Document:

INDENTURE

                                                                 among

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                                Issuer,

                                                  LASALLE BANK NATIONAL ASSOCIATION,
                                                           Indenture Trustee

                                                                  and

                                                        WELLS FARGO BANK, N.A.,
                                                       Securities Administrator

                                                       Dated as of July 1, 2007

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3

                                                           TABLE OF CONTENTS
                                                                                                               Page

                                         ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

    Section 1.01      Definitions.................................................................................2
    Section 1.02      Rules of Construction.......................................................................9

                                                         ARTICLE II THE NOTES

    Section 2.01      Form.......................................................................................10
    Section 2.02      Execution, Authentication and Delivery.....................................................11
    Section 2.03      Limitations on Transfer of the Notes.......................................................14
    Section 2.04      Registration; Registration of Transfer and Exchange........................................16
    Section 2.05      Mutilated, Destroyed, Lost or Stolen Notes.................................................17
    Section 2.06      Persons Deemed Owners......................................................................18
    Section 2.07       Payment of Principal and Interest.........................................................18
    Section 2.08      Cancellation...............................................................................20
    Section 2.09      Release of Collateral......................................................................20
    Section 2.10      Book-Entry Notes...........................................................................20
    Section 2.11      Notices to Clearing Agency.................................................................21
    Section 2.12      Definitive Notes...........................................................................21
    Section 2.13      Tax Treatment..............................................................................22
    Section 2.14      Restrictions on Transfer and Retention of Beneficial Ownership Interest in the
                      Privately Offered Notes....................................................................22

                                                         ARTICLE III COVENANTS

    Section 3.01      Payment of Principal and Interest..........................................................23
    Section 3.02      Maintenance of Office or Agency............................................................24
    Section 3.03      Money for Payments to be Held in Trust.....................................................24
    Section 3.04      Existence..................................................................................26
    Section 3.05      Protection of Collateral...................................................................26
    Section 3.06      Opinions as to Collateral..................................................................27
    Section 3.07      Performance of Obligations.................................................................27
    Section 3.08      Negative Covenants.........................................................................28
    Section 3.09      Annual Statement as to Compliance..........................................................29
    Section 3.10      Treatment of Notes as Debt for Tax Purposes................................................29
    Section 3.11      No Other Business..........................................................................29
    Section 3.12      No Borrowing...............................................................................29
    Section 3.13      Guarantees, Loans, Advances and Other Liabilities..........................................30
    Section 3.14      Capital Expenditures.......................................................................30
    Section 3.15      Removal of Administrator...................................................................30
    Section 3.16      Restricted Payments........................................................................30
    Section 3.17      Notice of Events of Default................................................................30
    Section 3.18      Further Instruments and Acts...............................................................30
    Section 3.19      Covenants of the Issuer....................................................................30
    Section 3.20      Representations and Warranties of the Issuer...............................................31

                                                 ARTICLE IV SATISFACTION AND DISCHARGE

    Section 4.01      Satisfaction and Discharge of Indenture....................................................32
    Section 4.02      Application of Trust Money.................................................................33
    Section 4.03      Repayment of Moneys Held by Paying Agent...................................................33
    Section 4.04      Trust Money Received by Indenture Trustee..................................................33

                                                 ARTICLE V EVENTS OF DEFAULT; REMEDIES

    Section 5.01      Events of Default..........................................................................33
    Section 5.02      Acceleration of Maturity; Rescission and Annulment.........................................35
    Section 5.03      Collection of Indebtedness and Suits for Enforcement by Indenture Trustee..................35
    Section 5.04      Remedies; Priorities.......................................................................38
    Section 5.05      Optional Preservation of the Collateral....................................................39
    Section 5.06      Limitation of Suits........................................................................39
    Section 5.07      Unconditional Rights of Noteholders To Receive Principal and Interest......................40
    Section 5.08      Restoration of Rights and Remedies.........................................................40
    Section 5.09      Rights and Remedies Cumulative.............................................................41
    Section 5.10      Delay or Omission Not a Waiver.............................................................41
    Section 5.11      Control by Noteholders.....................................................................41
    Section 5.12      Waiver of Past Defaults....................................................................41
    Section 5.13      Undertaking for Costs......................................................................42
    Section 5.14      Waiver of Stay or Extension Laws...........................................................42
    Section 5.15      Action on Notes............................................................................42
    Section 5.16      Performance and Enforcement of Certain Obligations.........................................43

                                                   ARTICLE VI THE INDENTURE TRUSTEE

    Section 6.01      Duties of Indenture Trustee................................................................43
    Section 6.02      Rights of Indenture Trustee................................................................45
    Section 6.03      Individual Rights of Indenture Trustee.....................................................46
    Section 6.04      Indenture Trustee's Disclaimer.............................................................46
    Section 6.05      Notice of Defaults.........................................................................47
    Section 6.06      Reports by Securities Administrator to Holders.............................................47
    Section 6.07      Compensation and Indemnity.................................................................47
    Section 6.08      Replacement of Indenture Trustee...........................................................48
    Section 6.09      Successor Indenture Trustee by Merger......................................................48
    Section 6.10      Appointment of Co-Indenture Trustee or Separate Indenture Trustee..........................49
    Section 6.11      Eligibility; Disqualification..............................................................50
    Section 6.12      Representations and Warranties.............................................................50
    Section 6.13      Preferential Collection of Claims Against Issuer...........................................51
    Section 6.14      Reporting Requirements of the Commission...................................................51

                                              ARTICLE VII NOTEHOLDERS' LISTS AND REPORTS

    Section 7.01      Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.....................53
    Section 7.02      Preservation of Information; Communications to Noteholders.................................53
    Section 7.03      Reports by Issuer..........................................................................54
    Section 7.04      Reports by Indenture Trustee...............................................................54

                                           ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES

    Section 8.01      Collection of Money........................................................................55
    Section 8.02      Note Payment Account and Certificate Distribution Account..................................55
    Section 8.03      General Provisions Regarding Accounts......................................................55
    Section 8.04      Release of Collateral......................................................................55

                                                  ARTICLE IX SUPPLEMENTAL INDENTURES

    Section 9.01      Supplemental Indentures Without Consent of Noteholders.....................................56
    Section 9.02      Supplemental Indentures with Consent of Noteholders........................................57
    Section 9.03      Execution of Supplemental Indentures.......................................................58
    Section 9.04      Effect of Supplemental Indenture...........................................................58
    Section 9.05      Conformity with Trust Indenture Act........................................................59
    Section 9.06      Reference in Notes to Supplemental Indentures..............................................59
    Section 9.07      Amendments to Trust Agreement..............................................................59
    Section 9.08      Opinion of Counsel.........................................................................59

                                               ARTICLE X REDEMPTION OR CALL OF THE NOTES

    Section 10.01     Redemption or Call of the Notes............................................................59
    Section 10.02     Form of Redemption or Call Notice..........................................................60
    Section 10.03     Notes Payable on Clean-Up Call Date or Optional Notes Purchase Date........................61

                                                       ARTICLE XI MISCELLANEOUS

    Section 11.01     Compliance Certificates and Opinions, etc..................................................61
    Section 11.02     Form of Documents Delivered to Indenture Trustee...........................................62
    Section 11.03     Acts of Noteholders........................................................................63
    Section 11.04     Notices, etc., to Indenture Trustee, Issuer and Rating Agencies............................63
    Section 11.05     Notices to Noteholders; Waiver.............................................................64
    Section 11.06     Conflict with Trust Indenture Act..........................................................64
    Section 11.07     Effect of Headings and Table of Contents...................................................64
    Section 11.08     Successors and Assigns.....................................................................64
    Section 11.09     Severability...............................................................................65
    Section 11.10     Benefits of Indenture and Consents of Noteholders..........................................65
    Section 11.11     Legal Holidays.............................................................................65
    Section 11.12     Governing Law..............................................................................65
    Section 11.13     Counterparts...............................................................................65
    Section 11.14     Recording of Indenture.....................................................................65
    Section 11.15     Trust Obligations..........................................................................65
    Section 11.16     No Petition................................................................................66
    Section 11.17     Inspection.................................................................................66
    Section 11.18     Agreements of Noteholders..................................................................66

                                                               EXHIBITS

EXHIBIT A-1           Forms of Class A Notes
EXHIBIT A-2           Forms of Privately Offered Notes
EXHIBIT B-1           Form of Rule 144A (QIB) Investment Letter
EXHIBIT B-2           Form of Rule 501(a) Investment Letter
EXHIBIT C             Form of ERISA Affidavit for Class A Notes

         This INDENTURE, dated as of July 1, 2007, is by and among THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a Delaware statutory
trust (the "Issuer"), LASALLE BANK NATIONAL ASSOCIATION, a national banking association, as indenture trustee and not in its
individual capacity (the "Indenture Trustee"), and WELLS FARGO BANK, N.A., a national banking association, as securities
administrator and not in its individual capacity (the "Securities Administrator").

         Each party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders of
the Issuer's Mortgage-Backed Notes, Series 2007-3 in the Classes specified herein:

                                                            GRANTING CLAUSE

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

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

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

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

                                                               ARTICLE I

                                              DEFINITIONS AND INCORPORATION BY REFERENCE

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

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

         Administration Agreement:  The Administration Agreement dated as of July 1, 2007 among the Issuer, the Indenture Trustee,
the Securities Administrator, Wilmington Trust Company, as owner trustee, and the Depositor.

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

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

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

         Class:  All Notes having the same class designation.

         Class A Notes:  Collectively, the Class 1A-1, Class 1A-2, Class 2A-1, Class 2A-2, Class 3A-1, Class 3A-2, Class 4A-1, Class
4A-2, Class 4A-3 and Class 4A-4 Notes.

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

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

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

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

         Commission:  The Securities and Exchange Commission.

         Corporate Trust Office:  The principal office of the Indenture Trustee at which at any particular time its corporate trust
business shall be administered, which office at the date of execution of this Indenture is located at 135 S. LaSalle Street, Suite
1511, Chicago, IL 60603, Attention: Global Securities and Trust Services, Reference: Thornburg 2007-3, or at such other address as
the Indenture Trustee may designate from time to time by notice to the Noteholders, and the Issuer, or the principal corporate trust
office of any successor Indenture Trustee at the address designated by such successor Indenture Trustee by notice to the Noteholders
and the Issuer.

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

         Definitive Notes:  The meaning specified in Section 2.10.

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

         DTC:  The Depository Trust Company.

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

         Event of Default:  The meaning specified in Section 5.01.

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

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

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

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

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

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

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

         Interest Only Notes:  The Class A-X Notes.

         Issuer:  Thornburg Mortgage Securities Trust 2007-3, a Delaware statutory trust, or any successor and, for purposes of any
provision contained herein and required by the TIA, each other obligor on the Notes.

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

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

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

         Note:  Any of the Class 1A-1, Class 1A-2, Class 2A-1, Class 2A-2, Class 3A-1, Class 3A-2, Class 4A-1, Class 4A-2, Class
4A-3, Class 4A-4, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5, Class B-6 and Class A-X Notes issued pursuant to this
Indenture, substantially in the forms attached hereto as Exhibit A.

         Note Depository Agreement:  The agreement dated July 31, 2007, between the Issuer and The Depository Trust Company, as the
initial Clearing Agency, relating to the Book-Entry Notes.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

         Ownership Certificates:  As defined in the Trust Agreement.

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

         PCAOB:  The Public Company Accounting Oversight Board.

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

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

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

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

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

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

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

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

                                    Class             Moody's Rating      S&P Rating
                                  _________________________________________________
                                    1A-1                  Aaa                AAA
                                    1A-2                  Aaa                AAA
                                    2A-1                  Aaa                AAA
                                    2A-2                  Aaa                AAA
                                    3A-1                  Aaa                AAA
                                    3A-2                  Aaa                AAA
                                    4A-1                  Aaa                AAA
                                    4A-2                  Aaa                AAA
                                    4A-3                  Aaa                AAA
                                    4A-4                  Aaa                AAA
                                     A-X                  Aaa                AAA
                                     B-1                  Aa2                N/R
                                     B-2                   A2                N/R
                                     B-3                  Baa2               N/R
                                     B-4                  Ba2                N/R
                                     B-5                   B2                N/R
                                     B-6                  N/R                N/R
                            N/R = Not rated by that Rating Agency

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

         Retained Class A Note:  Any of the Class 2A-2, Class 4A-2 and approximately 48.4217% of the Class 4A-4 Notes acquired by TMI
or an affiliate of TMI on the Closing Date.

         Sale and Servicing Agreement:  The Sale and Servicing Agreement dated as of July 1, 2007, among the Issuer, Structured Asset
Mortgage Investments II, Inc., as depositor, Thornburg Mortgage Home Loans, Inc., as initial seller and sponsor, Thornburg Mortgage
Funding, Inc., as seller, Wells Fargo Bank, N.A., as master servicer and securities administrator, and the Indenture Trustee, as such
may be amended, supplemented or otherwise modified from time to time.

         Sponsor:  Thornburg Mortgage Home Loans, Inc.

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

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

         Subordinated Notes:  The Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Notes.

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

         Section 1.02.     Incorporation by Reference of Trust Indenture Act.  (a)   Whenever this Indenture refers to a provision
of the TIA, the provision is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this
Indenture have the following meanings:

         "Commission" means the Securities and Exchange Commission.

         "indenture securities" means the Notes.

         "indenture security holder" means a Noteholder.

         "indenture to be qualified" means this Indenture.

         "indenture trustee" or "institutional trustee" means the Indenture Trustee.

         "obligor" on the indenture securities means the Issuer and any other obligor on the indenture securities.

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

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

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

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

                  (iii)    "or" is not exclusive;

                  (iv)     "including" means including without limitation;

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

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

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

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

                                                              ARTICLE II

                                                               THE NOTES

         Section 2.01.     Form.  (a) The Notes shall be designated as the "Thornburg Mortgage Securities Trust 2007-3 Mortgage Backed
Notes, Series 2007-3."  Each Class of Notes, together with the Securities Administrator's certificate of authentication, shall be in
substantially the forms set forth in Exhibits A-1 and A-2 with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and
such legends or endorsements placed thereon as may, consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of the Notes.  Any portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

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

         The Notes shall be issued as registered Notes.  Each Class of Class A Notes, except as otherwise provided by supplement to
this Indenture, shall be issued in a denomination of at least $25,000 in principal amount and any larger denomination that is an
integral multiple of $1 approved by the Issuer, such approval to be evidenced by the execution thereof; provided, however, one Note
may be issued in an amount less than the minimum denomination.  Each Class of Privately Offered Notes, except as otherwise provided
by supplement to the Indenture, shall be issued in a denomination of at least $100,000 in principal amount or notional amount (in the
case of the Class A-X Notes), as applicable, and any larger denomination that is an integral multiple of $1 approved by the Issuer,
such approval to be evidenced by the execution thereof; provided, however, one Note of each Class may be issued in an amount less
than the minimum denomination.  Privately Offered Notes may solely be issued, transferred and exchanged in the form of Definitive
Notes.  If the Class A Notes are issuable in whole or in part as Book-Entry Notes, any such Class A Note may provide that it shall
represent the aggregate amount of Outstanding Notes of its Class from time to time endorsed thereon and may provide that the
aggregate amount of Outstanding Notes of its Class represented thereby may from time to time be reduced to reflect exchanges or
increased to reflect the issuance of an additional principal amount of Notes of such Class.  Any endorsement of a Book-Entry Note to
reflect the amount, or any increase or decrease in the amount, of Outstanding Notes represented thereby shall be made in such manner
and by such Person or Persons, as shall be specified therein or in the Issuer Order of authentication delivered to the Securities
Administrator.

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

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

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

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

                                                  Class Principal
               Class                            or Notional Amount                    Stated Maturity Date
           ________________________________________________________________________________________________
               1A-1                                $323,148,000                            June 2047
               1A-2                                 $56,850,000                             June 2047
               2A-1                                $199,496,000                            June 2047
               2A-2                                 $10,471,000                             June 2047
               3A-1                                $456,823,000                            June 2047
               3A-2                                 $23,977,000                             June 2047
               4A-1                                $139,776,000                            June 2047
               4A-2                                 $7,336,000                              June 2047
               4A-3                                $175,000,000                            June 2047
               4A-4                                 $19,388,000                             June 2047
                A-X                               $1,412,265,000*                           June 2047
                B-1                                 $30,395,000                             June 2047
                B-2                                 $13,344,000                             June 2047
                B-3                                 $8,155,000                              June 2047
                B-4                                 $7,413,000                              June 2047
                B-5                                 $5,931,000                              June 2047
                B-6                                 $5,189,368                              June 2047
___________________
   * Notional Amount

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                                              ARTICLE III

                                                               COVENANTS

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

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

         Section 3.02.     Maintenance of Office or Agency.  The Note Registrar on behalf of the Issuer will maintain an office or
agency where Notes may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the Issuer
in respect of the Notes and this Indenture may be served.  As of the Closing Date, the Note Registrar designates the following office
for such purposes: Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

         Section 3.09.     Annual Statement as to Compliance.  So long as the Notes are outstanding, the Issuer will deliver to the
Securities Administrator, within 120 days after the end of each fiscal year of the Issuer (commencing with the fiscal year 2007), an
Officer's Certificate stating, as to the Authorized Officer signing such Officer's Certificate, that:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                                              ARTICLE IV

                                                      SATISFACTION AND DISCHARGE

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

         (I)  either

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

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

                           (i)      have become due and payable,

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

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

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

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

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

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

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

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

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

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

                                                               ARTICLE V

                                                      EVENTS OF DEFAULT; REMEDIES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                                              ARTICLE VI

                                                         THE INDENTURE TRUSTEE

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

         (a)  Assessment of Compliance.

                  (i)      By March 15 of each year, commencing in March 2008, the Paying Agent, at its own expense, shall furnish,
         and shall cause any Subservicer or Subcontractor engaged by it to furnish, at its own expense, to the Sponsor, the
         Depositor, the Owner Trustee and the Securities Administrator, a report on an assessment of compliance with the Relevant
         Servicing Criteria as set forth on Exhibit K to the Sale and Servicing Agreement that contains (A) a statement by such party
         of its responsibility for assessing compliance with the Relevant Servicing Criteria, (B) a statement that such party used
         the Servicing Criteria to assess compliance with the Relevant Servicing Criteria, (C) such party's assessment of compliance
         with the Relevant Servicing Criteria as of and for the fiscal year covered by the Form 10-K required to be filed pursuant to
         Section 3.19(b) of the Sale and Servicing Agreement, including, if there has been any material instance of noncompliance
         with the Relevant Servicing Criteria, a discussion of each such failure and the nature and status thereof, and (D) a
         statement that a registered public accounting firm has issued an attestation report on such party's assessment of compliance
         with the Relevant Servicing Criteria as of and for such period.   The Depositor may rely on such certification provided by
         the Paying Agent in signing a Sarbanes Certification and causing such certification to be filed with the Commission.

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

         (b)      By March 15 of each year, commencing in March 2008, the Paying Agent, at its own expense, shall cause, and shall
cause any Subservicer or Subcontractor engaged by it to cause, at its own expense, a registered public accounting firm (which may
also render other services to the Securities Administrator) that is a member of the American Institute of Certified Public
Accountants to furnish a report to the Sponsor, the Depositor, the Securities Administrator and the Owner Trustee, to the effect that
(A) it has obtained a representation regarding certain matters from the management of such party, which includes an assertion that
such party has complied with the Relevant Servicing Criteria, and (B) on the basis of an examination conducted by such firm in
accordance with standards for attestation engagements issued or adopted by the PCAOB, it is expressing an opinion as to whether such
party's compliance with the Relevant Servicing Criteria was fairly stated in all material respects, or it cannot express an overall
opinion regarding such party's assessment of compliance with the Relevant Servicing Criteria.  In the event that an overall opinion
cannot be expressed, such registered public accounting firm shall state in such report why it was unable to express such an opinion.
Such report must be available for general use and not contain restricted use language.

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

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

         (e)      The Paying Agent shall deliver to the Sponsor, the Depositor, the Securities Administrator and the Owner Trustee on
or before March 15 of each year, commencing on March 15, 2008, an Officer's Certificate, certifying that with respect to the period
ending December 31 of the prior year: (i) such Servicing Officer has reviewed the activities of such party during the preceding
calendar year or portion thereof and its performance under this Indenture, (ii) to the best of such Servicing Officer's knowledge,
based on such review, the Paying Agent has performed and fulfilled its duties, responsibilities and obligations under this Indenture,
in all material respects throughout such year, or, if there has been a default in the fulfillment of any such duties,
responsibilities or obligations, specifying each such default known to such Servicing Officer and the nature and status thereof,
(iii) nothing has come to the attention of such Servicing Officer to lead such Servicing Officer to believe that the Paying Agent has
failed to perform any of its duties, responsibilities and obligations under this Indenture, in all material respects throughout such
year, or, if there has been a material default in the performance or fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and status thereof.

                                                              ARTICLE VII

                                                    NOTEHOLDERS' LISTS AND REPORTS

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

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

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

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

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

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

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

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

         Section 7.04.     Reports by Indenture Trustee.   If required by TIA Section 313(a), within 60 days after each March 1,
beginning with March 1, 2008, the Indenture Trustee shall mail to each Noteholder as required by TIA Section 313(c) a brief report
dated as of such date that complies with TIA Section 313(a). The Indenture Trustee also shall comply with TIA Section 313(b).

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

                                                             ARTICLE VIII

                                                 ACCOUNTS, DISBURSEMENTS AND RELEASES

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

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

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

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

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

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

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

                                                              ARTICLE IX

                                                        SUPPLEMENTAL INDENTURES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                                               ARTICLE X

                                                    REDEMPTION OR CALL OF THE NOTES

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

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

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

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

         All notices of redemption or call shall state:

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

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

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

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

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

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

                                                              ARTICLE XI

                                                             MISCELLANEOUS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                                     THORNBURG MORTGAGE SECURITIES TRUST 2007-3, as Issuer

                                                        By:  WILMINGTON TRUST COMPANY,
                                                        not in its individual capacity but solely as
                                                        Owner Trustee

                                                        By:  /s/ James P. Lawler
                                                        Name:James P. Lawler
                                                        Title:Vice President

                                                     WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                                        Administrator

                                                        By:  /s/ Carla S. Walker
                                                        Name:Carla S. Walker
                                                        Title:Vice President

                                                     LASALLE BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as
                                                        Indenture Trustee

                                                        By:  /s/ Rita Lopez
                                                        Name:Rita Lopez
                                                        Title:Vice President

                                                              EXHIBIT A-1

                                                        FORMS OF CLASS A NOTES

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &amp; CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &amp; CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &amp; CO., HAS AN INTEREST HEREIN.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
FOREGOING ("BENEFIT PLAN"), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT THE ACQUISITION AND HOLDING OF THIS NOTE:  (X) WILL
NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED BY
PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE
PROVIDER EXEMPTION UNDER SECTION 408(B)(17) OF ERISA OR SOME OTHER APPLICABLE EXEMPTION AND (Y) WILL NOT RESULT IN A NON-EXEMPT
VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW.  EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER
THIS NOTE IN VIOLATION OF THE FOREGOING.

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                           CLASS 1A-1 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class 1A-1 Notes:  $323,148,000                            $323,148,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AA9

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE &amp; CO., or registered assigns, the principal sum of
THREE HUNDRED TWENTY-THREE MILLION ONE HUNDRED FORTY-EIGHT THOUSAND DOLLARS AND NO/100 ($323,148,000) payable on each Payment Date in
an amount equal to the result obtained by multiplying (A) a fraction the numerator of which is $323,148,000 and the denominator of
which is the aggregate original principal amount of all Class 1A-1 Notes issued on the Closing Date, by (B) the aggregate amount, if
any, payable from the Note Account in respect of principal on the Class 1A-1 Notes pursuant to Section 5.01 of the sale and servicing
agreement, dated as of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer, Thornburg Mortgage Home Loans, Inc., as
Initial Seller, Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo
Bank, N.A., as Master Servicer and Securities Administrator (the "Securities Administrator") and LaSalle Bank National Association, a
national banking association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in the Indenture dated as
of July 1, 2007 (the "Indenture"), among the Issuer, the Indenture Trustee and Wells Fargo Bank, N.A., the Securities Administrator.
Capitalized terms used but not defined herein are as defined in the Indenture and the Sale and Servicing Agreement, which agreements
also contain rules as to construction that shall be applicable herein.

The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the principal amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) on each Payment Date until the principal of this Note is paid or made available for payment in full.

Interest on this Note will accrue for each Payment Date during the period beginning on the immediately preceding Payment Date (or
July 31, 2007, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date (each,
an "Accrual Period").  Interest will be computed on the basis of a 360-day year and the actual number of days elapsed in the related
Accrual Period.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:_______________________________________________________
                                               Authorized Signatory

                                            Dated:   ______________, 2007

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:_____________________________________________________
                                               Authorized Signatory

                                            Dated:   ______________, 2007

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &amp; CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &amp; CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &amp; CO., HAS AN INTEREST HEREIN.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
FOREGOING ("BENEFIT PLAN"), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT THE ACQUISITION AND HOLDING OF THIS NOTE:  (X) WILL
NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED BY
PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE
PROVIDER EXEMPTION UNDER SECTION 408(B)(17) OF ERISA OR SOME OTHER APPLICABLE EXEMPTION AND (Y) WILL NOT RESULT IN A NON-EXEMPT
VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW.  EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER
THIS NOTE IN VIOLATION OF THE FOREGOING.

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                           CLASS 1A-2 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class 1A-2 Notes:  $56,850,000                             $56,850,000

Interest Rate:  Adjustable CUSIP:  88522X AB7

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE &amp; CO., or registered assigns, the principal sum of
FIFTY-SIX MILLION EIGHT HUNDRED FIFTY THOUSAND DOLLARS AND NO/100 ($56,850,000) payable on each Payment Date in an amount equal to
the result obtained by multiplying (A) a fraction the numerator of which is $56,850,000 and the denominator of which is the aggregate
original principal amount of all Class 1A-2 Notes issued on the Closing Date, by (B) the aggregate amount, if any, payable from the
Note Account in respect of principal on the Class 1A-2 Notes pursuant to Section 5.01 of the sale and servicing agreement, dated as
of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer, Thornburg Mortgage Home Loans, Inc., as Initial Seller,
Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank, N.A., as
Master Servicer and Securities Administrator (the "Securities Administrator") and LaSalle Bank National Association, a national
banking association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall be due and
payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in the Indenture dated as of July
1, 2007 (the "Indenture"), among the Issuer, the Indenture Trustee and the Securities Administrator.  Capitalized terms used but not
defined herein are as defined in the Indenture and the Sale and Servicing Agreement, which agreements also contain rules as to
construction that shall be applicable herein.

The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the principal amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) on each Payment Date until the principal of this Note is paid or made available for payment in full.

Interest on this Note will accrue for each Payment Date during the period beginning on the immediately preceding Payment Date (or
July 31, 2007, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date (each,
an "Accrual Period").  Interest will be computed on the basis of a 360-day year and the actual number of days elapsed in the related
Accrual Period.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:________________________________________________________
                                               Authorized Signatory

                                            Dated:   July ___, 2007

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:________________________________________________________
                                               Authorized Signatory

                                            Dated:   July ___, 2007

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &amp; CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &amp; CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &amp; CO., HAS AN INTEREST HEREIN.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
FOREGOING ("BENEFIT PLAN"), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT THE ACQUISITION AND HOLDING OF THIS NOTE:  (X) WILL
NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED BY
PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE
PROVIDER EXEMPTION UNDER SECTION 408(B)(17) OF ERISA OR SOME OTHER APPLICABLE EXEMPTION AND (Y) WILL NOT RESULT IN A NON-EXEMPT
VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW.  EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER
THIS NOTE IN VIOLATION OF THE FOREGOING.

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                           CLASS 2A-1 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class 2A-1 Notes:  $199,496,000                            $199,496,000

Interest Rate:  Adjustable CUSIP:  88522X AC5

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, A STATUTORY TRUST ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF DELAWARE (HEREIN
REFERRED TO AS THE "ISSUER"), FOR VALUE RECEIVED, HEREBY PROMISES TO PAY TO CEDE &amp; CO., OR REGISTERED ASSIGNS, THE PRINCIPAL SUM OF
ONE HUNDRED NINETY-NINE MILLION FOUR HUNDRED NINETY-SIX THOUSAND DOLLARS AND NO/100 ($199,496,000) PAYABLE ON EACH PAYMENT DATE IN AN
AMOUNT EQUAL TO THE RESULT OBTAINED BY MULTIPLYING (A) A FRACTION THE NUMERATOR OF WHICH IS $199,496,000 AND THE DENOMINATOR OF WHICH
IS THE AGGREGATE ORIGINAL PRINCIPAL AMOUNT OF ALL CLASS 2A-1 NOTES ISSUED ON THE CLOSING DATE, BY (B) THE AGGREGATE AMOUNT, IF ANY,
PAYABLE FROM THE NOTE ACCOUNT IN RESPECT OF PRINCIPAL ON THE CLASS 2A-1 NOTES PURSUANT TO SECTION 5.01 OF THE SALE AND SERVICING
AGREEMENT, DATED AS OF JULY 1, 2007 (THE "SALE AND SERVICING AGREEMENT"), AMONG THE ISSUER, THORNBURG MORTGAGE HOME LOANS, INC., AS
INITIAL SELLER, THORNBURG MORTGAGE FUNDING, INC., AS SELLER, STRUCTURED ASSET MORTGAGE INVESTMENTS II INC., AS DEPOSITOR, WELLS FARGO
BANK, N.A., AS MASTER SERVICER AND SECURITIES ADMINISTRATOR (THE "SECURITIES ADMINISTRATOR") AND LASALLE BANK NATIONAL ASSOCIATION, A
NATIONAL BANKING ASSOCIATION, AS INDENTURE TRUSTEE; PROVIDED, HOWEVER, THAT THE ENTIRE UNPAID PRINCIPAL AMOUNT OF THIS NOTE SHALL BE
DUE AND PAYABLE ON THE PAYMENT DATE OCCURRING IN JUNE 2047 (THE "MATURITY DATE") OR AS OTHERWISE SPECIFIED IN THE INDENTURE DATED AS
OF JULY 1, 2007 (THE "INDENTURE"), BETWEEN THE ISSUER, THE INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR.  CAPITALIZED TERMS
USED BUT NOT DEFINED HEREIN ARE AS DEFINED IN THE INDENTURE AND THE SALE AND SERVICING AGREEMENT, WHICH AGREEMENTS ALSO CONTAIN RULES
AS TO CONSTRUCTION THAT SHALL BE APPLICABLE HEREIN.

The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the principal amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) on each Payment Date until the principal of this Note is paid or made available for payment in full.

Interest on this Note will accrue for each Payment Date during the period beginning on the immediately preceding Payment Date (or
July 31, 2007, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date (each,
an "Accrual Period").  Interest will be computed on the basis of a 360-day year and the actual number of days elapsed in the related
Accrual Period.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:_________________________________________________________
                                               Authorized Signatory

                                            Dated:   July ___, 2007

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:_______________________________________________________
                                               Authorized Signatory

                                            Dated:   July ___, 2007

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &amp; CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &amp; CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &amp; CO., HAS AN INTEREST HEREIN.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

THIS NOTE MAY NOT BE ACQUIRED BY A PURCHASER OR TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO
HOLD THE PLAN ASSETS OF THE FOREGOING ("BENEFIT PLAN").  NOTWITHSTANDING THE FOREGOING, IF THIS NOTE IS TRANSFERRED TO A PURCHASER OR
TRANSFEREE THAT NOT THE SPONSOR, THE SELLER OR ONE OF THEIR AFFILIATES, SUCH PURCHASER OR TRANSFEREE MAY ACQUIRE SUCH NOTE FOR, OR
WITH THE ASSETS OF, A BENEFIT PLAN IF SUCH PURCHASER OR TRANSFEREE REPRESENTS (OR WILL BE DEEMED TO REPRESENT, AS APPLICABLE) THAT
(I) AT THE DATE OF TRANSFER, SUCH NOTE IS RATED INVESTMENT GRADE OR BETTER, (II) SUCH PURCHASER OR TRANSFEREE BELIEVES THAT SUCH NOTE
IS PROPERLY TREATED AS INDEBTEDNESS WITH SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF THE PLAN ASSETS REGULATIONS (BASED IN PART ON
THE ISSUANCE OF AN OPINION OF COUNSEL OF NATIONALLY RECOGNIZED STANDING IN THE UNITED STATES EXPERIENCED IN SUCH MATTERS THAT, UNDER
THE RELEVANT FACTS AND CIRCUMSTANCES, SUCH NOTE WILL BE CLASSIFIED AS DEBT INSTRUMENTS FOR U.S. FEDERAL INCOME TAX PURPOSES) AND
AGREES TO SO TREAT SUCH NOTES AND (III) ITS ACQUISITION AND HOLDING OF SUCH NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED UNDER AN INVESTOR-BASED EXEMPTION OR SOME
OTHER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION, AND WILL NOT CAUSE A NON-EXEMPT VIOLATION OF ANY SIMILAR LAW.

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                           CLASS 2A-2 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class 2A-2 Notes:  $10,471,000                             $10,471,000

Interest Rate:  Adjustable CUSIP:  88522X AD3

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE &amp; CO., or registered assigns, the principal sum of
TEN MILLION FOUR HUNDRED SEVENTY-ONE THOUSAND DOLLARS AND NO/100 ($10,471,000) payable on each Payment Date in an amount equal to the
result obtained by multiplying (A) a fraction the numerator of which is $10,471,000 and the denominator of which is the aggregate
original principal amount of all Class 2A-2 Notes issued on the Closing Date, by (B) the aggregate amount, if any, payable from the
Note Account in respect of principal on the Class 2A-2 Notes pursuant to Section 5.01 of the sale and servicing agreement, dated as
of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer, Thornburg Mortgage Home Loans, Inc., as Initial Seller,
Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank, N.A., as
Master Servicer and Securities Administrator (the "Securities Administrator") and LaSalle Bank National Association, a national
banking association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall be due and
payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in the Indenture dated as of July
1, 2007 (the "Indenture"), among the Issuer, the Indenture Trustee and the Securities Administrator.  Capitalized terms used but not
defined herein are as defined in the Indenture and the Sale and Servicing Agreement, which agreements also contain rules as to
construction that shall be applicable herein.

The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the principal amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) on each Payment Date until the principal of this Note is paid or made available for payment in full.

Interest on this Note will accrue for each Payment Date during the period beginning on the immediately preceding Payment Date (or
July 31, 2007, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date (each,
an "Accrual Period").  Interest will be computed on the basis of a 360-day year and the actual number of days elapsed in the related
Accrual Period.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:__________________________________________________________
                                               Authorized Signatory

                                            Dated:   July ___, 2007

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:___________________________________________________________
                                               Authorized Signatory

                                            Dated:   July ___, 2007

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &amp; CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &amp; CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &amp; CO., HAS AN INTEREST HEREIN.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
FOREGOING ("BENEFIT PLAN"), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT THE ACQUISITION AND HOLDING OF THIS NOTE:  (X) WILL
NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED BY
PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE
PROVIDER EXEMPTION UNDER SECTION 408(B)(17) OF ERISA OR SOME OTHER APPLICABLE EXEMPTION AND (Y) WILL NOT RESULT IN A NON-EXEMPT
VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW.  EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER
THIS NOTE IN VIOLATION OF THE FOREGOING.

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                           CLASS 3A-1 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class 3A-1 Notes:  $456,823,000                            $456,823,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AE1

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE &amp; CO., or registered assigns, the principal sum of
FOUR HUNDRED FIFTY-SIX MILLION EIGHT HUNDRED TWENTY-THREE THOUSAND DOLLARS AND NO/100 ($456,823,000) payable on each Payment Date in
an amount equal to the result obtained by multiplying (A) a fraction the numerator of which is $456,823,000 and the denominator of
which is the aggregate original principal amount of all Class 3A-1 Notes issued on the Closing Date, by (B) the aggregate amount, if
any, payable from the Note Account in respect of principal on the Class 3A-1 Notes pursuant to Section 5.01 of the sale and servicing
agreement, dated as of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer, Thornburg Mortgage Home Loans, Inc., as
Initial Seller, Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo
Bank, N.A., as Master Servicer and Securities Administrator (the "Securities Administrator") and LaSalle Bank National Association, a
national banking association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on the Payment Date occurring in June 2037 (the "Maturity Date") or as otherwise specified in the Indenture dated as
of July 1, 2007 (the "Indenture"), between the Issuer, the Indenture Trustee and the Securities Administrator.  Capitalized terms
used but not defined herein are as defined in the Indenture and the Sale and Servicing Agreement, which agreements also contain rules
as to construction that shall be applicable herein.

The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the principal amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) on each Payment Date until the principal of this Note is paid or made available for payment in full.

Interest on this Note will accrue for each Payment Date during the period beginning on the immediately preceding Payment Date (or
July 31, 2007, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date (each,
an "Accrual Period").  Interest will be computed on the basis of a 360-day year and the actual number of days elapsed in the related
Accrual Period.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:___________________________________________________________
                                                  Authorized Signatory

TOR'S CERTIFICATE OF AUTHENTICATION

This is one of the

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:___________________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &amp; CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &amp; CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &amp; CO., HAS AN INTEREST HEREIN.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
FOREGOING ("BENEFIT PLAN"), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT THE ACQUISITION AND HOLDING OF THIS NOTE:  (X) WILL
NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED BY
PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE
PROVIDER EXEMPTION UNDER SECTION 408(B)(17) OF ERISA OR SOME OTHER APPLICABLE EXEMPTION AND (Y) WILL NOT RESULT IN A NON-EXEMPT
VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW.  EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER
THIS NOTE IN VIOLATION OF THE FOREGOING.

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                           CLASS 3A-2 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class 3A-2 Notes:  $23,977,000                             $23,977,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AF8

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE &amp; CO., or registered assigns, the principal sum of
TWENTY-THREE MILLION NINE HUNDRED SEVENTY-SEVEN THOUSAND DOLLARS AND NO/100 ($23,977,000) payable on each Payment Date in an amount
equal to the result obtained by multiplying (A) a fraction the numerator of which is $23,977,000 and the denominator of which is the
aggregate original principal amount of all Class 3A-2 Notes issued on the Closing Date, by (B) the aggregate amount, if any, payable
from the Note Account in respect of principal on the Class 3A-2 Notes pursuant to Section 5.01 of the sale and servicing agreement,
dated as of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer, Thornburg Mortgage Home Loans, Inc., as Initial
Seller, Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank,
N.A., as Master Servicer and Securities Administrator (the "Securities Administrator") and LaSalle Bank National Association, a
national banking association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on the Payment Date occurring in June 2037 (the "Maturity Date") or as otherwise specified in the Indenture dated as
of July 1, 2007 (the "Indenture"), between the Issuer, the Indenture Trustee and the Securities Administrator.  Capitalized terms
used but not defined herein are as defined in the Indenture and the Sale and Servicing Agreement, which agreements also contain rules
as to construction that shall be applicable herein.

The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the principal amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) on each Payment Date until the principal of this Note is paid or made available for payment in full.

Interest on this Note will accrue for each Payment Date during the period beginning on the immediately preceding Payment Date (or
July 31, 2007, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date (each,
an "Accrual Period").  Interest will be computed on the basis of a 360-day year and the actual number of days elapsed in the related
Accrual Period.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:___________________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:___________________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &amp; CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
FOREGOING ("BENEFIT PLAN"), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT THE ACQUISITION AND HOLDING OF THIS NOTE:  (X) WILL
NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED BY
PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE
PROVIDER EXEMPTION UNDER SECTION 408(B)(17) OF ERISA OR SOME OTHER APPLICABLE EXEMPTION AND (Y) WILL NOT RESULT IN A NON-EXEMPT
VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW.  EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER
THIS NOTE IN VIOLATION OF THE FOREGOING.

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                           CLASS 4A-1 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class 4A-1 Notes:  $139,776,000                            $139,776,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AG6

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
ONE HUNDRED THIRTY-NINE MILLION SEVEN HUNDRED SEVENTY-SIX THOUSAND DOLLARS AND NO/100 ($139,776,000) payable on each Payment Date in
an amount equal to the result obtained by multiplying (A) a fraction the numerator of which is $139,776,000 and the denominator of
which is the aggregate original principal amount of all Class 4A-1 Notes issued on the Closing Date, by (B) the aggregate amount, if
any, payable from the Note Account in respect of principal on the Class 4A-1 Notes pursuant to Section 5.01 of the sale and servicing
agreement, dated as of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer, Thornburg Mortgage Home Loans, Inc., as
Initial Seller, Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo
Bank, N.A., as Master Servicer and Securities Administrator (the "Securities Administrator") and LaSalle Bank National Association, a
national banking association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in the Indenture dated as
of July 1, 2007 (the "Indenture"), between the Issuer, the Indenture Trustee and the Securities Administrator.  Capitalized terms
used but not defined herein are as defined in the Indenture and the Sale and Servicing Agreement, which agreements also contain rules
as to construction that shall be applicable herein.

The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the principal amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) on each Payment Date until the principal of this Note is paid or made available for payment in full.

Interest on this Note will accrue for each Payment Date during the period beginning on the immediately preceding Payment Date (or
July 31, 2007, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date (each,
an "Accrual Period").  Interest will be computed on the basis of a 360-day year and the actual number of days elapsed in the related
Accrual Period.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:___________________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:___________________________________________________________
                                                  Authorized Signatory

Dated:   July ___, 2007

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

THIS NOTE MAY NOT BE ACQUIRED BY A PURCHASER OR TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO
HOLD THE PLAN ASSETS OF THE FOREGOING ("BENEFIT PLAN").  NOTWITHSTANDING THE FOREGOING, IF THIS NOTE IS TRANSFERRED TO A PURCHASER OR
TRANSFEREE THAT NOT THE SPONSOR, THE SELLER OR ONE OF THEIR AFFILIATES, SUCH PURCHASER OR TRANSFEREE MAY ACQUIRE SUCH NOTE FOR, OR
WITH THE ASSETS OF, A BENEFIT PLAN IF SUCH PURCHASER OR TRANSFEREE REPRESENTS (OR WILL BE DEEMED TO REPRESENT, AS APPLICABLE) THAT
(I) AT THE DATE OF TRANSFER, SUCH NOTE IS RATED INVESTMENT GRADE OR BETTER, (II) SUCH PURCHASER OR TRANSFEREE BELIEVES THAT SUCH NOTE
IS PROPERLY TREATED AS INDEBTEDNESS WITH SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF THE PLAN ASSETS REGULATIONS (BASED IN PART ON
THE ISSUANCE OF AN OPINION OF COUNSEL OF NATIONALLY RECOGNIZED STANDING IN THE UNITED STATES EXPERIENCED IN SUCH MATTERS THAT, UNDER
THE RELEVANT FACTS AND CIRCUMSTANCES, SUCH NOTE WILL BE CLASSIFIED AS DEBT INSTRUMENTS FOR U.S. FEDERAL INCOME TAX PURPOSES) AND
AGREES TO SO TREAT SUCH NOTES AND (III) ITS ACQUISITION AND HOLDING OF SUCH NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED UNDER AN INVESTOR-BASED EXEMPTION OR SOME
OTHER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION, AND WILL NOT CAUSE A NON-EXEMPT VIOLATION OF ANY SIMILAR LAW.

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                           CLASS 4A-2 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class 4A-2 Notes:  $7,336,000                              $7,336,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AH4

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
SEVEN MILLION THREE HUNDRED THIRTY-SIX THOUSAND DOLLARS AND NO/100 ($7,336,000) payable on each Payment Date in an amount equal to
the result obtained by multiplying (A) a fraction the numerator of which is $7,336,000 and the denominator of which is the aggregate
original principal amount of all Class 4A-2 Notes issued on the Closing Date, by (B) the aggregate amount, if any, payable from the
Note Account in respect of principal on the Class 4A-2 Notes pursuant to Section 5.01 of the sale and servicing agreement, dated as
of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer, Thornburg Mortgage Home Loans, Inc., as Initial Seller,
Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank, N.A., as
Master Servicer and Securities Administrator (the "Securities Administrator") and LaSalle Bank National Association, a national
banking association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall be due and
payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in the Indenture dated as of July
1, 2007 (the "Indenture"), between the Issuer, the Indenture Trustee and the Securities Administrator.  Capitalized terms used but
not defined herein are as defined in the Indenture and the Sale and Servicing Agreement, which agreements also contain rules as to
construction that shall be applicable herein.

The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the principal amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) on each Payment Date until the principal of this Note is paid or made available for payment in full.

Interest on this Note will accrue for each Payment Date during the period beginning on the immediately preceding Payment Date (or
July 31, 2007, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date (each,
an "Accrual Period").  Interest will be computed on the basis of a 360-day year and the actual number of days elapsed in the related
Accrual Period.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:___________________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:___________________________________________________________
                                                  Authorized Signatory

Dated:   July ___, 2007

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
FOREGOING ("BENEFIT PLAN"), UNLESS THE TRANSFEREE REPRESENTS AND WARRANTS THAT THE ACQUISITION AND HOLDING OF THIS NOTE:  (X) WILL
NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED BY
PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE
PROVIDER EXEMPTION UNDER SECTION 408(B)(17) OF ERISA OR SOME OTHER APPLICABLE EXEMPTION AND (Y) WILL NOT RESULT IN A NON-EXEMPT
VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW.  EACH INVESTOR IN THIS NOTE WILL BE DEEMED TO MAKE THE FOREGOING
REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER
THIS NOTE IN VIOLATION OF THE FOREGOING.

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                           CLASS 4A-3 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class 4A-3 Notes:  $175,000,000                            $175,000,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AR2

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
ONE HUNDRED SEVENTY-FIVE MILLION DOLLARS AND NO/100 ($175,000,000) payable on each Payment Date in an amount equal to the result
obtained by multiplying (A) a fraction the numerator of which is $175,000,000 and the denominator of which is the aggregate original
principal amount of all Class 4A-3 Notes issued on the Closing Date, by (B) the aggregate amount, if any, payable from the Note
Account in respect of principal on the Class 4A-3 Notes pursuant to Section 5.01 of the sale and servicing agreement, dated as of
July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer, Thornburg Mortgage Home Loans, Inc., as Initial Seller,
Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank, N.A., as
Master Servicer and Securities Administrator (the "Securities Administrator") and LaSalle Bank National Association, a national
banking association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall be due and
payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in the Indenture dated as of July
1, 2007 (the "Indenture"), between the Issuer, the Indenture Trustee and the Securities Administrator.  Capitalized terms used but
not defined herein are as defined in the Indenture and the Sale and Servicing Agreement, which agreements also contain rules as to
construction that shall be applicable herein.

