Document:

Amended and Restated Trust Agreement

 Exhibit 4.2 
 EXECUTION VERSION 
 AMENDED AND RESTATED TRUST AGREEMENT 
 dated as of June 29, 2006 
 by and among

 ACCREDITED HOME LENDERS, INC., 
 as Sponsor, 
 ACCREDITED MORTGAGE LOAN REIT TRUST 
 as Depositor, 
 and 
 U.S. BANK TRUST NATIONAL ASSOCIATION, 
 as Owner Trustee 
 ACCREDITED MORTGAGE LOAN TRUST 2006-2 
 Asset-Backed Notes, Series 2006-2 

 TABLE OF CONTENTS 
  

					
		 	 ARTICLE I
 DEFINITIONS
	  	
			
	Section 1.01.	 	Capitalized Terms	  	1
	Section 1.02.	 	Other Definitional Provisions	  	4
			
		 	 ARTICLE II
 ORGANIZATION
	  	
		 		  	
	Section 2.01.	 	Name	  	5
	Section 2.02.	 	Office	  	5
	Section 2.03.	 	Purposes and Powers	  	5
	Section 2.04.	 	Appointment of Owner Trustee	  	6
	Section 2.05.	 	Initial Capital Contribution of Owner Trust Estate	  	6
	Section 2.06.	 	Declaration of Trust	  	6
	Section 2.07.	 	Liability of the Certificateholders	  	7
	Section 2.08.	 	Title to Trust Property	  	7
	Section 2.09.	 	Situs of Issuing Entity	  	7
	Section 2.10.	 	Representations and Warranties of the Sponsor	  	7
	Section 2.11.	 	Federal Income Tax Treatment of the Issuing Entity	  	8
	Section 2.12.	 	Covenants of the Sponsor	  	8
	Section 2.13.	 	Covenants of the Certificateholders	  	9
	Section 2.14.	 	Representations and Warranties of the Depositor	  	9
	Section 2.15.	 	Covenants of the Depositor	  	11
			
		 	 ARTICLE III
 [Reserved]
	  	
			
		 	 ARTICLE IV
 CERTIFICATES AND TRANSFER OF INTERESTS
	  	
			
	Section 4.01.	 	Initial Ownership	  	12
	Section 4.02.	 	The Certificates	  	12
	Section 4.03.	 	Execution, Authentication and Delivery of Certificates	  	12
	Section 4.04.	 	Registration of Transfer and Exchange of Certificates	  	12
	Section 4.05.	 	Mutilated, Destroyed, Lost or Stolen Certificates	  	13
	Section 4.06.	 	Persons Deemed Owners	  	14
	Section 4.07.	 	Access to List of Certificateholders’ Names and Addresses	  	14
	Section 4.08.	 	Maintenance of Office or Agency	  	14
	Section 4.09.	 	Restrictions on Transfers of Certificates	  	14

  

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		 	 ARTICLE V
 ACTIONS BY OWNER TRUSTEE
	  	
			
	Section 5.01.	 	Prior Notice to the Certificateholders with Respect to Certain Matters	  	17
	Section 5.02.	 	Action by Certificateholders with Respect to Bankruptcy	  	18
	Section 5.03.	 	Restrictions on Certificateholders’ Power	  	19
	Section 5.04.	 	Majority Control	  	19
			
		 	 ARTICLE VI
 TAX PROVISIONS; CERTAIN DUTIES
	  	
			
	Section 6.01.	 	Federal Income Tax Provisions	  	19
	Section 6.02.	 	Withholding Taxes	  	19
	Section 6.03.	 	Accounting and Reports to the Certificateholders, the Internal Revenue Service and Others	  	20
			
		 	 ARTICLE VII
 AUTHORITY AND DUTIES OF OWNER TRUSTEE
	  	
			
	Section 7.01.	 	General Authority	  	20
	Section 7.02.	 	General Duties	  	21
	Section 7.03.	 	Action upon Instruction	  	22
	Section 7.04.	 	No Duties Except as Specified in this Agreement, the Basic Documents or any Instructions	  	23
	Section 7.05.	 	No Action Except under Specified Documents or Instructions	  	23
	Section 7.06.	 	Restrictions	  	24
			
		 	 ARTICLE VIII
 CONCERNING THE OWNER TRUSTEE
	  	
			
	Section 8.01.	 	Acceptance of Trusts and Duties	  	24
	Section 8.02.	 	Furnishing of Documents	  	25
	Section 8.03.	 	Representations and Warranties of the Owner Trustee	  	26
	Section 8.04.	 	Reliance; Advice of Counsel	  	27
	Section 8.05.	 	Not Acting in Individual Capacity	  	27
	Section 8.06.	 	Owner Trustee Not Liable for the Certificates or Mortgage Loans	  	27
	Section 8.07.	 	Owner Trustee May Own Notes	  	28
	Section 8.08.	 	Licenses	  	28
	Section 8.09.	 	Legal Proceedings	  	28
			
		 	 ARTICLE IX
 COMPENSATION OF OWNER TRUSTEE
	  	
			
	Section 9.01.	 	Owner Trustee’s Fees and Expenses	  	28
	Section 9.02.	 	Indemnification	  	28
	Section 9.03.	 	Payments to the Owner Trustee	  	29

  

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		 	 ARTICLE X
 TERMINATION OF TRUST AGREEMENT
	  	
			
	Section 10.01.	 	Termination of Trust Agreement	  	29
			
		 	 ARTICLE XI
 SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES
	  	
			
	Section 11.01.	 	Eligibility Requirements for Owner Trustee	  	31
	Section 11.02.	 	Resignation or Removal of Owner Trustee	  	31
	Section 11.03.	 	Successor Owner Trustee	  	31
	Section 11.04.	 	Merger or Consolidation of Owner Trustee	  	32
	Section 11.05.	 	Appointment of Co-Trustee or Separate Trustee.	  	32
			
		 	 ARTICLE XII
 MISCELLANEOUS
	  	
			
	Section 12.01.	 	Supplements and Amendments	  	34
	Section 12.02.	 	No Legal Title to Owner Trust Estate in Certificateholders	  	35
	Section 12.03.	 	Limitations on Rights of Others	  	35
	Section 12.04.	 	Notices	  	36
	Section 12.05.	 	Severability	  	36
	Section 12.06.	 	Separate Counterparts	  	36
	Section 12.07.	 	Successors and Assigns	  	36
	Section 12.08.	 	No Petition	  	36
	Section 12.09.	 	No Recourse	  	37
	Section 12.10.	 	Headings	  	37
	Section 12.11.	 	GOVERNING LAW	  	37
	Section 12.12.	 	[Intentionally Omitted.]	  	37
	Section 12.13.	 	Third-Party Beneficiaries	  	37
	Section 12.14.	 	[Intentionally Omitted.]	  	37
	Section 12.15.	 	Servicer	  	37
			
		 	EXHIBITS	  	

  

			
	 Exhibit A
	  	Form of Trust Certificate
	 Exhibit B
	  	Form of Certificate of Trust
	 Exhibit C
	  	Form of Investment Letter
	 Exhibit D
	  	Form of Transferor Certificate

  

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 This AMENDED AND RESTATED TRUST AGREEMENT, dated as of June 29, 2006, is among ACCREDITED HOME
LENDERS, INC., as sponsor (the “Sponsor”), ACCREDITED MORTGAGE LOAN REIT TRUST, a Maryland real estate investment trust, as depositor (the “Depositor”) and U.S. BANK TRUST NATIONAL ASSOCIATION, a national banking
association, as owner trustee (the “Owner Trustee”). 
 NOW, THEREFORE, in consideration of the mutual agreements herein
contained, and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.01. Capitalized Terms. For all purposes of this Agreement, the following terms shall have the meanings set forth below: 

“Agreement” shall mean this Trust Agreement, as may be amended and supplemented from time to time. 
 “Authorized Officer” shall have the meaning assigned thereto in Appendix I to the Indenture. 
 “Basic Documents” shall mean this Agreement, the Sale and Servicing Agreement, the Indenture and the Swap Agreement. 
 “Business Day” shall mean any day other than (i) a Saturday or Sunday or (ii) a day that is either a legal holiday or a day on
which banking institutions in the State of New York, the State of Delaware, the State of California, or the state in which the Indenture Trustee’s office from which payments will be made to the Certificateholder, are authorized or obligated by
law, regulation or executive order to be closed. 
 “Certificate” shall mean each Trust Certificate. 
 “Certificateholder” shall mean each Person in whose name a Trust Certificate is registered. 
 “Certificate of Trust” shall mean the Certificate of Trust, in the form of Exhibit B, to be filed for the Issuing Entity pursuant
to Section 3810(a) of the Statutory Trust Statute. 
 “Certificate Register” and “Certificate
Registrar” shall mean the register mentioned and the registrar appointed pursuant to Section 4.04. 
 “Class Note
Balance” shall have the meaning assigned to such term in the Indenture. 
 “Code” shall mean the Internal Revenue
Code of 1986, as amended, and, where appropriate in context, Treasury Regulations promulgated thereunder. 
  

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 “Corporate Trust Office” shall mean, with respect to the Owner Trustee, an office of the
Owner Trustee which for purposes of the Agreement is located at 209 South LaSalle Street, Suite 300, Chicago, Illinois 60604, Attention: Corporate Trust Administration; or at such other address as the Owner Trustee may designate by notice to the
Certificateholders and the Sponsor, or an office of any successor Owner Trustee (the address of which the successor Owner Trustee will notify the Certificateholders and the Sponsor). 
 “Depositor” shall mean Accredited Mortgage Loan REIT Trust, a Maryland real estate investment trust. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 “Expenses” shall have the meaning assigned to such term in Section 9.02. 
 “Indenture” shall mean the Indenture, dated as of June 1, 2006, by and between the Issuing Entity and the Indenture Trustee.

 “Indenture Trustee” means Deutsche Bank National Trust Company, as Indenture Trustee under the Indenture. 
 “Investment Letter” shall have the meaning assigned to such term in Section 4.04. 
 “Issuing Entity” shall mean the Accredited Mortgage Loan Trust 2006-2, the Delaware statutory trust created pursuant to this Agreement.

 “Mortgage Loans” shall mean a pool of fixed- and adjustable-rate mortgage loans, as identified in the related Mortgage
Loan Schedule. 
 “Non-U.S. Person” shall mean an individual, corporation, partnership or other person other than a United
States Person. 
 “Noteholder” shall have the meaning assigned to such terms in the Indenture. 
 “Notes” shall mean the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class M-1 Notes, Class
M-2 Notes, Class M-3 Notes, Class M-4 Notes, Class M-5 Notes, Class M-6 Notes, Class M-7 Notes, Class M-8 Notes and Class M-9 Notes. 
 “Outstanding” shall have the meaning assigned to such term in the Indenture. 
 “Ownership
Interest” means, with respect 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. 
  

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 “Owner Trust Estate” shall mean the Trust Estate, including the contribution of $1,000
referred to in Section 2.05 hereof. 
 “Owner Trustee” shall mean U.S. Bank Trust National Association, a national
banking association, not in its individual capacity but solely as owner trustee under this Agreement, and any successor owner trustee hereunder. 
 “Owner Trustee Information” shall mean the information in (a) the Free Writing Prospectus contained in the first two paragraphs under the heading “The Owner Trustee” and (b) the Prospectus Supplement or
any amendment or supplement thereto contained in the first two paragraphs under the heading “The Owner Trustee.” 
 “Payment Date” shall mean the 25th day of each month or, if such 25th day is not a Business Day, the next succeeding Business Day, commencing July 25, 2006. 
 “Percentage Interest” shall mean with respect to any Certificate, the percentage portion of the Certificates evidenced thereby as stated
on the face of such Certificate. 
 “Plan” shall mean (i) an employee benefit plan (within the meaning of
Section 3(3) of ERISA) that is subject to Title I of ERISA, (ii) a plan (within the meaning of Section 4975(e)(1) of the Code) that is subject to Section 4975 of the Code or (iii) a governmental plan (within the meaning of
Section 3(32) of ERISA) that is subject to any federal, state or local law that is, to a material extent, similar to Title I of ERISA or Section 4975 of the Code. 
 “Prospective Holder” shall have the meaning set forth in Section 4.09(a). 
 “Rating Agency Condition” means, with respect to any action to which a Rating Agency Condition applies, that each Rating Agency shall
have been given ten (10) days (or such shorter period as is acceptable to each Rating Agency) prior notice thereof and that each of the Rating Agencies shall have notified the Indenture Trustee, the Sponsor, the Servicer, the Owner Trustee and
the Issuing Entity in writing that such action will not result in a reduction or withdrawal of the then current rating of the Notes that it maintains. 
 “Record Date” shall mean, with respect to the Certificates and any Payment Date, the last Business Day of the month preceding the month in which the related Payment Date occurs. 
 “Sale and Servicing Agreement” shall mean the Sale and Servicing Agreement, dated as of June 1, 2006, among the Sponsor, the
Issuing Entity, the Indenture Trustee, and the Servicer. 
 “Secretary of State” shall mean the Secretary of State of the
State of Delaware. 
 “Servicer” shall mean Accredited Home Lenders, Inc., a California corporation, or any successor
servicer appointed pursuant to the Sale and Servicing Agreement. 
 “Sponsor” shall mean Accredited Home Lenders, Inc., a
California corporation. 
  

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 “Statutory Trust Statute” shall mean 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. 
 “Swap Agreement” the interest rate swap
agreement, dated as of June 29, 2006, between the Issuing Entity and the Swap Provider. 
 “Swap Provider” shall mean
the counterparty to the Swap Agreement either (a) entitled to receive payments from the Issuing Entity or (b) required to make payments to the Issuing Entity, in either case pursuant to the terms of the Swap Agreement, and any successor in
interest or assign. Initially, the Swap Provider shall be Barclays Bank PLC. 
 “Transfer” means any direct or indirect
transfer, sale, pledge, hypothecation or other form of assignment of any Ownership Interest in a Certificate. 
 “Treasury
Regulations” shall mean 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. 
 “Trust Certificate” shall mean a certificate evidencing the
beneficial interest of a Certificateholder in the Issuing Entity, substantially in the form attached hereto as Exhibit A. 
 “Underwriters” shall mean Goldman, Sachs & Co., Bear, Stearns & Co. Inc., Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and UBS Securities LLC. 

Section 1.02. Other Definitional Provisions. 
 (a) Capitalized terms used herein and not otherwise defined herein have the meanings assigned to them in Appendix I to the Indenture and the Sale and Servicing Agreement. 
 (b) All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein. 
 (c) As used in this Agreement and in any certificate or other document made or delivered pursuant hereto
or thereto, accounting terms not defined in this Agreement or in any such certificate or other document, and accounting terms partly defined in this Agreement or in any such certificate or other document to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting principles. To the extent that the definitions of accounting terms in this Agreement or in any such certificate or other document are inconsistent with the meanings of such terms
under generally accepted accounting principles, the definitions contained in this Agreement or in any such certificate or other document shall control. 
 (d) The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement; Section and Exhibit references contained in this Agreement are references to Sections and Exhibits in or to this Agreement unless otherwise specified; and the term “including” shall mean “including without limitation.”

  

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 (e) The definitions contained in this Agreement are applicable to the singular as well as the plural
forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. 
 (f) 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. 
 ARTICLE II 
 ORGANIZATION 
 Section 2.01. Name. The Issuing Entity governed hereby shall be known as “Accredited Mortgage Loan Trust 2006-2,” in which name the
Owner Trustee may conduct the business of the Issuing Entity, make and execute contracts and other instruments on behalf of the Issuing Entity and sue and be sued on behalf of the Issuing Entity. 
 Section 2.02. Office. The office of the Issuing Entity shall be in care of the Owner Trustee at the Corporate Trust Office or at such other
address in the State of Delaware as the Owner Trustee may designate by written notice to the Certificateholders, Indenture Trustee and the Sponsor. 
 Section 2.03. Purposes and Powers. The purpose of the Issuing Entity is to engage in the following activities: 
 (a) to issue the Notes pursuant to the Indenture and to sell such Notes; 
 (b) with the proceeds of the sale of the
Notes and Certificates, to purchase the Mortgage Loans to be included in the Owner Trust Estate from the Depositor with the balance of such funds pursuant to the Sale and Servicing Agreement; 
 (c) to assign, grant, transfer, pledge, mortgage and convey the Owner Trust Estate pursuant to the Indenture and to hold, manage and
distribute to the Certificateholders any portion of the Owner Trust Estate released from the lien of, and remitted to the Issuing Entity pursuant to, the Indenture; 
 (d) to enter into and perform its obligations under the Basic Documents to which it is or is to be a party; 
 (e) to engage in those activities, including entering into agreements, that are necessary, suitable or convenient to accomplish the
foregoing or are incidental thereto or connected therewith; 
  

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 (f) subject to compliance with the Basic Documents, to engage in such other activities as
may be required in connection with conservation of the Owner Trust Estate and the making of distributions and payments to the Noteholders and the Certificateholders; and 
 (g) to issue the Certificates pursuant to this Agreement. 
 The Issuing Entity is hereby authorized by the initial beneficiary and the Certificateholders to engage in the foregoing activities. The Issuing Entity 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 or the other Basic Documents. 
 Section 2.04.
Appointment of Owner Trustee. The Sponsor hereby appoints the Owner Trustee as trustee of the Issuing Entity effective as of the date hereof, to have all the rights, powers and duties set forth herein and in the Statutory Trust Statute, and
the Owner Trustee hereby accepts such appointment. 
 The Owner Trustee may engage, in the name of the Issuing Entity or in its own name on
behalf of the Issuing Entity, in the activities of the Issuing Entity, make and execute contracts on behalf of the Issuing Entity and sue on behalf of the Issuing Entity. 
 Section 2.05. Initial Capital Contribution of Owner Trust Estate. The Depositor hereby sells, assigns, transfers, conveys and sets over to the Issuing Entity, as of the date hereof, the sum of $1,000. The
foregoing contribution, which shall constitute the initial Owner Trust Estate, shall be deposited by the Depositor in the Payment Account. The Depositor shall pay organizational expenses of the Issuing Entity as they may arise or shall, upon the
request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee. Concurrently with the execution of this Agreement, the Issuing Entity will enter into the Sale and Servicing Agreement pursuant to
which it will purchase the Mortgage Loans, which comprise the remainder of the Owner Trust Estate. Upon the transfer of the Mortgage Loans pursuant to the Sale and Servicing Agreement, the Issuing Entity shall transfer the initial capital
contribution, in the sum of $1,000, back to the Depositor. 
 Section 2.06. Declaration of Trust. The Owner Trustee hereby
declares that it will hold the Owner Trust Estate in trust upon and subject to the conditions set forth herein for the use and benefit of the Noteholders and the Certificateholders, subject to the obligations of the Issuing Entity under the Basic
Documents. 
 It is the intention of the parties hereto that, solely for state income and franchise tax purposes, the Issuing Entity
constitutes a statutory trust under the Statutory Trust Statute and that this Agreement constitutes the governing instrument of such statutory trust. It is the intention of the parties hereto that, solely for state income and franchise tax purposes,
the Issuing Entity shall be treated as a security arrangement, with the assets of the Issuing Entity being the Mortgage Loans. The parties agree that, unless otherwise required by appropriate state tax authorities, the Issuing Entity will file or
cause to be filed annual or other necessary returns, reports and other forms, if any, consistent with the characterization of the Issuing Entity and the Mortgage Loans as provided in the preceding sentence for such tax purposes. Effective as of the

  

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date hereof, the Owner Trustee shall have all rights, powers and duties set forth herein and in the Statutory Trust Statute with respect to accomplishing the
purposes of the Issuing Entity. The Owner Trustee shall file the Certificate of Trust with the Secretary of State. 
 Section 2.07.
Liability of the Certificateholders. Subject to Section 2.05, no Certificateholder shall have any personal liability for any liability or obligation of the Issuing Entity. The Certificates shall be fully paid and nonassessable.

 Section 2.08. Title to Trust Property. 
 (a) Subject to the Indenture, legal title to all of the Owner Trust Estate shall be vested at all times in the Issuing Entity as a separate legal entity except where applicable law in any jurisdiction requires title
to any part of the Owner Trust Estate to be vested in a trustee or trustees, in which case title shall be deemed to be vested in the Owner Trustee and/or a separate trustee, as the case may be. 
 (b) The Certificateholders shall not have legal title to any part of the Owner Trust Estate. No transfer by operation of law or otherwise of any interest
of the Certificateholders shall operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an accounting or to the transfer to it of any part of the Owner Trust Estate. 
 Section 2.09. Situs of Issuing Entity. The Issuing Entity will be located in the State of Delaware and administered by the Owner Trustee in
the States of Delaware and Illinois. The Issuing Entity shall not have any employees; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees within or without the State of Delaware.

 Section 2.10. Representations and Warranties of the Sponsor. The Sponsor hereby represents and warrants to the Owner Trustee
that: 
 (a) The Sponsor is duly organized and validly existing as a corporation in good standing under the laws of the State of California,
with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted. 
 (b) The Sponsor has the power and authority to execute and deliver this Agreement and to carry out its terms; and the execution, delivery and performance of this Agreement has been duly authorized by the Sponsor by
all necessary corporate action. 
 (c) The consummation of the transactions contemplated by this Agreement 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 incorporation or by-laws of the Sponsor, or any indenture, agreement or
other instrument to which the Sponsor is a party or by which it is bound; nor result in the creation or imposition of any lien upon any of its properties pursuant to the terns of any such indenture, agreement or other instrument (other than pursuant
to the Basic Documents); nor violate any law or, any order, rule or regulation applicable to the Sponsor of any court or of any Federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over
the Sponsor or its properties. 
  

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 (d) There are no proceedings or investigations pending or notice of which has been received in writing
before any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Sponsor or its properties: (x) asserting the invalidity of this Agreement, (y) seeking to prevent the consummation
of any of the transactions contemplated by this Agreement or (z) seeking any determination or ruling that should reasonably be expected to materially and adversely affect the performance by the Sponsor of its obligations under, or the validity
or enforceability of, this Agreement. 
 (e) The representations and warranties of the Sponsor in Article III of the Sale and Servicing
Agreement are true and correct. 
 (f) The Sponsor has duly executed and delivered this Agreement, and this Agreement constitutes the legal,
valid and binding obligation of the Sponsor, enforceable against the Sponsor, in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by the application of equitable principles. 
 (g) The Sponsor 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 other governmental agency, which default might have consequences that would materially and adversely affect the condition (financial or otherwise) or
operations of the Sponsor or its properties or might have consequences that would materially and adversely affect its performance hereunder. 
 (h) The Sponsor will hold itself out to the public under its own name as a separate and distinct entity from the Issuing Entity and conduct its business so as not to mislead others as to the identity of the Issuing Entity. Without limiting
the generality of the foregoing, to the extent that the Sponsor makes on behalf of the Issuing Entity, as administrator of the Issuing Entity, oral and written communications, including without limitation, all letters, invoices, contracts,
statements and applications such oral and written communications will be made solely by the Sponsor, as administrator of the Issuing Entity, in the name of the Issuing Entity if they are made on behalf of the Issuing Entity. 
 Section 2.11. Federal Income Tax Treatment of the Issuing Entity. The parties hereto intend that the Depositor, or other entity that is a
REIT or a Qualified REIT Subsidiary, will at all times that the Notes are outstanding own a 100% Percentage Interest in the Trust Certificates; that the Depositor will qualify for taxation as a REIT at all times that it is a Certificateholder; and
that the Issuing Entity will be a Qualified REIT Subsidiary at all times the Notes are outstanding. 
 Section 2.12. Covenants of the
Sponsor. The Sponsor agrees and covenants for the benefit of each Certificateholder and the Owner Trustee, during the term of this Agreement, and to the fullest extent permitted by applicable law, that: 
 (a) it shall not, for any reason, institute proceedings for the Issuing Entity to be adjudicated bankrupt or insolvent, or consent to or join in the
institution of bankruptcy or insolvency proceedings against the Issuing Entity, or file a petition seeking or consenting to reorganization or relief under any applicable federal or state law relating to the bankruptcy of the Issuing Entity, or
consent to the appointment of a receiver, liquidator, assignee, trustee, 

  

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sequestrator (or other similar official) of the Issuing Entity or a substantial part of the property of the Issuing Entity or cause or permit the Issuing
Entity to make any assignment for the benefit of creditors, or admit in writing the inability of the Issuing Entity to pay its debts generally as they become due, or declare or effect a moratorium on the debt of the Issuing Entity or take any action
in furtherance of any such action; 
 (b) it shall obtain from each counterparty to each Basic Document to which it or the Issuing Entity is
a party and each other agreement entered into on or after the date hereof to which it or the Issuing Entity is a party, an agreement by each such counterparty that prior to the occurrence of certain events specified in such agreement, such
counterparty shall not institute against, or join any other Person in instituting against, it or the Issuing Entity, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceedings under the laws of
the United States or any state of the United States; and 
 (c) it shall not, for any reason, withdraw or attempt to withdraw from this
Agreement or any other Basic Document to which it is a party. 
 Section 2.13. Covenants of the Certificateholders. Each
Certificateholder by becoming a beneficial owner of the Certificate or by its acceptance of a Certificate agrees: 
 (a) to be bound by the
terms and conditions of the Certificates of which such Certificateholder is the beneficial owner and of this Agreement and the other Basic Documents, including any supplements or amendments hereto and thereto and to perform the obligations of a
Certificateholder as set forth therein or herein, in all respects as if it were a signatory hereto. This undertaking is made for the benefit of the Issuing Entity, the Owner Trustee and all other Certificateholders, present and future; 

(b) to the appointment of the Owner Trustee as such Certificateholder’s agent and attorney-in-fact to sign any federal income tax information
return filed on behalf of the Issuing Entity and, if requested by the Issuing Entity, to sign such federal income tax information return in its capacity as holder of an interest in the Issuing Entity; 
 (c) not to take any position in such Certificateholder’s tax returns inconsistent with those taken in any tax returns filed by the Issuing Entity;
and 
 (d) not to take any action that would cause the Issuing Entity to become subject to federal income tax or fail to take any action that
would prevent the Issuing Entity from becoming subject to federal income tax. 
 Section 2.14. Representations and Warranties of the
Depositor. The Depositor hereby represents and warrants to the Owner Trustee that: 
 (a) The Depositor is duly organized and validly
existing as a Maryland real estate investment trust in good standing under the laws of the State of Maryland, with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is
presently conducted. 
  

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 (b) The Depositor has the power and authority to execute and deliver this Agreement and to carry out its
terms; the Depositor has full power and authority to transfer and assign the property to be transferred and assigned to and deposited with the Issuing Entity and the Depositor has duly authorized such transfer and assignment and deposit to the
Issuing Entity by all necessary trust action; and the execution, delivery and performance of this Agreement has been duly authorized by the Depositor by all necessary trust action. 
 (c) The consummation of the transactions contemplated by this Agreement 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 declaration of trust or by-laws of the Depositor, or any indenture, agreement or other instrument to which the Depositor is a
party or by which it is bound; nor result in the creation or imposition of any lien upon any of its properties pursuant to the terns of any such indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor violate any
law or, any order, rule or regulation applicable to the Depositor of any court or of any Federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties.

 (d) There are no proceedings or investigations pending or notice of which has been received in writing before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties: (x) asserting the invalidity of this Agreement, (y) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or (z) seeking any determination or ruling that should reasonably be expected to materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of,
this Agreement. 
 (e) The representations and warranties of the Depositor in Article III of the Sale and Servicing Agreement are true and
correct. 
 (f) The Depositor has duly executed and delivered this Agreement, and this Agreement constitutes the legal, valid and binding
obligation of the Depositor, enforceable against the Depositor, in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the enforcement of creditors’
rights generally and by the application of equitable principles. 
 (g) The Depositor 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 other governmental agency, which default might have consequences that would materially and adversely affect the condition (financial or otherwise) or operations of
the Depositor or its properties or might have consequences that would materially and adversely affect its performance hereunder. 
 (h) The
Depositor will hold itself out to the public under its own name as a separate and distinct entity from the Issuing Entity and conduct its business so as not to mislead others as to the identity of the Issuing Entity. 
  

 10 

 Section 2.15. Covenants of the Depositor. The Depositor agrees and covenants for the benefit
of each Certificateholder and the Owner Trustee, during the term of this Agreement, and to the fullest extent permitted by applicable law, that: 
 (a) it shall not, for any reason, institute proceedings for the Issuing Entity to be adjudicated bankrupt or insolvent, or consent to or join in the institution of bankruptcy or insolvency proceedings against the Issuing Entity, or file a
petition seeking or consenting to reorganization or relief under any applicable federal or state law relating to the bankruptcy of the Issuing Entity, or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of the Issuing Entity or a substantial part of the property of the Issuing Entity or cause or permit the Issuing Entity to make any assignment for the benefit of creditors, or admit in writing the inability of the Issuing Entity to
pay its debts generally as they become due, or declare or effect a moratorium on the debt of the Issuing Entity or take any action in furtherance of any such action; 
 (b) it shall obtain from each counterparty to each Basic Document to which it or the Issuing Entity is a party and each other agreement entered into on or after the date hereof to which it or the Issuing Entity is a
party, an agreement by each such counterparty that prior to the occurrence of certain events specified in such agreement, such counterparty shall not institute against, or join any other Person in instituting against, it or the Issuing Entity, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceedings under the laws of the United States or any state of the United States; 
 (c) it shall not, for any reason, withdraw or attempt to withdraw from this Agreement or any other Basic Document to which it is a party; and 

(d) the Depositor hereby reaffirms the covenants of the Depositor in Section 3.06(h) of the Sale and Servicing Agreement and those covenants are
incorporated herein by this reference. 
 ARTICLE III 
 [RESERVED] 
  

 11 

 ARTICLE IV 
 CERTIFICATES AND TRANSFER OF INTERESTS 
 Section 4.01. Initial Ownership. Upon the
formation of the Issuing Entity by the contribution by the Depositor pursuant to Section 2.05 and the filing of the Certificate of Trust with the Secretary of State and until the issuance of the Certificates, the Depositor shall be the sole
owner of the Issuing Entity. 
 Section 4.02. The Certificates. The Certificates shall be issued as a single certificate,
substantially in the form of Exhibit A hereto, upon the order of the Owner Trustee, at the direction of the Sponsor, to the Depositor concurrently with the sale and assignment to the Issuing Entity of the Mortgage Loans by the Depositor, at the
direction of the Sponsor, to the Owner Trustee. The Certificates shall represent the entire beneficial interest in the assets of the Issuing Entity subject to the debt represented by the Notes. The Certificates shall be printed, lithographed or
engraved or may be produced in any other manner as is reasonably acceptable to the Owner Trustee, as evidenced by its execution thereof. The Certificates shall be executed on behalf of the Issuing Entity by manual or facsimile signature of an
Authorized Officer of the Owner Trustee. Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Issuing Entity, shall be valid,
notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of such Certificates or did not hold such offices at the date of authentication and delivery of such Certificates.

 A transferee of a Certificate shall become a Certificateholder, and shall be entitled to the rights and subject to the obligations of a
Certificateholder hereunder upon such transferee’s acceptance of a Certificate duly registered in such transferee’s name pursuant to Section 4.04. 
 Section 4.03. Execution, Authentication and Delivery of Certificates. Concurrently with the initial transfer of the Mortgage Loans to the Issuing Entity pursuant to the Sale and Servicing Agreement, the
Owner Trustee shall cause the Certificates, representing 100% of the Percentage Interests of the Issuing Entity, to be executed on behalf of the Issuing Entity, authenticated and delivered, at the written direction of the Sponsor, to the Depositor
as initial Certificateholder. No Certificate shall entitle its holder to any benefit under this Agreement, or shall be valid for any purpose, unless there shall appear on such Certificate a certificate of authentication substantially in the form set
forth in Exhibit A, executed by the Owner Trustee or the Owner Trustee’s authenticating agent, by manual or facsimile signature; such authentication shall constitute conclusive evidence that such Certificate shall have been duly
authenticated and delivered hereunder. All Certificates shall be dated the date of their authentication. 
 Section 4.04.
Registration of Transfer and Exchange of Certificates. The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 4.08, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the registration of Certificates and of transfers and exchanges of Certificates as herein provided. The Owner Trustee shall be the initial “Certificate
Registrar.” 
  

 12 

 Upon surrender for registration of transfer of any Certificate at the office or agency maintained
pursuant to Section 4.08, the Owner Trustee, upon the satisfaction of the conditions set forth in Section 4.09(c), shall execute, authenticate and deliver (or shall cause its authenticating agent to authenticate and deliver), in the name
of the designated transferee or transferees, one or more new Certificates of a like Percentage Interest dated the date of authentication by the Owner Trustee or any authenticating agent. At the option of a Certificateholder, Certificates may be
exchanged for other Certificates of a like Percentage Interest upon surrender of the Certificates to be exchanged at the office or agency maintained pursuant to Section 4.08. 
 Every Certificate presented or surrendered for registration of transfer or exchange shall be accompanied by a written instrument of transfer in the form
of Transferor Certificate set forth as Exhibit D hereto, duly executed by the Certificateholder or his attorney duly authorized in writing. 
 No service charge shall be made for any registration of transfer or exchange of Certificates, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer or exchange of Certificates. 
 The preceding provisions of this Section 4.04 notwithstanding,
the Certificate Registrar shall not register transfers or exchanges of Certificates for a period of fifteen (15) days preceding the Payment Date with respect to the Certificates. 
 Notwithstanding anything contained herein to the contrary, neither the Certificate Registrar nor the Owner Trustee shall be responsible for ascertaining
whether any transfer complies with the registration provisions or exemptions from the Securities Act of 1933, as amended, the Securities Act of 1934, as amended, applicable state securities law or the Investment Company Act of 1940, as amended;
provided, however, that if an Investment Letter is specifically required to be delivered to the Owner Trustee by a purchaser or transferee of a Certificate, the Owner Trustee shall be under a duty to examine the same to determine
whether it conforms to the form of Investment Letter set forth as Exhibit C hereto and shall promptly notify the party delivering the same if such Investment Letter does not so conform. 
 Section 4.05. Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any mutilated Certificate shall be surrendered to the
Certificate Registrar, or if the Certificate Registrar shall receive evidence to its satisfaction of the destruction, loss or theft of any Certificate and (b) there shall be delivered to the Certificate Registrar and the Owner Trustee such
security or indemnity as may be required by them to save each of them harmless, then in the absence of notice that such Certificate shall have been acquired by a protected purchaser, the Owner Trustee on behalf of the Issuing Entity shall execute
and the Owner Trustee, or the Owner Trustee’s authenticating agent, shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like Percentage Interest. In
connection with the issuance of any new Certificate under this Section 4.05, the Owner Trustee or the Certificate Registrar may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith. Any duplicate Certificate issued pursuant to this Section shall constitute conclusive evidence of ownership in the Issuing Entity, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found
at any time. 
  

 13 

 Section 4.06. Persons Deemed Owners. Each person by virtue of becoming a Certificateholder in
accordance with this Agreement shall be deemed to be bound by the terns of this Agreement. Prior to due presentation of a Certificate for registration of transfer, the Owner Trustee or the Certificate Registrar may treat the Person in whose name any
Certificate shall be registered in the Certificate Register as the owner of such Certificate for the purpose of receiving distributions pursuant to Section 6.02 and for all other purposes whatsoever, and neither the Owner Trustee nor the
Certificate Registrar shall be bound by any notice to the contrary. 
 Section 4.07. Access to List of Certificateholders’ Names
and Addresses. The Certificate Registrar shall furnish or cause to be furnished to the Owner Trustee, the Servicer, the Sponsor and the Indenture Trustee immediately prior to each Payment Date, a list of the names and addresses of the
Certificateholders as of the most recent Record Date. The Certificate Registrar shall notify the Indenture Trustee of any change in the initial Holders of the Certificates. If one or more Certificateholder, together evidencing Percentage Interests
totaling not less than 25%, apply in writing to the Certificate Registrar, and such application states that the applicants desire to communicate with other Certificateholders with respect to their rights under this Agreement or under the
Certificates and such application is accompanied by a copy of the communication that such applicants propose to transmit, then the Certificate Registrar shall, within five (5) Business Days after the receipt of such application, afford such
applicants access during normal business hours to the current list of Certificateholders. Each Certificateholder, by receiving and holding a Certificate, shall be deemed to have agreed not to hold any of the Sponsor, the Certificate Registrar or the
Owner Trustee accountable by reason of the disclosure of its name and address, regardless of the source from which such information was derived. 
 Section 4.08. Maintenance of Office or Agency. The Owner Trustee shall maintain an office or offices or agency or agencies where notices and demands to or upon the Owner Trustee in respect of the Basic Documents may be served,
and so long as the Owner Trustee is the Certificate Registrar, where Certificates may be surrendered for registration of transfer or exchange and notices and demands to or upon the Certificate Registrar in respect of the Certificates, may be served.
The Owner Trustee initially designates the Corporate Trust Office as its principal corporate trust office for such purposes. The Owner Trustee shall give prompt written notice to the Indenture Trustee, the Sponsor and the Certificateholders of any
change in the location of the Certificate Register or any such office or agency. 
 Section 4.09. Restrictions on Transfers of
Certificates. (a) Each prospective purchaser and any subsequent transferee of a Certificate (each, a “Prospective Holder”), other than the Sponsor, shall execute and deliver to the Owner Trustee and the Certificate
Registrar and any of their respective successors an Investment Letter in the form of Exhibit C hereto to the effect that: 
 (i) Such Person is (A) a “qualified institutional buyer” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and is aware that the seller of the Certificate may be
relying on the exemption from the registration requirements of the Securities Act provided by Rule 144A and is acquiring such 

  

 14 

 
Certificate for its own account or for the account of one or more qualified institutional buyers for whom it is authorized to act, or (B) a Person
involved in the organization or operation of the Issuing Entity or an affiliate of such Person within the meaning of Rule 3a-7 of the Investment Company Act of 1940, as amended (including, but not limited to, the Sponsor). 
 (ii) Such Person understands that the Certificates have not been and will not be registered under the Securities Act and may be offered,
sold, pledged or otherwise transferred only to a person whom the seller reasonably believes is (A) a qualified institutional buyer or (B) a Person involved in the organization or operation of the Issuing Entity or an affiliate of such
Person, in a transaction pursuant to an effective registration statement under the Securities Act and any applicable state securities laws or exempt from the registration requirements of the Securities Act and any such state securities laws.

 (iii) Such Person understands that the Certificates bear a legend to the following effect: 
 “THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE
SECURITIES LAWS. THIS CERTIFICATE MAY BE DIRECTLY OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF (INCLUDING PLEDGED) BY THE HOLDER HEREOF ONLY TO (I) A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE ACT, IN
A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE LAWS OR (II) A PERSON INVOLVED IN THE ORGANIZATION OR OPERATION OF THE ISSUING ENTITY
OR AN AFFILIATE OF SUCH A PERSON WITHIN THE MEANING OF RULE 3a-7 OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (INCLUDING, BUT NOT LIMITED TO, ACCREDITED HOME LENDERS, INC.) IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE
SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH LAWS. NO PERSON IS OBLIGATED TO REGISTER THIS CERTIFICATE UNDER THE ACT OR ANY STATE SECURITIES LAWS.” 
  

 15 

 (b) By its acceptance of a Certificate, each Prospective Holder agrees and acknowledges that no legal or
beneficial interest in all or any portion of any Certificate may be transferred directly or indirectly to an entity that holds residual securities as nominee to facilitate the clearance and settlement of such securities through electronic book-entry
changes in accounts of participating organizations (a “Book-Entry Nominee”) and any such purported transfer shall be void and have no effect. 
 The Certificates shall bear an additional legend referring to the restrictions contained in preceding paragraph to the following effect: 
 THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF UNLESS, PRIOR TO SUCH DISPOSITION, THE PROPOSED TRANSFEREE DELIVERS TO THE OWNER TRUSTEE AND THE CERTIFICATE REGISTRAR A CERTIFICATE STATING THAT
SUCH TRANSFEREE IS NOT AN ENTITY THAT WILL HOLD THIS CERTIFICATE AS NOMINEE TO FACILITATE THE CLEARANCE AND SETTLEMENT OF SUCH SECURITY THROUGH ELECTRONIC BOOK-ENTRY CHANGES IN ACCOUNTS OF PARTICIPATING ORGANIZATIONS. 
 (c) No transfer of a Certificate or any beneficial interest therein shall be made to any person unless the Owner Trustee has received a representation
letter from the Prospective Holder to the effect that such Prospective Holder is not a Plan and is not, directly or indirectly, purchasing such Certificate or interest therein on behalf of, as investment manager of, as named fiduciary of, as trustee
of, or with the assets of a Plan. 
 (d) The Owner Trustee shall not execute, and shall not countersign and deliver, a Certificate in
connection with any transfer thereof unless the transferor shall have provided to the Owner Trustee an Investment Letter, signed by the transferee, which certificate shall contain the consent of the transferee to any amendments of this Agreement as
may be required to effectuate further the foregoing restrictions on transfer of the Certificates to Book-Entry Nominees, and an agreement by the transferee that it will not transfer a Certificate without providing to the Owner Trustee an Investment
Letter. 
 (e) [Reserved]. 
 (f)
Unless the Prospective Holder delivers a certificate to the Owner Trustee to the effect that it is a United States Person, the Prospective Holder, other than Accredited Home Lenders, Inc. or an affiliate of the Accredited Home Lenders, Inc., shall
obtain and deliver to the Owner Trustee an Opinion of Counsel to the effect that, as a matter of federal income tax law, the transfer of the Certificate to such Prospective Holder will not result in the imposition of any U.S. withholding tax on
payments in respect of the Mortgage Loans or the Certificate. 
  

