreements Between Master Servicer and Subservicers; Enforcement
of Subservicers’ and Sellers’ Obligations
	 	 	47	 
	Section 3.03. Successor Subservicers
	 	 	48	 
	Section 3.04. Liability of the Master Servicer
	 	 	48	 
	Section 3.05. No Contractual Relationship Between Subservicer and Trustee or
Certificateholders
	 	 	49	 
	Section 3.06. Assumption or Termination of Subservicing Agreements by Trustee
	 	 	49	 
	Section 3.07. Collection of Certain Mortgage Loan Payments; Deposits to Custodial Account
	 	 	49	 
	Section 3.08. Subservicing Accounts; Servicing Accounts
	 	 	52	 
	Section 3.09. Access to Certain Documentation and Information Regarding the Mortgage Loans
	 	 	54	 
	Section 3.10. Permitted Withdrawals from the Custodial Account
	 	 	54	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 3.11. Maintenance of the Primary Insurance Policies; Collections Thereunder
	 	 	56	 
	Section 3.12. Maintenance of Fire Insurance and Omissions and Fidelity Coverage
	 	 	56	 
	Section 3.13. Enforcement of Due-on-Sale Clauses; Assumption and Modification Agreements;
Certain Assignments
	 	 	58	 
	Section 3.14. Realization Upon Defaulted Mortgage Loans
	 	 	60	 
	Section 3.15. Trustee to Cooperate; Release of Custodial Files
	 	 	63	 
	Section 3.16. Servicing and Other Compensation; Compensating Interest
	 	 	64	 
	Section 3.17. Reports to the Trustee and the Company
	 	 	65	 
	Section 3.18. Annual Statement as to Compliance and Servicing Assessment
	 	 	65	 
	Section 3.19. Annual Independent Public Accountants’ Servicing Report
	 	 	66	 
	Section 3.20. Rights of the Company in Respect of the Master Servicer
	 	 	66	 
	Section 3.21. Administration of Buydown Funds
	 	 	67	 
	Section 3.22. Advance Facility
	 	 	67	 
	ARTICLE IV PAYMENTS TO CERTIFICATEHOLDERS
	 	 	71	 
	Section 4.01. Certificate Account
	 	 	71	 
	Section 4.02. Distributions
	 	 	72	 
	Section 4.03. Statements to Certificateholders; Statements to Rating Agencies; Exchange Act
Reporting
	 	 	72	 
	Section 4.04. Distribution of Reports to the Trustee and the Company; P&I Advances by the
Master Servicer
	 	 	74	 
	Section 4.05. Allocation of Realized Losses
	 	 	76	 
	Section 4.06. Reports of Foreclosures and Abandonment of Mortgaged Property
	 	 	76	 
	Section 4.07. Optional Purchase of Defaulted Mortgage Loans
	 	 	76	 
	Section 4.08. Surety Bond
	 	 	76	 
	ARTICLE V THE CERTIFICATES
	 	 	77	 
	Section 5.01. The Certificates
	 	 	77	 
	Section 5.02. Registration of Transfer and Exchange of Certificates
	 	 	79	 
	Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates
	 	 	85	 
	Section 5.04. Persons Deemed Owners
	 	 	86	 
	Section 5.05. Appointment of Paying Agent
	 	 	86	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 5.06. U.S.A. Patriot Act Compliance
	 	 	86	 
	ARTICLE VI THE COMPANY AND THE MASTER SERVICER
	 	 	87	 
	Section 6.01. Respective Liabilities of the Company and the Master Servicer
	 	 	87	 
	Section 6.02. Merger or Consolidation of the Company or the Master Servicer; Assignment of
Rights and Delegation of Duties by Master Servicer
	 	 	87	 
	Section 6.03. Limitation on Liability of the Company, the Master Servicer and Others
	 	 	88	 
	Section 6.04. Company and Master Servicer Not to Resign
	 	 	89	 
	ARTICLE VII DEFAULT
	 	 	90	 
	Section 7.01. Events of Default
	 	 	90	 
	Section 7.02. Trustee or Company to Act; Appointment of Successor
	 	 	92	 
	Section 7.03. Notification to Certificateholders
	 	 	93	 
	Section 7.04. Waiver of Events of Default
	 	 	93	 
	ARTICLE VIII CONCERNING THE TRUSTEE
	 	 	94	 
	Section 8.01. Duties of Trustee
	 	 	94	 
	Section 8.02. Certain Matters Affecting the Trustee
	 	 	95	 
	Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans
	 	 	97	 
	Section 8.04. Trustee May Own Certificates
	 	 	97	 
	Section 8.05. Master Servicer to Pay Trustee’s Fees and Expenses; Indemnification
	 	 	97	 
	Section 8.06. Eligibility Requirements for Trustee
	 	 	98	 
	Section 8.07. Resignation and Removal of the Trustee
	 	 	99	 
	Section 8.08. Successor Trustee
	 	 	100	 
	Section 8.09. Merger or Consolidation of Trustee
	 	 	100	 
	Section 8.10. Appointment of Co-Trustee or Separate Trustee
	 	 	101	 
	Section 8.11. Appointment of the Custodian
	 	 	102	 
	Section 8.12. Appointment of Office or Agency
	 	 	102	 
	Section 8.13. DTC Letter of Representations
	 	 	102	 
	ARTICLE IX TERMINATION OR OPTIONAL PURCHASE OF ALL CERTIFICATES
	 	 	103	 
	Section 9.01. Optional Purchase by the Master Servicer of All Certificates; Termination Upon
Purchase by the Master Servicer or Liquidation of All Mortgage Loans
	 	 	103	 

-iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 9.02. Additional Termination Requirements
	 	 	106	 
	Section 9.03. Termination of Multiple REMICs
	 	 	107	 
	ARTICLE X REMIC PROVISIONS
	 	 	108	 
	Section 10.01. REMIC Administration
	 	 	108	 
	Section 10.02. Master Servicer, REMIC Administrator and Trustee Indemnification
	 	 	111	 
	Section 10.03. Designation of REMIC(s)
	 	 	112	 
	Section 10.04. Distributions on the Uncertificated REMIC I and REMIC II Regular Interests
	 	 	112	 
	Section 10.05. Compliance with Withholding Requirements
	 	 	112	 
	ARTICLE XI MISCELLANEOUS PROVISIONS
	 	 	113	 
	Section 11.01. Amendment
	 	 	113	 
	Section 11.02. Recordation of Agreement; Counterparts
	 	 	115	 
	Section 11.03. Limitation on Rights of Certificateholders
	 	 	116	 
	Section 11.04. Governing Law
	 	 	116	 
	Section 11.05. Notices
	 	 	117	 
	Section 11.06. Required Notices to Rating Agency and Subservicer
	 	 	117	 
	Section 11.07. Severability of Provisions
	 	 	118	 
	Section 11.08. Supplemental Provisions for Resecuritization
	 	 	118	 
	Section 11.09. Allocation of Voting Rights
	 	 	118	 
	Section 11.10. No Petition
	 	 	118	 
	Section 11.11. Exchange Act Rule 17g-5 Procedures
	 	 	119	 
	Section 11.12. Tax Treatment
	 	 	119	 
	ARTICLE XII COMPLIANCE WITH REGULATION AB
	 	 	120	 
	Section 12.01. Intent of the Parties; Reasonableness
	 	 	120	 
	Section 12.02. Additional Representations and Warranties of the Trustee
	 	 	120	 
	Section 12.03. Information to Be Provided by the Trustee
	 	 	121	 
	Section 12.04. Report on Assessment of Compliance and Attestation
	 	 	121	 
	Section 12.05. Indemnification; Remedies
	 	 	122	 

-iv-

 

EXHIBITS

	 	 	 

	Exhibit A:

	 	Form of Class A Certificate
	Exhibit A-I:

	 	Form of Class X Certificate
	Exhibit B:

	 	Form of Class M Certificate
	Exhibit C:

	 	Form of Class B Certificate
	Exhibit C-I:

	 	Form of Class P Certificate
	Exhibit C-II:

	 	Form of Class SB Certificate
	Exhibit D:

	 	Form of Class R Certificate
	Exhibit E:

	 	Form of Seller/Servicer Contract
	Exhibit F:

	 	Forms of Request for Release
	Exhibit G-1:

	 	Form of Transfer Affidavit and Agreement
	Exhibit G-2:

	 	Form of Transferor Certificate
	Exhibit H:

	 	Form of Investor Representation Letter
	Exhibit I:

	 	Form of Transferor Representation Letter
	Exhibit J:

	 	Form of Rule 144A Investment Representation Letter
	Exhibit K:

	 	Text of Amendment to Pooling and Servicing Agreement
Pursuant to Section 11.01(e) for a Limited Guaranty
	Exhibit L:

	 	Form of Limited Guaranty
	Exhibit M:

	 	Form of Lender Certification for Assignment of Mortgage Loan
	Exhibit N:

	 	Request for Exchange Form
	Exhibit O:

	 	Form of Form 10-K Certification
	Exhibit P:

	 	Form of Back-Up Certification to Form 10-K Certificate
	Exhibit Q:

	 	Information to be Provided by the Master Servicer to the Rating Agencies Relating to
Reportable Modified Mortgage Loans
	Exhibit R:

	 	Servicing Criteria

 

 

     This is the Standard Terms of Pooling and Servicing Agreement, dated as of [___________],
201[_] (the “Standard Terms”, and as incorporated by reference into a Series Supplement dated as of
the Cut-off Date, the “Pooling and Servicing Agreement” or “Agreement”), among PHOENIX RESIDENTIAL
SECURITIES, LLC, as the company (together with its permitted successors and assigns, the
“Company”), [_______________], as master servicer (together with its permitted successors and
assigns, the “Master Servicer”), and the trustee named in the applicable Series Supplement
(together with its permitted successors and assigns, the “Trustee”).

PRELIMINARY STATEMENT:

     The Company intends to sell certain mortgage-backed pass-through certificates (collectively,
the “Certificates”), to be issued under the Agreement in multiple classes, which in the aggregate
will evidence the entire beneficial ownership interest in the Mortgage Loans.

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

 

 

ARTICLE I

DEFINITIONS

     Section 1.01. Definitions.

     Whenever used in this Agreement, the following words and phrases, unless the context otherwise
requires, shall have the meanings specified in this Article.

     Accretion Termination Date: As defined in the Series Supplement.

     Accrual Certificates: As defined in the Series Supplement.

     Accrued Certificate Interest: With respect to each Distribution Date, as to any Class
or Subclass of Certificates (other than any Principal Only Certificates), interest accrued during
the related Interest Accrual Period at the related Pass-Through Rate on the Certificate Principal
Balance or Notional Amount thereof immediately prior to such Distribution Date. Accrued Certificate
Interest will be calculated on the basis of a 360-day year, consisting of twelve 30-day months. In
each case Accrued Certificate Interest on any Class or Subclass of Certificates will be reduced by
the amount of:

	 	(i)	 	Prepayment Interest Shortfalls on all Mortgage Loans or, if the Mortgage Pool
is comprised of two or more Loan Groups, on the Mortgage Loans in the related Loan
Group (to the extent not offset by the Master Servicer with a payment of Compensating
Interest as provided in Section 4.01),

	 	(ii)	 	the interest portion (adjusted to the Net Mortgage Rate (or the Modified Net
Mortgage Rate in the case of a Modified Mortgage Loan)) of Realized Losses on all
Mortgage Loans or, if the Mortgage Pool is comprised of two or more Loan Groups, on
the Mortgage Loans in the related Loan Group (including Excess Special Hazard Losses,
Excess Fraud Losses, Excess Bankruptcy Losses and Extraordinary Losses) not allocated
solely to one or more specific Classes of Certificates pursuant to Section 4.05,

	 	(iii)	 	the interest portion of Advances that were (A) previously made with respect
to a Mortgage Loan or REO Property on all Mortgage Loans or, if the Mortgage Pool is
comprised of two or more Loan Groups, on the Mortgage Loans in the related Loan Group,
which remained unreimbursed following the Cash Liquidation or REO Disposition of such
Mortgage Loan or REO Property and (B) made with respect to delinquencies that were
ultimately determined to be Excess Special Hazard Losses, Excess Fraud Losses, Excess
Bankruptcy Losses or Extraordinary Losses, and

	 	(iv)	 	any other interest shortfalls not covered by the subordination provided by the
Class M Certificates and Class B Certificates, including interest that is not
collectible from the Mortgagor pursuant to the Servicemembers Civil Relief Act of 1940,
as amended, or similar legislation or regulations as in effect from time to time,

2

 

with all such reductions allocated (A) among all of the Certificates in proportion to their
respective amounts of Accrued Certificate Interest payable on such Distribution Date absent such
reductions or (B) if the Mortgage Pool is comprised of two or more Loan Groups, the related
Senior Percentage of such reductions among the related Senior Certificates in proportion to the
amounts of Accrued Certificate Interest payable from the related Loan Group on such Distribution
Date absent such reductions, with the remainder of such reductions allocated among the holders of
the Class M Certificates and Class B Certificates in proportion to their respective amounts of
Accrued Certificate Interest payable on such Distribution Date absent such reductions. In addition
to that portion of the reductions described in the preceding sentence that are allocated to any
Class of Class B Certificates or any Class of Class M Certificates, Accrued Certificate Interest on
such Class of Class B Certificates or such Class of Class M Certificates will be reduced by the
interest portion (adjusted to the Net Mortgage Rate) of Realized Losses that are allocated solely
to such Class of Class B Certificates or such Class of Class M Certificates pursuant to Section
4.05.

     Additional Collateral: Any of the following held, in addition to the related
Mortgaged Property, as security for a Mortgage Loan: (i) all money, securities, security
entitlements, accounts, general intangibles, payment rights, instruments, documents, deposit
accounts, certificates of deposit, commodities contracts and other investment property and other
property of whatever kind or description now existing or hereafter acquired which is pledged as
security for the repayment of such Mortgage Loan, (ii) third-party guarantees, and (A) all money,
securities, security entitlements, accounts, general intangibles, payment rights, instruments,
documents, deposit accounts, certificates of deposit, commodities contracts and other investment
property and other property of whatever kind or description now existing or hereafter acquired
which is pledged as collateral for such guarantee or (B) any mortgaged property securing the
performance of such guarantee, or (iii) such other collateral as may be set forth in the Series
Supplement.

     Additional Collateral Loan: Each Mortgage Loan that is supported by Additional
Collateral.

     Adjusted Mortgage Rate: With respect to any Mortgage Loan and any date of
determination, the Mortgage Rate borne by the related Mortgage Note, less the rate at which the
related Subservicing Fee accrues.

     Advance Facility: As defined in Section 3.22.

     Advance Facility Notice: As defined in Section 3.22.

     Advance Facility Trustee: As defined in Section 3.22.

     Advancing Person: As defined in Section 3.22.

     Advance Reimbursement Amounts: As defined in Section 3.22.

     Advances: The P&I Advances and the Servicing Advances.

3

 

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

     Ambac: Ambac Assurance Corporation (formerly known as AMBAC Indemnity Corporation).

     Amount Held for Future Distribution: As to any Distribution Date and, with respect to
any Mortgage Pool that is comprised of two or more Loan Groups, each Loan Group, the total of the
amounts held in the Custodial Account at the close of business on the preceding Determination Date
on account of (i) Liquidation Proceeds, Subsequent Recoveries, Insurance Proceeds, Curtailments,
Mortgage Loan purchases made pursuant to Section 2.02, 2.03, 2.04 or 4.07 and Mortgage Loan
substitutions made pursuant to Section 2.03 or 2.04 received or made in the month of such
Distribution Date (other than such Liquidation Proceeds, Insurance Proceeds and purchases of
Mortgage Loans that the Master Servicer has deemed to have been received in the preceding month in
accordance with Section 3.07(b)), and Principal Prepayments in Full made after the related
Prepayment Period, and (ii) payments which represent early receipt of scheduled payments of
principal and interest due on a date or dates subsequent to the related Due Date.

     Appraised Value: As to any Mortgaged Property, the lesser of (i) the appraised value
of such Mortgaged Property based upon the appraisal made at the time of the origination of the
related Mortgage Loan, and (ii) the sales price of the Mortgaged Property at such time of
origination, except in the case of a Mortgaged Property securing a refinanced or modified Mortgage
Loan as to which it is either the appraised value determined above or the appraised value
determined in an appraisal at the time of refinancing or modification, as the case may be.

     Assignment: An assignment of the Mortgage, notice of transfer or equivalent
instrument, in recordable form, sufficient under the laws of the jurisdiction wherein the related
Mortgaged Property is located to reflect of record the sale of the Mortgage Loan to the Trustee for
the benefit of Certificateholders, which assignment, notice of transfer or equivalent instrument
may be in the form of one or more blanket assignments covering Mortgages secured by Mortgaged
Properties located in the same county, if permitted by law and accompanied by an Opinion of Counsel
to that effect.

     Assignment Agreement: The Assignment and Assumption Agreement, dated the Closing
Date, between [_________] and the Company relating to the transfer and assignment of the Mortgage
Loans.

     Assignment of Proprietary Lease: With respect to a Cooperative Loan, the assignment
of the related Cooperative Lease from the Mortgagor to the originator of the Cooperative Loan.

     Available Distribution Amount: As to any Distribution Date and, with respect to any
Mortgage Pool comprised of two or more Loan Groups, each Loan Group, an amount equal to (a) the sum
of (i) the amount relating to the Mortgage Loans on deposit in the Custodial Account

4

 

as of the close of business on the immediately preceding Determination Date, including any
Subsequent Recoveries, and amounts deposited in the Custodial Account in connection with the
substitution of Qualified Substitute Mortgage Loans, (ii) the amount of any P&I Advance made on
the immediately preceding Certificate Account Deposit Date, (iii) any amount deposited in the
Certificate Account on the related Certificate Account Deposit Date pursuant to the second
paragraph of Section 3.12(a), (iv) any amount deposited in the Certificate Account pursuant to
Section 4.07 or Section 9.01, (v) any amount that the Master Servicer is not permitted to withdraw
from the Custodial Account or the Certificate Account pursuant to Section 3.16(e) and (vi) any
amount received by the Trustee pursuant to the Surety Bond in respect of such Distribution Date,
reduced by (b) the sum as of the close of business on the immediately preceding Determination Date
of (w) aggregate Foreclosure Profits, (x) the Amount Held for Future Distribution, and (y) amounts
permitted to be withdrawn by the Master Servicer from the Custodial Account in respect of the
Mortgage Loans pursuant to clauses (ii)-(x), inclusive, of Section 3.10(a). Such amount shall be
determined separately for each Loan Group. Additionally, with respect to any Mortgage Pool that is
comprised of two or more Loan Groups, if on any Distribution Date Compensating Interest provided
pursuant to this Section 3.16(e) is less than Prepayment Interest Shortfalls incurred on the
Mortgage Loans in connection with Principal Prepayments in Full and Curtailments made in the prior
calendar month, such Compensating Interest shall be allocated on such Distribution Date to the
Available Distribution Amount for each Loan Group on a pro rata basis in accordance with the
respective amounts of such Prepayment Interest Shortfalls incurred on the Mortgage Loans in such
Loan Group in respect of such Distribution Date.

     Bankruptcy Code: The Bankruptcy Code of 1978, as amended.

     Bankruptcy Loss: With respect to any Mortgage Loan, a Deficient Valuation or Debt
Service Reduction; provided, however, that neither a Deficient Valuation nor a Debt
Service Reduction shall be deemed a Bankruptcy Loss hereunder so long as the Master Servicer has
notified the Trustee in writing that the Master Servicer is diligently pursuing any remedies that
may exist in connection with the representations and warranties made regarding the related Mortgage
Loan and either (A) the related Mortgage Loan is not in default with regard to payments due
thereunder or (B) delinquent payments of principal and interest under the related Mortgage Loan and
any premiums on any applicable primary hazard insurance policy and any related escrow payments in
respect of such Mortgage Loan are being advanced on a current basis by the Master Servicer or a
Subservicer, in either case without giving effect to any Debt Service Reduction.

     Book-Entry Certificate: Any Certificate registered in the name of the Depository or
its nominee, and designated as such in the Preliminary Statement to the Series Supplement.

     Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day on which
banking institutions in the State of New York, the State of Michigan, the State of California, the
State of Illinois or the State of Pennsylvania (and such other state or states in which the
Custodial Account or the Certificate Account are at the time located) are required or authorized by
law or executive order to be closed.

5

 

     Buydown Funds: Any amount contributed by the seller of a Mortgaged Property, the
Company or other source in order to enable the Mortgagor to reduce the payments required to be made
from the Mortgagor’s funds in the early years of a Mortgage Loan. Buydown Funds are not part of
the Trust Fund prior to deposit into the Custodial or Certificate Account.

     Buydown Mortgage Loan: Any Mortgage Loan as to which a specified amount of interest
is paid out of related Buydown Funds in accordance with a related buydown agreement.

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

     Capitalization Reimbursement Amount: With respect to any Distribution Date and, with
respect to any Mortgage Pool comprised of two or more Loan Groups, each Loan Group, the amount of
Advances or Servicing Advances that were added to the Stated Principal Balance of all Mortgage
Loans or, if the Mortgage Pool is comprised of two or more Loan Groups, on the Mortgage Loans in
the related Loan Group, during the prior calendar month and reimbursed to the Master Servicer or
Subservicer on or prior to such Distribution Date pursuant to Section 3.10(a)(vii), plus the
Capitalization Reimbursement Shortfall Amount remaining unreimbursed from any prior Distribution
Date and reimbursed to the Master Servicer or Subservicer on or prior to such Distribution Date.

     Capitalization Reimbursement Shortfall Amount: With respect to any Distribution Date
and, with respect to any Mortgage Pool comprised of two or more Loan Groups, each Loan Group, the
amount, if any, by which the amount of Advances or Servicing Advances that were added to the Stated
Principal Balance of all Mortgage Loans (or, if the Mortgage Pool is comprised of two or more Loan
Groups, on the Mortgage Loans in the related Loan Group) during the preceding calendar month
exceeds the amount of principal payments on the Mortgage Loans included in the Available
Distribution Amount (or, if the Mortgage Pool is comprised of two or more Loan Groups, Available
Distribution Amount for the related Loan Group) for that Distribution Date.

     Cash Liquidation: As to any defaulted Mortgage Loan other than a Mortgage Loan as to
which an REO Acquisition occurred, a determination by the Master Servicer that it has received all
Insurance Proceeds, Liquidation Proceeds and other payments or cash recoveries which the Master
Servicer reasonably and in good faith expects to be finally recoverable with respect to such
Mortgage Loan.

     Certificate Account Deposit Date: As to any Distribution Date, the Business Day prior
thereto.

     Certificateholder or Holder: The Person in whose name a Certificate is registered in
the Certificate Register, and, in respect of any Insured Certificates, the Certificate Insurer to
the extent of Cumulative Insurance Payments, except that neither a Disqualified Organization nor a
Non-United States Person shall be a holder of a Class R Certificate for purposes hereof and, solely
for the purpose of giving any consent or direction pursuant to this Agreement, any Certificate,
other than a Class R Certificate, registered in the name of the Company, the Master

6

 

Servicer or any Subservicer or any Affiliate thereof and any Certificate (other than a Class R
Certificate or Class SB Certificate) that has been paid-in-full shall be deemed not to be
outstanding and the Percentage Interest or Voting Rights evidenced thereby shall not be taken into
account in determining whether the requisite amount of Percentage Interests or Voting Rights
necessary to effect any such consent or direction has been obtained. All references herein to
“Holders” or “Certificateholders” shall reflect the rights of Certificate Owners as they may
indirectly exercise such rights through the Depository and participating members thereof, except as
otherwise specified herein; provided, however, that the Trustee shall be required
to recognize as a “Holder” or “Certificateholder” only the Person in whose name a Certificate is
registered in the Certificate Register.

     Certificate Insurer: As defined in the Series Supplement.

     Certificate Owner: With respect to a Book-Entry Certificate, the Person who is the
beneficial owner of such Certificate, as reflected on the books of an indirect participating
brokerage firm for which a Depository Participant acts as agent, if any, and otherwise on the books
of a Depository Participant, if any, and otherwise on the books of the Depository.

     Certificate Principal Balance: With respect to each Certificate (other than any
Interest Only Certificate), on any date of determination, an amount equal to:

	 	(i)	 	the Initial Certificate Principal Balance of such Certificate as specified on
the face thereof, plus
	 
	 	(ii)	 	any Subsequent Recoveries added to the Certificate Principal Balance of such
Certificate pursuant to Section 4.02, plus
	 
	 	(iii)	 	in the case of each Accrual Certificate, an amount equal to the aggregate
Accrued Certificate Interest added to the Certificate Principal Balance thereof prior
to such date of determination, minus
	 
	 	(iv)	 	the sum of (x) the aggregate of all amounts previously distributed with
respect to such Certificate (or any predecessor Certificate) and applied to reduce the
Certificate Principal Balance thereof pursuant to Section 4.02(a) and (y) the
aggregate of all reductions in Certificate Principal Balance deemed to have occurred
in connection with Realized Losses which were previously allocated to such Certificate
(or any predecessor Certificate) pursuant to Section 4.05;

provided, that the Certificate Principal Balance of each Certificate of the Class of Subordinate
Certificates with the Lowest Priority at any given time shall be further reduced by an amount equal
to the Percentage Interest represented by such Certificate multiplied by the excess, if any, of (A)
the then aggregate Certificate Principal Balance of all Classes of Certificates then outstanding
over (B) the then aggregate Stated Principal Balance of the Mortgage Loans.

     Certificate Register and Certificate Registrar: The register maintained and the
registrar appointed pursuant to Section 5.02.

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     Class: Collectively, all of the Certificates bearing the same designation. The
initial Class A-V Certificates and any Subclass thereof issued pursuant to Section 5.01(c) shall be
a single Class for purposes of this Agreement.

     Class A-P Certificate: Any one of the Certificates designated as a Class A-P
Certificate.

     Class A-P Collection Shortfall: With respect to the Cash Liquidation or REO
Disposition of a Discount Mortgage Loan, any Distribution Date and, with respect to any Mortgage
Pool comprised of two or more Loan Groups, each Loan Group, the excess of the amount described in
clause (C)(1) of the definition of Class A-P Principal Distribution Amount (for the related Loan
Group, if applicable) over the amount described in clause (C)(2) of such definition.

     Class A-P Principal Distribution Amount: With respect to any Distribution Date and,
with respect to any Mortgage Pool comprised of two or more Loan Groups, each Loan Group, an amount
equal to the aggregate of:

     (A) the related Discount Fraction of the principal portion of each Monthly Payment on
each Discount Mortgage Loan (or, with respect to any Mortgage Pool comprised of two or more
Loan Groups, each Discount Mortgage Loan in the related Loan Group) due during the related
Due Period, whether or not received on or prior to the related Determination Date, minus the
Discount Fraction of the principal portion of any related Debt Service Reduction which
together with other Bankruptcy Losses exceeds the Bankruptcy Amount;

     (B) the related Discount Fraction of the principal portion of all unscheduled
collections on each Discount Mortgage Loan (or, with respect to any Mortgage Pool comprised
of two or more Loan Groups, each Discount Mortgage Loan in the related Loan Group) received
during the preceding calendar month or, in the case of Principal Prepayments in Full, during
the related Prepayment Period (other than amounts received in connection with a Cash
Liquidation or REO Disposition of a Discount Mortgage Loan described in clause (C) below),
including Principal Prepayments in Full, Curtailments, Subsequent Recoveries and repurchases
(including deemed repurchases under Section 3.07(b)) of such Discount Mortgage Loans (or, in
the case of a substitution of a Deleted Mortgage Loan, the Discount Fraction of the amount
of any shortfall deposited in the Custodial Account in connection with such substitution);

     (C) in connection with the Cash Liquidation or REO Disposition of a Discount Mortgage
Loan (or, with respect to any Mortgage Pool comprised of two or more Loan Groups, each
Discount Mortgage Loan in the related Loan Group) that occurred during the preceding
calendar month (or was deemed to have occurred during such period in accordance with Section
3.07(b)) that did not result in any Excess Special Hazard Losses, Excess Fraud Losses,
Excess Bankruptcy Losses or Extraordinary Losses, an amount equal to the lesser of (1) the
applicable Discount Fraction of the Stated Principal Balance of such Discount Mortgage Loan
immediately prior to such Distribution Date and (2) the aggregate amount of the collections
on such Mortgage Loan to the extent applied as recoveries of principal;

8

 

     (D) any amounts allocable to principal for any previous Distribution Date (calculated
pursuant to clauses (A) through (C) above) that remain undistributed; and

     (E) the amount of any Class A-P Collection Shortfalls for such Distribution Date and
the related Loan Group, if applicable, and the amount of any Class A-P Collection Shortfalls
(for the related Loan Group, if applicable) remaining unpaid for all previous Distribution
Dates, but only to the extent of the Eligible Funds for such Distribution Date; minus

     (F) the related Discount Fraction of the portion of the Capitalization Reimbursement
Amount (for the related Loan Group, if applicable) for such Distribution Date, if any,
related to each Discount Mortgage Loan (in the related Loan Group, if applicable).

     Notwithstanding the foregoing, with respect to any Distribution Date on and after the Credit
Support Depletion Date, the Class A-P Principal Distribution Amount (for a Loan Group, if
applicable) shall equal the excess of (i) the sum of (a) the related Discount Fraction of the
principal portion of each Monthly Payment on each Discount Mortgage Loan (in the related Loan
Group, if applicable) received or advanced prior to the related Determination Date and not
previously distributed minus the Discount Fraction of the principal portion of any related Debt
Service Reduction which together with other Bankruptcy Losses exceeds the Bankruptcy Amount and (b)
the related Discount Fraction of the aggregate amount of unscheduled collections described in
clauses (B) and (C) above over (ii) the amount calculated pursuant to clause (F) above.

     Class A-V Certificate: Any one of the Certificates designated as a Class A-V
Certificate, including any Subclass thereof.

     Class B Certificate: Any one of the Certificates designated as a Class B-1
Certificate, Class B-2 Certificate or Class B-3 Certificate.

     Class M Certificate: Any one of the Certificates designated as a Class M-1
Certificate, Class M-2 Certificate or Class M-3 Certificate.

     Class P Certificate: Any one of the Certificates designated as a Class P Certificate.

     Class R Certificate: Any one of the Certificates designated as a Class R Certificate.

     Class SB Certificate: Any one of the Certificates designated as a Class SB
Certificate.

     Class X Certificate: Any one of the Certificates designated as a Class X Certificate.

     Closing Date: As defined in the Series Supplement.

     Code: The Internal Revenue Code of 1986, as amended.

     Commission: The Securities and Exchange Commission.

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     Compensating Interest: With respect to any Distribution Date, an amount equal to
Prepayment Interest Shortfalls resulting from Principal Prepayments in Full during the related
Prepayment Period and Curtailments during the prior calendar month and included in the Available
Distribution Amount for such Distribution Date, but not more than the lesser of (a) one-twelfth of
0.125% of the Stated Principal Balance of the Mortgage Loans immediately preceding such
Distribution Date and (b) all income and gain on amounts held in the Custodial Account and the
Certificate Account and payable to the Certificateholders with respect to such Distribution Date.

     Compliance With Laws Representation: The following representation and warranty (or
any representation and warranty that is substantially similar) made by [_______________] in Section
4 of Assignment Agreement: “Each Mortgage Loan at the time it was made complied in all material
respects with applicable local, state, and federal laws, including, but not limited to, all
applicable anti-predatory lending laws”.

     Cooperative: A private, cooperative housing corporation which owns or leases land and
all or part of a building or buildings, including apartments, spaces used for commercial purposes
and common areas therein and whose board of directors authorizes, among other things, the sale of
Cooperative Stock.

     Cooperative Apartment: A dwelling unit in a multi-dwelling building owned or leased
by a Cooperative, which unit the Mortgagor has an exclusive right to occupy pursuant to the terms
of a proprietary lease or occupancy agreement.

     Cooperative Lease: With respect to a Cooperative Loan, the proprietary lease or
occupancy agreement with respect to the Cooperative Apartment occupied by the Mortgagor and
relating to the related Cooperative Stock, which lease or agreement confers an exclusive right to
the holder of such Cooperative Stock to occupy such apartment.

     Cooperative Loans: Any of the Mortgage Loans made in respect of a Cooperative
Apartment, evidenced by a Mortgage Note and secured by (i) a Security Agreement, (ii) the related
Cooperative Stock Certificate, (iii) an assignment of the Cooperative Lease, (iv) financing
statements and (v) a stock power (or other similar instrument), and ancillary thereto, a
recognition agreement between the Cooperative and the originator of the Cooperative Loan, each of
which was transferred and assigned to the Trustee pursuant to Section 2.01 and are from time to
time held as part of the Trust Fund.

     Cooperative Stock: With respect to a Cooperative Loan, the single outstanding class
of stock, partnership interest or other ownership instrument in the related Cooperative.

     Cooperative Stock Certificate: With respect to a Cooperative Loan, the stock
certificate or other instrument evidencing the related Cooperative Stock.

     Credit Repository: Equifax, Transunion and Experian, or their successors in interest.

     Credit Support Depletion Date: The first Distribution Date on which the Certificate
Principal Balances of the Subordinate Certificates have been reduced to zero.

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     Cumulative Insurance Payments: As defined in the Series Supplement.

     Curtailment: Any Principal Prepayment made by a Mortgagor which is not a Principal
Prepayment in Full.

     Custodial Account: The custodial account or accounts created and maintained pursuant
to Section 3.07 in the name of a depository institution, as custodian for holders of the
Certificates, for the holders of certain other interests in mortgage loans serviced or sold by the
Master Servicer and for the Master Servicer, into which the amounts set forth in Section 3.07 shall
be deposited directly. Any such account or accounts shall be an Eligible Account.

     Custodial Agreement: An agreement that may be entered into among the Company, the
Master Servicer, the Trustee and a Custodian pursuant to which the Custodian will hold certain
documents relating to the Mortgage Loans on behalf of the Trustee.

     Custodial File: Any mortgage loan document in the Mortgage File that is required to
be delivered to the Trustee or Custodian pursuant to Section 2.01(b) of this Agreement.

     Custodian: A custodian appointed pursuant to a Custodial Agreement.

     Cut-off Date Principal Balance: As to any Mortgage Loan, the unpaid principal balance
thereof at the Cut-off Date after giving effect to all installments of principal due on or prior
thereto (or due during the month of the Cut-off Date), whether or not received.

     DBRS: DBRS, Inc., or its successor in interest.

     Debt Service Reduction: With respect to any Mortgage Loan, a reduction in the
scheduled Monthly Payment for such Mortgage Loan by a court of competent jurisdiction in a
proceeding under the Bankruptcy Code, except such a reduction constituting a Deficient Valuation or
any reduction that results in a permanent forgiveness of principal.

     Deficient Valuation: With respect to any Mortgage Loan, a valuation by a court of
competent jurisdiction of the Mortgaged Property in an amount less than the then outstanding
indebtedness under the Mortgage Loan, or any reduction in the amount of principal to be paid in
connection with any scheduled Monthly Payment that constitutes a permanent forgiveness of
principal, which valuation or reduction results from a proceeding under the Bankruptcy Code.

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

     Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced with a Qualified
Substitute Mortgage Loan.

     Delinquent: As used herein, a Mortgage Loan is considered to be: “30 to 59 days” or
“30 or more days” delinquent when a payment due on any scheduled due date remains unpaid as of the
close of business on the last business day immediately prior to the next following monthly
scheduled due date; “60 to 89 days” or “60 or more days” delinquent when a payment due on any
scheduled due date remains unpaid as of the close of business on the last business day immediately
prior to the second following monthly scheduled due date; and so on. The

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determination as to whether a Mortgage Loan falls into these categories is made as of the
close of business on the last business day of each month. For example, a Mortgage Loan with a
payment due on July 1 that remained unpaid as of the close of business on July 31 would then be
considered to be 30 to 59 days delinquent. Delinquency information as of the Cut-off Date is
determined and prepared as of the close of business on the last business day immediately prior to
the Cut-off Date.

     Depository: The Depository Trust Company, or any successor Depository hereafter
named. The nominee of the initial Depository for purposes of registering those Certificates that
are to be Book-Entry Certificates is Cede & Co. The Depository shall at all times be a “clearing
corporation” as defined in Section 8-102(a)(5) of the Uniform Commercial Code of the State of New
York and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities
Exchange Act of 1934, as amended.

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

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

     Determination Date: As defined in the Series Supplement.

     Discount Fraction: With respect to each Discount Mortgage Loan, the fraction
expressed as a percentage, the numerator of which is the Discount Net Mortgage Rate minus the Net
Mortgage Rate (or the initial Net Mortgage Rate with respect to any Discount Mortgage Loans as to
which the Mortgage Rate is modified pursuant to 3.07(a)) for such Mortgage Loan and the denominator
of which is the Discount Net Mortgage Rate. The Discount Fraction with respect to each Discount
Mortgage Loan is set forth as an exhibit attached to the Series Supplement.

     Discount Mortgage Loan: Any Mortgage Loan having a Net Mortgage Rate (or the initial
Net Mortgage Rate) of less than the Discount Net Mortgage Rate per annum and any Mortgage Loan
deemed to be a Discount Mortgage Loan pursuant to the definition of Qualified Substitute Mortgage
Loan.

     Discount Net Mortgage Rate: As defined in the Series Supplement.

     Disqualified Organization: Any organization defined as a “disqualified organization”
under Section 860E(e)(5) of the Code, and if not otherwise included, any of the following: (i) the
United States, any State or political subdivision thereof, any possession of the United States, or
any agency or instrumentality of any of the foregoing (other than an instrumentality which is a
corporation if all of its activities are subject to tax and, except for Freddie Mac, a majority of
its board of directors is not selected by such governmental unit), (ii) a foreign government, any
international organization, or any agency or instrumentality of any of the foregoing, (iii) any
organization (other than certain farmers’ cooperatives described in Section 521 of the Code) which
is exempt from the tax imposed by Chapter 1 of the Code (including the tax imposed by Section 511
of the Code on unrelated business taxable income), (iv) rural electric and telephone cooperatives
described in Section 1381(a)(2)(C) of the Code, (v) any “electing large

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partnership,” as defined in Section 775(a) of the Code and (vi) any other Person so designated
by the Trustee based upon an Opinion of Counsel that the holding of an Ownership Interest in a
Class R Certificate by such Person may cause the Trust Fund or any Person having an Ownership
Interest in any Class of Certificates (other than such Person) to incur a liability for any federal
tax imposed under the Code that would not otherwise be imposed but for the Transfer of an Ownership
Interest in a Class R Certificate to such Person. The terms “United States”, “State” and
“international organization” shall have the meanings set forth in Section 7701 of the Code or
successor provisions.

     Distribution Date: The 25th day of any month beginning in the month immediately
following the month of the initial issuance of the Certificates or, if such 25th day is not a
Business Day, the Business Day immediately following such 25th day.

     Due Date: With respect to any Distribution Date and any Mortgage Loan, the day during
the related Due Period on which the Monthly Payment is due.

     Due Period: With respect to any Distribution Date, the one-month period set forth in
the Series Supplement.

     Eligible Account: An account that is any of the following: (i) maintained with a
depository institution the debt obligations of which have been rated by each Rating Agency in its
highest rating available; provided that if the rating of such depository institution falls below
Standard and Poor’s short-term rating of A-2, such depository institution will be replaced within
30 days, or (ii) in the case of the Custodial Account, a trust account or accounts maintained in
the corporate trust department of the Trustee, or (iii) in the case of the Certificate Account, a
trust account or accounts maintained in the corporate trust department of the Trustee, or (iv) an
account or accounts of a depository institution acceptable to each Rating Agency (as evidenced in
writing by each Rating Agency that use of any such account as the Custodial Account or the
Certificate Account will not reduce the rating assigned to any Class of Certificates by such Rating
Agency below the then-current rating assigned to such Certificates).

     Event of Default: As defined in Section 7.01.

     Excess Bankruptcy Loss: Any Bankruptcy Loss, or portion thereof, which exceeds the
then applicable Bankruptcy Amount.

     Excess Fraud Loss: Any Fraud Loss, or portion thereof, which exceeds the then
applicable Fraud Loss Amount.

     Excess Special Hazard Loss: Any Special Hazard Loss, or portion thereof, that exceeds
the then applicable Special Hazard Amount.

     Excess Subordinate Principal Amount: With respect to any Distribution Date on which
the aggregate Certificate Principal Balance of the Class of Subordinate Certificates then
outstanding with the Lowest Priority is to be reduced to zero and on which Realized Losses are to
be allocated to such class or classes, the excess, if any, of (i) the amount that would otherwise
be distributable in respect of principal on such class or classes of Certificates on such
Distribution Date over (ii) the excess, if any, of the aggregate Certificate Principal Balance of

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such class or classes of Certificates immediately prior to such Distribution Date over the
aggregate amount of Realized Losses to be allocated to such classes of Certificates on such
Distribution Date as reduced by any amount calculated pursuant to clause (E) of the definition of
Class A-P Principal Distribution Amount. With respect to any Mortgage Pool that is comprised of two
or more Loan Groups, the Excess Subordinate Principal Amount will be allocated between each Loan
Group on a pro rata basis in accordance with the amount of Realized Losses attributable to each
Loan Group and allocated to the Certificates on such Distribution Date.

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

     Extraordinary Events: Any of the following conditions with respect to a Mortgaged
Property (or, with respect to a Cooperative Loan, the Cooperative Apartment) or Mortgage Loan
causing or resulting in a loss which causes the liquidation of such Mortgage Loan:

     (a) losses that are of the type that would be covered by the fidelity bond and the
errors and omissions insurance policy required to be maintained pursuant to Section 3.12(b)
but are in excess of the coverage maintained thereunder;

     (b) nuclear reaction or nuclear radiation or radioactive contamination, all whether
controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote
or be in whole or in part caused by, contributed to or aggravated by a peril covered by the
definition of the term “Special Hazard Loss”;

     (c) hostile or warlike action in time of peace or war, including action in hindering,
combating or defending against an actual, impending or expected attack:

     1. by any government or sovereign power, de jure or de facto, or by any
authority maintaining or using military, naval or air forces; or

     2. by military, naval or air forces; or

     3. by an agent of any such government, power, authority or forces;

     (d) any weapon of war employing atomic fission or radioactive force whether in time of
peace or war; or

     (e) insurrection, rebellion, revolution, civil war, usurped power or action taken by
governmental authority in hindering, combating or defending against such an occurrence,
seizure or destruction under quarantine or customs regulations, confiscation by order of any
government or public authority; or risks of contraband or illegal transportation or trade.

     Extraordinary Losses: Any loss incurred on a Mortgage Loan caused by or resulting
from an Extraordinary Event.

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

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     FDIC: Federal Deposit Insurance Corporation or any successor thereto.

     Final Distribution Date: The Distribution Date on which the final distribution in
respect of the Certificates will be made pursuant to Section 9.01, which Final Distribution Date
shall in no event be later than the end of the 90-day liquidation period described in Section 9.02.

     Fitch: Fitch Ratings or its successor in interest.

     Foreclosure Profits: As to any Distribution Date or related Determination Date and
any Mortgage Loan, the excess, if any, of Liquidation Proceeds, Insurance Proceeds and REO Proceeds
(net of all amounts reimbursable therefrom pursuant to Section 3.10(a)(ii)) in respect of each
Mortgage Loan or REO Property for which a Cash Liquidation or REO Disposition occurred in the
related Prepayment Period over the sum of the unpaid principal balance of such Mortgage Loan or REO
Property (determined, in the case of an REO Disposition, in accordance with Section 3.14) plus
accrued and unpaid interest at the Mortgage Rate on such unpaid principal balance from the Due Date
to which interest was last paid by the Mortgagor to the first day of the month following the month
in which such Cash Liquidation or REO Disposition occurred.

     Form 10-K Certification: As defined in Section 4.03(e).

     Fraud Losses: Realized Losses on Mortgage Loans as to which there was fraud in the
origination of such Mortgage Loan.

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

     Highest Priority: As of any date of determination, the Class of Subordinate
Certificates then outstanding with a Certificate Principal Balance greater than zero, with the
earliest priority for payments pursuant to Section 4.02(a), in the following order: Class M-1,
Class M-2, Class M-3, Class B-1, Class B-2 and Class B-3 Certificates.

     Independent: When used with respect to any specified Person, means such a Person who
(i) is in fact independent of the Company, the Master Servicer and the Trustee, or any Affiliate
thereof, (ii) does not have any direct financial interest or any material indirect financial
interest in the Company, the Master Servicer or the Trustee or in an Affiliate thereof, and (iii)
is not connected with the Company, the Master Servicer or the Trustee as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar functions.

     Initial Certificate Principal Balance: With respect to each Class of Certificates,
the Certificate Principal Balance of such Class of Certificates as of the Cut-off Date, as set
forth in the Series Supplement.

     Initial Monthly Payment Fund: An amount representing scheduled principal amortization
and interest at the Net Mortgage Rate for the Due Date in the first Due Period commencing
subsequent to the Cut-off Date for those Mortgage Loans for which the Trustee will not be entitled
to receive such payment, and as more specifically defined in the Series Supplement.

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     Initial Notional Amount: With respect to any Class or Subclass of Interest Only
Certificates, the amount initially used as the principal basis for the calculation of any interest
payment amount, as more specifically defined in the Series Supplement.

     Initial Subordinate Class Percentage: As defined in the Series Supplement.

     Insurance Proceeds: Proceeds paid in respect of the Mortgage Loans pursuant to any
Primary Insurance Policy or any other related insurance policy covering a Mortgage Loan (excluding
any Certificate Policy (as defined in the Series Supplement)), to the extent such proceeds are
payable to the mortgagee under the Mortgage, any Subservicer, the Master Servicer or the Trustee
and are not applied to the restoration of the related Mortgaged Property (or, with respect to a
Cooperative Loan, the related Cooperative Apartment) or released to the Mortgagor in accordance
with the procedures that the Master Servicer would follow in servicing mortgage loans held for its
own account.

     Insurer: Any named insurer under any Primary Insurance Policy or any successor
thereto or the named insurer in any replacement policy.

     Interest Accrual Period: As defined in the Series Supplement.

     Interest Only Certificates: A Class or Subclass of Certificates not entitled to
payments of principal, and designated as such in the Series Supplement. The Interest Only
Certificates will have no Certificate Principal Balance.

     Interim Certification: As defined in Section 2.02.

     International Borrower: In connection with any Mortgage Loan, a borrower who is (a) a
United States citizen employed in a foreign country, (b) a non-permanent resident alien employed in
the United States or (c) a citizen of a country other than the United States with income derived
from sources outside the United States.

     Junior Certificateholder: The Holder of not less than 95% of the Percentage Interests
of the Junior Class of Certificates.

     Junior Class of Certificates: The Class of Subordinate Certificates outstanding as of
the date of the repurchase of a Mortgage Loan pursuant to Section 4.07 herein that has the Lowest
Priority.

     Late Collections: With respect to any Mortgage Loan, all amounts received during any
Due Period, whether as late payments of Monthly Payments or as Insurance Proceeds, Liquidation
Proceeds or otherwise, which represent late payments or collections of Monthly Payments due but
delinquent for a previous Due Period and not previously recovered.

     Liquidation Proceeds: Amounts (other than Insurance Proceeds) received by the Master
Servicer in connection with the taking of an entire Mortgaged Property by exercise of the power of
eminent domain or condemnation or in connection with the liquidation of a defaulted Mortgage Loan
through trustee’s sale, foreclosure sale or otherwise, other than REO Proceeds.

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     Loan Group: Any group of Mortgage Loans designated as a separate loan group in the
Series Supplement. The Certificates relating to each Loan Group will be designated in the Series
Supplement.

     Loan-to-Value Ratio: As of any date, the fraction, expressed as a percentage, the
numerator of which is the current principal balance of the related Mortgage Loan at the date of
determination and the denominator of which is the Appraised Value of the related Mortgaged
Property.

     Lower Priority: As of any date of determination and any Class of Subordinate
Certificates, any other Class of Subordinate Certificates then outstanding with a later priority
for payments pursuant to Section 4.02 (a).

     Lowest Priority: As of any date of determination, the Class of Subordinate
Certificates then outstanding with a Certificate Principal Balance greater than zero, with the
latest priority for payments pursuant to Section 4.02(a), in the following order: Class B-3, Class
B-2, Class B-1, Class M-3, Class M-2 and Class M-1 Certificates.

     Maturity Date: The latest possible maturity date, solely for purposes of Section
1.860G-1(a)(4)(iii) of the Treasury regulations, by which the Certificate Principal Balance of each
Class of Certificates (other than the Interest Only Certificates which have no Certificate
Principal Balance) and each Uncertificated REMIC Regular Interest would be reduced to zero, as
designated in the Series Supplement.

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

     MERS® System: The system of recording transfers of Mortgages electronically
maintained by MERS.

     MIN: The Mortgage Identification Number for Mortgage Loans registered with MERS on
the MERS® System.

     MLCC: Merrill Lynch Credit Corporation, or its successor in interest.

     Modified Mortgage Loan: Any Mortgage Loan that has been the subject of a Servicing
Modification.

     Modified Net Mortgage Rate: As to any Mortgage Loan that is the subject of a
Servicing Modification, the Net Mortgage Rate minus the rate per annum by which the Mortgage Rate
on such Mortgage Loan was reduced.

     MOM Loan: With respect to any Mortgage Loan, MERS acting as the mortgagee of such
Mortgage Loan, solely as nominee for the originator of such Mortgage Loan and its successors and
assigns, at the origination thereof.

     Monthly Payment: With respect to any Mortgage Loan (including any REO Property) and
any Due Date, the payment of principal and interest due thereon in accordance with the

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amortization schedule at the time applicable thereto (after adjustment, if any, for
Curtailments and for Deficient Valuations occurring prior to such Due Date but before any
adjustment to such amortization schedule by reason of any bankruptcy, other than a Deficient
Valuation, or similar proceeding or any moratorium or similar waiver or grace period and before any
Servicing Modification that constitutes a reduction of the interest rate on such Mortgage Loan).

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

     Mortgage: With respect to each Mortgage Note related to a Mortgage Loan which is not
a Cooperative Loan, the mortgage, deed of trust or other comparable instrument creating a first
lien on an estate in fee simple or leasehold interest in real property securing a Mortgage Note.

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

     Mortgage Loans: Such of the mortgage loans transferred and assigned to the Trustee
pursuant to Section 2.01 as from time to time are held or deemed to be held as a part of the Trust
Fund, the Mortgage Loans originally so held being identified in the initial Mortgage Loan Schedule,
and Qualified Substitute Mortgage Loans held or deemed held as part of the Trust Fund including,
without limitation, (i) with respect to each Cooperative Loan, the related Mortgage Note, Security
Agreement, Assignment of Proprietary Lease, Cooperative Stock Certificate, Cooperative Lease and
Mortgage File and all rights appertaining thereto and (ii) with respect to each Mortgage Loan other
than a Cooperative Loan, each related Mortgage Note, Mortgage and Mortgage File and all rights
appertaining thereto.

     Mortgage Loan Schedule: As defined in the Series Supplement.

     Mortgage Note: The originally executed note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan, together with any modification
thereto.

     Mortgage Pool: The pool of mortgage loans, including all Loan Groups, if any,
consisting of the Mortgage Loans.

     Mortgage Rate: As to any Mortgage Loan, the interest rate borne by the related
Mortgage Note, or any modification thereto other than a Servicing Modification.

     Mortgaged Property: The underlying real property securing a Mortgage Loan or, with
respect to a Cooperative Loan, the related Cooperative Lease and Cooperative Stock.

     Mortgagor: The obligor on a Mortgage Note.

     Net Mortgage Rate: As to each Mortgage Loan, a per annum rate of interest equal to
the Adjusted Mortgage Rate.

     Non-Discount Mortgage Loan: A Mortgage Loan that is not a Discount Mortgage Loan.

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     Non-Primary Residence Loans: The Mortgage Loans designated as secured by second or
vacation residences, or by non-owner occupied residences, on the Mortgage Loan Schedule.

     Non-United States Person: Any Person other than a United States Person.

     Nonrecoverable Advance: Any Advance or Subservicer Advance previously made or
proposed to be made by the Master Servicer or Subservicer (as applicable) in respect of a Mortgage
Loan (other than a Deleted Mortgage Loan) which, in the good faith judgment of the Master Servicer,
will not, or, in the case of a proposed Advance, would not, be ultimately recoverable by the Master
Servicer from related Late Collections, Insurance Proceeds, Liquidation Proceeds, REO Proceeds or
amounts reimbursable to the Master Servicer pursuant to Section 4.02(a) hereof. To the extent that
any Mortgagor is not obligated under the related Mortgage documents to pay or reimburse any portion
of any Servicing Advances that are outstanding with respect to the related Mortgage Loan as a
result of a modification of such Mortgage Loan by the Master Servicer, which forgives amounts which
the Master Servicer or Subservicer had previously advanced, and the Master Servicer determines that
no other source of payment or reimbursement for such Advances is available to it, such Servicing
Advances shall be deemed to be Nonrecoverable Advances. The determination by the Master Servicer
that it has made a Nonrecoverable Advance or that any proposed Advance would constitute a
Nonrecoverable Advance, shall be evidenced by an Officers’ Certificate delivered to the Company,
the Trustee and any Certificate Insurer.

     Nonsubserviced Mortgage Loan: Any Mortgage Loan that, at the time of reference
thereto, is not subject to a Subservicing Agreement.

     Notional Amount: With respect to any Class or Subclass of Interest Only Certificates,
an amount used as the principal basis for the calculation of any interest payment amount, as more
specifically defined in the Series Supplement.

     Officers’ Certificate: A certificate signed by the Chairman of the Board, the
President or a Vice President or Assistant Vice President, or a Director or Managing Director, and
by the Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant Secretaries of the
Company or the Master Servicer, as the case may be, and delivered to the Trustee, as required by
this Agreement.

     Opinion of Counsel: A written opinion of counsel acceptable to the Trustee and the
Master Servicer, who may be counsel for the Company or the Master Servicer, provided that any
Opinion of Counsel (i) referred to in the definition of “Disqualified Organization” or (ii)
relating to the qualification of any REMIC formed under the Series Supplement or compliance with
the REMIC Provisions must, unless otherwise specified, be an opinion of Independent counsel.

     Outstanding Mortgage Loan: As to any Due Date, a Mortgage Loan (including an REO
Property) which was not the subject of a Principal Prepayment in Full, Cash Liquidation or REO
Disposition and which was not purchased, deleted or substituted for prior to such Due Date pursuant
to Section 2.02, 2.03, 2.04 or 4.07.

19

 

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

     Pass-Through Rate: As defined in the Series Supplement.

     Paying Agent: The Trustee or any successor Paying Agent appointed by the Trustee.

     Percentage Interest: With respect to any Certificate (other than a Class R
Certificate), the undivided percentage ownership interest in the related Class evidenced by such
Certificate, which percentage ownership interest shall be equal to the Initial Certificate
Principal Balance thereof or Initial Notional Amount (in the case of any Interest Only Certificate)
thereof divided by the aggregate Initial Certificate Principal Balance or the aggregate of the
Initial Notional Amounts, as applicable, of all the Certificates of the same Class. With respect
to a Class R Certificate, the interest in distributions to be made with respect to such Class
evidenced thereby, expressed as a percentage, as stated on the face of each such Certificate.

     Permitted Investments: One or more of the following:

     (i) obligations of or guaranteed as to timely payment of principal and interest by the
United States or any agency or instrumentality thereof when such obligations are backed by
the full faith and credit of the United States;

     (ii) repurchase agreements on obligations specified in clause (i) maturing not more
than one month from the date of acquisition thereof, provided that the unsecured short-term
debt obligations of the party agreeing to repurchase such obligations are at the time rated
by each Rating Agency in its highest short-term rating available;

     (iii) federal funds, certificates of deposit, demand deposits, time deposits and
bankers’ acceptances (which shall each have an original maturity of not more than 90 days
and, in the case of bankers’ acceptances, shall in no event have an original maturity of
more than 365 days or a remaining maturity of more than 30 days) denominated in United
States dollars of any U.S. depository institution or trust company incorporated under the
laws of the United States or any state thereof or of any domestic branch of a foreign
depository institution or trust company; provided that the debt obligations of such
depository institution or trust company at the date of acquisition thereof have been rated
by each Rating Agency in its highest short-term rating available; and, provided further
that, if the original maturity of such short-term obligations of a domestic branch of a
foreign depository institution or trust company shall exceed 30 days, the short-term rating
of such institution shall be at least A-1 in the case of Standard & Poor’s if Standard &
Poor’s is a Rating Agency;

     (iv) commercial paper and demand notes (having original maturities of not more than 365
days) of any corporation incorporated under the laws of the United States or any state
thereof which on the date of acquisition has been rated by each Rating Agency in its highest
short-term rating available; provided that such commercial paper shall have a remaining
maturity of not more than 30 days;

20

 

     (v) any mutual fund, money market fund, common trust fund or other pooled investment
vehicle, the assets of which are limited to instruments that otherwise would constitute
Permitted Investments hereunder and have been rated by each Rating Agency in its highest
short-term rating available (in the case of Standard & Poor’s such rating shall be either
AAAm or AAAm-G), including any such fund that is managed by the Trustee or any affiliate of
the Trustee or for which the Trustee or any of its affiliates acts as an adviser; and

     (vi) other obligations or securities that are acceptable to each Rating Agency as a
Permitted Investment hereunder and will not reduce the rating assigned to any Class of
Certificates by such Rating Agency (without giving effect to any Certificate Policy (as
defined in the Series Supplement) in the case of Insured Certificates (as defined in the
Series Supplement) below the lower of the then-current rating assigned to such Certificates
by such Rating Agency, as evidenced in writing;

provided, however, no instrument shall be a Permitted Investment if it represents,
either (1) the right to receive only interest payments with respect to the underlying debt
instrument or (2) the right to receive both principal and interest payments derived from
obligations underlying such instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity greater than 120% of the yield to maturity at par of such
underlying obligations. References herein to the highest rating available on unsecured long-term
debt shall mean AAA in the case of Standard & Poor’s, AAA in the case of Fitch, AAA in the case of
DBRS and Aaa in the case of Moody’s, and for purposes of this Agreement, any references herein to
the highest rating available on unsecured commercial paper and short-term debt obligations shall
mean the following: A-1 in the case of Standard & Poor’s, P-1 in the case of Moody’s and F-1 in the
case of Fitch; provided, however, that any Permitted Investment that is a short-term debt
obligation rated A-1 by Standard & Poor’s must satisfy the following additional conditions: (i) the
total amount of debt from A-1 issuers must be limited to the investment of monthly principal and
interest payments (assuming fully amortizing collateral); (ii) the total amount of A-1 investments
must not represent more than 20% of the aggregate outstanding Certificate Principal Balance of the
Certificates and each investment must not mature beyond 30 days; (iii) the terms of the debt must
have a predetermined fixed dollar amount of principal due at maturity that cannot vary; and (iv) if
the investments may be liquidated prior to their maturity or are being relied on to meet a certain
yield, interest must be tied to a single interest rate index plus a single fixed spread (if any)
and must move proportionately with that index. Any Permitted Investment may be held by or through
the Trustee or its Affiliates.

     Permitted Transferee: Any Transferee of a Class R Certificate, other than a
Disqualified Organization or Non-United States Person.

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

     P&I Advance: Any advance made by the Master Servicer of a principal or interest
payment with respect to a Mortgage Loan.

21

 

     Pooling and Servicing Agreement or Agreement: With respect to any Series, this
Standard Terms together with the related Series Supplement.

     Pool Stated Principal Balance: As to any Distribution Date, the aggregate of the
Stated Principal Balances of each Mortgage Loan.

     Pool Strip Rate: With respect to each Mortgage Loan, a per annum rate equal to the
excess of (a) the Net Mortgage Rate of such Mortgage Loan over (b) the Discount Net Mortgage Rate
(but not less than 0.00%) per annum.

     Prepayment Distribution Trigger: With respect to any Distribution Date and any Class
of Subordinate Certificates (other than the Class M-1 Certificates), a test that shall be satisfied
if the fraction (expressed as a percentage) equal to the sum of the Certificate Principal Balances
of such Class and each Class of Subordinate Certificates with a Lower Priority than such Class
immediately prior to such Distribution Date divided by the aggregate Stated Principal Balance of
all of the Mortgage Loans (or related REO Properties) immediately prior to such Distribution Date
is greater than or equal to the sum of the related Initial Subordinate Class Percentages of such
Classes of Subordinate Certificates.

     Prepayment Interest Shortfall: As to any Distribution Date and any Mortgage Loan
(other than a Mortgage Loan relating to an REO Property) that was the subject of (a) a Principal
Prepayment in Full during the portion of the related Prepayment Period that falls during the prior
calendar month, an amount equal to the excess of one month’s interest at the Net Mortgage Rate (or
Modified Net Mortgage Rate in the case of a Modified Mortgage Loan) on the Stated Principal Balance
of such Mortgage Loan over the amount of interest (adjusted to the Net Mortgage Rate (or Modified
Net Mortgage Rate in the case of a Modified Mortgage Loan)) paid by the Mortgagor for such month to
the date of such Principal Prepayment in Full or (b) a Curtailment during the prior calendar month,
an amount equal to one month’s interest at the Net Mortgage Rate (or Modified Net Mortgage Rate in
the case of a Modified Mortgage Loan) on the amount of such Curtailment.

     Prepayment Period: As to any Distribution Date and Principal Prepayment in Full, the
period commencing on the 16th day of the month prior to the month in which that Distribution Date
occurs and ending on the 15th day of the month in which such Distribution Date occurs.

     Primary Insurance Policy: Each primary policy of mortgage guaranty insurance or any
replacement policy therefor referred to in Section 2.03(b)(iv) and (v).

     Principal Only Certificates: A Class of Certificates not entitled to payments of
interest, and more specifically designated as such in the Series Supplement.

     Principal Prepayment: Any payment of principal or other recovery on a Mortgage Loan,
including a recovery that takes the form of Liquidation Proceeds or Insurance Proceeds, which is
received in advance of its scheduled Due Date and is not accompanied by an amount as to interest
representing scheduled interest on such payment due on any date or dates in any month or months
subsequent to the month of prepayment.

22

 

     Principal Prepayment in Full: Any Principal Prepayment of the entire principal
balance of a Mortgage Loan that is made by the Mortgagor.

     Program Guide: The GMAC Bank Correspondent Funding Client Guide, as in effect from
time to time.

     Purchase Price: With respect to any Mortgage Loan (or REO Property) required to be or
otherwise purchased on any date pursuant to Section 2.02, 2.03, 2.04 or 4.07, an amount equal to
the sum of (i) 100% of the Stated Principal Balance thereof plus the principal portion of any
related unreimbursed P&I Advances and (ii) unpaid accrued interest at the Adjusted Mortgage Rate
(or Modified Net Mortgage Rate in the case of a Modified Mortgage Loan) (or at the Net Mortgage
Rate (or Modified Net Mortgage Rate in the case of a Modified Mortgage Loan) in the case of a
purchase made by the Master Servicer) on the Stated Principal Balance thereof to the Due Date in
the Due Period related to the Distribution Date occurring in the month following the month of
purchase from the Due Date to which interest was last paid by the Mortgagor.

     Qualified Substitute Mortgage Loan: A Mortgage Loan substituted by [_______________]
or the Company for a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in an Officers’ Certificate delivered to the Trustee, with a copy to the Custodian,

	 	(i)	 	have an outstanding principal balance, after deduction of the principal portion
of the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Mortgage Loan for a Deleted Mortgage Loan, an aggregate
outstanding principal balance, after such deduction), not in excess of the Stated
Principal Balance of the Deleted Mortgage Loan (the amount of any shortfall to be
deposited by [_______________] in the Custodial Account in the month of substitution);
	 
	 	(ii)	 	have a Mortgage Rate and a Net Mortgage Rate no lower than and not more than 1%
per annum higher than the Mortgage Rate and Net Mortgage Rate, respectively, of the
Deleted Mortgage Loan as of the date of substitution;
	 
	 	(iii)	 	have a Loan-to-Value Ratio at the time of substitution no higher than that of
the Deleted Mortgage Loan at the time of substitution;
	 
	 	(iv)	 	have a remaining term to stated maturity not greater than (and not more than
one year less than) that of the Deleted Mortgage Loan;
	 
	 	(v)	 	comply with each representation and warranty set forth in Sections 2.03 and
2.04 hereof and Section 4 of the Assignment Agreement; and
	 
	 	(vi)	 	have a Pool Strip Rate equal to or greater than that of the Deleted Mortgage
Loan.

Notwithstanding any other provisions herein, (x) with respect to any Qualified Substitute Mortgage
Loan substituted for a Deleted Mortgage Loan which was a Discount Mortgage Loan, such Qualified
Substitute Mortgage Loan shall be deemed to be a Discount Mortgage Loan and to have a Discount
Fraction equal to the Discount Fraction of the Deleted Mortgage Loan and (y)

23

 

in the event that the “Pool Strip Rate” of any Qualified Substitute Mortgage Loan as calculated
pursuant to the definition of “Pool Strip Rate” is greater than the Pool Strip Rate of the related
Deleted Mortgage Loan

	 	(i)	 	the Pool Strip Rate of such Qualified Substitute Mortgage Loan shall be equal
to the Pool Strip Rate of the related Deleted Mortgage Loan for purposes of calculating
the Pass-Through Rate on the Class A-V Certificates and

	 	(ii)	 	the excess of the Pool Strip Rate on such Qualified Substitute Mortgage Loan as
calculated pursuant to the definition of “Pool Strip Rate” over the Pool Strip Rate on
the related Deleted Mortgage Loan shall be payable to the Class R Certificates pursuant
to Section 4.02 hereof.

     Rating Agency: Each of the statistical credit rating agencies specified in the
Preliminary Statement of the Series Supplement. If any agency or a successor is no longer in
existence, “Rating Agency” shall be such statistical credit rating agency, or other comparable
Person, designated by the Company, notice of which designation shall be given to the Trustee and
the Master Servicer.

     Realized Loss: With respect to each Mortgage Loan (or REO Property):

	 	(a)	 	as to which a Cash Liquidation or REO Disposition has occurred, an amount (not
less than zero) equal to (i) the Stated Principal Balance of the Mortgage Loan (or REO
Property) as of the date of Cash Liquidation or REO Disposition, plus (ii) interest
(and REO Imputed Interest, if any) at the Net Mortgage Rate from the Due Date as to
which interest was last paid or advanced to Certificateholders up to the Due Date in
the Due Period related to the Distribution Date on which such Realized Loss will be
allocated pursuant to Section 4.05 on the Stated Principal Balance of such Mortgage
Loan (or REO Property) outstanding during each Due Period that such interest was not
paid or advanced, minus (iii) the proceeds, if any, received during the month in which
such Cash Liquidation (or REO Disposition) occurred, to the extent applied as
recoveries of interest at the Net Mortgage Rate and to principal of the Mortgage Loan,
net of the portion thereof reimbursable to the Master Servicer or any Subservicer with
respect to related Advances, Subservicer Advances or other expenses as to which the
Master Servicer or Subservicer is entitled to reimbursement thereunder but which have
not been previously reimbursed,

	 	(b)	 	which is the subject of a Servicing Modification, (i) (1) the amount by which
the interest portion of a Monthly Payment or the principal balance of such Mortgage
Loan was reduced or (2) the sum of any other amounts owing under the Mortgage Loan that
were forgiven and that constitute Servicing Advances that are reimbursable to the
Master Servicer or a Subservicer, and (ii) any such amount with respect to a Monthly
Payment that was or would have been due in the month immediately following the month in
which a Principal Prepayment or the Purchase Price of such Mortgage Loan is received or
is deemed to have been received,

24

 

	 	(c)	 	which has become the subject of a Deficient Valuation, the difference between
the principal balance of the Mortgage Loan outstanding immediately prior to such
Deficient Valuation and the principal balance of the Mortgage Loan as reduced by the
Deficient Valuation, or

	 	(d)	 	which has become the object of a Debt Service Reduction, the amount of such
Debt Service Reduction.

Notwithstanding the above, neither a Deficient Valuation nor a Debt Service Reduction shall be
deemed a Realized Loss hereunder so long as the Master Servicer has notified the Trustee in writing
that the Master Servicer is diligently pursuing any remedies that may exist in connection with the
representations and warranties made regarding the related Mortgage Loan and either (A) the related
Mortgage Loan is not in default with regard to payments due thereunder or (B) delinquent payments
of principal and interest under the related Mortgage Loan and any premiums on any applicable
primary hazard insurance policy and any related escrow payments in respect of such Mortgage Loan
are being advanced on a current basis by the Master Servicer or a Subservicer, in either case
without giving effect to any Debt Service Reduction.

To the extent the Master Servicer receives Subsequent Recoveries with respect to any Mortgage Loan,
the amount of the Realized Loss with respect to that Mortgage Loan will be reduced to the extent
such recoveries are applied to reduce the Certificate Principal Balance of any Class of
Certificates on any Distribution Date.

     Record Date: With respect to each Distribution Date, the close of business on the
last Business Day of the month next preceding the month in which the related Distribution Date
occurs.

     Regular Certificate: Any of the Certificates other than a Class R Certificate.

     Regulation AB: Subpart 229.1100 — Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification
and interpretation as have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (January 7, 2005)) or by
the staff of the Commission, or as may be provided by the Commission or its staff from time to
time.

     Reimbursement Amounts: As defined in Section 3.22.

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

     REMIC Administrator: [______________]. If [______________] is found by a court of
competent jurisdiction to no longer be able to fulfill its obligations as REMIC Administrator under
this Agreement the Master Servicer or Trustee acting as Master Servicer shall appoint a successor
REMIC Administrator, subject to assumption of the REMIC Administrator obligations under this
Agreement.

25

 

     REMIC Provisions: Provisions of the federal income tax law relating to real estate
mortgage investment conduits, which appear at Sections 860A through 860G of Subchapter M of Chapter
1 of the Code, and related provisions, and temporary and final regulations (or, to the extent not
inconsistent with such temporary or final regulations, proposed regulations) and published rulings,
notices and announcements promulgated thereunder, as the foregoing may be in effect from time to
time.

     REO Acquisition: The acquisition by the Master Servicer on behalf of the Trustee for
the benefit of the Certificateholders of any REO Property pursuant to Section 3.14.

     REO Disposition: As to any REO Property, a determination by the Master Servicer that
it has received all Insurance Proceeds, Liquidation Proceeds, REO Proceeds and other payments and
recoveries (including proceeds of a final sale) which the Master Servicer expects to be finally
recoverable from the sale or other disposition of the REO Property.

     REO Imputed Interest: As to any REO Property, for any period, an amount equivalent to
interest (at the Net Mortgage Rate that would have been applicable to the related Mortgage Loan had
it been outstanding) on the unpaid principal balance of the Mortgage Loan as of the date of
acquisition thereof for such period.

     REO Proceeds: Proceeds, net of expenses, received in respect of any REO Property
(including, without limitation, proceeds from the rental of the related Mortgaged Property or, with
respect to a Cooperative Loan, the related Cooperative Apartment) which proceeds are required to be
deposited into the Custodial Account only upon the related REO Disposition.

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

     Reportable Modified Mortgage Loan: Any Mortgage Loan that (i) has been subject to an
interest rate reduction, (ii) has been subject to a term extension or (iii) has had amounts owing
on such Mortgage Loan capitalized by adding such amount to the Stated Principal Balance of such
Mortgage Loan; provided, however, that a Mortgage Loan modified in accordance with
clause (i) above for a temporary period shall not be a Reportable Modified Mortgage Loan if such
Mortgage Loan has not been delinquent in payments of principal and interest for six months since
the date of such modification if that interest rate reduction is not made permanent thereafter.

     Request for Release: A request for release, the forms of which are attached as
Exhibit F hereto, or an electronic request in a form acceptable to the Custodian.

     Required Insurance Policy: With respect to any Mortgage Loan, any insurance policy
which is required to be maintained from time to time under this Agreement, the Program Guide or the
related Subservicing Agreement in respect of such Mortgage Loan.

     Required Surety Payment: With respect to any Additional Collateral Loan that becomes
a Liquidated Mortgage Loan, the lesser of (i) the principal portion of the Realized Loss with
respect to such Mortgage Loan and (ii) the excess, if any, of (a) the amount of Additional

26

 

Collateral required at origination with respect to such Mortgage Loan over (b) the net
proceeds realized by the Subservicer from the related Additional Collateral.

     Responsible Officer: When used with respect to the Trustee, any officer of the
Corporate Trust Department of the Trustee, including any Senior Vice President, any Vice President,
any Assistant Vice President, any Assistant Secretary, any Trust Officer or Assistant Trust
Officer, or any other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers to whom, with respect to a particular matter,
such matter is referred, in each case with direct responsibility for the administration of the
Agreement.

     Retail Certificates: A Senior Certificate, if any, offered in smaller minimum
denominations than other Senior Certificates, and designated as such in the Series Supplement.

     Rule 17g-5: As defined in Section 11.11.

     Rule 17g-5 Website: As defined in Section 11.11.

     Schedule of Discount Fractions: The schedule setting forth the Discount Fractions
with respect to the Discount Mortgage Loans, attached as an exhibit to the Series Supplement.

     Securitization Transaction: Any transaction involving a sale or other transfer of
mortgage loans directly or indirectly to an issuing entity in connection with an issuance of
publicly offered or privately placed, rated or unrated mortgage-backed securities.

     Security Agreement: With respect to a Cooperative Loan, the agreement creating a
security interest in favor of the originator in the related Cooperative Stock.

     Seller: As to any Mortgage Loan, a Person, including any Subservicer, that executed a
Seller’s Agreement applicable to such Mortgage Loan.

     Seller’s Agreement: An agreement for the origination and sale of Mortgage Loans
generally in the form of the Seller Contract referred to or contained in the Program Guide, or in
such other form as has been approved by the Master Servicer and the Company, each containing
representations and warranties in respect of one or more Mortgage Loans consistent in all material
respects with those set forth in the Program Guide.

     Senior Accelerated Distribution Percentage:With respect to any Distribution Date
occurring on or prior to the 60th Distribution Date and, with respect to any Mortgage Pool
comprised of two or more Loan Groups, any Loan Group, 100%. With respect to any Distribution Date
thereafter and any such Loan Group, if applicable, as follows:

     (i) for any Distribution Date after the 60th Distribution Date but on or prior to the
72nd Distribution Date, the related Senior Percentage for such Distribution Date plus 70% of
the related Subordinate Percentage for such Distribution Date;

     (ii) for any Distribution Date after the 72nd Distribution Date but on or prior to the
84th Distribution Date, the related Senior Percentage for such Distribution Date plus 60% of
the related Subordinate Percentage for such Distribution Date;

27

 

     (iii) for any Distribution Date after the 84th Distribution Date but on or prior to the
96th Distribution Date, the related Senior Percentage for such Distribution Date plus 40% of
the related Subordinate Percentage for such Distribution Date;

     (iv) for any Distribution Date after the 96th Distribution Date but on or prior to the
108th Distribution Date, the related Senior Percentage for such Distribution Date plus 20%
of the related Subordinate Percentage for such Distribution Date; and

     (v) for any Distribution Date thereafter, the Senior Percentage for such Distribution
Date; provided, however,

     (i) that any scheduled reduction to the Senior Accelerated Distribution Percentage described
above shall not occur as of any Distribution Date unless either

     (a)(1)(X) the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including Mortgage Loans which are in foreclosure, have been foreclosed or otherwise
liquidated, or with respect to which the Mortgagor is in bankruptcy and any REO Property)
averaged over the last six months, as a percentage of the aggregate outstanding Certificate
Principal Balance of the Subordinate Certificates, is less than 50% or (Y) the outstanding
principal balance of Mortgage Loans delinquent 60 days or more (including Mortgage Loans
which are in foreclosure, have been foreclosed or otherwise liquidated, or with respect to
which the Mortgagor is in bankruptcy and any REO Property) averaged over the last six
months, as a percentage of the aggregate outstanding principal balance of all Mortgage Loans
averaged over the last six months, does not exceed 2% and (2) Realized Losses on the
Mortgage Loans to date for such Distribution Date if occurring during the sixth, seventh,
eighth, ninth or tenth year (or any year thereafter) after the Closing Date are less than
30%, 35%, 40%, 45% or 50%, respectively, of the sum of the Initial Certificate Principal
Balances of the Subordinate Certificates or

     (b)(1) the outstanding principal balance of Mortgage Loans delinquent 60 days or more
(including Mortgage Loans which are in foreclosure, have been foreclosed or otherwise
liquidated, or with respect to which the Mortgagor is in bankruptcy and any REO Property)
averaged over the last six months, as a percentage of the aggregate outstanding principal
balance of all Mortgage Loans averaged over the last six months, does not exceed 4% and (2)
Realized Losses on the Mortgage Loans to date for such Distribution Date, if occurring
during the sixth, seventh, eighth, ninth or tenth year (or any year thereafter) after the
Closing Date are less than 10%, 15%, 20%, 25% or 30%, respectively, of the sum of the
Initial Certificate Principal Balances of the Subordinate Certificates, and

     (ii) that for any Distribution Date on which the Senior Percentage is greater than the Senior
Percentage as of the Closing Date, the Senior Accelerated Distribution Percentage for such
Distribution Date shall be 100%, or, if the Mortgage Pool is comprised of two or more Loan Groups,
for any Distribution Date on which the weighted average of the Senior Percentages for

28

 

each Loan Group, weighted on the basis of the Stated Principal Balances of the Mortgage Loans
in the related Loan Group (excluding the Discount Fraction of the Discount Mortgage Loans in such
Loan Group) exceeds the weighted average of the initial Senior Percentages (calculated on such
basis) for each Loan Group, each of the Senior Accelerated Distribution Percentages for such
Distribution Date will equal 100%.

Notwithstanding the foregoing, upon the reduction of the Certificate Principal Balances of the
related Senior Certificates (other than the Class A-P Certificates, if any) to zero, the related
Senior Accelerated Distribution Percentage shall thereafter be 0%.

     Senior Certificate: As defined in the Series Supplement.

     Senior Percentage: As defined in the Series Supplement.

     Senior Support Certificate: A Senior Certificate that provides additional credit
enhancement to certain other classes of Senior Certificates and designated as such in the
Preliminary Statement of the Series Supplement.

     Series: All of the Certificates issued pursuant to a Pooling and Servicing Agreement
and bearing the same series designation.

     Series Supplement: The agreement into which this Standard Terms is incorporated and
pursuant to which, together with this Standard Terms, a Series of Certificates is issued.

     Servicing Accounts: The account or accounts created and maintained pursuant to
Section 3.08.

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

     Servicing Advances: All customary, reasonable and necessary “out of pocket” costs and
expenses incurred in connection with a default, delinquency or other unanticipated event by the
Master Servicer or a Subservicer in the performance of its servicing obligations, including, but
not limited to, the cost of (i) the preservation, restoration and protection of a Mortgaged
Property or, with respect to a Cooperative Loan, the related Cooperative Apartment, (ii) any
enforcement or judicial proceedings, including foreclosures, including any expenses incurred in
relation to any such proceedings that result from the Mortgage Loan being registered on the MERS
System, (iii) the management and liquidation of any REO Property, (iv) any mitigation procedures
implemented in accordance with Section 3.07, and (v) compliance with the obligations under Sections
3.01, 3.08, 3.11, 3.12(a) and 3.14, including, if the Master Servicer or any Affiliate of the
Master Servicer provides services such as appraisals and brokerage services that are customarily
provided by Persons other than servicers of mortgage loans, reasonable compensation for such
services.

     Servicing Advance Reimbursement Amounts: As defined in Section 3.22.

     Servicing Modification: Any reduction of the interest rate on or the outstanding
principal balance of a Mortgage Loan, any extension of the final maturity date of a Mortgage Loan,
and

29

 

any increase to the outstanding principal balance of a Mortgage Loan by adding to the Stated
Principal Balance unpaid principal and interest and other amounts owing under the Mortgage Loan, in
each case pursuant to a modification of a Mortgage Loan that is in default, or for which, in the
judgment of the Master Servicer, default is reasonably foreseeable in accordance with Section
3.07(a).