The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the principal amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) on each Payment Date until the principal of this Note is paid or made available for payment in full.

Interest on this Note will accrue for each Payment Date during the period beginning on the immediately preceding Payment Date (or
July 31, 2007, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date (each,
an "Accrual Period").  Interest will be computed on the basis of a 360-day year and the actual number of days elapsed in the related
Accrual Period.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:___________________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:___________________________________________________________
                                                  Authorized Signatory

Dated:   July ___, 2007

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

WITH RESPECT TO A NOTE THAT IS ACQUIRED BY PERSONS OTHER THAN THE SPONSOR, THE SELLER OR ONE OF THEIR AFFILIATES ON THE CLOSING DATE,
SUCH NOTE MAY NOT BE ACQUIRED BY A PURCHASER OR TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO
HOLD THE PLAN ASSETS OF THE FOREGOING ("BENEFIT PLAN"), UNLESS THE PURCHASER OR TRANSFEREE REPRESENTS AND WARRANTS THAT THE
ACQUISITION AND HOLDING OF THIS NOTE:  (X) WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE WHICH IS NOT COVERED BY PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE
95-60, PTCE 96-23, THE NON-FIDUCIARY SERVICE PROVIDER EXEMPTION UNDER SECTION 408(b)(17) OF ERISA OR SOME OTHER APPLICABLE EXEMPTION
AND (Y) WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW.  EACH INVESTOR IN THIS NOTE WILL BE
DEEMED TO MAKE THE FOREGOING REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT THAT IT WILL NOT SELL,
PLEDGE OR OTHERWISE TRANSFER THIS NOTE IN VIOLATION OF THE FOREGOING.

WITH RESPECT TO A NOTE THAT IS ACQUIRED BY THE SPONSOR, THE SELLER OR ONE OF THEIR AFFILIATES ON THE CLOSING DATE, SUCH NOTE MAY NOT
BE ACQUIRED BY A PURCHASER OR TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
FOREGOING ("BENEFIT PLAN").  NOTWITHSTANDING THE FOREGOING, IF THIS NOTE IS TRANSFERRED TO A PURCHASER OR TRANSFEREE THAT NOT THE
SPONSOR, THE SELLER OR ONE OF THEIR AFFILIATES, SUCH PURCHASER OR TRANSFEREE MAY ACQUIRE SUCH NOTE FOR, OR WITH THE ASSETS OF, A
BENEFIT PLAN IF SUCH PURCHASER OR TRANSFEREE REPRESENTS (OR WILL BE DEEMED TO REPRESENT, AS APPLICABLE) THAT (I) AT THE DATE OF
TRANSFER, SUCH NOTE IS RATED INVESTMENT GRADE OR BETTER, (II) SUCH PURCHASER OR TRANSFEREE BELIEVES THAT SUCH NOTE IS PROPERLY
TREATED AS INDEBTEDNESS WITH SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF THE PLAN ASSETS REGULATIONS (BASED IN PART ON THE ISSUANCE
OF AN OPINION OF COUNSEL OF NATIONALLY RECOGNIZED STANDING IN THE UNITED STATES EXPERIENCED IN SUCH MATTERS THAT, UNDER THE RELEVANT
FACTS AND CIRCUMSTANCES, SUCH NOTE WILL BE CLASSIFIED AS DEBT INSTRUMENTS FOR U.S. FEDERAL INCOME TAX PURPOSES) AND AGREES TO SO
TREAT SUCH NOTES AND (III) ITS ACQUISITION AND HOLDING OF SUCH NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WHICH IS NOT COVERED UNDER AN INVESTOR-BASED EXEMPTION OR SOME OTHER APPLICABLE
STATUTORY OR ADMINISTRATIVE EXEMPTION, AND WILL NOT CAUSE A NON-EXEMPT VIOLATION OF ANY SIMILAR LAW.

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                           CLASS 4A-4 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class 4A-4 Notes:  $19,388,000                             $19,388,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AS0

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
NINETEEN MILLION THREE HUNDRED EIGHT-EIGHT THOUSAND DOLLARS AND NO/100 ($19,388,000) payable on each Payment Date in an amount equal
to the result obtained by multiplying (A) a fraction the numerator of which is $19,388,000 and the denominator of which is the
aggregate original principal amount of all Class 4A-4 Notes issued on the Closing Date, by (B) the aggregate amount, if any, payable
from the Note Account in respect of principal on the Class 4A-4 Notes pursuant to Section 5.01 of the sale and servicing agreement,
dated as of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer, Thornburg Mortgage Home Loans, Inc., as Initial
Seller, Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank,
N.A., as Master Servicer and Securities Administrator (the "Securities Administrator") and LaSalle Bank National Association, a
national banking association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in the Indenture dated as
of July 1, 2007 (the "Indenture"), between the Issuer, the Indenture Trustee and the Securities Administrator.  Capitalized terms
used but not defined herein are as defined in the Indenture and the Sale and Servicing Agreement, which agreements also contain rules
as to construction that shall be applicable herein.

The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the principal amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all payments of principal made on such preceding
Payment Date) on each Payment Date until the principal of this Note is paid or made available for payment in full.

Interest on this Note will accrue for each Payment Date during the period beginning on the immediately preceding Payment Date (or
July 31, 2007, in the case of the first Accrual Period) and ending on the day immediately preceding the related Payment Date (each,
an "Accrual Period").  Interest will be computed on the basis of a 360-day year and the actual number of days elapsed in the related
Accrual Period.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.  All payments made by the Issuer with respect to this Note shall be
applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:___________________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:___________________________________________________________
                                                  Authorized Signatory

Dated:   July ___, 2007

 THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED (THE "1933 ACT"),  OR ANY STATE  SECURITIES  LAWS.
NEITHER THIS NOTE NOR ANY INTEREST OR  PARTICIPATION  HEREIN MAY BE REOFFERED,  SOLD,  ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE ONLY (A) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT, (B) TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (C) TO AN "ACCREDITED
INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE 1933 ACT.

THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE
INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THIS NOTE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY PAYMENTS IN RESPECT OF PRINCIPAL.

THIS NOTE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

(I) NO SALE OR TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON EXCEPT IN
CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN (X) ALL OTHER CLASSES OF PRIVATELY OFFERED NOTES
THEN OUTSTANDING AND (Y) OWNERSHIP CERTIFICATES, AND (II) NO SALE OR TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THE OWNERSHIP
CERTIFICATES MAY BE EFFECTUATED EXCEPT IN CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN ALL
CLASSES OF THE PRIVATELY OFFERED NOTES OUTSTANDING, UNLESS, IN THE CASE OF (I) OR (II) ABOVE, THE PROSPECTIVE TRANSFEREE FURNISHES TO
THE SECURITIES ADMINISTRATOR AN OPINION OF COUNSEL CONCLUDING THAT THE TRANSFER WILL NOT CAUSE THE TRUST TO BECOME SUBJECT TO FEDERAL
INCOME TAX AS A CORPORATION.

THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE
FOREGOING ("BENEFIT PLAN").

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,

                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                            CLASS A-X NOTES

Aggregate Original Notional Amount of the                  Original Notional Amount of this Note:
Class A-X Notes:  $1,412,265,000                           $1,412,265,000

                                                           Percentage Interest: 100%

Interest Rate:  Adjustable                                 CUSIP:  88522X AJ0

Number:  1

THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to Thornburg Mortgage, Inc., or registered assigns or such
other Person in whose name this Note is registered at the close of business on the last Business Day of the calendar month
immediately preceding the related Payment Date (the "Record Date") interest in an amount equal to the product of the Percentage
Interest evidenced by this Note and the amount of interest, if any, required to be paid to all Notes of the Class represented by this
Note in accordance with the Indenture and the Sale and Servicing Agreement.

To the extent of Available Funds to pay interest, the Issuer shall pay interest on this Note at a per annum rate equal to the Note
Interest Rate applicable to the Class A-X Note, on the notional amount of this Note outstanding on the immediately preceding Payment
Date (after giving effect to all reductions in such notional amount made on such preceding Payment Date) on each Payment Date until
the notional amount of this Note is reduced to zero.

The Accrual Period applicable to the payment of interest on this Note shall be the calendar month immediately preceding the month of
the related Payment Date.  Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.  Such
interest on this Note shall be paid in the manner specified on the reverse hereof.

All sums payable on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Note.  Capitalized terms used but not defined herein are as defined in the indenture dated as of
July 1, 2007 (the "Indenture") among the Issuer, LaSalle Bank National Association, as indenture trustee (the "Indenture Trustee")
and Wells Fargo Bank, N.A., as securities administrator (the "Securities Administrator") and the sale and servicing agreement dated
as of July 1, 2007 (the "Sale and Servicing Agreement") among the Issuer, Thornburg Mortgage Home Loans, Inc., as Initial Seller,
Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank, N.A., as
Master Servicer, the Securities Administrator and the Indenture Trustee, which agreements also contain rules of construction that
shall be applicable herein.

Unless the certificate of authentication hereon has been executed by the Securities Administrator whose name appears below by manual
signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer,
as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee under the Trust
                                                  Agreement

                                            By:___________________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                                       SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but solely as Securities
                                            Administrator,

                                            By:___________________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                                              THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                 MORTGAGE-BACKED NOTES, SERIES 2007-3

This Note is one of a duly authorized issue of Notes of the Issuer, all issued under the Indenture, to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Notes.  To the extent that any provision of this Note contradicts or is
inconsistent with the provisions of the Indenture or the Sale and Servicing Agreement, the provisions of the Indenture and the Sale
and Servicing Agreement shall control and supersede such contradictory or inconsistent provision herein.  This Note is subject to all
terms of the Indenture and the Sale and Servicing Agreement.

The Class 1A-1 Class 1A-2, Class 2A-1, Class 2A-2, Class 3A-1, Class 3A-2, Class 4A-1, Class 4A-2, Class 4A-3 and Class 4A-4 Notes
(collectively, the "Senior Notes") are, and will be, equally and ratably secured by the collateral pledged as security therefor as
provided in the Indenture.  The rights of the Holders of the Class A-X, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and
Class B-6 Notes (collectively, the "Privately Offered Notes") to receive payments of interest and principal (or, in the case of the
Class A-X Notes, interest only) are, and will be, subordinate to the rights of the Holders of the Senior Notes to receive payments of
interest and principal as provided in the Indenture.

Principal of this Note (other than in the case of the Class A-X Notes) shall be payable on each Payment Date to the extent of
Available Funds to pay principal with respect to that Class of Notes on such Payment Date and in accordance with the priorities set
forth in the Sale and Servicing Agreement.  "Payment Date" means the 25th day of each month or, if any such date is not a Business
Day, the next Business Day, commencing in August 2007.

Payments of interest on this Note due and payable on each Payment Date, together with, except in the case of the Class A-X Notes, the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by check mailed to the Person whose
name appears as the registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of
business on each Record Date, or, upon written request made to the Indenture Trustee at least five Business Days prior to the related
Record Date by the Holder of a Note by wire transfer in immediately available funds to an account specified in the request and at the
expense of such Noteholder, except that, with respect to the Senior Notes issued as Book-Entry Notes, unless Definitive Notes have
been issued pursuant to Section 2.12 of the Indenture, with respect to such Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payment will be made by wire transfer in immediately
available funds to the account designated by such nominee, except for the final installment of principal payable with respect to such
Note on the Maturity Date, which shall be payable as provided in the Indenture.  Checks shall be mailed to the Person entitled
thereto at the address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this
Note be submitted for notation of payment.  Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon
the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not noted hereon.  If funds are expected to
be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Person who was the registered Holder hereof as of the Record Date preceding such Payment Date shall be
notified by the Indenture Trustee, in the name of and on behalf of the Issuer.  Such notice shall be mailed or transmitted by
facsimile prior to such Payment Date, and the amount then due and payable shall be payable only upon presentation and surrender of
this Note at the Indenture Trustee's principal Corporate Trust Office.  The Record Date in the case of the Senior Notes shall be the
Business Day immediately preceding the related Payment Date and in the case of the Privately Offered Notes shall be the last day of
the calendar month immediately preceding the related Payment Date.

As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this Note may be registered on the
Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuer pursuant to
the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder hereof or such Holder's attorney duly authorized in writing, with such signature guaranteed by an
"eligible guarantor institution" meeting the requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent's Medallion Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of
1934, as amended, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees.  No service charge will be charged for any registration of transfer or exchange
of this Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any such registration of transfer or exchange.

Each Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants
and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer on the Notes or under
the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee, the Master
Servicer, the Securities Administrator, the Depositor or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, shareholder, member, beneficiary, agent, officer, director or employee of the
Indenture Trustee, the Master Servicer, the Securities Administrator, the Depositor or the Owner Trustee in its individual capacity,
any holder of a beneficial interest in the Issuer, the Owner Trustee, the Master Servicer, the Securities Administrator, the
Depositor or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual
capacity, except as any such Person may have expressly agreed.

Each Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants
and agrees by accepting the benefits of the Indenture that such Noteholder or Note Owner will not at any time institute against the
Initial Seller, the Seller, the Depositor or the Issuer, or join in any institution against the Initial Seller, the Seller, the
Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under any United
States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture or the
other Operative Agreements.

Each Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, consents to
and agrees to be bound by the terms and conditions of the Indenture and the Sale and Servicing Agreement.

The Issuer has entered into the Indenture and this Note is issued with the intention that, for federal, state and local income,
single business and franchise tax purposes, the Notes (other than the Privately Offered Notes) will qualify as indebtedness secured
by the Collateral.  Each Noteholder, by acceptance of a Note (and each Note Owner by acceptance of a beneficial interest in a Note),
agrees to treat the Senior Notes for all federal, state and local income tax purposes as indebtedness.

Prior to the due presentment for registration of transfer of this Note, the Issuer, the Master Servicer, the Securities
Administrator, the Indenture Trustee and any agent of the Issuer, the Master Servicer, the Securities Administrator or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in
the Indenture) is registered as the owner hereof for all purposes, whether or not this Note be overdue, and none of the Issuer, the
Indenture Trustee, the Securities Administrator or any such agent shall be affected by notice to the contrary.

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time, when authorized by an Issuer
Order, by the Issuer, the Indenture Trustee and the Securities Administrator with the consent of the Holders of not less than 66-2/3%
of the Outstanding Amount of all Notes at the time Outstanding.  The Indenture also contains provisions permitting the Holders of not
less than 50% of the Outstanding Amount of the Priority Class of Notes, to waive compliance by the Issuer with certain provisions of
the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this
Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of
such consent or waiver is made upon this Note.  The Indenture also permits the amendment thereof, when authorized by an Issuer Order,
in certain limited circumstances, or the waiver of certain terms and conditions set forth in the Indenture, without the consent of
Holders of the Notes issued thereunder.

The term "Issuer" as used in this Note includes any successor to the Issuer under the Indenture.

The Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein
set forth.

THIS NOTE AND THE INDENTURE SHALL BE GOVERNED BY AND, CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER AND THEREUNDER SHALL
BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the
Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in
the coin or currency herein prescribed.

                                                              ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:______________________________________________________

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

_______________________________________________________________________________________________________________________________
                                                    (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints ________________________, attorney, to
transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

Dated:_____________________________________*/

Signature Guaranteed:

___________________________________________*/

*/ NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the
within Note in every particular, without alteration, enlargement or any change whatever.  Such signature must be guaranteed by an
"eligible guarantor institution" meeting the requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be determined by the Note Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

                                                              EXHIBIT A-2

                                                   FORMS OF PRIVATELY OFFERED NOTES

         THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"),  OR ANY
STATE  SECURITIES  LAWS.  NEITHER  THIS NOTE NOR ANY  INTEREST  OR  PARTICIPATION  HEREIN MAY BE  REOFFERED,  SOLD,
ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION,  UNLESS
SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

         THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE
ONLY (A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT, (B) TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE 1933 ACT
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (C) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT, OR FOR
THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE 1933 ACT.

         THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR,
THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF
ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

THIS NOTE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY PAYMENTS IN RESPECT OF PRINCIPAL.

THIS NOTE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

(I) NO SALE OR TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY
PERSON EXCEPT IN CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN (X) ALL
OTHER CLASSES OF PRIVATELY OFFERED NOTES THEN OUTSTANDING AND (Y) OWNERSHIP CERTIFICATES, AND (II) NO SALE OR
TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THE OWNERSHIP CERTIFICATES MAY BE EFFECTUATED EXCEPT IN
CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN ALL CLASSES OF THE PRIVATELY
OFFERED NOTES OUTSTANDING, UNLESS, IN THE CASE OF (I) OR (II) ABOVE, THE PROSPECTIVE TRANSFEREE FURNISHES TO THE
SECURITIES ADMINISTRATOR AN OPINION OF COUNSEL CONCLUDING THAT THE TRANSFER WILL NOT CAUSE THE TRUST TO BECOME
SUBJECT TO FEDERAL INCOME TAX AS A CORPORATION.

         THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY
SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING ("BENEFIT PLAN").

                                        THORNBURG MORTGAGE SECURITIES TRUST 2007-3,

                                            MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                  CLASS A-X NOTES

Aggregate Original Notional Amount of the                  Original Notional Amount of this Note:
Class A-X Notes:  $1,412,265,000                           $1,412,265,000

                                                           Percentage Interest: 100%

Interest Rate:  Adjustable                                 CUSIP:  88522X AJ0

Number:  1

         THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the "Issuer"), for value received, hereby promises to pay to
Thornburg Mortgage, Inc., or registered assigns or such other Person in whose name this Note is registered at the
close of business on the last Business Day of the calendar month immediately preceding the related Payment Date
(the "Record Date") interest in an amount equal to the product of the Percentage Interest evidenced by this Note
and the amount of interest, if any, required to be paid to all Notes of the Class represented by this Note in
accordance with the Indenture and the Sale and Servicing Agreement.

         To the extent of Available Funds to pay interest, the Issuer shall pay interest on this Note at a per
annum rate equal to the Note Interest Rate applicable to the Class A-X Note, on the notional amount of this Note
outstanding on the immediately preceding Payment Date (after giving effect to all reductions in such notional
amount made on such preceding Payment Date) on each Payment Date until the notional amount of this Note is
reduced to zero.

         The Accrual Period applicable to the payment of interest on this Note shall be the calendar month
immediately preceding the month of the related Payment Date.  Interest will be computed on the basis of a 360-day
year consisting of twelve 30-day months.  Such interest on this Note shall be paid in the manner specified on the
reverse hereof.

         All sums payable on this Note are payable in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

         Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall
have the same effect as though fully set forth on the face of this Note.  Capitalized terms used but not defined
herein are as defined in the indenture dated as of July 1, 2007 (the "Indenture") among the Issuer, LaSalle Bank
National Association, as indenture trustee (the "Indenture Trustee") and Wells Fargo Bank, N.A., as securities
administrator (the "Securities Administrator") and the sale and servicing agreement dated as of July 1, 2007 (the
"Sale and Servicing Agreement") among the Issuer, Thornburg Mortgage Home Loans, Inc., as Initial Seller,
Thornburg Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells
Fargo Bank, N.A., as Master Servicer, the Securities Administrator and the Indenture Trustee, which agreements
also contain rules of construction that shall be applicable herein.

         Unless the certificate of authentication hereon has been executed by the Securities Administrator whose
name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture
referred to on the reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its
Authorized Officer, as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee
                                                  under the Trust Agreement

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                             SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but
                                            solely as Securities Administrator,

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                                        THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                            MORTGAGE-BACKED NOTES, SERIES 2007-3

         This Note is one of a duly authorized issue of Notes of the Issuer, all issued under the Indenture, to
which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes.
To the extent that any provision of this Note contradicts or is inconsistent with the provisions of the Indenture
or the Sale and Servicing Agreement, the provisions of the Indenture and the Sale and Servicing Agreement shall
control and supersede such contradictory or inconsistent provision herein.  This Note is subject to all terms of
the Indenture and the Sale and Servicing Agreement.

The Class 1A-1 Class 1A-2, Class 2A-1, Class 2A-2, Class 3A-1, Class 3A-2, Class 4A-1, Class 4A-2, Class 4A-3 and
Class 4A-4 Notes (collectively, the "Senior Notes") are, and will be, equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.  The rights of the Holders of the Class
A-X, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Notes (collectively, the "Privately
Offered Notes") to receive payments of interest and principal (or, in the case of the Class A-X Notes, interest
only) are, and will be, subordinate to the rights of the Holders of the Senior Notes to receive payments of
interest and principal as provided in the Indenture.

         Principal of this Note (other than in the case of the Class A-X Notes) shall be payable on each Payment
Date to the extent of Available Funds to pay principal with respect to that Class of Notes on such Payment Date
and in accordance with the priorities set forth in the Sale and Servicing Agreement.  "Payment Date" means the
25th day of each month or, if any such date is not a Business Day, the next Business Day, commencing in August
2007.

         Payments of interest on this Note due and payable on each Payment Date, together with, except in the
case of the Class A-X Notes, the installment of principal, if any, to the extent not in full payment of this
Note, shall be made by check mailed to the Person whose name appears as the registered Holder of this Note (or
one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, or, upon
written request made to the Indenture Trustee at least five Business Days prior to the related Record Date by the
Holder of a Note by wire transfer in immediately available funds to an account specified in the request and at
the expense of such Noteholder, except that, with respect to the Senior Notes issued as Book-Entry Notes, unless
Definitive Notes have been issued pursuant to Section 2.12 of the Indenture, with respect to such Notes
registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be
Cede & Co.), payment will be made by wire transfer in immediately available funds to the account designated by
such nominee, except for the final installment of principal payable with respect to such Note on the Maturity
Date, which shall be payable as provided in the Indenture.  Checks shall be mailed to the Person entitled thereto
at the address of such Person as it appears on the Note Register as of the applicable Record Date without
requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of this
Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding
upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not noted hereon.  If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Person who was the registered Holder hereof as of the Record Date preceding such Payment
Date shall be notified by the Indenture Trustee, in the name of and on behalf of the Issuer.  Such notice shall
be mailed or transmitted by facsimile prior to such Payment Date, and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the Indenture Trustee's principal Corporate Trust
Office.  The Record Date in the case of the Senior Notes shall be the Business Day immediately preceding the
related Payment Date and in the case of the Privately Offered Notes shall be the last day of the calendar month
immediately preceding the related Payment Date.

         As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this
Note may be registered on the Note Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee duly executed by, the Holder hereof
or such Holder's attorney duly authorized in writing, with such signature guaranteed by an "eligible guarantor
institution" meeting the requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent's Medallion Program ("STAMP") or such other "signature guarantee
program" as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended, and thereupon one or more new Notes of
authorized denominations and in the same aggregate principal amount will be issued to the designated transferee
or transferees.  No service charge will be charged for any registration of transfer or exchange of this Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any such registration of transfer or exchange.

         Each Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial
interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer on the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee, the Master Servicer, the Securities Administrator,
the Depositor or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, shareholder, member, beneficiary, agent, officer, director or employee of the
Indenture Trustee, the Master Servicer, the Securities Administrator, the Depositor or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee, the Master Servicer,
the Securities Administrator, the Depositor or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly
agreed.

         Each Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial
interest in a Note, covenants and agrees by accepting the benefits of the Indenture that such Noteholder or Note
Owner will not at any time institute against the Initial Seller, the Seller, the Depositor or the Issuer, or join
in any institution against the Initial Seller, the Seller, the Depositor or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture or the other
Operative Agreements.

         Each Noteholder and Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial
interest in a Note, consents to and agrees to be bound by the terms and conditions of the Indenture and the Sale
and Servicing Agreement.

         The Issuer has entered into the Indenture and this Note is issued with the intention that, for federal,
state and local income, single business and franchise tax purposes, the Notes (other than the Privately Offered
Notes) will qualify as indebtedness secured by the Collateral.  Each Noteholder, by acceptance of a Note (and
each Note Owner by acceptance of a beneficial interest in a Note), agrees to treat the Senior Notes for all
federal, state and local income tax purposes as indebtedness.

         Prior to the due presentment for registration of transfer of this Note, the Issuer, the Master Servicer,
the Securities Administrator, the Indenture Trustee and any agent of the Issuer, the Master Servicer, the
Securities Administrator or the Indenture Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof
for all purposes, whether or not this Note be overdue, and none of the Issuer, the Indenture Trustee, the
Securities Administrator or any such agent shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the
Indenture at any time, when authorized by an Issuer Order, by the Issuer, the Indenture Trustee and the
Securities Administrator with the consent of the Holders of not less than 66-2/3% of the Outstanding Amount of
all Notes at the time Outstanding.  The Indenture also contains provisions permitting the Holders of not less
than 50% of the Outstanding Amount of the Priority Class of Notes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such
consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made
upon this Note.  The Indenture also permits the amendment thereof, when authorized by an Issuer Order, in certain
limited circumstances, or the waiver of certain terms and conditions set forth in the Indenture, without the
consent of Holders of the Notes issued thereunder.

         The term "Issuer" as used in this Note includes any successor to the Issuer under the Indenture.

         The Notes are issuable only in registered form in denominations as provided in the Indenture, subject to
certain limitations therein set forth.

         THIS NOTE AND THE INDENTURE SHALL BE GOVERNED BY AND, CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on
this Note at the times, place and rate, and in the coin or currency herein prescribed.

                                                         ASSIGNMENT

         Social Security or taxpayer I.D. or other identifying number of assignee: ____________________________

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

_______________________________________________________________________________________________________________
                                               (name and address of assignee)

         the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
________________________, attorney, to transfer said Note on the books kept for registration thereof, with full
power of substitution in the premises.

Dated:______________________________________*/

Signature Guaranteed:

____________________________________________*/

*/ NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears
on the face of the within Note in every particular, without alteration, enlargement or any change whatever.  Such
signature must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Note
Registrar, which requirements include membership or participation in STAMP or such other "signature guarantee
program" as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

         THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"),  OR ANY
STATE  SECURITIES  LAWS.  NEITHER  THIS NOTE NOR ANY  INTEREST  OR  PARTICIPATION  HEREIN MAY BE  REOFFERED,  SOLD,
ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION,  UNLESS
SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

         THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE
ONLY (A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT, (B) TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE 1933 ACT
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (C) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT, OR FOR
THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE 1933 ACT.

         THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR,
THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF
ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

         THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

         THIS NOTE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

(I) NO SALE OR TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY
PERSON EXCEPT IN CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN (X) ALL
OTHER CLASSES OF PRIVATELY OFFERED NOTES THEN OUTSTANDING AND (Y) OWNERSHIP CERTIFICATES, AND (II) NO SALE OR
TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THE OWNERSHIP CERTIFICATES MAY BE EFFECTUATED EXCEPT IN
CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN ALL CLASSES OF THE PRIVATELY
OFFERED NOTES OUTSTANDING, UNLESS, IN THE CASE OF (I) OR (II) ABOVE, THE PROSPECTIVE TRANSFEREE FURNISHES TO THE
SECURITIES ADMINISTRATOR AN OPINION OF COUNSEL CONCLUDING THAT THE TRANSFER WILL NOT CAUSE THE TRUST TO BECOME
SUBJECT TO FEDERAL INCOME TAX AS A CORPORATION.

         THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY
SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING ("BENEFIT PLAN").

                                        THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                            MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                  CLASS B-1 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class B-1 Notes:  $30,395,000                              $30,395,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AK7

Number:  1

         THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the "Issuer"), for value received, hereby promises to pay to
Thornburg Mortgage, Inc., or registered assigns, the principal sum of THIRTY MILLION THREE HUNDRED NINETY-FIVE
THOUSAND DOLLARS AND NO/100 ($30,395,000) payable on each Payment Date in an amount equal to the result obtained
by multiplying (A) a fraction the numerator of which is $30,395,000 and the denominator of which is the aggregate
original principal amount of all Class B-1 Notes issued on the Closing Date, by (B) the aggregate amount, if any,
payable from the Note Account in respect of principal on the Class B-1 Notes pursuant to Section 5.01 of the sale
and servicing agreement, dated as of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer,
Thornburg Mortgage Home Loans, Inc., as Initial Seller, Thornburg Mortgage Funding, Inc., as Seller, Structured
Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank, N.A., as Master Servicer and Securities
Administrator (the "Securities Administrator") and LaSalle Bank National Association, a national banking
association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall
be due and payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in
the Indenture dated as of July 1, 2007 (the "Indenture"), among the Issuer, the Indenture Trustee and Wells Fargo
Bank, N.A., the Securities Administrator.  Capitalized terms used but not defined herein are as defined in the
Indenture and the Sale and Servicing Agreement, which agreements also contain rules as to construction that shall
be applicable herein.

         The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the
principal amount of this Note outstanding on the immediately preceding Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date) on each Payment Date until the principal of this Note
is paid or made available for payment in full.

         The Accrual Period for the purpose of determining the amount of accrued interest on this Note with
respect to any Payment Date will be the calendar month immediately preceding the related Payment Date.  Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day months.  Such principal of and
interest on this Note shall be paid in the manner specified on the reverse hereof.

         The principal of and interest on this Note are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.  All payments made by
the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided
above and then to the unpaid principal of this Note.

         Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall
have the same effect as though fully set forth on the face of this Note.

         Unless the certificate of authentication hereon has been executed by the Securities Administrator whose
name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture
referred to on the reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its
Authorized Officer, as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee
                                                  under the Trust Agreement

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                             SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but
                                            solely as Securities Administrator,

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

         THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"),  OR ANY
STATE  SECURITIES  LAWS.  NEITHER  THIS NOTE NOR ANY  INTEREST  OR  PARTICIPATION  HEREIN MAY BE  REOFFERED,  SOLD,
ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION,  UNLESS
SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

         THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE
ONLY (A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT, (B) TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE 1933 ACT
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (C) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT, OR FOR
THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE 1933 ACT.

         THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR,
THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF
ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

         THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

         THIS NOTE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

(I) NO SALE OR TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY
PERSON EXCEPT IN CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN (X) ALL
OTHER CLASSES OF PRIVATELY OFFERED NOTES THEN OUTSTANDING AND (Y) OWNERSHIP CERTIFICATES, AND (II) NO SALE OR
TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THE OWNERSHIP CERTIFICATES MAY BE EFFECTUATED EXCEPT IN
CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN ALL CLASSES OF THE PRIVATELY
OFFERED NOTES OUTSTANDING, UNLESS, IN THE CASE OF (I) OR (II) ABOVE, THE PROSPECTIVE TRANSFEREE FURNISHES TO THE
SECURITIES ADMINISTRATOR AN OPINION OF COUNSEL CONCLUDING THAT THE TRANSFER WILL NOT CAUSE THE TRUST TO BECOME
SUBJECT TO FEDERAL INCOME TAX AS A CORPORATION.

         THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY
SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING ("BENEFIT PLAN").

                                        THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                            MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                  CLASS B-2 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class B-2 Notes:  $13,344,000                              $13,344,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AL5

Number:  1

         THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the "Issuer"), for value received, hereby promises to pay to
Thornburg Mortgage, Inc., or registered assigns, the principal sum of THIRTEEN MILLION THREE HUNDRED FORTY-FOUR
THOUSAND DOLLARS AND NO/100 ($13,344,000) payable on each Payment Date in an amount equal to the result obtained
by multiplying (A) a fraction the numerator of which is $13,344,000 and the denominator of which is the aggregate
original principal amount of all Class B-2 Notes issued on the Closing Date, by (B) the aggregate amount, if any,
payable from the Note Account in respect of principal on the Class B-2 Notes pursuant to Section 5.01 of the sale
and servicing agreement, dated as of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer,
Thornburg Mortgage Home Loans, Inc., as Initial Seller, Thornburg Mortgage Funding, Inc., as Seller, Structured
Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank, N.A., as Master Servicer and Securities
Administrator (the "Securities Administrator") and LaSalle Bank National Association, a national banking
association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall
be due and payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in
the Indenture dated as of July 1, 2007 (the "Indenture"), among the Issuer, the Indenture Trustee and Wells Fargo
Bank, N.A., the Securities Administrator.  Capitalized terms used but not defined herein are as defined in the
Indenture and the Sale and Servicing Agreement, which agreements also contain rules as to construction that shall
be applicable herein.

         The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the
principal amount of this Note outstanding on the immediately preceding Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date) on each Payment Date until the principal of this Note
is paid or made available for payment in full.

         The Accrual Period for the purpose of determining the amount of accrued interest on this Note with
respect to any Payment Date will be the calendar month immediately preceding the related Payment Date.  Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day months.  Such principal of and
interest on this Note shall be paid in the manner specified on the reverse hereof.

         The principal of and interest on this Note are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.  All payments made by
the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided
above and then to the unpaid principal of this Note.

         Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall
have the same effect as though fully set forth on the face of this Note.

         Unless the certificate of authentication hereon has been executed by the Securities Administrator whose
name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture
referred to on the reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its
Authorized Officer, as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee
                                                  under the Trust Agreement

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                             SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but
                                            solely as Securities Administrator,

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

         THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"),  OR ANY
STATE  SECURITIES  LAWS.  NEITHER  THIS NOTE NOR ANY  INTEREST  OR  PARTICIPATION  HEREIN MAY BE  REOFFERED,  SOLD,
ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION,  UNLESS
SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

         THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE
ONLY (A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT, (B) TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE 1933 ACT
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (C) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT, OR FOR
THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE 1933 ACT.

         THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR,
THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF
ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

         THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

         THIS NOTE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

(I) NO SALE OR TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY
PERSON EXCEPT IN CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN (X) ALL
OTHER CLASSES OF PRIVATELY OFFERED NOTES THEN OUTSTANDING AND (Y) OWNERSHIP CERTIFICATES, AND (II) NO SALE OR
TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THE OWNERSHIP CERTIFICATES MAY BE EFFECTUATED EXCEPT IN
CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN ALL CLASSES OF THE PRIVATELY
OFFERED NOTES OUTSTANDING, UNLESS, IN THE CASE OF (I) OR (II) ABOVE, THE PROSPECTIVE TRANSFEREE FURNISHES TO THE
SECURITIES ADMINISTRATOR AN OPINION OF COUNSEL CONCLUDING THAT THE TRANSFER WILL NOT CAUSE THE TRUST TO BECOME
SUBJECT TO FEDERAL INCOME TAX AS A CORPORATION.

         THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY
SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING ("BENEFIT PLAN").

                                        THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                            MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                  CLASS B-3 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class B-3 Notes:  $8,155,000                               $8,155,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AM3

Number:  1

         THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the "Issuer"), for value received, hereby promises to pay to
Thornburg Mortgage, Inc., or registered assigns, the principal sum of EIGHT MILLION ONE HUNDRED FIFTY-FIVE
THOUSAND DOLLARS AND NO/100 ($8,155,000) payable on each Payment Date in an amount equal to the result obtained
by multiplying (A) a fraction the numerator of which is $8,155,000 and the denominator of which is the aggregate
original principal amount of all Class B-3 Notes issued on the Closing Date, by (B) the aggregate amount, if any,
payable from the Note Account in respect of principal on the Class B-3 Notes pursuant to Section 5.01 of the sale
and servicing agreement, dated as of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer,
Thornburg Mortgage Home Loans, Inc., as Initial Seller, Thornburg Mortgage Funding, Inc., as Seller, Structured
Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank, N.A., as Master Servicer and Securities
Administrator (the "Securities Administrator") and LaSalle Bank National Association, a national banking
association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall
be due and payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in
the Indenture dated as of July 1, 2007 (the "Indenture"), among the Issuer, the Indenture Trustee and Wells Fargo
Bank, N.A., the Securities Administrator.  Capitalized terms used but not defined herein are as defined in the
Indenture and the Sale and Servicing Agreement, which agreements also contain rules as to construction that shall
be applicable herein.

         The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the
principal amount of this Note outstanding on the immediately preceding Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date) on each Payment Date until the principal of this Note
is paid or made available for payment in full.

         The Accrual Period for the purpose of determining the amount of accrued interest on this Note with
respect to any Payment Date will be the calendar month immediately preceding the related Payment Date.  Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day months.  Such principal of and
interest on this Note shall be paid in the manner specified on the reverse hereof.

         The principal of and interest on this Note are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.  All payments made by
the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided
above and then to the unpaid principal of this Note.

         Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall
have the same effect as though fully set forth on the face of this Note.

         Unless the certificate of authentication hereon has been executed by the Securities Administrator whose
name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture
referred to on the reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its
Authorized Officer, as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee
                                                  under the Trust Agreement

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                             SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but
                                            solely as Securities Administrator,

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

         THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"),  OR ANY
STATE  SECURITIES  LAWS.  NEITHER  THIS NOTE NOR ANY  INTEREST  OR  PARTICIPATION  HEREIN MAY BE  REOFFERED,  SOLD,
ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION,  UNLESS
SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

         THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE
ONLY (A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT, (B) TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE 1933 ACT
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (C) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT, OR FOR
THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE 1933 ACT.

         THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR,
THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF
ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

         THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

         THIS NOTE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

(I) NO SALE OR TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY
PERSON EXCEPT IN CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN (X) ALL
OTHER CLASSES OF PRIVATELY OFFERED NOTES THEN OUTSTANDING AND (Y) OWNERSHIP CERTIFICATES, AND (II) NO SALE OR
TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THE OWNERSHIP CERTIFICATES MAY BE EFFECTUATED EXCEPT IN
CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN ALL CLASSES OF THE PRIVATELY
OFFERED NOTES OUTSTANDING, UNLESS, IN THE CASE OF (I) OR (II) ABOVE, THE PROSPECTIVE TRANSFEREE FURNISHES TO THE
SECURITIES ADMINISTRATOR AN OPINION OF COUNSEL CONCLUDING THAT THE TRANSFER WILL NOT CAUSE THE TRUST TO BECOME
SUBJECT TO FEDERAL INCOME TAX AS A CORPORATION.

         THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY
SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING ("BENEFIT PLAN").

                                        THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                            MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                  CLASS B-4 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class B-4 Notes:  $7,413,000                               $7,413,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AN1

Number:  1

         THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the "Issuer"), for value received, hereby promises to pay to
Thornburg Mortgage, Inc., or registered assigns, the principal sum of SEVEN MILLION FOUR HUNDRED THIRTEEN
THOUSAND DOLLARS AND NO/100 ($7,413,000) payable on each Payment Date in an amount equal to the result obtained
by multiplying (A) a fraction the numerator of which is $7,413,000 and the denominator of which is the aggregate
original principal amount of all Class B-4 Notes issued on the Closing Date, by (B) the aggregate amount, if any,
payable from the Note Account in respect of principal on the Class B-4 Notes pursuant to Section 5.01 of the sale
and servicing agreement, dated as of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer,
Thornburg Mortgage Home Loans, Inc., as Initial Seller, Thornburg Mortgage Funding, Inc., as Seller, Structured
Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank, N.A., as Master Servicer and Securities
Administrator (the "Securities Administrator") and LaSalle Bank National Association, a national banking
association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall
be due and payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in
the Indenture dated as of July 1, 2007 (the "Indenture"), among the Issuer, the Indenture Trustee and Wells Fargo
Bank, N.A., the Securities Administrator.  Capitalized terms used but not defined herein are as defined in the
Indenture and the Sale and Servicing Agreement, which agreements also contain rules as to construction that shall
be applicable herein.

         The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the
principal amount of this Note outstanding on the immediately preceding Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date) on each Payment Date until the principal of this Note
is paid or made available for payment in full.

         The Accrual Period for the purpose of determining the amount of accrued interest on this Note with
respect to any Payment Date will be the calendar month immediately preceding the related Payment Date.  Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day months.  Such principal of and
interest on this Note shall be paid in the manner specified on the reverse hereof.

         The principal of and interest on this Note are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.  All payments made by
the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided
above and then to the unpaid principal of this Note.

         Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall
have the same effect as though fully set forth on the face of this Note.

         Unless the certificate of authentication hereon has been executed by the Securities Administrator whose
name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture
referred to on the reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its
Authorized Officer, as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee
                                                  under the Trust Agreement

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                             SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but
                                            solely as Securities Administrator,

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

         THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"),  OR ANY
STATE  SECURITIES  LAWS.  NEITHER  THIS NOTE NOR ANY  INTEREST  OR  PARTICIPATION  HEREIN MAY BE  REOFFERED,  SOLD,
ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION,  UNLESS
SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

         THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE
ONLY (A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT, (B) TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE 1933 ACT
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (C) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT, OR FOR
THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE 1933 ACT.

         THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR,
THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF
ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

         THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

         THIS NOTE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

(I) NO SALE OR TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY
PERSON EXCEPT IN CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN (X) ALL
OTHER CLASSES OF PRIVATELY OFFERED NOTES THEN OUTSTANDING AND (Y) OWNERSHIP CERTIFICATES, AND (II) NO SALE OR
TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THE OWNERSHIP CERTIFICATES MAY BE EFFECTUATED EXCEPT IN
CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN ALL CLASSES OF THE PRIVATELY
OFFERED NOTES OUTSTANDING, UNLESS, IN THE CASE OF (I) OR (II) ABOVE, THE PROSPECTIVE TRANSFEREE FURNISHES TO THE
SECURITIES ADMINISTRATOR AN OPINION OF COUNSEL CONCLUDING THAT THE TRANSFER WILL NOT CAUSE THE TRUST TO BECOME
SUBJECT TO FEDERAL INCOME TAX AS A CORPORATION.

         THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY
SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING ("BENEFIT PLAN").

                                        THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                            MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                  CLASS B-5 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class B-5 Notes:  $5,931,000                               $5,931,000

Interest Rate:  Adjustable                                 CUSIP:  88522X AP6

Number:  1

         THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the "Issuer"), for value received, hereby promises to pay to
Thornburg Mortgage, Inc., or registered assigns, the principal sum of FIVE MILLION NINE HUNDRED THIRTY-ONE
THOUSAND DOLLARS AND NO/100 ($5,931,000) payable on each Payment Date in an amount equal to the result obtained
by multiplying (A) a fraction the numerator of which is $5,931,000 and the denominator of which is the aggregate
original principal amount of all Class B-5 Notes issued on the Closing Date, by (B) the aggregate amount, if any,
payable from the Note Account in respect of principal on the Class B-5 Notes pursuant to Section 5.01 of the sale
and servicing agreement, dated as of July 1, 2007 (the "Sale and Servicing Agreement"), among the Issuer,
Thornburg Mortgage Home Loans, Inc., as Initial Seller, Thornburg Mortgage Funding, Inc., as Seller, Structured
Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank, N.A., as Master Servicer and Securities
Administrator (the "Securities Administrator") and LaSalle Bank National Association, a national banking
association, as Indenture Trustee; provided, however, that the entire unpaid principal amount of this Note shall
be due and payable on the Payment Date occurring in June 2047 (the "Maturity Date") or as otherwise specified in
the Indenture dated as of July 1, 2007 (the "Indenture"), among the Issuer, the Indenture Trustee and Wells Fargo
Bank, N.A., the Securities Administrator.  Capitalized terms used but not defined herein are as defined in the
Indenture and the Sale and Servicing Agreement, which agreements also contain rules as to construction that shall
be applicable herein.

         The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the
principal amount of this Note outstanding on the immediately preceding Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date) on each Payment Date until the principal of this Note
is paid or made available for payment in full.

         The Accrual Period for the purpose of determining the amount of accrued interest on this Note with
respect to any Payment Date will be the calendar month immediately preceding the related Payment Date.  Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day months.  Such principal of and
interest on this Note shall be paid in the manner specified on the reverse hereof.

         The principal of and interest on this Note are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.  All payments made by
the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided
above and then to the unpaid principal of this Note.

         Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall
have the same effect as though fully set forth on the face of this Note.

         Unless the certificate of authentication hereon has been executed by the Securities Administrator whose
name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture
referred to on the reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its
Authorized Officer, as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee
                                                  under the Trust Agreement

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                             SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but
                                            solely as Securities Administrator,

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

         THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"),  OR ANY
STATE  SECURITIES  LAWS.  NEITHER  THIS NOTE NOR ANY  INTEREST  OR  PARTICIPATION  HEREIN MAY BE  REOFFERED,  SOLD,
ASSIGNED,  TRANSFERRED,  PLEDGED,  ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION,  UNLESS
SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

         THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE
ONLY (A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933 ACT, (B) TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE 1933 ACT
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (C) TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING
OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT, OR FOR
THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE 1933 ACT.

         THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT GUARANTEED BY, THE DEPOSITOR,
THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY AFFILIATE OF
ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

         THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

         THIS NOTE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

(I) NO SALE OR TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY
PERSON EXCEPT IN CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN (X) ALL
OTHER CLASSES OF PRIVATELY OFFERED NOTES THEN OUTSTANDING AND (Y) OWNERSHIP CERTIFICATES, AND (II) NO SALE OR
TRANSFER OF ANY BENEFICIAL OWNERSHIP INTEREST IN THE OWNERSHIP CERTIFICATES MAY BE EFFECTUATED EXCEPT IN
CONJUNCTION WITH A SIMULTANEOUS SALE OR TRANSFER OF AN EQUAL PERCENTAGE INTEREST IN ALL CLASSES OF THE PRIVATELY
OFFERED NOTES OUTSTANDING, UNLESS, IN THE CASE OF (I) OR (II) ABOVE, THE PROSPECTIVE TRANSFEREE FURNISHES TO THE
SECURITIES ADMINISTRATOR AN OPINION OF COUNSEL CONCLUDING THAT THE TRANSFER WILL NOT CAUSE THE TRUST TO BECOME
SUBJECT TO FEDERAL INCOME TAX AS A CORPORATION.

         THIS NOTE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT ARRANGEMENT THAT IS SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR TO ANY SUBSTANTIALLY
SIMILAR LAW ("SIMILAR LAW") OR ANY ENTITY DEEMED TO HOLD THE PLAN ASSETS OF THE FOREGOING ("BENEFIT PLAN").