 16 

 (g) No pledge or transfer of the Certificates shall be effective unless such pledge or transfer is
(i) to a single beneficial owner that represents that it qualifies for taxation as a REIT or is a Qualified REIT Subsidiary and (ii) accompanied by an Opinion of Counsel satisfactory to the Owner Trustee, which Opinion of Counsel shall
not, unless otherwise agreed, be an expense of the Issuing Entity, the Certificate Registrar, the Servicer, or the Sponsor, to the effect such pledge or transfer will not cause the Issuing Entity to be subject to federal income tax. 
 ARTICLE V 
 ACTIONS BY OWNER TRUSTEE

 Section 5.01. Prior Notice to the Certificateholders with Respect to Certain Matters. With respect to the following
matters, the Owner Trustee shall not take action unless at least thirty (30) days before the taking of such action, the Owner Trustee shall have notified the Certificateholders (unless the Certificateholders have directed the Owner Trustee to
take action) and the Rating Agencies in writing of the proposed action and the Certificateholders shall not have notified the Owner Trustee in writing prior to the 30th day after such notice is given that such Certificateholders have withheld
consent or have provided alternative written direction and in the case of the Rating Agencies, the Rating Agency Condition shall have been met: 
 (a) the initiation of any claim or lawsuit by the Issuing Entity (except claims or lawsuits brought in connection with the collection of the Mortgage Loans) and the compromise of any action, claim or lawsuit brought
by or against the Issuing Entity (except with respect to the aforementioned claims or lawsuits for collection of the Mortgage Loans); 
 (b) the election by the Issuing Entity to file an amendment to the Certificate of Trust (unless such amendment is required to be filed under the Statutory Trust Statute); 
 (c) the amendment or other change to this Agreement or any Basic Document in circumstances where the consent of any Certificateholder is
required; 
 (d) the amendment or other change to this Agreement or any other Basic Document in circumstances where the
consent of any Certificateholder is not required and such amendment materially adversely affects the interest of the Certificateholders; 
 (e) the appointment pursuant to the Indenture of a successor Note Registrar, or Indenture Trustee or pursuant to this Agreement of a successor Certificate Registrar or the consent to the assignment by the Note
Registrar or Indenture Trustee or Certificate Registrar of their respective obligations under the Indenture or this Agreement, as applicable; 
 (f) the consent to the waiver of any default of any Basic Document; 
 (g) the consent to the
assignment by the Indenture Trustee or Servicer of their respective obligations under any Basic Document; 
  

 17 

 (h) except as provided in Article X hereof, dissolve, terminate or liquidate the Issuing
Entity in whole or in part; 
 (i) merge or consolidate the Issuing Entity with or into any other entity, or convey or
transfer all or substantially all of the Issuing Entity’s assets to any other entity; 
 (j) cause the Issuing Entity to
incur, assume or guaranty any indebtedness other than as set forth in this Agreement or the other Basic Documents; 
 (k) do
any act which would make it impossible to carry on the ordinary business of the Issuing Entity as described in Section 2.03 hereof; 
 (l) confess a judgment against the Issuing Entity; 
 (m) possess Issuing Entity assets, or
assign the Issuing Entity’s right to property, for other than an Issuing Entity purpose; 
 (n) cause the Issuing Entity
to lend any funds to any entity; or 
 (o) change the Issuing Entity’s purpose and powers from those set forth in this
Agreement. 
 In addition the Issuing Entity shall not commingle its assets with those of any other entity. The Issuing Entity shall maintain
its financial and accounting books and records separate from those of any other entity. Except as expressly set forth herein, the Issuing Entity shall pay its indebtedness, operating expenses and liabilities from its own funds, and the Issuing
Entity shall not pay the indebtedness, operating expenses and liabilities of any other entity. The Servicer, on behalf of the Issuing Entity, shall maintain appropriate minutes or other records of all appropriate action. The Issuing Entity shall
maintain its office separate from the offices of the Sponsor, the Depositor and the Servicer. 
 Notwithstanding the other provisions of this
Section 5.01, the Owner Trustee shall not have the power, except upon the written direction of the Certificateholders, and to the extent otherwise consistent with the Basic Documents, to remove or replace the Servicer or the Indenture Trustee.

 Section 5.02. Action by Certificateholders with Respect to Bankruptcy. The Owner Trustee shall not have the power to
(i) institute proceedings to have the Issuing Entity declared or adjudicated bankrupt or insolvent, (ii) consent to the institution of bankruptcy or insolvency proceedings against the Issuing Entity, (iii) file a petition or consent
to a petition seeking reorganization or relief on behalf of the Issuing Entity under any applicable federal or state law relating to bankruptcy, (iv) consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or any
similar official) of the Issuing Entity or a substantial portion of the property of the Issuing Entity, (v) make any assignment for the benefit of the Issuing Entity’s creditors, (vi) cause the Issuing Entity to admit in writing its
inability to pay its debts generally as they become due, or (vii) take any action, or cause the Issuing Entity to take any action, in furtherance of any of the foregoing (any of the above, a “Bankruptcy Action”) without the
unanimous prior written consent and approval of all Certificateholders and the Rating Agency Condition shall 

  

 18 

 
have been satisfied and the delivery to the Owner Trustee by each such Certificateholder of a certification that such Certificateholder reasonably believes
that the Issuing Entity is insolvent. So long as the Indenture remains in effect, no Certificateholder shall have the power to take, and shall not take, any Bankruptcy Action with respect to the Issuing Entity or direct the Owner Trustee to take any
Bankruptcy Action with respect to the Issuing Entity. The terms of this Section 5.02 shall survive for one year and one day following the termination of this Agreement. 
 Section 5.03. Restrictions on Certificateholders’ Power. The Certificateholders shall not direct the Owner Trustee to take or refrain
from taking any action if such action or inaction would be contrary to any obligation of the Issuing Entity or the Owner Trustee under this Agreement or any of the other Basic Documents or would be contrary to Section 2.03, nor shall the Owner
Trustee be obligated to follow any such direction, if given. 
 Section 5.04. Majority Control. Except as expressly provided
herein, any action that may be taken by the Certificateholders under this Agreement may be taken by the holders of Certificates evidencing more than 50% of the Percentage Interest in the Issuing Entity and such action shall be binding upon all
Certificateholders. Except as expressly provided herein, any written notice of the Certificateholders delivered pursuant to this Agreement shall be effective if signed by holders of Certificates evidencing more than 50% of the Percentage Interest in
the Issuing Entity at the time of the delivery of such notice and such action shall be binding upon all Certificateholders. 
 ARTICLE VI

 TAX PROVISIONS; CERTAIN DUTIES 
 Section 6.01. Federal Income Tax Provisions. 
 (a) The Issuing Entity will be wholly owned by the
Certificateholder, which as of the Closing Date is the Depositor. The Depositor has made an election to be treated as a “real estate investment trust” (a “REIT”) under Section 856 of the Code. As such, the Depositor, as the
sole Certificateholder, will be regarded as (i) owning all assets owned by the Issuing Entity and (ii) having incurred all liabilities incurred by the Issuing Entity, and all transactions between the Issuing Entity and the Depositor will
be disregarded. 
 (b) The Depositor covenants that for so long as it is a REIT, it will not Transfer the Ownership Interest in the Issuing
Entity. 
 Section 6.02. Withholding Taxes. In the event that any withholding tax is imposed under federal, state, or local law
on the Issuing Entity’s payment (or allocations of income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to such Certificateholder in accordance with this Section 6.02. The Indenture Trustee, on behalf of
the Owner Trustee, is hereby authorized and directed to retain in the Payment Account from amounts otherwise distributable to the Certificateholders sufficient funds for the payment of any tax that is legally owed by the Issuing Entity (but such
authorization shall not prevent the Indenture Trustee from contesting any such tax in appropriate proceedings, and withholding payment of such tax, if permitted by law, pending the outcome of such proceedings). The 

  

 19 

 
Sponsor will provide the Indenture Trustee with a statement indicating the amount of any such withholding tax. The amount of any withholding tax imposed with
respect to a Certificateholder shall be treated as cash distributed to such Certificateholder at the time it is withheld by the Indenture Trustee and remitted to the appropriate taxing authority from the Payment Account at the direction of the
Indenture Trustee, on behalf of the Owner Trustee. If there is a possibility that withholding tax is payable with respect to a distribution (such as a distribution to a Certificateholder who is a Non-U.S. Person), the Indenture Trustee may in its
sole discretion withhold such amounts in accordance with this paragraph. In the event that a Certificateholder wishes to apply for a refund of any such withholding tax, the Owner Trustee and the Indenture Trustee shall reasonably cooperate with such
Certificateholder in making such claim so long as such Certificateholder agrees in writing to reimburse the Owner Trustee for any out-of-pocket expenses incurred. 
 Section 6.03. Accounting and Reports to the Certificateholders, the Internal Revenue Service and Others. The Sponsor shall (a) maintain (or cause to be maintained) the books of the Issuing Entity on a
calendar year basis on the accrual method of accounting, and (b) deliver (or cause to be delivered) to each Certificateholder such information, reports or statements as may be required by the Code and applicable Treasury Regulations and as may
be required to enable each Certificateholder to prepare its respective federal and state income tax returns. Consistent with the Issuing Entity’s characterization for tax purposes as a Qualified REIT Subsidiary, no federal income tax return
shall be filed on behalf of the Issuing Entity unless either (y) the Issuing Entity, the Indenture Trustee or the Certificateholders receive an Opinion of Counsel based on a change in applicable law occurring after the date hereof that the Code
requires such a filing or (z) the Internal Revenue Service shall determine that the Issuing Entity is required to file such a return. In the event that the Issuing Entity is required to file tax returns, the Indenture Trustee shall elect under
Section 1278 of the Code to include in income currently any market discount that accrues with respect to the Mortgage Loans. The Sponsor shall prepare or shall cause to be prepared any tax returns required to be filed by the Issuing Entity. The
Depositor, or any other such party required by law, shall promptly sign such returns and deliver such returns after signature to the Sponsor and such returns shall be filed by, or at the direction of, the Sponsor with the appropriate tax
authorities. In no event shall the Depositor or the Sponsor be liable for any liabilities, costs or expenses of the Issuing Entity arising out of the application of any tax law, including federal, state, foreign or local income or excise taxes or
any other tax imposed on or measured by income (or any interest, penalty or addition with respect thereto or arising from a failure to comply therewith), except, for any such liability, cost or expense attributable to the Depositor’s breach of
its obligations under this Agreement. 
 ARTICLE VII 
 AUTHORITY AND DUTIES OF OWNER TRUSTEE 
 Section 7.01. General Authority. The Owner
Trustee is authorized and directed to execute and deliver or cause to be executed and delivered the Notes, the Certificates and the Basic Documents to which the Issuing Entity is to be a party and each certificate or other document attached as an
exhibit to or contemplated by the Basic Documents to which the Issuing Entity is to be a party and any amendment or other agreement or instrument described in Article IV, in each case, as the Sponsor shall approve, as evidenced conclusively by the
Owner Trustee’s 

  

 20 

 
execution thereof. In addition, the Owner Trustee is authorized and directed, on behalf of the Issuing Entity, to execute and deliver to the Authenticating
Agent the Trust Request and the Trust Orders referred to in Section 2.11 of the Indenture, directly to the Authenticating Agent to authenticate and deliver the following Notes: 
  

				
	 Security
	  	 Original Note Principal
 Balance

	 Class A-1
	  	$	559,514,000
		
	 Class A-2
	  	$	158,862,000
		
	 Class A-3
	  	$	289,467,000
		
	 Class A-4
	  	$	181,457,000
		
	 Class M-1
	  	$	41,300,000
		
	 Class M-2
	  	$	37,100,000
		
	 Class M-3
	  	$	23,800,000
		
	 Class M-4
	  	$	20,300,000
		
	 Class M-5
	  	$	20,300,000
		
	 Class M-6
	  	$	17,500,000
		
	 Class M-7
	  	$	15,400,000
		
	 Class M-8
	  	$	10,500,000
		
	 Class M-9
	  	$	21,700,000

 In addition to the foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions
required of the Issuing Entity, pursuant to the Basic Documents. 
 Section 7.02. General Duties. 
 (a) It shall be the duty of the Owner Trustee: 
 (i) to discharge (or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and the Basic Documents to which the Issuing Entity is a party and to administer the Issuing Entity in
the interest of the Certificateholders, subject to the Basic Documents and in accordance with the provisions of this Agreement; and 
 (ii) to maintain the Issuing Entity’s existence as a statutory trust under the laws of the State of Delaware. 
  

 21 

 (b) The Owner Trustee shall not be responsible for taking any action on behalf of the Issuing Entity
under any Basic Document unless specifically directed in writing to do so in accordance with Section 7.03 of this Agreement. 
 (c) The
Owner Trustee shall not be responsible for any matter regarding the Securities Act, the Exchange Act or the Investment Company Act of 1940, as amended, or the rules or regulations thereunder. 
 Section 7.03. Action upon Instruction. 
 (a) Subject to Article V hereof, and in accordance with the terms of the Basic Documents, the Certificateholders may by written instruction direct the Owner Trustee in the management of the Issuing Entity but only to the extent consistent
with the limited purpose of the Issuing Entity. Such direction may be exercised at anytime by written instruction of the Certificateholders pursuant to Article V hereof. Without limiting the generality of the foregoing, the Owner Trustee shall act
as directed in writing by the Certificateholders in connection with Note redemptions requested by the Certificateholders, and shall take all actions and deliver all documents that the Issuing Entity is required to take and deliver in accordance with
Section 4.01 and Article X of the Indenture in order to effect any redemption requested by the Certificateholders. 
 (b) The Owner
Trustee shall not be required to take any action hereunder or under any other Basic Document if the Owner Trustee shall have reasonably determined, or shall have been advised by counsel, that such action is likely to result in liability on the part
of the Owner Trust or is contrary to the terms hereof or of any other Basic Document or is otherwise contrary to law. 
 (c) Subject to
Article V hereof, whenever the Owner Trustee is unable to decide between alternative courses of action permitted or required by the terms of this Agreement or under any other Basic Document, the Owner Trustee shall promptly give notice (in such form
as shall be appropriate under the circumstances) to the Certificateholders requesting instruction from the Certificateholders as to the course of action to be adopted, and to the extent the Owner Trustee acts in good faith in accordance with any
written instruction of the Certificateholders received, the Owner Trustee shall not be liable on account of such action to any Person. If the Owner Trustee shall not have received appropriate instruction within ten (10) days of such notice (or
within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action, not inconsistent with this Agreement or the
Basic Documents, as it shall deem to be in the best interests of the Certificateholders, and shall have no liability to any Person for such action or inaction. 
 (d) Subject to Article V hereof, in the event that the Owner Trustee is unsure as to the application of any provision of this Agreement or any other Basic Document or any such provision is ambiguous as to its
application, or is, or appears to be, in conflict with any other applicable provision, or in the event that this Agreement permits any determination by the Owner Trustee or is silent or is incomplete as to the course of action that the Owner Trustee
is required to take with respect to a particular set of facts, the Owner Trustee may give notice (in such form 

  

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as shall be appropriate under the circumstances) to the Certificateholders requesting instruction and, to the extent that the Owner Trustee acts or refrains
from acting in good faith in accordance with any such instruction received, the Owner Trustee shall not be liable, on account of such action or inaction, to any Person. If the Owner Trustee shall not have received appropriate instruction within ten
(10) days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action, not
inconsistent with this Agreement or the other Basic Documents, as it shall deem to be in the best interests of the Certificateholders, and shall have no liability to any Person for such action or inaction. 
 Section 7.04. No Duties Except as Specified in this Agreement, the Basic Documents or any Instructions. 
 (a) The Owner Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose of, or otherwise
deal with the Owner Trust Estate, or to otherwise take or refrain from taking any action under, or in connection with, this Agreement or any document contemplated hereby to which the Issuing Entity is a party, except as expressly provided by the
terms of this Agreement, any other Basic Document or in any document or written instruction received by the Owner Trustee pursuant to Section 7.03; and no implied duties or obligations shall be read into this Agreement or any other Basic
Document against the Owner Trustee. The Owner Trustee shall have no responsibility for filing any tax document, financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security
interest or lien granted to it hereunder or to prepare or file any Securities and Exchange Commission filing for the Issuing Entity or to record this Agreement or any other Basic Document. The Owner Trustee nevertheless agrees that it will, at its
own cost and expense, promptly take all action as may be necessary to discharge any liens on any part of the Owner Trust Estate that result from actions by, or claims against, the Owner Trustee in its individual capacity that are not related to the
ownership or the administration of the Owner Trust Estate. 
 (b) Notwithstanding anything to the contrary herein or in any other document,
the Owner Trustee shall not be required to execute, deliver or certify on behalf of the Issuing Entity or any other Person any filings, certificates, affidavits or other instruments required under the Sarbanes-Oxley Act of 2002. Notwithstanding any
Person’s right to instruct the Owner Trustee, neither the Owner Trustee nor any agent, employee, director or officer of the Owner Trustee shall have any obligation to execute any certificates or other documents required pursuant to the
Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated thereunder, and the refusal to comply with any such instructions shall not constitute a default or breach under any Basic Document. 
 Section 7.05. No Action Except under Specified Documents or Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of the Owner Trust Estate except (i) in accordance with the powers granted to and the authority conferred upon the Owner Trustee pursuant to this Agreement, (ii) in accordance with the other Basic Documents
and (iii) in accordance with any document or written instruction delivered to the Owner Trustee pursuant to Section 7.03. 
  

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 Section 7.06. Restrictions. Neither the Owner Trustee nor the Sponsor shall take any action
(a) that violates or results in a breach of or is inconsistent with the purposes of the Issuing Entity set forth in Section 2.03; (b) that causes or effectuates a Transfer of the Depositor’s Ownership Interest in the Issuing
Entity for so long as the Depositor is a REIT other than as set forth in Section 4.09(g) or (c) that, to the actual knowledge of the Sponsor and the Owner Trustee, would result in the Issuing Entity’s becoming taxable as a corporation
for federal income tax purposes. The Certificateholders shall not direct the Owner Trustee to take action that would violate the provisions of this Section 7.06. 
 ARTICLE VIII 
 CONCERNING THE OWNER TRUSTEE 
 Section 8.01. Acceptance of Trusts and Duties. The Owner Trustee accepts the trusts hereby created and agrees to perform its duties hereunder
with respect to such trusts, but only upon the terms of this Agreement and subject to the other Basic Documents. The Owner Trustee also agrees to disburse all moneys actually received by it constituting part of the Owner Trust Estate upon the terms
of the other Basic Documents and this Agreement. The Owner Trustee shall not be answerable or accountable hereunder or under any other Basic Document under any circumstances, except (i) for its own willful breach or misconduct or gross
negligence or (ii) in the case of the inaccuracy of any representation or warranty contained in Section 8.03 expressly made by the Owner Trustee in its individual capacity. In particular, but not by way of limitation (and subject to the
exceptions set forth in the preceding sentence): 
 (a) The Owner Trustee shall not be liable for any error of judgment made by a Responsible
Officer of the Owner Trustee; 
 (b) The Owner Trustee shall not be liable with respect to any action taken or omitted to be taken by it in
accordance with the instructions of the Certificateholders given in accordance with this Agreement; 
 (c) No provision of this Agreement or
any other Basic Document shall require the Owner Trustee to expend or risk funds or otherwise incur any financial liability in the performance of any of its rights or powers hereunder or under any other Basic Document if the Owner Trustee shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it; 
 (d) Under no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or arising under any of the Basic Documents, including the principal of and interest on the Notes; 
 (e) The Owner Trustee shall not be responsible for or in respect of the validity or sufficiency of this Agreement or for the due execution hereof by the
Sponsor or for the form, character, genuineness, sufficiency, value or validity of any of the Owner Trust Estate or for or in respect of the validity or sufficiency of the Basic Documents, other than the certificate of authentication on the
Certificates, and the Owner Trustee shall in no event assume or incur any liability, duty, or obligation to any Noteholder or to any Certificateholders, other than as expressly provided for herein and in the other Basic Documents; 
  

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 (f) The Owner Trustee shall not be liable for the default or misconduct of the Indenture Trustee or the
Servicer under any of the Basic Documents or otherwise and the Owner Trustee shall have no obligation or liability to perform the obligations of the Issuing Entity under this Agreement or the other Basic Documents that are required to be performed
by the Sponsor, the Indenture Trustee or the Servicer; 
 (g) The Owner Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Agreement, or to institute, conduct or defend any litigation under this Agreement or otherwise or in relation to this Agreement or any Basic Document, at the request, order or direction of the Sponsor or any of the
Certificateholders, unless such Certificateholders, or the Sponsor have offered to the Owner Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that may be incurred by the Owner Trustee therein or
thereby. The right of the Owner Trustee to perform any discretionary act enumerated in this Agreement or in any other Basic Document shall not be construed as a duty, and the Owner Trustee shall not be answerable for other than its gross negligence
or willful breach or misconduct in the performance of any such act; and 
 (h) Notwithstanding anything contained herein to the contrary,
neither U.S. Bank Trust National Association in its individual capacity nor as Owner Trustee shall be required to take any action in any jurisdiction other than in the State of Delaware if the taking of such action will (i) require the consent
or approval or authorization or order of or the giving of notice to, or the registration with or the taking of any other action in respect of, any state or other governmental authority or agency of any jurisdiction other than the State of Delaware;
(ii) result in any fee, tax or other governmental charge under the laws of any jurisdiction or any political subdivisions thereof in existence on the date hereof other than the State of Delaware becoming payable by U.S. Bank Trust National
Association; or (iii) subject U.S. Bank Trust National Association to personal jurisdiction in any jurisdiction other than the State of Delaware for causes of action arising from acts unrelated to the consummation of the transactions by U.S.
Bank Trust National Association in its individual capacity or as Owner Trustee, as the case may be, contemplated hereby. The Owner Trustee shall be entitled to obtain advice of counsel (which advice shall be an expense of the Sponsor to determine
whether any action required to be taken pursuant to this Agreement or the other Basic Documents results in the consequences described in clauses (i), (ii) and (iii) of the preceding sentence. In the event that said counsel advises the
Owner Trustee that such action will result in such consequences, the Owner Trustee will appoint an additional trustee pursuant to Section 11.05 hereof to proceed with such action. 
 Section 8.02. Furnishing of Documents. Subject to Section 4.07, the Owner Trustee shall furnish to the Certificateholders promptly upon
receipt of a written request therefor, duplicates or copies of all reports, notices, requests, demands, certificates, financial statements and any other instruments furnished to the Owner Trustee under the Basic Documents. On behalf of the Owner
Trustee, the Sponsor shall furnish to Noteholders promptly upon written request therefor, copies of the Sale and Servicing Agreement and the Indenture. 
  

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 Section 8.03. Representations and Warranties of the Owner Trustee. The Owner Trustee hereby
represents and warrants to the Sponsor, the Depositor and the Certificateholders, that: 
 (a) It is a national banking association duly
organized and validly existing in good standing under the laws of the United States of America. It has all requisite power and authority to execute, deliver and perform its obligations under this Agreement. 
 (b) It has taken all action necessary to authorize the execution and delivery by it of this Agreement, and this Agreement will be executed and delivered
by one of its officers who is duly authorized to execute and deliver this Agreement on its behalf. 
 (c) Neither the execution nor the
delivery by it of this Agreement nor the consummation by it of the transactions contemplated hereby nor compliance by it with any of the terns or provisions hereof will contravene any Delaware or Federal law, governmental rule or regulation
governing the banking or trust powers of the Owner Trustee or any judgment or order binding on it, or constitute any default under its charter documents or by-laws. 
 (d) This Agreement has been duly authorized, executed and delivered by the Owner Trustee and constitutes a valid, legal and binding obligation of the Owner Trustee, 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. 
 (e) The Owner Trustee 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 Owner Trustee or its
properties or might have consequences that would materially adversely affect its performance hereunder. 
 (f) No litigation is pending or,
to the best of the Owner Trustee’s knowledge, threatened against the Owner Trustee which would prohibit its entering into this Agreement or performing its obligations under this Agreement. 
 (g) As of the date of the Free Writing Prospectus and the Prospectus Supplement, as applicable, there are no legal or other proceedings involving the
Owner Trustee or to the best of a Responsible Officer of the Owner Trustee’s knowledge known to be contemplated by governmental authorities against the Owner Trustee that would be material to the Noteholders. 
 (h) There are no affiliations relating to the Owner Trustee with respect to Goldman, Sachs & Co., Bear, Stearns & Co. Inc., Credit
Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC, the Sponsor, the Depositor, the Issuing Entity, the Indenture Trustee and the Swap Provider. 
 (i) The Owner Trustee Information is true and correct and does not contain any material omissions as of the date of the Free Writing Prospectus and the
Prospectus Supplement, as applicable. 
  

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 Section 8.04. Reliance; Advice of Counsel. 
 (a) The Owner Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, Note, or other document or paper believed by it in good faith to be genuine and believed by it in good faith to be signed by the proper party or parties. The Owner Trustee may accept a certified copy of a resolution of
the board of directors or other governing body of any corporate party as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any fact or matter the method of the
determination of which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely on a certificate, signed by the president or any vice president or by the treasurer or other authorized officers of the relevant party,
as to such fact or matter and such certificate shall constitute full protection to the Owner Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon. 
 (b) In the exercise or administration of the trusts hereunder and in the performance of its duties and obligations under this Agreement or the other
Basic Documents, the Owner Trustee (i) may, at the expense of the Issuing Entity, act directly or through its agents or attorneys pursuant to agreements entered into with any of them, and the Owner Trustee shall not be liable for the conduct or
misconduct of such agents or attorneys if such agents or attorneys shall have been selected by the Owner Trustee with reasonable care, and (ii) may, at the expense of the Issuing Entity, consult with counsel, Accountants and other skilled
persons to be selected with reasonable care and employed by it. The Owner Trustee shall not be responsible for monitoring the performance of such agents or attorneys or for the failure of others to perform their duties, even if delegated by the
Owner Trustee, if such agents or attorneys shall have been selected by the Owner Trustee with reasonable care. The Owner Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the written opinion or
advice of any such counsel, Accountants or other such persons and not contrary to this Agreement or any other Basic Document. 
 Section 8.05. Not Acting in Individual Capacity. Except as provided in Section 8.03, in accepting the trusts hereby created, U.S. Bank Trust National Association acts solely as Owner Trustee hereunder and not in its
individual capacity, and all Persons having any claim against the Owner Trustee by reason of the transactions contemplated by this Agreement or any other Basic Document shall look only to the Owner Trust Estate for payment or satisfaction thereof.

 Section 8.06. Owner Trustee Not Liable for the Certificates or Mortgage Loans. The recitals contained herein and in the
Certificates (other than the signature and countersignature of the Owner Trustee on the Certificates) shall be taken as the statements of the Issuing Entity, and the Owner Trustee assumes no responsibility for the correctness thereof. The Owner
Trustee makes no representations as to the validity or sufficiency of this Agreement, of any other Basic Document or of the Certificates (other than the signature and countersignature of the Owner Trustee on the Certificates and as specified in
Section 8.03 hereof) or the Notes, or of any Mortgage Loans or related documents. The Owner Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity and enforceability of any Mortgage Loan, or
the perfection and priority of any security interest created by any Mortgage 

  

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Loan or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Owner Trust Estate or its ability to generate
the payments to be distributed to the Certificateholders under this Agreement or the Noteholders under the Indenture, including, without limitation, the existence, condition and ownership of any Mortgaged Property, the existence and enforceability
of any insurance thereon, the existence and contents of any Mortgage Loan on any computer or other record thereof, the validity of the assignment of any Mortgage Loan to the Issuing Entity or of any intervening assignment, the completeness of any
Mortgage Loan, the performance or enforcement of any Mortgage Loan, the compliance by the Sponsor or the Servicer 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 Indenture Trustee or the Servicer or any subservicer taken in the name of the Owner Trustee. 
 Section 8.07. Owner Trustee May Own Notes. The Owner Trustee in its individual or any other capacity may become the owner or pledgee of the Notes and may deal with the Sponsor, the Depositor, the Indenture Trustee and the
Servicer in banking transactions with the same rights as it would have if it were not Owner Trustee. 
 Section 8.08. Licenses.
The Sponsor shall cause the Issuing Entity to use its best efforts to obtain and maintain the effectiveness of any licenses required in connection with this Agreement and the other Basic Documents and the transactions contemplated hereby and thereby
until such time as the Issuing Entity shall terminate in accordance with the terms hereof. 
 Section 8.09. Legal Proceedings. As
required by Regulation AB, the Owner Trustee will promptly notify the Servicer, the Depositor and the Issuing Entity of the commencement or, if applicable, the termination of any and all legal proceedings of which any property of the Owner Trustee
is the subject, that is material to the Noteholders and any such proceedings known by a Responsible Officer of the Owner Trustee to be contemplated by governmental authorities. In addition, the Owner Trustee will furnish to the Indenture Trustee,
the Servicer, the Depositor and the Issuing Entity, in writing, the necessary disclosure describing such proceedings required to be disclosed under Item 1117 of Regulation AB, for inclusion in reports filed pursuant to the Exchange Act.

 ARTICLE IX 
 COMPENSATION OF OWNER TRUSTEE 
 Section 9.01. Owner Trustee’s Fees and Expenses. The Owner Trustee shall
receive as compensation for its services hereunder such fees as have been separately agreed upon before the date hereof between the Servicer and the Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by the Servicer for its
other reasonable expenses hereunder as separately agreed (the “Owner Trustee Fee”). 
 Section 9.02.
Indemnification. The Sponsor shall be liable as obligor for, and shall indemnify the Owner Trustee (in its individual and trust capacities) and its successors, assigns, agents and servants (collectively, the “Indemnified
Parties”) from and against, any and all liabilities, obligations, losses, damages, taxes, claims, actions and suits, and any and all reasonable costs, expenses and disbursements (including reasonable legal fees and expenses) of 

  

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any kind and nature whatsoever (collectively, “Expenses”) which may at any time be imposed on, incurred by, or asserted against any
Indemnified Party in any way relating to or arising out of this Agreement, the other Basic Documents, the Owner Trust Estate, the administration of the Owner Trust Estate or the action or inaction of the Owner Trustee hereunder, except only that the
Sponsor shall not be liable for or required to indemnify an Indemnified Party from and against Expenses arising or resulting from any of the matters described in the third sentence of Section 8.01. The indemnities contained in this
Section 9.02 shall survive the resignation or termination of the Owner Trustee or the termination of this Agreement. In any event of any claim, action or proceeding for which indemnity will be sought pursuant to this Section, the Sponsor will
be entitled to participate therein, with counsel selected by the Sponsor and reasonably satisfactory to the Indemnified Parties, but after notice from an Indemnified Party to the Sponsor of its election to assume the defense thereof, the Sponsor
shall not be liable to the Indemnified Party under this Section 9.02 for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense of such action; provided, however, that this
sentence shall not be in effect if (1) the Sponsor shall not have employed counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party within a reasonable time after notice of commencement of the action,
(2) the Sponsor shall have authorized the employment of counsel for the Indemnified Party at the expense of the Sponsor or (3) in the event any such claim involves a possible imposition of criminal liability or penalty or a material civil
penalty on such Indemnified Party, a conflict of interest between such Indemnified Party and the Sponsor or another indemnitee or the granting of material injunctive relief against such Indemnified Party, and such Indemnified Party informs the
Sponsor that such Indemnified Party desires to be represented by separate counsel, in which case, the reasonable fees and expenses of such separate counsel shall be borne by the Sponsor. If the Sponsor assumes the defense of any such proceeding, the
Sponsor shall be entitled to settle such proceeding without any liability being assessed against any Indemnified Party or, if such settlement provides for release of any such Indemnified Party without any liability being assessed against any
Indemnified Party in connection with all matters relating to the proceeding which have been asserted against such Indemnified Party in such proceeding by the other parties to such settlement, without the prior written consent of such Indemnified
Party, but otherwise only with the prior written consent of such Indemnified Party. 
 Section 9.03. Payments to the Owner
Trustee. Any amounts paid to the Owner Trustee pursuant to this Article IX shall be deemed not to be a part of the Owner Trust Estate immediately after such payment. 
 ARTICLE X 
 TERMINATION OF TRUST AGREEMENT 
 Section 10.01. Termination of Trust Agreement. 
 (a) This Agreement (other than Article IX) shall terminate and the Issuing Entity shall dissolve and be of no further force or effect on the earlier of: (i) the final payment or other liquidation of the Mortgage Loans and the
disposition of all REO Properties and the remittance of all funds due hereunder with respect to such Mortgage Loans and REO Properties after the satisfaction and discharge of the Indenture pursuant to Section 4.01 of the Indenture; and
(ii) the 

  

 29 

 
expiration of 21 years from the death of the last survivor of descendants of Joseph P. Kennedy (the late ambassador of the United States to the Court of St.
James). The bankruptcy, liquidation, dissolution, death or incapacity of the any Certificateholder or the Sponsor shall not (x) operate to terminate this Agreement or the Issuing Entity, nor (y) entitle Certificateholders’ or the
Sponsor’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 all or any part of the Issuing Entity or Owner Trust Estate nor (z) otherwise affect the
rights, obligations and liabilities of the parties hereto. 
 (b) Except as provided in Section 10.01(a) above, none of the Sponsor, the
Servicer, nor the Certificateholders shall be entitled to revoke or terminate the Issuing Entity. 
 (c) Notice of any termination of the
Issuing Entity, specifying the Payment Date upon which the Certificateholders shall surrender their Certificates to the Indenture Trustee for payment of the final distributions and cancellation, shall be given by the Owner Trustee to the
Certificateholders, the Rating Agencies, the Swap Provider and the Indenture Trustee mailed within five (5) Business Days of receipt by the Owner Trustee from the Servicer of notice of such termination, which notice given by the Owner Trustee
shall state (i) the Payment Date upon or with respect to which final payment of the Certificates shall be made upon presentation and surrender of the Certificates at the office of the Indenture Trustee therein designated, (ii) the amount
of any such final payment and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, payments being made only upon presentation and surrender of the Certificates at the office of the Indenture Trustee therein
specified. The Owner Trustee shall give such notice to the Certificate Registrar (if other than the Owner Trustee) and the Indenture Trustee at the time such notice is given to Certificateholders. Upon presentation and surrender of Certificates,
subject to Section 3808 of the Statutory Trust Statute, amounts distributable on such Payment Date pursuant to the terms of the Indenture. 
 (d) In the event that Certificateholders shall not surrender their Certificates for cancellation within six months after the date specified in the above mentioned written notice, the Owner Trustee shall give a second written notice to
Certificateholders to surrender the Certificates for cancellation and receive the final distribution with respect thereto. If within one year after the second notice the Ownership Interest shall not have been surrendered for cancellation, the Owner
Trustee may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Certificateholders concerning surrender of the Certificates, and the cost thereof shall be paid out of the funds and other assets that
shall remain subject to this Agreement. Any funds remaining in the Issuing Entity after exhaustion of such remedies shall be distributed by the Indenture Trustee to the Certificateholders. 
 (e) Upon the winding up of the Issuing Entity in accordance with Section 3808 of the Statutory Trust Statute and its termination, the Owner Trustee
shall cause the Certificate of Trust to be canceled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810 of the Statutory Trust Statute. 
  

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 ARTICLE XI 
 SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES 
 Section 11.01. Eligibility
Requirements for Owner Trustee. The Owner Trustee shall at all times be a corporation or banking association satisfying the provisions of Section 3807(a) of the Statutory Trust Statute; authorized to exercise trust powers; having a combined
capital and surplus of at least $50,000,000 and subject to supervision or examination by Federal or state authorities; and having (or having a parent that has) a rating of at least “Baa3” by Moody’s, and “A-1” by S&P (or
otherwise acceptable to the Rating Agencies). If such entity shall publish reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purpose of this
Section 11.01, the combined capital and surplus of such entity 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 Owner Trustee shall cease to be
eligible in accordance with the provisions of this Section 11.01, the Owner Trustee shall resign immediately in the manner and with the effect specified in Section 11.02. 
 Section 11.02. Resignation or Removal of Owner Trustee. The Owner Trustee may at any time resign and be discharged from the trusts hereby
created by giving written notice thereof to the Issuing Entity, the Sponsor, the Servicer, the Swap Provider and the Indenture Trustee. Upon receiving such notice of resignation, the Sponsor shall promptly appoint a successor Owner Trustee by
written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Owner Trustee and one copy to the successor Owner Trustee. If no successor Owner Trustee shall have been so appointed and have accepted appointment
within thirty (30) days after the giving of such notice of resignation, the resigning Owner Trustee may petition any court of competent jurisdiction for the appointment of a successor Owner Trustee. 
 If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of Section 11.01 and shall fail to resign after
written request therefor by the Certificateholders or the Sponsor, or if at any time the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Certificateholders or the Sponsor, may remove the Owner
Trustee. If the Certificateholders or the Sponsor shall remove the Owner Trustee under the authority of the immediately preceding sentence, the Sponsor, shall promptly appoint a successor Owner Trustee by written instrument in duplicate, one copy of
which instrument shall be delivered to the outgoing Owner Trustee so removed and one copy to the successor Owner Trustee and payment of all fees owed to the outgoing Owner Trustee. 
 Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section 11.02
shall not become effective until acceptance of appointment by the successor Owner Trustee pursuant to Section 11.03, and payment of all fees and expenses owed to the outgoing Owner Trustee. The Servicer shall provide notice of such resignation
or removal of the Owner Trustee to each of the Rating Agencies, the Swap Provider and the Indenture Trustee. 
 Section 11.03.
Successor Owner Trustee. Any successor Owner Trustee appointed pursuant to Section 11.02 shall execute, acknowledge and deliver to the Issuing Entity, the Sponsor, the Indenture Trustee and to its predecessor Owner Trustee an instrument
accepting such appointment under this Agreement, and thereupon, subject to the payment of all fees and 

  

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expenses owed to the outgoing Owner Trustee, the resignation or removal of the predecessor Owner Trustee shall become effective and such successor Owner
Trustee without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties, and obligations of its predecessor under this Agreement, with like effect as if originally named as Owner Trustee. The predecessor
Owner Trustee shall upon payment of its fees and expenses deliver to the successor Owner Trustee all documents and statements and moneys held by it under this Agreement; and the Sponsor and the predecessor Owner Trustee shall execute and deliver
such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Owner Trustee all such rights, powers, duties, and obligations. 
 No successor Owner Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Owner Trustee shall
be eligible pursuant to Section 11.01. 
 Upon acceptance of appointment by a successor Owner Trustee pursuant to this
Section 11.03, the Sponsor shall mail notice of the successor of such Owner Trustee to the Certificateholders, the Indenture Trustee, the Noteholders and the Rating Agencies. If the Sponsor fails to mail such notice within ten (10) days
after acceptance of appointment by the successor Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed at the expense of the Sponsor. 
 Any successor Owner Trustee appointed pursuant to this Section 11.03 shall file an amendment to the Certificate of Trust with the Secretary of State identifying the name and principal place of business of such
successor Owner Trustee in the State of Delaware. 
 Section 11.04. Merger or Consolidation of Owner Trustee. Any corporation or
banking association into which the Owner Trustee may be merged or converted or with which it may be consolidated or any corporation or banking association resulting from any merger, conversion or consolidation to which the Owner Trustee shall be a
party, or any corporation or banking association succeeding to all or substantially all of the corporate trust business of the Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided such corporation or banking association
shall be eligible pursuant to Section 11.01, without the execution or filing of any instrument or any further act on the part of any of the parties hereto, except the filing of an amendment to the Certificate of Trust, if appropriate, anything
herein to the contrary notwithstanding; provided, further, that the Owner Trustee shall mail notice of such merger, conversion or consolidation to the Rating Agencies and the Swap Provider and; provided, further, that the
Owner Trustee shall file an amendment to the Certificate of Trust as required under Section 11.03 above. 
 Section 11.05.
Appointment of Co-Trustee or Separate Trustee. 
 (a) Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part of the Owner Trust Estate or any Mortgaged Property may at the time be located, and for the purpose of performing certain duties and obligations of the Owner Trustee
with respect to the Issuing Entity and the Certificates, the Owner Trustee shall have the power and shall execute and deliver all 

  

 32 

 
instruments to appoint one or more Persons approved by the Owner Trustee and acceptable to the Sponsor to act as co-trustee, jointly with the Owner Trustee,
or separate trustee or separate trustees, of all or any part of the Owner Trust Estate, and to vest in such Person, in such capacity, such title to the Issuing Entity, or any part thereof, and, subject to the other provisions of this
Section 11.05, such powers, duties, obligations, rights and trusts as the Sponsor and the Owner Trustee may consider necessary or desirable. No co-trustee or separate trustee under this Agreement shall be required to meet the terms of
eligibility as a successor trustee pursuant to Section 11.01 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 11.03. 
 (b) Each separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provision and conditions:

 (i) all rights, powers, duties and obligations conferred or imposed upon the Owner Trustee shall be conferred upon and
exercised or performed by the Owner 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 Owner 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 Owner 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 Issuing Entity 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 Owner Trustee; 
 (ii) no trustee under this Agreement shall be personally liable by reason of any act or omission of any other trustee under this
Agreement; and 
 (iii) the Owner 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 Owner Trustee shall be deemed to have been given to the separate
trustees and co-trustees, as if given to each of them. Every instrument appointing any separate trustee or co-trustee, other than this Agreement, shall refer to this Agreement and to the conditions of this Article XI. Each separate trustee and
co-trustee, upon its acceptance of appointment, shall be vested with the estates specified in its instrument of appointment, either jointly with the Owner 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 Owner Trustee. Each such instrument shall be filed with the Owner Trustee. 
 (d) Any separate trustee or co-trustee may at any time appoint the Owner Trustee as 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 Owner Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. 
  

 33 

 ARTICLE XII 
 MISCELLANEOUS 
 Section 12.01. Supplements and Amendments. This Agreement may be amended
by the Sponsor, the Depositor and the Owner Trustee, with prior written notice to the Rating Agencies, but without the consent of any of the Noteholders, the Certificateholders or the Indenture Trustee, to cure any ambiguity, to correct or
supplement any provisions in this Agreement or for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions in this Agreement or of modifying in any manner the rights of the Noteholders or the
Certificateholders; provided, however, such action shall not adversely affect in any material respect the interests of any Noteholder, Certificateholder or the Swap Provider (unless the consent of the Swap Provider is obtained). An
amendment described above shall be deemed not to adversely affect in any material respect the interests of any Noteholder if the party requesting the amendment (i) delivers an Opinion of Counsel, at the expense of the party requesting the
change, delivered to the Owner Trustee to such effect, or (ii) satisfies the Rating Agency Condition with respect to such amendment. 
 This Agreement may also be amended from time to time by the Sponsor, the Depositor and the Owner Trustee, with the prior written consent of the Rating Agencies and with the prior written consent of the Indenture Trustee, the Noteholders
evidencing more than 50% of the Class Note Balance of the Outstanding Notes of all of the Classes affected thereby and the Certificateholders evidencing more than 50% of the Percentage Interests of the Issuing Entity, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided, however, no such amendment shall
(a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on the Mortgage Loans or distributions that shall be required to be made for the benefit of the Noteholders or the
Certificateholders, (b) reduce the aforesaid percentage of the Outstanding Principal Balance of the Notes or the Percentage Interests required to consent to any such amendment, in either case of clause (a) or (b) without the consent
of the holders of all the outstanding Notes affected thereby and the Certificateholders of all the outstanding Certificates. 
 Promptly
after the execution of any such amendment or consent, the Sponsor shall furnish written notification of the substance of such amendment or consent to the Certificateholders, the Indenture Trustee, the Swap Provider and each of the Rating Agencies.

 It shall not be necessary for the consent of the Certificateholders, the Noteholders or the Indenture Trustee pursuant to this Section to
approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents (and any other consents of Certificateholders provided for in
this Agreement or in any other Basic Document) and of evidencing the authorization of the execution thereof by Certificateholders shall be subject to such reasonable requirements as the Owner Trustee may prescribe. 
 Promptly after the execution of any amendment to the Certificate of Trust, the Owner Trustee shall cause the filing of such amendment with the Secretary
of State. 
  

 34 

 Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the Owner Trustee
shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and that all conditions precedent have been met. The Owner Trustee may, but shall not be
obligated to, enter into any such amendment which affects the Owner Trustee’s own rights, duties or immunities under this Agreement or otherwise. 
 Section 12.02. No Legal Title to Owner Trust Estate in Certificateholders. The Certificateholders shall not have legal title to any part of the Owner Trust Estate. The Certificateholders shall be entitled
to receive distributions with respect to their undivided beneficial ownership interest therein only in accordance with Articles VI and X. No transfer, by operation of law or otherwise, of any right, title, or interest of the Certificateholders to
and in their ownership interest in the Owner Trust Estate shall operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an accounting or to the transfer to it of legal title to any part of the Owner Trust Estate.