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

     Special Hazard Loss: Any Realized Loss not in excess of the cost of the lesser of
repair or replacement of a Mortgaged Property (or, with respect to a Cooperative Loan, the related
Cooperative Apartment) suffered by such Mortgaged Property (or Cooperative Apartment) on account of
direct physical loss, exclusive of (i) any loss of a type covered by a hazard policy or a flood
insurance policy required to be maintained in respect of such Mortgaged Property pursuant to
Section 3.12(a), except to the extent of the portion of such loss not covered as a result of any
coinsurance provision and (ii) any Extraordinary Loss.

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

     Stated Principal Balance: With respect to any Mortgage Loan or related REO Property,
as of any Distribution Date, (i) the sum of (a) the Cut-off Date Principal Balance of the Mortgage
Loan plus (b) any amount by which the Stated Principal Balance of the Mortgage Loan has been
increased pursuant to a Servicing Modification, minus (ii) the sum of (a) the principal portion of
the Monthly Payments due with respect to such Mortgage Loan or REO Property during each Due Period
ending with the Due Period related to the previous Distribution Date which were received or with
respect to which a P&I Advance was made, and (b) all Principal Prepayments with respect to such
Mortgage Loan or REO Property, and all Insurance Proceeds, Liquidation Proceeds and REO Proceeds,
to the extent applied by the Master Servicer as recoveries of principal in accordance with Section
3.14 with respect to such Mortgage Loan or REO Property, in each case which were distributed
pursuant to Section 4.02 on any previous Distribution Date, and (c) any Realized Loss incurred with
respect to such Mortgage Loan allocated to Certificateholders with respect thereto for any previous
Distribution Date.

     Subclass: With respect to the Class A-V Certificates, any Subclass thereof issued
pursuant to Section 5.01(c). Any such Subclass will represent the Uncertificated REMIC Regular
Interest or Interests Z specified by the initial Holder of the Class A-V Certificates pursuant to
Section 5.01(c).

     Subordinate Certificate: Any one of the Class M Certificates or Class B Certificates,
executed by the Trustee and authenticated by the Certificate Registrar substantially in the form
annexed hereto as Exhibit B and Exhibit C, respectively.

     Subordinate Class Percentage: With respect to any Distribution Date and any Class of
Subordinate Certificates, a fraction, expressed as a percentage, the numerator of which is the

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aggregate Certificate Principal Balance of such Class of Subordinate Certificates immediately
prior to such date and the denominator of which is the aggregate Stated Principal Balance of all of
the Mortgage Loans (or related REO Properties) (other than the related Discount Fraction of each
Discount Mortgage Loan) immediately prior to such Distribution Date.

     Subordinate Percentage: As of any Distribution Date and, with respect to any Mortgage
Pool comprised of two or more Loan Groups, any Loan Group, 100% minus the related Senior Percentage
as of such Distribution Date.

     Subsequent Recoveries: As of any Distribution Date, amounts received by the Master
Servicer (net of any related expenses permitted to be reimbursed pursuant to Section 3.10) or
surplus amounts held by the Master Servicer to cover estimated expenses (including, but not limited
to, recoveries in respect of the representations and warranties made by the related Seller pursuant
to the applicable Seller’s Agreement and assigned to the Trustee pursuant to Section 2.04)
specifically related to a Mortgage Loan that was the subject of a Cash Liquidation or an REO
Disposition prior to the related Prepayment Period that resulted in a Realized Loss.

     Subserviced Mortgage Loan: Any Mortgage Loan that, at the time of reference thereto,
is subject to a Subservicing Agreement.

     Subservicer: Any Person with whom the Master Servicer has entered into a Subservicing
Agreement and who generally satisfied the requirements set forth in the Program Guide in respect of
the qualification of a Subservicer as of the date of its approval as a Subservicer by the Master
Servicer.

     Subservicer Advance: Any delinquent installment of principal and interest on a
Mortgage Loan which is advanced by the related Subservicer (net of its Subservicing Fee) pursuant
to the Subservicing Agreement.

     Subservicing Account: An account established by a Subservicer in accordance with
Section 3.08.

     Subservicing Agreement: The written contract between the Master Servicer and any
Subservicer relating to servicing and administration of certain Mortgage Loans as provided in
Section 3.02, generally in the form of the servicer contract referred to or contained in the
Program Guide or in such other form as has been approved by the Master Servicer and the Company.

     Subservicing Fee: As to any Mortgage Loan, the fee payable monthly to the related
Subservicer (or, in the case of a Nonsubserviced Mortgage Loan, to the Master Servicer) in respect
of subservicing and other compensation that accrues at an annual rate equal to the excess of the
Mortgage Rate borne by the related Mortgage Note over the rate per annum designated on the Mortgage
Loan Schedule as the “CURR NET” for such Mortgage Loan.

     Successor Master Servicer: As defined in Section 3.22.

     Surety: Ambac, or its successors in interest, or such other surety as may be
identified in the Series Supplement.

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     Tax Returns: The federal income tax return on Internal Revenue Service Form 1066,
U.S. Real Estate Mortgage Investment Conduit Income Tax Return, including Schedule Q thereto,
Quarterly Notice to Residual Interest Holders of REMIC Taxable Income or Net Loss Allocation, or
any successor forms, to be filed on behalf of any REMIC formed under the Series Supplement and
under the REMIC Provisions, together with any and all other information, reports or returns that
may be required to be furnished to the Certificateholders or filed with the Internal Revenue
Service or any other governmental taxing authority under any applicable provisions of federal,
state or local tax laws.

     Transaction Party: As defined in Section 12.02(a).

     Transfer: Any direct or indirect transfer, sale, pledge, hypothecation or other form
of assignment of any Ownership Interest in a Certificate.

     Transferee: Any Person who is acquiring by Transfer any Ownership Interest in a
Certificate.

     Transferor: Any Person who is disposing by Transfer of any Ownership Interest in a
Certificate.

     Trust Fund: The segregated pool of assets related to a Series, with respect to which
one or more REMIC elections are to be made pursuant to this Agreement, consisting of:

     (i) the Mortgage Loans and the related Mortgage Files and collateral securing such
Mortgage Loans,

     (ii) all payments on and collections in respect of the Mortgage Loans due after the
Cut-off Date as shall be on deposit in the Custodial Account or in the Certificate Account
and identified as belonging to the Trust Fund, including the proceeds from the liquidation
of Additional Collateral for any Additional Collateral Loan, but not including amounts on
deposit in the Initial Monthly Payment Fund,

     (iii) property that secured a Mortgage Loan and that has been acquired for the benefit
of the Certificateholders by foreclosure or deed in lieu of foreclosure,

     (iv) the hazard insurance policies and Primary Insurance Policies, if any, and the
interest in the Surety Bond transferred to the Trustee pursuant to Section 2.01, and

     (v) all proceeds of clauses (i) through (iv) above.

     Trustee Information: As specified in Section 12.05(a)(i)(A).

     Uninsured Cause: Any cause of damage to property subject to a Mortgage such that the
complete restoration of such property is not fully reimbursable by the hazard insurance policies.

     United States Person or U.S. Person: Either (i) a citizen or resident of the United
States, (ii) a corporation, partnership or other entity treated as a corporation or partnership for
United States federal income tax purposes organized in or under the laws of the United States or
any

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state thereof or the District of Columbia (unless, in the case of a partnership, Treasury
regulations provide otherwise), provided that, for purposes solely of the restrictions on the
transfer of residual interests, no partnership or other entity treated as a partnership for United
States federal income tax purposes shall be treated as a United States Person or U.S. Person unless
all persons that own an interest in such partnership either directly or indirectly through any
chain of entities no one of which is a corporation for United States federal income tax purposes
are required by the applicable operating agreement to be United States Persons, (iii) an estate
the income of which is includible in gross income for United States tax purposes, regardless of its
source, (iv) a trust if a court within the United States is able to exercise primary supervision
over the administration of the trust and one or more United States persons have authority to
control all substantial decisions of the trust, or (v) as defined in Legislation S, as the context
may require. Notwithstanding the preceding sentence, to the extent provided in Treasury
regulations, certain Trusts in existence on August 20, 1996, and treated as United States persons
prior to such date, that elect to continue to be treated as United States persons will also be a
U.S. Person.

     U.S.A. Patriot Act: Uniting and Strengthening America by Providing Appropriate Tools
to Intercept and Obstruct Terrorism Act of 2001, as amended.

     Voting Rights: The portion of the voting rights of all of the Certificates which is
allocated to any Certificate, and more specifically designated in Article XI of the Series
Supplement.

     Section 1.02. Use of Words and Phrases.

     “Herein,” “hereby,” “hereunder,” ‘hereof,” “hereinbefore,” “hereinafter” and other equivalent
words refer to the Pooling and Servicing Agreement as a whole. All references herein to Articles,
Sections or Subsections shall mean the corresponding Articles, Sections and Subsections in the
Pooling and Servicing Agreement. The definitions set forth herein include both the singular and
the plural.

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ARTICLE II

CONVEYANCE OF MORTGAGE LOANS;

ORIGINAL ISSUANCE OF CERTIFICATES

     Section 2.01. Conveyance of Mortgage Loans.

     (a) The Company, concurrently with the execution and delivery hereof, does hereby assign to
the Trustee for the benefit of the Certificateholders without recourse all the right, title and
interest of the Company in and to the Mortgage Loans, including all interest and principal received
on or with respect to the Mortgage Loans after the Cut-off Date (other than payments of principal
and interest due on the Mortgage Loans in the month of the Cut-off Date). In connection with such
transfer and assignment, the Company does hereby deliver to the Trustee the Certificate Policy (as
defined in the Series Supplement), if any for the benefit of the Holders of the Insured
Certificates (as defined in the Series Supplement).

     (b) In connection with such assignment, except as set forth in Section 2.01(c) and subject to
Section 2.01(d) below, the Company does hereby (1) with respect to each Mortgage Loan (other than a
Cooperative Loan), deliver to the Master Servicer (or an Affiliate of the Master Servicer) each of
the documents or instruments described in clause (I)(ii) below (and the Master Servicer shall hold
(or cause such Affiliate to hold) such documents or instruments in trust for the use and benefit of
all present and future Certificateholders), (2) with respect to each MOM Loan, deliver to, and
deposit with, the Trustee, or the Custodian, as the duly appointed agent of the Trustee for such
purpose, the documents or instruments described in clauses (I)(i) and (v) below, (3) with respect
to each Mortgage Loan that is not a MOM Loan but is registered on the MERS® System, deliver to, and
deposit with, the Trustee, or to the Custodian, as the duly appointed agent of the Trustee for such
purpose, the documents or instruments described in clauses (I)(i), (iv) and (v) below, (4) with
respect to each Mortgage Loan that is not a MOM Loan and is not registered on the MERS® System,
deliver to, and deposit with, the Trustee, or to the Custodian, as the duly appointed agent of the
Trustee for such purpose, the documents or instruments described in clauses (I)(i), (iii), (iv) and
(v) below, and (5) with respect to each Cooperative Loan, deliver to and deposit with the Trustee,
or to the Custodian on behalf of the Trustee, the documents and instruments described in clause
(II) and clause (III) below:

     (I) with respect to each Mortgage Loan so assigned (other than a Cooperative Loan):

     (i) The original Mortgage Note, endorsed without recourse in blank or to the order of
the Trustee, and showing an unbroken chain of endorsements from the originator thereof to
the Person endorsing it to the Trustee, or with respect to any Destroyed Mortgage Note, an
original lost note affidavit from the related Seller or [_______________] stating that the
original Mortgage Note was lost, misplaced or destroyed, together with a copy of the related
Mortgage Note;

     (ii) The original Mortgage, noting the presence of the MIN of the Mortgage Loan and
language indicating that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan,
with evidence of recording indicated thereon or a copy of the Mortgage with evidence of
recording indicated thereon;

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     (iii) The original Assignment of the Mortgage to the Trustee with evidence of recording
indicated thereon or a copy of such assignment with evidence of recording indicated thereon;

     (iv) The original recorded assignment or assignments of the Mortgage showing an
unbroken chain of title from the originator thereof to the Person assigning it to the
Trustee (or to MERS, if the Mortgage Loan is registered on the MERS® System and noting the
presence of a MIN) with evidence of recordation noted thereon or attached thereto, or a copy
of such assignment or assignments of the Mortgage with evidence of recording indicated
thereon; and

     (v) The original of each modification, assumption agreement or preferred loan
agreement, if any, relating to such Mortgage Loan or a copy of each modification, assumption
agreement or preferred loan agreement

     (II) with respect to each Cooperative Loan so assigned:

     (i) The original Mortgage Note, endorsed without recourse to the order of the Trustee
and showing an unbroken chain of endorsements from the originator thereof to the Person
endorsing it to the Trustee, or with respect to any Destroyed Mortgage Note, an original
lost note affidavit from the related Seller or [_______________] stating that the original
Mortgage Note was lost, misplaced or destroyed, together with a copy of the related Mortgage
Note;

     (ii) A counterpart of the Cooperative Lease and the Assignment of Proprietary Lease to
the originator of the Cooperative Loan with intervening assignments showing an unbroken
chain of title from such originator to the Trustee or a copy of such Cooperative Lease and
Assignment of Proprietary Lease and copies of such intervening assignments;

     (iii) The related Cooperative Stock Certificate, representing the related Cooperative
Stock pledged with respect to such Cooperative Loan, together with an undated stock power
(or other similar instrument) executed in blank or copies thereof;

     (iv) The original recognition agreement by the Cooperative of the interests of the
mortgagee with respect to the related Cooperative Loan or a copy thereof;

     (v) The Security Agreement or a copy thereof;

     (vi) Copies of the original UCC-1 financing statement, and any continuation statements,
filed by the originator of such Cooperative Loan as secured party, each with evidence of
recording thereof, evidencing the interest of the originator under the Security Agreement
and the Assignment of Proprietary Lease;

     (vii) Copies of the filed UCC-3 assignments of the security interest referenced in
clause (vi) above showing an unbroken chain of title from the originator to the Trustee,
each with evidence of recording thereof, evidencing the interest of the originator under the
Security Agreement and the Assignment of Proprietary Lease;

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     (viii) An executed assignment of the interest of the originator in the Security
Agreement, Assignment of Proprietary Lease and the recognition agreement referenced in
clause (iv) above, showing an unbroken chain of title from the originator to the Trustee, or
a copy thereof;

     (ix) The original of each modification, assumption agreement or preferred loan
agreement, if any, relating to such Cooperative Loan or a copy of each modification,
assumption agreement or preferred loan agreement; and

     (x) A duly completed UCC-1 financing statement showing the Master Servicer as debtor,
the Company as secured party and the Trustee as assignee and a duly completed UCC-1
financing statement showing the Company as debtor and the Trustee as secured party, each in
a form sufficient for filing, evidencing the interest of such debtors in the Cooperative
Loans or copies thereof;

     (c) The Company may, in lieu of delivering the original of the documents set forth in Sections
2.01(b)(I)(iii), (iv) and (v), Sections (b)(II)(ii), (iv), (vii), (ix) and (x) and Sections
2.01(b)(III)(ii), (iii), (iv), (v) and (vi) (or copies thereof) to the Trustee or to the Custodian
on behalf of the Trustee, deliver such documents to the Master Servicer, and the Master Servicer
shall hold such documents in trust for the use and benefit of all present and future
Certificateholders until such time as is set forth in the next sentence. Within thirty Business
Days following the earlier of (i) the receipt of the original of all of the documents or
instruments set forth in Sections 2.01(b)(I)(iii), (iv) and (v), Sections (b)(II)(ii), (iv), (vii),
(ix) and (x) and Sections 2.01(b)(III)(ii), (iii), (iv), (v) and (vi) (or copies thereof) for any
Mortgage Loan and (ii) a written request by the Trustee to deliver those documents with respect to
any or all of the Mortgage Loans then being held by the Master Servicer, the Master Servicer shall
deliver a complete set of such documents to the Trustee or to the Custodian on behalf of the
Trustee.

     The parties hereto agree that it is not intended that any Mortgage Loan be included in the
Trust Fund that is either (i) a “High-Cost Home Loan” as defined in the New Jersey Home Ownership
Act effective November 27, 2003, (ii) a “High-Cost Home Loan” as defined in the New Mexico Home
Loan Protection Act effective January 1, 2004, (iii) a “High Cost Home Mortgage Loan” as defined in
the Massachusetts Predatory Home Loan Practices Act effective November 7, 2004 or (iv) a
“High-Cost Home Loan” as defined in the Indiana House Enrolled Act No. 1229, effective as of
January 1, 2005.

     (d) Notwithstanding the provisions of Section 2.01(c), in connection with any Mortgage Loan,
if the Company cannot deliver the original of the Mortgage, any assignment, modification,
assumption agreement or preferred loan agreement (or copy thereof as permitted by Section 2.01(b))
with evidence of recording thereon concurrently with the execution and delivery of this Agreement
because of (i) a delay caused by the public recording office where such Mortgage, assignment,
modification, assumption agreement or preferred loan agreement as the case may be, has been
delivered for recordation, or (ii) a delay in the receipt of certain information necessary to
prepare the related assignments, the Company shall deliver or cause to be delivered to the Trustee
or to the Custodian on behalf of the Trustee a copy of such Mortgage, assignment, modification,
assumption agreement or preferred loan agreement.

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     The Company (i) shall promptly cause to be recorded in the appropriate public office for real
property records the Assignment referred to in clause (I)(iii) of Section 2.01(b), except (a) in
states where, in an Opinion of Counsel acceptable to the Trustee and the Master Servicer, such
recording is not required to protect the Trustee’s interests in the Mortgage Loan against the claim
of any subsequent transferee or any successor to or creditor of the Company or the originator of
such Mortgage Loan or (b) if MERS is identified on the Mortgage or on a properly recorded
assignment of the Mortgage as the mortgagee of record solely as nominee for the Seller and its
successors and assigns, (ii) shall promptly cause to be filed the Form UCC-3 assignment and UCC-1
financing statement referred to in clauses (II)(vii) and (x), respectively, of Section 2.01(b) and
(iii) shall promptly cause to be recorded in the appropriate public recording office for real
property records the Assignment Agreement and Amendment of Security Instrument referred to in
clause (III)(iii) of Section 2.01(b). If any Assignment, Assignment Agreement and Amendment of
Security Instrument, Form UCC-3 or Form UCC-1, as applicable, is lost or returned unrecorded to the
Company because of any defect therein, the Company shall prepare a substitute Assignment,
Assignment Agreement and Amendment of Security Instrument, Form UCC-3 or Form UCC-1, as applicable,
or cure such defect, as the case may be, and cause such Assignment or Assignment Agreement and
Amendment of Security Instrument to be recorded in accordance with this paragraph. The Company
shall promptly deliver or cause to be delivered to the applicable person described in Section
2.01(b), any Assignment, substitute Assignment, Assignment Agreement and Amendment of Security
Instrument or Form UCC-3 or Form UCC-1, as applicable, (or copy thereof) recorded in connection
with this paragraph, with evidence of recording indicated thereon at the time specified in Section
2.01(c). In connection with its servicing of Cooperative Loans, the Master Servicer will use its
best efforts to file timely continuation statements with regard to each financing statement and
assignment relating to Cooperative Loans as to which the related Cooperative Apartment is located
outside of the State of New York.

     If the Company delivers to the Trustee or to the Custodian on behalf of the Trustee any
Mortgage Note, Assignment Agreement and Amendment of Security Instrument or Assignment of Mortgage
in blank, the Company shall, or shall cause the Custodian to, complete the endorsement of the
Mortgage Note, Assignment Agreement and Amendment of Security Instrument and Assignment of Mortgage
in the name of the Trustee in conjunction with the Interim Certification issued by the Custodian,
as contemplated by Section 2.02.

     In connection with the assignment of any Mortgage Loan registered on the MERS® System, the
Company further agrees that it will cause, at the Company’s own expense, within 30 Business Days
after the Closing Date, the MERS® System to indicate that such Mortgage Loans have been assigned by
the Company to the Trustee in accordance with this Agreement for the benefit of the
Certificateholders by including (or deleting, in the case of Mortgage Loans which are repurchased
in accordance with this Agreement) in such computer files (a) the code in the field which
identifies the specific Trustee and (b) the code in the field “Pool Field” which identifies the
series of the Certificates issued in connection with such Mortgage Loans. The Company further
agrees that it will not, and will not permit the Master Servicer to, and the Master Servicer agrees
that it will not, alter the codes referenced in this paragraph with respect to any Mortgage Loan
during the term of this Agreement unless and until such Mortgage Loan is repurchased in accordance
with the terms of this Agreement.

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     (e) [_______________] hereby assigns to the Trustee its security interest in and to any
Additional Collateral, its right to receive amounts due or to become due in respect of any
Additional Collateral pursuant to the related Subservicing Agreement and its rights as beneficiary
under the Surety Bond in respect of any Additional Collateral Loans. With respect to any
Additional Collateral Loan, [_______________] shall cause to be filed in the appropriate recording
office a UCC-3 statement giving notice of the assignment of the related security interest to the
Trust Fund and shall thereafter cause the timely filing of all necessary continuation statements
with regard to such financing statements.

     (f) It is intended that the conveyance by the Company to the Trustee of the Mortgage Loans as
provided for in this Section 2.01 be and the Uncertificated REMIC Regular Interests, if any (as
provided for in Section 2.06), be construed as a sale by the Company to the Trustee of the Mortgage
Loans and any Uncertificated REMIC Regular Interests for the benefit of the Certificateholders.
Further, it is not intended that such conveyance be deemed to be a pledge of the Mortgage Loans and
any Uncertificated REMIC Regular Interests by the Company to the Trustee to secure a debt or other
obligation of the Company. Nonetheless, (a) this Agreement is intended to be and hereby is a
security agreement within the meaning of Articles 8 and 9 of the New York Uniform Commercial Code
and the Uniform Commercial Code of any other applicable jurisdiction; (b) the conveyance provided
for in Section 2.01 shall be deemed to be, and hereby is, (1) a grant by the Company to the Trustee
of a security interest in all of the Company’s right (including the power to convey title thereto),
title and interest, whether now owned or hereafter acquired, in and to any and all general
intangibles, payment intangibles, accounts, chattel paper, instruments, documents, money, deposit
accounts, certificates of deposit, goods, letters of credit, advices of credit and investment
property and other property of whatever kind or description now existing or hereafter acquired
consisting of, arising from or relating to any of the following: (A) the Mortgage Loans, including
(i) with respect to each Cooperative Loan, the related Mortgage Note, Security Agreement,
Assignment of Proprietary Lease, Cooperative Stock Certificate and Cooperative Lease, (ii) with
respect to each Mortgage Loan other than a Cooperative Loan, the related Mortgage Note and
Mortgage, and (iii) any insurance policies and all other documents in the related Mortgage File,
(B) all amounts payable pursuant to the Mortgage Loans in accordance with the terms thereof, (C)
any Uncertificated REMIC Regular Interests and (D) all proceeds of the conversion, voluntary or
involuntary, of the foregoing into cash, instruments, securities or other property, including
without limitation all amounts from time to time held or invested in the Certificate Account or the
Custodial Account, whether in the form of cash, instruments, securities or other property and (2)
an assignment by the Company to the Trustee of any security interest in any and all of
[_______________]’s right (including the power to convey title thereto), title and interest,
whether now owned or hereafter acquired, in and to the property described in the foregoing clauses
(1)(A), (B), (C) and (D) granted by [_______________] to the Company pursuant to the Assignment
Agreement; (c) the possession by the Trustee, any Custodian on behalf of the Trustee or any other
agent of the Trustee of Mortgage Notes or such other items of property as constitute instruments,
money, payment intangibles, negotiable documents, goods, deposit accounts, letters of credit,
advices of credit, investment property, certificated securities or chattel paper shall be deemed to
be “possession by the secured party,” or possession by a purchaser or a person designated by such
secured party, for purposes of perfecting the security interest pursuant to the Minnesota Uniform
Commercial Code and the Uniform Commercial Code of any other applicable jurisdiction as in effect
(including, without limitation, Sections 8-106, 9-313, 9-314 and 9-106 thereof); and (d)

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notifications to persons holding such property, and acknowledgments, receipts or confirmations
from persons holding such property, shall be deemed notifications to, or acknowledgments, receipts
or confirmations from, securities intermediaries, bailees or agents of, or persons holding for (as
applicable) the Trustee for the purpose of perfecting such security interest under applicable law.

     The Company and, at the Company’s direction, [_______________] and the Trustee shall, to the
extent consistent with this Agreement, take such reasonable actions as may be necessary to ensure
that, if this Agreement were determined to create a security interest in the Mortgage Loans, any
Uncertificated REMIC Regular Interests and the other property described above, such security
interest would be determined to be a perfected security interest of first priority under applicable
law and will be maintained as such throughout the term of this Agreement. Without limiting the
generality of the foregoing, the Company shall prepare and deliver to the Trustee not less than 15
days prior to any filing date and, the Trustee shall forward for filing, or shall cause to be
forwarded for filing, at the expense of the Company, all filings necessary to maintain the
effectiveness of any original filings necessary under the Uniform Commercial Code as in effect in
any jurisdiction to perfect the Trustee’s security interest in or lien on the Mortgage Loans and
any Uncertificated REMIC Regular Interests, as evidenced by an Officers’ Certificate of the
Company, including without limitation (x) continuation statements, and (y) such other statements as
may be occasioned by (1) any change of name of [_______________], the Company or the Trustee (such
preparation and filing shall be at the expense of the Trustee, if occasioned by a change in the
Trustee’s name), (2) any change of type or jurisdiction of organization of [_______________] or the
Company, (3) any transfer of any interest of [_______________] or the Company in any Mortgage Loan
or (4) any transfer of any interest of [_______________] or the Company in any Uncertificated REMIC
Regular Interest.

     (g) The Master Servicer hereby acknowledges the receipt by it of the Initial Monthly Payment
Fund. The Master Servicer shall hold such Initial Monthly Payment Fund in the Custodial Account
and shall include such Initial Monthly Payment Fund in the Available Distribution Amount for the
initial Distribution Date. Notwithstanding anything herein to the contrary, the Initial Monthly
Payment Fund shall not be an asset of any REMIC. To the extent that the Initial Monthly Payment
Fund constitutes a reserve fund for federal income tax purposes, (1) it shall be an outside reserve
fund and not an asset of any REMIC, (2) it shall be owned by the Seller and (3) amounts transferred
by any REMIC to the Initial Monthly Payment Fund shall be treated as transferred to the Seller or
any successor, all within the meaning of Section 1.860G-2(h) of the Treasury Regulations.

     Section 2.02. Acceptance by Trustee.

     The Trustee acknowledges receipt (or, with respect to Mortgage Loans subject to a Custodial
Agreement, and based solely upon a receipt or certification executed by the Custodian, receipt by
the respective Custodian as the duly appointed agent of the Trustee) of the documents required to
be delivered to the Trustee (or the Custodian on behalf of the Trustee) pursuant to Section 2.01(b)
above (except that for purposes of such acknowledgement only, a Mortgage Note may be endorsed in
blank) and declares that it, or the Custodian as its agent, holds and will hold such documents and
the other documents constituting a part of the Custodial Files delivered to it, or a Custodian as
its agent, and the rights of [_______________] with respect to any Additional

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Collateral and the Surety Bond assigned to the Trustee pursuant to Section 2.01, in trust for
the use and benefit of all present and future Certificateholders. The Trustee or Custodian (the
Custodian being so obligated under a Custodial Agreement) agrees, for the benefit of
Certificateholders, to review each Custodial File delivered to it pursuant to Section 2.01(b)
within 45 days after the Closing Date to ascertain that all required documents (specifically as set
forth in Section 2.01(b)), have been executed and received, and that such documents relate to the
Mortgage Loans identified on the Mortgage Loan Schedule, as supplemented, that have been conveyed
to it, and to deliver to the Trustee a certificate (the “Interim Certification”) to the effect that
all documents required to be delivered pursuant to Section 2.01(b) above have been executed and
received and that such documents relate to the Mortgage Loans identified on the Mortgage Loan
Schedule, except for any exceptions listed on Schedule A attached to such Interim Certification.
Upon delivery of the Custodial Files by the Company or the Master Servicer, the Trustee shall
acknowledge receipt (or, with respect to Mortgage Loans subject to a Custodial Agreement, and based
solely upon a receipt or certification executed by the Custodian, receipt by the respective
Custodian as the duly appointed agent of the Trustee) of the documents referred to in Section
2.01(c) above.

     If the Custodian, as the Trustee’s agent, finds any document or documents constituting a part
of a Custodial File to be missing or defective, the Trustee shall promptly so notify the Master
Servicer and the Company. Pursuant to Section 2.3 of the Custodial Agreement, the Custodian will
notify the Master Servicer, the Company and the Trustee of any such omission or defect found by it
in respect of any Custodial File held by it in respect of the items reviewed by it pursuant to the
Custodial Agreement. If such omission or defect materially and adversely affects the interests of
the Certificateholders, the Master Servicer shall promptly notify [_______________] of such
omission or defect and request [_______________] to correct or cure such omission or defect within
60 days from the date the Master Servicer was notified of such omission or defect and, if
[_______________] does not correct or cure such omission or defect within such period, require
[_______________] to purchase such Mortgage Loan from the Trust Fund at its Purchase Price, within
90 days from the date the Master Servicer was notified of such omission or defect; provided that if
the omission or defect would cause the Mortgage Loan to be other than a “qualified mortgage” as
defined in Section 860G(a)(3) of the Code, any such cure or repurchase must occur within 90 days
from the date such breach was discovered. The Purchase Price for any such Mortgage Loan shall be
deposited by the Master Servicer in the Custodial Account maintained by it pursuant to Section 3.07
and, upon receipt by the Trustee of written notification of such deposit signed by a Servicing
Officer, the Master Servicer, the Trustee or the Custodian, as the case may be, shall release the
contents of any related Mortgage File in its possession to the owner of such Mortgage Loan (or such
owners’ designee) and the Trustee shall execute and deliver such instruments of transfer or
assignment prepared by the Master Servicer, in each case without recourse, as shall be necessary to
vest in [_______________] or its designee any Mortgage Loan released pursuant hereto and thereafter
such Mortgage Loan shall not be part of the Trust Fund. In furtherance of the foregoing and
Section 2.04, if the Subservicer or Seller or [___________] that repurchases the Mortgage Loan is
not a member of MERS and the Mortgage is registered on the MERS® System, the Master Servicer, at
its own expense and without any right of reimbursement, shall cause MERS to execute and deliver an
assignment of the Mortgage in recordable form to transfer the Mortgage from MERS to such
Subservicer or Seller or [____________] and shall cause such Mortgage to be removed from
registration on the MERS® System in accordance with MERS’ rules and

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regulations. It is understood and agreed that the obligation of [_______________] to so cure
or purchase any Mortgage Loan as to which a material and adverse defect in or omission of a
constituent document exists shall constitute the sole remedy respecting such defect or omission
available to Certificateholders or the Trustee on behalf of the Certificateholders.

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

     (a) The Master Servicer hereby represents and warrants to the Trustee for the benefit of the
Certificateholders that as of the Closing Date:

     (i) The Master Servicer is a [corporation][limited liability company] duly
[organized][formed], validly existing and in good standing under the laws governing its
creation and existence and is or will be in compliance with the laws of each state in which
any Mortgaged Property is located to the extent necessary to ensure the enforceability of
each Mortgage Loan in accordance with the terms of this Agreement;

     (ii) The execution and delivery of this Agreement by the Master Servicer and its
performance and compliance with the terms of this Agreement will not violate the Master
Servicer’s [Certificate of Incorporation or Bylaws][Operating Agreement][Formation or
Limited Liability Company Agreement] or constitute a material default (or an event which,
with notice or lapse of time, or both, would constitute a material default) under, or result
in the material breach of, any material contract, agreement or other instrument to which the
Master Servicer is a party or which may be applicable to the Master Servicer or any of its
assets;

     (iii) This Agreement, assuming due authorization, execution and delivery by the Trustee
and the Company, constitutes a valid, legal and binding obligation of the Master Servicer,
enforceable against it in accordance with the terms hereof subject to applicable bankruptcy,
insolvency, reorganization, moratorium and other laws affecting the enforcement of
creditors’ rights generally and to general principles of equity, regardless of whether such
enforcement is considered in a proceeding in equity or at law;

     (iv) The Master Servicer is not in default with respect to any order or decree of any
court or any order, regulation or demand of any federal, state, municipal or governmental
agency, which default might have consequences that would materially and adversely affect the
condition (financial or other) or operations of the Master Servicer or its properties or
might have consequences that would materially adversely affect its performance hereunder;

     (v) No litigation is pending or, to the best of the Master Servicer’s knowledge,
threatened against the Master Servicer which would prohibit its entering into this Agreement
or performing its obligations under this Agreement;

     (vi) The Master Servicer will comply in all material respects in the performance of
this Agreement with all reasonable rules and requirements of each insurer under each
Required Insurance Policy;

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     (vii) No information, certificate of an officer, statement furnished in writing or
report delivered to the Company, any Affiliate of the Company or the Trustee by the Master
Servicer will, to the knowledge of the Master Servicer, contain any untrue statement of a
material fact or omit a material fact necessary to make the information, certificate,
statement or report not misleading;

     (viii) The Master Servicer has examined each existing, and will examine each new,
Subservicing Agreement and is or will be familiar with the terms thereof. The terms of each
existing Subservicing Agreement and each designated Subservicer are acceptable to the Master
Servicer and any new Subservicing Agreements will comply with the provisions of Section
3.02; and

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

It is understood and agreed that the representations and warranties set forth in this Section
2.03(a) shall survive delivery of the respective Custodial Files to the Trustee or the Custodian.

     Upon discovery by either the Company, the Master Servicer, the Trustee or the Custodian of a
breach of any representation or warranty set forth in this Section 2.03(a) which materially and
adversely affects the interests of the Certificateholders in any Mortgage Loan, the party
discovering such breach shall give prompt written notice to the other parties (the Custodian being
so obligated under a Custodial Agreement). Within 90 days of its discovery or its receipt of
notice of such breach, the Master Servicer shall either (i) cure such breach in all material
respects or (ii) to the extent that such breach is with respect to a Mortgage Loan or a related
document, purchase such Mortgage Loan from the Trust Fund at the Purchase Price and in the manner
set forth in Section 2.02; provided that if the omission or defect would cause the Mortgage Loan to
be other than a “qualified mortgage” as defined in Section 860G(a)(3) of the Code, any such cure or
repurchase must occur within 90 days from the date such breach was discovered. The obligation of
the Master Servicer to cure such breach or to so purchase such Mortgage Loan shall constitute the
sole remedy in respect of a breach of a representation and warranty set forth in this Section
2.03(a) available to the Certificateholders or the Trustee on behalf of the Certificateholders.

     (b) Representations and warranties relating to the Mortgage Loans are set forth in Section
2.03(b) of the Series Supplement.

     Section 2.04. Representations and Warranties of [_______________].

     The Company, as assignee of [_______________] under the Assignment Agreement, hereby assigns
to the Trustee for the benefit of Certificateholders all of its right, title and interest in
respect of the Assignment Agreement applicable to a Mortgage Loan. Insofar as the Assignment
Agreement relates to the representations and warranties made by [_______________] in respect of
such Mortgage Loan and any remedies provided thereunder for any breach of such representations and
warranties, such right, title and interest may be enforced by the Master Servicer on behalf of the
Trustee and the Certificateholders. Upon the discovery

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by the Company, the Master Servicer, the Trustee or the Custodian of a breach of any of the
representations and warranties set forth in the Assignment Agreement (which, for purposes hereof,
will be deemed to include any other cause giving rise to a repurchase obligation under the
Assignment Agreement) in respect of any Mortgage Loan which materially and adversely affects the
interests of the Certificateholders in such Mortgage Loan, the party discovering such breach shall
give prompt written notice to the other parties (the Custodian being so obligated under a Custodial
Agreement). The Master Servicer shall promptly notify [_______________] of such breach and request
that [_______________] either (i) cure such breach in all material respects within 90 days from the
date the Master Servicer was notified of such breach or (ii) purchase such Mortgage Loan from the
Trust Fund within 90 days of the date of such written notice of such breach at the Purchase Price
and in the manner set forth in Section 2.02; provided that [_______________] shall have the option
to substitute a Qualified Substitute Mortgage Loan or Loans for such Mortgage Loan if such
substitution occurs within two years following the Closing Date; provided that if the breach would
cause the Mortgage Loan to be other than a “qualified mortgage” as defined in Section 860G(a)(3) of
the Code, any such cure, repurchase or substitution must occur within 90 days from the date the
breach was discovered. If a breach of the Compliance With Laws Representation has given rise to
the obligation to repurchase or substitute a Mortgage Loan pursuant to Section 4 of the Assignment
Agreement, then the Master Servicer shall request that [_______________] pay to the Trust Fund,
concurrently with and in addition to the remedies provided in the preceding sentence, an amount
equal to any liability, penalty or expense that was actually incurred and paid out of or on behalf
of the Trust Fund, and that directly resulted from such breach, or if incurred and paid by the
Trust Fund thereafter, concurrently with such payment. In the event that [_______________] elects
to substitute a Qualified Substitute Mortgage Loan or Loans for a Deleted Mortgage Loan pursuant to
this Section 2.04, [_______________] shall deliver to the Trustee or the Custodian for the benefit
of the Certificateholders with respect to such Qualified Substitute Mortgage Loan or Loans, the
original Mortgage Note, the Mortgage, an Assignment of the Mortgage in recordable form, if required
pursuant to Section 2.01, and such other documents and agreements as are required by Section 2.01,
with the Mortgage Note endorsed as required by Section 2.01. No substitution will be made in any
calendar month after the Determination Date for such month. Monthly Payments due with respect to
Qualified Substitute Mortgage Loans in the month of substitution shall not be part of the Trust
Fund and will be retained by the Master Servicer and remitted by the Master Servicer to
[_______________] on the next succeeding Distribution Date. For the month of substitution,
distributions to the Certificateholders will include the Monthly Payment due on a Deleted Mortgage
Loan for such month and thereafter [_______________] shall be entitled to retain all amounts
received in respect of such Deleted Mortgage Loan. The Master Servicer shall amend or cause to be
amended the Mortgage Loan Schedule, and, if the Deleted Mortgag
e Loan was a Discount Mortgage Loan,
the Schedule of Discount Fractions, for the benefit of the Certificateholders to reflect the
removal of such Deleted Mortgage Loan and the substitution of the Qualified Substitute Mortgage
Loan or Loans and the Master Servicer shall deliver the amended Mortgage Loan Schedule, and, if the
Deleted Mortgage Loan was a Discount Mortgage Loan, the amended Schedule of Discount Fractions, to
the Trustee. Upon such substitution, the Qualified Substitute Mortgage Loan or Loans shall be
subject to the terms of this Agreement and the related Subservicing Agreement in all respects,
[_______________] shall be deemed to have made the representations and warranties with respect to
the Qualified Substitute Mortgage Loan contained in the related Assignment Agreement, and the
Company and the Master Servicer shall

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be deemed to have made with respect to any Qualified Substitute Mortgage Loan or Loans, as of
the date of substitution, the covenants, representations and warranties set forth in this Section
2.04, in Section 2.03 hereof and in Section 4 of the Assignment Agreement, and the Master Servicer
shall be obligated to repurchase or substitute for any Qualified Substitute Mortgage Loan as to
which a Repurchase Event (as defined in the Assignment Agreement) has occurred pursuant to Section
4 of the Assignment Agreement.

     In connection with the substitution of one or more Qualified Substitute Mortgage Loans for one
or more Deleted Mortgage Loans, the Master Servicer will determine the amount (if any) by which the
aggregate principal balance of all such Qualified Substitute Mortgage Loans as of the date of
substitution is less than the aggregate Stated Principal Balance of all such Deleted Mortgage Loans
(in each case after application of the principal portion of the Monthly Payments due in the month
of substitution that are to be distributed to the Certificateholders in the month of substitution).
[_______________] shall deposit the amount of such shortfall into the Custodial Account on the day
of substitution, without any reimbursement therefor. [_______________] shall give notice in
writing to the Trustee of such event, which notice shall be accompanied by an Officers’ Certificate
as to the calculation of such shortfall and (subject to Section 10.01(f)) by an Opinion of Counsel
to the effect that such substitution will not cause (a) any federal tax to be imposed on the Trust
Fund, including without limitation, any federal tax imposed on “prohibited transactions” under
Section 860F(a)(1) of the Code or on “contributions after the startup date” under Section
860G(d)(1) of the Code or (b) any portion of any REMIC to fail to qualify as such at any time that
any Certificate is outstanding.

     It is understood and agreed that the obligation of [_______________] to cure such breach or
purchase, or to substitute for, a Mortgage Loan as to which such a breach has occurred and is
continuing and to make any additional payments required under the Assignment Agreement in
connection with a breach of the Compliance With Laws Representation shall constitute the sole
remedy respecting such breach available to the Certificateholders or the Trustee on behalf of
Certificateholders. If the Master Servicer is [_______________], then the Trustee shall also have
the right to give the notification and require the purchase or substitution provided for in the
second preceding paragraph in the event of such a breach of a representation or warranty made by
[_______________] in the Assignment Agreement. In connection with the purchase of or substitution
for any such Mortgage Loan by [_______________], the Trustee shall assign to [_______________] all
of the Trustee’s right, title and interest in respect of the Assignment Agreement applicable to
such Mortgage Loan.

Section 2.05. Execution and Authentication of Certificates/Issuance of Certificates
Evidencing Interests in REMIC I Certificates.

          As provided in Section 2.05 of the Series Supplement.

Section 2.06. Conveyance of Uncertificated REMIC I and REMIC II Regular Interests;
Acceptance by the Trustee.

          As provided in Section 2.06 of the Series Supplement.

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Section 2.07. Issuance of Certificates Evidencing Interests in REMIC II.

          As provided in Section 2.07 of the Series Supplement.

Section 2.08. Purposes and Powers of the Trust.

     The purpose of the trust, as created hereunder, is to engage in the following activities:

     (a) to sell the Certificates to the Company in exchange for the Mortgage Loans;

     (b) to enter into and perform its obligations under this Agreement;

     (c) to engage in those activities that are necessary, suitable or convenient to accomplish the
foregoing or are incidental thereto or connected therewith; and

     (d) subject to compliance with this Agreement, to engage in such other activities as may be
required in connection with conservation of the Trust Fund and the making of distributions to the
Certificateholders.

          The trust is hereby authorized to engage in the foregoing activities. Notwithstanding the
provisions of Section 11.01, the trust shall not engage in any activity other than in connection
with the foregoing or other than as required or authorized by the terms of this Agreement while any
Certificate is outstanding, and this Section 2.08 may not be amended, without the consent of the
Certificateholders evidencing a majority of the aggregate Voting Rights of the Certificates.

ARTICLE III

ADMINISTRATION AND SERVICING

OF MORTGAGE LOANS

Section 3.01. Master Servicer to Act as Servicer.

     (a) The Master Servicer shall service and administer the Mortgage Loans in accordance with the
terms of this Agreement and the respective Mortgage Loans and shall have full power and authority,
acting alone or through Subservicers as provided in Section 3.02, to do any and all things which it
may deem necessary or desirable in connection with such servicing and administration. Without
limiting the generality of the foregoing, the Master Servicer in its own name or in the name of a
Subservicer is hereby authorized and empowered by the Trustee when the Master Servicer or the
Subservicer, as the case may be, believes it appropriate in its best judgment, to execute and
deliver, on behalf of the Certificateholders and the Trustee or any of them, any and all
instruments of satisfaction or cancellation, or of partial or full release or discharge, or of
consent to assumption or modification in connection with a proposed conveyance, or of assignment of
any Mortgage and Mortgage Note in connection with the repurchase of a Mortgage Loan and all other
comparable instruments, or with respect to the modification or re-recording of a Mortgage for the
purpose of correcting the Mortgage, the

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subordination of the lien of the Mortgage in favor of a public utility company or government
agency or unit with powers of eminent domain, the taking of a deed in lieu of foreclosure, the
commencement, prosecution or completion of judicial or non-judicial foreclosure, the conveyance of
a Mortgaged Property to the related Insurer, the acquisition of any property acquired by
foreclosure or deed in lieu of foreclosure, or the management, marketing and conveyance of any
property acquired by foreclosure or deed in lieu of foreclosure with respect to the Mortgage Loans
and with respect to the Mortgaged Properties. The Master Servicer further is authorized and
empowered by the Trustee, on behalf of the Certificateholders and the Trustee, in its own name or
in the name of the Subservicer, when the Master Servicer or the Subservicer, as the case may be,
believes it appropriate in its best judgment to register any Mortgage Loan on the MERS® System, or
cause the removal from the registration of any Mortgage Loan on the MERS® System, to execute and
deliver, on behalf of the Trustee and the Certificateholders or any of them, any and all
instruments of assignment and other comparable instruments with respect to such assignment or
re-recording of a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns. Any expenses incurred in connection with the actions described in the
preceding sentence shall be borne by the Master Servicer in accordance with Section 3.16(c), with
no right of reimbursement; provided, that if, as a result of MERS discontinuing or becoming unable
to continue operations in connection with the MERS System, it becomes necessary to remove any
Mortgage Loan from registration on the MERS System and to arrange for the assignment of the related
Mortgages to the Trustee, then any related expenses shall be reimbursable to the Master Servicer.
Notwithstanding the foregoing, subject to Section 3.07(a), the Master Servicer shall not permit any
modification with respect to any Mortgage Loan that would both constitute a sale or exchange of
such Mortgage Loan within the meaning of Section 1001 of the Code and any proposed, temporary or
final regulations promulgated thereunder (other than in connection with a proposed conveyance or
assumption of such Mortgage Loan that is treated as a Principal Prepayment in Full pursuant to
Section 3.13(d) hereof) and cause any REMIC formed under the Series Supplement to fail to qualify
as a REMIC under the Code. The Trustee shall furnish the Master Servicer with any powers of
attorney and other documents necessary or appropriate to enable the Master Servicer to service and
administer the Mortgage Loans. The Trustee shall not be liable for any action taken by the Master
Servicer or any Subservicer pursuant to such powers of attorney. In servicing and administering any
Nonsubserviced Mortgage Loan, the Master Servicer shall, to the extent not inconsistent with this
Agreement, comply with the Program Guide as if it were the originator of such Mortgage Loan and had
retained the servicing rights and obligations in respect thereof.

     (b) In connection with servicing and administering the Mortgage Loans, the Master Servicer and
any Affiliate of the Master Servicer (i) may perform services such as appraisals and brokerage
services that are not customarily provided by servicers of mortgage loans, and shall be entitled to
reasonable compensation therefor in accordance with Section 3.10 and (ii) may, at its own
discretion and on behalf of the Trustee, obtain credit information in the form of a “credit score”
from a credit repository.

     (c) All costs incurred by the Master Servicer or by Subservicers in effecting the timely
payment of taxes and assessments on the properties subject to the Mortgage Loans shall not, for the
purpose of calculating monthly distributions to the Certificateholders, be added to the amount
owing under the related Mortgage Loans, notwithstanding that the terms of such

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Mortgage Loan so permit, and such costs shall be recoverable to the extent permitted by
Section 3.10(a).

     (d) The Master Servicer may enter into one or more agreements in connection with the offering
of pass-through certificates evidencing interests in one or more of the Certificates providing for
the payment by the Master Servicer of amounts received by the Master Servicer as servicing
compensation hereunder and required to cover certain Prepayment Interest Shortfalls on the Mortgage
Loans, which payment obligation will thereafter be an obligation of the Master Servicer hereunder.

     (e) The relationship of the Master Servicer (and of any successor to the Master Servicer) to
the Depositor under this Agreement is intended by the parties to be that of an independent
contractor and not that of a joint venture, partner or agent.

     (f) The Master Servicer shall comply with the terms of Section 8 of the Assignment Agreement.

Section 3.02. Subservicing Agreements Between Master Servicer and Subservicers;
Enforcement of Subservicers’ and Sellers’ Obligations.

     (a) The Master Servicer may continue in effect Subservicing Agreements entered into by
[_______________] and Subservicers prior to the execution and delivery of this Agreement, and may
enter into new Subservicing Agreements with Subservicers, for the servicing and administration of
all or some of the Mortgage Loans. Each Subservicer of a Mortgage Loan shall be entitled to
receive and retain, as provided in the related Subservicing Agreement and in Section 3.07, the
related Subservicing Fee from payments of interest received on such Mortgage Loan after payment of
all amounts required to be remitted to the Master Servicer in respect of such Mortgage Loan. For
any Mortgage Loan that is a Nonsubserviced Mortgage Loan, the Master Servicer shall be entitled to
receive and retain an amount equal to the Subservicing Fee from payments of interest. Unless the
context otherwise requires, references in this Agreement to actions taken or to be taken by the
Master Servicer in servicing the Mortgage Loans include actions taken or to be taken by a
Subservicer on behalf of the Master Servicer. Each Subservicing Agreement will be upon such terms
and conditions as are generally required or permitted by the Program Guide and are not inconsistent
with this Agreement and as the Master Servicer and the Subservicer have agreed. A representative
form of Subservicing Agreement is attached hereto as Exhibit E. With the approval of the Master
Servicer, a Subservicer may delegate its servicing obligations to third-party servicers, but such
Subservicer will remain obligated under the related Subservicing Agreement. The Master Servicer
and a Subservicer may enter into amendments thereto or a different form of Subservicing Agreement,
and the form referred to or included in the Program Guide is merely provided for information and
shall not be deemed to limit in any respect the discretion of the Master Servicer to modify or
enter into different Subservicing Agreements; provided, however, that any such amendments or
different forms shall be consistent with and not violate the provisions of either this Agreement or
the Program Guide in a manner which would materially and adversely affect the interests of the
Certificateholders. The Program Guide and any other Subservicing Agreement entered into between
the Master Servicer and any Subservicer shall require the Subservicer to accurately and fully
report its borrower credit files to each of the Credit Repositories in a timely manner.

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     (b) As part of its servicing activities hereunder, the Master Servicer, for the benefit of the
Trustee and the Certificateholders, shall use its best reasonable efforts to enforce the
obligations of each Subservicer under the related Subservicing Agreement and of each Seller under
the related Seller’s Agreement insofar as the Company’s rights with respect to Seller’s obligation
has been assigned to the Trustee hereunder, to the extent that the non-performance of any such
Seller’s obligation would have a material and adverse effect on a Mortgage Loan, including, without
limitation, the obligation to purchase a Mortgage Loan on account of defective documentation, as
described in Section 2.02, or on account of a breach of a representation or warranty, as described
in Section 2.04. Such enforcement, including, without limitation, the legal prosecution of claims,
termination of Subservicing Agreements or Seller’s Agreements, as appropriate, and the pursuit of
other appropriate remedies, shall be in such form and carried out to such an extent and at such
time as the Master Servicer would employ in its good faith business judgment and which are normal
and usual in its general mortgage servicing activities. The Master Servicer shall pay the costs of
such enforcement at its own expense, and shall be reimbursed therefor only (i) from a general
recovery resulting from such enforcement to the extent, if any, that such recovery exceeds all
amounts due in respect of the related Mortgage Loan or (ii) from a specific recovery of costs,
expenses or attorneys fees against the party against whom such enforcement is directed. For
purposes of clarification only, the parties agree that the foregoing is not intended to, and does
not, limit the ability of the Master Servicer to be reimbursed for expenses that are incurred in
connection with the enforcement of a Seller’s obligations (insofar as the Company’s rights with
respect to such Seller’s obligations have been assigned to the Trustee hereunder) and are
reimbursable pursuant to Section 3.10(a)(viii).

Section 3.03. Successor Subservicers.

     The Master Servicer shall be entitled to terminate any Subservicing Agreement that may exist
in accordance with the terms and conditions of such Subservicing Agreement and without any
limitation by virtue of this Agreement; provided, however, that in the event of
termination of any Subservicing Agreement by the Master Servicer or the Subservicer, the Master
Servicer shall either act as servicer of the related Mortgage Loan or enter into a Subservicing
Agreement with a successor Subservicer which will be bound by the terms of the related Subservicing
Agreement. If the Master Servicer or any Affiliate of [_______________] acts as servicer, it will
not assume liability for the representations and warranties of the Subservicer which it replaces.
If the Master Servicer enters into a Subservicing Agreement with a successor Subservicer, the
Master Servicer shall use reasonable efforts to have the successor Subservicer assume liability for
the representations and warranties made by the terminated Subservicer in respect of the related
Mortgage Loans and, in the event of any such assumption by the successor Subservicer, the Master
Servicer may, in the exercise of its business judgment, release the terminated Subservicer from
liability for such representations and warranties.

Section 3.04. Liability of the Master Servicer.

     Notwithstanding any Subservicing Agreement, any of the provisions of this Agreement relating
to agreements or arrangements between the Master Servicer or a Subservicer or reference to actions
taken through a Subservicer or otherwise, the Master Servicer shall remain obligated and liable to
the Trustee and the Certificateholders for the servicing and administering of the Mortgage Loans in
accordance with the provisions of Section 3.01 without diminution of

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such obligation or liability by virtue of such Subservicing Agreements or arrangements or by
virtue of indemnification from the Subservicer or the Company and to the same extent and under the
same terms and conditions as if the Master Servicer alone were servicing and administering the
Mortgage Loans. The Master Servicer shall be entitled to enter into any agreement with a
Subservicer or Seller for indemnification of the Master Servicer and nothing contained in this
Agreement shall be deemed to limit or modify such indemnification.

Section 3.05. No Contractual Relationship Between Subservicer and Trustee or Certificateholders.

     Any Subservicing Agreement that may be entered into and any other transactions or services
relating to the Mortgage Loans involving a Subservicer in its capacity as such and not as an
originator shall be deemed to be between the Subservicer and the Master Servicer alone and the
Trustee and the Certificateholders shall not be deemed parties thereto and shall have no claims,
rights, obligations, duties or liabilities with respect to the Subservicer in its capacity as such
except as set forth in Section 3.06. The foregoing provision shall not in any way limit a
Subservicer’s obligation to cure an omission or defect or to repurchase a Mortgage Loan as referred
to in Section 2.02 hereof.

Section 3.06. Assumption or Termination of Subservicing Agreements by Trustee.

     (a) If the Master Servicer shall for any reason no longer be the master servicer (including by
reason of an Event of Default), the Trustee, its designee or its successor shall thereupon assume
all of the rights and obligations of the Master Servicer under each Subservicing Agreement that may
have been entered into. The Trustee, its designee or the successor servicer for the Trustee shall
be deemed to have assumed all of the Master Servicer’s interest therein and to have replaced the
Master Servicer as a party to the Subservicing Agreement to the same extent as if the Subservicing
Agreement had been assigned to the assuming party except that the Master Servicer shall not thereby
be relieved of any liability or obligations under the Subservicing Agreement.

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

Section 3.07. Collection of Certain Mortgage Loan Payments; Deposits to Custodial Account.

     (a) The Master 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 and the terms and provisions of any related Primary Insurance
Policy, follow such collection procedures as it would employ in its good faith business judgment
and which are normal and usual in its general mortgage servicing activities. Consistent with the
foregoing, the Master Servicer may in its discretion (i) waive any late
payment charge or any prepayment charge or penalty interest in connection with the prepayment

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of a Mortgage Loan and (ii) extend the Due Date for payments due on a Mortgage Loan in accordance
with the Program Guide; provided, however, that the Master Servicer shall first determine that any
such waiver or extension will not impair the coverage of any related Primary Insurance Policy or
materially adversely affect the lien of the related Mortgage. Notwithstanding anything in this
Section to the contrary, the Master Servicer shall not enforce any prepayment charge to the extent
that such enforcement would violate any applicable law. In the event of any such arrangement, the
Master Servicer shall make timely P&I Advances on the related Mortgage Loan during the scheduled
period in accordance with the amortization schedule of such Mortgage Loan without modification
thereof by reason of such arrangements unless otherwise agreed to by the Holders of the Classes of
Certificates affected thereby; provided, however, that no such extension shall be made if any such
P&I Advance would be a Nonrecoverable Advance. Consistent with the terms of this Agreement, the
Master Servicer may also waive, modify or vary any term of any Mortgage Loan or consent to the
postponement of strict compliance with any such term or in any manner grant indulgence to any
Mortgagor if in the Master Servicer’s determination such waiver, modification, postponement or
indulgence is not materially adverse to the interests of the Certificateholders (taking into
account any estimated Realized Loss that might result absent such action); provided, however, that
the Master Servicer may not modify materially or permit any Subservicer to modify any Mortgage
Loan, including without limitation any modification that would change the Mortgage Rate, forgive
the payment of any principal or interest (unless in connection with the liquidation of the related
Mortgage Loan or except in connection with prepayments to the extent that such reamortization is
not inconsistent with the terms of the Mortgage Loan), capitalize any amounts owing on the Mortgage
Loan by adding such amount to the outstanding principal balance of the Mortgage Loan, or extend the
final maturity date of such Mortgage Loan, unless such Mortgage Loan is in default or, in the
judgment of the Master Servicer, such default is reasonably foreseeable; provided, further, that no
such modification shall reduce the interest rate on a Mortgage Loan below the rate at which the
Subservicing Fee with respect to such Mortgage Loan accrues plus the rate at which the premium paid
to the Certificate Insurer, if any, accrues. In addition, any amounts owing on a Mortgage Loan to
the outstanding principal balance of such Mortgage Loan shall be implemented in accordance with the
Program Guide and may be implemented only by Subservicers that have been approved by the Master
Servicer for such purpose. Any modification made pursuant to any of the three preceding sentences
that is not made pursuant to the Home Affordable Modification Program established pursuant to the
Emergency Economic Stabilization Act of 2008, as amended, as determined by the Company or the
Master Servicer, shall only be permitted if the Company or the Master Servicer obtains and delivers
to the Trustee an Opinion of Counsel, addressed to the Trustee and the Master Servicer, to the
effect that such modification will not result in the imposition of taxes on “prohibited
transactions” as defined in Section 860F of the Code or cause any REMIC formed under the Pooling
and Servicing Agreement to fail to qualify as a REMIC (for federal (or any applicable State or
local) income tax purposes) at any time that any Certificates are outstanding. The Trustee shall
have no obligation to determine whether any such Opinion of Counsel is required with respect to the
modification of any Mortgage Loans. In connection with any Curtailment of a Mortgage Loan, the
Master Servicer, to the extent not inconsistent with the terms of the Mortgage Note
and local law
and practice, may permit the Mortgage Loan to be reamortized such that the Monthly Payment is
recalculated as an amount that will fully amortize the remaining Stated Principal
Balance thereof by the original Maturity Date based on the original Mortgage Rate; provided,

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that such re-amortization shall not be permitted if it would constitute a reissuance of the
Mortgage Loan for federal income tax purposes, except if such reissuance is described in Treasury
Regulation Section 1.860G-2(b)(3).

     (b) The Master Servicer shall establish and maintain a Custodial Account in which the Master
Servicer shall deposit or cause to be deposited on a daily basis, except as otherwise specifically
provided herein, the following payments and collections remitted by Subservicers or received by it
in respect of the Mortgage Loans subsequent to the Cut-off Date (other than in respect of principal
and interest on the Mortgage Loans due on or before the Cut-off Date):

     (i) All payments on account of principal, including Principal Prepayments made by
Mortgagors on the Mortgage Loans and the principal component of any Subservicer Advance or
of any REO Proceeds received in connection with an REO Property for which an REO Disposition
has occurred;

     (ii) All payments on account of interest at the Adjusted Mortgage Rate on the Mortgage
Loans, including Buydown Funds, if any, and the interest component of any Subservicer
Advance or of any REO Proceeds received in connection with an REO Property for which an REO
Disposition has occurred;

     (iii) Insurance Proceeds, Subsequent Recoveries and Liquidation Proceeds (net of any
related expenses of the Subservicer);

     (iv) All proceeds of any Mortgage Loans purchased pursuant to Section 2.02, 2.03, 2.04
or 4.07 (including amounts received from [_______________] pursuant to the last paragraph of
Section 4 of the Assignment Agreement in respect of any liability, penalty or expense that
resulted from a breach of the Compliance With Laws Representation and all amounts required
to be deposited in connection with the substitution of a Qualified Substitute Mortgage Loan
pursuant to Section 2.03 or 2.04;

     (v) Any amounts required to be deposited pursuant to Section 3.07(c), 3.08(b) or 3.21;

     (vi) All amounts transferred from the Certificate Account to the Custodial Account in
accordance with Section 4.02(a); and

     (vii) Any amounts realized by the Subservicer and received by the Master Servicer in
respect of any Additional Collateral.

The foregoing requirements for deposit in the Custodial Account shall be exclusive, it being
understood and agreed that, without limiting the generality of the foregoing, payments on the
Mortgage Loans which are not part of the Trust Fund (consisting of payments in respect of principal
and interest on the Mortgage Loans due on or before the Cut-off Date) and, unless otherwise set
forth in the series supplement, payments or collections in the nature of prepayment charges or late
payment charges or assumption fees may but need not be deposited by the Master Servicer in the
Custodial Account. In the event any amount not required to be deposited in the Custodial Account
is so deposited, the Master Servicer may at any time withdraw such amount
from the Custodial Account, any provision herein to the contrary notwithstanding. Further, the

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Master Servicer shall, not less frequently than every two Business days, remove from the Custodial
Account any funds relating to Mortgage Loans that are owned by the Master Servicer.

     With respect to Insurance Proceeds, Liquidation Proceeds, REO Proceeds and the proceeds of the
purchase of any Mortgage Loan pursuant to Sections 2.02, 2.03, 2.04 and 4.07 received in any
calendar month, the Master Servicer may elect to treat such amounts as included in the Available
Distribution Amount for the Distribution Date in the month of receipt, but is not obligated to do
so. If the Master Servicer so elects, such amounts will be deemed to have been received (and any
related Realized Loss shall be deemed to have occurred) on the last day of the month prior to the
receipt thereof.

     (c) The Master Servicer shall use its best efforts to cause the institution maintaining the
Custodial Account to invest the funds in the Custodial Account attributable to the Mortgage Loans
in Permitted Investments which shall mature not later than the Certificate Account Deposit Date
next following the date of such investment (with the exception of the Amount Held for Future
Distribution) and which shall not be sold or disposed of prior to their maturities. All income and
gain realized from any such investment shall be for the benefit of the Master Servicer as
additional servicing compensation and shall be subject to its withdrawal or order from time to
time. The amount of any losses incurred in respect of any such investments attributable to the
investment of amounts in respect of the Mortgage Loans shall be deposited in the Custodial Account
by the Master Servicer out of its own funds immediately as realized without any right of
reimbursement.

     (d) The Master Servicer shall give notice to the Trustee and the Company of any change in the
location of the Custodial Account and the location of the Certificate Account prior to the use
thereof.

Section 3.08. Subservicing Accounts; Servicing Accounts.

     (a) In those cases where a Subservicer is servicing a Mortgage Loan pursuant to a Subservicing
Agreement, the Master Servicer shall cause the Subservicer, pursuant to the Subservicing Agreement,
to establish and maintain one or more Subservicing Accounts which shall be an Eligible Account or,
if such account is not an Eligible Account, shall generally satisfy the requirements of the Program
Guide and be otherwise acceptable to the Master Servicer and each Rating Agency. The Subservicer
will be required thereby to deposit into the Subservicing Account on a daily basis all proceeds of
Mortgage Loans received by the Subservicer, less its Subservicing Fees and unreimbursed Subservicer
Advances, Servicing Advances and expenses, to the extent permitted by the Subservicing Agreement.
If the Subservicing Account is not an Eligible Account, the Master Servicer shall be deemed to have
received such monies upon receipt thereof by the Subservicer. The Subservicer shall not be
required to deposit in the Subservicing Account payments or collections in the nature of prepayment
charges or late charges or assumption fees. On or before the date specified in the Program Guide,
but in no event later than the Determination Date, the Master Servicer shall cause the Subservicer,
pursuant to the Subservicing Agreement, to remit to the Master Servicer for deposit in the
Custodial Account all funds held in the Subservicing Account with respect to each Mortgage Loan
serviced by such Subservicer that are required to be remitted to the Master Servicer. The
Subservicer will also be required, pursuant to the Subservicing Agreement, to make Subservicer

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Advances on such scheduled date of remittance amounts equal to any scheduled monthly installments
of principal and interest less its Subservicing Fees on any Mortgage Loans for which payment was
not received by the Subservicer. This obligation to advance with respect to each Mortgage Loan
will continue up to and including the first of the month following the date on which the related
Mortgaged Property is sold at a foreclosure sale or is acquired by the Trust Fund by deed in lieu
of foreclosure or otherwise. All such advances received by the Master Servicer shall be deposited
promptly by it in the Custodial Account.

     (b) The Subservicer may also be required, pursuant to the Subservicing Agreement, to remit to
the Master Servicer for deposit in the Custodial Account interest at the Adjusted Mortgage Rate (or
Modified Net Mortgage Rate in the case of a Modified Mortgage Loan) on any Curtailment received by
such Subservicer in respect of a Mortgage Loan from the related Mortgagor during any month that is
to be applied by the Subservicer to reduce the unpaid principal balance of the related Mortgage
Loan as of the first day of such month, from the date of application of such Curtailment to the
first day of the following month.

     (c) In addition to the Custodial Account and the Certificate Account, the Master Servicer
shall for any Nonsubserviced Mortgage Loan, and shall cause the Subservicers for Subserviced
Mortgage Loans to, establish and maintain one or more Servicing Accounts and deposit and retain
therein all collections from the Mortgagors (or advances from Subservicers) for the payment of
taxes, assessments, hazard insurance premiums, Primary Insurance Policy premiums, if applicable, or
comparable items for the account of the Mortgagors. Each Servicing Account shall satisfy the
requirements for a Subservicing Account and, to the extent permitted by the Program Guide or as is
otherwise acceptable to the Master Servicer, may also function as a Subservicing Account.
Withdrawals of amounts related to the Mortgage Loans from the Servicing Accounts may be made only
to effect timely payment of taxes, assessments, hazard insurance premiums, Primary Insurance Policy
premiums, if applicable, or comparable items, to reimburse the Master Servicer or Subservicer out
of related collections for any payments made pursuant to Sections 3.11 (with respect to the Primary
Insurance Policy) and 3.12(a) (with respect to hazard insurance), to refund to any Mortgagors any
sums as may be determined to be overages, to pay interest, if required, to Mortgagors on balances
in the Servicing Account or to clear and terminate the Servicing Account at the termination of this
Agreement in accordance with Section 9.01 or in accordance with the Program Guide. As part of its
servicing duties, the Master Servicer shall, and the Subservicers will, pursuant to the
Subservicing Agreements, be required to pay to the Mortgagors interest on funds in this account to
the extent required by law.

     (d) The Master Servicer shall make Servicing Advances to pay taxes, assessments, hazard
insurance premiums, Primary Insurance Policy premiums, if applicable, or comparable items on all
Mortgage Loans that are not timely paid by the Mortgagors or advanced by the Subservicers on the
date when the tax, premium or other cost for which such payment is intended is due, but the Master
Servicer shall be required so to advance only to the extent that such Servicing Advances, in the
good faith judgment of the Master Servicer would not be Nonrecoverable Advances.

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    Section 3.09. Access to Certain Documentation and Information Regarding the Mortgage Loans.

     If compliance with this Section 3.09 shall make any Class of Certificates legal for investment
by federally insured savings and loan associations, the Master Servicer shall provide, or cause the
Subservicers to provide, to the Trustee, the Office of Thrift Supervision or the FDIC and the
supervisory agents and examiners thereof access to the documentation regarding the Mortgage Loans
required by applicable regulations of the Office of Thrift Supervision, such access being afforded
without charge but only upon reasonable request and during normal business hours at the offices
designated by the Master Servicer. The Master Servicer shall permit such representatives to
photocopy any such documentation and shall provide equipment for that purpose at a charge
reasonably approximating the cost of such photocopying to the Master Servicer.

     Section 3.10. Permitted Withdrawals from the Custodial Account.

     (a) The Master Servicer may, from time to time as provided herein, make withdrawals from the
Custodial Account of amounts on deposit therein pursuant to Section 3.07 that are attributable to
the Mortgage Loans for the following purposes:

     (i) to make deposits into the Certificate Account in the amounts and in the manner
provided for in Section 4.01;

     (ii) to reimburse itself or the related Subservicer for previously unreimbursed
Advances, Subservicer Advances or other expenses made pursuant to Sections 3.01, 3.07(a),
3.08, 3.11, 3.12(a), 3.14 and 4.04 or otherwise reimbursable pursuant to the terms of this
Agreement, such withdrawal right being limited to amounts received on the related Mortgage
Loans (including, for this purpose, REO Proceeds, Insurance Proceeds, Liquidation Proceeds
and proceeds from the purchase of a Mortgage Loan pursuant to Section 2.02, 2.03, 2.04 or
4.07) which represent (A) Late Collections of Monthly Payments for which any such advance
was made in the case of Subservicer Advances or Advances pursuant to Section 4.04 and (B)
recoveries of amounts in respect of which such advances were made in the case of Servicing
Advances;

     (iii) to pay to the related Subservicer (if not previously retained by such
Subservicer) out of each payment received by the Master Servicer on account of interest on a
Mortgage Loan as contemplated by Sections 3.14 and 3.16, an amount equal to that remaining
portion of any such payment as to interest (but not in excess of the Subservicing Fee, if
not previously retained) which, when deducted, will result in the remaining amount of such
interest being interest at the Net Mortgage Rate (or Modified Net Mortgage Rate in the case
of a Modified Mortgage Loan) on the amount specified in the amortization schedule of the
related Mortgage Loan as the principal balance thereof at the beginning of the period
respecting which such interest was paid after giving effect to any previous Curtailments;

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     (iv) to pay to itself as servicing compensation any interest or investment income
earned on funds and other property deposited in or credited to the Custodial Account that it
is entitled to withdraw pursuant to Section 3.07(c);

     (v) to pay to itself as additional servicing compensation any Foreclosure Profits and
any amounts paid by a Mortgagor in connection with a Principal Prepayment in Full in respect
of interest for any period during the calendar month in which such Principal Prepayment in
Full is to be distributed to the Certificateholders;

     (vi) to pay to itself, a Subservicer, a Seller, [_______________], the Company or any
other appropriate Person, as the case may be, with respect to each Mortgage Loan or property
acquired in respect thereof that has been purchased or otherwise transferred pursuant to
Section 2.02, 2.03, 2.04, 4.07 or 9.01, all amounts received thereon and not required to be
distributed to the Certificateholders as of the date on which the related Stated Principal
Balance or Purchase Price is determined;

     (vii) to reimburse itself or the related Subservicer for (1) any Nonrecoverable
Advance, (2) any P&I Advance made with respect to a Mortgage Loan that is 90 or more days
Delinquent or (3) any made in connection with a modified Mortgage Loan that is in default
or, in the judgment of the Master Servicer, default is reasonably foreseeable pursuant to
Section 3.07(a), to the extent the amount of the Advance was added to the Stated Principal
Balance of the Mortgage Loan in a prior calendar month, or any Advance reimbursable to the
Master Servicer pursuant to Section 4.02(a);

     (viii) to reimburse itself or the Company for any advance made and expenses incurred by
it or the Company, to the extent such advances or expenses are reimbursable to it or the
Company pursuant to this Agreement (including, but not limited to, amounts reimbursable (A)
pursuant to Sections 3.01(a), 3.01(b), 3.11, 3.13, 3.14(c), 6.03 or 10.01 and (B) in
connection with enforcing, in accordance with this Agreement, any repurchase, substitution
or indemnification obligation of any Seller (other than an Affiliate of the Company)
pursuant to the related Seller’s Agreement);

     (ix) to reimburse itself for Servicing Advances expended by it (a) pursuant to Section
3.14 in good faith in connection with the restoration of property damaged by an Uninsured
Cause, and (b) in connection with the liquidation of a Mortgage Loan or disposition of an
REO Property to the extent not otherwise reimbursed pursuant to clause (ii) or (viii) above;
and

     (x) to withdraw any amount deposited in the Custodial Account that was not required to
be deposited therein pursuant to Section 3.07.

     (b) Since, in connection with withdrawals pursuant to clauses (ii), (iii), (v) and (vi), the
Master Servicer’s entitlement thereto is limited to collections or other recoveries on the related
Mortgage Loan, the Master Servicer shall keep and maintain separate accounting, on a Mortgage Loan
by Mortgage Loan basis, for the purpose of justifying any withdrawal from the Custodial Account
pursuant to such clauses.

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     Section 3.11. Maintenance of the Primary Insurance Policies; Collections Thereunder.

     (a) The Master Servicer shall not take, or permit any Subservicer to take, any action which
would result in non-coverage under any applicable Primary Insurance Policy of any loss which, but
for the actions of the Master Servicer or Subservicer, would have been covered thereunder. To the
extent coverage is available, the Master Servicer shall keep or cause to be kept in full force and
effect each such Primary Insurance Policy until the principal balance of the related Mortgage Loan
secured by a Mortgaged Property is reduced to 80% or less of the Appraised Value in the case of
such a Mortgage Loan having a Loan-to-Value Ratio at origination in excess of 80%, provided that
such Primary Insurance Policy was in place as of the Cut-off Date and the Company had knowledge of
such Primary Insurance Policy. The Master Servicer shall be entitled to cancel or permit the
discontinuation of any Primary Insurance Policy as to any Mortgage Loan, if the Stated Principal
Balance of the Mortgage Loan is reduced below an amount equal to 80% of the appraised value of the
related Mortgaged Property as determined in any appraisal thereof after the Closing Date, or if the
Loan-to-Value Ratio is reduced below 80% as a result of principal payments on the Mortgage Loan
after the Closing Date. In the event that the Company gains knowledge that as of the Closing Date,
a Mortgage Loan had a Loan-to-Value Ratio at origination in excess of 80% and is not the subject of
a Primary Insurance Policy (and was not included in any exception to the representation in Section
2.03(b)(iv)) and that such Mortgage Loan has a current Loan-to-Value Ratio in excess of 80% then
the Master Servicer shall use its reasonable efforts to obtain and maintain a Primary Insurance
Policy to the extent that such a policy is obtainable at a reasonable price. The Master Servicer
shall not cancel or refuse to renew any such Primary Insurance Policy applicable to a
Nonsubserviced Mortgage Loan, or consent to any Subservicer canceling or refusing to renew any such
Primary Insurance Policy applicable to a Mortgage Loan subserviced by it, that is in effect at the
date of the initial issuance of the Certificates and is required to be kept in force hereunder
unless the replacement Primary Insurance Policy for such canceled or non-renewed policy is
maintained with an insurer whose claims-paying ability is acceptable to each Rating Agency for
mortgage pass-through certificates having a rating equal to or better than the lower of the
then-current rating or the rating assigned to the Certificates as of the Closing Date by such
Rating Agency.

     (b) In connection with its activities as administrator and servicer of the Mortgage Loans, the
Master Servicer agrees to present or to cause the related Subservicer to present, on behalf of the
Master Servicer, the Subservicer, if any, the Trustee and Certificateholders, claims to the related
Insurer under any Primary Insurance Policies, in a timely manner in accordance with such policies,
and, in this regard, to take or cause to be taken such reasonable action as shall be necessary to
permit recovery under any Primary Insurance Policies respecting defaulted Mortgage Loans. Pursuant
to Section 3.07, any Insurance Proceeds collected by or remitted to the Master Servicer under any
Primary Insurance Policies shall be deposited in the Custodial Account, subject to withdrawal
pursuant to Section 3.10.

     Section 3.12. Maintenance of Fire Insurance and Omissions and Fidelity Coverage.

     (a) The Master Servicer shall cause to be maintained for each Mortgage Loan (other than a
Cooperative Loan) fire insurance with extended coverage in an amount which is equal to

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the lesser of the principal balance owing on such Mortgage Loan or 100 percent of the
insurable value of the improvements; provided, however, that such coverage may not
be less than the minimum amount required to fully compensate for any loss or damage on a
replacement cost basis. To the extent it may do so without breaching the related Subservicing
Agreement, the Master Servicer shall replace any Subservicer that does not cause such insurance, to
the extent it is available, to be maintained. The Master Servicer shall also cause to be
maintained on property acquired upon foreclosure, or deed in lieu of foreclosure, of any Mortgage
Loan (other than a Cooperative Loan), fire insurance with extended coverage in an amount which is
at least equal to the amount necessary to avoid the application of any co-insurance clause
contained in the related hazard insurance policy. Pursuant to Section 3.07, any amounts collected
by the Master Servicer under any such policies (other than amounts to be applied to the restoration
or repair of the related Mortgaged Property or property thus acquired or amounts released to the
Mortgagor in accordance with the Master Servicer’s normal servicing procedures) shall be deposited
in the Custodial Account, subject to withdrawal pursuant to Section 3.10. Any cost incurred by the
Master Servicer in maintaining any such insurance shall not, for the purpose of calculating monthly
distributions to the Certificateholders, be added to the amount owing under the Mortgage Loan,
notwithstanding that the terms of the Mortgage Loan so permit. Such costs shall be recoverable by
the Master Servicer out of related late payments by the Mortgagor or out of Insurance Proceeds and
Liquidation Proceeds to the extent permitted by Section 3.10. It is understood and agreed that no
earthquake or other additional insurance is to be required of any Mortgagor or maintained on
property acquired in respect of a Mortgage 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.
Whenever the improvements securing a Mortgage Loan (other than a Cooperative Loan) are located at
the time of origination of such Mortgage Loan in a federally designated special flood hazard area,
the Master Servicer shall cause flood insurance (to the extent available) to be maintained in
respect thereof. Such flood insurance shall be in an amount equal to the lesser of (i) the amount
required to compensate for any loss or damage to the Mortgaged Property on a replacement cost basis
and (ii) the maximum amount of such insurance available for the related Mortgaged Property under
the national flood insurance program (assuming that the area in which such Mortgaged Property is
located is participating in such program).

     If the Master Servicer shall obtain and maintain a blanket fire insurance policy with extended
coverage insuring against hazard losses on all of the Mortgage Loans, it shall conclusively be
deemed to have satisfied its obligations as set forth in the first sentence of this Section
3.12(a), it being understood and agreed that such policy may contain a deductible clause, in which
case the Master Servicer shall, in the event that there shall not have been maintained on the
related Mortgaged Property a policy complying with the first sentence of this Section 3.12(a) and
there shall have been a loss which would have been covered by such policy, deposit in the
Certificate Account the amount not otherwise payable under the blanket policy because of such
deductible clause. Any such deposit by the Master Servicer shall be made on the Certificate
Account Deposit Date next preceding the Distribution Date which occurs in the month following the
month in which payments under any such policy would have been deposited in the Custodial Account.
In connection with its activities as administrator and servicer of the Mortgage Loans, the Master
Servicer agrees to present, on behalf of itself, the Trustee and the Certificateholders, claims
under any such blanket policy.

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     (b) The Master Servicer shall obtain and maintain at its own expense and keep in full force
and effect throughout the term of this Agreement a blanket fidelity bond and an errors and
omissions insurance policy covering the Master Servicer’s officers and employees and other persons
acting on behalf of the Master Servicer in connection with its activities under this Agreement.
The amount of coverage shall be at least equal to the coverage that would be required by Fannie Mae
or Freddie Mac, whichever is greater, with respect to the Master Servicer if the Master Servicer
were servicing and administering the Mortgage Loans for Fannie Mae or Freddie Mac. In the event
that any such bond or policy ceases to be in effect, the Master Servicer shall obtain a comparable
replacement bond or policy from an issuer or insurer, as the case may be, meeting the requirements,
if any, of the Program Guide and acceptable to the Company. Coverage of the Master Servicer under
a policy or bond obtained by an Affiliate of the Master Servicer and providing the coverage
required by this Section 3.12(b) shall satisfy the requirements of this Section 3.12(b).

     Section 3.13. Enforcement of Due-on-Sale Clauses; Assumption and Modification Agreements; Certain Assignments.

     (a) When any Mortgaged Property is conveyed by the Mortgagor, the Master Servicer or
Subservicer, to the extent it has knowledge of such conveyance, shall enforce any due-on-sale
clause contained in any Mortgage Note or Mortgage, to the extent permitted under applicable law and
governmental regulations, but only to the extent that such enforcement will not adversely affect or
jeopardize coverage under any Required Insurance Policy. Notwithstanding the foregoing:

     (i) the Master Servicer shall not be deemed to be in default under this Section 3.13(a)
by reason of any transfer or assumption which the Master Servicer is restricted by law from
preventing; and

     (ii) if the Master Servicer determines that it is reasonably likely that any Mortgagor
will bring, or if any Mortgagor does bring, legal action to declare invalid or otherwise
avoid enforcement of a due-on-sale clause contained in any Mortgage Note or Mortgage, the
Master Servicer shall not be required to enforce the due-on-sale clause or to contest such
action.