                                        THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                            MORTGAGE-BACKED NOTES, SERIES 2007-3
                                                  CLASS B-6 NOTES

Aggregate Original Principal Amount of the                 Original Principal Amount of this Note:
Class B-6 Notes:  $5,189,368                               $5,189,368

Interest Rate:  Adjustable                                 CUSIP:  88522X AQ4

Number:  1

         THORNBURG MORTGAGE SECURITIES TRUST 2007-3, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the "Issuer"), for value received, hereby promises to pay to
Thornburg Mortgage, Inc., or registered assigns, the principal sum of FIVE MILLION ONE HUNDRED EIGHTY-NINE
THOUSAND THREE HUNDRED SIXTY-EIGHT DOLLARS AND NO/100 ($5,189,368) payable on each Payment Date in an amount
equal to the result obtained by multiplying (A) a fraction the numerator of which is $5,189,368 and the
denominator of which is the aggregate original principal amount of all Class B-6 Notes issued on the Closing
Date, by (B) the aggregate amount, if any, payable from the Note Account in respect of principal on the Class B-6
Notes pursuant to Section 5.01 of the sale and servicing agreement, dated as of July 1, 2007 (the "Sale and
Servicing Agreement"), among the Issuer, Thornburg Mortgage Home Loans, Inc., as Initial Seller, Thornburg
Mortgage Funding, Inc., as Seller, Structured Asset Mortgage Investments II Inc., as Depositor, Wells Fargo Bank,
N.A., as Master Servicer and Securities Administrator (the "Securities Administrator") and LaSalle Bank National
Association, a national banking association, as Indenture Trustee; provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on the Payment Date occurring in June 2047 (the "Maturity
Date") or as otherwise specified in the Indenture dated as of July 1, 2007 (the "Indenture"), among the Issuer,
the Indenture Trustee and Wells Fargo Bank, N.A., the Securities Administrator.  Capitalized terms used but not
defined herein are as defined in the Indenture and the Sale and Servicing Agreement, which agreements also
contain rules as to construction that shall be applicable herein.

         The Issuer shall pay interest on this Note at a per annum rate equal to the Note Interest Rate, on the
principal amount of this Note outstanding on the immediately preceding Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date) on each Payment Date until the principal of this Note
is paid or made available for payment in full.

         The Accrual Period for the purpose of determining the amount of accrued interest on this Note with
respect to any Payment Date will be the calendar month immediately preceding the related Payment Date.  Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day months.  Such principal of and
interest on this Note shall be paid in the manner specified on the reverse hereof.

         The principal of and interest on this Note are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.  All payments made by
the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided
above and then to the unpaid principal of this Note.

         Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall
have the same effect as though fully set forth on the face of this Note.

         Unless the certificate of authentication hereon has been executed by the Securities Administrator whose
name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture
referred to on the reverse hereof, or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its
Authorized Officer, as of the date set forth below.

                                            THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                            By:   WILMINGTON TRUST COMPANY,
                                                  not in its individual capacity but solely as Owner Trustee
                                                  under the Trust Agreement

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                             SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the within-mentioned Indenture.

                                            WELLS FARGO BANK, N.A., not in its individual capacity but
                                            solely as Securities Administrator,

                                            By:______________________________________________________
                                                  Authorized Signatory

                                            Dated:   July ___, 2007

                                                              EXHIBIT B-1

                                               FORM OF RULE 144A (QIB) INVESTMENT LETTER
                                                     (FOR PRIVATELY OFFERED NOTES)

                                                                                          ____________________
                                                                                                 date
Wells Fargo Bank, NA
    as Note Registrar
Sixth Street and Marquette Avenue
Minneapolis, Minnesota  55479

         Re:      Thornburg Mortgage Securities Trust 2007-3
                  Mortgage Backed Notes, [Class [__] Notes]

Ladies and Gentlemen:

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

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

         We hereby acknowledge that, under the terms of the Indenture (the "Indenture") among Thornburg Mortgage Securities Trust
2007-3, as Issuer, Wells Fargo Bank, N.A., as Securities Administrator, and LaSalle Bank National Association, as Indenture Trustee,
dated as of July 1, 2007, no sale or transfer of any beneficial ownership interest in the Notes shall be permitted to be made to any
person (i) except in the case of transfers of Privately Offered Notes, in conjunction with a simultaneous sale or transfer of an
equal Percentage Interest in (x) all other classes of Privately Offered Notes then outstanding and (y) the Ownership Certificates
(and any sale or transfer of any beneficial ownership interest in the Ownership Certificates may only be effectuated in conjunction
with a simultaneous sale or transfer of an equal Percentage Interest in all classes of the Privately Offered Notes outstanding)
unless we or any prospective transferee furnishes to the Note Registrar an opinion of counsel concluding that the transfer will not
cause the Trust to become subject to federal income tax as a corporation and (ii) in the case of all Notes, only if the Note
Registrar has received a certificate from such transferee in the form hereof.  We also hereby acknowledge that, under the terms of
the Indenture, no transfer of less than a 10% Percentage Interest in the Privately Offered Notes shall be permitted.

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

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

                                                              Very truly yours,

                                                              ____________________________________
                                                                   Print Name of Purchaser

                                                              By:_________________________________
                                                                    Name:
                                                                    Title:

                                                                                                              ANNEX 1 TO EXHIBIT B-1

                                       QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

                                        [For Buyers Other Than Registered Investment Companies]

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

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

         2.       In connection with purchases by the Buyer, the Buyer is a "qualified institutional buyer" as that term is defined in
Rule 144A under the Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested on a discretionary basis
$_____________(1) in securities (except for the excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii) the Buyer satisfies the criteria in the category
marked below.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          ____       ____
          Yes         No                   Will the Buyer be purchasing the Rule 144A Securities only for the Buyer's own account?

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

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

                                               _________________________________
                                                     Print Name of Buyer

                                                     By: _____________________________________
                                                          Name:
                                                          Title:

                                                     Date: ___________________________________

                                                                                                              ANNEX 2 TO EXHIBIT B-1

                                       QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

                                         [For Buyers That Are Registered Investment Companies]

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

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

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

                  ____     The Buyer owned $__________ in securities (other that the excluded securities referred to below) as of the
         end of the Buyer's most recent fiscal year (such amount being calculated in accordance with Rule 144A).

                  ____     The Buyer is part of a Family of Investment Companies which owned in the aggregate $__________ in
         securities (other than the excluded securities referred to below) as of the end of the Buyer's most recent fiscal year (such
         amount being calculated in accordance with Rule 144A).

         3.       The term "Family of Investment Companies" as used herein means two or more registered investment companies (or
series thereof) that have the same investment advisor or investment advisers that are affiliated (by virtue of being majority owned
subsidiaries of the same parent or because one investment adviser is a majority owned subsidiary of the other).

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

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

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

                                                  ____________________________
                                                     PRINT NAME OF BUYER

                                                     BY: ___________________________________________
                                                          NAME:
                                                          TITLE:

                                                     IF AN ADVISER:

                                                 _____________________________
                                                     PRINT NAME OF BUYER

DATE:

                                                              EXHIBIT B-2

                                             FORM OF ACCREDITED INVESTOR INVESTMENT LETTER
                                                     (For Privately Offered Notes)

                                                                                           __________________
                                                                                                 date
Wells Fargo Bank, NA
    as Note Registrar
Sixth Street and Marquette Avenue
Minneapolis, Minnesota  55479

         Re:      Thornburg Mortgage Securities Trust 2007-3
                  Mortgage Backed Notes, [Class [     ] Notes]

Ladies and Gentlemen:

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

         We hereby acknowledge that, under the terms of the Indenture (the "Indenture") among Thornburg Mortgage Securities Trust
2007-3, as Issuer, Wells Fargo Bank, N.A., as Securities Administrator, and LaSalle Bank National Association, as Indenture Trustee,
dated as of July 1, 2007, no sale or transfer of any beneficial ownership interest in the Notes shall be permitted to be made to any
person (i) except in the case of transfers of Privately Offered Notes, in conjunction with a simultaneous sale or transfer of an
equal Percentage Interest in (x) all other classes of Privately Offered Notes then outstanding and (y) the Ownership Certificates
(and any sale or transfer of any beneficial ownership interest in the Ownership Certificates may only be effectuated in conjunction
with a simultaneous sale or transfer of an equal Percentage Interest in all classes of the Privately Offered Notes outstanding)
unless we or any prospective transferee furnishes to the Note Registrar an opinion of counsel concluding that the transfer will not
cause the Trust to become subject to federal income tax as a corporation and (ii) in the case of all Notes, only if the Note
Registrar has received a certificate from such transferee in the form hereof.  We also hereby acknowledge that, under the terms of
the Indenture, no transfer of less than a 10% Percentage Interest in the Privately Offered Notes shall be permitted.

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

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

                                                              Very truly yours,

                                                              ___________________________________
                                                                   Print Name of Purchaser

                                                              By:_________________________________
                                                                 Name:
                                                                 Title:

                                                               EXHIBIT C

                                                   FORM OF ERISA TRANSFER AFFIDAVIT
                                                           FOR CLASS A NOTES

                                                                                         ______________________
                                                                                                 date
STATE OF NEW YORK                   )
                                    )  ss.:
COUNTY OF NEW YORK                  )

         Re:      Thornburg Mortgage Securities Trust 2007-3
                  Mortgage Backed Notes

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

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

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

         3.       The Investor hereby acknowledges that under the terms of the Indenture among Thornburg Mortgage Securities Trust
2007-3, as Issuer, Wells Fargo Bank, N.A., as Securities Administrator, and LaSalle Bank National Association, as Indenture Trustee,
dated as of July 1, 2007, no transfer of any Class A Note shall be permitted to be made to any person unless the Securities
Administrator has received an affidavit from such transferee in the form hereof.

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

                                                     ________________________________________
                                                          [Investor]

                                                     By:_____________________________________
                                                        Name:
                                                        Title:

ATTEST:

___________________________

STATE OF                            )
                                    )  ss.:
COUNTY OF                           )

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

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

                                                     __________________________________
                                                     NOTARY PUBLIC

                                                     My commission expires the
                                                     ____ day of __________, 20__.THORNBURG MORTGAGE SECURITIES TRUST 2007-3,
                                                      Issuer

                                       THORNBURG MORTGAGE HOME LOANS, INC.,
                                            Initial Seller and Sponsor

                                         THORNBURG MORTGAGE FUNDING, INC.,
                                                      Seller

                                  STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.,
                                                     Depositor

                                              WELLS FARGO BANK, N.A.,
                                                Master Servicer and
                                             Securities Administrator

                                                        and

                                        LASALLE BANK NATIONAL ASSOCIATION,
                                          Indenture Trustee and Custodian

                                           SALE AND SERVICING AGREEMENT

                                             Dated as of July 1, 2007

                                        __________________________________

                                    Thornburg Mortgage Securities Trust 2007-3
                                       Mortgage-Backed Notes, Series 2007-3

                                                 Table of Contents

Page

ARTICLE I DEFINITIONS.............................................................................................4

SECTION 1.01. Defined Terms.......................................................................................4
SECTION 1.02. Accounting.........................................................................................48

ARTICLE II CONVEYANCE OF MORTGAGE LOANS;.........................................................................48

SECTION 2.01. Conveyance of Mortgage Loans.......................................................................48
SECTION 2.02. Acceptance of the Trust Estate; Review of Documentation............................................53
SECTION 2.03. Grant Clause.......................................................................................54
SECTION 2.04. Repurchase or Substitution of Mortgage Loans by the Seller.........................................56
SECTION 2.05. Representations and Warranties of the Sellers with Respect to the Mortgage Loans...................59
SECTION 2.06. Representations and Warranties of the Depositor....................................................60
SECTION 2.07. Representations and Warranties of the Depositor with Respect to Security Interest in the
                        Mortgage Loans...........................................................................62
SECTION 2.08. Representations and Warranties of the Sellers......................................................62
SECTION 2.09. Covenants of the Sellers...........................................................................65

ARTICLE III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS...................................................66

SECTION 3.01. Master Servicer to Service and Administer the Mortgage Loans.......................................66
SECTION 3.02. [Reserved].........................................................................................67
SECTION 3.03. Monitoring of Servicers............................................................................67
SECTION 3.04. Fidelity Bond......................................................................................69
SECTION 3.05. Power to Act; Procedures...........................................................................70
SECTION 3.06. Due-on-Sale Clauses; Assumption Agreements.........................................................70
SECTION 3.07. Release of Mortgage Files..........................................................................71
SECTION 3.08. Documents, Records and Funds in Possession of Master Servicer To Be Held for Indenture
                        Trustee..................................................................................72
SECTION 3.09. Standard Hazard Insurance and Flood Insurance Policies.............................................72
SECTION 3.10. Presentment of Claims and Collection of Proceeds...................................................73
SECTION 3.11. Maintenance of the Primary Insurance Policies......................................................73
SECTION 3.12. Indenture Trustee to Retain Possession of Certain Insurance Policies and Documents.................74
SECTION 3.13. Realization Upon Defaulted Mortgage Loans..........................................................74
SECTION 3.14. Additional Compensation to the Master Servicer.....................................................74
SECTION 3.15. REO Property.......................................................................................75
SECTION 3.16. Assessments of Compliance and Attestation Reports..................................................75
SECTION 3.17. Annual Compliance Statement........................................................................78
SECTION 3.18. Sarbanes-Oxley Certification.......................................................................79
SECTION 3.19. Reports Filed with Securities and Exchange Commission..............................................79
SECTION 3.20. Additional Information.............................................................................85
SECTION 3.21. Intention of the Parties and Interpretation........................................................85
SECTION 3.22. Indemnification....................................................................................86
SECTION 3.23. Amendments to Master Servicing Guide and Correspondent Sellers Guide...............................86
SECTION 3.24. Uniform Commercial Code............................................................................87
SECTION 3.25. Optional and Required Purchases of Certain Mortgage Loans..........................................87
SECTION 3.26. Realization upon Troubled Mortgage Loans...........................................................88
SECTION 3.27. Closing Certificate and Opinion....................................................................88
SECTION 3.28. Liabilities of the Master Servicer.................................................................89
SECTION 3.29. Merger or Consolidation of the Master Servicer.....................................................89
SECTION 3.30. Indemnification of the Initial Seller, the Seller, the Indenture Trustee, the Owner
                        Trustee, the Master Servicer and the Securities Administrator............................89
SECTION 3.31. Limitations on Liability of the Master Servicer and Others; Indemnification of Indenture
                        Trustee and Others.......................................................................90
SECTION 3.32. Master Servicer Not to Resign......................................................................91
SECTION 3.33. Successor Master Servicer..........................................................................92
SECTION 3.34. Sale and Assignment of Master Servicing............................................................92

ARTICLE IV ACCOUNTS..............................................................................................93

SECTION 4.01. Servicing Accounts.................................................................................93
SECTION 4.02. Collection Account.................................................................................94
SECTION 4.03. Permitted Withdrawals and Transfers from the Collection Account....................................96
SECTION 4.04. The Note Payment Account...........................................................................98
SECTION 4.05. The Certificate Distribution Account...............................................................99
SECTION 4.06. The Reserve Fund; The Group 3 Final Maturity Reserve Account......................................100
SECTION 4.07. The Collateral Account............................................................................101
SECTION 4.08. Control of the Trust Accounts.....................................................................101

ARTICLE V FLOW OF FUNDS.........................................................................................105

SECTION 5.01. Payments. 105
SECTION 5.02. [Reserved]........................................................................................110
SECTION 5.03. Allocation of Realized Losses.....................................................................110
SECTION 5.04. Statements........................................................................................111
SECTION 5.05. Remittance Reports; Advances......................................................................115
SECTION 5.06. Compensating Interest Payments....................................................................115
SECTION 5.07. [Reserved]........................................................................................116
SECTION 5.08. [Reserved]........................................................................................116
SECTION 5.09. Yield Maintenance Amounts.........................................................................116
SECTION 5.10. Subsequent Recoveries.............................................................................116

ARTICLE VI [RESERVED]...........................................................................................117

ARTICLE VII DEFAULT.............................................................................................117

SECTION 7.01. Event of Default..................................................................................117
SECTION 7.02. Indenture Trustee to Act..........................................................................119
SECTION 7.03. Waiver of Event of Default........................................................................120
SECTION 7.04. Notification to Securityholders...................................................................121
SECTION 7.05. Action Upon Master Servicer Event of Default......................................................121
SECTION 7.06. Additional Remedies of Indenture Trustee Upon Event of Default....................................121

ARTICLE VIII THE INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR.............................................122

SECTION 8.01. Duties of Indenture Trustee and Securities Administrator..........................................122
SECTION 8.02. Certain Matters Affecting the Indenture Trustee and the Securities Administrator..................124
SECTION 8.03. Indenture Trustee and the Securities Administrator Not Liable for Securities, Mortgage
                        Loans or Additional Collateral..........................................................125
SECTION 8.04. Owner Trustee, Master Servicer and Securities Administrator May Own Notes.........................126
SECTION 8.05. Indenture Trustee's, Custodian's, Owner Trustee's and Securities Administrator's Fees and
                        Expenses................................................................................126
SECTION 8.06. Eligibility Requirements for Indenture Trustee and Securities Administrator.......................127
SECTION 8.07. Resignation or Removal of the Indenture Trustee or the Securities Administrator...................127
SECTION 8.08. Successor Securities Administrator................................................................129
SECTION 8.09. Merger or Consolidation of Indenture Trustee or Securities Administrator..........................129
SECTION 8.10. [Reserved]........................................................................................130
SECTION 8.11. [Reserved]........................................................................................130
SECTION 8.12. Trustee May Enforce Claims Without Possession of Notes............................................130
SECTION 8.13. Suits for Enforcement.............................................................................131
SECTION 8.14. Waiver of Bond Requirements.......................................................................131
SECTION 8.15. Waiver of Inventory, Accounting and Appraisal Requirement.........................................131
SECTION 8.16. Appointment of Custodian..........................................................................131
SECTION 8.17. Auction Administration Agreement; Auction Swap Agreement..........................................132
SECTION 8.18. Yield Maintenance Counterparty Tax Form...........................................................132

ARTICLE IX [RESERVED]...........................................................................................132

ARTICLE X TERMINATION...........................................................................................132

SECTION 10.01. Termination; Clean-Up Call.......................................................................132
SECTION 10.02. [Reserved].......................................................................................134
SECTION 10.03. Optional Purchase of Notes.......................................................................134

ARTICLE XI [RESERVED]...........................................................................................135

ARTICLE XII MISCELLANEOUS PROVISIONS............................................................................135

SECTION 12.01. Amendment........................................................................................135
SECTION 12.02. Recordation of Agreement; Counterparts...........................................................137
SECTION 12.03. [Reserved].......................................................................................137
SECTION 12.04. Governing Law; Jurisdiction......................................................................137
SECTION 12.05. Notices. 138
SECTION 12.06. Severability of Provisions.......................................................................138
SECTION 12.07. Article and Section References...................................................................139
SECTION 12.08. Notice to the Rating Agencies....................................................................139
SECTION 12.09. Further Assurances...............................................................................140
SECTION 12.10. Benefits of Agreement............................................................................140
SECTION 12.11. [Reserved].......................................................................................140
SECTION 12.12. Successors and Assigns...........................................................................140
SECTION 12.13. [Reserved].......................................................................................140
SECTION 12.14. Execution by the Issuer..........................................................................140

AGGREGATE SCHEDULED PRINCIPAL BALANCE OF GROUP 3  FORTY-YEAR MORTGAGE LOANS.......................................1

EXHIBITS AND SCHEDULES:

Exhibit A         [Reserved].................................................................................A-1
Exhibit B         [Reserved].................................................................................B-2
Exhibit C         [Reserved].................................................................................C-1
Exhibit D         [Reserved].................................................................................D-1
Exhibit E         [Reserved].................................................................................E-1
Exhibit F         Request for Release........................................................................F-1
Exhibit G-1       Form of Receipt of Mortgage Note.........................................................G-1-1
Exhibit G-2       Form of Interim Certificate of Indenture Trustee.........................................G-2-1
Exhibit G-3       Form of Final Certification of Indenture Trustee.........................................G-3-1
Exhibit H         Form of Lost Note Affidavit................................................................H-1
Exhibit I         [Reserved].................................................................................I-1
Exhibit J-1       [Reserved]...............................................................................J-1-1
Exhibit J-2       [Reserved]...............................................................................J-2-1
Exhibit K         [Reserved].................................................................................K-1
Exhibit L         [Reserved].................................................................................L-1
Exhibit M         Form of Certificate of Trust...............................................................M-1
Exhibit N         List of Servicers and Servicing Agreements.................................................N-1
Exhibit O         Notice of Exercise of Optional Notes Purchase Right........................................O-1
Exhibit P         [Reserved].................................................................................P-1
Exhibit Q         Servicing Criteria.........................................................................Q-1
Exhibit R         Additional Form 10-D Disclosure............................................................R-1
Exhibit S         Additional Form 10-K Disclosure............................................................S-1
Exhibit T         Form 8-K Disclosure Information............................................................T-1
Exhibit U         Form of Additional Disclosure Notification.................................................U-1

Schedule I        Mortgage Loan Schedule
Schedule II       Aggregate Scheduled Principal Balance of Group 3 Forty-Year
                  Mortgage Loans

         This SALE AND SERVICING AGREEMENT,  dated as of July 1, 2007 (the "Agreement"),  is by and among THORNBURG
MORTGAGE  SECURITIES TRUST 2007-3, a Delaware  statutory trust, as issuer (the "Issuer"),  THORNBURG  MORTGAGE HOME
LOANS,  INC., a Delaware  corporation,  as initial  seller (the  "Initial  Seller")  and sponsor  (the  "Sponsor"),
THORNBURG  MORTGAGE  FUNDING,  INC., a Delaware  corporation,  as seller (the "Seller"),  STRUCTURED ASSET MORTGAGE
INVESTMENTS II INC., a Delaware  corporation,  as depositor (the  "Depositor"),  WELLS FARGO BANK, N.A., a national
banking association,  as master servicer (in such capacity, the "Master Servicer") and as securities  administrator
(in such capacity,  the  "Securities  Administrator")  and LASALLE BANK NATIONAL  ASSOCIATION,  a national  banking
association, as indenture trustee (the "Indenture Trustee") and custodian ("Custodian").

                                              PRELIMINARY STATEMENT:

         WHEREAS,  on or prior to the Closing Date the Seller has  acquired  all of the rights,  title and interest
of the Initial Seller in and to certain  residential  mortgage loans  identified in Schedule I hereto,  the related
mortgages  and other  related  assets (the  "Mortgage  Loans"),  together  with  certain  contractual  rights under
agreements  set forth in Exhibit N hereto  relating to the  servicing  of the  Mortgage  Loans  (collectively,  the
"Contractual  Rights") and rights with respect to the  enforcement of certain  representations  and warranties made
by the Initial  Seller in the TMFI  Mortgage  Loan  Purchase  Agreement  relating to the Mortgage  Loans (the "TMFI
Contractual  Rights"),  and on or prior to the Closing Date is the owner of the  Mortgage  Loans,  the  Contractual
Rights and the TMFI Contractual Rights;

         WHEREAS,  the  Depositor  has acquired  all of the rights,  title and interest of the Seller in and to the
Mortgage  Loans,  the  Contractual  Rights and the TMFI  Contractual  Rights  pursuant  to the SAMI  Mortgage  Loan
Purchase  Agreement,  and, at the Closing Date is the owner of the Mortgage Loans,  the Contractual  Rights and the
TMFI Contractual Rights being conveyed by the Depositor to the Issuer for inclusion in the Trust Estate;

         WHEREAS,  the Depositor has duly  authorized  the execution and delivery of this  Agreement to provide for
the  conveyance to the Issuer of the Mortgage  Loans,  the  Contractual  Rights,  the TMFI  Contractual  Rights and
certain other property  constituting  the Trust Estate,  and to provide for master  servicing of the Mortgage Loans
by the Master Servicer;

         WHEREAS,  on the Closing Date,  the Depositor will acquire the Notes and the Ownership  Certificates  from
the Issuer as  consideration  for its transfer to the Issuer of the Mortgage  Loans,  the Contractual  Rights,  the
TMFI Contractual Rights and certain other property constituting the Trust Estate;

         WHEREAS,  pursuant to the Indenture,  the Issuer will pledge the Mortgage Loans,  the Contractual  Rights,
the TMFI Contractual  Rights,  the Yield Maintenance  Agreements and certain other property  constituting the Trust
Estate to the Indenture Trustee as security for the Notes;

         WHEREAS, the Master Servicer shall be obligated under this Agreement, among other things, to monitor the
servicing of the Mortgage Loans by the Servicers on behalf of the Issuer as provided herein;

         WHEREAS,  the Issuer desires to have the Securities  Administrator  perform certain duties consistent with
the terms of this Agreement; and

         WHEREAS,  the Securities  Administrator  has the capacity to provide the services  required  hereby and is
willing to perform such services on the terms set forth herein.

         NOW,  THEREFORE,  in consideration of the mutual agreements herein contained,  the parties hereto agree as
follows:

         The  following  table  sets  forth (or  describes)  the Group  designation,  the Class  designation,  Note
Interest Rate,  Initial Class Principal  Amount (or Class Notional  Amount) and the minimum  denomination  for each
Class of Notes issued pursuant to the Indenture:

                                                                             Initial
                                                                     Class Principal Amount
                            Class                                            Minimum
      Group              Designation         Note Interest Rate      or Class Notional Amount           Denominations
___________________________________________________________________________________________________________________________
        1               Class 1A-1                   (1)                $    323,148,000                   $25,000
        1               Class 1A-2                   (1)                $     56,850,000                   $25,000
        2               Class 2A-1                   (2)                $    199,496,000                   $25,000
        2               Class 2A-2                   (2)                $     10,471,000                   $25,000
        3               Class 3A-1                   (3)                $    456,823,000                   $25,000
        3               Class 3A-2                   (3)                $     23,977,000                   $25,000
        4               Class 4A-1                   (4)                $    139,776,000                   $25,000
        4               Class 4A-2                   (4)                $      7,336,000                   $25,000
        4               Class 4A-3                   (4)                $    175,000,000(7)                $25,000
        4               Class 4A-4                   (4)                $     19,388,000                   $25,000
       N/A              Class A-X                    (5)                $  1,412,265,000                  $100,000
       N/A              Class B-1                    (6)                $     30,395,000                  $100,000
       N/A              Class B-2                    (6)                $     13,344,000                  $100,000
       N/A              Class B-3                    (6)                $      8,155,000                  $100,000
       N/A              Class B-4                    (6)                $      7,413,000                  $100,000
       N/A              Class B-5                    (6)                $      5,931,000                  $100,000
       N/A              Class B-6                    (6)                $      5,189,368                  $100,000
_______________
(1)   On or before the Group 1 Auction Payment Date, the Note Interest Rates with respect to any Payment Date
      (and related Accrual Period) with respect to the Group 1 Notes will be an annual rate equal to the sum of
      One-Month LIBOR plus 0.30% (in the case of the Class 1A-1 Notes) and One-Month LIBOR plus 0.50% (in the
      case of the Class 1A-2 Notes).  After the Group 1 Auction Payment Date, the Note Interest Rate with respect
      to any Payment Date (and related Accrual Period) with respect to the Group 1 Notes will be an annual rate
      equal to the least of (i) One-Month LIBOR plus (a) 0.30% (in the case of the Class 1A-1 Notes) and (b)
      0.50% (in the case of the Class 1-A2 Notes), (ii) 9.75%  and (iii) the related Class A Available Funds Cap
      Rate.
(2)   On or before the General Auction Payment Date, the Note Interest Rates with respect to any Payment Date
      (and related Accrual Period) with respect to the Group 2 Notes will be an annual rate equal to the sum of
      One-Month LIBOR plus 0.22% (in the case of the Class 2A-1 Notes) and One-Month LIBOR plus 0.35% (in the
      case of the Class 2A-2 Notes).  After the General Auction Payment Date, the Note Interest Rate with respect
      to any Payment Date (and related Accrual Period) with respect to the Group 2 Notes will be an annual rate
      equal to the least of (i) One-Year LIBOR plus 1.25%, (ii) 10.50% and (iii) the related Class A Available
      Funds Cap Rate.
(3)   On or before the General Auction Payment Date, the Note Interest Rates with respect to any Payment Date
      (and related Accrual Period) for the Group 3 Notes will be an annual rate equal to the sum of One-Month
      LIBOR plus 0.22% (in the case of the Class 3A-1 Notes) and One-Month LIBOR plus 0.35% (in the case of the
      Class 3A-2 Notes).  After the General Auction Payment Date up to and including the Payment Date in May
      2014, the Note Interest Rate with respect to any Payment Date (and related Accrual Period) for the Group 3
      Notes will be an annual rate equal to the lesser of (i) 5.75% and (ii) the related Class A Available Funds
      Cap Rate.  After the Payment Date in May 2014, the Note Interest Rate with respect to any Payment Date (and
      related Accrual Period) for the Group 3 Notes will be an annual rate equal to the least of (i) One-Year
      LIBOR plus 1.25%, (ii) 10.50% and (iii) the related Class A Available Funds Cap Rate.
(4)   On or before the General Auction Payment Date, the Note Interest Rates with respect to any Payment Date
      (and related Accrual Period) for the Group 4 Notes will be an annual rate equal to the sum of One-Month
      LIBOR plus 0.22% (in the case of the Class 4A-1 Notes), One-Month LIBOR plus 0.35% (in the case of the
      Class 4A-2 Notes), One-Month LIBOR plus 0.21% (in the case of the Class 4A-3 Notes) and One-Month LIBOR
      plus 0.35% (in the case of the Class 4A-4 Notes).  After the General Auction Payment Date up to and
      including the Payment Date in April 2017, the Note Interest Rate with respect to any Payment Date (and
      related Accrual Period) for the Group 3 Notes will be an annual rate equal to the lesser of (i) 5.75% and
      (ii) the related Class A Available Funds Cap Rate.  After the Payment Date in April 2014, the Note Interest
      Rate with respect to any Payment Date (and related Accrual Period) for the Group 4 Notes will be an annual
      rate equal to the least of (i) One-Year LIBOR plus 1.25%, (ii) 10.50% and (iii) the related Class A
      Available Funds Cap Rate.
(5)   The Note Interest Rate of the Class A-X Notes on any Payment Date (and related Accrual Period) will equal
      an annual rate (not less than zero) calculated as (A) the product of (i) the excess, if any, of (x) the
      weighted average of the Class A Available Funds Cap Rates of the Group 1 Notes, Group 2 Notes, Group 3
      Notes and Group 4 Notes for such Payment Date, weighted based on the relative aggregate Class Principal
      Amounts of the Group 1 Notes, Group 2 Notes, Group 3 Notes  and Group 4 Notes immediately before such
      Payment Date, over (y) the weighted average of the Note Interest Rates of Group 1 Notes, Group 2 Notes,
      Group 3 Notes and Group 4 Notes for such Payment Date, weighted based on the relative aggregate Class
      Principal Amounts of the Group 1 Notes, Group 2 Notes, Group 3 Notes  and Group 4 Notes immediately before
      such Payment Date multiplied by (ii) the quotient of the actual number of days in the related Accrual
      Period divided by 30 minus (B) the product of (I) the sum of (1) the Class A Deferred Amounts for such
      Payment Date and (2) the Class A Available Funds Cap Shortfalls for such Payment Date and (II) 12, divided
      by the Class Notional Amount of the Class A-X Notes.
(6)   On or before the General Auction Payment Date, the Note Interest Rates with respect to any Payment Date
      (and related Accrual Period) with respect to the Class B-1 Notes, Class B-2 Notes, Class B-3 Notes, Class
      B-4 Notes, Class B-5 Notes and Class B-6 Notes will be equal to the weighted average of the Available Funds
      Cap Rate applicable to each Mortgage Loan Group, weighted based on the Subordinate Component of each such
      Mortgage Loan Group.  After the General Auction Payment Date, the Note Interest Rates with respect to any
      Payment Date (and related Accrual Period) with respect to the Class B-1 Notes, Class B-2 Notes, Class B-3
      Notes, Class B-4 Notes, Class B-5 Notes and Class B-6 Notes will equal the excess, if any, of (a) the
      weighted average of the Available Funds Cap Rate applicable to each Mortgage Loan Group, weighted based on
      the Subordinate Component of each such Mortgage Loan Group (after taking into account, in the case of the
      Group 3 Notes, on and after the Payment Date in July 2017, the Group 3 Final Maturity Reserve Date) over
      (b) an annual rate equal to the aggregate of (i) the product of any remaining Class A Available Funds Cap
      Shortfalls for such Payment Date after taking into account the reduction in the Class A-X Note Interest
      Rate by any Class A Available Funds Cap Shortfalls, multiplied by 12 and divided by (ii) the aggregate of
      the Class Principal Amounts of the Class B-1 Notes, Class B-2 Notes, Class B-3 Notes, Class B-4 Notes,
      Class B-5 Notes and Class B-6 Notes immediately before such Payment Date.
(7)   The Class A-X Notes are interest-only Notes which accrue interest at the applicable Note Interest Rate (as
      described in footnote (5) of this table) based on a Class Notional Amount for any Payment Date equal to the
      aggregate Class Principal Amount of the Offered Notes.  The initial Class Notional Amount of the Class A-X
      Notes as of the Closing Date is $1,412,265,000.

                                                     ARTICLE I

                                                    DEFINITIONS

         SECTION 1.01.  Defined Terms.

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

         "10% Clean-Up Call Date":  As defined in Section 10.01(a).

         "10%  Clean-Up  Call  Right":  The  option  of  Thornburg  or its  assignee  to call the  Notes on the 10%
Clean-Up Call Date.

         "10-K Filing Deadline":  As defined in Section 3.19(b).

         "1-Month  LIBOR":  With respect to the Mortgage  Loans,  the average of  interbank  offered  rates for one
month U.S. dollar deposits in the London market based on quotations of major banks.

         "1-Month  LIBOR  Indexed":  Indicates a Mortgage Loan that has an adjustable  Loan Rate  calculated on the
basis of 1-Month LIBOR.

         "1-Year CMT":  With respect to the Mortgage  Loans,  the weekly  average  yield on United States  Treasury
securities  adjusted to a constant  maturity of one year as published by the Federal  Reserve Board in  Statistical
Release H.15(519).

         "1-Year CMT  Indexed":  Indicates  a Mortgage  Loan that has an  adjustable  Loan Rate  calculated  on the
basis of 1-Year CMT.

         "1-Year LIBOR":  With respect to the Mortgage Loans,  the average of interbank  offered rates for one-year
U.S. dollar deposits in the London market based on quotations of major banks.

         "1-Year  LIBOR  Indexed":  Indicates a Mortgage Loan that has an  adjustable  Loan Rate  calculated on the
basis of 1-Year LIBOR.

         "3-Year CMT":  With respect to the Mortgage  Loans,  the weekly  average  yield on United States  Treasury
Securities adjusted to a constant maturity of three years as published by the Federal Reserve Board.

         "3-Year CMT  Indexed":  Indicates  a Mortgage  Loan that has an  adjustable  Loan Rate  calculated  on the
basis of 3-Year CMT.

         "1-Year MTA": With respect to the Mortgage  Loans,  the  twelve-month  moving average of the monthly yield
on United States Treasury  Securities  adjusted to a constant maturity of one year which is calculated by averaging
the previous twelve-month values of the 1-Year CMT Index.

         "1-Year MTA  Indexed":  Indicates  a Mortgage  Loan that has an  adjustable  Loan Rate  calculated  on the
basis of 1-Year MTA Index.

         "6-Month  LIBOR":  With  respect to the  Mortgage  Loans,  the  average  of  interbank  offered  rates for
six-month U.S. dollar deposits in the London market based on quotations of major banks.

         "6-Month  LIBOR  Indexed":  Indicates a Mortgage Loan that has an adjustable  Loan Rate  calculated on the
basis of 6-Month LIBOR.

         "Accepted  Master  Servicing  Practices":  With respect to any Mortgage  Loan, as  applicable,  either (x)
those  customary  mortgage  servicing  practices of prudent  mortgage  servicing  institutions  that master service
mortgage loans of the same type and quality as such Mortgage Loan in the jurisdiction  where the related  Mortgaged
Property is located,  to the extent  applicable to the  Indenture  Trustee (as  successor  Master  Servicer) or the
Master Servicer  (except in its capacity as a Servicer or as a successor to another  Servicer),  or (y) as provided
in the  applicable  Servicing  Agreement,  to the extent  applicable  to any  Servicer,  but in no event  below the
standard set forth in clause (x).

         "Accrual  Period":  With  respect  to each  Payment  Date and each  Class of  Offered  Notes,  the  period
beginning on the prior  Payment Date (or the Closing  Date,  in the case of the first  Payment  Date) and ending on
the day  immediately  preceding  such Payment  Date.  Interest for such  Classes  will be  calculated  based upon a
360-day  year and the actual  number of days in each  Accrual  Period.  With  respect to each  Payment Date and any
Class A-X Notes and each Class of  Subordinate  Notes,  the calendar month prior to the month of such Payment Date.
Interest for such Classes will be calculated based upon a 360-day year consisting of twelve 30-day months.

         "Additional  Collateral":  With  respect  to any  Additional  Collateral  Mortgage  Loan,  the  marketable
securities or other assets subject to a security interest pursuant to the related pledge agreement.

         "Additional  Collateral  Mortgage  Loan":  Each  Mortgage  Loan  identified  as such in the Mortgage  Loan
Schedule and as to which Additional Collateral is then required to be provided as security therefor.

         "Additional Disclosure Notification":  As defined in Section 3.19(a).

         "Additional Form 10-D Disclosure":  As defined in Section 3.19(a).

         "Additional Form 10-K Disclosure":  As defined in Section 3.19(b).

         "Adjustment  Date":  With respect to each Mortgage Loan,  each  adjustment  date on which the related Loan
Rate changes  pursuant to the related  Mortgage  Note. The first  Adjustment  Date following the Cut-Off Date as to
each Mortgage Loan is set forth in the Mortgage Loan Schedule.

         "Administration  Agreement".  The Administration  Agreement dated as of July 1, 2007 among the Issuer, the
Owner Trustee and the Securities Administrator.

         "Advance":  As to any Mortgage Loan or REO Property,  any advance made by the Master  Servicer  (including
the  Indenture  Trustee in its capacity as successor  Master  Servicer) in respect of any Payment Date  pursuant to
Section 5.05.

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

         "Aggregate  Subordinate  Percentage":  As to any Payment Date,  the  percentage  equivalent of a fraction,
the  numerator of which is the aggregate of the Class  Principal  Amounts of the Classes of  Subordinate  Notes and
the  denominator  of which is the sum of (i) the Pool Balance for such Payment  Date and (ii)  amounts,  if any, on
deposit in the Reserve Fund for such Payment Date.

         "Agreement":  This Sale and Servicing  Agreement,  dated as of July 1, 2007, as amended,  supplemented and
otherwise modified from time to time.

         "Applicable Credit Support Percentage":  As defined in Section 5.01(e).

         "Assignment":  As  to  any  Mortgage,  an  assignment  of  mortgage,  notice  of  transfer  or  equivalent
instrument,  in recordable  form,  which is  sufficient,  under the laws of the  jurisdiction  in which the related
Mortgaged Property is located, to reflect or record the sale of such Mortgage.

         "Auction Administrator":  As defined in Section 8.17.

         "Auction  Administration  Agreement":  The  Auction  Administration  Agreement  dated as of July 31,  2007
between the Auction Swap Counterparty and the Auction Administrator.

         "Auction Notes":  The Offered Notes.

         "Auction  Payment  Date":  Either the Group 1 Auction  Payment  Date (in the case of the Group 1 Notes) or
the General Auction Payment Date (in the case of the Group 2 Notes, Group 3 Notes and Group 4 Notes).

         "Auction Proceeds Account":  The account maintained by the Auction  Administrator  pursuant to the Auction
Administration Agreement.

         "Auction  Swap  Agreement":  The swap  agreement  by and  between the Auction  Swap  Counterparty  and the
Auction  Administrator,  including the ISDA Master  Agreement,  the schedule  thereto and the related  confirmation
(RBS Reference No. HG5F270), each dated as of July 31, 2007.

         "Auction Swap Counterparty":  The Royal Bank of Scotland, plc, or its successor or assigns.

         "Available  Funds":  With  respect  to any  Payment  Date  and any  Mortgage  Loan  Group,  the sum of the
Interest Distribution Amount for such Payment Date and the Principal Distribution Amount for such Payment Date.

         "Available  Funds Cap Rate":  With respect to any Payment Date and any Mortgage Loan Group,  the per annum
rate equal to the product of (1) the fraction,  expressed as a  percentage,  the numerator of which is the Interest
Distribution  Amount for that  Mortgage Loan Group for the related Due Period and the  denominator  of which is the
sum of the Class  Principal  Amounts of the Offered Notes  related to such Mortgage Loan Group and the  Subordinate
Component related to such Mortgage Loan Group immediately prior to such Payment Date, and (2) 12.

         "Back-Up Certification":  As defined in Section 3.18.

         "Base Value":  With respect to any Mortgage Loan for which  Additional  Collateral  has been pledged,  the
value of the  Additional  Collateral  as  determined  with respect to that  Mortgage  Loan in  accordance  with the
applicable underwriting guidelines.

         "Book-Entry Notes":  As defined in the Indenture.

         "Business  Day":  Any  day  other  than  a  Saturday,  a  Sunday  or a day on  which  banking  or  savings
institutions in the State of Minnesota,  the State of Maryland,  the State of Illinois, the State of New York or in
the city in which the  Corporate  Trust Office of the Indenture  Trustee is located are  authorized or obligated by
law or executive order to be closed.

         "Certificateholder":  The holder of Ownership Certificates.

         "Certificate   Distribution   Account":  The  account  maintained  by  or  on  behalf  of  the  Securities
Administrator pursuant to Section 4.05 for the benefit of the Issuer and the Certificateholders.

         "Certificate of Trust":  The  certificate of trust filed with the Delaware  Secretary of State on July 25,
2007 in respect of the Issuer pursuant to Section 3810 of the Delaware Trust Statute.

         "Certificate Register":  As defined in the Trust Agreement.

         "Certifying Person":  As defined in Section 3.18.

         "Class":  Collectively,  Notes that have the same priority of payment and bear the same class  designation
and the form of which is identical except for variation in the Percentage Interest evidenced thereby.

         "Class 1A-1 Margin":  0.30%

         "Class 1A-2 Margin":  0.50%

         "Class 2A-1 Margin":  0.22%

         "Class 2A-2 Margin":  0.35%

         "Class 3A-1 Margin":  0.22%

         "Class 3A-2 Margin":  0.35%

         "Class 4A-1 Margin":  0.22%

         "Class 4A-2 Margin":  0.35%

         "Class 4A-3 Margin":  0.21%

         "Class 4A-4 Margin":  0.35%

         "Class  1A-1  Note":  Any of the Class 1A-1  Notes as  designated  on the face  thereof,  executed  by the
Issuer and  authenticated  and  delivered by the  Securities  Administrator,  substantially  in the form annexed as
Exhibit A-1 of the Indenture.

         "Class  1A-2  Note":  Any of the Class 1A-2  Notes as  designated  on the face  thereof,  executed  by the
Issuer and  authenticated  and  delivered by the  Securities  Administrator,  substantially  in the form annexed as
Exhibit A-1 of the Indenture.

         "Class  2A-1  Note":  Any of the Class 2A-1  Notes as  designated  on the face  thereof,  executed  by the
Issuer and  authenticated  and  delivered by the  Securities  Administrator,  substantially  in the form annexed as
Exhibit A-1 of the Indenture.

         "Class  2A-2  Note":  Any of the Class 2A-2  Notes as  designated  on the face  thereof,  executed  by the
Issuer and  authenticated  and  delivered by the  Securities  Administrator,  substantially  in the form annexed as
Exhibit A-1 of the Indenture.

         "Class  3A-1  Note":  Any of the Class 3A-1  Notes as  designated  on the face  thereof,  executed  by the
Issuer and  authenticated  and  delivered by the  Securities  Administrator,  substantially  in the form annexed as
Exhibit A-1 of the Indenture.

         "Class  3A-2  Note":  Any of the Class 3A-2  Notes as  designated  on the face  thereof,  executed  by the
Issuer and  authenticated  and  delivered by the  Securities  Administrator,  substantially  in the form annexed as
Exhibit A-1 of the Indenture.

         "Class  4A-1  Note":  Any of the Class 4A-1  Notes as  designated  on the face  thereof,  executed  by the
Issuer and  authenticated  and  delivered by the  Securities  Administrator,  substantially  in the form annexed as
Exhibit A-1 of the Indenture.

         "Class  4A-2  Note":  Any of the Class 4A-2  Notes as  designated  on the face  thereof,  executed  by the
Issuer and  authenticated  and  delivered by the  Securities  Administrator,  substantially  in the form annexed as
Exhibit A-1 of the Indenture.

         "Class  4A-3  Note":  Any of the Class 4A-3  Notes as  designated  on the face  thereof,  executed  by the
Issuer and  authenticated  and  delivered by the  Securities  Administrator,  substantially  in the form annexed as
Exhibit A-1 of the Indenture.

         "Class  4A-4  Note":  Any of the Class 4A-4  Notes as  designated  on the face  thereof,  executed  by the
Issuer and  authenticated  and  delivered by the  Securities  Administrator,  substantially  in the form annexed as
Exhibit A-1 of the Indenture.

         "Class A Available  Funds Cap Rate":  With respect to any Payment Date and any Class of Offered  Notes,  a
per annum  rate  equal to the  product  of (1) the  Available  Funds Cap Rate of the  related  Mortgage  Loan Group
(minus,  in the case of the Group 3 Mortgage  Loans,  on and after the Payment Date in July 2017, the Group 3 Final
Maturity Reserve Rate) and (2) 30 divided by the actual number of days in the related Accrual Period.

         "Class A  Available  Funds Cap  Shortfalls":  With  respect to any  Payment  Date and any Class of Offered
Notes,  an amount,  if any, equal to the sum of (i) the excess of the amount of interest that would have accrued on
that Class of Offered Notes for the related  Accrual Period had the applicable  Note Interest Rate been  determined
without regard to the applicable  Class A Available Funds Cap Rate over the amount of interest  actually accrued on
such Class of Offered  Notes for such  Accrual  Period,  (ii) any amounts  described  in clause (i) above for prior
Payment  Dates that remain  unpaid,  and (iii)  interest on the amount  described in clause (ii) at the  applicable
Note Interest Rate determined without regard to the applicable Class A Available Funds Cap Rate.

         "Class A Deferred  Amount":  For each  Payment  Date and for each Class of  Offered  Notes,  the amount by
which (x) the  aggregate of any Realized  Losses  previously  applied in  reduction of the Class  Principal  Amount
thereof exceeds (y) the sum of (1) the aggregate of amounts  previously  distributed in  reimbursement  thereof and
(2) the  amount  by which the  Class  Principal  Amount of such  Class  has been  increased  due to any  Subsequent
Recovery.

         "Class A-X Note":  Any of the Class A-X Notes as designated  on the face  thereof,  executed by the Issuer
and authenticated and delivered by the Securities  Administrator,  substantially in the form annexed as Exhibit A-2
of the Indenture.

         "Class B-1 Note":  Any of the Class B-1 Notes as designated  on the face  thereof,  executed by the Issuer
and authenticated and delivered by the Securities  Administrator,  substantially in the form annexed as Exhibit A-2
of the Indenture.