 Section 12.03. Limitations on Rights of Others. The provisions of this Agreement are solely for the benefit of the Owner
Trustee, the Sponsor, the Depositor, the Certificateholders and, to the extent expressly provided herein, the Indenture Trustee, the Swap Provider and the Noteholders, and nothing in this Agreement, whether express or implied, shall be construed to
give to any other Person any legal or equitable right, remedy or claim in the Owner Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions contained herein. 
  

 35 

 Section 12.04. Notices. 
 (a) Unless otherwise expressly specified or permitted by the terms hereof, all communications provided for or permitted hereunder shall be in writing and
shall be deemed to have been given if (1) personally delivered, (2) upon receipt by the intended recipient or three Business Days after mailing if mailed by certified mail, postage prepaid (except that notice to the Owner Trustee shall be
deemed given only upon actual receipt by the Owner Trustee), (3) sent by express courier delivery service and received by the intended recipient or (4) except with respect to notices sent to the Owner Trustee, transmitted by telex or
facsimile transmission (or any other type of electronic transmission agreed upon by the parties and confirmed by a writing delivered by any of the means described in (1), (2) or (3), at the following addresses: (i) if to the Owner Trustee,
at its Corporate Trust Office; and (ii) if to the Sponsor, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego, California 92128, Attention: General Counsel, telecopy: (858) 676-2170; or, as to each such party, at such other
address as shall be designated by such party in a written notice to each other party. 
 (b) Any notice required or permitted to be given to
a Certificateholder shall be given by first-class mail, postage prepaid, at the address of such Certificateholder as shown in the Certificate Register. Any notice so mailed within the time prescribed in this Agreement shall be conclusively presumed
to have been duly given, whether or not the Certificateholder receives such notice. 
 Section 12.05. Severability. Any provision
of this Agreement 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 provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 Section 12.06. Separate Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument. 
 Section 12.07. Successors and Assigns. All covenants and agreements contained
herein shall be binding upon, and inure to the benefit of, the Sponsor, the Owner Trustee and its successors and each Certificateholder and its successors and permitted assigns, all as herein provided. Any request, notice, direction, consent, waiver
or other instrument or action by a Certificateholder shall bind the successors and assigns of such Certificateholder. 
 Section 12.08.
No Petition. The Owner Trustee, by entering into this Agreement, each Certificateholder, by accepting a Certificate, and the Indenture Trustee and each Noteholder by accepting the benefits of this Agreement, hereby covenant and agree that
they will not at any time institute against the Depositor or the Issuing Entity, or join in any institution against the Depositor or the Issuing Entity of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States Federal or state bankruptcy law in connection with any obligations relating to the Certificates, the Notes, this Agreement or any of the other Basic Documents. 
  

 36 

 This Section 12.08 will survive for one year and one day following the termination of this
Agreement. 
 Section 12.09. No Recourse. Each Certificateholder by accepting a Certificate acknowledges that such
Certificateholder’s Certificate represents a beneficial interest in the Issuing Entity only and does not represent an interest in or an obligation of the Servicer, the Sponsor, the Owner Trustee or any Affiliate thereof and no recourse may be
had against such parties or their assets, except as may be expressly set forth or contemplated in this Agreement, the Certificates or the other Basic Documents. 
 Section 12.10. Headings. The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. 
 Section 12.11. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO
ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 Section 12.12. [Intentionally Omitted.] 
 Section 12.13. Third-Party Beneficiaries. The Indenture Trustee and the
Swap Provider are intended third-party beneficiaries of this Agreement, and this Agreement shall be binding upon and inure to the benefit of the Indenture Trustee and the Swap Provider. 
 Section 12.14. [Intentionally Omitted.] 
 Section 12.15. Servicer. The Servicer is authorized to prepare, or cause to be prepared, execute and deliver on behalf of the Issuing Entity all such documents, reports, filings, instruments, certificates and opinions as it
shall be the duty of the Issuing Entity, the Sponsor or Owner Trustee to prepare, file or deliver pursuant to the Basic Documents. Upon written request, the Owner Trustee shall execute and deliver to the Servicer a limited power of attorney
appointing the Servicer the Issuing Entity’s agent and attorney-in-fact to prepare, or cause to be prepared, execute and deliver all such documents, reports, filings, instruments, certificates and opinions. 
 [Remainder of Page Intentionally Left Blank] 
  

 37 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
officers hereunto duly authorized, as of the day and year first above written. 
  

			
	 ACCREDITED HOME LENDERS, INC.,
 as Sponsor

		
	 By:
	 	 /s/ Charles O. Ryan

	 Name:
	 	 Charles O. Ryan

	 Title:
	 	 Securitization Coordinator

	
	ACCREDITED MORTGAGE LOAN REIT TRUST, as Depositor
		
	 By:
	 	 /s/ Melissa Dant

	 Name:
	 	 Melissa Dant

	 Title:
	 	 Senior Secondary Markets Counsel,
 Ass’t Vice
President, and Ass’t Secretary

	
	U.S. BANK TRUST NATIONAL ASSOCIATION, as Owner Trustee
		
	 By:
	 	 /s/ Patricia M. Child

	 Name:
	 	 Patricia M. Child

	 Title:
	 	 Vice President

 [Signature page to Amended and Restated Trust Agreement] 
  

 38 

 EXHIBIT A 
 FORM OF TRUST CERTIFICATE 
 THE EQUITY INTEREST IN THE TRUST REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS. THIS EQUITY INTEREST MAY BE DIRECTLY OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF (INCLUDING PLEDGED) BY THE HOLDER HEREOF
ONLY TO (I) A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE ACT, IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
ACT AND OF SUCH STATE LAWS OR (II) A PERSON INVOLVED IN THE ORGANIZATION OR OPERATION OF THE TRUST OR AN AFFILIATE OF SUCH A PERSON WITHIN THE MEANING OF RULE 3A-7 OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (INCLUDING, BUT NOT LIMITED TO,
ACCREDITED HOME LENDERS, INC.) IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH LAWS. NO PERSON IS OBLIGATED TO REGISTER THIS EQUITY
INTEREST UNDER THE ACT OR ANY STATE SECURITIES LAWS. 
 NO TRANSFER OF THIS CERTIFICATE OR ANY BENEFICIAL INTEREST HEREIN SHALL BE MADE TO ANY PERSON UNLESS
THE OWNER TRUSTEE HAS RECEIVED A REPRESENTATION LETTER FROM THE TRANSFEREE TO THE EFFECT THAT SUCH TRANSFEREE IS NOT (I) AN EMPLOYEE BENEFIT PLAN (WITHIN THE MEANING OF SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”)) THAT IS SUBJECT TO TITLE OF ERISA, (II) A PLAN (WITHIN THE MEANING OF SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (III) A
GOVERNMENTAL PLAN (WITHIN THE MEANING OF SECTION 3(32) OF ERISA) THAT IS SUBJECT TO ANY FEDERAL, STATE OR LOCAL LAW THAT IS, TO A MATERIAL EXTENT, SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE (EACH OF THE FOREGOING, A “PLAN”)
AND IS NOT DIRECTLY OR INDIRECTLY PURCHASING THIS CERTIFICATE OR A BENEFICIAL INTEREST HEREIN ON BEHALF OR, AS INVESTMENT MANAGER OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A PLAN. 
 THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF UNLESS, PRIOR TO SUCH DISPOSITION, THE PROPOSED TRANSFEREE DELIVERS TO THE OWNER TRUSTEE AND THE CERTIFICATE REGISTRAR A CERTIFICATE STATING THAT
SUCH TRANSFEREE (A) AGREES TO BE BOUND BY AND TO ABIDE BY THE TRANSFER RESTRICTIONS APPLICABLE TO THIS CERTIFICATE; (B) IS NOT AN ENTITY THAT WILL HOLD THIS CERTIFICATE AS NOMINEE TO FACILITATE THE CLEARANCE AND SETTLEMENT OF SUCH SECURITY
THROUGH ELECTRONIC BOOK-ENTRY CHANGES IN ACCOUNTS OF PARTICIPATING ORGANIZATIONS; AND (C) UNDERSTANDS THAT IT MUST TAKE INTO ACCOUNT ITS PERCENTAGE INTEREST OF THE TAXABLE INCOME RELATING TO THIS CERTIFICATE. 

			
	 Certificate No. 1
	  	Percentage Interest: 100%

 THIS CERTIFIES THAT Accredited Mortgage Loan REIT Trust (the “Certificateholder”)
is the registered owner of a 100% Percentage Interest in Accredited Mortgage Loan Trust 2006-2 (the “Issuing Entity”) existing under the laws of the State of Delaware and created pursuant to that certain Trust Agreement, dated as of
June 2, 2006, as amended and restated on June 29, 2006 (as amended and restated, the “Trust Agreement”), by and among Accredited Home Lenders, Inc., as sponsor, Accredited Mortgage Loan REIT Trust, as depositor, and U.S.
Bank Trust National Association, not its individual capacity but solely as owner trustee under the Trust Agreement (the “Owner Trustee”). Capitalized terms used but not otherwise defined herein have the meanings assigned to such
terms in the Trust Agreement. The Owner Trustee, on behalf of the Issuing Entity and not in its individual capacity, has executed this Certificate by one of its duly authorized signatories as set forth below. This Certificate is one of the
Certificates referred to in the Trust Agreement and is issued under and is subject to the terms, provisions and conditions of the Trust Agreement to which the Certificateholder by virtue of the acceptance hereof agrees and by which the
Certificateholder hereof is bound. Reference is hereby made to the Trust Agreement for the rights of the Certificateholder, as well as for the terms and conditions of the Issuing Entity created by the Trust Agreement. 
 The recitals contained herein (other than the signature and countersignature of the Owner Trustee) shall be taken as the statements of the Sponsor, and
the Owner Trustee assumes no responsibility for the correctness thereof. 
 The Certificateholder, by its acceptance hereof, agrees not to
transfer this Certificate except in accordance with terms and provisions of the Trust Agreement. 
 The Certificateholder, by its acceptance
hereof, acknowledges that such Certificateholder’s Certificate represents a beneficial interest in the Issuing Entity only and does not represent an interest in or an obligation of the Servicer, the Depositor, the Sponsor, the Owner Trustee or
any Affiliate thereof and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein, in the Trust Agreement or the other Basic Documents. 
 THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  

 A-2 

 IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuing Entity and not in its individual
capacity, has caused this Certificate to be duly executed. 
  

			
	 ACCREDITED MORTGAGE LOAN
 TRUST 2006-2

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

		 	Authorized Signatory

 Dated: June 29, 2006 
 CERTIFICATE OF AUTHENTICATION 
 This
is one of the Certificates referred to in the within-mentioned Trust Agreement. 
  

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

		 	Authorized Signatory

 Dated: June 29, 2006 

 A-3 

 ASSIGNMENT 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto 
 PLEASE INSERT
SOCIAL SECURITY 
 OR OTHER IDENTIFYING NUMBER 
 OF ASSIGNEE 
  

 (Please print or type name and address, including postal zip code, of assignee) 
  

 the within instrument, and all rights thereunder,
hereby irrevocably constituting and appointing                     , Attorney, to transfer said Instrument on the books of the Certificate
Registrar, with full power of substitution in the premises. 
 Dated: 
  

			
	 By:
	 	 */

		 	Signature Guaranteed:
		
	 By:
	 	 */

	*	/ NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Instrument in every particular, without alteration, enlargement or
any change whatever. Such signature must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. 

  

 A-4 

 EXHIBIT B 
 FORM OF CERTIFICATE OF TRUST 
 CERTIFICATE OF TRUST OF 
 ACCREDITED MORTGAGE LOAN TRUST 2006-2 
 THIS
CERTIFICATE OF TRUST OF ACCREDITED MORTGAGE LOAN TRUST 2006-2 (the “Trust”), is being duly executed and filed by the undersigned, as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del. Code, §
3801 et seq.)(the “Act”). 
 1. Name. The name of the statutory trust formed hereby is Accredited Mortgage
Loan Trust 2006-2. 
 2. Delaware Trustee. The name and business address of the trustee of the Trust in the State of
Delaware are U.S. Bank Trust National Association, 300 Delaware Avenue, Eighth Floor, Wilmington, Delaware 19801, Attention: Corporate Trust Administration. 
 3. Series. Pursuant to Section 3806(b)(2) of the Act, the Trust shall issue one or more series of beneficial interests having
the rights and preferences set forth in the Governing instrument of the Trust, as the same may be amended from time to time (each, a “Series” or “Sub-Trust”). 
 4. Notice of Limitation of Liabilities of each Series. Pursuant to Section 3804(a) of the Act, there shall be a limitation on
liabilities of each Series such that (a) the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular Series shall be enforceable against the assets of such Series only, and not
against the assets of the Trust generally or the assets of any other Series thereof and (b) none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Trust generally or any other
Series thereof shall be enforceable against the assets of such Series. 
 5. Effective Date. This Certificate of Trust
shall be effective upon filing. 
  

 B-1 

 IN WITNESS WHEREOF, the undersigned, has duly executed this Certificate of Trust in
accordance with Section 3811(a)(1) of the Act. 
  

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

	 Name:
	 	
	 Title:
	 	

 B-2 

 EXHIBIT C 
 FORM OF INVESTMENT LETTER  
                         ,             

 Accredited Home Lenders, Inc. 
 15090 Avenue of Science 
 San Diego, California 92128 
 U.S. Bank Trust National Association 
 300 Delaware Avenue, Eighth Floor 
 Wilmington, Delaware 19801 
 Attention: Corporate Trust Administration 
 Re:    Accredited Mortgage Loan Trust 2006-2 (the “Issuing Entity”) Asset-Backed Notes, Series 2006-2 

 Ladies and Gentlemen: 
                                       
           (the “Certificateholder”) has purchased or acquired, or intends to purchase or acquire from
                             , the current Certificateholder (the “Current
Certificateholder”), a Trust Certificate representing a 100% Percentage Interest (the “Certificate”) in the Issuing Entity, which represents an interest in the Issuing Entity created pursuant to that certain Trust
Agreement, dated as of June 2, 2006, as amended and restated on June 29, 2006 (the “Trust Agreement”), by and among Accredited Home Lenders, Inc., as Sponsor, Accredited Mortgage Loan REIT Trust, as Depositor and U.S. Bank
Trust National Association, as Owner Trustee. Capitalized terms used and not otherwise defined herein have the meanings assigned to such terms in the Trust Agreement. 
 CERTIFICATION 
 The undersigned, as an authorized officer or agent of the Certificateholder, hereby
certifies, represents, warrants and agrees on behalf of the Certificateholder as follows: 
 1. The Certificateholder is duly organized,
validly existing and in good standing under the laws of the jurisdiction in which it was formed and is authorized to invest in the Certificate. The person executing this letter on behalf of the Certificateholder is duly authorized to do so on behalf
of the Certificateholder. 
 2. The Certificateholder hereby acknowledges that no transfer of the Certificate may be made unless such
transfer is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”); and applicable state securities laws, or is made in accordance with the Securities Act and such laws.

 3. The Certificateholder understands that the Certificate has not been and will not be registered under the Securities Act and may be
offered, sold, pledged or otherwise transferred to a person whom the transferor reasonably believes is (A) a qualified institutional buyer (as defined in Rule 144A under the Securities Act) or (B) a Person involved in the organization or
operation of the Issuing Entity or an affiliate of such Person, in a transaction 

 C-1 

 
pursuant to an effective registration statement under the Securities Act and any applicable state securities laws or exempt from the registration
requirements of the Securities Act and any such state securities laws. The Certifcateholder understands that the Certificate bears a legend to the foregoing effect. 
 4. The Certificateholder is acquiring the Certificate for its own account or for accounts for which it exercises sole investment discretion, and not with a view to or for sale or other transfer in connection with any
distribution of the Certificate in any manner that would violate Section 5 of the Securities Act or any applicable state securities laws, subject nevertheless to any requirement of law that the disposition of the Certificateholder’s
property shall at all times be and remain within its control. 
 5. The Certificateholder is (A) a “qualified institutional
buyer” (a “QIB”) as defined in Rule 144A under the Securities Act, and is aware that the transferor of the Certificate may be relying on an exemption from the registration requirements of the Securities Act and is acquiring
such Certificate for its own account or for the account of one or more qualified institutional buyers for whom it is authorized to act, or (B) a Person involved in the organization or operation of the Issuing Entity or an affiliate of such
Person within the meaning of Rule 3a-7 of the Investment Company Act of 1940, as amended (including, but not limited to, the Sponsor). The Certificateholder is able to bear the economic risks of such an investment. The Certificateholder is a QIB
because [STATE FACTUAL BASIS FOR QIB STATUS]. 
 6. If the Certificateholder sells or otherwise transfers the registered ownership of such
Certificate, the Certificateholder will comply with the restrictions and requirements with respect to the transfer of the ownership of the Certificate under the Trust Agreement, and the Certificateholder will obtain from any subsequent purchaser or
transferee substantially the same certifications, representations, warranties and covenants as required under the Trust Agreement in connection with such subsequent sale or transfer thereof. 
 7. The Certificateholder is not an entity that will hold a Certificate as nominee (a “Book Entry Nominee”) to facilitate the clearance
and settlement of such security through electronic book-entry changes in Accounts or participating organizations. 
 8. The Certificateholder
consents to any amendments of the Trust Agreement as may be required to effectuate further the restrictions on transfer of the Certificates to Book Entry Nominees. 
 9. The Certificateholder is not a Plan and is not, directly or indirectly, purchasing such Certificate on behalf of, as investment manager of, as named fiduciary of, as trustee of, or with assets of a Plan.

 10. The Certificateholder hereby agrees to indemnify each of the Issuing Entity, the Indenture Trustee and the Owner Trustee against any
liability that may result if the Certificateholder’s transfer of a Certificate (or any portion thereof) is not exempt from the registration requirements of the Securities Act and any applicable state securities laws or is not made in accordance
with such federal and state laws. Such indemnification of the Issuing Entity, the Indenture Trustee, and the Owner Trustee shall survive the termination of the related Trust Agreement. 
 11. The Certificateholder qualifies for taxation as a REIT or is a qualified REIT subsidiary. 
  

 C-2 

 IN WITNESS WHEREOF, the Certificateholder has caused this instrument to be executed on its behalf
pursuant to the authority of its Board of Directors, by its duly authorized signatory this      day of
                    ,              . 
  

			
	 [NAME OF CERTIFICATEHOLDER]

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 C-3 

 EXHIBIT D 
 FORM OF TRANSFEROR CERTIFICATE 
                         ,             

 Accredited Home Lenders, Inc. 
 15090 Avenue of Science 
 San Diego, California 92128 
 U.S. Bank Trust National Association 
 300 Delaware Avenue, Eighth Floor 
 Wilmington, Delaware 19801 
 Attention: Corporate Trust Administration 
 Re:     Accredited Mortgage Loan Trust 2006-2 (the “Issuing Entity”) Asset-Backed Notes, Series 2006-2 

Ladies and Gentlemen: 
 In connection with our disposition of the above-referenced Asset-Backed Certificates (the “Certificates”) we certify that (i) we understand that the Certificates have not been registered under the Securities Act of
1933, as amended (the “Act”), and are being transferred by us in a transaction that is exempt from the registration requirements of the Act and (ii) we have not offered or sold any Certificates to, or solicited offers to buy
any Certificates from, any person, or otherwise approached or negotiated with any person with respect thereto, in a manner that would be deemed, or taken any other action which would result in, a violation of Section 5 of the Act. 

Dated: 
  

			
	 [NAME OF TRANSFEROR]

		
	 By:
	 	  

		 	 Authorized Officer
  

  

 D-1Sale and Servicing Agreement

 Exhibit 10.1 
 EXECUTION VERSION 
 SALE AND SERVICING AGREEMENT 
 dated as of June 1, 2006 
 by and among

 ACCREDITED MORTGAGE LOAN REIT TRUST, 
 as Depositor, 
 ACCREDITED HOME LENDERS, INC., 
 as Sponsor and Servicer, 
 ACCREDITED MORTGAGE LOAN TRUST 2006-2, 
 as Issuing Entity, 
 and 
 DEUTSCHE BANK NATIONAL TRUST COMPANY, 
 as
Indenture Trustee 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
		  	 ARTICLE I
 DEFINITIONS
	  	
			
	Section 1.01.	  	Certain Defined Terms	  	1
	Section 1.02.	  	Provisions of General Application	  	2
			
		  	 ARTICLE II
 SALE AND CONVEYANCE OF THE MORTGAGE LOANS
	  	
			
	Section 2.01.	  	Purchase and Sale of the Closing Date Mortgage Loans; Deposit of Derivatives	  	2
	Section 2.02.	  	Reserved	  	3
	Section 2.03.	  	Purchase Price	  	3
	Section 2.04.	  	Possession of Mortgage Files; Access to Mortgage Files	  	3
	Section 2.05.	  	Delivery of Mortgage Loan Documents	  	4
	Section 2.06.	  	Acceptance of the Trust Estate; Certain Substitutions; Certification by the Indenture Trustee	  	7
	Section 2.07.	  	Grant of Security Interest	  	8
	Section 2.08.	  	Further Action Evidencing Assignments	  	9
	Section 2.09.	  	Assignment of Agreement	  	10
	Section 2.10.	  	Conveyance of the Subsequent Mortgage Loans	  	10
			
		  	 ARTICLE III
 REPRESENTATIONS, WARRANTIES AND COVENANTS
	  	
			
	Section 3.01.	  	Representations, Warranties and Covenants of the Servicer	  	13
	Section 3.02.	  	Representations, Warranties and Covenants of the Sponsor	  	15
	Section 3.03.	  	[Reserved]	  	16
	Section 3.04.	  	Representations, Warranties and Covenants of the Indenture Trustee	  	16
	Section 3.05.	  	Covenants and Representations of the Sponsor and Servicer Regarding Prepayment Charges	  	17
	Section 3.06.	  	Representations, Warranties and Covenants of the Depositor	  	18
			
		  	 ARTICLE IV
 THE MORTGAGE LOANS
	  	
			
	Section 4.01.	  	Representations and Warranties Concerning the Mortgage Loans	  	19
	Section 4.02.	  	Purchase and Substitution	  	28
			
		  	 ARTICLE V
 ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS
	  	
			
	Section 5.01.	  	The Servicer	  	30
	Section 5.02.	  	Collection of Certain Mortgage Loan Payments; Collection Account	  	33

  

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	Section 5.03.	  	Permitted Withdrawals from the Collection Account	  	34
	Section 5.04.	  	Hazard Insurance Policies; Property Protection Expenses	  	35
	Section 5.05.	  	Assumption and Modification Agreements	  	36
	Section 5.06.	  	Realization Upon Defaulted Mortgage Loans	  	37
	Section 5.07.	  	Indenture Trustee to Cooperate	  	38
	Section 5.08.	  	Servicing Compensation; Payment of Certain Expenses by Servicer	  	39
	Section 5.09.	  	Annual Statement as to Compliance	  	39
	Section 5.10.	  	Assessments of Compliance and Attestation Reports	  	40
	Section 5.11.	  	Reports Filed with Securities and Exchange Commission	  	41
	Section 5.12.	  	Access to Certain Documentation	  	46
	Section 5.13.	  	Maintenance of Fidelity Bond	  	46
	Section 5.14.	  	Subservicing Agreements Between the Servicer and Subservicer and Subservicers	  	46
	Section 5.15.	  	Reports to the Indenture Trustee; Collection Account Statements	  	47
	Section 5.16.	  	Optional Purchase of Defaulted Mortgage Loans	  	48
	Section 5.17.	  	Reports to be Provided by the Servicer	  	48
	Section 5.18.	  	[Reserved]	  	50
	Section 5.19.	  	Delinquency Advances	  	50
	Section 5.20.	  	Indemnification; Third Party Claims	  	50
	Section 5.21.	  	Maintenance of Corporate Existence and Licenses; Merger or Consolidation of the Servicer	  	51
	Section 5.22.	  	Assignment of Agreement by Servicer; Servicer Not to Resign	  	51
	Section 5.23.	  	[Reserved]	  	51
	Section 5.24.	  	Administrative Duties	  	51
	Section 5.25.	  	Advance Facility	  	52
			
		  	 ARTICLE VI
 APPLICATION OF FUNDS
	  	
			
	Section 6.01.	  	Deposits to the Payment Account	  	55
	Section 6.02.	  	Collection of Money	  	55
	Section 6.03.	  	Application of Principal and Interest	  	55
	Section 6.04.	  	[Reserved	  	55
	Section 6.05.	  	Compensating Interest	  	55
			
		  	 ARTICLE VII
 SERVICER DEFAULT
	  	
			
	Section 7.01.	  	Servicer Events of Default	  	55
	Section 7.02.	  	Indenture Trustee to Act: Appointment of Successor	  	58
	Section 7.03.	  	Waiver of Defaults	  	61
			
		  	 ARTICLE VIII
 TERMINATION
	  	
			
	Section 8.01.	  	Termination	  	61
	Section 8.02.	  	Additional Termination Requirements	  	62
	Section 8.03.	  	Accounting Upon Termination of Servicer	  	62

  

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		  	 ARTICLE IX
 [RESERVED]
	  	
			
		  	 ARTICLE X
 MISCELLANEOUS PROVISIONS
	  	
			
	Section 10.01.	  	Limitation on Liability	  	63
	Section 10.02.	  	Acts of Noteholders	  	63
	Section 10.03.	  	Amendment	  	64
	Section 10.04.	  	Recordation of Agreement	  	65
	Section 10.05.	  	Duration of Agreement	  	65
	Section 10.06.	  	Notices	  	65
	Section 10.07.	  	Severability of Provisions	  	66
	Section 10.08.	  	No Partnership	  	66
	Section 10.09.	  	Counterparts	  	66
	Section 10.10.	  	Successors and Assigns	  	66
	Section 10.11.	  	Headings	  	66
	Section 10.12.	  	No Petition	  	66
	Section 10.13.	  	Third Party Beneficiary	  	66
	Section 10.14.	  	Intent of the Parties	  	66
	Section 10.15.	  	Compliance With Regulation AB	  	67
	Section 10.16.	  	GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL	  	67
			
	Schedule I	  	Mortgage Loan Schedule	  	
	Appendix I	  	Defined Terms	  	
			
		  	EXHIBITS	  	
			
	Exhibit A	  	Contents of the Mortgage File	  	
	Exhibit B	  	Reserved	  	
	Exhibit C	  	Indenture Trustee’s Acknowledgement of Receipt	  	
	Exhibit D	  	Initial Certification of Indenture Trustee	  	
	Exhibit E	  	Final Certification of Indenture Trustee	  	
	Exhibit F	  	Request for Release of Documents	  	
	Exhibit G	  	AHL Officer’s Certificate	  	
	Exhibit H	  	Servicing Criteria to be Addressed in Assessment of Compliance	  	
	Exhibit I	  	Form 10-D, Form 8-K and Form 10-K Reporting Responsibility	  	
	Exhibit J-1	  	Form of Certification to Be Provided by the Depositor with Form 10-K	  	
	Exhibit J-2	  	Form of Certification to Be Provided to the Depositor by the Indenture Trustee	  	
	Exhibit K	  	Form of Officer’s Certificate Regarding Annual Statement of Compliance	  	
	Exhibit L	  	Form of Addition Notice	  	
	Exhibit M	  	Depositor’s Subsequent Transfer Instrument	  	
	Exhibit N	  	Form of Additional Disclosure Notification	  	

  

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 SALE AND SERVICING AGREEMENT, dated as of June 1, 2006 (this “Agreement”), by and
among ACCREDITED MORTGAGE LOAN REIT TRUST, a Maryland real estate investment trust, as depositor (the “Depositor”), ACCREDITED HOME LENDERS, INC., a California corporation, as sponsor (the “Sponsor”), ACCREDITED
MORTGAGE LOAN TRUST 2006-2, a Delaware statutory trust, as issuing entity (the “Issuing Entity”), ACCREDITED HOME LENDERS, INC., a California corporation, as servicer (the “Servicer”), and DEUTSCHE BANK NATIONAL
TRUST COMPANY, a national banking association, as indenture trustee (the “Indenture Trustee”). 
 W I T N E S S E T H

 WHEREAS, the Sponsor has contributed the mortgage loans (the “Closing Date Mortgage Loans”) listed on Schedule I to this
Agreement to the Depositor, pursuant to the Contribution Agreements and Assignments, dated June 7, 2006, June 15, 2006, June 27, 2006 and June 28, 2006, between the Sponsor and the Depositor, (the “Contribution
Agreements”); 
 WHEREAS, the Depositor desires to sell to the Issuing Entity, and the Issuing Entity desires to purchase from the
Depositor, the Closing Date Mortgage Loans; 
 WHEREAS, immediately after such purchase, the Issuing Entity will pledge such Closing Date
Mortgage Loans to the Indenture Trustee pursuant to the terms of an Indenture, dated as of June 1, 2006 (the “Indenture”), between the Issuing Entity and the Indenture Trustee, and issue the Accredited Mortgage Loan Trust
2006-2, Asset-Backed Notes (the “Notes”); 
 WHEREAS, the Servicer has agreed to service the Mortgage Loans, which
constitute the principal assets of the Trust; 
 WHEREAS, the Indenture Trustee will hold the Mortgage Loans and certain other assets pledged
to the Indenture Trustee pursuant to the Indenture; 
 WHEREAS, the Issuing Entity will enter into an interest rate swap agreement with the
Swap Provider where the Issuing Entity agrees to pay certain fixed-rate amounts to the Swap Provider and the Swap Provider agrees to pay certain floating-rate amounts to the Trust; and 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the Depositor, the Sponsor, the Issuing Entity, the Servicer
and the Indenture Trustee hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.01. Certain Defined Terms. Capitalized terms
used herein but not defined herein shall have the meanings ascribed to such terms in Appendix I attached hereto. 
  

 1 

 Section 1.02. Provisions of General Application. 
 (a) The terms defined herein and in Appendix I to the Indenture include the plural as well as the singular. 
 (b) The words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole.
Unless otherwise noted, all references to Articles and Sections shall be deemed to refer to Articles and Sections of this Agreement. 
 (c)
Any reference to statutes are to be construed as including all statutory provisions consolidating, amending or replacing the statute to which reference is made and all regulations promulgated pursuant to such statutes. 
 (d) All calculations of interest with respect to the LIBOR Notes provided for herein shall be on the basis of a 360-day year and the actual number of
days elapsed in the related Interest Accrual Period. All calculations of interest with respect to any Mortgage Loan provided for herein shall be made in accordance with the terms of the related Mortgage Note and Mortgage or, if such documents do not
specify the basis upon which interest accrues thereon, on the basis of a 360 day year consisting of twelve 30-day months, to the extent permitted by applicable law. 
 (e) Any Mortgage Loan payment is deemed to be received on the date such payment is actually received by the Servicer; provided, however, that, for purposes of calculating payments on the Notes,
prepayments with respect to any Mortgage Loan are deemed to be received on the date they are applied in accordance with Accepted Servicing Practices consistent with the terms of the related Mortgage Note and Mortgage to reduce the outstanding
Principal Balance of such Mortgage Loan on which interest accrues. 
 ARTICLE II 
 SALE AND CONVEYANCE OF THE MORTGAGE LOANS 
 Section 2.01. Purchase and Sale of the Closing Date Mortgage Loans; Deposit of Derivatives. 
 (a) The Sponsor hereby
directs the Depositor to sell, transfer, assign, set over and convey, and the Depositor does hereby sell, transfer, assign, set over and convey to the Issuing Entity, in each case without recourse, but subject to the terms and provisions of this
Agreement, all of the right, title and interest of the Depositor in and to the Closing Date Mortgage Loans, including the Cut-Off Date Principal Balance of, and interest due on, such Closing Date Mortgage Loans listed on Schedule I attached hereto,
and all other assets included or to be included in the Trust Estate (other than the Swap Agreement, which is being entered into directly by the Issuing Entity). The sale of the Closing Date Mortgage Loans will take place on the Closing Date, subject
to and simultaneously with the deposit of the Closing Date Mortgage Loans and the Original Pre-Funded Amount and the Capitalized Interest Account into the Trust Estate, the authentication of the Notes by the Indenture Trustee and the sale of the
Notes pursuant to the Underwriting Agreement. 
  

 2 

 (b) The Depositor may cause the deposit of derivatives at any time into the Accredited Mortgage Loan
Trust 2006-2 and any such deposited derivatives shall become part of the Trust Estate. 
 (c) The parties hereto understand and agree that it
is not intended that any Mortgage Loan be included in the Issuing Entity that is a “High-Cost Home Loan” as defined by HOEPA or any other applicable predatory or abusive lending laws. 
 Section 2.02. Reserved. 
 Section 2.03. Purchase Price. On the Closing Date, as full consideration for the Depositor’s sale of the Closing Date Mortgage Loans to the Issuing Entity, the Underwriters, on behalf of the Issuing Entity, will deliver to,
or at the direction of, the Depositor an amount in cash equal to $1,394,265,880.00. Additionally, the Depositor will receive the Certificates issued by the Issuing Entity pursuant to the Trust Agreement. 
 Section 2.04. Possession of Mortgage Files; Access to Mortgage Files. 
 (a) Upon the receipt by the Depositor, or its designee, of the purchase price for the Closing Date Mortgage Loans set forth in Section 2.03 hereof,
the ownership of each Mortgage Note, each Mortgage and the contents of the Mortgage File related to each Closing Date Mortgage Loan will be vested in the Issuing Entity, and will be pledged to the Indenture Trustee, for the benefit of the
Noteholders. 
 (b) Pursuant to Section 2.05 hereof, the Depositor has delivered, or caused to be delivered the Indenture Trustee’s
Mortgage File related to each Closing Date Mortgage Loan to the Indenture Trustee. 
 (c) The Indenture Trustee will hold the Indenture
Trustee’s Mortgage Files in trust pursuant to the terms of the Indenture for the benefit of all present and future Noteholders and the Swap Provider. 
 (d) Consistent with the terms of the Indenture, the Indenture Trustee shall afford the Depositor, the Sponsor, the Issuing Entity and the Servicer reasonable access to all records and documentation regarding the
Mortgage Loans relating to this Agreement, such access being afforded at customary charges, upon reasonable prior written request and during normal business hours at the offices of the Indenture Trustee. 
 (e) No later than the fifth Business Day of each fourth month, commencing in October 2006, the Indenture Trustee shall deliver to the Servicer a report
dated as of the first day of such month, identifying those Mortgage Loans for which it has not yet received (i) an original recorded Mortgage or a copy thereof certified to be true and correct by the public recording office in possession of
such Mortgage or (ii) in the event that Assignments of Mortgage are required to be recorded in accordance with the provisions of Section 2.05, an original recorded Assignment of Mortgage to the Indenture Trustee and any required
intervening Assignments of Mortgage or a copy thereof certified to be a true and correct copy by the public recording office in possession of such Assignment of Mortgage. 
  

 3 

 Section 2.05. Delivery of Mortgage Loan Documents. (a) In connection with the transfer
and assignment of the Mortgage Loans, the Depositor shall, on or before the Closing Date, in the case of a Closing Date Mortgage Loan and two business days prior to the related Subsequent Transfer Date in the case of a Subsequent Mortgage Loan,
deliver, or cause to be delivered, to the Indenture Trustee (as pledgee of the Issuing Entity pursuant to the Indenture), the following documents or instruments constituting the Indenture Trustee’s Mortgage File with respect to each Mortgage
Loan so transferred or assigned: 
 (i) the original Mortgage Note, endorsed without recourse in blank or to “Deutsche
Bank National Trust Company, as Indenture Trustee under the Indenture dated as of June 1, 2006, Accredited Mortgage Loan Trust 2006-2” by the Sponsor, including all intervening endorsements showing a complete chain of endorsement;

 (ii) the related original Mortgage with evidence of recording indicated thereon or a copy thereof certified by the
applicable recording office and if the Mortgage Loan is registered on the MERS System, such Mortgage or an assignment of the mortgage shall reflect MERS as the mortgagee of record and shall include the MIN for such Mortgage Loan; 
 (iii) each intervening mortgage assignment, with evidence of recording indicated thereon or if the original is not available, a copy
thereof certified by the applicable recording office, if any, showing a complete chain of assignment from the originator of the related Mortgage Loan to the Sponsor (or to MERS, if the Mortgage Loan is registered on the MERS System), and noting the
presence of a MIN (if the Mortgage Loan is registered on the MERS System), which assignment may, at the Sponsor’s option, be combined with the assignment referred to in subpart (iv) hereof, in which case it must be in recordable form, but
need not have been previously recorded); 
 (iv) unless the Mortgage Loan is registered on the MERS System, a mortgage
assignment in recordable form (which, if acceptable for recording in the relevant jurisdiction as evidenced by an Opinion of Counsel addressed to the Indenture Trustee, may be included in a blanket assignment or assignments) of each Mortgage from
the Sponsor to the Indenture Trustee; 
 (v) originals of all assumption, modification and substitution agreements in those
instances where the terms or provisions of a Mortgage or Mortgage Note have been modified or such Mortgage or Mortgage Note has been assumed (if any); and 
 (vi) an original title insurance policy or title opinion (or (A) a copy of the title insurance policy or title opinion, or (B) the related binder, commitment or preliminary report, or copy thereof in which
case the Sponsor hereby certifies that the original Mortgage has been delivered to the title insurance company that issued such binder, commitment or preliminary report). 
  

 4 

 In instances where the original recorded Mortgage or any intervening mortgage assignment or a completed
assignment of the Mortgage in recordable form cannot be delivered by the Sponsor to the Indenture Trustee prior to or concurrently with the execution and delivery of this Agreement due to a delay in connection with recording, the Sponsor may:

 (x) in lieu of delivering such original recorded Mortgage or intervening mortgage assignment, deliver to the Indenture
Trustee, a copy thereof and the Sponsor hereby certifies that the original Mortgage has been delivered to a title insurance company for recordation after receipt of its policy of title insurance or the related binder, commitment or preliminary
report thereof; and 
 (y) with respect to clause (iv) above, in lieu of delivering the completed assignment in
recordable form, deliver to the Indenture Trustee, the assignment in recordable form, otherwise complete except for recording information. 
 The Indenture
Trustee is hereby authorized and directed, upon an Event of Default and subject to subsection (b) below, with respect to each assignment described in Section 2.05(a)(iv) hereof, to endorse such assignment as follows: “Deutsche Bank
National Trust Company, as Indenture Trustee under the Indenture dated as of June 1, 2006, Accredited Mortgage Loan Trust 2006-2.” 
 (b) As promptly as practicable, but in any event within thirty (30) days from the Closing Date or the relevant Subsequent Transfer Date, as applicable, the Sponsor shall promptly submit, or cause to be submitted for recording in the
appropriate public office for real property records, each assignment referred to in Section 2.05(a)(iv); provided, that the Sponsor need not cause to be recorded any assignment which (i) is registered on the MERS System, or
(ii) relates to a Mortgage Loan in any jurisdiction under the laws of which, as evidenced by an Opinion of Counsel delivered by the Sponsor (at the Sponsor’s expense) to the Indenture Trustee, acceptable to the Rating Agencies, the
recordation of such assignment is not necessary to protect the Indenture Trustee’s, the Noteholders’, the Swap Provider’s and the Certificates’ interest in the related Mortgage Loan. The Indenture Trustee, shall retain a copy of
each assignment submitted for recording. In the event that any such assignment is lost or returned unrecorded because of a defect therein, the Sponsor shall promptly prepare a substitute assignment or cure such defect, as the case may be, and
thereafter the Sponsor shall submit each such assignment for recording. The costs relating to the delivery and recordation of the documents in connection with the Mortgage Loans as specified in this Article II shall be borne by the Sponsor. With
respect to Mortgage Loans (i) not registered on the MERS System, or (ii) not covered by an Opinion of Counsel described in this section 2.05(b) to the extent that assignments of mortgage have not been recorded within one year after the
Closing Date or the relevant Subsequent Transfer Date, as applicable, the Depositor shall, and if the Depositor fails to, then the Sponsor shall be obligated to repurchase such Mortgage Loans in accordance with the provisions of Section 4.02.

 In connection with the assignment of any Mortgage Loan registered on the MERS System, promptly after the Closing Date or the relevant
Subsequent Transfer Date, as applicable, the Sponsor will cause, at its own expense, the MERS System to indicate that such Mortgage Loan has been assigned to the Indenture Trustee for the benefit of the Noteholders by entering (a) the Indenture
Trustee’s Org ID in the “Investor” field which identifies the Indenture Trustee and (b) in the “Pool” field a code which identifies the securitization serial number of the Notes issued in connection with such Mortgage
Loans. The Sponsor and the Servicer will not alter the 

  

 5 

 
entries referenced in this paragraph with respect to any such Mortgage Loan during the term of this Agreement unless and until such Mortgage Loan is
repurchased or otherwise in accordance with the terms of this Agreement. 
 (c) The Sponsor shall, within five (5) Business Days after
the receipt thereof, deliver, or cause to be delivered, to the Indenture Trustee: (i) the original recorded Mortgage and related power of attorney, if any, in those instances where a copy thereof certified by the Sponsor was delivered to the
Indenture Trustee; (ii) the original recorded assignment of Mortgage from the last endorsee to the Indenture Trustee, which, together with any intervening assignments of Mortgage, evidences a complete chain of assignment from the originator of
the Mortgage Loan to the Indenture Trustee, in those instances where copies of such assignments certified by the Sponsor were delivered to the Indenture Trustee; and (iii) the title insurance policy or title opinion required in
Section 2.05(a)(vi). 
 Notwithstanding anything to the contrary contained in this Section 2.05, in those instances where the
public recording office retains the original Mortgage, power of attorney, if any, assignment or assignment of Mortgage after it has been recorded or such original has been lost, the Sponsor shall be deemed to have satisfied its obligations hereunder
upon delivery to the Indenture Trustee, of a copy of such Mortgage, power of attorney, if any, assignment or assignment of Mortgage certified by the public recording office to be a true copy of the recorded original thereof. 
 From time to time the Sponsor may forward, or cause to be forwarded, to the Indenture Trustee, additional original documents evidencing any assumption or
modification of a Mortgage Loan. 
 (d) All original documents relating to the Mortgage Loans that are not required to be delivered to the
Indenture Trustee, pursuant to Section 2.05(a) hereof are, and shall be, held by the Servicer, the Sponsor or the Depositor, as the case may be, in trust for the benefit of the Indenture Trustee, on behalf of the Noteholders and the Swap
Provider. In the event that any such original document is required pursuant to the terms of this Section 2.05 to be a part of an Indenture Trustee’s Mortgage File, such document shall be delivered promptly to the Indenture Trustee. From
and after the sale of the Mortgage Loans to the Issuing Entity pursuant hereto, to the extent that the last assignee thereof retains title of record to any Mortgage Loans prior to the vesting of legal title in the Issuing Entity, such title shall be
retained in trust for the Issuing Entity as the owner of the Mortgage Loans, and the Indenture Trustee, as the pledgee of the Issuing Entity under the Indenture. In acting as custodian of any original document which is part of the Indenture
Trustee’s Mortgage Files, the Servicer agrees further that it does not and will not have or assert any beneficial ownership interest in the related Mortgage Loans or the Mortgage Files. Promptly upon the Servicer’s receipt of any such
original document, the Servicer, on behalf of the Issuing Entity, shall mark conspicuously each such original document, and its master data processing records with a legend evidencing that the Issuing Entity has purchased the related Mortgage Loan
and all right and title thereto and interest therein, and pledged such Mortgage Loan and all right and title thereto and interest therein to the Indenture Trustee, on behalf of the Noteholders and the Swap Provider. 
  