     (b) Subject to the Master Servicer’s duty to enforce any due-on-sale clause to the extent set
forth in Section 3.13(a), in any case in which a Mortgaged Property is to be conveyed to a Person
by a Mortgagor, and such Person is to enter into an assumption or modification agreement or
supplement to the Mortgage Note or Mortgage which requires the signature of the Trustee, or if an
instrument of release signed by the Trustee is required releasing the Mortgagor from liability on
the Mortgage Loan, the Master Servicer is authorized, subject to the requirements of the sentence
next following, to execute and deliver, on behalf of the Trustee, the assumption agreement with the
Person to whom the Mortgaged Property is to be conveyed and such modification agreement or
supplement to the Mortgage Note or Mortgage or other instruments as are reasonable or necessary to
carry out the terms of the Mortgage Note or Mortgage or otherwise to comply with any applicable
laws regarding assumptions or the transfer of the Mortgaged Property to such Person;
provided, however, none of such terms and requirements shall either (i) both (A)
constitute a “significant modification” effecting an

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exchange or reissuance of such Mortgage Loan under the REMIC Provisions and (B) cause any
portion of any REMIC formed under the Series Supplement to fail to qualify as a REMIC under the
Code or (subject to Section 10.01(f)), result in the imposition of any tax on “prohibited
transactions” or (ii) constitute “contributions” after the start-up date under the REMIC
Provisions. The Master Servicer shall execute and deliver such documents only if it reasonably
determines that (i) its execution and delivery thereof will not conflict with or violate any terms
of this Agreement or cause the unpaid balance and interest on the Mortgage Loan to be uncollectible
in whole or in part, (ii) any required consents of insurers under any Required Insurance Policies
have been obtained and (iii) subsequent to the closing of the transaction involving the assumption
or transfer (A) the Mortgage Loan will continue to be secured by a first mortgage lien pursuant to
the terms of the Mortgage, (B) such transaction will not adversely affect the coverage under any
Required Insurance Policies, (C) the Mortgage Loan will fully amortize over the remaining term
thereof, (D) no material term of the Mortgage Loan (including the interest rate on the Mortgage
Loan) will be altered nor will the term of the Mortgage Loan be changed and (E) if the
seller/transferor of the Mortgaged Property is to be released from liability on the Mortgage Loan,
such release will not (based on the Master Servicer’s or Subservicer’s good faith determination)
adversely affect the collectability of the Mortgage Loan. Upon receipt of appropriate instructions
from the Master Servicer in accordance with the foregoing, the Trustee shall execute any necessary
instruments for such assumption or substitution of liability as directed in writing by the Master
Servicer. Upon the closing of the transactions contemplated by such documents, the Master Servicer
shall cause the originals or true and correct copies of the assumption agreement, the release (if
any), or the modification or supplement to the Mortgage Note or Mortgage to be delivered to the
Trustee or the Custodian and deposited with the Mortgage File for such Mortgage Loan. Any fee
collected by the Master Servicer or such related Subservicer for entering into an assumption or
substitution of liability agreement will be retained by the Master Servicer or such Subservicer as
additional servicing compensation.

     (c) The Master Servicer or the related Subservicer, as the case may be, shall be entitled to
approve a request from a Mortgagor for a partial release of the related Mortgaged Property, the
granting of an easement thereon in favor of another Person, any alteration or demolition of the
related Mortgaged Property (or, with respect to a Cooperative Loan, the related Cooperative
Apartment) without any right of reimbursement or other similar matters if it has determined,
exercising its good faith business judgment in the same manner as it would if it were the owner of
the related Mortgage Loan, that the security for, and the timely and full collectability of, such
Mortgage Loan would not be adversely affected thereby and that any portion of any REMIC formed
under the Series Supplement would not fail to continue to qualify as a REMIC under the Code as a
result thereof and (subject to Section 10.01(f)) that no tax on “prohibited transactions” or
“contributions” after the startup day would be imposed on any such REMIC as a result thereof. Any
fee collected by the Master Servicer or the related Subservicer for processing such a request will
be retained by the Master Servicer or such Subservicer as additional servicing compensation.

     (d) Subject to any other applicable terms and conditions of this Agreement, the Trustee and
Master Servicer shall be entitled to approve an assignment in lieu of satisfaction with respect to
any Mortgage Loan, provided the obligee with respect to such Mortgage Loan following such proposed
assignment provides the Trustee and Master Servicer with a “Lender Certification for Assignment of
Mortgage Loan” in the form attached hereto as Exhibit M, in

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form and substance satisfactory to the Trustee and Master Servicer, providing the following:
(i) that the substance of the assignment is, and is intended to be, a refinancing of such Mortgage;
(ii) that the Mortgage Loan following the proposed assignment will have a rate of interest at least
0.25 percent below or above the rate of interest on such Mortgage Loan prior to such proposed
assignment; and (iii) that such assignment is at the request of the borrower under the related
Mortgage Loan. Upon approval of an assignment in lieu of satisfaction with respect to any Mortgage
Loan, the Master Servicer shall receive cash in an amount equal to the unpaid principal balance of
and accrued interest on such Mortgage Loan and the Master Servicer shall treat such amount as a
Principal Prepayment in Full with respect to such Mortgage Loan for all purposes hereof.

     Section 3.14. Realization Upon Defaulted Mortgage Loans.

     (a) The Master Servicer shall foreclose upon or otherwise comparably convert (which may
include an REO Acquisition) the ownership of properties securing such of the Mortgage Loans as come
into and continue in default and as to which no satisfactory arrangements can be made for
collection of delinquent payments pursuant to Section 3.07. Alternatively, the Master Servicer may
take other actions in respect of a defaulted Mortgage Loan, which may include (i) accepting a short
sale (a payoff of the Mortgage Loan for an amount less than the total amount contractually owed in
order to facilitate a sale of the Mortgaged Property by the Mortgagor) or permitting a short
refinancing (a payoff of the Mortgage Loan for an amount less than the total amount contractually
owed in order to facilitate refinancing transactions by the Mortgagor not involving a sale of the
Mortgaged Property), (ii) arranging for a repayment plan or (iii) agreeing to a modification in
accordance with Section 3.07. In connection with such foreclosure or other conversion, the Master
Servicer shall, consistent with Section 3.11, follow such practices and procedures as it shall deem
necessary or advisable, as shall be normal and usual in its general mortgage servicing activities
and as shall be required or permitted by the Program Guide; provided that the Master Servicer shall
not be liable in any respect hereunder if the Master Servicer is acting in connection with any such
foreclosure or other conversion in a manner that is consistent with the provisions of this
Agreement. The Master Servicer, however, shall not be required to expend its own funds or incur
other reimbursable charges in connection with any foreclosure, or attempted foreclosure which is
not completed, or towards the restoration of any property unless it shall determine (i) that such
restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to
Holders of Certificates of one or more Classes after reimbursement to itself for such expenses or
charges and (ii) that such expenses or charges will be recoverable to it through Liquidation
Proceeds, Insurance Proceeds, or REO Proceeds (respecting which it shall have priority for purposes
of withdrawals from the Custodial Account pursuant to Section 3.10, whether or not such expenses
and charges are actually recoverable from related Liquidation Proceeds, Insurance Proceeds or REO
Proceeds). In the event of such a determination by the Master Servicer pursuant to this Section
3.14(a), the Master Servicer shall be entitled to reimbursement of such amounts pursuant to Section
3.10.

          In addition to the foregoing, the Master Servicer shall use its best reasonable efforts to
realize upon any Additional Collateral for such of the Additional Collateral Loans as come into and
continue in default and as to which no satisfactory arrangements can be made for collection of
delinquent payments pursuant to Section 3.07; provided that the Master Servicer shall not, on
behalf of the Trustee, obtain title to any such Additional Collateral as a result of or in lieu of
the

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disposition thereof or otherwise; and provided further that (i) the Master Servicer shall not
proceed with respect to such Additional Collateral in any manner that would impair the ability to
recover against the related Mortgaged Property, and (ii) the Master Servicer shall proceed with any
REO Acquisition in a manner that preserves the ability to apply the proceeds of such Additional
Collateral against amounts owed under the defaulted Mortgage Loan. Any proceeds realized from such
Additional Collateral (other than amounts to be released to the Mortgagor or the related guarantor
in accordance with procedures that the Master Servicer would follow in servicing loans held for its
own account, subject to the terms and conditions of the related Mortgage and Mortgage Note and to
the terms and conditions of any security agreement, guarantee agreement, mortgage or other
agreement governing the disposition of the proceeds of such Additional Collateral) shall be
deposited in the Custodial Account, subject to withdrawal pursuant to Section 3.10. Any other
payment received by the Master Servicer in respect of such Additional Collateral shall be deposited
in the Custodial Account subject to withdrawal pursuant to Section 3.10.

     For so long as the Master Servicer is the Master Servicer under the Credit Support Pledge
Agreement, the Master Servicer shall perform its obligations under the Credit Support Pledge
Agreement in accordance with such Agreement and in a manner that is in the best interests of the
Certificateholders.

     Concurrently with the foregoing, the Master Servicer may pursue any remedies that may be
available in connection with a breach of a representation and warranty with respect to any such
Mortgage Loan in accordance with Sections 2.03 and 2.04. However, the Master Servicer is not
required to continue to pursue both foreclosure (or similar remedies) with respect to the Mortgage
Loans and remedies in connection with a breach of a representation and warranty if the Master
Servicer determines in its reasonable discretion that one such remedy is more likely to result in a
greater recovery as to the Mortgage Loan. Upon the occurrence of a Cash Liquidation or REO
Disposition, following the deposit in the Custodial Account of all Insurance Proceeds, Liquidation
Proceeds and other payments and recoveries referred to in the definition of “Cash Liquidation” or
“REO Disposition,” as applicable, upon receipt by the Trustee of written notification of such
deposit signed by a Servicing Officer, the Trustee or the Custodian, as the case may be, shall
release to the Master Servicer the related Custodial File and the Trustee shall execute and deliver
such instruments of transfer or assignment prepared by the Master Servicer, in each case without
recourse, as shall be necessary to vest in the Master Servicer or its designee, as the case may be,
the related Mortgage Loan, and thereafter such Mortgage Loan shall not be part of the Trust Fund.
Notwithstanding the foregoing or any other provision of this Agreement, in the Master Servicer’s
sole discretion with respect to any defaulted Mortgage Loan or REO Property as to either of the
following provisions, (i) a Cash Liquidation or REO Disposition may be deemed to have occurred if
substantially all amounts expected by the Master Servicer to be received in connection with the
related defaulted Mortgage Loan or REO Property have been received, and (ii) for purposes of
determining the amount of any Liquidation Proceeds, Insurance Proceeds, REO Proceeds or any other
unscheduled collections or the amount of any Realized Loss, the Master Servicer may take into
account minimal amounts of additional receipts expected to be received or any estimated additional
liquidation expenses expected to be incurred in connection with the related defaulted Mortgage Loan
or REO Property.

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     (b) If title to any Mortgaged Property is acquired by the Trust Fund as an REO Property by
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be issued to
the Trustee or to its nominee on behalf of Certificateholders. Notwithstanding any such
acquisition of title and cancellation of the related Mortgage Loan, such REO Property shall (except
as otherwise expressly provided herein) be considered to be an Outstanding Mortgage Loan held in
the Trust Fund until such time as the REO Property shall be sold. Consistent with the foregoing
for purposes of all calculations hereunder so long as such REO Property shall be considered to be
an Outstanding Mortgage Loan it shall be assumed that, notwithstanding that the indebtedness
evidenced by the related Mortgage Note shall have been discharged, such Mortgage Note and the
related amortization schedule in effect at the time of any such acquisition of title (after giving
effect to any previous Curtailments and before any adjustment thereto by reason of any bankruptcy
or similar proceeding or any moratorium or similar waiver or grace period) remain in effect.

     (c) If the Trust Fund acquires any REO Property as aforesaid or otherwise in connection with a
default or imminent default on a Mortgage Loan, the Master Servicer on behalf of the Trust Fund
shall dispose of such REO Property as soon as practicable, giving due consideration to the
interests of the Certificateholders, but in all cases within three full years after the taxable
year of its acquisition by the Trust Fund for purposes of Section 860G(a)(8) of the Code (or such
shorter period as may be necessary under applicable state (including any state in which such
property is located) law to maintain the status of any portion of any REMIC formed under the Series
Supplement as a REMIC under applicable state law and avoid taxes resulting from such property
failing to be foreclosure property under applicable state law) or, at the expense of the Trust
Fund, request, more than 60 days before the day on which such grace period would otherwise expire,
an extension of such grace period unless the Master Servicer (subject to Section 10.01(f)) obtains
for the Trustee an Opinion of Counsel, addressed to the Trustee and the Master Servicer, to the
effect that the holding by the Trust Fund of such REO Property subsequent to such period will not
result in the imposition of taxes on “prohibited transactions” as defined in Section 860F of the
Code or cause any REMIC formed under the Series Supplement to fail to qualify as a REMIC (for
federal (or any applicable State or local) income tax purposes) at any time that any Certificates
are outstanding, in which case the Trust Fund may continue to hold such REO Property (subject to
any conditions contained in such Opinion of Counsel). The Master Servicer shall be entitled to be
reimbursed from the Custodial Account for any costs incurred in obtaining such Opinion of Counsel,
as provided in Section 3.10. Notwithstanding any other provision of this Agreement, no REO
Property acquired by the Trust Fund shall be rented (or allowed to continue to be rented) or
otherwise used by or on behalf of the Trust Fund in such a manner or pursuant to any terms that
would (i) cause such REO Property to fail to qualify as “foreclosure property” within the meaning
of Section 860G(a)(8) of the Code or (ii) subject the Trust Fund to the imposition of any federal
income taxes on the income earned from such REO Property, including any taxes imposed by reason of
Section 860G(c) of the Code, unless the Master Servicer has agreed to indemnify and hold harmless
the Trust Fund with respect to the imposition of any such taxes.

     (d) The proceeds of any Cash Liquidation, REO Disposition or purchase or repurchase of any
Mortgage Loan pursuant to the terms of this Agreement, as well as any recovery resulting from a
collection of Liquidation Proceeds, Insurance Proceeds or REO Proceeds, will be applied in the
following order of priority: first, to reimburse the Master

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Servicer or the related Subservicer in accordance with Section 3.10(a)(ii); second, to all
Servicing Fees and Subservicing Fees payable therefrom (and the Master Servicer and the Subservicer
shall have no claims for any deficiencies with respect to such fees which result from the foregoing
allocation); third, to the Certificateholders to the extent of accrued and unpaid interest on the
Mortgage Loan, and any related REO Imputed Interest, at the Net Mortgage Rate (or the Modified Net
Mortgage Rate in the case of a Modified Mortgage Loan) to the Due Date prior to the Distribution
Date on which such amounts are to be distributed; fourth, to the Certificateholders as a recovery
of principal on the Mortgage Loan (or REO Property); fifth, to all Subservicing Fees payable
therefrom (and the Subservicer shall have no claims for any deficiencies with respect to such fees
which result from the foregoing allocation); and sixth, to Foreclosure Profits.

     (e) In the event of a default on a Mortgage Loan one or more of whose obligors is not a United
States Person, in connection with any foreclosure or acquisition of a deed in lieu of foreclosure
(together, “foreclosure”) in respect of such Mortgage Loan, the Master Servicer will cause
compliance with the provisions of Treasury Regulation Section 1.1445-2(d)(3) (or any successor
thereto) necessary to assure that no withholding tax obligation arises with respect to the proceeds
of such foreclosure except to the extent, if any, that proceeds of such foreclosure are required to
be remitted to the obligors on such Mortgage Loan.

     Section 3.15. Trustee to Cooperate; Release of Custodial Files.

     (a) Upon becoming aware of the payment in full of any Mortgage Loan, or upon the receipt by
the Master Servicer of a notification that payment in full will be escrowed in a manner customary
for such purposes, the Master Servicer will immediately notify the Trustee (if it holds the related
Custodial File) or the Custodian by a certification of a Servicing Officer (which certification
shall include a statement to the effect that all amounts received or to be received in connection
with such payment which are required to be deposited in the Custodial Account pursuant to Section
3.07 have been or will be so deposited), substantially in one of the forms attached hereto as
Exhibit F, or, in the case of the Custodian, an electronic request in a form acceptable to the
Custodian, requesting delivery to it of the Custodial File. Within two Business Days of receipt of
such certification and request, the Trustee shall release, or cause the Custodian to release, the
related Custodial File to the Master Servicer. The Master Servicer is authorized to execute and
deliver to the Mortgagor the request for reconveyance, deed of reconveyance or release or
satisfaction of mortgage or such instrument releasing the lien of the Mortgage, together with the
Mortgage Note with, as appropriate, written evidence of cancellation thereon and to cause the
removal from the registration on the MERS® System of such Mortgage and to execute and deliver, on
behalf of the Trustee and the Certificateholders or any of them, any and all instruments of
satisfaction or cancellation or of partial or full release. No expenses incurred in connection
with any instrument of satisfaction or deed of reconveyance shall be chargeable to the Custodial
Account or the Certificate Account.

     (b) From time to time as is appropriate for the servicing or foreclosure of any Mortgage Loan,
the Master Servicer shall deliver to the Custodian, with a copy to the Trustee, a certificate of a
Servicing Officer substantially in one of the forms attached as Exhibit F hereto, or, in the case
of the Custodian, an electronic request in a form acceptable to the Custodian, requesting that
possession of all, or any document constituting part of, the Custodial File be

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released to the Master Servicer and certifying as to the reason for such release and that such
release will not invalidate any insurance coverage provided in respect of the Mortgage Loan under
any Required Insurance Policy. Upon receipt of the foregoing, the Trustee shall deliver, or cause
the Custodian to deliver, the Custodial File or any document therein to the Master Servicer. The
Master Servicer shall cause each Custodial File or any document therein so released to be returned
to the Trustee, or the Custodian as agent for the Trustee when the need therefor by the Master
Servicer no longer exists, unless (i) the Mortgage Loan has been liquidated and the Liquidation
Proceeds relating to the Mortgage Loan have been deposited in the Custodial Account or (ii) the
Custodial File or such document has been delivered directly or through a Subservicer to an
attorney, or to a public trustee or other public official as required by law, for purposes of
initiating or pursuing legal action or other proceedings for the foreclosure of the Mortgaged
Property either judicially or non-judicially, and the Master Servicer has delivered directly or
through a Subservicer to the Trustee a certificate of a Servicing Officer certifying as to the name
and address of the Person to which such Custodial File or such document was delivered and the
purpose or purposes of such delivery. In the event of the liquidation of a Mortgage Loan, the
Trustee shall deliver the Request for Release with respect thereto to the Master Servicer upon
deposit of the related Liquidation Proceeds in the Custodial Account.

     (c) The Trustee or the Master Servicer on the Trustee’s behalf shall execute and deliver to
the Master Servicer, if necessary, any court pleadings, requests for trustee’s sale or other
documents necessary to the foreclosure or trustee’s sale in respect of a Mortgaged Property or to
any legal action brought to obtain judgment against any Mortgagor on the Mortgage Note or Mortgage
or to obtain a deficiency judgment, or to enforce any other remedies or rights provided by the
Mortgage Note or Mortgage or otherwise available at law or in equity. Together with such documents
or pleadings (if signed by the Trustee), the Master Servicer shall deliver to the Trustee a
certificate of a Servicing Officer requesting that such pleadings or documents be executed by the
Trustee and certifying as to the reason such documents or pleadings are required and that the
execution and delivery thereof by the Trustee will not invalidate any insurance coverage under any
Required Insurance Policy or invalidate or otherwise affect the lien of the Mortgage, except for
the termination of such a lien upon completion of the foreclosure or trustee’s sale.

     Section 3.16. Servicing and Other Compensation; Compensating Interest.

     (a) The Master Servicer, as compensation for its activities hereunder, shall be entitled to
receive on each Distribution Date the amounts provided for by clauses (iii), (iv), (v) and (vi) of
Section 3.10(a), subject to clause (e) below. The amount of servicing compensation provided for in
such clauses shall be accounted for on a Mortgage Loan-by-Mortgage Loan basis. In the event that
Liquidation Proceeds, Insurance Proceeds and REO Proceeds (net of amounts reimbursable therefrom
pursuant to Section 3.10(a)(ii)) in respect of a Cash Liquidation or REO Disposition exceed the
unpaid principal balance of such Mortgage Loan plus unpaid interest accrued thereon (including REO
Imputed Interest) at a per annum rate equal to the related Net Mortgage Rate (or the Modified Net
Mortgage Rate in the case of a Modified Mortgage Loan), the Master Servicer shall be entitled to
retain therefrom and to pay to itself and/or the related Subservicer, any Foreclosure Profits and
any Subservicing Fee considered to be accrued but unpaid.

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     (b) Additional servicing compensation in the form of prepayment charges, assumption fees, late
payment charges, investment income on amounts in the Custodial Account or the Certificate Account
or otherwise shall be retained by the Master Servicer or the Subservicer to the extent provided
herein, subject to clause (e) below.

     (c) The Master Servicer shall be required to pay, or cause to be paid, all expenses incurred
by it in connection with its servicing activities hereunder (including payment of premiums for the
Primary Insurance Policies, if any, to the extent such premiums are not required to be paid by the
related Mortgagors, and the fees and expenses of the Trustee and any co-trustee (as provided in
Section 8.05) and the fees and expense of the Custodian) and shall not be entitled to reimbursement
therefor except as specifically provided in Sections 3.10 and 3.14.

     (d) [Reserved.]

     (e) Notwithstanding any other provision herein, the amount of servicing compensation that the
Master Servicer shall be entitled to receive for its activities hereunder for the period ending on
each Distribution Date shall be reduced (but not below zero) by an amount equal to Compensating
Interest (if any) for such Distribution Date. Such reduction shall be applied during such period
to any income or gain realized from any investment of funds held in the Custodial Account or the
Certificate Account to which the Master Servicer is entitled pursuant to Sections 3.07(c) or
4.01(b), respectively. In making such reduction, the Master Servicer will not withdraw from the
Custodial Account or Certificate Account any such amount to which it is entitled pursuant to
Section 3.07(c) or 4.01(b).

     Section 3.17. Reports to the Trustee and the Company.

     Not later than fifteen days after it receives a written request from the Trustee or the
Company, the Master Servicer shall forward to the Trustee and the Company a statement, certified by
a Servicing Officer, setting forth the status of the Custodial Account as of the close of business
on the immediately preceding Distribution Date as it relates to the Mortgage Loans and showing, for
the period covered by such statement, the aggregate of deposits in or withdrawals from the
Custodial Account in respect of the Mortgage Loans for each category of deposit specified in
Section 3.07 and each category of withdrawal specified in Section 3.10.

     Section 3.18. Annual Statement as to Compliance and Servicing Assessment.

     The Master Servicer shall deliver to the Company and the Trustee on or before the earlier of
(a) March 31 of each year or (b) with respect to any calendar year during which the Company’s
annual report on Form 10-K is required to be filed in accordance with the Exchange Act and the
rules and regulations of the Commission, the date on which the annual report on Form 10-K is
required to be filed in accordance with the Exchange Act and the rules and regulations of the
Commission, (i) a servicing assessment as described in Section 4.03(f)(ii) and (ii) a servicer
compliance statement, signed by an authorized officer of the Master Servicer, as described in Items
1122(a), 1122(b) and 1123 of Regulation AB, to the effect that:

     (A) A review of the Master Servicer’s activities during the reporting period and of its
performance under this Agreement has been made under such officer’s supervision.

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     (B) To the best of such officer’s knowledge, based on such review, the Master Servicer has
fulfilled all of its obligations under this Agreement in all material respects throughout the
reporting period or, if there has been a failure to fulfill any such obligation in any material
respect, specifying each such failure known to such officer and the nature and status thereof.

     The Master Servicer shall use commercially reasonable efforts to obtain from all other parties
participating in the servicing function any additional certifications required under Item 1122 and
Item 1123 of Regulation AB to the extent required to be included in a Report on Form 10-K;
provided, however, that a failure to obtain such certifications shall not be a breach of the Master
Servicer’s duties hereunder if any such party fails to deliver such a certification.

     Section 3.19. Annual Independent Public Accountants’ Servicing Report.

     On or before the earlier of (a) March 31 of each year or (b) with respect to any calendar year
during which the Company’s annual report on Form 10-K is required to be filed in accordance with
the Exchange Act and the rules and regulations of the Commission, the date on which the annual
report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, the Master Servicer at its expense shall cause a firm of independent
public accountants, which shall be members of the American Institute of Certified Public
Accountants, to furnish to the Company and the Trustee the attestation required under Item 1122(b)
of Regulation AB. In rendering such statement, such firm may rely, as to matters relating to the
direct servicing of mortgage loans by Subservicers, upon comparable statements for examinations
conducted by independent public accountants substantially in accordance with standards established
by the American Institute of Certified Public Accountants (rendered within one year of such
statement) with respect to such Subservicers.

     Section 3.20. Rights of the Company in Respect of the Master Servicer.

     The Master Servicer shall afford the Company, upon reasonable notice, during normal business
hours access to all records maintained by the Master Servicer in respect of its rights and
obligations hereunder and access to officers of the Master Servicer responsible for such
obligations. Upon request, the Master Servicer shall furnish the Company with its most recent
financial statements and such other information as the Master Servicer possesses regarding its
business, affairs, property and condition, financial or otherwise. The Master Servicer shall also
cooperate with all reasonable requests for information including, but not limited to, notices,
tapes and copies of files, regarding itself, the Mortgage Loans or the Certificates from any Person
or Persons identified by the Company or [_______________]. The Company may, but is not obligated
to, enforce the obligations of the Master Servicer hereunder and may, but is not obligated to,
perform, or cause a designee to perform, any defaulted obligation of the Master Servicer hereunder
or exercise the rights of the Master Servicer hereunder; provided that the Master Servicer shall
not be relieved of any of its obligations hereunder by virtue of such performance by the Company or
its designee. The Company shall not have any responsibility or liability for any action or failure
to act by the Master Servicer and is not obligated to supervise the performance of the Master
Servicer under this Agreement or otherwise.

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     Section 3.21. Administration of Buydown Funds

     (a) With respect to any Buydown Mortgage Loan, the Subservicer has deposited Buydown Funds in
an account that satisfies the requirements for a Subservicing Account (the “Buydown Account”). The
Master Servicer shall cause the Subservicing Agreement to require that upon receipt from the
Mortgagor of the amount due on a Due Date for each Buydown Mortgage Loan, the Subservicer will
withdraw from the Buydown Account the predetermined amount that, when added to the amount due on
such date from the Mortgagor, equals the full Monthly Payment and transmit that amount in
accordance with the terms of the Subservicing Agreement to the Master Servicer together with the
related payment made by the Mortgagor or advanced by the Subservicer.

     (b) If the Mortgagor on a Buydown Mortgage Loan prepays such loan in its entirety during the
period (the “Buydown Period”) when Buydown Funds are required to be applied to such Buydown
Mortgage Loan, the Subservicer shall be required to withdraw from the Buydown Account and remit any
Buydown Funds remaining in the Buydown Account in accordance with the related buydown agreement.
The amount of Buydown Funds which may be remitted in accordance with the related buydown agreement
may reduce the amount required to be paid by the Mortgagor to fully prepay the related Mortgage
Loan. If the Mortgagor on a Buydown Mortgage Loan defaults on such Mortgage Loan during the
Buydown Period and the property securing such Buydown Mortgage Loan is sold in the liquidation
thereof (either by the Master Servicer or the insurer under any related Primary Insurance Policy),
the Subservicer shall be required to withdraw from the Buydown Account the Buydown Funds for such
Buydown Mortgage Loan still held in the Buydown Account and remit the same to the Master Servicer
in accordance with the terms of the Subservicing Agreement for deposit in the Custodial Account or,
if instructed by the Master Servicer, pay to the insurer under any related Primary Insurance Policy
if the Mortgaged Property is transferred to such insurer and such insurer pays all of the loss
incurred in respect of such default. Any amount so remitted pursuant to the preceding sentence
will be deemed to reduce the amount owed on the Mortgage Loan.

     Section 3.22. Advance Facility

     (a) The Master Servicer is hereby authorized to enter into a financing or other facility (any
such arrangement, an “Advance Facility”) under which (1) the Master Servicer sells, assigns or
pledges to another Person (an “Advancing Person”) the Master Servicer’s rights under this Agreement
to be reimbursed for any Advances or Servicing Advances and/or (2) an Advancing Person agrees to
fund some or all Advances and/or Servicing Advances required to be made by the Master Servicer
pursuant to this Agreement. No consent of the Depositor, the Trustee, the Certificateholders or
any other party shall be required before the Master Servicer may enter into an Advance Facility.
Notwithstanding the existence of any Advance Facility under which an Advancing Person agrees to
fund Advances and/or Servicing Advances on the Master Servicer’s behalf, the Master Servicer shall
remain obligated pursuant to this Agreement to make Advances and Servicing Advances pursuant to and
as required by this Agreement. If the Master Servicer enters into an Advance Facility, and for so
long as an Advancing Person remains entitled to receive reimbursement for any Advances including
Nonrecoverable Advances (“Advance Reimbursement Amounts”) and/or Servicing Advances including
Nonrecoverable Advances (“Servicing Advance Reimbursement Amounts” and together with Advance

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Reimbursement Amounts, “Reimbursement Amounts”) (in each case to the extent such type of
Reimbursement Amount is included in the Advance Facility), as applicable, pursuant to this
Agreement, then the Master Servicer shall identify such Reimbursement Amounts consistent with the
reimbursement rights set forth in Section 3.10(a)(ii) and (vii) and remit such Reimbursement
Amounts in accordance with this Section 3.22 or otherwise in accordance with the documentation
establishing the Advance Facility to such Advancing Person or to a trustee, agent or custodian (an
“Advance Facility Trustee”) designated by such Advancing Person in an Advance Facility Notice
described below in Section 3.22(b). Notwithstanding the foregoing, if so required pursuant to the
terms of the Advance Facility, the Master Servicer may direct, and if so directed in writing the
Trustee is hereby authorized to and shall pay to the Advance Facility Trustee the Reimbursement
Amounts identified pursuant to the preceding sentence. An Advancing Person whose obligations
hereunder are limited to the funding of Advances and/or Servicing Advances shall not be required to
meet the qualifications of a Master Servicer or a Subservicer pursuant to Section 3.02(a) or
6.02(c) hereof and shall not be deemed to be a Subservicer under this Agreement. Notwithstanding
anything to the contrary herein, in no event shall Advance Reimbursement Amounts or Servicing
Advance Reimbursement Amounts be included in the Available Distribution Amount or distributed to
Certificateholders.

     (b) If the Master Servicer enters into an Advance Facility and makes the election set forth in
Section 3.22(a), the Master Servicer and the related Advancing Person shall deliver to the
Certificate Insurer and the Trustee a written notice and payment instruction (an “Advance Facility
Notice”), providing the Trustee with written payment instructions as to where to remit Advance
Reimbursement Amounts and/or Servicing Advance Reimbursement Amounts (each to the extent such type
of Reimbursement Amount is included within the Advance Facility) on subsequent Distribution Dates.
The payment instruction shall require the applicable Reimbursement Amounts to be distributed to the
Advancing Person or to an Advance Facility Trustee designated in the Advance Facility Notice. An
Advance Facility Notice may only be terminated by the joint written direction of the Master
Servicer and the related Advancing Person (and any related Advance Facility Trustee). The Master
Servicer shall provide the Certificate Insurer, if any, with notice of any termination of any
Advance Facility pursuant to this Section 3.22(b).

     (c) Reimbursement Amounts shall consist solely of amounts in respect of Advances and/or
Servicing Advances made with respect to the Mortgage Loans for which the Master Servicer would be
permitted to reimburse itself in accordance with Section 3.10(a)(ii) and (vii) hereof, assuming the
Master Servicer or the Advancing Person had made the related Advance(s) and/or Servicing
Advance(s). Notwithstanding the foregoing, except with respect to reimbursement of Nonrecoverable
Advances as set forth in Section 3.10(c) of this Agreement, no Person shall be entitled to
reimbursement from funds held in the Certificate Account for future distribution to
Certificateholders pursuant to this Agreement. Neither the Company nor the Trustee shall have any
duty or liability with respect to the calculation of any Reimbursement Amount, nor shall the
Company or the Trustee have any responsibility to track or monitor the administration of the
Advance Facility or have any responsibility to track, monitor or verify the payment of
Reimbursement Amounts to the related Advancing Person or Advance Facility Trustee. The Master
Servicer shall maintain and provide to any Successor Master Servicer a detailed accounting on a
loan-by-loan basis as to amounts advanced by, sold, pledged or assigned to, and reimbursed to any
Advancing Person. The Successor Master Servicer shall be entitled to

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rely on any such information provided by the Master Servicer and the Successor Master Servicer
shall not be liable for any errors in such information.

     (d) Upon the direction of and at the expense of the Master Servicer, the Trustee agrees to
execute such acknowledgments, certificates and other documents reasonably satisfactory to the
Trustee provided by the Master Servicer recognizing the interests of any Advancing Person or
Advance Facility Trustee in such Reimbursement Amounts as the Master Servicer may cause to be made
subject to Advance Facilities pursuant to this Section 3.22.

     (e) Reimbursement Amounts collected with respect to each Mortgage Loan shall be allocated to
outstanding unreimbursed Advances or Servicing Advances (as the case may be) made with respect to
that Mortgage Loan on a “first-in, first out” (“FIFO”) basis, subject to the qualifications set
forth below:

     (i) Any successor Master Servicer to [_______________] (a “Successor Master Servicer”)
and the Advancing Person or Advance Facility Trustee shall be required to apply all amounts
available in accordance with this Section 3.22(e) to the reimbursement of Advances and
Servicing Advances in the manner provided for herein; provided, however, that after the
succession of a Successor Master Servicer, (A) to the extent that any Advances or Servicing
Advances with respect to any particular Mortgage Loan are reimbursed from payments or
recoveries, if any, from the related Mortgagor, and Liquidation Proceeds or Insurance
Proceeds, if any, with respect to that Mortgage Loan, reimbursement shall be made, first, to
the Advancing Person or Advance Facility Trustee in respect of Advances and/or Servicing
Advances related to that Mortgage Loan to the extent of the interest of the Advancing Person
or Advance Facility Trustee in such Advances and/or Servicing Advances, second to the Master
Servicer in respect of Advances and/or Servicing Advances related to that Mortgage Loan in
excess of those in which the Advancing Person or Advance Facility Trustee Person has an
interest, and third, to the Successor Master Servicer in respect of any other Advances
and/or Servicing Advances related to that Mortgage Loan, from such sources as and when
collected, and (B) reimbursements of Advances and Servicing Advances that are Nonrecoverable
Advances shall be made pro rata to the Advancing Person or Advance Facility Trustee, on the
one hand, and any such Successor Master Servicer, on the other hand, on the basis of the
respective aggregate outstanding unreimbursed Advances and Servicing Advances that are
Nonrecoverable Advances owed to the Advancing Person, Advance Facility Trustee or Master
Servicer pursuant to this Agreement, on the one hand, and any such Successor Master
Servicer, on the other hand, and without regard to the date on which any such Advances or
Servicing Advances shall have been made. In the event that, as a result of the FIFO
allocation made pursuant to this Section 3.22(e), some or all of a Reimbursement Amount paid
to the Advancing Person or Advance Facility Trustee relates to Advances or Servicing
Advances that were made by a Person other than [_______________] or the Advancing Person or
Advance Facility Trustee, then the Advancing Person or Advance Facility Trustee shall be
required to remit any portion of such Reimbursement Amount to the Person entitled to such
portion of such Reimbursement Amount. Without limiting the generality of the foregoing,
[_______________] shall remain entitled to be reimbursed by the Advancing Person or Advance
Facility Trustee for all Advances and Servicing Advances funded by

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[_______________] to the extent the related Reimbursement Amount(s) have not been
assigned or pledged to an Advancing Person or Advance Facility Trustee. The documentation
establishing any Advance Facility shall require [_______________] to provide to the related
Advancing Person or Advance Facility Trustee loan by loan information with respect to each
Reimbursement Amount distributed to such Advancing Person or Advance Facility Trustee on
each date of remittance thereof to such Advancing Person or Advance Facility Trustee, to
enable the Advancing Person or Advance Facility Trustee to make the FIFO allocation of each
Reimbursement Amount with respect to each Mortgage Loan.

     (ii) By way of illustration, and not by way of limiting the generality of the
foregoing, if the Master Servicer resigns or is terminated at a time when the Master
Servicer is a party to an Advance Facility, and is replaced by a Successor Master Servicer,
and the Successor Master Servicer directly funds Advances or Servicing Advances with respect
to a Mortgage Loan and does not assign or pledge the related Reimbursement Amounts to the
related Advancing Person or Advance Facility Trustee, then all payments and recoveries
received from the related Mortgagor or received in the form of Liquidation Proceeds with
respect to such Mortgage Loan (including Insurance Proceeds collected in connection with a
liquidation of such Mortgage Loan) will be allocated first to the Advancing Person or
Advance Facility Trustee until the related Reimbursement Amounts attributable to such
Mortgage Loan that are owed to the Master Servicer and the Advancing Person, which were made
prior to any Advances or Servicing Advances made by the Successor Master Servicer, have been
reimbursed in full, at which point the Successor Master Servicer shall be entitled to retain
all related Reimbursement Amounts subsequently collected with respect to that Mortgage Loan
pursuant to Section 3.10 of this Agreement. To the extent that the Advances or Servicing
Advances are Nonrecoverable Advances to be reimbursed on an aggregate basis pursuant to
Section 3.10 of this Agreement, the reimbursement paid in this manner will be made pro rata
to the Advancing Person or Advance Facility Trustee, on the one hand, and the Successor
Master Servicer, on the other hand, as described in clause (i)(B) above.

     (f) The Master Servicer shall remain entitled to be reimbursed for all Advances and Servicing
Advances funded by the Master Servicer to the extent the related rights to be reimbursed therefor
have not been sold, assigned or pledged to an Advancing Person.

     (g) Any amendment to this Section 3.22 or to any other provision of this Agreement that may be
necessary or appropriate to effect the terms of an Advance Facility as described generally in this
Section 3.22, including amendments to add provisions relating to a successor Master Servicer, may
be entered into by the Trustee, the Certificate Insurer, Company and the Master Servicer without
the consent of any Certificateholder, with written confirmation from each Rating Agency that the
amendment will not result in the reduction of the ratings on any class of the Certificates below
the lesser of the then current or original ratings on such Certificates, and an Opinion of Counsel
as required by Section 11.01(c), notwithstanding anything to the contrary in Section 11.01 of or
elsewhere in this Agreement.

     (h) Any rights of set-off that the Trust Fund, the Trustee, the Company, any Successor Master
Servicer or any other Person might otherwise have against the Master Servicer

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under this Agreement shall not attach to any rights to be reimbursed for Advances or Servicing
Advances that have been sold, transferred, pledged, conveyed or assigned to any Advancing Person.

     (i) At any time when an Advancing Person shall have ceased funding Advances and/or Servicing
Advances (as the case may be) and the Advancing Person or related Advance Facility Trustee shall
have received Reimbursement Amounts sufficient in the aggregate to reimburse all Advances and/or
Servicing Advances (as the case may be) the right to reimbursement for which were assigned to the
Advancing Person, then upon the delivery of a written notice signed by the Advancing Person and the
Master Servicer or its successor or assign) to the Trustee terminating the Advance Facility Notice
(the “Notice of Facility Termination”), the Master Servicer or its Successor Master Servicer shall
again be entitled to withdraw and retain the related Reimbursement Amounts from the Custodial
Account pursuant to Section 3.10.

     (j) After delivery of any Advance Facility Notice, and until any such Advance Facility Notice
has been terminated by a Notice of Facility Termination, this Section 3.22 may not be amended or
otherwise modified without the prior written consent of the related Advancing Person.

ARTICLE IV

PAYMENTS TO CERTIFICATEHOLDERS

     Section 4.01. Certificate Account.

     (a) The Trustee shall establish and maintain a Certificate Account in which the Master
Servicer shall cause to be deposited on behalf of the Trustee on or before 2:00 P.M. New York time
on each Certificate Account Deposit Date by wire transfer of immediately available funds an amount
equal to the sum of (i) any P&I Advance for the immediately succeeding Distribution Date, (ii) any
amount required to be deposited in the Certificate Account pursuant to Section 3.12(a), (iii) any
amount required to be deposited in the Certificate Account pursuant to Section 3.16(e) or Section
4.07, (iv) any amount required to be paid pursuant to Section 9.01 and (v) all other amounts
constituting the Available Distribution Amount for the immediately succeeding Distribution Date.

     (b) The Trustee shall, upon written request from the Master Servicer, invest or cause the
institution maintaining the Certificate Account to invest the funds in the Certificate Account in
Permitted Investments designated in the name of the Trustee for the benefit of the
Certificateholders, which shall mature or be payable on demand not later than the Business Day next
preceding the Distribution Date next following the date of such investment (except that (i) any
investment in the institution with which the Certificate Account is maintained may mature or be
payable on demand on such Distribution Date and (ii) any other investment may mature or be payable
on demand on such Distribution Date if the Trustee shall advance funds on such

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Distribution Date to the Certificate Account in the amount payable on such investment on such
Distribution Date, pending receipt thereof to the extent necessary to make distributions on the
Certificates) and shall not be sold or disposed of prior to maturity. Subject to Section 3.16(e),
all income and gain realized from any such investment shall be for the benefit of the Master
Servicer and shall be subject to its withdrawal or order from time to time. The amount of any
losses incurred in respect of any such investments shall be deposited in the Certificate Account by
the Master Servicer out of its own funds immediately as realized without any right of
reimbursement. The Trustee or its Affiliates are permitted to receive compensation that could be
deemed to be in the Trustee’s economic self-interest for (i) serving as investment adviser (with
respect to investments made through its Affiliates), administrator, shareholder servicing agent,
custodian or sub-custodian with respect to certain of the Permitted Investments, (ii) using
Affiliates to effect transactions in certain Permitted Investments and (iii) effecting transactions
in certain Permitted Investments.

     Section 4.02. Distributions.

          As provided in Section 4.02 of the Series Supplement.

     Section 4.03. Statements to Certificateholders; Statements to Rating Agencies; Exchange
Act Reporting.

     (a) Concurrently with each distribution charged to the Certificate Account and with respect to
each Distribution Date the Master Servicer shall forward to the Trustee and the Trustee shall
either forward by mail or make available to each Holder and the Company, via the Trustee’s internet
website, a statement (and at its option, any additional files containing the same information in an
alternative format) setting forth information as to each Class of Certificates, the Mortgage Pool
and, if the Mortgage Pool is comprised of two or more Loan Groups, each Loan Group, to the extent
applicable. This statement will include the information set forth in an exhibit to the Series
Supplement. The Trustee shall mail to each Holder that requests a paper copy by telephone a paper
copy via first class mail. The Trustee may modify the distribution procedures set forth in this
Section provided that such procedures are no less convenient for the Certificateholders. The
Trustee shall provide prior notification to the Company, the Master Servicer and the
Certificateholders regarding any such modification. In addition, the Master Servicer shall provide
to any manager of a trust fund consisting of some or all of the Certificates, upon reasonable
request, such additional information as is reasonably obtainable by the Master Servicer at no
additional expense to the Master Servicer. Also, at the request of a Rating Agency, the Master
Servicer shall provide the information relating to the Reportable Modified Mortgage Loans
substantially in the form attached hereto as Exhibit Q to such Rating Agency (in accordance with
Section 11.11) within a reasonable period of time; provided, however, that the Master Servicer
shall not be required to provide such information more than four times in a calendar year to any
Rating Agency.

     (b) Within a reasonable period of time after it receives a written request from a Holder of a
Certificate, other than a Class R Certificate, the Master Servicer shall prepare, or cause to be
prepared, and shall forward, or cause to be forwarded, to each Person who at any time during the
calendar year was the Holder of a Certificate, other than a Class R Certificate, a statement
containing the information set forth in clauses (v) and (vi) of the exhibit to the Series

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Supplement referred to in subsection (a) above aggregated for such calendar year or applicable
portion thereof during which such Person was a Certificateholder. Such obligation of the Master
Servicer shall be deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Master Servicer pursuant to any requirements of the Code.

     (c) Within a reasonable period of time after it receives a written request from a Holder of a
Class R Certificate, the Master Servicer shall prepare, or cause to be prepared, and shall forward,
or cause to be forwarded, to each Person who at any time during the calendar year was the Holder of
a Class R Certificate, a statement containing the applicable distribution information provided
pursuant to this Section 4.03 aggregated for such calendar year or applicable portion thereof
during which such Person was the Holder of a Class R Certificate. Such obligation of the Master
Servicer shall be deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Master Servicer pursuant to any requirements of the Code.

     (d) Upon the written request of any Certificateholder, the Master Servicer, as soon as
reasonably practicable, shall provide the requesting Certificateholder with such information as is
necessary and appropriate, in the Master Servicer’s sole discretion, for purposes of satisfying
applicable reporting requirements under Rule 144A.

     (e) The Master Servicer shall, on behalf of the Company and in respect of the Trust Fund, sign
and cause to be filed with the Commission any periodic reports required to be filed under the
provisions of the Exchange Act, and the rules and regulations of the Commission thereunder
including, without limitation, reports on Form 10-K, Form 10-D and Form 8-K. In connection with
the preparation and filing of such periodic reports, the Trustee shall timely provide to the Master
Servicer (I) a list of Certificateholders as shown on the Certificate Register as of the end of
each calendar year, (II) copies of all pleadings, other legal process and any other documents
relating to any claims, charges or complaints involving the Trustee, as trustee hereunder, or the
Trust Fund that are received by a Responsible Officer of the Trustee, (III) notice of all matters
that, to the actual knowledge of a Responsible Officer of the Trustee, have been submitted to a
vote of the Certificateholders, other than those matters that have been submitted to a vote of the
Certificateholders at the request of the Company or the Master Servicer, and (IV) notice of any
failure of the Trustee to make any distribution to the Certificateholders as required pursuant to
the Series Supplement. Neither the Master Servicer nor the Trustee shall have any liability with
respect to the Master Servicer’s failure to properly prepare or file such periodic reports
resulting from or relating to the Master Servicer’s inability or failure to obtain any information
not resulting from the Master Servicer’s own negligence or willful misconduct.

     (f) Any Form 10-K filed with the Commission in connection with this Section 4.03 shall
include, with respect to the Certificates relating to such 10-K:

     (i) A certification, signed by the senior officer in charge of the servicing functions
of the Master Servicer, in the form attached as Exhibit O hereto or such other form as may
be required or permitted by the Commission (the “Form 10-K Certification”), in compliance
with Rules 13a-14 and 15d-14 under the Exchange Act and any additional directives of the
Commission.

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     (ii) A report regarding its assessment of compliance during the preceding calendar year
with all applicable servicing criteria set forth in relevant Commission regulations with
respect to mortgage-backed securities transactions taken as a whole involving the Master
Servicer that are backed by the same types of assets as those backing the certificates, as
well as similar reports on assessment of compliance received from other parties
participating in the servicing function as required by relevant Commission regulations, as
described in Item 1122(a) of Regulation AB. The Master Servicer shall obtain from all other
parties participating in the servicing function any required assessments.

     (iii) With respect to each assessment report described immediately above, a report by a
registered public accounting firm that attests to, and reports on, the assessment made by
the asserting party, as set forth in relevant Commission regulations, as described in
Regulation 1122(b) of Regulation AB and Section 3.19.

     (iv) The servicer compliance certificate required to be delivered pursuant Section
3.18.

     (g) In connection with the Form 10-K Certification, the Trustee shall provide the Master
Servicer with a back-up certification substantially in the form attached hereto as Exhibit P.

     (h) This Section 4.03 may be amended in accordance with this Agreement without the consent of
the Certificateholders.

     (i) The Trustee shall make available on the Trustee’s internet website each of the reports
filed with the Commission by or on behalf of the Company under the Exchange Act, as soon as
reasonably practicable upon delivery of such reports to the Trustee.

     Section 4.04. Distribution of Reports to the Trustee and the Company; P&I Advances by the Master Servicer.

     (a) Prior to the close of business on the Determination Date, the Master Servicer shall
furnish a written statement to the Trustee, any Paying Agent and the Company (the information in
such statement to be made available to any Certificate Insurer and Certificateholders by the Master
Servicer on request) setting forth (i) the Available Distribution Amount and (ii) the amounts
required to be withdrawn from the Custodial Account and deposited into the Certificate Account on
the immediately succeeding Certificate Account Deposit Date pursuant to clause (iii) of Section
4.01(a). The determination by the Master Servicer of such amounts shall, in the absence of obvious
error, be presumptively deemed to be correct for all purposes hereunder and the Trustee shall be
protected in relying upon the same without any independent check or verification.

     (b) On or before 2:00 P.M. New York time on each Certificate Account Deposit Date, the Master
Servicer shall either (i) deposit in the Certificate Account from its own funds, or funds received
therefor from the Subservicers, an amount equal to the P&I Advances to be made by the Master
Servicer in respect of the related Distribution Date, which shall be in an aggregate amount equal
to the aggregate amount of Monthly Payments (with each interest portion thereof

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adjusted to the Net Mortgage Rate), less the amount of any related Servicing Modifications,
Debt Service Reductions or reductions in the amount of interest collectable from the Mortgagor
pursuant to the Servicemembers Civil Relief Act, as amended, or similar legislation or regulations
then in effect, on the Outstanding Mortgage Loans as of the related Due Date, which Monthly
Payments were not received as of the close of business as of the related Determination Date; (ii)
withdraw from amounts on deposit in the Custodial Account and deposit in the Certificate Account
all or a portion of the Amount Held for Future Distribution in discharge of any such P&I Advance,
or (iii) make advances in the form of any combination of (i) and (ii) aggregating the required
amount of such P&I Advance; provided that no such P&I Advance shall be made if it would be a
Nonrecoverable Advance; provided, further, that no P&I Advance shall be made with respect to any
Mortgage Loan that is 90 or more days Delinquent. Any portion of the Amount Held for Future
Distribution so used shall be replaced by the Master Servicer by deposit in the Certificate Account
on or before 11:00 A.M. New York time on any future Certificate Account Deposit Date to the extent
that funds attributable to the Mortgage Loans that are available in the Custodial Account for
deposit in the Certificate Account on such Certificate Account Deposit Date shall be less than
payments to Certificateholders required to be made on the following Distribution Date. The Master
Servicer shall be entitled to use any Subservicer Advance made by a Subservicer as described in
Section 3.07(b) that has been deposited in the Custodial Account on or before such Distribution
Date as part of the Advance made by the Master Servicer pursuant to this Section 4.04. The amount
of any reimbursement pursuant to Section 4.02(a) in respect of outstanding P&I Advances on any
Distribution Date shall be allocated to specific Monthly Payments due but delinquent for previous
Due Periods, which allocation shall be made, to the extent practicable, to Monthly Payments which
have been delinquent for the longest period of time. Such allocations shall be conclusive for
purposes of reimbursement to the Master Servicer from recoveries on related Mortgage Loans pursuant
to Section 3.10.

     If the Master Servicer determines as of the Business Day preceding any Certificate Account
Deposit Date that it will be unable to deposit in the Certificate Account an amount equal to the
P&I Advance required to be made for the immediately succeeding Distribution Date, it shall give
notice to the Trustee of its inability to advance (such notice may be given by telecopy), not later
than 3:00 P.M., New York time, on such Business Day, specifying the portion of such amount that it
will be unable to deposit. Not later than 3:00 P.M., New York time, on the Certificate Account
Deposit Date the Trustee shall, unless by 12:00 Noon, New York time, on such day the Trustee shall
have been notified in writing (by telecopy) that the Master Servicer shall have directly or
indirectly deposited in the Certificate Account such portion of the amount of the P&I Advance as to
which the Master Servicer shall have given notice pursuant to the preceding sentence, pursuant to
Section 7.01, (a) terminate all of the rights and obligations of the Master Servicer under this
Agreement in accordance with Section 7.01 and (b) assume the rights and obligations of the Master
Servicer hereunder, including the obligation to deposit in the Certificate Account an amount equal
to the Advance for the immediately succeeding Distribution Date.

     The Trustee shall deposit all funds it receives pursuant to this Section 4.04 into the
Certificate Account.

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     Section 4.05. Allocation of Realized Losses.

     As provided in Section 4.05 of the Series Supplement.

     Section 4.06. Reports of Foreclosures and Abandonment of Mortgaged Property.

     The Master Servicer or the Subservicers shall file information returns with respect to the
receipt of mortgage interests received in a trade or business, the reports of foreclosures and
abandonments of any Mortgaged Property and the information returns relating to cancellation of
indebtedness income with respect to any Mortgaged Property required by Sections 6050H, 6050J and
6050P, respectively, of the Code, and deliver to the Trustee an Officers’ Certificate on or before
March 31 of each year stating that such reports have been filed. Such reports shall be in form and
substance sufficient to meet the reporting requirements imposed by Sections 6050H, 6050J and 6050P
of the Code.

     Section 4.07. Optional Purchase of Defaulted Mortgage Loans.

     (a) With respect to any Mortgage Loan that is delinquent in payment by 90 days or more, the
Master Servicer may, at its option, purchase such Mortgage Loan from the Trustee at the Purchase
Price therefor; provided, that such Mortgage Loan that becomes 90 days or more delinquent during
any given Calendar Quarter shall only be eligible for purchase pursuant to this Section during the
period beginning on the first Business Day of the following Calendar Quarter, and ending at the
close of business on the second-to-last Business Day of such following Calendar Quarter; and
provided, further, that such Mortgage Loan is 90 days or more delinquent at the time of repurchase.
Such option if not exercised shall not thereafter be reinstated as to any Mortgage Loan, unless
the delinquency is cured and the Mortgage Loan thereafter again becomes delinquent in payment by 90
days or more in a subsequent Calendar Quarter.

     (b) If at any time the Master Servicer makes a payment to the Certificate Account covering the
amount of the Purchase Price for such a Mortgage Loan as provided in clause (a) above, and the
Master Servicer provides to the Trustee a certification signed by a Servicing Officer stating that
the amount of such payment has been deposited in the Certificate Account, then the Trustee shall
execute the assignment of such Mortgage Loan at the request of the Master Servicer, without
recourse, to the Master Servicer, which shall succeed to all the Trustee’s right, title and
interest in and to such Mortgage Loan, and all security and documents relative thereto. Such
assignment shall be an assignment outright and not for security. The Master Servicer will
thereupon own such Mortgage, and all such security and documents, free of any further obligation to
the Trustee or the Certificateholders with respect thereto.

     If, however, the Master Servicer shall have exercised its right to repurchase a Mortgage Loan
pursuant to this Section 4.07 upon the written request of and with funds provided by the Junior
Certificateholder and thereupon transferred such Mortgage Loan to the Junior Certificateholder, the
Master Servicer shall so notify the Trustee in writing.

     Section 4.08. Surety Bond.

     (a) If a Required Surety Payment is payable pursuant to the Surety Bond with respect to any
Additional Collateral Loan, the Master Servicer shall so notify the Trustee as soon as

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reasonably practicable and the Trustee shall promptly complete the notice in the form of
Attachment 1 to the Surety Bond and shall promptly submit such notice to the Surety as a claim for
a Required Surety. The Master Servicer shall upon request assist the Trustee in completing such
notice and shall provide any information requested by the Trustee in connection therewith.

     (b) Upon receipt of a Required Surety Payment from the Surety on behalf of the Holders of
Certificates, the Trustee shall deposit such Required Surety Payment in the Certificate Account and
shall distribute such Required Surety Payment, or the proceeds thereof, in accordance with the
provisions of Section 4.02.

     (c) The Trustee shall (i) receive as attorney-in-fact of each Holder of a Certificate any
Required Surety Payment from the Surety and (ii) disburse the same to the Holders of such
Certificates as set forth in Section 4.02.

ARTICLE V

THE CERTIFICATES

     Section 5.01. The Certificates.

     (a) The Senior, Class X, Class M, Class B, Class P, Class SB and Class R Certificates shall be
substantially in the forms set forth in Exhibits A, A-I, B, C, C-I, C-II and D, respectively, or
such other form or forms as shall be set forth in the Series Supplement, and shall, on original
issue, be executed and delivered by the Trustee to the Certificate Registrar for authentication and
delivery to or upon the order of the Company upon receipt by the Trustee or the Custodian of the
documents specified in Section 2.01. The Certificates shall be issuable in the minimum
denominations designated in the Preliminary Statement to the Series Supplement.

     The Certificates shall be executed by manual or facsimile signature on behalf of an authorized
officer of the Trustee. Certificates bearing the manual or facsimile signatures of individuals who
were at any time the proper officers of the Trustee shall bind the Trustee, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Certificate or did not hold such offices at the date of such Certificates. No
Certificate shall be entitled to any benefit under this Agreement, or be valid for any purpose,
unless there appears on such Certificate a certificate of authentication substantially in the form
provided for herein executed by the Certificate Registrar by manual signature, and such certificate
upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has
been duly authenticated and delivered hereunder. All Certificates shall be dated the date of their
authentication.

     (b) Except as provided below, registration of Book-Entry Certificates may not be transferred
by the Trustee except to another Depository that agrees to hold such Certificates for the
respective Certificate Owners with Ownership Interests therein. The Holders of the Book-Entry
Certificates shall hold their respective Ownership Interests in and to each of such Certificates
through the book-entry facilities of the Depository and, except as provided below, shall not be
entitled to Definitive Certificates in respect of such Ownership Interests. All

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transfers by Certificate Owners of their respective Ownership Interests in the Book-Entry
Certificates shall be made in accordance with the procedures established by the Depository
Participant or brokerage firm representing such Certificate Owner. Each Depository Participant
shall transfer the Ownership Interests only in the Book-Entry Certificates of Certificate Owners it
represents or of brokerage firms for which it acts as agent in accordance with the Depository’s
normal procedures.

     The Trustee, the Master Servicer and the Company may for all purposes (including the making of
payments due on the respective Classes of Book-Entry Certificates) deal with the Depository as the
authorized representative of the Certificate Owners with respect to the respective Classes of
Book-Entry Certificates for the purposes of exercising the rights of Certificateholders hereunder.
The rights of Certificate Owners with respect to the respective Classes of Book-Entry Certificates
shall be limited to those established by law and agreements between such Certificate Owners and the
Depository Participants and brokerage firms representing such Certificate Owners. Multiple
requests and directions from, and votes of, the Depository as Holder of any Class of Book-Entry
Certificates with respect to any particular matter shall not be deemed inconsistent if they are
made with respect to different Certificate Owners. The Trustee may establish a reasonable record
date in connection with solicitations of consents from or voting by Certificateholders and shall
give notice to the Depository of such record date.

     If (i)(A) the Company advises the Trustee in writing that the Depository is no longer willing
or able to properly discharge its responsibilities as Depository and (B) the Company is unable to
locate a qualified successor or (ii) the Company notifies the Depository and the Trustee of its
intent to terminate the book-entry system and, upon receipt of notice of such intent from the
Depository, the Depository Participants holding beneficial interests in the Book-Entry Certificates
agree to such termination through the Depository, the Trustee shall notify all Certificate Owners,
through the Depository, of the occurrence of any such event and of the availability of Definitive
Certificates to Certificate Owners requesting the same. Upon surrender to the Trustee of the
Book-Entry Certificates by the Depository, accompanied by registration instructions from the
Depository for registration of transfer, the Trustee shall execute, authenticate and deliver the
Definitive Certificates. In addition, if an Event of Default has occurred and is continuing, each
Certificate Owner materially adversely affected thereby may at its option request a Definitive
Certificate evidencing such Certificate Owner’s Percentage Interest in the related Class of
Certificates. In order to make such a request, such Certificate Owner shall, subject to the rules
and procedures of the Depository, provide the Depository or the related Depository Participant with
directions for the Certificate Registrar to exchange or cause the exchange of the Certificate
Owner’s interest in such Class of Certificates for an equivalent Percentage Interest in fully
registered definitive form. Upon receipt by the Certificate Registrar of instructions from the
Depository directing the Certificate Registrar to effect such exchange (such instructions shall
contain information regarding the Class of Certificates and the Certificate Principal Balance being
exchanged, the Depository Participant account to be debited with the decrease, the registered
holder of and delivery instructions for the Definitive Certificate, and any other information
reasonably required by the Certificate Registrar), (i) the Certificate Registrar shall instruct the
Depository to reduce the related Depository Participant’s account by the aggregate Certificate
Principal Balance of the Definitive Certificate, (ii) the Trustee shall execute and the Certificate
Registrar shall authenticate and deliver, in accordance with the registration

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and delivery instructions provided by the Depository, a Definitive Certificate evidencing such
Certificate Owner’s Percentage Interest in such Class of Certificates and (iii) the Trustee shall
execute and the Certificate Registrar shall authenticate a new Book-Entry Certificate reflecting
the reduction in the aggregate Certificate Principal Balance of such Class of Certificates by the
Certificate Principal Balance of the Definitive Certificate.

     None of the Company, the Master Servicer or the Trustee shall be liable for any actions taken
by the Depository or its nominee, including, without limitation, any delay in delivery of any
instructions required under Section 5.01 and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Certificates, the Trustee and the
Master Servicer shall recognize the Holders of the Definitive Certificates as Certificateholders
hereunder.

     (c) If the Class A-V Certificates are Definitive Certificates, from time to time
[_______________], as the initial Holder of the Class A-V Certificates, may exchange such Holder’s
Class A-V Certificates for Subclasses of Class A-V Certificates to be issued under this Agreement
by delivering a “Request for Exchange” substantially in the form attached to this Agreement as
Exhibit N executed by an authorized officer, which Subclasses, in the aggregate, will represent the
Uncertificated REMIC Regular Interests Z corresponding to the Class A-V Certificates so surrendered
for exchange. Any Subclass so issued shall bear a numerical designation commencing with Class
A-V-1 and continuing sequentially thereafter, and will evidence ownership of the Uncertificated
REMIC Regular Interest or Interests specified in writing by such initial Holder to the Trustee. The
Trustee may conclusively, without any independent verification, rely on, and shall be protected in
relying on, [_______________]’s determinations of the Uncertificated REMIC Regular Interests Z
corresponding to any Subclass, the Initial Notional Amount and the initial Pass-Through Rate on a
Subclass as set forth in such Request for Exchange and the Trustee shall have no duty to determine
if any Uncertificated REMIC Regular Interest Z designated on a Request for Exchange corresponds to
a Subclass which has previously been issued. Each Subclass so issued shall be substantially in the
form set forth in Exhibit A and shall, on original issue, be executed and delivered by the Trustee
to the Certificate Registrar for authentication and delivery in accordance with Section 5.01(a).
Every Certificate presented or surrendered for exchange by the initial Holder shall (if so required
by the Trustee or the Certificate Registrar) be duly endorsed by, or be accompanied by a written
instrument of transfer attached to such Certificate and shall be completed to the satisfaction of
the Trustee and the Certificate Registrar duly executed by, the initial Holder thereof or his
attorney duly authorized in writing. The Certificates of any Subclass of Class A-V Certificates
may be transferred in whole, but not in part, in accordance with the provisions of Section 5.02.

     Section 5.02. Registration of Transfer and Exchange of Certificates.

     (a) The Trustee shall cause to be kept at one of the offices or agencies to be appointed by
the Trustee in accordance with the provisions of Section 8.12 a Certificate Register in which,
subject to such reasonable regulations as it may prescribe, the Trustee shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as herein provided.
The Trustee is initially appointed Certificate Registrar for the purpose of registering
Certificates and transfers and exchanges of Certificates as herein provided. The Certificate
Registrar, or the

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Trustee, shall provide the Master Servicer with a certified list of Certificateholders as of
each Record Date prior to the related Determination Date.

     (b) Upon surrender for registration of transfer of any Certificate at any office or agency of
the Trustee maintained for such purpose pursuant to Section 8.12 and, in the case of any Class M,
Class B, Class P or Class R Certificate, upon satisfaction of the conditions set forth below, the
Trustee shall execute and the Certificate Registrar shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Certificates of a like Class (or
Subclass) and aggregate Percentage Interest.

     (c) At the option of the Certificateholders, Certificates may be exchanged for other
Certificates of authorized denominations of a like Class (or Subclass) and aggregate Percentage
Interest, upon surrender of the Certificates to be exchanged at any such office or agency.
Whenever any Certificates are so surrendered for exchange the Trustee shall execute and the
Certificate Registrar shall authenticate and deliver the Certificates of such Class which the
Certificateholder making the exchange is entitled to receive. Every Certificate presented or
surrendered for transfer or exchange shall (if so required by the Trustee or the Certificate
Registrar) be duly endorsed by, or be accompanied by a written instrument of transfer in form
satisfactory to the Trustee and the Certificate Registrar duly executed by, the Holder thereof or
his attorney duly authorized in writing.

     (d) No transfer, sale, pledge or other disposition of a Class B Certificate, Class P
Certificate or privately offered Class R Certificate shall be made unless such transfer, sale,
pledge or other disposition is exempt from the registration requirements of the Securities Act of
1933, as amended, and any applicable state securities laws or is made in accordance with said Act
and laws. In the event that a transfer of a Class B Certificate, Class P Certificate or privately
offered Class R Certificate is to be made either (i)(A) the Trustee shall require a written Opinion
of Counsel acceptable to and in form and substance satisfactory to the Trustee and the Company that
such transfer may be made pursuant to an exemption, describing the applicable exemption and the
basis therefor, from said Act and laws or is being made pursuant to said Act and laws, which
Opinion of Counsel shall not be an expense of the Trustee, the Company or the Master Servicer
(except that, if such transfer is made by the Company or the Master Servicer or any Affiliate
thereof, the Company or the Master Servicer shall provide such Opinion of Counsel at their own
expense); provided that such Opinion of Counsel will not be required in connection with the initial
transfer of any such Certificate by the Company or any Affiliate thereof to the Company or an
Affiliate of the Company and (B) the Trustee shall require the transferee to execute a
representation letter, substantially in the form of Exhibit H hereto, and the Trustee shall require
the transferor to execute a representation letter, substantially in the form of Exhibit I hereto,
each acceptable to and in form and substance satisfactory to the Company and the Trustee certifying
to the Company and the Trustee the facts surrounding such transfer, which representation letters
shall not be an expense of the Trustee, the Company or the Master Servicer; provided,
however, that such representation letters will not be required in connection with any transfer
of any such Certificate by the Company or any Affiliate thereof to the Company or an Affiliate of
the Company, and the Trustee shall be entitled to conclusively rely upon a representation (which,
upon the request of the Trustee, shall be a written representation) from the Company, of the status
of such transferee as an Affiliate of the Company or (ii) the prospective transferee of such a
Certificate shall be required to provide the Trustee, the Company and the

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Master Servicer with an investment letter substantially in the form of Exhibit J attached
hereto (or such other form as the Company in its sole discretion deems acceptable), which
investment letter shall not be an expense of the Trustee, the Company or the Master Servicer, and
which investment letter states that, among other things, such transferee (A) is a “qualified
institutional buyer” as defined under Rule 144A, acting for its own account or the accounts of
other “qualified institutional buyers” as defined under Rule 144A, and (B) is aware that the
proposed transferor intends to rely on the exemption from registration requirements under the
Securities Act of 1933, as amended, provided by Rule 144A. The Holder of any such Certificate
desiring to effect any such transfer, sale, pledge or other disposition shall, and does hereby
agree to, indemnify the Trustee, the Company, the Master Servicer and the Certificate Registrar
against any liability that may result if the transfer, sale, pledge or other disposition is not so
exempt or is not made in accordance with such federal and state laws.

	 	(e)	 	(i) In the case of any Class B, Class P or Class R Certificate presented for
registration in the name of any Person, either (A) the Trustee shall require an Opinion
of Counsel addressed to the Trustee, the Company and the Master Servicer, acceptable to
and in form and substance satisfactory to the Trustee to the effect that the purchase
or holding of such Class B, Class P or Class R Certificate is permissible under
applicable law, will not constitute or result in any non-exempt prohibited transaction
under Section 406 of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), or Section 4975 of the Code (or comparable provisions of any subsequent
enactments), and will not subject the Trustee, the Company or the Master Servicer to
any obligation or liability (including obligations or liabilities under ERISA or
Section 4975 of the Code) in addition to those undertaken in this Agreement, which
Opinion of Counsel shall not be an expense of the Trustee, the Company or the Master
Servicer or (B) the prospective Transferee shall be required to provide the Trustee,
the Company and the Master Servicer with a certification to the effect set forth in
paragraph six of Exhibit H (with respect to any Class B Certificate) or paragraph
fifteen of Exhibit G-1 (with respect to any Class P Certificate or Class R
Certificate), which the Trustee may rely upon without further inquiry or investigation,
or such other certifications as the Trustee may deem desirable or necessary in order to
establish that such Transferee or the Person in whose name such registration is
requested either (a) is not an employee benefit plan or other plan subject to the
prohibited transaction provisions of ERISA or Section 4975 of the Code, or any Person
(including an investment manager, a named fiduciary or a trustee of any such plan) who
is using “plan assets” of any such plan to effect such acquisition (each, a “Plan
Investor”) or (b) in the case of any Class B Certificate, the following conditions are
satisfied: (i) such Transferee is an insurance company, (ii) the source of funds used
to purchase or hold such Certificate (or interest therein) is an “insurance company
general account” (as defined in U.S. Department of Labor Prohibited Transaction Class
Exemption (“PTCE”) 95-60, and (iii) the conditions set forth in Sections I and III of
PTCE 95-60 have been satisfied (each entity that satisfies this clause (b), a
“Complying Insurance Company”).

	 		 	(ii) Any Transferee of a Class M Certificate will be deemed to have

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	 	 	 	represented by virtue of its purchase or holding of such Certificate (or interest
therein) that either (a) such Transferee is not a Plan Investor, (b) it has acquired
and is holding such Certificate in reliance on Prohibited Transaction Exemption
(“PTE”) 94-29, as most recently amended, PTE 2007-05, 72 Fed. Reg. 13130 (March 20,
2007) (the “Issuer Exemption”), and that it understands that there are certain
conditions to the availability of the Issuer Exemption including that such
Certificate must be rated, at the time of purchase, not lower than “BBB-” (or its
equivalent) by Standard & Poor’s, Fitch, Moody’s, DBRS Limited, or DBRS, Inc. or (c)
such Transferee is a Complying Insurance Company.

	 		 	(iii) (A) If any Class M Certificate (or any interest therein) is acquired or held
by any Person that does not satisfy the conditions described in paragraph (ii)
above, then the last preceding Transferee that either (i) is not a Plan Investor,
(ii) acquired such Certificate in compliance with the Issuer Exemption, or (iii) is
a Complying Insurance Company shall be restored, to the extent permitted by law, to
all rights and obligations as Certificate Owner thereof retroactive to the date of
such Transfer of such Class M Certificate. The Trustee shall be under no liability
to any Person for making any payments due on such Certificate to such preceding
Transferee.

	 		 	       (B) Any purported Certificate Owner whose acquisition or holding of any Class M
Certificate (or interest therein) was effected in violation of the restrictions in
this Section 5.02(e) shall indemnify and hold harmless the Company, the Trustee, the
Master Servicer, any Subservicer, the Underwriters and the Trust Fund from and
against any and all liabilities, claims, costs or expenses incurred by such parties
as a result of such acquisition or holding.

     (f) (i) Each Person who has or who acquires any Ownership Interest in a Class R Certificate
shall be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be
bound by the following provisions and to have irrevocably authorized the Trustee or its designee
under clause (iii)(A) below to deliver payments to a Person other than such Person and to negotiate
the terms of any mandatory sale under clause (iii)(B) below and to execute all instruments of
transfer and to do all other things necessary in connection with any such sale. The rights of each
Person acquiring any Ownership Interest in a Class R Certificate are expressly subject to the
following provisions:

     (A) Each Person holding or acquiring any Ownership Interest in a Class R
Certificate shall be a Permitted Transferee and shall promptly notify the Trustee of
any change or impending change in its status as a Permitted Transferee.

     (B) In connection with any proposed Transfer of any Ownership Interest in a
Class R Certificate, the Trustee shall require delivery to it, and shall not
register the Transfer of any Class R Certificate until its receipt of, (I) an
affidavit and agreement (a “Transfer Affidavit and Agreement,” in the form attached
hereto as Exhibit G-1) from the proposed Transferee, in form and substance
satisfactory to the Master Servicer, representing and warranting, among other
things, that it is a Permitted Transferee, that it is not acquiring its Ownership

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Interest in the Class R Certificate that is the subject of the proposed
Transfer as a nominee, trustee or agent for any Person who is not a Permitted
Transferee, that for so long as it retains its Ownership Interest in a Class R
Certificate, it will endeavor to remain a Permitted Transferee, and that it has
reviewed the provisions of this Section 5.02(f) and agrees to be bound by them, and
(II) a certificate, in the form attached hereto as Exhibit G-2, from the Holder
wishing to transfer the Class R Certificate, in form and substance satisfactory to
the Master Servicer, representing and warranting, among other things, that no
purpose of the proposed Transfer is to impede the assessment or collection of tax.

     (C) Notwithstanding the delivery of a Transfer Affidavit and Agreement by a
proposed Transferee under clause (B) above, if a Responsible Officer of the Trustee
who is assigned to this Agreement has actual knowledge that the proposed Transferee
is not a Permitted Transferee, no Transfer of an Ownership Interest in a Class R
Certificate to such proposed Transferee shall be effected.

     (D) Each Person holding or acquiring any Ownership Interest in a Class R
Certificate shall agree (x) to require a Transfer Affidavit and Agreement from any
other Person to whom such Person attempts to transfer its Ownership Interest in a
Class R Certificate and (y) not to transfer its Ownership Interest unless it
provides a certificate to the Trustee in the form attached hereto as Exhibit G-2.

     (E) Each Person holding or acquiring an Ownership Interest in a Class R
Certificate, by purchasing an Ownership Interest in such Certificate, agrees to give
the Trustee written notice that it is a “pass-through interest holder” within the
meaning of Temporary Treasury Regulations Section 1.67-3T(a)(2)(i)(A) immediately
upon acquiring an Ownership Interest in a Class R Certificate, if it is, or is
holding an Ownership Interest in a Class R Certificate on behalf of, a “pass-through
interest holder.”

     (ii) The Trustee shall register the Transfer of any Class R Certificate only if it
shall have received the Transfer Affidavit and Agreement, a certificate of the Holder
requesting such transfer in the form attached hereto as Exhibit G-2 and all of such other
documents as shall have been reasonably required by the Trustee as a condition to such
registration. Transfers of the Class R Certificates to Non-United States Persons and
Disqualified Organizations are prohibited.

     (iii) (A) If any Disqualified Organization shall become a holder of a Class R
Certificate, then the last preceding Permitted Transferee shall be restored, to the extent
permitted by law, to all rights and obligations as Holder thereof retroactive to the date of
registration of such Transfer of such Class R Certificate. If a Non-United States Person
shall become a holder of a Class R Certificate, then the last preceding United States Person
shall be restored, to the extent permitted by law, to all rights and obligations as Holder
thereof retroactive to the date of registration of such Transfer of such Class R
Certificate. If a transfer of a Class R Certificate is disregarded pursuant to the
provisions

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of Treasury Regulations Section 1.860E-1 or Section 1.860G-3, then the last preceding
Permitted Transferee shall be restored, to the extent permitted by law, to all rights and
obligations as Holder thereof retroactive to the date of registration of such Transfer of
such Class R Certificate. The Trustee shall be under no liability to any Person for any
registration of Transfer of a Class R Certificate that is in fact not permitted by this
Section 5.02(f) or for making any payments due on such Certificate to the holder thereof or
for taking any other action with respect to such holder under the provisions of this
Agreement.

     (B) If any purported Transferee shall become a Holder of a Class R Certificate
in violation of the restrictions in this Section 5.02(f) and to the extent that the
retroactive restoration of the rights of the Holder of such Class R Certificate as
described in clause (iii)(A) above shall be invalid, illegal or unenforceable, then
the Master Servicer shall have the right, without notice to the holder or any prior
holder of such Class R Certificate, to sell such Class R Certificate to a purchaser
selected by the Master Servicer on such terms as the Master Servicer may choose.
Such purported Transferee shall promptly endorse and deliver each Class R
Certificate in accordance with the instructions of the Master Servicer. Such
purchaser may be the Master Servicer itself or any Affiliate of the Master Servicer.
The proceeds of such sale, net of the commissions (which may include commissions
payable to the Master Servicer or its Affiliates), expenses and taxes due, if any,
shall be remitted by the Master Servicer to such purported Transferee. The terms
and conditions of any sale under this clause (iii)(B) shall be determined in the
sole discretion of the Master Servicer, and the Master Servicer shall not be liable
to any Person having an Ownership Interest in a Class R Certificate as a result of
its exercise of such discretion.

     (iv) The Master Servicer, on behalf of the Trustee, shall make available, upon written
request from the Trustee, all information necessary to compute any tax imposed (A) as a
result of the Transfer of an Ownership Interest in a Class R Certificate to any Person who
is a Disqualified Organization, including the information regarding “excess inclusions” of
such Class R Certificates required to be provided to the Internal Revenue Service and
certain Persons as described in Treasury Regulations Sections 1.860D-1(b)(5) and
1.860E-2(a)(5), and (B) as a result of any regulated investment company, real estate
investment trust, common trust fund, partnership, trust, estate or organization described in
Section 1381 of the Code that holds an Ownership Interest in a Class R Certificate having as
among its record holders at any time any Person who is a Disqualified Organization.
Reasonable compensation for providing such information may be required by the Master
Servicer from such Person.

     (v) The provisions of this Section 5.02(f) set forth prior to this clause (v) may be
modified, added to or eliminated, provided that there shall have been delivered to the
Trustee the following:

     (A) written notification from each Rating Agency to the effect that the
modification, addition to or elimination of such provisions will not cause such

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Rating Agency to downgrade its then-current ratings, if any, of any Class of
the Senior (in the case of the Insured Certificates (as defined in the Series
Supplement), such determination shall be made without giving effect to the
Certificate Policy (as defined in the Series Supplement)), Class M or Class B
Certificates below the lower of the then-current rating or the rating assigned to
such Certificates as of the Closing Date by such Rating Agency; and

     (B) subject to Section 10.01(f), an Officers’ Certificate of the Master
Servicer stating that the Master Servicer has received an Opinion of Counsel, in
form and substance satisfactory to the Master Servicer, to the effect that such
modification, addition to or absence of such provisions will not cause any portion
of any REMIC formed under the Series Supplement to cease to qualify as a REMIC and
will not cause (x) any portion of any REMIC formed under the Series Supplement to be
subject to an entity-level tax caused by the Transfer of any Class R Certificate to
a Person that is a Disqualified Organization or (y) a Certificateholder or another
Person to be subject to a REMIC-related tax caused by the Transfer of a Class R
Certificate to a Person that is not a Permitted Transferee.

     (g) No service charge shall be made for any transfer or exchange of Certificates of any Class,
but the Trustee may require payment of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any transfer or exchange of Certificates.

     (h) All Certificates surrendered for transfer and exchange shall be destroyed by the
Certificate Registrar.

     Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates.

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

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     Section 5.04. Persons Deemed Owners.

     Prior to due presentation of a Certificate for registration of transfer, the Company, the
Master Servicer, the Trustee, any Certificate Insurer, the Certificate Registrar and any agent of
the Company, the Master Servicer, the Trustee, any Certificate Insurer or the Certificate Registrar
may treat the Person in whose name any Certificate is registered as the owner of such Certificate
for the purpose of receiving distributions pursuant to Section 4.02 and for all other purposes
whatsoever, except as and to the extent provided in the definition of “Certificateholder,” and
neither the Company, the Master Servicer, the Trustee, any Certificate Insurer, the Certificate
Registrar nor any agent of the Company, the Master Servicer, the Trustee, any Certificate Insurer
or the Certificate Registrar shall be affected by notice to the contrary except as provided in
Section 5.02(f).