         "Class B-2 Note":  Any of the Class B-2 Notes as designated  on the face  thereof,  executed by the Issuer
and authenticated and delivered by the Securities  Administrator,  substantially in the form annexed as Exhibit A-2
of the Indenture.

         "Class B-3 Note":  Any of the Class B-3 Notes as designated  on the face  thereof,  executed by the Issuer
and authenticated and delivered by the Securities  Administrator,  substantially in the form annexed as Exhibit A-2
of the Indenture.

         "Class B-4 Note":  Any of the Class B-4 Notes as designated  on the face  thereof,  executed by the Issuer
and authenticated and delivered by the Securities  Administrator,  substantially in the form annexed as Exhibit A-2
of the Indenture.

         "Class B-5 Note":  Any of the Class B-5 Notes as designated  on the face  thereof,  executed by the Issuer
and authenticated and delivered by the Securities  Administrator,  substantially in the form annexed as Exhibit A-2
of the Indenture.

         "Class B-6 Note":  Any of the Class B-6 Notes as designated  on the face  thereof,  executed by the Issuer
and authenticated and delivered by the Securities  Administrator,  substantially in the form annexed as Exhibit A-2
of the Indenture.

         "Class  Notional  Amount":  With respect to the Class A-X Notes and any Payment Date, the sum of the Class
Principal  Amounts of the Offered Notes  immediately  before such Payment Date. The initial Class  Notional  Amount
of the Class A-X Notes as of the Closing Date is $1,423,789,000.

         "Class  Principal  Amount":  As to any Payment  Date,  with  respect to any Class of Notes (other than the
Class A-X  Notes),  the  initial  Class  Principal  Amount as set forth in the table in the  Preliminary  Statement
hereto as reduced by the sum of (x) all amounts  actually  distributed in respect of principal of that Class on all
prior Payment Dates, (y) all Realized Losses, if any,  actually  allocated to that Class on all prior Payment Dates
and (z) any applicable  Writedown  Amount;  provided,  however,  that pursuant to Section 5.10, the Class Principal
Amount of a Class of Notes may be  increased  up to the amount of  Realized  Losses  previously  allocated  to such
Class in the event that there is a Subsequent  Recovery on a Mortgage Loan,  and the Note  Principal  Amount of any
individual Note of such Class will be increased by its pro rata share of the increase to such Class.

         "Class  Subordination  Percentage":  With respect to each Class of Subordinate Notes and any Payment Date,
the  percentage  equivalent  of a  fraction  the  numerator  of which is the Class  Principal  Amount of such Class
immediately  before such Payment Date and the denominator of which is the aggregate of the Class Principal  Amounts
of all Classes of Notes immediately before such Payment Date.

         "Clean-Up Call Date":  As defined in Section 10.01(a).

         "Clean-Up Call Purchase Price":  As defined in Section 10.01(a).

         "Clean-Up  Call Right":  Either the 10% Clean-Up  Call Right or the Master  Servicer  Clean-Up Call Right,
as applicable.

         "Close of  Business":  As used herein,  with respect to any Business Day and  location,  5:00 p.m. at such
location.

         "Closing Date": July 31, 2007.

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

         "Collateral Account":  The trust account created and maintained by the Securities  Administrator  pursuant
to Section 4.07 hereof.

         "Collection   Account":   The  trust  account  or  accounts  created  and  maintained  by  the  Securities
Administrator  pursuant to Section  4.02 hereof  which shall be  entitled  "Collection  Account,  Wells Fargo Bank,
N.A., as Securities  Intermediary for LaSalle Bank National  Association,  as Indenture  Trustee,  in trust for the
registered  Noteholders of Thornburg Mortgage  Securities Trust 2007-3,  Mortgage-Backed  Notes, Series 2007-3" and
which must be an Eligible Account.

         "Commission":  U.S. Securities and Exchange Commission.

         "Compensating  Interest  Payment":  With respect to any Payment  Date,  an amount equal to the amount,  if
any, by which (x) the aggregate amount of any Interest  Shortfalls  (excluding for such purpose all shortfalls as a
result of Relief Act Reductions)  required to be paid by the Servicers pursuant to the related Servicing  Agreement
with respect to such Payment Date,  exceeds (y) the aggregate  amount  actually paid by the Servicers in respect of
such shortfalls;  provided,  that such amount,  to the extent payable by the Master Servicer,  shall not exceed the
aggregate  Master  Servicing  Fee that  would be payable to the Master  Servicer  in respect of such  Payment  Date
without giving effect to any Compensating Interest Payment.

         "Contractual Rights":  As defined in the Preliminary Statement.

         "Control":  The meaning specified in Section 8-106 of the New York UCC.

         "Converted  Mortgage  Loan":  Any Mortgage  Loan as to which the  Mortgagor  thereunder  has exercised its
right under the related Mortgage Note to convert the adjustable Loan Rate thereon to a fixed Loan Rate.

         "Converted  Mortgage  Loan  Schedule":  With  respect to each  Payment  Date,  a schedule  prepared by the
Master  Servicer  pursuant to Section 3.25(c)  listing each  Convertible  Mortgage Loan that has become a Converted
Mortgage  Loan  during the  immediately  preceding  Due  Period,  and the  Purchase  Price for each such  Converted
Mortgage Loan.

         "Convertible  Mortgage  Loan":  Any Mortgage Loan which,  at the option of the Mortgagor and in accordance
with the terms of the related  Mortgage Note, may have the related  Mortgage Rate converted from an adjustable rate
to a fixed rate.

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

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

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

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

         "Cooperative Shares":  Shares issued by a Cooperative Corporation.

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

         "Corporate  Trust Office":  With respect to the Indenture  Trustee,  the principal  corporate trust office
of the Indenture  Trustee at which at any  particular  time its corporate  trust  business in connection  with this
Agreement  shall be  administered,  which office at the date of the execution of this  instrument is located at 135
South LaSalle Street,  Suite 1511, Chicago, IL 60603,  Attention:  Global Securities and Trust Services,  Thornburg
2007-3,  or at such  other  address  as the  Indenture  Trustee  may  designate  from time to time by notice to the
Noteholders,  the Depositor and the Seller.  With respect to the  Securities  Administrator  and the Note Registrar
and (i) presentment of Notes for registration of transfer,  exchange or final payment,  Wells Fargo Bank,  National
Association,  Sixth  Street and  Marquette  Avenue,  Minneapolis,  Minnesota  55479,  Attention:  Corporate  Trust,
Thornburg  Mortgage  Securities  Trust 2007-3,  and (ii) for all other purposes,  P.O. Box 98,  Columbia,  Maryland
21046 (or for overnight  deliveries,  9062 Old Annapolis Road,  Columbia,  Maryland  21045),  Attention:  Corporate
Trust, Thornburg Mortgage Securities Trust 2007-3.

         "Correspondent  Sellers Guide": The Initial Seller's  Correspondent  Sellers Guide,  revised June 5, 2006,
as amended by Regulation AB Amendment dated December 1, 2005, and as revised and/or amended from time to time.

         "Credit  Support  Annex":  Any of the credit support  annexes  entered into between the Yield  Maintenance
Counterparty  and the Securities  Administrator  on behalf of the Trust, in connection  with the Yield  Maintenance
Agreements.

         "Current  Interest":  On each Payment Date,  the amount of interest  which each Class of Notes is entitled
to receive (to the extent of funds  available) for the related  Accrual  Period,  which is equal to (a) interest at
the  applicable  Note  Interest  Rate on the  Class  Principal  Amount or Class  Notional  Amount,  as  applicable,
immediately  prior to such Payment Date, of that Class plus (b) unpaid  interest  amounts  consisting of the excess
of all amounts  calculated in accordance  with clause (a) above on all prior Payment Dates over the amount actually
distributed as interest on the prior Payment Dates.

         "Custodian":  LaSalle and its successors acting as custodian of the Mortgage Files.

         "Cut-Off Date":  With respect to any Mortgage Loan, other than a Qualified  Substitute  Mortgage Loan, the
Close of Business in New York City on July 1, 2007.  With respect to any Qualified  Substitute  Mortgage  Loan, the
date designated as such on the Mortgage Loan Schedule (as amended).

         "Cut-Off Date Aggregate  Principal  Balance":  The aggregate of the Cut-Off Date Principal Balances of the
Mortgage Loans which is $1,482,692,367.51.

         "Cut-Off  Date  Principal  Balance":  With respect to any Mortgage  Loan,  the principal  balance  thereof
remaining to be paid,  after  application  of all  scheduled  principal  payments due on or before the Cut-Off Date
whether or not  received as of the Cut-Off Date (or as of the  applicable  date of  substitution  with respect to a
Qualified Substitute Mortgage Loan).

         "Deferred  Interest"  With  respect to any Negative  Amortization  Mortgage  Loan and any Due Period,  the
excess,  if any, of interest accrued on the unpaid  principal  balance thereof at the applicable Loan Rate over the
applicable Monthly Payment.

         "Definitive Notes":  As defined in the Indenture.

         "Delaware  Trust  Statute":  Chapter 38 of Title 12 of the Delaware Code, 12 Dec. C. Section 3801 et. seq.
as the same may be amended from time to time.

         "Deleted  Mortgage  Loan": A Mortgage Loan replaced or to be replaced by one or more Qualified  Substitute
Mortgage Loans pursuant to Section 2.04.

         "Delinquent":  Any Mortgage  Loan with respect to which the Monthly  Payment due on a Due Date is not made
by the succeeding Due Date.

         "Deposit  Date":  The day in each  calendar  month on which the  Securities  Administrator  is required to
remit  payments from the  Collection  Account to the Note Payment  Account,  which is the 24th day of each calendar
month no later than 1:00 p.m.  (New York City time) (or, if such 24th day is not a Business  Day,  the  immediately
preceding Business Day).

         "Depositor":   Structured  Asset  Mortgage  Investments  II  Inc.,  a  Delaware  corporation,  having  its
principal place of business in New York, or its successor in interest.

         "Determination  Date":  For any Payment Date and each Mortgage Loan, the date each month,  as set forth in
the related Servicing  Agreement,  on which the related Servicer  determines the amount of all funds required to be
remitted  to the  Master  Servicer  on the  Servicer  Remittance  Date with  respect  to the  Mortgage  Loans it is
servicing.

         "Document  Transfer  Event":  The day on which (i) Wells Fargo Bank,  N.A. or any successor  thereto is no
longer the servicer of any of the Mortgage Loans, (ii) the senior,  unsecured  long-term debt rating of Wells Fargo
&amp; Company  assigned by Fitch  Ratings is less than  "BBB-" or (iii) any Rating  Agency  requires  Wells Fargo Bank,
N.A., as Servicer to deliver the Retained Mortgage Files to the Custodian.

         "Due Date":  With  respect to each  Mortgage  Loan and any  Payment  Date,  the first day of the  calendar
month in which such Payment Date occurs on which the Monthly  Payment for such Mortgage Loan was due,  exclusive of
any days of grace.

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

         "Eight-Year  Hybrid Mortgage  Loans":  The Mortgage Loans  identified as such and as set forth on Schedule
I hereto.

         "Eligible Account":  Any of

                 (i) an account or accounts  maintained  with a federal or state chartered  depository  institution
     or trust  company  the  short-term  unsecured  debt  obligations  of which  (or,  in the case of a  depository
     institution or trust company that is the principal  subsidiary of a holding company,  the short-term unsecured
     debt  obligations of such holding  company) are rated in the highest short term rating category of each Rating
     Agency at the time any amounts are held on deposit therein;

                 (ii)a trust  account  or  accounts  maintained  with the trust  department  of a federal  or state
     chartered  depository  institution,  national  banking  association  or trust company  acting in its fiduciary
     capacity; or

                 (iii)     an account  otherwise  acceptable to each Rating Agency without  reduction or withdrawal
     of its then current  ratings of the Notes as evidenced by a letter from such Rating  Agency to the  Securities
     Administrator and the Indenture Trustee.  Eligible Accounts may bear interest.

         "Employee  Loan":  Any  Mortgage  Loan  identified  as such in the  Mortgage  Loan  Schedule and which was
originated  by the Initial  Seller,  which  provides  for an increase in the Loan Rate  thereof in the event of the
change of employment of the Mortgagor thereunder.

         "Entitlement  Order": The meaning specified in Section  8-102(a)(8) of the New York UCC (i.e.,  generally,
orders directing the transfer or redemption of any Financial Asset).

         "Event of Default":  In respect of the Master Servicer,  one or more of the events  (howsoever  described)
set forth in Section 7.01 hereof as an event or events upon the  occurrence  and  continuation  of which the Master
Servicer may be terminated.

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

         "Expense Fee":  With respect to any Mortgage Loan, the sum of (w) the Retained  Interest,  if any, (x) the
Master Servicing Fee and (y) the related Servicing Fee with respect to the related Servicer.

         "Expense  Fee Rate":  With  respect to any  Mortgage  Loan,  the per annum rate at which the  Expense  Fee
accrues for such Mortgage Loan as set forth in the Mortgage Loan Schedule.

         "Fannie Mae":  The Federal National Mortgage Association or any successor thereto.

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

         "Final  Recovery  Determination":  With respect to any defaulted  Mortgage Loan or any REO Property (other
than a Mortgage Loan or REO Property  purchased by the Initial Seller,  the Seller,  TMI or Wells Fargo Bank, N.A.,
pursuant to or  contemplated by Section 2.04, 3.25 and 10.01),  a determination  made by the related  Servicer that
all  Insurance  Proceeds,  Liquidation  Proceeds and other  payments or  recoveries  which it expects to be finally
recoverable in respect thereof have been so recovered.

         "Financial Asset":  The meaning specified in Section 8-102(a) of the New York UCC.

         "Five-Year  Hybrid Mortgage  Loans":  The Mortgage Loans identified as such and as set forth on Schedule I
hereto.

         "Form 8-K Disclosure Information":  As defined in Section 3.19(c).

         "Freddie Mac":  The Federal Home Loan Mortgage Corporation or any successor thereto.

         "General Auction Payment Date":  The Payment Date in July 2012.

         "Gross  Margin":  With  respect to each  Mortgage  Loan,  the fixed  percentage  set forth in the  related
Mortgage Note that is added to the applicable  Index on each  Adjustment  Date in accordance  with the terms of the
related Mortgage Note used to determine the Loan Rate for such Mortgage Loan.

         "Group 1 Auction Payment Date":  The Payment Date in July 2010.

         "Group 1 Deferred  Interest  Adjustment  Percentage":  With respect to the Group 1 Mortgage  Loans and any
Payment  Date for which  Deferred  Interest  was  recognized  in the  related  Due Period or for which  there is an
Ownership  Certificate  Distribution Amount, a fraction,  expressed as a percentage,  the numerator of which equals
the excess,  if any, of (a) the  Principal  Distribution  Amount for Group 1 for such Payment Date over (b) the sum
of the amount of Deferred  Interest plus any  Ownership  Certificate  Distribution  Amount and the  denominator  of
which is the  Principal  Distribution  Amount for Group 1 for such Payment  Date.  With respect to any Payment Date
for which there is no Net Deferred Interest, the Group 1 Deferred Interest Adjustment Percentage will equal 0.00%.

         "Group 1 Mortgage Loans":     A Mortgage Loan that is identified as such on the Mortgage Loan Schedule.

         "Group 1 Notes":     The Class 1A-1 Notes and Class 1A-2 Notes.

         "Group 1 Percentage":    For any Payment Date, the fraction, expressed as a percentage, the numerator of
which is the aggregate Scheduled Principal Balance of the Group 1 Mortgage Loans for such Payment Date and the
denominator of which is the Pool Balance for such Payment Date.

         "Group 1 Yield  Maintenance  Agreement":  The  interest  rate  cap  agreement  by and  between  the  Yield
Maintenance  Counterparty  and the  Securities  Administrator,  on behalf of the Issuer,  including the ISDA Master
Agreement  and Schedule to the Master  Agreement,  the related  confirmation  (Ref No.  IRG16355468.2A)  and credit
support annex, each dated as of July 31, 2007, relating to the Group 1 Notes.

         "Group 2 Mortgage Loans":    A Mortgage Loan that is identified as such on the Mortgage Loan Schedule.

         "Group 2 Notes":    The Class 2A-1 Notes and Class 2A-2 Notes.

         "Group 2 Percentage":    For any Payment Date, the fraction, expressed as a percentage, the numerator of
which is the aggregate Scheduled Principal Balance of the Group 2 Mortgage Loans for such Payment Date and the
denominator of which is the Pool Balance for such Payment Date.

         "Group 2 Yield  Maintenance  Agreement":  The  interest  rate  cap  agreement  by and  between  the  Yield
Maintenance  Counterparty  and the  Securities  Administrator,  on behalf of the Issuer,  including the ISDA Master
Agreement and Schedule to the Master  Agreement,  the related  confirmation  (Ref No.  IRG163554469.2A)  and credit
support annex, each dated as of July 31, 2007, relating to the Group 2 Notes.

         "Group 3 Final Maturity Reserve Account":  The Eligible Account created and maintained by the Securities
Administrator pursuant to Section 4.06(b) of this Agreement.

         "Group 3 Final Maturity Reserve Amount":  With respect to the Group 3 Mortgage Loans and each Payment
Date, on and after the Payment Date in July 2017 up to and including the earlier of the Payment Date in July 2037
or the termination of the Trust, if the aggregate Scheduled Principal Balance of the Group 3 Mortgage Loans with
forty-year original terms to maturity is greater than the amount set forth in Schedule II of this Agreement, the
lesser of (A) the product of (x) the Group 3 Final Maturity Reserve Rate, (y) the aggregate outstanding principal
balance of the Group 3 Mortgage Loans with forty-year original terms to maturity on that Payment Date and (z) a
fraction, the numerator of which is 30 and the denominator of which is 360 and (B) the Group 3 Final Maturity
Reserve Shortfall for such Payment Date.  For (a) each Payment Date prior to the Payment Date in July 2017 or
(b) each Payment Date on and after the Payment Date in July 2017 for which the aggregate Scheduled Principal
Balance of the Group 3 Mortgage Loans with forty-year original terms to maturity does not exceed the aggregate
Scheduled Principal Balance on Schedule II of this Agreement, zero.

         "Group 3 Mortgage Loans" :  A Mortgage Loan that is identified as such on the Mortgage Loan Schedule.

         "Group 3 Notes":  The Class 3A-1 Notes and Class 3A-2 Notes.

         "Group 3 Percentage":  For any Payment Date, the fraction, expressed as a percentage, the numerator of
which is the aggregate Scheduled Principal Balance of the Group 3 Mortgage Loans for such Payment Date and the
denominator of which is the Pool Balance for such Payment Date.

         "Group 3 Yield  Maintenance  Agreement":  The  interest  rate  cap  agreement  by and  between  the  Yield
Maintenance  Counterparty  and the  Securities  Administrator,  on behalf of the Issuer,  including the ISDA Master
Agreement  and Schedule to the Master  Agreement,  the related  confirmation  (Ref No.  IRG16355470.2A)  and credit
support annex, each dated as of July 31, 2007, relating to the Group 3 Notes.

         "Group 4 Mortgage Loans" :  A Mortgage Loan that is identified as such on the Mortgage Loan Schedule.

         "Group 4 Notes":  The Class 4A-1 Notes, Class 4A-2 Notes, Class 4A-3 Notes and Class 4A-4 Notes.

         "Group 4 Percentage":  For any Payment Date, the fraction, expressed as a percentage, the numerator of
which is the aggregate Scheduled Principal Balance of the Group 4 Mortgage Loans for such Payment Date and the
denominator of which is the Pool Balance for such Payment Date.

         "Group 4 Yield  Maintenance  Agreement":  The  interest  rate  cap  agreement  by and  between  the  Yield
Maintenance  Counterparty  and the  Securities  Administrator,  on behalf of the Issuer,  including the ISDA Master
Agreement  and Schedule to the Master  Agreement,  the related  confirmation  (Ref No.  IRG16355471.2A)  and credit
support annex, each dated as of July 31, 2007, relating to the Group 4 Notes.

         "Holder" or  "Securityholder":  The registered  holder of any Note or Ownership  Certificates  as recorded
on the books of the Note  Registrar or the  Certificate  Registrar  except that,  solely for the purposes of taking
any action or giving any consent  pursuant to this  Agreement,  any Notes or Ownership  Certificates  registered in
the name of the Depositor,  the Master Servicer, the Securities  Administrator,  the Indenture Trustee or the Owner
Trustee or any Affiliate  thereof  (unless any such Person owns 100% of such Class or a 100%  beneficial  ownership
in the  Ownership  Certificate)  shall be  deemed  not to be  outstanding  in  determining  whether  the  requisite
percentage  necessary  to effect any such  consent has been  obtained,  except  that,  in  determining  whether the
Indenture  Trustee and the  Securities  Administrator  shall be protected in relying  upon any such  consent,  only
Notes  and  Ownership  Certificates  which  a  Responsible  Officer  of the  Indenture  Trustee  or the  Securities
Administrator  has actual  knowledge to be so held shall be disregarded.  The Indenture  Trustee and the Securities
Administrator  may request and  conclusively  rely on  certifications  by the Depositor in determining  whether any
Notes or Ownership Certificates are registered to an Affiliate of the Depositor.

         "Indemnified  Persons":  The Issuer, the Indenture Trustee  (individually in its corporate capacity and in
its capacity as Indenture Trustee),  the Custodian,  the Owner Trustee  (individually in its corporate capacity and
in its capacity as Owner  Trustee),  the Master  Servicer,  the Initial Seller,  the Seller,  the Depositor and the
Securities  Administrator (in all capacities  hereunder) and their officers,  directors,  agents and employees and,
with respect to the Indenture Trustee, any separate co-trustee and its officers, directors, agents and employees.

         "Indenture":  The Indenture  dated as of July 1, 2007,  among the Issuer,  the  Indenture  Trustee and the
Securities Administrator, as such may be amended or supplemented from time to time.

         "Indenture  Trustee":  LaSalle Bank National  Association,  not in its  individual  capacity but solely as
Indenture  Trustee,  or any successor in interest which accepts its appointment as Indenture  Trustee hereunder and
agrees to act in such capacity in accordance herewith.

         "Indenture  Trustee Fee": The annual ongoing fee of the Indenture  Trustee  payable by the Master Servicer
on behalf of the Issuer as provided in Section  8.05 and  pursuant  to the terms of a separate  fee letter  between
the Indenture Trustee and Thornburg.

         "Independent":  When used with  respect  to any  accountants,  a Person  who is  "independent"  within the
meaning of Rule 2-01 of the  Securities  and Exchange  Commission'  Regulation  S.X.  When used with respect to any
other specified  Person,  any such Person who (a) is in fact  independent of the Depositor and its Affiliates,  (b)
does not have any direct  financial  interest in or any material  indirect  financial  interest in the Depositor or
any Affiliate  thereof,  (c) is not connected with the Depositor or any Affiliate thereof as an officer,  employee,
promoter,  underwriter,  trustee,  partner, director or Person performing similar functions and (d) is not a member
of the immediate family of a Person defined in clause (b) or (c) above.

         "Index":  With  respect  to each  Mortgage  Loan and each  Adjustment  Date,  the index  specified  in the
related Mortgage Note.

         "Initial Note Principal  Amount":  With respect to any Notes (other than the Class A-X Notes),  the amount
designated "Original Principal Amount of this Note" on the face thereof.

         "Initial Note  Notional  Amount":  With respect to the Class A-X Notes,  the amount  designated  "Original
Notional Amount of this Note" on the face thereof.

         "Initial One-Month LIBOR Rate":  5.320%

         "Initial Mortgage Loan Group 1 Balance":  $398,947,566.89.

         "Initial Mortgage Loan Group 2 Balance":  $220,437,338.71.

         "Initial Mortgage Loan Group 3 Balance":  $504,777,300.25.

         "Initial Mortgage Loan Group 4 Balance":  $358,530,161.66

         "Initial Seller":  Thornburg, in its capacity as seller under the TMFI Mortgage Loan Purchase Agreement.

         "Insurance  Proceeds":  With respect to any Mortgage Loan, proceeds of any title policy,  hazard policy or
other insurance  policy  covering a Mortgage Loan or related  Mortgaged  Property,  to the extent such proceeds are
not to be applied to the  restoration  of the related  Mortgaged  Property or released to the related  Mortgagor in
accordance with the related Servicing Agreement.

         "Interest  Distribution  Amount":  With respect to any Payment Date and any Mortgage Loan Group, an amount
equal to the sum of the following for each  Mortgage  Loan in that Mortgage Loan Group:  (1) all interest  received
or advanced by the Servicer of the  Mortgage  Loan or the Master  Servicer in the related Due Period and  available
in the Note Payment  Amount on that Payment  Date,  less any related  Servicing  Fees,  Master  Servicing  Fees and
Retained  Interest;  (2) all Compensating  Interest Payments paid with respect to the Mortgage Loan if the Mortgage
Loan was prepaid during the related  Prepayment  Period;  and (3) the portion of any Purchase Price or other amount
paid with respect to the Mortgage Loans  allocable to interest,  minus the Group 1 Percentage,  Group 2 Percentage,
Group 3 Percentage or Group 4 Percentage,  as applicable,  of any fees or other amounts  reimbursable to the Master
Servicer  (other  than the Master  Servicing  Fee),  the  Servicer  (other than  Servicing  Fees),  the  Securities
Administrator,  the Indenture  Trustee (other than its Indenture  Trustee Fee), the Custodian (other than its fees)
and the Owner Trustee  (other than its Owner Trustee Fee)  pursuant to the  Operative  Agreements,  plus (4) solely
with respect to the Group 1 Mortgage  Loans,  the lesser of (a) any Deferred  Interest  recognized  with respect to
the Group 1 Mortgage Loans and (b) the Principal Distribution Amount for Group 1 for that Distribution Date.

         "Interest  Shortfall":  With  respect to any Payment Date and each  Mortgage  Loan that during the related
Prepayment  Period was the  subject of a Principal  Prepayment  or a reduction  of its  Monthly  Payment  under the
Relief Act or similar state or local law, an amount determined as follows:

         (a)      Principal  Prepayments in part received  during the relevant  Prepayment  Period:  the difference
between (i) one month's  interest at the  applicable  Net Loan Rate on the amount of such  prepayment  and (ii) the
amount of interest for the calendar  month of such  prepayment  (adjusted to the applicable Net Loan Rate) received
at the time of such prepayment; and

         (b)      Principal  Prepayments in full received  during the relevant  Prepayment  Period:  the difference
between (i) one  month's  interest  at the  applicable  Net Loan Rate on the  Scheduled  Principal  Balance of such
Mortgage Loan  immediately  prior to such prepayment and (ii) the amount of interest for the calendar month of such
prepayment (adjusted to the applicable Net Loan Rate) received at the time of such prepayment; and

         (c)      any Relief Act Reductions for such Payment Date.

         "Issuer":  Thornburg Mortgage Securities Trust 2007-3.

         "Item 1122 Responsible Party":  As defined in Section 3.22.

         "LaSalle":  LaSalle Bank National Association.

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

         "LIBOR  Determination  Date":  The second LIBOR Business Day  immediately  preceding the  commencement  of
each Accrual Period for each Class of Offered Notes.

         "Liquidated  Mortgage  Loan":  As to any Payment  Date,  any Mortgage Loan in respect of which the related
Servicer or the Master Servicer has determined,  in accordance with the servicing  procedures  specified herein, as
of the end of the  related  Prepayment  Period,  that all  Liquidation  Proceeds  that it expects  to recover  with
respect to the liquidation of such Mortgage Loan or disposition of the related REO Property have been recovered.

         "Liquidation  Event":  With respect to any Mortgage Loan, any of the following  events:  (i) such Mortgage
Loan is paid in  full;  (ii) a Final  Recovery  Determination  is made as to such  Mortgage  Loan;  or  (iii)  such
Mortgage Loan is removed from the Trust Estate by reason of its being  purchased,  sold or replaced  pursuant to or
as  contemplated  hereunder.  With  respect  to any REO  Property,  either  of the  following  events:  (i) a Final
Recovery  Determination  is made as to such REO  Property;  or (ii) such REO  Property  is  removed  from the Trust
Estate by reason of its being sold or purchased  pursuant to Section 10.01 hereof or the  applicable  provisions of
the related Servicing Agreement.

         "Liquidation  Expenses":  With respect to a Mortgage Loan in  liquidation,  unreimbursed  expenses paid or
incurred  by or for the account of the Master  Servicer  or the related  Servicers,  such  expenses  including  (a)
property protection expenses,  (b) property sales expenses,  (c) foreclosure and sale costs,  including court costs
and  reasonable  attorneys'  fees,  and (d)  similar  expenses  reasonably  paid or  incurred  in  connection  with
liquidation.

         "Liquidation  Proceeds":  With respect to any Mortgage  Loan,  the amount (other than amounts  received in
respect of the rental of any REO Property prior to REO  Disposition)  received by the related  Servicer as proceeds
from the  liquidation  of such Mortgage  Loan, as determined in accordance  with the  applicable  provisions of the
related  Servicing  Agreement,  other than  Subsequent  Recoveries;  provided that (i) with respect to any Mortgage
Loan or REO Property  repurchased,  substituted or sold pursuant to or as  contemplated  hereunder,  or pursuant to
the applicable  provisions of the related Servicing  Agreement,  "Liquidation  Proceeds" shall also include amounts
realized in connection with such repurchase,  substitution or sale and (ii) with respect to a defaulted  Additional
Collateral Mortgage Loan,  "Liquidation  Proceeds" shall also include the amount realized on the related Additional
Collateral, including any amounts paid under any Surety Bond.

         "Loan  Rate":  With  respect to each  Mortgage  Loan,  the annual rate at which  interest  accrues on such
Mortgage Loan from time to time in accordance with the provisions of the related Mortgage Note.

         "Loan-to-Collateral  Value Ratio":  With respect to each Mortgage  Loan and any date of  determination,  a
fraction,  expressed as a percentage,  the numerator of which is the Principal Balance of the Mortgage Loan at such
date of  determination  less the Base Value of any related  Additional  Collateral and the  denominator of which is
the Value of the related Mortgaged Property.

         "Loan-to-Value  Ratio":  With respect to each  Mortgage  Loan and any date of  determination,  a fraction,
expressed as a percentage,  the  numerator of which is the  Principal  Balance of the Mortgage Loan at such date of
determination and the denominator of which is the Value of the related Mortgaged Property.

         "Lost Note  Affidavit":  With respect to any  Mortgage  Loan as to which the  original  Mortgage  Note has
been lost or  destroyed  and has not been  replaced,  an  affidavit  from the Seller  certifying  that the original
Mortgage  Note has been lost,  misplaced  or  destroyed  (together  with a copy of the  related  Mortgage  Note and
indemnifying  the Trust  against any loss,  cost or  liability  resulting  from the failure to deliver the original
Mortgage Note) in the form of Exhibit H hereto.

         "Majority  Securityholders":  Until such time as the sum of the Class Principal  Amounts of all Classes of
Notes has been reduced to zero, the holder or holders of in excess of 50% of the aggregate Class  Principal  Amount
of all Classes of Notes  (accordingly,  the holder of the Ownership  Certificates shall be excluded from any rights
or actions of the  Majority  Securityholders  during  such  period);  and  thereafter,  the holder or holders of in
excess of 50% of the Percentage Interests of the Ownership Certificates.

         "Master  Servicer":  Wells  Fargo  Bank,  N.A.,  or any  successor  Master  Servicer  appointed  as herein
provided.

         "Master Servicer Clean-Up Call Date":  As defined in Section 10.01(a).

         "Master  Servicer  Clean-Up Call Right":  The option of Wells Fargo Bank, N.A., so long as it is acting as
Master  Servicer,  to purchase the outstanding  Mortgage Loans and REO Properties on the Master  Servicer  Clean-Up
Call Date.

         "Master  Servicing  Fee":  As to any Payment Date and each related  Mortgage  Loan, an amount equal to the
product of the applicable  Master  Servicing Fee Rate and the outstanding  Principal  Balance of such Mortgage Loan
as of the first day of the related Due Period.  The Master  Servicing  Fee for any  Mortgage  Loan shall be payable
in respect of any  Payment  Date  solely  from the  interest  portion of the  Monthly  Payment or other  payment or
recovery with respect to such Mortgage Loan.

         "Master Servicing Fee Rate":  0.010% per annum.

         "Master  Servicing Guide":  Wells Fargo Conduit and Norwest Conduit  Servicing Guide,  dated January 1997,
as amended.

         "Maximum  Loan  Rate":  With  respect to each  Mortgage  Loan,  the  percentage  set forth in the  related
Mortgage Note as the maximum Loan Rate thereunder.

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

         "MERS Mortgage Loan":  Any Mortgage Loan registered with MERS on the MERS System.

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

         "MIN":  The Mortgage Identification Number for any MERS Mortgage Loan.

         "Modifiable  Mortgage  Loan":  Any Mortgage  Loan which,  at the option of the Mortgagor and in accordance
with the terms of the related  Mortgage  Note, may have the related  Mortgage Rate modified to any adjustable  rate
or hybrid product offered at the time by the related originator.

         "Modified  Mortgage Loan":  Any Modifiable  Mortgage Loan as to which the related  Mortgagor has exercised
the right to modify the Mortgage Rate.

         "Modified  Mortgage Loan Schedule":  With respect to each Payment Date, a schedule  prepared by the Master
Servicer  pursuant to Section  3.25(c) listing each  Modifiable  Mortgage Loan that has become a Modified  Mortgage
Loan during the immediately preceding Due Period, and the Purchase Price for each such Modified Mortgage Loan.

         "MOM  Loan":  Any  Mortgage  Loan as to which  MERS is acting as  mortgagee,  solely  as  nominee  for the
originator of such Mortgage Loan and its successors and assigns.

         "Monthly  Payment":  With respect to any Mortgage Loan, the scheduled  monthly payment of principal and/or
interest  on such  Mortgage  Loan that is  payable by the  related  Mortgagor  from time to time under the  related
Mortgage  Note,  determined,  for the purposes of this  Agreement:  (a) after giving effect to any reduction in the
amount of interest  collectible  from the related  Mortgagor  pursuant to the Relief Act or similar  state or local
law;  (b) without  giving  effect to any  extension  granted or agreed to by the related  Servicer  pursuant to the
applicable  provisions of the related  Servicing  Agreement;  and (c) on the assumption that all other amounts,  if
any, due under such Mortgage Loan are paid when due.

         "Moody's":  Moody's Investors Service, Inc. or any successor thereto.

         "Mortgage":  The mortgage,  deed of trust or other instrument  creating a first lien on, or first priority
security interest in, a Mortgaged Property securing a Mortgage Note.

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

         "Mortgage  Loan":  Each  mortgage  loan  (including  Cooperative  Loans)  transferred  and assigned to the
Indenture  Trustee for the benefit of the  Noteholders  pursuant to Section 2.01 or Section  2.04(d) hereof as from
time to time held as a part of the Trust Estate,  the Mortgage Loans so held being  identified in the Mortgage Loan
Schedule or Schedule I hereto.

         "Mortgage  Loan  Group  1":  At any  time,  the  Group  1  Mortgage  Loans  in the  aggregate  and any REO
Properties acquired in respect thereof.

         "Mortgage  Loan  Group  2":  At any  time,  the  Group  2  Mortgage  Loans  in the  aggregate  and any REO
Properties acquired in respect thereof.

         "Mortgage  Loan  Group  3":  At any  time,  the  Group  3  Mortgage  Loans  in the  aggregate  and any REO
Properties acquired in respect thereof.

         "Mortgage  Loan  Group  4":  At any  time,  the  Group  4  Mortgage  Loans  in the  aggregate  and any REO
Properties acquired in respect thereof.

         "Mortgage  Loan Group":  Any of Mortgage  Loan Group 1,  Mortgage  Loan Group 2,  Mortgage Loan Group 3 or
Mortgage Loan Group 4, as the context requires.

         "Mortgage  Loan Group  Balance":  As to each Mortgage  Loan Group and any Payment  Date,  the aggregate of
the Scheduled  Principal  Balances,  as of the Close of Business on the first day of the month  preceding the month
in which such  Payment  Date  occurs,  of the  Mortgage  Loans in such  Mortgage  Loan Group that were  Outstanding
Mortgage Loans on such date.

         "Mortgage  Loan  Purchase  Agreement":  Each of the TMFI  Mortgage  Loan  Purchase  Agreement and the SAMI
Mortgage Loan Purchase  Agreement.  References in this  Agreement to the  "applicable"  or "related"  Mortgage Loan
Purchase  Agreement means the TMFI Mortgage Loan Purchase  Agreement,  in the case of the Initial  Seller,  and the
SAMI Mortgage Loan Purchase Agreement, in the case of the Seller.

         "Mortgage  Loan  Schedule":  As of any date,  the list of Mortgage  Loans  included in the Trust Estate on
such date,  attached  hereto as Schedule I. The Mortgage  Loan  Schedule  shall be prepared by the Seller and shall
set forth the following information with respect to each Mortgage Loan:

                           (i)      the Mortgage Loan identifying number;

                           (ii)     the Mortgagor's name;

                           (iii)    the  street  address  of  the  Mortgaged  Property,  including  the  state  and
                                    five-digit ZIP code;

                           (iv)     a code  indicating  whether the Mortgaged  Property was represented by the borrower,
                                    at the time of origination, as being owner-occupied;

                           (v)      a code  indicating  whether the  Residential  Dwelling  constituting  the  Mortgaged
                                    Property  is (a) a detached  single  family  dwelling,  (b) a dwelling  in a planned
                                    unit  development,  (c) a  condominium  unit,  (d) a two- to  four-unit  residential
                                    property,  (e) a  townhouse,  (f) a  cooperative  or (g) other  type of  Residential
                                    Dwelling;

                           (vi)     if the related  Mortgage  Note  permits the  borrower  to make  Monthly  Payments of
                                    interest  only for a  specified  period  of time,  (a) the  original  number of such
                                    specified  Monthly  Payments and (b) the remaining  number of such Monthly  Payments
                                    as of the Cut-Off Date;

                           (vii)    the original months to maturity;

                           (viii)   the stated  remaining  months to maturity  from the  Cut-Off  Date based on the
                                    original amortization schedule;

                           (ix)     the Loan-to-Value Ratio at origination;

                           (x)      the value of any Additional Collateral at origination;

                           (xi)the Loan-to-Collateral Value Ratio at origination;

                           (xii)    the Loan Rate in effect immediately following the Cut-Off Date;

                           (xiii)   the date on which the first Monthly Payment is or was due on the Mortgage Loan;

                           (xiv)    the stated maturity date;

                           (xv)     the Master Servicing Fee Rate and the Servicing Fee Rate, if any;

                           (xvi)    whether  such loan is an  Additional  Collateral  Mortgage  Loan or an Employee
                                    Loan;

                           (xvii)   the last Due  Date on which a  Monthly  Payment  was  actually  applied  to the
                                    unpaid Scheduled Principal Balance;

                           (xviii)  the original principal balance of the Mortgage Loan;

                           (xix)    the  Scheduled  Principal  Balance of the Mortgage Loan on the Cut-Off Date and
                                    a code  indicating  the  purpose of the  Mortgage  Loan (i.e.,  purchase  financing,
                                    rate/term refinancing, cash-out refinancing);

                           (xx)     the Index and Gross Margin specified in related Mortgage Note;

                           (xxi)    the next Adjustment Date, if applicable;

                           (xxii)   the Maximum Loan Rate, if applicable;

                           (xxiii)  the Value of the Mortgaged Property;

                           (xxiv)   the sale price of the Mortgaged Property, if applicable;

                           (xxv)    the product code;

                           (xxvi)   the Expense Fee Rate therefor;

                           (xxvii)  the Servicer that is servicing  such  Mortgage Loan and the  originator of such
                                    Mortgage Loan; and

                           (xxviii) whether the Mortgage  Loan is an Adjustable  Rate  Mortgage  Loan, a Three-Year
                                    Hybrid  Mortgage  Loan,  a Five-Year  Hybrid  Mortgage  Loan,  a  Seven-Year  Hybrid
                                    Mortgage  Loan, an Eight-Year  Hybrid  Mortgage Loan or a Ten-Year  Hybrid  Mortgage
                                    Loan and whether the Mortgage Loan is a Negative Amortization Mortgage Loan.

          Information  set  forth in  clauses  (ii) and  (iii)  above  regarding  each  Mortgagor  and the  related
Mortgaged  Property shall be  confidential  and the Indenture  Trustee (or the Master  Servicer) shall not disclose
such  information  except to the extent  disclosure  may be required  by any law or  regulatory  or  administrative
authority;  provided,  however,  that the Trustee may disclose on a confidential  basis any such information to its
agents, attorneys and any auditors in connection with the performance of its responsibilities hereunder.

         The  Mortgage  Loan  Schedule,  as in  effect  from  time to time,  shall  also set  forth  the  following
information  with  respect to the  Mortgage  Loans in the  aggregate  as of the  Cut-Off  Date:  (1) the  number of
Mortgage Loans;  (2) the current Scheduled  Principal Balance of the Mortgage Loans;  (3) the weighted average Loan
Rate of the Mortgage Loans; and (4) the  weighted  average  remaining months to maturity of the Mortgage Loans. The
Mortgage Loan Schedule  shall be amended from time to time by the Seller in accordance  with the provisions of this
Agreement.

         "Mortgage  Note":  The  original   executed  note  or  other  evidence  of  indebtedness   evidencing  the
indebtedness of a Mortgagor under a Mortgage Loan.

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

         "Mortgagor":  The obligor on a Mortgage Note.

         "Negative  Amortization  Mortgage  Loan": In case of Group 1, a Hybrid Mortgage Loan or an Adjustable Rate
Mortgage Loan under which,  pursuant to the terms of the related  Mortgage  Note,  the borrower may elect to make a
Monthly  Payment which is less than the interest  accrued on the Mortgage Loan at the applicable  Loan Rate for the
related Due Period.

         "Net Deferred Interest":  With respect to any Payment Date and the Negative  Amortization  Mortgage Loans,
the excess, if any, of Deferred Interest  recognized on such Negative  Amortization  Mortgage Loans for the related
Due Period over the Principal Distribution Amount for the Group 1 Mortgage Loans for such Payment Date.

         "Net  Liquidation  Proceeds":  With respect to any  Liquidated  Mortgage Loan or any other  disposition of
related Mortgaged Property  (including REO Property),  the related  Liquidation  Proceeds net of Advances,  related
Servicing  Advances,  Master Servicing Fee, related  Servicing Fees and any other accrued and unpaid servicing fees
received and retained in connection  with the  liquidation  of such Mortgage  Loan or Mortgaged  Property,  and any
related Retained Interest.

         "Net Loan Rate":  With  respect to any  Mortgage  Loan (or the related  REO  Property),  as of any date of
determination,  a per annum rate of interest  equal to the then  applicable  Loan Rate for such Mortgage Loan minus
the related Servicing Fee Rate, Master Servicing Fee Rate and Retained Rate, if any.

         "Nonrecoverable":  The  determination  by the Master  Servicer  or the  related  Servicer  in respect of a
delinquent  Mortgage  Loan  that if it were to make an  Advance  in  respect  thereof,  such  amount  would  not be
recoverable from any collections or other recoveries (including Liquidation Proceeds) on such Mortgage Loan.

         "Note":  Any of the Class 1A-1,  Class 1A-2,  Class 2A-1,  Class 2A-2, Class 3A-1, Class 3A-2, Class 4A-1,
Class 4A-2,  Class 4A-3,  Class 4A-4,  Class A-X,  Class B-1,  Class B-2, Class B-3, Class B-4, Class B-5 and Class
B-6 Notes.

         "Note  Interest  Rate":  With  respect to each Class of Notes and any Payment  Date,  the  applicable  per
annum rate described in the footnotes to the table in the Preliminary Statement hereto:

         "Note Payment Account":  The account maintained by the Securities  Administrator  pursuant to Section 4.04
hereof which shall be entitled  "Note Payment  Account,  Wells Fargo Bank,  N.A., as  Securities  Intermediary  for
LaSalle Bank National  Association,  as Indenture  Trustee,  in trust for the  registered  Noteholders of Thornburg
Mortgage Securities Trust 2007-3, Mortgage-Backed Notes, Series 2007-3" and which must be an Eligible Account.

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

         "Note Register" and "Note Registrar":  As defined in the Indenture.

         "Noteholder" or "Holder":  As defined in the Indenture.

         "Notional Note":  Any Class A-X Note.

         "Offered  Notes":  Any Class 1A-1,  Class 1A-2,  Class 2A-1,  Class 2A-2,  Class 3A-1,  Class 3A-2,  Class
4A-1, Class 4A-2, Class 4A-3 and Class 4A-4 Notes.

         "Offering Documents":  The Prospectus Supplement, the Prospectus and the Private Placement Memorandum.

         "Officer's  Certificate":  A  certificate  signed by the Chairman of the Board,  the Vice  Chairman of the
Board, the President or a vice president (however denominated),  or by the Treasurer,  the Secretary, or one of the
assistant treasurers or assistant secretaries of the Seller, the Master Servicer,  the Securities  Administrator or
the Depositor, as applicable.

         "One-Month  LIBOR":  In the case of the Offered  Notes,  with  respect to the first  Accrual  Period,  the
Initial  One-Month LIBOR Rate. With respect to each subsequent  Accrual Period,  a per annum rate determined on the
LIBOR  Determination  Date in the following  manner by the Securities  Administrator  on the basis of the "Interest
Settlement Rate" set by the British Bankers'  Association  ("BBA") for one-month United States dollar deposits,  as
such rates appear on the Telerate Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination Date.

         (a)      If on such a LIBOR  Determination  Date,  the BBA's Interest  Settlement  Rate does not appear on
the  Telerate  Page 3750 as of 11:00 a.m.  (London  time),  or if the Telerate  Page 3750 is not  available on such
date,  the  Securities  Administrator  will obtain such rate from  Reuters'  "page  LIBOR 01" or  Bloomberg's  page
"BBAM." If such rate is not  published for such LIBOR  Determination  Date,  One-Month  LIBOR for such date will be
the most  recently  published  Interest  Settlement  Rate.  In the event  that the BBA no longer  sets an  Interest
Settlement Rate, the Securities  Administrator will designate an alternative index that has performed,  or that the
Securities  Administrator  expects to perform, in a manner  substantially  similar to the BBA's Interest Settlement
Rate.

         (b)      The  establishment  of  One-Month  LIBOR  by the  Securities  Administrator  and  the  Securities
Administrator's  subsequent  calculation  of the Note  Interest  Rates  applicable  to the  Offered  Notes  for the
relevant Accrual Period, in the absence of manifest error, will be final and binding.