 6 

 Section 2.06. Acceptance of the Trust Estate; Certain Substitutions; Certification by the Indenture
Trustee. (a) The Indenture Trustee is authorized and directed to, and agrees to, do the following: 
 (i) execute and
deliver to the Depositor, the Sponsor and the Servicer, on or prior to the Closing Date with respect to each Closing Date Mortgage Loan transferred on such date, an acknowledgement of receipt, in the form attached as Exhibit C hereto, of the
original Mortgage Note as required to be included in the Indenture Trustee’s Mortgage File (with any exceptions noted) and declares that it will hold such documents and any amendments, replacements or supplements thereto, as well as any other
assets included in the definition of Trust Estate and delivered to the Indenture Trustee, subject to the conditions set forth in the Indenture, for the benefit of the Noteholders. 
 (ii) to review (or cause to be reviewed) each Indenture Trustee’s Mortgage File within sixty (60) days after the Closing Date
(or, with respect to any Qualified Substitute Mortgage Loans, within sixty (60) days after receipt thereof), and to deliver to the Servicer, the Depositor and the Sponsor a certification, in the form attached hereto as Exhibit D, to the
effect that, except as otherwise noted, as to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified in such certification as not covered by such
certification), (i) all documents specified in Section 2.05(a)(i)-(iv) and (vi) are in its possession, (ii) each such document has been reviewed by it and appears, on its face, not to have been mutilated, damaged, torn or
otherwise physically altered (handwritten additions, changes or corrections shall not constitute physical alteration if they reasonably appear to have been initialed), appears regular on its face and relates to such Mortgage Loan, and
(iii) based on its examination and only as to the foregoing documents, the information set forth on the Mortgage Loan Schedule with respect to items (i), (ii) (with respect to property address only, excluding zip code), (iii) and
(vi) of the definition of “Mortgage Loan Schedule” accurately reflects the information set forth in the Indenture Trustee’s Mortgage File delivered on such date; provided however, no certification of the Indenture Trustee
shall constitute a determination by the Indenture Trustee of the proper form, adequacy or enforceability of any document included in the Indenture Trustee’s Mortgage File. 
 (iii) to review (or cause to be reviewed) each Indenture Trustee’s Mortgage File within one hundred eighty (180) days after the
Closing Date (or, with respect to any Qualified Substitute Mortgage Loans, within one hundred eighty (180) days after receipt thereof), and to deliver to the Servicer and the Sponsor a certification in the form attached hereto as Exhibit
E to the effect that, except as otherwise noted, as to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified in such certification as not covered
by such certification), (i) all documents specified in Section 2.05(a)(i)-(iv) and (vi) are in its possession, (ii) each such document has been reviewed by it and has not been mutilated, damaged, torn or otherwise physically
altered (handwritten additions, changes or corrections shall not constitute physical alteration if they reasonably appear to be initialed by the Mortgagor), appears regular on its face and 

  

 7 

 
relates to such Mortgage Loan, and (iii) based on its examination and only as to the foregoing documents, the information set forth in items (i),
(ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of “Mortgage Loan Schedule” accurately reflects the information set forth in the Indenture Trustee’s Mortgage File
delivered on such date. 
 In performing any such review, the Indenture Trustee may conclusively rely on the Sponsor as to the purported
genuineness of any such document and any signature thereon. It is understood that the scope of the Indenture Trustee’s review of the Indenture Trustee’s Mortgage Files is limited solely to confirming that the documents listed in
Section 2.05 have been executed and received and relate to the Indenture Trustee’s Mortgage Files identified in the related Mortgage Loan Schedule. The Indenture Trustee shall be under no duty or obligation to inspect, review or examine
any such documents, instruments, certificates or other papers to determine that they are genuine, enforceable, or appropriate for the represented purpose or that they are other than what they purport to be on their face. 
 (b) If the Indenture Trustee during the process of reviewing the Indenture Trustee’s Mortgage Files finds any document constituting a part of a
Indenture Trustee’s Mortgage File which is not executed, has not been received, is unrelated to the Mortgage Loan identified in the related Mortgage Loan Schedule, or does not conform to the requirements of Section 2.05 or the description
thereof as set forth in the related Mortgage Loan Schedule, the Indenture Trustee shall promptly so notify the Servicer and the Sponsor. Upon receipt of such notice respecting such defect, the Depositor and the Sponsor shall have a sixty
(60) day period after such notice within which to correct or cure any such defect, or if the Servicer determines that the defect materially and adversely affects the value of the related Mortgage Loan or the interest of the Noteholders in the
related Mortgage Loan, to either (i) substitute in lieu of such Mortgage Loan a Qualified Substitute Mortgage Loan in the manner and subject to the conditions set forth in this Section 2.06 or (ii) purchase such Mortgage Loan at a
purchase price equal to the Loan Repurchase Price. Upon receipt by the Indenture Trustee of two copies of a certification, in the form attached hereto as Exhibit F, of a Servicing Officer of such substitution or purchase and, in the case of a
substitution, upon receipt by the Indenture Trustee, of the related Indenture Trustee’s Mortgage File, and the deposit of the Loan Repurchase Price, in the case of a purchase, or the Substitution Adjustment, if any, in connection with a
substitution, in the Collection Account, the Indenture Trustee shall release to the Servicer for release to the Depositor or the Sponsor, as applicable, the related Indenture Trustee’s Mortgage File and the Indenture Trustee shall execute,
without recourse, and deliver such instruments of transfer furnished by the Depositor or the Sponsor as may be necessary to transfer such Mortgage Loan to the Depositor or the Sponsor, as applicable. 
 Section 2.07. Grant of Security Interest. (a) It is intended that the conveyance of the Mortgage Loans and other property by the
Depositor to the Issuing Entity as provided in this Article II be, and be construed for all purposes other than tax and accounting purposes as, a sale of the Mortgage Loans and such other property by the Depositor to the Issuing Entity. It is, for
all purposes other than tax and accounting purposes further, not intended that such conveyance be deemed a pledge of the Mortgage Loans or such other property by the Depositor to the Issuing Entity to secure a debt or other obligation of the
Depositor. However, in the event that the Mortgage Loans or any of such other property are held to be property of the Depositor, or if for 

  

 8 

 
any reason this Agreement is held or deemed to create a security interest in the Mortgage Loans or any of such other property, then it is intended that:
(i) this Agreement shall also be deemed to be a security agreement within the meaning of the Uniform Commercial Code; (ii) the conveyance provided for in this Article II shall be deemed to be a grant by the Depositor to the Issuing Entity
of a security interest in all of the Depositor’s right, title and interest in and to the Mortgage Loans and such other property and all amounts payable to the holders of the Mortgage Loans in accordance with the terms thereof and 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 Accounts whether in the form of cash,
instruments, securities or other property; (iii) the possession by the Indenture Trustee, of the Mortgage Notes and such other items of property as constitute instruments, money, negotiable documents or chattel paper shall be deemed to be
“possession by the secured party” for purposes of perfecting the security interest pursuant to the Uniform Commercial Code; and (iv) 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 financial intermediaries, bailees or agents, as applicable, of the Indenture Trustee for the purpose of perfecting such security
interest under applicable law. The Depositor, the Sponsor, the Servicer, on behalf of the Issuing Entity and the Indenture Trustee, shall, to the extent consistent with this Agreement, take such actions as may be reasonably necessary to ensure that,
if this Agreement were deemed to create a security interest in the Mortgage Loans or any of such other property, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained
as such throughout the term of this Agreement. 
 (b) The Depositor, the Sponsor and the Servicer shall take no action inconsistent with the
Issuing Entity’s ownership of the Trust Estate and each shall indicate or shall cause to be indicated in its records and records held on its behalf that ownership of each Mortgage Loan and the other assets in the Trust Estate is vested in the
Issuing Entity, as owner, and is pledged to the Indenture Trustee, for the benefit of the Noteholders and the Swap Provider pursuant to the terms of the Indenture. The Indenture Trustee is authorized to act, pursuant to the terms of this Agreement
for the benefit of the Noteholders and shall be authorized to act at the direction of such parties. In addition, the Depositor, the Sponsor and the Servicer shall respond to any inquiries from third parties with respect to ownership of a Mortgage
Loan or any other asset in the Trust Estate by stating that it is not the owner of such asset and that the Issuing Entity is the owner of such Mortgage Loan or other asset in the Trust Estate, which is pledged to the Indenture Trustee, for the
benefit of the Noteholders and the Swap Provider. 
 Section 2.08. Further Action Evidencing Assignments. (a) The Servicer
agrees that, from time to time, at its expense, it shall cause the Sponsor or Depositor, as the case may be, to, and each of the Sponsor and Depositor agree that it shall, promptly execute and deliver all further instruments and documents, and take
all further action, that may be necessary or appropriate, or that the Servicer or the Indenture Trustee may reasonably request, in order to perfect, protect or more fully evidence the transfer of ownership of the Mortgage Loans and other assets in
the Trust Estate or to enable the Indenture Trustee, to exercise or enforce any of its rights hereunder. Without limiting the generality of the foregoing, the Servicer, the Sponsor and the Depositor shall, upon the request of the Servicer or the
Indenture Trustee execute and file (or cause to be executed and filed) such real estate filings, financing or continuation statements, or amendments thereto or assignments thereof, and such other instruments or notices, as may be necessary or
appropriate. 
  

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 (b) Each of the Sponsor and the Depositor hereby grants to the Servicer and the Indenture Trustee powers
of attorney to execute all documents on its behalf under this Agreement as may be necessary or desirable to effectuate the foregoing. 
 Section 2.09. Assignment of Agreement. The Sponsor, the Depositor and the Servicer hereby acknowledge and agree that the Issuing Entity may assign its interest under this Agreement to the Indenture Trustee, for the benefit of
the Noteholders and the Swap Provider, as may be required to effect the purposes of the Indenture, without further notice to, or consent of, the Sponsor or the Servicer, and the Indenture Trustee shall succeed to such of the rights of the Issuing
Entity hereunder as shall be so assigned. The Issuing Entity shall, pursuant to the Indenture, assign all of its right, title and interest in and to the Mortgage Loans and its right to exercise the remedies created by Section 4.02 of this
Agreement for breaches of the representations, warranties, agreements and covenants of the Sponsor contained in Sections 3.02 and 4.01 of this Agreement, assign such right, title and interest to the Indenture Trustee, for the benefit of the
Noteholders and the Swap Provider. The Sponsor agrees that, upon such assignment to the Indenture Trustee, such representations, warranties, agreements and covenants will run to and be for the benefit of the Indenture Trustee and the Indenture
Trustee may enforce, without joinder of the Sponsor or the Issuing Entity, the repurchase obligations of the Sponsor set forth herein with respect to breaches of such representations, warranties, agreements and covenants. 
 Section 2.10. Conveyance of the Subsequent Mortgage Loans. 
 (a) Subject to the conditions set forth in paragraph (b) below in consideration of the Issuing Entity’s delivery on the related Subsequent Transfer Dates of all or a portion of the balance of funds in the
Pre-Funding Account, the Depositor, shall then sell, transfer, assign, set over and convey, without recourse, to the Issuing Entity, but subject to the other terms and provisions of this Sale and Servicing Agreement, all of the right, title and
interest of the Depositor in and to (i) the Subsequent Mortgage Loans identified on the related Mortgage Loan Schedule attached to the related Subsequent Transfer Instrument delivered by the Depositor on such Subsequent Transfer Date,
(ii) principal due and interest accruing on the Subsequent Mortgage Loans after the related Subsequent Cut-off Date and (i) with respect to such Subsequent Mortgage Loans all items to be delivered pursuant to Section 2.05 above and
the other items in the related Mortgage Files; provided, however, that the Depositor reserves and retains all right, title and interest in and to principal received and interest accruing on the Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer by the Depositor to the Issuing Entity, of the Subsequent Mortgage Loans identified on each Mortgage Loan Schedule attached to the related Subsequent Transfer Instrument shall be absolute and is intended by the
Issuing Entity, the Depositor and the Sponsor to constitute and to be treated as a sale of the Subsequent Mortgage Loans by the Depositor to the Issuing Entity. 
 In the event such transactions shall be deemed not to be a sale, the Depositor hereby grants to the Issuing Entity as of each Subsequent Transfer Date a security interest in all of the Depositor’s right, title
and interest in, to and under the related Subsequent Mortgage Loans and 

  

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such other property, to secure all of the Depositor’s obligations hereunder, and this Sale and Servicing Agreement shall constitute a security agreement
under applicable law, and in such event, the parties hereto acknowledge that the Indenture Trustee holds the Subsequent Mortgage Loans as designee of the Issuing Entity. The Depositor agrees to take or cause to be taken such actions and to execute
such documents, including without limitation, the filing of all necessary UCC-1 financing statements filed in the State of Maryland (which shall be submitted for filing as of the related Subsequent Transfer Date), any continuation statements with
respect thereto and any amendments thereto required to reflect a change in the name or corporate structure of the Depositor or the filing of any additional UCC-1 financing statements due to a change in the state of incorporation of the Depositor as
are necessary to perfect and protect the interests of the Issuing Entity and its assignees in Subsequent Mortgage Loans. 
 The related
Mortgage File for each Subsequent Mortgage Loan shall be delivered to the Indenture Trustee, prior to the related Subsequent Transfer Date. 
 The Indenture Trustee on each Subsequent Transfer Date shall acknowledge by signing receipt thereof its acceptance of all right, title and interest to the related Subsequent Mortgage Loans and other property, existing on the Subsequent
Transfer Date and thereafter created, conveyed to it pursuant to this Section 2.10. 
 The Indenture Trustee, as indenture trustee of
the Trust Estate, shall be entitled to all scheduled principal payments due after each Subsequent Cut-off Date, all other payments of principal due and collected after each related Subsequent Cut-off Date, and all payments of interest on the
Subsequent Mortgage Loans, minus that portion of any such payment which is allocable to the period prior to the related Subsequent Cut-off Date. No scheduled payments of principal due on or before the related Subsequent Cut-off Date and collected
after the related Subsequent Cut-off Date shall belong to the Trust Estate pursuant to the terms of this Sale and Servicing Agreement. 
 The
purchase price paid by the Indenture Trustee, at the direction of the Servicer and on behalf of the Indenture Trustee, from amounts released from the Pre-Funding Account shall be one-hundred percent (100%) of the aggregate Principal Balances of
the Subsequent Mortgage Loans so transferred (as identified on the Mortgage Loan Schedule attached to the related Subsequent Transfer Instrument provided by the Depositor). 
 (b) The Depositor shall transfer to the Issuing Entity, the Subsequent Mortgage Loans and the other property and rights related thereto described in
Section 2.10(a) above, and the Indenture Trustee shall cause to be released funds from the related Pre-Funding Account, only upon the satisfaction of each of the following conditions on or prior to the related Subsequent Transfer Date:

 (i) the Depositor shall have provided the Indenture Trustee, with a timely Addition Notice, which notice shall be given no
fewer than four Business Days prior to the related Subsequent Transfer Date and shall designate the Subsequent Mortgage Loans to be sold to the Issuing Entity and the aggregate Principal Balances of such Subsequent Mortgage Loans as of the related
Subsequent Cut-off Date and any other information reasonably requested by the Indenture Trustee with respect to the Subsequent Mortgage Loans; 
  

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 (ii) the Depositor shall have delivered to the Indenture Trustee, a duly executed
Subsequent Transfer Instrument substantially in the form of Exhibit M, as applicable, (A) confirming the satisfaction of each condition precedent and representations specified in this Section 2.10(b), Section 2.10(c) and in the
related Subsequent Transfer Instrument and (B) including a Mortgage Loan Schedule attached thereto listing the Subsequent Mortgage Loans; 
 (iii) as of each Subsequent Transfer Date, as evidenced by delivery of the Depositor’s Subsequent Transfer Instrument is the form of Exhibit M, neither the Sponsor nor the Depositor shall be insolvent or have
been made insolvent by such transfers, nor shall they be aware of any pending insolvency; 
 (iv) the Pre-Funding Period shall
not have terminated; and 
 (v) the Depositor shall have delivered to the Indenture Trustee, the Issuing Entity, the Sponsor
and the Rating Agencies Opinions of Counsel addressed to the Rating Agencies, the Indenture Trustee, the Issuing Entity and the Sponsor with respect to the transfers of the Subsequent Mortgage Loans substantially in the form of the Opinion of
Counsel delivered to the Indenture Trustee, the Issuing Entity, the Sponsor and the Rating Agencies on the Closing Date (1) regarding certain corporate matters and (2) confirming the existence of a true sale which may be contained in such
opinion delivered on the Closing Date. 
 (c) The obligation of the Issuing Entity to purchase a Subsequent Mortgage Loan on any Subsequent
Transfer Date is subject to the following conditions: (1) each such Subsequent Mortgage Loan shall satisfy the representations and warranties specified in the related Subsequent Transfer Instrument and this Sale and Servicing Agreement;
(2) the Depositor shall not select such Subsequent Mortgage Loans in a manner that it reasonably believes is adverse to the interests of the Majority Noteholders; (3) the Depositor shall have delivered certain Opinions of Counsel required
pursuant to Section 2.10(v) hereof; (4) as of the related Subsequent Cut-off Date, the Subsequent Mortgage Loans shall satisfy the following criteria: (i) none of the Subsequent Mortgage Loans shall be contractually delinquent as of
the related Subsequent Cut-off Date; (ii) the remaining stated term to maturity of each Subsequent Mortgage Loan shall not exceed 360 months; (iii) all of the Subsequent Mortgage Loans are secured by either a first lien or second lien on
the related Mortgaged Property; (iv) each Subsequent Mortgage Loan shall have an outstanding Principal Balance of at least $10,000; (v) each Subsequent Mortgage Loan shall be underwritten in accordance with the Underwriting Guidelines;
(vi) each Subsequent Mortgage Loan shall have a Loan-to-Value Ratio or a combined Loan-to-Value Ratio of no more than 100%; (vii) each Subsequent Mortgage Loan shall have a stated maturity of no later than October 2036; (viii) the
remaining stated term to maturity of the any subsequent mortgage loan will not exceed 360 months; (ix) the acquisition of any Subsequent Mortgage Loans will not result in a weighted average current Mortgage Rate of at least 7.780% per
annum; (x) the acquisition of any Subsequent Mortgage Loans will not result in a weighted average Original Loan-to-Value Ratio of not more than 79.00%; and (xi) the acquisition of any Subsequent Mortgage Loans will not result in a weighted
average Credit Score of less than 625. 
  

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 The acceptance of the Subsequent Mortgage Loans by the Issuing Entity is subject to the Depositor
receiving a written or verbal consent from each of the Rating Agencies that states that the addition of such Subsequent Mortgage Loans will not cause the Rating Agencies to downgrade any of their ratings on the Offered Notes. 
 Notwithstanding the foregoing, Subsequent Mortgage Loans with characteristics varying from those set forth above may be purchased by the Issuing Entity
and included in the Trust Estate, if (i) the Issuing Entity is provided with written confirmation that the aggregate credit risk of such Subsequent Mortgage Loans is similar to that of the Closing Date Mortgage Loans and (ii) the Depositor
receives and provides to the Issuing Entity a written consent from each of the Rating Agencies that states that the addition of such Subsequent Mortgage Loans will not cause the Rating Agencies to downgrade any of their ratings of the Offered Notes.

 (d) Within five Business Days after the end of the Pre-Funding Period, the Depositor shall deliver to the Rating Agencies, the Indenture
Trustee, the Issuing Entity and the Sponsor a copy of the updated Mortgage Loan Schedule including the Subsequent Mortgage Loans in electronic format. 
 ARTICLE III 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 Section 3.01. Representations, Warranties and Covenants of the Servicer. The Servicer hereby represents, warrants and covenants to the
Indenture Trustee, the Depositor, the Sponsor, the Issuing Entity, the Swap Provider and the Noteholders as of the Closing Date, as of each Subsequent Transfer Date and during the term of this Agreement that: 
 (a) The Servicer is duly organized, validly existing and in good standing under the laws of its state of incorporation and has the power to own its assets
and to transact the business in which it is currently engaged. The Servicer is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the character of the business transacted by it or properties
owned or leased by it or the performance of its obligations hereunder requires such qualification and in which the failure so to qualify could reasonably be expected to have a material adverse effect on the business, properties, assets, or condition
(financial or other) of the Servicer or the performance of its obligations hereunder. 
 (b) The Servicer has the power and authority to
make, execute, deliver and perform this Agreement and all of the transactions contemplated under this Agreement, and has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement, and assuming the
due authorization, execution and delivery hereof by the other parties hereto constitutes, or will constitute, the legal, valid and binding obligation of the Servicer, enforceable in accordance with its terms, except as enforcement of such terms may
be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding
in equity or at law). 
  

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 (c) The Servicer is not required to obtain the consent of any other party or any consent, license,
approval or authorization from, or registration or declaration with, any governmental authority, bureau or agency which consent already has not been obtained in connection with the execution, delivery, performance, validity or enforceability of this
Agreement, except such as have been obtained prior to the Closing Date. 
 (d) The execution, delivery and performance of this Agreement by
the Servicer will not violate any provision of any existing law or regulation or any order or decree of any court or the charter or bylaws of the Servicer, or constitute a breach of any mortgage, indenture, contract or other Agreement to which the
Servicer is a party or by which it may be bound. 
 (e) Except as set forth in the Prospectus Supplement under the heading “Risk
Factors,” there is no action, suit, proceeding or investigation pending or to Servicer’s knowledge threatened against the Servicer which, either in any one instance or in the aggregate, is, in the Servicer’s judgment, likely to
result in any material adverse change in the business, operations, financial condition, properties, or assets of the Servicer, or in any material impairment of the right or ability of the Servicer to carry on its business substantially as now
conducted, or in any material liability on the part of the Servicer, or which would draw into question the validity of this Agreement, the Notes, or the Closing Date Mortgage Loans or of any action taken or to be taken in connection with the
obligations of the Servicer contemplated herein or therein, or which would be likely to impair materially the ability of the Servicer to perform its obligations hereunder. 
 (f) Neither this Agreement nor any statement, report, or other document furnished by the Servicer pursuant to this Agreement or in connection with the
transactions contemplated hereby, including, without limitation, the sale or placement of the Notes, contains any untrue material statement of fact provided by or on behalf of the Servicer or omits to state a material fact necessary to make the
statements provided by or on behalf of the Servicer contained herein or therein not misleading. 
 (g) The Servicer does not believe, nor
does it have any reason or cause to believe, that it cannot perform each and every covenant contained in this Agreement. 
 (h) The Servicer
is not an “investment company” or a company “controlled by an investment company,” within the meaning of the Investment Company Act of 1940, as amended. 
 (i) The Servicer shall take all necessary steps to maintain the Indenture Trustee’s perfection and priority in the Mortgage Loans. 
 (j) The Servicer will fully furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information
(i.e., favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information Company (three of the credit repositories), on a monthly basis. 
  

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 (k) The 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, warranties and covenants set forth in this Section 3.01 shall survive the delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and inure to the benefit of the Indenture
Trustee. 
 Section 3.02. Representations, Warranties and Covenants of the Sponsor. The Sponsor hereby represents, warrants and
covenants to the Indenture Trustee, the Depositor, the Issuing Entity, the Swap Provider and the Servicer that as of the date of this Agreement or as of such date specifically provided herein, and as of each subsequent Transfer Date: 
 (a) The Sponsor is a corporation duly organized, validly existing and in good standing under the laws of the State of California. 
 (b) The Sponsor has the corporate power and authority to execute, deliver and perform, and to enter into and consummate the transactions contemplated by
this Agreement and each Sponsor’s Subsequent Transfer Instrument. 
 (c) This Agreement has been duly and validly authorized, executed
and delivered by the Sponsor, all requisite corporate action having been taken, and, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of
the Sponsor, enforceable against the Sponsor in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors
generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
 (d) No consent, approval, authorization or order of or registration or filing with, or notice to, any governmental authority or court is required for the execution, delivery and performance of or compliance by the Sponsor with this
Agreement or the consummation by the Sponsor of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date. 
 (e) None of the execution and delivery of this Agreement or of each Sponsor’s subsequent Transfer Instrument, the consummation of the transactions contemplated hereby or thereby, or the fulfillment of or
compliance with the terms and conditions of this Agreement, or of each Sponsor’s subsequent Transfer Instrument by the Sponsor (i) conflicts or will conflict with or results or will result in a breach of, or constitutes or will constitute
a default or results or will result in an acceleration under (A) the articles of incorporation or bylaws of the Sponsor, or (B) of any term, condition or provision of any material indenture, deed of trust, contract or other agreement or
instrument to which the Sponsor or any of its subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii) results or will result in a violation of any law, rule, regulation, order, judgment or decree applicable to the
Sponsor of any court or governmental authority having jurisdiction over the Sponsor or its subsidiaries; or (iii) results in the creation or imposition of any lien, charge or encumbrance which would have a material adverse effect upon the
Mortgage Loans or any documents or instruments evidencing or securing the Mortgage Loans. 
  

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 (f) Except as set forth in the Prospectus Supplement under the heading “Risk Factors,”
there are no actions, suits or proceedings before or against or investigations of, the Sponsor pending, or to the knowledge of the Sponsor, threatened, before any court, administrative agency or other tribunal, and no notice of any such action,
which, in the Sponsor’s reasonable judgment, might materially and adversely affect the performance by the Sponsor of its obligations under this Agreement, or the validity or enforceability of this Agreement. 
 (g) The Sponsor 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 that may materially and adversely affect its performance hereunder. 
 It is understood and agreed that the
representations, warranties and covenants set forth in this Section 3.02 may not be waived and shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the
Indenture Trustee. 
 Section 3.03. [Reserved.] 
 Section 3.04. Representations, Warranties and Covenants of the Indenture Trustee. The Indenture Trustee hereby represents, warrants and covenants to the Issuing Entity, the Swap Provider, the Servicer, the
Depositor and the Sponsor that as of the date of this Agreement and the subsequent Transfer Instruments or as of such date specifically provided herein: 
 (a) The Indenture Trustee is a national banking association duly organized, validly existing and in good standing under the laws of the United States of America; 
 (b) The Indenture Trustee has the requisite power and authority to execute, deliver and perform, and to enter into and consummate transactions
contemplated by this Agreement; 
 (c) This Agreement has been duly and validly authorized, executed and delivered by the Indenture Trustee,
all requisite action having been taken, and, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the Indenture Trustee, enforceable
against the Indenture Trustee in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by
general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law); 
 (d) No consent,
approval, authorization or order of or registration or filing with, or notice to, any governmental authority or court is required for the execution, delivery and performance of or compliance by the Indenture Trustee with this Agreement or the
consummation by the Indenture Trustee of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date; 
  

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 (e) None of the execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby or thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or results or will result in a breach of, or constitutes or will constitute a default or
results or will result in an acceleration under (A) the articles of association or bylaws of the Indenture Trustee, or (B) to the best of its knowledge, of any term, condition or provision of any material indenture, deed of trust, contract
or other agreement or instrument to which the Indenture Trustee is a party or by which it is bound; or (ii) results or will result in a violation of any statute, rule, regulation, order, judgment or decree applicable to the Indenture Trustee of
any court or governmental authority having jurisdiction over the Indenture Trustee or its subsidiaries which violation would materially and adversely affect the Indenture Trustee’s performance of its duties hereunder; and 
 (f) There are no actions, suits or proceedings before or against or investigations of, the Indenture Trustee, pending or to the knowledge of the
Indenture Trustee threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Indenture Trustee’s reasonable judgment, would materially and adversely affect the performance by the
Indenture Trustee of its obligations under this Agreement, or the validity or enforceability of this Agreement. 
 It is understood and
agreed that the representations, warranties and covenants set forth in this Section 3.04 shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee. 
 Section 3.05. Covenants and Representations of the Sponsor and Servicer Regarding Prepayment Charges. 
 (a) The Servicer covenants that it will not waive any Prepayment Charge or part of a Prepayment Charge unless in connection with a Mortgage Loan that is
in default or for which a default is reasonably foreseeable. 
 (b) The Sponsor hereby represents and warrants that the information set forth
in the Prepayment Charge Schedule is complete, true and correct in all material respects at the date or dates respecting which such information is furnished and each Prepayment Charge is permissible and enforceable in accordance with its terms
(except to the extent that the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally) under applicable law. 
 (c) Upon discovery by the Sponsor or the Indenture Trustee of a breach of the foregoing, the party discovering such breach shall give prompt written
notice to the other parties. Within 60 days of the earlier of discovery by the Servicer or receipt of notice by the Servicer of breach, the Servicer shall cure such breach in all material respects. If the covenant made by the Servicer in clause
(a) above is breached the Servicer must pay into the Collection Account the amount of the waived Prepayment Charge. If the representation made by the Sponsor in clause (b) above is breached, the Sponsor must pay into the Collection Account
the amount of the scheduled Prepayment Charge, less any amount previously collected and paid by the Servicer into the Collection Account. The foregoing obligations of the Servicer and the Sponsor shall be the sole and exclusive remedies for a breach
of this Section 3.05(a) or (b). 
  

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 Section 3.06. Representations, Warranties and Covenants of the Depositor. The Depositor
hereby represents, warrants and covenants to the Indenture Trustee, the Issuing Entity, the Swap Provider, the Sponsor and the Servicer that as of the date of this Agreement or as of such date specifically provided herein, and as of each subsequent
Transfer Date: 
 (a) The Depositor is a Maryland real estate investment trust duly organized, validly existing and in good standing under the
laws of the State of Maryland. 
 (b) The Depositor has the trust power and authority to convey the Mortgage Loans and to execute, deliver
and perform, and to enter into and consummate the transactions contemplated by this Agreement, and each Depositor’s Subsequent Transfer Instrument. 
 (c) This Agreement has been duly and validly authorized, executed and delivered by the Depositor, all requisite corporate action having been taken, and, assuming the due authorization, execution and delivery hereof by
the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the Depositor, enforceable against the Depositor in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
 (d) No consent, approval, authorization or order of or registration or filing with, or notice to, any governmental authority or court is required for the
execution, delivery and performance of or compliance by the Depositor with this Agreement or the consummation by the Depositor of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date. 
 (e) None of the execution and delivery of this Agreement or of each Depositor’s Subsequent Transfer Instrument, the consummation of the transactions
contemplated hereby or thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, or of each Depositor’s Subsequent Transfer Instrument by the Depositor (i) conflicts or will conflict with or results or
will result in a breach of, or constitutes or will constitute a default or results or will result in an acceleration under (A) the certificate of trust or bylaws of the Depositor, or (B) of any term, condition or provision of any material
indenture, deed of trust, contract or other agreement or instrument to which the Depositor or any of its subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii) results or will result in a violation of any law, rule,
regulation, order, judgment or decree applicable to the Depositor of any court or governmental authority having jurisdiction over the Depositor or its subsidiaries; or (iii) results in the creation or imposition of any lien, charge or
encumbrance which would have a material adverse effect upon the Mortgage Loans or any documents or instruments evidencing or securing the Mortgage Loans. 
 (f) Except as set forth in the Prospectus Supplement under the heading “Risk Factors,” there are no actions, suits or proceedings before or against or investigations of, the Depositor pending, or to
the knowledge of the Depositor, threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Depositor’s reasonable judgment, might materially and adversely affect the performance by the
Depositor of its obligations under this Agreement, or the validity or enforceability of this Agreement. 
  

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 (g) The Depositor 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 that may materially and adversely affect its performance hereunder. 
 (h) The Depositor hereby covenants that it has filed a federal income tax return for its taxable year ending December 31, 2004 on Internal Revenue Service Form 1120 REIT on which the Depositor elected to be taxed as a REIT. The
Depositor hereby represents that it has been organized in conformity with the requirements for qualification for taxation as a REIT and hereby covenants that it at all times the Depositor owns Trust Certificates, either directly, or indirectly
through one or more Qualified REIT Subsidiaries, will conduct its operations so as to qualify as a REIT. If, at any time the Depositor owns Trust Certificates, either directly, or indirectly through one or more Qualified REIT Subsidiaries, the
Depositor determines that is has failed to qualify as a REIT, the Depositor shall, within 30 days of such discovery, notify the Indenture Trustee of such failure. 
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 3.06 shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture
Trustee and shall inure to the benefit of the Indenture Trustee. 
 ARTICLE IV 
 THE MORTGAGE LOANS 
 Section 4.01. Representations and Warranties
Concerning the Mortgage Loans. The Sponsor makes the following representations and warranties to the Depositor, the Servicer, the Indenture Trustee, the Swap Provider and the Issuing Entity as to the Mortgage Loans on which the Issuing Entity
relies in accepting the Mortgage Loans in trust and executing the Notes. All uses and variations of the word “enforceable” in this Section 4.01, shall be deemed to be qualified as such enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (whether considered in a proceeding or action in equity or at law). With respect to the
representations and warranties stated in Sections 4.01(i), (r), (ddd), (eee) and (fff), the Sponsor makes such representations and warranties on behalf of itself and the Depositor. Such representations, warranties and covenants are made or deemed to
be made as to each Closing Date Mortgage Loan as of the Closing Date, and as to each Subsequent Mortgage Loan as of the Subsequent Transfer Date. 
 (a) The information with respect to each Closing Date Mortgage Loan set forth in the Mortgage Loan Schedule is true and correct as of the Cut-Off Date, based on Cut-Off Date Principal Balances, and with respect to each Subsequent Mortgage
Loan is true and correct as of the related Subsequent Transfer Date. 
  

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 (b) Each Mortgage Loan is being serviced either (i) through the Servicer or (ii) a Person
controlling, controlled by or under common control with the Servicer and qualified to service mortgage loans. 
 (c) Each Mortgage Loan was
underwritten or reunderwritten pursuant to the Underwriting Guidelines which conform in all material respects to the description thereof set forth in the Prospectus Supplement. 
 (d) All of the original or certified documentation required to be delivered to the Indenture Trustee pursuant to this Agreement (including all material
documents related thereto) with respect to each Mortgage Loan has been or will be delivered to the Indenture Trustee in accordance with the terms of this Agreement. Each of the documents and instruments specified to be included therein has been duly
executed and in due and proper form, and each such document or instrument is in a form generally acceptable to prudent mortgage lenders that regularly originate or purchase mortgage loans comparable to the Mortgage Loans for sale to prudent
investors in the secondary market that invest in mortgage loans such as the Mortgage Loans. 
 (e) [Reserved.] 
 (f) Each Mortgaged Property is improved by a single (one to four) family residential dwelling, which may include condominiums, individual units in a
planned unit development and townhouses but shall not include cooperatives. 
 (g) No Mortgage Loan had an LTV at origination in excess of
100%. 
 (h) Each Mortgage Loan is a valid, subsisting enforceable and perfected first lien as identified on the Mortgage Loan Schedule on
the Mortgaged Property and subject in all cases to the exceptions to title set forth in the title insurance policy, with respect to the related Mortgage Loan, which exceptions are generally acceptable to banking institutions in connection with their
regular mortgage lending activities, and such other exceptions to which similar properties are commonly subject and which do not individually, or in the aggregate, materially and adversely affect the benefits of the security intended to be provided
by such Mortgage. At the time each Mortgage Loan was originated, the originator was a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act or a savings and loan
association, a savings bank, a commercial bank or similar banking institution which was supervised and examined by a federal or state authority or a mortgage banker or broker licensed or authorized to do business in the jurisdiction in which the
related Mortgaged Property is located, applying the same standards and procedures used by the Sponsor in originating Mortgage Loans directly. 
 (i) Immediately prior to the transfer and assignment of the Mortgage Loans to the Depositor pursuant to the Contribution Agreements, the Sponsor held good and marketable title to, and was the sole owner of each Mortgage Loan, subject to no
liens, charges, mortgages or encumbrances or rights of others, except liens of third party warehouse lenders that will be released simultaneously with the transfer and assignment contemplated herein; and immediately prior to the transfer and
assignment herein contemplated, the Depositor held good and 

  

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marketable title to, and was the sole owner of, each Mortgage Loan subject to no liens, charges, mortgages, encumbrances or rights of others except liens
which will be released simultaneously with such transfer and assignment; and immediately upon the transfer and assignment herein contemplated, the Indenture Trustee will hold good and marketable title to, and be the sole owner of, each Mortgage Loan
subject to no liens, charges, mortgages, encumbrances or rights of others except liens which will be released simultaneously with such transfer and assignment. 
 (j) There is no delinquent tax or assessment lien on any Mortgaged Property, and each Mortgaged Property is free of substantial damage and is in good repair. 
 (k) There is no valid and enforceable right of rescission, set-off, defense or counterclaim to any Mortgage Note or Mortgage, including the obligation of
the related Mortgagor to pay the unpaid principal of or interest on such Mortgage Note or the defense of usury, nor will the operation of any of the terms of the Mortgage Note or the Mortgage, or the exercise of any right thereunder, render either
the Mortgage Note or the Mortgage unenforceable in whole or in part, or subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto. 
 (l) There is no mechanics’ lien or claim for work, labor or material affecting any Mortgaged Property
which is or may be a lien prior to, or equal with and no rights are outstanding that under the law gives rise to such liens, the lien of the related Mortgage except those which are insured against by any title insurance policy referred to in
paragraph (n) below. 
 (m) Each Mortgage Loan at the time it was made complied with, and each Mortgage Loan at all times was serviced
in compliance with, in each case, in all material respects, applicable local, state and federal laws and regulations, including, without limitation, the federal Truth-in-Lending Act and other consumer protection laws, the Home Ownership and Equity
Protection Act of 1994, real estate settlement procedure, usury, equal credit opportunity, disclosure and recording laws and all applicable predatory and abusive lending laws. 
 (n) With respect to each Mortgage Loan, a lender’s title insurance policy, issued in standard California Land Title Association form or American
Land Title Association form, or other form acceptable in a particular jurisdiction by a title insurance company authorized to transact business in the state in which the related Mortgaged Property is situated, in an amount at least equal to the
original Principal Balance of such Mortgage Loan insuring the mortgagee’s interest under the related Mortgage Loan as the holder of a valid first mortgage lien of record on the real property described in the related Mortgage, as the case may
be, subject only to exceptions of the character referred to in paragraph (h) above, was effective on the date of the origination of such Mortgage Loan, and, as of the Closing Date or relevant Subsequent Transfer Date such policy will be valid
and inure to the benefit of the Indenture Trustee on behalf of the Noteholders. 
 (o) The improvements upon each Mortgaged Property are
covered by a valid and existing hazard insurance policy (which may be a blanket policy of the type described in this Agreement) with a generally acceptable carrier that provides for fire and extended coverage representing coverage not less than the
least of (i) the outstanding Principal Balance of the related Mortgage Loan, (ii) the minimum amount required to compensate for damage or loss on a replacement cost basis or (iii) the full insurable value of the Mortgaged Property.

  

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 (p) If any Mortgaged Property is in an area identified in the Federal Register by the Federal Emergency
Management Agency as having special flood hazards, a flood insurance policy (which may be a blanket policy of the type described in this Agreement) in a form meeting the requirements of the current guidelines of the Federal Insurance Administration
is in effect with respect to such Mortgaged Property with a generally acceptable carrier in an amount representing coverage not less than the least of (i) the outstanding Principal Balance of the related Mortgage Loan (together, in the case of
a second mortgage loan, with the outstanding principal balance of the first mortgage loan), (ii) the minimum amount required to compensate for damage or loss on a replacement cost basis or (iii) the maximum amount of insurance that is
available under the Flood Disaster Protection Act of 1973. 
 (q) Each Mortgage and Mortgage Note is the legal, valid and binding obligation
of the maker thereof and is enforceable in accordance with its terms, except only as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights
generally and by general principles of equity (whether considered in a proceeding or action in equity or at law), and all parties to each Mortgage Loan had full legal capacity to execute all documents relating to such Mortgage Loan and convey the
estate therein purported to be conveyed. 
 (r) The Sponsor has directed and the Depositor has caused to be performed any and all acts
required to be performed to preserve the rights and remedies of the Indenture Trustee in any Insurance Policies applicable to any Mortgage Loan delivered by the Sponsor or the Depositor including, to the extent such Mortgage Loan is not covered by a
blanket policy described in this Agreement, any necessary notifications of insurers, assignments of policies or interests therein, and establishments of coinsured, joint loss payee and mortgagee rights in favor of the Indenture Trustee. 

(s) The Sponsor has caused or will have caused, within ten days, the filing of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the security interest in the original Mortgage Note and all subsequent assignments of the original Mortgage, granted to the Indenture Trustee hereunder, subject to the provisions of
Section 2.05(b) of this Agreement. 
 (t) The terms of each Mortgage Note and each Mortgage have not been impaired, altered, waived or
modified in any respect, except by a written instrument which has been recorded, if necessary, to protect the interest of the Noteholders and which has been delivered to the Indenture Trustee. 
 (u) The proceeds of each Mortgage Loan have been fully disbursed, and there is no obligation on the part of the mortgagee to make future advances
thereunder. All costs, fees and expenses incurred in making or closing or recording such Mortgage Loans were paid. 
 (v) Except as otherwise
required by law or pursuant to the statute under which the related Mortgage Loan was made, the related Mortgage Note is not and has not been secured by any collateral, pledged account or other security except the lien of the corresponding Mortgage.

  

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 (w) No Mortgage Loan was originated under a buydown plan. 
 (x) No Mortgage Loan provides for negative amortization, has a shared appreciation feature, or other contingent interest feature. 
 (y) Each Mortgaged Property is located in the state identified in the Mortgage Loan Schedule and consists of one or more parcels of real property with a
residential dwelling erected thereon and that no residence or dwelling is a mobile home. 
 (z) Each Mortgage securing a Mortgage Note
contains a provision for the acceleration of the payment of the unpaid Principal Balance of the related Mortgage Loan in the event the related Mortgaged Property is sold without the prior consent of the mortgagee thereunder. 
 (aa) Any advances made after the date of origination of a Mortgage Loan but prior to the Cut-Off Date, have been consolidated with the outstanding
principal amount secured by the related Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and single repayment term reflected on the Mortgage Loan Schedule. The consolidated principal amount does not exceed
the original principal amount of the related Mortgage Loan. No Mortgage Note permits or obligates the Depositor, the Servicer, the Sponsor or any other Person to make future advances to the related Mortgagor at the option of the Mortgagor.