     Section 5.05. Appointment of Paying Agent.

     The Trustee may appoint a Paying Agent for the purpose of making distributions to the
Certificateholders pursuant to Section 4.02. In the event of any such appointment, on or prior to
each Distribution Date the Master Servicer on behalf of the Trustee shall deposit or cause to be
deposited with the Paying Agent a sum sufficient to make the payments to the Certificateholders in
the amounts and in the manner provided for in Section 4.02, such sum to be held in trust for the
benefit of the Certificateholders.

     The Trustee shall cause each Paying Agent to execute and deliver to the Trustee an instrument
in which such Paying Agent shall agree with the Trustee that such Paying Agent shall hold all sums
held by it for the payment to the Certificateholders in trust for the benefit of the
Certificateholders entitled thereto until such sums shall be distributed to such
Certificateholders. Any sums so held by such Paying Agent shall be held only in Eligible Accounts
to the extent such sums are not distributed to the Certificateholders on the date of receipt by
such Paying Agent.

     Section 5.06. U.S.A. Patriot Act Compliance.

     In order for it to comply with its duties under the U.S.A. Patriot Act, the Trustee may obtain
and verify certain information from the other parties hereto, including but not limited to such
parties’ name, address and other identifying information.

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ARTICLE VI

THE COMPANY AND THE MASTER SERVICER

     Section 6.01. Respective Liabilities of the Company and the Master Servicer.

     The Company and the Master Servicer shall each be liable in accordance herewith only to the
extent of the obligations specifically and respectively imposed upon and undertaken by the Company
and the Master Servicer herein. By way of illustration and not limitation, the Company is not
liable for the servicing and administration of the Mortgage Loans, nor is it obligated by Section
7.01 or Section 10.01 to assume any obligations of the Master Servicer or to appoint a designee to
assume such obligations, nor is it liable for any other obligation hereunder that it may, but is
not obligated to, assume unless it elects to assume such obligation in accordance herewith.

	 	Section 6.02.	 	 Merger or Consolidation of the Company or the Master Servicer; Assignment of Rights and Delegation of Duties by Master Servicer.

     (a) The Company and the Master Servicer shall each keep in full effect its existence, rights
and franchises as a limited liability company under the laws of the state of its formation and as a
[corporation][limited liability company] under the laws of the state of its
[organization][formation], respectively, and shall each obtain and preserve its qualification to do
business as a foreign limited liability or other Person in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and enforceability of this
Agreement, the Certificates or any of the Mortgage Loans and to perform its respective duties under
this Agreement.

     (b) Any Person into which the Company or the Master Servicer may be merged or converted or
with which it may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Company or the Master Servicer shall be a party, or any Person
succeeding to the business of the Company or the Master Servicer, shall be the successor of the
Company or the Master Servicer, 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 in this Section
6.02(b) to the contrary notwithstanding; provided, however, that the successor or
surviving Person to the Master Servicer shall be qualified to service mortgage loans on behalf of
Fannie Mae or Freddie Mac; and provided further that the Master Servicer (or the Company, as
applicable) shall notify each Rating Agency (in accordance with Section 11.11) and the Trustee in
writing of any such merger, conversion or consolidation at least 30 days prior to the effective
date of such event.

     (c) Notwithstanding anything else in this Section 6.02 and Section 6.04 to the contrary, the
Master Servicer may assign its rights and delegate its duties and obligations under this Agreement;
provided that the Person accepting such assignment or delegation shall be a Person which is
qualified to service mortgage loans on behalf of Fannie Mae or Freddie Mac, is reasonably
satisfactory to the Trustee and the Company, is willing to service the Mortgage Loans and executes
and delivers to the Company and the Trustee an agreement, in form and substance reasonably
satisfactory to the Company and the Trustee, which contains an assumption by such

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Person of the due and punctual performance and observance of each covenant and condition to be
performed or observed by the Master Servicer under this Agreement; provided further that each
Rating Agency’s rating of the Classes of Certificates (in the case of the Insured Certificates (as
defined in the Series Supplement), such determination shall be made without giving effect to the
Certificate Policy (as defined in the Series Supplement)) that have been rated in effect
immediately prior to such assignment and delegation will not be qualified, reduced or withdrawn as
a result of such assignment and delegation (as evidenced by a letter to such effect from each
Rating Agency). In the case of any such assignment and delegation, the Master Servicer shall be
released from its obligations under this Agreement, except that the Master Servicer shall remain
liable for all liabilities and obligations incurred by it as Master Servicer hereunder prior to the
satisfaction of the conditions to such assignment and delegation set forth in the next preceding
sentence. Notwithstanding the foregoing, in the event of a pledge or assignment by the Master
Servicer solely of its rights to purchase all assets of the Trust Fund under Section 9.01(a) (or,
if so specified in Section 9.01(a), its rights to purchase the Mortgage Loans and property acquired
related to such Mortgage Loans or its rights to purchase the Certificates related thereto), the
provisos of the first sentence of this paragraph will not apply.

     Section 6.03. Limitation on Liability of the Company, the Master Servicer and Others.

     Neither the Company, the Master Servicer nor any of the directors, officers, employees or
agents of the Company or the Master Servicer shall be under any liability to the Trust Fund or the
Certificateholders for any action taken or for refraining from the taking of any action in good
faith pursuant to this Agreement, or for errors in judgment; provided, however,
that this provision shall not protect the Company, the Master Servicer or any such Person against
any breach of warranties or representations made herein or any liability which would otherwise be
imposed by reason of willful misfeasance, bad faith or gross negligence in the performance of
duties or by reason of reckless disregard of obligations and duties hereunder. The Company, the
Master Servicer and any director, officer, employee or agent of the Company or the Master Servicer
may rely in good faith on any document of any kind prima facie properly executed and submitted by
any Person respecting any matters arising hereunder. The Company, the Master Servicer and any
director, officer, employee or agent of the Company or the Master Servicer shall be indemnified by
the Trust Fund and held harmless against any loss, liability or expense incurred in connection with
any legal action relating to this Agreement or the Certificates, other than any loss, liability or
expense related to any specific Mortgage Loan or Mortgage Loans (except as any such loss, liability
or expense shall be otherwise reimbursable pursuant to this Agreement) and any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or gross negligence in the performance
of duties hereunder or by reason of reckless disregard of obligations and duties hereunder.

     Neither the Company nor the Master Servicer shall be under any obligation to appear in,
prosecute or defend any legal or administrative action, proceeding, hearing or examination that is
not incidental to its respective duties under this Agreement and which in its opinion may involve
it in any expense or liability; provided, however, that the Company or the Master
Servicer may in its discretion undertake any such action, proceeding, hearing or examination that
it may deem necessary or desirable in respect to this Agreement and the rights and duties of the
parties hereto and the interests of the Certificateholders hereunder. In such event, the legal
expenses and costs

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of such action, proceeding, hearing or examination and any liability resulting therefrom shall
be expenses, costs and liabilities of the Trust Fund, and the Company and the Master Servicer shall
be entitled to be reimbursed therefor out of amounts attributable to the Mortgage Loans on deposit
in the Custodial Account as provided by Section 3.10 and, on the Distribution Date(s) following
such reimbursement, the aggregate of such expenses and costs shall be allocated in reduction of the
Accrued Certificate Interest on each Class entitled thereto in the same manner as if such expenses
and costs constituted a Prepayment Interest Shortfall.

     Section 6.04. Company and Master Servicer Not to Resign.

     Subject to the provisions of Section 6.02, neither the Company nor the Master Servicer shall
resign from its respective obligations and duties hereby imposed on it except upon determination
that its duties hereunder are no longer permissible under applicable law. Any such determination
permitting the resignation of the Company or the Master Servicer shall be evidenced by an Opinion
of Counsel to such effect delivered to the Trustee. No such resignation by the Master Servicer
shall become effective until the Trustee or a successor servicer shall have assumed the Master
Servicer’s responsibilities and obligations in accordance with Section 7.02.

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ARTICLE VII

DEFAULT

     Section 7.01. Events of Default.

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

     (i) the Master Servicer shall fail to deposit or cause to be deposited into the
Certificate Account any amounts required to be so deposited therein at the time required
pursuant to Section 4.01 or otherwise or the Master Servicer shall fail to distribute or
cause to be distributed to the Holders of Certificates of any Class any distribution
required to be made under the terms of the Certificates of such Class and this Agreement
and, in each case, such failure shall continue unremedied for a period of 5 days after the
date upon which written notice of such failure, requiring such failure to be remedied, shall
have been given to the Master Servicer by the Trustee or the Company or to the Master
Servicer, the Company and the Trustee by the Holders of Certificates of such Class
evidencing Percentage Interests aggregating not less than 25%; or

     (ii) the Master Servicer shall fail to observe or perform in any material respect any
other of the covenants or agreements on the part of the Master Servicer contained in the
Certificates of any Class or in this Agreement and such failure shall continue unremedied
for a period of 30 days (except that such number of days shall be 15 in the case of a
failure to pay the premium for any Required Insurance Policy) after the date on which
written notice of such failure, requiring the same to be remedied, shall have been given to
the Master Servicer by the Trustee or the Company, or to the Master Servicer, the Company
and the Trustee by the Holders of Certificates of any Class evidencing, in the case of any
such Class, Percentage Interests aggregating not less than 25%; or

     (iii) a decree or order of a court or agency or supervisory authority having
jurisdiction in the premises in an involuntary case under any present or future federal or
state bankruptcy, insolvency or similar law or appointing a conservator or receiver or
liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall have been
entered against the Master Servicer and such decree or order shall have remained in force
undischarged or unstayed for a period of 60 days; or

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

     (v) the Master Servicer shall admit in writing its inability to pay its debts generally
as they become due, file a petition to take advantage of, or commence a

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voluntary case under, any applicable insolvency or reorganization statute, make an
assignment for the benefit of its creditors, or voluntarily suspend payment of its
obligations; or

     (vi) the Master Servicer shall notify the Trustee pursuant to Section 4.04(b) that it
is unable to deposit in the Certificate Account an amount equal to the required P&I Advance
for the applicable Distribution Date.

     If an Event of Default described in clauses (i)-(v) of this Section shall occur, then, and in
each and every such case, so long as such Event of Default shall not have been remedied, either the
Company or the Trustee may, and at the direction of Holders of Certificates entitled to at least
51% of the Voting Rights, the Trustee shall, by notice in writing to the Master Servicer (and to
the Company if given by the Trustee or to the Trustee if given by the Company), terminate all of
the rights and obligations of the Master Servicer under this Agreement and in and to the Mortgage
Loans and the proceeds thereof, other than its rights as a Certificateholder hereunder. If an
Event of Default described in clause (vi) hereof shall occur, the Trustee shall, by notice to the
Master Servicer and the Company, immediately terminate all of the rights and obligations of the
Master Servicer under this Agreement and in and to the Mortgage Loans and the proceeds thereof,
other than its rights as a Certificateholder hereunder as provided in Section 4.04(b). On or after
the receipt by the Master Servicer of such written notice, all authority and power of the Master
Servicer under this Agreement, whether with respect to the Certificates (other than as a Holder
thereof) or the Mortgage Loans or otherwise, shall subject to Section 7.02 pass to and be vested in
the Trustee or the Trustee’s designee appointed pursuant to Section 7.02; and, without limitation,
the Trustee is hereby authorized and empowered to execute and deliver, on behalf of the Master
Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do
or accomplish all other acts or things necessary or appropriate to effect the purposes of such
notice of termination, whether to complete the transfer and endorsement or assignment of the
Mortgage Loans and related documents, or otherwise. The Master Servicer agrees to cooperate with
the Trustee in effecting the termination of the Master Servicer’s responsibilities and rights
hereunder, including, without limitation, the transfer to the Trustee or its designee for
administration by it of all cash amounts which shall at the time be credited to the Custodial
Account or the Certificate Account or thereafter be received with respect to the Mortgage Loans.
No such termination shall release the Master Servicer for any liability that it would otherwise
have hereunder for any act or omission prior to the effective time of such termination.

     Notwithstanding any termination of the activities of [_______________] in its capacity as
Master Servicer hereunder, [_______________] shall be entitled to receive, out of any late
collection of a Monthly Payment on a Mortgage Loan which was due prior to the notice terminating
[_______________]’s rights and obligations as Master Servicer hereunder and received after such
notice, that portion to which [_______________] would have been entitled pursuant to Sections
3.10(a)(ii), (iv), (vi) and (vii) and Section 4.01(b), and any other amounts payable to
[_______________] hereunder the entitlement to which arose prior to the termination of its
activities hereunder. Upon the termination of [_______________] as Master Servicer hereunder the
Company shall deliver to the Trustee a copy of the Program Guide.

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     Section 7.02. Trustee or Company to Act; Appointment of Successor.

     (a) On and after the time the Master Servicer receives a notice of termination pursuant to
Section 7.01 or resigns in accordance with Section 6.04, the Trustee or, upon notice to the Company
and with the Company’s consent (which shall not be unreasonably withheld) a designee (which meets
the standards set forth below) of the Trustee, shall be the successor in all respects to the Master
Servicer in its capacity as servicer under this Agreement and the transactions set forth or
provided for herein and shall be subject to all the responsibilities, duties and liabilities
relating thereto placed on the Master Servicer (except for the responsibilities, duties and
liabilities contained in Sections 2.02 and 2.03(a), excluding the duty to notify related
Subservicers or Sellers as set forth in such Sections, and its obligations to deposit amounts in
respect of losses incurred prior to such notice or termination on the investment of funds in the
Custodial Account or the Certificate Account pursuant to Sections 3.07(c) and 4.01(b) by the terms
and provisions hereof); provided, however, that any failure to perform such duties
or responsibilities caused by the preceding Master Servicer’s failure to provide information
required by Section 4.04 shall not be considered a default by the Trustee hereunder. As
compensation therefor, the Trustee shall be entitled to all funds relating to the Mortgage Loans
which the Master Servicer would have been entitled to charge to the Custodial Account or the
Certificate Account if the Master Servicer had continued to act hereunder and, in addition, shall
be entitled to the income from any Permitted Investments made with amounts attributable to the
Mortgage Loans held in the Custodial Account or the Certificate Account. If the Trustee has become
the successor to the Master Servicer in accordance with Section 6.04 or Section 7.01, then
notwithstanding the above, the Trustee may, if it shall be unwilling to so act, or shall, if it is
unable to so act, appoint, or petition a court of competent jurisdiction to appoint, any
established housing and home finance institution, which is also a Fannie Mae- or Freddie
Mac-approved mortgage servicing institution, having a net worth of not less than $10,000,000 as the
successor to the Master Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Master Servicer hereunder. Pending appointment of a
successor to the Master Servicer hereunder, the Trustee shall become successor to the Master
Servicer and shall act in such capacity as hereinabove provided. In connection with such
appointment and assumption, the Trustee may make such arrangements for the compensation of such
successor out of payments on Mortgage Loans as it and such successor shall agree; provided,
however, that no such compensation shall be in excess of that permitted the initial Master
Servicer hereunder. The Company, the Trustee, the Custodian and such successor shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any such succession.
The Master Servicer shall pay the reasonable expenses of the Trustee in connection with any
servicing transition hereunder.

     (b) In connection with the termination or resignation of the Master Servicer hereunder,
either (i) the successor Master Servicer, including the Trustee if the Trustee is acting as
successor Master Servicer, shall represent and warrant that it is a member of MERS in good standing
and shall agree to comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with MERS, in which case
the predecessor Master Servicer shall cooperate with the successor Master Servicer in causing MERS
to revise its records to reflect the transfer of servicing to the successor Master Servicer as
necessary under MERS’ rules and regulations, or (ii) the predecessor Master Servicer shall
cooperate with the successor Master Servicer in causing MERS to execute and deliver an

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assignment of Mortgage in recordable form to transfer the Mortgage from MERS to the Trustee
and to execute and deliver such other notices, documents and other instruments as may be necessary
or desirable to effect a transfer of such Mortgage Loan or servicing of such Mortgage Loan on the
MERS® System to the successor Master Servicer. The predecessor Master Servicer shall file or cause
to be filed any such assignment in the appropriate recording office. The predecessor Master
Servicer shall bear any and all fees of MERS, costs of preparing any assignments of Mortgage, and
fees and costs of filing any assignments of Mortgage that may be required under this subsection
(b). The successor Master Servicer shall cause such assignment to be delivered to the Trustee or
the Custodian promptly upon receipt of the original with evidence of recording thereon or a copy
certified by the public recording office in which such assignment was recorded.

     Section 7.03. Notification to Certificateholders.

     (a) Upon any such termination or appointment of a successor to the Master Servicer, the
Trustee shall give prompt written notice thereof to the Certificateholders at their respective
addresses appearing in the Certificate Register.

     (b) Within 60 days after the occurrence of any Event of Default, the Trustee shall transmit by
mail to all Holders of Certificates notice of each such Event of Default hereunder known to the
Trustee, unless such Event of Default shall have been cured or waived.

     Section 7.04. Waiver of Events of Default.

     The Holders representing at least 66% of the Voting Rights affected by a default or Event of
Default hereunder may waive such default or Event of Default; provided, however,
that (a) a default or Event of Default under clause (i) of Section 7.01 may be waived only by all
of the Holders of Certificates affected by such default or Event of Default and (b) no waiver
pursuant to this Section 7.04 shall affect the Holders of Certificates in the manner set forth in
Section 11.01(b)(i) or (ii). Upon any such waiver of a default or Event of Default by the Holders
representing the requisite percentage of Voting Rights affected by such default or Event of
Default, such default or Event of Default shall cease to exist and shall be deemed to have been
remedied for every purpose hereunder. No such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon except to the extent expressly
so waived.

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ARTICLE VIII

CONCERNING THE TRUSTEE

     Section 8.01. Duties of Trustee.

     (a) The Trustee, prior to the occurrence of an Event of Default and after the curing or waiver
of all Events of Default which may have occurred, undertakes to perform such duties and only such
duties as are specifically set forth in this Agreement. In case an Event of Default has occurred
(which has not been cured or waived), the Trustee shall exercise such of the rights and powers
vested in it by this Agreement, and use the same degree of care and skill in their exercise as a
prudent investor would exercise or use under the circumstances in the conduct of such investor’s
own affairs.

     (b) The Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports,
documents, orders or other instruments furnished to the Trustee which are specifically required to
be furnished pursuant to any provision of this Agreement, shall examine them to determine whether
they conform to the requirements of this Agreement. The Trustee shall notify the
Certificateholders of any such documents which do not materially conform to the requirements of
this Agreement in the event that the Trustee, after so requesting, does not receive satisfactorily
corrected documents.

     The Trustee shall forward or cause to be forwarded in a timely fashion the notices, reports
and statements required to be forwarded by the Trustee pursuant to Sections 4.03, 4.06, 7.03 and
10.01. The Trustee shall furnish in a timely fashion to the Master Servicer such information as
the Master Servicer may reasonably request from time to time for the Master Servicer to fulfill its
duties as set forth in this Agreement. The Trustee covenants and agrees that it shall perform its
obligations hereunder in a manner so as to maintain the status of any portion of any REMIC formed
under the Series Supplement as a REMIC under the REMIC Provisions and (subject to Section 10.01(f))
to prevent the imposition of any federal, state or local income, prohibited transaction,
contribution or other tax on the Trust Fund to the extent that maintaining such status and avoiding
such taxes are reasonably within the control of the Trustee and are reasonably within the scope of
its duties under this Agreement.

     (c) No provision of this Agreement shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act or its own willful misconduct;
provided, however, that:

     (i) Prior to the occurrence of an Event of Default, and after the curing or waiver of
all such Events of Default which may have occurred, the duties and obligations of the
Trustee shall be determined solely by the express provisions of this Agreement, the Trustee
shall not be liable except for the performance of such duties and obligations as are
specifically set forth in this Agreement, no implied covenants or obligations shall be read
into this Agreement against the Trustee and, in the absence of bad faith on the part of the
Trustee, the Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions furnished

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to the Trustee by the Company or the Master Servicer and which on their face, do not
contradict the requirements of this Agreement;

     (ii) The Trustee shall not be personally liable for an error of judgment made in good
faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be
proved that the Trustee was negligent in ascertaining the pertinent facts;

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

     (iv) The Trustee shall not be charged with knowledge of any default (other than a
default in payment to the Trustee) specified in clauses (i) and (ii) of Section 7.01 or an
Event of Default under clauses (iii), (iv) and (v) of Section 7.01 unless a Responsible
Officer of the Trustee assigned to and working in the Corporate Trust Office obtains actual
knowledge of such failure or event or the Trustee receives written notice of such failure or
event at its Corporate Trust Office from the Master Servicer, the Company or any
Certificateholder; and

     (v) Except to the extent provided in Section 7.02, no provision in this Agreement shall
require the Trustee to expend or risk its own funds (including, without limitation, the
making of any Advance) or otherwise incur any personal financial liability in the
performance of any of its duties as Trustee hereunder, or in the exercise of any of its
rights or powers, if the Trustee shall have reasonable grounds for believing that repayment
of funds or adequate indemnity against such risk or liability is not reasonably assured to
it.

     (d) The Trustee shall timely pay, from its own funds, the amount of any and all federal, state
and local taxes imposed on the Trust Fund or its assets or transactions including, without
limitation, (A) “prohibited transaction” penalty taxes as defined in Section 860F of the Code, if,
when and as the same shall be due and payable, (B) any tax on contributions to a REMIC after the
Closing Date imposed by Section 860G(d) of the Code and (C) any tax on “net income from foreclosure
property” as defined in Section 860G(c) of the Code, but only if such taxes arise out of a breach
by the Trustee of its obligations hereunder, which breach constitutes negligence or willful
misconduct of the Trustee.

     (e) Notwithstanding anything to the contrary contained herein or in any related Custodial
Agreement, in no event shall the Trustee have any liability in respect of any actions or omissions
of the Custodian herein or pursuant to any related Custodial Agreement.

     Section 8.02. Certain Matters Affecting the Trustee.

     (a) Except as otherwise provided in Section 8.01:

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

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

     (iii) The Trustee shall be under no obligation to exercise any of the trusts or powers
vested in it by this Agreement or to institute, conduct or defend any litigation hereunder
or in relation hereto at the request, order or direction of any of the Certificateholders,
pursuant to the provisions of this Agreement, unless such Certificateholders shall have
offered to the Trustee reasonable security or indemnity against the costs, expenses and
liabilities which may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default
(which has not been cured or waived), to exercise such of the rights and powers vested in it
by this Agreement, and to use the same degree of care and skill in their exercise as a
prudent investor would exercise or use under the circumstances in the conduct of such
investor’s own affairs;

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

     (v) Prior to the occurrence of an Event of Default hereunder and after the curing or
waiver of all Events of Default which may have occurred, the Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order, approval, bond or
other paper or document, unless directed in writing so to do by Holders of Certificates
evidencing not less than 50% of the Voting Rights; provided, however, that
if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the opinion of the
Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms
of this Agreement, the Trustee may require reasonable indemnity against such expense or
liability as a condition to so proceeding. The reasonable expense of every such examination
shall be paid by the Master Servicer, if an Event of Default shall have occurred and is
continuing, and otherwise by the Certificateholder requesting the investigation;

     (vi) The Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys; and

     (vii) To the extent authorized under the Code and the regulations promulgated
thereunder, each Holder of a Class R Certificate hereby irrevocably appoints and

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authorizes the Trustee to be its attorney-in-fact for purposes of signing any Tax
Returns required to be filed on behalf of the Trust Fund. The Trustee shall sign on behalf
of the Trust Fund and deliver to the Master Servicer in a timely manner any Tax Returns
prepared by or on behalf of the Master Servicer that the Trustee is required to sign as
determined by the Master Servicer pursuant to applicable federal, state or local tax laws,
provided that the Master Servicer shall indemnify the Trustee for signing any such Tax
Returns that contain errors or omissions.

     (b) Following the issuance of the Certificates, the Trustee shall not accept any contribution
of assets to the Trust Fund unless (subject to Section 10.01(f)) it shall have obtained or been
furnished with an Opinion of Counsel to the effect that such contribution will not (i) cause any
portion of any REMIC formed under the Series Supplement to fail to qualify as a REMIC at any time
that any Certificates are outstanding or (ii) cause the Trust Fund to be subject to any federal tax
as a result of such contribution (including the imposition of any federal tax on “prohibited
transactions” imposed under Section 860F(a) of the Code).

     Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans.

     The recitals contained herein and in the Certificates (other than the execution of the
Certificates and relating to the acceptance and receipt of the Mortgage Loans) shall be taken as
the statements of the Company or the Master Servicer as the case may be, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Agreement or of the Certificates (except that the Certificates shall be duly
and validly executed and authenticated by it as Certificate Registrar) or of any Mortgage Loan or
related document, or of MERS or the MERS® System. Except as otherwise provided herein, the Trustee
shall not be accountable for the use or application by the Company or the Master Servicer of any of
the Certificates or of the proceeds of such Certificates, or for the use or application of any
funds paid to the Company or the Master Servicer in respect of the Mortgage Loans or deposited in
or withdrawn from the Custodial Account or the Certificate Account by the Company or the Master
Servicer.

     Section 8.04. Trustee May Own Certificates.

     The Trustee in its individual or any other capacity may become the owner or pledgee of
Certificates with the same rights it would have if it were not Trustee.

     Section 8.05. Master Servicer to Pay Trustee’s Fees and Expenses; Indemnification.

     (a) The Master Servicer covenants and agrees to pay to the Trustee and any co-trustee from
time to time, and the Trustee and any co-trustee shall be entitled to, reasonable compensation
(which shall not be limited by any provision of law in regard to the compensation of a trustee of
an express trust) for all services rendered by each of them in the execution of the trusts hereby
created and in the exercise and performance of any of the powers and duties hereunder of the
Trustee and any co-trustee, and the Master Servicer will pay or reimburse the Trustee and any
co-trustee upon request for all reasonable expenses, disbursements and advances incurred or made by
the Trustee or any co-trustee in accordance with any of the provisions of

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this Agreement (including the reasonable compensation and the expenses and disbursements of
its counsel and of all persons not regularly in its employ, and the expenses incurred by the
Trustee or any co-trustee in connection with the appointment of an office or agency pursuant to
Section 8.12) except any such expense, disbursement or advance as may arise from its negligence or
bad faith.

     (b) The Master Servicer agrees to indemnify the Trustee for, and to hold the Trustee harmless
against, any loss, liability or expense incurred without negligence or willful misconduct on the
Trustee’s part, arising out of, or in connection with, the acceptance and administration of the
Trust Fund, including the costs and expenses (including reasonable legal fees and expenses) of
defending itself against any claim in connection with the exercise or performance of any of its
powers or duties under this Agreement and the Custodial Agreement, and the Master Servicer further
agrees to indemnify the Trustee for, and to hold the Trustee harmless against, any loss, liability
or expense arising out of, or in connection with, the provisions set forth in the second paragraph
of Section 2.01(c) hereof, including, without limitation, all costs, liabilities and expenses
(including reasonable legal fees and expenses) of investigating and defending itself against any
claim, action or proceeding, pending or threatened, relating to the provisions of this paragraph,
provided that:

     (i) with respect to any such claim, the Trustee shall have given the Master Servicer
written notice thereof promptly after the Trustee shall have actual knowledge thereof;

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

     (iii) notwithstanding anything in this Agreement to the contrary, the Master Servicer
shall not be liable for settlement of any claim by the Trustee entered into without the
prior consent of the Master Servicer which consent shall not be unreasonably withheld.

No termination of this Agreement shall affect the obligations created by this Section 8.05(b) of
the Master Servicer to indemnify the Trustee under the conditions and to the extent set forth
herein.

     Notwithstanding the foregoing, the indemnification provided by the Master Servicer in this
Section 8.05(b) shall not be available (A) for any loss, liability or expense of the Trustee,
including the costs and expenses of defending itself against any claim, incurred in connection with
any actions taken by the Trustee at the direction of the Certificateholders pursuant to the terms
of this Agreement or (B) where the Trustee is required to indemnify the Master Servicer pursuant to
Section 12.05(a).

     Section 8.06. Eligibility Requirements for Trustee.

     The Trustee hereunder shall at all times be a corporation or a national banking association
having its principal office in a state and city acceptable to the Company and organized and doing
business under the laws of such state or the United States of America, authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of at least

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$50,000,000, subject to supervision or examination by federal or state authority and having a
sufficient rating so as to maintain the then current ratings of the Certificates and the short-term
rating of such institution shall be A-1 in the case of Standard & Poor’s if Standard & Poor’s is a
Rating Agency. If such corporation or national banking association publishes reports of condition
at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, the Trustee shall resign immediately in the manner
and with the effect specified in Section 8.07.

     Section 8.07. Resignation and Removal of the Trustee.

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

     (b) If at any time the Trustee shall cease to be eligible in accordance with the provisions of
Section 8.06 and shall fail to resign after written request therefor by the Company, or if at any
time the Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Company may remove the Trustee and appoint a successor
trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee. In addition, in the event that the
Company determines that the Trustee has failed (i) to distribute or cause to be distributed to the
Certificateholders any amount required to be distributed hereunder, if such amount is held by the
Trustee or its Paying Agent (other than the Master Servicer or the Company) for distribution or
(ii) to otherwise observe or perform in any material respect any of its covenants, agreements or
obligations hereunder, and such failure shall continue unremedied for a period of 5 days (in
respect of clause (i) above) or 30 days (in respect of clause (ii) above other than any failure to
comply with the provisions of Article XII, in which case no notice or grace period shall be
applicable) after the date on which written notice of such failure, requiring that the same be
remedied, shall have been given to the Trustee by the Company, then the Company may remove the
Trustee and appoint a successor trustee by written instrument delivered as provided in the
preceding sentence. In connection with the appointment of a successor trustee pursuant to the
preceding sentence, the Company shall, on or before the date on which any such appointment becomes
effective, obtain from each Rating Agency written confirmation that the appointment of any such
successor trustee will not result in the reduction of the ratings on any class of the Certificates
below the lesser of the then current or original ratings on such Certificates.

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     (c) The Holders of Certificates entitled to at least 51% of the Voting Rights may at any time
remove the Trustee and appoint a successor trustee by written instrument or instruments, in
triplicate, signed by such Holders or their attorneys-in-fact duly authorized, one complete set of
which instruments shall be delivered to the Company, one complete set to the Trustee so removed and
one complete set to the successor so appointed.

     (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant
to any of the provisions of this Section shall become effective upon acceptance of appointment by
the successor trustee as provided in Section 8.08.

     Section 8.08. Successor Trustee.

     (a) Any successor trustee appointed as provided in Section 8.07 shall execute, acknowledge
and deliver to the Company and to its predecessor trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally named as trustee
herein. The predecessor trustee shall deliver to the successor trustee all Custodial Files and
related documents and statements held by it hereunder (other than any Custodial Files at the time
held by a Custodian, which shall become the agent of any successor trustee hereunder), and the
Company, the Master Servicer and the predecessor trustee shall execute and deliver such instruments
and do such other things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee all such rights, powers, duties and obligations.

     (b) No successor trustee shall accept appointment as provided in this Section unless at the
time of such acceptance such successor trustee shall be eligible under the provisions of Section
8.06.

     (c) Upon acceptance of appointment by a successor trustee as provided in this Section, the
Company shall mail notice of the succession of such trustee hereunder to all Holders of
Certificates at their addresses as shown in the Certificate Register. If the Company fails to mail
such notice within 10 days after acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be mailed at the expense of the Company.

     Section 8.09. Merger or Consolidation of Trustee.

     Any corporation or national banking association into which the Trustee may be merged or
converted or with which it may be consolidated or any corporation or national banking association
resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation or national banking association succeeding to the business of the Trustee, shall be
the successor of the Trustee hereunder, provided such corporation or national banking association
shall be eligible under the provisions of Section 8.06, 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. The Trustee shall mail notice of any such merger or consolidation to the
Certificateholders at their address as shown in the Certificate Register.

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     Section 8.10. Appointment of Co-Trustee or Separate Trustee.

     (a) Notwithstanding any other provisions hereof, at any time, for the purpose of meeting any
legal requirements of any jurisdiction in which any part of the Trust Fund or property securing the
same may at the time be located, the Master Servicer and the Trustee acting jointly shall have the
power and shall execute and deliver all instruments to appoint one or more Persons approved by the
Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or separate trustee or
separate trustees, of all or any part of the Trust Fund, and to vest in such Person or Persons, in
such capacity, such title to the Trust Fund, or any part thereof, and, subject to the other
provisions of this Section 8.10, such powers, duties, obligations, rights and trusts as the Master
Servicer and the Trustee may consider necessary or desirable. If the Master Servicer shall not
have joined in such appointment within 15 days after the receipt by it of a request so to do, or in
case an Event of Default shall have occurred and be continuing, the Trustee alone shall have the
power to make such appointment. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor trustee under Section 8.06 hereunder and no notice to
Holders of Certificates of the appointment of co-trustee(s) or separate trustee(s) shall be
required under Section 8.08 hereof.

     (b) In the case of any appointment of a co-trustee or separate trustee pursuant to this
Section 8.10 all rights, powers, duties and obligations conferred or imposed upon the Trustee shall
be conferred or imposed upon and exercised or performed by the Trustee, and such separate trustee
or co-trustee jointly, except to the extent that under any law of any jurisdiction in which any
particular act or acts are to be performed (whether as Trustee hereunder or as successor to the
Master Servicer hereunder), the Trustee shall be incompetent or unqualified to perform such act or
acts, in which event such rights, powers, duties and obligations (including the holding of title to
the Trust Fund or any portion thereof in any such jurisdiction) shall be exercised and performed by
such separate trustee or co-trustee at the direction of the Trustee.

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

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

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     Section 8.11. Appointment of the Custodian.

     The Trustee may, with the consent of the Master Servicer and the Company, or shall, at the
direction of the Company and the Master Servicer, appoint custodians who are not Affiliates of the
Company, the Master Servicer or any Seller to hold all or a portion of the Custodial Files as agent
for the Trustee, by entering into a Custodial Agreement. Notwithstanding anything to the contrary
contained herein, the Company, Master Servicer and Trustee acknowledge that the functions of the
Trustee hereunder with respect to the acceptance, custody, inspection and release of Custodial
Files, and the preparation and delivery of the Interim Certification required pursuant to Section
2.02, shall be performed by the Custodian as and to the extent set forth in the Custodial
Agreement. Subject to Article VIII, the Trustee agrees to comply with the terms of each Custodial
Agreement with respect to the Custodial Files and to enforce the terms and provisions thereof
against the related custodian for the benefit of the Certificateholders. Each custodian shall be a
depository institution subject to supervision by federal or state authority, shall have a combined
capital and surplus of at least $15,000,000 and shall be qualified to do business in the
jurisdiction in which it holds any Custodial File. Each Custodial Agreement, with respect to the
Custodial Files, may be amended only as provided in Section 11.01. The Trustee shall notify the
Certificateholders of the appointment of any custodian (other than the custodian appointed as of
the Closing Date) pursuant to this Section 8.11.

     Section 8.12. Appointment of Office or Agency.

     The Trustee will maintain an office or agency in the United States at the address designated
in Section 11.05 of the Series Supplement where Certificates may be surrendered for registration of
transfer or exchange. The Trustee will maintain an office at the address stated in Section 11.05 of
the Series Supplement where notices and demands to or upon the Trustee in respect of this Agreement
may be served.

     Section 8.13. DTC Letter of Representations.

     The Trustee is hereby authorized and directed to, and agrees that it shall, enter into the DTC
Letter on behalf of the Trust Fund and in its individual capacity as agent thereunder.

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ARTICLE IX

TERMINATION OR OPTIONAL PURCHASE OF ALL CERTIFICATES

	 	Section 9.01.	 	 Optional Purchase by the Master Servicer of All Certificates; Termination
Upon Purchase by the Master Servicer or Liquidation of All Mortgage Loans.

     (a) Subject to Section 9.02, the respective obligations and responsibilities of the Company,
the Master Servicer and the Trustee created hereby in respect of the Certificates (other than the
obligation of the Trustee to make certain payments after the Final Distribution Date to
Certificateholders and the obligation of the Company to send certain notices as hereinafter set
forth) shall terminate upon the last action required to be taken by the Trustee on the Final
Distribution Date pursuant to this Article IX following the earlier of:

     (i) the later of the final payment or other liquidation (or any P&I Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust Fund or the disposition of
all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan,
or

     (ii) the purchase by the Master Servicer of all Mortgage Loans and all property
acquired in respect of any Mortgage Loan remaining in the Trust Fund at a price equal to
100% of the unpaid principal balance of each Mortgage Loan or, if less than such unpaid
principal balance, the fair market value of the related underlying property of such Mortgage
Loan with respect to Mortgage Loans as to which title has been acquired if such fair market
value is less than such unpaid principal balance (net of any unreimbursed P&I Advances
attributable to principal) on the day of repurchase plus accrued interest thereon at the Net
Mortgage Rate (or Modified Net Mortgage Rate in the case of any Modified Mortgage Loan) to,
but not including, the first day of the month in which such repurchase price is distributed,
provided, however, that in no event shall the trust created hereby continue
beyond the expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late ambassador of the United States to the Court of St. James,
living on the date hereof and provided further that the purchase price set forth above shall
be increased as is necessary, as determined by the Master Servicer, to avoid
disqualification of any portion of any REMIC formed under the Series Supplement as a REMIC.
The purchase price paid by the Master Servicer shall also include any amounts owed by
[_______________] pursuant to the last paragraph of Section 4 of the Assignment Agreement in
respect of any liability, penalty or expense that resulted from a breach of the Compliance
With Laws Representation, that remain unpaid on the date of such purchase.

     The right of the Master Servicer to purchase all the assets of the Trust Fund pursuant to
clause (ii) above is conditioned upon the Pool Stated Principal Balance as of the Final
Distribution Date, prior to giving effect to distributions to be made on such Distribution Date,
being less than ten percent of the Cut-off Date Principal Balance of the Mortgage Loans.

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     If such right is exercised by the Master Servicer, the Master Servicer shall be deemed to have
been reimbursed for the full amount of any unreimbursed P&I Advances theretofore made by it with
respect to the Mortgage Loans. In addition, the Master Servicer shall provide to the Trustee the
certification required by Section 3.15 and the Trustee and the Custodian shall, promptly following
payment of the purchase price, release to the Master Servicer the Custodial Files pertaining to the
Mortgage Loans being purchased.

     In addition to the foregoing, on any Distribution Date on which the Pool Stated Principal
Balance, prior to giving effect to distributions to be made on such Distribution Date, is less than
ten percent of the Cut-off Date Principal Balance of the Mortgage Loans, the Master Servicer shall
have the right, at its option, to purchase the Certificates in whole, but not in part, at a price
equal to the outstanding Certificate Principal Balance of such Certificates plus the sum of Accrued
Certificate Interest thereon for the related Interest Accrual Period and any previously unpaid
Accrued Certificate Interest. If the Master Servicer exercises this right to purchase the
outstanding Certificates, the Master Servicer will promptly terminate the respective obligations
and responsibilities created hereby in respect of the Certificates pursuant to this Article IX.

     (b) The Master Servicer shall give the Trustee not less than 40 days’ prior notice of the
Distribution Date on which the Master Servicer anticipates that the final distribution will be made
to Certificateholders (whether as a result of the exercise by the Master Servicer of its right to
purchase the assets of the Trust Fund or otherwise) or on which the Master Servicer anticipates
that the Certificates will be purchased (as a result of the exercise by the Master Servicer to
purchase the outstanding Certificates). Notice of any termination specifying the anticipated Final
Distribution Date (which shall be a date that would otherwise be a Distribution Date) upon which
the Certificateholders may surrender their Certificates to the Trustee (if so required by the terms
hereof) for payment of the final distribution and cancellation or notice of any purchase of the
outstanding Certificates, specifying the Distribution Date upon which the Holders may surrender
their Certificates to the Trustee for payment, shall be given promptly by the Master Servicer (if
it is exercising its right to purchase the assets of the Trust Fund or to purchase the outstanding
Certificates), or by the Trustee (in any other case) by letter. Such notice shall be prepared by
the Master Servicer (if it is exercising its right to purchase the assets of the Trust Fund or to
purchase the outstanding Certificates), or by the Trustee (in any other case) and mailed by the
Trustee to the Certificateholders 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 anticipated Final Distribution Date upon which final payment of the
Certificates is anticipated to be made upon presentation and surrender of Certificates at
the office or agency of the Trustee therein designated where required pursuant to this
Agreement or, in the case of the purchase by the Master Servicer of the outstanding
Certificates, the Distribution Date on which such purchase is to be made,

     (ii) the amount of any such final payment, or in the case of the purchase of the
outstanding Certificates, the purchase price, in either case, if known, and

     (iii) that the Record Date otherwise applicable to such Distribution Date is not
applicable, and in the case of the Senior Certificates, or in the case of all of the

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Certificates in connection with the exercise by the Master Servicer of its right to
purchase the Certificates, that payment will be made only upon presentation and surrender of
the Certificates at the office or agency of the Trustee therein specified.

If the Master Servicer is obligated to give notice to Certificateholders as aforesaid, it shall
give such notice to the Certificate Registrar at the time such notice is given to
Certificateholders and, if the Master Servicer is exercising its rights to purchase the outstanding
Certificates, it shall give such notice to each Rating Agency at the time such notice is given to
Certificateholders. As a result of the exercise by the Master Servicer of its right to purchase the
assets of the Trust Fund, the Master Servicer shall deposit in the Certificate Account, before the
Final Distribution Date in immediately available funds an amount equal to the purchase price for
the assets of the Trust Fund, computed as provided above. As a result of the exercise by the
Master Servicer of its right to purchase the outstanding Certificates, the Master Servicer shall
deposit in an Eligible Account, established by the Master Servicer on behalf of the Trustee and
separate from the Certificate Account in the name of the Trustee in trust for the registered
holders of the Certificates, before the Distribution Date on which such purchase is to occur in
immediately available funds an amount equal to the purchase price for the Certificates, computed as
above provided, and provide notice of such deposit to the Trustee. The Trustee will withdraw from
such account the amount specified in subsection (c) below.

     (c) In the case of the Senior Certificates, upon presentation and surrender of the
Certificates by the Certificateholders thereof, and in the case of the Class M and Class B
Certificates, upon presentation and surrender of the Certificates by the Certificateholders thereof
in connection with the exercise by the Master Servicer of its right to purchase the Certificates,
and otherwise in accordance with Section 4.01(a), the Trustee shall distribute to the
Certificateholders (i) the amount otherwise distributable on such Distribution Date, if not in
connection with the Master Servicer’s election to repurchase the assets of the Trust Fund or the
outstanding Certificates, or (ii) if the Master Servicer elected to so repurchase the assets of the
Trust Fund or the outstanding Certificates, an amount determined as follows: (A) with respect to
each Certificate the outstanding Certificate Principal Balance thereof, plus Accrued Certificate
Interest for the related Interest Accrual Period thereon and any previously unpaid Accrued
Certificate Interest, subject to the priority set forth in Section 4.02(a), and (B) with respect to
the Class R Certificates, any excess of the amounts available for distribution (including the
repurchase price specified in clause (ii) of subsection (a) of this Section) over the total amount
distributed under the immediately preceding clause (A). Notwithstanding the reduction of the
Certificate Principal Balance of any Class of Subordinate Certificates to zero, such Class will be
outstanding hereunder until the termination of the respective obligations and responsibilities of
the Company, the Master Servicer and the Trustee hereunder in accordance with Article IX.

     (d) If any Certificateholders shall not surrender their Certificates for final payment and
cancellation on or before the Final Distribution Date (if so required by the terms hereof), the
Master Servicer (if it exercised its right to purchase the assets of the Trust Fund), or the
Trustee (in any other case) shall give a second written notice to the remaining Certificateholders
to surrender their Certificates for cancellation and receive the final distribution with respect
thereto. If within six months after the second notice any Certificate shall not have been
surrendered for cancellation, the Trustee shall take appropriate steps as directed by the Master
Servicer to contact the remaining Certificateholders concerning surrender of their Certificates.
The costs and

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expenses of maintaining the Certificate Account and of contacting Certificateholders shall be
paid out of the assets which remain in the Certificate Account. If within nine months after the
second notice any Certificates shall not have been surrendered for cancellation, the Trustee shall
pay to the Master Servicer all amounts distributable to the holders thereof and the Master Servicer
shall thereafter hold such amounts until distributed to such Holders. No interest shall accrue or
be payable to any Certificateholder on any amount held in the Certificate Account or by the Master
Servicer as a result of such Certificateholder’s failure to surrender its Certificate(s) for final
payment thereof in accordance with this Section 9.01.

     (e) If any Certificateholders do not surrender their Certificates on or before the
Distribution Date on which a purchase of the outstanding Certificates is to be made, the Master
Servicer shall give a second written notice to such Certificateholders to surrender their
Certificates for payment of the purchase price therefor. If within six months after the second
notice any Certificate shall not have been surrendered for cancellation, the Trustee shall take
appropriate steps as directed by the Master Servicer to contact the Holders of such Certificates
concerning surrender of their Certificates. The costs and expenses of maintaining the Certificate
Account and of contacting Certificateholders shall be paid out of the assets which remain in the
Certificate Account. If within nine months after the second notice any Certificates shall not have
been surrendered for cancellation in accordance with this Section 9.01, the Trustee shall pay to
the Master Servicer all amounts distributable to the Holders thereof and the Master Servicer shall
thereafter hold such amounts until distributed to such Holders. No interest shall accrue or be
payable to any Certificateholder on any amount held in the Certificate Account or by the Master
Servicer as a result of such Certificateholder’s failure to surrender its Certificate(s) for
payment in accordance with this Section 9.01. Any Certificate that is not surrendered on the
Distribution Date on which a purchase pursuant to this Section 9.01 occurs as provided above will
be deemed to have been purchased and the Holder as of such date will have no rights with respect
thereto except to receive the purchase price therefor minus any costs and expenses associated with
such Certificate Account and notices allocated thereto. Any Certificates so purchased or deemed to
have been purchased on such Distribution Date shall remain outstanding hereunder until the Master
Servicer has terminated the respective obligations and responsibilities created hereby in respect
of the Certificates pursuant to this Article IX. The Master Servicer shall be for all purposes the
Holder thereof as of such date.

     Section 9.02. Additional Termination Requirements.

     (a) Each of REMIC I and REMIC II that comprises the Trust Fund shall be terminated in
accordance with the following additional requirements, unless the Trustee and the Master Servicer
have received an Opinion of Counsel (which Opinion of Counsel shall not be an expense of the
Trustee) to the effect that the failure of each such REMIC to comply with the requirements of this
Section 9.02 will not (i) result in the imposition on the Trust Fund of taxes on “prohibited
transactions,” as described in Section 860F of the Code, or (ii) cause any such REMIC to fail to
qualify as a REMIC at any time that any Certificate is outstanding:

     (i) The Master Servicer shall establish a 90-day liquidation period for each such REMIC
and specify the first day of such period in a statement attached to the Trust Fund’s final
Tax Return pursuant to Treasury regulations Section 1.860F-1. The Master

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Servicer also shall satisfy all of the requirements of a qualified liquidation for a
REMIC under Section 860F of the Code and regulations thereunder;

     (ii) The Master Servicer shall notify the Trustee at the commencement of such 90-day
liquidation period and, at or prior to the time of making of the final payment on the
Certificates, the Trustee shall sell or otherwise dispose of all of the remaining assets of
the Trust Fund in accordance with the terms hereof; and

     (iii) If the Master Servicer or the Company is exercising its right to purchase the
assets of the Trust Fund, the Master Servicer shall, during the 90-day liquidation period
and at or prior to the Final Distribution Date, purchase all of the assets of the Trust Fund
for cash.

     (b) Each Holder of a Certificate and the Trustee hereby irrevocably approves and appoints the
Master Servicer as its attorney-in-fact to adopt a plan of complete liquidation for each REMIC at
the expense of the Trust Fund in accordance with the terms and conditions of this Agreement.

     Section 9.03. Termination of Multiple REMICs.

     If the REMIC Administrator makes two or more separate REMIC elections, the applicable REMIC
shall be terminated on the earlier of the Final Distribution Date and the date on which it is
deemed to receive the last deemed distributions on the related Uncertificated REMIC Regular
Interests and the last distribution due on the Certificates is made.

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ARTICLE X

REMIC PROVISIONS

     Section 10.01. REMIC Administration.

     (a) The REMIC Administrator shall make an election to treat the Trust Fund as one or more
REMICs under the Code and, if necessary, under applicable state law. The assets of each such REMIC
will be set forth in the Series Supplement. Such election will be made on Form 1066 or other
appropriate federal tax or information return (including Form 8811) or any appropriate state return
for the taxable year ending on the last day of the calendar year in which the Certificates are
issued. For the purposes of each REMIC election in respect of the Trust Fund, Certificates and
interests to be designated as the “regular interests” and the sole class of “residual interests” in
the REMIC will be set forth in Section 10.03 of the Series Supplement. The REMIC Administrator and
the Trustee shall not permit the creation of any “interests” (within the meaning of Section 860G of
the Code) in any REMIC elected in respect of the Trust Fund other than the “regular interests” and
“residual interests” so designated.

     (b) The Closing Date is hereby designated as the “startup day” of the Trust Fund within the
meaning of Section 860G(a)(9) of the Code.

     (c) The REMIC Administrator shall hold a Class R Certificate representing a 0.01% Percentage
Interest each Class of the Class R Certificates and shall be designated as “the tax matters person”
with respect to each REMIC in the manner provided under Treasury regulations section 1.860F-4(d)
and Treasury regulations section 301.6231(a)(7)-1. The REMIC Administrator, as tax matters person,
shall (i) act on behalf of each REMIC in relation to any tax matter or controversy involving the
Trust Fund and (ii) represent the Trust Fund in any administrative or judicial proceeding relating
to an examination or audit by any governmental taxing authority with respect thereto. The legal
expenses, including without limitation attorneys’ or accountants’ fees, and costs of any such
proceeding and any liability resulting therefrom shall be expenses of the Trust Fund and the REMIC
Administrator shall be entitled to reimbursement therefor out of amounts attributable to the
Mortgage Loans on deposit in the Custodial Account as provided by Section 3.10 unless such legal
expenses and costs are incurred by reason of the REMIC Administrator’s willful misfeasance, bad
faith or gross negligence. If the REMIC Administrator is no longer the Master Servicer hereunder,
at its option the REMIC Administrator may continue its duties as REMIC Administrator and shall be
paid reasonable compensation not to exceed $3,000 per year by any successor Master Servicer
hereunder for so acting as the REMIC Administrator.

     (d) The REMIC Administrator shall prepare or cause to be prepared all of the Tax Returns that
it determines are required with respect to each REMIC created hereunder and deliver such Tax
Returns in a timely manner to the Trustee and the Trustee shall sign and file such Tax Returns in a
timely manner. The expenses of preparing such returns shall be borne by the REMIC Administrator
without any right of reimbursement therefor. The REMIC Administrator agrees to indemnify and hold
harmless the Trustee with respect to any tax or liability arising from the Trustee’s signing of Tax
Returns that contain errors or omissions. The Trustee and Master Servicer shall promptly provide
the REMIC Administrator with such

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information as the REMIC Administrator may from time to time request for the purpose of
enabling the REMIC Administrator to prepare Tax Returns.

     (e) The REMIC Administrator shall provide (i) to any Transferor of a Class R Certificate such
information as is necessary for the application of any tax relating to the transfer of a Class R
Certificate to any Person who is not a Permitted Transferee, (ii) to the Trustee, and the Trustee
shall forward to the Certificateholders, such information or reports as are required by the Code or
the REMIC Provisions including reports relating to interest, original issue discount and market
discount or premium (using the Prepayment Assumption) and (iii) to the Internal Revenue Service the
name, title, address and telephone number of the person who will serve as the representative of
each REMIC.

     (f) The Master Servicer and the REMIC Administrator shall take such actions and shall cause
each REMIC created hereunder to take such actions as are reasonably within the Master Servicer’s or
the REMIC Administrator’s control and the scope of its duties more specifically set forth herein as
shall be necessary or desirable to maintain the status of each REMIC as a REMIC under the REMIC
Provisions (and the Trustee shall assist the Master Servicer and the REMIC Administrator, to the
extent reasonably requested by the Master Servicer and the REMIC Administrator to do so). The
Master Servicer and the REMIC Administrator shall not knowingly or intentionally take any action,
cause the Trust Fund to take any action or fail to take (or fail to cause to be taken) any action
reasonably within their respective control that, under the REMIC Provisions, if taken or not taken,
as the case may be, could (i) endanger the status of any portion of any REMIC formed under the
Series Supplement as a REMIC or (ii) result in the imposition of a tax upon any such REMIC
(including but not limited to the tax on prohibited transactions as defined in Section 860F(a)(2)
of the Code and the tax on contributions to a REMIC set forth in Section 860G(d) of the Code)
(either such event, in the absence of an Opinion of Counsel or the indemnification referred to in
this sentence, an “Adverse REMIC Event”) unless the Master Servicer or the REMIC Administrator, as
applicable, has received an Opinion of Counsel (at the expense of the party seeking to take such
action or, if such party fails to pay such expense, and the Master Servicer or the REMIC
Administrator, as applicable, determines that taking such action is in the best interest of the
Trust Fund and the Certificateholders, at the expense of the Trust Fund, but in no event at the
expense of the Master Servicer, the REMIC Administrator or the Trustee) to the effect that the
contemplated action will not, with respect to each REMIC created hereunder, endanger such status
or, unless the Master Servicer, the REMIC Administrator or both, as applicable, determine in its or
their sole discretion to indemnify the Trust Fund against the imposition of such a tax, result in
the imposition of such a tax. Wherever in this Agreement a contemplated action may not be taken
because the timing of such action might result in the imposition of a tax on the Trust Fund, or may
only be taken pursuant to an Opinion of Counsel that such action would not impose a tax on the
Trust Fund, such action may nonetheless be taken provided that the indemnity given in the preceding
sentence with respect to any taxes that might be imposed on the Trust Fund has been given and that
all other preconditions to the taking of such action have been satisfied. The Trustee shall not
take or fail to take any action (whether or not authorized hereunder) as to which the Master
Servicer or the REMIC Administrator, as applicable, has advised it in writing that it has received
an Opinion of Counsel to the effect that an Adverse REMIC Event could occur with respect to such
action. In addition, prior to taking any action with respect to any REMIC created hereunder or any
related assets thereof, or causing any such REMIC to take any action, which is

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not expressly permitted under the terms of this Agreement, the Trustee will consult with the
Master Servicer or the REMIC Administrator, as applicable, or its designee, in writing, with
respect to whether such action could cause an Adverse REMIC Event to occur with respect to any such
REMIC, and the Trustee shall not take any such action or cause any such REMIC to take any such
action as to which the Master Servicer or the REMIC Administrator, as applicable, has advised it in
writing that an Adverse REMIC Event could occur. The Master Servicer or the REMIC Administrator,
as applicable, may consult with counsel to make such written advice, and the cost of same shall be
borne by the party seeking to take the action not expressly permitted by this Agreement, but in no
event at the expense of the Master Servicer or the REMIC Administrator. At all times as may be
required by the Code, the Master Servicer will to the extent within its control and the scope of
its duties more specifically set forth herein, maintain substantially all of the assets of each
REMIC created hereunder as “qualified mortgages” as defined in Section 860G(a)(3) of the Code and
“permitted investments” as defined in Section 860G(a)(5) of the Code.

     (g) In the event that any tax is imposed on “prohibited transactions” of any REMIC created
hereunder as defined in Section 860F(a)(2) of the Code, on “net income from foreclosure property”
of any such REMIC as defined in Section 860G(c) of the Code, on any contributions to any such REMIC
after the Startup Day therefor pursuant to Section 860G(d) of the Code, or any other tax is imposed
by the Code or any applicable provisions of state or local tax laws, such tax shall be charged (i)
to the Master Servicer, if such tax arises out of or results from a breach by the Master Servicer
of any of its obligations under this Agreement or the Master Servicer has in its sole discretion
determined to indemnify the Trust Fund against such tax, (ii) to the Trustee, if such tax arises
out of or results from a breach by the Trustee of any of its obligations under this Article X, or
(iii) otherwise against amounts on deposit in the Custodial Account as provided by Section 3.10 and
on the Distribution Date(s) following such reimbursement the aggregate of such taxes shall be
allocated in reduction of the Accrued Certificate Interest on each Class entitled thereto in the
same manner as if such taxes constituted a Prepayment Interest Shortfall.

     (h) The Trustee and the Master Servicer shall, for federal income tax purposes, maintain books
and records with respect to each REMIC created hereunder on a calendar year and on an accrual basis
or as otherwise may be required by the REMIC Provisions.

     (i) Following the Startup Day, neither the Master Servicer nor the Trustee shall accept any
contributions of assets to any REMIC created hereunder unless (subject to Section 10.01(f)) the
Master Servicer and the Trustee shall have received an Opinion of Counsel (at the expense of the
party seeking to make such contribution) to the effect that the inclusion of such assets in such
REMIC will not cause the REMIC to fail to qualify as a REMIC at any time that any Certificates are
outstanding or subject the REMIC to any tax under the REMIC Provisions or other applicable
provisions of federal, state and local law or ordinances.

     (j) Neither the Master Servicer nor the Trustee shall (subject to Section 10.01(f)) enter into
any arrangement by which any REMIC created hereunder will receive a fee or other compensation for
services nor permit any such REMIC to receive any income from assets other than “qualified
mortgages” as defined in Section 860G(a)(3) of the Code or “permitted investments” as defined in
Section 860G(a)(5) of the Code.

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     (k) Solely for the purposes of Section 1.860G-1(a)(4)(iii) of the Treasury Regulations, the
“latest possible maturity date” by which the Certificate Principal Balance of each Class of
Certificates (other than the Interest Only Certificates) representing a regular interest in the
applicable REMIC and the Uncertificated Principal Balance of each Uncertificated REMIC Regular
Interest (other than each Uncertificated REMIC Regular Interest represented by a Class A-V
Certificate, if any) and the rights to the Interest Only Certificates and Uncertificated REMIC
Regular Interest represented by a Class A-V Certificate would be reduced to zero is the Maturity
Date for each such Certificate and Interest.

     (l) Within 30 days after the Closing Date, the REMIC Administrator shall prepare and file with
the Internal Revenue Service Form 8811, “Information Return for Real Estate Mortgage Investment
Conduits (REMIC) and Issuers of Collateralized Debt Obligations” for each REMIC created hereunder.

     (m) Neither the Trustee nor the Master Servicer shall sell, dispose of or substitute for any
of the Mortgage Loans (except in connection with (i) the default, imminent default or foreclosure
of a Mortgage Loan, including but not limited to, the acquisition or sale of a Mortgaged Property
acquired by deed in lieu of foreclosure, (ii) the bankruptcy of any REMIC created hereunder, (iii)
the termination of any such REMIC pursuant to Article IX of this Agreement or (iv) a purchase of
Mortgage Loans pursuant to Article II or III of this Agreement) nor acquire any assets for any such
REMIC, nor sell or dispose of any investments in the Custodial Account or the Certificate Account
for gain nor accept any contributions to any such REMIC after the Closing Date unless it has
received an Opinion of Counsel that such sale, disposition, substitution or acquisition will not
(a) affect adversely the status of such REMIC as a REMIC or (b) unless the Master Servicer has
determined in its sole discretion to indemnify the Trust Fund against such tax, cause such REMIC to
be subject to a tax on “prohibited transactions” or “contributions” pursuant to the REMIC
Provisions.

     Section 10.02. Master Servicer, REMIC Administrator and Trustee Indemnification.

     (a) The Trustee agrees to indemnify the Trust Fund, the Company, the REMIC Administrator and
the Master Servicer for any taxes and costs including, without limitation, any reasonable attorneys
fees imposed on or incurred by the Trust Fund, the Company or the Master Servicer, as a result of a
breach of the Trustee’s covenants set forth in Article VIII or this Article X.

     (b) The REMIC Administrator agrees to indemnify the Trust Fund, the Company, the Master
Servicer and the Trustee for any taxes and costs (including, without limitation, any reasonable
attorneys’ fees) imposed on or incurred by the Trust Fund, the Company, the Master Servicer or the
Trustee, as a result of a breach of the REMIC Administrator’s covenants set forth in this Article X
with respect to compliance with the REMIC Provisions, including without limitation, any penalties
arising from the Trustee’s execution of Tax Returns prepared by the REMIC Administrator that
contain errors or omissions; provided, however, that such liability will not be imposed to the
extent such breach is a result of an error or omission in information provided to the REMIC
Administrator by the Master Servicer in which case Section 10.02(c) will apply.

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     (c) The Master Servicer agrees to indemnify the Trust Fund, the Company, the REMIC
Administrator and the Trustee for any taxes and costs (including, without limitation, any
reasonable attorneys’ fees) imposed on or incurred by the Trust Fund, the Company, the REMIC
Administrator or the Trustee, as a result of a breach of the Master Servicer’s covenants set forth
in this Article X or in Article III with respect to compliance with the REMIC Provisions, including
without limitation, any penalties arising from the Trustee’s execution of Tax Returns prepared by
the Master Servicer that contain errors or omissions.

Section 10.03. Designation of REMIC(s).

As provided in Section 10.03 of the Series Supplement.

Section 10.04. Distributions on the Uncertificated REMIC I and REMIC II Regular
Interests.

As provided in Section 10.04 of the Series Supplement.

Section 10.05.
Compliance with Withholding Requirements.

As provided in Section 10.05 of the Series Supplement.

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ARTICLE XI

MISCELLANEOUS PROVISIONS

     Section 11.01. Amendment.

     (a) This Agreement or any Custodial Agreement may be amended from time to time by the Company,
the Master Servicer and the Trustee, without the consent of any of the Certificateholders:

     (i) to cure any ambiguity,

     (ii) to correct or supplement any provisions herein or therein, which may be
inconsistent with any other provisions herein or therein or to correct any error,

     (iii) to modify, eliminate or add to any of its provisions to such extent as shall be
necessary or desirable to maintain the qualification of the Trust Fund as a REMIC at all
times that any Certificate is outstanding or to avoid or minimize the risk of the imposition
of any tax on the Trust Fund pursuant to the Code that would be a claim against the Trust
Fund, provided that the Trustee has received an Opinion of Counsel to the effect that (A)
such action is necessary or desirable to maintain such qualification or to avoid or minimize
the risk of the imposition of any such tax and (B) such action will not adversely affect in
any material respect the interests of any Certificateholder,

     (iv) to change the timing and/or nature of deposits into the Custodial Account or the
Certificate Account or to change the name in which the Custodial Account is maintained,
provided that (A) the Certificate Account Deposit Date shall in no event be later than the
related Distribution Date, (B) such change shall not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Certificateholder and (C) such
change shall not result in a reduction of the rating assigned to any Class of Certificates
below the lower of the then-current rating or the rating assigned to such Certificates as of
the Closing Date (in the case of the Insured Certificates (as defined in the Series
Supplement), such determination shall be made without giving effect to the Certificate
Policy (as defined in the Series Supplement)), as evidenced by a letter from each Rating
Agency to such effect,

     (v) to modify, eliminate or add to the provisions of Section 5.02(f) or any other
provision hereof restricting transfer of the Class R Certificates, by virtue of their being
the “residual interests” in a REMIC, provided that (A) such change shall not result in
reduction of the rating assigned to any such Class of Certificates below the lower of the
then-current rating or the rating assigned to such Certificates as of the Closing Date (in
the case of the Insured Certificates (as defined in the Series Supplement), such
determination shall be made without giving effect to the Certificate Policy (as defined in
the Series Supplement)), as evidenced by a letter from each Rating Agency to such effect,
and (B) such change shall not (subject to Section 10.01(f)), as evidenced by an Opinion of
Counsel (at the expense of the party seeking so to modify, eliminate or add such
provisions), cause any REMIC created hereunder or any of the Certificateholders (other

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than the transferor) to be subject to a federal tax caused by a transfer to a Person
that is not a Permitted Transferee,

     (vi) to make any other provisions with respect to matters or questions arising under
this Agreement or such Custodial Agreement which shall not be materially inconsistent with
the provisions of this Agreement, provided that such action shall not, as evidenced by an
Opinion of Counsel, adversely affect in any material respect the interests of any
Certificateholder or

     (vii) to amend any provision herein or therein that is not material to any of the
Certificateholders.

     (b) This Agreement or any Custodial Agreement may also be amended from time to time by the
Company, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates with a Certificate Principal Balance greater than zero affected thereby for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Agreement or such Custodial Agreement or of modifying in any manner the rights of the
Holders of Certificates of such Class; provided, however, that no such amendment
shall:

     (i) reduce in any manner the amount of, or delay the timing of, payments which are
required to be distributed on any Certificate without the consent of the Holder of such
Certificate,

     (ii) reduce the aforesaid percentage of Certificates of any Class the Holders of which
are required to consent to any such amendment, in any such case without the consent of the
Holders of all Certificates of such Class then outstanding.

     (c) Notwithstanding any contrary provision of this Agreement, the Trustee shall not consent to
any amendment to this Agreement unless it shall have first received an Opinion of Counsel (subject
to Section 10.01(f) and at the expense of the party seeking such amendment) to the effect that such
amendment or the exercise of any power granted to the Master Servicer, the Company or the Trustee
in accordance with such amendment is permitted hereunder and will not result in the imposition of a
federal tax on the Trust Fund or cause any REMIC created under the Series Supplement to fail to
qualify as a REMIC at any time that any Certificate is outstanding.

     (d) Promptly after the execution of any such amendment the Trustee shall furnish written
notification of the substance of such amendment to the Custodian and each Certificateholder. It
shall not be necessary for the consent of Certificateholders under this Section 11.01 to approve
the particular form of any proposed amendment, but it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

     (e) The Company shall have the option, in its sole discretion, to obtain and deliver to the
Trustee any corporate guaranty, payment obligation, irrevocable letter of credit, surety bond,
insurance policy or similar instrument or a reserve fund, or any combination of the foregoing, for

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the purpose of protecting the Holders of the Class B Certificates against any or all Realized
Losses or other shortfalls. Any such instrument or fund shall be held by the Trustee for the
benefit of the Class B Certificateholders, but shall not be and shall not be deemed to be under any
circumstances included in the Trust Fund. To the extent that any such instrument or fund
constitutes a reserve fund for federal income tax purposes, (i) any reserve fund so established
shall be an outside reserve fund and not an asset of the Trust Fund, (ii) any such reserve fund
shall be owned by the Company, and (iii) amounts transferred by the Trust Fund to any such reserve
fund shall be treated as amounts distributed by the Trust Fund to the Company or any successor, all
within the meaning of Treasury Regulations Section 1.860G-2(h) as it reads as of the Cut-off Date.
In connection with the provision of any such instrument or fund, this Agreement and any provision
hereof may be modified, added to, deleted or otherwise amended in any manner that is related or
incidental to such instrument or fund or the establishment or administration thereof, such
amendment to be made by written instrument executed or consented to by the Company but without the
consent of any Certificateholder and without the consent of the Master Servicer or the Trustee
being required unless any such amendment would impose any additional obligation on, or otherwise
adversely affect the interests of the Senior Certificateholders, the Class M Certificateholders,
the Master Servicer or the Trustee, as applicable; provided that the Company obtains (subject to
Section 10.01(f)) an Opinion of Counsel (which need not be an opinion of Independent counsel) to
the effect that any such amendment will not cause (a) any federal tax to be imposed on the Trust
Fund, including without limitation, any federal tax imposed on “prohibited transactions” under
Section 860F(a)(1) of the Code or on “contributions after the startup date” under Section
860G(d)(1) of the Code and (b) any REMIC created hereunder to fail to qualify as a REMIC at any
time that any Certificate is outstanding. In the event that the Company elects to provide such
coverage in the form of a limited guaranty provided by [________], the Company may elect that the
text of such amendment to this Agreement shall be substantially in the form attached hereto as
Exhibit K (in which case [_______________]’s Subordinate Certificate Loss Obligation as described
in such exhibit shall be established by [_______________]’s consent to such amendment) and that the
limited guaranty shall be executed in the form attached hereto as Exhibit L, with such changes as
the Company shall deem to be appropriate; it being understood that the Trustee has reviewed and
approved the content of such forms and that the Trustee’s consent or approval to the use thereof is
not required.

     Section 11.02. Recordation of Agreement; Counterparts.

     (a) To the extent permitted by applicable law, this Agreement is subject to recordation in all
appropriate public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are situated, and in
any other appropriate public recording office or elsewhere, such recordation to be effected by the
Master Servicer and at its expense on direction by the Trustee (pursuant to the request of Holders
of Certificates entitled to at least 25% of the Voting Rights), but only upon direction accompanied
by an Opinion of Counsel to the effect that such recordation materially and beneficially affects
the interests of the Certificateholders.

     (b) 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

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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 11.03. Limitation on Rights of Certificateholders.

     (a) The death or incapacity of any Certificateholder shall not operate to terminate this
Agreement or the Trust Fund, nor entitle such Certificateholder’s legal representatives or heirs to
claim an accounting or to take any action or proceeding in any court for a partition or winding up
of the Trust Fund, nor otherwise affect the rights, obligations and liabilities of any of the
parties hereto.

     (b) No Certificateholder shall have any right to vote (except as expressly provided herein) or
in any manner otherwise control the operation and management of the Trust Fund, or the obligations
of the parties hereto, nor shall anything herein set forth, or contained in the terms of the
Certificates, be construed so as to constitute the Certificateholders from time to time as partners
or members of an association; nor shall any Certificateholder be under any liability to any third
person by reason of any action taken by the parties to this Agreement pursuant to any provision
hereof.

     (c) No Certificateholder shall have any right by virtue of any provision of this Agreement to
institute any suit, action or proceeding in equity or at law upon or under or with respect to this
Agreement, unless such Holder previously shall have given to the Trustee a written notice of
default and of the continuance thereof, as hereinbefore provided, and unless also the Holders of
Certificates of any Class evidencing in the aggregate not less than 25% of the related Percentage
Interests of such Class, shall have made written request upon the Trustee to institute such action,
suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred
therein or thereby, and the Trustee, for 60 days after its receipt of such notice, request and
offer of indemnity, shall have neglected or refused to institute any such action, suit or
proceeding it being understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that no one or more Holders
of Certificates of any Class shall have any right in any manner whatever by virtue of any provision
of this Agreement to affect, disturb or prejudice the rights of the Holders of any other of such
Certificates of such Class or any other Class, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to enforce any right under this Agreement, except in the
manner herein provided and for the common benefit of Certificateholders of such Class or all
Classes, as the case may be. For the protection and enforcement of the provisions of this Section
11.03, each and every Certificateholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

     Section 11.04. Governing Law.

     This agreement and the Certificates shall be governed by and construed in accordance with the
laws of the State of New York, without regard to the conflict of law principles thereof, 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.

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     Section 11.05. Notices.

     As provided in Section 11.05 of the Series Supplement.

     Section 11.06.
Required Notices to Rating Agency and Subservicer.

     The Company, the Master Servicer or the Trustee, as applicable, (i) shall notify each Rating
Agency at such time as it is otherwise required pursuant to this Agreement to give notice of the
occurrence of, any of the events described in clause (a), (b), (c), (d), (g), (h), (i) or (j)
below, (ii) shall notify the Subservicer at such time as it is otherwise required pursuant to this
Agreement to give notice of the occurrence of, any of the events described in clause (a), (b),
(c)(1), (g)(1), or (i) below, or (iii) provide a copy to each Rating Agency at such time as
otherwise required to be delivered pursuant to this Agreement of any of the statements described in
clauses (e) and (f) below:

     (a) a material change or amendment to this Agreement,

     (b) the occurrence of an Event of Default,

     (c) (1) the termination or appointment of a successor Master Servicer or (2) the
termination or appointment of a successor Trustee or a change in the majority ownership of
the Trustee,

     (d) the filing of any claim under the Master Servicer’s blanket fidelity bond and the
errors and omissions insurance policy required by Section 3.12 or the cancellation or
modification of coverage under any such instrument,

     (e) the statement required to be delivered to the Holders of each Class of Certificates
pursuant to Section 4.03,

     (f) the statements required to be delivered pursuant to Sections 3.18 and 3.19,

     (g) (1) a change in the location of the Custodial Account or (2) a change in the
location of the Certificate Account,

     (h) the occurrence of any monthly cash flow shortfall to the Holders of any Class of
Certificates resulting from the failure by the Master Servicer to make a P&I Advance
pursuant to Section 4.04,

     (i) the occurrence of the Final Distribution Date, and

     (j) the repurchase of or substitution for any Mortgage Loan,

provided, however, that with respect to notice of the occurrence of the events
described in clauses (d), (g) or (h) above, the Master Servicer shall provide prompt written notice
to each Rating Agency and the Subservicer, if applicable, of any such event known to the Master
Servicer.

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     All notices to be delivered to the Rating Agencies pursuant to this Section 11.06 or otherwise
required by this Agreement shall be in accordance with Section 11.11 hereof.

Section 11.07. Severability of Provisions.

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

Section 11.08. Supplemental Provisions for Resecuritization.

     This Agreement may be supplemented by means of the addition of a separate Article hereto (a
“Supplemental Article”) for the purpose of resecuritizing any of the Certificates issued hereunder,
under the following circumstances. With respect to any Class or Classes of Certificates issued
hereunder, or any portion of any such Class, as to which the Company or any of its Affiliates (or
any designee thereof) is the registered Holder (the “Resecuritized Certificates”), the Company may
deposit such Resecuritized Certificates into a new REMIC, grantor trust or custodial arrangement (a
“Restructuring Vehicle”) to be held by the Trustee pursuant to a Supplemental Article. The
instrument adopting such Supplemental Article shall be executed by the Company, the Master Servicer
and the Trustee; provided, that neither the Master Servicer nor the Trustee shall withhold their
consent thereto if their respective interests would not be materially adversely affected thereby.
To the extent that the terms of the Supplemental Article do not in any way affect any provisions of
this Agreement as to any of the Certificates initially issued hereunder, the adoption of the
Supplemental Article shall not constitute an “amendment” of this Agreement.

     Each Supplemental Article shall set forth all necessary provisions relating to the holding of
the Resecuritized Certificates by the Trustee, the establishment of the Restructuring Vehicle, the
issuing of various classes of new certificates by the Restructuring Vehicle and the distributions
to be made thereon, and any other provisions necessary for the purposes thereof. In connection
with each Supplemental Article, the Company shall deliver to the Trustee an Opinion of Counsel to
the effect that (i) the Restructuring Vehicle will qualify as a REMIC, grantor trust or other
entity not subject to taxation for federal income tax purposes and (ii) the adoption of the
Supplemental Article will not endanger the status of the Trust Fund as a REMIC or (subject to
Section 10.01(f)) result in the imposition of a tax upon the Trust Fund (including but not limited
to the tax on prohibited transactions as defined in Section 860F(a)(2) of the Code and the tax on
contributions to a REMIC as set forth in Section 860G(d) of the Code).

     Section 11.09. Allocation of Voting Rights.

     As provided in Section 11.09 of the Series Supplement.

     Section 11.10.
No Petition.

     As provided in Section 11.10 of the Series Supplement.

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     Section 11.11. Exchange Act Rule 17g-5 Procedures.

     The Trustee shall not communicate with (including verbal communication) or provide information
to any Rating Agency regarding anything related to this Agreement without prior consultation with
the [_________________] to ensure compliance with Rule 17g-5 under the Exchange Act (“Rule 17g-5”).
With respect to any document, notice or other information required pursuant to this Agreement to
be sent by the Trustee to any Rating Agency, the Trustee agrees to provide any such document,
notice or other information to [_________________] for posting on its Rule 17g-5 compliant website
related to this transaction (the “Rule 17g-5 Website”). [_________________] shall promptly confirm
to the Trustee any such document, notice or other information has been posted to the Rule 17g-5
Website as a condition to the Trustee providing such document, notice or other information to any
Rating Agency. Notwithstanding anything to the contrary in this Agreement, the Trustee shall have
no obligation to deliver such document, notice or other information to any Rating Agency until such
applicable party has received written confirmation from [_________________] of the posting of such
document, notice or other information by [_________________] to the Rule 17g-5 Website, and the
Trustee shall not be liable for any failure to deliver such document, notice or other information
to any Rating Agency prior to any applicable deadline in this Agreement where such failure is
caused by any failure or inability of [_________________] timely to provide such written
confirmation. The Trustee, pursuant to procedures mutually agreed upon with [_________________],
shall require that any person attempting to access the Trustee website related to this transaction
represent that they are not an employee or representative of a rating agency, provided that the
Trustee shall bear no expense or liability relating to any representation made by any person
attempting to access the Trustee website.

     Section 11.12. Tax Treatment.

     Each party to this Agreement and each holder of a Certificate by the acceptance of its
ownership in such Certificate, hereby agrees to treat the payment made and received hereunder and
any payments received with respect to any Certificate for federal income tax purposes consistently
with the REMIC structure as set forth herein or incorporated herein and with the deemed payments
made with respect thereto as set forth herein.

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ARTICLE XII

COMPLIANCE WITH REGULATION AB

     Section 12.01. Intent of the Parties; Reasonableness.

          The Company, the Trustee and the Master Servicer acknowledge and agree that the purpose of
this Article XII is to facilitate compliance by the Company with the provisions of Regulation AB
and related rules and regulations of the Commission. The Company shall not exercise its right to
request delivery of information or other performance under these provisions other than in good
faith, or for purposes other than compliance with the Securities Act, the Exchange Act and the
rules and regulations of the Commission under the Securities Act and the Exchange Act. Each of the
Master Servicer and the Trustee acknowledges that interpretations of the requirements of Regulation
AB may change over time, whether due to interpretive guidance provided by the Commission or its
staff, consensus among participants in the mortgage-backed securities markets, advice of counsel,
or otherwise, and agrees to comply with reasonable requests made by the Company in good faith for
delivery of information under these provisions on the basis of evolving interpretations of
Regulation AB. Each of the Master Servicer and the Trustee shall cooperate reasonably with the
Company to deliver to the Company (including any of its assignees or designees), any and all
disclosure, statements, reports, certifications, records and any other information necessary in the
reasonable, good faith determination of the Company to permit the Company to comply with the
provisions of Regulation AB.

     Section 12.02. Additional Representations and Warranties of the Trustee.

          (a) The Trustee shall be deemed to represent and warrant to the Company as of the Closing Date
and on each date on which information is provided to the Company under Sections 12.01, 12.02(b) or
12.03 that, except as disclosed in writing to the Company prior to such date: (i) it is not aware
and has not received notice that any default, early amortization or other performance triggering
event has occurred as to any other Securitization Transaction due to any default of the Trustee;
(ii) there are no aspects of its financial condition that could have a material adverse effect on
the performance by it of its trustee obligations under this Agreement or any other Securitization
Transaction as to which it is the trustee; (iii) there are no material legal or governmental
proceedings pending (or known to be contemplated) against it that would be material to
Certificateholders; (iv) there are no relationships or transactions (as described in Item 1119(b)
of Regulation AB) relating to the Trustee with respect to the Company or any sponsor, issuing
entity, servicer, trustee, originator, significant obligor, enhancement or support provider or
other material transaction party (as each of such terms are used in Regulation AB) relating to the
Securitization Transaction contemplated by the Agreement, as identified by the Company to the
Trustee in writing as of the Closing Date (each, a “Transaction Party”) that are outside the
ordinary course of business or on terms other than would be obtained in an arm’s length transaction
with an unrelated third party, apart from the Securitization Transaction, and that are material to
the investors’ understanding of the Certificates; and (v) the Trustee is not an affiliate (as
contemplated by Item 1119(a) of Regulation AB) of any Transaction Party. The Company shall notify
the Trustee of any change in the identity of a Transaction Party after the Closing Date.

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          (b) If so requested by the Company on any date following the Closing Date, the Trustee shall,
within five Business Days following such request, confirm in writing the accuracy of the
representations and warranties set forth in paragraph (a) of this Section or, if any such
representation and warranty is not accurate as of the date of such confirmation, provide the
pertinent facts, in writing, to the Company. Any such request from the Company shall not be given
more than once each calendar quarter, unless the Company shall have a reasonable basis for
questioning the accuracy of any of the representations and warranties.

     Section 12.03. Information to Be Provided by the Trustee.