         "One-Year  LIBOR":  With respect to the Offered  Notes and any Accrual  Period in which the Note  Interest
Rate of a Class of Offered  Notes is indexed  off of  One-Year  LIBOR,  a per annum  rate  determined  on the LIBOR
Determination  Date  in the  following  manner  by the  Securities  Administrator  on the  basis  of the  "Interest
Settlement  Rate" set by the BBA for one-year United States dollar  deposits,  as such rates appear on the Telerate
Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination Date.

         (a)      If on such a LIBOR  Determination  Date,  the BBA's Interest  Settlement  Rate does not appear on
the  Telerate  Page 3750 as of 11:00 a.m.  (London  time),  or if the Telerate  Page 3750 is not  available on such
date,  the  Securities  Administrator  will obtain such rate from  Reuters'  "page  LIBOR 01" or  Bloomberg's  page
"BBAM." If such rate is not  published  for such LIBOR  Determination  Date,  One-Year  LIBOR for such date will be
the most  recently  published  Interest  Settlement  Rate.  In the event  that the BBA no longer  sets an  Interest
Settlement Rate, the Securities  Administrator will designate an alternative index that has performed,  or that the
Securities  Administrator  expects to perform, in a manner  substantially  similar to the BBA's Interest Settlement
Rate.

         (b)      The  establishment  of  One-Year  LIBOR  by  the  Securities  Administrator  and  the  Securities
Administrator's  subsequent  calculation  of Note Interest  Rates  applicable to the Offered Notes for the relevant
Accrual Period, in the absence of manifest error, will be final and binding.

         "Operative  Agreements":  The Trust  Agreement,  the Certificate of Trust,  this  Agreement,  the Mortgage
Loan Purchase  Agreements,  the Indenture,  the Administration  Agreement,  the Yield Maintenance  Agreements,  the
Auction  Administration  Agreement,  the Auction Swap Agreement and each other document  contemplated by any of the
foregoing to which the  Depositor,  the Owner Trustee,  the  Securities  Administrator,  the Master  Servicer,  the
Indenture Trustee or the Issuer is a party.

         "Opinion of Counsel":  A written opinion of counsel,  who may, without  limitation,  be a salaried counsel
for the Depositor,  the Initial  Seller,  the Seller,  the Master  Servicer,  the Securities  Administrator  or the
Indenture Trustee,  acceptable to the Indenture Trustee or the Securities Administrator,  as applicable,  but which
must be Independent outside counsel concerning federal income tax matters.

         "Optional Notes Purchase Date":  As defined in the Indenture.

         "Optional Notes Purchase Right":  As defined in the Indenture.

         "Original  Applicable  Credit Support  Percentage":  With respect to each Class of Subordinate  Notes, the
corresponding percentage set forth below opposite its Class designation:

                                        Class B-1                   2.70%
                                        Class B-2                   1.80%
                                        Class B-3                   1.25%
                                        Class B-4                   0.75%
                                        Class B-5                   0.35%
                                        Class B-6                   0.00%

         "Original  Class  Notional  Amount":  With  respect to the Class A-X Notes,  the  corresponding  aggregate
notional amount set forth opposite the Class designation of such Class in the Preliminary Statement.

         "Original  Class  Principal  Amount":  With respect to each Class of Notes other than the Notional  Notes,
the  corresponding  aggregate  amount set forth  opposite the Class  designation  of such Class in the  Preliminary
Statement.

         "Original  Subordinated  Principal  Amount":  The aggregate of the Original Class Principal Amounts of the
Classes of Subordinate Notes.

         "Original  Trust  Agreement":  The Trust  Agreement  dated as of July 25,  2007 by and  between  the Owner
Trustee and the Depositor pursuant to which the Issuer was formed by filing of the Certificate of Trust.

         "Outstanding  Mortgage  Loan":  As of any Due Date,  a Mortgage  Loan with a Scheduled  Principal  Balance
greater  than  zero,  that was not the  subject  of a  prepayment  in full  prior to such Due Date and that did not
become a Liquidated Mortgage Loan prior to such Due Date.

         "Overcollateralized  Group":  With  respect  to any  Payment  Date and any  Group 1 Notes,  Group 2 Notes,
Group 3 Notes or Group 4 Notes as to which the  aggregate  Class  Principal  Amount  thereof after giving effect to
payments  pursuant to Section  5.01(a) on such Payment Date,  is less than the sum of (i) the  Scheduled  Principal
Balances of the related  Mortgage  Loan Group as of the last day of the  related  Due Period and (ii)  amounts,  if
any, on deposit in the Reserve Fund with respect to such Group or Groups of Notes for such Payment Date.

         "Owner  Trustee":  Wilmington  Trust  Company,  a  Delaware  banking  corporation,  not in its  individual
capacity,  but solely as owner trustee under the Trust  Agreement,  or any successor in interest  which accepts its
appointment as Owner Trustee and agrees to act in such capacity in accordance with the Trust Agreement.

         "Owner  Trustee  Fee":  The annual  on-going fee payable by the Master  Servicer on behalf of the Trust to
the Owner Trustee as provided in Section 8.05 and pursuant to the terms of a separate fee letter agreement.

         "Ownership  Certificate":  A certificate  representing an undivided  beneficial  ownership interest in the
Trust, substantially in the form attached as Exhibit A to the Trust Agreement.

         "Ownership  Certificate  Distribution  Amount":  For any Payment Date and the Group 1 Mortgage  Loans,  an
amount equal to the lesser of (A) the excess of (i) the  Principal  Distribution  Amount for such Payment Date over
(ii) the Deferred  Interest for the related Due Period and (B) the  aggregate  Net Deferred  Interest for all prior
Payment  Dates over the  aggregate  of all  payments  made in respect of the  Ownership  Certificates  on all prior
Payment Dates.

         "Paying Agent":  Initially,  the Securities  Administrator,  in its capacity as paying agent for the Notes
under the  Indenture  and paying agent for the  Certificates  under the Trust  Agreement,  or any  successor to the
Securities Administrator in such capacity.

         "Payment  Date":  The 25th day of the month,  or, if such day is not a Business Day, the next Business Day
commencing in August 2007.

         "Payment Date Statement":  As defined in Section 5.04(a) hereof.

         "PCAOB":  The Public Company Accounting Oversight Board.

         "Percentage  Interest":  With respect to any Note, a fraction,  expressed as a  percentage,  the numerator
of which is the Initial Note Principal Amount or Initial Note Notional Amount,  as applicable,  represented by such
Note and the  denominator of which is the Original Class  Principal  Amount or Original Class Notional  Amount,  as
applicable,  of the related Class.  With respect to any Ownership  Certificate,  the  Percentage  Interest noted on
the face of such certificate.

         "Permitted  Investments":  Any  one or more of the  following  obligations  or  securities  acquired  at a
purchase price of not greater than par,  regardless of whether  issued or managed by the Depositor,  the Securities
Administrator,  the  Master  Servicer,  the  Indenture  Trustee,  the  Owner  Trustee  or any of  their  respective
Affiliates or for which an Affiliate of the Depositor,  the Indenture  Trustee,  the Owner Trustee,  the Securities
Administrator or the Master Servicer serves as an advisor:

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

                     (ii)(A) demand and time deposits in,  certificates of deposit of, bankers'  acceptances issued
         by or  federal  funds  sold by any  depository  institution  or trust  company  (including  the  Indenture
         Trustee,  the Owner Trustee,  the Master Servicer or the Securities  Administrator  or their agents acting
         in their respective  commercial  capacities)  incorporated  under the laws of the United States of America
         or any state thereof and subject to supervision  and examination by federal and/or state  authorities,  so
         long as, at the time of such  investment or contractual  commitment  providing for such  investment,  such
         depository  institution or trust company or its ultimate parent has a short-term  uninsured debt rating in
         one of the two highest  available  rating  categories  of each Rating  Agency and (B) any other  demand or
         time deposit or deposit which is fully insured by the FDIC;

                     (iii) repurchase  obligations  with respect to any security  described in clause (i) above and
         entered into with a depository  institution  or trust company  (acting as principal)  rated A or higher by
         the Rating Agencies;

                     (iv)securities  bearing  interest  or sold at a discount  that are  issued by any  corporation
         incorporated  under the laws of the United  States of  America,  the  District  of  Columbia  or any State
         thereof and that are rated by each Rating Agency in its highest  long-term  unsecured rating categories at
         the time of such investment or contractual commitment providing for such investment;

                     (v) commercial   paper   (including  both   non-interest-bearing   discount   obligations  and
         interest-bearing  obligations)  that is rated by each Rating  Agency in its highest  short-term  unsecured
         debt rating available at the time of such investment;

                     (vi)units of money market funds (which may be 12b-1 funds,  as  contemplated by the Commission
         under the Investment  Company Act of 1940) registered  under the Investment  Company Act of 1940 including
         funds  managed or  advised by the  Indenture  Trustee,  the Owner  Trustee,  the  Master  Servicer  or the
         Securities  Administrator or an affiliate  thereof having the highest  applicable  rating from each Rating
         Agency; and

                     (vii) if  previously  confirmed  in  writing  to  the  Indenture  Trustee  or  the  Securities
         Administrator,  any other  demand,  money market or time  deposit,  or any other  obligation,  security or
         investment,  as may be  acceptable  to each Rating  Agency in writing as a permitted  investment  of funds
         backing securities having ratings equivalent to its highest initial rating of the Offered Notes;

provided,  however,  that no instrument  described  hereunder  shall evidence  either the right to receive (a) only
interest with respect to the obligations  underlying  such  instrument or (b) both principal and interest  payments
derived from  obligations  underlying such instrument and the interest and principal  payments with respect to such
instrument  provide a yield to maturity at par greater than 120% of the yield to maturity at par of the  underlying
obligations.

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

         "Pool  Balance":  As to any Payment Date,  the aggregate of the Scheduled  Principal  Balances,  as of the
second day of the month  preceding  the month in which such Payment Date  occurs,  of the Mortgage  Loans that were
Outstanding Mortgage Loans on such date.

         "Prepayment  Penalty  Amount":  With respect to any Mortgage Loan and each Payment  Date,  all premiums or
charges,  if any,  paid by Mortgagors  under the related  Mortgage  Notes as a result of full or partial  Principal
Prepayments  collected by the applicable Servicer during the immediately  preceding  Prepayment Period, but only to
the extent  required to be remitted to the Master  Servicer on the applicable  Servicer  Remittance  Date under the
terms of the related Servicing Agreement.

         "Prepayment  Period":  With respect to any Payment Date, the calendar  month  preceding the month in which
such Payment Date occurs.

         "Primary  Insurance  Policy":  Mortgage  guaranty  insurance,  if any, on an individual  Mortgage Loan, as
evidenced by a policy or certificate.

         "Principal  Balance":  As to any Mortgage  Loan,  other than a Liquidated  Mortgage Loan, and any day, the
related  Cut-Off Date Principal  Balance,  minus all  collections  credited  against the Principal  Balance of such
Mortgage  Loan after the Cut-Off  Date.  For  purposes of this  definition,  a  Liquidated  Mortgage  Loan shall be
deemed to have a Principal  Balance  equal to the  Principal  Balance of the related  Mortgage Loan as of the final
recovery of related  Liquidation  Proceeds and a Principal  Balance of zero thereafter.  As to any REO Property and
any day, the Principal  Balance of the related Mortgage Loan  immediately  prior to such Mortgage Loan becoming REO
Property.

         "Principal  Deficiency Amount":  For any Payment Date and for any  Undercollateralized  Group, the excess,
if any, of the aggregate  Class Principal  Amount of such  Undercollateralized  Group for such Payment Date,  after
giving  effect to payments  pursuant to Section  5.01(a) on such date over the sum of (i) the  Scheduled  Principal
Balances of the Mortgage  Loans in the related  Mortgage  Loan Group as of the Close of Business on the last day in
the  related  Due Period and (ii)  amounts,  if any,  on deposit in the  Reserve  Fund with  respect to the related
Undercollateralized Group or Groups for such Payment Date.

         "Principal  Distribution  Amount":  With  respect to any Payment  Date and any  Mortgage  Loan  Group,  an
amount equal to the sum of the following for each  Mortgage  Loan in that  Mortgage  Loan Group:  (a) each  Monthly
Payment of principal  collected or advanced on the Mortgage  Loans by the related  Servicer or the Master  Servicer
in respect of the related  Due Period,  (b) that  portion of the  Purchase  Price,  representing  principal  of any
repurchased or purchased  Mortgage Loan,  deposited to the Collection Account during the related Prepayment Period,
(c) the principal portion of any Substitution  Adjustments  deposited in the Collection  Account during the related
Prepayment  Period,  (d) the  principal portion of all Insurance  Proceeds  received during the related  Prepayment
Period with respect to Mortgage Loans that are not yet Liquidated  Mortgage  Loans,  (e) the  principal  portion of
all Net Liquidation  Proceeds  received during the related  Prepayment  Period with respect to Liquidated  Mortgage
Loans (other than  Subsequent  Recoveries),  (f) all  Principal  Prepayments  in part or in full on Mortgage  Loans
applied  by the  Servicers  or the Master  Servicer  during  the  related  Prepayment  Period,  (g) all  Subsequent
Recoveries  received during the related  Prepayment  Period and (h) on the Payment Date on which the Trust is to be
terminated  pursuant to Section  10.01  hereof,  that portion of the  Clean-Up  Call  Purchase  Price in respect of
principal.

         "Principal  Prepayment":  Any  payment of  principal  made by the  Mortgagor  on a  Mortgage  Loan that is
received in advance of its scheduled  Due Date and that is not  accompanied  by an amount of interest  representing
the full  amount  of  scheduled  interest  due on any Due Date in any month or  months  subsequent  to the month of
prepayment.

         "Privately Offered Notes":  Collectively, the Class A-X Notes and the Subordinate Notes.

         "Private  Placement  Memorandum":  The  Confidential  Private  Placement  Memorandum  dated July 30,  2007
relating to the Privately Offered Notes.

         "Pro  Rata  Share":  As to any  Payment  Date and any  Class of  Subordinate  Notes,  the  portion  of the
Subordinate  Principal  Distribution  Amount  allocable to such Class,  equal to the product of the (a) Subordinate
Principal  Distribution  Amount on such date and (b) a  fraction,  the  numerator  of which is the Class  Principal
Amount of that Class and the  denominator of which is the aggregate of the Class  Principal  Amounts of all Classes
of Subordinate Notes.

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

         "Prospectus":  The  Prospectus  Supplement,  together  with the  accompanying  prospectus,  dated June 28,
2007, relating to the Offered Notes.

         "Prospectus  Supplement":  That  certain  Prospectus  Supplement,  dated July 30,  2007,  relating  to the
initial sale of the Offered Notes as  supplemented  by the Supplement to the Prospectus  Supplement  dated July 31,
2007.

         "Purchase  Price":  With  respect to any Mortgage  Loan or REO Property to be purchased  pursuant to or as
contemplated by Section 2.04,  Section 3.25 or Section 10.01 hereof,  and as confirmed by an Officers'  Certificate
from the Initial  Seller or the Seller,  as  applicable,  to the Indenture  Trustee,  an amount equal to the sum of
(i) 100%  of the  Principal  Balance  thereof as of the date of  purchase  (or such other  price as is  provided in
Section 10.01),  plus (ii) in the case of (x) a Mortgage Loan,  accrued  interest on such Principal  Balance at the
applicable  Loan  Rate from the Due Date as to which  interest  was last  covered  by a  payment  by the  Mortgagor
through the end of the calendar  month in which the purchase is to be effected,  and (y) an REO  Property,  the sum
of  (1) accrued  interest  on such  Principal  Balance  at the  applicable  Loan Rate from the Due Date as to which
interest was last  covered by a payment by the  Mortgagor  plus (2) REO Imputed  Interest for such REO Property for
each  calendar  month  commencing  with the calendar  month in which such REO Property was acquired and ending with
the calendar month in which such purchase is to be effected,  net of the total of all net rental income,  Insurance
Proceeds and Liquidation  Proceeds that as of the date of purchase had been  distributed as or to cover REO Imputed
Interest,  plus (iii) any  unreimbursed  Servicing  Advances and any unpaid Expense Fees allocable to such Mortgage
Loan or REO Property,  plus (iv) in the case of a Mortgage  Loan required to be purchased  pursuant to Section 2.04
hereof,  any costs and damages  incurred by the  Indenture  Trustee in respect of a breach or defect giving rise to
the  purchase  obligations  or by the  Issuer  in  connection  with  any  violation  by such  Mortgage  Loan of any
predatory- or abusive-lending laws.

         "Qualified  Substitute  Mortgage Loan": A mortgage loan  substituted for a Deleted  Mortgage Loan pursuant
to the terms of this Agreement  which must, on the date of such  substitution,  (i) have an  outstanding  principal
balance,  after  application of all Monthly  Payments of principal and interest due during or prior to the month of
substitution,  not in excess of, and not more than 5% less than,  the  Principal  Balance of the  Deleted  Mortgage
Loan as of the Due Date in the calendar month during which the substitution  occurs,  (ii) have a maximum loan rate
not less than the Maximum Loan Rate of the Deleted  Mortgage  Loan,  (iii)  have a gross margin equal to or greater
than the Gross Margin of the Deleted  Mortgage  Loan,  (iv) have the same Index as the Deleted  Mortgage  Loan, (v)
have its next  adjustment  date not more than two months  after the next  Adjustment  Date of the Deleted  Mortgage
Loan,  (vi) have a remaining  term to maturity  not greater than (and not more than one year less than) that of the
Deleted Mortgage Loan,  (vii) be current as of the date of  substitution,  (viii) have a Loan-to-Value  Ratio and a
Loan-to-Collateral  Value Ratio as of the date of substitution  equal to or lower than the Loan-to-Value  Ratio and
the  Loan-to-Collateral  Value Ratio,  respectively,  of the Deleted Mortgage Loan as of such date,  (ix) have been
underwritten or  re-underwritten  in accordance with the same or substantially  similar  underwriting  criteria and
guidelines as the Deleted  Mortgage Loan, (x) is of the same or better credit quality as the Deleted  Mortgage Loan
and  (xi) conform to each  representation  and warranty set forth in Section 2.05 hereof  applicable to the Deleted
Mortgage  Loan.  In the event that one or more  mortgage  loans are  substituted  for one or more Deleted  Mortgage
Loans,  the  amounts  described  in clause (i)  hereof  shall be  determined  on the basis of  aggregate  principal
balances,  the  terms  described  in clause  (vi) hereof  shall be  determined  on the  basis of  weighted  average
remaining  term to  maturity,  the  Loan-to-Value  Ratio and  Loan-to-Collateral  Value Ratio  described  in clause
(viii) hereof  shall be satisfied as to each such mortgage  loan and,  except to the extent  otherwise  provided in
this sentence,  the  representations  and warranties  described in clause  (x) hereof  must be satisfied as to each
Qualified Substitute Mortgage Loan or in the aggregate, as the case may be.

         "Rating  Agency":  Each of Moody's and S&P and any  respective  successors  thereto.  If  Moody's,  S&P or
their  respective  successors  shall no longer be in  existence,  "Rating  Agency"  shall  include such  nationally
recognized  statistical  rating  agency or  agencies,  or other  comparable  Person or Persons,  as shall have been
designated by the Depositor,  notice of which designation shall be given to the Indenture  Trustee,  the Securities
Administrator and the Master Servicer.

         "Realized  Loss":  With respect to any Liquidated  Mortgage Loan, the amount of loss realized equal to the
portion of the Principal Balance  remaining unpaid after application of all Net Liquidation  Proceeds in respect of
such Liquidated Mortgage Loan.

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

         "Record  Date":  With respect to each Payment Date and the Offered  Notes,  the Business Day preceding the
applicable  Payment Date so long as such Offered Notes remain  Book-Entry Notes and otherwise the Record Date shall
be same as for the Privately  Offered Notes.  For each Class of Privately  Offered Notes,  the last Business Day of
the calendar month preceding the month in which such Payment Date occurs.

         "Refinancing  Mortgage  Loan":  Any Mortgage  Loan  originated in connection  with the  refinancing  of an
existing mortgage loan.

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

         "Relevant  Servicing  Criteria":  The Servicing Criteria applicable to each party, as set forth on Exhibit
Q attached  hereto and any  similar  exhibit set forth in each  Servicing  Agreement  in respect of each  Servicer.
Multiple parties can have  responsibility  for the same Relevant  Servicing  Criteria.  With respect to a Servicing
Function Participant engaged by the Master Servicer,  the Securities  Administrator,  the Indenture Trustee (in its
capacity as Custodian)  or each  Servicer,  the term  "Relevant  Servicing  Criteria" may refer to a portion of the
Relevant Servicing Criteria applicable to such parties.

         "Relief Act":  The Servicemembers Civil Relief Act, as amended.

         "Relief Act  Reductions":  With respect to any Payment  Date and any  Mortgage  Loan as to which there has
been a reduction in the amount of interest  collectible  thereon for the most recently ended Due Period as a result
of the  application  of the Relief Act or similar  state or local law,  the amount,  if any, by which (i)  interest
collectible  on that Mortgage  Loan during such Due Period is less than (ii) one month's  interest on the Scheduled
Principal  Balance of such  Mortgage  Loan at the Loan Rate for such  Mortgage  Loan  before  giving  effect to the
application of the Relief Act or similar state or local law.

         "Remittance Report":  The Master Servicer's  Remittance Report to the Securities  Administrator  providing
information  with respect to each Mortgage  Loan which is provided no later than the second  Business Day following
each  Determination  Date and which shall contain such information as may be agreed upon by the Master Servicer and
the Securities  Administrator  and which shall be sufficient to enable the Securities  Administrator to prepare the
related Payment Date Statement.

         "REO  Account":  The account or accounts  maintained by a Servicer in respect of an REO Property  pursuant
to the related Servicing Agreement.

         "REO Disposition":  The sale or other disposition of an REO Property on behalf of the Trust.

         "REO Imputed  Interest":  As to any REO  Property,  for any calendar  month during which such REO Property
was at any time part of the Trust Estate,  one month's  interest at the  applicable  Net Loan Rate on the Principal
Balance of such REO Property (or, in the case of the first such  calendar  month,  of the related  Mortgage Loan if
appropriate) as of the Close of Business on the Due Date in such calendar month.

         "REO Principal  Amortization":  With respect to any REO Property,  for any calendar month, the excess,  if
any, of (a) the  aggregate of all amounts  received in respect of such REO  Property  during such  calendar  month,
whether in the form of rental income, sale proceeds  (including,  without limitation,  that portion of the Clean-Up
Call Purchase Price paid in connection  with a purchase of all of the Mortgage  Loans and REO  Properties  pursuant
to Section 10.01 hereof that is allocable to such REO  Property) or  otherwise,  net of any portion of such amounts
(i) payable  pursuant to the  applicable  provisions  of the related  Servicing  Agreement in respect of the proper
operation,  management  and  maintenance  of such REO Property or (ii) payable or  reimbursable  to the  applicable
Servicer  pursuant to the  applicable  provisions of the related  Servicing  Agreement for unpaid Master  Servicing
Fees and Servicing Fees in respect of the related  Mortgage Loan and unreimbursed  Servicing  Advances and Advances
in respect of such REO  Property or the related  Mortgage  Loan,  over  (b) the REO Imputed  Interest in respect of
such REO Property for such calendar month.

         "REO  Property":  A  Mortgaged  Property  acquired  by the  applicable  Servicer  on behalf of the  Issuer
through  foreclosure or  deed-in-lieu  of foreclosure in accordance  with the applicable  provisions of the related
Servicing Agreement.

         "Reportable Event":  As defined in Section 3.19(c).

         "Reporting Servicer":  As defined in Section 3.19(b).

         "Request  for  Release":  A release  signed by a  Servicing  Officer,  in the form of  Exhibit F  attached
hereto.

         "Reserve  Fund":  The reserve fund created and  maintained  by the  Securities  Administrator  pursuant to
Section  4.06 which shall be entitled  "Reserve  Fund,  Wells Fargo Bank,  N.A.,  as  Securities  Intermediary  for
LaSalle  Bank  National  Association,  as Indenture  Trustee,  in trust for the Holders of the  Thornburg  Mortgage
Securities Trust 2007-3 Mortgage-Backed Notes Series 2007-3, and which must be an Eligible Account.

         "Residential  Dwelling":  Any one of the following:  (i) a detached  one-family  dwelling,  (ii) a two- to
four-family  dwelling,  (iii) a one-family dwelling unit in a condominium project,  (iv) a manufactured home, (v) a
cooperative unit or (vi) a detached  one-family  dwelling in a planned unit development,  none of which is a mobile
home.

         "Responsible  Officer":  When used with respect to the Indenture Trustee or the Securities  Administrator,
any director,  any vice  president,  any assistant vice  president,  any associate  assigned to the Corporate Trust
Office  (or  similar  group)  or any other  officer  of the  Indenture  Trustee  or  Securities  Administrator,  as
applicable,  customarily  performing  functions similar to those performed by any of the above designated officers,
in each case,  having direct  responsibilities  for the  administration  of the  Operative  Agreements to which the
Indenture  Trustee or the Securities  Administrator  is a party and, with respect to a particular  matter,  to whom
such matter is referred because of such officer's knowledge of and familiarity with the particular subject.

         "Restricted Classes":  As defined in Section 5.01(e).

         "Retained  Interest":  As to any Employee  Loans  originated by Thornburg and each Payment Date,  interest
accrued on the Principal Balance thereof at the Retained Rate.

         "Retained  Interest  Holder":  With respect to each Employee  Loan, the Initial Seller or any successor in
interest by assignment or otherwise.

         "Retained  Mortgage  Files":  As to each WFB Mortgage  Loan,  the file  consisting  of the  Mortgage  Loan
Documents  listed as items (iii),  and (vi) through (viii)  following the definition of "Mortgage  File" in Section
2.01 that are to be delivered to the Indenture Trustee, as Custodian subsequent to a Document Transfer Event.

         "Retained Rate": As of the Cut-off Date, and for each Due Period  thereafter,  0.00% per annum;  provided,
however,  if the related  Mortgagor of the Employee Loan ceases to be an employee or a director of Thornburg or its
Affiliates, the amount of the increase in the per annum rate set forth in the related Mortgage Note.

         "Sarbanes-Oxley  Act":  The  Sarbanes-Oxley  Act of 2002 and the rules and  regulations  of the Commission
promulgated thereunder (including any interpretations thereof by the Commission's staff).

         "Sarbanes-Oxley  Certification":  A  written  certification  covering  the  activities  of  all  Servicing
Function  Participants  (excluding the Custodian) and the Servicers and signed by an officer of the Master Servicer
that complies with (i) the  Sarbanes-Oxley  Act of 2002, as amended from time to time,  and (ii) Exchange Act Rules
13a-14(d)  and  15d-14(d),  as in effect  from time to time;  provided  that if,  after  the  Closing  Date (a) the
Sarbanes-Oxley  Act of 2002 is amended,  (b) the Rules referred to in clause (ii) are modified or superseded by any
subsequent  statement,  rule or regulation of the  Commission  or any statement of a division  thereof,  or (c) any
future  releases,  rules and regulations are published by the Securities and Exchange  Commission from time to time
pursuant to the  Sarbanes-Oxley  Act of 2002,  which in any such case affects the form or substance of the required
certification and results in the required  certification  being, in the reasonable judgment of the Master Servicer,
materially  more onerous than the form of the required  certification  as of the Closing Date,  the  Sarbanes-Oxley
Certification  shall be as agreed to by the Master  Servicer,  the  Depositor  and the Initial  Seller  following a
negotiation in good faith to determine how to comply with any such new requirements.

         "SAMI  Mortgage Loan Purchase  Agreement":  The mortgage  loan purchase  agreement  between the Seller and
the Depositor,  dated as of July 1, 2007 regarding the sale of the Mortgage Loans,  the Contractual  Rights and the
TMFI Contractual Rights by the Seller to the Depositor.

         "Scheduled  Principal  Balance":  With respect to any Mortgage Loan:  (a) as of any date of  determination
up to and  including the Payment Date on which the  proceeds,  if any, of a Liquidation  Event with respect to such
Mortgage  Loan would be  distributed,  the  outstanding  principal  balance of such Mortgage Loan as of the Cut-Off
Date  (including  any Deferred  Interest  added to such balance on or prior to the Cut-Off  Date),  as shown in the
Mortgage Loan Schedule plus any amount of Deferred  Interest added to such balance  subsequent to the Cut-Off Date,
minus,  in the case of each Mortgage Loan, the sum of (i) the  principal  portion of each Monthly  Payment due on a
Due Date subsequent to the Cut-Off Date,  whether or not received,  (ii) all Principal  Prepayments  received after
the Cut-Off  Date,  to the extent  distributed  pursuant to Section  5.01  before  such date of  determination  and
(iii) all  Liquidation  Proceeds  and  Insurance  Proceeds  applied by the  applicable  Servicer as  recoveries  of
principal  in  accordance  with the  applicable  provisions  of the  related  Servicing  Agreement,  to the  extent
distributed  pursuant to Section 5.01 before such date of  determination;  and (b) as of any date of  determination
subsequent  to the  Payment  Date on which the  proceeds,  if any,  of a  Liquidation  Event  with  respect to such
Mortgage Loan would be  distributed,  zero. With respect to any REO Property:  (x) as of any date of  determination
up to and  including the Payment Date on which the  proceeds,  if any, of a Liquidation  Event with respect to such
REO Property would be distributed,  an amount (not less than zero) equal to the Scheduled  Principal Balance of the
related  Mortgage  Loan as of the date on which such REO Property  was  acquired on behalf of the Trust,  minus the
aggregate  amount of REO Principal  Amortization in respect of such REO Property for all previously  ended calendar
months, to the extent  distributed  pursuant to Section  5.01 before such date of determination;  and (y) as of any
date of  determination  subsequent to the Payment Date on which the proceeds,  if any, of a Liquidation  Event with
respect to such REO Property would be distributed, zero.

         "Securities":  Collectively, the Notes and the Ownership Certificates.

         "Securities Act":  The Securities Act of 1933, as amended and the rules and regulations thereunder.

         "Securities  Administrator":  Wells Fargo Bank,  N.A.,  or its  successor  in interest,  or any  successor
securities administrator appointed as herein provided.

         "Securities  Intermediary":  The Person acting as Securities  Intermediary  under this Agreement (which is
Wells Fargo Bank, N.A.), its successor in interest,  and any successor Securities  Intermediary  appointed pursuant
to Section 4.08.

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

         "Security Entitlement":  The meaning specified in Section 8-102(a)(17) of the New York UCC.

         "Seller":  TMFI,  in its capacity as seller  under the SAMI  Mortgage  Loan  Purchase  Agreement  and this
Agreement.

         "Sellers":  The Initial Seller and the Seller.

         "Senior Credit Support  Depletion  Date":  The date on which the Class  Principal  Amount of each Class of
Subordinate Notes has been reduced to zero.

         "Senior  Percentage":  With  respect  to any  Payment  Date and a  Mortgage  Loan  Group,  the  percentage
equivalent  of a fraction  (which  shall not be greater than 100%) the  numerator of which is the  aggregate of the
Class Principal  Amounts of the Class or Classes of Offered Notes relating to that Mortgage Loan Group  immediately
prior to such Payment Date and the  denominator of which is the Scheduled  Principal  Balance of all Mortgage Loans
in that  Mortgage  Loan Group for that Payment  Date;  provided,  however,  that on any Payment Date after a Senior
Termination Date has occurred with respect to a Mortgage Loan Group,  the Senior  Percentage for such Mortgage Loan
Group will be equal to 0%; and,  provided,  further,  that on any Payment Date after a Senior  Termination Date has
occurred with respect to two Mortgage Loan Groups,  the Senior  Percentage of the remaining  Offered Notes shall be
the percentage  equivalent of a fraction,  the numerator of which is the aggregate of the Class  Principal  Amounts
of the remaining Class or Classes of Offered Notes  immediately  prior to such date and the denominator of which is
the aggregate of the Class Principal Amounts of all Classes of Notes, immediately prior to such date.

         "Senior  Prepayment  Percentage":  For each Mortgage Loan Group and any Payment Date occurring before July
2014,  100%.  Except as provided  herein,  the Senior  Prepayment  Percentage  for each Mortgage Loan Group and any
Payment  Date  occurring  on or after the  seventh  anniversary  of the  first  Payment  Date  will be as  follows:
(i) from July 2014 through June 2015, the related Senior Percentage plus 70% of the related Subordinate  Percentage
for such Payment  Date;  (ii) from  July 2015  through June 2016,  the related  Senior  Percentage  plus 60% of the
related  Subordinate  Percentage for such Payment Date;  (iii) from July 2016 through June 2017, the related Senior
Percentage plus 40% of the related Subordinate  Percentage for such Payment Date;  (iv) from July 2017 through June
2018,  the related  Senior  Percentage  plus 20% of the related  Subordinate  Percentage for such Payment Date; and
(v) from and after July 2018, the related Senior Percentage for such Payment Date;  provided,  however,  that there
shall be no reduction in the Senior  Prepayment  Percentage  for any Mortgage Loan Group on a Payment Date,  unless
the Step Down  Conditions are satisfied with respect to such Payment Date;  and provided,  further,  that if on any
Payment Date  occurring on or after the Payment Date in July 2014,  the Senior  Percentage  for such  Mortgage Loan
Group exceeds the initial Senior  Percentage  for such Mortgage Loan Group,  the Senior  Prepayment  Percentage for
each Mortgage Loan Group for such Payment Date will again equal 100%.

         Notwithstanding  the  above,  (i) if on any  Payment  Date  prior  to  July  2010  the Two  Times  Test is
satisfied,  the Senior Prepayment  Percentage for each Mortgage Loan Group will equal the related Senior Percentage
for such Payment Date plus 50% of an amount equal to the  Subordinate  Percentage for such Payment Date and (ii) if
on any Payment Date in or after July 2010 the Two Times Test is satisfied,  the Senior  Prepayment  Percentage  for
each  Mortgage  Loan Group will equal the Senior  Percentage  for such  Payment  Date;  provided,  however,  on any
Payment  Date after a Senior  Termination  Date has  occurred  with  respect to a Mortgage  Loan Group,  the Senior
Prepayment Percentage will equal 0% for the related Mortgage Loan Group.

         "Senior Principal Distribution Amount":  For each Mortgage Loan Group and any Payment Date, the sum of:

                  (1)      the product of (a) the related  Senior  Percentage,  (b) the  principal  portion of each
         Monthly  Payment on each  Mortgage  Loan in the  related  Mortgage  Loan Group due during the  related Due
         Period  and (c) in the case of the Group 1  Mortgage  Loans,  the  Group 1  Deferred  Interest  Adjustment
         Percentage for such Payment Date;

                  (2)      the product of (a) the related Senior Prepayment  Percentage,  (b) each of the following
         amounts:  (i) the principal portion of each full and partial Principal  Prepayment made by a borrower on a
         Mortgage Loan in the related  Mortgage Loan Group during the related  Prepayment  Period,  (ii) each other
         unscheduled  collection,  including  any  Subsequent  Recovery,  Insurance  Proceeds  and Net  Liquidation
         Proceeds  (other  than with  respect to any  Mortgage  Loan in the  related  Mortgage  Loan Group that was
         finally  liquidated  during the related  Prepayment  Period),  representing  or allocable to recoveries of
         principal  of  Mortgage  Loans  received  during the  related  Prepayment  Period and (iii) the  principal
         portion of all  proceeds  of the  purchase  (or, in the case of a Qualified  Substitution  Mortgage  Loan,
         amounts  representing a Substitution  Adjustment) of any Mortgage Loan in the related  Mortgage Loan Group
         actually  received by the Securities  Administrator  during the related  Prepayment  Period and (c) in the
         case of the Group 1 Mortgage Loans, the Group 1 Deferred Interest  Adjustment  Percentage for such Payment
         Date;

                  (3)      with respect to  unscheduled  recoveries  allocable to principal of any Mortgage Loan in
         the related Mortgage Loan Group that was finally  liquidated  during the related  Prepayment  Period,  the
         lesser of (a) the related Net Liquidation  Proceeds  allocable to principal and (b) the product of (i) the
         related Senior  Prepayment  Percentage for that date, (ii) the remaining  Scheduled  Principal  Balance of
         such Mortgage Loan at the time of  liquidation  and (iii) in the case of the Group 1 Mortgage  Loans,  the
         Group 1 Deferred Interest Adjustment Percentage for such Payment Date; and

                  (4)      any amounts  described  in clauses (1) through (3) for any  previous  Payment  Date that
         remain unpaid.

         "Senior  Termination  Date":  For any Mortgage Loan Group, the date on which the aggregate Class Principal
Amount of the related Class or Classes of Offered Notes is reduced to zero.

         "Servicer":  Each of the  several  primary  servicers  of the  Mortgage  Loans as set  forth in  Exhibit N
hereto and any successors thereto or replacement therefor.

         "Servicer  Remittance  Date":  With respect to each Mortgage Loan, the 18th day of each month, or the next
Business  Day if such 18th day is not a  Business  Day or if  provided  in the  related  Servicing  Agreement,  the
preceding Business Day if such 18th day is not a Business Day.

         "Service(s)(ing)":  In  accordance  with  Regulation  AB,  the  act of  servicing  and  administering  the
Mortgage  Loans or any other assets of the Trust by an entity that meets the  definition of "servicer' set forth in
Item 1101 of Regulation AB and is subject to the  disclosure  requirements  set forth in 1108 of Regulation AB. Any
uncapitalized  occurrence  of this  term  shall  have  the  meaning  commonly  understood  by  participants  in the
residential mortgage-backed securitization market.

         "Servicing  Account":  Any account  established  and maintained for the benefit of the Master  Servicer or
the Trust by a Servicer with respect to the related  Mortgage Loans and any REO Property,  pursuant to the terms of
the respective Servicing Agreement.

         "Servicing  Advances":  With  respect to any  Servicer or the Master  Servicer  (including  the  Indenture
Trustee in its capacity as successor  Master  Servicer),  all  customary,  reasonable and necessary "out of pocket"
costs and expenses  (including  reasonable  attorneys'  fees and  expenses)  incurred by any Servicer or the Master
Servicer in the  performance of its servicing  obligations  hereunder,  including,  but not limited to, the cost of
(i) the preservation,  restoration,  inspection and protection of the Mortgaged  Property,  (ii) any enforcement or
judicial  proceedings,  including  foreclosures,  (iii) the management and liquidation of the REO Property and (iv)
compliance with the obligations under Article III hereof or the related Servicing Agreements.

         "Servicing  Agreement":  The servicing  agreements  relating to the Mortgage Loans as set forth in Exhibit
N hereto,  servicing  arrangements for any Mortgage Loans under the Seller's  Correspondent  Sellers Guide, and any
other  servicing  agreement  entered into between a successor  servicer and the Seller or the Indenture  Trustee on
behalf of the Trust pursuant to the terms hereof.

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

         "Servicing  Fee":  With respect to each  Servicer and each Mortgage Loan serviced by such Servicer and for
any calendar month, the fee payable to such Servicer determined pursuant to the related Servicing Agreement.

         "Servicing Fee Rate":  With respect to each Mortgage  Loan, the per annum  servicing fee rate set forth on
the Mortgage Loan Schedule.

         "Servicing  Function  Participant":  Any  Sub-Servicer  or  Subcontractor,  other than each Servicer,  the
Master Servicer,  the Trustee, the Custodian and the Securities  Administrator,  in each case that is participating
in the servicing function within the meaning of Regulation AB.

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

         "Seven-Year Hybrid Mortgage Loans":  The Mortgage Loans identified as such on Schedule I hereto.

         "Significant Modification":  As defined in Section 3.25.

         "Significant Modification Loan":  As defined in Section 3.25.

         "S&amp;P":  Standard &amp; Poor's Rating Services (a division of The McGraw-Hill Companies, Inc.).

         "Stated Maturity Date":  As defined in the Indenture.

         "Step Down Conditions":  As of any Payment Date on which any decrease in any Senior Prepayment  Percentage
may apply,  (i) the  outstanding  Principal  Balance of all Mortgage  Loans 60 days or more  Delinquent  (including
Mortgage  Loans in REO and  foreclosure),  averaged over the  preceding  six month  period,  as a percentage of the
aggregate of the Class  Principal  Amount of the Classes of Subordinate  Notes on such Payment Date, does not equal
or exceed 50% and (ii) cumulative Realized Losses with respect to all of the Mortgage Loans do not exceed:

         o        for any Payment  Date on or after the seventh  anniversary  until the eighth  anniversary  of the
                  first Payment Date, 30% of the aggregate Class Principal  Amounts of the Subordinate  Notes as of
                  the Closing Date,

         o        for any  Payment  Date on or after the  eighth  anniversary  until the ninth  anniversary  of the
                  first Payment Date, 35% of the aggregate Class Principal  Amounts of the Subordinate  Notes as of
                  the Closing Date,

         o        for any Payment Date on or after the ninth  anniversary  until the tenth anniversary of the first
                  Payment Date, 40% of the aggregate  Class Principal  Amounts of the  Subordinate  Notes as of the
                  Closing Date,

         o        for any Payment  Date on or after the tenth  anniversary  until the eleventh  anniversary  of the
                  first Payment Date, 45% of the aggregate Class Principal  Amounts of the Subordinate  Notes as of
                  the Closing Date, and

         o        for any Payment Date on or after the eleventh  anniversary  of the first Payment Date, 50% of the
                  aggregate Class Principal Amounts of the Subordinate Notes as of the Closing Date.

         "Strike Rate":  For the Yield Maintenance Agreement relating to the Group 1 Notes, the excess of (i) the
related Class A Available Funds Cap Rate over (ii) the weighted average of the Class 1A-1 Margin and the Class
1A-2 Margin (weighted on the basis of the related Notes' Class Principal Amounts for the immediately preceding
Payment Date, after giving effect to distributions and allocations of Realized Losses and Subsequent Recoveries
on such Payment Date, or as of the Closing Date for the first Payment Date).

         For the Yield Maintenance Agreement relating to the Group 2 Notes, the excess of (i) the related Class A
Available Funds Cap Rate over (ii) the weighted average of the Class 2A-1 Margin and Class 2A-2 Margin (weighted
on the basis of the related Notes' Class Principal Amounts for the immediately preceding Payment Date, after
giving effect to distributions and allocations of Realized Losses and Subsequent Recoveries on such Payment Date,
or as of the Closing Date for the first Payment Date).

         For the Yield Maintenance  Agreement  relating to the Group 3 Notes, the excess of (i) the related Class A
Available  Funds Cap Rate over (ii) the  weighted  average  of the Class  3A-1  Margin  and the Class  3A-2  Margin
(weighted on the basis of the related Notes' Class Principal  Amounts for the immediately  preceding  Payment Date,
after giving effect to distributions  and allocations of Realized Losses and Subsequent  Recoveries on such Payment
Date, or as of the Closing Date for the first Payment Date).

         For the Yield Maintenance  Agreement  relating to the Group 4 Notes, the excess of (i) the related Class A
Available  Funds Cap Rate over (ii) the  weighted  average of the Class 4A-1  Margin,  the Class 4A-2  Margin,  the
Class 4A-3 Margin and the Class 4A-4 Margin  (weighted on the basis of the related Notes' Class  Principal  Amounts
for the  immediately  preceding  Payment Date,  after giving effect to  distributions  and  allocations of Realized
Losses and Subsequent Recoveries on such Payment Date, or as of the Closing Date for the first Payment Date).

         "Subcontractor":  Any  vendor,  subcontractor  or other  Person  that is not  responsible  for the overall
servicing of Mortgage  Loans but performs one or more discrete  functions  identified in Item 1122(d) of Regulation
AB with respect to Mortgage  Loans under the  direction or  authority  of any  Servicer (or a  Sub-Servicer  of any
Servicer), the Master Servicer, the Indenture Trustee or the Securities Administrator.

         "Subordinate Component":  For any Payment Date and with respect to any Mortgage Loan Group, the product
of (a) the excess, if any, of the aggregate Scheduled Principal Balances of the Mortgage Loans in the related
Mortgage Loan Group, as of the first day of the related Due Period, plus any amounts on deposit in the Reserve
Fund attributable to such Mortgage Loan Group, as of such Payment Date over the aggregate Class Principal Amount
of the related Offered Notes immediately prior to such Payment Date plus, solely in the case of the Group 1
Mortgage Loans, the aggregate Net Deferred Interest for all prior Payment Dates in excess of amounts paid to the
holder of the Ownership Certificate on a prior Payment Date; multiplied by (b) the quotient of (i) the aggregate
Class Principal Amount of the Subordinate Notes immediately prior to such Payment Date and (ii) the sum of the
amounts described in clause (a) for each Mortgage Loan Group.

         "Subordinate  Note":  Any one of the Class B-1,  Class B-2,  Class B-3,  Class B-4, Class B-5 or Class B-6
Notes.

         "Subordinate  Percentage":  For each  Mortgage  Loan Group and any Payment Date,  the  difference  between
100% and the related Senior Percentage for such Payment Date; provided,  however,  that on any Payment Date after a
Senior  Termination  Date has occurred with respect to two Mortgage Loan Groups,  the  Subordinate  Percentage will
represent the entire  interest of the  Subordinate  Notes in the Mortgage Loans and will be equal to the difference
between 100% and the related Senior Percentage for such Payment Date.

         "Subordinate  Prepayment  Percentage":  For each Mortgage Loan Group and any Payment Date,  the difference
between 100% and the Senior Prepayment Percentage for such Mortgage Loan Group for such Payment Date.

         "Subordinate  Principal  Distribution  Amount":  For each  Mortgage  Loan Group and any Payment  Date,  an
amount equal to the sum of:

                (1)     the product of (a) the related  Subordinate  Percentage,  (b) the principal portion of each
         Monthly  Payment on each  Mortgage  Loan in the  related  Mortgage  Loan Group due during the  related Due
         Period  and (c) in the case of the Group 1  Mortgage  Loans,  the  Group 1  Deferred  Interest  Adjustment
         Percentage for such Payment Date;

                (2)     the  product  of (a)  the  related  Subordinate  Prepayment  Percentage,  (b)  each  of the
         following  amounts:  (i) the principal  portion of each full and partial  Principal  Prepayment  made by a
         borrower on a Mortgage  Loan in the related  Mortgage  Loan Group  during the related  Prepayment  Period,
         (ii) each other unscheduled  collection,  including any Subsequent  Recovery,  Insurance  Proceeds and Net
         Liquidation  Proceeds  (other than with respect to any related  Mortgage Loan that was finally  liquidated
         during the related  Prepayment  Period),  representing or allocable to recoveries of principal of Mortgage
         Loans received  during the related  Prepayment  Period and (iii) the principal  portion of all proceeds of
         the  purchase  (or,  in  the  case  of a  Qualified  Substitute  Mortgage  Loan,  amounts  representing  a
         Substitution  Adjustment)  of any Mortgage Loan in the related  Mortgage Loan Group  actually  received by
         the  Securities  Administrator  with respect to the related  Prepayment  Period and (c) in the case of the
         Group 1 Mortgage Loans, the Group 1 Deferred Interest Adjustment Percentage for such Payment Date;

                (3)     with respect to unscheduled  recoveries  allocable to principal of any Mortgage Loan in the
         related  Mortgage  Loan Group that was  finally  liquidated  during the  related  Prepayment  Period,  the
         related Net  Liquidation  Proceeds  allocable  to  principal  (to the extent not  distributed  pursuant to
         subsection (3) of the definition of Senior  Principal  Distribution  Amount for the related  Mortgage Loan
         Group); and

                (4)     any amounts  described in clauses (1) through (3) for any previous Payment Date that remain
         unpaid.