 (bb) There is no proceeding pending or threatened for the total or partial condemnation of any Mortgaged Property, nor is such a
proceeding currently occurring, and each Mortgaged Property is undamaged by waste, fire, earthquake or earth movement, flood, tornado or other casualty, so as to affect adversely the value of the Mortgaged Property as security for the Mortgage Loan
or the use for which the premises were intended. 
 (cc) All of the improvements which were included for the purposes of determining the
Appraised Value of any Mortgaged Property lie wholly within the boundaries and building restriction lines of such Mortgaged Property, and no improvements on adjoining properties encroach upon such Mortgaged Property, except as stated in the related
title insurance policy and affirmatively insured. 
 (dd) No improvement located on or being part of any Mortgaged Property is in violation
of any applicable zoning law or regulation. As of the related date of origination, all inspections, licenses and certificates required to be made or issued with respect to all occupied portions of each Mortgaged Property and, with respect to the use
and occupancy of the same, including, but not limited to, certificates of occupancy and fire underwriting certificates, have been made or obtained from the appropriate authorities and such Mortgaged Property is lawfully occupied under the applicable
law. 
 (ee) With respect to each Mortgage constituting a deed of trust, a trustee, duly qualified under applicable law to serve as such, has
been properly designated and currently so 

  

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serves and is named in such Mortgage, and no fees or expenses are or will become payable by the Sponsor, the Depositor, or the Issuing Entity to the trustee
under the deed of trust, except in connection with a trustee’s sale after default by the related Mortgagor. 
 (ff) [Reserved.]

 (gg) [Reserved.] 
 (hh) Each
Mortgage contains customary and enforceable provisions which render the rights and remedies of the holder thereof adequate for the realization against the related Mortgaged Property of the benefits of the security, including (i) in the case of
a Mortgage designated as a deed of trust, by trustee’s sale and (ii) otherwise by judicial foreclosure. There is no homestead or other exemption available which materially interferes with the right to sell the related Mortgaged Property at
a trustee’s sale or the right to foreclose the related Mortgage. 
 (ii) There is no default, breach, violation or event of acceleration
existing under any Mortgage or the related Mortgage Note and no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration; and the
Depositor has not waived any default, breach, violation or event of acceleration. 
 (jj) No instrument of release or waiver has been
executed in connection with any Mortgage Loan, and no Mortgagor has been released, in whole or in part. 
 (kk) [Reserved.] 
 (ll) The Sponsor has no actual knowledge that there exists on any Mortgaged Property any hazardous substances, hazardous wastes or solid wastes, as such
terms are defined in the CERCLA, the Resource Conservation and Recovery Act of 1976, or other federal, state or local environmental legislation. 
 (mm) No action, error, omission, misrepresentation, negligence, fraud or similar occurrence with respect to the origination of a Mortgage Loan has taken place on the part of any person, including, without limitation, the Mortgagor, any
appraiser, any builder or developer, or any other party involved in the origination of the Mortgage Loan or in the application of any insurance in relation to such Mortgage Loan. 
 (nn) The Sponsor has not solicited the Mortgagor in connection with any refinancing. 
 (oo) If the Mortgage Loan is an adjustable rate Mortgage Loan, all of the adjustments to the Mortgage Interest Rate, to the amount of the monthly
payment, and to the principal balance have been made in accordance with the terms of the related Mortgage Note. 
 (pp) The origination and
collection practices used with respect to the Mortgage Loan have been in all respects legal, proper, prudent and customary in the mortgage origination and servicing business. 
  

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 (qq) Except with respect to AVM Mortgage Loans, an appraisal of the related Mortgaged Property was made
and signed, prior to the approval of the Mortgage Loan application, by a qualified appraiser who met the requirements of the Sponsor’s appraisal policy and procedures and who had no interest, direct or indirect in the Mortgaged Property or in
any loan made on the security thereof, whose compensation was not affected by the approval or disapproval of the Mortgage Loan, with respect to each AVM Mortgage Loan, the Mortgage File contains an insured automated valuation meeting the
requirements of the Sponsor’s Underwriting Guidelines. 
 (rr) The Mortgagor has received all disclosure materials required by
applicable law with respect to the making of adjustable rate mortgage loans; and if the Mortgage Loan is a refinanced Mortgage Loan, the Mortgagor has received all disclosure and rescission materials required by applicable law with respect to the
making of a refinanced Mortgage Loan, and evidence of such receipt is and will remain in the Servicer’s file. 
 (ss) If the residential
dwelling on the Mortgaged Property is a condominium unit or a unit in a planned unit development (other than a de minimis planned unit development), such condominium or planned unit development project meets the Sponsor’s eligibility
requirements. 
 (tt) None of the Closing Date Mortgage Loans was more than one payment past due or had been dishonored. Except for
eighty-nine Closing Date Mortgage Loans that were 30 or more days contractually delinquent one time, five Closing Date Mortgage Loans that were 30 or more days contractually delinquent three times in the twelve months prior to the Initial Cut-off
Date, one Closing Date Mortgage Loan that was 30 or more days contractually delinquent six times in the twelve months prior to the Initial Cut-off Date, none of the Closing Date Mortgage Loans have been thirty or more days delinquent more than one
time in the twelve months preceding the Cut-Off Date. The number of Closing Date Mortgage Loans which are more than 30 days delinquent do not exceed 20% of the Initial Pool Balance of the Closing Date Mortgage Loans. 
 (uu) The Sponsor has not advanced funds, or induced, solicited or knowingly received any advance of funds by a person other than the Mortgagor, directly
or indirectly, for the payment of any amount required under the Mortgage Loan, except for interest prepaid upon the closing of the Mortgage Loan. No Mortgage Loan contains any provision pursuant to which Monthly Payments are: (i) paid or
partially paid with funds deposited in any separate account established by the Sponsor, the Mortgagor, or anyone on behalf of the Mortgagor or (ii) paid by any source other than the Mortgagor. The Mortgage Loan is not deemed a graduated payment
mortgage loan and the Mortgage Loan does not have a shared appreciation or other contingent interest feature. 
 (vv) No foreclosure
proceedings are pending against the Mortgaged Property and the Mortgage Loan is not subject to any pending bankruptcy or insolvency proceeding, and to the Sponsor’s best knowledge, no material litigation or material lawsuit relating to the
Mortgage Loan is pending. 
  

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 (ww) Principal payments on the Mortgage Loan commenced or will commence within sixty days after the
proceeds of the Mortgage Loan were disbursed. 
 (xx) With respect to escrow deposits, if any, all such payments are in the possession of, or
under the control of, the Servicer and there exists no deficiencies in connection therewith for which customary arrangements for repayment thereof have not been made or could be made. No escrow deposits or escrow advances or other charges or
payments due the Servicer have been capitalized under any Mortgage or the related Mortgage Note. 
 (yy) With respect to the conveyance of
the Mortgage Loans by the Sponsor to the Depositor, the Sponsor used no selection procedures that identified the Mortgage Loans as being less desirable or valuable than other comparable mortgage loans originated or acquired by the Sponsor. The
Mortgage Loans are representative of the Sponsor’s portfolio of fixed-rate or adjustable-rate mortgage loans, as applicable. With respect to the conveyance of the Mortgage Loans pursuant to this Agreement, the Depositor used no selection
procedures that identified the Mortgage Loans as being less desirable or valuable than other comparable mortgage loans originated or acquired by the Depositor. The Mortgage Loans are representative of the Depositor’s portfolio of fixed-rate or
adjustable-rate mortgage loans, as applicable. 
 (zz) Each Mortgage Loan conforms, and all such Mortgage Loans in the aggregate conform in
all material respects to the description thereof set forth in the Prospectus Supplement. 
 (aaa) All requirements for the valid transfer of
each Insurance Policy, including any assignments or notices required in each Insurance Policy, have been satisfied. 
 (bbb) This Agreement
creates a valid and continuing security interest (as defined in the applicable UCC) in the Mortgage Loans in favor of the Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such as against creditors of and
purchasers from the Depositor. 
 (ccc) The Mortgage Loans constitute “instruments” within the meaning of the applicable UCC.

 (ddd) The Sponsor received all consents and approvals required by the terms of the Mortgage Loans to the contribution of the Mortgage
Loans pursuant to the Contribution Agreements to the Depositor and the Depositor has received all consents and approvals required by the terms of the Mortgage Loans to the sale of the Mortgage Loans hereunder to the Owner Trustee and the subsequent
pledge to the Indenture Trustee. 
 (eee) Other than the security interest granted to the Indenture Trustee pursuant to the Indenture,
neither the Sponsor nor the Depositor has pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Mortgage Loans. Neither the Sponsor nor the Depositor has authorized the filing of nor is aware of any financing
statements against the Sponsor or the Depositor that include a description of collateral covering the Mortgage Loans other than any financing statement relating to the security interest granted to the Indenture Trustee hereunder or that has been
terminated. Neither the Sponsor nor the Depositor is aware of any judgment or tax lien filings affecting the Mortgage Loans against either the Depositor or the Sponsor. 
  

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 (fff) All financing statements filed or to be filed against the Sponsor or the Depositor in favor of the
Indenture Trustee in connection herewith describing the Mortgage Loans contain a statement to the following effect: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the
Indenture Trustee.” 
 (ggg) None of the Mortgage Loans are classified as (a) “high cost” loans under the Home Ownership
and Equity Protection Act of 1994 or (b) “high cost,” “threshold,” “covered”, “predatory” or “abusive” loans under any other applicable state, federal or local law (including without limitation
any regulation or ordinance) (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or
fees). 
 (hhh) No proceeds from any Mortgage Loan were used to finance single-premium credit insurance policies. With respect to each
Mortgage Loan, no borrower obtained a prepaid single-premium credit-life, credit-disability, credit unemployment or credit property insurance policy in connection with the origination of the mortgage loan. 
 (iii) No Mortgage Loan is a “High Cost Home Loan” or “Covered Loan,” as applicable, (as such terms are defined in the then current
Standard & Poor’s LEVELS Glossary which is now Version 5.6c Revised, Appendix E) and no Mortgage Loan originated on or after October 1, 2002 through March 6, 2003 is governed by the Georgia Fair Lending Act. No Mortgage Loan
that was originated on or after October 1, 2002 and before March 7, 2003 is secured by property located in the State of Georgia. There is no Mortgage Loan that was originated on or after March 7, 2003 which is a “high cost home
loan” as defined under the Georgia Fair Lending Act. 
 (jjj) No Mortgage Loan is secured by a leasehold interest, unless such leasehold
interest extends 60 months beyond the stated maturity of the Mortgage Note. 
 (kkk) There is no pending action or proceeding directly
involving the Mortgaged Property in which compliance with any environmental law, rule or regulation is an issue. Based upon customary and prudent residential mortgage industry underwriting standards, there is no violation of any environmental law,
rule or regulation with respect to the Mortgaged Property, and nothing further remains to be done to satisfy in full all requirements of each such law, rule or regulation constituting a prerequisite to use and enjoyment of said property. 

(lll) The Mortgagor has not notified Accredited, and Accredited has no knowledge of any relief requested or allowed to the Mortgagor under the
Servicemembers Civil Relief Act or any similar state statute. 
 (mmm) No Mortgage Loan was made in connection with the construction (other
than a “construct to perm” loan) or rehabilitation of a Mortgaged Property or facilitating the trade in or exchange of a Mortgaged Property. 
  

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 (nnn) Accredited has complied with all applicable anti money laundering laws and regulations, including
without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering Laws”). 
 (ooo) No Mortgage Loan imposes
a Prepayment Charge for a term in excess of five years. 
 (ppp) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New
Jersey Home Ownership Act, effective as of November 27, 2003, or the Home Loan Protection Act of New Mexico, effective as of January 1, 2004. 
 (qqq) No Mortgage Loan is a “High-Cost Home Loan” as defined in the Massachusetts Predatory Home Loan Practice Act effective November 7, 2004 (MA House Bill 4880). 
 (rrr) [Reserved.] 
 (sss) A breach of any
one of the representations set forth in paragraphs (ggg), (hhh), (iii) and (qqq) above, will be deemed to materially and adversely affect the interests of the Noteholders and shall require a repurchase of the affected Mortgage Loan pursuant to
Section 4.02. 
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 4.01
shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture Trustee on behalf of the Noteholders. 
 Section 4.02. Purchase and Substitution. (a) It is understood and agreed that the representations and warranties set forth in
Section 4.01 shall survive the transfer of the Mortgage Loans by the Depositor to the Issuing Entity, the subsequent pledge thereof by the Issuing Entity to the Indenture Trustee, for the benefit of the Noteholders, and the delivery of the
Notes to the Noteholders, and shall continue in full force and effect, notwithstanding any restrictive or qualified endorsement on the Mortgage Notes and notwithstanding subsequent termination of this Agreement. 
 (b) Upon discovery by the Depositor, the Sponsor, the Servicer, the Indenture Trustee or a Noteholder of a breach of any of the representations and
warranties in Section 4.01 which materially and adversely affects the value of any Mortgage Loan, or which materially and adversely affects the interests of the Noteholders in the related Mortgage Loan, the party discovering such breach or
failure shall promptly (and in any event within five (5) days of the discovery) give written notice thereof to the others. Within sixty (60) days of the earlier of its discovery or its receipt of notice of any breach of a representation or
warranty, the Depositor shall, and if the Depositor fails to, then the Sponsor shall (a) promptly cure such breach in all material respects, (b) purchase such Mortgage Loan on a Servicer Remittance Date, in the manner and at the price
specified in Section 2.06(b) and this Section 4.02, or (c) remove such Mortgage Loan from the Trust Estate (in which case it shall become a Deleted Mortgage Loan) and substitute one or more Qualified Substitute Mortgage Loans in the
manner specified in Section 2.06 and this Section 4.02. The Indenture Trustee shall deliver prompt written notice to the Rating Agencies of any repurchase or substitution made pursuant to this Section 4.02 or Section 2.06(b).

  

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 (c) As to any Deleted Mortgage Loan for which the Depositor or the Sponsor substitutes a Qualified
Substitute Mortgage Loan or Loans, the Servicer shall cause the Depositor or Sponsor to effect such substitution by delivering to the Indenture Trustee a certification, in the form attached hereto as Exhibit F, executed by a Servicing
Officer, and the documents described in Sections 2.05(a)(i)-(vi) for such Qualified Substitute Mortgage Loan or Loans. 
 (d) The
Servicer shall deposit in the Collection Account all payments received in connection with such Qualified Substitute Mortgage Loan or Loans after the date of such substitution. Monthly Payments due with respect to Qualified Substitute Mortgage Loans
in or before the Due Period in which the substitution occurs shall not be part of the Trust Estate and will be retained by the Sponsor on the next succeeding Payment Date. For the Due Period in which the substitution occurs, distributions to
Noteholders will include the Monthly Payment due on any Deleted Mortgage Loan for such Due Period and thereafter the Sponsor shall be entitled to retain all amounts received in respect of such Deleted Mortgage Loan. The Servicer shall give written
notice to the Indenture Trustee that such substitution has taken place and shall amend the Mortgage Loan Schedule to reflect the removal of such Deleted Mortgage Loan from the terms of this Agreement and the substitution of the Qualified Substitute
Mortgage Loan or Loans. Upon such substitution, such Qualified Substitute Mortgage Loan or Loans shall be subject to the terms of this Agreement in all respects. 
 (e) With respect to any Mortgage Loan that has been converted to an REO Mortgage Loan, all references in this Section 4.02 or Section 2.06 to “Mortgage Loan” shall be deemed to also refer to the
REO Mortgage Loan. With respect to any Mortgage Loan that the Depositor and Sponsor are required to repurchase that is or becomes a Liquidated Mortgage Loan, in lieu of repurchasing such Mortgage Loan, the Servicer shall deposit into the Payment
Account, pursuant to Section 8.01 of the Indenture, an amount equal to the amount of the Liquidated Loan Loss, if any, incurred in connection with the liquidation of such Mortgage Loan within the same time period in which the Servicer,
Depositor or Sponsor would have otherwise been required to repurchase such Mortgage Loan. 
 (f) It is understood and agreed that the
obligations of the Depositor and the Sponsor set forth in Sections 2.06 and 4.02 to cure, purchase or substitute for a defective Mortgage Loan, or to indemnify as described in Section 4.02(g) constitute the sole remedies of the Indenture
Trustee and the Noteholders respecting a breach of the representations and warranties of the Sponsor set forth in Section 4.01 of this Agreement. 
 (g) The Sponsor shall be obligated to indemnify the Depositor, the Indenture Trustee, the Issuing Entity, the Owner Trustee and the Noteholders for any third party claims arising out of a breach by the Sponsor of
representations or warranties regarding the Mortgage Loans. 
  

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 ARTICLE V 
 ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS 
 Section 5.01. The Servicer.
(a) The Servicer shall service and administer the Mortgage Loans in accordance with this Agreement and in accordance with Accepted Servicing Practices and all applicable requirements of the Servicing Criteria, and shall have full power and
authority, acting alone, to do or cause to be done any and all things in connection with such servicing and administration which it may deem necessary or desirable. 
 (b) The Servicer shall exercise its discretion consistent with Accepted Servicing Practices and the terms of this Agreement, with respect to the enforcement of defaulted Mortgage Loans in such manner as will maximize
the receipt of principal and interest with respect thereto, including but not limited to the sale of such Mortgage Loan to a third party, the modification of such Mortgage Loan, or foreclosure upon the related property with a Mortgage and
disposition thereof. 
 (c) The duties of the Servicer shall include collecting and posting of all payments, responding to inquiries of
Mortgagors or by federal, state or local government authorities with respect to the Mortgage Loans, investigating delinquencies, reporting tax information to Mortgagors in accordance with its customary practices and accounting for collections and
furnishing monthly and annual statements to the Indenture Trustee with respect to distributions, paying Compensating Interest and making Delinquency Advances and Servicing Advances pursuant hereto. The Servicer shall follow its customary standards,
policies and procedures in performing its duties as Servicer. The Servicer shall cooperate with the Indenture Trustee and furnish to the Indenture Trustee with reasonable promptness information in its possession as may be necessary or appropriate to
enable the Indenture Trustee to perform its tax reporting duties hereunder. The Indenture Trustee shall furnish the Servicer with any powers of attorney and other documents as the Indenture Trustee shall deem necessary or appropriate to enable the
Servicer to carry out its servicing and administrative duties hereunder; provided, however, the Servicer shall prepare for and deliver to the Indenture Trustee for its execution any such powers of attorney; provided, further, that the Indenture
Trustee shall not be responsible for any misuse of any such power of attorney. Notwithstanding anything contained herein to the contrary, the Servicer shall not, without the Indenture Trustee’s written consent, other than routine foreclosure
actions: (i) initiate any action, suit or proceeding directly relating to the servicing of the Mortgage Loan solely under the Indenture Trustee’s name without indicating the Servicer’s representative capacity, (ii) initiate any
other action, suit or proceeding not directly relating to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against the Depositor for breaches of
representations and warranties) solely under the Indenture Trustee’s name, (iii) engage counsel to represent the Indenture Trustee in any action, suit or proceeding not directly related to the servicing of any Mortgage Loan (including but
not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against the Depositor for breaches of representations and warranties, or (iv) prepare, execute or deliver any government filings, forms, permits,
registrations or other documents or take any action with the intent to cause, and that actually causes, the Indenture Trustee to be registered to do business in any state. 
  

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 (d) [Reserved.] 
 (e) The Servicer shall, in accordance with Accepted Servicing Practices, have the right to approve requests of Mortgagors for consent to (i) partial releases of Mortgage Loans and (ii) alterations, removal,
demolition or division of Mortgaged Properties subject to Mortgage Loans. No such request shall be approved by the Servicer unless: (x) the provisions of the related Mortgage Note have been complied with; (y) the LTV (which may, for this
purpose, be determined at the time of any such action) after any release does not exceed the LTV set forth for such Mortgage Loan in the Mortgage Loan Schedule; and (z) the lien priority, monthly payment, Mortgage Interest Rate or maturity date
of the related Mortgage is not affected except in accordance with Section 5.01(f); provided, however, that the foregoing requirements (x), (y) and (z) shall not apply to any such situation described in this paragraph if
such situation results from any condemnation or easement activity by a governmental entity. 
 (f) Notwithstanding anything else contained
herein, the Servicer may not agree to a modification or extension of any Mortgage Loan unless both (i) such Mortgage Loan is in default or a default thereon is reasonably foreseeable and (ii) such modification or extension would not result
in the Servicer agreeing to modifications or extensions on Mortgage Loans with Initial Pool Balances of more than 5.0% of the Maximum Collateral Amount. In addition, the Servicer may not agree to more than (i) one modification or extension with
respect to any individual Mortgage Loan in a calendar year or (ii) three modifications or extensions of an individual Mortgage Loan during the life of such Mortgage Loan. 
 (g) [Reserved.] 
 (h) Without limiting the
generality of the foregoing, but subject to Sections 5.05 and 5.06, the Servicer in its own name may be authorized and empowered pursuant to a power of attorney executed and delivered by the Indenture Trustee to execute and deliver, and may be
authorized and empowered by the Indenture Trustee, to execute and deliver, on behalf of itself, the Noteholders and the Indenture Trustee or any of them, (i) any and all instruments of satisfaction or cancellation or of partial or full release
or discharge and all other comparable instruments with respect to the Mortgage Loans and with respect to the Mortgaged Properties, (ii) and to institute foreclosure proceedings or obtain a deed in lieu of foreclosure so as to effect ownership
of any Mortgaged Property on behalf of the Indenture Trustee, and (iii) to hold title to any Mortgaged Property upon such foreclosure or deed in lieu of foreclosure on behalf of the Indenture Trustee; provided, however, that
Section 5.07(a) shall constitute a power of attorney from the Indenture Trustee to the Servicer to execute an instrument of satisfaction (or assignment of mortgage without recourse) with respect to any Mortgage Loan paid in full (or with
respect to which payment in full has been escrowed). Subject to Sections 5.05 and 5.06, the Indenture Trustee shall furnish the Servicer with any powers of attorney and other documents as the Servicer shall reasonably request to enable the Servicer
to carry out its servicing and administrative duties hereunder; provided, however, the Servicer shall prepare for and deliver to the Indenture Trustee for its execution any such powers of attorney; provided, further, that the Indenture Trustee shall
not be responsible for any misuse of any such power of attorney. Notwithstanding anything contained herein to the contrary, the Servicer shall not, without the Indenture Trustee’s written consent, other than routine foreclosure actions:
(i) initiate any action, suit or proceeding directly relating to the servicing of the Mortgage Loan solely under the 

  

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Indenture Trustee’s name without indicating the Servicer’s representative capacity, (ii) initiate any other action, suit or proceeding not
directly relating to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against the Depositor for breaches of representations and warranties) solely under the
Indenture Trustee’s name, (iii) engage counsel to represent the Indenture Trustee in any action, suit or proceeding not directly related to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings
against Noteholders or Certificateholders, or against the Depositor for breaches of representations and warranties, or (iv) prepare, execute or deliver any government filings, forms, permits, registrations or other documents or take any action
with the intent to cause, and that actually causes, the Indenture Trustee to be registered to do business in any state. 
 (i) The Servicer
shall give prompt notice to the Indenture Trustee of any action, of which the Servicer has actual knowledge, to (i) assert a claim against the Issuing Entity or (ii) assert jurisdiction over the Trust. 
 (j) Servicing Advances incurred by the Servicer in connection with the servicing of the Mortgage Loans (including any penalties in connection with the
payment of any taxes and assessments or other charges) on any Mortgaged Property shall be recoverable by the Servicer to the extent described herein. 
 (k) The Servicer shall be entitled to rely, and shall be fully protected in relying, upon any promissory note, writing, resolution, notice, consent, certificate, affidavit, letter, e-mail, cablegram, telegram,
telecopy, telex or teletype message, statement, order or other document reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper person or persons and upon advice and statements of legal counsel
(including, without limitation, counsel to the Mortgagor(s)), independent accountants and other experts selected by the Servicer. 
 (l) The
Servicer shall have no liability to the Depositor, the Sponsor, the Indenture Trustee, the Owner Trustee, any Noteholder or any other Person 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 the foregoing shall not apply to any breach of representations or warranties made by the Servicer herein, or to any specific liability imposed upon the Servicer pursuant to this Agreement
or any liability that would otherwise be imposed upon the Servicer by reason of its willful misconduct, bad faith or negligence in the performance of its duties hereunder or by reason of its failure to perform its obligations or duties hereunder.

 (m) The Servicer further is authorized and empowered by the Indenture Trustee, on behalf of the Noteholders and the Indenture Trustee,
when the Servicer believes it is appropriate in its best judgment to register any Mortgage Loan on the MERS System, or cause the removal from the registration of any Mortgage Loan on the MERS System, to execute and deliver, on behalf of the
Indenture Trustee and the Noteholders or any of them, any and all instruments of assignment and other comparable instruments with respect to such assignment or re-recording of a Mortgage in the name of MERS, solely as nominee for the Indenture
Trustee and its successors and assigns. Any expenses incurred in connection with the actions described in the preceding sentence shall be reimbursable to the Servicer as Servicing Advances. 
  

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 (n) The Servicer shall not permit a subservicer, subcontractor or Servicing Function Participant to
perform any Servicing Function hereunder with respect to the Mortgage Loans unless such Servicing Function Participant first agrees in writing with the Servicer to deliver an Assessment of Compliance and an Attestation Report in such manner and at
such time that permits the Servicer to comply with Section 5.10 hereof. 
 Section 5.02. Collection of Certain Mortgage Loan
Payments; Collection Account. (a) The Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Mortgage Loans, and shall, to the extent such procedures shall be consistent with this
Agreement, follow Accepted Servicing Practices. Consistent with the foregoing, the Servicer may in its discretion waive any assumption fees or other fees which may be collected in the ordinary course of servicing such Mortgage Loans. 
 (b) The Servicer shall establish and maintain, in the name of the Indenture Trustee, a segregated account (the “Collection Account”), in trust
for the benefit of the Noteholders. The Collection Account shall be established and maintained as an Eligible Account. 
 (c) The Servicer
shall deposit in the Collection Account any amounts representing Monthly Payments on the Mortgage Loans due or to be applied as of a date after the Cut-Off Date on each Business Day, not more than two Business Days after the date of collection, the
following payments and collections received or made by it (other than in respect of monthly payments of principal on and interest of the Mortgage Loans that were due on or before the related Cut-Off Date and Monthly Payments due on June 1,
2006): 
 (i) payments of interest on the Mortgage Loans including Prepayment Charges; 
 (ii) payments of principal of the Mortgage Loans, including Principal Prepayments; 
 (iii) the Loan Repurchase Price of Mortgage Loans repurchased pursuant to Sections 2.06(b) or 4.02; 
 (iv) the Substitution Adjustment received in connection with Mortgage Loans for which Qualified Substitute Mortgage Loans are received
pursuant to Sections 2.06 and 4.02; 
 (v) all Net REO Proceeds; 
 (vi) all Net Liquidation Proceeds; and 
 (vii) all Insurance Proceeds (including, for this purpose, any amounts required to be deposited by the Servicer pursuant to Section 5.04 hereof). 
 It is understood that the Servicer need not deposit amounts representing fees, late payment charges or extension or other administrative charges (other
than Prepayment Charges) payable by Mortgagors, or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items or foreclosure proceeds to the extent
payable to the related Mortgagor. 
  

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 (d) The Servicer shall invest any funds in the Collection Account in Permitted Investments, which shall
mature not later than the Business Day next preceding the Servicer Remittance Date next following the date of such investment (except that any investment held by the Indenture Trustee may mature on such Servicer Remittance Date) and shall not be
sold or disposed of prior to its maturity. All net income and gain realized from any such investment shall be for the benefit of the Servicer and shall be subject to its withdrawal or order on a Servicer Remittance Date. The Servicer shall deposit
from its own funds the amount of any loss, to the extent not offset by investment income or earnings, in the Collection Account upon the realization of such loss. 
 Section 5.03. Permitted Withdrawals from the Collection Account. The Servicer may make withdrawals from the Collection Account, on or prior to any Servicer Remittance Date, for the following purposes:

 (a) to pay to the Sponsor amounts received in respect of any Defective Mortgage Loan purchased or substituted for by the Sponsor to the
extent that the payment of any such amounts on the Servicer Remittance Date upon which the proceeds of such purchase are paid would make the total amount distributed in respect of any such Mortgage Loan on such Servicer Remittance Date greater than
the Loan Repurchase Price or the Substitution Adjustment therefor; 
 (b) to reimburse the Servicer for unreimbursed Delinquency Advances and
unreimbursed Servicing Advances with respect to the Mortgage Loans for which it has made a Delinquency Advance or Servicing Advance, from late or deferred payments collected, collections other than timely Monthly Payments, Liquidation Proceeds
and/or the Loan Repurchase Price or Substitution Adjustment of or relating to such Mortgage Loans; 
 (c) to reimburse the Servicer for any
Delinquency Advances and Servicing Advances determined in good faith to have become Nonrecoverable Advances, such reimbursement to be made from any funds in the Collection Account; 
 (d) to withdraw any amount received from a Mortgagor that is recoverable and sought to be recovered as a voidable preference by a trustee in bankruptcy
pursuant to the Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction; 
 (e) to withdraw
any funds deposited in the Collection Account that were not required to be deposited therein; 
 (f) to pay the Servicer the Servicing
Compensation pursuant to Section 5.08 hereof to the extent not retained or paid; 
 (g) [Reserved]; 
  

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 (h) without duplication, and solely out of amounts which are payable to a former servicer pursuant to
Section 7.02(g), to pay to the Indenture Trustee or any successor servicer amounts paid by them in connection with the transfer of the Servicer’s servicing obligations pursuant to Article VII hereof and required under such Article VII to
be borne by the Servicer; 
 (i) to withdraw income on the Collection Account as provided in Section 5.02(d); and 
 (j) amounts deposited into the Collection Account in respect of late fees, assumption fees and similar fees (other than Prepayment Charges). 

The Servicer shall keep and maintain a separate accounting for each Mortgage Loan for the purpose of accounting for withdrawals from the Collection
Account pursuant to this Section 5.03. 
 Section 5.04. Hazard Insurance Policies; Property Protection Expenses.
(a) The Servicer shall cause to be maintained with respect to each Mortgage Loan a hazard insurance policy with a carrier licensed in the state in which the Mortgaged Property is located that provides for fire and extended coverage, and which
provides for a recovery by the named insured of insurance proceeds relating to such Mortgage Loan in an amount not less than the least of (i) the outstanding Principal Balance of the Mortgage Loan plus the outstanding principal balance of any
mortgage loan senior to such Mortgage Loan, but in no event shall such amount be less than is necessary to prevent the Mortgagor from becoming a coinsurer thereunder, (ii) the minimum amount required to compensate for loss or damage on a
replacement cost basis and (iii) the full insurable value of the related Mortgage Property. The Servicer shall also maintain on property acquired upon foreclosure, or by deed in lieu of foreclosure, hazard insurance with extended coverage in an
amount which is at least equal to the lesser of (i) the maximum insurable value from time to time of the improvements which are a part of such property or (ii) the sum of the Principal Balance of such Mortgage Loan and the principal
balance of any mortgage loan senior to such Mortgage Loan at the time of such foreclosure plus accrued interest and the good-faith estimate of the Servicer of related Liquidation Expenses to be incurred in connection therewith. Amounts collected by
the Servicer under any such policies shall be deposited in the Collection Account to the extent that they constitute Liquidation Proceeds or Insurance Proceeds. Each hazard insurance policy shall contain a standard mortgage clause naming the
Servicer, its successors and assigns, as mortgagee. The Servicer shall be under no obligation to require that any Mortgagor maintain earthquake (except as provided herein) or other additional insurance and shall be under no obligation itself to
maintain any such additional insurance on property acquired in respect of a Mortgage Loan, other than pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance. 
 (b) In the event that the Servicer shall obtain and maintain a blanket policy with an insurer which satisfies the corresponding requirements of Fannie
Mae or Freddie Mac, insuring against fire, flood and hazards of extended coverage on all of the Mortgage Loans, then, to the extent such policy names the Servicer as loss payee and provides coverage in an amount equal to the aggregate unpaid
Principal Balance on the Mortgage Loans without co-insurance, and otherwise complies with the requirements of this Section 5.04, the Servicer shall be deemed 

  

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conclusively to have satisfied its obligations with respect to fire and hazard insurance coverage under this Section 5.04, it being understood and
agreed that such blanket policy may contain a deductible clause (payable by the Servicer), in which case the Servicer shall, in the event that there shall not have been maintained on the related Mortgaged Property a policy complying with the
preceding paragraph of this Section 5.04, and there shall have been a loss which would have been covered by such policy, deposit in the Collection Account from the Servicer’s own funds the difference, if any, between the amount that would
have been payable under a policy complying with the preceding paragraph of this Section 5.04 and the amount paid under such blanket policy. Upon the request of the Indenture Trustee, the Servicer shall cause to be delivered to the Indenture
Trustee, a certified true copy of such policy. 
 (c) If the Mortgage Loan at the time of origination relates to a Mortgaged Property in an
area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards as designated to the Servicer by the Sponsor, the Servicer will cause to be maintained with respect thereto a flood insurance policy
in a form meeting the requirements of the current guidelines of the Federal Insurance Administration with a generally acceptable carrier in an amount representing coverage, and which provides for a recovery by the Servicer on behalf of the Issuing
Entity of insurance proceeds relating to such Mortgage Loan of not less than the least of (i) the outstanding Principal Balance of the related Mortgage Loan, plus the principal balance of the related first lien, if any, (ii) the minimum
amount required to compensate for damage or loss on a replacement cost basis and (iii) the maximum amount of insurance that is available under the Flood Disaster Protection Act of 1973. The Servicer shall indemnify the Issuing Entity out of the
Servicer’s own funds for any loss to the Issuing Entity resulting from the Servicer’s failure to maintain the insurance required by this Section. 
 Section 5.05. Assumption and Modification Agreements. When a Mortgaged Property has been or is about to be conveyed by the Mortgagor, the Servicer shall, to the extent it has knowledge of such conveyance
or prospective conveyance, exercise its rights to accelerate the maturity of the related Mortgage Loan under any “due-on-sale” clause contained in the related Mortgage or Mortgage Note; provided, however, that the Servicer
shall not exercise any such right if (i) the “due-on-sale” clause, in the reasonable belief of the Servicer, is not enforceable under applicable law or (ii) the Servicer reasonably believes that to permit an assumption of the
Mortgage Loan would not materially and adversely affect the interest of the Noteholders. In such event, the Servicer shall enter into an assumption and modification agreement with the Person to whom such property has been or is about to be conveyed,
pursuant to which such Person becomes liable under the Mortgage Note and, unless prohibited by applicable law or the mortgage documents, the Mortgagor remains liable thereon. If the foregoing is not permitted under applicable law, the Servicer is
authorized to enter into a substitution of liability agreement with such Person, pursuant to which the original Mortgagor is released from liability and such Person is substituted as Mortgagor and becomes liable under the Mortgage Note. The Mortgage
Loan, if assumed, shall conform in all respects to the requirements and representations and warranties of this Agreement. The Servicer shall notify the Indenture Trustee that any applicable assumption or substitution agreement has been completed by
forwarding to the Indenture Trustee the original copy of such assumption or substitution agreement, which copy shall be added by the Indenture Trustee to the related Indenture Trustee’s Mortgage File and which shall, for all purposes, be
considered a part of such Indenture Trustee’s Mortgage File to the same extent as 

  

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all other documents and instruments constituting a part thereof. The Servicer shall be responsible for promptly recording any such assumption or substitution
agreements. In connection with any such assumption or substitution agreement, the required monthly payment on the related Mortgage Loan shall not be changed but shall remain as in effect immediately prior to the assumption or substitution, the
stated maturity or outstanding Principal Balance of such Mortgage Loan shall not be changed, the Mortgage Interest Rate shall not be changed nor shall any required monthly payments of principal or interest be deferred or forgiven. Any fee collected
by the Servicer for consenting to any such conveyance or entering into an assumption or substitution agreement shall be retained by or paid to the Servicer as additional servicing compensation. 
 Notwithstanding the foregoing paragraph or any other provision of this Agreement, the Servicer shall not be deemed to be in default, breach or any other
violation of its obligations hereunder by reason of any assumption of a Mortgage Loan by operation of law or any assumption which the Servicer may be restricted by law from preventing, for any reason whatsoever. 
 Section 5.06. Realization Upon Defaulted Mortgage Loans. (a) The Servicer shall foreclose upon or otherwise comparably effect the
ownership on behalf of the Issuing Entity of Mortgaged Properties relating to defaulted Mortgage Loans as to which no satisfactory arrangements can be made for collection of Delinquent payments and which the Sponsor has not purchased pursuant to
Section 5.15, unless the Servicer reasonably believes that Net Liquidation Proceeds with respect to such Mortgage Loan would not be increased as a result of such foreclosure or other action, in which case, such Mortgage Loan will be charged-off
and will become a Liquidated Mortgage Loan. The Servicer shall have no obligation to purchase any Mortgaged Property at any foreclosure sale. In connection with such foreclosure or other conversion, the Servicer shall exercise foreclosure procedures
with the same degree of care and skill in their exercise or use, as it would ordinarily exercise or use under the circumstances in the conduct of their own affairs. Any amounts including Liquidation Expenses, advanced by the Servicer in connection
with such foreclosure or other action shall constitute Servicing Advances. 
 Pursuant to its efforts to sell any REO Property, the Servicer
either itself or through an agent selected by the Servicer shall manage, conserve, protect and operate such REO Property in the same manner and to such extent as is customary in the locality where such REO Property is located and may, incident to
its conservation and protection of the interests of the Servicer, rent the same, or any part thereof, as the Servicer deems to be in the best interest of the Issuing Entity for the period prior to the sale of such REO Property. The net income
generated from the REO Property and the proceeds from a sale of any REO Property shall be deposited in the Collection Account. 
 (b) If the
Servicer has reason to believe that a Mortgaged Property which the Servicer is contemplating acquiring in foreclosure or by deed in lieu of foreclosure contains environmental or hazardous waste risks known to the Servicer, the Servicer shall notify
the Indenture Trustee prior to acquiring the Mortgaged Property. The Servicer shall not institute foreclosure actions with respect to such a property if it reasonably believes that such action would not be consistent with the Accepted Servicing
Practices, and in no event shall the Servicer be required to manage, operate or take any other action with respect thereto which the Servicer in good faith believes will result in “clean-up” or other liability under applicable law, unless
the Servicer receives an indemnity acceptable to it in its sole discretion. 
  

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 (c) The Servicer shall determine, with respect to each defaulted Mortgage Loan, when it has recovered,
whether through trustee’s sale, foreclosure sale or otherwise, all amounts if any it expects to recover from or on account of such defaulted Mortgage Loan, whereupon such Mortgage Loan shall become a Liquidated Mortgage Loan. 
 (d) Net Foreclosure Profits, if any, shall be paid directly to the Sponsor. 
 (e) With respect to its obligations under this Section 5.06, the Servicer shall take all such actions as it reasonably believes are consistent with
Accepted Servicing Practices. 
 Section 5.07. Indenture Trustee to Cooperate. (a) Upon the payment in full of any Mortgage
Loan or the receipt by the Servicer of a notification that payment in full will be escrowed in a manner customary for such purposes, the Servicer shall deliver to the Indenture Trustee one copy of a Request for Release. Upon receipt of such copy of
the Request for Release, the Indenture Trustee shall promptly release the related Indenture Trustee’s Mortgage File, in trust to (i) the Servicer (ii) an escrow agent or (iii) any employee, agent or attorney of the Indenture
Trustee, in each case pending its release by the Servicer, such escrow agent or such employee, agent or attorney of the Indenture Trustee, as the case may be. Upon any such payment in full, or the receipt of such notification that such funds have
been placed in escrow, the Servicer is authorized to give, as attorney-in-fact for the Indenture Trustee and the mortgagee under the Mortgage which secured the Mortgage Note, an instrument of satisfaction (or assignment of Mortgage without recourse)
regarding the Mortgaged Property relating to such Mortgage, which instrument of satisfaction or assignment, as the case may be, shall be delivered to the Person or Persons entitled thereto against receipt therefor of payment in full, it being
understood and agreed that no expense incurred in connection with such instrument of satisfaction or assignment, as the case may be, shall be chargeable to the Collection Account. 
 (b) (i) From time to time and as appropriate in the servicing of any Mortgage Loan, including, without limitation, foreclosure or other comparable
conversion of a Mortgage Loan, the Indenture Trustee shall (except in the case of the payment or liquidation pursuant to which the related Indenture Trustee’s Mortgage File is released to an escrow agent or an employee, agent or attorney of the
Indenture Trustee), upon request of the Servicer and delivery to the Indenture Trustee of one copy of a Request for Release, release the related Indenture Trustee’s Mortgage File to the Servicer and shall execute such documents as shall be
necessary to the prosecution of any such proceedings, including, without limitation, an assignment without recourse of the related Mortgage to the Servicer. The Indenture Trustee shall complete in the name of the Indenture Trustee any endorsement in
blank on any Mortgage Note prior to releasing such Mortgage Note to the Servicer. Such receipt shall obligate the Servicer to return the Indenture Trustee’s Mortgage File to the Indenture Trustee when the need therefor by the Servicer no longer
exists unless the Mortgage Loan shall be liquidated, in which case, the Servicer shall deliver one copy of a Request for Release indicating such loan has been paid in full. 
  