          For so long as the Certificates are outstanding, for the purpose of satisfying the Company’s
reporting obligation under the Exchange Act with respect to any class of Certificates, the Trustee
shall provide to the Company a written description of (a) any litigation or governmental
proceedings pending against the Trustee as of the last day of each calendar month that would be
material to Certificateholders, and (b) any affiliations or relationships (as described in Item
1119 of Regulation AB) that develop following the Closing Date between the Trustee and any
Transaction Party of the type described in Section 12.02(a)(iv) or 12.02(a)(v) as of the last day
of each calendar year. Any descriptions required with respect to legal proceedings, as well as
updates to previously provided descriptions, under this Section 12.03 shall be given no later than
five Business Days prior to the Determination Date following the month in which the relevant event
occurs, and any notices and descriptions required with respect to affiliations, as well as updates
to previously provided descriptions, under this Section 12.03 shall be given no later than January
31 of the calendar year following the year in which the relevant event occurs. As of the related
Distribution Date with respect to each Report on Form 10-D with respect to the Certificates filed
by or on behalf of the Company, and as of March 15 preceding the date each Report on Form 10-K with
respect to the Certificates is filed, the Trustee shall be deemed to represent and warrant that any
information previously provided by the Trustee under this Article XII is materially correct and
does not have any material omissions unless the Trustee has provided an update to such information.
The Company will allow the Trustee to review any disclosure relating to material litigation
against the Trustee prior to filing such disclosure with the Commission to the extent the Company
changes the information provided by the Trustee.

Section 12.04. Report on Assessment of Compliance and Attestation.

          On or before March 5 of each calendar year, the Trustee shall:

     (a) deliver to the Company a report (in form and substance reasonably satisfactory to the
Company) regarding the Trustee’s assessment of compliance with the applicable Servicing Criteria
during the immediately preceding calendar year, as required under Rules 13a-18 and 15d-18 of the
Exchange Act and Item 1122 of Regulation AB. Such report shall be signed by an authorized officer
of the Trustee, and shall address each of the Servicing Criteria specified on Exhibit R hereto; and

     (b) deliver to the Company a report of a registered public accounting firm satisfying the
requirements of Rule 2-01 of Regulation S-X under the Securities Act and the Exchange Act that
attests to, and reports on, the assessment of compliance made by the Trustee and delivered

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pursuant to the preceding paragraph. Such attestation shall be in accordance with Rules
1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act.

     Section 12.05. Indemnification; Remedies.

     (a) The Trustee shall indemnify the Company, each affiliate of the Company, the Master
Servicer and each affiliate of the Master Servicer, and the respective present and former
directors, officers, employees and agents of each of the foregoing, and shall hold each of them
harmless from and against any losses, damages, penalties, fines, forfeitures, legal fees and
expenses and related costs, judgments, and any other costs, fees and expenses that any of them may
sustain arising out of or based upon:

               (i)(A) any untrue statement of a material fact contained or alleged to be contained in any
information, report, certification, accountants’ attestation or other material provided under this
Article XII by or on behalf of the Trustee (collectively, the “Trustee Information”), or (B) the
omission or alleged omission to state in the Trustee Information a material fact required to be
stated in the Trustee Information or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; or

               (ii) any failure by the Trustee to deliver any information, report, certification or other
material when and as required under this Article XII, other than a failure by the Trustee to
deliver an accountants’ attestation.

     (b) In the case of any failure of performance described in clause (ii) of Section 12.05(a), as
well as a failure to deliver an accountants’ attestation, the Trustee shall (i) promptly reimburse
the Company for all costs reasonably incurred by the Company in order to obtain the information,
report, certification, accountants’ attestation or other material not delivered by the Trustee as
required and (ii) cooperate with the Company to mitigate any damages that may result from such
failure.

     (c) The Company and the Master Servicer shall indemnify the Trustee, each affiliate of the
Trustee and the respective present and former directors, officers, employees and agents of the
Trustee, and shall hold each of them harmless from and against any losses, damages, penalties,
fines, forfeitures, legal fees and expenses and related costs, judgments, and any other costs, fees
and expenses that any of them may sustain arising out of or based upon (i) any untrue statement of
a material fact contained or alleged to be contained in any information provided under this
Agreement by or on behalf of the Company or Master Servicer for inclusion in any report filed with
Commission under the Exchange Act (collectively, the “[___] Information”), or (ii) the omission or
alleged omission to state in the [___] Information a material fact required to be stated in the
[___] Information or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, by way of clarification, that
clause (ii) of this paragraph shall be construed solely by reference to the [__] Information and
not to any other information communicated in connection with a sale or purchase of securities,
without regard to whether the [__] Information or any portion thereof is presented together with or
separately from such other information.

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     (d) Notwithstanding any provision in this Section 12.05 to the contrary, the parties agree
that none of the Trustee, the Company or the Master Servicer shall be liable to the other for any
consequential or punitive damages whatsoever, whether in contract, tort (including negligence and
strict liability), or any other legal or equitable principle; provided, however, that such
limitation shall not be applicable with respect to third party claims made against a party.

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EXHIBIT A

FORM OF CLASS A CERTIFICATE, [PRINCIPAL ONLY/CLASS A-P] CERTIFICATE 

AND [INTEREST ONLY/CLASS A-V] CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A
“REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS
860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE 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 FOLLOWING INFORMATION IS PROVIDED SOLELY FOR THE PURPOSES OF APPLYING THE U.S. FEDERAL
INCOME TAX ORIGINAL ISSUE DISCOUNT (“OID”) RULES TO THIS CERTIFICATE. THE ISSUE DATE OF THIS
CERTIFICATE IS ___________ __, ___. ASSUMING THAT THE MORTGAGE LOANS PREPAY AT [___]% OF THE
PREPAYMENT SPEED ASSUMPTION (AS DESCRIBED IN THE PROSPECTUS SUPPLEMENT), [AND ASSUMING A CONSTANT
PASS-THROUGH RATE EQUAL TO THE INITIAL PASS-THROUGH RATE,] THIS CERTIFICATE HAS BEEN ISSUED WITH NO
MORE THAN $[____] OF OID PER [$1,000] [$100,000] OF [INITIAL CERTIFICATE PRINCIPAL
BALANCE] [NOTIONAL AMOUNT], THE YIELD TO MATURITY IS [_____]% AND THE AMOUNT OF OID
ATTRIBUTABLE TO THE INITIAL ACCRUAL PERIOD IS NO MORE THAN $[_______] PER [$1,000]
[$100,000] OF [INITIAL CERTIFICATE PRINCIPAL BALANCE] [NOTIONAL AMOUNT], COMPUTED USING THE
APPROXIMATE METHOD. NO REPRESENTATION IS MADE THAT THE MORTGAGE LOANS WILL PREPAY AT A RATE BASED
ON THE PREPAYMENT SPEED ASSUMPTION OR AT ANY OTHER RATE OR AS TO THE CONSTANCY OF THE PASS-THROUGH
RATE.]

 

 

	 	 	 

	Certificate No.__

	 	[___%][Variable] Pass-Through Rate [based on a Notional Amount]
	Class A-_ Senior
	 	 
	Date of Pooling and Servicing

	 	[Percentage Interest:___%]
	Agreement and Cut-off Date:
	 	 
	___________ 1, ____

	 	Aggregate Initial [Certificate Principal
	 

	 	Balance] [[Interest Only/Class A-V] Notional
	First Distribution Date:

	 	Amount] [Subclass Notional Amount] of the
	_________ 25, ____

	 	Class A- ___Certificates:
	 
	 	 
	Master Servicer:

	 	[Initial] [Certificate Principal
	[_______________]

	 	Balance] [Interest Only/Class A-V] [Subclass]
	 

	 	Notional Amount] of this Certificate:
	 

	 	$ _______________]
	Assumed Final
	 	 
	Distribution Date:

	 	CUSIP ______ — ____
	___________ 25, ____
	 	 

MORTGAGE-BACKED PASS-THROUGH CERTIFICATE

SERIES ___-___

	 	 	 	evidencing a percentage interest in the distributions allocable to
the Class A- Certificates with respect to a Trust Fund
consisting primarily of a pool of [conventional one- to four-family
fixed interest rate first mortgage loans] formed and sold by PHOENIX
MORTGAGE SECURITIES, LLC

          This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee
referred to below or [___________] or any of their affiliates. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality
or by Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee or [___________] or any of
their affiliates. None of the Company, the Master Servicer, [___________] or any of their
affiliates will have any obligation with respect to any certificate or other obligation secured by
or payable from payments on the Certificates.

          This
certifies that ___________  is the
registered owner of the Percentage Interest evidenced by this Certificate [(obtained by dividing
the [Initial Certificate Principal Balance] [Initial [Interest Only/Class A-V] Notional Amount] of
this Certificate by the aggregate [Initial Certificate Principal
Balance of all Class A– ____  Certificates] [Initial [Interest Only/Class A-V] Notional Amounts of all [Interest Only/Class
A-V] Certificates], both as specified above)] in certain distributions with respect to the Trust
Fund consisting primarily of an interest in a pool of [conventional one- to four-family fixed
interest rate first mortgage loans] (the “Mortgage Loans”), formed and sold by Phoenix Mortgage
Securities, LLC (hereinafter called the “Company,” which term includes any successor entity under
the Agreement referred to below). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as specified above (the “Agreement”) among the Company, the Master Servicer and

A-2

 

__________________, as trustee (the “Trustee”), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is
bound.

          Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing as described in the Agreement, to the Person in whose name this
Certificate is registered at the close of business on the last day (or if such last day is not a
Business Day, the Business Day immediately preceding such last day) of the month immediately
preceding the month of such distribution (the “Record Date”), from the Available Distribution
Amount in an amount equal to the product of the Percentage Interest evidenced by this Certificate
and the amount [(of interest and principal, if any)] required to be distributed to Holders of Class A–      Certificates on such Distribution Date. [The [Interest Only/Class A-V]] Notional
Amount of the [Interest Only/Class A-V] Certificates as of any date of determination is equal to
the aggregate Stated Principal Balance of the Mortgage Loans corresponding to the Uncertificated
REMIC Regular Interests represented by such [Interest Only/Class A-V] Certificates.] [The Subclass
Notional Amount of the [Interest Only/Class A-V]       Certificates as of any date of
determination is equal to the aggregate Stated Principal Balance of the Mortgage Loans
corresponding to the Uncertificated REMIC Regular Interests represented by such [Interest
Only/Class A-V] Certificates immediately prior to such date.] [The [Interest Only/Class
A-V][_] Certificates have no Certificate Principal Balance.]

          Distributions on this Certificate will be made either by the Master Servicer acting on behalf
of the Trustee or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire transfer or otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Master Servicer or such Paying Agent, or by check mailed to the address of the
Person entitled thereto, as such name and address shall appear on the Certificate Register.

          Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose. The [Initial
Certificate Principal Balance] [Initial [Interest Only/Class A-V] Notional Amount] [initial
Subclass Notional Amount] of this Certificate is set forth above.] [The Certificate Principal
Balance hereof will be reduced to the extent of distributions allocable to principal and any
Realized Losses allocable hereto.]

          This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”).

          The Certificates are limited in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. In
the event Master Servicer funds are advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Master Servicer, to the extent provided in the

A-3

 

Agreement, from related recoveries on such Mortgage Loan or from other cash that would have
been distributable to Certificateholders.

          As provided in the Agreement, withdrawals from the Custodial Account and/or the Certificate
Account created for the benefit of Certificateholders may be made by the Master Servicer from time
to time for purposes other than distributions to Certificateholders, such purposes including
without limitation reimbursement to the Company and the Master Servicer of advances made, or
certain expenses incurred, by either of them.

          The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Company, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

          As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies appointed by the Trustee, duly
endorsed by, or accompanied by an assignment in the form below or other written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly executed by the
Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new
Certificates of authorized denominations evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable only as registered Certificates without coupons in Classes and
in denominations specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

          No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          The Company, the Master Servicer, the Trustee and the Certificate Registrar and any agent of
the Company, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Company, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

A-4

 

          This Certificate shall be governed by and construed in accordance with the laws of the State
of New York.

          The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject thereto or the
disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan and (ii) the purchase by the Master Servicer from the Trust Fund of all remaining
Mortgage Loans and all property acquired in respect of such Mortgage Loans, thereby effecting early
retirement of the Certificates. The Agreement permits, but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining Mortgage Loans and
all property acquired in respect of any Mortgage Loan or (ii) purchase in whole, but not in part,
all of the Certificates from the Holders thereof; provided, that any such option may only be
exercised if the Pool Stated Principal Balance of the Mortgage Loans as of the Distribution Date
upon which the proceeds of any such purchase are distributed is less than ten percent of the
Cut-off Date Principal Balance of the Mortgage Loans.

          Reference is hereby made to the further provisions of this Certificate set forth on the
reverse hereof, which further provisions shall for all purposes have the same effect as if set
forth at this place.

          Unless the certificate of authentication hereon has been executed by the Certificate
Registrar, by manual signature, this Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose.

A-5

 

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.

	 	 	 	 	 
	Dated: 	[_________________________],

as Trustee

 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

CERTIFICATE OF AUTHENTICATION

          This is one of the Class A_ Certificates referred to in the within-mentioned
Agreement.

	 	 	 	 	 
	 	[___________________________],

           as Certificate Registrar

 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

A-6

 

ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto ___________________________
(Please print or typewrite name and address including postal zip code of assignee) a Percentage Interest evidenced by the
within Mortgage-Backed Pass-Through Certificate and hereby authorizes the transfer of registration
of such interest to assignee on the Certificate Register of the Trust Fund.

          I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address: 

           

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	Dated: 	 	Signature by or on behalf of assignor 	 
	 	 	 	 
	 
	 	 	 
	 	  	
 	 
	 	 	Signature Guaranteed 	 
	 	 	 	 
	 

DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of distribution:

          Distributions shall be made, by wire transfer or otherwise, in immediately available funds to
___________________________ for the
account of
____________________ account number
______, or, if mailed by check, to __________________
Applicable statements should be mailed to ___________________________.

          This information is provided by __________________ , the assignee named
above, or __________________ , as its agent.

 

 

EXHIBIT
A-1

FORM OF CLASS X CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL
ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
860D OF THE INTERNAL REVENUE CODE OF 1986.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE 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.

 

 

	 	 	 

	Certificate No. ____

	 	Variable Pass-Through Rate
	Class X Senior
	 	 
	 
	 	 
	Date of Pooling and Servicing Agreement

	 	Percentage Interest: 100%
	and Cut-off Date: __________ 1, ____
	 	 
	 
	 	 
	Master Servicer:

	 	Aggregate Initial Notional Amount of the
	[_______________]

	 	Class X Certificates: $__________
	 
	 	 
	First Distribution Date:

	 	Initial Notional Amount of this Certificate:
	__________ 25, ____

	 	$_____________
	 
	 	 
	Assumed Final Distribution Date:

	 	CUSIP ________
	_____________
	 	 

MORTGAGE-BACKED PASS-THROUGH CERTIFICATE

SERIES ___-____

Evidencing a percentage interest in the distributions allocable to the Class X
Certificates with respect to a Trust Fund consisting primarily of a pool of [one- to
four-family residential, payment-option, adjustable-rate first lien mortgage loans
with a negative amortization feature] formed and sold by PHOENIX MORTGAGE
SECURITIES, LLC

     This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee
referred to below or [___________] or any of their affiliates. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality
or by Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee or [___________] or any of
their affiliates. None of the Company, the Master Servicer, [___________] or any of their
affiliates will have any obligation with respect to any certificate or other obligation secured by
or payable from payments on the Certificates.

     This certifies that _________________________ is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Initial Notional Amount of this
Certificate by the Aggregate Notional Amount of all Class X Certificates, both as specified above)
in certain distributions with respect to the Trust Fund consisting primarily of an interest in a
pool of [one- to four-family residential, payment-option, adjustable-rate first lien mortgage loans
with a negative amortization feature] (the “Mortgage Loans”), formed and sold by Phoenix Mortgage
Securities, LLC (hereinafter called the “Company,” which term includes any successor entity under
the Agreement referred to below). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as specified above (the “Agreement”) among the Company, the Master Servicer and
________________________, as trustee (the “Trustee”), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the

A-I-2

 

 

Agreement. This Certificate is issued under and is subject to the terms, provisions and conditions
of the Agreement, to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

     Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing as described in the Agreement, to the Person in whose name this
Certificate is registered at the close of business on the last day (or if such last day is not a
Business Day, the Business Day immediately preceding such last day) of the month immediately
preceding the month of such distribution (the “Record Date”), from the Available Distribution
Amount in an amount equal to the product of the Percentage Interest evidenced by this Certificate
and the amount required to be distributed to Holders of Class X Certificates on such Distribution
Date. The Class X Certificates have no Certificate Principal Balance.

     Distributions on this Certificate will be made either by the Master Servicer acting on behalf
of the Trustee or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire transfer or otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Master Servicer or such Paying Agent, or by check mailed to the address of the
Person entitled thereto, as such name and address shall appear on the Certificate Register.

     Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose. The Initial
Notional Amount of this Certificate is set forth above.

     This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”).

     The Certificates are limited in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. In
the event Master Servicer funds are advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Master Servicer, to the extent provided in the Agreement, from related
recoveries on such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or the Certificate
Account created for the benefit of Certificateholders may be made by the Master Servicer from time
to time for purposes other than distributions to Certificateholders, such purposes including
without limitation reimbursement to the Company and the Master Servicer of advances made, or
certain expenses incurred, by either of them.

     The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Company, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement at any time

A-I-3

 

 

by the Company, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

     As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies appointed by the Trustee, duly
endorsed by, or accompanied by an assignment in the form below or other written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly executed by the
Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new
Certificates of authorized denominations evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

     The Certificates are issuable only as registered Certificates without coupons in Classes and
in denominations specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Company, the Master Servicer, the Trustee and the Certificate Registrar and any agent of
the Company, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Company, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

     This Certificate shall be governed by and construed in accordance with the laws of the State
of New York.

     The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject thereto or the
disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan and (ii) the purchase by the Master Servicer from the Trust Fund of all remaining
Mortgage Loans and all property acquired in respect of such Mortgage Loans, thereby effecting early
retirement of the Certificates. The Agreement permits, but does not require, the

A-I-4

 

 

Master Servicer to (i) purchase at a price determined as provided in the Agreement all remaining
Mortgage Loans and all property acquired in respect of any Mortgage Loan or (ii) purchase in whole,
but not in part, all of the Certificates from the Holders thereof; provided, that any such option
may only be exercised if the Pool Stated Principal Balance of the Mortgage Loans as of the
Distribution Date upon which the proceeds of any such purchase are distributed is less than ten
percent of the Cut-off Date Principal Balance of the Mortgage Loans.

     Reference is hereby made to the further provisions of this Certificate set forth on the
reverse hereof, which further provisions shall for all purposes have the same effect as if set
forth at this place.

     Unless the certificate of authentication hereon has been executed by the Certificate
Registrar, by manual signature, this Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose.

A-I-5

 

 

IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.

	 	 	 	 	 
	Dated: 	[______________________],

as Trustee

 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

CERTIFICATE OF AUTHENTICATION

This is one of the Class X Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	[______________________],

as Certificate Registrar

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

A-I-6

	 	 	 	 	 

 

 

ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

(Please print or typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Mortgage-Backed Pass-Through Certificate and hereby authorizes the
transfer of registration of such interest to assignee on the Certificate Register of the Trust
Fund.

     I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

      

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Signature by or on behalf of assignor 	 
	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Signature Guaranteed 	 
	 	 	 	 
	 

Dated:

DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately available funds to
for the account of_____________account number _____________ , or, if mailed by check, to

      

Applicable statements should be mailed to

 

     This information is provided by __________________________, the assignee named above, or_____________ as its agent.

 

 

EXHIBIT B

FORM OF CLASS M CERTIFICATE

     THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES [CLASS M-1
CERTIFICATES] [AND CLASS M-2 CERTIFICATES] AS DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A
“REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS
860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”).

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE 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 FOLLOWING INFORMATION IS PROVIDED SOLELY FOR THE PURPOSES OF APPLYING THE U.S. FEDERAL
INCOME TAX ORIGINAL ISSUE DISCOUNT (“OID”) RULES TO THIS CERTIFICATE. THE ISSUE DATE OF THIS
CERTIFICATE IS ___________ __, ___. ASSUMING THAT THE MORTGAGE LOANS PREPAY AT [___]% OF THE
PREPAYMENT SPEED ASSUMPTION (AS DESCRIBED IN THE PROSPECTUS SUPPLEMENT), THIS CERTIFICATE HAS BEEN
ISSUED WITH NO MORE THAN $[____] OF OID PER $[1,000] OF INITIAL CERTIFICATE PRINCIPAL BALANCE, THE
YIELD TO MATURITY IS [_____]% AND THE AMOUNT OF OID ATTRIBUTABLE TO THE INITIAL ACCRUAL PERIOD IS
NO MORE THAN $[____] PER $[1,000] OF INITIAL CERTIFICATE PRINCIPAL BALANCE, COMPUTED UNDER THE
APPROXIMATE METHOD. NO REPRESENTATION IS MADE THAT THE MORTGAGE LOANS WILL PREPAY AT A RATE BASED
ON THE PREPAYMENT SPEED ASSUMPTION OR AT ANY OTHER RATE.

     ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE REPRESENTED BY VIRTUE OF ITS
PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST HEREIN) THAT EITHER (A) SUCH TRANSFEREE IS NOT
AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY PLAN, OR ANY OTHER PERSON, ACTING,
DIRECTLY OR INDIRECTLY, ON BEHALF OF OR PURCHASING ANY CERTIFICATE WITH “PLAN ASSETS” OF ANY PLAN
(A “PLAN INVESTOR”), (B) IT HAS ACQUIRED AND IS HOLDING SUCH CERTIFICATE IN

 

 

RELIANCE ON PROHIBITED TRANSACTION EXEMPTION (“PTE”) 94-29, AS MOST RECENTLY AMENDED, PTE
2002-41, 67 FED. REG. 54487 (AUGUST 22, 2002) (THE “ISSUER EXEMPTION”), AND THAT IT UNDERSTANDS
THAT THERE ARE CERTAIN CONDITIONS TO THE AVAILABILITY OF THE ISSUER EXEMPTION INCLUDING THAT SUCH
CERTIFICATE MUST BE RATED, AT THE TIME OF PURCHASE, NOT LOWER THAN “BBB-” (OR ITS EQUIVALENT) BY
STANDARD & POOR’S, FITCH OR MOODY’S OR (C) (I) THE TRANSFEREE IS AN INSURANCE COMPANY, (II) THE
SOURCE OF FUNDS TO BE USED BY IT TO PURCHASE THE CERTIFICATE IS AN “INSURANCE COMPANY GENERAL
ACCOUNT” (WITHIN THE MEANING OF U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
(“PTCE”) 95-60), AND (III) THE CONDITIONS SET FORTH IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (C), A “COMPLYING INSURANCE COMPANY).

     IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD BY ANY PERSON THAT DOES NOT
SATISFY THE CONDITIONS DESCRIBED IN THE PRECEDING PARAGRAPH, THEN THE LAST PRECEDING TRANSFEREE
THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) ACQUIRED SUCH CERTIFICATE IN COMPLIANCE WITH THE
ISSUER EXEMPTION, OR (III) IS A COMPLYING INSURANCE COMPANY SHALL BE RESTORED, TO THE EXTENT
PERMITTED BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS CERTIFICATE OWNER THEREOF RETROACTIVE TO THE
DATE OF SUCH TRANSFER OF THIS CERTIFICATE. THE TRUSTEE SHALL BE UNDER NO LIABILITY TO ANY PERSON
FOR MAKING ANY PAYMENTS DUE ON THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

     ANY PURPORTED CERTIFICATE OWNER WHOSE ACQUISITION OR HOLDING OF THIS CERTIFICATE (OR INTEREST
HEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS IN SECTION 5.02(e) OF THE POOLING AND
SERVICING AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE, THE MASTER
SERVICER, ANY SUBSERVICER, AND THE TRUST FUND FROM AND AGAINST ANY AND ALL LIABILITIES, CLAIMS,
COSTS OR EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

B-2

 

	 	 	 

	Certificate
No.__

	 	[ __ ]% Pass-Through Rate
	 
	 	 
	Class M- Subordinate 

Date of Pooling and Servicing

	 	Aggregate Certificate 

Principal Balance 

of the Class M Certificates:
	Agreement and Cut-off Date:

___________ 1, ____

First Distribution Date:

	 	$___________

Initial Certificate Principal
Balance of this Certificate:
	_________ 25, ____

	 	$____________
	 
	 	 
	Master Servicer:
[_______________]

	 	CUSIP:________-___
	 
	 	 
	Assumed Final Distribution Date:
	 	 
	___________ 25, ____
	 	 

MORTGAGE-BACKED PASS-THROUGH CERTIFICATE,

SERIES ___-___

evidencing a percentage interest in any distributions allocable to the Class M-  Certificates with respect to the Trust Fund consisting primarily of a pool of
[conventional one- to four-family fixed interest rate first mortgage loans] formed
and sold by PHOENIX MORTGAGE SECURITIES, LLC

          This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee
referred to below or [___________] or any of their affiliates. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality
or by Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee or [___________] or any of
their affiliates. None of the Company, the Master Servicer, [___________] or any of their
affiliates will have any obligation with respect to any certificate or other obligation secured by
or payable from payments on the Certificates.

          This certifies that  is the
registered owner of the Percentage Interest evidenced by this Certificate (obtained by dividing the
Certificate Principal Balance of this Certificate by the aggregate Certificate Principal Balance of
all Class M- Certificates, both as specified above) in certain distributions with
respect to a Trust Fund consisting primarily of a pool of [conventional one- to four-family fixed
interest rate first mortgage loans] (the “Mortgage Loans”), formed and sold by Phoenix Mortgage
Securities, LLC (hereinafter called the “Company,” which term includes any successor entity under
the Agreement referred to below). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as specified above (the “Agreement”) among the Company, the Master Servicer and
__________________, as trustee (the “Trustee”), a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is

B-3

 

issued under and is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which
such Holder is bound.

          Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing as described in the Agreement, to the Person in whose name this
Certificate is registered at the close of business on the last day (or if such last day is not a
Business Day, the Business Day immediately preceding such last day) of the month immediately
preceding the month of such distribution (the “Record Date”), from the Available Distribution
Amount in an amount equal to the product of the Percentage Interest evidenced by this Certificate
and the amount (of interest and principal, if any) required to be distributed to Holders of Class
M- Certificates on such Distribution Date.

          Distributions on this Certificate will be made either by the Master Servicer acting on behalf
of the Trustee or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire transfer or otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Master Servicer or such Paying Agent, or by check mailed to the address of the
Person entitled thereto, as such name and address shall appear on the Certificate Register.

          Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose. The Initial
Certificate Principal Balance of this Certificate is set forth above. The Certificate Principal
Balance hereof will be reduced to the extent of the distributions allocable to principal and any
Realized Losses allocable hereto.

          Any transferee of this Certificate will be deemed to have represented by virtue of its
purchase or holding of this Certificate (or interest herein) that either (a) such transferee is not
an investment manager, a named fiduciary or a trustee of any plan, or any other person, acting,
directly or indirectly, on behalf of or purchasing any Certificate with “plan assets” of any plan
(a “plan investor”), (b) it has acquired and is holding such Certificate in reliance on prohibited
transaction exemption (“PTE”) 94-29, as most recently amended, PTE 2002-41, 67 fed. Reg. 54487
(August 22, 2002) (the “Issuer Exemption”), and that it understands that there are certain
conditions to the availability of the Issuer Exemption including that such Certificate must be
rated, at the time of purchase, not lower than “BBB-” (or its equivalent) by Standard & Poor’s,
Fitch or Moody’s or (c) (i) the transferee is an insurance company, (ii) the source of funds to be
used by it to purchase the Certificate is an “insurance company general account” (within the
meaning of U.S. Department of Labor prohibited transaction class exemption (“PTCE”) 95-60), and
(iii) the conditions set forth in Sections I and III of PTCE 95-60 have been satisfied (each entity
that satisfies this clause (c), a “complying insurance company).

          If this Certificate (or any interest herein) is acquired or held by any person that does not
satisfy the conditions described in the preceding paragraph, then the last preceding transferee
that either (i) is not a plan investor, (ii) acquired such Certificate in compliance with the
Issuer Exemption, or (iii) is a complying insurance company shall be restored, to the extent

B-4

 

permitted by law, to all rights and obligations as Certificate owner thereof retroactive to
the date of such transfer of this Certificate. The Trustee shall be under no liability to any
person for making any payments due on this Certificate to such preceding transferee.

          This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”).

          The Certificates are limited in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. In
the event Master Servicer funds are advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Master Servicer, to the extent provided in the Agreement, from related
recoveries on such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

          As provided in the Agreement, withdrawals from the Custodial Account and/or the Certificate
Account created for the benefit of Certificateholders may be made by the Master Servicer from time
to time for purposes other than distributions to Certificateholders, such purposes including
without limitation reimbursement to the Company and the Master Servicer of advances made, or
certain expenses incurred, by either of them.

          The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Company, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

          As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies appointed by the Trustee, duly
endorsed by, or accompanied by an assignment in the form below or other written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly executed by the
Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new
Certificates of authorized denominations evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable only as registered Certificates without coupons in Classes and
in denominations specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new Certificates

B-5

 

of authorized denominations evidencing the same Class and aggregate Percentage Interest, as
requested by the Holder surrendering the same.

          No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          The Company, the Master Servicer, the Trustee and the Certificate Registrar and any agent of
the Company, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Company, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

          This Certificate shall be governed by and construed in accordance with the laws of the State
of New York.

          The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject thereto or the
disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan and (ii) the purchase by the Master Servicer from the Trust Fund of all remaining
Mortgage Loans and all property acquired in respect of such Mortgage Loans, thereby effecting early
retirement of the Certificates. The Agreement permits, but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining Mortgage Loans and
all property acquired in respect of any Mortgage Loan or (ii) purchase in whole, but not in part,
all of the Certificates from the Holders thereof; provided, that any such option may only be
exercised if the Pool Stated Principal Balance of the Mortgage Loans as of the Distribution Date
upon which the proceeds of any such purchase are distributed is less than ten percent of the
Cut-off Date Principal Balance of the Mortgage Loans.

          Unless the certificate of authentication hereon has been executed by the Certificate
Registrar, by manual signature, this Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose.

B-6

 

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.

	 	 	 	 	 
	Dated: 	[____________________________],

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

CERTIFICATE OF AUTHENTICATION

          This
is one of the Class M__ Certificates referred to in the within-mentioned
Agreement.

	 	 	 	 	 

	 
	 	[_________________________],

        as Certificate Registrar

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

B-7

 

	 	 	 	 	 

ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
_____(Please print or typewrite
name and address including postal zip code of assignee) a Percentage Interest evidenced by the
within Mortgage-Backed Pass-Through Certificate and hereby authorizes the transfer of registration
of such interest to assignee on the Certificate Register of the Trust Fund.

          I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

	 	 	 	 	 
	 	 	 
	Dated: 	  	 	 
	 	 	Signature by or on behalf of assignor 	 
	 	 	 	 
	 
	 	 	 
	 	  	 	 
	 	 	Signature Guaranteed 	 
	 	 	 	 
	 

DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of distribution:

          Distributions shall be made, by wire transfer or otherwise, in immediately available funds to
_______________________________ for the
account of __________________________
account number __________________________
, or, if mailed by check, to _______________
Applicable statements should be mailed to
_____________________________.

          This information is provided by ________________________, the assignee named
above, or ________________, as its agent.

 

EXHIBIT C

FORM OF CLASS B CERTIFICATE

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES AND CLASS M
CERTIFICATES [AND CLASS B-1] [CLASS B-2 CERTIFICATES] DESCRIBED IN THE AGREEMENT (AS DEFINED
HEREIN).

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS
REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT
FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES EITHER A
CERTIFICATION PURSUANT TO SECTION 5.02(e) OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO
THE TRUSTEE THAT THE PURCHASE OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE MASTER SERVICER, THE
COMPANY OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
AGREEMENT.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL
ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
860D OF THE CODE. THE FOLLOWING INFORMATION IS PROVIDED SOLELY FOR THE PURPOSES OF APPLYING THE
U.S. FEDERAL INCOME TAX ORIGINAL ISSUE DISCOUNT (“OID”) RULES TO THIS CERTIFICATE. THE ISSUE DATE
OF THIS CERTIFICATE IS ___________ __, ____. ASSUMING THAT THE MORTGAGE LOANS PREPAY AT 100% OF
THE PREPAYMENT SPEED ASSUMPTION (AS DESCRIBED IN THE PROSPECTUS SUPPLEMENT), THIS CERTIFICATE HAS
BEEN ISSUED WITH NO MORE THAN $[     ] OF OID PER $[1,000] OF INITIAL CERTIFICATE
PRINCIPAL BALANCE, THE YIELD TO MATURITY IS [     ]% AND THE AMOUNT OF OID ATTRIBUTABLE
TO THE INITIAL ACCRUAL PERIOD IS NO MORE THAN $[     ] PER $[1,000] OF INITIAL
CERTIFICATE PRINCIPAL BALANCE, COMPUTED UNDER THE APPROXIMATE METHOD. NO REPRESENTATION IS MADE
THAT THE MORTGAGE LOANS WILL PREPAY AT A RATE BASED ON THE PREPAYMENT SPEED ASSUMPTION OR AT ANY
OTHER RATE.

 

 

	 	 	 

	Certificate No.__

	 	[___]% Pass-Through Rate
	 
	 	 
	Class B- __ Subordinate

	 	Aggregate Certificate
	 

	 	Principal Balance
	Date of Pooling and Servicing

	 	of the Class B-__
	Agreement and Cut-off Date:

	 	Certificates as of
	___________ 1, ____

	 	the Cut-off Date:
	 

	 	$_________
	First Distribution Date:
	 	 
	_________ 25, ____

	 	Initial Certificate Principal
	 

	 	Balance of this Certificate:
	Master Servicer:

	 	$_________
	[_______________]
	 	 
	 
	 	 
	Assumed Final Distribution Date:
	 	 
	___________ 25, ____
	 	 

MORTGAGE-BACKED PASS-THROUGH CERTIFICATE,

SERIES ____-___

evidencing a percentage interest in any distributions allocable to the Class B-__
Certificates with respect to the Trust Fund consisting primarily of a pool of
[conventional one- to four-family fixed interest rate first mortgage loans] formed
and sold by PHOENIX MORTGAGE SECURITIES, LLC

          This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee
referred to below or [___________] or any of their affiliates. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality
or by Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee or [___________] or any of
their affiliates. None of the Company, the Master Servicer, [___________] or any of their
affiliates will have any obligation with respect to any certificate or other obligation secured by
or payable from payments on the Certificates.

          This certifies that Phoenix Mortgage Securities, LLC is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Certificate Principal Balance of
this Certificate by the aggregate Certificate Principal Balance of all Class B-
Certificates, both as specified above) in certain distributions with respect to a Trust Fund
consisting primarily of a pool of [conventional one- to four-family fixed interest rate first
mortgage loans] (the “Mortgage Loans”), formed and sold by Phoenix Mortgage Securities, LLC
(hereinafter called the “Company,” which term includes any successor entity under the Agreement
referred to below). The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated
as specified above (the “Agreement”) among the Company, the Master Servicer and __________________,
as trustee (the “Trustee”), a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is

C-2

 

issued under and is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which
such Holder is bound.

          Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing on the first Distribution Date specified above, to the Person in
whose name this Certificate is registered at the close of business on the last day (or if such last
day is not a Business Day, the Business Day immediately preceding such last day) of the month next
preceding the month of such distribution (the “Record Date”), from the Available Distribution
Amount in an amount equal to the product of the Percentage Interest evidenced by this Certificate
and the amount (of interest and principal, if any) required to be distributed to Holders of Class B
Certificates on such Distribution Date.

          Distributions on this Certificate will be made either by the Master Servicer acting on behalf
of the Trustee or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire transfer or otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Master Servicer or such Paying Agent, or by check mailed to the address of the
Person entitled thereto, as such name and address shall appear on the Certificate Register.

          Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose. The Initial
Certificate Principal Balance of this Certificate is set forth above. The Certificate Principal
Balance hereof will be reduced to the extent of the distributions allocable to principal and any
Realized Losses allocable hereto.

          No transfer of this Class B Certificate will be made unless such transfer is exempt from the
registration requirements of the Securities Act of 1933, as amended, and any applicable state
securities laws or is made in accordance with said Act and laws. In the event that such a transfer
is to be made, (i) the Trustee or the Company may require an opinion of counsel acceptable to and
in form and substance satisfactory to the Trustee and the Company that such transfer is exempt
(describing the applicable exemption and the basis therefor) from or is being made pursuant to the
registration requirements of the Securities Act of 1933, as amended, and of any applicable statute
of any state and (ii) the transferee shall execute an investment letter in the form described by
the Agreement. The Holder hereof desiring to effect such transfer shall, and does hereby agree to,
indemnify the Trustee, the Company, the Master Servicer and the Certificate Registrar acting on
behalf of the Trustee against any liability that may result if the transfer is not so exempt or is
not made in accordance with such Federal and state laws. In connection with any such transfer, the
Trustee will also require either (i) an opinion of counsel addressed to the Trustee, the Company
and the Master Servicer, acceptable to and in form and substance satisfactory to the Trustee with
respect to the permissibility of such transfer under the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), and Section 4975 of the Internal Revenue Code (the “Code”) and stating,
among other things, that the transferee’s acquisition of a Class B Certificate will not constitute
or result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the
Code or (ii) a representation

C-3

 

letter, in the form as described by Section 5.02(e) of the Agreement, either stating that the
transferee is not an employee benefit or other plan subject to the prohibited transaction
provisions of ERISA or Section 4975 of the Code (a “Plan”), or any other person (including an
investment manager, a named fiduciary or a trustee of any Plan) acting, directly or indirectly, on
behalf of or purchasing any Certificate with “plan assets” of any Plan, or stating that the
transferee is an insurance company, the source of funds to be used by it to purchase the
Certificate is an “insurance company general account” (within the meaning of Department of Labor
Prohibited Transaction Class Exemption (“PTCE”) 95-60), and the purchase is being made in reliance
upon the availability of the exemptive relief afforded under Sections I and III of PTCE 95-60.

          This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”).

          The Certificates are limited in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. In
the event Master Servicer funds are advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Master Servicer, to the extent provided in the Agreement, from related
recoveries on such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

          As provided in the Agreement, withdrawals from the Custodial Account and/or the Certificate
Account created for the benefit of Certificateholders may be made by the Master Servicer from time
to time for purposes other than distributions to Certificateholders, such purposes including
without limitation reimbursement to the Company and the Master Servicer of advances made, or
certain expenses incurred, by either of them.

          The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Company, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

          As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies appointed by the Trustee, duly
endorsed by, or accompanied by an assignment in the form below or other written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly executed by the
Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more

C-4

 

new Certificates of authorized denominations evidencing the same Class and aggregate
Percentage Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable only as registered Certificates without coupons in Classes and
in denominations specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

          No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          The Company, the Master Servicer, the Trustee and the Certificate Registrar and any agent of
the Company, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Company, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

          This Certificate shall be governed by and construed in accordance with the laws of the State
of New York.

          The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject thereto or the
disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan and (ii) the purchase by the Master Servicer from the Trust Fund of all remaining
Mortgage Loans and all property acquired in respect of such Mortgage Loans, thereby effecting early
retirement of the Certificates. The Agreement permits, but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining Mortgage Loans and
all property acquired in respect of any Mortgage Loan or (ii) purchase in whole, but not in part,
all of the Certificates from the Holders thereof; provided, that any such option may only be
exercised if the Pool Stated Principal Balance of the Mortgage Loans as of the Distribution Date
upon which the proceeds of any such purchase are distributed is less than ten percent of the
Cut-off Date Principal Balance of the Mortgage Loans.

          Unless the certificate of authentication hereon has been executed by the Certificate
Registrar, by manual signature, this Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose.

C-5

 

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.

	 	 	 	 	 
	Dated: 	[__________________],

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

CERTIFICATE OF AUTHENTICATION

          This
is one of the Class B-         Certificates referred to in the within-mentioned
Agreement.

	 	 	 	 	 
	 	[___________________],

as Certificate Registrar

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

C-6

 

	 	 	 	 	 

ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto ___________________________________
(Please print or typewrite
name and address including postal zip code of assignee) a Percentage Interest evidenced by the
within Mortgage-Backed Pass-Through Certificate and hereby authorizes the transfer of registration
of such interest to assignee on the Certificate Register of the Trust Fund.

          I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

	 	 	 	 	 
	 	 	 
	Dated: 	  	 	 
	 	 	Signature by or on behalf of assignor 	 

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Signature Guaranteed 	 
	 	 	 	 
	 

DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of distribution:

          Distributions shall be made, by wire transfer or otherwise, in immediately available funds to
________ for the
account of ________ account number ________, or, if mailed by check, to
________ Applicable statements should be mailed to
________.

          This information is provided by ________, the assignee named
above, or ________, as its agent.

 

 

EXHIBIT C-I

FORM OF CLASS P CERTIFICATE

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS
REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT
FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT).

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES EITHER A
CERTIFICATION PURSUANT TO SECTION 5.02(e) OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO
THE TRUSTEE THAT THE PURCHASE OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE MASTER SERVICER, THE
COMPANY OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
AGREEMENT.

 

 

	 	 	 

	Certificate No. ___

	 	Prepayment Charge
	 
	 	 
	Class P— Prepayment Charge

	 	Aggregate Certificate Principal Balance of the Class P
	 
	 	 
	Date of Pooling and Servicing

	 	Certificates as of
	Agreement and Cut-off Date:

	 	the Cut-off Date:
	__________ 1, ____

	 	 $0.00
	 
	 	 
	First Distribution Date:

	 	Initial Certificate Principal Balance of this
	__________ 25, ____

	 	Certificate: $____
	 
	 	 
	Master Servicer:

	 	Percentage Interest of this Certificate:
	[_______________]

	 	 100%
	 
	 	 
	Assumed Final Distribution Date:

	 	CUSIP: __________
	__________ 25, ____

	 	 

MORTGAGE-BACKED PASS-THROUGH CERTIFICATE,

SERIES ___-___

evidencing a percentage interest in any distributions allocable to the Class P
Certificates with respect to the Trust Fund consisting primarily of a pool of [one-
to four-family residential, payment-option, adjustable-rate first lien mortgage loans
with a negative amortization feature] formed and sold by PHOENIX MORTGAGE SECURITIES,
LLC

          This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee
referred to below or [___________] or any of their affiliates. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality
or by Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee or [___________] or any of
their affiliates. None of the Company, the Master Servicer, [___________] or any of their
affiliates will have any obligation with respect to any certificate or other obligation secured by
or payable from payments on the Certificates.

          This certifies that ____________________________ is the registered owner of the Percentage
Interest evidenced by this Certificate (as specified above) in certain distributions with respect
to a Trust Fund consisting primarily of a pool of [one- to four-family residential, payment-option,
adjustable-rate first lien mortgage loans with a negative amortization feature] (the “Mortgage
Loans”), formed and sold by Phoenix Mortgage Securities, LLC (hereinafter called the “Company,”
which term includes any successor entity under the Agreement referred to below). The Trust Fund
was created pursuant to a Pooling and Servicing Agreement dated as specified above (the
“Agreement”) among the Company, the Master Servicer and ____________________, as trustee
(the “Trustee”), a summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is

C-I-2

 

 

subject to the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is
bound.

          Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing on the first Distribution Date specified above, to the Person in
whose name this Certificate at the close of business on the last day (or if such last day is not a
Business Day, the Business Day immediately preceding such last day) of the month immediately
preceding the month of such distribution (the “Record Date”), in an amount equal to the product of
the Percentage Interest evidenced by this Certificate and the amount required to be distributed to
Holders of Class P Certificates on such Distribution Date.

          Distributions on this Certificate will be made either by the Master Servicer acting on behalf
of the Trustee or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire transfer or otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Master Servicer or such Paying Agent, or by check mailed to the address of the
Person entitled thereto, as such name and address shall appear on the Certificate Register.

          Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose.

          No transfer of this Class P Certificate will be made unless such transfer is exempt from the
registration requirements of the Securities Act of 1933, as amended, and any applicable state
securities laws or is made in accordance with said Act and laws. In the event that such a transfer
is to be made, (i) the Trustee or the Company may require an opinion of counsel acceptable to and
in form and substance satisfactory to the Trustee and the Company that such transfer is exempt
(describing the applicable exemption and the basis therefor) from or is being made pursuant to the
registration requirements of the Securities Act of 1933, as amended, and of any applicable statute
of any state and (ii) the transferee shall execute an investment letter in the form described by
the Agreement. The Holder hereof desiring to effect such transfer shall, and does hereby agree to,
indemnify the Trustee, the Company, the Master Servicer and the Certificate Registrar acting on
behalf of the Trustee against any liability that may result if the transfer is not so exempt or is
not made in accordance with such Federal and state laws. In connection with any such transfer, the
Trustee will also require either (i) an opinion of counsel addressed to the Trustee, the Company
and the Master Servicer, acceptable to and in form and substance satisfactory to the Trustee with
respect to the permissibility of such transfer under the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), and Section 4975 of the Internal Revenue Code (the “Code”) and stating,
among other things, that the transferee’s acquisition of a Class P Certificate will not constitute
or result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the
Code or (ii) a representation letter, in the form as described by Section 5.02(e) of the Agreement,
either stating that the transferee is not an employee benefit or other plan subject to the
prohibited transaction provisions of ERISA or Section 4975 of the Code (a “Plan”), or any other
person (including an investment manager, a named fiduciary or a trustee of any Plan) acting,
directly or indirectly, on behalf of or purchasing any Certificate with “plan assets” of any Plan.

C-I-3

 

 

          This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”).

          The Certificates are limited in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. In
the event Master Servicer funds are advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Master Servicer, to the extent provided in the Agreement, from related
recoveries on such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

          As provided in the Agreement, withdrawals from the Custodial Account and/or the Certificate
Account created for the benefit of Certificateholders may be made by the Master Servicer from time
to time for purposes other than distributions to Certificateholders, such purposes including
without limitation reimbursement to the Company and the Master Servicer of advances made, or
certain expenses incurred, by either of them.

          The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Company, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

          As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies appointed by the Trustee, duly
endorsed by, or accompanied by an assignment in the form below or other written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly executed by the
Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new
Certificates of authorized denominations evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable only as registered Certificates without coupons in Classes and
in denominations specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

C-I-4

 

 

          No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          The Company, the Master Servicer, the Trustee and the Certificate Registrar and any agent of
the Company, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Company, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

          This Certificate shall be governed by and construed in accordance with the laws of the State
of New York.

          The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject thereto or the
disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan and (ii) the purchase by the Master Servicer from the Trust Fund of all remaining
Mortgage Loans and all property acquired in respect of such Mortgage Loans, thereby effecting early
retirement of the Certificates. The Agreement permits, but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining Mortgage Loans and
all property acquired in respect of any Mortgage Loan or (ii) purchase in whole, but not in part,
all of the Certificates from the Holders thereof; provided, that any such option may only be
exercised if the Pool Stated Principal Balance of the Mortgage Loans as of the Distribution Date
upon which the proceeds of any such purchase are distributed is less than ten percent of the
Cut-off Date Principal Balance of the Mortgage Loans.

          Unless the certificate of authentication hereon has been executed by the Certificate
Registrar, by manual signature, this Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose.

C-I-5

 

 

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.

	 	 	 

	Dated: _______________

	 	[____________________________],
	 

	 	as Trustee

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 

CERTIFICATE OF AUTHENTICATION

     This is one of the Class P Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	[____________________________],

as Certificate Registrar

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 

C-I-6

 

 

ASSIGNMENT

          FOR
VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _________________________
(Please print or typewrite
name and address including postal zip code of assignee) a Percentage Interest evidenced by the
within Mortgage-Backed Pass-Through Certificate and hereby authorizes the transfer of registration
of such interest to assignee on the Certificate Register of the Trust Fund.

          I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

	 	 	 	 	 
	 
	Dated: 	Signature
by or on behalf of assignor  
	 
	 
	 	 	 
	 	  	
 	 
	 	 	Signature Guaranteed 	 

DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of distribution:

          Distributions shall be made, by wire transfer or otherwise, in immediately available funds to
______________________________ for the
account of _______________ account number _______________, or, if mailed by check, to                     
Applicable statements should be mailed to ______________________________.

          This information is provided by                                         , the assignee named
above, or                                         , as its agent.

 

 

EXHIBIT C-II

CLASS SB-[   ] CERTIFICATE

     THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES, THE CLASS
M-1, CLASS M-2, CLASS M-3, [CLASS M-4, CLASS M-5, CLASS M-6, CLASS M-7, CLASS M-8, CLASS M-9 AND
CLASS M-10] CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A
“REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS
860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986.

     THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS
REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT
FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT (THE “AGREEMENT”).

     NO TRANSFER OF THIS CERTIFICATE OR ANY INTEREST HEREIN SHALL BE MADE TO ANY PLAN SUBJECT TO
TITLE I OF ERISA OR SECTION 4975 OF THE CODE, ANY PERSON ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF ANY SUCH PLAN OR ANY PERSON ACQUIRING SUCH CERTIFICATES WITH “PLAN ASSETS” OF A PLAN WITHIN THE
MEANING OF THE DEPARTMENT OF LABOR REGULATION PROMULGATED AT 29 C.F.R. §2510.3-101, AS MODIFIED BY
SECTION 3(42) OF ERISA (“PLAN ASSET REGULATIONS”), UNLESS THE DEPOSITOR, THE TRUSTEE AND THE MASTER
SERVICER ARE PROVIDED WITH AN OPINION OF COUNSEL WHICH ESTABLISHES TO THE SATISFACTION OF THE
TRUSTEE THAT THE PURCHASE OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN ANY PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE
CODE AND WILL NOT SUBJECT THE DEPOSITOR, THE MASTER SERVICER, THE TRUSTEE OR THE TRUST FUND TO ANY
OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER TITLE I OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT, WHICH OPINION OF COUNSEL SHALL
NOT BE AN EXPENSE OF. THE DEPOSITOR, THE MASTER SERVICER, THE TRUSTEE OR THE TRUST FUND.

 

 

	 	 	 

	Class SB-[   ] Subordinate

	 	Certificate No. ___
	 
	 	 
	Date of Pooling and Servicing Agreement

	 	Percentage Interest: _____%
	and Cut-off Date:
	 	 
	___________ 1, ____
	 	 
	 
	 	 
	First Distribution Date:

	 	Aggregate Initial Notional Principal
	___________ 25, ____

	 	Balance of the Class SB-[ ] Certificates:
	 

	 	$____________
	 
	 	 
	Master Servicer:

	 	Initial Notional Balance
	[_______________]

	 	of this Class SB-2 Certificate:
	 

	 	$____________
	 
	 	 
	Maturity Date:

	 	CUSIP: ____________
	___________ 25, ____
	 	 

MORTGAGE-BACKED PASS-THROUGH CERTIFICATE,

Series ____-____

evidencing a percentage interest in any distributions allocable to
the Class SB-[ ] Certificates with respect to the Trust Fund
consisting primarily of a pool of [one- to four-family residential,
hybrid adjustable-rate first lien mortgage loans with a negative
amortization feature] formed and sold by PHOENIX MORTGAGE
SECURITIES, LLC

     This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee
referred to below or [___________] or any of their affiliates. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality
or by Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee or [___________] or any of
their affiliates. None of the Depositor, the Master Servicer, [___________] or any of their
affiliates will have any obligation with respect to any certificate or other obligation secured by
or payable from payments on the Certificates.

     This certifies that PRAMWAVE & CO. is the registered owner of the Percentage Interest
evidenced by this Certificate in certain distributions with respect to the Trust Fund consisting
primarily of an interest in a pool of [one- to four-family adjustable rate first lien mortgage
loans] (the “Mortgage Loans”), sold by Phoenix Mortgage Securities, LLC (hereinafter called the
“Depositor,” which term includes any successor entity under the Agreement referred to below). The
Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as specified

C-II-2

 

 

above (the “Agreement”) among the Depositor, the Master Servicer and _____________, as trustee
(the “Trustee”), a summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof, assents and by which such Holder is bound.

     Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing as described in the Agreement, to the Person in whose name this
Certificate is registered at the close of business on the last Business Day of the month
immediately preceding the month of such distribution (the “Record Date”), from the Available
Distribution Amount in an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount of interest and principal, if any, required to be distributed to Holders
of Class SB-[ ] Certificates on such Distribution Date.

     Distributions on this Certificate will be made either by the Master Servicer acting on behalf
of the Trustee or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire transfer or otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Master Servicer or such Paying Agent, or by check mailed to the address of the
Person entitled thereto, as such name and address shall appear on the Certificate Register.

     Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose. The Notional Amount
of this Class SB-[ ] Certificate as of any date of determination will be calculated as described in
the Agreement. This Class SB-[ ] Certificate will accrue interest at the Pass-Through Rate on the
Notional Amount as indicated in the definition of Accrued Certificate Interest in the Agreement.
This Class SB-[ ] Certificate will not accrue interest on its Certificate Principal Balance.

     No transfer of this Class SB-[ ] Certificate will be made unless such transfer is exempt from
the registration requirements of the Securities Act of 1933, as amended, and any applicable state
securities laws or is made in accordance with said Act and laws. In the event that such a transfer
is to be made, (i) the Trustee or the Depositor may require an opinion of counsel acceptable to and
in form and substance satisfactory to the Trustee and the Depositor that such transfer is exempt
(describing the applicable exemption and the basis therefor) from or is being made pursuant to the
registration requirements of the Securities Act of 1933, as amended, and of any applicable statute
of any state and (ii) the transferee shall execute an investment letter in the form described by
the Agreement. The Holder hereof desiring to effect such transfer shall, and does hereby agree to,
indemnify the Trustee, the Depositor, the Master Servicer and the Certificate Registrar acting on
behalf of the Trustee against any liability that may result if the transfer is not so exempt or is
not made in accordance with such Federal and state laws.

     No transfer of this Certificate or any interest herein shall be made to any Plan subject to
Title I of ERISA or Section 4975 of the Code, any Person acting, directly or indirectly, on behalf

C-II-3

 

 

of any such Plan or any Person acquiring such Certificates with “plan assets” of a Plan within
the meaning of the Department of Labor regulation promulgated at 29 C.F.R. §2510.3-101, as modified
by Section 3(42) of ERISA (“Plan Asset Regulations”), unless the Depositor, the Trustee and the
Master Servicer are provided with an Opinion of Counsel which establishes to the satisfaction of
the Trustee that the purchase of this Certificate is permissible under applicable law, will not
constitute or result in any prohibited transaction under Title I of ERISA or Section 4975 of the
Code and will not subject the Depositor, the Master Servicer, the Trustee or the Trust Fund to any
obligation or liability (including obligations or liabilities under Title I of ERISA or Section
4975 of the Code) in addition to those undertaken in the Agreement, which Opinion of Counsel shall
not be an expense of the Depositor, the Master Servicer, the Trustee or the Trust Fund.

     This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”).

     The Certificates are limited in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. In
the event Master Servicer funds are advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Master Servicer, to the extent provided in the Agreement, from related
recoveries on such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or the Certificate
Account created for the benefit of Certificateholders may be made by the Master Servicer from time
to time for purposes other than distributions to Certificateholders, such purposes including
without limitation reimbursement to the Depositor and the Master Servicer of advances made, or
certain expenses incurred, by either of them.

     The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Depositor, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement from time to time by
the Depositor, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or
not notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

     As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies appointed by the Trustee, duly
endorsed by, or accompanied by an assignment in the form below or other written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly executed by the

C-II-4

 

 

Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more
new Certificates of authorized denominations evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

     The Certificates are issuable only as registered Certificates without coupons in Classes and
in denominations specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Depositor, the Master Servicer, the Trustee, the Certificate Registrar and any agent of
the Depositor, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person
in whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Depositor, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

     This Certificate shall be governed by and construed in accordance with the laws of the State
of New York.

     The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject thereto or the
disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan, and (ii) the purchase by the Master Servicer from the Trust Fund of all remaining
Mortgage Loans and all property acquired in respect of such Mortgage Loans, thereby effecting early
retirement of the Certificates. The Agreement permits, but does not require, the Master Servicer
(i) to purchase, at a price determined as provided in the Agreement, all remaining Mortgage Loans
and all property acquired in respect of any Mortgage Loan or (ii) to purchase in whole, but not in
part, all of the Certificates from the Holders thereof, provided, that any such option may only be
exercised if the Stated Principal Balance before giving effect to the distributions to be made on
such Distribution Date of the Mortgage Loans, as of the Distribution Date upon which the proceeds
of any such purchase are distributed is less than ten percent of the Cut-off Date Principal Balance
of the Mortgage Loans.

     Unless the certificate of authentication hereon has been executed by the Certificate Registrar
by manual signature, this Certificate shall not be entitled to any benefit under the Agreement or
be valid for any purpose.

[Signature Page Follows]

C-II-5

 

 

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.

	 	 	 	 	 
	 	__________________________,

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 

Dated: _________, ____

CERTIFICATE OF AUTHENTICATION

     This is one of the Class SB-[    ] Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	___________________________,

as Certificate Registrar

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

C-II-6

 

 

ASSIGNMENT

FOR VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto

      

      

(Please print or typewrite name and address including postal zip code of assignee) the beneficial
interest evidenced by the within Trust Certificate and hereby authorizes the transfer of
registration of such interest to assignee on the Certificate Register of the Trust Fund.

     I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

 

	 	 	 	 	 
	 	 	 
	Dated:_____________________  	Signature
by or on behalf of assignor

 	 
	 
	 	
Signature Guaranteed

 	 

DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately available fund
to

for the account
of

account number

or, if mailed by check,
to 

     Applicable statements should be mailed to: 

 

      

     This information is provided by _________________________, the assignee named above, or
____________________, as its agent.

 

 

EXHIBIT D

FORM OF CLASS R CERTIFICATE

THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON OR A DISQUALIFIED
ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST” IN A “REAL
ESTATE MORTGAGE INVESTMENT CONDUIT” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”).

[[FOR PRIVATELY OFFERED CLASS R CERTIFICATES ONLY] THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD
OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER
APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
AGREEMENT.]

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES EITHER A
CERTIFICATION PURSUANT TO SECTION 5.02(e) OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO
THE TRUSTEE THAT THE PURCHASE OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE MASTER SERVICER, THE
COMPANY OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
AGREEMENT.

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED
TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER SERVICER AND THE TRUSTEE THAT (1) SUCH
TRANSFEREE IS NOT (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION
OF THE UNITED STATES, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN
INSTRUMENTALITY WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND EXCEPT FOR
FREDDIE MAC, A MAJORITY OF ITS BOARD OF DIRECTORS IS NOT SELECTED BY SUCH GOVERNMENTAL UNIT), (B) A
FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF
THE FOREGOING, (C) ANY ORGANIZATION (OTHER THAN CERTAIN FARMERS’ COOPERATIVES DESCRIBED IN SECTION
521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH
ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING THE TAX IMPOSED BY
SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE INCOME), (D) RURAL ELECTRIC

 

 

AND TELEPHONE COOPERATIVES DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE, (E) AN ELECTING LARGE
PARTNERSHIP UNDER SECTION 775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES
(A), (B), (C), (D) OR (E) BEING HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (F) AN
AGENT OF A DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT
OR COLLECTION OF TAX AND (3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO
THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE
CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A
DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE
DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

	 	 	 

	Certificate No. ____

	 	[                    ]% Pass-Through Rate
	 
	 	 
	Class R Senior 

Date of Pooling and Servicing 

Agreement and Cut-off Date:

                                   1,                  

	 	 Aggregate
Initial Certificate 

Principal Balance of the

 Class R Certificates:

 $100.00
	 
	 	 
	First Distribution Date:

	 	Initial Certificate Principal
	                                    25,                  

	 	Balance of this Certificate:
	 

	 	 $                                        
	 
	 	 
	Master Servicer:

	 	Percentage Interest:
	[                                        ]

	 	                      %
	 
	 	 
	Assumed Final Distribution Date:

                                    25,                  

	 	CUSIP                    -                    

MORTGAGE-BACKED PASS-THROUGH CERTIFICATE,

SERIES ___-___

evidencing a percentage interest in any distributions allocable to the Class R
Certificates with respect to the Trust Fund consisting primarily of a pool of
[conventional one- to four-family fixed interest rate first mortgage loans] formed
and sold by PHOENIX MORTGAGE SECURITIES, LLC

          This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee
referred to below or [___________] or any of their affiliates. Neither this Certificate

 

 

nor the underlying Mortgage Loans are guaranteed or insured by any governmental agency or
instrumentality or by Phoenix Mortgage Securities, LLC, the Master Servicer, the Trustee or
[___________] or any of their affiliates. None of the Company, the Master Servicer, [___________]
or any of their affiliates will have any obligation with respect to any certificate or other
obligation secured by or payable from payments on the Certificates.

          This certifies that                        is the
registered owner of the Percentage Interest evidenced by this Certificate (obtained by dividing the
Initial Certificate Principal Balance of this Certificate by the aggregate Initial Certificate
Principal Balance of all Class R Certificates, both as specified above) in certain distributions
with respect to the Trust Fund consisting primarily of a pool of [conventional one- to four-family
fixed interest rate first mortgage loans] (the “Mortgage Loans”), formed and sold by Phoenix
Mortgage Securities, LLC (hereinafter called the “Company,” which term includes any successor
entity under the Agreement referred to below). The Trust Fund was created pursuant to a Pooling
and Servicing Agreement dated as specified above (the “Agreement”) among the Company, the Master
Servicer and __________________, as trustee (the “Trustee”), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is
bound.

          Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing as described in the Agreement, to the Person in whose name this
Certificate is registered at the close of business on the last day (or if such last day is not a
Business Day, the Business Day immediately preceding such last day) of the month immediately
preceding the month of such distribution (the “Record Date”), from the Available Distribution
Amount in an amount equal to the product of the Percentage Interest evidenced by this Certificate
and the amount (of interest and principal, if any) required to be distributed to Holders of Class R
Certificates on such Distribution Date.

          Each Holder of this Certificate will be deemed to have agreed to be bound by the restrictions
set forth in the Agreement to the effect that (i) each person holding or acquiring any Ownership
Interest in this Certificate must be a United States Person and a Permitted Transferee, (ii) the
transfer of any Ownership Interest in this Certificate will be conditioned upon the delivery to the
Trustee of, among other things, an affidavit to the effect that it is a United States Person and
Permitted Transferee, (iii) any attempted or purported transfer of any Ownership Interest in this
Certificate in violation of such restrictions will be absolutely null and void and will vest no
rights in the purported transferee, and (iv) if any person other than a United States Person and a
Permitted Transferee acquires any Ownership Interest in this Certificate in violation of such
restrictions, then the Company will have the right, in its sole discretion and without notice to
the Holder of this Certificate, to sell this Certificate to a purchaser selected by the Company,
which purchaser may be the Company, or any affiliate of the Company, on such terms and conditions
as the Company may choose.

 

 

          Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose. The Initial
Certificate Principal Balance of this Certificate is set forth above. The Certificate Principal
Balance hereof will be reduced to the extent of distributions allocable to principal and any
Realized Losses allocable hereto. Notwithstanding the reduction of the Certificate Principal
Balance hereof to zero, this Certificate will remain outstanding under the Agreement and the Holder
hereof may have additional obligations with respect to this Certificate, including tax liabilities,
and may be entitled to certain additional distributions hereon, in accordance with the terms and
provisions of the Agreement.

          [[FOR PRIVATELY OFFERED CLASS R CERTIFICATES ONLY] No transfer of this Class SB-[ ]
Certificate will be made unless such transfer is exempt from the registration requirements of the
Securities Act of 1933, as amended, and any applicable state securities laws or is made in
accordance with said Act and laws. In the event that such a transfer is to be made, (i) the Trustee
or the Depositor may require an opinion of counsel acceptable to and in form and substance
satisfactory to the Trustee and the Depositor that such transfer is exempt (describing the
applicable exemption and the basis therefor) from or is being made pursuant to the registration
requirements of the Securities Act of 1933, as amended, and of any applicable statute of any state
and (ii) the transferee shall execute an investment letter in the form described by the Agreement.
The Holder hereof desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee, the Depositor, the Master Servicer and the Certificate Registrar acting on behalf of the
Trustee against any liability that may result if the transfer is not so exempt or is not made in
accordance with such Federal and state laws.]

          No transfer of this Class R Certificate will be made unless the Trustee has received either
(i) an opinion of counsel addressed to the Trustee, the Company and the Master Servicer, acceptable
to and in form and substance satisfactory to the Trustee with respect to the permissibility of such
transfer under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and
Section 4975 of the Internal Revenue Code (the “Code”) and stating, among other things, that the
transferee’s acquisition of a Class R Certificate will not constitute or result in a non-exempt
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or (ii) a
representation letter, in the form as described by the Agreement, stating that the transferee is
not an employee benefit or other plan subject to the prohibited transaction provisions of ERISA or
Section 4975 of the Code (a “Plan”), or any other person (including an investment manager, a named
fiduciary or a trustee of any Plan) acting, directly or indirectly, on behalf of or purchasing any
Certificate with “plan assets” of any Plan.

          This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”).

          The Certificates are limited in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. In
the event Master Servicer funds are advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Master Servicer, to the extent provided in the

 

 

Agreement, from related recoveries on such Mortgage Loan or from other cash that would have
been distributable to Certificateholders.

          As provided in the Agreement, withdrawals from the Custodial Account and/or the Certificate
Account created for the benefit of Certificateholders may be made by the Master Servicer from time
to time for purposes other than distributions to Certificateholders, such purposes including
without limitation reimbursement to the Company and the Master Servicer of advances made, or
certain expenses incurred, by either of them.

          The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Company, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement at any time by the
Company, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

          As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies appointed by the Trustee, duly
endorsed by, or accompanied by an assignment in the form below or other written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly executed by the
Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new
Certificates of authorized denominations evidencing the same Class and aggregate Percentage
Interest will be issued to the designated transferee or transferees.

          The Certificates are issuable only as registered Certificates without coupons in Classes and
in denominations specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new Certificates of authorized
denominations evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

          No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          The Company, the Master Servicer, the Trustee and the Certificate Registrar and any agent of
the Company, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Company, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

 

 

          This Certificate shall be governed by and construed in accordance with the laws of the State
of New York.

          The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject thereto or the
disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan and (ii) the purchase by the Master Servicer from the Trust Fund of all remaining
Mortgage Loans and all property acquired in respect of such Mortgage Loans, thereby effecting early
retirement of the Certificates. The Agreement permits, but does not require, the Master Servicer
to (i) purchase at a price determined as provided in the Agreement all remaining Mortgage Loans and
all property acquired in respect of any Mortgage Loan or (ii) purchase in whole, but not in part,
all of the Certificates from the Holders thereof; provided, that any such option may only be
exercised if the Pool Stated Principal Balance of the Mortgage Loans as of the Distribution Date
upon which the proceeds of any such purchase are distributed is less than ten percent of the
Cut-off Date Principal Balance of the Mortgage Loans.

          Reference is hereby made to the further provisions of this Certificate set forth on the
reverse hereof, which further provisions shall for all purpose have the same effect as if set forth
at this place.

          Unless the certificate of authentication hereon has been executed by the Certificate
Registrar, by manual signature, this Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose.

 

 

          IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly executed.

	 	 	 	 	 
	Dated: 	[____________________________],

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 

CERTIFICATE OF AUTHENTICATION

          This is one of the Class R Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	[____________________________],

as Certificate Registrar

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

 

 

	 	 	 	 	 

ASSIGNMENT

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto                                                 
                                                   
(Please print or typewrite
name and address including postal zip code of assignee) a Percentage Interest evidenced by the
within Mortgage-Backed Pass-Through Certificate and hereby authorizes the transfer of registration
of such interest to assignee on the Certificate Register of the Trust Fund.

          I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

Dated:

	 	 	 	 	 
	 	
Signature by or on behalf of assignor

 	 
	 
	 
	 	
Signature Guaranteed

 	 
	 	 	 

DISTRIBUTION INSTRUCTIONS

          The assignee should include the following for purposes of distribution:

          Distributions shall be made, by wire transfer or otherwise, in immediately available funds to

______________________________
for the account of ______________________
account number
_______________, or, if mailed by check, to
___________________________
Applicable statements should be mailed to

__________________________________.

          This information is provided by                                         , the assignee named
above, or _____________________, as its agent.

 

 

EXHIBIT E

FORM OF SELLER/SERVICER CONTRACT

     This Seller/Servicer Contract (as may be amended, supplemented or otherwise modified from time
to time, this “Contract”) is made this            day of           ,
20          , by and between [_______________], its successors and assigns
(“[_______________]”) and               (the “Seller/Servicer,”                              
and, together with [_______________], the “parties” and each, individually, a “party”).

     WHEREAS, the Seller/Servicer desires to sell Loans to, and/or service Loans for,
[_______________], and [_______________] desires to purchase Loans from the Seller/Servicer and/or
have the Seller/Servicer service various of its Loans, pursuant to the terms of this Contract and
the [_______________] Seller and Servicer Guides incorporated herein by reference, as amended,
supplemented or otherwise modified, from time to time (together, the “Guides”).

     NOW, THEREFORE, in consideration of the premises, and the terms, conditions and agreements set
forth below, the parties agree as follows:

1. Incorporation of Guides by Reference.

     The Seller/Servicer acknowledges that it has received and read the Guides. All provisions of
the Guides are incorporated by reference into and made a part of this Contract, and shall be
binding upon the parties; provided, however, that the Seller/Servicer shall be
entitled to sell Loans to and/or service Loans for [_______________] only if and for so long as it
shall have been authorized to do so by [_______________] in writing. Specific reference in this
Contract to particular provisions of the Guides and not to other provisions does not mean that
those provisions of the Guides not specifically cited in this Contract are not applicable. All
terms used herein shall have the same meanings as such terms have in the Guides, unless the context
clearly requires otherwise.

2. Amendments.

     This Contract may not be amended or modified orally, and no provision of this Contract may be
waived or amended except in writing signed by the party against whom enforcement is sought. Such a
written waiver or amendment must expressly reference this Contract. However, by their terms, the
Guides may be amended or supplemented by [_______________] from time to time. Any such
amendment(s) to the Guides shall be binding upon the parties hereto.

3. Representations and Warranties.

     a. Reciprocal Representations and Warranties.

          The Seller/Servicer and [_______________] each represents and warrants to the other that as of
the date of this Contract:

 

 

	 	(1)	 	Each party is duly organized, validly existing, and in good
standing under the laws of its jurisdiction of organization, is qualified, if
necessary, to do business and in good standing in each jurisdiction in which it
is required to be so qualified, and has the requisite power and authority to
enter into this Contract and all other agreements which are contemplated by
this Contract and to carry out its obligations hereunder and under the Guides
and under such other agreements.

	 	(2)	 	This Contract has been duly authorized, executed and delivered
by each party and constitutes a valid and legally binding agreement of each
party enforceable in accordance with its terms.

	 	(3)	 	There is no action, proceeding or investigation pending or
threatened, and no basis therefor is known to either party, that could affect
the validity or prospective validity of this Contract.

	 	(4)	 	Insofar as its capacity to carry out any obligation under this
Contract is concerned, neither party is in violation of any charter, articles
of incorporation, bylaws, certificates of formation, limited liability company
agreement, mortgage, indenture, indebtedness, agreement, instrument, judgment,
decree, order, statute, rule or regulation and none of the foregoing adversely
affects its capacity to fulfill any of its obligations under this Contract.
Its execution of, and performance pursuant to, this Contract will not result in
a violation of any of the foregoing.

     b. Seller/Servicer’s Representations, Warranties and Covenants.

	 	 	 	In addition to the representations, warranties and covenants made by the
Seller/Servicer pursuant to subparagraph (a) of this paragraph 3, the
Seller/Servicer makes the representations, warranties and covenants set forth in the
Guides and, upon request, agrees to deliver to [_______________] the certified
Resolution of Board of Directors which authorizes the execution and delivery of this
Contract.

4. Remedies of [_______________].

     If an Event of Seller Default or an Event of Servicer Default shall occur, [_______________]
may, at its option, exercise one or more of those remedies set forth in the Guides.

5. Seller/Servicer’s Status as Independent Contractor.

     At no time shall the Seller/Servicer represent that it is acting as an agent of
[_______________]. The Seller/Servicer shall, at all times, act as an independent contractor.

6. Prior Agreements Superseded.

E-2

 

     This Contract restates, amends and supersedes any and all prior Seller Contracts or Servicer
Contracts between the parties except that any subservicing agreement executed by the
Seller/Servicer in connection with any loan-security exchange transaction shall not be affected.

7. Assignment.

     This Contract may not be assigned or transferred, in whole or in part, by the Seller/Servicer
without the prior written consent of [_______________]. [_______________] may sell, assign,
convey, hypothecate, pledge or in any other way transfer, in whole or in part, without restriction,
its rights under this Contract and the Guides with respect to any Commitment or Loan.

8. Notices.

     All notices, requests, demands or other communications that are to be given under this
Contract shall be in writing, addressed to the appropriate parties and sent by telefacsimile or by
overnight courier or by United States mail, postage prepaid, to the addresses and telefacsimile
numbers specified below. However, another name, address and/or telefacsimile number may be
substituted by the Seller/Servicer pursuant to the requirements of this paragraph 8, or
[_______________] pursuant to an amendment to the Guides.

If to [_______________], notices must be sent to the appropriate address or telefacsimile number
specified in the Guides.

If to the Seller/Servicer, notice must be sent to:

                                                
                   
                                                          

                                                
                   
                                                          

                                                
                   
                                                          

     Attention:                                                             
                    
                      

     Telefacsimile Number: (                    )                    -                    

9. Jurisdiction and Venue.

     Each of the parties irrevocably submits to the jurisdiction of any state or federal court
located in [____________], [____________], over any action, suit or proceeding to enforce or defend
any right under this Contract or otherwise arising from any loan sale or servicing relationship
existing in connection with this Contract, and each of the parties irrevocably agrees that all
claims in respect of any such action or proceeding may be heard or determined in such state or
federal court. Each of the parties irrevocably waives the defense of an inconvenient forum to the
maintenance of any such action or proceeding and any other substantive or procedural rights or
remedies it may have with respect to the maintenance of any such action or proceeding in any such
forum. Each of the parties agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other
manner provided by law. Each of the parties further agrees not to institute any legal actions or
proceedings against the other party or any director, officer,

E-3

 

employee, attorney, agent or property of the other party, arising out of or relating to this
Contract in any court other than as hereinabove specified in this paragraph 9.

10. Miscellaneous.

     This Contract, including all documents incorporated by reference herein, constitutes the
entire understanding between the parties hereto and supersedes all other agreements, covenants,
representations, warranties, understandings and communications between the parties, whether written
or oral, with respect to the transactions contemplated by this Contract. All paragraph headings
contained herein are for convenience only and shall not be construed as part of this Contract. Any
provision of this Contract that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining portions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction, and, to this end, the provisions hereof are severable. This
Contract shall be governed by, and construed and enforced in accordance with, applicable federal
laws and the laws of the State of [____________].

E-4

 

     IN WITNESS WHEREOF, the duly authorized officers of the Seller/Servicer and [_______________]
have executed this Seller/Servicer Contract as of the date first above written.

	 	 	 	 	 	 	 

	ATTEST:	 	SELLER/SERVICER
	 
	 	 	 	 	 	 
	[Corporate Seal]	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 	 	(Name of Seller/Servicer)
	 
	 	 	 	 	 	 
	By:

	 	 	By:	 
	 

	 	 
	 	 	 	 
	 

	 	(Signature)
	 	 	 	(Signature)
	By:

	 	 	By:	 
	 

	 	 
	 	 	 	 
	 

	 	(Typed Name)
	 	 	 	(Typed Name)
	 
	Title:

	 	Title:

	 

	 	 
	 	 	 	 

	 	 	 	 	 	 	 

	ATTEST:	 	[_______________]
	 
	 	 	 	 	 	 
	[Corporate Seal]	 	 	 	 
	By:

	 	 	By:	 
	 

	 	 
	 	 	 	 
	 

	 	(Signature)
	 	 	 	(Signature)
	By:

	 	 	By:	 
	 

	 	 
	 	 	 	 
	 

	 	(Typed Name)
	 	 	 	(Typed Name)
	Title:

	 	Title:

	 

	 	 
	 	 	 	 

E-5

 

EXHIBIT F

FORMS OF REQUEST FOR RELEASE

DATE:

TO:

RE: REQUEST FOR RELEASE OF DOCUMENTS

In connection with the administration of the pool of Mortgage Loans held by you for the referenced
pool, we request the release of the Mortgage Loan File described below.

Pooling and Servicing Agreement Dated:

Series#:

Account#:

Pool#:

Loan#:

MIN#:

Borrower Name(s):

Reason for Document Request:    (circle one)

	 	 	 	 	 

	 

	 	Mortgage Loan Prepaid in Full
	 	Mortgage Loan Repurchased

“We hereby certify that all amounts received or to be received in connection with such payments
which are required to be deposited have been or will be so deposited as provided in the Pooling and
Servicing Agreement.”

                                        

[_______________]

Authorized Signature

******************************************************************************

TO CUSTODIAN/TRUSTEE: Please acknowledge this request, and check off documents being enclosed with
a copy of this form. You should retain this form for your files in accordance with the terms of
the Pooling and Servicing Agreement.

	 	 	 	 	 

	Enclosed Documents:

	 	[    ]
	 	Promissory Note
	 

	 	[    ]
	 	Primary Insurance Policy
	 

	 	[    ]
	 	Mortgage or Deed of Trust
	 

	 	[    ]
	 	Assignment(s) of Mortgage or Deed of Trust
	 

	 	[    ]
	 	Title Insurance Policy
	 

	 	[    ]
	 	Other:

Name:                                                            

Title:                                                            

Date:                                                            

 

 

EXHIBIT G-1

FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

	 	 	 	 	 

	STATE OF
	 	)	 	 
	 
	 	)	 	ss.:
	COUNTY OF
	 	)	 	 

          [NAME OF OFFICER], being first duly sworn, deposes and says:

          1. That he is [Title of Officer] of [Name of Owner] (record or beneficial owner of the
Mortgage-Backed Pass-Through Certificates, Series ___-___, Class R (the “Owner”)), a [savings
institution] [corporation] duly organized and existing under the laws of [the State of  ] [the United States], on behalf of which he makes this affidavit
and agreement.

          2. That the Owner (i) is not and will not be a “disqualified organization” or an electing
large partnership as of [date of transfer] within the meaning of Sections 860E(e)(5) and 775,
respectively, of the Internal Revenue Code of 1986, as amended (the “Code”) or an electing large
partnership under Section 775(a) of the Code, (ii) will endeavor to remain other than a
disqualified organization for so long as it retains its ownership interest in the Class R
Certificates, and (iii) is acquiring the Class R Certificates for its own account or for the
account of another Owner from which it has received an affidavit and agreement in substantially the
same form as this affidavit and agreement. (For this purpose, a “disqualified organization” means
an electing large partnership under Section 775 of the Code, the United States, any state or
political subdivision thereof, any agency or instrumentality of any of the foregoing (other than an
instrumentality all of the activities of which are subject to tax and, except for the Federal Home
Loan Mortgage Corporation, a majority of whose board of directors is not selected by any such
governmental entity) or any foreign government, international organization or any agency or
instrumentality of such foreign government or organization, any rural electric or telephone
cooperative, or any organization (other than certain farmers’ cooperatives) that is generally
exempt from federal income tax unless such organization is subject to the tax on unrelated business
taxable income).