         "Sub-Servicer":  Any  Person  that (i)  services  Mortgage  Loans on behalf of any  Servicer,  the  Master
Servicer,  the Securities  Administrator,  the Indenture  Trustee or the Custodian and (ii) is responsible  for the
performance  (whether directly or through  sub-servicers or Subcontractors)  of Servicing  functions required to be
performed  under  this  Agreement,  any  related  Servicing  Agreement  or any  sub-servicing  agreement  that  are
identified in Item 1122(d) of Regulation AB.

         "Subsequent  Recovery":  With  respect to any Payment  Date and a Mortgage  Loan that became a  Liquidated
Mortgage  Loan in a month  preceding the related  Prepayment  Period to such Payment Date and with respect to which
the related  Realized  Loss was  allocated to one or more Classes of Notes,  an amount  received in respect of such
Liquidated Mortgage Loan during the related Prepayment Period, net of any reimbursable expenses.

         "Substitution Adjustment":  As defined in Section 2.04(d) hereof.

         "Surety  Bond":  The  Limited  Purpose  Surety  Bond  (Policy  No.  AB0240BE),  issued by Ambac  Assurance
Corporation  for the  benefit of certain  beneficiaries,  including  the  Indenture  Trustee for the benefit of the
Holders  of the Notes,  but only to the  extent  that such  Limited  Purpose  Surety  Bond  covers  any  Additional
Collateral Mortgage Loans.

         "Swap  Proceeds  Account":  The account  maintained by the Auction  Administrator  pursuant to the Auction
Administration Agreement.

         "Telerate  Page 3750":  The  display  currently  so  designated  as "Page 3750" on the Dow Jones  Telerate
Service (or such other page  selected  by the Master  Servicer  as may  replace  Page 3750 on that  service for the
purpose of displaying daily comparable rates on prices).

         "Ten-Year Hybrid Mortgage Loans":  The Mortgage Loans identified as such on Schedule I hereto.

         "Thornburg":  Thornburg  Mortgage  Home  Loans,  Inc.,  a Delaware  corporation,  and its  successors  and
assigns.

         "Three-Year Hybrid Mortgage Loans":  The Mortgage Loans identified as such on Schedule I hereto.

         "TMFI":  Thornburg Mortgage Funding, Inc., a Delaware corporation, and its successors and assigns.

         "TMFI Contractual Rights":  As defined in the Preliminary Statement.

         "TMFI  Mortgage  Loan  Purchase  Agreement":  The mortgage  loan  purchase  agreement  between the Initial
Seller and TMFI dated as of July 1, 2007,  regarding the transfer of the Mortgage  Loans by Initial  Seller to TMFI
including the Initial Seller's rights and interest in the Servicing Agreements listed in Exhibit N hereto.

         "TMI":  Thornburg Mortgage, Inc., a Maryland corporation, and its successors and assigns.

         "Trust":  The Issuer.

         "Trust Account":  The Collection  Account,  the Note Payment  Account,  each Servicing  Account,  the Swap
Proceeds  Account,  the Auction  Proceeds  Account,  the Reserve Fund, the Final Maturity  Reserve  Account and the
Collateral Account, as the context requires.

         "Trust Account  Property":  The Trust Accounts,  the  Certificate  Distribution  Account,  all amounts and
investments  held from time to time in the Trust Accounts,  the Certificate  Distribution  Account  (whether in the
form  of  deposit  accounts,  physical  property,  book-entry  securities,  uncertificated  securities,  securities
entitlements, investment property or otherwise) and all proceeds of the foregoing.

         "Trust  Agreement":  The  Original  Trust  Agreement  as amended and  restated by the Amended and Restated
Trust  Agreement  dated  July  31,  2007  by and  among  the  Depositor,  the  Owner  Trustee  and  the  Securities
Administrator.

         "Trust Estate":  The assets subject to this Agreement and the Indenture,  (including those  transferred by
the  Depositor  to the Issuer) and pledged by the Issuer to the  Indenture  Trustee,  which  assets  consist of all
accounts,  accounts  receivable,  contract rights,  general  intangibles,  chattel paper,  instruments,  documents,
money,  deposit accounts,  certificates of deposit,  goods, notes,  drafts,  letters of credit,  advices of credit,
investment property,  uncertificated  securities and rights to payment of any and every kind consisting of, arising
from or  relating  to any of the  following:  (i) such  Mortgage  Loans as from  time to time are  subject  to this
Agreement,  together with the Mortgage Files relating  thereto,  together with all collections  thereon  (including
any Insurance  Proceeds,  Liquidation  Proceeds or other  recoveries)  and proceeds  thereof (but not including any
Prepayment  Penalty  Amounts),  (ii)  any REO  Property,  together  with all  collections  thereon  (including  any
Insurance Proceeds,  Liquidation Proceeds or other recoveries) and proceeds thereof,  (iii) the Indenture Trustee's
rights with respect to the Mortgage Loans under all insurance  policies required to be maintained  pursuant to this
Agreement  and any proceeds  thereof,  (iv) the  Depositor's  rights under the Mortgage  Loan  Purchase  Agreements
(including any security  interest created  thereby);  (v) the Trust Accounts  (subject to the last sentence of this
definition),  any REO  Account and such assets that are  deposited  therein  from time to time and any  investments
thereof,  together with any and all income,  proceeds and payments with respect thereto,  (vi) all right, title and
interest  of the  Issuer in and to each  security  or pledge  agreement  or  guarantee  in  respect  of  Additional
Collateral  (including the Surety Bond supporting any Additional  Collateral  Mortgage Loan, the Issuer's  security
interest  in and to any  Additional  Collateral  and the  Issuer's  rights to  require  payment  in any  Additional
Collateral Mortgage Loan pursuant to the related Servicing  Agreement),  (vii) all right, title and interest of the
Issuer in and to each of the  Servicing  Agreements,  (viii) all right,  title and interest of the Issuer under the
Administration   Agreement  and  the  Yield  Maintenance  Agreements  and  (ix)  all  proceeds  of  the  foregoing.
Notwithstanding  the  foregoing,  however,  the  Trust  Fund  specifically  excludes  (1) all  payments  and  other
collections  of interest  and  principal  due on the  Mortgage  Loans on or before the Cut-Off  Date and  principal
received  before the  Cut-Off  Date  (except  any  principal  collected  as part of a payment due after the Cut-Off
Date),  (2) all income and gain realized from Permitted  Investments of funds on deposit in the Collection  Account
and the Note Payment Account, (3) any Prepayment Penalty Amounts and (4) any Retained Interest.

         "Two Times  Test":  As to any Payment  Date,  (i) the  Aggregate  Subordinate  Percentage  is at least two
times the Aggregate  Subordinate  Percentage as of the Closing Date;  (ii) the aggregate of the Principal  Balances
of all Mortgage Loans Delinquent 60 days or more (including  Mortgage Loans in REO and foreclosure),  averaged over
the  preceding  six-month  period,  as a  percentage  of  the  aggregate  of the  Class  Principal  Amounts  of the
Subordinate  Notes,  does not equal or exceed 50%; and (iii) on or after the Payment Date in July 2010,  cumulative
Realized Losses do not exceed 30% of the Original  Subordinated  Principal  Amount, or prior to the Payment Date in
March 2010, cumulative Realized Losses do not exceed 20% of the Original Subordinated Principal Amount.

         "Undercollateralized Group":  With respect to any Payment Date, any Group 1 Notes, Group 2 Notes, the
Group 3 Notes or Group 4 Notes as to which the aggregate Class Principal Amount thereof, after giving effect to
distributions pursuant to Section 5.01(a) on such Payment Date, is greater than the sum of (i) the Scheduled
Principal Balances of the related Mortgage Loan Group as of the last day of the related Due Period and (ii)
amounts, if any, then on deposit in the Reserve Fund with respect to such Group or Groups of Notes for such
Payment Date.

         "Undercollateralization Payment":  As defined in Section 5.01(f)(ii).

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

         "Uninsured  Cause":  Any cause of damage to a Mortgaged  Property  such that the complete  restoration  of
such  property  is not fully  reimbursable  by the hazard  insurance  policies  required to be  maintained  on such
Mortgaged Property.

         "Value":  With respect to any Mortgage Loan and the related Mortgaged Property, the lesser of:

                  (i)      the value of such  Mortgaged  Property as determined  by an  appraisal,  or an automated
         valuation  model (AVM) in lieu of an appraisal,  made for the  originator of the Mortgage Loan at the time
         of  origination of the Mortgage Loan by an appraiser who met the minimum  requirements  of Title XI of the
         Financial  Institution  Reform,  Recovery  and  Enforcement  Act of 1989 and the  regulations  promulgated
         thereunder; and

                  (ii)     the purchase  price paid for the related  Mortgaged  Property by the Mortgagor  with the
         proceeds of the Mortgage Loan;

provided,  however,  that in the case of a  Refinancing  Mortgage  Loan,  such value of the  Mortgaged  Property is
generally  based solely upon the value  determined  by an appraisal  made for the  originator  of such  Refinancing
Mortgage  Loan at the time of  origination  by an  appraiser  who met the minimum  requirements  of Title XI of the
Financial Institution Reform, Recovery and Enforcement Act of 1989 and the regulations promulgated thereunder.

         "Voting  Rights":  The portion of the voting  rights of all of the Notes which is  allocated to such Note.
99% of the voting  rights  shall be  allocated  among the Classes of Notes  (other  than the Class A-X Notes),  pro
rata,  based on a fraction,  expressed as a  percentage,  the numerator of which is the Class  Principal  Amount of
such Class and the  denominator of which is the aggregate of the Class  Principal  Amounts then  outstanding and 1%
of the voting  rights shall be allocated to the Holders of the Class A-X Notes.  The voting  rights  allocated to a
Class of Notes shall be allocated among all Holders of such Class,  pro rata,  based on a fraction the numerator of
which is the Note  Principal  Amount or Note  Notional  Amount of each Note of such  Class and the  denominator  of
which is the Class  Principal  Amount or Class  Notional  Amount of such Class;  provided,  however,  that any Note
registered  in the name of the  Depositor,  the  Master  Servicer,  the  Securities  Administrator,  the  Indenture
Trustee,  the Owner  Trustee or any of their  respective  affiliates  shall not be included in the  calculation  of
Voting Rights.

         "WFB":  Wells Fargo Bank, N.A. or its successors and assigns in its capacity as Servicer.

         "Writedown Amount":  The reduction described in Section 5.03(c).

         "Yield  Maintenance  Agreement":  Any of the  Group  1  Yield  Maintenance  Agreement,  the  Group 2 Yield
Maintenance  Agreement,  the Group 3 Yield  Maintenance  Agreement or the Group 4 Yield Maintenance  Agreement,  as
applicable.

         "Yield  Maintenance  Amount":  For  any  Payment  Date,  the  amount,  if any,  to be  paid  by the  Yield
Maintenance  Counterparty to the Securities  Administrator pursuant to a Yield Maintenance Agreement, as calculated
by the Yield Maintenance  Counterparty based on information in the Payment Date Statement  delivered to it pursuant
to Section 5.04.

         "Yield Maintenance Counterparty":  The Royal Bank of Scotland plc.

         SECTION 1.02.  Accounting.

         Unless  otherwise  specified  herein,  for the purpose of any definition or calculation,  whenever amounts
are required to be netted,  subtracted  or added or any  distributions  are taken into account such  definition  or
calculation and any related definitions or calculations shall be determined without duplication of such functions.

                                                    ARTICLE II

                                           CONVEYANCE OF MORTGAGE LOANS;

         SECTION 2.01.  Conveyance of Mortgage Loans.

         In  consideration  of the Issuer's  delivery of the Notes and the Ownership  Certificates to the Depositor
or its designee,  and  concurrently  with the execution and delivery of this  Agreement,  the Depositor does hereby
transfer,  assign,  set over and otherwise convey to the Issuer without  recourse,  subject to Sections 2.02, 2.03,
2.04 and 2.05,  all of the right,  title and interest of the  Depositor in and to the Mortgage  Loans and the other
assets  constituting  the Trust  Estate.  To  facilitate  the pledge of the Trust Estate to the  Indenture  Trustee
pursuant to the  Indenture,  the Issuer  hereby  directs  the  Depositor  to assign and  deliver  the Trust  Estate
directly to the Indenture  Trustee.  The Indenture  Trustee  declares that,  subject to the review  provided for in
Section 2.02,  it has received and shall hold the Trust Estate,  as Indenture  Trustee,  in trust,  for the benefit
and use of the  Securityholders  and for the  purposes  and subject to the terms and  conditions  set forth in this
Agreement and the  Indenture.  Concurrently  with such receipt,  the Issuer has issued and delivered the Securities
to or upon the order of the Depositor, in exchange for the Trust Estate.

         The foregoing sale, transfer,  assignment,  set-over,  deposit and conveyance does not and is not intended
to result in creation or assumption by the Indenture  Trustee of any  obligation of the  Depositor,  the Sellers or
any other Person in  connection  with the Mortgage  Loans or any other  agreement or  instrument  relating  thereto
except as specifically set forth herein.  Upon the issuance of the Notes and the Ownership  Certificate,  ownership
in the Trust  Estate shall be vested in the Issuer,  subject to the lien  created by the  Indenture in favor of the
Indenture Trustee, for the benefit of the Noteholders.

         For purposes of complying with the  requirements of the  Asset-Backed  Securities  Facilitation Act of the
State of Delaware,  6 Del. C. § 2701A,  et seq.  (the  "Securitization  Act"),  each of the parties  hereto  hereby
agrees that:

         (i)      any  property,  assets  or  rights  purported  to be  transferred,  in whole  or in part,  by the
                  Depositor  pursuant to this  Agreement  shall be deemed to no longer be the  property,  assets or
                  rights of the Depositor;

         (ii)     none of the  Depositor,  its  creditors  or, in any  insolvency  proceeding  with  respect to the
                  Depositor  or the  Depositor's  property,  a  bankruptcy  trustee,  receiver,  debtor,  debtor in
                  possession or similar  person,  to the extent the issue is governed by Delaware  law,  shall have
                  any rights,  legal or equitable,  whatsoever to reacquire (except pursuant to a provision of this
                  Agreement),  reclaim, recover, repudiate,  disaffirm, redeem or recharacterize as property of the
                  Depositor any property,  assets or rights  purported to be  transferred,  in whole or in part, by
                  the Depositor pursuant to this Agreement (including the Assignment);

         (iii)    in the event of a bankruptcy,  receivership  or other  insolvency  proceeding with respect to the
                  Depositor  or the  Depositor's  property,  to the extent the issue is governed  by Delaware  law,
                  such  property,  assets and rights  shall not be deemed to be part of the  Depositor's  property,
                  assets, rights or estate; and

         (iv)     the transaction  contemplated by this Agreement shall constitute a  "securitization  transaction"
                  as such term is used in the Securitization Act.

         In  connection  with such  transfer  and  assignment,  the Initial  Seller,  on behalf of the Seller,  the
Depositor and the Issuer,  does hereby  deliver on the Closing  Date,  unless  otherwise  specified in this Section
2.01,  to, and deposit  with the  Indenture  Trustee,  or the  Custodian as its  designated  agent,  the  following
documents or instruments with respect to each Mortgage Loan (a "Mortgage File") so transferred and assigned:

         (i)      the original  Mortgage Note,  endorsed either on its face or by allonge attached thereto in blank
                  or in the following  form: "Pay to the order of LaSalle Bank National  Association,  as Indenture
                  Trustee for Thornburg  Mortgage  Securities Trust 2007-3,  without recourse" or in blank, or with
                  respect to any lost  Mortgage  Note, an original  Lost Note  Affidavit  stating that the original
                  mortgage  note was lost,  misplaced or destroyed,  together  with a copy of the related  mortgage
                  note;  provided,  however,  that such substitutions of Lost Note Affidavits for original Mortgage
                  Notes may occur  only with  respect  to  Mortgage  Loans the  aggregate  Cut-Off  Date  Principal
                  Balance of which is less than or equal to 2% of the Cut-Off Date Aggregate Principal Balance;

         (ii)     originals or copies of any  guarantee,  security  agreement or pledge  agreement  relating to any
                  Additional  Collateral,  if  applicable,  and  executed in  connection  with the  Mortgage  Note,
                  assigned to the Indenture Trustee on behalf of the Issuer;

         (iii)    except as provided  below,  for each Mortgage Loan that is not a MERS Mortgage Loan, the original
                  Mortgage or a copy thereof  certified by the public  recording  office in which such Mortgage has
                  been  recorded,  and in the case of each MERS  Mortgage  Loan,  the  original  Mortgage or a copy
                  thereof  certified  by the public  recording  office in which such  Mortgage  has been  recorded,
                  noting the presence of the MIN for that Mortgage  Loan and either  language  indicating  that the
                  Mortgage  Loan is a MOM Loan if the Mortgage  Loan is a MOM Loan,  or if such  Mortgage  Loan was
                  not a MOM Loan at origination,  the original  Mortgage or a copy thereof  certified by the public
                  recording  office in which such  Mortgage has been  recorded and the  assignment to MERS, in each
                  case with evidence of recording  thereon,  and the original  recorded power of attorney or a copy
                  thereof  certified  by the  public  recording  office in which such  power of  attorney  has been
                  recorded,  if the  Mortgage  was  executed  pursuant  to a power of  attorney,  with  evidence of
                  recording  thereon or, if such  Mortgage or power of attorney has been  submitted  for  recording
                  but has not been returned from the applicable public recording  office,  the Initial Seller shall
                  provide a certified  copy of such  Mortgage or power of attorney,  as the case may be, a notation
                  that the original of such  unrecorded  Mortgage or power of  attorney,  as  applicable,  has been
                  forwarded to the public recording office,  or, in the case of an unrecorded  Mortgage or power of
                  attorney,  as  applicable,  that has been lost, a copy thereof  (certified  as provided for under
                  the laws of the  appropriate  jurisdiction)  and a written  Opinion of Counsel  (delivered at the
                  Initial  Seller's  expense)  acceptable  to the  Indenture  Trustee  and  the  Depositor  that an
                  original  recorded  Mortgage is not required to enforce the Indenture  Trustee's  interest in the
                  Mortgage Loan;

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

         (v)      in the case of each  Mortgage Loan that is not a MERS  Mortgage  Loan, an original  Assignment of
                  Mortgage,  in form and substance  acceptable  for  recording.  The Mortgage  shall be assigned to
                  "LaSalle Bank  National  Association,  as Indenture  Trustee for  Thornburg  Mortgage  Securities
                  Trust 2007-3, without recourse" or in blank;

         (vi)     in the case of each  Mortgage Loan that is not a MERS  Mortgage  Loan, a copy of any  intervening
                  Assignment  of  Mortgage  showing  a  complete  chain  of  assignments,  or,  in the  case  of an
                  intervening  Assignment of Mortgage that has been lost, a written  Opinion of Counsel  (delivered
                  at the  Initial  Seller's  expense)  acceptable  to the  Indenture  Trustee  that  such  original
                  intervening  Assignment of Mortgage is not required to enforce the Indenture  Trustee's  interest
                  in the Mortgage Loans;

         (vii)    the original or a copy of the lender's title insurance policy; and

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

         Notwithstanding  the above,  with respect to the Mortgage  Loans serviced by WFB, the Mortgage Files to be
delivered  and  deposited  with the  Indenture  Trustee,  or the  Custodian,  as its agent,  shall include only the
documents or instruments  referred to in clauses (i), (ii), (iv) and (v) above and the other  documents  identified
above shall be  retained  and held by WFB, as a Servicer,  as  provided in the  Reconstituted  Servicing  Agreement
dated as of July 1, 2007, among the Initial Seller,  the Seller,  WFB and the Trust, and acknowledged by the Master
Servicer;  provided that the Master  Servicer  shall cause WFB to deliver to the  Custodian,  within 60 days of the
occurrence  of a Document  Transfer  Event,  the  documents  and  instruments  so retained by it  consisting of the
documents or instruments referred to in clauses (iii) and (vi) through (viii) above.

         In connection  with the  assignment of any MERS Mortgage Loan, the Initial Seller agrees that it will take
(or shall cause the applicable  Servicer to take),  at the expense of the Initial  Seller (with the  cooperation of
the  Depositor,  the Seller,  the Issuer,  the  Indenture  Trustee and the Master  Servicer),  such  actions as are
necessary  to cause the MERS®  System to indicate  that such  Mortgage  Loans have been  assigned to the  Indenture
Trustee in accordance  with this  Agreement for the benefit of the  Securityholders  by including (or deleting,  in
the case of Mortgage  Loans that are  repurchased  in accordance  with this  Agreement) in such computer  files the
information  required  by the MERS®  System to  identify  the  series of the Notes  issued in  connection  with the
transfer of such Mortgage Loans to the Thornburg Mortgage Securities Trust 2007-3.

         With respect to each Cooperative  Loan the Initial Seller,  on behalf of the Seller and the Depositor does
hereby  deliver to the Indenture  Trustee (or  Custodian)  the related  Cooperative  Loan Documents and the Initial
Seller will take (or shall cause the applicable  Servicer to take),  at the expense of the Initial Seller (with the
cooperation of the Depositor,  the Indenture  Trustee and the Master  Servicer) such actions as are necessary under
applicable law (including but not limited to the Uniform  Commercial  Code) in order to perfect the interest of the
Indenture Trustee in the related Mortgaged Property.

         Assignments  of each  Mortgage  with respect to each Mortgage Loan that is not a MERS Mortgage Loan (other
than a Cooperative Loan) shall be recorded;  provided,  however,  that such assignments need not be recorded if, in
the  Opinion  of  Counsel  (which  must be from  Independent  Counsel  and not at the  expense of the Issuer or the
Indenture Trustee)  acceptable to the Indenture Trustee,  each Rating Agency and the Master Servicer,  recording in
such states is not required to protect the Indenture  Trustee's  interest in the related Mortgage Loans;  provided,
however,  notwithstanding  the delivery of any Opinion of Counsel,  each  assignment of Mortgage shall be submitted
for recording by the Initial Seller (or the Initial  Seller will cause the applicable  Servicer to submit each such
assignment for recording),  at the cost and expense of the Initial  Seller,  in the manner  described  above, at no
expense  to the  Issuer or  Indenture  Trustee,  upon the  earliest  to occur of (1)  reasonable  direction  by the
Majority  Securityholders,  (2) the occurrence of a bankruptcy or insolvency  relating to the Initial  Seller,  the
Seller or the  Depositor,  or (3) with respect to any one  Assignment of Mortgage,  the occurrence of a bankruptcy,
insolvency  or  foreclosure  relating  to the  Mortgagor  under the  related  Mortgage.  Subject  to the  preceding
sentence,  as soon as practicable  after the Closing Date (but in no event more than three months thereafter except
to the extent delays are caused by the applicable  recording office),  the Initial Seller shall properly record (or
the Initial Seller will cause the  applicable  Servicer to properly  record),  at the expense of the Initial Seller
(with the cooperation of the Depositor,  the Indenture Trustee and the Master  Servicer),  in each public recording
office  where the related  Mortgages  are  recorded,  each  assignment  referred to in Section  2.01(v)  above with
respect to a Mortgage Loan that is not a MERS Mortgage Loan.

         The  Custodian  agrees to execute and deliver to the  Depositor  and the Issuer on or prior to the Closing
Date an acknowledgment of receipt of the original Mortgage Note (with any exceptions  noted),  substantially in the
form attached as Exhibit G-1 hereto.

         If the  original  lender's  title  insurance  policy,  or a copy  thereof,  was required to be but was not
delivered  pursuant to Section  2.01(vii)  above,  the Initial Seller shall deliver or cause to be delivered to the
Indenture Trustee the original or a copy of a written  commitment or interim binder or preliminary  report of title
issued by the title  insurance  or escrow  company,  with the  original or a copy  thereof to be  delivered  to the
Indenture  Trustee,  promptly  upon  receipt  thereof,  but in any case  within 175 days of the Closing  Date.  The
Initial  Seller shall deliver or cause to be delivered to the  Indenture  Trustee,  promptly upon receipt  thereof,
any other  documents  constituting a part of a Mortgage File received with respect to any Mortgage Loan sold to the
Depositor by the Seller and required to be delivered to the Indenture Trustee,  including,  but not limited to, any
original  documents  evidencing an assumption or  modification  of any Mortgage  Loan.  The Master  Servicer  shall
cause to be delivered to the Indenture  Trustee or the Custodian,  as its agent, the Mortgage Files retained by WFB
within 60 days of the occurrence of a Document Transfer Event as described above.

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

         Upon  discovery  or receipt  of notice of any  materially  defective  document  in, or that a document  is
missing from, a Mortgage  File,  the Initial  Seller shall have 90 days to cure such defect or deliver such missing
document to the  Indenture  Trustee.  If the  Initial  Seller  does not cure such  defect or deliver  such  missing
document within such time period,  the Initial Seller shall either  repurchase or substitute for such Mortgage Loan
in accordance with Section 2.04 hereof.

         The Depositor  herewith  delivers to the Indenture  Trustee  executed copies of the Mortgage Loan Purchase
Agreements.

         SECTION 2.02.  Acceptance of the Trust Estate; Review of Documentation.

         Subject to the  provisions  of Section  2.01,  the Owner  Trustee,  on behalf of the Issuer,  acknowledges
receipt of the assets  transferred  by the  Depositor  and included in the Trust  Estate and has directed  that the
documents  referred  to in Section  2.01 and all other  assets  included  in the  definition  of "Trust  Estate" be
delivered to the Indenture Trustee (or the Custodian) on its behalf.

         The  Indenture  Trustee  hereby  accepts its  appointment  as Custodian  hereunder  and  acknowledges  the
receipt,  subject to the  provisions of Section 2.01 and subject to the review  described  below and any exceptions
noted on the exception report  described in the next paragraph below, of the documents  referred to in Section 2.01
above and all other assets  included in the  definition  of "Trust  Estate" and declares  that,  in its capacity as
Custodian,  it holds and will hold such documents and the other  documents  delivered to it constituting a Mortgage
File,  and that it holds or will hold all such assets and such other assets  included in the  definition  of "Trust
Estate" in trust for the exclusive use and benefit of all present and future Securityholders.

         The Indenture  Trustee further  agrees,  for the benefit of the  Securityholders,  to review each Mortgage
File  delivered to it (other than Mortgage  Files  relating to Mortgage  Loans  serviced by WPB) and to certify and
deliver  to  the  Depositor,  the  Issuer,  the  Sellers  and  each  Rating  Agency  an  interim  certification  in
substantially  the form attached  hereto as Exhibit G-2, within 90 days after the Closing Date (or, with respect to
any  document  delivered  after the  Closing  Date,  within 45 days of  receipt  (including,  but not  limited  to,
documents  provided by WFB as described in Section  2.01) and with respect to any  Qualified  Substitute  Mortgage,
within five  Business  Days after the  assignment  thereof)  that,  as to each Mortgage Loan listed in the Mortgage
Loan  Schedule  (other than any Mortgage  Loan paid in full or any Mortgage  Loan  specifically  identified  in the
exception  report annexed thereto as not being covered by such  certification),  (i) all  documents  required to be
delivered to it pursuant to  Section 2.01 of this Agreement are in its  possession,  (ii) such  documents have been
reviewed by it and have not been  mutilated,  damaged or torn and relate to such Mortgage Loan and  (iii) based  on
its  examination  and only as to the  foregoing,  the  information  set forth in the Mortgage  Loan  Schedule  that
corresponds  to items (i),  (ii),  (iii),  (xiii),  (xiv) and (xviii) of the Mortgage  Loan Schedule (to the extent
such items are required to be delivered to it as part of the Mortgage  Files  pursuant to Section 2.01)  accurately
reflects  information  set forth in the Mortgage File. It is herein  acknowledged  that, in conducting such review,
the  Indenture  Trustee  is  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 have  actually  been recorded or that they are other than what they purport to be
on their face.

         No later than 180 days after the Closing  Date,  the Indenture  Trustee  shall deliver to the Issuer,  the
Depositor  and the  Sellers  a final  certification  in the form  annexed  hereto as  Exhibit  G-3  evidencing  the
completeness of the Mortgage Files, with any applicable exceptions noted thereon.

         If, in the  process of  reviewing  the  Mortgage  Files and making or  preparing,  as the case may be, the
certifications  referred to above, the Indenture  Trustee finds any document or documents  constituting a part of a
Mortgage  File to be missing or not  conforming to the  requirements  set forth  herein,  at the  conclusion of its
review the Indenture  Trustee (or the Custodian as its  designated  agent) shall promptly  notify the Sellers,  the
Depositor and the Master Servicer.  In addition,  upon the discovery by the Issuer,  the Initial Seller, the Seller
or the Depositor (or upon receipt by the Indenture  Trustee of written  notification of such breach) of a breach of
any of the  representations  and warranties made by either the Initial Seller or the Seller in the related Mortgage
Loan Purchase  Agreement in respect of any Mortgage Loan that  materially  adversely  affects such Mortgage Loan or
the interests of the related  Securityholders  in such Mortgage Loan, the party  discovering such breach shall give
prompt written notice to the other parties to this Agreement.

         Nothing in this  Agreement  shall be  construed to  constitute  an  assumption  by the Trust  Estate,  the
Indenture  Trustee,  any Custodian or the  Securityholders of any unsatisfied duty, claim or other liability on any
Mortgage Loan or to any Mortgagor.

         Upon  execution of this  Agreement,  the  Depositor  hereby  delivers to the  Indenture  Trustee,  and the
Indenture Trustee acknowledges receipt of, the Mortgage Loan Purchase Agreements and each Servicing Agreement.

         SECTION 2.03.  Grant Clause

         (a)  It is intended that the conveyance by the Depositor to the Issuer of the Mortgage Loans and other
assets in the Trust Estate, as provided for in Section 2.01 be construed as a sale by the Depositor to the Issuer
of the Mortgage Loans and other assets in the Trust Estate for the benefit of the Securityholders.  Further, it
is not intended that any such conveyance be deemed to be a pledge of the Mortgage Loans and other assets in the
Trust Estate by the Depositor to the Issuer to secure a debt or other obligation of the Depositor.  However, in
the event that the Mortgage Loans and other assets in the Trust Estate are held to be property of the Depositor
or if for any reason this Agreement is held or deemed to create a security interest in the Mortgage Loans and
other assets in the Trust Estate, then it is intended that (a) this Agreement shall also be deemed to be a
security agreement within the meaning of Articles 8 and 9 of the New York UCC (or the Uniform Commercial Code if
not the New York UCC); (b) the conveyances provided for in Section 2.01 shall be deemed to be (1) a grant by the
Depositor to the Issuer of a security interest in all of the Depositor's right (including the power to convey
title thereto), title and interest, whether now owned or hereafter acquired, in and to (A) the Mortgage Loans,
including the Mortgage Notes, the Mortgages, any related insurance policies and all other documents in the
related Mortgage Files, (B) all amounts payable pursuant to the Mortgage Loans in accordance with the terms
thereof and (C) any and all general intangibles consisting of, arising from or relating to any of the foregoing,
and all proceeds of the conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities
or other property, including without limitation all Liquidation Proceeds, all Insurance Proceeds, all amounts
from time to time held or invested in the Trust Accounts, whether in the form of cash, instruments, securities or
other property and (2) an assignment by the Depositor to the Issuer for the transfer to the Indenture Trustee of
any security interest in any and all of the Depositor's right (including the power to convey title thereto),
title and interest, whether now owned or hereafter acquired, in and to the property described in the foregoing
clauses (1)(A) through (C); (c) the possession by the Indenture Trustee or any other agent of the Issuer of
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," or possession by a purchaser or a person
designated by such secured party, for purposes of perfecting the security interest pursuant to the New York UCC
and any other Uniform Commercial Code (including, without limitation, Section 9-313, 8-313 or 8-321 thereof); and
(d) 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 Issuer for the purpose of perfecting such
security interest under applicable law.

         (b)  The Depositor and, at the Depositor's direction, the Sellers and the Issuer shall, to the extent
consistent with this Agreement, take such reasonable actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the Mortgage Loans and the other property of the Trust
Estate, 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.  Without limiting the
generality of the foregoing, the Depositor shall prepare and deliver to the Issuer, and the Issuer shall forward
for filing, or shall cause to be forwarded for filing, at the expense of the Depositor, all filings necessary to
maintain the effectiveness of any original filings necessary under the Uniform Commercial Code to perfect the
Issuer's security interest in or lien on the Mortgage Loans as evidenced by an Officer's Certificate of the
Depositor, including without limitation (x) continuation statements, and (y) such other statements as may be
occasioned by (1) any change of name of the Initial Seller, the Seller, the Depositor or the Issuer, (2) any
change of location of the place of business or the chief executive office of the Initial Seller, the Seller or
the Depositor or (3) any transfer of any interest of the Initial Seller, the Seller or the Depositor in any
Mortgage Loan.

         (c)  Neither the Depositor nor the Issuer shall organize under the law of any jurisdiction other than
the State under which each is organized as of the Closing Date (whether changing its jurisdiction of organization
or organizing under an additional jurisdiction) without giving 30 days prior written notice of such action to its
immediate transferee, including the Indenture Trustee.  Before effecting such change, each of the Depositor or
the Issuer proposing to change its jurisdiction of organization shall prepare and file in the appropriate filing
office any financing statements or other statements necessary to continue the perfection of the interests of its
immediate transferees, including the Indenture Trustee, in the Mortgage Loans.  In connection with the
transactions contemplated by this Agreement and the Indenture, each of the Depositor and the Issuer authorizes
its immediate transferee, including the Indenture Trustee (or the Securities Administrator acting on behalf of
the Indenture Trustee), to file in any filing office any initial financing statements, any amendments to
financing statements, any continuation statements, or any other statements or filings described in Section
2.03(b) and this Section 2.03(c).

         (d)  The Depositor shall not take any action inconsistent with the sale by the Depositor of all of its
right, title and interest in and to the Trust Estate and 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 property of the Issuer
is held by the Issuer.  In addition, the Depositor shall respond to any inquiries from third parties with respect
to ownership of a Mortgage Loan or any other property of the Trust Estate by stating that it is not the owner of
such Mortgage Loan and that ownership of such Mortgage Loan or other property of the Trust Estate is held by the
Issuer on behalf of the Noteholders.

         SECTION 2.04.  Repurchase or Substitution of Mortgage Loans by the Seller.

         (a)  Upon  discovery or receipt of written  notice that a document  does not comply with the  requirements
of Section  2.01  hereof,  or that a document  is missing  from,  a Mortgage  File or of the breach by the  Initial
Seller or the  Seller of any  representation,  warranty  or  covenant  under its  related  Mortgage  Loan  Purchase
Agreement or in  Section 2.05  or Section 2.08 herein in respect of any Mortgage  Loan which  materially  adversely
affects  the  value of that  Mortgage  Loan or the  interest  therein  of the  Securityholders,  (i) in the case of
Mortgage Loan  documentation  that is not in compliance with Section 2.01 or is missing,  the Indenture Trustee (or
the Custodian as its designated  agent) shall promptly notify the Initial Seller of such  noncompliance  or missing
document and request that the Initial Seller  deliver such missing  document or cure such  noncompliance  within 90
days from the date that the Initial  Seller was  notified of such  missing  document or  noncompliance,  and if the
Initial Seller does not deliver such missing document or cure such  noncompliance  in all material  respects during
such period,  the  Indenture  Trustee shall enforce the Initial  Seller's  obligation  under the TMFI Mortgage Loan
Purchase  Agreement  and cause the Initial  Seller to  repurchase  that  Mortgage Loan from the Trust Estate at the
Purchase  Price on or prior to the  Determination  Date  following the  expiration of such 90 day period or (ii) in
the case of a breach of a  representation,  warranty  or  covenant  with  respect  to a  Mortgage  Loan,  the party
discovering  such breach shall notify the Initial Seller or the Seller,  as applicable,  and the Indenture  Trustee
of such breach (with a copy of such notice  provided to the other parties hereto) of its  representation,  warranty
or covenant made under the related  Mortgage Loan Purchase  Agreement,  and request that the Initial  Seller or the
Seller,  as  applicable,  cure such  breach  within 90 days from the date it was  notified of the breach and if the
Initial  Seller or the Seller,  as  applicable,  which  caused the breach does not cure such breach in all material
respects  during such period,  the Indenture  Trustee shall enforce the obligation of the Initial Seller or Seller,
as  applicable,  which  caused the breach  under its  related  Mortgage  Loan  Purchase  Agreement  and cause it to
repurchase  the Mortgage Loans from the Trust Estate at the Purchase  Price on or prior to the  Determination  Date
following the expiration of such 90 day period;  provided,  however,  that, in connection with any such breach that
could not  reasonably  have been cured within such 90 day period,  if either the Initial  Seller or the Seller,  as
applicable,  shall have commenced to cure such breach within such 90 day period,  the Initial Seller or the Seller,
as applicable  shall be permitted to proceed  thereafter  diligently and  expeditiously to cure the same within the
additional period provided under the applicable Mortgage Loan Purchase Agreement;  and, provided further,  that, in
the case of the  breach of any  representation,  warranty  or  covenant  made by either the  Initial  Seller or the
Seller in Schedule III of the related  Mortgage  Loan  Purchase  Agreement,  the Initial  Seller or the Seller,  as
applicable,  shall be obligated to cure such breach or purchase the affected  Mortgage Loans for the Purchase Price
or, if the Mortgage Loan or the related  Mortgaged  Property  acquired with respect thereto has been sold, then the
Initial Seller or the Seller,  as applicable,  shall pay, in lieu of the Purchase Price, any excess of the Purchase
Price over the Net Liquidation  Proceeds  received upon such sale. The Purchase Price for the repurchased  Mortgage
Loan or such other amount due shall be deposited in the  Collection  Account on or prior to the next  Determination
Date after the  obligation  of the Initial  Seller or Seller,  as  applicable,  to  repurchase  such  Mortgage Loan
arises.  The Indenture  Trustee,  upon receipt of written  certification  from the Securities  Administrator of the
related  deposit in the  Collection  Account,  shall cause the  Custodian  to release to the Initial  Seller or the
Seller,  as  applicable,  the related  Mortgage File and shall execute and deliver such  instruments of transfer or
assignment,  in each case without recourse,  as the Initial Seller or the Seller,  as applicable,  shall furnish to
it and as shall be  necessary  to vest in the Initial  Seller or the  Seller,  as  applicable,  any  Mortgage  Loan
released  pursuant  hereto and the  Indenture  Trustee  shall have no further  responsibility  with  regard to such
Mortgage File (it being  understood  that the Indenture  Trustee shall have no  responsibility  for determining the
sufficiency  of such  assignment  for its intended  purpose).  In lieu of  repurchasing  any such  Mortgage Loan as
provided above,  the Initial Seller or the Seller,  as applicable,  which caused the breach may cause such Mortgage
Loan to be removed  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 and subject to the limitations set forth in Section
2.04(d)  below.  It is  understood  and  agreed  that the  obligation  of the  Initial  Seller  or the  Seller,  as
applicable,  to cure or to repurchase  (or to substitute  for) any Mortgage Loan as to which a document is missing,
a material  defect in a  constituent  document  exists or as to which such a breach has occurred and is  continuing
shall  constitute  the sole remedy  against  the  Initial  Seller or the Seller,  as  applicable,  respecting  such
omission, defect or breach available to the Indenture Trustee on behalf of the Securityholders.

         The Indenture  Trustee on behalf of the Issuer shall  enforce the  obligations  of the Initial  Seller and
the Seller under the related Mortgage Loan Purchase  Agreement  including,  without  limitation,  any obligation of
the  Initial  Seller to  purchase a Mortgage  Loan on account  of missing or  defective  documentation  or any such
obligation  of the  Initial  Seller or the  Seller,  as  applicable,  on account  of a breach of a  representation,
warranty or covenant as described in this Section 2.04(a).

         Any costs and expenses  (including  reasonable  attorneys'  fees and  expenses)  incurred by the Indenture
Trustee  enforcing  the  obligations  of the Initial  Seller and the Seller  under this  Section  2.04(a)  shall be
reimbursable to the Indenture Trustee from amounts on deposit in the Collection Account.

         (b)  If pursuant to the provisions of Section  2.04(a),  the Initial  Seller or the Seller  repurchases or
otherwise  removes from the Trust Estate a Mortgage Loan that is a MERS Mortgage  Loan,  the Initial  Seller or the
Seller,  as applicable,  will take (or shall cause the applicable  Servicer to take), at the expense of the Initial
Seller or the Seller,  as applicable (with the cooperation of the Depositor,  the Indenture  Trustee and the Master
Servicer),  such  actions  as are  necessary  to either  (i) cause MERS to execute  and  deliver an  Assignment  of
Mortgage  in  recordable  form to  transfer  the  Mortgage  from  MERS to the  Initial  Seller  or the  Seller,  as
applicable,  and shall cause such Mortgage to be removed from  registration  on the MERS® System in accordance with
MERS' rules and  regulations  or (ii) cause MERS to designate on the MERS® System the Initial Seller or the Seller,
as applicable, or its designee as the beneficial holder of such Mortgage Loan.

         (c)  [Reserved].

         (d)  As to any  Deleted  Mortgage  Loan for  which  the  Initial  Seller  or the  Seller,  as  applicable,
substitutes a Qualified  Substitute  Mortgage Loan or Mortgage Loans,  such  substitution  shall be effected by the
Initial Seller or the Seller, as applicable,  delivering to the Indenture  Trustee,  for such Qualified  Substitute
Mortgage Loan or Mortgage  Loans,  the Mortgage  Note, the Mortgage,  the  Assignment to the Indenture  Trustee (or
the Custodian on its behalf),  and such other documents and agreements,  with all necessary  endorsements  thereon,
as are required by Section 2.01 hereof  (subject to the exceptions  provided  therein),  together with an Officers'
Certificate  stating that each such  Qualified  Substitute  Mortgage  Loan  satisfies  the  definition  thereof and
specifying  the  Substitution  Adjustment  (as  described  below),  if any, in connection  with such  substitution;
provided,  however,  that, in the case of any Qualified  Substitute Mortgage Loan that is a MERS Mortgage Loan, the
Initial Seller or the Seller,  as applicable,  shall provide such documents and take such other action with respect
to such  Qualified  Substitute  Mortgage  Loans as are  required  pursuant to Section 2.01  hereof.  The  Indenture
Trustee (or the Custodian on its behalf) shall acknowledge  receipt for such Qualified  Substitute Mortgage Loan or
Loans and,  within five Business Days  thereafter,  shall review such documents as specified in Section 2.02 hereof
and  deliver to the  related  Servicer,  with  respect  to such  Qualified  Substitute  Mortgage  Loan or Loans,  a
certification  substantially  in the form  attached  hereto as Exhibit  G-2,  with any  exceptions  noted  thereon.
Within 180 days of the date of substitution,  the Indenture  Trustee (or the Custodian on its behalf) shall deliver
to the Initial Seller or the Seller,  as applicable,  and the Master Servicer a certification  substantially in the
form of Exhibit G-3 hereto with respect to such Qualified  Substitute  Mortgage Loan or Loans,  with any exceptions
noted  thereon.  Monthly  Payments  due with  respect  to  Qualified  Substitute  Mortgage  Loans  in the  month of
substitution  are not part of the Trust  Estate  and will be  retained  by the  Initial  Seller or the  Seller,  as
applicable,.  For the  month of  substitution,  payments  to  Securityholders  will  reflect  the  collections  and
recoveries in respect of such Deleted  Mortgage Loan in the Due Period  preceding the month of substitution and the
Depositor or the Initial Seller or the Seller,  as applicable,  as the case may be, shall thereafter be entitled to
retain all amounts  subsequently  received in respect of such  Deleted  Mortgage  Loan.  The Initial  Seller or the
Seller,  as  applicable,  shall  give or  cause  to be  given  written  notice  to the  Securityholders  that  such
substitution  has taken  place,  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 and shall  deliver  a copy of such  amended  Mortgage  Loan  Schedule  to the  Indenture  Trustee.  Upon such
substitution,  such  Qualified  Substitute  Mortgage  Loan or Loans shall  constitute  part of the Trust Estate and
shall be subject in all  respects to the terms of this  Agreement  and, in the case of a  substitution  effected by
the Initial  Seller or the Seller,  the related  Mortgage  Loan  Purchase  Agreement,  including,  in the case of a
substitution  effected by the Initial Seller or the Seller, all  representations and warranties thereof included in
the related Mortgage Loan Purchase  Agreement and all  representations  and warranties thereof set forth in Section
2.05 hereof, in each case as of the date of substitution.

         For any  month in  which  the  Initial  Seller  or the  Seller,  as  applicable,  substitutes  one or more
Qualified  Substitute  Mortgage Loans for one or more Deleted Mortgage Loans, the Initial Seller or the Seller,  as
applicable,  shall determine,  and provide written certification to the Indenture Trustee as to the amount (each, a
"Substitution  Adjustment"),  if any, by which the  aggregate  Purchase  Price of all such Deleted  Mortgage  Loans
exceeds the aggregate,  as to each such Qualified  Substitute Mortgage Loan, of the principal balance thereof as of
the date of substitution,  together with one month's interest on such principal  balance at the applicable Net Loan
Rate.  On or prior to the next  Determination  Date  after the  Initial  Seller's  or the  Seller's  obligation  to
repurchase  the related  Deleted  Mortgage  Loan arises,  the Initial  Seller or the Seller,  as  applicable,  will
deliver or cause to be delivered to the Securities  Administrator  for deposit in the Collection  Account an amount
equal to the related  Substitution  Adjustment,  if any,  and the  Indenture  Trustee,  upon receipt of the related
Qualified  Substitute  Mortgage  Loan or Loans  and an  acknowledgment  from the  Securities  Administrator  of its
receipt  of the  deposit  to the  Collection  Account,  shall  release  to the  Initial  Seller or the  Seller,  as
applicable,  the related  Mortgage  File or Files and shall  execute and deliver  such  instruments  of transfer or
assignment,  in each case without recourse,  as the Initial Seller or the Seller,  as applicable,  shall deliver to
it and as shall be necessary to vest therein any Deleted Mortgage Loan released pursuant hereto.