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 (ii) Each Request for Release may be delivered to the Indenture Trustee (x) via mail
or courier, (y) via facsimile or (z) by such other means, including, without limitation, electronic or computer readable medium, as the Servicer and the Indenture Trustee shall mutually agree. The Indenture Trustee shall promptly release
the related Indenture Trustee’s Mortgage File(s) within five (5) Business Days of receipt of one copy of a properly completed Request for Release pursuant to clauses (x), (y) or (z) above or such shorter period as may be agreed
upon by the Servicer and the Indenture Trustee. Receipt of a Request for Release pursuant to clauses (x), (y) or (z) above shall be authorization to the Indenture Trustee to release such Indenture Trustee’s Mortgage Files, provided
the Indenture Trustee has determined that such Request for Release has been executed, with respect to clauses (x) or (y) above, or approved, with respect to clause (z) above, by a Servicing Officer of the Servicer. If the Indenture
Trustee is unable to release the Indenture Trustee’s Mortgage Files within the time frames previously specified, the Indenture Trustee shall immediately notify the Servicer, indicating the reason for such delay, but in no event shall such
notification be later than seven (7) Business Days after receipt of a Request for Release. If the Servicer, is required to pay penalties or damages due solely to the Indenture Trustee’s negligent failure to release the related Indenture
Trustee’s Mortgage File or the Indenture Trustee’s negligent failure to execute and release documents in a timely manner, the Indenture Trustee shall be liable for such penalties or damages. 
 (c) No costs associated with the procedures described in this Section 5.07 shall be an expense of the Issuing Entity or the Indenture Trustee and
the Indenture Trustee shall have no liability or obligation whatsoever to pay or advance any such amounts, except for any penalties and damages as set forth in Section 5.07(b)(ii) above. 
 Section 5.08. Servicing Compensation; Payment of Certain Expenses by Servicer. The Servicer shall be entitled to receive and retain, out of
collections on the Mortgage Loans for each Due Period, as servicing compensation for such Due Period, an amount (the “Servicing Fee”) equal to the product of one-twelfth of the Servicing Fee Rate and the aggregate Stated Principal
Balance of the Mortgage Loans as of the beginning of such Due Period. Additional servicing compensation in the form of assumption fees, late payment charges or extension and other administrative charges (other than Prepayment Charges) shall be
retained by the Servicer. The Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder (including payment of all other fees and expenses not expressly stated hereunder to be payable by or from another
source) and shall not be entitled to reimbursement therefor except as specifically provided herein. 
 Section 5.09. Annual Statement
as to Compliance. The Servicer will deliver to the Issuer, the Indenture Trustee, the Rating Agencies and the Sponsor on or before March 15th of each year, beginning March 15, 2007, an Officer’s Certificate of the Servicer (an
“Annual Statement of Compliance”) stating, that (a) a review of the activities of the Servicer, during the preceding calendar year and of its performance under this Agreement has been made under such officer’s supervision and
(b) to the best of such officer’s knowledge, based on such review, the Servicer has fulfilled all of its material obligations under this Agreement in all material respects throughout such year, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof. Such 

  

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Annual Statement of Compliance shall contain no restrictions or limitations on its use. In the event that the Servicer has delegated any servicing
responsibilities with respect to the Mortgage Loans to a subservicer or subcontractor that meets the criteria in Item 1108(a)(2)(i) through (iii) of Regulation AB, the Servicer, or the related servicer (as the case may be) shall deliver a
similar Annual Statement of Compliance by that subservicer or subcontractor to the Indenture Trustee, the Sponsor and the Rating Agencies as described above as and when required with respect to the servicer. 
 Section 5.10. Assessments of Compliance and Attestation Reports. The Servicer shall service and administer the Mortgage Loans in accordance
with all applicable requirements of the Servicing Criteria. Pursuant to Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB, each of the Servicer and the Indenture Trustee (each, an “Attesting Party”) shall
deliver to the Indenture Trustee on or before March 15th of each calendar year beginning in 2007, a report regarding such Attesting Party’s assessment of compliance (an “Assessment of Compliance”) with the Servicing Criteria
during the preceding calendar year. The Assessment of Compliance, as set forth in Regulation AB, must contain the following: 
 (a) A
statement by such officer of its responsibility for assessing compliance with the Servicing Criteria applicable to the related Attesting Party; 
 (b) A statement by such officer that such Attesting Party used the Servicing Criteria attached as Exhibit H hereto, and which will also be attached to the Assessment of Compliance, to assess compliance with the Servicing Criteria applicable
to the related Attesting Party; 
 (c) An assessment by such officer of the related Attesting Party’s compliance with the applicable
Servicing Criteria for the period consisting of the preceding calendar year, including disclosure of any material instance of noncompliance with respect thereto during such period, which assessment shall be based on the activities such Attesting
Party performs with respect to asset-backed securities transactions taken as a whole involving the Servicer, that are backed by the same asset type as the Mortgage Loans; and 
 (d) A statement that a registered public accounting firm has issued an attestation report on the related Attesting Party’s Assessment of Compliance
for the period consisting of the preceding calendar year. 
 Such report at a minimum shall address each of the Servicing Criteria specified
on Exhibit H hereto which are indicated as applicable to the related Attesting Party. 
 On or before March 15th of each calendar year
beginning in 2007, each Attesting Party specified in this Section shall furnish to the Indenture Trustee and the Depositor a report (an “Attestation Report”) by a registered public accounting firm that attests to, and reports on, the
Assessment of Compliance made by the Servicer, as required by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of Regulation AB, which Attestation Report must be made in accordance with standards for attestation reports issued or
adopted by the Public Company Accounting Oversight Board. 
 The Servicer or the Indenture Trustee, as the case may be shall cause any
subservicer, and each subcontractor determined by it to be “participating in the servicing function” within the 

  

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meaning of Item 1122 of Regulation AB, to deliver to the Indenture Trustee and the Depositor an Assessment of Compliance and Attestation Report as and
when provided above along with an indication of what Servicing Criteria are addressed in such assessment. 
 Such Assessment of Compliance,
as to any subservicer, shall at a minimum address each of the Servicing Criteria specified on Exhibit H hereto which are indicated as applicable to any “primary servicer.” Notwithstanding the foregoing, as to any subcontractor (as defined
in the related servicing agreement), an Assessment of Compliance is not required to be delivered unless it is required as part of a Form 10-K with respect to the Issuing Entity. 
 The Indenture Trustee shall also provide an Assessment of Compliance and Attestation Report, as and when provided above, which shall at a minimum address
each of the Servicing Criteria specified on Exhibit H hereto which are indicated as applicable to the “Indenture Trustee.” In addition, the Indenture Trustee shall deliver to the Sponsor and the Depositor an Assessment of Compliance and
Attestation Report, as and when provided above, which shall at a minimum address each of the Servicing Criteria specified on Exhibit H hereto which are indicated as applicable to a “custodian.” 
 Section 5.11. Reports Filed with Securities and Exchange Commission. 
 (a) (i) (A) Within 15 days after each Distribution Date, the Indenture Trustee shall, in accordance with industry standards, file with the
Commission via the Electronic Data Gathering and Retrieval System (“EDGAR”), a Form 10-D, signed by the Servicer, with a copy of the monthly statement to be furnished by the Indenture Trustee to the Noteholders for such Distribution Date
and detailing all data elements specified in Item 1121(a) of Regulation AB; provided that the Indenture Trustee shall have received no later than five (5) calendar days after the related Servicer Reporting Date, all information required to
be provided to the Indenture Trustee as described in clause (a)(iv) below. Any disclosure in addition to the Monthly Statement that is required to be included on Form 10-D (“Additional Form 10-D Disclosure”) shall be approved by the
Depositor. 
 Within five (5) calendar days after the related Servicer Reporting Date, (i) the parties set forth in Exhibit I shall
be required to provide, pursuant to section 5.11(a)(iv) below, to the Indenture Trustee and the Depositor, to the extent known (by a Responsible Officer in the case of the Owner Trustee), in EDGAR-compatible format at the email address set forth in
Section 10.06 with respect to the Indenture Trustee, or in such other form as otherwise agreed upon by the Indenture Trustee and the Depositor and such party, the form and substance of any Additional Form 10-D Disclosure, if applicable, and
(ii) the Depositor will approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Additional Form 10-D Disclosure on Form 10-D. The Depositor will be responsible for any reasonable fees and expenses assessed or
incurred by the Indenture Trustee in connection with including any Additional Form 10-D Disclosure on Form 10-D pursuant to this Section. 
 (B) After preparing the Form 10-D, the Indenture Trustee shall forward electronically a draft copy of the Form 10-D to the Depositor and the Servicer for review. No later than two (2) Business Days prior to the 15th calendar day after the related Distribution Date, either the Depositor or a senior officer of the Servicer in charge of the
servicing function shall sign the 

  

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Form 10-D and return an electronic or fax copy of such signed Form 10-D (with an original executed hard copy to follow by overnight mail) to the Indenture
Trustee. If a Form 10-D cannot be filed on time or if a previously filed Form 10-D needs to be amended, the Indenture Trustee will follow the procedures set forth in Section 5.11(a)(v). Promptly (but no later than one (1) Business Day)
after filing with the Commission, the Sponsor will make available on its internet website a final executed copy of each Form 10-D. The signing party at the Depositor or the Servicer can be contacted as set forth in Section 10.06. The parties to
this Agreement acknowledge that the performance by the Indenture Trustee of its duties under Sections 5.11(a)(i) and (v) related to the timely preparation and filing of Form 10-D is contingent upon such parties strictly observing all applicable
deadlines in the performance of their duties under such Sections. The Indenture Trustee shall have no liability for any loss, expense, damage, claim arising out of or with respect to any failure to properly prepare and/or timely file such Form 10-D,
where such failure results from the Indenture Trustee’s inability or failure to receive, on a timely basis, any information from any other party hereto needed to prepare, arrange for execution or file such Form 10-D, not resulting from its own
negligence, bad faith or willful misconduct. 
 (ii) (A) Within four (4) Business Days after the occurrence of an event requiring
disclosure on Form 8-K (each such event, a “Reportable Event”), the Depositor shall prepare and file on behalf of the Issuing Entity any Form 8-K, as required by the Exchange Act. Any disclosure or information related to a
Reportable Event or that is otherwise required to be included on Form 8-K (“Form 8-K Disclosure Information”) shall be approved by and prepared at the direction of the Depositor. 
 (B) For so long as the Issuing Entity is subject to the Exchange Act reporting requirements, no later than 12:00 p.m. Eastern Standard time on the 2nd
Business Day after the occurrence of a Reportable Event (i) the parties set forth in Exhibit I shall be required pursuant to Section 5.11(a)(iv) below to provide to the Depositor, to the extent known (by a Responsible Officer in the case
of the Owner Trustee), in EDGAR-compatible format, or in such other form as otherwise agreed upon by the Depositor and such party, the form and substance of any Form 8-K Disclosure Information, if applicable, and (ii) the Depositor will
approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Form 8-K Disclosure Information on Form 8-K. 
 (iii) (A) Within 90 days after the end of each fiscal year of the Issuing Entity or such earlier date as may be required by the Exchange Act (the “10-K Filing Deadline”) (it being understood that the fiscal year for the
Issuing Entity ends on December 31st of each year), commencing in March 2007, the Indenture Trustee shall
prepare and file on behalf of the Issuing Entity a Form 10-K, in form and substance as required by the Exchange Act. Each such Form 10-K shall include the following items, in each case to the extent they have been delivered to the Indenture Trustee
within the applicable time frames set forth in this Agreement, (1) an annual compliance statement for the Servicer and any subservicer, as described under Section 5.09, the annual reports on assessment of compliance with Servicing Criteria
for the Servicer, each subservicer and subcontractor participating in the Servicing Function, each Servicing Function Participant, the Indenture Trustee and each custodian, as described under Section 5.10, (2) the registered public
accounting firm attestation report for the Servicer, and the Indenture Trustee, as described under Section 5.10, which shall identify any material instance of noncompliance, disclosure identifying such instance of noncompliance, and (3) a
Sarbanes-Oxley Certification as 

  

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described in this Section 5.11 (a)(iii)(D) below. Any disclosure or information in addition to (1) through (3) above that is required to be
included on Form 10-K (“Additional Form 10-K Disclosure”) shall be determined and prepared by and approved by the Depositor. 
 (B)
No later than March 5th of each year that the Issuing Entity is subject to the Exchange Act reporting requirements, commencing in 2007, (1) the parties set forth in Exhibit I shall be required to provide pursuant to
Section 5.11(a)(iv) below to the Indenture Trustee and the Depositor, to the extent known (by a Responsible Officer in the case of the Owner Trustee), in EDGAR-compatible format, at the email address set forth in Section 10.06 hereof with
respect to the Indenture Trustee, or in such other form as otherwise agreed upon by the Indenture Trustee and the Depositor and such party, the form and substance of any Additional Form 10-K Disclosure, if applicable, and (2) the Depositor will
approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Additional Form 10-K Disclosure on Form 10-K. The Depositor will be responsible for any reasonable fees and expenses assessed or incurred by the Indenture
Trustee in connection with including any Additional Form 10-K Disclosure on Form 10-K pursuant to this Section. 
 (C) After preparing the
Form 10-K, the Indenture Trustee shall forward electronically a draft copy of the Form 10-K to the Depositor and the Servicer for review. No later than 12:00 p.m. Eastern Standard time on the 4th Business Day prior to the 10-K Filing Deadline,
either the Depositor or a senior officer of the Servicer in charge of the servicing function shall sign the Form 10-K and return an electronic or fax copy of such signed Form 10-K (with an original executed hard copy to follow by overnight mail) to
the Indenture Trustee. If a Form 10-K cannot be filed on time or if a previously filed Form 10-K needs to be amended, the Indenture Trustee will follow the procedures set forth in Section 5.11(a)(v). Promptly (but no later than one
(1) Business Day) after filing with the Commission, the Sponsor will make available on its internet website a final executed copy of each Form 10-K. The signing party at the Depositor or the Servicer can be contacted as set forth in
Section 10.06. The parties to this Agreement acknowledge that the performance by the Indenture Trustee of its duties under Sections 5.11(a)(iii) and (v) related to the timely preparation and filing of Form 10-K is contingent upon such
parties strictly observing all applicable deadlines in the performance of their duties under such Section 5.09 and Section 5.10. The Indenture Trustee shall have no liability for any loss, expense, damage, claim arising out of or with
respect to any failure to properly prepare and/or timely file such Form 10-K, where such failure results from the Indenture Trustee’s inability or failure to receive, on a timely basis, any information from any other party hereto needed to
prepare, arrange for execution or file such Form 10-K, not resulting from its own negligence, bad faith or willful misconduct. 
 (D) Each
Form 10-K shall include a certification (the “Sarbanes-Oxley Certification”), required to be included therewith pursuant to the Sarbanes-Oxley Act. The Servicer and the Indenture Trustee, shall and the Servicer shall cause any
subservicer or subcontractor engaged by it to, provide to the Person who signs the Sarbanes-Oxley Certification (the “Certifying Person”), by March 10 of each year in which the Issuing Entity is subject to the reporting
requirements of the Exchange Act, a certification (each, a “Back-Up Certification”), in the form attached hereto as Exhibit J-2, upon which the Certifying Person, the entity for which the Certifying Person acts as an officer, and
such entity’s officers, directors and Affiliates (collectively with the Certifying Person, “Certification Parties”) can reasonably rely. The senior officer of the Servicer shall 

  

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serve as the Certifying Person on behalf of the Issuing Entity. Such officer of the Certifying Person can be contacted as set forth in Section 10.06. In
the event the Indenture Trustee is terminated or resigns pursuant to the terms of this Agreement, the Indenture Trustee shall provide a Back-Up Certification to the Certifying Person pursuant to this Section 5.11(a)(iii) with respect to the
period of time it was subject to this Agreement. 
 (iv) With respect to any Additional Form 10-D Disclosure or Additional From 10-K
Disclosure (collectively, the “Additional Disclosure”) relating to the Trust Estate, the Indenture Trustee’s obligation to include such Additional Information in the applicable Exchange Act report is subject to receipt from the entity
that is indicated in Exhibit I as the responsible party for providing that information, if other than the Indenture Trustee, as and when required as described in Section 5.11(a)(i) through (iii) above. Each of the Servicer, Sponsor, and
Depositor hereby agree to notify and provide to the extent known to the Indenture Trustee and the Depositor all Additional Disclosure relating to the Trust Estate, with respect to which such party is indicated in Exhibit I as the responsible party
for providing that information. 
 (v) With respect to any Form 8-K Disclosure Information (collectively, the “8-K Additional
Disclosure”) relating to the Trust Estate, the Depositor’s obligation to include such 8-K Additional Information in the applicable Exchange Act report is subject to receipt from the entity that is indicated in Exhibit I as the responsible
party for providing that information, if other than the Depositor, as and when required as described in Section 5.11(a)(i) through (iii) above. Each of the Indenture Trustee, Servicer, Sponsor, and Depositor hereby agree to notify and
provide to the extent known to the Depositor all 8-K Additional Disclosure relating to the Trust Estate, with respect to which such party is indicated in Exhibit I as the responsible party for providing that information. 
 (vi) (A) On or prior to January 30 of the first year in which the Indenture Trustee is able to do so under applicable law, the Indenture
Trustee shall file a Form 15 relating to the automatic suspension of reporting in respect of the Issuing Entity under the Exchange Act. 
 (B) In the event that the Indenture Trustee is unable to timely file with the Commission all or any required portion of any Form 10-D or 10-K required to be filed by this Agreement because required disclosure information was either not
delivered to it or delivered to it after the delivery deadlines set forth in this Agreement or for any other reason, the Indenture Trustee will immediately notify the Depositor and the Servicer. In the case of Form 10-D and 10-K, the Depositor,
Servicer and Indenture Trustee will cooperate to prepare and file a Form 12b-25 and a 10-DA and 10-KA as applicable, pursuant to Rule 12b-25 of the Exchange Act. In the case of Form 8-K, the Depositor will, upon receipt of all required Form 8-K
Disclosure Information provide such Form 8-K Disclosure Information to the Indenture Trustee for inclusion on the next Form 10-D. In the event that any previously filed Form 10-D or 10-K needs to be amended, the Indenture Trustee (to the extent of
actual knowledge) will notify the Depositor and the Servicer and such parties will cooperate to prepare any necessary 10-DA or 10-KA. Any Form 15, Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be signed by a senior officer of the
Servicer. The Depositor and Servicer acknowledge that the performance by the Indenture Trustee of its duties under this Section 5.11(a)(v) related to the timely preparation and filing of Form 15, a Form 12b-25 or any amendment to Form 10-D or
10-K is contingent upon the Servicer and the Depositor performing their duties under this Section. The Indenture Trustee 

  

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shall have no liability for any loss, expense, damage, claim arising out of or with respect to any failure to properly prepare and/or timely file any such
Form 15, Form 12b-25 or any amendments to Forms 10-D or 10-K, where such failure results from the Indenture Trustee’s inability or failure to receive, on a timely basis, any information from any other party hereto needed to prepare, arrange for
execution or file such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, not resulting from its own negligence, bad faith or willful misconduct. 
 The Depositor agrees to promptly furnish to the Indenture Trustee, from time to time upon request, such further information, reports and financial statements within its control related to this Agreement, the Mortgage
Loans as is necessary for the preparation and filing of all required reports with the Commission. The Indenture Trustee shall have no responsibility to file any items other than those specified in this Section 5.11; provided, however, the
Indenture Trustee will cooperate with the Depositor in connection with any additional filings with respect to the Issuing Entity as the Depositor deems necessary under the Exchange Act. Copies of all reports filed by the Indenture Trustee under the
Exchange Act shall be sent to the Depositor as set forth in Section 10.06. 
 (b) In connection with the filing of any 10-K hereunder,
the Indenture Trustee shall sign a certification (a “Form of Back-Up Certification to Form 10-K Certificate,” substantially in the form attached hereto as Exhibit J-2) for the Depositor regarding certain aspects of the Form 10-K
certification signed by the Depositor, provided, however, that the Indenture Trustee shall not be required to undertake an analysis of any accountant’s report attached as an exhibit to the Form 10-K. 
 (c) The Indenture Trustee shall indemnify and hold harmless the Depositor and its officers, directors and affiliates from and against any losses,
damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses arising out of or based upon the Indenture Trustee’s failure to timely file any Form 10-D or Form 10-K as
required by this Agreement and/or any untrue statement of a material fact or omission to state a material fact required to be stated or necessary to make the statements made not misleading contained in any information provided by the Indenture
Trustee (other than the Attestation Report for the Indenture Trustee) or the Indenture Trustee’s negligence, bad faith or willful misconduct in connection therewith. 
 The Depositor shall indemnify and hold harmless the Indenture Trustee and its officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees
and related costs, judgments and other costs and expenses arising out of or based upon the Depositor’s failure to timely deliver any information required hereunder and/or any untrue statement of a material fact or omission to state a material
fact required to be stated or necessary to make the statements made not misleading contained in any information provided by the Depositor or the Depositor’s negligence, bad faith or willful misconduct in connection therewith. 
 The Servicer shall indemnify and hold harmless the Indenture Trustee and the Depositor and their respective officers, directors and affiliates from and
against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses arising out of or based upon a breach of the obligations of the Servicer under this
Section 5.11 or the Servicer’s negligence, bad faith or willful misconduct in connection therewith. 
  

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 If the indemnification provided for herein is unavailable or insufficient to hold harmless the Depositor
or the Indenture Trustee, as applicable, then the defaulting party, in connection with a breach of its respective obligations under this Section 5.11 or its respective negligence, bad faith or willful misconduct in connection therewith, agrees
that it shall contribute to the amount paid or payable by the other parties as a result of the losses, claims, damages or liabilities of the other party in such proportion as is appropriate to reflect the relative fault and the relative benefit of
the Depositor on the one hand and the Indenture Trustee on the other. 
 All information to be submitted to the Indenture Trustee as
Additional Form 10-D Disclosure, Additional Form 10-K Disclosure or 8-K Additional Disclosure shall be provided to the Indenture Trustee in EDGAR compatible form at the email address in, and through use of, the form set forth as Exhibit N hereto.

 Section 5.12. Access to Certain Documentation. The Servicer shall provide to the Indenture Trustee, the FDIC and the
supervisory agents and examiners (as required in the latter case by applicable State and federal regulations) of each of the foregoing access to the documentation regarding the Mortgage Loans, such access being afforded without charge but only upon
reasonable request and during normal business hours at the offices of the Servicer designated by it. 
 Upon any change in the format of the
computer tape maintained by the Servicer in respect of the Mortgage Loans, the Servicer shall deliver a copy of such computer tape to the Indenture Trustee and in addition shall provide a copy of such computer tape to the Indenture Trustee at such
other times as the Indenture Trustee may reasonably request. 
 The Servicer shall keep confidential (including from affiliates thereof)
information concerning the Mortgage Loans, except as required by law. 
 Section 5.13. Maintenance of Fidelity Bond. The Servicer
shall, during the term of its service as Servicer maintain in force a fidelity bond and errors and omissions insurance in respect of its officers, employees or agents. Such bond and insurance shall comply with the requirements from time to time of
Fannie Mae or Freddie Mac for Persons performing servicing for mortgage loans purchased by such association. 
 Section 5.14.
Subservicing Agreements Between the Servicer and Subservicer and Subservicers. (a) The Servicer may enter into subservicing agreements for any servicing and administration of Mortgage Loans with any institution which is in compliance
with the laws of each state necessary to enable it to perform its obligations under such subservicing agreement. The Servicer shall give notice to the Indenture Trustee of the appointment of any subservicer and shall furnish to the Indenture Trustee
a copy of the subservicing agreement. The Servicer shall give notice to each Rating Agency of the appointment of any subservicer. For purposes of this Agreement, the Servicer shall be deemed to have received payments on Mortgage Loans when any
subservicer has received such payments. Any such subservicing agreement shall be consistent with and not violate the provisions of this Agreement. 
  

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 (b) The Servicer may terminate any subservicing agreement in accordance with the terms and conditions of
such subservicing agreement and thereafter directly service the related Mortgage Loans itself or enter into a subservicing agreement with a successor subservicer that qualifies under Subsection (a) of this Section 5.13. The Servicer shall
give notice to each Rating Agency of the termination of any subservicer and the appointment of any successor subservicer. 
 (c) The Servicer
shall not be relieved of its obligations under this Agreement notwithstanding any subservicing agreement or any of the provisions of this Agreement relating to agreements or arrangements between the Servicer and a subservicer or otherwise, and the
Servicer shall be obligated to the same extent and under the same terms and conditions as if it alone were servicing and administering the Mortgage Loans. The Servicer shall be entitled to enter into any agreement with a subservicer for
indemnification of the Servicer by such subservicer and nothing contained in such subservicing agreement shall be deemed to limit or modify this Agreement. The Issuing Entity shall not indemnify the Servicer for any losses due to the Servicer’s
negligence. 
 (d) Any subservicing agreement and any other transactions or services relating to the Mortgage Loans involving a subservicer
shall be deemed to be between the subservicer and the Servicer alone and the Indenture Trustee and the Noteholders shall not be deemed parties thereto and shall have no claims, rights, obligations, duties or liabilities with respect to any
Subservicer except as set forth in Subsection (e) of this Section 5.13 and the related Subservicing Agreement. 
 (e)
Notwithstanding any contrary provision contained herein, in connection with the assumption of the responsibilities, duties and liabilities and of the authority, power and rights of the Servicer hereunder by the Indenture Trustee or any other
successor servicer pursuant to Section 7.02, it is understood and agreed that the Servicer’s rights and obligations under any subservicing agreement then in force between the Servicer and a subservicer may be assumed or terminated (without
cost) by the Indenture Trustee or any other successor servicer at its option as successor to the Servicer. 
 The Servicer shall, upon
request of the Indenture Trustee, but at the expense of the Servicer, deliver to the assuming party documents and records relating to each subservicing agreement and an accounting of amounts collected and held by it and otherwise use its best
reasonable efforts to effect the orderly and efficient transfer of the subservicing agreements to the assuming party, without the payment of any fee by the Indenture Trustee, any Noteholders, notwithstanding any contrary provision in any
subservicing agreement. 
 Section 5.15. Reports to the Indenture Trustee; Collection Account Statements. Not later than
twenty-five (25) days after each Payment Date, the Servicer shall provide to the Indenture Trustee a statement, certified by a Servicing Officer, setting forth the status of the Collection Account as of the close of business on the last day of
the Due Period preceding such Payment Date, stating that all payments required by this Agreement to be made by the Servicer on behalf of the Indenture Trustee have been made (or if any required payment has not been made by the Servicer, specifying
the nature and status thereof) and showing, for the period covered by such statement, the aggregate of deposits into and withdrawals from the Collection 

  

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Account and the aggregate of deposits into the Payment Account as specified in Section 6.01. Such statement shall also state the aggregate Stated
Principal Balance and the aggregate unpaid principal balance of all the Mortgage Loans as of the close of business on the last day of the month preceding the month in which such Payment Date occurs. 
 Section 5.16. Optional Purchase of Defaulted Mortgage Loans. (a) The Depositor, in its sole discretion, shall have the right to elect
(by written notice sent to the Servicer and the Indenture Trustee), but shall not be obligated, to purchase for its own account from the Issuing Entity any Mortgage Loan which is ninety (90) days or more Delinquent in the manner at the Loan
Repurchase Price (except that the amount described in the definition of Loan Repurchase Price shall in no case be net of the Servicing Fee). The purchase price for any Mortgage Loan purchased hereunder shall be deposited in the Collection Account
and the Indenture Trustee, upon the Indenture Trustee’s receipt of written notice by the Servicer of such deposit, shall release or cause to be released to the purchaser of such Mortgage Loan the related Indenture Trustee’s Mortgage File
and shall execute and deliver such instruments of transfer or assignment prepared by the purchaser of such Mortgage Loan, in each case without recourse, as shall be necessary to vest in the purchaser of such Mortgage Loan any Mortgage Loan released
pursuant hereto and the purchaser of such Mortgage Loan shall succeed to all the Indenture Trustee’s right, title and interest in and to such Mortgage Loan and all security and documents related thereto. Such assignment shall be an assignment
outright and not for security. The purchaser of such Mortgage Loan shall thereupon own such Mortgage Loan, and all security and documents, free of any further obligation to the Indenture Trustee or the Noteholders with respect thereto. 

(b) After the Depositor or its Affiliate has repurchased any Mortgage Loans which are 90 days or more Delinquent in an aggregate amount equal to 1% of
the Maximum Collateral Amount, then notwithstanding the foregoing, the Depositor or its Affiliate may only exercise its option pursuant to this Section 5.15 with respect to the Mortgage Loan or Mortgage Loans (including REO Mortgage Loans) that
have been Delinquent for the longest period at the time of such repurchase. 
 (c) The Depositor may not repurchase pursuant to this
Section 5.15 more than 10% of the Mortgage Loans, measured by the outstanding Principal Balance of the Mortgage Loans repurchased as a percentage of the Initial Pool Balance. 
 Section 5.17. Reports to be Provided by the Servicer. (a) By 3:00 p.m. eastern time on the second Business Day following the fifteenth
(15th) day of each month (the “Servicer Reporting Date”), the Servicer shall deliver to the Indenture Trustee, the Underwriter, Intex and Bloomberg a Servicer Remittance Report for the related Servicer Remittance Date in an
electronic format reporting on a loan-by-loan basis in such format as the Servicer and the Indenture Trustee may agree, and setting forth the following information with respect to all Mortgage Loans as of the close of business on the last Business
Day of the prior calendar month (except as otherwise provided in clause (v) below): 
 (i) the total number of Mortgage
Loans and the Aggregate Principal Balances thereof, together with the number, Aggregate Principal Balances of such Mortgage Loans and the percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of the Aggregate Principal
Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans (A) 31-60 days Delinquent, (B) 61-90 days Delinquent and (C) 91 or more days Delinquent; 
  

 48 

 (ii) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based
on the Aggregate Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans in foreclosure proceedings and the number, Aggregate Principal Balances of
all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i); 
 (iii) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the
Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans relating to Mortgagors in bankruptcy proceedings and the number, Aggregate Principal Balances of all Mortgage Loans
and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i); 
 (iv) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate Principal Balances of the
Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans relating to REO Properties and the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based
on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i); 
 (v) the weighted average Mortgage Interest Rate for the Mortgage Loans as of the Due Date occurring in the Due Period related to such
Payment Date; 
 (vi) the weighted average remaining term to stated maturity of all Mortgage Loans; 
 (vii) the book value of any REO Property; 
 (viii) the Cumulative Realized Loss Percentage and the Rolling Six Month Delinquency Ratio as of the related Payment Date; 
 (ix) with respect to each Monthly Payment, the amount of such remittance allocable to principal (including a separate breakdown of any Principal Prepayment, including the date of such prepayment, and any Prepayment
Charges); 
 (x) with respect to each Monthly Payment, the amount of such remittance allocable to interest; 
 (xi) the number and the Aggregate Principal Balance of Mortgage Loans repurchased pursuant to Section 5.15; and 
  

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 (xii) such other loan level information as either the Indenture Trustee may reasonably
request to enable it to prepare the Indenture Trustee’s Remittance Report. 
 (b) [Reserved.] 
 (c) [Reserved.] 
 Section 5.18.
[Reserved.] 
 Section 5.19. Delinquency Advances. If, on any Servicer Remittance Date, the Servicer determines that any Monthly
Payments due during the related Due Period have not been received as of the end of the related Due Period, the Servicer shall determine the amount of any Delinquency Advance required to be made with respect to the related Payment Date. The Servicer
shall include in the amount to be deposited in the Payment Account on such Servicer Remittance Date an amount equal to the Delinquency Advance, if any, which deposit may be made in whole or in part from funds in the Collection Account being held for
future payment or withdrawal on or in connection with Payment Dates in subsequent months, other than any such amounts which are voluntary Principal Prepayments in full. Any funds being held for future payment to Noteholders and so used shall be
replaced by the Servicer from its own funds by deposit in the Collection Account on or before the Business Day preceding any future Servicer Remittance Date to the extent that funds in the Collection Account on such Servicer Remittance Date shall be
less than the Servicer Remittance Amount for such Payment Date. 
 The Servicer shall designate on its records the specific Mortgage Loans
and related installments (or portions thereof) as to which such Delinquency Advance shall be deemed to have been made, such determination being conclusive for purposes of withdrawals from the Collection Account pursuant to Section 5.03 hereof.

 Section 5.20. Indemnification; Third Party Claims. The Servicer agrees to indemnify and to hold each of the Issuing Entity,
the Owner Trustee, the Depositor, the Sponsor, the Indenture Trustee and each Noteholder harmless against any and all claims, losses, penalties, fines, forfeitures, legal fees and related costs, judgments, and any other costs, fees and expenses
(including attorneys’ fees and expenses) that the Issuing Entity, the Owner Trustee, the Depositor, the Sponsor, the Indenture Trustee and any Noteholder (or any director, officer, employee or agent of the foregoing) may sustain in any way
related to the failure of the Servicer to perform its duties and service the Mortgage Loans in compliance with the terms of this Agreement and the other Basic Documents and in connection with the Indenture as provided in Section 6.16 thereof.
Each indemnified party and the Servicer shall immediately notify the other indemnified parties if a claim is made by a third party with respect to this Agreement and the other Basic Documents and the Servicer shall assume the defense of any such
claim and pay all expenses in connection therewith, including reasonable counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may be entered against the Issuing Entity, the Owner Trustee, the Depositor, the Sponsor, the
Servicer, the Indenture Trustee and/or a Noteholder (or any director, officer, employee or agent of the foregoing) in respect of such claim. The obligations of the Servicer under this Section 5.19 arising prior to any resignation or termination
of the Servicer hereunder shall survive the resignation or termination of the Servicer or the termination of this Agreement or the Indenture. 
  

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 Section 5.21. Maintenance of Corporate Existence and Licenses; Merger or Consolidation of the
Servicer. (a) The Servicer will keep in full effect its existence, rights and franchises as a corporation, will obtain and preserve its qualification to do business as a foreign corporation in each jurisdiction necessary to protect the
validity and enforceability of this Agreement or any of the Mortgage Loans and to perform its duties under this Agreement and will otherwise operate its business so as to cause the representations and warranties under Section 3.01 hereof to be
true and correct at all times under this Agreement. 
 (b) Any corporation into which the Servicer may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Servicer shall be a party, or any corporation succeeding to all or substantially all of the business of the Servicer, shall be the
successor of the Servicer, hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto provided that, such corporation meets the qualifications set forth in Section 7.02(b). The Servicer,
as applicable, shall send notice of any such merger or consolidation to the Owner Trustee, the Indenture Trustee and the Servicer, as applicable. 
 Section 5.22. Assignment of Agreement by Servicer; Servicer Not to Resign. The Servicer shall not assign this Agreement nor resign from the obligations and duties hereby imposed on it except upon the determination that the
Servicer’s duties hereunder are no longer permissible under applicable law and that such incapacity cannot be cured by the Servicer, without incurring unreasonable expense. Any such determination that the Servicer’s duties hereunder are no
longer permissible under applicable law permitting the resignation of the Servicer, as applicable, shall be evidenced by a written Opinion of Counsel (who may be counsel for the Servicer) to such effect delivered to the Indenture Trustee, the
Issuing Entity, the Depositor, the Sponsor and the Servicer, as applicable. No such resignation of the Servicer shall become effective until a successor servicer appointed in accordance with the terms of this Agreement has assumed the
Servicer’s responsibilities and obligations hereunder in accordance with Section 7.02. The Servicer shall provide the Indenture Trustee and the Rating Agencies with 30 days’ prior written notice of its intention to resign pursuant to
this Section 5.21. 
 Section 5.23. [Reserved.] 
 Section 5.24. Administrative Duties. (a) Duties with Respect to the Basic Documents. The Servicer shall perform all its duties and the duties of the Issuing Entity under the Basic Documents. In
addition, the Servicer shall consult with the Owner Trustee as the Servicer deems appropriate regarding the duties of the Issuing Entity under the Basic Documents. The Servicer shall monitor the performance of the Issuing Entity and shall advise the
Owner Trustee when action is necessary to comply with the Trust’s duties under the Basic Documents. The Servicer shall prepare for execution by the Issuing Entity or shall cause the preparation by other appropriate Persons of all such
documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Issuing Entity to prepare, file or deliver pursuant to the Basic Documents. In furtherance of the foregoing, the Servicer shall take all necessary
action that is the duty of the Issuing Entity to take pursuant to the Basic Documents. 
 (b) Duties with Respect to the Issuing
Entity. In addition to the duties of the Servicer set forth in this Agreement or any of the Basic Documents, the Servicer shall perform 

 51 

 
such calculations and shall prepare for execution by the Issuing Entity or the Owner Trustee or shall cause the preparation by other appropriate Persons of
all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Issuing Entity or the Owner Trustee to prepare, file or deliver pursuant to this Agreement or any of the Basic Documents or under state and
federal tax and securities laws and shall take all appropriate action that it is the duty of the Issuing Entity to take pursuant to this Agreement or any of the Basic Documents. In accordance with the directions of the Issuing Entity or the Owner
Trustee, the Servicer shall administer, perform, or supervise the performance of such other activities in connection with the Basic Documents as are not covered by any of the foregoing provisions and as are expressly requested by the Issuing Entity
or the Owner Trustee and are reasonably within the capability of the Servicer. 
 In carrying out the foregoing duties under this Agreement,
the Servicer may enter into transactions with or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Issuing Entity and shall
be, in the Servicer’s opinion, no less favorable to the Issuing Entity in any material respect. 
 (c) Additional Information to be
Furnished to the Issuing Entity. The Servicer shall furnish to the Owner Trustee from time to time such additional information regarding the Issuing Entity or the Basic Documents as the Owner Trustee shall reasonably request. The Servicer shall
prepare, execute and deliver all certificates or other documents required to be delivered by the Issuing Entity pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated thereunder. 
 Section 5.25. Advance Facility. 
 (a) The Servicer on behalf of the Issuing Entity, is hereby authorized to enter into a facility (such an arrangement, an “Advance Facility”) with any Person which provides that such Person (an “Advancing Person”) may
fund Delinquency Advances and/or Servicing Advances under this Agreement, although no such facility shall reduce or otherwise affect the Servicer’s obligation to fund such Delinquency Advances and/or Servicing Advances. No consent of the
Indenture Trustee, Noteholders or any other party shall be required before the Servicer may enter into an Advance Facility nor shall the Indenture Trustee or the Noteholders be a third party beneficiary of any obligation of an Advancing Person to
the Servicer. If the Servicer enters into an Advance Facility, the Servicer and the related Advancing Person shall deliver to the Indenture Trustee at the address set forth in Section 10.06 hereof a written notice (an “Advance Facility
Notice”), stating (a) the identity of the Advancing Person and (b) the identity of the Person (the “Servicer’s Assignee”) that will, subject to Section 5.24(b) hereof, have the right to make withdrawals from the
Collection Account pursuant to Section 5.03(b) hereof to reimburse previously unreimbursed Delinquency Advances and/or Servicing Advances (“Advance Reimbursement Amounts”). If the Servicer enters into such an Advance Facility pursuant
to this Section 5.24, upon reasonable request of the Advancing Person, the Indenture Trustee shall execute a letter of acknowledgment, as prepared by the Servicer confirming its receipt of written notice of the existence of such Advance
Facility. To the extent that an Advancing Person purchases or funds any Delinquency Advance or any Servicing Advance and provides the Indenture Trustee with written notice acknowledged by the Servicer that such 

  

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Advancing Person is entitled to reimbursement directly from the Indenture Trustee pursuant to the terms of the Advance Facility, such Advancing Person shall
be entitled to receive reimbursement pursuant to this Agreement for such amount to the extent provided in Section 5.24(b). Such notice from the Advancing Person must specify the amount of the reimbursement, the Section of this Agreement that
permits the applicable Delinquency Advance or Servicing Advance to be reimbursed and the section(s) of the Advance Facility that entitle the Advancing Person to request reimbursement from the Indenture Trustee, rather than the Servicer, and include
the Servicer’s acknowledgment thereto or proof of an Event of Default under the Advance Facility. The Indenture Trustee shall have no duty or liability with respect to any calculation of any reimbursement to be paid to an Advancing Person and
shall be entitled to rely without independent investigation on the Advancing Person’s notice provided pursuant to this Section 5.24. For the avoidance of doubt, an Advancing Person whose obligations under the Advance Facility are limited
to the funding of Delinquency Advances and/or Servicing Advances shall not be considered to be a subservicer hereunder. 
 (b)
Notwithstanding the foregoing, and for the avoidance of doubt, (i) the Servicer and/or the Servicer’s Assignee shall only be entitled to reimbursement of Delinquency Advance reimbursement amounts hereunder from withdrawals from the
Collection Account pursuant to Section 5.03(b) and (c) of this Agreement and shall not otherwise be entitled to make withdrawals or receive amounts that shall be deposited in the Payment Account, and (ii) none of the Indenture Trustee
or the Noteholders shall have any right to, or otherwise be entitled to, receive any Delinquency Advance reimbursement amounts to which the Servicer or Servicer’s Assignee, as applicable, shall be entitled pursuant to Section 5.03(b) and
(c) hereof. An Advance Facility may be terminated by the joint written direction of the Servicer and the related Advancing Person. Written notice of such termination shall be delivered to the Indenture Trustee in the manner set forth in
Section 10.06 hereof. Neither the Issuing Entity nor the Indenture Trustee shall, as a result of the existence of any Advance Facility, have any additional duty or liability with respect to the calculation or payment of any Delinquency Advance
reimbursement amount, nor, as a result of the existence of any Advance Facility, shall the Issuing Entity or the Indenture Trustee have any additional responsibility to track or monitor the administration of the Advance Facility or the payment of
Delinquency Advance reimbursement amounts to the Servicer’s Assignee. The Servicer shall indemnify the Indenture Trustee, any successor Servicer and the Issuing Entity for any claim, loss, liability or damage resulting from any claim by the
related Advancing Person, except to the extent that such claim, loss, liability or damage resulted from or arose out of negligence, recklessness or willful misconduct on the part of the Indenture Trustee or any successor Servicer, as the case may
be, or failure by the successor Servicer to remit funds as required by this Agreement or the commission of an act or omission to act by the successor Servicer and the passage of any applicable cure or grace period, such that an Event of Default
under this Agreement occurs or such entity is subject to termination for cause under this Agreement. The Servicer shall maintain and provide to any successor Servicer and, upon request, the Indenture Trustee a detailed accounting on a loan-by-loan
basis as to amounts advanced by, pledged or assigned to, and reimbursed to any Advancing Person. The successor Servicer and the Indenture Trustee, as applicable, shall be entitled to rely on any such information provided by the predecessor Servicer,
and the successor Servicer and the Indenture Trustee, as applicable, shall not be liable for any errors in such information. 
  

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 (c) If an Advancing Person is entitled to reimbursement for any particular Delinquency Advance or
Servicing Advance as set forth in Section 5.24(a), then the Servicer shall not be permitted to reimburse itself therefor under Section 5.03(b) and (c), but instead the Servicer shall include such amounts in the applicable remittance to the
Indenture Trustee made pursuant to Section 5.02 to the extent of amounts on deposit in the Collection Account on the related Servicer Remittance Date. The Indenture Trustee is hereby authorized to pay to an Advancing Person reimbursements for
Delinquency Advances and Servicing Advances from the Payment Account to the same extent the Servicer would have been permitted to reimburse itself for such Delinquency Advances and/or Servicing Advances in accordance with Section 5.03(b) and
(c), had the Servicer made such Delinquency Advance or Servicing Advance. 
 (d) All Delinquency Advances and Servicing Advances made
pursuant to the terms of this Agreement shall be deemed made and shall be reimbursed on a “first in first out” (FIFO) basis. In the event the Servicer’s Assignee shall have received some or all of an Delinquency Advance reimbursement
amount related to Delinquency Advances and/or Servicing Advances that were made by a Person other than the Servicer or its related Advancing Person in error, then such Servicer’s Assignee shall be required to remit any portion of such
Delinquency Advance reimbursement amount to each Person entitled to such portion of such Delinquency Advance reimbursement amount. Without limiting the generality of the foregoing, the Servicer shall remain entitled to be reimbursed pursuant to
Section 5.03(b) and (c) for all Delinquency Advances and/or Servicing Advances funded by the Servicer to the extent the related Delinquency Advance reimbursement amounts have not been assigned, sold or pledged to such Advancing Person or
Servicer’s Assignee. 
 (e) In the event the Servicer is terminated pursuant to Section 7.01, the Advancing Person shall succeed to
the terminated Servicer’s right of reimbursement set forth in Section 5.03(b) and (c) to the extent of such Advancing Person’s financing of Delinquency Advances or Servicing Advances hereunder then remaining unreimbursed.

 (f) Any amendment to this Section 5.24 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 5.24, including amendments to add provisions relating to a successor Servicer, may be entered into by the Indenture Trustee, the Sponsor, the Depositor, the Issuing Entity and
the Servicer without the consent of any Noteholder, provided such amendment complies with Section 10.03 hereof. All reasonable costs and expenses (including attorneys’ fees) of each party hereto of any such amendment shall be borne solely
by the Servicer. The parties hereto hereby acknowledge and agree that: (a) the Delinquency Advances and/or Servicing Advances financed by, sold and/or pledged to an Advancing Person under any Advance Facility are obligations owed to the
Servicer payable only from the cash flows and proceeds received under this Agreement for reimbursement of Delinquency Advances and/or Servicing Advances only to the extent provided herein, and the Indenture Trustee and the Issuing Entity are not, as
a result of the existence of any Advance Facility, obligated or liable to repay any Delinquency Advances and/or Servicing Advances financed by the Advancing Person; (b) the Servicer will be responsible for remitting to the Advancing Person the
applicable amounts collected by it as reimbursement for Delinquency Advances and/or Servicing Advances purchased or funded by the Advancing Person, subject to the provisions of this Agreement; and (c) the Indenture Trustee shall not have any
responsibility to track or monitor the administration of the financing arrangement between the Servicer and any Advancing Person. 
  