          3. That the Owner is aware (i) of the tax that would be imposed on transfers of Class R
Certificates to disqualified organizations or electing large partnerships, under the Code, that
applies to all transfers of Class R Certificates after March 31, 1988; (ii) that such tax would be
on the transferor (or, with respect to transfers to electing large partnerships, on each such
partnership), or, if such transfer is through an agent (which person includes a broker, nominee or
middleman) for a disqualified organization, on the agent; (iii) that the person (other than with
respect to transfers to electing large partnerships) otherwise liable for the tax shall be relieved
of liability for the tax if the transferee furnishes to such person an affidavit that the
transferee is not a disqualified organization and, at the time of transfer, such person does not
have actual knowledge that the affidavit is false; and (iv) that the Class R Certificates may be
“noneconomic residual interests” within the meaning of Treasury regulations promulgated pursuant to
the Code and that the transferor of a noneconomic residual interest will remain liable

G-1-1

 

 

for any taxes due with respect to the income on such residual interest, unless no significant
purpose of the transfer was to impede the assessment or collection of tax.

          4. That the Owner is aware of the tax imposed on a “pass-through entity” holding Class R
Certificates if either the pass-through entity is an electing large partnership under Section 775
of the Code or if at any time during the taxable year of the pass-through entity a disqualified
organization is the record holder of an interest in such entity. (For this purpose, a “pass
through entity” includes a regulated investment company, a real estate investment trust or common
trust fund, a partnership, trust or estate, and certain cooperatives.)

          5. The Owner is either (i) a citizen or resident of the United States, (ii) a corporation,
partnership or other entity treated as a corporation or a partnership for U.S. federal income tax
purposes and created or organized in or under the laws of the United States, any state thereof or
the District of Columbia (other than a partnership that is not treated as a United States person
under any applicable Treasury regulations), (iii) an estate that is described in Section
7701(a)(30)(D) of the Code, or (iv) a trust that is described in Section 7701(a)(30)(E) of the
Code.

          6. The Owner hereby agrees that it will not cause income from the Class R Certificates to be
attributable to a foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of the Owner or another United States taxpayer.

          7. That the Owner is aware that the Trustee will not register the transfer of any Class R
Certificates unless the transferee, or the transferee’s agent, delivers to it an affidavit and
agreement, among other things, in substantially the same form as this affidavit and agreement. The
Owner expressly agrees that it will not consummate any such transfer if it knows or believes that
any of the representations contained in such affidavit and agreement are false.

          8. That the Owner has reviewed the restrictions set forth on the face of the Class R
Certificates and the provisions of Section 5.02(f) of the Pooling and Servicing Agreement under
which the Class R Certificates were issued (in particular, clause (iii)(A) and (iii)(B) of Section
5.02(f) which authorize the Trustee to deliver payments to a person other than the Owner and
negotiate a mandatory sale by the Trustee in the event the Owner holds such Certificates in
violation of Section 5.02(f)). The Owner expressly agrees to be bound by and to comply with such
restrictions and provisions.

          9. That the Owner consents to any additional restrictions or arrangements that shall be deemed
necessary upon advice of counsel to constitute a reasonable arrangement to ensure that the Class R
Certificates will only be owned, directly or indirectly, by an Owner that is not a disqualified
organization.

          10. The Owner’s Taxpayer Identification Number is _______________.

          11. This affidavit and agreement relates only to the Class R Certificates held by the Owner
and not to any other holder of the Class R Certificates. The Owner understands that the
liabilities described herein relate only to the Class R Certificates.

G-2-1

 

 

          12. That no purpose of the Owner relating to the transfer of any of the Class R Certificates
by the Owner is or will be to impede the assessment or collection of any tax; in making this
representation, the Owner warrants that the Owner is familiar with (i) Treasury Regulation Section
1.860E-1(c) and recent amendments thereto, effective as of July 19, 2002, and (ii) the preamble
describing the adoption of the amendments to such regulation, which is attached hereto as Exhibit
1.

          13. That the Owner has no present knowledge or expectation that it will be unable to pay any
United States taxes owed by it so long as any of the Certificates remain outstanding. In this
regard, the Owner hereby represents to and for the benefit of the person from whom it acquired the
Class R Certificate that the Owner intends to pay taxes associated with holding such Class R
Certificate as they become due, fully understanding that it may incur tax liabilities in excess of
any cash flows generated by the Class R Certificate.

          14. That the Owner has no present knowledge or expectation that it will become insolvent or
subject to a bankruptcy proceeding for so long as any of the Class R Certificates remain
outstanding.

          15. The Purchaser is not an employee benefit plan or other plan subject to the prohibited
transaction provisions of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), or Section 4975 of the Code, or an investment manager, named fiduciary or a trustee of
any such plan, or any other Person acting, directly or indirectly, on behalf of or purchasing any
Certificate with “plan assets” of any such plan.

G-3-1

 

 

          IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on its behalf,
pursuant to the authority of its Board of Directors, by its [Title of Officer] and its corporate
seal to be hereunto attached, attested by its [Assistant] Secretary, this            day of
_________________, 201___.

	 	 	 	 	 
	 	[NAME OF OWNER]

 	 
	 	By:  	 	 
	 	 	[Name of Officer] 	 
	 	 	[Title of Officer] 	 
	 
	[Corporate Seal]

ATTEST:

 

	 	 
	
[Assistant] Secretary
	 	 

          Personally appeared before me the above-named [Name of Officer], known or proved to me to be
the same person who executed the foregoing instrument and to be the [Title of Officer] of the
Owner, and acknowledged to me that he executed the same as his free act and deed and the free act
and deed of the Owner.

          Subscribed
and sworn before me this
          
day of _____________ , 201__.

	 	 	 	 	 
	 
	 	
NOTARY PUBLIC

 	 
	 	 	 
	 	 	 
	 	COUNTY
OF 

STATE OF 

     
My Commission expires the            day of

___________, 20__.
 	 
	 	 	 
	 	 	 
	 	 	 
	 

G-4-1

 

 

EXHIBIT 1

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 9004]

RIN 1545-AW98

Real Estate Mortgage Investment Conduits

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

 

SUMMARY: This document contains final regulations relating to safe
harbor transfers of noneconomic residual interests in real estate
mortgage investment conduits (REMICs). The final regulations provide
additional limitations on the circumstances under which transferors may
claim safe harbor treatment.

DATES: Effective Date: These regulations are effective July 19, 2002.

     Applicability Date: For dates of applicability, see Sec. 1.860E-
(1)(c)(10).

FOR FURTHER INFORMATION CONTACT: Courtney Shepardson at (202) 622-3940

(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

G-5-1

 

     The collection of information in this final rule has been reviewed
and, pending receipt and evaluation of public comments, approved by the
Office of Management and Budget (OMB) under 44 U.S.C. 3507 and assigned
control number 1545-1675.

     The collection of information in this regulation is in Sec. 1.860E-
1(c)(5)(ii). This information is required to enable the IRS to verify
that a taxpayer is complying with the conditions of this regulation.
The collection of information is mandatory and is required. Otherwise,
the taxpayer will not receive the benefit of safe harbor treatment as
provided in the regulation. The likely respondents are businesses and
other for-profit institutions.

     Comments on the collection of information should be sent to the
Office of Management and Budget, Attn: Desk Officer for the Department
of the Treasury, Office of Information and Regulatory Affairs,
Washington, DC, 20503, with copies to the Internal Revenue Service,
Attn: IRS Reports Clearance Officer, W:CAR:MP:FP:S, Washington, DC
20224. Comments on the collection of information should be received by
September 17, 2002. Comments are specifically requested concerning:

     Whether the collection of information is necessary for the proper
performance of the functions of the Internal Revenue Service, including
whether the information will have practical utility;

     The accuracy of the estimated burden associated with the collection
of information (see below);

     How the quality, utility, and clarity of the information to be
collected may be enhanced;

     How the burden of complying with the collection of information may
be minimized, including through the application of automated collection
techniques or other forms of information technology; and

     Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of service to provide information.

     An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
control number assigned by the Office of Management and Budget.

     The estimated total annual reporting burden is 470 hours, based on
an estimated number of respondents of 470 and an estimated average
annual burden hours per respondent of one hour.

     Books or records relating to a collection of information must be

G-6-1

 

retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

     This document contains final regulations regarding the proposed
amendments to 26 CFR part 1 under section 860E of the Internal Revenue
Code (Code). The regulations provide the circumstances under which a
transferor of a noneconomic REMIC residual interest meeting the
investigation and representation requirements may avail itself of the
safe harbor by satisfying either the formula test or the asset test.

     Final regulations governing REMICs, issued in 1992, contain rules
governing the transfer of noneconomic REMIC residual interests. In
general, a transfer of a noneconomic residual interest is disregarded
for all tax purposes if a significant purpose of the transfer is to

[[Page 47452]]

enable the transferor to impede the assessment or collection of tax. A
purpose to impede the assessment or collection of tax (a wrongful
purpose) exists if the transferor, at the time of the transfer, either
knew or should have known that the transferee would be unwilling or
unable to pay taxes due on its share of the REMIC‘s taxable income.

     Under a safe harbor, the transferor of a REMIC noneconomic residual
interest is presumed not to have a wrongful purpose if two requirements
are satisfied: (1) the transferor conducts a reasonable investigation
of the transferee’s financial condition (the investigation
requirement); and (2) the transferor secures a representation from the
transferee to the effect that the transferee understands the tax
obligations associated with holding a residual interest and intends to
pay those taxes (the representation requirement).

     The IRS and Treasury have been concerned that some transferors of
noneconomic residual interests claim they satisfy the safe harbor even
in situations where the economics of the transfer clearly indicate the
transferee is unwilling or unable to pay the tax associated with
holding the interest. For this reason, on February 7, 2000, the IRS

G-7-1

 

published in the Federal Register (65 FR 5807) a notice of proposed
rulemaking (REG-100276-97; REG-122450-98) designed to clarify the safe
harbor by adding the ``formula test,’’ an economic test. The proposed
regulation provides that the safe harbor is unavailable unless the
present value of the anticipated tax liabilities associated with
holding the residual interest does not exceed the sum of: (1) The
present value of any consideration given to the transferee to acquire
the interest; (2) the present value of the expected future
distributions on the interest; and (3) the present value of the
anticipated tax savings associated with holding the interest as the
REMIC generates losses.

     The notice of proposed rulemaking also contained rules for FASITs.
Section 1.860H-6(g) of the proposed regulations provides requirements
for transfers of FASIT ownership interests and adopts a safe harbor by
reference to the safe harbor provisions of the REMIC regulations.

     In January 2001, the IRS published Rev. Proc. 2001-12 (2001-3
I.R.B. 335) to set forth an alternative safe harbor that taxpayers
could use while the IRS and the Treasury considered comments on the
proposed regulations. Under the alternative safe harbor, if a
transferor meets the investigation requirement and the representation
requirement but the transfer fails to meet the formula test, the
transferor may invoke the safe harbor if the transferee meets a two-
prong test (the asset test). A transferee generally meets the first
prong of this test if, at the time of the transfer, and in each of the
two years preceding the year of transfer, the transferee’s gross assets
exceed $100 million and its net assets exceed $10 million. A transferee
generally meets the second prong of this test if it is a domestic,
taxable corporation and agrees in writing not to transfer the interest
to any person other than another domestic, taxable corporation that
also satisfies the requirements of the asset test. A transferor cannot
rely on the asset test if the transferor knows, or has reason to know,
that the transferee will not comply with its written agreement to limit
the restrictions on subsequent transfers of the residual interest.

     Rev. Proc. 2001-12 provides that the asset test fails to be
satisfied in the case of a transfer or assignment of a noneconomic
residual interest to a foreign branch of an otherwise eligible
transferee. If such a transfer or assignment were permitted, a

G-8-1

 

corporate taxpayer might seek to claim that the provisions of an
applicable income tax treaty would resource excess inclusion income as
foreign source income, and that, as a consequence, any U.S. tax
liability attributable to the excess inclusion income could be offset
by foreign tax credits. Such a claim would impede the assessment or
collection of U.S. tax on excess inclusion income, contrary to the
congressional purpose of assuring that such income will be taxable in
all events. See, e.g., sections 860E(a)(1), (b), (e) and 860G(b) of the
Code.

     The Treasury and the IRS have learned that certain taxpayers
transferring noneconomic residual interests to foreign branches have
attempted to rely on the formula test to obtain safe harbor treatment
in an effort to impede the assessment or collection of U.S. tax on
excess inclusion income. Accordingly, the final regulations provide
that if a noneconomic residual interest is transferred to a foreign
permanent establishment or fixed base of a U.S. taxpayer, the transfer
is not eligible for safe harbor treatment under either the asset test
or the formula test. The final regulations also require a transferee to
represent that it will not cause income from the noneconomic residual
interest to be attributable to a foreign permanent establishment or
fixed base.

     Section 1.860E-1(c)(8) provides computational rules that a taxpayer
may use to qualify for safe harbor status under the formula test.
Section 1.860E-1(c)(8)(i) provides that the transferee is presumed to
pay tax at a rate equal to the highest rate of tax specified in section
11(b). Some commentators were concerned that this presumed rate of
taxation was too high because it does not take into consideration
taxpayers subject to the alternative minimum tax rate. In light of the
comments received, this provision has been amended in the final
regulations to allow certain transferees that compute their taxable
income using the alternative minimum tax rate to use the alternative
minimum tax rate applicable to corporations.

     Additionally, Sec. 1.860E-1(c)(8)(iii) provides that the present
values in the formula test are to be computed using a discount rate
equal to the applicable Federal short-term rate prescribed by section
1274(d). This is a change from the proposed regulation and Rev. Proc.
2001-12. In those publications the provision stated that “present

G-9-1

 

values are computed using a discount rate equal to the applicable
Federal rate prescribed in section 1274(d) compounded
semiannually”
and that “[a] lower discount rate may be used if the transferee can
demonstrate that it regularly borrows, in the course of its trade or
business, substantial funds at such lower rate from an unrelated third
party.” The IRS and the Treasury Department have learned that, based
on this provision, certain taxpayers have been attempting to use
unrealistically low or zero interest rates to satisfy the formula test,
frustrating the intent of the test. Furthermore, the Treasury
Department and the IRS believe that a rule allowing for a rate other
than a rate based on an objective index would add unnecessary
complexity to the safe harbor. As a result, the rule in the proposed
regulations that permits a transferee to use a lower discount rate, if
the transferee can demonstrate that it regularly borrows substantial
funds at such lower rate, is not included in the final regulations; and
the Federal short-term rate has been substituted for the applicable
Federal rate. To simplify taxpayers’ computations, the final
regulations allow use of any of the published short-term rates,
provided that the present values are computed with a corresponding
period of compounding. With the exception of the provisions relating to
transfers to foreign branches, these changes generally have the
proposed applicability date of February 4, 2000, but taxpayers may
choose to apply the interest rate formula set forth in the proposed
regulation and Rev. Proc. 2001-12 for transfers occurring before August
19, 2002.

     It is anticipated that when final regulations are adopted with
respect to

[[Page 47453]]

FASITs, Sec. 1.860H-6(g) of the proposed regulations will be adopted in
substantially its present form, with the result that the final
regulations contained in this document will also govern transfers of
FASIT ownership interests with substantially the same applicability
date as is contained in this document.

Effect on Other Documents

G-10-1

 

     Rev. Proc. 2001-12 (2001-3 I.R.B. 335) is obsolete for transfers of
noneconomic residual interests in REMICs occurring on or after August
19, 2002.

Special Analyses

     It is hereby certified that these regulations will not have a
significant economic impact on a substantial number of small entities.
This certification is based on the fact that it is unlikely that a
substantial number of small entities will hold REMIC residual
interests. Therefore, a Regulatory Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. It has
been determined that this Treasury decision is not a significant
regulatory action as defined in Executive Order 12866. Therefore, a
regulatory assessment is not required. It also has been determined that
sections 553(b) and 553(d) of the Administrative Procedure Act (5
U.S.C. chapter 5) do not apply to these regulations.

Drafting Information

     The principal author of these regulations is Courtney Shepardson.
However, other personnel from the IRS and Treasury Department
participated in their development.

List of Subjects

26 CFR Part 1

     Income taxes, Reporting and record keeping requirements.

26 CFR Part 602

     Reporting and record keeping requirements.

Adoption of Amendments to the Regulations

G-11-1

 

     Accordingly, 26 CFR parts 1 and 602 are amended as follows:

PART 1—INCOME TAXES

     Paragraph 1. The authority citation for part 1 continues to read in
part as follows:

     Authority: 26 U.S.C. 7805 * * *

G-12-1

 

EXHIBIT G-2

FORM OF TRANSFEROR CERTIFICATE

__________________, 20______

Phoenix Mortgage Securities, LLC

__________________

__________________

__________________

__________________

__________________

__________________

Attention: [_______________] Series ___-___

	 	 	 	 	 

	 

	 	Re:
	 	Mortgage-Backed Pass-Through Certificates,
	 

	 	 	 	Series ___-___, Class R                    
                          

Ladies and Gentlemen:

          This letter is delivered to you in connection with the transfer by __________________ (the “Seller”) to __________________ (the “Purchaser”) of $____________ Initial
Certificate Principal Balance of
Mortgage-Backed Pass-Through Certificates, Series ___-___, Class R (the “Certificates”), pursuant
to Section 5.02 of the Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”), dated as of ___________ 1, ____ among Phoenix Mortgage Securities, LLC, as seller (the “Company”),
[_______________], as master servicer (the “Master Servicer”), and __________________, as trustee
(the “Trustee”). All terms used herein and not otherwise defined shall have the meanings set forth
in the Pooling and Servicing Agreement. The Seller hereby certifies, represents and warrants to,
and covenants with, the Company and the Trustee that:

          1. No purpose of the Seller relating to the transfer of the Certificate by the Seller to the
Purchaser is or will be to impede the assessment or collection of any tax.

          2. The Seller understands that the Purchaser has delivered to the Trustee and the Master
Servicer a transfer affidavit and agreement in the form attached to the Pooling and Servicing
Agreement as Exhibit G-1. The Seller does not know or believe that any representation contained
therein is false.

          3. The Seller has at the time of the transfer conducted a reasonable investigation of the
financial condition of the Purchaser as contemplated by Treasury Regulations Section
1.860E-1(c)(4)(i) and, as a result of that investigation, the Seller has determined that the
Purchaser has historically paid its debts as they become due and has found no significant evidence
to indicate that the Purchaser will not continue to pay its debts as they become due in the future.
The Seller understands that the transfer of a Class R Certificate may

G-2-1

 

not be respected for United States income tax purposes (and the Seller may continue to be
liable for United States income taxes associated therewith) unless the Seller has conducted such an
investigation.

          4. The Seller has no actual knowledge that the proposed Transferee is not both a United States
Person and a Permitted Transferee.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	 	 
	 	(Seller) 	 
	 	 	 	 
	 
	 	 	 
	 	By:
	 
	 	Name: 	
 	 
	 	Title: 	
 	 

G-2-2

 

	 	 	 	 	 

EXHIBIT H

FORM OF INVESTOR REPRESENTATION LETTER

__________________, 20_____

Phoenix Mortgage Securities, LLC

__________________

__________________

__________________

__________________

__________________

__________________

[_______________]

__________________

__________________

__________________

Attention: [_______________] Series ___-___

	 	 	 	 	 

	 

	 	RE:
	 	Mortgage-Backed Pass-Through Certificates,
	 

	 	 	 	Series ___-___, [Class B-][Class P][Class R]

Ladies and Gentlemen:

          __________________(the “Purchaser”) intends to purchase from __________________(the “Seller”) $_____________ Initial Certificate Principal Balance of
Mortgage-Backed Pass-Through Certificates, Series ___-___, Class
$                         (the “Certificates”), issued pursuant to the Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”), dated as of ___________ 1, ____ among Phoenix Mortgage
Securities, LLC, as seller (the “Company”), [_______________], as master servicer (the “Master
Servicer”), and __________________, as trustee (the “Trustee”). All terms used herein and not
otherwise defined shall have the meanings set forth in the Pooling and Servicing Agreement. The
Purchaser hereby certifies, represents and warrants to, and covenants with, the Company, the
Trustee and the Master Servicer that:

     1. The Purchaser understands that (a) the Certificates have not been and will
not be registered or qualified under the Securities Act of 1933, as amended (the
“Act”) or any state securities law, (b) the Company is not required to so register
or qualify the Certificates, (c) the Certificates may be resold only if registered
and qualified pursuant to the provisions of the Act or any state securities law, or
if an exemption from such registration and qualification is available, (d) the
Pooling and Servicing Agreement contains restrictions regarding

 

 

the transfer of the
Certificates and (e) the Certificates will bear a legend to the foregoing effect.

     2. The Purchaser is acquiring the Certificates for its own account for
investment only and not with a view to or for sale in connection with any
distribution thereof in any manner that would violate the Act or any applicable
state securities laws.

     3. The Purchaser is (a) a substantial, sophisticated institutional investor
having such knowledge and experience in financial and business matters, and, in
particular, in such matters related to securities similar to the Certificates, such
that it is capable of evaluating the merits and risks of investment in the
Certificates, (b) able to bear the economic risks of such an investment and (c) an
“accredited investor” within the meaning of Rule 501(a) promulgated pursuant to the
Act.

     4. The Purchaser has been furnished with, and has had an opportunity to review
(a) [a copy of the Private Placement Memorandum, dated                         , 20            , relating to the Certificates (b)] a copy of the
Pooling and Servicing Agreement and [b] [c] such other information concerning the
Certificates, the Mortgage Loans and the Company as has been requested by the
Purchaser from the Company or the Seller and is relevant to the Purchaser’s decision
to purchase the Certificates. The Purchaser has had any questions arising from such
review answered by the Company or the Seller to the satisfaction of the Purchaser.
[If the Purchaser did not purchase the Certificates from the Seller in connection
with the initial distribution of the Certificates and was provided with a copy of
the Private Placement Memorandum (the “Memorandum”) relating to the original sale
(the “Original Sale”) of the Certificates by the Company, the Purchaser acknowledges
that such Memorandum was provided to it by the Seller, that the Memorandum was
prepared by the Company solely for use in connection with the Original Sale and the
Company did not participate in or facilitate in any way the purchase of the
Certificates by the Purchaser from the Seller, and the Purchaser agrees that it will
look solely to the Seller and not to the Company with respect to any damage,
liability, claim or expense arising out of, resulting from or in connection with (a)
error or omission, or alleged error or omission, contained in the Memorandum, or (b)
any information, development or event arising after the date of the Memorandum.]

     5. The Purchaser has not and will not nor has it authorized or will it
authorize any person to (a) offer, pledge, sell, dispose of or otherwise transfer
any Certificate, any interest in any Certificate or any other similar security to
any person in any manner, (b) solicit any offer to buy or to accept a pledge,
disposition of other transfer of any Certificate, any interest in any Certificate or
any other similar security from any person in any manner, (c) otherwise approach or
negotiate with respect to any Certificate, any interest in any Certificate or any
other similar security with any person in any manner, (d) make any general
solicitation by means of general advertising or in any other manner or (e) take any

H-2

 

other action, that (as to any of (a) through (e) above) would constitute a
distribution of any Certificate under the Act, that would render the disposition of
any Certificate a violation of Section 5 of the Act or any state securities law, or
that would require registration or qualification pursuant thereto. The
Purchaser will not sell or otherwise transfer any of the Certificates, except in
compliance with the provisions of the Pooling and Servicing Agreement.

     6. The Purchaser

          (a) is not an employee benefit or other plan subject to the prohibited
transaction provisions of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended
(a “Plan”), or any other person (including an investment manager, a named fiduciary
or a trustee of any Plan) acting, directly or indirectly, on behalf of or purchasing
any Certificate with “plan assets” of any Plan within the meaning of the Department
of Labor (“DOL”) regulation at 29 C.F.R. §2510.3-101, as modified by Section 3(42)
of ERISA; or

          (b) is an insurance company, the source of funds to be used by it to purchase
the Certificates is an “insurance company general account” (within the meaning of
DOL Prohibited Transaction Class Exemption (“PTCE”) 95-60), and the purchase is
being made in reliance upon the availability of the exemptive relief afforded under
Sections I and III of PTCE 95-60.

     In addition, the Purchaser hereby certifies, represents and warrants to, and covenants with,
the Company, the Trustee and the Master Servicer that the Purchaser will not transfer such
Certificates to any Plan or person unless such Plan or person meets the requirements set forth in
either 6(a) or (b) above.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	Name:  	
 	 
	 	Title  	
 	 

H-3

 

EXHIBIT I

FORM OF TRANSFEROR REPRESENTATION LETTER

_____ , 20___

Phoenix Mortgage Securities, LLC

__________________

__________________

__________________

__________________

__________________

__________________

Attention: [_______________] Series ___-___

	 	 	 	 	 

	 

	 	Re:
	 	Mortgage-Backed Pass-Through Certificates,
	 

	 	 	 	Series ___-___, [Class B-][Class P][Class R]

Ladies and Gentlemen:

          In connection with the sale by                        (the “Seller”) to            
(the “Purchaser”) of $                       Initial Certificate Principal Balance of Mortgage-Backed Pass-Through
Certificates, Series ___-___, Class (the “Certificates”), issued pursuant to the Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”), dated as of ___________ 1, ____ among
Phoenix Mortgage Securities, LLC, as seller (the “Company”), [_______________], as master servicer,
and __________________, as trustee (the “Trustee”). The Seller hereby certifies, represents and
warrants to, and covenants with, the Company and the Trustee that:

          Neither the Seller nor anyone acting on its behalf has (a) offered, pledged, sold, disposed of
or otherwise transferred any Certificate, any interest in any Certificate or any other similar
security to any person in any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise approached or negotiated with
respect to any Certificate, any interest in any Certificate or any other similar security with any
person in any manner, (d) has made any general solicitation by means of general advertising or in
any other manner, or (e) has taken any other action, that (as to any of (a) through (e) above)
would constitute a distribution of the Certificates under the Securities Act of 1933 (the “Act”),
that would render the disposition of any Certificate a violation of Section 5 of the Act or any
state securities law, or that would require registration or qualification pursuant thereto. The
Seller will not act, in any manner set forth in the foregoing sentence with respect to any
Certificate. The Seller has not and will not sell or otherwise transfer any of the Certificates,
except in compliance with the provisions of the Pooling and Servicing Agreement.

 

 

	 	 	 	 	 
	 	Very truly yours,
 	 
	 	 	 
	 	(Seller)	 
	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	Name:  	
 	 
	 	Title:  	
 	 

I-2

 

	 	 	 	 	 

EXHIBIT J

[FORM OF RULE 144A INVESTMENT REPRESENTATION]

Description of Rule 144A Securities, including numbers:

____________________________________________

____________________________________________

____________________________________________

____________________________________________

          The undersigned seller, as registered holder (the “Seller”), intends to transfer the Rule
144A Securities described above to the undersigned buyer (the “Buyer”).

          1. In connection with such transfer and in accordance with the agreements pursuant to which
the Rule 144A Securities were issued, the Seller hereby certifies the following facts: Neither the
Seller nor anyone acting on its behalf has offered, transferred, pledged, sold or otherwise
disposed of the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar
security to, or solicited any offer to buy or accept a transfer, pledge or other disposition of the
Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security from,
or otherwise approached or negotiated with respect to the Rule 144A Securities, any interest in the
Rule 144A Securities or any other similar security with, any person in any manner, or made any
general solicitation by means of general advertising or in any other manner, or taken any other
action, that would constitute a distribution of the Rule 144A Securities under the Securities Act
of 1933, as amended (the “1933 Act”), or that would render the disposition of the Rule 144A
Securities a violation of Section 5 of the 1933 Act or require registration pursuant thereto, and
that the Seller has not offered the Rule 144A Securities to any person other than the Buyer or
another “qualified institutional buyer” as defined in Rule 144A under the 1933 Act.

          2. The Buyer warrants and represents to, and covenants with, the Seller, the Trustee and the
Master Servicer (as defined in the Pooling and Servicing Agreement (the “Agreement”), dated as of
___________ 1, ____ among [_______________] as Master Servicer, Phoenix Mortgage Securities, LLC as
depositor pursuant to Section 5.02 of the Agreement and __________________, as trustee, as follows:

          (a) The Buyer understands that the Rule 144A Securities have not been registered under
the 1933 Act or the securities laws of any state.

          (b) The Buyer considers itself a substantial, sophisticated institutional investor
having such knowledge and experience in financial and business matters that it is capable of
evaluating the merits and risks of investment in the Rule 144A Securities.

 

 

          (c) The Buyer has been furnished with all information regarding the Rule 144A
Securities that it has requested from the Seller, the Trustee or the Servicer.

          (d) Neither the Buyer nor anyone acting on its behalf has offered, transferred,
pledged, sold or otherwise disposed of the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security to, or solicited any offer to buy or accept a
transfer, pledge or other disposition of the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security from, or otherwise approached or negotiated
with respect to the Rule 144A Securities, any interest in the Rule 144A Securities or any
other similar security with, any person in any manner, or made any general solicitation by
means of general advertising or in any other manner, or taken any other action, that would
constitute a distribution of the Rule 144A Securities under the 1933 Act or that would
render the disposition of the Rule 144A Securities a violation of Section 5 of the 1933 Act
or require registration pursuant thereto, nor will it act, nor has it authorized or will it
authorize any person to act, in such manner with respect to the Rule 144A Securities.

          (e) The Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A
under the 1933 Act and has completed either of the forms of certification to that effect
attached hereto as Annex 1 or Annex 2. The Buyer is aware that the sale to it is being made
in reliance on Rule 144A. The Buyer is acquiring the Rule 144A Securities for its own
account or the accounts of other qualified institutional buyers, understands that such Rule
144A Securities may be resold, pledged or transferred only (i) to a person reasonably
believed to be a qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the resale, pledge
or transfer is being made in reliance on Rule 144A, or (ii) pursuant to another exemption
from registration under the 1933 Act.

     [3. The Buyer

          [(a) is not an employee benefit or other plan subject to the prohibited transaction
provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or
Section 4975 of the Internal Revenue Code of 1986, as amended (a “Plan”), or any other
person (including an investment manager, a named fiduciary or a trustee of any Plan) acting,
directly or indirectly, on behalf of or purchasing any Certificate with “plan assets” of any
Plan within the meaning of the Department of Labor (“DOL”) regulation at 29 C.F.R. §
2510.3-101, as modified by Section 3(42) of ERISA]1; or

          (b) is an insurance company, the source of funds to be used by it to purchase the
Certificates is an “insurance company general account” (within the meaning of DOL Prohibited
Transaction Class Exemption (“PTCE”) 95-60), and the purchase is

 

			
	1	 	Only paragraph (a) for Class P Certificates.

J-2

 

being made in reliance upon the availability of the exemptive relief afforded under
Sections I and III of PTCE
95-60.]2

     4. This document may be executed in one or more counterparts and by the different
parties hereto on separate counterparts, each of which, when so executed, shall be deemed to
be an original; such counterparts, together, shall constitute one and the same document.

          IN WITNESS WHEREOF, each of the parties has executed this document as of the date set forth
below.

	 	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Print Name of Seller	 	 	 	Print Name of Buyer
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 
	 	 	 	 	 
	 

	Name:
	 	 	 	 	Name:
	 

	Title:
	 	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	Taxpayer Identification	 	 	 	Taxpayer Identification:
	 
	 	 	 	 	 	 	 	 
	No.

	 	 	 	 	 	No:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

 

			
	2	 	Class B Certificateholders may represent to
either (a) or (b).

J-3

 

ANNEX 1 TO EXHIBIT J

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Buyers Other Than Registered Investment Companies]

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

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

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

	 	o	 	Corporation, etc. The Buyer is a corporation (other than a bank,
savings and loan association or similar institution), Massachusetts or similar business
trust, partnership, or charitable organization described in Section 501(c)(3) of the
Internal Revenue Code.
	 
	 	o	 	Bank. The Buyer (a) is a national bank or banking institution
organized under the laws of any State, territory or the District of Columbia, the
business of which is substantially confined to banking and is supervised by the State
or territorial banking commission or similar official or is a foreign bank or
equivalent institution, and (b) has an audited net worth of at least $25,000,000 as
demonstrated in its latest annual financial statements, a copy of which is attached
hereto.
	 
	 	o	 	Savings and Loan. The Buyer (a) is a savings and loan association,
building and loan association, cooperative bank, homestead association or similar
institution, which is supervised and examined by a State or Federal authority having
supervision over any such institutions or is a foreign savings and loan association or
equivalent institution and (b) has an audited net worth of at least $25,000,000 as
demonstrated in its latest annual financial statements.
	 
	 	o	 	Broker-Dealer. The Buyer is a dealer registered pursuant to Section
15 of the Securities Exchange Act of 1934.
	 
	 	o	 	Insurance Company. The Buyer is an insurance company whose primary
and predominant business activity is the writing of insurance or the reinsuring of
risks underwritten by insurance companies and which is subject to supervision by the
insurance commissioner or a similar official or agency of a State or territory or the
District of Columbia.

 

 

	 	o	 	State or Local Plan. The Buyer is a plan established and maintained
by a State, its political subdivisions, or any agency or instrumentality of the State
or its political subdivisions, for the benefit of its employees.
	 
	 	o	 	ERISA Plan. The Buyer is an employee benefit plan within the meaning
of Title I of the Employee Retirement Income Security Act of 1974.
	 
	 	o	 	Investment Adviser. The Buyer is an investment adviser registered
under the Investment Advisers Act of 1940.
	 
	 	o	 	SBIC. The Buyer is a Small Business Investment Company licensed by
the U.S. Small Business Administration under Section 301(c) or (d) of the Small
Business Investment Act of 1958.
	 
	 	o	 	Business Development Company. The Buyer is a business development
company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.
	 
	 	o	 	Trust Fund. The Buyer is a trust fund whose trustee is a bank or
trust company and whose participants are exclusively (a) plans established and
maintained by a State, its political subdivisions, or any agency or instrumentality of
the State or its political subdivisions, for the benefit of its employees, or (b)
employee benefit plans within the meaning of Title I of the Employee Retirement Income
Security Act of 1974, but is not a trust fund that includes as participants individual
retirement accounts or H.R. 10 plans.

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

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

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

 

 

	 	 	 	 	 

	o	 	o	 	Will the Buyer be purchasing the Rule 144A
	Yes

	 	No
	 	Securities only for the Buyer’s own account?

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

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

	 	 	 	 	 
	 	 	 
	 	Print Name of Buyer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	  	 	 
	 	Date:  	 	 

 

 

	 	 	 	 	 

ANNEX 2 TO EXHIBIT J

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Buyers That Are Registered Investment Companies]

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

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

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

	 	o	 	The Buyer owned $       in securities (other than the excluded securities referred
to below) as of the end of the Buyer’s most recent fiscal year (such amount being
calculated in accordance with Rule 144A).
	 
	 	o	 	The Buyer is part of a Family of Investment Companies which owned in the
aggregate $       in securities (other than the excluded securities referred to below) as of
the end of the Buyer’s most recent fiscal year (such amount being calculated in
accordance with Rule 144A).

          10. The term “Family of Investment Companies” as used herein means two or more
registered investment companies (or series thereof) that have the same investment adviser or
investment advisers that are affiliated (by virtue of being majority owned subsidiaries of the same
parent or because one investment adviser is a majority owned subsidiary of the other).

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

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

 

 

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

	 	 	 	 	 
	 	
Print Name of Buyer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	IF AN ADVISER:

 	 
	 	Print Name of Buyer

 	 
	 	Date:  	 	 
	 	 	 	 
	 	 	 	 

 

 

	 	 	 	 	 

EXHIBIT K

[TEXT OF AMENDMENT TO POOLING AND SERVICING

AGREEMENT PURSUANT TO SECTION 11.01(E) FOR A

LIMITED GUARANTY]

ARTICLE XIII

Subordinate Certificate Loss Coverage; Limited Guaranty

          Section 13.01. Subordinate Certificate Loss Coverage; Limited Guaranty. (a) Subject
to subsection (c) below, prior to the later of the third Business Day prior to each Distribution
Date or the related Determination Date, the Master Servicer shall determine whether it or any
Sub-Servicer will be entitled to any reimbursement pursuant to Section 4.02(a) on such Distribution
Date for Advances or Sub-Servicer Advances previously made, (which will not be Advances or
Sub-Servicer Advances that were made with respect to delinquencies which were subsequently
determined to be Excess Special Hazard Losses, Excess Fraud Losses, Excess Bankruptcy Losses or
Extraordinary Losses) and, if so, the Master Servicer shall demand payment from [_______________]
of an amount equal to the amount of any Advances or Sub-Servicer Advances reimbursed pursuant to
Section 4.02(a), to the extent such Advances or Sub-Servicer Advances have not been included in the
amount of the Realized Loss in the related Mortgage Loan, and shall distribute the same to the
Class B Certificateholders in the same manner as if such amount were to be distributed pursuant to
Section 4.02(a).

          (b) Subject to subsection (c) below, prior to the later of the third Business Day prior to
each Distribution Date or the related Determination Date, the Master Servicer shall determine
whether any Realized Losses (other than Excess Special Hazard Losses, Excess Bankruptcy Losses,
Excess Fraud Losses and Extraordinary Losses) will be allocated to the Class B Certificates on such
Distribution Date pursuant to Section 4.05, and, if so, the Master Servicer shall demand payment
from [_______________] of the amount of such Realized Loss and shall distribute the same to the
Class B Certificateholders in the same manner as if such amount were to be distributed pursuant to
Section 4.02(a); provided, however, that the amount of such demand in respect of
any Distribution Date shall in no event be greater than the sum of (i) the additional amount of
Accrued Certificate Interest that would have been paid for the Class B Certificateholders on such
Distribution Date had such Realized Loss or Losses not occurred plus (ii) the amount of the
reduction in the Certificate Principal Balances of the Class B Certificates on such Distribution
Date due to such Realized Loss or Losses. Notwithstanding such payment, such Realized Losses shall
be deemed to have been borne by the Certificateholders for purposes of Section 4.05. Excess
Special Hazard Losses, Excess Fraud Losses, Excess Bankruptcy Losses and Extraordinary Losses
allocated to the Class B Certificates will not be covered by the Subordinate Certificate Loss
Obligation.

          (c) Demands for payments pursuant to this Section shall be made prior to the later of the
third Business Day prior to each Distribution Date or the related Determination Date by the Master
Servicer with written notice thereof to the Trustee. The maximum amount that [_______________]
shall be required to pay pursuant to this Section on any Distribution Date

 

 

(the “Amount Available”) shall be equal to the lesser of (X)  minus
the sum of (i) all previous payments made under subsections (a) and (b) hereof and (ii) all draws
under the Limited Guaranty made in lieu of such payments as described below in subsection (d) and
(Y) the then outstanding Certificate Principal Balances of the Class B Certificates, or such lower
amount as may be established pursuant to Section 13.02. [_______________]’s obligations as
described in this Section are referred to herein as the “Subordinate Certificate Loss Obligation.”

     (d) The Trustee will promptly notify [________] of any failure of [_______________] to make
any payments hereunder and shall demand payment pursuant to the limited guaranty (the “Limited
Guaranty”), executed by [________], of [_______________]’s obligation to make payments pursuant to
this Section, in an amount equal to the lesser of (i) the Amount Available and (ii) such required
payments, by delivering to [________] a written demand for payment by wire transfer, not later than
the second Business Day prior to the Distribution Date for such month, with a copy to the Master
Servicer.

     (e) All payments made by [_______________] pursuant to this Section or amounts paid under the
Limited Guaranty shall be deposited directly in the Certificate Account, for distribution on the
Distribution Date for such month to the Class B Certificateholders.

     (f) The Company shall have the option, in its sole discretion, to substitute for either or
both of the Limited Guaranty or the Subordinate Certificate Loss Obligation another instrument in
the form of a corporate guaranty, an irrevocable letter of credit, a surety bond, insurance policy
or similar instrument or a reserve fund; provided that (i) the Company obtains (subject to the
provisions of Section 10.01(f) as if the Company was
substituted for the Master Servicer
solely for the purposes of such provision) an Opinion of Counsel (which need not be an opinion of
Independent counsel) to the effect that obtaining such substitute corporate guaranty, irrevocable
letter of credit, surety bond, insurance policy or similar instrument or reserve fund will not
cause either (a) any federal tax to be imposed on the Trust Fund, including without limitation, any
federal tax imposed on “prohibited transactions” under Section 860(F)(a)(1) of the Code or on
“contributions after the startup date” under Section 860(G)(d)(1) of the Code or (b) the Trust Fund
to fail to qualify as a REMIC at any time that any Certificate is outstanding, and (ii) no such
substitution shall be made unless (A) the substitute Limited Guaranty or Subordinate Certificate
Loss Obligation is for an initial amount not less than the then current Amount Available and
contains provisions that are in all material respects equivalent to the original Limited Guaranty
or Subordinate Certificate Loss Obligation (including that no portion of the fees, reimbursements
or other obligations under any such instrument will be borne by the Trust Fund), (B) the long term
debt obligations of any obligor of any substitute Limited Guaranty or Subordinate Certificate Loss
Obligation (if not supported by the Limited Guaranty) shall be rated at least the lesser of (a) the
rating of the long term debt obligations of [________] as of the date of issuance of the Limited
Guaranty and (b) the rating of the long term debt obligations of [________] at the date of such
substitution and (C) the Company obtains written confirmation from each nationally recognized
credit rating agency that rated the Class B Certificates at the request of the Company that such
substitution shall not lower the rating on the Class B Certificates below the lesser of (a)
the then-current rating assigned to the Class B Certificates by such rating agency and (b) the
original rating assigned to the Class B Certificates by such rating agency. Any replacement of the
Limited Guaranty or Subordinate Certificate Loss Obligation pursuant to this Section shall be
accompanied by a written Opinion of Counsel to the substitute

K-2

 

guarantor or obligor, addressed to the Master Servicer and the Trustee, that such substitute
instrument constitutes a legal, valid and binding obligation of the substitute guarantor or
obligor, enforceable in accordance with its terms, and concerning such other matters as the Master
Servicer and the Trustee shall reasonably request. Neither the Company, the Master Servicer nor
the Trustee shall be obligated to substitute for or replace the Limited Guaranty or Subordinate
Certificate Loss Obligation under any circumstance.

          Section 13.02. Amendments Relating to the Limited Guaranty. Notwithstanding Sections
11.01 or 13.01: (i) the provisions of this Article XIII may be amended, superseded or deleted, (ii)
the Limited Guaranty or Subordinate Certificate Loss Obligation may be amended, reduced or
canceled, and (iii) any other provision of this Agreement which is related or incidental to the
matters described in this Article XIII may be amended in any manner; in each case by written
instrument executed or consented to by the Company and [_______________] but without the consent of
any Certificateholder and without the consent of the Master Servicer or the Trustee being required
unless any such amendment would impose any additional obligation on, or otherwise adversely affect
the interests of, the Master Servicer or the Trustee, as applicable; provided that the
Company shall also obtain a letter from each nationally recognized credit rating agency that rated
the Class B Certificates at the request of the Company to the effect that such amendment,
reduction, deletion or cancellation will not lower the rating on the Class B Certificates below the
lesser of (a) the then-current rating assigned to the Class B Certificates by such rating agency
and (b) the original rating assigned to the Class B Certificates by such rating agency, unless (A)
the Holder of 100% of the Class B Certificates is [_______________] or an Affiliate of
[_______________], or (B) such amendment, reduction, deletion or cancellation is made in accordance
with Section 11.01(e) and, provided further that the Company obtains (subject to the provisions of
Section 10.01(f) as if the Company was substituted for the Master Servicer solely for the purposes
of such provision), in the case of a material amendment or supercession (but not a reduction,
cancellation or deletion of the Limited Guaranty or the Subordinate Certificate Loss Obligation),
an Opinion of Counsel (which need not be an opinion of Independent counsel) to the effect that any
such amendment or supercession will not cause either (a) any federal tax to be imposed on the Trust
Fund, including without limitation, any federal tax imposed on “prohibited transactions” under
Section 860F(a)(1) of the Code or on “contributions after the startup date” under Section
860G(d)(1) of the Code or (b) the Trust Fund to fail to qualify as a REMIC at any time that any
Certificate is outstanding. A copy of any such instrument shall be provided to the Trustee and the
Master Servicer together with an Opinion of Counsel that such amendment complies with this Section
13.02.

K-3

 

EXHIBIT L

[FORM OF LIMITED GUARANTY]

LIMITED GUARANTY

PHOENIX MORTGAGE SECURITIES, LLC

Mortgage-Backed Pass-Through Certificates

Series ___-___

___, 201_

__________________

__________________

__________________

Attention: [_______________] Series ___-___

Ladies and Gentlemen:

          WHEREAS, [_______________], a Delaware limited liability company (“[_______________]”), an
indirect wholly-owned subsidiary of [________], a Delaware limited liability company (“[____]”),
plans to incur certain obligations as described under Section 13.01 of the Pooling and Servicing
Agreement dated as of ___________ 1, ____ (the “Servicing Agreement”), among Phoenix Mortgage
Securities, LLC (the “Company”), [_______________] and __________________ (the “Trustee”) as
amended by Amendment No.  thereto, dated as of , with respect
to the Mortgage-Backed Pass-Through Certificates, Series ___-___ (the “Certificates”); and

          WHEREAS, pursuant to Section 13.01 of the Servicing Agreement, [_______________] agrees to
make payments to the Holders of the Class B Certificates with respect to certain losses on the
Mortgage Loans as described in the Servicing Agreement; and

          WHEREAS, [____] desires to provide certain assurances with respect to the ability of
[_______________] to secure sufficient funds and faithfully to perform its Subordinate Certificate
Loss Obligation;

          NOW THEREFORE, in consideration of the premises herein contained and certain other good and
valuable consideration, the receipt of which is hereby acknowledged, [____] agrees as follows:

          1. Provision of Funds. (a) [____] agrees to contribute and deposit in the Certificate
Account on behalf of [_______________] (or otherwise provide to [_______________], or to cause to
be made available to [_______________]), either directly or through a subsidiary, in any case prior
to the related Distribution Date, such moneys as may be

 

 

required by [_______________] to perform its Subordinate Certificate Loss Obligation when and
as the same arises from time to time upon the demand of the Trustee in accordance with Section
13.01 of the Servicing Agreement.

          (b) The agreement set forth in the preceding clause (a) shall be absolute, irrevocable and
unconditional and shall not be affected by the transfer by [____] or any other person of all or any
part of its or their interest in [_______________], by any insolvency, bankruptcy, dissolution or
other proceeding affecting [_______________] or any other person, by any defense or right of
counterclaim, set-off or recoupment that [____] may have against [_______________] or any other
person or by any other fact or circumstance. Notwithstanding the foregoing, [____]’s obligations
under clause (a) shall terminate upon the earlier of (x) substitution for this Limited Guaranty
pursuant to Section 13.01(f) of the Servicing Agreement, or (y) the termination of the Trust Fund
pursuant to the Servicing Agreement.

          2. Waiver. [____] hereby waives any failure or delay on the part of
[_______________], the Trustee or any other person in asserting or enforcing any rights or in
making any claims or demands hereunder. Any defective or partial exercise of any such rights shall
not preclude any other or further exercise of that or any other such right. [____] further waives
demand, presentment, notice of default, protest, notice of acceptance and any other notices with
respect to this Limited Guaranty, including, without limitation, those of action or nonaction on
the part of [_______________] or the Trustee.

          3. Modification, Amendment and Termination. This Limited Guaranty may be modified,
amended or terminated only by the written agreement of [____] and the Trustee and only if such
modification, amendment or termination is permitted under Section 13.02 of the Servicing Agreement.
The obligations of [____] under this Limited Guaranty shall continue and remain in effect so long
as the Servicing Agreement is not modified or amended in any way that might affect the obligations
of [____] under this Limited Guaranty without the prior written consent of [____].

          4. Successor. Except as otherwise expressly provided herein, the guarantee herein set
forth shall be binding upon [____] and its respective successors.

          5. Governing Law. This Limited Guaranty shall be governed by the laws of the State of
New York.

          6. Authorization and Reliance. [____] understands that a copy of this Limited
Guaranty shall be delivered to the Trustee in connection with the execution of Amendment No. 1 to
the Servicing Agreement and [____] hereby authorizes the Company and the Trustee to rely on the
covenants and agreements set forth herein.

          7. Definitions. Capitalized terms used but not otherwise defined herein shall have
the meaning given them in the Servicing Agreement.

          8. Counterparts. This Limited Guaranty may be executed in any number of counterparts,
each of which shall be deemed to be an original and such counterparts shall constitute but one and
the same instrument.

L-2

 

          IN WITNESS WHEREOF, [____] has caused this Limited Guaranty to be executed and delivered by
its respective officers thereunto duly authorized as of the day and year first above written.

	 	 	 	 	 
	 	[________]

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Acknowledged by:

	__________________,

as Trustee

	 	 	 	 	 
	 	 
	By:  	 	 
	Name:  	 	 
	Title:  	 	 
	 
	PHOENIX MORTGAGE SECURITIES, LLC

 	 
	By:  	 	 
	Name:  	 	 
	Title:  	 	 

L-3

 

	 	 	 	 	 

EXHIBIT M

FORM OF LENDER CERTIFICATION FOR ASSIGNMENT OF MORTGAGE LOAN

____________, 20_

Phoenix Mortgage Securities, LLC

__________________

__________________

__________________

__________________

__________________

__________________

Attention: [_______________] Series ___-___

          Re:   Mortgage-Backed Pass-Through
Certificates,

                   Series      -      Assignment of Mortgage
Loan

Ladies and Gentlemen:

          This letter is delivered to you in connection with the assignment by
__________________
(the “Trustee”) to __________________ (the
“Lender”) of ____________
(the “Mortgage Loan”) pursuant to Section 3.13(d)
of the Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”), dated as of
___________ 1, ____ among Phoenix Mortgage Securities, LLC, as seller (the “Company”),
[_______________], as Master Servicer, and the Trustee. All terms used herein and not otherwise
defined shall have the meanings set forth in the Pooling and Servicing Agreement. The Lender
hereby certifies, represents and warrants to, and covenants with, the Master Servicer and the
Trustee that:

     (i) the Mortgage Loan is secured by Mortgaged Property located in a jurisdiction in which an
assignment in lieu of satisfaction is required to preserve lien priority, minimize or avoid
mortgage recording taxes or otherwise comply with, or facilitate a refinancing under, the laws of
such jurisdiction;

     (ii) the substance of the assignment is, and is intended to be, a refinancing of such Mortgage
Loan and the form of the transaction is solely to comply with, or facilitate the transaction under,
such local laws;

     (iii) the Mortgage Loan following the proposed assignment will be modified to have a rate of
interest at least 0.25 percent below or above the rate of interest on such Mortgage Loan prior to
such proposed assignment; and

     (iv) such assignment is at the request of the borrower under the related Mortgage Loan.

 

 

	 	 	 	 	 
	 	Very truly yours,
 	 
	 
	 	(Lender) 	 
	 
	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

M-2

 

	 	 	 	 	 

EXHIBIT N

FORM OF REQUEST FOR EXCHANGE

[DATE]

__________________

__________________

__________________

          Re:   Phoenix Mortgage Securities, LLC,

                   Mortgage-Backed Pass-Through Certificates,

                   Series -                             

          [_______________], as the Holder of a % Percentage Interest of the [Interest
Only/Class A-V][-1] Certificates, hereby requests the Trustee to exchange the above-referenced
Certificates for the Subclasses referred to below:

	 	 	 	 
		1.	 	[Interest Only/Class A-V]- Certificates,
corresponding to the following Uncertificated REMIC Regular Interests: [List
numbers corresponding to the related loans and Pool Strip Rates from the
Mortgage Loan Schedule]. The initial Subclass Notional Amount and the Initial
Pass-Through Rate on the [Interest Only/Class A-V]- Certificates will
be $ ____________ and ______%, respectively.
	 
	 	2. 	 	[Repeat as appropriate.]

          The Subclasses requested above will represent in the aggregate all of the Uncertificated REMIC
Regular Interests represented by the [Interest Only/Class A-V][-1] Certificates surrendered for
exchange.

          All capitalized terms used but not defined herein shall have the meanings set forth in the
Pooling and Servicing Agreement, dated as of ___________ 1, ____, among Phoenix Mortgage
Securities, LLC, [_______________] and __________________, as trustee.

	 	 	 	 	 
	 	[_______________]

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

 

 

	 	 	 	 	 

EXHIBIT O

Form of Form 10-K Certification

     I, [identify the certifying individual], certify that:

     1. I have reviewed this report on Form 10-K and all reports on Form 10-D required to be filed
in respect of the period covered by this report on Form 10-K of the trust (the “Exchange Act
periodic reports”) created pursuant to the Series Supplement dated ___________________ to the
Standard Terms of Pooling and Servicing Agreement dated ____________________ (together, the “P&S
Agreement”) among Phoenix Mortgage Securities, LLC, [_______________] (the “Master Servicer”) and
[Name of Trustee] (the “Trustee”);

     2. Based on my knowledge, the Exchange Act periodic reports, taken as a whole, do not contain
any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

     3. Based on my knowledge, all of the distribution, servicing and other information required to
be provided under Form 10-D for the period covered by this report is included in the Exchange Act
periodic reports;

     4. I am responsible for reviewing the activities performed by the Master Servicer and based on
my knowledge and the compliance review conducted in preparing the servicer compliance statement
required in this report under Item 1123 of Regulation AB, and except a disclosed in the Exchange
Act periodic reports, the Master Servicer has fulfilled its obligations under the P&S Agreement;
and

     5. All of the reports on assessment of compliance with servicing criteria for asset-backed
securities and their related attestation reports on assessment of compliance with servicing
criteria for asset-backed securities required to be included in this report in accordance with Item
1122 of Regulation AB and Exchange Act Rules 13a-18 and 15d-18 have been included as an exhibit to
this report, except as otherwise disclosed in this report. Any material instances of noncompliance
described in such reports have been disclosed in this report on Form 10-K.

     In giving the certifications above, I have reasonably relied on the information provided to me
by the following unaffiliated parties: [the Trustee].

	 	 	 	 	 

	Date:
	 	 	 	 
	 

	 	 

	 	 

____________________________*

[Signature]

[Title:]

 

			
	*	 	to be signed by the senior officer in charge of the servicing functions of the Master Servicer

 

 

EXHIBIT P

[FORM OF BACK-UP CERTIFICATION TO FORM 10-K CERTIFICATE]

     The undersigned, a Responsible Officer of [_________] (the “Trustee”) certifies that:

     (a) The Trustee has performed all of the duties specifically required to be performed by it
pursuant to the provisions of the Pooling and Servicing Agreement dated as of [_________], 20[__]
(the “Agreement”) by and among [__________], as depositor, [_______________], as Master Servicer,
and the Trustee in accordance with the standards set forth therein.

     (b) Based on my knowledge, the list of Certificateholders as shown on the Certificate Register
as of the end of each calendar year that is provided by the Trustee pursuant to the Agreement is
accurate as of the last day of the 20[__] calendar year.

Capitalized terms used and not defined herein shall have the meanings given such terms in the
Agreement.

     IN WITNESS WHEREOF, I have duly executed this certificate as of _________, 20_.]

	 	 	 	 	 
	 	 	 
	 	Name:  	
 	 
	 	Title:  	
 	 

 

 

	 	 	 	 	 

EXHIBIT Q

INFORMATION TO BE PROVIDED BY THE MASTER SERVICER TO THE RATING 

AGENCIES RELATING TO REPORTABLE
MODIFIED MORTGAGE LOANS

Account number

Transaction Identifier

Unpaid Principal Balance prior to Modification

Next Due Date

Monthly Principal and Interest Payment

Total Servicing Advances

Current Interest Rate

Original Maturity Date

Original Term to Maturity (Months)

Remaining Term to Maturity (Months)

Trial Modification Indicator

Mortgagor Equity Contribution

Total Servicer Advances

Trial Modification Term (Months)

Trial Modification Start Date

Trial Modification End Date

Trial Modification Period Principal and Interest Payment

Trial Modification Interest Rate

Trial Modification Term

Rate Reduction Indicator

Interest Rate Post Modification

Rate Reduction Start Date

Rate Reduction End Date

Rate Reduction Term

Term Modified Indicator

Modified Amortization Period

Modified Final Maturity Date

Total Advances Written Off

Unpaid Principal Balance Written Off

Other Past Due Amounts Written Off

Write Off Date

Unpaid Principal Balance Post Write Off

Capitalization Indicator

Mortgagor Contribution

Total Capitalized Amount

Modification Close Date

Unpaid Principal Balance Post Capitalization Modification

Next Payment Due Date per Modification Plan

Principal and Interest Payment Post Modification

Interest Rate Post Modification

Payment Made Post Capitalization

Delinquency Status to Modification Plan

 

 

EXHIBIT R

SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     The assessment of compliance to be delivered by the Trustee shall address, at a minimum, the
criteria identified as below as “Applicable Servicing Criteria”:

	 	 	 	 	 
	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	 	 	Criteria	 	
	Reference	 	General Servicing Considerations	 	 
	1122(d)(1)(i)

	 	Policies and procedures are instituted to monitor any performance or
other triggers and events of default in accordance with the transaction
agreements.	 	 
	 
	 	 	 	 
	1122(d)(1)(ii)

	 	If any material servicing activities are outsourced to third
parties, policies and procedures are instituted to monitor the third
party’s performance and compliance with such servicing activities.	 	 
	 
	 	 	 	 
	1122(d)(1)(iii)

	 	Any requirements in the transaction agreements to maintain a back-up
servicer for the pool assets are maintained.	 	 
	 
	 	 	 	 
	1122(d)(1)(iv)

	 	A fidelity bond and errors and omissions policy is in effect on the
party participating in the servicing function throughout the reporting
period in the amount of coverage required by and otherwise in accordance
with the terms of the transaction agreements.	 	 
	 
	 	 	 	 
	 

	 	Cash Collection and Administration	 	 
	 
	 	 	 	 
	1122(d)(2)(i)

	 	Payments on pool assets are deposited into the appropriate custodial
bank accounts and related bank clearing accounts no more than two
business days following receipt, or such other number of days specified
in the transaction agreements.
	 	 ü (as to accounts held
by Trustee)
	 
	 	 	 	 
	1122(d)(2)(ii)

	 	Disbursements made via wire transfer on behalf of an obligor or to
an investor are made only by authorized personnel.
	 	ü (as to investors only)
	 
	 	 	 	 
	1122(d)(2)(iii)

	 	Advances of funds or guarantees regarding collections, cash flows or
distributions, and any interest or other fees charged for such advances,
are made, reviewed and approved as specified in the transaction
agreements.	 	 
	 
	 	 	 	 
	1122(d)(2)(iv)

	 	The related accounts for the transaction, such as cash reserve
accounts or accounts established as a form of overcollateralization, are
separately maintained (e.g., with respect to commingling of cash) as set
forth in the transaction agreements.
	 	ü (as to accounts held
by Trustee)
	 
	 	 	 	 
	1122(d)(2)(v)

	 	Each custodial account is maintained at a federally insured
depository institution as set forth in the transaction agreements. For
purposes of this criterion, “federally insured depository institution”
with respect to a foreign financial institution means a foreign
financial institution that meets the requirements of Rule 13k-1(b)(1) of
the Securities Exchange Act.	 	 
	 
	 	 	 	 
	1122(d)(2)(vi)

	 	Unissued checks are safeguarded so as to prevent unauthorized access.	 	 
	 
	 	 	 	 
	1122(d)(2)(vii)

	 	Reconciliations are prepared on a monthly basis for all asset-backed
securities related bank accounts, including custodial accounts and
related bank clearing accounts. These reconciliations are (A)
mathematically accurate; (B) prepared within 30 calendar days after the
bank statement cutoff date, or such other number of days specified in
the transaction agreements; (C) reviewed and approved by someone other
than the person who prepared the reconciliation; and (D) contain
explanations for reconciling items. These reconciling items are resolved
within 90 calendar days of their original identification, or such other
number of days specified in the transaction agreements.	 	 

R-1

 

	 	 	 	 	 
	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	 	 	Criteria	 	
	Reference	 	Investor Remittances and Reporting	 	 
	1122(d)(3)(i)

	 	Reports to investors, including those to be filed with the
Commission, are maintained in accordance with the transaction agreements
and applicable Commission requirements. Specifically, such reports (A)
are prepared in accordance with timeframes and other terms set forth in
the transaction agreements; (B) provide information calculated in
accordance with the terms specified in the transaction agreements; (C)
are filed with the Commission as required by its rules and regulations;
and (D) agree with investors’ or the trustee’s records as to the total
unpaid principal balance and number of pool assets serviced by the
servicer.	 	 
	 
	 	 	 	 
	1122(d)(3)(ii)

	 	Amounts due to investors are allocated and remitted in accordance
with timeframes, distribution priority and other terms set forth in the
transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(3)(iii)

	 	Disbursements made to an investor are posted within two business
days to the servicer’s investor records, or such other number of days
specified in the transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(3)(iv)

	 	Amounts remitted to investors per the investor reports agree with
cancelled checks, or other form of payment, or custodial bank
statements.
	 	ü
	 
	 	 	 	 
	 

	 	Pool Asset Administration	 	 
	 
	 	 	 	 
	1122(d)(4)(i)

	 	Collateral or security on pool assets is maintained as required by
the transaction agreements or related asset pool documents.	 	 
	 
	 	 	 	 
	1122(d)(4)(ii)

	 	Pool assets and related documents are safeguarded as required by the
transaction agreements	 	 
	 
	 	 	 	 
	1122(d)(4)(iii)

	 	Any additions, removals or substitutions to the asset pool are made,
reviewed and approved in accordance with any conditions or requirements
in the transaction agreements.	 	 
	 
	 	 	 	 
	1122(d)(4)(iv)

	 	Payments on pool assets, including any payoffs, made in accordance
with the related pool asset documents are posted to the servicer’s
obligor records maintained no more than two business days after receipt,
or such other number of days specified in the transaction agreements,
and allocated to principal, interest or other items (e.g., escrow) in
accordance with the related pool asset documents.	 	 
	 
	 	 	 	 
	1122(d)(4)(v)

	 	The servicer’s records regarding the pool assets agree with the
servicer’s records with respect to an obligor’s unpaid principal
balance.	 	 
	 
	 	 	 	 
	1122(d)(4)(vi)

	 	Changes with respect to the terms or status of an obligor’s pool
asset (e.g., loan modifications or re-agings) are made, reviewed and
approved by authorized personnel in accordance with the transaction
agreements and related pool asset documents.	 	 
	 
	 	 	 	 
	1122(d)(4)(vii)

	 	Loss mitigation or recovery actions (e.g., forbearance plans,
modifications and deeds in lieu of foreclosure, foreclosures and
repossessions, as applicable) are initiated, conducted and concluded in
accordance with the timeframes or other requirements established by the
transaction agreements.	 	 
	 
	 	 	 	 
	1122(d)(4)(viii)

	 	Records documenting collection efforts are maintained during the
period a pool asset is delinquent in accordance with the transaction
agreements. Such records are maintained on at least a monthly basis, or
such other period specified in the transaction agreements, and describe
the entity’s activities in monitoring delinquent pool assets including,
for example, phone calls, letters and payment rescheduling plans in
cases where delinquency is deemed temporary (e.g., illness or
unemployment).	 	 
	 
	 	 	 	 
	1122(d)(4)(ix)

	 	Adjustments to interest rates or rates of return for pool assets
with variable rates are computed based on the related pool asset
documents.	 	 
	 
	 	 	 	 
	1122(d)(4)(x)

	 	Regarding any funds held in trust for an obligor (such as escrow
accounts): (A) such funds are analyzed, in accordance with the obligor’s
pool asset documents, on at least an annual basis, or such other period
specified in the transaction agreements; (B) interest on such funds is
paid, or credited, to obligors in accordance with applicable pool asset
documents and state laws; and (C) such funds are returned to the obligor
within 30 calendar days of full repayment of the related pool asset, or
such other number of days specified in the transaction agreements.	 	 

R-2

 

	 	 	 	 	 
	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	 	 	Criteria	 	
	Reference	 	 	 	 
	1122(d)(4)(xi)

	 	Payments made on behalf of an obligor (such as tax or insurance
payments) are made on or before the related penalty or expiration dates,
as indicated on the appropriate bills or notices for such payments,
provided that such support has been received by the servicer at least 30
calendar days prior to these dates, or such other number of days
specified in the transaction agreements.	 	 
	 
	 	 	 	 
	1122(d)(4)(xii)

	 	Any late payment penalties in connection with any payment to be made
on behalf of an obligor are paid from the servicer’s funds and not
charged to the obligor, unless the late payment was due to the obligor’s
error or omission.	 	 
	 
	 	 	 	 
	1122(d)(4)(xiii)

	 	Disbursements made on behalf of an obligor are posted within two
business days to the obligor’s records maintained by the servicer, or
such other number of days specified in the transaction agreements.	 	 
	 
	 	 	 	 
	1122(d)(4)(xiv)

	 	Delinquencies, charge-offs and uncollectible accounts are recognized
and recorded in accordance with the transaction agreements.	 	 
	 
	 	 	 	 
	1122(d)(4)(xv)

	 	Any external enhancement or other support, identified in Item
1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as
set forth in the transaction agreements.
	 	ü
	 
	 	 	 	 

R-3

 

EXHIBIT FIVE

Planned Principal Balances and Targeted Principal Balances

	 	 	 	 	 
	 	 	Schedule I	 	Schedule II
	 	 	Planned Principal	 	Targeted Principal
	 	 	Balances for	 	Balances for
	Distribution Date	 	Class I-A-1 Certificates	 	Class I-A-2 Certificates
	 

	 	 
	 	 

 

 

EXHIBIT SIX

Jump Scheduled Balance

	 	 	 	 	 	 	 
	 	 	Class I-A-12 Jump	 	 	 	Class I-A-12 Jump
	Distribution Date	 	Scheduled Balance	 	Distribution Date	 	Scheduled Balanceexv4w3

EXHIBIT 4.3

PRS SERIES 20[__]-[__] TRUST,

Issuer,

and

[________________],

Indenture Trustee

________________________

INDENTURE

________________________

Dated as of [__________], 20[__]

PRS MORTGAGE-BACKED NOTES

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I Definitions
	 	 	1	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Incorporation by Reference of Trust Indenture Act
	 	 	2	 
	Section 1.03 Rules of Construction
	 	 	2	 
	 
	ARTICLE II Original Issuance of Notes
	 	 	3	 
	Section 2.01 Form
	 	 	3	 
	Section 2.02 Execution, Authentication and Delivery
	 	 	3	 
	 
	ARTICLE III Covenants
	 	 	4	 
	Section 3.01 Collection of Payments with Respect to the Mortgage Loans
	 	 	4	 
	Section 3.02 Maintenance of Office or Agency
	 	 	4	 
	Section 3.03 Money for Payments to Be Held in Trust; Paying Agent
	 	 	4	 
	Section 3.04 Existence
	 	 	5	 
	Section 3.05 Priority of Distributions; Defaulted Interest
	 	 	6	 
	Section 3.06 Protection of Trust Estate
	 	 	9	 
	Section 3.07 Opinions as to Trust Estate
	 	 	9	 
	Section 3.08 Performance of Obligations; Servicing Agreement
	 	 	10	 
	Section 3.09 Negative Covenants
	 	 	10	 
	Section 3.10 Annual Statement as to Compliance
	 	 	11	 
	Section 3.11 Recordation of Assignments
	 	 	11	 
	Section 3.12 Representations and Warranties Concerning the Mortgage Loans
	 	 	11	 
	Section 3.13 Assignee of Record of the Mortgage Loans
	 	 	12	 
	Section 3.14 Servicer as Agent and Bailee of the Indenture Trustee
	 	 	12	 
	Section 3.15 Investment Company Act
	 	 	12	 
	Section 3.16 Issuer May Consolidate, etc.
	 	 	12	 
	Section 3.17 Successor or Transferee
	 	 	14	 
	Section 3.18 No Other Business
	 	 	14	 
	Section 3.19 No Borrowing
	 	 	14	 
	Section 3.20 Guarantees, Loans, Advances and Other Liabilities
	 	 	14	 
	Section 3.21 Capital Expenditures
	 	 	14	 
	Section 3.22 Owner Trustee Not Liable for Certificates or Related Documents
	 	 	14	 
	Section 3.23 Restricted Payments
	 	 	15	 
	Section 3.24 Notice of Events of Default
	 	 	15	 
	Section 3.25 Further Instruments and Acts
	 	 	15	 
	Section 3.26 Statements to Noteholders
	 	 	15	 
	Section 3.27 [Reserved]
	 	 	 	 
	Section 3.28 [Reserved]
	 	 	 	 
	Section 3.29 [Reserved]
	 	 	 	 

I

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 3.30 Additional Representations of Issuer
	 	 	16	 
	Section 3.31 Allocation of Losses
	 	 	16	 
	 
	ARTICLE IV The Notes; Satisfaction And Discharge Of Indenture
	 	 	17	 
	Section 4.01 The Notes
	 	 	17	 
	Section 4.02 Registration of and Limitations on Transfer and Exchange of Notes;
Appointment of Certificate Registrar
	 	 	18	 
	Section 4.03 Mutilated, Destroyed, Lost or Stolen Notes
	 	 	19	 
	Section 4.04 Persons Deemed Owners
	 	 	20	 
	Section 4.05 Cancellation
	 	 	20	 
	Section 4.06 Book-Entry Notes
	 	 	20	 
	Section 4.07 Notices to Depository
	 	 	21	 
	Section 4.08 Definitive Notes
	 	 	21	 
	Section 4.09 Tax Treatment
	 	 	21	 
	Section 4.10 Satisfaction and Discharge of Indenture
	 	 	21	 
	Section 4.11 Application of Trust Money
	 	 	23	 
	Section 4.12 [Reserved]
	 	 	23	 
	Section 4.13 Repayment of Monies Held by Paying Agent
	 	 	23	 
	Section 4.14 Temporary Notes
	 	 	23	 
	 
	ARTICLE V Default And Remedies
	 	 	23	 
	Section 5.01 Events of Default
	 	 	23	 
	Section 5.02 Acceleration of Maturity; Rescission and Annulment
	 	 	23	 
	Section 5.03 Collection of Indebtedness and Suits for Enforcement by Indenture
Trustee
	 	 	24	 
	Section 5.04 Remedies; Priorities
	 	 	26	 
	Section 5.05 Optional Preservation of the Trust Estate
	 	 	28	 
	Section 5.06 Limitation of Suits
	 	 	28	 
	Section 5.07 Unconditional Rights of Noteholders to Receive Principal and
Interest
	 	 	29	 
	Section 5.08 Restoration of Rights and Remedies
	 	 	29	 
	Section 5.09 Rights and Remedies Cumulative
	 	 	29	 
	Section 5.10 Delay or Omission Not a Waiver
	 	 	29	 
	Section 5.11 Control by Noteholders
	 	 	29	 
	Section 5.12 Waiver of Past Defaults
	 	 	30	 
	Section 5.13 Undertaking for Costs
	 	 	30	 
	Section 5.14 Waiver of Stay or Extension Laws
	 	 	31	 
	Section 5.15 Sale of Trust Estate
	 	 	31	 
	Section 5.16 Action on Notes
	 	 	32	 
	Section 5.17 Performance and Enforcement of Certain Obligations
	 	 	32	 

II

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VI The Indenture Trustee
	 	 	33	 
	Section 6.01 Duties of Indenture Trustee
	 	 	33	 
	Section 6.02 Rights of Indenture Trustee
	 	 	35	 
	Section 6.03 Individual Rights of Indenture Trustee
	 	 	36	 
	Section 6.04 Indenture Trustee’s Disclaimer
	 	 	36	 
	Section 6.05 Notice of Event of Default
	 	 	36	 
	Section 6.06 Reports by Indenture Trustee to Noteholders
	 	 	36	 
	Section 6.07 Compensation and Indemnity
	 	 	36	 
	Section 6.08 Replacement of Indenture Trustee
	 	 	37	 
	Section 6.09 Successor Indenture Trustee by Merger
	 	 	38	 
	Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture
Trustee
	 	 	38	 
	Section 6.11 Eligibility; Disqualification
	 	 	40	 
	Section 6.12 Preferential Collection of Claims Against Issuer
	 	 	40	 
	Section 6.13 Representations and Warranties
	 	 	40	 
	Section 6.14 Directions to Indenture Trustee
	 	 	40	 
	Section 6.15 Indenture Trustee May Own Securities
	 	 	41	 
	ARTICLE VII Noteholders’ Lists and Reports
	 	 	41	 
	Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses of
Noteholders
	 	 	41	 
	Section 7.02 Preservation of Information; Communications to Noteholders
	 	 	41	 
	Section 7.03 Reports by Issuer
	 	 	41	 
	Section 7.04 Reports by Indenture Trustee
	 	 	42	 
	Section 7.05 Exchange Act Reporting
	 	 	42	 
	ARTICLE VIII Accounts, Disbursements and Releases
	 	 	42	 
	Section 8.01 Collection of Money
	 	 	43	 
	Section 8.02 Trust Accounts
	 	 	43	 
	Section 8.03 Officer’s Certificate
	 	 	43	 
	Section 8.04 Termination Upon Distribution to Noteholders
	 	 	44	 
	Section 8.05 Release of Trust Estate
	 	 	44	 
	Section 8.06 Surrender of Notes Upon Final Payment
	 	 	44	 
	ARTICLE IX Supplemental Indentures
	 	 	44	 
	Section 9.01 Supplemental Indentures Without Consent of Noteholders
	 	 	44	 
	Section 9.02 Supplemental Indentures With Consent of Noteholders
	 	 	46	 
	Section 9.03 Execution of Supplemental Indentures
	 	 	47	 
	Section 9.04 Effect of Supplemental Indenture
	 	 	47	 
	Section 9.05 Conformity with Trust Indenture Act
	 	 	47	 
	Section 9.06 Reference in Notes to Supplemental Indentures
	 	 	48	 

III

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE X Miscellaneous
	 	 	48	 
	Section 10.01 Compliance Certificates and Opinions, etc.
	 	 	48	 
	Section 10.02 Form of Documents Delivered to Indenture Trustee
	 	 	50	 
	Section 10.03 Acts of Noteholders
	 	 	50	 
	Section 10.04 Notices, etc., to Indenture Trustee, Issuer and Rating Agencies
	 	 	51	 
	Section 10.05 Notices to Noteholders; Waiver
	 	 	51	 
	Section 10.06 Alternate Payment and Notice Provisions
	 	 	52	 
	Section 10.07 Conflict with Trust Indenture Act
	 	 	52	 
	Section 10.08 Effect of Headings
	 	 	52	 
	Section 10.09 Successors and Assigns
	 	 	52	 
	Section 10.10 Severability
	 	 	52	 
	Section 10.11 Benefits of Indenture
	 	 	53	 
	Section 10.12 Legal Holidays
	 	 	53	 
	Section 10.13 GOVERNING LAW
	 	 	53	 
	Section 10.14 Counterparts
	 	 	53	 
	Section 10.15 Recording of Indenture
	 	 	53	 
	Section 10.16 Issuer Obligation
	 	 	53	 
	Section 10.17 No Petition
	 	 	54	 
	Section 10.18 Inspection
	 	 	54	 
	Section 10.19 Exchange Act Rule 17g-5 Procedures
	 	 	54	 

	 	 	 	 	 

	EXHIBITS

	 	 	 	 
	Exhibit A

	 	—
	 	Form of Class A Notes
	Appendix A

	 	—
	 	Definitions

IV

 

RECONCILIATION AND TIE BETWEEN TRUST INDENTURE

ACT OF 1939 AND INDENTURE PROVISIONS*

			
	Trust Indenture	 	 
	Act Section
	 	Indenture Section
	 
	310(a)(1)
	 	6.11
	(a)(2)
	 	6.11
	(a)(3)
	 	6.10
	(a)(4)
	 	Not Applicable
	(a)(5)
	 	6.11
	(b)
	 	6.08, 6.11
	(c)
	 	Not Applicable
	311(a)
	 	6.12
	(b)
	 	6.12
	(c)
	 	Not Applicable
	312(a)
	 	7.01, 7.02(a)
	(b)
	 	7.02(b)
	(c)
	 	7.02(c)
	313(a)
	 	7.04
	(b)
	 	7.04
	(c)
	 	7.03(a)(iii), 7.04
	(d)
	 	7.04
	314(a)
	 	3.10, 7.03(a)
	(b)
	 	3.07
	(c)(1)
	 	8.05(c), 10.01(a)
	(c)(2)
	 	8.05(c), 10.01(a)
	(c)(3)
	 	Not Applicable
	(d)(1)
	 	8.05(c), 10.01(b)
	(d)(2)
	 	8.05(c), 10.01(b)
	(d)(3)
	 	8.05(c), 10.01(b)
	(e)
	 	10.01(a)
	315(a)
	 	6.01(b)
	(b)
	 	6.05
	(c)
	 	6.01(a)
	(d)
	 	6.01(c)
	(d)(1)
	 	6.01(c)
	(d)(2)
	 	6.01(c)
	(d)(3)
	 	6.01(c)
	(e)
	 	5.13
	316(a)(1)(A)
	 	5.11
	316(a)(1)(B)
	 	5.12
	316(a)(2)
	 	Not Applicable
	316(b)
	 	5.07
	317(a)(1)
	 	5.04
	317(a)(2)
	 	5.03(d)
	317(b)
	 	3.03(a)
	318(a)
	 	10.07

 

			
	*	 	This reconciliation and tie shall not, for any
purpose, be deemed to be part of the within indenture.

 

 

     This Indenture, dated as of [__________], 20[__], is between PRS Series 20[__]-[__]
Trust, a Delaware statutory trust, as issuer (the “Issuer”), and [________________], as indenture
trustee (the “Indenture Trustee”).

WITNESSETH:

     Each party hereto agrees as follows for the benefit of the other party and for the equal and
ratable benefit of the Noteholders of the Issuer’s Series 20[__]-[__] PRS Mortgage-Backed Notes
(the “Notes”).

GRANTING CLAUSE:

     The Issuer hereby Grants to the Indenture Trustee on the Closing Date, as trustee for the
benefit of the Noteholders, all of the Issuer’s right, title and interest in and to all accounts,
chattel paper, general intangibles, contract rights, payment intangibles, certificates of deposit,
deposit accounts, instruments, documents, letters of credit, money, advices of credit, investment
property, goods and other property consisting of, arising under or related to whether now existing
or hereafter created in any of the following: (a) the Mortgage Loans, and all monies due or to
become due thereunder; (b) the Custodial Account and Note Payment Account, , and all funds on
deposit or credited thereto from time to time; (c) all hazard insurance policies; (d) all present
and future claims, demands, causes and choses in action in respect of any or all of the foregoing
and all payments on or under, and all proceeds of every kind and nature whatsoever in respect of,
any or all of the foregoing and all payments on or under, and all proceeds of every kind and nature
whatsoever in the conversion thereof, voluntary or involuntary, into cash or other liquid property,
all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, checks, deposit
accounts, rights to payment of any and every kind, and other forms of obligations and receivables,
instruments and other property which at any time constitute all or part of or are included in the
proceeds of any of the foregoing (collectively, the “Trust Estate” or the “Collateral”).

     The foregoing Grant is made in trust to secure the payment of principal of and interest on,
and any other amounts owing in respect of, the Notes, equally and ratably without prejudice,
priority or distinction, and to secure compliance with the provisions of this Indenture, all as
provided in this Indenture.

     The Indenture Trustee, as trustee on behalf of the Noteholders, acknowledges such Grant,
accepts the trust under this Indenture in accordance with the provisions hereof and agrees to
perform its duties as Indenture Trustee as required herein.

ARTICLE I

Definitions

     Section 1.01 Definitions. For all purposes of this Indenture, except as otherwise
expressly provided herein or unless the context otherwise requires, capitalized terms not otherwise
defined herein shall have the
meanings assigned to such terms in the Definitions

1

 

attached hereto as Appendix A, which is
incorporated by reference herein. All other capitalized terms used herein shall have the meanings
specified herein.

     Section 1.02 Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the Trust Indenture Act (the “TIA”), such provision is incorporated by
reference in and made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings:

          “Commission” means the Securities and Exchange Commission.

          “indenture securities” means the Notes.

          “indenture security holder” means a Noteholder.

          “indenture to be qualified” means this Indenture.

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

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

          All other TIA terms used in this Indenture that are defined by TIA, defined by TIA reference
to another statute or defined by Commission rule have the meaning assigned to them by such
definitions.

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

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

          (b) 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;

          (c) “or” includes “and/or”;

          (d) “including” means “including without limitation”;

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

          (f) the term “proceeds” has the meaning ascribed thereto in the UCC; and

          (g) 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.