         SECTION 2.05.  Representations and Warranties of the Sellers with Respect to the Mortgage Loans.

         Each of the Initial  Seller and the Seller hereby  represents  and warrants to the  Indenture  Trustee for
the benefit of the  Securityholders  that the representations and warranties made by it pursuant to Schedule III to
the related  Mortgage  Loan Purchase  Agreement  are hereby being made to the Indenture  Trustee for the benefit of
the Securityholders and are true and correct as of the Closing Date.

         With respect to the  representations  and  warranties  incorporated  in this Section 2.05 that are made to
the best of the Initial  Seller's or the Seller's  knowledge or as to which either the Initial Seller or the Seller
has no knowledge,  if it is discovered by the Depositor,  the Initial  Seller,  the Seller,  the Master Servicer or
the Indenture  Trustee that the  substance of such  representation  and warranty made by the Initial  Seller or the
Seller,  as  applicable,  is inaccurate  and such  inaccuracy  materially  and  adversely  affects the value of the
related Mortgage Loan or the interest therein of the  Securityholders  then,  notwithstanding  the Initial Seller's
or the  Seller's,  as  applicable,  lack of knowledge  with respect to the  substance  of such  representation  and
warranty made by it being  inaccurate at the time the  representation  or warranty was made, such inaccuracy  shall
be deemed a breach of the applicable representation or warranty.

         Within 90 days of its  discovery  or its  receipt of notice of any such  missing or  materially  defective
documentation,  the  Initial  Seller  shall  promptly  deliver  such  missing  document  or cure such defect in all
material  respects or, in the event such defect cannot be cured,  the Initial Seller shall  repurchase the affected
Mortgage Loan or cause the removal of such Mortgage  Loan from the Trust Estate and  substitute  for it one or more
Qualified  Substitute  Mortgage Loans in accordance with Section 2.04 hereof.  Within 90 days of either the Initial
Seller's or the  Seller's  discovery of its receipt of notice of any such breach of a  representation,  warranty or
covenant  under the related  Mortgage Loan Purchase  Agreement,  the Initial  Seller or the Seller,  as applicable,
shall either cure such breach in all material  respects or, in the event such breach can not be cured,  the Initial
Seller or the Seller,  as  applicable,  shall  repurchase  the affected  Mortgage Loan or cause the removal of such
Mortgage Loan from the Trust Estate and  substitute  for it one or more  Qualified  Substituted  Mortgage  Loans in
accordance with Section 2.04 hereof.

         It is understood  and agreed that the  representations  and warranties  incorporated  in this Section 2.05
shall  survive  delivery  of the  Mortgage  Files to the  Indenture  Trustee  and shall inure to the benefit of the
Securityholders  notwithstanding any restrictive or qualified  endorsement or assignment.  Upon discovery by any of
the Depositor,  the Initial Seller,  the Seller, the Master Servicer or the Indenture Trustee of a breach of any of
the foregoing  representations  and warranties  which  materially  and adversely  affects the value of any Mortgage
Loan or the interests therein of the  Securityholders,  the party discovering such breach shall give prompt written
notice to the other parties,  and in no event later than two Business Days from the date of such  discovery.  It is
understood  and agreed  that the  obligations  of the  Initial  Seller and the Seller set forth in Section  2.04(a)
hereof to cure,  substitute  for or  repurchase  a related  Mortgage  Loan  pursuant to the related  Mortgage  Loan
Purchase  Agreement  constitute the sole remedies  available to the  Securityholders or to the Indenture Trustee on
their behalf respecting a breach of the representations and warranties incorporated in this Section 2.05.

         SECTION 2.06.  Representations and Warranties of the Depositor.

         The Depositor  represents and warrants to the Issuer, on behalf of the  Certificateholders,  the Indenture
Trustee on behalf of the Noteholders, the Securities Administrator and the Master Servicer as follows:

                 (i) this  agreement   constitutes  a  legal,  valid  and  binding  obligation  of  the  Depositor,
     enforceable  against the Depositor in accordance with its terms,  except as  enforceability  may be limited by
     applicable  bankruptcy,  insolvency,  reorganization,  moratorium  or other  similar  laws now or hereafter in
     effect  affecting the  enforcement  of creditors'  rights in general an except as such  enforceability  may be
     limited by general principles of equity (whether considered in a proceeding at law or in equity);

                 (ii)immediately  prior to the sale and  assignment by the  Depositor to the  Indenture  Trustee on
     behalf of the Issuer of each  Mortgage  Loan,  the Depositor  had good and  marketable  title to each Mortgage
     Loan (insofar as such title was conveyed to it by the Seller) subject to no prior lien,  claim,  participation
     interest, mortgage, security interest, pledge, charge or other encumbrance or other interest of any nature;

                 (iii)     as of the Closing Date, the Depositor has transferred  all right,  title and interest in
     the Mortgage Loans to the Issuer;

                 (iv)the  Depositor  has not  transferred  the  Mortgage  Loans to the  Issuer  with any  intent to
     hinder, delay or defraud any of its creditors;

                 (v) the  Depositor has been duly  incorporated  and is validly  existing as a corporation  in good
     standing  under the laws of Delaware,  with full  corporate  power and authority to own its assets and conduct
     its business as presently being conducted;

                 (vi)the  Depositor  is not in  violation  of its  certificate  of  incorporation  or by-laws or in
     default in the  performance  or  observance  of any  material  obligation,  agreement,  covenant or  condition
     contained in any contract,  indenture,  mortgage, loan agreement, note, lease or other instrument to which the
     Depositor  is a party or by which it or its  properties  may be  bound,  which  default  might  result  in any
     material adverse changes in the financial condition,  earnings,  affairs or business of the Depositor or which
     might materially and adversely affect the properties or assets, taken as a whole, of the Depositor;

                 (vii)     the execution,  delivery and  performance  of this  Agreement by the Depositor,  and the
     consummation  of the  transactions  contemplated  hereby,  do not and will not result in a material  breach or
     violation of any of the terms or provisions  of, or, to the knowledge of the  Depositor,  constitute a default
     under, any indenture,  mortgage,  deed of trust,  loan agreement or other agreement or instrument to which the
     Depositor  is a party or by which  the  Depositor  is bound or to which any of the  property  or assets of the
     Depositor is subject,  nor will such actions result in any violation of the  provisions of the  certificate of
     incorporation  or by-laws of the Depositor or, to the best of the Depositor's  knowledge  without  independent
     investigation,  any  statute or any order,  rule or  regulation  of any court or  governmental  agency or body
     having  jurisdiction  over the  Depositor  or any of its  properties  or assets  (except  for such  conflicts,
     breaches,  violations  and  defaults  as would  not have a  material  adverse  effect  on the  ability  of the
     Depositor to perform its obligations under this Agreement);

                 (viii)    to the best of the  Depositor's  knowledge  without any  independent  investigation,  no
     consent,  approval,  authorization,  order, registration or qualification of or with any court or governmental
     agency  or body of the  United  States or any other  jurisdiction  is  required  for the  consummation  by the
     Depositor  of  the   transactions   contemplated   by  this  Agreement,   except  such  consents,   approvals,
     authorizations,  registrations or  qualifications  as (a) have been previously  obtained or (b) the failure of
     which to  obtain  would  not have a  material  adverse  effect  on the  performance  by the  Depositor  of its
     obligations under, or the validity or enforceability of, this Agreement; and

                 (ix)there are no actions,  proceedings or  investigations  pending  before or, to the  Depositor's
     knowledge,  threatened  by any court,  administrative  agency or other  tribunal to which the  Depositor  is a
     party or of which any of its  properties is the subject:  (a) which if  determined  adversely to the Depositor
     would have a material  adverse  effect on the business,  results of  operations or financial  condition of the
     Depositor;  (b)  asserting  the  invalidity of this  Agreement or the  Securities;  (c) seeking to prevent the
     issuance of the Securities or the  consummation  by the Depositor of any of the  transactions  contemplated by
     this  Agreement,  as the case may be; or (d) which might  materially and adversely  affect the  performance by
     the Depositor of its obligations under, or the validity or enforceability of, this Agreement.

         SECTION 2.07.  Representations and Warranties of the Depositor with Respect to Security Interest in the
Mortgage Loans.  (a) With respect to the Mortgage Notes, the Depositor represents and warrants that:

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

                 (ii) The Mortgage Notes constitute "instruments" within the meaning of the applicable Uniform
     Commercial Code;

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

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

                 (v)  All original executed copies of each Mortgage Note have been or will be delivered to the
     Custodian, as set forth in this Agreement;

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

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

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

         (b)      The representations and warranties set forth in this Section 2.07 shall survive the Closing
Date and shall not be waived.

         SECTION 2.08.  Representations and Warranties of the Sellers.

         (a) The Initial Seller hereby  represents  and warrants to the Issuer on behalf of the  Certificateholders
and the Indenture  Trustee on behalf of the  Noteholders,  the  Securities  Administrator  and the Master  Servicer
that, as of the Closing Date or as of such date specifically provided herein:

                 (i) the Initial Seller is duly organized,  validly  existing and in good standing as a corporation
     under the laws of the State of Delaware  and is and will remain in  compliance  with the laws of each state in
     which any Mortgaged Property is located to the extent necessary to fulfill its obligations hereunder;

                 (ii)the  Initial  Seller has the power and  authority  to hold each  Mortgage  Loan,  to sell each
     Mortgage  Loan,  to  execute,  deliver  and  perform,  and to enter  into  and  consummate,  all  transactions
     contemplated  by this  Agreement.  The  Initial  Seller  has  duly  authorized  the  execution,  delivery  and
     performance of this  Agreement,  has duly executed and delivered this Agreement and this  Agreement,  assuming
     due  authorization,  execution  and  delivery by the other  parties  hereto,  constitutes  a legal,  valid and
     binding  obligation of the Initial Seller,  enforceable  against it in accordance with its terms except as the
     enforceability  thereof may be limited by bankruptcy,  insolvency or  reorganization  or other similar laws in
     relation to the rights of creditors generally;

                 (iii)     the execution and delivery of this Agreement by the Initial  Seller and the  performance
     of and  compliance  with the terms of this  Agreement  will not violate the Initial  Seller's  certificate  of
     incorporation  or by-laws or constitute a default  under or result in a material  breach or  acceleration  of,
     any material  contract,  agreement or other  instrument to which the Initial Seller is a party or which may be
     applicable to the Initial Seller or its assets;

                 (iv)the Initial  Seller is not in violation of, and the  execution and delivery of this  Agreement
     by the  Initial  Seller  and its  performance  and  compliance  with  the  terms  of this  Agreement  will not
     constitute  a violation  with respect to, any order or decree of any court or any order or  regulation  of any
     federal,  state,  municipal or governmental  agency having jurisdiction over the Initial Seller or its assets,
     which violation might have  consequences  that would materially and adversely affect the condition  (financial
     or  otherwise)  or the  operation of the Initial  Seller or its assets or might have  consequences  that would
     materially and adversely affect the performance of its obligations and duties hereunder;

                 (v) the Initial  Seller does not  believe,  nor does it have any reason or cause to believe,  that
     it cannot perform each and every one of its covenants contained in this Agreement;

                 (vi)the Initial Seller had good,  marketable and  indefeasible  title to the Mortgage Loans,  free
     and clear of any and all  liens,  pledges,  charges  or  security  interests  of any  nature  encumbering  the
     Mortgage Loans and upon the payment of the purchase  price under the TMFI Mortgage Loan Purchase  Agreement by
     the Seller,  the Seller acquired good and marketable title to the Mortgage Notes and Mortgage Loans,  free and
     clear of all liens or encumbrances;

                 (vii)     the  Mortgage  Loans  were not  transferred  by the  Initial  Seller  with any intent to
     hinder, delay or defraud any creditors of the Initial Seller;

                 (viii)    there are no actions or proceedings  against,  or investigations  known to it before any
     court,  administrative  or other  tribunal  (A) that might  prohibit  its entering  into this  Agreement,  (B)
     seeking to  prevent  the sale of the  Mortgage  Loans to the Seller or the  consummation  of the  transactions
     contemplated  by this Agreement or (C) that might prohibit or materially and adversely  affect the performance
     by the Initial Seller of its obligations under, or validity or enforceability of, this Agreement;

                 (ix)no consent,  approval,  authorization or order of any court or governmental  agency or body is
     required for the  execution,  delivery and  performance by the Initial Seller of, or compliance by the Initial
     Seller with, this Agreement or the  consummation of the  transactions  contemplated by this Agreement,  except
     for such consents, approvals, authorizations or orders, if any, that have been obtained; and

                 (x) the  consummation  of the  transactions  contemplated  by this  Agreement  are in the ordinary
     course of business of the Initial  Seller,  and the transfer,  assignment and conveyance of the Mortgage Notes
     and the Mortgages by the Initial  Seller to the Seller  pursuant to the TMFI Mortgage Loan Purchase  Agreement
     are not subject to the bulk transfer or any similar statutory provisions.

         (b) The Seller  hereby  represents  and  warrants to the Issuer on behalf of the  Certificateholders,  the
Indenture  Trustee on behalf of the Noteholders,  the Securities  Administrator and the Master Servicer that, as of
the Closing Date or as of such date specifically provided herein:

                 (i) the Seller is duly  organized,  validly  existing and in good standing as a corporation  under
     the laws of the State of Delaware  and is and will remain in  compliance  with the laws of each state in which
     any Mortgaged Property is located to the extent necessary to fulfill its obligations hereunder;

                 (ii)the Seller has the power and  authority  to hold each  Mortgage  Loan,  to sell each  Mortgage
     Loan, to execute,  deliver and perform,  and to enter into and consummate,  all  transactions  contemplated by
     this  Agreement.  The Seller has duly  authorized the execution,  delivery and  performance of this Agreement,
     has duly executed and delivered this Agreement and this Agreement,  assuming due authorization,  execution and
     delivery  by the other  parties  hereto,  constitutes  a legal,  valid and binding  obligation  of the Seller,
     enforceable  against it in accordance  with its terms except as the  enforceability  thereof may be limited by
     bankruptcy,  insolvency  or  reorganization  or other  similar  laws in  relation  to the rights of  creditors
     generally;

                 (iii)     the execution and delivery of this  Agreement by the Seller and the  performance  of and
     compliance  with the terms of this Agreement will not violate the Seller's  certificate  of  incorporation  or
     by-laws  or  constitute  a default  under or result in a material  breach or  acceleration  of,  any  material
     contract,  agreement  or other  instrument  to which the Seller is a party or which may be  applicable  to the
     Seller or its assets;

                 (iv)the Seller is not in violation  of, and the  execution  and delivery of this  Agreement by the
     Seller and its  performance  and  compliance  with the terms of this Agreement will not constitute a violation
     with  respect  to,  any  order or  decree  of any court or any  order or  regulation  of any  federal,  state,
     municipal or  governmental  agency having  jurisdiction  over the Seller or its assets,  which violation might
     have  consequences  that would materially and adversely  affect the condition  (financial or otherwise) or the
     operation of the Seller or its assets or might have  consequences  that would  materially and adversely affect
     the performance of its obligations and duties hereunder;

                 (v) the Seller 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;

                 (vi)the Seller had good,  marketable and indefeasible  title to the Mortgage Loans, free and clear
     of any and all liens,  pledges,  charges or security  interests of any nature  encumbering  the Mortgage Loans
     and upon the payment of the purchase  price under the SAMI Mortgage Loan Purchase  Agreement by the Depositor,
     the Depositor will have acquired good and  marketable  title to the Mortgage  Notes and Mortgage  Loans,  free
     and clear of all liens or encumbrances;

                 (vii)     the Mortgage  Loans were not being  transferred by the Seller with any intent to hinder,
     delay or defraud any creditors of the Seller;

                 (viii)    there are no actions or proceedings  against,  or investigations  known to it before any
     court,  administrative  or other  tribunal  (A) that might  prohibit  its entering  into this  Agreement,  (B)
     seeking to prevent the sale of the Mortgage  Loans to the Depositor or the  consummation  of the  transactions
     contemplated  by this Agreement or (C) that might prohibit or materially and adversely  affect the performance
     by the Seller of its obligations under, or validity or enforceability of, this Agreement;

                 (ix)no consent,  approval,  authorization or order of any court or governmental  agency or body is
     required for the  execution,  delivery and  performance  by the Seller of, or  compliance  by the Seller with,
     this  Agreement or the  consummation  of the  transactions  contemplated  by this  Agreement,  except for such
     consents, approvals, authorizations or orders, if any, that have been obtained; and

                 (x) the  consummation  of the  transactions  contemplated  by this  Agreement  are in the ordinary
     course of business of the Seller,  and the transfer,  assignment  and conveyance of the Mortgage Notes and the
     Mortgages  by the Seller to the  Depositor  pursuant to the SAMI  Mortgage  Loan  Purchase  Agreement  are not
     subject to the bulk transfer or any similar statutory provisions.

         The representations and warranties of the Initial Seller and the Seller set forth in this Section 2.08
shall survive the Closing Date and shall not be waived.

         SECTION 2.09.  Covenants of the Sellers.

         The Initial Seller and the Seller each hereby covenants that, except for the transfer  contemplated  under
the related  Mortgage  Loan Purchase  Agreement  and the security  interest  granted  thereunder to the  respective
purchaser in the event that the respective  transfer is not deemed to be a sale, it will not sell,  pledge,  assign
or  transfer to any other  Person,  or grant,  create,  incur,  assume or suffer to exist any lien on any  Mortgage
Loan, or any interest  therein;  it will notify the Issuer,  the Indenture  Trustee and the Master  Servicer of the
existence  of any lien on any Mortgage  Loan  immediately  upon  discovery  thereof,  and it will defend the right,
title and  interest  of the  Issuer,  in, to and under the  Mortgage  Loans,  against  all claims of third  parties
claiming  through or under it; provided,  however,  that nothing in this Section 2.09 shall prevent or be deemed to
prohibit  either the Initial  Seller or the Seller from suffering to exist upon any of the Mortgage Loans any liens
for municipal or other local taxes and other governmental  charges if such taxes or governmental  charges shall not
at the time be due and  payable  or if the  Initial  Seller  or the  Seller,  as  applicable,  shall  currently  be
contesting  the validity  thereof in good faith by  appropriate  proceedings  and shall have set aside on its books
adequate reserves with respect thereto.

                                                    ARTICLE III

                                           ADMINISTRATION AND SERVICING
                                               OF THE MORTGAGE LOANS

         SECTION 3.01.  Master Servicer to Service and Administer the Mortgage Loans.

         The Master  Servicer shall  supervise,  monitor and oversee the obligation of the Servicers to service and
administer  their  respective  Mortgage Loans in accordance  with the terms of the applicable  Servicing  Agreement
and, where applicable,  the  Correspondent  Sellers Guide and the Master Servicing Guide, and shall have full power
and  authority to do any and all things which it may deem  necessary  or desirable in  connection  with such master
servicing and administration.  In performing its obligations  hereunder,  the Master Servicer shall act in a manner
consistent  with  Accepted  Master  Servicing  Practices  and,  where  applicable,   the  Master  Servicing  Guide.
Furthermore,  the Master  Servicer shall oversee and consult with each Servicer as necessary from  time-to-time  to
carry  out  the  Master  Servicer's  obligations  hereunder,  shall  receive,  review  and  evaluate  all  reports,
information  and other data  provided to the Master  Servicer  by each  Servicer  and shall cause each  Servicer to
perform and observe the  covenants,  obligations  and conditions to be performed or observed by such Servicer under
the  applicable  Servicing  Agreement.  The  Master  Servicer  shall  independently  and  separately  monitor  each
Servicer's  servicing  activities  with  respect to each  related  Mortgage  Loan,  reconcile  the  results of such
monitoring with such  information  provided in the previous  sentence on a monthly basis and coordinate  corrective
adjustments  to the  Servicers'  and the Master  Servicer's  records,  and based on such  reconciled  and corrected
information,  provide  information  to the  Securities  Administrator  to permit the  Securities  Administrator  to
prepare the  statements  specified in Section 5.04 and any other  information  and statements  required  hereunder.
The Master  Servicer shall  reconcile the results of its Mortgage Loan  monitoring  with the actual  remittances of
the Servicers to the related Servicing Accounts pursuant to the applicable Servicing Agreements.

         The Indenture  Trustee shall  furnish the  Servicers  and the Master  Servicer with any limited  powers of
attorney and other  documents in form acceptable to the Indenture  Trustee,  necessary or appropriate to enable the
Servicers and the Master  Servicer to service and  administer the related  Mortgage  Loans and REO Property,  which
limited  powers of  attorney  shall  provide  that the  Indenture  Trustee  will not be liable  for the  actions or
omissions of the Servicers or Master Servicer in exercising such powers.

         The Master  Servicer  shall not without  either the Issuer's or the Indenture  Trustee's,  as  applicable,
written consent (i) initiate any action,  suit or proceeding solely under the Issuer's or Indenture  Trustee's name
without  indicating  the Master  Servicer's  representative  capacity  or (ii) take any  action  with the intent to
cause,  and which  actually  does cause,  the Indenture  Trustee to be registered to do business in any state.  The
Master  Servicer  shall  indemnify  the Issuer and the  Indenture  Trustee for any and all costs,  liabilities  and
expenses  incurred by them in  connection  with the  negligent or willful  misuse of such powers of attorney by the
Master Servicer.

         The  Indenture  Trustee  shall  provide  access to the  records and  documentation  in  possession  of the
Indenture Trustee (including in its capacity as Custodian  hereunder)  regarding the related Mortgage Loans and REO
Property and the servicing thereof to the  Securityholders,  the FDIC, and the supervisory  agents and examiners of
the FDIC,  such access being afforded only upon  reasonable  prior written request and during normal business hours
at the office of the Indenture Trustee;  provided,  however,  that, unless otherwise required by law, the Indenture
Trustee shall not be required to provide access to such records and  documentation  if the provision  thereof would
violate the legal right to privacy of any  Mortgagor.  The  Indenture  Trustee shall allow  representatives  of the
above entities to photocopy any of the records and  documentation  and shall provide  equipment for that purpose at
a charge that covers the Indenture Trustee's actual costs.

         The Indenture Trustee,  upon the written request of the Master Servicer,  shall execute and deliver to the
related  Servicer and the Master  Servicer any court  pleadings,  requests for  trustee's  sale or other  documents
necessary or desirable to (i) the  foreclosure  or trustee's  sale with respect to a Mortgaged  Property;  (ii) any
legal action  brought to obtain  judgment  against any Mortgagor on the Mortgage  Note or Mortgage;  (iii) obtain a
deficiency  judgment against the Mortgagor;  or (iv) enforce any other rights or remedies  provided by the Mortgage
Note or Mortgage or otherwise available at law or equity.

         SECTION 3.02.  [Reserved].

         SECTION 3.03.  Monitoring of Servicers.

         (a)  The Master  Servicer  shall be responsible  for reporting to the Indenture  Trustee (on behalf of the
Issuer) and the Depositor the  compliance by each Servicer with its duties under the related  Servicing  Agreement.
In the review of each  Servicer's  activities,  the Master  Servicer may rely upon an officer's  certificate of the
Servicer with regard to such  Servicer's  compliance with the terms of its Servicing  Agreement.  In the event that
the Master  Servicer,  in its judgment,  determines  that a Servicer  should be  terminated in accordance  with its
Servicing  Agreement,  or that a notice should be sent  pursuant to such  Servicing  Agreement  with respect to the
occurrence of an event that,  unless cured,  would  constitute  grounds for such  termination,  the Master Servicer
shall notify the Depositor and the Indenture  Trustee  thereof and the Master  Servicer  shall issue such notice of
termination or take such other action as it deems appropriate;  provided,  however,  if the defaulting  Servicer is
WFB, upon receipt by a Responsible  Officer of the Indenture  Trustee of written notice from the Master Servicer or
other  Person of an event of default  that,  unless  cured,  would  constitute  grounds for such  termination,  the
Indenture  Trustee in  consultation  with the Depositor  shall issue such notice of  termination or take such other
action as it deems  appropriate.  For  avoidance  of doubt,  nothing  herein  shall  impose  an  obligation  on the
Indenture Trustee to monitor the performance of WFB as Servicer.

         (b)  The Master Servicer,  for the benefit of the Issuer and the  Securityholders,  shall (acting as agent
of the Issuer when  enforcing the Issuer's  rights under each Servicing  Agreement) (i) enforce the  obligations of
each Servicer  under the related  Servicing  Agreement,  and (ii) in the event that a Servicer fails to perform its
obligations in accordance with the related Servicing Agreement,  subject to the preceding paragraph,  terminate the
rights and  obligations  of such  Servicer  thereunder  and for  Servicer's  other than WFB, act as servicer of the
related  Mortgage Loans or enter into a new Servicing  Agreement with a successor  Servicer  selected by the Master
Servicer which the Master Servicer shall cause the Indenture  Trustee to acknowledge;  provided,  however,  that if
the Servicer  subject to such  termination  is WFB, the Master  Servicer  shall  immediately  notify the  Indenture
Trustee in writing of: (A) WFB's failure to perform and (B) the nature and  description  of such failure  including
whether such failure  constitutes  grounds for termination,  and upon receipt of such notice the Indenture Trustee,
subject to the preceding  paragraph,  may (A) terminate the rights and  obligations  of such Servicer and (B) enter
into a new servicing  agreement with a successor servicer selected by it; provided,  further,  it is understood and
acknowledged  by the parties  hereto that there will be a period of  transition  (not to exceed 90 days) before the
actual  servicing  functions can be fully  transferred to such successor  Servicer.  Such  enforcement,  including,
without limitation,  the legal prosecution of claims,  termination of Servicing Agreements and the pursuit of other
appropriate  remedies,  shall be in such  form and  carried  out to such an extent  and at such time as the  Master
Servicer,  in its good faith  business  judgment,  would require were it the owner of the related  Mortgage  Loans.
The Master  Servicer  shall pay the costs of such  enforcement  at its own expense  except as provided in paragraph
(c) below,  provided that the Master  Servicer shall not be required to prosecute or defend any legal action except
to the extent that the Master  Servicer  shall have  received  reasonable  indemnity  for its costs and expenses in
pursuing  such  action.  Any  costs  and  expenses  incurred  by the  Indenture  Trustee  in  connection  with  its
performance  of its  obligations  under this Section  3.03, if not  reimbursed  by WFB,  shall be reimbursed to the
Indenture Trustee by the Trust Fund.

         (c)  To the extent that the costs and  expenses of the Master  Servicer  related to any  termination  of a
Servicer,  appointment of a successor  Servicer or the transfer and assumption of servicing by the Master  Servicer
with respect to any Servicing Agreement  (including,  without limitation,  (i) all legal costs and expenses and all
due diligence costs and expenses  associated  with an evaluation of the potential  termination of the Servicer as a
result of an event of  default  by such  Servicer  and (ii) all costs and  expenses  associated  with the  complete
transfer of servicing,  including all servicing  files and all  servicing  data and the  completion,  correction or
manipulation  of such  servicing  data as may be  required  by the  successor  servicer  to  correct  any errors or
insufficiencies  in the servicing data or otherwise to enable the successor  servicer to service the Mortgage Loans
in  accordance  with the  related  Servicing  Agreement)  are not fully and  timely  reimbursed  by the  terminated
Servicer,  the Master  Servicer shall be entitled to  reimbursement  of such costs and expenses from the Collection
Account.

         (d)  The Master  Servicer  shall  require each  Servicer to comply with the  remittance  requirements  and
other obligations set forth in the related Servicing Agreement.

         (e)  If the Master Servicer acts as a Servicer,  it will not assume liability for the  representations and
warranties of the Servicer, if any, that it replaces.

         (f)  With respect to Additional  Collateral  Mortgage  Loans,  the Master  Servicer  shall have no duty or
obligation to supervise,  monitor or oversee the  activities of each Servicer  under its Servicing  Agreement  with
respect to  Additional  Collateral,  except (a) with respect to any  instances  where a Servicer,  in the course of
fulfilling its obligations  under the related  Servicing  Agreement  seeks  directions,  instructions,  consents or
waivers from the Master Servicer with respect to any item of Additional  Collateral,  or (b) upon the occurrence of
the  following  events (i) in the case of a final  liquidation  of any  Mortgaged  Property  secured by  Additional
Collateral,  the Master  Servicer  shall  enforce  the  obligation  of the  Servicer  under the  related  Servicing
Agreement to liquidate such Additional  Collateral as required by such Servicing Agreement,  and (ii) if the Master
Servicer  assumes the  obligations  of such Servicer as successor  Servicer under the related  Servicing  Agreement
pursuant to this Section 3.03, as successor  Servicer,  it shall be bound to service and  administer the Additional
Collateral in accordance with the provisions of such Servicing Agreement.

         (g)  If a Servicing  Agreement  requires  the  approval of the Master  Servicer  for a  modification  to a
Mortgage  Loan,  the Master  Servicer  shall  approve  such  modification  if,  based  upon its  receipt of written
notification  from the  related  Servicer  outlining  the terms of such  modification  and  appropriate  supporting
documentation,  the Master Servicer  determines  that the  modification is permitted under the terms of the related
Servicing  Agreement and that any conditions to such  modification  set forth in related  Servicing  Agreement have
been satisfied.

         (h)  If a Servicing  Agreement  requires the oversight and  monitoring  of loss  mitigation  measures with
respect to the related Mortgage Loans,  the Master Servicer will monitor any loss mitigation  procedure or recovery
action related to a defaulted  Mortgage Loan (to the extent it receives  notice of such from the related  Servicer)
and confirm that such loss  mitigation  procedure  or recovery  action is  initiated,  conducted  and  concluded in
accordance with any timeframes and any other  requirements set forth in the related  Servicing  Agreement,  and the
Master  Servicer  shall notify the  Depositor in any case in which the Master  Servicer  believes  that the related
Servicer is not complying with such timeframes and/or other requirements.

         SECTION 3.04.  Fidelity Bond.

         The Master  Servicer,  at its expense,  shall maintain in effect a blanket fidelity bond and an errors and
omissions  insurance  policy,  affording  coverage  with respect to all  directors,  officers,  employees and other
Persons  acting on such Master  Servicer's  behalf,  and covering  errors and omissions in the  performance  of the
Master  Servicer's  obligations  hereunder.  The errors and omissions  insurance policy and the fidelity bond shall
be in such form and amount generally acceptable for entities serving as master servicers or trustees.

         SECTION 3.05.  Power to Act; Procedures.

         The Master  Servicer  shall master  service the Mortgage  Loans and shall have full power and authority to
do any and all  things  that it may deem  necessary  or  desirable  in  connection  with the master  servicing  and
administration  of the Mortgage  Loans,  including  but not limited to the power and  authority  (i) to execute and
deliver,  on behalf of the  Securityholders,  the Issuer and the Indenture  Trustee,  customary consents or waivers
and other  instruments  and documents,  (ii) to  consent to transfers of any Mortgaged  Property and assumptions of
the  Mortgage  Notes and related  Mortgages,  (iii) to collect any  Insurance  Proceeds,  Liquidation  Proceeds and
Subsequent  Recoveries and (iv) to effectuate,  in its own name, on behalf of the Issuer or the Indenture  Trustee,
as  applicable,  or in the name of the  Issuer  or the  Indenture  Trustee,  as  applicable,  foreclosure  or other
conversion  of the  ownership of the  Mortgaged  Property  securing any Mortgage  Loan, in each case, in accordance
with the provisions of this Agreement and the related  Servicing  Agreement,  as applicable.  The Indenture Trustee
shall  furnish the Master  Servicer,  upon written  request from a Servicing  Officer,  with any limited  powers of
attorney  empowering  the Master  Servicer or any Servicer to execute and deliver  instruments of  satisfaction  or
cancellation,  or of partial or full release or discharge,  and to foreclose upon or otherwise  liquidate Mortgaged
Property,  and to appeal,  prosecute or defend in any court action  relating to the Mortgage Loans or the Mortgaged
Property,  in accordance  with the applicable  Servicing  Agreement and this Agreement,  and the Indenture  Trustee
shall execute and deliver such other documents,  as the Master Servicer may request,  to enable the Master Servicer
to  master  service  and  administer  the  Mortgage  Loans  and carry  out its  duties  hereunder,  in each case in
accordance with Accepted Master Servicing  Practices (and the Indenture  Trustee shall have no liability for misuse
of any such powers of attorney by the Master  Servicer or any  Servicer).  In instituting  foreclosures  or similar
proceedings,  the Master Servicer shall institute such  proceedings  either in its own name on behalf of the Issuer
or the  Indenture  Trustee or in the name of the Issuer or the  Indenture  Trustee (or cause the related  Servicer,
pursuant to the related Servicing  Agreement,  to institute such proceedings either in the name of such Servicer on
behalf of the  Issuer or the  Indenture  Trustee  or in the name of the Issuer or the  Indenture  Trustee),  unless
otherwise  required by law or  otherwise  appropriate.  If the Master  Servicer or the  Indenture  Trustee has been
advised that it is likely that the laws of the state in which action is to be taken  prohibit  such action if taken
in the name of the Issuer or the Indenture  Trustee on its behalf or that the Issuer or the Indenture  Trustee,  as
applicable,  would be  adversely  affected  under the "doing  business" or tax laws of such state if such action is
taken in its name,  the Master  Servicer  shall join with the Indenture  Trustee,  on behalf of the Issuer,  in the
appointment  of a  co-trustee  pursuant  to  Section  6.10  of the  Indenture.  In the  performance  of its  duties
hereunder,  the Master  Servicer shall be an independent  contractor and shall not, except in those instances where
it is taking action in the name of the  Indenture  Trustee,  be deemed to be the agent of the Indenture  Trustee on
behalf of the Issuer.

         SECTION 3.06.  Due-on-Sale Clauses; Assumption Agreements.

         To the extent  provided in the  applicable  Servicing  Agreement and to the extent  Mortgage Loans contain
enforceable  due-on-sale  clauses,  the Master  Servicer  shall  cause the  Servicers  to enforce  such  clauses in
accordance with the applicable  Servicing  Agreement.  If applicable law prohibits the enforcement of a due-on-sale
clause or such clause is otherwise not enforced in accordance with the applicable  Servicing  Agreement,  and, as a
consequence,  a Mortgage Loan is assumed,  the original Mortgagor may be released from liability in accordance with
the applicable Servicing Agreement.

         SECTION 3.07.  Release of Mortgage Files.

         (a)  Upon  becoming  aware of the payment in full of any Mortgage  Loan, or the receipt by any Servicer of
a  notification  that  payment in full has been  escrowed in a manner  customary  for such  purposes for payment to
Securityholders  on the next  Payment  Date,  the  Servicer  will,  if  required  under  the  applicable  Servicing
Agreement,  promptly furnish to the Custodian,  on behalf of the Indenture  Trustee,  two copies of a certification
substantially in the form of Exhibit F hereto signed by a Servicing Officer or in a mutually  agreeable  electronic
format which will, in lieu of a signature on its face,  originate  from a Servicing  Officer  (which  certification
shall  include a statement  to the effect  that all  amounts  received in  connection  with such  payment  that are
required to be deposited  in the related  Servicing  Account  maintained  by the  applicable  Servicer  pursuant to
Section 4.01 or by the applicable  Servicer pursuant to its Servicing  Agreement have been or will be so deposited)
and shall request that the Indenture  Trustee (or the  Custodian,  on behalf of the Indenture  Trustee)  deliver to
the applicable  Servicer the related Mortgage File. Upon receipt of such  certification and request,  the Indenture
Trustee (or the Custodian,  on behalf of the Indenture  Trustee),  shall promptly release the related Mortgage File
to the  applicable  Servicer and the Indenture  Trustee (and the Custodian,  if  applicable)  shall have no further
responsibility  with regard to such Mortgage File. Upon any such payment in full,  each Servicer is authorized,  to
give, as agent for the Indenture  Trustee,  as the mortgagee  under the Mortgage that secured the Mortgage Loan, an
instrument of satisfaction (or assignment of mortgage without  recourse)  regarding the Mortgaged  Property subject
to the Mortgage,  which  instrument of  satisfaction  or assignment,  as the case may be, shall be delivered to the
Person or Persons entitled  thereto against receipt  therefor of such payment,  it being understood and agreed that
no expenses  incurred in connection with such  instrument of satisfaction or assignment,  as the case may be, shall
be chargeable to the related Servicing Account.

         (b)  From time to time and as  appropriate  for the servicing or  foreclosure  of any Mortgage Loan and in
accordance with the applicable  Servicing  Agreement,  the Indenture  Trustee shall execute such documents as shall
be prepared  and  furnished  to the  Indenture  Trustee by a Servicer or the Master  Servicer  (in form  reasonably
acceptable  to the  Indenture  Trustee)  and as are  necessary  to the  prosecution  of any such  proceedings.  The
Indenture  Trustee (or the Custodian,  on behalf of the Indenture  Trustee),  shall, upon the request of a Servicer
or the  Master  Servicer,  and  delivery  to the  Indenture  Trustee  (the  Custodian,  on behalf of the  Indenture
Trustee),  of two copies of a Request  For  Release  signed by a  Servicing  Officer  substantially  in the form of
Exhibit F (or in a mutually agreeable  electronic format which will, in lieu of a signature on its face,  originate
from a Servicing  Officer),  release the related Mortgage File held in its possession or control to the Servicer or
the Master  Servicer,  as  applicable.  Such trust  receipt shall  obligate the Servicer or the Master  Servicer to
return the Mortgage  File to the Indenture  Trustee (or the Custodian on behalf of the Indenture  Trustee) when the
need  therefor  by the  Servicer  or the  Master  Servicer  no longer  exists  unless  the  Mortgage  Loan shall be
liquidated,  in which case,  upon  receipt of a  certificate  of a Servicing  Officer  similar to that  hereinabove
specified,  the  Mortgage  File shall be  released by the  Indenture  Trustee  (or the  Custodian  on behalf of the
Indenture Trustee), to the Servicer or the Master Servicer.

         SECTION  3.08.  Documents,  Records and Funds in  Possession  of Master  Servicer To Be Held for Indenture
                         Trustee.

         (a)  The Master  Servicer  shall  transmit  and each  Servicer  (to the  extent  required  by the  related
Servicing  Agreement) shall transmit to the Indenture Trustee (or Custodian) such documents and instruments  coming
into the  possession  of the  Master  Servicer  or such  Servicer  from time to time as are  required  by the terms
hereof,  or in the case of the Servicers,  the  applicable  Servicing  Agreement,  to be delivered to the Indenture
Trustee  (or  Custodian).  Any funds  received by the Master  Servicer or by a Servicer in respect of any  Mortgage
Loan or which  otherwise are collected by the Master Servicer or by a Servicer as Liquidation  Proceeds,  Insurance
Proceeds or  Subsequent  Recoveries  in respect of any Mortgage Loan shall be held for the benefit of the Indenture
Trustee and the  Securityholders  subject to the Master  Servicer's right to retain or withdraw from the Collection
Account the Master  Servicing  Fee, any  additional  compensation  pursuant to Section  3.14 and any other  amounts
provided in this  Agreement,  and to the right of each  Servicer to retain its  Servicing Fee and any other amounts
as provided in the applicable  Servicing  Agreement.  The Master Servicer  shall,  and shall cause each Servicer to
(to the extent provided in the applicable  Servicing  Agreement),  provide access to information and  documentation
regarding the Mortgage  Loans to the Indenture  Trustee,  its agents and  accountants  at any time upon  reasonable
request and during normal business hours, and to Securityholders  that are savings and loan associations,  banks or
insurance  companies,  the Office of Thrift Supervision,  the FDIC and the supervisory agents and examiners of such
Office and Corporation or examiners of any other federal or state banking or insurance  regulatory  authority if so
required by applicable  regulations of the Office of Thrift Supervision or other regulatory authority,  such access
to be afforded  without charge but only upon reasonable  request in writing and during normal business hours at the
offices of the Master  Servicer  designated by it. In fulfilling  such a request the Master  Servicer  shall not be
responsible for determining the sufficiency of such information.

         (b)  All Mortgage Files and funds collected or held by, or under the control of, the Master  Servicer,  in
respect of any Mortgage Loans,  whether from the collection of principal and interest  payments or from Liquidation
Proceeds,  Insurance Proceeds or Subsequent  Recoveries,  shall be held by the Master Servicer for and on behalf of
the  Indenture  Trustee  and the  Securityholders  and shall be and remain the sole and  exclusive  property of the
Issuer;  provided,  however,  that the Master Servicer and each Servicer shall be entitled to setoff  against,  and
deduct from,  any such funds any amounts that are properly due and payable to the Master  Servicer or such Servicer
under this Agreement or the applicable Servicing Agreement.

         SECTION 3.09.  Standard Hazard Insurance and Flood Insurance Policies.

         (a)  For each  Mortgage  Loan (other than a  Cooperative  Loan),  the Master  Servicer  shall  enforce any
obligation of the Servicers under the related Servicing  Agreements to maintain or cause to be maintained  standard
fire and casualty  insurance and, where applicable,  flood insurance,  all in accordance with the provisions of the
related  Servicing  Agreements.  It is understood and agreed that such insurance shall be with insurers meeting the
eligibility  requirements  set  forth  in the  applicable  Servicing  Agreement  and  that no  earthquake  or other
additional  insurance is to be required of any Mortgagor or to be  maintained on property  acquired in respect of a
defaulted  loan,  other than pursuant to such  applicable laws and regulations as shall at any time be in force and
as shall require such additional insurance.

         (b)  Pursuant to Section 4.01 and 4.02,  any amounts  collected by the  Servicers or the Master  Servicer,
or by any Servicer,  under any insurance  policies  (other than amounts to be applied to the  restoration or repair
of the Mortgaged  Property or released to the  Mortgagor in accordance  with the  applicable  Servicing  Agreement)
shall be deposited  into the  Collection  Account,  subject to  withdrawal  pursuant to Section 4.02 and 4.03.  Any
cost incurred by the Master  Servicer or any Servicer in maintaining  any such insurance if the Mortgagor  defaults
in its  obligation  to do so shall be added to the  amount  owing  under the  Mortgage  Loan where the terms of the
Mortgage  Loan so permit;  provided,  however,  that the  addition of any such cost shall not be taken into account
for purposes of  calculating  the payments to be made to  Securityholders  and shall be  recoverable  by the Master
Servicer or such Servicer pursuant to Section 4.02 and 4.03.

         SECTION 3.10.  Presentment of Claims and Collection of Proceeds.

         The Master  Servicer  shall (to the extent  provided  in the  applicable  Servicing  Agreement)  cause the
related  Servicer to, prepare and present on behalf of the Indenture  Trustee,  the Issuer and the  Securityholders
all claims under the Insurance  Policies and take such actions (including the negotiation,  settlement,  compromise
or  enforcement  of the  insured's  claim) as shall be  necessary  to realize  recovery  under such  policies.  Any
proceeds  disbursed  to the Master  Servicer (or  disbursed  to a Servicer and remitted to the Master  Servicer) in
respect of such policies,  bonds or contracts shall be promptly  deposited in the Collection  Account upon receipt,
except that any  amounts  realized  that are to be applied to the repair or  restoration  of the related  Mortgaged
Property as a condition  precedent to the  presentation of claims on the related Mortgage Loan to the insurer under
any applicable Insurance Policy need not be so deposited (or remitted).

         SECTION 3.11.  Maintenance of the Primary Insurance Policies.

         (a)  The Master  Servicer  shall not take, or permit any Servicer (to the extent such action is prohibited
under the  applicable  Servicing  Agreement)  to take,  any  action  that  would  result in  noncoverage  under any
applicable  Primary  Insurance  Policy of any loss which,  but for the actions of such Master Servicer or Servicer,
would  have been  covered  thereunder.  The Master  Servicer  shall use its best  reasonable  efforts to cause each
Servicer  (to the  extent  required  under the  related  Servicing  Agreement)  to keep in force and effect (to the
extent that the Mortgage  Loan  requires the  Mortgagor to maintain such  insurance),  a Primary  Insurance  Policy
applicable to each Mortgage Loan  (including  any  lender-paid  Primary  Insurance  Policy) in accordance  with the
provisions of this Agreement and the related  Servicing  Agreement,  as applicable.  The Master Servicer shall not,
and shall not permit any Servicer (to the extent  required  under the related  Servicing  Agreement)  to, cancel or
refuse to renew any such  Primary  Insurance  Policy that is in effect at the date of the  initial  issuance of the
Mortgage  Note and is required to be kept in force  hereunder  except in  accordance  with the  provisions  of this
Agreement and the related Servicing Agreement, as applicable.

         (b)  The  Master  Servicer  agrees to cause  each  Servicer  (to the  extent  required  under the  related
Servicing  Agreement) to present, on behalf of the Indenture Trustee,  the Issuer and the  Securityholders,  claims
to the insurer under any Primary  Insurance  Policies and, in this regard,  to take such reasonable action as shall
be  necessary  to permit  recovery  under any Primary  Insurance  Policies  respecting  defaulted  Mortgage  Loans.
Pursuant to Section  4.01 and 4.02,  any amounts  collected by the Servicer  under any Primary  Insurance  Policies
shall be deposited in the Collection Account, subject to withdrawal pursuant to Section 4.03.

         SECTION 3.12.  Indenture Trustee to Retain Possession of Certain Insurance Policies and Documents.

         The Indenture Trustee (or the Custodian,  as directed by the Indenture  Trustee),  shall retain possession
and custody of the  originals  (to the extent  available  and  delivered)  of any Primary  Insurance  Policies,  or
certificate of insurance if applicable and available,  and any  certificates  of renewal as to the foregoing as may
be issued  from time to time as  contemplated  by this  Agreement  and which  come into its  possession.  Until all
amounts  distributable in respect of the Notes have been distributed in full and the Master Servicer  otherwise has
fulfilled its obligations  under this Agreement,  the Indenture  Trustee (or its Custodian,  if any, as directed by
the Indenture  Trustee)  shall also retain  possession  and custody of each  Mortgage  File in accordance  with and
subject to the terms and conditions of this Agreement.  The Master  Servicer shall promptly  deliver or cause to be
delivered to the Indenture  Trustee (or the Custodian,  as directed by the Indenture  Trustee),  upon the execution
or receipt thereof the originals of any Primary  Insurance  Policies,  any certificates of renewal,  and such other
documents or  instruments  that  constitute  portions of the  Mortgage  File that come into the  possession  of the
Master Servicer from time to time.

         SECTION 3.13.  Realization Upon Defaulted Mortgage Loans.