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 ARTICLE VI 
 APPLICATION OF FUNDS 
 Section 6.01. Deposits to the Payment Account. By 12:00 noon
(Eastern Time) on each Servicer Remittance Date, the Servicer shall remit to the Indenture Trustee for deposit in the Payment Account, from funds on deposit in the Collection Account, an amount equal to the Servicer Remittance Amount with respect to
the related Payment Date, minus any portion thereof payable to the Servicer pursuant to Section 5.03. 
 Section 6.02.
Collection of Money. Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery of all money and other property payable to or receivable by the Indenture Trustee pursuant to this Agreement, including
all payments due on the Mortgage Loans in accordance with the respective terms and conditions of such Mortgage Loans and required to be paid over to the Indenture Trustee by the Servicer. The Indenture Trustee shall hold all such money and property
received by it, as part of the Trust Estate and shall apply it as provided in the Indenture. 
 Section 6.03. Application of
Principal and Interest. In the event that Net Liquidation Proceeds on a Liquidated Mortgage Loan are less than the Principal Balance of the related Mortgage Loan plus accrued interest thereon, or any Mortgagor makes a partial payment of any
Monthly Payment due on a Mortgage Loan, such Net Liquidation Proceeds or partial payment shall be applied to payment of the related Mortgage Note as provided therein, and if not so provided, first to interest accrued at the Mortgage Interest Rate
and then to principal. 
 Section 6.04. [Reserved.] 
 Section 6.05. Compensating Interest. Not later than the Servicer Remittance Date, the Servicer shall remit to the Indenture Trustee (without right to reimbursement therefor) for deposit into the Payment
Account, an amount equal to, for all of the Mortgage Loans, the lesser of (a) the Prepayment Interest Shortfalls for all of the Mortgage Loans for the related Payment Date resulting from Principal Prepayments in full during the related
Prepayment Period and (b) its aggregate Servicing Fee with respect to all of the Mortgage Loans for the related Due Period (the “Compensating Interest”). 
 ARTICLE VII 
 SERVICER DEFAULT 
 Section 7.01. Servicer Events of Default. (a) The following events shall each constitute a “Servicer Event of Default”
hereunder: 
 (i) any failure by the Servicer to remit to the Indenture Trustee any payment required to be made by the
Servicer under the terms of this Agreement (other than Servicing Advances covered by clause (ii) below and Delinquency Advances, which 

  

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shall have no cure period), which continues unremedied for one (1) Business Day after the date upon which notice of such failure, requiring the same to
be remedied, shall have been given to the Servicer by the Indenture Trustee or to the Servicer and Indenture Trustee by the Noteholders affected thereby evidencing Percentage Interests of at least 25%; provided however that any failed remittance
cured within one Business Day of such failure shall include interest accrued at the Prime Rate (as set forth in the Wall Street Journal) on the amount of such remittance from and including the date the remittance was required to be made to and
including the date the remittance was actually made; 
 (ii) the failure by the Servicer to make any required Servicing
Advance, which failure continues unremedied for a period of thirty (30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Indenture Trustee or to the
Servicer and the Indenture Trustee by the Noteholders affected thereby evidencing Percentage Interests of at least 25%; 
 (iii) any failure on the part of the Servicer duly to observe or perform in any material respect any other covenants or agreements on the part of the Servicer contained in this Agreement, or the failure of any representation and warranty
made pursuant to Section 3.01(a) hereof to be true and correct which continues unremedied for a period of thirty (30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to
the Servicer by the Indenture Trustee or to the Servicer and the Indenture Trustee by the Noteholders affected thereby evidencing Percentage Interests of at least 25%; 
 (iv) a decree or order of a court or agency or supervisory authority having jurisdiction in an involuntary case under any present or
future federal or state bankruptcy, insolvency or similar law or for the appointment of a conservator or receiver or liquidation in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against the Servicer and such decree or order shall have remained in force, undischarged or unstayed for a period of ninety (90) days; 
 (v) the 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 Servicer or of or relating to all or substantially all of the Servicer’s property; 
 (vi) the Servicer shall admit in writing its inability generally to pay its debts as they become due, file a petition to take advantage of
any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations; 
 (vii) if on any Payment Date the Rolling Six Month Delinquency Ratio exceeds 23.80%; 
  

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 (viii) if on any Payment Date, the Cumulative Realized Loss Percentage exceeds the
following percentages on any Payment Date during the following periods: 
  

				
	 Payment Date Occurring During
	  	Percentage	 
	 July 2009 to June 2010
	  	6.50	%
	 July 2010 to June 2011
	  	7.00	%
	 July 2011 to June 2012
	  	7.50	%
	 July 2012 and thereafter
	  	8.00	%

 (ix) the occurrence of an Event of Default under the Indenture. 
 So long as a Servicer Event of Default shall have occurred and not have been remedied: (x) with respect solely to Section 7.01(a)(i), if such
payment is in respect of Delinquency Advances or Compensating Interest owing by the Servicer and such payment is not made by 12:00 noon New York time on the second Business Day prior to the applicable Payment Date, the Indenture Trustee, upon
receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee of such failure, shall give immediate telephonic and facsimile notice of such failure to a Servicing Officer of the Servicer and the Indenture Trustee
may, and upon request of the Holders representing more than 50% of the Class Note Balance, shall, terminate all of the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligation under
Section 5.19, and the Indenture Trustee (if it is the successor servicer) or a successor servicer appointed in accordance with Section 7.02, shall immediately make such Delinquency Advance or payment of Compensating Interest as provided in
Section 7.02 and assume, pursuant to Section 7.02 hereof, the duties of a successor servicer; (y) with respect to that portion of Section 7.01(a)(i) not referred to in the preceding clause (x) and with respect to clauses
(ii), (iii), (iv), (v), (vi) and (xii) of Section 7.01(a), upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall, but only at the direction of the Majority
Noteholders, by notice in writing to the Servicer and a Responsible Officer of the Indenture Trustee, and in addition to whatever rights such Noteholders may have at law or equity to damages, including injunctive relief and specific performance,
terminate all the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligations under Section 5.19, and in and to the Mortgage Loans and the proceeds thereof, as Servicer; and
(z) with respect to clauses (vii)-(ix) of Section 7.01(a), upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall, after notice in writing to the Servicer and
a Responsible Officer of the Indenture Trustee, terminate all the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligations under Section 5.19, and in and to the Mortgage Loans and
the proceeds thereof, as Servicer. Upon receipt by the Servicer of such written notice, all authority and power of the Servicer under this Agreement, whether with respect to the Mortgage Loans or otherwise, shall, subject to Section 7.02, pass
to and be vested in another successor servicer, and another successor servicer is hereby authorized and empowered to execute and deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, at the expense of the Servicer, any and all
documents and other instruments and do or cause to be done all other acts or things necessary or appropriate to effect the purposes of such notice of termination, including, but not limited to, the transfer and endorsement or assignment of the
Mortgage Loans and related documents. The Servicer agrees to cooperate (and to pay any related costs and expenses) with the Indenture Trustee or another 

  

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successor servicer in effecting the termination of the Servicer’s responsibilities and rights hereunder, including, without limitation, the transfer to
another successor servicer, for administration by it of all amounts which shall at the time be credited by the Servicer to the Collection Account or thereafter received with respect to the Mortgage Loans. The Indenture Trustee shall promptly notify
the Rating Agencies and the Swap Provider of the occurrence of a Servicer Event of Default upon discovery or receipt of notice by a Responsible Officer of the Indenture Trustee; provided, however, the Indenture Trustee shall not be obligated to
monitor the Servicer’s compliance with the terms hereof or to determine the occurrence of any Servicer Event of Default. 
 Section 7.02. Indenture Trustee to Act: Appointment of Successor. (a) (i) On and after the time the Servicer receives a notice of termination pursuant to Section 7.01, or the Indenture Trustee receives the
resignation of the Servicer evidenced by an Opinion of Counsel pursuant to Section 5.21, or the Servicer is removed as Servicer pursuant to this Article VII, in which event the Indenture Trustee shall promptly notify the Rating Agencies, and
except as otherwise provided in this Section 7.02, the Indenture Trustee (provided the Indenture Trustee receives 20 days’ prior written notice) or another successor servicer shall be the successor in all respects to the Servicer in its
capacity as servicer under this Agreement and the transactions set forth or provided for in this Agreement, and shall be subject to all the responsibilities, restrictions, duties, liabilities and termination provisions relating thereto placed on the
Servicer by the terms and provisions of this Agreement. The Indenture Trustee or another successor servicer shall take such action, consistent with this Agreement, as shall be necessary to effect any such succession. If the Indenture Trustee or any
other successor servicer is acting as Servicer hereunder, it shall be subject to termination under Section 7.01 upon the occurrence or continuation of a Servicer Event of Default applicable to it as Servicer. The Indenture Trustee hereby agrees
to act as successor servicer pursuant to the terms of this Agreement upon the termination or resignation of the Servicer as provided in this Section 7.02, provided that the Indenture Trustee receives all of the necessary documents relating to
the Mortgage Loans and computer records reflecting the status of the Mortgage Loans as of the date of such transfer of servicing. The Indenture Trustee and any successor servicer will not be obligated to incur any expenses or costs (including,
without limitation, legal fees and the preparation and recording of all intervening assignments of mortgage) in connection with the transfer of servicing of the Mortgage Loans to the Indenture Trustee, as successor servicer, or any other successor
servicer, as applicable, or to compel the performance of any obligations by any party to this Agreement. Any successor servicer and the Indenture Trustee prior to its becoming the successor servicer shall not be liable for any actions, omissions or
defaults of any servicer prior to it or breaches of representations and warranties of the servicer prior to it. The Indenture Trustee or any other successor servicer, as successor servicer, shall be obligated to pay Compensating Interest pursuant to
Section 6.05 in any event and to make Delinquency Advances pursuant to Section 5.18 unless, and only to the extent the successor servicer determines reasonably and in good faith that such advances would not be recoverable from the proceeds
of the related Mortgage Loan pursuant to Section 5.03, such determination to be evidenced by a certification of a Responsible Officer of the successor servicer delivered to the Indenture Trustee. Furthermore, neither the Indenture Trustee nor
any successor servicer shall be obligated to fund any resulting discrepancy or shortfall in the Collection Account. Upon the transfer of the servicing of the Mortgage Loans, the Indenture Trustee shall provide the successor servicer with an
officer’s certificate that contains: (i) a complete description of all Events of Default by the Servicer under the Agreement of which a 

  

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Responsible Officer of the Indenture Trustee has actual knowledge, which have not been fully cured and (ii) confirmation that the Servicer Remittance
Report and the reports described in Sections 5.09 and 5.10 have been timely filed by the Servicer with the Indenture Trustee. 
 (i) In the event that any successor servicer is terminated or resigns pursuant to this Agreement or otherwise becomes unable to perform its obligations under this Agreement, the Indenture Trustee will appoint a successor servicer in
accordance with the provisions of this Section 7.02; provided, that any successor servicer, shall satisfy the requirements set forth in Section 7.02(b) and shall be approved by the Rating Agencies. 
 (b) Any successor servicer hereunder (other than the Indenture Trustee) shall be a housing and home finance institution, bank or mortgage servicing
institution which has been designated as an approved seller-servicer by Fannie Mae or Freddie Mac, having equity of not less than $5,000,000 as determined in accordance with GAAP, as the successor to the Servicer hereunder in the assumption of all
or any part of the responsibilities, duties or liabilities of the Servicer hereunder. 
 (c) In the event the Indenture Trustee is the
successor servicer, it shall be entitled to the same Servicing Compensation (including the Servicing Fee as adjusted pursuant to the definition thereof) and other funds pursuant to Section 5.08 hereof as the Servicer if the Servicer had
continued to act as servicer hereunder. 
 (d) The Indenture Trustee and any successor servicer shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession. The Servicer agrees to cooperate with the Indenture Trustee and any successor servicer in effecting the termination of the Servicer’s servicing responsibilities and rights
hereunder and shall promptly provide the Indenture Trustee, or such successor servicer, as applicable, at the Servicer’s cost and expense, all documents and records reasonably requested by it to enable it to assume the Servicer’s functions
hereunder and shall promptly also transfer to the Indenture Trustee, or such successor servicer, as applicable, all amounts that then have been or should have been deposited in the Collection Account by the Servicer or that are thereafter received
with respect to the Mortgage Loans, including without limitation all Liquidation Proceeds and Insurance Proceeds, and payments of insurance deductible amounts by the Servicer pursuant to Section 5.04(b) with respect to all insurance claims
arising during the Servicer’s tenure. Any collections received by the Servicer after such removal or resignation shall be endorsed by it to the Indenture Trustee or a successor servicer, as applicable, and remitted directly to the Indenture
Trustee (or, at the direction of the Indenture Trustee, to any other successor servicer). Neither the Indenture Trustee nor any other successor servicer shall be held liable by reason of any failure to make, or any delay in making, any payment
hereunder or any portion thereof caused by (i) the failure of the Servicer to deliver, or any delay in delivering, cash, documents or records to it, or (ii) restrictions imposed by any regulatory authority having jurisdiction over the
Servicer hereunder. The Servicer shall not resign as Servicer until a successor servicer has been appointed. 
 (e) In the event that the
Servicer is terminated hereunder and no successor servicer has been appointed hereunder, the Indenture Trustee may appoint a successor servicer 

  

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(which may be an affiliate of the Indenture Trustee) or petition a court of competent jurisdiction to appoint a successor servicer. Pending appointment of
such a successor servicer hereunder, the Indenture Trustee shall be the successor servicer and act in such capacity; provided, however, that the Indenture Trustee, in its capacity as successor servicer pending appointment of another successor
servicer, (i) shall be obligated to make Delinquency Advances or Servicing Advances only to the extent that the Indenture Trustee deems such advances to be recoverable, (ii) shall be obligated to make Compensating Interest payments in
respect of any Payment Date only to the extent of any Servicing Fee received by the Indenture Trustee in respect of such Payment Date, (iii) shall not be obligated to perform any other duties or obligations of the Servicer hereunder until the
Indenture Trustee has received all servicing records and files from the predecessor servicer and in no event later than 90 days following the termination of the Servicer; provided, however, the Indenture Trustee shall use its reasonable efforts to
perform the duties and obligations of the Servicer prior to the end of such 90 day period, (iv) shall not be obligated to perform any of the administrative duties specified in Section 5.23 hereof, and (v) shall be entitled to payment
of all Servicing Compensation. In connection with any appointment and assumption of duties of a successor servicer, the Indenture Trustee may make such arrangements for the compensation of such successor servicer out of payments on Mortgage Loans;
provided, however, that such compensation may not be in excess of that permitted the Servicer pursuant to Section 5.08, together with other Servicing Compensation. The Servicer, the Indenture Trustee and such successor Servicer shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any such succession. 
 (f) In the event the Indenture Trustee,
or any successor servicer incurs out-of-pocket expenses other than Servicing Advances or Delinquency Advances in connection with the transfer of servicing hereunder, which expenses are required to be borne by the Servicer hereunder, and such
expenses are not promptly reimbursed by the Servicer or recoverable out of amounts reimbursable to the Servicer out of the Collection Account, the Indenture Trustee shall make such reimbursement to the applicable party out of funds in the Payment
Account on any Payment Date after all Payments to Noteholders on such Payment Date have been made but before any distribution to the Certificateholders. The right of the Indenture Trustee to reimbursement from the Payment Account for any of the
Indenture Trustee’s costs and expenses in connection with the transfer of any servicing hereunder shall be in addition to any rights of the Indenture Trustee to indemnification and reimbursement under the Indenture. 
 (g) In the event that the Servicer is terminated or resigns hereunder, and at such time the Servicer has made unreimbursed Delinquency Advances or
Servicing Advances out of its own funds, 
 (i) any such Delinquency Advances or Servicing Advances shall be allocated by the
successor servicer in whole or in part to specific Mortgage Loans which are delinquent at the time of the transfer of servicing, which allocation shall be based on loan-level accounts of the portion of each Delinquency Advance or Servicing Advance
which has been funded by the Servicer from its own funds consistently maintained by the former Servicer, or, if no such accounts exist, then in the successor servicer’s discretion; 
 (ii) following the transfer of servicing, the successor servicer shall reimburse the former Servicer for such Delinquency Advances and
Servicing Advances 

  

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in accordance with the allocations determined in accordance with clause (i) above only out of the proceeds of the Mortgage Loans to which they relate
and otherwise subject to Section 5.03, or, to the extent the successor servicer determines any such Delinquency Advance or Servicing Advance to be a Nonrecoverable Advance, out of any funds in the Collection Account. 
 (h) In connection with the termination or resignation of the Servicer hereunder, the successor Servicer shall represent and warrant that it is a member
of MERS in good standing and shall agree to comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Mortgage Loans that are registered with MERS, in which case the predecessor Servicer shall
cooperate with the successor Servicer in causing the MERS System to be revised to reflect the transfer of servicing to the successor Servicer as necessary under MERS’ rules and regulations. 
 Section 7.03. Waiver of Defaults. The Majority Noteholders may, on behalf of all Noteholders, waive any events permitting removal of the
Servicer as servicer pursuant to this Article VII; provided, however, that the Majority Noteholders may not waive a default in making a required payment on a Note without the consent of the Holder of such Note. Upon any waiver of a
past default, such default shall cease to exist, and any Servicer Event of Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default or impair
any right consequent thereto except to the extent expressly so waived. Notice of any such waiver shall be given by the Indenture Trustee to the Rating Agencies. 
 ARTICLE VIII 
 TERMINATION 
 Section 8.01. Termination. (a) Subject to Section 8.02, this Agreement shall terminate upon notice to the Indenture Trustee of
either: (i) the disposition of all funds with respect to the last Mortgage Loan and the remittance of all funds due hereunder and the payment of all amounts due and payable to the Indenture Trustee or (ii) mutual consent of the Owner
Trustee, on behalf of the Issuing Entity, at the direction of all the Certificateholders, the Indenture Trustee, the Servicer, the Swap Provider (if the Swap Agreement is still outstanding) and all Noteholders in writing. 
 (b) In addition, subject to Section 8.02, the Sponsor may, at its sole option, cost and expense, terminate the Issuing Entity in accordance with the
terms of Section 10.01 of the Indenture. 
 (c) If on any date, the Servicer determines that there are no outstanding Mortgage Loans and
no other funds or assets in the Trust Estate other than funds in the Payment Account, the Servicer shall send a final payment notice promptly to the Indenture Trustee, who shall forward notice to each Noteholder in accordance with
Section 8.01(d). 
 (d) Notice of any termination, specifying the Payment Date upon which the Issuing Entity will terminate and the
Noteholders shall surrender their Notes to the Indenture 

  

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Trustee for final payment and cancellation, shall be given promptly by the Servicer to the Indenture Trustee, who shall forward the notice by letter to
Noteholders mailed during the month of such final payment before the Servicer Remittance Date in such month, specifying (i) the Payment Date upon which final payment of the Notes will be made upon presentation and surrender of Notes at the
office of the Indenture Trustee therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, payments being made only upon presentation and
surrender of the Notes at the office of the Indenture Trustee therein specified. 
 (e) In the event that all of the Noteholders do not
surrender their Notes for cancellation within six (6) months after the time specified in the above-mentioned written notice, the Indenture Trustee shall give a second written notice to the remaining Noteholders to surrender their Notes for
cancellation and receive the final payment with respect thereto. If within six (6) months after the second notice, all of the Notes shall not have been surrendered for cancellation, the Indenture Trustee may take appropriate steps, or may
appoint an agent to take appropriate steps, to contact the remaining Noteholders concerning surrender of their Notes and the cost thereof shall be paid out of the funds and other assets which remain subject hereto. If within nine (9) months
after the second notice all the Notes shall not have been surrendered for cancellation, the Certificateholders shall be entitled to all unclaimed funds and other assets which remain subject hereto and the Indenture Trustee upon transfer of such
funds shall be discharged of any responsibility for such funds and the Noteholders shall look only to the Certificateholders for payment. Such funds shall remain uninvested. 
 Section 8.02. Additional Termination Requirements. By their acceptance of the Notes, the Holders thereof hereby agree to appoint the Servicer
as their attorney in fact to: (i) adopt a plan of complete liquidation (and the Noteholders hereby appoint the Indenture Trustee as their attorney in fact to sign such plan) as appropriate and (ii) to take such other action in connection
therewith as may be reasonably required to carry out such plan of complete liquidation all in accordance with the terms hereof. 
 Section 8.03. Accounting Upon Termination of Servicer. Upon termination of the Servicer, the Servicer shall, at its expense: 
 (a) deliver to the successor servicer or, if none shall yet have been appointed, to the Indenture Trustee, the funds in any Account administered by the Servicer; 
 (b) deliver to the successor servicer or, if none shall yet have been appointed, to the Indenture Trustee all Mortgage Files and related documents and statements held by it hereunder and a Mortgage Loan portfolio
computer tape; 
 (c) deliver to the successor servicer, or, if none shall yet have been appointed, to the Indenture Trustee a full
accounting of all funds, including a statement showing the Monthly Payments collected by it and a statement of monies held in trust by it for the payments or charges with respect to the Mortgage Loans; and 
 (d) execute and deliver such instruments and perform all acts reasonably requested in order to effect the orderly and efficient transfer of servicing of
the Mortgage Loans to the successor servicer and to more fully and definitively vest in such successor all rights, powers, duties, responsibilities, obligations and liabilities of the Servicer under this Agreement. 
  

 62 

 ARTICLE IX 
 [RESERVED] 
 ARTICLE X 
 MISCELLANEOUS PROVISIONS 
 Section 10.01. Limitation on Liability.
(a) None of the Issuing Entity, the Owner Trustee, the Depositor, the Sponsor, the Servicer, the Indenture Trustee or any of the directors, officers, employees or agents of such Persons shall be under any liability to the Issuing Entity, the
Noteholders 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 Issuing Entity, the
Owner Trustee, the Depositor, the Sponsor, the Servicer, the Indenture Trustee or any such Person against liability for any breach of warranties or representations made herein by such party, or against any specific liability imposed on each such
party pursuant to this Agreement or against any liability which would otherwise be imposed upon such party by reason of willful misfeasance, bad faith or negligence in the performance of duties or by reason of failure to perform its obligations or
duties hereunder. The Issuing Entity, the Owner Trustee, the Depositor, the Sponsor, the Servicer, the Indenture Trustee and any director, officer, employee or agent of such Person may rely in good faith on any document of any kind which, prima
facie, is properly executed and submitted by any appropriate Person respecting any matters arising hereunder. 
 (b) It is expressly
understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by U.S. Bank Trust National Association, not individually or personally but solely as Owner Trustee under the Trust Agreement, in the exercise of the
powers and authority conferred and vested in it under the Trust Agreement, (ii) each of the representations, undertakings and agreements herein made on the part of the Issuing Entity is made and intended not as personal representations,
undertakings and agreements by U.S. Bank Trust National Association but is made and intended for the purpose for binding only the Issuing Entity, (iii) nothing herein contained shall be construed as creating any liability on U.S. Bank Trust
National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the
parties hereto and (iv) under no circumstances shall U.S. Bank Trust National Association be personally liable for the payment of any indebtedness or expenses of the Issuing Entity or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuing Entity under this Agreement or any other related documents. 
 Section 10.02. Acts of Noteholders. (a) Subject to Section 7.04 and except as otherwise specifically provided herein, whenever Noteholder action, consent or approval is required under this Agreement, such action,
consent or approval shall be deemed to have been taken or given on behalf of, and shall be binding upon, all Noteholders if the Majority Noteholders agree to take such action or give such consent or approval. 
  

 63 

 (b) The death or incapacity of any Noteholder shall not operate to terminate this Agreement or the
Issuing Entity, nor entitle such Noteholder’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 Issuing Entity, nor otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them. 
 (c) No Noteholder shall have any right to vote (except as expressly
provided for herein) or in any manner otherwise control the operation and management of the Issuing Entity, or the obligations of the parties hereto, nor shall anything herein set forth, or contained in the terms of the Notes, be construed so as to
constitute the Noteholders from time to time as partners or members of an association; nor shall any Noteholder be under any liability to any third person by reason of any action taken by the parties to this Agreement pursuant to any provision
hereof. 
 Section 10.03. Amendment. (a) This Agreement may be amended from time to time by the Owner Trustee, on behalf of
the Issuing Entity, the Servicer, the Depositor, Sponsor and the Indenture Trustee by written agreement, without notice to or consent of the Noteholders and without the consent of the Swap Provider to cure any ambiguity, to correct or supplement any
provisions herein, to comply with any changes in the Code, or to make any other provisions with respect to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of this Agreement; provided,
however, that such action shall not adversely affect in any material respect the interests of any Noteholder or the Swap Provider and will not prevent the Notes from being characterized as debt for United States federal income tax purposes or
cause the Issuing Entity to be subject to federal income tax, as evidenced by (i) an Opinion of Counsel, at the expense of the party requesting the change, delivered to the Indenture Trustee to such effect or (ii) a letter from each Rating
Agency confirming that such action will not result in the reduction, qualification or withdrawal of the then-current ratings on the Notes. The Indenture Trustee shall give prompt written notice to the Rating Agencies and the Swap Provider of any
amendment made pursuant to this Section 10.03. 
 (b) This Agreement may be amended from time to time by the Owner Trustee, on behalf of
the Issuing Entity, the Servicer, the Depositor, the Sponsor and the Indenture Trustee, with the consent of the Noteholders representing more than 50% of the outstanding Principal Balance of the Notes of each affected Class and all of the
Certificateholders and with the consent of the Swap Provider (if the Swap Agreement is still outstanding and affected); provided, however, that no such amendment shall reduce in any manner the amount of, or delay the timing of,
payments received on Mortgage Loans which are required to be paid on any Class of Notes without the consent of the Holders of such Class of Notes or reduce the percentage for the Holders of which are required to consent to any such amendment without
the consent of the Holders of 100% of such Class of Notes affected thereby. 
 (c) Notwithstanding the provisions of this Section 10.03,
Section 5.11 may be amended as necessary to comply with the provisions of Regulation AB without the consent of the Noteholders. 
  

 64 

 (d) It shall not be necessary for the consent of Holders under this Section 10.03 to approve the
particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof. 
 (e) In
executing, or accepting the additional trusts created by, any supplemental indenture permitted by Article IX of the Indenture or the modifications thereby of the trusts created by the Indenture, the Indenture Trustee shall be entitled to receive,
and (subject to Section 6.01 of the Indenture) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by the 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 or immunities under the Indenture or otherwise. The Servicer, on behalf of the Issuing Entity, shall cause executed
copies of any supplemental indentures to be delivered to the Rating Agencies. 
 Section 10.04. Recordation of Agreement. To the
extent permitted by applicable law, this Agreement, or a memorandum thereof if permitted under applicable law, is subject to recordation in all appropriate public offices for real property records in all of the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are situated, and in any other appropriate public recording office or elsewhere, such recordation to be effected by the Servicer at the Noteholders’ expense on
direction and at the expense of Majority Noteholders requesting such recordation, but only when accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Noteholders or is
necessary for the administration or servicing of the Mortgage Loans. 
 Section 10.05. Duration of Agreement. This Agreement
shall continue in existence and effect until terminated as herein provided. 
 Section 10.06. Notices. All demands, notices and
communications hereunder shall be in writing and shall be deemed to have been duly given when delivered to (i) in the case of the Servicer, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego, California 92128, Attention: Director
of Operations with a copy to General Counsel; (ii) in the case of the Issuing Entity, Accredited Mortgage Loan Trust 2006-2, c/o the Owner Trustee at its Corporate Trust Office, Attention: Corporate Trust Administration; (iii) in the case
of the Indenture Trustee, Deutsche Bank National Trust Company, 1761 East St. Andrew Place, Santa Ana, CA 92705-4934, Attn: Trust Administration – AC0602, provided, however, all reports, statements, certifications and information required to be
provided to the Indenture Trustee pursuant to Sections 5.09, 5.10 and 5.11 shall be electronically forwarded to DBSEC.Notifications@db.com; (iv) in the case of the Sponsor, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego,
California 92128, Attention: Investor Reporting; (v) in the case of the Underwriter, Goldman, Sachs & Co., 85 Broad Street, New York, New York 10004, (vi) in the case of Standard & Poor’s Rating Services, 55 Water
Street, New York, New York 10004, Attention: Residential Mortgage Surveillance Group; (vii) in the case of Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention: RMBS Monitoring Department, 4th Floor;
(viii) in the case of the Depositor, Accredited Mortgage Loan REIT Trust, 15090 Avenue of Science, San Diego, California 92128, Attention: General Counsel; (ix) in the case of the Swap Provider, Barclays Bank PLC, 200 Park Avenue, 4th
Floor, New York, New York 10166, Attention: General Counsel and (x) in the case of the Noteholders, as set forth in the Note 

  

 65 

 
Register. Any such notices shall be deemed to be effective with respect to any party hereto upon the receipt of such notice by such party, except that
notices to the Noteholders shall be effective upon mailing or personal delivery. 
 Section 10.07. Severability of Provisions. If
any one or more of the covenants, agreements, provisions or terms of this Agreement shall be held invalid for any reason whatsoever, 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 covenants, agreements, provisions or terms of this Agreement. 
 Section 10.08. No Partnership. Nothing herein contained shall be deemed or construed to create a co-partnership or joint venture between the
parties hereto and the services of the Servicer shall be rendered as an independent contractor and not as agent for the Noteholders. 
 Section 10.09. Counterparts. This Agreement 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 agreement. 
 Section 10.10. Successors and Assigns. This Agreement
shall inure to the benefit of and be binding upon the Issuing Entity, the Servicer, the Depositor, the Sponsor, the Indenture Trustee and the Noteholders and their respective successors and permitted assigns. 
 Section 10.11. Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only and
shall not be deemed to be part of this Agreement. 
 Section 10.12. No Petition. The Servicer, by entering into this Agreement
hereby covenants and agrees, and the Noteholders, by the acceptance of their Notes are deemed to covenant and agree, that they will not at any time institute against the Issuing Entity, or join in any institution against the Issuing Entity of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States Federal or state bankruptcy law in connection with any obligations relating to the Certificates, the Notes, this Agreement
or any of the other Basic Documents. 
 This Section 10.12 will survive for one year and one day following the termination of this
Agreement. 
 Section 10.13. Third Party Beneficiary. The parties agree that each of the Owner Trustee and the Swap Provider (if
the Swap Agreement is still outstanding) is intended and shall have all rights of a third-party beneficiary of this Agreement. 
 Section 10.14. Intent of the Parties. It is the intent of the parties hereto and Noteholders that, for federal income taxes, state and local income or franchise taxes and other taxes imposed on or measured by income, the Notes
be treated as debt. The parties to this Agreement and the Holder of each Note, by acceptance of its Note, and each Beneficial Owner thereof, agree to treat, and to take no action inconsistent with the treatment of, the related Notes in accordance
with the preceding sentence for purposes of federal income taxes, state and local income and franchise taxes and other taxes imposed on or measured by income. 
  

 66 

 Section 10.15. Compliance With Regulation AB. Each of the parties hereto acknowledges and
agrees that the purpose of Sections 5.10 and 5.11 of this Agreement is to facilitate compliance by the Sponsor and the Depositor with the provisions of Regulation AB, as such may be amended or clarified from time to time. Therefore, each of the
parties agrees that (a) the obligations of the parties hereunder shall be interpreted in such a manner as to accomplish compliance with Regulation AB, (b) the parties’ obligations hereunder will be supplemented and modified as
necessary to be consistent with any such amendments, interpretive advice or guidance, convention or consensus among active participants in the asset-backed securities markets, advice of counsel, or otherwise in respect of the requirements of
Regulation AB and (c) the parties shall comply, to the extent practicable from a timing and information systems perspective, with requests made by the Sponsor or the Depositor for delivery of additional or different information as the Sponsor
or the Depositor may determine in good faith is necessary to comply with the provisions of Regulation AB. 
 Section 10.16. GOVERNING
LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AS OPPOSED TO CONFLICT OF LAWS PROVISIONS) OF THE STATE OF NEW YORK. 
 (b) THE TRUST, THE SERVICER, THE DEPOSITOR, THE SPONSOR, THE INDENTURE TRUSTEE HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY, AND WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED
TO THE ADDRESS SET FORTH IN SECTION 10.06 HEREOF AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN DEPOSITED IN THE U.S. MAILS, POSTAGE PREPAID. THE ISSUER, THE DEPOSITOR, THE SPONSOR, THE SERVICER
AND THE INDENTURE TRUSTEE EACH HEREBY WAIVE ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE
COURT. NOTHING IN THIS SECTION 10.15 SHALL AFFECT THE RIGHT OF THE ISSUER, THE DEPOSITOR, THE SPONSOR, THE SERVICER OR THE INDENTURE TRUSTEE TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT ANY OF THEIR RIGHTS TO BRING ANY
ACTION OR PROCEEDING IN THE COURTS OF ANY OTHER JURISDICTION. 
 (c) THE ISSUER, THE DEPOSITOR, THE SPONSOR, THE SERVICER, THE INDENTURE
TRUSTEE AND THE SWAP PROVIDER EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE ARISING OUT OF, CONNECTED WITH, RELATED TO, OR IN CONNECTION WITH THIS AGREEMENT.

  

 67 

 
INSTEAD, ANY DISPUTE WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY. 
 [Remainder of Page Intentionally Left Blank] 
  

 68 

 IN WITNESS WHEREOF, the Servicer, the Issuing Entity, the Indenture Trustee, the Depositor and the
Sponsor have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written. 
  

			
	 ACCREDITED HOME LENDERS, INC.,
 as Sponsor
and Servicer

		
	By:	 	 /s/ Charles O. Ryan

	Name:	 	Charles O. Ryan
	Title:	 	Securitization Coordinator
	
	 ACCREDITED MORTGAGE LOAN
 TRUST
2006-2

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

		
	By:	 	 /s/ Patricia M. Child

	Name:	 	Patricia M. Child
	Title:	 	Vice President
	
	ACCREDITED MORTGAGE LOAN REIT TRUST as Depositor
		
	By:	 	 /s/ Melissa Dant

	Name:	 	Melissa Dant
	Title:	 	 Senior Secondary Markets Counsel,
 Ass’t Vice
President, and Ass’t Secretary

	
	 DEUTSCHE BANK NATIONAL TRUST COMPANY,
 as
Indenture Trustee

		
	By:	 	 /s/ Barbara Campbell

	Name:	 	Barbara Campbell
	Title:	 	Vice President
		
	By:	 	 /s/ Karlene Benvenuto

	Name:	 	Karlene Benvenuto
	Title:	 	Authorized Signer

 [Signature Page to Sale and Servicing Agreement] 
  

 69 

 SCHEDULE I 
 MORTGAGE LOAN SCHEDULE 
 [Delivered to the Sponsor, the Servicer, the Depositor and the Trustee at the
Closing] 
  

 A-1 

 APPENDIX I 
 DEFINED TERMS 
 [See Appendix I to Indenture] 

 EXHIBIT A 
 CONTENTS OF THE MORTGAGE FILE 
 With respect to each Mortgage Loan, the Mortgage File shall include each of
the following items (copies to the extent the originals have been delivered to the Indenture Trustee for the benefit of the Noteholders, pursuant to Section 2.05 of the Sale and Servicing Agreement), all of which shall be available for
inspection by the Noteholders, to the extent required by applicable laws: 
 1. the original Mortgage Note, endorsed without recourse in blank
from the last endorsee thereof, including all intervening endorsements showing a complete chain of endorsement; 
 2. the related original
Mortgage with evidence of recording indicated thereon or a copy thereof certified by the applicable recording office and if the Mortgage Loan is registered on the MERS System, such Mortgage or an assignment of the Mortgage shall reflect MERS as the
mortgagee of record and shall include the MIN for such Mortgage Loan; 
 3. each intervening mortgage assignment, with evidence of recording
indicated thereon or if the original is not available, a copy thereof certified by the applicable recording office, if any, showing a complete chain of assignment from the last assignee thereof of the related Mortgage Loan to the Sponsor (or to
MERS, if the Mortgage Loan is registered on the MERS System), and noting the presence of a MIN (if the Mortgage Loan is registered on the MERS System) (which assignment may, at the Sponsor’s option, be combined with the assignment referred to
in subpart (4) hereof, in which case it must be in recordable form, but need not have been previously recorded); 
 4. unless the
Mortgage Loan is recorded on the MERS System, a mortgage assignment in recordable form (which, if acceptable for recording in the relevant jurisdiction as evidenced by an Opinion of Counsel addressed to the Indenture Trustee, may be included in a
blanket assignment or assignments) of each Mortgage from the Sponsor to the Indenture Trustee; 
 5. originals of all assumption,
modification and substitution agreements in those instances where the terms or provisions of a Mortgage or Mortgage Note have been modified or such Mortgage or Mortgage Note has been assumed (if any); and 
 6. an original title insurance policy or title opinion (or (A) a copy of the title insurance policy or title opinion, or (B) the related
binder, commitment or preliminary report, or copy thereof in which case the Sponsor hereby certifies that the original Mortgage has been delivered to the title insurance company that issued such binder, commitment or preliminary report). 

 

 A-1 

 In instances where the original recorded Mortgage or any intervening mortgage assignment or a completed
assignment of the Mortgage in recordable form cannot be delivered by the Sponsor to the Indenture Trustee prior to or concurrently with the execution and delivery of this Agreement, due to a delay in connection with recording, the Sponsor may:

 (a) with respect to item (3) above, in lieu of delivering such original recorded Mortgage or intervening mortgage assignment, deliver
to the Indenture Trustee, a copy thereof; provided, that the Sponsor certifies that the original Mortgage has been delivered to a title insurance company for recordation after receipt of its policy of title insurance or the related binder,
commitment or preliminary report; and 
 (b) in lieu of delivering the completed assignment in recordable form, deliver to the Indenture
Trustee, the assignment in recordable form, otherwise complete except for recording information. 
  

 A-2 

 EXHIBIT B 
 [RESERVED] 
  

 B-1 

 EXHIBIT C 
 INDENTURE TRUSTEE’S ACKNOWLEDGEMENT OF RECEIPT 
 June [    ],
2006 
  

			
	 Goldman, Sachs & Co.
 85 Broad Street
 New York, New York 10004
 Accredited Mortgage Loan REIT Trust
 15090 Avenue of Science
 San Diego, California 92128
	  	 Accredited Home Lenders, Inc.
 15090 Avenue of
Science
 San Diego, California 92128

  

	 	Re:	Sale and Servicing Agreement, dated as of June 1, 2006 among Accredited Home Lenders, Inc., as Sponsor and Servicer, 

	 	    	Accredited Mortgage Loan REIT Trust, as depositor, Accredited Mortgage Loan Trust 2006-2, and Deutsche Bank National 

	 	    	Trust Company, as Indenture Trustee 

 Ladies and
Gentlemen: 
 In accordance with Section 2.06(b)(i) of the above-captioned Sale and Servicing Agreement, the undersigned, as Indenture
Trustee, hereby acknowledges receipt by it in good faith without notice of adverse claims, subject to the provisions of Sections 2.04 and 2.05 of the Sale and Servicing Agreement (as such provisions relate to the Mortgage Loan), of, with respect to
each Mortgage Loan, a Mortgage File containing the original Mortgage Note, except with respect to the list of exceptions attached hereto, and based on its examination and only as to the foregoing, the information set forth in items (i),
(ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of the “Mortgage Loan Schedule” accurately reflects information set forth in the Mortgage Note, and declares that it holds
and will hold such documents and the other documents delivered to it constituting the Indenture Trustee’s Mortgage Files, and that it holds or will hold all such assets and such other assets included in the definition of “Trust
Estate” that are delivered to it for the exclusive use and benefit of all present and future Noteholders. 
 The Indenture Trustee has
made no independent examination of any such documents beyond the review specifically required in the above-referenced Sale and Servicing Agreement. The Indenture Trustee makes no representations as to: (i) the validity, legality, recordability,
sufficiency, perfection, priority, enforceability or genuineness of any such documents or any of the Mortgage Loans identified on the Mortgage Loan Schedule, or (ii) the collectability, insurability, effectiveness or suitability of any such
Mortgage Loan. 
 The Mortgage Loan Schedule is attached to this Receipt. 
 Capitalized words and phrases used herein shall have the respective meanings assigned to them in Appendix I to the Indenture, dated as of June 1,
2006, by and between Accredited Mortgage Loan Trust 2006-2 and the Indenture Trustee. 
  

			
	 DEUTSCHE BANK NATIONAL TRUST COMPANY,
 as
Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 C-2 

 EXHIBIT D 
 INITIAL CERTIFICATION OF INDENTURE TRUSTEE 
                 , 2006 
  

			
	 Goldman, Sachs & Co.
 85 Broad Street
 New York, New York 10004
 Accredited Mortgage Loan REIT Trust
 15090 Avenue of Science
 San Diego, California 92128
	 	 Accredited Home Lenders, Inc.
 15090 Avenue of
Science
 San Diego, California 92128

  

	 	Re:	Sale and Servicing Agreement, dated as of June 1, 2006 among Accredited Home Lenders, Inc., as Sponsor and Servicer, 

	 	  	Accredited Mortgage Loan REIT Trust, as depositor, Accredited Mortgage Loan Trust 2006-2, and Deutsche Bank National 

	 	  	Trust Company, as Indenture Trustee 

 Ladies and Gentlemen: 
 In accordance with the provisions of Section 2.06(b)(ii) of the above-referenced Sale and Servicing
Agreement, the undersigned, as Indenture Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan listed on the attachment hereto), it has reviewed
the documents delivered to it pursuant to Section 2.05(a) of the Sale and Servicing Agreement and has determined that, except as noted on the attachment hereto, (i) all documents required to be delivered to it pursuant to
Section 2.05(a)(i)-(iv) and (vi) of the above-referenced Sale and Servicing Agreement are in its possession, (ii) such documents have been reviewed by it and appear regular on their face and have not been mutilated, damaged, torn
or otherwise physically altered (handwritten additions, changes or corrections do not constitute physical alteration if they reasonably appear to have been initialed by the Mortgagor) and relates to such Mortgage Loan and (iii) based on its
examination and only as to the foregoing documents, the information set forth in the Mortgage Loan Schedule as to the information in clauses (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the
definition of “Mortgage Loan Schedule” respecting such Mortgage Loan accurately reflects the information set forth in Indenture Trustee’s Mortgage File. The Indenture Trustee has made no independent examination of such documents
beyond the review specifically required in the above-referenced Sale and Servicing Agreement. The Indenture Trustee makes no representations as to: (x) the validity, legality, recordability, sufficiency, perfection, priority, enforceability or
genuineness of any such documents contained in each or any of the Mortgage Loans identified on the Mortgage Loan Schedule, or (y) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan. 
 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the above-captioned Sale and Servicing Agreement.