2

 

ARTICLE II

Original Issuance of Notes

     Section 2.01 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, and 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 the Notes, as
evidenced by their execution thereof. Any portion of the text of any Note may be set forth on the
reverse thereof, with an appropriate reference thereto on the face of such Note.

     The Notes shall be typewritten, printed, lithographed or engraved or produced by any
combination of these methods, all as determined by the Authorized Officers executing such Notes, as
evidenced by their execution of such Notes.

     The terms of the Class A Notes set forth in Exhibit A are part of the terms of this Indenture.

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

     Notes bearing the manual or facsimile signature of individuals who were at any time Authorized
Officers of the 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 upon Issuer Request authenticate and deliver Notes for
original issue in an amount equal to the Initial Aggregate Note Balance. The Class A-I-1,
Class A-I-2, Class A-I-3 and Class A-II Notes shall have
initial principal amounts of the Initial Class A-I-1 Note Balance, Initial Class A-I-2 Note
Balance, Initial Class A-I-3 Note Balance and Initial Class A-II Note Balance, respectively.

     Each Note shall be dated the date of its authentication. The Notes shall be issuable as
registered Book-Entry Notes, and the Notes shall be issuable in minimum denominations of $25,000
and 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 on such Note a certificate of authentication substantially in the
form provided for herein executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be conclusive evidence, and the
only evidence, that such Note has been duly authenticated and delivered hereunder.

3

 

ARTICLE III

Covenants

     Section 3.01 Collection of Payments with Respect to the Mortgage Loans. The Indenture
Trustee shall establish and maintain with itself the Note Payment Account in which the Indenture
Trustee shall, subject to the terms of this paragraph, deposit, on the same day as it is received
from the Servicer, each remittance received by the Indenture Trustee with respect to the Mortgage
Loans. The Indenture Trustee shall make all payments of principal of and interest on the Notes,
subject to Section 3.03 as provided in Section 3.05 herein from monies on deposit in the Note
Payment Account.

     Section 3.02 Maintenance of Office or Agency.
The Issuer will maintain in the City of
[________], [________], an office or agency where, subject to satisfaction of conditions set forth
herein, Notes may be surrendered for registration of transfer or exchange, and where notices and
demands to or upon the Issuer in respect of the Notes and this Indenture may be served. The Issuer
hereby initially appoints the Indenture Trustee to serve as its agent for the foregoing purposes.
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 3.03 Money for Payments to Be Held in Trust; Paying Agent. As provided in Section
3.01, all payments of amounts due and payable with respect to any Notes that are to be made from
amounts withdrawn from the Note Payment Account pursuant to Section 3.01 shall be made on behalf of
the Issuer by the Indenture Trustee or by the Paying Agent, and no amounts so withdrawn from the
Note Payment Account for payments of Notes shall be paid over to the Issuer except as provided in
this Section 3.03. The Issuer hereby appoints the Indenture Trustee to act as initial Paying Agent
hereunder. The Issuer will cause each Paying Agent other than the Indenture Trustee to execute and
deliver to the Indenture Trustee an instrument in which such Paying Agent shall agree with the
Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject
to the provisions of this Section 3.03, that such Paying Agent will:

          (a) 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;

          (b) give the Indenture Trustee written notice of any default by the Issuer of which it has
actual knowledge in the making of any payment required to be made with respect to the Notes;

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

4

 

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

          (e) 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; and

          (f) deliver to the Indenture Trustee a copy of the statement to Noteholders prepared with
respect to each Payment Date by the Servicer pursuant to Section 4.01 of the Servicing Agreement.

     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 Request direct any Paying Agent to pay to the
Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the
Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent;
and upon such payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Subject to applicable laws with respect to escheat of funds, any money held by the Indenture
Trustee or any Paying Agent in trust for the payment of any amount due with respect to any Note and
remaining unclaimed for one year after such amount has become due and payable shall be discharged
from such trust and be paid to the Issuer on Issuer Request; and the Noteholder 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 or
such Paying Agent with respect to such trust money shall thereupon cease; provided, however, that
the Indenture Trustee or such Paying Agent, before being required to make any such repayment, shall
at the expense and direction of the Issuer cause to be published once, in an Authorized Newspaper,
notice that such money remains unclaimed and that, after a date specified therein, which shall not
be less than 30 days from the date of such publication, any unclaimed balance of such money then
remaining will be repaid to the Issuer. The Indenture Trustee may also adopt and employ, at the
expense and direction of the Issuer, any other reasonable means of notification of such repayment
(including, but not limited to, mailing notice of such repayment to Noteholders of the Notes which
have been called but have not been surrendered for redemption or whose right to or interest in
monies due and payable but not claimed is determinable from the records of the Indenture Trustee or
of any Paying Agent, at the last address of record for each such Noteholder).

     Section 3.04 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 Notes, the Mortgage Loans and each other instrument or
agreement included in the Trust Estate.

5

 

     Section 3.05 Priority of Distributions; Defaulted Interest.

          (a) In accordance with Section 3.03(a) of the Servicing Agreement, the priority of
distributions on each Payment Date from Principal Collections and Interest Collections with respect
to the Mortgage Loans and any optional advance of delinquent principal or interest on the Mortgage
Loans made by the Servicer in respect of the related Collection Period, is as follows:

          (i) from Interest Collections related to Loan Group I, to pay accrued
and unpaid interest, pro rata, due on the Note Balances of the Class A-I-1, Class
A-I-2 and Class A-I-3 Notes and from Interest Collections related to Loan Group II,
to pay accrued and unpaid interest due on the Note Balance of the
Class A-II Notes;

          (ii) from Principal Collections for Loan Group I, to
pay accrued and unpaid interest, pro rata, due on the Note Balances of the Class
A-I-1, Class A-I-2 and Class A-I-3 Notes and from Principal Collections related to Loan Group II, to pay accrued and unpaid interest, pro rata, due on the Note Balance of the Class A-II Notes;

          (iii)
from Principal Collections for Loan Group I, to pay as principal on the Class A-I-1, Class A-I-2 and Class A-I-3 Notes (pro rata) in an amount equal to the Group I Principal Distribution
 Amount for that payment date, in each case until the related Note Balance thereof has been reduced to zero;

          (iv) from Principal Collections for Loan Group II, to pay as principal on the Class A-II Notes in an amount equal to the Group II Principal Distribution Amount
for that payment date, in each case until the Note Balance thereof has been reduced to
zero;

          (v) from Excess Spread, to pay as principal on the Class A-I-1, Class A-I-2 and
Class A-I-3 Notes (pro rata) any Group I Liquidation Loss Distribution Amount for that
payment date, in each case until the related Note Balance thereof has been reduced to
zero, and to pay as principal on the Class A-II Notes any Group II Liquidation Loss
Distribution Amount for that payment date, in each case until the Note Balance thereof
has been reduced to zero;

          (vi)
from remaining Excess Spread, to pay as reimbursement to the Class A-I-1, Class A-I-2,
Class A-I-3 and Class A-II Notes, pro rata, any Liquidation Loss Amounts previously
allocated thereto that remains unreimbursed;

          (vii) from remaining Excess
Spread, to pay as principal on the Class A-I-1 Notes, Class A-I-2 and Class
A-I-3 Notes (pro rata) any
Group I Overcollateralization Increase Amount for that payment date, in each case until
the related Note Balance thereof has been reduced to zero, and to
pay as principal on the Class A-II Notes any Group II Overcollateralization Increase
Amount for that payment date, until the Note Balance thereof has
been reduced to zero;

6

 

          (viii) from Excess Spread, to pay as principal on the Class A-I-1, Class A-I-2 and Class A-I-3 Notes (pro rata) any Group I Reserve Increase Amount for that payment date, in each case until the related Note Balance thereof has been reduced to zero,
 and to pay as principal on the Class A-II Notes any Group II Reserve Increase Amount for that payment date,
 in each case until the related Note Balance thereof has been reduced to zero;

7

 

          (ix) to the Indenture Trustee, any amounts owing to the Indenture Trustee pursuant to
Section 6.07 to the extent remaining unpaid; and

          (x) any remaining amount, to the Distribution Account, for distribution to the
holders of the Certificates by the Certificate Paying Agent in accordance with the Trust
Agreement.

          On each Payment Date, the Paying Agent shall apply, from amounts on deposit in the Note
Payment Account, and in accordance with the Servicing Certificate, the amounts set forth above in
the order of priority set forth in Section 3.05(a).

          Amounts paid to Noteholders shall be paid in respect of the Notes in accordance with the
applicable percentage as set forth in Section 3.05(e). Interest on the Notes will be computed on
the basis of a 360-day year consisting of twelve 30-day months. Any installment of interest or
principal payable on any Note that is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall be paid to the Noteholder of record thereof on the immediately
preceding Record Date by wire transfer to an account specified in writing by such Noteholder
reasonably satisfactory to the Indenture Trustee, or by check or money order mailed to such
Noteholder at such Noteholder’s address appearing in the Note Register, the amount required to be
distributed to such Noteholder on such Payment Date pursuant to such Noteholder’s Notes; provided,
that the Indenture Trustee shall not pay to any such Noteholder any amounts required to be withheld
from a payment to such Noteholder by the Code.

          (b) Principal of each Note shall be due and payable in full on the Final Payment Date as
provided in the applicable form of Note set forth in Exhibit A. All principal payments on the Notes shall be made in accordance with the priorities
set forth in Sections 3.05(a) to the Noteholders entitled thereto in accordance with the
related Percentage Interests represented thereby. Upon written notice to the Indenture Trustee by
the Issuer, the Indenture Trustee shall notify the Person in the name of which a Note is registered
at the close of business on the Record Date preceding the Final Payment Date or other final Payment
Date, as applicable. Such notice shall be mailed or faxed no later than five Business Days prior
to the Final Payment Date or such other final Payment Date and, unless such Note is then a
Book-Entry Note, shall specify that payment of the principal amount and any interest due with
respect to such Note at the Final Payment Date or such other final Payment Date will be

8

 

payable
only upon presentation and surrender of such Note, and shall specify the place where such Note may
be presented and surrendered for such final payment.

          On each Payment Date, the Overcollateralization Amount available to cover any Liquidation Loss
Amounts on such Payment Date shall be deemed to be reduced by an amount equal to such Liquidation
Loss Amounts (except to the extent that such Liquidation Loss Amounts were covered on such Payment
Date by a payment in respect of Liquidation Loss Amounts).

          (c) With respect to any Payment Date, interest payments on the Notes will be reduced by any
Relief Act Shortfalls for the related Collection Period on a pro rata basis in accordance with the
amount of interest payable on the Notes on such Payment Date, absent such reduction.

     Section 3.06 Protection of Trust Estate.

          (a) The Issuer shall from time to time 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) maintain or preserve the lien and security interest (and the priority thereof) of
this Indenture or carry out more effectively the purposes hereof;

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

          (iii) cause the Trust to enforce any of the Mortgage Loans; or

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

          (b) Except as otherwise provided in this Indenture, the Indenture Trustee shall not remove any
portion of the Trust Estate that consists of money or is evidenced by an instrument, certificate or
other writing from the jurisdiction in which it was held at the date of the most recent Opinion of
Counsel delivered pursuant to Section 3.07 (or from the jurisdiction in which it was held as
described in the Opinion of Counsel delivered at the Closing Date pursuant to Section 3.07, if no
Opinion of Counsel has yet been delivered pursuant to Section 3.07) unless the Indenture Trustee
shall have first received an Opinion of Counsel to the effect that the lien
and security interest created by this Indenture with respect to such property will continue to
be maintained after giving effect to such action or actions.

     The Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact to execute
any financing statement, continuation statement or other instrument required to be executed
pursuant to this Section 3.06.

     Section 3.07 Opinions as to Trust Estate.

9

 

     On the Closing Date, the Issuer shall furnish to the Indenture Trustee and the Owner Trustee
an Opinion of Counsel at the expense of the Issuer stating that, upon delivery of the Mortgage
Notes relating to the Mortgage Loans to the Indenture Trustee or the Custodian in the State of
[________], the Indenture Trustee will have a perfected, first priority security interest in such
Mortgage Loans.

     On or before December 31st in each calendar year, beginning in 20[__], the Issuer shall
furnish to the Indenture Trustee an Opinion of Counsel at the expense of the Issuer either stating
that, in the opinion of such counsel, no further action is necessary to maintain a perfected, first
priority security interest in the Mortgage Loans until December 31 in the following calendar year
or, if any such action is required to maintain such security interest in the Mortgage Loans, 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 security interest in the Mortgage Loans until December 31
in the following calendar year.

     Section 3.08 Performance of Obligations; Servicing Agreement.

          (a) The Issuer shall 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 Estate.

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

          (c) The Issuer shall not take any action or permit any action to be taken by others that would
release any Person from any of such Person’s covenants or obligations under any of the documents
relating to the Mortgage Loans or under any instrument included in the Trust Estate, or that would
result in the amendment, hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any of the documents relating to the Mortgage Loans or any such
instrument, except such actions as the Servicer is expressly permitted to take in the Servicing
Agreement.

          (d) The Issuer may retain an administrator and may enter into contracts with other Persons for
the performance of the Issuer’s obligations hereunder, and performance of such obligations by such
Persons shall be deemed to be performance of such obligations by the Issuer.

     Section 3.09 Negative Covenants. So long as any Notes are Outstanding, the Issuer shall
not:

          (a) except as expressly permitted by this Indenture, sell, transfer, exchange or otherwise
dispose of the Trust Estate, unless directed to do so in writing by the Indenture Trustee pursuant
to Section 5.04 hereof;

10

 

          (b) 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 Estate;

          (c) (i) permit the validity or effectiveness of this Indenture to be impaired, or permit the
lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or
permit any Person to be released from any covenants or obligations with respect to the Notes under
this Indenture except as may be expressly permitted hereby, (ii) 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 Estate or any part thereof
or any interest therein or the proceeds thereof or (iii) permit the lien of this Indenture not to
constitute a valid first priority security interest in the Trust Estate; or

          (d) impair or cause to be impaired the Issuer’s interest in the Mortgage Loans, the Purchase
Agreement or in any other Basic Document, if any such action would materially and adversely affect
the interests of the Noteholders.

     Section 3.10 Annual Statement as to Compliance.
The Issuer shall deliver to the Indenture
Trustee, within 120 days after the end of each fiscal year of the Issuer (commencing with the
fiscal year ending on [________], 20[__]), an Officer’s Certificate stating, as to the Authorized
Officer signing such Officer’s Certificate, that:

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

          (b) 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 and the provisions of the Trust
Agreement throughout such year, or, if there has been a default in its compliance with any such
condition or covenant, specifying each such default known to such Authorized Officer and the nature
and status thereof.

     Section 3.11 Recordation of Assignments.
The Issuer shall enforce the obligation, if any,
of the Sellers under the Purchase Agreement to submit or cause to be submitted for recordation all
Assignments of Mortgages within 60 days of receipt of recording information by the Servicer.

     Section 3.12 Representations and Warranties Concerning the Mortgage Loans.
The Indenture
Trustee, as pledgee of the Mortgage Loans, shall have the benefit of (i) the representations and
warranties made by [________________] in Section 3.1(a) and Section 3.1(b) of the Purchase
Agreement and (ii) the benefit of the representations and warranties made by [________________] in
Section 3.1(d) of the Purchase Agreement in each case, concerning the Mortgage Loans and the right
to enforce the remedies against [________________] or [________________] provided in Section 3.1(e)
of the Purchase Agreement, as applicable, to the same extent as though such representations and
warranties were made directly to the Indenture Trustee.

11

 

     Section 3.13 Assignee of Record of the Mortgage Loans.
As pledgee of the Mortgage Loans,
the Indenture Trustee shall hold title to the Mortgage Loans by being named as payee in the
endorsements or assignments of the Mortgage Notes and assignee in the Assignments of Mortgage to be
delivered under Section 2.1 of the Purchase Agreement. Except as expressly provided in the
Purchase Agreement or in the Servicing Agreement with respect to any specific Mortgage Loan, the
Indenture Trustee shall not execute any endorsement or assignment or otherwise release or transfer
such title to any of the Mortgage Loans until such time as the remaining Trust Estate may be
released pursuant to Section 8.05(b). The Indenture Trustee’s holding of such title shall in all
respects be subject to its fiduciary obligations to the Noteholders hereunder.

     Section 3.14 Servicer as Agent and Bailee of the Indenture Trustee.
Solely for purposes of
perfection under Section 9-313 or 9-314 of the UCC or other similar applicable law, rule or
regulation of the state in which such property is held by the Servicer, the Issuer and the
Indenture Trustee hereby acknowledge that the Servicer is acting as agent and bailee of the
Indenture Trustee in holding amounts on deposit in the Custodial Account pursuant to Section 3.02
of the Servicing Agreement that are allocable to the Mortgage Loans, as well as the agent and
bailee of the Indenture Trustee in holding any Related Documents released to the Servicer pursuant
to Section 3.06(c) of the Servicing Agreement, and any other items constituting a part of the Trust
Estate which from time to time come into the possession of the Servicer. It is intended that, by
the Servicer’s acceptance of such agency pursuant to Section 3.02 of the Servicing Agreement, the
Indenture Trustee, as a pledgee of the Mortgage Loans, will be deemed to have possession of such
Related Documents, such monies and such other items for purposes of Section 9-313 or 9-314 of the
UCC of the state in which such property is held by the Servicer.

     Section 3.15 Investment Company Act.
The Issuer shall not become an “investment company”
or under the “control” of an “investment company” as such terms are defined in the Investment
Company Act of 1940, as amended (or any successor or amendatory statute), and the rules and
regulations thereunder (taking into account not only the general definition of the term “investment
company” but also any available exceptions to such general definition); provided, however, that the
Issuer shall be in compliance with this Section 3.15 if it shall have obtained an order exempting
it from
regulation as an “investment company” so long as it is in compliance with the conditions imposed in
such order.

     Section 3.16 Issuer May Consolidate, etc.

          (a) The Issuer shall not consolidate or merge with or into any other Person, unless:

          (i) the Person (if other than the Issuer) formed by or surviving such consolidation or
merger shall be a Person organized and existing under the laws of the United States of
America or any state or the District of Columbia and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Indenture Trustee, in form reasonably
satisfactory to the Indenture Trustee, the due and punctual payment of the principal of and
interest on all Notes and to the Certificate Paying Agent, on behalf of the
Certificateholders and the performance or observance of every agreement

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and covenant of this
Indenture on the part of the Issuer to be performed or observed, all as provided herein;

          (ii) immediately after giving effect to such transaction, no Event of Default shall
have occurred and be continuing;

          (iii) the Issuer shall have received an Opinion of Counsel (and shall have delivered
copies thereof to the Indenture Trustee) to the effect that such transaction will not have
any material adverse tax consequence to the Issuer, any Noteholder or any Certificateholder;

          (iv) any action that is necessary to maintain the lien and security interest created by
this Indenture shall have been taken; and

          (v) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate
and an Opinion of Counsel each stating that such consolidation or merger and such
supplemental indenture comply with this Article III and that all conditions precedent herein
provided for relating to such transaction have been complied with (including any filing
required by the Exchange Act).

          (b) The Issuer shall not convey or transfer any of its properties or assets, including those
included in the Trust Estate, to any Person, unless:

          (i) the Person that acquires by conveyance or transfer the properties and assets of the
Issuer the conveyance or transfer of which is hereby restricted shall (A) be a United States
citizen or a Person organized and existing under the laws of the United States of America or
any state, (B) expressly assumes, by an indenture supplemental hereto, executed and
delivered to the Indenture Trustee, in form satisfactory to the Indenture Trustee, the due
and punctual payment of the principal of and interest on all Notes and the performance or
observance of every agreement and covenant of this Indenture on the part of the Issuer to be
performed or observed, all as provided herein, (C) expressly agrees by means of such
supplemental indenture that all right, title and interest so conveyed or transferred shall
be subject and subordinate to the rights of Noteholders of the Notes, (D) unless otherwise provided in such supplemental indenture,
expressly agrees to indemnify, defend and hold harmless the Issuer against and from any
loss, liability or expense arising under or related to this Indenture and the Notes and (E)
expressly agrees by means of such supplemental indenture that such Person (or if a group of
Persons, then one specified Person) shall make all filings with the Commission (and any
other appropriate Person) required by the Exchange Act in connection with the Notes;

          (ii) immediately after giving effect to such transaction, no Default or Event of
Default shall have occurred and be continuing;

          (iii) the Issuer shall have received an Opinion of Counsel (and shall have delivered
copies thereof to the Indenture Trustee) to the effect that such transaction will not have
any material adverse tax consequence to the Issuer or any Noteholder;

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          (iv) any action that is necessary to maintain the lien and security interest
created by this Indenture shall have been taken; and

          (v) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate
and an Opinion of Counsel each stating that such conveyance or transfer and such
supplemental indenture comply with this Article III and that all conditions precedent herein
provided for relating to such transaction have been complied with (including any filing
required by the Exchange Act).

     Section 3.17 Successor or Transferee.

          (a) Upon any consolidation or merger of the Issuer in accordance with Section 3.16(a), the
Person formed by or surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, the Issuer under this
Indenture with the same effect as if such Person had been named as the Issuer herein.

          (b) Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to
Section 3.16(b), the Issuer shall be released from every covenant and agreement of this Indenture
to be observed or performed on the part of the Issuer with respect to the Notes immediately upon
the delivery of written notice to the Indenture Trustee of such conveyance or transfer.

     Section 3.18 No Other Business. The Issuer shall not engage in any business other than
financing, purchasing, owning and selling and managing the Mortgage Loans and the issuance of the
Notes and Certificates in the manner contemplated by this Indenture and the Basic Documents and all
activities incidental thereto.

     Section 3.19 No Borrowing.
The Issuer shall not issue, incur, assume, guarantee or
otherwise become liable, directly or indirectly, for any indebtedness except for the Notes.

     Section 3.20 Guarantees, Loans, Advances and Other Liabilities. Except as contemplated by
this Indenture or the other Basic Documents, the Issuer shall not make any loan or advance or
credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring
another’s payment or performance on any obligation or capability of so doing or otherwise), endorse
or otherwise become contingently liable, directly or indirectly, in connection with the
obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree contingently
to do so) any stock, obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

     Section 3.21 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 3.22 Owner Trustee Not Liable for Certificates or Related Documents. The recitals
contained herein shall be taken as the statements of the Issuer, and the Owner Trustee and the
Indenture Trustee assume no responsibility for the correctness of the recitals contained herein.
The Owner Trustee and the Indenture Trustee make no representations as to the validity or
sufficiency of this Indenture or any other Basic Document, of the Certificates (other than the

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signatures of the Owner Trustee or the Indenture Trustee on the Certificates) or the Notes, or of
any Related Documents. The Owner Trustee and the Indenture Trustee shall at no time have any
responsibility or liability with respect to the sufficiency of the Trust Estate or its ability to
generate the payments to be distributed to Certificateholders under the Trust Agreement or the
Noteholders under this Indenture, including, the compliance by the Depositor or the Sellers with
any warranty or representation made under any Basic Document or in any related document or the
accuracy of any such warranty or representation, or any action of the Certificate Paying Agent, the
Certificate Registrar or any other person taken in the name of the Owner Trustee or the Indenture
Trustee.

     Section 3.23 Restricted Payments. The Issuer shall not, directly or indirectly, (i) pay
any dividend or make any distribution (by reduction of capital or otherwise), whether in cash,
property, securities or a combination thereof, to the Owner Trustee or any owner of a beneficial
interest in the Issuer or otherwise with respect to any ownership or equity interest or security in
or of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for value any such ownership
or equity interest or security or (iii) set aside or otherwise segregate any amounts for any such
purpose; provided, however, that the Issuer may make, or cause to be made, (x) distributions to the
Owner Trustee and the Certificateholders as contemplated by, and to the extent funds are available
for such purpose under, the Trust Agreement and (y) payments to the Servicer pursuant to the terms
of the Servicing Agreement. The Issuer will not, directly or indirectly, make payments to or
distributions from the Custodial Account except in accordance with this Indenture and the other
Basic Documents.

     Section 3.24 Notice of Events of Default. The Issuer shall give the Indenture Trustee and
the Rating Agencies (in accordance with Section 10.19) prompt written notice of each Event of
Default hereunder and under the Trust Agreement.

     Section 3.25 Further Instruments and Acts. Upon request of the Indenture Trustee, the
Issuer shall execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purposes of this Indenture.

     Section 3.26 Statements to Noteholders. On each Payment Date, each of the Indenture
Trustee and the Certificate Registrar shall make available to the Depositor, the Owner Trustee,
each Rating Agency (in accordance with Section 10.19), each Noteholder and each Certificateholder,
the Servicing Certificate provided to the
Indenture Trustee by the Servicer relating to such Payment Date and delivered pursuant to Section
4.01 of the Servicing Agreement.

     
The Indenture Trustee will make the Servicing Certificate (and, at its option, any additional
files containing the same information in an alternative format) available each month to
Securityholders, and other parties to this Indenture via the Indenture Trustee’s internet website.
The Indenture Trustee’s internet website shall initially be located at “www.[________].[___].”
Assistance in using the website can be obtained by calling the Indenture Trustee’s customer service
desk at ([___]) [___]-[____]. Parties that are unable to use the above distribution options are
entitled to have a paper copy mailed to them via first class mail by calling the customer service
desk and indicating such. The Indenture Trustee shall have the right to change the way the
statement to Securityholders are distributed in order to make such distribution more

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convenient or
more accessible to the above parties and the Indenture Trustee shall provide timely and adequate
notification to all above parties regarding any such changes.

     Section 3.27 Additional Representations of Issuer.

     The Issuer hereby represents and warrants to the Indenture Trustee that as of the Closing Date
(which representations and warranties shall survive the execution of this Indenture):

          (a) This Indenture creates a valid and continuing security interest (as defined in the
applicable UCC) in the Mortgage Notes in favor of the Indenture Trustee, which security interest is
prior to all other Liens (except as expressly permitted otherwise in this Indenture), and is
enforceable as such as against creditors of and purchasers from the Issuer.

          (b) The Mortgage Notes constitute “instruments” within the meaning of the applicable UCC.

          (c) The Issuer owns and has good and marketable title to the Mortgage Notes free and clear of
any Lien of any Person.

          (d) The original executed copy of each Mortgage Note (except for any Mortgage Note with
respect to which a Lost Note Affidavit has been delivered to the Custodian) has been delivered to
the Custodian.

          (e) The Issuer has received a written acknowledgment from the Custodian that the Custodian is
acting solely as agent of the Indenture Trustee for the benefit of the Noteholders.

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

          (g) None of the Mortgage Notes has any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Indenture Trustee, except for
(i) any endorsements that are part of a complete chain of endorsements from the originator of the
Mortgage Note to the Indenture Trustee, and (ii) any marks or notations pertaining to Liens that
have been terminated or released.

          (h) None of the provisions of this Section 3.27 shall be waived without the prior written
confirmation from Standard & Poor’s that such waiver shall not result in a reduction or withdrawal
of the then-current rating of the Notes.

     Section 3.28 Allocation of Losses.

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          (a) On each Payment Date, Group I Liquidation Loss Amounts during the
prior calendar month, to the extent not covered by (i) Excess Spread in the form of a payment of
Group I Overcollateralization Increase Amount or Group I Liquidation Loss Distribution Amount
or (ii) a reduction in the Overcollateralization Amount for the Group I Loans on such Payment
Date, will be allocated first to reduce the Note Balance of the Class A-I-3 Notes, until the
outstanding Note Balance thereof has been reduced to zero, second to the Class A-I-2 Notes
until the outstanding Note Balance thereof has been reduced to zero, and last to reduce the Class
A-I-1 Notes until the outstanding Note Balance thereof has been reduced to zero.

          (b) On each Payment Date, Group II Liquidation Loss Amounts during the
prior calendar month, to the extent not covered by (i) Excess Spread in the form of a payment of
Group II Overcollateralization Increase Amount or Group II Liquidation Loss Distribution
Amount or (ii) a reduction in the Overcollateralization Amount for the Group II Loans on such
Payment Date, will be allocated first to reduce the Note Balance of the Class A-2 Notes until the outstanding Note Balance thereof has been reduced to zero.

ARTICLE IV

The Notes; Satisfaction And Discharge Of Indenture

     Section 4.01 The Notes

          (a) The Notes shall be registered in the name of a nominee designated by the Depository.
Beneficial Owners will hold interests in the Notes through the book-entry facilities of the
Depository in minimum initial Note Balances of $25,000 and integral multiples of $1,000 in excess
thereof.

     The Indenture Trustee may for all purposes (including the making of payments due on the Notes)
deal with the Depository as the authorized representative of the Beneficial Owners with respect to
the Notes for the purposes of exercising the rights of Noteholders hereunder. Except as provided
in the next succeeding paragraph of this Section 4.01, the rights of Beneficial Owners with respect
to the Notes shall be limited to those established by law and agreements
between such Beneficial Owners and the Depository and Depository Participants. Except as
provided in Section 4.08, Beneficial Owners shall not be entitled to definitive certificates for
the Notes as to which they are the Beneficial Owners. Requests and directions from, and votes of,
the Depository as Noteholder of the Notes shall not be deemed inconsistent if they are made with
respect to different Beneficial Owners. The Indenture Trustee may establish a reasonable record
date in connection with solicitations of consents from or voting by Noteholders and give notice to
the Depository of such record date. Without the consent of the Issuer and the Indenture Trustee,
no Term Note may be transferred by the Depository except to a successor Depository that agrees to
hold such Note for the account of the Beneficial Owners.

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     In the event the Depository Trust Company resigns or is removed as Depository, the Indenture
Trustee, at the request of the Servicer and with the approval of the Issuer may appoint a successor
Depository. If no successor Depository has been appointed within 30 days of the effective date of
the Depository’s resignation or removal, each Beneficial Owner shall be entitled to certificates
representing the Notes it beneficially owns in the manner prescribed in Section 4.08.

     The Notes shall, on original issue, be executed on behalf of the Issuer by the Owner Trustee,
not in its individual capacity but solely as Owner Trustee and upon Issuer Order, authenticated by
the Note Registrar and delivered by the Indenture Trustee to or upon the order of the Issuer.

     Section 4.02 Registration of and Limitations on Transfer and Exchange of Notes; Appointment of
Certificate Registrar. The Issuer shall cause to be kept at the Indenture Trustee’s Corporate
Trust Office a Note Register in which, subject to such reasonable regulations as it may prescribe,
the Note Registrar shall provide for the registration of Notes and of transfers and exchanges of
Notes as herein provided. The Issuer hereby appoints the Indenture Trustee as the initial Note
Registrar.

     Subject to the restrictions and limitations set forth below, upon surrender for registration
of transfer of any Note at the Corporate Trust Office, the Issuer shall execute, and the Note
Registrar shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Notes in authorized initial Note Balances evidencing the same aggregate Percentage
Interests.

     Subject to the foregoing, at the option of the Noteholders, Notes may be exchanged for other
Notes of like tenor, in each case in authorized initial Note Balances evidencing the same aggregate
Percentage Interests, upon surrender of the Notes to be exchanged at the Corporate Trust Office of
the Note Registrar. Whenever any Notes are so surrendered for exchange, the Issuer shall execute
and the Note Registrar shall authenticate and deliver the Notes which the Noteholder making the
exchange is entitled to receive. Each Note presented or surrendered for registration of transfer
or exchange shall (if so required by the Note Registrar) be duly endorsed by, or be accompanied by
a written instrument of transfer in form reasonably satisfactory to the Note Registrar duly
executed by, the Noteholder thereof or his attorney duly authorized in writing with such signature
guaranteed by a commercial bank or trust company located or having a correspondent located in The
City of New York. Notes delivered upon any such transfer or
exchange will evidence the same obligations, and will be entitled to the same rights and
privileges, as the Notes surrendered.

     No service charge shall be imposed for any registration of transfer or exchange of Notes, but
the Note Registrar shall require payment of a sum sufficient to cover any tax or governmental
charge that may be imposed in connection with any registration of transfer or exchange of Notes.

     All Notes surrendered for registration of transfer and exchange shall be cancelled by the Note
Registrar and delivered to the Indenture Trustee for subsequent destruction without liability on
the part of either.

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     The Issuer hereby appoints the Indenture Trustee as Certificate Registrar to keep at its
Corporate Trust Office a Certificate Register pursuant to Section 3.09 of the Trust Agreement in
which, subject to such reasonable regulations as it may prescribe, the Certificate Registrar shall
provide for the registration of Certificates and of transfers and exchanges thereof pursuant to
Section 3.05 of the Trust Agreement. The Indenture Trustee hereby accepts such appointment.

     Each purchaser of a Note, by its acceptance of the Note, shall be deemed to have represented
that the acquisition of such Note by the purchaser does not constitute or give rise to a prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code, for which no statutory,
regulatory or administrative exemption is available.

     Section 4.03 Mutilated, Destroyed, Lost or Stolen Notes.
If (i) any mutilated Note is
surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its
satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by it and the Issuer to hold the
Issuer and the Indenture Trustee 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 of the same class;
provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall
have become or within seven days shall be due and payable, instead of issuing a replacement Note,
the Issuer may pay such destroyed, lost or stolen Note when so due or payable without surrender
thereof. If, after the delivery of such replacement Note or payment of a destroyed, lost or stolen
Note pursuant to the proviso to the preceding sentence, a bona fide purchaser of the original Note
in lieu of which such replacement Note was issued presents for payment such original Note, the
Issuer and the Indenture Trustee 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 or the Indenture
Trustee in connection therewith.

     Upon the issuance of any replacement Note under this Section 4.03, the Issuer may require the
payment by the Noteholder 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 4.03 in replacement of any mutilated,
destroyed, lost or stolen Note shall constitute an original additional contractual obligation of
the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

     The provisions of this Section 4.03 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.

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     Section 4.04 Persons Deemed Owners. Prior to due presentment for registration of transfer
of any Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee
may treat the Person in whose name any Note is registered (as of the day of determination) as the
owner of such Note for the purpose of receiving payments of principal of and interest, if any, on
such Note and for all other purposes whatsoever, whether or not such Note be overdue, and none of
the Issuer, the Indenture Trustee or any agent of the Issuer or the Indenture Trustee shall be
affected by notice to the contrary.

     Section 4.05 Cancellation. All Notes surrendered for payment, registration of transfer,
exchange or redemption shall, if surrendered to any Person other than the Indenture Trustee, be
delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture Trustee. The
Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever,
and all Notes so delivered shall be promptly cancelled by the Indenture Trustee. No Notes shall be
authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section 4.05,
except as expressly permitted by this Indenture. All cancelled Notes may be held or disposed of by
the Indenture Trustee in accordance with its standard retention or disposal policy as in effect at
the time unless the Issuer shall direct by an Issuer Request that they be destroyed or returned to
it; provided, however, that such Issuer Request is timely and the Notes have not been previously
disposed of by the Indenture Trustee.

     Section 4.06 Book-Entry Notes. The Notes, upon original issuance, shall be issued in the
form of typewritten Notes representing the Book-Entry Notes, to be delivered to The Depository
Trust Company, the initial Depository, 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
Depository, and no Beneficial Owner shall receive a Definitive Note representing such Beneficial
Owner’s interest in such Note, except as provided in Section 4.08. Unless and until definitive,
fully registered Notes (the “Definitive Notes”) have been issued to Beneficial Owners pursuant to
Section 4.08:

          (a) the provisions of this Section 4.06 shall be in full force and effect;

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

          (c) to the extent that the provisions of this Section 4.06 conflict with any other provisions
of this Indenture, the provisions of this Section 4.06 shall control;

          (d) the rights of Beneficial Owners shall be exercised only through the Depository and shall
be limited to those established by law and agreements between such Owners of Notes and the
Depository or the Depository Participants. Unless and until Definitive Notes are issued pursuant
to Section 4.08, the initial Depository will make book-entry transfers among the Depository
Participants and receive and transmit payments of principal of and interest on the Notes to such
Depository Participants; and

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

     Section 4.07 Notices to Depository. Whenever a notice or other communication to the
Noteholders of the Notes is required under this Indenture, unless and until Definitive Notes shall
have been issued to Beneficial Owners pursuant to Section 4.08, the Indenture Trustee shall give
all such notices and communications specified herein to be given to Noteholders of the Notes to the
Depository, and shall have no obligation to the Beneficial Owners.

     Section 4.08 Definitive Notes. If (i) the Depositor determines that the Depository is no
longer willing or able to properly discharge its responsibilities with respect to the Notes and the
Depositor is unable to locate a qualified successor, (ii) the Depositor, with the prior consent of
the Beneficial Owners, notifies the Indenture Trustee and the Depository that it has elected to
terminate the book-entry system through the Depository, or (iii) after the occurrence of an Event
of Default, Beneficial Owners of Notes representing beneficial interests aggregating at least a
majority of the aggregate Term Note Balance of the Notes advise the Depository in writing that the
continuation of a book-entry system through the Depository is no longer in the best interests of
the Beneficial Owners, then the Depository shall notify all Beneficial Owners and the Indenture
Trustee of the occurrence of any such event and of the availability of Definitive Notes to
Beneficial Owners requesting the same. Upon surrender by the Depository to the Indenture Trustee
of the typewritten Notes representing the Book-Entry Notes by the Depository (or Percentage
Interest of the Book-Entry Notes being transferred pursuant to clause (iii) above), accompanied by
registration instructions, the Issuer shall execute and the Indenture Trustee shall authenticate
the Definitive Notes in accordance with the instructions of the Depository. None of the Issuer,
the Note Registrar or the
Indenture Trustee shall be liable for any delay in delivery of such instructions, and each may
conclusively rely on, and shall be protected in relying on, such instructions. Upon the issuance
of Definitive Notes, the Indenture Trustee shall recognize the Noteholders of the Definitive Notes
as Noteholders.

     Section 4.09 Tax Treatment. The Issuer has entered into this Indenture, and the Notes will
be issued, with the intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will be treated as indebtedness for purposes of such taxes. The
Issuer, by entering into this Indenture, and each Noteholder, by its acceptance of its Note (and
each Beneficial Owner by its acceptance of an interest in the applicable Book-Entry Note), agree to
treat the Notes for federal, state and local income, single business and franchise tax purposes as
indebtedness for purposes of such taxes.

     Section 4.10 Satisfaction and Discharge of Indenture. This Indenture shall cease to be of
further effect with respect to the Notes except as to (i) rights of registration of transfer and
exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of principal thereof and interest thereon, (iv) Sections 3.03,
3.04, 3.06, 3.09, 3.16, 3.18 and 3.19, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the rights of the Indenture Trustee under Section 6.07 and the
obligations of the

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Indenture Trustee under Section 4.11) and (vi) the rights of Noteholders 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 written 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:

     (A) either:

     (1) all Notes theretofore authenticated and delivered (other than (i)
Notes that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 4.03 and (ii) Notes for whose payment money
has theretofore been deposited in trust or segregated and held in trust by
the Issuer and thereafter repaid to the Issuer or discharged from such
trust, as provided in Section 3.03) have been delivered to the Indenture
Trustee for cancellation; or

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

     a) have become due and payable;

     b) will become due and payable at the Final Payment Date within
one year; or

     c) have been declared immediately due and payable pursuant to
Section 5.02.

and the Issuer, in the case of (a) and (b) above, has irrevocably deposited or caused to be
irrevocably deposited with the Indenture Trustee cash or direct obligations of or
obligations guaranteed by the United States of America (which will mature prior to the date
such amounts are payable), in trust for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Notes and Certificates then Outstanding not
theretofore delivered to the Indenture Trustee for cancellation when due on the Final
Payment Date, as evidenced to the Indenture Trustee by an accountant’s letter or an
Officer’s Certificate of the Issuer;

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

     (C) the Issuer has delivered to the Indenture Trustee an Officer’s Certificate
and an Opinion of Counsel, each meeting the applicable requirements of Section 10.01
and each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with and, if the
Opinion of Counsel relates to a deposit made in connection with Section 4.10(A)(2)b.
above, such opinion shall further be to the effect that such deposit will not have
any material adverse tax consequences to the Issuer, any Noteholders or any
Certificateholders.

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     Section 4.11 Application of Trust Money. All monies deposited with the Indenture Trustee
pursuant to Section 4.10 hereof shall be held in trust and applied by it, in accordance with the
provisions of the Notes and this Indenture, to the payment, either directly or through any Paying
Agent or Certificate Paying Agent, as the Indenture Trustee may determine, to the Securityholders
of Securities, of all sums due and to become due thereon for principal and interest; but such
monies need not be segregated from other funds except to the extent required herein or required by
law.

     Section 4.12 [Reserved].Section 4.13 Repayment of Monies Held by Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to the Notes, all
monies then held by any Paying Agent (other than the Indenture Trustee) under the provisions of
this Indenture with respect to such Notes shall, upon demand of the Issuer, be paid to the
Indenture Trustee to be held and applied according to Section 3.05; and thereupon, such Paying
Agent shall be released from all further liability with respect to such monies.

     Section 4.14 Temporary Notes. Pending the preparation of any Definitive Notes, the Issuer
may execute and upon its written direction, the Indenture Trustee may authenticate and make
available for delivery, temporary Notes that are printed, lithographed, typewritten, photocopied or
otherwise produced, in any denomination, substantially of the tenor of the Definitive Notes in lieu
of which they are issued and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Notes may determine, as evidenced by their execution of
such Notes.

     If temporary Notes are issued, the Issuer will cause Definitive Notes to be prepared without
unreasonable delay. After the preparation of the Definitive Notes, the temporary Notes shall be
exchangeable for Definitive Notes upon surrender of the temporary Notes at the office or agency of
the Indenture Trustee, without charge to the Noteholder. Upon surrender for cancellation of any
one or more temporary Notes, the Issuer shall execute and the Indenture Trustee shall authenticate
and make available for delivery, in exchange therefor, Definitive Notes of authorized denominations
and of like tenor and aggregate principal amount. Until so exchanged, such temporary Notes shall
in all respects be entitled to the same benefits under this Indenture as Definitive Notes.

ARTICLE V

Default And Remedies

     Section 5.01 Events of Default. The Issuer shall deliver to the Indenture Trustee within
five days after learning of the occurrence of any event that with the giving of notice and the
lapse of time would become an Event of Default under clause (c) of the definition of “Event of
Default” written notice in the form of an Officer’s Certificate of its status and what action the
Issuer is taking or proposes to take with respect thereto.

     Section 5.02 Acceleration of Maturity; Rescission and Annulment. If an Event of Default
shall occur and be continuing, then and in every such case the Indenture Trustee, acting at the
direction of the Noteholders of Notes representing not less than a majority of the aggregate Note
Balance of the Notes, may declare the Notes to be immediately due and payable by a notice

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in
writing to the Issuer (and to the Indenture Trustee if given by Noteholders); and upon any such
declaration, the unpaid principal amount of the Notes, together with accrued and unpaid interest
thereon through the date of acceleration, shall become immediately due and payable.

     At any time after such declaration of acceleration of maturity with respect to an Event of
Default has been made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter provided in this Article V, the Noteholders of
Notes representing a majority of the aggregate Note Balance of the Notes, by written notice to the
Issuer and the Indenture Trustee, may in writing waive the related Event of Default and rescind and
annul such declaration and its consequences if:

          (a) the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:

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

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

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

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

     Section 5.03 Collection of Indebtedness and Suits for Enforcement by Indenture
Trustee.

          (a) The Issuer covenants that if default in the payment of (i) any interest on any Note when
the same becomes due and payable, and such default continues for a period of five days, or (ii) the
principal of or any installment of the principal of any Note when the same becomes due and payable,
the Issuer shall, upon demand of the Indenture Trustee, pay to it, for the benefit of the
Noteholders, the entire amount then due and payable on the Notes for principal and interest, with
interest on the overdue principal, and in addition thereto such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Indenture Trustee and its agents and counsel.

          (b) In case the Issuer shall fail forthwith to pay such amounts upon such demand, the
Indenture Trustee, in its own name and as trustee of an express trust, subject to the provisions of
Section 10.17 hereof, may institute a Proceeding for the collection of the sums so due and unpaid,
and may prosecute such Proceeding to judgment or final decree, and may enforce the same against the
Issuer or other obligor on the Notes and collect in the manner

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provided by law out of the property
of the Issuer or other obligor on the Notes, wherever situated, the monies adjudged or decreed to
be payable.

          (c) If an Event of Default shall occur and be continuing, the Indenture Trustee, subject to
the provisions of Section 10.17 hereof, may, as more particularly provided in Section 5.04, in its
discretion proceed to protect and enforce its rights and the rights of the Noteholders by such
appropriate Proceedings as the Indenture Trustee shall deem most effective to protect and enforce
any such rights, whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper
remedy or legal or equitable right vested in the Indenture Trustee by this Indenture or by law.

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

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

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

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

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

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

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

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

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

     Section 5.04 Remedies; Priorities.

          (a) If an Event of Default shall have occurred and be continuing, then the Indenture Trustee,
subject to the provisions of Section 10.17 hereof, shall do one or more of the following, in each
case subject to Section 5.05:

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

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

          (iii) exercise any remedies of a secured party under the UCC and take any other
appropriate action to protect and enforce the rights and remedies of the Indenture Trustee
and the Noteholders; and

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

provided, however, that the Indenture Trustee may not sell or otherwise liquidate the Trust Estate
following an Event of Default, unless (A) the Indenture Trustee obtains the consent of the
Noteholders of 100% of the aggregate Note Balance of the Notes), (B) the proceeds of such sale or
liquidation distributable to Noteholders are sufficient to discharge in full all amounts then due
and unpaid upon the Notes for principal and interest or (C) the Indenture Trustee determines that
the Mortgage Loans will not continue to provide sufficient funds for the payment of principal of
and interest on the Notes as they would have become due if the Notes had not been declared due and
payable, and the Indenture Trustee obtains the consent the Noteholders of 66 2/3% of the aggregate
Note Balance of the Notes). In determining such sufficiency or insufficiency with respect to
clause (B) and (C) above, the Indenture Trustee may, but need not, obtain and rely, and shall be
protected in relying in good faith, upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the feasibility of such proposed action and
as to the sufficiency of the Trust Estate for such purpose. Notwithstanding the foregoing,
provided that a Servicing Default shall not have occurred, any Sale (as defined in Section 5.15
hereof) of the Trust Estate shall be made subject to the continued servicing of the Mortgage Loans
by the Servicer as provided in the Servicing Agreement. Notwithstanding any sale of the Mortgage
Loans pursuant to this Section 5.04(a), the Indenture Trustee shall, for so long as any principal
or accrued interest on the Notes remains unpaid, continue to act as Indenture Trustee hereunder.

          (b) If the Indenture Trustee collects any money or property pursuant to this Article V, it
shall pay out such money or property in the following order:

FIRST: to the Indenture Trustee for amounts due under Section 6.07;

SECOND: to the Noteholders of each Class of Notes, pro rata, for amounts due and
unpaid on the related Notes for interest, including accrued and unpaid interest on
the Notes for any prior Payment Date, ratably, without preference or priority of any
kind, according to the amounts due and payable on such Notes for interest from
amounts available in the Trust Estate for such Noteholders;

THIRD: to the Noteholders of each Class of Notes, pro rata, for amounts due and
unpaid on the related Notes for principal, ratably, without preference or priority
of any kind, according to the amounts due and payable on such Notes for principal,
from amounts available in the Trust Estate for such Noteholders, until the
respective Note Balances of such Class have been reduced to zero;

FOURTH: to the Certificate Paying Agent for amounts due under Article VIII of the
Trust Agreement; and

SEVENTH: to the payment of the remainder, if any, to the Issuer or any other person
legally entitled thereto.

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     The Indenture Trustee may fix a record date and payment date for any payment to Noteholders
pursuant to this Section 5.04. At least 15 days before such record date, the Indenture Trustee
shall mail to each Noteholder a notice that states the record date, the payment date and the amount
to be paid.

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

     Section 5.06 Limitation of Suits. No Noteholder 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 and subject to the provisions of
Section 10.17 hereof:

          (a) such Noteholder shall have previously given written notice to the Indenture Trustee of a
continuing Event of Default;

          (b) the Noteholders of not less than 50% of the aggregate Note Balance of the Notes shall have
made written request to the Indenture Trustee to institute such Proceeding in respect of such Event
of Default in its own name as Indenture Trustee hereunder;

          (c) such Noteholder or Noteholders shall have offered the Indenture Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred by it in complying with such
request;

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

          (e) no direction inconsistent with such written request shall have been given to the Indenture
Trustee during such 60-day period by the Noteholders of a majority of the aggregate Note Balance of
the Notes.

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

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     In the event the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Noteholders, each representing less than a majority of the
aggregate Note Balance of the Notes, the Indenture Trustee shall act at the direction of the group
of Noteholders with the greater Note Balance. In the event that the Indenture Trustee shall
receive conflicting or inconsistent requests and indemnity from two or more groups of Noteholders
representing the same Note Balance, then the Indenture Trustee in its sole discretion may determine
what action, if any, shall be taken, notwithstanding any other provisions of this Indenture.

     Section 5.07 Unconditional Rights of Noteholders to Receive Principal and Interest.
Subject to the provisions of this Indenture, the Noteholder 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 and to institute suit for the enforcement of any such payment, and such right shall not
be impaired without the consent of such Noteholder.

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

     Section 5.09 Rights and Remedies Cumulative. No right or remedy herein conferred upon or
reserved to the Indenture Trustee or the Noteholders is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law, 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 5.10 Delay or Omission Not a Waiver. No delay or omission of the Indenture Trustee
or any Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article V or by law to the Indenture Trustee or to
the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the
Indenture Trustee or by the Noteholders, as the case may be.

     Section 5.11 Control by Noteholders. The Noteholders of a majority of the aggregate Note
Balance of Notes shall have the right to direct the time, method and place of conducting any
Proceeding for any remedy available to the Indenture Trustee with respect to the Notes or
exercising any trust or power conferred on the Indenture Trustee, provided that:

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

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          (b) subject to the express terms of Section 5.04, any direction to the Indenture Trustee to
sell or liquidate the Trust Estate shall be by the Noteholders of Notes representing not less than
100% of the aggregate Note Balance of the Notes;

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

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

Notwithstanding the rights of Noteholders set forth in this Section, subject to Section 6.01, the
Indenture Trustee need not take any action that it determines (in its sole discretion) might
involve it in liability or might materially adversely affect the rights of any Noteholders not
consenting to such action, unless the Trustee has received satisfactory indemnity from a
Noteholder.

     Section 5.12 Waiver of Past Defaults. Prior to the declaration of the acceleration of the
maturity of the Notes as provided in Section 5.02, the Noteholders of not less than a majority of
the aggregate Note Balance of the Notes, may waive any past Event of Default and its consequences,
except an Event of Default (a) with respect to payment of principal of or interest on any of the
Notes or (b) in respect of a covenant or provision hereof that cannot be modified or amended
without the consent of the Noteholder of each Note. In the case of any such waiver, the Issuer,
the Indenture Trustee and the Noteholders shall be restored to their respective former positions
and rights hereunder; but no such waiver shall extend to any subsequent or other Event of Default
or impair any right consequent thereto.

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

     Section 5.13 Undertaking for Costs. All parties to this Indenture agree, and each
Noteholder by such Noteholder’s acceptance of the related Note shall be deemed to have agreed, that
any court may in its discretion require, in any Proceeding for the enforcement of any right or
remedy under this Indenture, or in any Proceeding against the Indenture Trustee for any action
taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such
Proceeding of an undertaking to pay the costs of such Proceeding, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such Proceeding, 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 5.13 shall not apply to
(a) any Proceeding instituted by the Indenture Trustee, (b) any Proceeding instituted by any
Noteholder, or group of Noteholders, in each case holding in the aggregate more than 10% of the
aggregate Note Balance of the Notes or (c) any Proceeding 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.

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

     Section 5.15 Sale of Trust Estate.

          (a) The power to effect any sale or other disposition (a “Sale”) of any portion of the Trust
Estate pursuant to Section 5.04 is expressly subject to the provisions of Section 5.05 and this
Section 5.15. The power to effect any such Sale shall not be exhausted by any one or more Sales as
to any portion of the Trust Estate remaining unsold, but shall continue unimpaired until the entire
Trust Estate shall have been sold or all amounts payable on the Notes and under this Indenture and
under the Insurance Agreement shall have been paid. The Indenture Trustee may from time to time
postpone any public Sale by public announcement made at the time and place of such Sale. The
Indenture Trustee hereby expressly waives its right to any amount fixed by law as compensation for
any Sale.

          (b) The Indenture Trustee shall not in any private Sale sell the Trust Estate, or any portion
thereof, unless:

          (i) the proceeds of such Sale would be not less than the entire amount that would be
payable to the Noteholders under the Notes and the Certificateholders under the
Certificates, in full payment thereof in accordance with Section 5.02, on the Payment Date
next succeeding the date of such Sale, or

          (ii) the Indenture Trustee determines, in its sole discretion, that the conditions for
retention of the Trust Estate set forth in Section 5.05 cannot be satisfied (in making any
such determination, the Indenture Trustee may rely and shall be protected in relying in good
faith upon an opinion of an Independent investment banking firm obtained and delivered as
provided in Section 5.05).

The purchase by the Indenture Trustee of all or any portion of the Trust Estate at a private Sale
shall not be deemed a Sale or other disposition thereof for purposes of this Section 5.15(b).

          (c) Unless the Noteholders shall have otherwise consented or directed the Indenture Trustee,
at any public Sale of all or any portion of the Trust Estate at which a minimum bid equal to or
greater than the amount described in paragraph (ii) of Section 5.15(b) has not been established by
the Indenture Trustee and no Person bids an amount equal to or greater than such amount, then the
Indenture Trustee shall bid an amount at least $1.00 more than the highest other bid, which bid
shall be subject to the provisions of Section 5.15(d)(ii) herein.

          (d) In connection with a Sale of all or any portion of the Trust Estate:

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          (i) any Noteholder may bid for purchase the property offered for sale, and upon
compliance with the terms of sale may hold, retain and possess and dispose of such property,
without further accountability, and may, in paying the purchase money
therefor, deliver any Notes or claims for interest thereon in lieu of cash up to the
amount which shall, upon distribution of the net proceeds of such sale, be payable thereon,
and such Notes, in case the amounts so payable thereon shall be less than the amount due
thereon, shall be returned to the Noteholders thereof after being appropriately stamped to
show such partial payment;

          (ii) the Indenture Trustee may bid for and acquire the property offered for Sale in
connection with any Sale thereof and, subject to any requirements of, and to the extent
permitted by, applicable law in connection therewith, may purchase all or any portion of the
Trust Estate in a private sale. In lieu of paying cash therefor, the Indenture Trustee may
make settlement for the purchase price by crediting the gross Sale price against the sum of
(A) the amount that would be distributable to the Noteholders and the Certificateholders as
a result of such Sale in accordance with Section 5.04(b) on the Payment Date next succeeding
the date of such Sale and (B) the expenses of the Sale and of any Proceedings in connection
therewith that are reimbursable to it, without being required to produce the Notes in order
to complete any such Sale or in order for the net Sale price to be credited against such
Notes, and any property so acquired by the Indenture Trustee shall be held and dealt with by
it in accordance with the provisions of this Indenture;

          (iii) the Indenture Trustee shall execute and deliver an appropriate instrument of
conveyance transferring its interest in any portion of the Trust Estate in connection with a
Sale thereof;

          (iv) the Indenture Trustee is hereby irrevocably appointed the agent and
attorney-in-fact of the Issuer to transfer and convey its interest in any portion of the
Trust Estate in connection with a Sale thereof, and to take all action necessary to effect
such Sale; and

          (v) no purchaser or transferee at such a Sale 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.

     Section 5.16 Action on Notes. The Indenture Trustee’s right to seek and recover judgment
on the Notes or under this Indenture shall not be affected by the seeking, obtaining or application
of any other relief under or with respect to this Indenture. Neither the lien of this Indenture
nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any of the assets of the
Issuer. Any money or property collected by the Indenture Trustee shall be applied in accordance
with Section 5.04(b).

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     Section 5.17 Performance and Enforcement of Certain Obligations.

          (a) Promptly following a written request from the Indenture Trustee, the Issuer, in its
capacity as owner of the Mortgage Loans, shall take all such lawful action as the Indenture Trustee
may request to cause the Issuer to compel or secure the performance and
observance by the Sellers and the Servicer, as applicable, of each of their obligations to the
Issuer under or in connection with the Purchase Agreement and the Servicing Agreement, and to
exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under
or in connection with the Purchase Agreement and the Servicing Agreement to the extent and in the
manner directed by the Indenture Trustee, as pledgee of the Mortgage Loans, including the
transmission of notices of default on the part of the Sellers or the Servicer thereunder and the
institution of legal or administrative actions or proceedings to compel or secure performance by
the Sellers or the Servicer of each of their obligations under the Purchase Agreement and the
Servicing Agreement.

          (b) If an Event of Default shall have occurred and be continuing, the Indenture Trustee, as
pledgee of the Mortgage Loans may, and at the direction (which direction shall be in writing or by
telephone (confirmed in writing promptly thereafter)) of the Noteholders of 66 2/3% of the
aggregate Note Balance of the Notes, shall, exercise all rights, remedies, powers, privileges and
claims of the Issuer against the Sellers or the Servicer under or in connection with the Purchase
Agreement and the Servicing Agreement, including the right or power to take any action to compel or
secure performance or observance by the Sellers or the Servicer, as the case may be, of each of
their obligations to the Issuer thereunder and to give any consent, request, notice, direction,
approval, extension or waiver under the Purchase Agreement and the Servicing Agreement, as the case
may be, and any right of the Issuer to take such action shall not be suspended. In connection
therewith, as determined by the Indenture Trustee, the Issuer shall take all actions necessary to
effect the transfer of the Mortgage Loans to the Indenture Trustee.

ARTICLE VI

The Indenture Trustee

     Section 6.01 Duties of Indenture Trustee.

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

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

          (i) the Indenture Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture 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, reports or opinions furnished to the Indenture

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Trustee and
conforming to the requirements of this Indenture; provided, however, that the Indenture
Trustee shall examine the certificates, reports and opinions to determine whether or not
they conform 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, except that:

          (i) this paragraph does not limit the effect of Section 6.01(a);

          (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; and

          (iii) the Indenture Trustee shall not be liable with respect to any action it takes or
omits to take in good faith in accordance with a direction received by it pursuant to
Section 5.11.

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

          (f) 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 adequate indemnity against such risk or liability is not reasonably
assured to it.

          (g) 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 TIA.

          (h) The Indenture Trustee hereby accepts appointment as Certificate Paying Agent under the
Trust Agreement and agrees to be bound by the provisions of the Trust Agreement relating to the
Certificate Paying Agent. The Indenture Trustee hereby agrees to be bound by the provisions of
Article IX of the Trust Agreement.

          (i) The Indenture Trustee shall not be required to take notice or be deemed to have notice or
knowledge of any Event of Default (except for an Event of Default specified in clause (a) of the
definition thereof) unless a Responsible Officer of the Indenture Trustee shall have received
written notice or have actual knowledge thereof. In the absence of receipt of such notice or such
knowledge, the Indenture Trustee may conclusively assume that there is no default or Event of
Default.

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          (j) The Indenture Trustee shall have no duty to see to any recording or filing of any
financing statement or continuation statement evidencing a security interest or to see to the
maintenance of any such recording or filing or to any rerecording or refiling of any thereof.

     Section 6.02 Rights of Indenture Trustee.

          (a) The Indenture Trustee may rely and shall be protected in acting or refraining from acting
in good faith upon any resolution, Officer’s Certificate, opinion of counsel, certificate of
auditors, or any other certificate, statement, instrument, report, notice, consent or other
document believed by it to be genuine and to have been signed or presented by the proper person.
The Indenture Trustee need not investigate any fact or matter stated in any such document.

          (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 any such 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 responsible for any misconduct or negligence on the part of,
or for the supervision of, any such agent, attorney, custodian or nominee appointed with due care
by it hereunder.

          (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, 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 not be personally liable for any action taken, suffered or
omitted by it in good faith and believed by it to be authorized or within the discretion or rights
or powers conferred upon it by this Indenture, unless it shall be proved that the Indenture Trustee
was negligent in ascertaining the pertinent facts.

          (g) Prior to the occurrence of an Event of Default hereunder, and after the curing or waiver
of all Events of Default that may have occurred, 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 Noteholders representing a majority of the
aggregate Note Balance; 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 assured

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to the Indenture
Trustee by the security afforded to it by the terms of this Indenture, the Indenture Trustee may
require indemnity satisfactory to the Indenture Trustee against such cost, expense or liability as
a condition to taking any such action.

          (h) The Indenture Trustee shall be under no obligation to exercise any of the trusts or powers
vested in it by this Indenture or to institute, conduct or defend any litigation hereunder or in
relation hereto at the request, order or direction of any of the Noteholders, pursuant to the
provisions of this Indenture, unless the Noteholders shall have offered to the Indenture Trustee
reasonable security or indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby; nothing contained herein shall, however, relieve the Indenture Trustee of the
obligation, upon the occurrence of an Event of Default (which has not been cured or waived), to
exercise such of the rights and powers vested in it by this Indenture, and to use the same degree
of care and skill in their exercise as a prudent investor would exercise or use under the
circumstances in the conduct of such investor’s own affairs.

     Section 6.03 Individual Rights of Indenture Trustee. The Indenture Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal
with the Issuer or its Affiliates with the same rights it would have if it were not Indenture
Trustee. Any 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 6.04 Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be (i)
responsible for and makes no representation as to the validity or adequacy of this Indenture or the
Notes, (ii) accountable for the Issuer’s use of the proceeds from the Notes or (iii) responsible
for any statement of the Issuer in this 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
thereon.

     Section 6.05 Notice of Event of Default. If an Event of Default shall occur and be
continuing, and if such Event of Default is known to a Responsible Officer of the Indenture
Trustee, the Indenture Trustee shall mail to each Noteholder notice of such Event of Default within
90 days after it occurs. Except in the case of an Event of Default with respect to the payment of
principal of or interest on any Note, the Indenture Trustee may withhold such notice if and so long
as a committee of its Responsible Officers in good faith determines that withholding such notice is
in the interests of the Noteholders.

     Section 6.06 Reports by Indenture Trustee to Noteholders. The Indenture Trustee shall
deliver to each Noteholder such information as may be required to enable such Noteholder to prepare
its federal and state income tax returns. In addition, upon Issuer Request, the Indenture Trustee
shall promptly furnish such information reasonably requested by the Issuer that is reasonably
available to the Indenture Trustee to enable the Issuer to perform its federal and state income tax
reporting obligations.

     Section 6.07 Compensation and Indemnity. The Indenture Trustee shall be compensated and
indemnified by the Servicer in accordance with Section 6.06 of the Servicing Agreement. All
amounts owing the Indenture Trustee
hereunder in excess of such amount, as well as any amount owed to the Indenture Trustee in
accordance with Section 6.06 of the

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Servicing Agreement, to the extent the Servicer has failed to
pay such amount, shall be paid solely as provided in Section 3.05 hereof (subject to the priorities
set forth therein). The Indenture Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Issuer shall reimburse the Indenture Trustee
for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses shall include the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee’s agents, counsel,
accountants and experts. The Issuer shall indemnify the Indenture Trustee against any and all
loss, liability or expense (including attorneys’ fees) incurred by it in connection with the
administration of this trust and the performance of its duties hereunder. The Indenture Trustee
shall notify the Issuer promptly of any claim for which it may seek indemnity. Failure by the
Indenture Trustee to so notify the Issuer shall not relieve the Issuer of its obligations
hereunder. The Issuer shall defend any such claim, and the Indenture Trustee may have separate
counsel and the Issuer shall pay the fees and expenses of such counsel. The Issuer is not
obligated to 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.

     The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section 6.07 shall
survive the discharge of this Indenture or the termination or resignation of the Indenture Trustee.
When the Indenture Trustee incurs expenses after the occurrence of an Event of Default specified
in clause (c) or (d) of the definition thereof with respect to the Issuer, such expenses are
intended to constitute expenses of administration under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or similar law.

     Section 6.08 Replacement of Indenture Trustee. No resignation or removal of the Indenture
Trustee and no appointment of a successor Indenture Trustee shall become effective until the
acceptance of appointment by the successor Indenture Trustee pursuant to this Section 6.08. The
Indenture Trustee may resign at any time by so notifying the Issuer. The Noteholders of a majority
of the aggregate Note Balance of the Notes may remove the Indenture Trustee by so notifying the
Indenture Trustee (if given by such Noteholders) and may appoint a successor Indenture Trustee.
Unless a Servicer Default has occurred and is continuing, the appointment of any successor
Indenture Trustee shall be subject to the prior written approval of the Servicer. The Issuer shall
remove the Indenture Trustee if:

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

          (b) the Indenture Trustee is adjudged a bankrupt or insolvent;

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

          (d) the Indenture Trustee otherwise becomes incapable of fulfilling its duties under the Basic
Documents.

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

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which consent shall not be unreasonably withheld. In addition, the Indenture Trustee shall resign
to avoid being directly or indirectly controlled by the Issuer.

     A successor Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuer. Thereupon, the resignation or removal of the
retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have
all the rights, powers and duties of the Indenture Trustee under this Indenture. The successor
Indenture Trustee shall mail a notice of its succession to the 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 60 days after the retiring
Indenture Trustee resigns or is removed, then the retiring Indenture Trustee, the Issuer or the
Noteholders of a majority of aggregate Note Balance of the Notes may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee.

     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.

     Notwithstanding the replacement of the Indenture Trustee pursuant to this Section, the
Issuer’s obligations under Section 6.07 shall continue for the benefit of the retiring Indenture
Trustee.

     Section 6.09 Successor Indenture Trustee by Merger. If the Indenture Trustee consolidates
with, merges or converts into, or transfers all or substantially all its corporate trust business
or assets to, another corporation or banking association, then the resulting, surviving or
transferee corporation without any further act shall be the successor Indenture Trustee; provided,
that such corporation or banking association shall be otherwise qualified and eligible under
Section 6.11. The Indenture Trustee shall provide the Rating Agencies with written notice (in
accordance with Section 10.19) of any such transaction occurring after the Closing Date.

     If at the time of any such succession by merger, conversion or consolidation, any of the Notes
shall have been authenticated but not delivered, then any such successor to the Indenture Trustee
may adopt the certificate of authentication of any predecessor trustee, and deliver such Notes so
authenticated. If at such 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 that it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee shall have.

     Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee.

          (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of
meeting any legal requirement of any jurisdiction in which any part of the Trust Estate may at such
time be located, the Indenture Trustee shall have the power and may execute and deliver all
instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Issuer, and to vest in such Person or

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Persons, in such capacity and for the benefit of the Noteholders, such title to the Trust Estate,
or any part thereof, and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable. No co
trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 6.11, and no notice to Noteholders of the appointment of any co
trustee or separate trustee shall be required under Section 6.08 hereof.

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

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

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

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

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

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

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     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 capital and
surplus of at least $50,000,000 as set forth in its most recent published annual report of
condition and it or its parent shall have a long-term debt rating of “A” or better by Moody’s. The
Indenture Trustee shall comply with TIA § 310(b); 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 that has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.

     Section 6.13 Representations and Warranties. The Indenture Trustee hereby represents and
warrants that:

          (a) The Indenture Trustee is duly organized, validly existing and in good standing as a
national banking association with power and authority to own its properties and to conduct its
business as such properties are currently owned and such business is currently conducted.

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

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

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

          (e) The Indenture Trustee does not have notice of any adverse claim (as such terms are used in
Section 8-302 of the UCC in effect in the State of Delaware) with respect to the Mortgage Loans.

     Section 6.14 Directions to Indenture Trustee. The Indenture Trustee is hereby directed:

          (a) to accept the pledge of the Mortgage Loans and hold the assets of the Trust in trust for
the Noteholders;

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          (b)
to authenticate and deliver the Class A Notes
substantially in the form prescribed by Exhibit A , in accordance
with the terms of this Indenture; and

          (c) to take all other actions as shall be required to be taken by the terms of this Indenture.

     Section 6.15 Indenture Trustee May Own Securities. The Indenture Trustee, in its
individual or any other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not Indenture Trustee.

ARTICLE VII

Noteholders’ Lists and Reports

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

     Section 7.02 Preservation of Information; Communications to Noteholders.

          (a) The Indenture Trustee shall preserve, in as current a form as is reasonably practicable,
the names and addresses of the Noteholders contained in the most recent list furnished to the
Indenture Trustee as provided in Section 7.01 and the names and addresses of the Noteholders
received by the Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may
destroy any list furnished to it as provided in such Section 7.01 upon receipt of a new list so
furnished.

          (b) Noteholders may communicate pursuant to TIA § 312(b) 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 7.03 Reports by Issuer.

          (a) The Issuer shall:

          (i) file with the Indenture Trustee, within 15 days after the Issuer is required to
file the same with the Commission, copies of the annual reports and 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)

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that 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

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

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

     Section 7.04 Reports by Indenture Trustee. If required by TIA § 313(a), within 60 days
after each January 1, beginning with January 1, 20[__], the Indenture Trustee shall make available
to each Noteholder 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 distribution to Noteholders shall be filed by the
Indenture Trustee with the Commission, if required, 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.

     Section 7.05 Exchange Act Reporting. In connection with the preparation and filing of
periodic reports by the Servicer pursuant to Article IV of the Servicing Agreement, the Indenture
Trustee shall timely provide to the Servicer (I) a list of Holders as shown on the Note Register or
Certificate Register as of the end of each calendar year, (II) copies of all pleadings, other legal
process and any other documents relating to any claims, charges or complaints involving the
Indenture Trustee, as indenture trustee
hereunder, or the Trust Estate that are received by the Indenture Trustee, (III) notice of all
matters that, to the actual knowledge of a Responsible Officer of the Indenture Trustee, have been
submitted to a vote of the Holders, other than those matters that have been submitted to a vote of
the Holders at the request of the Depositor or the Servicer, and (IV) notice of any failure of the
Indenture Trustee to make any payment to the Holders as required pursuant to this Indenture. The
Indenture Trustee shall not have any liability with respect to the Servicer’s failure to properly
prepare or file such periodic reports and the Servicer shall not have any liability with respect to
such failure resulting from or relating to the Servicer’s inability or failure to obtain any
information not resulting from the Servicer’s own negligence or willful misconduct.

ARTICLE VIII

Accounts, Disbursements and Releases

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

     Section 8.02 Trust Accounts.

          (a) On or prior to the Closing Date, the Issuer shall cause the Indenture Trustee to establish
and maintain, in the name of the Indenture Trustee, for the benefit of the Noteholders, the
Certificate Paying Agent, on behalf of the Certificateholders, the Note Payment Account as provided
in Section 3.01 of this Indenture.

          (b) All monies deposited from time to time in the Note Payment Account pursuant to the
Servicing Agreement and all deposits therein pursuant to this Indenture are for the benefit of the
Noteholders, the Certificate Paying Agent, on behalf of the Certificateholders, and all investments
made with such monies, including all income or other gain from such investments, are for the
benefit of the Servicer as provided in Section 5.01 of the Servicing Agreement.

     On each Payment Date, the Indenture Trustee shall distribute all amounts on deposit in the
Note Payment Account to the Noteholders in respect of the Notes and, in its capacity as Certificate
Paying Agent, to the Certificateholders from the Distribution Account in the order of
priority set forth in Section 3.05 (except as otherwise provided in Section 5.04(b)) and in
accordance with the Servicing Certificate.

     The Indenture Trustee shall invest any funds in the Note Payment Account in Permitted
Investments selected in writing by the Servicer maturing no later than the Business Day preceding
the next succeeding Payment Date (except that any investment in the institution with which the Note
Payment Account is maintained may mature on such Payment Date) and shall not be sold or disposed of
prior to the maturity. In addition, such Permitted Investments shall not be purchased at a price
in excess of par. The Indenture Trustee shall have no liability whatsoever for investment losses on
Permitted Investments, if such investments are made in accordance with the provisions of this
Indenture and the Indenture Trustee is not the obligor under the Permitted Investment.

     Section 8.03 Officer’s Certificate. The Indenture Trustee shall receive at least seven
days’ notice when requested by the Issuer to take any action pursuant to Section 8.05(a),
accompanied by copies of any instruments to be executed, and the Indenture Trustee shall also
require, as a condition to such action, an Officer’s Certificate, in form and substance
satisfactory to the Indenture Trustee, stating the legal effect of any such action, outlining the
steps required to

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complete the same, and concluding that all conditions precedent to the taking of
such action have been complied with.

     Section 8.04 Termination Upon Distribution to Noteholders. This Indenture and the
respective obligations and responsibilities of the Issuer and the Indenture Trustee created hereby
shall terminate upon the distribution to the Noteholders, the Certificate Paying Agent on behalf of
the Certificateholders and the Indenture Trustee of all amounts required to be distributed pursuant
to Article III; provided, however, that in no event shall the trust created hereby continue beyond
the expiration of 21 years from the death of the survivor of the descendants of Joseph P. Kennedy,
the late ambassador of the United States to the Court of St. James’s, living on the date hereof.

     Section 8.05 Release of Trust Estate.

          (a) Subject to the payment of its fees, expenses and indemnification, the Indenture Trustee
may, and when required by the provisions of this Indenture or the Servicing Agreement, shall,
execute instruments to release property from the lien of this Indenture, or convey the Indenture
Trustee’s interest in the same, in a manner and under circumstances that are not inconsistent with
the provisions of this Indenture. No Person relying upon an instrument executed by the Indenture
Trustee as provided in Article VIII hereunder 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 (i) there are no Notes Outstanding and (ii)
all sums due the Indenture Trustee pursuant to this Indenture have been paid, release any remaining
portion of the Trust Estate that secured the Notes from the lien of this Indenture.

          (c) The Indenture Trustee shall release property from the lien of this Indenture pursuant to
this Section 8.05 only upon receipt of an Issuer Request accompanied by an Officers’ Certificate.

     Section 8.06 Surrender of Notes Upon Final Payment. By acceptance of any Note, the
Noteholder thereof agrees to surrender such Note to the Indenture Trustee promptly, prior to such
Noteholder’s receipt of the final payment thereon.

ARTICLE IX

Supplemental Indentures

     Section 9.01 Supplemental Indentures Without Consent of Noteholders.

          (a) Without the consent of the Noteholders of any Notes, but with prior notice to the Rating
Agencies (in accordance with Section 10.19), the Issuer and the Indenture Trustee, when authorized
by an Issuer Request, at any time and from time to time, may enter into one or more indentures
supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as in force
at the date of the execution thereof), in form satisfactory to the Indenture Trustee, for any of
the following purposes:

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

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

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

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

          (v) to cure any ambiguity, to correct any error or to correct or supplement any
provision herein or in any supplemental indenture that may be inconsistent with any other
provision herein or in any supplemental indenture;

          (vi) 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
materially and adversely affect the interests of the Noteholders (as evidenced by an Opinion
of Counsel);

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

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

provided, however, that no such supplemental indenture shall be entered into unless the Indenture
Trustee shall have received an Opinion of Counsel to the effect that the execution of such
supplemental indenture will not give rise to any material adverse tax consequence to the
Noteholders.

     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 Issuer and the Indenture Trustee, when authorized by an Issuer Request, may, without
the consent of any Noteholder but with prior notice to the Rating Agencies (in accordance with
Section 10.19), 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 Noteholders

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under this Indenture;
provided, however, that such action shall not, as evidenced by an Opinion of Counsel, (i) adversely
affect in any material respect the interests of any Noteholder or (ii) cause the Issuer to be
subject to an entity level tax.

     Section 9.02 Supplemental Indentures With Consent of Noteholders.
The Issuer and the
Indenture Trustee, when authorized by an Issuer Request, may, with prior notice to the Rating
Agencies (in accordance with Section 10.19) and with the consent of the Noteholders of not less
than a majority of the Note Balances affected thereby, by Act (as defined in Section 10.03 hereof)
of such Noteholders delivered to the Issuer and the Indenture Trustee, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or changing in any
manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the
rights of the Noteholders under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Noteholder of each Note affected thereby:

          (a) change the date of payment of any installment of principal of or interest on any Note, or
reduce the principal amount thereof or the Note Rate thereon, change the provisions of this
Indenture relating to the application of collections on, or the proceeds of the sale of, the Trust
Estate to payment of principal of or interest on the Notes, or change any place of payment where,
or the coin or currency in which, any Note or the interest thereon is payable, or impair the right
to institute suit for the enforcement of the provisions of this Indenture requiring the application
of funds available therefor, as provided in Article V, to the payment of any such amount due on the
Notes on or after the respective due dates thereof;

          (b) reduce the percentage of the Note Balances, the consent of the Noteholders of which is
required for any such supplemental indenture, or the consent of the Noteholders 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;

          (c) modify or alter the provisions of the proviso to the definition of the term “Outstanding”
or modify or alter the exception in the definition of the term “Noteholder”;

          (d) reduce the percentage of the aggregate Note Balance of the Notes required to direct the
Indenture Trustee to direct the Issuer to sell or liquidate the Trust Estate pursuant to Section
5.04;

          (e) modify any provision of this Section 9.02 except to increase any percentage specified
herein or to provide that certain additional provisions of this Indenture or the other Basic
Documents cannot be modified or waived without the consent of the Noteholder of each Note affected
thereby;

          (f) 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

          (g) 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 Estate or, except as otherwise permitted or

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contemplated herein, terminate the lien of this Indenture on any property at any time subject
hereto or
deprive the Noteholder of any Note of the security provided by the lien of this
Indenture; and provided further, that such action shall not, as evidenced by an Opinion of Counsel, cause the
Issuer to be subject to an entity level tax.

     The Indenture Trustee may in its discretion determine whether or not any Notes would be
affected by any supplemental indenture and any such determination shall be conclusive upon the
Noteholders of all Notes, whether theretofore or thereafter authenticated and delivered hereunder.
The Indenture Trustee shall not be liable for any such determination made in good faith.

     It shall not be necessary for any Act (as defined in Section 10.03 hereof) of Noteholders
under this Section 9.02 to approve the particular form of any proposed supplemental indenture, but
it shall be sufficient if such Act shall approve the substance thereof.

     Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental
indenture pursuant to this Section 9.02, the Indenture Trustee shall mail to the Noteholders of the
Notes to which 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 9.03 Execution of Supplemental Indentures.
In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article IX or the
modification thereby of the trusts created by this Indenture, the Indenture Trustee shall be
entitled to receive and, subject to Sections 6.01 and 6.02, shall be fully protected in relying
upon, an Opinion of Counsel 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 9.04 Effect of Supplemental Indenture.
Upon the execution of any supplemental
indenture pursuant to the provisions hereof, this Indenture shall be and shall be deemed to be
modified and amended in accordance therewith with respect to the Notes affected thereby, and the
respective rights, limitations of rights, obligations, duties, liabilities and immunities under
this Indenture of the Indenture Trustee, the Issuer and the Noteholders shall thereafter be
determined, exercised and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all purposes.

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

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     Section 9.06 Reference in Notes to Supplemental Indentures. Notes authenticated and delivered after the execution of any supplemental indenture pursuant to
this Article IX may, and if required by the 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

Miscellaneous

     Section 10.01 Compliance Certificates and Opinions, etc.

          (a) Upon any application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee (i) an
Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and (ii) an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been complied with,
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;

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

          (v) if the signer of such certificate or opinion is required to be Independent, the
statement required by the definition of the term “Independent.”

          (b) (i) Prior to the deposit of any Collateral or other property or securities with the
Indenture Trustee that is to be made the basis for the release of any property or

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securities
subject to the lien of this Indenture, the Issuer shall, in addition to any obligation imposed in
Section 10.01(a) or elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of each person signing such certificate as to the fair value
(within 90 days of such deposit) to the Issuer of the Collateral or other property or securities to
be so deposited.

          (ii) Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of any signer thereof as to the matters
described in clause (i) above, the Issuer shall also deliver to the Indenture Trustee an
Independent Certificate as to the same matters, if the fair value to the Issuer of the
securities to be so deposited and of all other such securities made the basis of any such
withdrawal or release since the commencement of the then-current fiscal year of the Issuer,
as set forth in the certificates delivered pursuant to clause (i) above and this clause
(ii), is 10% or more of the aggregate Note Balance of the Notes, but such a certificate need
not be furnished with respect to any securities so deposited, if the fair value thereof to
the Issuer as set forth in the related Officer’s Certificate is less than $25,000 or less
than one percent of the aggregate Note Balance of the Notes.