  

			
	 DEUTSCHE BANK NATIONAL TRUST COMPANY,
 as
Indenture Trustee

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 D-1 

 EXHIBIT E 
 FINAL CERTIFICATION OF INDENTURE TRUSTEE 
             , 2006 
  

			
	 Goldman, Sachs & Co.
 85 Broad Street
 New York, New York 10004
 Accredited Mortgage Loan REIT Trust
 15090 Avenue of Science
 San Diego, California 92128
	 	 Accredited Home Lenders, Inc.
 15090 Avenue of
Science
 San Diego, California 92128

  

	 	Re:	Sale and Servicing Agreement, dated as of June 1, 2006 among Accredited Home Lenders, Inc., as Sponsor and Servicer, 

	 	  	Accredited Mortgage Loan REIT Trust, as depositor, Accredited Mortgage Loan Trust 2006-2, and Deutsche Bank National 

	 	  	Trust Company, as Indenture Trustee 

 Ladies and Gentlemen: 
 In accordance with the provisions of Section 2.06(b)(iii) of the above-referenced Sale and Servicing
Agreement, the undersigned, as Indenture Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan listed on the attachment hereto), it has reviewed
the documents delivered to it pursuant to Section 2.05(a) of the Sale and Servicing Agreement and has determined that (i) all documents required to be delivered to it pursuant to Section 2.05(a)(i)-(iv) and (vi) of the above
referenced Sale and Servicing Agreement are in its possession, (ii) such documents have been reviewed by it and appear regular on their face and have not been mutilated, damaged, torn or otherwise physically altered (handwritten additions,
changes or corrections do not constitute physical alteration if they reasonably appear to have been initialed by the Mortgagor) and relates to such Mortgage Loan and (iii) based on its examination and only as to the foregoing documents, the
information set forth in items (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of the Mortgage Loan Schedule respecting such Mortgage Loan that can be determined from the face of
such documents accurately reflects the information set forth in the Indenture Trustee’s Mortgage File. The Indenture Trustee has made no independent examination of such documents beyond the review specifically required in the above-referenced
Sale and Servicing Agreement. The Indenture Trustee makes no representations as to: (x) the validity, legality, recordability, sufficiency, perfection, priority, enforceability or genuineness of any such documents contained in each or any of
the Mortgage Loans identified on the Mortgage Loan Schedule, or (y) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan. 
 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the above-captioned Sale and Servicing Agreement. 
  

			
	 DEUTSCHE BANK NATIONAL TRUST COMPANY,
 as
Indenture Trustee

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 E-1 

 EXHIBIT F 
 REQUEST FOR RELEASE OF DOCUMENTS 
  

	To:	Deutsche Bank National Trust Company 

	  	1761 East St. Andrew Place 

	  	Santa Ana, CA 92705-4934 

	  	Attn: Trust Administration – AC0602 

  

	 	Re:	Sale and Servicing Agreement, dated as of June 1, 2006 among Accredited Home Lenders, Inc., as Sponsor and Servicer, 

	 	  	Accredited Mortgage Loan REIT Trust, as depositor, Accredited Mortgage Loan Trust 2006-2, and Deutsche Bank National 

	 	  	Trust Company, as Indenture Trustee (“Custodian/Indenture Trustee”) 

 In connection with the administration of the Mortgage Loans held by you as Indenture Trustee for the Issuing Entity pursuant to the above-captioned Sale and Servicing Agreement, we request the release, and hereby
acknowledge receipt, of the Indenture Trustee’s Mortgage File for the Mortgage Loan described below, for the reason indicated. 
 Mortgage Loan Number: 
 Mortgagor Name, Address & Zip Code:

 Reason for Requesting Documents (check one): 
  

							
	_____            	 	1.	  	Mortgage Paid in Full	 	
	_____            	 	2.	  	Foreclosure	 	
	_____            	 	3.	  	Substitution	 	
	_____            	 	4.	  	Other Liquidation (Repurchases, etc.)	 	
	_____            	 	5.	  	Nonliquidation Reason:	 	Reason:                                   
 

 Address to which Indenture Trustee should 
  

											
	Deliver the Mortgage File:	 		 		 		 		 	  

		 		 		 		 		 	  

		 		 		 		 		 	  

  

					
	By:	 	  

		 	(authorized signer)

  

			
	Issuing Entity:	 	  

	Address:	 	  

		
	Date:	 	  

  

 F-1 

 EXHIBIT G 
 ACCREDITED HOME LENDERS, INC. 
 OFFICER’S CERTIFICATE 
 I,                     ,
certify that: 
  

	1.	I have reviewed this annual report on Form 10-K, and all reports on Form 8-K containing distribution or servicing reports filed in respect of periods included in the year covered by
this annual report, of Accredited Mortgage Loan Trust 2006-2; 

  

	2.	Based on my knowledge, the information in these reports, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such statements were made, not misleading as of the last day of the period covered by this annual report; 

  

	3.	Based on my knowledge, the distribution or servicing information required to be provided to the trustee by the servicer under the sale and servicing, or similar, agreement is
included in these reports; 

  

	4.	Based on my knowledge and upon the annual compliance statement included in the report and required to be delivered to the trustee in accordance with the terms of the sale and
servicing, or similar, agreement, and except as disclosed in the reports, the servicer has fulfilled its obligations under the servicing agreement; and 

  

	5.	The reports disclose all significant deficiencies relating to the servicer’s compliance with the minimum servicing standards based upon the report provided by an independent
public accountant, after conducting a review in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar procedure, as set forth in the sale and servicing, or similar, agreement that is included in these reports.

 In giving the certifications above, I have reasonably relied on information provided to me by the following unaffiliated parties:
                        . 
  

	
	Date:
	
	  

	 Name:

	 Title:

  

 G-1 

 EXHIBIT H 
 SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE 
 Where there are multiple checks for criteria the attesting
party will identify in their management assertion that they are attesting only to the portion of the distribution chain they are responsible for in the related transaction agreements. 
 Key: X – obligation 
  

							
	 Reg AB
Reference
	  	 Servicing Criteria
	  	Servicer	  	Indenture
Trustee
				
		  	General Servicing Considerations	  		  	
				
	1122(d)(1)(i)	  	Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.	  	X	  	X
				
	1122(d)(1)(ii)	  	If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing
activities.	  	If applicable	  	If applicable
				
	1122(d)(1)(iii)	  	Any requirements in the transaction agreements to maintain a back-up servicer for the Pool Assets are maintained.	  	If become
contractually
obligated	  	If become
contractually
obligated
				
	1122(d)(1)(iv)	  	A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and
otherwise in accordance with the terms of the transaction agreements.	  	X	  	
				
		  	Cash Collection and Administration	  		  	
				
	1122(d)(2)(i)	  	Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of
days specified in the transaction agreements.	  	X	  	X
				
	1122(d)(2)(ii)	  	Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel	  	X	  	X
				
	1122(d)(2)(iii)	  	Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the
transaction agreements.	  	X	  	X

  

 H-1 

							
	 Reg AB
Reference
	  	 Servicing Criteria
	  	Servicer	  	Indenture
Trustee
				
	1122(d)(2)(iv)	  	The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of over collateralization, are separately maintained (e.g., with respect to commingling
of cash) as set forth in the transaction agreements.	  	X	  	X
				
	1122(d)(2)(v)	  	Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository
institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.	  	X	  	X
				
	1122(d)(2)(vi)	  	Unissued checks are safeguarded so as to prevent unauthorized access	  	X	  	X
				
	1122(d)(2)(vii)	  	Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are
(A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the
reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.	  	X	  	X

  

 H-2 

							
		  	Investor Remittances and Reporting	  		  	
				
	 Reg AB
Reference
	  	 Servicing Criteria
	  	Servicer	  	Indenture
Trustee
				
	1122(d)(3)(i)	  	Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such
reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the
Commission as required by its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of Pool Assets serviced by the Servicer.	  	X	  	X
				
	1122(d)(3)(ii)	  	Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.	  	X	  	X
				
	1122(d)(3)(iii)	  	Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the transaction agreements.	  	X	  	X
				
	1122(d)(3)(iv)	  	Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.	  	X	  	X
				
		  	Pool Asset Administration	  		  	
				
	1122(d)(4)(i)	  	Collateral or security on pool assets is maintained as required by the transaction agreements or related pool asset documents.	  	X	  	X
				
	1122(d)(4)(ii)	  	Pool assets and related documents are safeguarded as required by the transaction agreements	  		  	X
				
	1122(d)(4)(iii)	  	Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.	  	X	  	X
				
	1122(d)(4)(iv)	  	Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the Servicer’s obligor records maintained no more than two business
days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related pool asset documents.	  	X	  	

  

 H-3 

							
	 Reg AB
 Reference
	  	 Servicing Criteria
	  	Servicer	  	Indenture
Trustee
				
	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.	  	X	  	
				
	1122(d)(4)(vi)	  	Changes with respect to the terms or status of an obligor’s pool assets (e.g., loan modifications or reagings) are made, reviewed and approved by authorized personnel in accordance with the
transaction agreements and related pool asset documents.	  	X	  	
				
	1122(d)(4)(vii)	  	Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and
concluded in accordance with the timeframes or other requirements established by the transaction agreements.	  	X	  	
				
	1122(d)(4)(viii)	  	Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a
monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where
delinquency is deemed temporary (e.g., illness or unemployment).	  	X	  	
				
	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.	  	X	  	
				
	1122(d)(4)(x)	  	Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s pool asset documents, on at least an annual basis,
or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 30
calendar days of full repayment of the related pool assets, or such other number of days specified in the transaction agreements.	  	X	  	

  

 H-4 

							
	 Reg AB
 Reference
	  	 Servicing Criteria
	  	Servicer	  	Indenture
Trustee
				
	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.	  	X	  	
				
	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.	  	X	  	
				
	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.	  	X	  	
				
	1122(d)(4)(xiv)	  	Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.	  	X	  	
				
	1122(d)(4)(xv)	  	Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.	  	X	  	

  

 H-5 

 EXHIBIT I 
 FORM 10-D, FORM 8-K AND FORM 10-K 
 REPORTING RESPONSIBILITY 
 As to each item described below, the entity indicated as the Responsible Party shall be primarily responsible for reporting the information to the party identified as
responsible for preparing the Securities Exchange Act Reports pursuant to Section 5.11 of the Sale and Servicing Agreement. 
 Under Item 1 of Form
10-D: a) items marked “8.06 statement” are required to be included in the periodic reports prepared by the Indenture Trustee under Section 8.06 of the Indenture, provided by the Indenture Trustee based on information received from the
Servicer; and b) items marked “Form 10-D report” are required to be in the Form 10-D report but not the 8.06 statement, provided by the party indicated. Information under all other Items of Form 10-D is to be included in the Form 10-D
report. All such information and any other Items of Form 8-K and Form 10-K set forth in this exhibit shall be sent to the Indenture Trustee and the Depositor, as applicable as set forth in Section 5.11 of the Sale and Servicing Agreement.

  

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	 	Owner
Trustee	  	Depositor	  	Sponsor
				
	10-D	  	Must be filed within 15 days of the distribution date for the asset-backed securities.	  		  	
								
		  	1	  	Distribution and Pool Performance Information	  		  		 		  		  	
								
		  		  	Item 1121(a) – Distribution and Pool Performance Information	  		  		 		  		  	
								
		  		  	(1) Any applicable record dates, accrual dates, determination dates for calculating distributions and actual distribution dates for the distribution period.	  		  	X
(8.06
Statement)	 		  		  	
								
		  		  	(2) Cash flows received and the sources thereof for distributions, fees and expenses.	  		  	X
(8.06
Statement)	 		  		  	

  

 I-1 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	 	Owner
Trustee	  	Depositor	  	Sponsor
								
		  		  	(3) Calculated amounts and distribution of the flow of funds for the period itemized by type and priority of payment, including:	  		  	X
(8.06
Statement)	 		  		  	
								
		  		  	(i) Fees or expenses accrued and paid, with an identification of the general purpose of such fees and the party receiving such fees or expenses.	  		  	X
(8.06
Statement)	 		  		  	
								
		  		  	(ii) Payments accrued or paid with respect to enhancement or other support identified in Item 1114 of Regulation AB (such as insurance premiums or other enhancement maintenance fees), with an
identification of the general purpose of such payments and the party receiving such payments.	  		  	X
(8.06
Statement)	 		  		  	
								
		  		  	(iii) Principal, interest and other distributions accrued and paid on the asset-backed securities by type and by class or series and any principal or interest shortfalls or
carryovers.	  		  	X
(8.06
Statement)	 		  		  	
								
		  		  	(iv) The amount of excess cash flow or excess spread and the disposition of excess cash flow.	  		  	X
(8.06
Statement)	 		  		  	
								
		  		  	(4) Beginning and ending principal balances of the asset-backed securities.	  		  	X
(8.06
Statement)	 		  		  	
								
		  		  	(5) Interest rates applicable to the pool assets and the asset-backed securities, as applicable. Consider providing interest rate information for pool assets in appropriate distributional groups
or incremental ranges.	  		  	X
(8.06
Statement)	 		  		  	

  

 I-2 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	 	Owner
Trustee	  	Depositor	 	Sponsor
								
		  		  	(6) Beginning and ending balances of transaction accounts, such as reserve accounts, and material account activity during the period.	  		  	X
(8.06
Statement)	 		  		 	
								
		  		  	(7) Any amounts drawn on any credit enhancement or other support identified in Item 1114 of Regulation AB, as applicable, and the amount of coverage remaining under any such enhancement, if
known and applicable.	  		  	X
(8.06
State-ment
as to first
portion)	 		  	X (as to the
amount of
coverage
remaining
under any
such
enhancement)	 	
								
		  		  	(8) Number and amount of pool assets at the beginning and ending of each period, and updated pool composition information, such as weighted average coupon, weighted average remaining term, pool
factors and prepayment amounts.	  		  	X
(8.06
Statement)	 		  	Updated
pool
composition
information
fields to be
as specified
by
Depositor
from time
to time	 	
								
		  		  	(9) Delinquency and loss information for the period.	  		  	X
(8.06
Statement)	 		  		 	
								
		  		  	In addition, describe any material changes to the information specified in Item 1100(b)(5) of Regulation AB regarding the pool assets. (methodology)	  	X	  		 		  		 	
								
		  		  	(10) Information on the amount, terms and general purpose of any advances made or reimbursed during the period, including the general use of funds advanced and the general source of funds for
reimbursements.	  		  	X
(8.06
Statement)	 		  		 	

  

 I-3 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	 	Owner
Trustee	  	Depositor	  	Sponsor
								
		  		  	(11) Any material modifications, extensions or waivers to pool asset terms, fees, penalties or payments during the distribution period or that have cumulatively become material over
time.	  	X	  		 		  	X	  	X
								
		  		  	(12) Material breaches of pool asset representations or warranties or transaction covenants.	  	X	  		 		  	X	  	X
								
		  		  	(13) Information on ratio, coverage or other tests used for determining any early amortization, liquidation or other performance trigger and whether the trigger was met.	  		  	X
(8.06
Statement)	 		  		  	
								
		  		  	(14) Information regarding any new issuance of asset-backed securities backed by the same asset pool,	  		  		 		  	X	  	X
								
		  		  	Information regarding any pool asset changes (other than in connection with a pool asset converting into cash in accordance with its terms), such as additions or removals in connection with a
prefunding or revolving period and pool asset substitutions and repurchases (and purchase rates, if applicable), and cash flows available for future purchases, such as the balances of any prefunding or revolving accounts, if applicable.	  	X	  		 		  	X	  	

  

 I-4 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	  	Owner
Trustee	  	Depositor	  	Sponsor
								
		  		  	Disclose any material changes in the solicitation, credit-granting, underwriting, origination, acquisition or pool selection criteria or procedures, as applicable, used to originate, acquire or
select the new pool assets.	  		  		  		  	X	  	X
								
		  		  	Item 1121(b) – Pre-Funding or Revolving Period Information	  		  		  		  	X	  	
								
		  		  	Updated pool information as required under Item 1121(b).	  		  		  		  		  	
								
		  	2	  	Legal Proceedings	  		  		  		  		  	
								
		  		  	Item 1117 – Legal proceedings pending against the following entities, or their respective property, that is material to Noteholders, including proceedings known to be contemplated by
governmental authorities:	  		  		  		  		  	
								
		  		  	Sponsor	  		  		  		  		  	X
								
		  		  	Depositor	  		  		  		  	X	  	
								
		  		  	Owner Trustee	  		  		  	X	  		  	
								
		  		  	Issuing entity	  		  		  		  	X	  	
								
		  		  	Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers	  	X	  		  		  		  	
								
		  		  	Indenture Trustee	  		  	X	  		  		  	
								
		  		  	Custodian	  		  	X	  		  		  	

  

 I-5 

															
	 Form
	  	Item	  	 Description
	  	 Servicer
	  	 Indenture
Trustee
	  	Owner
Trustee	  	 Depositor
	  	 Sponsor

								
		  	3	  	Sales of Securities and Use of Proceeds	  		  		  		  		  	
		  		  	Information from Item 2(a) of Part II of Form 10-Q:	  		  		  		  	X	  	
								
		  		  	With respect to any sale of securities by the sponsor, depositor or issuing entity, that are backed by the same asset pool or are otherwise issued by the issuing entity, whether or not
registered, provide the sales and use of proceeds information in Item 701 of Regulation S-K. Pricing information can be omitted if securities were not registered.	  		  		  		  		  	
								
		  	4	  	 Defaults Upon
	  		  		  		  		  	
								
		  		  	Senior Securities	  		  		  		  		  	
		  		  	Information from Item 3 of Part II of Form 10-Q:	  		  	X	  		  	X	  	X
								
		  		  	Report the occurrence of any Event of Default (after expiration of any grace period and provision of any required notice)	  		  		  		  		  	
								
		  	5	  	 Submission of Matters to a Vote of Noteholders
	  		  		  		  		  	
								
		  		  	Information from Item 4 of Part II of Form 10-Q	  	X (to the extent initiated by the Servicer)	  	X (to the extent initiated by the Indenture Trustee)	  		  	X (to the extent initiated by the Depositor)	  	X (to the extent initiated by the Sponsor)
								
		  	6	  	 Significant Obligors of Pool Assets
	  		  		  		  		  	
								
		  		  	 Item 1112(b) – Significant Obligor Financial Information*
	  		  		  		  	X	  	

	*	This information need only be reported on the Form 10-D for the distribution period in which updated information is required pursuant to the Item. 

  

 I-6 

															
	 Form
	  	 Item
	  	 Description
	  	Servicer	  	Indenture
Trustee	  	Owner
Trustee	  	Depositor	  	Sponsor
								
		  	7	  	Significant Enhancement Provider Information	  		  		  		  		  	
								
		  		  	Item 1114(b)(2) – Credit Enhancement Provider Financial Information*	  		  		  		  		  	
								
		  		  	 Determining applicable disclosure threshold
	  		  		  		  		  	X
								
		  		  	 Requesting required financial information or effecting incorporation by reference
	  		  		  		  		  	X
								
		  		  	Item 1115(b) – Derivative Counterparty Financial Information*	  		  		  		  		  	
								
		  		  	 Determining current maximum probable exposure
	  		  		  		  		  	X
								
		  		  	 Determining current significance percentage
	  		  		  		  		  	X
								
		  		  	 Requesting required financial information or effecting incorporation by reference
	  		  		  		  		  	X
		  		  		  		  		  		  		  	

	*	This information need only be reported on the Form 10-D for the distribution period in which updated information is required pursuant to the Items. 

															
	 Form
	  	 Item
	  	 Description
	  	Servicer	  	Indenture
Trustee	  	Owner
Trustee	  	Depositor	  	Sponsor
								
		  	8	  	Other Information	  		  		  		  		  	
				
		  		  	Disclose any information required to be reported on Form 8-K during the period covered by the Form 10-D but not reported	  	The Responsible Party for the
applicable Form 8-K item as indicated
below.
								
		  	9	  	Exhibits	  		  		  		  		  	
								
		  		  	Distribution Report	  		  	X	  		  		  	
								
		  		  	Exhibits required by Item 601 of Regulation S-K, such as material agreements	  		  		  		  	X	  	
					
	8-K	  	Must be filed within four business days of an event reportable on Form 8-K.	  		  		  	

  

 I-7 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	 Indenture
Trustee
	  	Owner
Trustee	  	Depositor	  	Sponsor
								
		  	1.01	  	Entry into a Material Definitive Agreement	  		  		  		  		  	
								
		  		  	Disclosure is required regarding entry into or amendment of any definitive agreement that is material to the securitization, even if depositor is not a party.	  	X	  		  		  	X	  	X
								
		  		  	 Examples: servicing agreement, custodial agreement.
 Note: disclosure not required as to definitive agreements that are fully disclosed in the prospectus
	  		  		  		  		  	
								
		  	1.02	  	Termination of a Material Definitive Agreement	  		  		  		  		  	
								
		  		  	Disclosure is required regarding termination of any definitive agreement that is material to the securitization (other than expiration in accordance with its terms), even if depositor is not a
party.	  	X	  	X (only to the extent initiated by the Indenture Trustee)	  		  	X	  	X
		  		  	Examples: servicing agreement, custodial agreement.	  		  		  		  		  	

  

 I-8 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	 	Owner
Trustee	  	Depositor	  	Sponsor
								
		  	1.03	  	Bankruptcy or Receivership	  		  		 		  		  	
								
		  		  	Disclosure is required regarding the bankruptcy or receivership, if known to the Depositor, Indenture Trustee, Sponsor or Servicer, with respect to any of the following:	  	X	  	X (as to itself)	 		  	X	  	X
								
		  		  	Sponsor, Depositor, Servicer, affiliated Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers, Indenture Trustee, significant obligor,
credit enhancer (10% or more), derivatives counterparty, custodian	  		  		 		  		  	
								
		  	2.04	  	Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement	  		  		 		  		  	
								
		  		  	Includes an early amortization, performance trigger or other event, including event of default, that would materially alter the payment priority/distribution of cash flows/amortization
schedule.	  		  		 		  	X	  	
								
		  		  	Disclosure will be made of events other than waterfall triggers which are disclosed in the 8.06 statement	  		  		 		  		  	
								
		  	3.03	  	Material Modification to Rights of Noteholders	  		  		 		  		  	
								
		  		  	Disclosure is required of any material modification to documents defining the rights of Noteholders, including the Sale and Servicing Agreement	  		  		 		  	X	  	X

  

 I-9 

															
	 Form
	  	Item	  	 Description
	  	Servicer	 	Indenture
Trustee	 	Owner
Trustee	  	Depositor	 	Sponsor
								
		  	5.03	  	Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year	  		 		 		  		 	
								
		  		  	Disclosure is required of any amendment “to the governing documents of the issuing entity”	  		 		 		  	X	 	
								
		  	5.06	  	Change in Shell Company Status	  		 		 		  		 	
								
		  		  	[Not applicable to ABS issuers]	  		 		 		  	X	 	
								
		  	6.01	  	ABS Informational and Computational Material	  		 		 		  		 	
								
		  		  	[Not included in reports to be filed under Section 3.19]	  		 		 		  	X	 	
								
		  	6.02	  	Change of Servicer or Trustee	  		 		 		  		 	
								
		  		  	Requires disclosure of any removal, replacement, substitution or addition of any servicer, affiliated servicer, other servicer servicing 10% or more of pool assets at time of report, other
material servicers, or trustee.	  	X	 		 		  	X	 	
								
		  		  	Reg AB disclosure about any new servicer is also required.	  	X (the
successor)	 		 		  		 	
								
		  		  	Reg AB disclosure about any new trustee is also required.	  		 	X (the
successor)	 		  	X (the
successor)	 	
								
		  	6.03	  	Change in Credit Enhancement or Other External Support	  		 		 		  		 	
								
		  		  	Covers termination of any enhancement in manner other than by its terms, the addition of an enhancement, or a material change in the enhancement provided. Applies to external credit enhancements
as well as derivatives.	  		 		 		  	X	 	X

  

 I-10 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	  	Owner
Trustee	  	Depositor	  	Sponsor
								
		  		  	Reg AB disclosure about any new enhancement provider is also required.	  		  		  		  	X	  	
								
		  	6.04	  	Failure to Make a Required Distribution	  		  	X	  		  		  	
								
		  	6.05	  	Securities Act Updating Disclosure	  		  		  		  		  	
								
		  		  	If any material pool characteristic differs by 5% or more at the time of issuance of the securities from the description in the final prospectus, provide updated Reg AB disclosure about the
actual asset pool.	  		  		  		  	X	  	
								
		  		  	If there are any new servicers or originators required to be disclosed under Regulation AB as a result of the foregoing, provide the information called for in Items 1108 and 1110
respectively.	  		  		  		  	X	  	
								
		  	7.01	  	7.01 Regulation FD Disclosure	  	X	  		  		  	X	  	X
								
		  	8.01	  	Other Events	  		  		  		  		  	
								
		  		  	Any event, with respect to which information is not otherwise called for in Form 8-K, that the registrant deems of importance to Noteholders.	  		  		  		  	X	  	X
				
		  	9.01	  	Financial Statements and Exhibits	  	The Responsible Party applicable to
reportable event.
						
	10-K	  	Must be filed within 90 days of the fiscal year end for the registrant.	  		  		  		  	
								
		  	9B	  	Other Information	  		  		  		  		  	
				
		  		  	Disclose any information required to be reported on Form 8-K during the fourth quarter covered by the Form 10-K but not reported	  	The Responsible Party for the applicable
Form 8-K Item as indicated above.
								
		  	15	  	Exhibits and Financial Statement Schedules	  		  		  		  		  	
								
		  		  	Item 1112(b) – Significant Obligor Financial Information	  		  		  		  	X	  	

  

 I-11 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	  	Owner
Trustee	  	Depositor	  	Sponsor
								
		  		  	Item 1114(b)(2) – Credit Enhancement Provider Financial Information	  		  		  		  		  	
								
		  		  	 Determining applicable disclosure threshold
	  		  		  		  		  	X
								
		  		  	 Requesting required financial information or effecting incorporation by reference
	  		  		  		  		  	X
								
		  		  	Item 1115(b) – Derivative Counterparty Financial Information	  		  		  		  		  	
								
		  		  	 Determining current maximum probable exposure
	  		  		  		  		  	X
								
		  		  	 Determining current significance percentage
	  		  		  		  		  	X
								
		  		  	 Requesting required financial information or effecting incorporation by reference
	  		  		  		  		  	X
								
		  		  	Item 1117 – Legal proceedings pending against the following entities, or their respective property, that is material to Noteholders, including proceedings known to be contemplated by
governmental authorities:	  		  		  		  		  	
								
		  		  	Sponsor	  		  		  		  		  	X
								
		  		  	Depositor	  		  		  		  	X	  	
								
		  		  	Owner Trustee	  		  		  	X	  		  	
								
		  		  	Issuing entity	  		  		  		  	X	  	
								
		  		  	Servicer, affiliated Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers	  	X	  		  		  		  	
								
		  		  	Indenture Trustee	  		  	X	  		  		  	
								
		  		  	Custodian	  		  	X	  		  		  	

  

 I-12 

															
	 Form
	  	Item	  	 Description
	  	Servicer	  	Indenture
Trustee	  	Owner
Trustee	  	Depositor	  	Sponsor
								
		  		  	Item 1119 – Affiliations and relationships between the following entities, or their respective affiliates, that are material to Noteholders:	  		  		  		  		  	
								
		  		  	Sponsor	  		  		  		  		  	X
								
		  		  	Depositor	  		  		  		  	X	  	
								
		  		  	Owner Trustee	  		  		  	X	  		  	
								
		  		  	Servicer, affiliated Servicer, other Servicer servicing 20% or more of pool assets at time of report, other material servicers	  	X	  		  		  		  	
								
		  		  	Indenture Trustee	  		  	X	  		  		  	
								
		  		  	Custodian	  		  	X	  		  		  	
								
		  		  	Credit Enhancer/Support Provider	  		  		  		  	X	  	
								
		  		  	Significant Obligor	  		  		  		  	X	  	
								
		  		  	Item 1122 – Assessment of Compliance with Servicing Criteria	  	X	  	X	  		  		  	
								
		  		  	Item 1123 – Servicer Compliance Statement	  	X	  		  		  		  	

  

 I-13 

 EXHIBIT J-1 
 FORM OF CERTIFICATION TO BE PROVIDED BY THE DEPOSITOR WITH 
 FORM 10-K 
 Re: Accredited Mortgage Loan Trust, Series 2006-2 (the “Issuing Entity”) Asset-Backed Notes, Series 2006-2 
 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 Accredited Mortgage Loan
Trust 2006-2, Asset Backed Notes, Series 2006-2 (the “Exchange Act periodic reports”); 

  

	 	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.	Based on my knowledge and the servicer compliance statement required in this report under Item 1123 of Regulation AB, and except as disclosed in the Exchange Act periodic
reports, the servicer has fulfilled its obligations under the sale and servicing 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 From 10-K. 

 In giving
the certifications above, I have reasonably relied on information provided to me by the following unaffiliated parties: [                ]. 
  

			
	ACCREDITED MORTGAGE LOAN REIT TRUST
		
	By:	 	  

	Name:	 	
	Title:	 	
	Date:	 	

  

 J-1 

 EXHIBIT J-2 
 FORM OF CERTIFICATION TO BE PROVIDED TO THE DEPOSITOR BY THE INDENTURE TRUSTEE 
 Re: Accredited Mortgage Loan Trust 2006-2
(the “Issuing Entity”) Asset-Backed Notes, Series 2006-2 
 I, [identify the certifying individual], a [title] of Deutsche Bank National Trust
Company, as Indenture Trustee, hereby certify to Accredited Mortgage Loan REIT Trust (the “Depositor”), and its officers, directors and affiliates, and with the knowledge and intent that they will rely upon this certification, that:

  

	 	1.	I have reviewed the annual report on Form 10-K for the fiscal year 20[__], and all reports on Form 10-D containing distribution reports filed in respect of periods included in the
year covered by that annual report, of the Depositor relating to the above-referenced issuing entity; 

  

	 	2.	Based on my knowledge and assuming the accuracy and completeness of the information provided to the Indenture Trustee by the Servicer, the information in these distribution reports
prepared by the Indenture Trustee, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by that annual report provided to me by the Servicer; and 

  

	 	3.	Based on my knowledge, the distribution information required to be provided under Form 10-D by the Indenture Trustee under the Sale and Servicing Agreement is included in these
distribution reports. 

 Capitalized terms used but not defined herein have the meanings ascribed to them in Appendix A to the Indenture, dated
June 1, 2006 (the “Indenture”), between Accredited Mortgage Loan Trust 2006-2, as issuing entity, and Deutsche Bank National Trust Company, as indenture trustee. 
  

			
	 DEUTSCHE BANK NATIONAL TRUST COMPANY,
 as
Indenture Trustee

		
	By:	 	  

	Name:	 	
	Title:	 	
	Date:	 	

  

 J-2 

 EXHIBIT K 
 OFFICER’S CERTIFICATE REGARDING ANNUAL STATEMENT OF COMPLIANCE 
 Accredited Mortgage Loan Trust, Series 2006-2

 Asset-Backed Notes, Series 2006-2 
 I,
            , hereby certify that I am a duly appointed
                         of Accredited Home Lenders, Inc. (the “Servicer”), and further certify as follows:

  

	 	1.	This certification is being made pursuant to the terms of the Sale and Servicing Agreement, dated as of June 1, 2006 (the “Servicing Agreement”), among Accredited
Mortgage Loan Trust 2006-2, as issuing entity, Accredited Mortgage Loan REIT Trust, as depositor, the Servicer as sponsor and servicer and Deutsche Bank National Trust Company, as indenture trustee. 

  

	 	2.	I have reviewed the activities of the Servicer during the preceding calendar year and the Servicer’s performance under the Servicing Agreement has been made under my
supervision and to the best of my knowledge, based on such review, the Servicer has fulfilled all of its obligations under the Servicing Agreement in all material respects throughout the year. 

 Capitalized terms not otherwise defined herein have the meanings set forth in the Servicing Agreement. 
  

	
	Date:
	
	  

	Name:
	Title:

  

 K-1 

 Exhibit L 
 Form of Addition Notice 
                 , 200   
 VIA FEDERAL EXPRESS 
 Deutsche Bank National Trust Company 
 1761 East St. Andrew Place 
 Santa Ana, CA
92705-4934 
 Attn: Trust Administration – AC0602 
  

	 	Re:	Sale and Servicing Agreement, dated as of June 1, 2006 among Accredited Home Lenders, Inc., as Sponsor and Servicer, Accredited Mortgage Loan REIT Trust, as Depositor,
Accredited Mortgage Loan Trust 2006-2, and Deutsche Bank National Trust Company, as Indenture Trustee 

 Ladies and Gentlemen: 
 Pursuant to Section [            ] of the
above-captioned Sale and Servicing Agreement, the Depositor has designated the Subsequent Mortgage Loans (see subsequent mortgage loan schedule attached hereto) to be sold to the Issuing Entity, on
                        , with an aggregate principal balance of
$            . Capitalized terms not otherwise defined herein have the meaning set forth in the Sale and Servicing Agreement. 
 Please acknowledge your receipt of this notice by countersigning the enclosed copy in the space indicated below and returning it to the attention of the
undersigned. 
  

			
	Very truly yours,
	
	ACCREDITED MORTGAGE LOAN REIT TRUST
		
	By:	 	  

	Name:	 	Melissa Dant
	Title:	 	 Senior Secondary Markets Counsel,
 Ass’t Vice
President, and Ass’t Secretary

 Acknowledged and agreed: 
  

			
	DEUTSCHE BANK NATIONAL TRUST COMPANY, as Indenture Trustee
		
	By:	 	  

 EXHIBIT M 
 DEPOSITOR’S SUBSEQUENT TRANSFER INSTRUMENT 
 Pursuant to this Depositor’s Subsequent
Transfer Instrument (the “Depositor’s Instrument”), dated as of [                ], 2006, between Accredited Mortgage Loan REIT Trust, as
depositor (the “Depositor”), Accredited Mortgage Loan Trust, Series 2006-2, as issuing entity (the “Issuing Entity”) and Deutsche Bank National Trust Company, as indenture trustee, and pursuant to the Sale and
Servicing Agreement, dated as of June 1, 2006 (the “Sale and Servicing Agreement”), among Accredited Home Lenders, Inc., as sponsor and servicer (the “Sponsor” and the “Servicer”), the
Depositor, Accredited Mortgage Loan Trust 2006-2, as issuing entity (the “Issuing Entity”) and the Indenture Trustee agree to the sale by the Depositor and the purchase by the Issuing Entity of the subsequent Mortgage Loans listed
on the attached Mortgage Loan Schedule (the “Subsequent Mortgage Loans”) in accordance with the Sale and Servicing Agreement. 
 Capitalized terms used and not defined herein have their respective meanings as set forth in the definitions contained in the Sale and Servicing Agreement, which definitions are incorporated by reference herein. All other capitalized terms
used herein shall have the meanings specified herein. 
 Section 1. Conveyance of Subsequent Mortgage Loans. 
 (a) The Depositor does hereby sell, transfer, assign, set over and convey to the Issuing Entity, without recourse, all of its right, title and interest in
and to the Subsequent Mortgage Loans, all scheduled payments of principal and interest on the Subsequent Mortgage Loans due after the Subsequent Cut-off Date, and all other payments of principal and interest on the Subsequent Mortgage Loans
collected after the Subsequent Cut-off Date (minus that portion of any such payment which is allocable to the period prior to the Subsequent Cut-off Date); provided, however, that no scheduled payments of principal and interest due on or before the
Subsequent Cut-off Date and collected after the Subsequent Cut-off Date shall belong to the Issuing Entity pursuant to the terms of this Depositor’s Instrument. The Depositor, contemporaneously with the delivery of this Depositor’s
Instrument, has delivered or caused to be delivered to the Indenture Trustee, at the direction of the Issuing Entity, each item set forth in Section 2.10(b) of the Sale and Servicing Agreement with respect to such Subsequent Mortgage Loans. The
transfer to the Issuing Entity by the Depositor of the Subsequent Mortgage Loans identified on the attached Mortgage Loan Schedule shall be absolute and is intended by the Depositor, the Issuing Entity, the Sponsor, the Servicer, the Indenture
Trustee and the Noteholders to constitute and to be treated as a sale by the Depositor. 
 The parties hereto intend that the transactions
set forth herein constitute a sale by the Depositor to the Issuing Entity on the Subsequent Transfer Date of all the Depositor’s right, title and interest in and to the Subsequent Mortgage Loans, and other property as and to the extent
described above. In the event the transactions set forth herein shall be deemed not to be a sale, the Depositor hereby grants to the Issuing Entity as of the Subsequent Transfer Date a security interest in all of the Depositor’s right, title
and interest in, to and under the Subsequent Mortgage Loans, and such other property, to secure all of the Depositor’s obligations hereunder, and this purchase agreement shall constitute a security agreement under applicable law, and in such

 
event, the parties hereto acknowledge that the Indenture Trustee, in addition to holding the Subsequent Mortgage Loans for the benefit of the Noteholders,
holds the Subsequent Mortgage Loans as designee and agent of the Issuing Entity. The Depositor agrees to take or cause to be taken such actions and to execute such documents, including without limitation the filing of all necessary UCC-1 financing
statements filed in the State of Maryland (which shall be submitted for filing as of the Subsequent Transfer Date), any continuation statements with respect thereto and any amendments thereto required to reflect a change in the name or corporate
structure of the Depositor or the filing of any additional UCC-1 financing statements due to the change in the state of incorporation of the Depositor as are necessary to perfect and protect the interests of the Issuing Entity and its assignees in
each Subsequent Mortgage Loan and the proceeds thereof. 
 (b) The expenses and costs relating to the delivery of the Subsequent Mortgage
Loans, this Depositor’s Instrument and such other items required under the Mortgage Loan Purchase Agreement shall be borne by the Depositor. 
 (c) Additional terms of the sale are set forth on Attachment A hereto. 
 Section 2. Representations and Warranties;
Conditions Precedent. 
 (a) The Depositor hereby affirms the representations and warranties set forth in Section 3.06 of the Sale
and Servicing Agreement that relate to the Depositor and the Subsequent Mortgage Loans as of the date hereof. The Depositor hereby confirms that each of the conditions set forth in Section 2.10(b) of the Sale and Servicing Agreement are
satisfied as of the date hereof and further represents and warrants that each Subsequent Mortgage Loan complies with the requirements of this Depositor’s Instrument and Section 2.10(c) of the Sale and Servicing Agreement. 
 (b) The Depositor is solvent, is able to pay its debts as they become due and has capital sufficient to carry on its business and its obligations
hereunder; it will not be rendered insolvent by the execution and delivery of this Depositor’s Instrument or by the performance of its obligations hereunder nor is it aware of any pending insolvency; no petition of bankruptcy (or similar
insolvency proceeding) has been filed by or against the Depositor prior to the date hereof. 
 (c) All terms and conditions of the Purchase
Agreement are hereby ratified and confirmed; provided, however, that in the event of any conflict the provisions of this Depositor’s Instrument shall control over the conflicting provisions of the Purchase Agreement. 
 Section 3. Recordation of the Depositor’s Instrument. 
 To the extent permitted by applicable law, this Depositor’s Instrument, or a memorandum thereof if permitted under applicable law, is subject to recordation in all appropriate public offices for real property
records in all of the counties or other comparable jurisdictions in which any or all of the properties subject to the Mortgages are situated, and in any other appropriate public recording office or elsewhere, such recordation to be effected by the
Servicer, but only when accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Noteholders or is necessary for the administration or servicing of the Mortgage Loans.

 Section 4. Governing Law. 
 This Depositor’s Instrument shall be construed in accordance with the laws of the State of New York and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws, without giving effect to principles of conflicts of law. 
 Section 5. Counterparts. 
 This Depositor’s Instrument 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 instrument. 
 Section 6. Successors and Assigns. 
 This Depositor’s Instrument shall inure to the benefit of and be binding upon the Depositor and the Issuing Entity and their respective successors and assigns. The Indenture Trustee shall be an express third party beneficiary hereto.

 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Depositor’s Instrument as of the day and year first written
above. 
  

			
	ACCREDITED MORTGAGE LOAN REIT TRUST, as Depositor
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	ACCREDITED MORTGAGE LOAN TRUST 2006-2
	
	By: U.S. BANK TRUST NATIONAL ASSOCIATION, not in its individual capacity, but solely as Owner Trustee under the Trust Agreement
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 DEUTSCHE BANK NATIONAL TRUST COMPANY,
 as
Indenture Trustee

		
	By:	 	  

	Name:	 	
	Title:	 	

 ACCREDITED MORTGAGE LOAN TRUST ASSET-BACKED NOTES, SERIES 2006-2 
 ATTACHMENT A TO DEPOSITOR’S SUBSEQUENT TRANSFER INSTRUMENT 
                  , 200   
  

	A.	Profile of Subsequent Mortgage Loans: 

  

	 	1.	Subsequent Cut-off Date (not later than):                  , 200  

  

	 	2.	Subsequent Transfer Date:                  , 200  

  

	 	3.	Aggregate Principal Balance of the Subsequent Mortgage Loans as of the Subsequent Cut-off Date: $            

  

	 	4.	Purchase Price: 100.00% 

  

	B.	As to all the Subsequent Mortgage Loans the subject of this Instrument: 

  

						
	I.	 	Longest stated term to maturity:	  	 	360 months
	II.	 	Minimum Mortgage Rate:	  	 	        %
	III.	 	Maximum Mortgage Rate:	  	 	        %
	IV.	 	WAC of all Mortgage Loans:	  	 	        %
	V.	 	WAM of all Mortgage Loans:	  	 	         months
	VI.	 	Largest Principal Balance:	  	$	        
	VII.	 	Non-owner occupied Mortgaged Properties:	  	 	        %
	VIII.	 	California concentration:	  	 	        %
	IX.	 	Condominiums:	  	 	        %
	X.	 	Single-family:	  	 	        %
	XI.	 	Weighted average term since origination:	  	 	         months

 EXHIBIT N  
 FORM OF ADDITIONAL DISCLOSURE NOTIFICATION 
 **SEND VIA EMAIL TO DBSec.Notifications@db.com AND VIA
OVERNIGHT MAIL TO THE ADDRESS IMMEDIATELY BELOW 
 Deutsche Bank National Trust Company, as trustee 
 1761 St. Andrew Place 
 Santa Ana, California 92705 
 Email: DBSec.Notifications@db.com 
  

	Attn.:	Trust & Securities Services 

  

	RE:	**Additional Form [10-D] [10-K] [8-K] Disclosure** Required 

 Ladies and Gentlemen: 
 In accordance with Section 5.11 of the Sale and Servicing Agreement (the “Agreement”),
dated as of June 1, 2006, among Accredited Mortgage Loan REIT Trust, as depositor, Accredited Home Lenders, Inc., as sponsor and servicer, Accredited Mortgage Loan Trust 2006-2, as issuing entity, and Deutsche Bank National Trust Company, as
indenture trustee, the undersigned, as [                        ] hereby notifies you that certain events have come to our
attention that [will] [may] need to be disclosed on Form [10-D] [10-K] [8-K]. 
 Description of additional Form [10-D]
[10-K] [8-K] Disclosure: 
 List of any Attachments hereto to be included in the Additional Form [10-D] [10-K] [8-K]
Disclosure: 
 Any inquiries related to this notification should be directed to
[                ] phone number [                ]; email address
[                ]. 
  

			
	[NAME OF PARTY],
	As [Role]
		
	By:	 	  

	Name:

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