          (iii) Whenever any property or securities are to be released from the lien of this
Indenture, the Issuer shall furnish to the Indenture Trustee an Officer’s Certificate
certifying or stating the opinion of each person signing such certificate as to the fair
value (within 90 days of such release) of the property or securities proposed to be released
and stating that in the opinion of such person the proposed release will not impair the
security under this Indenture in contravention of the provisions hereof.

          (iv) Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of any signer thereof as to the matters
described in clause (iii) above, the Issuer shall also furnish to the Indenture Trustee an
Independent Certificate as to the same matters if the fair value of the property or
securities and of all other property, other than property as contemplated by clause (v)
below or securities released from the lien of this Indenture since the commencement of the
then-current calendar year, as set forth in the certificates required by clause (iii) above
and this clause (iv), equals 10% or more of the aggregate Note Balance of the Notes, but
such certificate need not be furnished in the case of any release of property or securities
if the fair value thereof as set forth in the related Officer’s Certificate is less than
$25,000 or less than one percent of the aggregate Note Balance of the Notes.

          (v) Notwithstanding the foregoing, this Section 10.01(b) shall not apply to (A)
collection upon, sales or other dispositions of the Mortgage Loans as and to the extent
permitted or required by the Basic Documents or (B) the making of cash payments out of the
Note Payment Account as and to the extent permitted or required by the Basic Documents, so
long as the Issuer shall deliver to the Indenture Trustee every six months, commencing
[___________], 20[__], an Officer’s Certificate of the Issuer stating that all the
dispositions of Collateral described in clauses (A) or (B) above that occurred during the
preceding six calendar months (or such longer period, in the case of the first such
Officer’s Certificate) were permitted or required by the Basic Documents and that the
proceeds thereof were applied in accordance with the Basic Documents.

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     Section 10.02 Form of Documents Delivered to Indenture Trustee.

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

     Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to the matters upon which his 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 any Seller or the Issuer, stating that the
information with respect to such factual matters is in the possession of any Seller 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.

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

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

     Section 10.03 Acts of Noteholders.

          (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Noteholders may be embodied in and evidenced by
one or more instruments of substantially similar tenor signed by such Noteholders in person or by
agents duly appointed in writing; and except as herein otherwise expressly provided such action
shall become effective when such instrument or instruments are delivered to the Indenture Trustee,
and, where it is hereby expressly required, to the Issuer. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the
Noteholders signing such instrument or instruments. Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 6.01) conclusive in favor of the Indenture Trustee and the Issuer, if made in
the manner provided in this Section 10.03.

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

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

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

          Section 10.04 Notices, etc., to Indenture Trustee, Issuer and Rating Agencies.
Any
request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other
documents provided or permitted by this Indenture shall be in writing and if such request, demand,
authorization, direction, notice, consent, waiver or Act of Noteholders is to be made upon, given
or furnished to or filed with:

          (a) the Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for every
purpose hereunder if made, given, furnished or filed in writing to or with the Indenture Trustee at
its Corporate Trust Office with a copy to [________________], [________________],
[________________], [________________] [________________], Attention: [________________]. The
Indenture Trustee shall promptly transmit any notice received by it from the Noteholders to the
Issuer,

          (b) the Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for every
purpose hereunder if in writing and mailed first-class, postage prepaid to the Issuer addressed to:
PRS Series 20[__]-[__] Trust, in care of the Owner Trustee, or at any other address previously
furnished in writing to the Indenture Trustee by the Issuer. The Issuer shall promptly transmit
any notice received by it from the Noteholders to the Indenture Trustee, or

     Notices required to be given to the Rating Agencies by the Issuer, the Indenture Trustee or
the Owner Trustee shall be in accordance with Section 10.19 and be writing, personally delivered or
mailed by certified mail, return receipt requested, to (i) in the case of Moody’s, at the following
address: Moody’s Investors Service, Inc., ABS Monitoring Department, 99 Church Street, New York,
New York 10007 and (ii) in the case of Standard & Poor’s, at the following address: Standard &
Poor’s, 55 Water Street, New York, New York 10041-0003, Attention: Asset Backed Surveillance
Department; or, as to each of the foregoing Persons, at such other address as shall be designated
by written notice to the other foregoing Persons.

     Section 10.05 Notices to Noteholders; Waiver.
Where this Indenture provides for notice to
Noteholders of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class, postage prepaid to each Noteholder
affected by such event, at such Person’s address as it appears on the Note Register, not later than
the latest date, and not earlier than the earliest date, prescribed for the giving of such notice.
In any case where notice to Noteholders is given by mail, neither the failure to mail such notice
nor any defect in any notice so mailed to any particular Noteholder shall affect the sufficiency of
such notice with respect to other Noteholders, and any notice that is mailed in the manner herein

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provided shall conclusively be presumed to have been duly given regardless of whether such notice
is in fact actually received.

     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, (i) such notice shall be in
accordance with Section 10.19 and (ii) failure to give such notice shall not affect any other
rights or obligations created hereunder, and shall not under any circumstance constitute an Event
of Default.

     Section 10.06 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 Noteholder providing for a method of payment, or notice by the Indenture Trustee to such
Noteholder, that is different from the methods provided for in this Indenture for such payments or
notices. The Issuer shall furnish to the Indenture Trustee a copy of each such agreement and the
Indenture Trustee shall cause payments to be made and notices to be given in accordance with such
agreements.

     Section 10.07 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 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 10.08 Effect of Headings.
The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.

     Section 10.09 Successors and Assigns.
All covenants and agreements in this Indenture and
the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not. All
agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees and
agents.

     Section 10.10 Severability. In case any provision in this Indenture or in the Notes shall be held invalid, illegal or
unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall
not in any way be affected or impaired thereby.

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     Section 10.11 Benefits of 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,
and the Noteholders and any other party secured hereunder, and any other Person with an ownership
interest in any part of the Trust Estate, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

     Section 10.12 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 10.13 GOVERNING LAW.
THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF
LAW PRINCIPLES THEREOF, 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 10.14 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 10.15 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 counsel shall be reasonably acceptable to the
Indenture Trustee) to the effect that such recording is necessary either for the protection of the
Noteholders or any other Person secured hereunder or for the enforcement of any right or remedy
granted to the Indenture Trustee under this Indenture.

     Section 10.16 Issuer Obligation.
No recourse may be taken, directly or indirectly, with
respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes
or under this Indenture or any certificate or other writing delivered in connection herewith or
therewith, against (i) the Indenture Trustee or the Owner Trustee in 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 Indenture Trustee
or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer,
the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee
or the Owner Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their respective individual capacities), and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity. For all purposes of this Indenture, in the performance of any duties or
obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust Agreement.

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     Section 10.17 No Petition.
The Indenture Trustee, by entering into this Indenture, and
each Noteholder, by its acceptance of a Note, hereby covenant and agree that they will not at any
time institute against the Depositor or the Issuer, or join in any institution against the
Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state bankruptcy or similar
law in connection with any obligations relating to the Notes, this Indenture or any of the other
Basic Documents.

     Section 10.18 Inspection.
The Issuer agrees that, on reasonable prior notice, it shall
permit any representative of the Indenture Trustee, during the Issuer’s normal business hours, to
examine all the books of account, records, reports and other papers of the Issuer, to make copies
and extracts therefrom, to cause such books to be audited by Independent certified public
accountants, and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers,
employees, and Independent certified public accountants, all at such reasonable times and as often
as may be reasonably requested. The Indenture Trustee shall and shall cause its representatives to
hold in confidence all such information except to the extent disclosure may be required by law (and
all reasonable applications for confidential treatment are unavailing) and except to the extent
that the Indenture Trustee may reasonably determine that such disclosure is consistent with its
obligations hereunder.

     Section 10.19 Exchange Act Rule 17g-5 Procedures.
The Indenture Trustee shall not
communicate with (including verbal communication) or provide information to any Rating Agency
regarding anything related to this Indenture without prior consultation with the
[_________________] to ensure compliance with Rule 17g-5 under the Exchange Act (“Rule 17g-5”).
With respect to any document, notice or other information required pursuant to this Indenture to be
sent by the Indenture Trustee to any Rating Agency, the Indenture Trustee agrees to provide any
such document, notice or other information to [_________________] for posting on its Rule 17g-5
compliant website related to this transaction (the “Rule 17g-5 Website”). [_________________]
shall promptly confirm to the Indenture Trustee any such document, notice or other information has
been posted to the Rule 17g-5 Website as a condition to the Indenture Trustee providing such
document, notice or other information to any Rating Agency. Notwithstanding anything to the
contrary in this Indenture, the Indenture Trustee shall have no obligation to deliver such
document, notice or other information to any Rating Agency until such applicable party has received
written confirmation from [_________________] of the posting of
such document, notice or other information by [_________________] to the Rule 17g-5 Website, and
the Indenture Trustee shall not be liable for any failure to deliver such document, notice or other
information to any Rating Agency prior to any applicable deadline in this Indenture where such
failure is caused by any failure or inability of [_________________] timely to provide such written
confirmation. The Indenture Trustee, pursuant to procedures mutually agreed upon with
[_________________], shall require that any person attempting to access the Indenture Trustee
website related to this transaction represent that they are not an employee or representative of a
rating agency, provided that the Indenture Trustee shall bear no expense or liability relating to
any representation made by any person attempting to access the Indenture Trustee website.

54

 

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

	 	 	 	 	 
	 	PRS SERIES 20[__]-[__] TRUST, as Issuer

By: [________________], not in its individual capacity

        but solely as Owner Trustee

 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[________________], as Indenture Trustee

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[________________]

hereby accepts appointment as Paying

Agent pursuant to Section 3.03 hereof

and as Note Registrar pursuant to Section

4.02 hereof.

	 	 	 	 	 
	 	 
	By:  	
 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signatures and Seals

55

 

	 	 	 	 	 	 	 	 	 	 	 
	STATE OF

	 	 

	 	 	 	 	)	 	 	 
	 

	 	 	 	 	 	 	)	 	 	ss.:
	COUNTY OF

	 	 

	 	 	 	 	)	 	 	 

     On this ___ day of ____________ 20__, before me personally appeared ____________, to me
known, who being by me duly sworn, did depose and say, that he/she resides at _____________, that
he/she is the ____________ of ____________ , the Owner Trustee, one of the corporations described
in and which executed the above instrument; that he/she 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/she signed his/her name thereto by like order.

 

			
	 	 	Notary Public

Acknowledgements

56

 

	 	 	 	 	 	 	 
	STATE OF

	 	 

	)	 	 	 
	 

	 	 	)	 ss.:
	COUNTY OF

	 	 

	)	 	 	 

     On this ___ day of ____________ 20__, before me personally appeared __________, to me known,
who being by me duly sworn, did depose and say, that he/she resides at _____________; that he/she
is the ___________ of [________________] as Indenture Trustee, one of the corporations described in
and which executed the above instrument; that he/she 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/she signed his/her name thereto by like order.

 

			
	 	 	Notary Public

NOTORIAL SEAL

57

 

EXHIBIT A

FORM OF CLASS A NOTES

UNLESS THIS 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 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 NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

THIS NOTE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE SELLER, THE DEPOSITOR, THE
SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE OR [______________] OR ANY OF THEIR RESPECTIVE
AFFILIATES, EXCEPT AS EXPRESSLY PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.

THE HOLDER OF THIS NOTE IS DEEMED TO HAVE REPRESENTED THAT THE ACQUISITION OF THIS NOTE BY THE
HOLDER DOES NOT CONSTITUTE OR GIVE RISE TO A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE, FOR WHICH NO STATUTORY, REGULATORY OR ADMINISTRATIVE EXEMPTION IS
AVAILABLE.

PRS SERIES 20[__]-[__] TRUST

Mortgage-Backed Note, Class A

	 	 	 

	Registered

	 	Initial Note Balance:
	 

	 	$_________
	 
	 	 
	No. A-__

	 	Note Rate: Fixed
	 
	 	 
	 

	 	CUSIP NO. _________

     PRS Series 20[__]-[__] Trust, a statutory trust duly 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 its registered assigns, the principal sum of __________________dollars
($_________), payable on each Payment Date in an amount equal to the pro rata portion allocable
hereto (based on the Initial Note Balance specified above and the Initial Note Balance of all Class
A-__ Notes) of the aggregate amount, if any, payable from the Note Payment Account in respect of
principal of the Class A Notes (the “Notes”) pursuant to Section 3.05 of the indenture dated as of
[_____________], 20[__] (the “Indenture”), between the Issuer and [_____________], as indenture

A-1

 

trustee (the “Indenture Trustee”); provided, however, the entire unpaid principal amount of
this Note shall be due and payable on the Payment Date occurring in [_____________] 20[__], in each
case, to the extent not previously paid on a prior Payment Date. Capitalized terms used herein
that are not otherwise defined shall have the meanings ascribed thereto in Appendix A to the
Indenture.

     Interest on the Notes will be paid monthly on each Payment Date at the Note Rate for the
related class of Notes for the Interest Period. Interest on this Note will accrue for each Payment
Date from the most recent Payment Date on which interest has been paid (in the case of the first
Payment Date, from the Closing Date) to but excluding such Payment Date. Interest will be computed
on the basis of a thirty day month in each Interest Period and a year assumed to consist of 360
days.

     Principal of and interest on this 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 Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid principal of this
Note.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its PRS
Mortgage-Backed Notes, Series 20[__]-[__] (the “Series 20[__]-[__] Notes”), all issued under the
Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Noteholders of the Series 20[__]-[__] Notes. The Series 20[__]-[__] Notes are
subject to all terms of the Indenture.

     The Series 20[__]-[__] Notes (the “Notes”) are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

     Principal of and interest on this Note will be payable on each Payment Date, commencing on
[_____________], 20[__], as described in the Indenture. “Payment Date” means the twenty-fifth day
of each month, or, if any such date is not a Business Day, then the next succeeding Business Day.

     The entire unpaid principal amount of this Note shall be due and payable in full on the
Payment Date in [_____________] 20[__] pursuant to the Indenture, to the extent not previously paid
on a prior Payment Date. Notwithstanding the foregoing, if an Event of Default shall have occurred
and be continuing, then the Indenture Trustee or the Noteholders of Notes representing not less
than a majority of the aggregate Note Balance of the Notes, may declare the Notes to be immediately
due and payable in the manner provided in Section 5.02 of the Indenture. All principal payments on
the Notes shall be made pro rata to the Noteholders of Notes entitled thereto.

     Any installment of interest or principal, if any, payable on any Note that is punctually paid
or duly provided for by the Issuer on the applicable Payment Date shall be paid to the related

A-2

 

Noteholder on the preceding Record Date, by wire transfer to an account specified in writing
by such Noteholder reasonably satisfactory to the Indenture Trustee as of the preceding Record Date
or, if no such instructions have been delivered to the Indenture Trustee, by check or money order
to such Noteholder mailed to such Noteholder’s address as it appears in the Note Register, the
amount required to be distributed to such Noteholder on such Payment Date pursuant to such
Noteholder’s Notes; provided, however, that the Indenture Trustee shall not pay to such Noteholder
any amount required to be withheld from a payment to such Noteholder by the Code. 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 Noteholders 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 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 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
registered Noteholder hereof as of the Record Date preceding such Payment Date by notice mailed or
transmitted by facsimile prior to such Payment Date, and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the address specified in such notice
of final payment.

     As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the Corporate Trust Office of the Indenture Trustee, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Noteholder hereof or such Noteholder’s attorney duly authorized in writing,
with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note Registrar, which requirements include membership or participation in the Securities
Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Exchange Act, and thereupon one or more new Notes in 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 Note, but the
Note Registrar shall require payment of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any registration of transfer or exchange of this Note.

     Each Noteholder or Beneficial Owner of a Note, by its acceptance of a Note, or, in the case of
a Beneficial Owner of a Note, 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, the Seller, the Servicer, the Depositor or the Indenture Trustee on the Notes or
under the Indenture or any certificate or other writing delivered in connection therewith, against
(i) 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 or employee of the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity,
except as any such Person may have expressly agreed and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity.

A-3

 

     Each Noteholder or Beneficial Owner of a Note, by its acceptance of a Note or, in the case of
a Beneficial Owner of a Note, a beneficial interest in a Note, covenants and agrees by accepting
the benefits of the Indenture that such Noteholder or Beneficial Owner will not at any time
institute against the Depositor or the Issuer, or join in any institution against the Depositor or
the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under any United States federal or state bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the other Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes, the Notes will qualify
as indebtedness of the Issuer. Each Noteholder by its acceptance of a Note (and each Beneficial
Owner of a Note by its acceptance of a beneficial interest in a Note), agrees to treat the Notes
for federal, state and local income, single business and franchise tax purposes as indebtedness of
the Issuer.

     Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in the
name of which this Note is registered (as of the day of determination or as of such other date as
may be specified in the Indenture) as the owner hereof for all purposes, whether or not this Note
be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by
notice to the contrary.

     The Indenture permits, with certain exceptions therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuer and the Indenture Trustee and the rights
of the Noteholders of the Series 20[__]-[__] Notes under the Indenture at any time by the Issuer
and the Indenture Trustee with the consent of the Noteholders of Notes representing a majority of
the aggregate Note Balance of the Notes then Outstanding and with prior notice to the Rating
Agencies. The Indenture also contains provisions permitting the Noteholders of Notes representing
specified percentages of the Note Balances of the Series 20[__]-[__] Notes, on behalf of the
Noteholders of all Series 20[__]-[__] Notes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Noteholder of this Note (or any one of more predecessor Notes)
shall be conclusive and binding upon such Noteholder and upon all future Noteholders 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 Issuer and the Indenture Trustee to amend or waive certain terms and conditions
set forth in the Indenture without the consent of Noteholders of the Series 20[__]-[__] Notes
issued thereunder but with prior notice to the Rating Agencies.

     The term “Issuer” as used in this Note includes any successor or the Issuer under the
Indenture.

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Noteholders of Notes under the
Indenture.

     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

A-4

 

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflicts 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 Indenture and no provision of this Note 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 Basic
Documents, none of [____________] in its individual capacity, [____________] in its individual
capacity, any owner of a beneficial interest in the Issuer, or any of their respective partners,
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 this Note or the performance of, or the failure to perform, any of the covenants, obligations or
indemnifications contained in the Indenture. The Noteholder of this Note, by its acceptance
hereof, agrees that, except as expressly provided in the Basic Documents, in the case of an Event
of Default under the Indenture, such Noteholder 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.

     The Servicer shall have the right to purchase from the Issuer all of the Mortgage Loans and
related REO Property if the aggregate Note Balance of the Notes as of any Payment Date is less than
10% of the aggregate Note Balance of the Notes as of the Closing Date, (provided that the purchase
price will provide sufficient funds to pay the outstanding Note Balance and accrued and unpaid
interest on the Notes to the Payment Date on which such amounts are to be distributed to the
Securityholders), at a price equal to 100% of the aggregate unpaid Principal Balance of all such
remaining Mortgage Loans, plus accrued and unpaid interest thereon at the weighted average of the
Loan Rates thereon up to the date preceding the Payment Date on which such amounts are to be
distributed to the Securityholders (and in the case of REO Property, the fair market value of the
REO Property), (and any unpaid Servicing Fee relating to the Mortgage Loans shall be deemed to have
been paid at such time), plus any Interest Shortfall and interest owed thereon to the Noteholders.

A-5

 

     IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not in its individual
capacity, has caused this Note to be duly executed.

	 	 	 	 	 
	 	PRS SERIES 20[__]-[__] TRUST

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

Dated: ___________________

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 

CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	[____________]

not in its individual capacity but solely as

Indenture Trustee

 	 

Dated: ___________________

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-6

 

	 	 	 	 	 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee: _______________

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto

 

			
	(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints

_________________________________________________________________________________

___________________________, attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

	 	 	 	 	 	 	 	 	 

	Dated:

	 	 	 	 	 	 	 	*/
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature Guaranteed:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	*/
	 

	 	 	 	 	 	 	 	 

 

			
	*	 	NOTICE: The signature to this assignment
must correspond with the name of the registered owner as it appears on the face
of the within Term Note in every particular, without alteration, enlargement or
any change whatever. Such signature must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Note Registrar, which
requirements include membership or participation in STAMP or such other
“signature guarantee program” as may be determined by the Note Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

A-7

 

APPENDIX A

DEFINITIONS

     Accrued Certificate Interest: With respect to the Class SB Certificates, interest
accrued during the related Interest Period at the Certificate Rate for such Certificate on its
Notional Amount for such Payment Date.

     Advances: The P&I Advances and the Servicing Advances.

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

     Appraised Value: With respect to any Mortgaged Property, either (x) the value as
generally set forth in an appraisal of such Mortgaged Property used to establish compliance with
the underwriting criteria then in effect in connection with the application for the Mortgage Loan
secured by such Mortgaged Property, or (y) if the sales price of such Mortgaged Property is
considered in accordance with the underwriting criteria applicable to the related Mortgage Loan,
the lesser of (i) the appraised value referred to in (x) above and (ii) the sales price of such
Mortgaged Property.

     Assignment of Mortgage: With respect to any Mortgage, an assignment, notice of
transfer or equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction in which the related Mortgaged Property is located to reflect the conveyance of such
Mortgage, which assignment, notice of transfer or equivalent instrument may be in the form of one
or more blanket assignments covering Mortgages secured by Mortgaged Properties located in the same
jurisdiction.

     Authorized Newspaper: A newspaper of general circulation in the Borough of Manhattan,
The City of New York, printed in the English language and customarily published on each Business
Day, whether or not published on Saturdays, Sundays or holidays.

     Authorized Officer: With respect to the Issuer, any officer of the Owner Trustee who
is authorized to act for the Owner Trustee in matters relating to the Issuer and who is identified
on the list of Authorized Officers delivered by the Owner Trustee to the Indenture Trustee on the
Closing Date (as such list may be modified or supplemented from time to time thereafter).

     Bankruptcy Code: The Bankruptcy Code of 1978, as amended.

     Basic Documents: The Trust Agreement, the Indenture, the Purchase Agreement, the
Servicing Agreement, the Custodial Agreement and the other documents and certificates delivered in
connection with any of the above.

1

 

     Beneficial Owner: With respect to any Note, the Person who is the beneficial owner of
such Note as reflected on the books of the Depository or on the books of a Person maintaining an
account with such Depository (directly as a Depository Participant or indirectly through a
Depository Participant, in accordance with the rules of such Depository).

     Billing Cycle: With respect to any Mortgage Loan and Due Date, the calendar month
preceding such Due Date.

     Book-Entry Notes: Beneficial interests in the Notes, ownership and transfers of which
shall be made through book entries by the Depository as described in Section 4.06 of the Indenture.

     Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day on which
banking institutions in the States of New York, Pennsylvania, Delaware or any State in which the
Corporate Trust Office are required or authorized by law to be closed.

     Certificate Balance: With respect to any Payment Date and the Class SB Certificates,
an amount equal to the then applicable Certificate Percentage Interest of such Certificate
multiplied by the Overcollateralization Amount.

     Certificate Distribution Amount: For any Payment Date, the amount, if any,
distributable on the Certificates for such Payment Date pursuant to Section 3.05(a)(xv) of the
Indenture.

     Certificate of Trust: The Certificate of Trust filed for the Trust pursuant to
Section 3810(a) of the Statutory Trust Statute.

     Certificate Paying Agent: The Certificate Paying Agent appointed pursuant to Section
3.10 of the Trust Agreement. Initially the Indenture Trustee has been appointed as the Certificate
Paying Agent.

     Certificate Percentage Interest: With respect to any Payment Date and any
Certificate, the Percentage Interest for such Certificate.

     Certificate Register: The register maintained by the Certificate Registrar in which
the Certificate Registrar shall provide for the registration of Certificates and of transfers and
exchanges of Certificates.

     Certificate Registrar: The Certificate Registrar appointed pursuant to Section 3.05
of the Trust Agreement. Initially the Indenture Trustee has been appointed as the Certificate
Registrar.

     Certificateholder: The Person in whose name a Certificate is registered in the
Certificate Register except that, any Certificate registered in the name of the Issuer, the Owner
Trustee or the Indenture Trustee or any Affiliate of the Owner Trustee or the Indenture Trustee
shall be deemed not to be outstanding and the registered holder will not be considered a
Certificateholder for purposes of giving any request, demand, authorization, direction, notice,
consent or waiver under the Indenture or the Trust Agreement; provided that, in determining whether
the Indenture Trustee or the Owner Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Certificates that the Indenture
Trustee or

2

 

the Owner Trustee knows to be so owned shall be so disregarded. Owners of Certificates that have
been pledged in good faith may be regarded as Certificateholders if the pledgee establishes to the
satisfaction of the Indenture Trustee or the Owner Trustee, as the case may be, the pledgee’s right
so to act with respect to such Certificates and that the pledgee is not the Issuer, any other
obligor upon the Certificates or any Affiliate of the Owner Trustee or the Indenture Trustee.

     Certificates: The Class SB Certificates.

     Class: With respect to any Note, all Notes that bear the same Class designation,
(i.e., the [Class A-I-1 Notes as a group, Class A-I-2 Notes as a group, Class A-I-3 Notes as a
group and Class A-II Notes as a group)]. With respect to any Certificate, all Certificates that
bear the same Class designation, (i.e., the [Class SB Certificates as a group]). With respect to
any Regular Interest, all Regular Interests that bear the same class designation.

     [Class A-I-1 Notes: The Class A-I-1 PRS Mortgage-Backed Notes, Series 20[__]-[__], in
substantially the form set forth in Exhibit A-1 to the Indenture.]

     [Class A-I-2 Notes: The Class A-I-2 PRS Mortgage-Backed Notes, Series 20[__]-[__], in
substantially the form set forth in Exhibit A-1 to the Indenture.]

     [Class A-I-3 Notes: The Class A-I-3 PRS Mortgage-Backed Notes, Series 20[__]-[__], in
substantially the form set forth in Exhibit A-1 to the Indenture.]

     [Class A-II Notes: The Class A-II PRS Mortgage-Backed Notes, Series 20[__]-[__], in
substantially the form set forth in Exhibit A-1 to the Indenture.]

     Class A Notes: Collectively, the [Class A-I-1 Notes, Class A-I-2 Notes, Class A-I-3
Notes and Class A-II Notes].

     Class A Principal Distribution Amount: With respect to any Payment Date that is prior
to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect, the
Principal Collection Distribution Amount for such Payment Date. With respect to any Payment Date
on or after the Stepdown Date if a Trigger Event is not in effect as of such Payment Date, the
lesser of (a) the Principal Collection Distribution Amount for such Payment Date and (b) the excess
of (i) the aggregate Note Balance of the Class A Notes as of such Payment Date prior to any
distributions thereon over (ii) the lesser of (x) the product of (1) the applicable Subordination
Percentage and (2) the Pool Balance after giving effect to distributions to be made on such Payment
Date and (y) the Pool Balance after to giving effect to distributions to be made on such Payment
Date less the Overcollateralization Floor.

     Class Principal Balance: For each Class of Notes, the Initial Note Balance thereof as
reduced on each successive Payment Date by principal distributed in respect thereof on such Payment
Date pursuant to Section 3.03 of the Servicing Agreement and Section 3.05 of the Indenture.

     Class SB Certificates: The Class SB Certificates substantially in the form of Exhibit
A to the Trust Agreement and entitled to distributions as provided in the Trust Agreement.

3

 

     Class SB Distribution Amount: On any Payment Date, the sum of (i) Accrued Certificate
Interest for such Payment Date, (ii) the amounts payable to the Certificates pursuant to Section
3.05(a)(ix) of the Indenture and (iii) the Overcollateralization Release Amount, if any, for the
Determination Date related to such Payment Date, reduced, but not below zero, by the Liquidation
Loss Distribution Amount and Overcollateralization Increase Amount for such Payment Date, all of
the foregoing done without double counting either in addition or subtraction.

     Closing Date: [________], 20[__].

     Code: The Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder.

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

     Collection Period: With respect to any Mortgage Loan and Payment Date, the calendar
month preceding any such Payment Date.

     Collections: With respect to any Collection Period, all Interest Collections and
Principal Collections during such Collection Period.

     Combined Loan-to-Value Ratio or CLTV: With respect to each Mortgage Loan, the
ratio, expressed as a percentage, of the sum of (i) the initial principal balance of such Mortgage
Loan, and (ii) any outstanding principal balance, at origination of such Mortgage Loan, of all
other mortgage loans, if any, secured by senior liens on the related Mortgaged Property, to the
Appraised Value, or, when not available, the Stated Value.

     Commission: The Securities and Exchange Commission.

     Corporate Trust Office: With respect to the Indenture Trustee, Certificate Registrar,
Certificate Paying Agent and Paying Agent, the principal corporate trust office of the Indenture
Trustee and Note Registrar at which at any particular time its corporate trust business shall be
administered, which office at the date of the execution of this instrument is located at
[____________________], [____________________], [____________________] [_____], Attention:
[____________________]. With respect to the Owner Trustee, the principal corporate trust office of
the Owner Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of the execution of this Trust Agreement is located at
[____________________], [____________________], [____________________] [_____], Attention:
[____________________].

     Custodial Account: The account or accounts created and maintained by the Servicer
pursuant to Section 3.02(b) of the Servicing Agreement, in which the Servicer shall deposit or
cause to be deposited certain amounts in respect of the Mortgage Loans.

     Custodial Agreement: The Custodial Agreement, dated the Closing Date, among the
Custodian, the Indenture Trustee, the Issuer and the Servicer relating to the custody of the
Mortgage Loans and the Related Documents.

4

 

     Custodian: [____________________] and its successors and assigns, as applicable
pursuant to the Custodial Agreement, or any other successor custodian of the Mortgage Files
appointed by the Indenture Trustee and reasonably acceptable to the Servicer.

     Cut-Off Date: [____________________], 20[__].

     Cut-Off Date Principal Balance: With respect to any Mortgage Loan, the unpaid
principal balance thereof as of the close of business on the last day of the Billing Cycle
immediately prior to the Cut-Off Date.

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

     Definitive Notes: Any definitive, fully registered Note, as described in Section 4.06
of the Indenture.

     Deleted Loan: A Mortgage Loan replaced or to be replaced with an Eligible Substitute
Loan.

     Delinquent: As used herein, a Mortgage Loan is considered to be: “30 to 59 days” or
“30 or more days” delinquent when a payment due on any scheduled due date remains unpaid as of the
close of business on the next following monthly scheduled due date; “60 to 89 days” or “60 or more
days” delinquent when a payment due on any scheduled due date remains unpaid as of the close of
business on the second following monthly scheduled due date; and so on. The determination as to
whether a Mortgage Loan falls into these categories is made as of the close of business on the last
business day of each month. For example, a Mortgage Loan with a payment due on May 1 that remained
unpaid as of the close of business on June 30 would then be considered to be 30 to 59 days
delinquent. Delinquency information as of the Cut-off Date is determined and prepared as of the
close of business on the last business day immediately prior to the Cut-off Date.

     Delinquency Percentages: With respect to any Payment Date, the percentage equivalent
of a fraction (A) the numerator of which is the Principal Balance that are Delinquent for 60 days
or more as of such Payment Date and (B) the denominator of which is the Pool Balance, in each case
as of the beginning of the related Collection Period, expressed as a percentage.

     Depositor: Phoenix Residential Securities, LLC, a Delaware limited liability company,
or its successor in interest.

     Depository: The Depository Trust Company or a successor appointed by the Indenture
Trustee with the approval of the Issuer. Any successor to the Depository shall be an organization
registered as a “clearing agency” pursuant to Section 17A of the Exchange Act and the regulations
of the Commission thereunder.

     Depository Participant: A Person for whom, from time to time, the Depository effects
book-entry transfers and pledges of securities deposited with the Depository.

5

 

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

     Distribution Account: The account or accounts created and maintained by the
Certificate Paying Agent pursuant to Section 3.10(c) of the Trust Agreement. The Certificate
Paying Agent will make all distributions on the Certificates from money on deposit in the
Distribution Account.

     Due Date: With respect to each Mortgage Loan, the date on which monthly payments on
such Mortgage Loan are due.

     Eligible Account: An account that is any of the following: (i) maintained with a
depository institution the short-term debt obligations of which have been rated by each Rating
Agency in its highest rating category available, or (ii) an account or accounts maintained with a
depository institution or trust company, as long as its short-term debt obligations are rated P-1
by Moody’s, and A-2 by Standard & Poor’s (or the equivalent) or better by each Rating Agency, and
its long term debt obligations are rated A2 by Moody’s and AA- by Standard & Poor’s (or the
equivalent) or better by each Rating Agency; provided that if on any day the rating of such
depository institution falls below Standard & Poor’s rating of A-2, such depository institution
will be replaced within 30 days of such day, or (iii) a segregated trust account or accounts
maintained in the corporate trust division of a depository institution or trust company, acting in
its fiduciary capacity, or (iv) an account or accounts of a depository institution acceptable to
each Rating Agency (as evidenced in writing by each Rating Agency that use of any such account will
not cause a Rating Event.

     Eligible Substitute Loan: A Mortgage Loan substituted by the Seller for a Deleted
Loan, which must, on the date of such substitution, as confirmed in an Officers’ Certificate
delivered to the Indenture Trustee, (i) have an outstanding principal balance, after deduction of
the principal portion of the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Mortgage Loan for a Deleted Mortgage Loan, an aggregate outstanding
principal balance, after such deduction), not in excess of the outstanding principal balance of the
Deleted Loan (the amount of any shortfall to be deposited by the Seller in the Custodial Account in
the month of substitution); (ii) comply with each representation and warranty made by [____] and
set forth in Section 3.1(b) of the Purchase Agreement, other than clauses (viii), (xiii), (xxiv),
(xxv)(B), (xxvi) and (xxvii) thereof, and comply with each of the representations and warranties
made by [________] set forth in Section 3.1(d)(II) of the Purchase Agreement, as of the date of
substitution; (iii) have a Loan Rate and Net Loan Rate no lower than and not more than 1% per annum
higher than the Loan Rate and Net Loan Rate, respectively, of the Deleted Loan as of the date of
substitution; (iv) have a CLTV at the time of substitution no higher than that of the Deleted Loan
at the time of substitution; (v) have a remaining term to stated maturity not greater than (and not
more than one year less than) that of the Deleted Loan; and (vi) not be 30 days or more delinquent.

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

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     Event of Default: With respect to the Indenture, any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or
be effected by operation of law or pursuant to any judgment, decree or order of any court or any
order, rule or regulation of any administrative or governmental body):

     (a) a default in the payment of the principal of, any installment of the principal of or
interest on any Note when the same becomes due and payable, and such default shall continue for a
period of five days;

     (b) there occurs a default in the observance or performance in any material respect of any
covenant or agreement of the Issuer made in the Indenture, or any representation or warranty of the
Issuer made in the Indenture or in any certificate delivered pursuant hereto or in connection
herewith proving to have been incorrect in any material respect as of the time when the same shall
have been made that has a material adverse effect on the Noteholders, and such default shall
continue or not be cured, or the circumstance or condition in respect of which such representation
or warranty was incorrect shall not have been eliminated or otherwise cured, for a period of 30
days after there shall have been given, by registered or certified mail, to the Issuer by the
Indenture Trustee or to the Issuer and the Indenture Trustee by the Noteholders of at least 25% of
the aggregate Note Balance of the Notes, a written notice specifying such default or incorrect
representation or warranty and requiring it to be remedied and stating that such notice is a notice
of default hereunder;

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

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

     Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     Excess Spread: With respect to any Payment Date, the excess, if any, of (i) Interest
Collections for the related Collection Period over (ii) the sum of (x) the sum of the premium
allocable to such Payment Date and (y) the aggregate amount distributed to the Noteholders as
interest on such Payment Date pursuant to Section 3.05(a)(i) of the Indenture.

7

 

     Expenses: The meaning specified in Section 7.02 of the Trust Agreement.

     Fannie Mae: Fannie Mae, formerly the Federal National Mortgage Association, or any
successor thereto.

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

     Final Payment Date: The Payment Date in [__________].

     Fiscal Year: The fiscal year of the Trust, which shall end on December 31 of each
year.

     Foreclosure Profit: With respect to a Liquidated Mortgage Loan, the amount, if any,
by which (i) the aggregate of Liquidation Proceeds net of Liquidation Expenses exceeds (ii) the
Principal Balance of such Liquidated Mortgage Loan (plus accrued and unpaid interest thereon at the
applicable Loan Rate from the date interest was last paid through the date of receipt of the final
Liquidation Proceeds) immediately prior to the final recovery of the related Liquidation Proceeds.

     Form 10-K Certification: As defined in Section 4.02(c) of the Servicing Agreement.

     Freddie Mac: Freddie Mac, formerly the Federal Home Loan Mortgage Corporation, or any
successor thereto.

     GAAP: Generally accepted accounting principles.

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

     Group I Liquidation Loss Amount: With respect to any Payment Date, Liquidation Loss
Amounts related to the Group I Loans.

     Group I Liquidation Loss Distribution Amount: With respect to any Payment Date, an
amount equal to the product of the Group I Liquidation Loss Percentage for such Payment Date and
the Excess Spread available for distribution on such Payment Date in respect of Liquidation Loss
Amounts, but not more than the Group I Liquidation Loss Distribution Entitlement for such Payment
Date.

     Group I Liquidation Loss Distribution Entitlement: With respect to any Payment Date,
an amount equal to the sum of (A) 100% of the Group I Liquidation Loss Amounts on such

8

 

Payment Date, plus (B) any Group I Liquidation Loss Amounts remaining undistributed from any
preceding Payment Date. Any Group I Liquidation Loss Amount remaining undistributed from any
preceding Payment Date shall not be required to be paid as a Group I Liquidation Loss Distribution
Amount to the extent that a Group I Liquidation Loss Amount was paid on the Class A-I-1 Notes by
means of excess interest or was reflected in the reduction of the Overcollateralization Amount
related to the Group I Loans.

     Group I Liquidation Loss Percentage: With respect to any Payment Date, a fraction,
expressed as a percentage, the numerator of which is the Group I Liquidation Loss Distribution
Entitlement for such Payment Date and the denominator of which is the sum of the Group I
Liquidation Loss Distribution Entitlement and the Group II Liquidation Loss Distribution
Entitlement, in each case, for such Payment Date.

     Group I Loans: The Mortgage Loans designated on the Mortgage Loan Schedule attached
hereto as Annex A-1 to the Mortgage Loan Schedule. The Group I Loans relate to the Class A-I-1,
Class A-I-2 and Class A-I-3 Notes and the Certificates.

     Group I Overcollateralization Increase Amount: With respect to any Payment Date, an
amount equal to the product of the Group I Overcollateralization Increase Amount Percentage and the
Overcollateralization Increase Amount for such Payment Date.

     Group I Overcollateralization Increase Amount Percentage: With respect to any Payment
Date, a fraction, expressed as a percentage, the numerator of which is equal to the sum of the
Class A-I-1 Note Balance, the Class A-I-2 Note Balance and the Class I-A-3 Note Balance on such
Payment Date after payments of the Group I Principal Distribution Amount and Group I Liquidation
Loss Distribution Amount thereon, and the denominator of which is the aggregate Note Balance of the
Class A Notes on such Payment Date after all payments thereon.

     Group I Principal Distribution Amount: On any Payment Date, the Class A Principal
Distribution Amount for such Payment Date multiplied by a fraction, the numerator of which is the
portion of the Principal Collections related to the Group I Loans for such Payment Date and the
denominator of which is the Principal Collections for all of the Mortgage Loans for such Payment
Date.

     Group II Liquidation Loss Amount: With respect to any Payment Date, Liquidation Loss
Amounts related to the Group II Loans.

     Group II Liquidation Loss Distribution Amount: With respect to any Payment Date, an
amount equal to the product of the Group II Liquidation Loss Percentage for such Payment Date and
the Excess Spread available for distribution on such Payment Date in respect of Liquidation Loss
Amounts, but not more than the Group II Liquidation Loss Distribution Entitlement for such Payment
Date.

     Group II Liquidation Loss Distribution Entitlement: With respect to any Payment Date,
an amount equal to the sum of (A) 100% of the Group II Liquidation Loss Amounts on such Payment
Date, plus (B) any Group II Liquidation Loss Amounts remaining undistributed from any preceding
Payment Date. Any Group II Liquidation Loss Amount remaining undistributed from any preceding
Payment Date shall not be required to be paid as a Group II Liquidation Loss

9

 

Distribution Amount to the extent that a Group II Liquidation Loss Amount was paid on the Class
A-II Notes by means of excess interest or was reflected in the reduction of the
Overcollateralization Amount related to the Group II Loans.

     Group II Liquidation Loss Percentage: With respect to each Payment Date, a fraction,
expressed as a percentage, the numerator of which is the Group II Liquidation Loss Distribution
Entitlement for such Payment Date and the denominator of which is the sum of the Group I
Liquidation Loss Distribution Entitlement and the Group II Liquidation Loss Distribution
Entitlement, in each case, for such Payment Date.

     Group II Loans: The Mortgage Loans designated on the Mortgage Loan Schedule attached
hereto as Annex A-2 to the Mortgage Loan Schedule. The Group II Loans relate to the Class A-II
Notes and the Certificates.

     Group II Overcollateralization Increase Amount: With respect to any Payment Date, an
amount equal to the product of the Group II Overcollateralization Increase Amount Percentage and
the Overcollateralization Increase Amount for such Payment Date.

     Group II Overcollateralization Increase Amount Percentage: With respect to any Payment
Date, a fraction, expressed as a percentage, the numerator of which is equal to the sum of the sum
of the Class A-II Note Balance on such Payment Date after payments of the Group II Principal
Distribution Amount and Group II Liquidation Loss Distribution Amount thereon, and the denominator
of which is the aggregate Note Balance of the Class A Notes on such Payment Date after all payments
thereon.

     Group II Principal Distribution Amount: On any Payment Date, the Class A Principal
Distribution Amount for that Payment Date multiplied by a fraction, the numerator of which is the
portion of the Principal Collections related to the Group II Loans for that Payment Date and the
denominator of which is the Principal Collections for all of the Mortgage Loans for that Payment
Date.

     Indemnified Party: The meaning specified in Section 7.02 of the Trust Agreement.

     Indenture: The Indenture, dated as of the Closing Date, between the Issuer and the
Indenture Trustee.

     Indenture Trustee: [________], a national banking association, and its successors and
assigns or any successor indenture trustee appointed pursuant to the terms of the Indenture.

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

10

 

     Independent Certificate: A certificate or opinion to be delivered to the Indenture
Trustee under the circumstances described in, and otherwise complying with, the applicable
requirements of Section 10.01 of the Indenture, made by an Independent appraiser or other expert
appointed by an Issuer Order and approved by the Indenture Trustee in the exercise of reasonable
care, and such opinion or certificate shall state that the signer has read the definition of
“Independent” in this Indenture and that the signer is Independent within the meaning thereof.

     Initial Aggregate Note Balance: $[__________].

     Initial Class A-I-1 Note Balance: $[__________].

     Initial Class A-I-2 Note Balance: $[__________].

     Initial Class A-I-3 Note Balance: $[__________].

     Initial Class A-II Note Balance: $[__________].

     Initial Certificate Balance: $[__________].

     Initial Note Balance: The [Initial Class A-I-1 Note Balance, Initial Class A-I-2 Note
Balance, Initial Class A-I-3 Note Balance and Initial Class A-II Note Balance] as applicable.

     Initial Pool Balance: The aggregate Principal Balances of the Mortgage Loans as of
the Cut-off Date.

     Insolvency Event: With respect to a specified Person, (a) the filing of a decree or
order for relief by a court having jurisdiction in the premises in respect of such Person or any
substantial part of its property in an involuntary case under any applicable bankruptcy, insolvency
or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official for such Person or for any substantial part of
its property, or ordering the winding-up or liquidation of such Person’s affairs, and such decree
or order shall remain unstayed and in effect for a period of 60 consecutive days; or (b) the
commencement by such Person of a voluntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or the consent by such Person to the entry of an
order for relief in an involuntary case under any such law, or the consent by such Person to the
appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of its property, or
the making by such Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due or the admission by such Person in
writing (as to which the Indenture Trustee shall have notice) of its inability to pay its debts
generally, or the adoption by the Board of Directors or managing member of such Person of a
resolution which authorizes action by such Person in furtherance of any of the foregoing.

     Insurance Proceeds: Proceeds paid by any insurer pursuant to any insurance policy
covering a Mortgage Loan which are required to be remitted to the Servicer, or amounts required to
be paid by the Servicer pursuant to the next to last sentence of Section 3.04 of the Servicing
Agreement, net of any component thereof (i) covering any expenses incurred by or on behalf of the
Servicer in connection with obtaining such proceeds, (ii) that is applied to the restoration or

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repair of the related Mortgaged Property, (iii) released to the related Mortgagor in accordance
with the Servicer’s normal servicing procedures or (iv) required to be paid to any holder of a
mortgage senior to such Mortgage Loan.

     Interest Collections: With respect to any Payment Date, the sum of all payments by or
on behalf of Mortgagors and any other amounts constituting interest (including without limitation
such portion of Net Liquidation Proceeds and Repurchase Prices as is allocable to interest on the
applicable Mortgage Loan) as is paid by the Seller or the Servicer (including any optional
servicing advance) or is collected and applied by the Servicer under the Mortgage Loans during the
related Collection Period, and reduced by the Servicing Fee for the related Collection Period and
by any fees (including annual fees) or late charges or similar administrative fees paid by
Mortgagors during the related Collection Period. The terms of the related Mortgage Note shall
determine the portion of each payment in respect of such Mortgage Loan that constitutes principal
or interest.

     Interest Period: With respect to each Class of Notes, other than the first Payment
Date, the period commencing on the Payment Date in the month immediately preceding the month in
which such Payment Date occurs and ending on the day preceding such Payment Date, and in the case
of the first Payment Date, the period commencing on the Closing Date and ending on the day
preceding the first Payment Date.

     Issuer or Trust: The PRS Series 20[__]-[__] Trust, a Delaware statutory trust, or its
successor in interest.

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

     Lien: Any mortgage, deed of trust, pledge, conveyance, hypothecation, assignment,
participation, deposit arrangement, encumbrance, lien (statutory or other), preference, priority
right or interest or other security agreement or preferential arrangement of any kind or nature
whatsoever, including, without limitation, any conditional sale or other title retention agreement,
any financing lease having substantially the same economic effect as any of the foregoing and the
filing of any financing statement under the UCC (other than any such financing statement filed for
informational purposes only) or comparable law of any jurisdiction to evidence any of the
foregoing; provided, however, that any assignment pursuant to Section 6.02 of the Servicing
Agreement shall not be deemed to constitute a Lien.

     Liquidated Mortgage Loan: With respect to any Payment Date, any Mortgage Loan in
respect of which the Servicer has determined, in accordance with the servicing procedures specified
in the Servicing Agreement, as of the end of the related Collection Period that substantially all
Liquidation Proceeds which it reasonably expects to recover, if any, with respect to the
disposition of the related REO Property have been recovered.

     Liquidation Expenses: All out-of-pocket expenses (exclusive of overhead) incurred by
or on behalf of the Servicer in connection with the liquidation of any Mortgage Loan and not
recovered under any insurance policy, including legal fees and expenses, any unreimbursed amount
expended (including, without limitation, amounts advanced to correct defaults on any

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mortgage loan which is senior to such Mortgage Loan and amounts advanced to keep current or pay off
a mortgage loan that is senior to such Mortgage Loan) respecting such Mortgage Loan and any related
and unreimbursed expenditures for real estate property taxes or for property restoration,
preservation or insurance against casualty loss or damage.

     Liquidation Loss Amount: With respect to any Payment Date and any Mortgage Loan that
became a Liquidated Mortgage Loan during the related Collection Period, the unrecovered portion of
the Principal Balance of such Mortgage Loan and any unpaid accrued interest thereon at the end of
such Collection Period, after giving effect to the Net Liquidation Proceeds applied in reduction of
such Principal Balance.

     Liquidation Loss Distribution Amount: With respect to any Payment Date, the Group I
Liquidation Loss Distribution Amount or the Group II Liquidation Loss Distribution Amount, as
applicable.

     Liquidation Proceeds: Proceeds if any received in connection with the liquidation of
any Mortgage Loan or related REO Property, whether through trustee’s sale, foreclosure sale or
otherwise.

     Loan Group: Loan Group I or Loan Group II, as applicable.

     Loan Group I: The Mortgage Loans designated on the Mortgage Loan Schedule.

     Loan Group II: The Mortgage Loans designated on the Mortgage Loan Schedule.

     Loan Rate: With respect to any Mortgage Loan and any day, the per annum rate of
interest applicable under the related Mortgage Note.

     Lost Note Affidavit: With respect to any Mortgage Loan as to which the original
Mortgage Note has been permanently lost or destroyed and has not been replaced, an affidavit from
the related Seller certifying that the original Mortgage Note has been lost, misplaced or destroyed
(together with a copy of the related Mortgage Note, if available).

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

     MERS® System: The system of recording transfers of Mortgages electronically
maintained by MERS.

     MIN: The Mortgage Identification Number for Mortgage Loans registered with MERS on
the MERS® System.

     MOM Loan: With respect to any Mortgage Loan, MERS acting as the mortgagee of such
Mortgage Loan, solely as nominee for the originator of such Mortgage Loan and its successors and
assigns, at the origination thereof.

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     Monthly Payment: With respect to any Mortgage Loan (including any REO Property) and
any Due Date, the payment of principal and interest due thereon in accordance with the terms of
such Mortgage Loan.

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

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

     Mortgage File: With respect to each Mortgage Loan:

     (i) the original Mortgage Note endorsed without recourse to the order of the Trustee (which
endorsement shall contain either an original signature or a facsimile signature of an authorized
officer of [____]) or, with respect to any Mortgage Loan as to which the original Mortgage Note has
been permanently lost or destroyed and has not been replaced, a Lost Note Affidavit;

     (ii) the original Mortgage, noting the presence of the MIN of the Mortgage Loan, if the
Mortgage is registered on the MERS® System, and language indicating that the Mortgage Loan is a MOM
Loan if the Mortgage Loan is a MOM Loan, with evidence of recording thereon, or, if the original
Mortgage has not yet been returned from the public recording office, a copy of the original
Mortgage certified by [____] that such Mortgage has been sent for recording, or a county certified
copy of such Mortgage in the event the recording office keeps the original or if the original is
lost;

     (iii) unless the Mortgage Loan is registered on the MERS® System, original assignments (which
may be included in one or more blanket assignments if permitted by applicable law) of the Mortgage
in recordable form from [____] to “[________], as Indenture Trustee under that certain Indenture
dated as of [________], 20[__], for PRS Series 20[__]-[__] Trust, Mortgage-Backed Notes” c/o the
Servicer at an address specified by the Servicer;

     (iv) originals of any intervening assignments of the Mortgage from the originator to [____]
(or to MERS, if the Mortgage Loan is registered on the MERS® System, and which notes the presence
of a MIN), with evidence of recording thereon, or, if the original of any such intervening
assignment has not yet been returned from the public recording office, a copy of such original
intervening assignment certified by [____] that such original intervening assignment has been sent
for recording; and

     (v) a true and correct copy of each assumption, modification, consolidation or substitution
agreement, if any, relating to such Mortgage Loan; and

     (vi) any documents required to be added to such documents pursuant to the Purchase Agreement,
the Trust Agreement or the Servicing Agreement.

     It is understood that the Mortgage File (other than item (i) above) may be retained in
microfilm, microfiche, optical storage or magnetic media in lieu of hard copy; provided, that with
respect to any Mortgage Loan not registered on the MERS® System, the original assignment of
Mortgage described in clause (iii) above shall be retained in the Mortgage File.

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     Mortgage Loan Schedule: The initial schedule of Mortgage Loans as of the Cut-Off Date
set forth in Exhibit A of the Servicing Agreement, which schedule sets forth as to each Mortgage
Loan and the related Loan Group (i) the Cut-Off Date Principal Balance, (ii) the loan number and
(iii) the lien position of the related Mortgage.

     Mortgage Loans: At any time, all mortgage loans that have been sold to the Issuer
pursuant to the Trust Agreement, which are listed on the Mortgage Loan Schedule attached to the
Servicing Agreement, together with all monies due or become due thereunder or the Related
Documents, and that remain subject to the terms thereof.

     Mortgage Note: With respect to a Mortgage Loan, the promissory note pursuant to which
the related Mortgagor agrees to pay the indebtedness evidenced thereby and secured by the related
Mortgage as modified or amended.

     Mortgaged Property: The underlying property, including real property and improvements
thereon, securing a Mortgage Loan.

     Mortgagor: The obligor or obligors under a Mortgage Note.

     Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan, Liquidation
Proceeds, Liquidation Expenses (but not including the portion, if any, of such amount that exceeds
the Principal Balance of, plus accrued and unpaid interest on, such Mortgage Loan at the end of the
Collection Period immediately preceding the Collection Period in which such Mortgage Loan became a
Liquidated Mortgage Loan) and including any Recovery Amounts.

     Net Loan Rate: With respect to any Payment Date and any Mortgage Loan, the Loan Rate
of that Mortgage Loan applicable to the Due Date in the related Collection Period, net of the
Servicing Fee Rate.

     Net Worth: As of any date of determination, the net worth of [____] and its
consolidated subsidiaries, as determined in accordance with GAAP.

     Non-United States Person: Any Person other than a United States Person.

     Nonrecoverable Advance: Any Advance or Subservicer Advance previously made or
proposed to be made by the Servicer or Subservicer (as applicable) in respect of a Mortgage Loan
(other than a Deleted Mortgage Loan) which, in the good faith judgment of the Servicer, will not,
or, in the case of a proposed Advance, would not, be ultimately recoverable by the Servicer from
related Late Collections, Insurance Proceeds, Liquidation Proceeds or REO Proceeds. To the extent
that any Mortgagor is not obligated under the related Mortgage documents to pay or reimburse any
portion of any Servicing Advances that are outstanding with respect to the related Mortgage Loan as
a result of a modification of such Mortgage Loan by the Servicer, which forgives amounts which the
Servicer or Subservicer had previously advanced, and the Servicer determines that no other source
of payment or reimbursement for such Advances is available to it, such Servicing Advances shall be
deemed to be Nonrecoverable Advances. The determination by the Servicer that it has made a
Nonrecoverable Advance shall be evidenced by an Officers’ Certificate delivered to the Depositor,
the Indenture Trustee and the Servicer. Notwithstanding the above, the Indenture Trustee shall be
entitled to rely upon any

15

 

determination by the Servicer that any Advance previously made is a Nonrecoverable Advance or that
any proposed Advance, if made, would constitute a Nonrecoverable Advance. The determination by the
Servicer that it has made a Nonrecoverable Advance or that any proposed Advance, if made, would
constitute a Nonrecoverable Advance, shall be evidenced by a certificate of a Servicing Officer
delivered to the Depositor.

     Note Balance: With respect to any Payment Date and the Notes, the Initial Aggregate
Note Balance reduced by all payments of principal on the Notes prior to such Payment Date and any
allocation of Liquidation Loss Amounts on the Notes prior to such Payment Date.

     Note Owner or Owner: The Beneficial Owner of a Note.

     Note Payment Account: The account established by the Indenture Trustee pursuant to
Sections 3.01 and 8.02 of the Indenture and Section 5.01 of the Servicing Agreement. Amounts
deposited in the Note Payment Account will be distributed by the Indenture Trustee in accordance
with Section 3.05 of the Indenture.

     Note Rate: With respect to each Class of Notes, each Interest Period and the related
Payment Date, a per annum rate equal to the least of:

     (i) for the Class A-I-1 Notes, [____]%;

     (ii) for the Class A-I-2 Notes, [____]%;

     (iii) for the Class A-I-3 Notes, [____]%; and

     (iv) for the Class A-II Notes, [____]%.

     Note Register: The register maintained by the Note Registrar in which the Note
Registrar shall provide for the registration of Notes and of transfers and exchanges of Notes.

     Note Registrar: The Indenture Trustee, in its capacity as Note Registrar.

     Noteholder or Holder: The Person in whose name a Note is registered in the Note
Register, except that, any Note registered in the name of the Depositor, the Issuer or the
Indenture Trustee or any Affiliate of any of them shall be deemed not to be outstanding and the
registered holder will not be considered a Noteholder for purposes of giving any request, demand,
authorization, direction, notice, consent or waiver under the Indenture or the Trust Agreement;
provided, that in determining whether the Indenture Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Notes that the
Indenture Trustee or the Owner Trustee knows to be so owned shall be so disregarded. Owners of
Notes that have been pledged in good faith may be regarded as Noteholders if the pledgee thereof
establishes to the satisfaction of the Indenture Trustee or the Owner Trustee such pledgee’s right
so to act with respect to such Notes and that such pledgee is not the Issuer, any other obligor on
the Notes or any Affiliate of any of the foregoing Persons.

     Notes: Any of the [Class A-I-1 Notes, Class A-I-2 Notes, Class A-I-3 Notes, or Class
A-II Notes] issued and outstanding pursuant to the Indenture.

16

 

     Officer’s Certificate: With respect to the Servicer, a certificate signed by the
President, Managing Director, a Director, a Vice President or an Assistant Vice President, of the
Servicer and delivered to the Indenture Trustee. With respect to the Issuer, a certificate signed
by any Authorized Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 10.01 of the Indenture, and delivered to the
Indenture Trustee. Unless otherwise specified, any reference in the Indenture to an Officer’s
Certificate shall be to an Officer’s Certificate of any Authorized Officer of the Issuer.

     Opinion of Counsel: A written opinion of counsel of a law firm reasonably acceptable
to the recipient thereof. Any Opinion of Counsel for the Servicer may be provided by in-house
counsel for the Servicer if reasonably acceptable.

     Optional Call Date: Any Payment Date on which the Note Balance is less than 10% of
the Initial Aggregate Note Balance prior to giving effect to any payments of principal on such
Payment Date.

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

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

     (ii) Notes in exchange for or in lieu of which other Notes have been executed, authenticated
and delivered pursuant to the Indenture unless proof satisfactory to the Indenture Trustee is
presented that any such Notes are held by a holder in due course;

     Overcollateralization Amount: With respect to any Payment Date, the amount (but not
less than zero), if any, by which (a) the aggregate outstanding Principal Balance of the Mortgage
Loans as of the close of business on the last day of the related Collection Period exceeds (b) the
aggregate Note Balance of the Notes.

     Overcollateralization Floor: An amount equal to [____]% of the Initial Pool Balance.

     Overcollateralization Increase Amount: With respect to any Payment Date, the amount
necessary to increase the Overcollateralization Amount to the Overcollateralization Target Amount.

     Overcollateralization Release Amount: With respect to any Payment Date, the excess,
if any, of the Overcollateralization Amount over the Overcollateralization Target Amount, which, on
such Payment Date, shall not exceed an amount equal to the total Principal Collections for such
Payment Date.

     Overcollateralization Target Amount: With respect to any Payment Date prior to the
Stepdown Date, the Required Overcollateralization Amount will be [____]% of the Initial Pool
Balance. With respect to any Payment Date on or after the Stepdown Date, an amount equal to the
greater of (i) [____]% of the Pool Balance as of the last day of the related Collection Period and
(ii) [____]% of the Initial Pool Balance. The Overcollateralization Target Amount may be

17

 

reduced from time to time written notice from each Rating Agency that the rating will not be
reduced or withdrawn as a result of the change in the Overcollateralization Target Amount.

     Owner Trust: PRS Series 20[__]-[__] Trust, created by the Certificate of Trust
pursuant to the Trust Agreement.

     Owner Trustee: [____________], not in its individual capacity but solely as owner
trustee, and its successors and assigns or any successor Owner Trustee appointed pursuant to the
terms of the Trust Agreement.

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

     P&I Advances: Any advance made by the Servicer of a principal or interest payment
with respect to a Mortgage Loan.

     Paying Agent: Any paying agent or co-paying agent appointed pursuant to Section 3.03
of the Indenture, which initially shall be the Indenture Trustee.

     Payment Date: The 25th day of each month, or if such day is not a Business
Day, then the next Business Day.

     Percentage Interest: With respect to any Note and Payment Date, the percentage
obtained by dividing the Note Balance of such Note by the aggregate Note Balance of all Notes prior
to such Payment Date. With respect to any Certificate and any Payment Date, the Percentage
Interest stated on the face of such Certificate.

     Permitted Investments: One or more of the following:

     (i) obligations of or guaranteed as to principal and interest by the United States or any
agency or instrumentality thereof when such obligations are backed by the full faith and credit of
the United States;

     (ii) repurchase agreements on obligations specified in clause (i) above maturing not more than
one month from the date of acquisition thereof; provided, that the unsecured short-term debt
obligations of the party agreeing to repurchase such obligations are at the time rated by each
Rating Agency in its highest short-term rating category available;

     (iii) federal funds, certificates of deposit, demand deposits, time deposits and bankers’
acceptances (which shall each have an original maturity of not more than 90 days and, in the case
of bankers’ acceptances, shall in no event have an original maturity of more than 365 days or a
remaining maturity of more than 30 days) denominated in United States dollars of any U.S.
depository institution or trust company incorporated under the laws of the United States or any
state thereof or of any domestic branch of a foreign depository institution or trust company;
provided, that the short-term debt obligations of such depository institution or trust company (or,
if the only Rating Agency is Standard & Poor’s, in the case of the principal depository institution
in a depository institution holding company, debt obligations of the depository institution

18

 

holding company) at the date of acquisition thereof have been rated by each Rating Agency in its
highest short-term rating category available; and provided further, that if the only Rating Agency
is Standard & Poor’s and if the depository or trust company is a principal subsidiary of a bank
holding company and the debt obligations of such subsidiary are not separately rated, the
applicable rating shall be that of the bank holding company; and provided further, that if the only
Rating Agency is Standard & Poor’s and the original maturity of such short-term debt obligations of
a domestic branch of a foreign depository institution or trust company shall exceed 30 days, the
short-term rating of such institution shall be A-1+;

     (iv) commercial paper (having original maturities of not more than 365 days) of any
corporation incorporated under the laws of the United States or any state thereof which on the date
of acquisition has been rated by each Rating Agency in its highest short-term rating category
available; provided, that such commercial paper shall have a remaining maturity of not more than 30
days;

     (v) a money market fund or a qualified investment fund (including without limitation, any such
fund for which the Indenture Trustee or an Affiliate of the Indenture Trustee acts as an advisor or
a manager) rated by each Rating Agency in one of its two highest long-term rating categories
available (if so rated by such Rating Agency); and

     (vi) other obligations or securities that are acceptable to each Rating Agency as a Permitted
Investment hereunder and will not cause a Rating Event, as evidenced in writing;

provided, however, that no instrument shall be a Permitted Investment if it represents, either (1)
the right to receive only interest payments with respect to the underlying debt instrument or (2)
the right to receive both principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such instrument provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying obligations.
References herein to the highest long-term debt rating category available shall mean AAA in the
case of Standard & Poor’s and Aaa in the case of Moody’s, and references herein to the highest
short-term rating category available shall mean A-1 in the case of Standard & Poor’s and P-1 in the
case of Moody’s.

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

     Plan: Any employee benefit plan or certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and bank collective investment
funds and insurance company general or separate accounts in which such plans, accounts or
arrangements are invested, that are subject to Title I of ERISA or Section 4975 of the Code, as
described in Section 3.05 of the Trust Agreement.

     Plan Assets: The meaning specified in Section 2510.3-101 of the Department of Labor
Regulations, as modified by Section 3(42) of ERISA, and as described in Section 3.05 of the Trust
Agreement.

19

 

     Pool Balance: With respect to any date, the aggregate Principal Balance of all
Mortgage Loans as of such date.

     Predecessor Note: With respect to any Note, every previous Note evidencing all or a
portion of the same debt as that evidenced by such Note; and, for the purpose of this definition,
any Note authenticated and delivered under Section 4.03 of the Indenture in lieu of a mutilated,
lost, destroyed or stolen Note shall be deemed to evidence the same debt as such mutilated, lost,
destroyed or stolen Note.

     Primary Insurance Policy: With respect to any Mortgage Loan, each primary policy of
mortgage guaranty insurance or replacement policy therefor. Each Mortgage Loan with a Primary
Insurance Policy is identified on Exhibit A with the exception of either code “23” or “96” under
the column “MI CO CODE.”

     Principal Balance: With respect to any Mortgage Loan, other than a Liquidated
Mortgage Loan, and as of any day, the related Cut-Off Date Principal Balance, minus all collections
credited as principal in respect of any such Mortgage Loan in accordance with the related Mortgage
Note and applied in reduction of the Principal Balance thereof. For purposes of this definition, a
Liquidated Mortgage Loan shall be deemed to have a Principal Balance equal to the Principal Balance
of the related Mortgage Loan immediately prior to the final recovery of substantially all related
Liquidation Proceeds and a Principal Balance of zero thereafter.

     Principal Collections: With respect to any Payment Date, an amount equal to the sum
of (i) the principal portion of all scheduled Monthly Payments on the Mortgage Loans received
during the related Collection Period, as reported by the Servicer or the related Subservicer; (ii)
the principal portion of all proceeds of the repurchase of any Mortgage Loans (or, in the case of a
substitution, any Substitution Adjustment Amounts) during the related Collection Period; and (iii)
the principal portion of all other unscheduled collections received on the Mortgage Loans during
the related Collection Period (or deemed to be received during the related Collection Period),
including, without limitation, full and partial Principal Prepayments made by the respective
Mortgagors, Net Liquidation Proceeds and Subsequent Net Recovery Amounts, to the extent not
previously distributed.

     Principal Collection Distribution Amount: For any Payment Date, the total Principal
Collections for such Payment Date less any Overcollateralization Release Amount for such Payment
Date.

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

     Program Guide: The GMAC Bank Correspondent Funding Client Guide, as in effect from
time to time.

     Purchase Agreement: The mortgage loan purchase agreement dated as of the Closing
Date, among the Seller, the Purchaser, the Issuer and the Indenture Trustee.

     Purchase Price: The amounts specified in Section 2.3(a) of the Purchase Agreement.

20

 

     Purchaser: Phoenix Residential Securities, LLC, as purchaser under the Purchase
Agreement.

     Rating Agency: Each of [Moody’s and Standard & Poor’s] or, if any such organization
or a successor thereto is no longer in existence, such nationally recognized statistical rating
organization, or other comparable Person, designated by the Depositor, notice of which designation
shall be given to the Indenture Trustee. References herein to the highest short term unsecured
rating category of a Rating Agency shall mean A-1 or better in the case of Standard & Poor’s and
P-1 or better in the case of Moody’s; and in the case of any other Rating Agency, shall mean such
equivalent ratings. References herein to the highest long-term rating category of a Rating Agency
shall mean “AAA” in the case of Standard & Poor’s and “Aaa” in the case of Moody’s; and in the case
of any other Rating Agency, shall mean such equivalent rating.

     Record Date: With respect to any Payment Date, the close of business on the last
Business Day preceding such Payment Date, and in the case of the first Payment Date, the Closing
Date.

     Recovery Amount: Amounts collected on a Mortgage Loan after the Mortgage Loan becomes
a Liquidated Mortgage Loan, net of any Servicing Fee, Recovery Fee and any reimbursement for
advances and expenses of the Servicer.

     Recovery Fee: A customary fee calculated based on additional recovery amounts charged
for the collection of such additional recovery amounts on any Mortgage Loan after the date that
such Mortgage Loan became a Liquidated Mortgage Loan.

     Regulation AB: Subpart 229.1100 — Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification
and interpretation as have been provided by the Commission in the adopting release (Mortgage
Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (January 7,
2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from
time to time.

     Related Documents: With respect to each Mortgage Loan, the documents contained in the
Mortgage File.

     Relief Act Shortfalls: With respect to any Payment Date, for any Mortgage Loan as to
which there has been a reduction in the amount of interest collectible thereon for the related
Collection Period as a result of the application of the Servicemembers Civil Relief Act, as
amended, or any similar state legislation or regulations, the shortfall, if any, equal to (i) one
month’s interest on the Principal Balance of such Mortgage Loan at the applicable Loan Rate, over
(ii) the interest collectible on such Mortgage Loan during such Collection Period.

     Repurchase Event: With respect to any Mortgage Loan, either (i) a discovery that, as
of the Closing Date, the related Mortgage was not a valid lien on the related Mortgaged Property
subject only to (A) the lien of any prior mortgage indicated on the Mortgage Loan Schedule, (B) the
lien of real property taxes and assessments not yet due and payable, (C) covenants, conditions, and
restrictions, rights of way, easements and other matters of public record as of the date of
recording of such Mortgage and such other permissible title exceptions as are customarily

21

 

accepted for similar loans and (D) other matters to which like properties are commonly subject that
do not materially adversely affect the value, use, enjoyment or marketability of the related
Mortgaged Property or (ii) with respect to any Mortgage Loan as to which the Seller delivers an
affidavit certifying that the original Mortgage Note has been lost or destroyed, a subsequent
default on such Mortgage Loan if the enforcement thereof or of the related Mortgage is materially
and adversely affected by the absence of such original Mortgage Note.

     Repurchase Price: With respect to any Mortgage Loan required to be repurchased on any
date pursuant to the Purchase Agreement or purchased by the Servicer pursuant to the Servicing
Agreement, an amount equal to the sum of (i) 100% of the Principal Balance thereof (without
reduction for any amounts charged off), (ii) unpaid accrued interest at the Loan Rate (or with
respect to the last day of the month in the month of repurchase, the Loan Rate will be the Loan
Rate in effect as of the second to last day in such month) on the outstanding Principal Balance
thereof from the Due Date to which interest was last paid by the related Mortgagor to the first day
of the month following the month of purchase and (iii) in connection with any Mortgage Loan
required to be repurchased pursuant to Sections 2.1 or 3.1 of the Purchase Agreement, any costs and
damages incurred by the Trust with respect to such Mortgage Loan in connection with a breach of
Section 3.1(b)(x) of the Purchase Agreement.

     Required Insurance Policy: With respect to any Mortgage Loan, any insurance policy
which is required to be maintained from time to time under the Servicing Agreement or the related
Subservicing Agreement in respect of such Mortgage Loan.

     Responsible Officer: With respect to the Indenture Trustee, any officer of the
Indenture Trustee with direct responsibility for the administration of the Indenture and also, with
respect to a particular matter, any other officer to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject.

     Rolling Six-Month Annualized Liquidation Loss Amounts: With respect to any
Determination Date occurring after the fifth Determination Date, the product (expressed as a
percentage) of (i) the aggregate Liquidation Loss Amounts as of the end of each of the six
Collection Periods (reduced by the aggregate Subsequent Net Recovery Amounts for such Collection
Periods) immediately preceding such Determination Date divided by the Initial Pool Balance and (ii)
two (2).

     Rolling Three-Month Delinquency Percentage: With respect to any Payment Date and the
Mortgage Loans, the arithmetic average of the Delinquency Percentages determined for such Payment
Date and for each of the two preceding Payment Dates.

     Rule 17g-5: As defined in Section 10.19.

     Rule 17g-5 Website: As defined in Section 10.19.

     Secretary of State: The Secretary of State of the State of Delaware.

     Securities Act: The Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

22

 

     Securitization Transaction: Any transaction involving a sale or other transfer of
mortgage loans directly or indirectly to an issuing entity in connection with an issuance of
publicly offered or privately placed, rated or unrated mortgage-backed securities.

     Securities Balance: The Note Balance or Certificate Balance, as the context may
require.

     Security: Any Certificate or a Note, as the context may require.

     Securityholder: Any Noteholder or Certificateholder.

     Seller: [__________________], a Delaware statutory trust, and its successors and
assigns.

     Senior Enhancement Percentage: For any Payment Date, the percentage obtained by
dividing (i) the sum of (a) the aggregate Note Balances of the Class M Notes immediately prior to
such Payment Date and (b) the Overcollateralization Amount, in each case prior to the distribution
of the Principal Collection Distribution Amount on such Payment Date, by (ii) the Pool Balance as
of the last day of the related Collection Period.

     Servicer: [____________], a [________] [corporation][limited liability company], and
its successors and assigns.

     Servicing Advances: Any customary, reasonable and necessary “out of pocket” costs and
expenses incurred in connection with a default, delinquency or other unanticipated event by the
Servicer or a Subservicer in the performance of its servicing obligations, including, but not
limited to, the cost of (i) the preservation, restoration and protection of a Mortgaged Property
or, with respect to a cooperative loan, the related cooperative apartment, (ii) any enforcement or
judicial proceedings, including foreclosures, including any expenses incurred in relation to any
such proceedings that result from the Mortgage Loan being registered on the MERS® System, (iii) the
management and liquidation of any REO Property, (iv) any loss mitigation procedures implemented in
accordance with the Servicing Agreement, and (v) compliance with the obligations under the
Servicing Agreement, including, if the Servicer or any Affiliate of the Servicer provides services
such as appraisals and brokerage services that are customarily provided by Persons other than
servicers of mortgage loans, reasonable compensation for such services.

     Servicing Agreement: The servicing agreement dated as of the Closing Date among the
Servicer, the Issuer and the Indenture Trustee.

     Servicing Certificate: A certificate completed and executed by a Servicing Officer on
behalf of the Servicer in accordance with Section 4.01 of the Servicing Agreement.

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

     Servicing Default: Any one of the following events:

23

 

     (i) any failure by the Servicer to deposit in the Custodial Account, the Note Payment Account
or the Distribution Account any deposit required to be made under the terms of the Servicing
Agreement that continues unremedied for a period of five Business Days after the date upon which
written notice of such failure shall have been given to the Servicer by the Issuer or the Indenture
Trustee;

     (ii) any failure on the part of the Servicer duly to observe or perform in any material
respect any other covenants or agreements of the Servicer set forth in the Securities or in the
Servicing Agreement, which failure, in each case, materially and adversely affects the interests of
the Securityholders, and which failure continues unremedied for a period of 45 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” under the Servicing Agreement, shall have been given to the
Servicer by the Issuer or the Indenture Trustee;

     (iii) the entry against the Servicer of a decree or order by a court or agency or supervisory
authority having jurisdiction under Title 11 of the United States Code or any other applicable
federal or state bankruptcy, insolvency or other similar law, or if a receiver, assignee or trustee
in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Servicer or its property, and the continuance of any such
decree or order unstayed and in effect for a period of 60 consecutive days;

     (iv) the Servicer shall voluntarily submit to Proceedings under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or other similar law relating
to the Servicer or of or relating to all or 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 Servicer’s Tangible Net Worth at any time is less than $100,000,000 [and [____] fails
to own, directly or indirectly, at least 51% of the common stock of the Servicer]; or

     (vi) the Rolling Six-Month Annualized Liquidation Loss Amount with respect to the Mortgage
Loans exceeds 1.50%.

     Servicing Fee: With respect to any Mortgage Loan and any Collection Period, the
product of (i) the Servicing Fee Rate divided by 12 and (ii) the related Principal Balance as of
the first day of such Collection Period.

     Servicing Fee Rate: [___]% per annum.

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

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

24

 

     Stated Value: With respect to any Mortgage Loan, the stated value of the related
Mortgaged Property determined in accordance with the Program Guide and given by the related
Mortgagor in his or her application.

     Statutory Trust Statute: Chapter 38 of Title 12 of the Delaware Code, 12 Del.
Code §§3801 et seq., as the same may be amended from time to time.

     Stepdown Date: The earlier to occur of (i) the Payment Date immediately succeeding
the Payment Date on which the aggregate Note Balances of the Class A Notes have been reduced to
zero or (ii) the later to occur of (i) the Payment Date in [___________] and (ii) the Payment Date
on which the Senior Enhancement Percentage (calculated for this purpose only after taking into
account Principal Collections on the Mortgage Loans due on the related Due Date or received during
the related prepayment period but prior to distribution of the Principal Collection Distribution
Amount in respect of the Notes then entitled to distributions of principal on such Payment Date) is
greater than or equal to approximately [___]%.

     Subordinate Component: With respect to each Loan Group and any Payment Date, the
positive excess, if any, of the aggregate Pool Balance in that Loan Group, over the aggregate Note
Balance of the related Class A Notes, in each case immediately prior to that Payment Date.

     Subordination Percentage: With respect to the Class A Notes, [___]%.

     Subsequent Net Recovery Amounts: Recovery Amounts collected on a Mortgage Loan after
the Mortgage Loan becomes a Liquidated Mortgage Loan, net of any Recovery Fee.

     Subservicer: Each Person that enters into a Subservicing Agreement as a subservicer
of Mortgage Loans.

     Subservicing Account: The account established by the Subservicer pursuant to the
Subservicing Agreement.

     Subservicer Advance: Any delinquent installment of principal and interest on a
Mortgage Loan which is advanced by the related Subservicer (net of its Subservicing Fee) pursuant
to the Subservicing Agreement.

     Subservicing Agreement: The written contract between the Servicer and any Subservicer
relating to servicing and administration of certain Mortgage Loans as provided in Section 3.01(b)
of the Servicing Agreement.

     Substitution Adjustment Amount: With respect to any Eligible Substitute Loan and any
Deleted Loan, the amount, if any, as determined by the Servicer, by which the aggregate principal
balance of all such Eligible Substitute Loans as of the date of substitution is less than the
aggregate Principal Balance of all such Deleted Loans (after application of the principal portion
of the Monthly Payments due in the month of substitution that are to be distributed to the
Securityholders in the month of substitution).

     Tangible Net Worth: Net Worth, less the sum of the following (without duplication):
(a) any other assets of [____] and its consolidated subsidiaries that would be treated as
intangibles

25

 

under GAAP including, without limitation, any write-up of assets (other than adjustments to market
value to the extent required under GAAP with respect to excess servicing, residual interests in
offerings of asset-backed securities and asset-backed securities that are interest-only
securities), good-will, research and development costs, trade-marks, trade names, copyrights,
patents and unamortized debt discount and expenses and (b) loans or other extensions of credit to
officers of [____] or its consolidated subsidiaries other than mortgage loans made to such Persons
in the ordinary course of business.

     Transfer: Any direct or indirect transfer, sale, pledge, hypothecation or other form
of assignment of any Ownership Interest in a Certificate.

     Transfer Date: The Payment Date on which the Servicer, upon receipt of written notice
and direction from the Issuer, shall cause the retransfer of Mortgage Loans from the Trust Estate
to the Issuer, pursuant to Section 3.15(c) of the Servicing Agreement.

     Transfer Notice Date: The fifth Business Day prior to the Transfer Date for which the
Servicer shall give the Indenture Trustee and the Rating Agencies a notice of the proposed
retransfer of Mortgage Loans, pursuant to Section 3.15(c) of the Servicing Agreement.

     Transferee: Any Person who is acquiring by Transfer any Ownership Interest in a
Certificate.

     Transferor: Any Person who is disposing by Transfer of any Ownership Interest in a
Certificate.

     Treasury Regulations: Regulations, including proposed or temporary Regulations,
promulgated under the Code. References herein to specific provisions of proposed or temporary
regulations shall include analogous provisions of final Treasury Regulations or other successor
Treasury Regulations.

     Trigger Event: With respect to any Payment Date on or after the Stepdown Date if
either (a) the Rolling Three-Month Delinquency Percentage as determined on that Payment Date,
exceeds [___]% of the Senior Enhancement Percentage for that Payment Date or (b) the aggregate
amount of Liquidation Loss Amounts on the mortgage loans as a percentage of the initial aggregate
Pool Balance as of the cut-off date exceeds the applicable amount set forth below:

	 	•	 	[____________] to [____________]: [___]%.
	 
	 	•	 	[____________] to [____________]: [___]% with respect to [____________], plus an
additional 1/12th of [___]% for each month through [____________].
	 
	 	•	 	[____________] to [____________]: [___]% with respect to [____________], plus an
additional 1/12th of [___]% for each month through [____________].
	 
	 	•	 	[____________] to [____________]: [___]% with respect to [____________], plus an
additional 1/12th of [___]% for each month through [____________].

26

 

	 	•	 	[____________] and thereafter: [___]%.

     Trust Agreement: The trust agreement dated as of the Closing Date, between the Owner
Trustee and the Depositor.

     Trust Estate: The meaning specified in the Granting Clause of the Indenture.

     Trust Indenture Act or TIA: The Trust Indenture Act of 1939, as amended from time to
time, as in effect on any relevant date.

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

     Unpaid Principal Amount: As defined in Section 3.05(a) of the Indenture.

27

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