         The Master  Servicer  shall  cause each  Servicer  (to the extent  required  under the  related  Servicing
Agreement) to foreclose  upon,  repossess or otherwise  comparably  convert the  ownership of Mortgaged  Properties
securing  such of the  Mortgage  Loans as come  into  and  continue  in  default  and as to  which no  satisfactory
arrangements  can be made for collection of delinquent  payments,  all in accordance with the applicable  Servicing
Agreement.

         SECTION 3.14.  Additional Compensation to the Master Servicer.

         Pursuant  to  Section  4.02(c),  certain  income and gain  realized  from any  investment  of funds in the
Collection  Account  shall  be for the  benefit  of the  Master  Servicer  as  additional  compensation.  Servicing
compensation  in the form of  assumption  fees, if any, late payment  charges,  as collected,  if any, or otherwise
(but,  unless  otherwise  specifically  permitted in a Servicing  Agreement,  not including any Prepayment  Penalty
Amounts) shall be retained by the applicable  Servicer,  or the Master Servicer,  and shall not be deposited in the
related  Servicing  Account or  Collection  Account.  The Master  Servicer  shall be required  to pay all  expenses
incurred by it in connection  with its  activities  hereunder and shall not be entitled to  reimbursement  therefor
except as  provided  in this  Agreement.  The  amount of the  aggregate  compensation  payable as set forth in this
Section  3.14 plus the Master  Servicing  Fee due to the Master  Servicer in respect of any  Payment  Date shall be
reduced in accordance with Section 5.06.

         SECTION 3.15.  REO Property.

         (a)  In the event the Issuer  (or the  Indenture  Trustee on its  behalf)  acquires  ownership  of any REO
Property in respect of any related  Mortgage  Loan,  the deed or certificate of sale shall be issued to the Issuer,
or if required under  applicable law, to the Indenture  Trustee,  or to its nominee,  on behalf of the Issuer.  The
Master  Servicer  shall,  to the extent  provided  in the  applicable  Servicing  Agreement,  cause the  applicable
Servicer to sell,  any REO Property as  expeditiously  as possible and in  accordance  with the  provisions of this
Agreement and the related Servicing  Agreement,  as applicable.  Pursuant to its efforts to sell such REO Property,
the Master  Servicer shall cause the applicable  Servicer to protect and conserve,  such REO Property in the manner
and to the extent required by the applicable Servicing Agreement.

         (b)  The Master  Servicer  shall, to the extent  required by the related  Servicing  Agreement,  cause the
applicable  Servicer to deposit all funds  collected  and  received in  connection  with the  operation  of any REO
Property in the related Servicing Account.

         (c)  The Master  Servicer and the  applicable  Servicer,  upon the final  disposition of any REO Property,
shall be entitled to reimbursement for any related  unreimbursed  Advances and other unreimbursed  advances as well
as any unpaid Servicing Fees from Liquidation  Proceeds  received in connection with the final  disposition of such
REO  Property;  provided,  that  any  such  unreimbursed  Advances  as well as any  unpaid  Servicing  Fees  may be
reimbursed  or paid,  as the case may be,  prior to final  disposition,  out of any net rental  income or other net
amounts derived from such REO Property.

         (d)  To the extent provided in the related Servicing  Agreement,  the Liquidation  Proceeds from the final
disposition  of the REO  Property,  net of any  payment to the  Master  Servicer  and the  applicable  Servicer  as
provided  above shall be deposited in the related  Servicing  Account on or prior to the  applicable  Determination
Date in the month  following  receipt  thereof and be remitted by wire transfer in immediately  available  funds to
the Master Servicer for deposit into the Collection Account on the next succeeding Servicer Remittance Date.

         SECTION 3.16.  Assessments of Compliance and Attestation Reports.

         (a)  Assessments of Compliance.

                  (i)      By March 10 (with a 5  calendar  day cure  period)  of each year  (subject  to the later
         date referred to in Section  3.16(a)(iii)),  commencing in March 2008, the Master Servicer, the Securities
         Administrator and the Custodian,  each at its own expense,  shall furnish, and each such party shall cause
         any Servicing  Function  Participant  engaged by it (unless such party has elected to take  responsibility
         for assessing  compliance with the Relevant Servicing  Criteria and providing the related  attestation for
         any such Subcontractor  engaged by it in accordance with Regulation AB Telephone  Interpretation 17.06) to
         furnish,  each at its own expense,  to the  Securities  Administrator  and the  Depositor,  a report on an
         assessment  of  compliance  with the Relevant  Servicing  Criteria  that  contains (A) a statement by such
         party  of its  responsibility  for  assessing  compliance  with the  Relevant  Servicing  Criteria,  (B) a
         statement that such party used the Servicing  Criteria to assess  compliance  with the Relevant  Servicing
         Criteria,  (C) such party's  assessment of compliance with the Relevant  Servicing  Criteria as of and for
         the fiscal year  covered by the Form 10-K  required to be filed  pursuant to Section  3.19(b) and for each
         fiscal year thereafter,  whether or not a Form 10-K is required to be filed,  including, if there has been
         any material instance of noncompliance  with the Relevant  Servicing  Criteria,  a discussion of each such
         failure and the nature and status thereof,  and (D) a statement that a registered  public  accounting firm
         has issued an  attestation  report on such party's  assessment of compliance  with the Relevant  Servicing
         Criteria as of and for such period.

                  (ii)     No later  than the end of each  fiscal  year for the  Issuer  for  which a Form  10-K is
         required  to be filed,  the  Master  Servicer  and the  Custodian,  shall each  forward to the  Securities
         Administrator  and the Depositor the name of each Servicing  Function  Participant  engaged by it and what
         Relevant Servicing  Criteria will be addressed in the report on assessment of compliance  prepared by such
         Servicing  Function  Participant  (provided,  however,  that the Master  Servicer  need not  provide  such
         information  to  the  Securities  Administrator  so  long  as  the  Master  Servicer  and  the  Securities
         Administrator  are the  same  Person).  When  the  Master  Servicer,  the  Custodian,  and the  Securities
         Administrator  submit their  assessments to the Securities  Administrator,  such parties will also at such
         time include the  assessment  (and  attestation  pursuant to subsection  (b) of this Section 3.16) of each
         Servicing Function Participant engaged by it.

                  (iii)    Promptly  after  receipt  of each  such  report on  assessment  of  compliance,  (i) the
         Depositor  shall  review each such  report and each  comparable  report  submitted  by a Servicer  and, if
         applicable,  consult with the Master Servicer, the Securities Administrator,  the Custodian, the Servicers
         and any Servicing Function  Participant  engaged by such parties as to the nature of any material instance
         of  noncompliance  with the  Relevant  Servicing  Criteria  by each such  party,  and (ii) the  Securities
         Administrator  shall  confirm  that  the  assessments,  taken  as a whole,  address  all of the  Servicing
         Criteria and taken  individually  address the Relevant  Servicing  Criteria for each party as set forth on
         Exhibit Q and on any similar  exhibit set forth in each  Servicing  Agreement in respect of each  Servicer
         and notify the  Depositor of any  exceptions.  None of such parties  shall be required to deliver any such
         assessments  until March 30 in any given year so long as it has  received  written  confirmation  from the
         Depositor  that a Form  10-K is not  required  to be filed in  respect  of the  Issuer  for the  preceding
         calendar year which, if the  circumstances  apply, the Depositor agrees to provide prior to March 1 of the
         applicable  year;  provided  that the  Custodian  shall only be required to deliver such an  assessment of
         compliance  with  respect to any fiscal  year for which a Form 10-K is  required to be filed in respect of
         the Issuer.  The Master  Servicer  shall include all annual  reports on assessment of compliance  received
         by it with its own  assessment of compliance to be submitted to the Securities  Administrator  pursuant to
         this Section.

                  In the event the Master Servicer, the Securities  Administrator,  the Custodian,  any Servicer or
         any  Servicing  Function  Participant  engaged by any such  party is  terminated,  assigns  its rights and
         obligations  under,  or resigns  pursuant to, the terms of this  Agreement,  or any  applicable  custodial
         agreement,  Servicing  Agreement or sub-servicing  agreement,  as the case may be, such party (in the case
         of a Servicer,  to the extent required under the applicable  Servicing  Agreement)  shall provide or shall
         cause such Servicing  Function  Participant to provide for the applicable period preceding such assignment
         and  termination a report on assessment  of compliance  pursuant to this Section  3.16(a) or to such other
         applicable agreement, notwithstanding any such termination, assignment or resignation.

         (b)  Attestation Reports.

                  (i)      By March 10 (with a 5  calendar  day cure  period)  of each year  (subject  to the later
         date referred to in Section  3.16(b)(ii)),  commencing in March 2008, the Master Servicer,  the Securities
         Administrator,  the Custodian,  each at its own expense,  shall cause, and each such party shall cause any
         Servicing  Function  Participant  engaged  by  it  to  cause  (unless  such  party  has  elected  to  take
         responsibility  for assessing  compliance with the Relevant  Servicing  Criteria and providing the related
         attestation  with respect to such  Relevant  Servicing  Criteria for such  Subcontractor  engaged by it in
         accordance  with  Regulation AB Telephone  Interpretation  17.06),  each at its own expense,  a registered
         public  accounting  firm  (which may also render  other  services to the Master  Servicer,  the  Indenture
         Trustee,  in its capacity as Custodian,  the Securities  Administrator,  or such other Servicing  Function
         Participants,  as the case may be) and that is a member of the  American  Institute  of  Certified  Public
         Accountants to furnish a report to the  Securities  Administrator  and the  Depositor,  to the effect that
         (i) it has obtained a representation  regarding  certain matters from the management of such party,  which
         includes an assertion that such party has complied with the Relevant Servicing  Criteria,  and (ii) on the
         basis of an examination  conducted by such firm in accordance with standards for  attestation  engagements
         issued or adopted by the PCAOB,  it is  expressing an opinion as to whether such party's  compliance  with
         the Relevant  Servicing  Criteria  was fairly  stated in all material  respects,  or it cannot  express an
         overall  opinion  regarding such party's  assessment of compliance with the Relevant  Servicing  Criteria.
         In the event that an overall  opinion cannot be expressed,  such registered  public  accounting firm shall
         state in such report why it was unable to express  such an opinion.  Such  report  must be  available  for
         general use and not contain restricted use language.

                  (ii)     Promptly after receipt of such report from the Master Servicer,  the Indenture  Trustee,
         in its  capacity  as  Custodian,  the  Securities  Administrator,  a Servicer  or any  Servicing  Function
         Participant  engaged by such  parties,  (i) the  Depositor  shall  review the report and,  if  applicable,
         consult with such parties as to the nature of any defaults by such parties,  in the  fulfillment of any of
         each such party's obligations hereunder or under any other applicable  agreement,  and (ii) the Securities
         Administrator  shall confirm that each  assessment  submitted  pursuant to subsection  (a) of this Section
         3.16 is coupled with an attestation  meeting the  requirements of this Section and notify the Depositor of
         any  exceptions.  None  of the  Master  Servicer,  the  Securities  Administrator,  the  Custodian  or any
         Servicing  Function  Participant  engaged  by such  parties  shall be  required  to  deliver  or cause the
         delivery  of such  reports  until  March  30 in any  given  year  for so long as it has  received  written
         confirmation  from the  Depositor  that a Form 10-K is not  required  to be filed in respect of the Issuer
         for the preceding  calendar or fiscal year which,  if the  circumstances  apply,  the Depositor  agrees to
         provide prior to March 1 of the  applicable  year;  provided that the Custodian  shall only be required to
         deliver or cause to be  delivered  such  report  with  respect to any fiscal year for which a Form 10-K is
         required to be filed by the Issuer.  The Master  Servicer  shall include each such  attestation  furnished
         to it with its own attestation to be submitted to the Securities Administrator pursuant to this Section.

                  In the event the Master Servicer, the Securities  Administrator,  the Custodian,  any Servicer or
         any  Servicing  Function  Participant  engaged by any such  party is  terminated,  assigns  its rights and
         duties under, or resigns pursuant to the terms of this Agreement,  or any applicable  custodial agreement,
         Servicing  Agreement  or  sub-servicing  agreement,  as the  case  may be,  such  party  (in the case of a
         Servicer,  to the extent  required  under the  applicable  Servicing  Agreement)  shall cause a registered
         public  accounting  firm to provide  an  attestation  pursuant  to this  Section  3.16(b) or to such other
         applicable  agreement,  for the applicable period  immediately  preceding such termination,  assignment or
         resignation, notwithstanding any such termination, assignment or resignation.

         SECTION 3.17.  Annual Compliance Statement.

         The  Master  Servicer  and the  Securities  Administrator  shall  deliver  (and the  Master  Servicer  and
Securities  Administrator  shall  cause  any  Servicing  Function  Participant  engaged  by it to  deliver)  to the
Depositor  and the  Securities  Administrator  on or before  March 10 (with a 5 calendar  day cure  period) of each
year,  commencing in March 2008, an Officer's  Certificate stating, as to the signer thereof,  that (A) a review of
such party's  activities  during the  preceding  calendar year or portion  thereof and of such party's  performance
under this Agreement,  or such other applicable  agreement in the case of any Servicing Function  Participant,  has
been made under such officer's  supervision and (B) to the best of such officer's knowledge,  based on such review,
such party has fulfilled all its obligations under this Agreement,  or such other applicable  agreement in the case
of any Servicing Function  Participant,  in all material respects  throughout such year or portion thereof,  or, if
there has been a failure to fulfill any such  obligation  in any  material  respect,  specifying  each such failure
known  to such  officer  and the  nature  and  status  thereof.  Promptly  after  receipt  of each  such  Officer's
Certificate,  the Depositor  shall review such Officer's  Certificate  and, if  applicable,  consult with each such
party,  as applicable,  as to the nature of any failures by such party,  in the  fulfillment of any of such party's
obligations  hereunder  or,  in the  case of any  Servicing  Function  Participant,  under  such  other  applicable
agreement.  The Master  Servicer  shall  include  all annual  statements  of  compliance  received  by it from each
Servicer with its own annual  statement of compliance to be submitted to the Securities  Administrator  pursuant to
this  Section.  In  the  event  the  Master  Servicer,  the  Securities  Administrator  or any  Servicing  Function
Participant  engaged by any such party is terminated  or resigns  pursuant to the terms of this  Agreement,  or any
applicable  agreement  in the case of a  Servicing  Function  Participant,  as the case may be,  such  party  shall
provide an Officer's  Certificate  pursuant to this Section 3.17 or to such applicable  agreement,  as the case may
be, notwithstanding any such termination, assignment or resignation.

         SECTION 3.18.  Sarbanes-Oxley Certification.

         Each Form 10-K shall include a Sarbanes-Oxley  Certification,  required to be included  therewith pursuant
to the  Sarbanes-Oxley  Act. The Master  Servicer and the Securities  Administrator  shall  provide,  and each such
party  shall  cause any  Servicing  Function  Participant  engaged  by it to  provide,  to the Person who signs the
Sarbanes-Oxley  Certification (the "Certifying  Person"),  by March 1 (with a ten-calendar day cure period), (or by
such other  date and cure  period  specified  in the  applicable  Servicing  Agreement),  of each year in which the
Issuer is subject to the reporting  requirements  of the Exchange Act and otherwise  within a reasonable  period of
time upon request,  a certification,  if applicable in the form provided by the related Servicing  Agreement (each,
a "Back-Up  Certification"),  upon which the Certifying  Person, the entity for which the Certifying Person acts as
an officer,  and such entity's  officers,  directors and Affiliates can reasonably  rely. The senior officer of the
Master Servicer in charge of the master  servicing  function shall serve as the Certifying  Person on behalf of the
Issuer.  Such officer of the Certifying  Person can be contacted by e-mail at  cts.sec.notifications@wellsfargo.com
or by facsimile at (410) 715-2380.  In the event any such party or any Servicing  Function  Participant  engaged by
such party is  terminated  or resigns  pursuant to the terms of this  Agreement,  or any  applicable  sub-servicing
agreement,  as the case may be, such party shall provide a Back-Up  Certification to the Certifying Person pursuant
to this  Section  3.18 with  respect  to the  period of time it was  subject to this  Agreement  or any  applicable
sub-servicing  agreement,  as the case may be.  Notwithstanding  the  foregoing,  (i) the Master  Servicer  and the
Securities  Administrator  shall not be required to deliver a Back-Up  Certification  to each other if both are the
same Person and the Master  Servicer is the Certifying  Person and (ii) the Master  Servicer shall not be obligated
to sign the Sarbanes-Oxley  Certification in the event that it does not receive any Back-Up Certification  required
to be furnished to it pursuant to this section or any Servicing Agreement or custodial agreement.

         SECTION 3.19.  Reports Filed with Securities and Exchange Commission.

         (a)  Reports Filed on Form 10-D.

                  (i)      Within 15 days after each  Payment  Date  (subject  to  permitted  extensions  under the
         Exchange Act), the Securities  Administrator  shall prepare and file on behalf of the Issuer any Form 10-D
         required by the  Exchange  Act, in form and  substance as required by the  Exchange  Act.  The  Securities
         Administrator  shall  file each  Form 10-D with a copy of the  related  Payment  Date  Statement  attached
         thereto.  Any  disclosure  in addition to the Payment  Date  Statement  that is required to be included on
         Form 10-D ("Additional  Form 10-D Disclosure")  shall be reported by the parties set forth on Exhibit R to
         the  Depositor and the  Securities  Administrator  and directed and approved by the Depositor  pursuant to
         the following  paragraph and the Securities  Administrator  will have no duty or liability for any failure
         hereunder to determine or prepare any  Additional  Form 10-D  Disclosure,  except as set forth in the next
         two paragraphs.

                  (ii)     As set forth on Exhibit R hereto,  within 5  calendar  days  after the  related  Payment
         Date, (i) the parties to the Thornburg  Mortgage  Securities Trust 2007-3 transaction shall be required to
         provide to the Securities  Administrator and the Depositor,  to the extent known by a responsible  officer
         thereof,  in  EDGAR-compatible  form (which may be Word or Excel  documents  easily  convertible  to EDGAR
         format),  or in such other form as otherwise agreed upon by the Securities  Administrator  and such party,
         the  form  and  substance  of any  Additional  Form  10-D  Disclosure,  if  applicable,  together  with an
         Additional  Disclosure   Notification  in  the  form  of  Exhibit  U  hereto  (an  "Additional  Disclosure
         Notification"),  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 Initial Seller will
         be responsible for any reasonable fees and expenses  assessed or incurred by the Securities  Administrator
         in  connection  with  including  any  Additional  Form  10-D  Disclosure  in Form  10-D  pursuant  to this
         paragraph,  provided that if the Additional  Form 10-D  Disclosure  relates solely to the Depositor,  such
         fees and expenses shall be paid by the Depositor.

                  (iii)    After preparing the Form 10-D, the Securities  Administrator  shall forward upon request
         electronically  a copy of the Form 10-D to the  Depositor  (provided  that such  Form  10-D  includes  any
         Additional  Form 10-D  Disclosure).  Within two  Business  Days after  receipt of such copy,  but no later
         than  the  12th  calendar  day  after  the  Payment  Date,  the  Depositor  shall  notify  the  Securities
         Administrator  in writing  (which may be furnished  electronically)  of any changes to or approval of such
         Form 10-D.  In the absence of receipt of any written  changes or approval,  or if the  Depositor  does not
         request a copy of a Form 10-D,  the  Securities  Administrator  shall be entitled to assume that such Form
         10-D is in final form and the  Securities  Administrator  may proceed with the execution and filing of the
         Form 10-D.  A duly  authorized  representative  of the  Master  Servicer  shall sign each Form 10-D.  If a
         Form 10-D cannot be filed on time or if a previously  filed Form 10-D needs to be amended,  the Securities
         Administrator  will follow the procedures set forth in subsection  (d)(ii) of this Section 3.19.  Promptly
         (but no later than 1 Business Day) after filing with the  Commission,  the Securities  Administrator  will
         make  available on its internet  website a final  executed copy of each Form 10-D filed by the  Securities
         Administrator.  Each party to this Agreement  acknowledges  that the  performance  by the Master  Servicer
         and the Securities  Administrator  of their  respective  duties under this Section  3.19(a) related to the
         timely  preparation,  execution and filing of Form 10-D is contingent upon such parties strictly observing
         all  applicable  deadlines in the  performance  of their duties  under this Section  3.19(a).  Neither the
         Master Servicer nor the Securities  Administrator shall have any liability for any loss, expense,  damage,
         claim arising out of or with respect to any failure to properly  prepare,  execute and/or timely file such
         Form 10-D, where such failure results from the Securities  Administrator's  inability or failure to obtain
         or receive,  on a timely basis,  any  information  from any other party hereto needed to prepare,  arrange
         for  execution  or file such Form  10-D,  not  resulting  from its own  negligence,  bad faith or  willful
         misconduct.

                  (iv)     Form 10-D requires the  registrant  to indicate (by checking  "yes" or "no") that it (1)
         has filed  all  reports  required  to be filed by  Section  13 or 15(d) of the  Exchange  Act  during  the
         preceding 12 months (or for such shorter  period that the  registrant  was required to file such reports),
         and (2) has  been  subject  to such  filing  requirements  for the past 90  days."  The  Depositor  hereby
         represents to the Securities  Administrator  that the Depositor has filed all such required reports during
         the  preceding  12 months and that it has been  subject to such filing  requirement  for the past 90 days.
         The Depositor shall notify the Securities  Administrator in writing,  no later than the fifth calendar day
         after the related  Payment  Date with  respect to the filing of a report on Form 10-D if the answer to the
         questions   should  be  "no."  The   Securities   Administrator   shall  be   entitled  to  rely  on  such
         representations in preparing, executing and/or filing any such report

         (b)  Reports Filed on Form 10-K.

                  (i)      On or prior to the 90th day after the end of each  fiscal  year of the Issuer in which a
         Form 10-K is required to be filed 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 Issuer ends on December 31st of each
         year),  commencing in March 2008,  the  Securities  Administrator  shall prepare and file on behalf of the
         Issuer 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  Securities
         Administrator  within the  applicable  time frames set forth in this  Agreement and the related  Servicing
         Agreement,  (i) an annual  compliance  statement for each Servicer,  the Master  Servicer,  the Securities
         Administrator  and any  Servicing  Function  Participant  engaged  by such  parties  (each,  a  "Reporting
         Servicer") as described  under Section 3.17,  (ii)(A) the annual reports on assessment of compliance  with
         servicing  criteria for each  Reporting  Servicer,  as described  under Section  3.16(a),  and (B) if each
         Reporting  Servicer's report on assessment of compliance with servicing  criteria  described under Section
         3.16(a)  identifies  any material  instance of  noncompliance,  disclosure  identifying  such  instance of
         noncompliance,  or if each  Reporting  Servicer's  report  on  assessment  of  compliance  with  servicing
         criteria  described  under  Section  3.16(a) is not  included as an exhibit to such Form 10-K,  disclosure
         that such  report is not  included  and an  explanation  why such  report is not  included,  (iii)(A)  the
         registered  public  accounting firm  attestation  report for each Reporting  Servicer,  as described under
         Section  3.16(b),  and (B) if any registered  public  accounting firm  attestation  report described under
         Section 3.16(b)  identifies any material instance of noncompliance,  disclosure  identifying such instance
         of noncompliance,  or if any such registered public accounting firm attestation  report is not included as
         an exhibit to such Form 10-K,  disclosure  that such report is not  included and an  explanation  why such
         report is not included,  and (iv) a  Sarbanes-Oxley  Certification as described in Section 3.18 (provided,
         however,  that the Securities  Administrator,  at its  discretion,  may omit from the Form 10-K any annual
         compliance  statement,  assessment of compliance  or  attestation  report that is not required to be filed
         with such Form 10-K  pursuant  to  Regulation  AB).  Any  disclosure  or  information  in  addition to (i)
         through  (iv) above that is  required  to be included  on Form 10-K  ("Additional  Form 10-K  Disclosure")
         shall be  determined  and prepared by and at the  direction  of the  Depositor  pursuant to the  following
         paragraph and the  Securities  Administrator  will have no duty or liability for any failure  hereunder to
         determine  or  prepare  any  Additional  Form  10-K  Disclosure,  except  as set  forth  in the  next  two
         paragraphs.

                  (ii)     As set forth on Exhibit S hereto,  no later  than  March 10 (with a 5 calendar  day cure
         period) of each year that the Issuer is subject to the Exchange  Act  reporting  requirements,  commencing
         in 2008, (i) the parties to the Thornburg  Mortgage  Securities Trust 2007-3 transaction shall be required
         to provide to the  Securities  Administrator  and the  Depositor,  to the  extent  known by a  responsible
         officer thereof,  in  EDGAR-compatible  form (which may be Word or Excel documents  easily  convertible to
         EDGAR format),  or in such other form as otherwise  agreed upon by the Securities  Administrator  and such
         party,  the form and substance of any Additional  Form 10-K  Disclosure,  if applicable,  together with an
         Additional  Disclosure  Notification  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-K  Disclosure on Form 10-K. The
         Initial  Seller will be  responsible  for any  reasonable  fees and  expenses  assessed or incurred by the
         Securities  Administrator  in connection  with including any Additional  Form 10-K Disclosure in Form 10-K
         pursuant to this paragraph,  provided that if the Additional  Form 10-K  Disclosure  relates solely to the
         Depositor, such fees and expenses shall be paid by the Depositor.

                  (iii)    After preparing the Form 10-K, the Securities  Administrator  shall forward upon request
         electronically  a copy of the Form 10-K to the  Depositor.  Within three  Business  Days after  receipt of
         such copy,  but no later than March 25th,  the  Depositor  shall notify the  Securities  Administrator  in
         writing  (which may be furnished  electronically)  of any changes to or approval of such Form 10-K. In the
         absence of receipt of any written  changes or approval,  or if the Depositor  does not request a copy of a
         Form 10-K, the Securities  Administrator  shall be entitled to assume that such Form 10-K is in final form
         and the  Securities  Administrator  may proceed with the  execution  and filing of the Form 10-K. A senior
         officer of the Master  Servicer in charge of the master  servicing  function  shall sign the Form 10-K. If
         a Form  10-K  cannot  be filed on time or if a  previously  filed  Form  10-K  needs  to be  amended,  the
         Securities  Administrator  will follow the  procedures  set forth in  subsection  (d)(ii) of this  Section
         3.19.  Promptly  (but no later than 1 Business  Day) after  filing  with the  Commission,  the  Securities
         Administrator  will make  available on its internet  website a final executed copy of each Form 10-K filed
         by the Securities  Administrator.  The parties to this Agreement  acknowledge  that the performance by the
         Master Servicer and the Securities  Administrator  of its duties under this Section 3.19(b) related to the
         timely  preparation,  execution and filing of Form 10-K is contingent upon such parties (the Custodian and
         any Servicing  Function  Participant)  strictly  observing all applicable  deadlines in the performance of
         their  duties  under this  Section  3.19(b),  Section  3.18,  Section  3.17,  Section  3.16(a) and Section
         3.16(b).  Neither the Master  Servicer nor the Securities  Administrator  shall have any liability for any
         loss,  expense,  damage or claim  arising  out of or with  respect  to any  failure to  properly  prepare,
         execute   and/or  timely  file  such  Form  10-K,   where  such  failure   results  from  the   Securities
         Administrator's  inability or failure to obtain or receive,  on a timely basis,  any information  from any
         other party hereto  needed to prepare,  arrange for execution or file such Form 10-K,  not resulting  from
         its own negligence, bad faith or willful misconduct.

                  (iv)     Form 10-K requires the  registrant to indicate (by checking  "yes" or "no") that it "(1)
         has filed  all  reports  required  to be filed by  Section  13 or 15(d) of the  Exchange  Act  during  the
         preceding 12 months (or for such shorter  period that the  registrant  was required to file such reports),
         and (2) has  been  subject  to such  filing  requirements  for the past 90  days."  The  Depositor  hereby
         represents to the Securities  Administrator  that the Depositor has filed all such required reports during
         the  preceding  12 months and that it has been  subject to such filing  requirement  for the past 90 days.
         The  Depositor  shall  notify  the  Securities  Administrator  in  writing,  no later than March 15th with
         respect  to the  filing of a report on Form  10-K,  if the  answer  to the  questions  should be "no." The
         Securities  Administrator  shall be  entitled  to rely on such  representations  in  preparing,  executing
         and/or filing any such report.

         (c)  Reports Filed on Form 8-K.

                  (i)      Within four (4) Business Days after the occurrence of an event  requiring  disclosure on
         Form 8-K (each such event,  a  "Reportable  Event"),  and if requested by the  Depositor,  the  Securities
         Administrator  shall  prepare and file on behalf of the Issuer a Form 8-K,  as  required  by the  Exchange
         Act,  provided that the Depositor  shall file the initial Form 8-K in connection  with the issuance of the
         Offered  Notes.  Any  disclosure  or  information  related  to a  Reportable  Event  or that is  otherwise
         required to be included in Form 8-K ("Form 8-K Disclosure  Information")  shall be reported by the parties
         set forth on Exhibit T to the  Depositor  and the  Securities  Administrator  and directed and approved by
         the Depositor  pursuant to the following  paragraph and the Securities  Administrator will have no duty or
         liability for any failure  hereunder to determine or prepare any Form 8-K  Disclosure  Information  or any
         Form 8-K, except as set forth in the next two paragraphs.

                  (ii)     As set forth on Exhibit T hereto,  for so long as the Issuer is subject to the  Exchange
         Act  reporting  requirements,  no later than close of  business  (New York City time) on the 2nd  Business
         Day after the  occurrence  of a  Reportable  Event (i) the parties to the  Thornburg  Mortgage  Securities
         Trust 2007-3  transaction shall be required to provide to the Securities  Administrator and Depositor,  to
         the extent known by a responsible officer thereof,  in  EDGAR-compatible  form (which may be Word or Excel
         documents  easily  convertible  to EDGAR  format),  or in such other form as otherwise  agreed upon by the
         Securities  Administrator  and such party, the form and substance of any Form 8-K Disclosure  Information,
         if applicable,  together with an Additional  Disclosure  Notification 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.  The Initial Seller will be  responsible  for any  reasonable  fees and expenses  assessed or
         incurred  by  the  Securities   Administrator  in  connection  with  including  any  Form  8-K  Disclosure
         Information in Form 8-K pursuant to this  paragraph,  provided that if the Additional  Form 8-K Disclosure
         Information relates solely to the Depositor, such fees and expenses shall be paid by the Depositor.

                  (iii)    After  preparing the Form 8-K, the Securities  Administrator  shall forward upon request
         electronically  a copy of the  Form  8-K to the  Depositor.  Promptly,  but no  later  than  the  close of
         business on the third Business Day after the Reportable  Event,  the Depositor shall notify the Securities
         Administrator  in writing  (which may be furnished  electronically)  of any changes to or approval of such
         Form 8-K. In the absence of receipt of any  written  changes or  approval,  or if the  Depositor  does not
         request a copy of a Form 8-K,  the  Securities  Administrator  shall be  entitled to assume that such Form
         8-K is in final form and the  Securities  Administrator  may proceed with the  execution and filing of the
         Form 8-K. A duly  authorized  representative  of the Master Servicer shall sign each Form 8-K filed by the
         Securities  Administrator.  If a Form 8-K cannot be filed on time or if a previously  filed Form 8-K needs
         to be amended,  the Securities  Administrator  will follow the procedures set forth in subsection  (d)(ii)
         of this Section 3.19.  Promptly (but no later than 1 Business Day) after filing with the  Commission,  the
         Securities  Administrator  will, make available on its internet website a final executed copy of each Form
         8-K filed by the  Securities  Administrator  or filed by the  Depositor  and  provided  to the  Securities
         Administrator  for that purpose.  The parties to this Agreement  acknowledge  that the  performance by the
         Master Servicer and the Securities  Administrator  of their  respective  duties under this Section 3.19(c)
         related to the  timely  preparation,  execution  and filing of Form 8-K is  contingent  upon such  parties
         strictly  observing  all  applicable  deadlines  in the  performance  of their  duties  under this Section
         3.19(c).  Neither the Securities  Administrator  nor the Master  Servicer shall have any liability for any
         loss, expense,  damage,  claim arising out of or with respect to any failure to properly prepare,  execute
         and/or  timely  file such  Form 8-K,  where  such  failure  results  from the  Securities  Administrator's
         inability  or failure to obtain or  receive,  on a timely  basis,  any  information  from any other  party
         hereto  needed to  prepare,  arrange  for  execution  or file such Form 8-K,  not  resulting  from its own
         negligence, bad faith or willful misconduct.

         (d)  Delisting; Amendments; Late Filings.

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

                  (ii)     In the event  that the  Securities  Administrator  is  unable  to  timely  file with the
         Commission  all or any  required  portion  of any  Form  8-K,  10-D or 10-K  required  to be filed by this
         Agreement  because  required  disclosure  information  was either not  delivered  to it or delivered to it
         after  the  delivery  deadlines  set  forth in this  Agreement  or for any other  reason,  the  Securities
         Administrator will promptly notify  electronically  the Depositor.  In the case of Form 10-D and 10-K, the
         parties to this  Agreement  and each  Servicer  will  cooperate  to prepare  and file a Form  12b-25 and a
         10-D/A and 10-K/A,  as  applicable,  pursuant to Rule 12b-25 of the Exchange Act. In the case of Form 8-K,
         the Securities  Administrator will, upon receipt of all required Form 8-K Disclosure  Information and upon
         the approval and direction of the Depositor,  include such  disclosure  information on the next Form 10-D.
         In the event that any  previously  filed Form 8-K,  10-D or 10-K needs to be amended,  and such  amendment
         includes  any  Additional  Form 10-D  Disclosure,  any  Additional  Form 10-K  Disclosure  or any Form 8-K
         Disclosure  Information or any amendment to such disclosure,  the Securities  Administrator  will promptly
         notify  electronically  the  Depositor  and such parties will  cooperate  to prepare any  necessary  8-KA,
         10-D/A or 10-K/A.  Any Form 15, Form  12b-25 or any  amendment  to Form 8-K,  10-D or 10-K shall be signed
         by a duly authorized  representative or a senior officer in charge of master servicing, as applicable,  of
         the Master  Servicer.  The  parties  to this  Agreement  acknowledge  that the  performance  by the Master
         Servicer and the Securities  Administrator of their  respective  duties under this Section 3.19(d) related
         to the timely  preparation,  execution  and filing of Form 15, a Form 12b-25 or any amendment to Form 8-K,
         10-D or 10-K is contingent  upon each such party  performing  its duties under this  Section.  Neither the
         Master Servicer nor the Securities  Administrator shall have any liability for any loss, expense,  damage,
         claim arising out of or with respect to any failure to properly  prepare,  execute  and/or timely file any
         such Form 15, Form 12b-25 or any  amendments to Forms 8-K, 10-D or 10-K,  where such failure  results from
         the  Securities  Administrator's  inability  or  failure  to obtain or  receive,  on a timely  basis,  any
         information  from any other party hereto  needed to prepare,  arrange for  execution or file such Form 15,
         Form 12b-25 or any  amendments to Forms 8-K,  10-D or 10-K,  not resulting  from its own  negligence,  bad
         faith or willful misconduct.

         SECTION 3.20.  Additional Information.

         Each of the  parties  agrees to  provide  to the  Securities  Administrator  such  additional  information
related  to  such  party  as the  Securities  Administrator  may  reasonably  request,  including  evidence  of the
authorization of the person signing any  certification or statement,  financial  information and reports,  and such
other information related to such party or its performance hereunder.

         SECTION 3.21.   Intention of the Parties and Interpretation.

         Each of the parties  acknowledges  and agrees that the purpose of Section  3.16  through  Section  3.20 of
this Agreement is to facilitate  compliance by the Securities  Administrator  and the Depositor with the provisions
of Regulation AB  promulgated  by the  Commission  under the Exchange Act, as such may be amended from time to time
and subject to such  clarification  and  interpretive  advice as may be issued by the staff of the Commission  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  that  purpose,  (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, (c) the parties  shall comply with the
reasonable  requests made by the  Securities  Administrator  or the  Depositor  for delivery of such  additional or
different  information  as the Securities  Administrator  or the Depositor may determine in good faith is necessary
to comply with the provisions of Regulation AB, which  information is available to such party without  unreasonable
effort or  expense  and  within  such  timeframe  as may be  reasonably  requested,  and (d) no  amendment  of this
Agreement  shall be  required  to  effect  any  such  changes  in the  parties'  obligations  as are  necessary  to
accommodate evolving interpretations of the provisions of Regulation AB.

         SECTION 3.22.  Indemnification.

         Each party  required to deliver an assessment of compliance  and  attestation  report  pursuant to Section
3.16 (each, an "Item 1122 Responsible Party") shall indemnify and hold harmless the Securities  Administrator,  the
Master  Servicer,  the  Depositor,  the  Initial  Seller  and the  Seller  and each of their  directors,  officers,
employees,  agents,  and  affiliates  from and against  any and all  claims,  losses,  damages,  penalties,  fines,
forfeitures,  reasonable  legal fees and related  costs,  judgments and other costs and expenses  arising out of or
based upon (a) any breach by such Item 1122 Responsible Party of any of its obligations  hereunder  relating to its
obligations as an Item 1122  Responsible  Party,  including  particularly its obligations to provide any assessment
of  compliance,  attestation  report or  compliance  statement  required  under Section  3.16(a),  3.16(b) or 3.17,
respectively,  or any information,  data or materials  required to be included in any Exchange Act report,  (b) any
material  misstatement  or  material  omission in any  information,  data or  materials  provided by such Item 1122
Responsible Party (or, in the case of the Securities  Administrator or Master Servicer,  any material  misstatement
or material omission in (x) any compliance  certificate  delivered by it, or by any Servicing Function  Participant
engaged by it,  pursuant to this Agreement,  (y) any assessment or attestation  delivered by or on behalf of it, or
by any Servicing Function  Participant  engaged by it, pursuant to this Agreement,  or (z) any Additional Form 10-D
Disclosure,  Additional  Form  10-K  Disclosure  or Form  8-K  Disclosure  Information  concerning  the  Securities
Administrator  or the Master Servicer and provided by either of them), or (c) the negligence,  bad faith or willful
misconduct  of such Item 1122  Responsible  Party in  connection  with its  performance  hereunder  relating to its
obligations  as an Item 1122  Responsible  Party.  If the  indemnification  provided for herein is  unavailable  or
insufficient to hold harmless the Securities  Administrator,  the Depositor, the Initial Seller or the Seller, then
each Item 1122  Responsible  Party agrees that it shall  contribute to the amount paid or payable by the Securities
Administrator,  the Master  Servicer,  the  Depositor,  the Initial Seller or the Seller as a result of any claims,
losses, damages or liabilities incurred by the Securities  Administrator,  the Master Servicer, the Depositor,  the
Initial  Seller or the Seller in such  proportion as is appropriate to reflect the relative fault of the Securities
Administrator,  the Master Servicer, the Depositor,  the Initial Seller or the Seller on the one hand and such Item
1122 Responsible  Party on the other. This  indemnification  shall survive the termination of this Agreement or the
termination of any party to this Agreement.

         SECTION 3.23.  Amendments to Master Servicing Guide and Correspondent Sellers Guide.

         The Initial Seller and the Master  Servicer  hereby agree not to amend the Master  Servicing  Guide or the
Correspondent  Sellers Guide with respect to the Mortgage Loans (which are Securitized  Loans (as defined therein))
which  amendment would (i) change the Servicer  Remittance  Date or date for remittance of any servicer  reports or
monthly  remittance  advices,  (ii) change the manner in which any Servicer makes Advances,  servicing  advances or
amounts to compensate for Interest  Shortfalls or (iii)  otherwise have a material  adverse effect on the Issuer or
the Securityholders unless such changes are made pursuant to the provisions of Section 12.01 hereof.

         SECTION 3.24.  Uniform Commercial Code.

         The  Securities  Administrator  agrees to file  continuation  statements for any Uniform  Commercial  Code
financing  statements   identifying  the  Issuer  as  debtor  which  the  Depositor  has  informed  the  Securities
Administrator  in  writing  were  filed on the  Closing  Date in  connection  with the  Issuer,  provided  that the
Securities  Administrator  receives the related filing  information on a timely basis. The Depositor shall file any
financing statements or amendments thereto required by any change in the Uniform Commercial Code.

         SECTION 3.25.  Optional and Required Purchases of Certain Mortgage Loans.

         (a)  Thornburg,  in its  capacity as a Servicer of a portion of the Mortgage  Loans,  shall have the right
to purchase  from the Issuer any Mortgage  Loan which as of the first day of a calendar  quarter is  delinquent  in
payment by 90 days or more or is an REO Property,  at a price equal to the Purchase  Price;  provided,  however (i)
that such Mortgage  Loan is still 90 days or more  delinquent or is an REO Property as of the date of such purchase
and (ii) this purchase option, if not theretofore  exercised,  shall terminate on the date prior to the last day of
the related calendar  quarter.  This purchase option, if not exercised,  shall not be thereafter  reinstated unless
the  delinquency is cured and the Mortgage Loan  thereafter  again becomes 90 days or more delinquent or becomes an
REO Property,  in which case the option shall again become  exercisable as of the first day of the related calendar
quarter.

         (b) The Seller,  may, but is not required to,  repurchase  any Mortgage Loan as to which the Mortgagor has
requested a Significant  Modification  that is not then permitted under the related Mortgage Note if such Mortgagor
has a  satisfactory  payment  history under such Mortgage Loan and meets the credit  standards of Thornburg for the
loan  program  selected  (a  "Significant  Modification  Loan").  A  "Significant   Modification"  shall  mean  any
modification  to the interest rate of the greater of (i) 0.25% added or subtracted  from the existing rate and (ii)
a change equal to the product of (a) 5% and (b) the annual  existing  interest rate thereon,  which is not provided
for in the related  Mortgage Note. The purchase  price for any  repurchase  pursuant to this Section  3.25(b) shall
be the applicable  Purchase Price. In order to exercise its repurchase rights  hereunder,  the Seller shall deliver
to the Master  Servicer and the  Indenture  Trustee an Officer's  Certificate  identifying  the Mortgage Loan to be
repurchased  and  certifying  that (i) such  Mortgage Loan is a Significant  Modification  Loan,  and (ii) that the
Significant Modification Loan will be entered into on the date of such repurchase.

         (c) No later than the fourth  Business  Day prior to each  Payment  Date,  Thornburg  will  provide to the
Master Servicer a list  identifying all Mortgage Loans that became  Converted  Mortgage Loans or Modified  Mortgage
Loans during the related Due Period.  On the third  Business Day prior to each Payment  Date,  provided that it has
received such list from Thornburg,  the Master Servicer shall prepare and provide to TMI a Converted  Mortgage Loan
Schedule and a Modified  Mortgage  Loan  Schedule  with  respect to such Due Period.  No later than 1:00 PM Eastern
Time on the second  Business Day prior to each Payment Date, TMI shall  purchase each  Converted  Mortgage Loan and
Modified  Mortgage Loan, to the extent  specified in a Converted  Mortgage Loan Schedule or Modified  Mortgage Loan
Schedule  delivered to it by the Master  Servicer for such Payment Date, at the applicable  Purchase Price for each
such Converted  Mortgage Loan or Modified Mortgage Loan, as applicable,  and shall remit such Purchase Price to the
Master Servicer for deposit in the Collection Account.

         (d)      If at any time  Thornburg,  the Seller or TMI,  as  applicable,  remits to the Master  Servicer a
payment for deposit in the  Collection  Account  covering the amount of the Purchase  Price for a Mortgage  Loan of
the type set forth in clauses  (a),  (b) or (c) above,  as  applicable,  and  Thornburg,  the  Seller,  or TMI,  as
applicable,  provides to the  Indenture  Trustee a  certification  signed by a Servicing  Officer  stating that the
amount of such payment has been deposited in the Collection  Account,  then the Indenture Trustee shall execute the
assignment  of such Mortgage  Loan at the request of  Thornburg,  the Seller or TMI without  recourse to Thornburg,
the Seller or TMI, as applicable,  which shall succeed to all the Issuer's  and/or the Indenture  Trustee's  right,
title  and  interest  in and to  such  Mortgage  Loan,  and all  security  and  documents  relative  thereto.  Such
assignment  shall be an assignment  outright and not for  security.  Thornburg,  the Seller or TMI, as  applicable,
will thereupon own such Mortgage Loan, and all such security and documents,  free of any further  obligation to the
Issuer, the Indenture Trustee or the Securityholders with respect thereto.

         SECTION 3.26.  Realization upon Troubled Mortgage Loans.

         The Master  Servicer  shall have the right to cause a Servicer to sell or work out any Mortgage Loan as to
which the Master Servicer  reasonably  believes that default in payment is likely,  provided,  however,  that, with
respect  to any such sale of a Mortgage  Loan by a  Servicer,  the  related  sale  price  shall be no less than the
Scheduled  Principal Balance of such Mortgage Loan as of the last day of the Due Period  immediately  preceding the
date of such sale plus  accrued  interest  thereon  through such sale date.  Any and all proceeds  from such a sale
shall be deemed to be  Liquidation  Proceeds  hereunder  and any such  Mortgage  Loan  which has been sold shall be
deemed a Liquidated Mortgage Loan hereunder.

         SECTION 3.27.  Closing Certificate and Opinion.

         On or before the Closing  Date,  the Master  Servicer  shall cause to be delivered to the  Depositor,  the
Initial Seller,  the Seller,  the Issuer and the Indenture  Trustee,  and Bear Stearns &amp; Co. an Opinion of Counsel,
dated the Closing Date, in form and substance  reasonably  satisfactory  to the Depositor,  Bear Stearns &amp; Co., the
Initial Seller and the Seller as to the due  authorization,  execution and delivery of this Agreement by the Master
Servicer and the enforceability thereof.

         SECTION 3.28.  Liabilities of the Master Servicer.

         The  Master  Servicer  shall be liable  in  accordance  herewith  only to the  extent  of the  obligations
specifically imposed upon and undertaken by it herein.

         SECTION 3.29.  Merger or Consolidation of the Master Servicer.

         (a)  The Master  Servicer  will keep in full force and effect its  existence,  rights and  franchises as a
corporation  under the laws of the state of its  incorporation,  and will obtain and preserve its  qualification to
do business as a foreign  corporation in each jurisdiction in which such  qualification is or shall be necessary to
protect the validity and  enforceability  of this  Agreement,  the  Securities or any of the Mortgage  Loans and to
perform its duties under this Agreement.

         (b)  Any  Person  into  which  the  Master  Servicer  may be merged or  consolidated,  or any  corporation
resulting  from any  merger  or  consolidation  to which  the  Master  Servicer  shall  be a party,  or any  Person
succeeding  to the  business of the Master  Servicer,  shall be the  successor  of the Master  Servicer  hereunder,
without the  execution  or filing of any paper or further act on the part of any of the  parties  hereto,  anything
herein to the contrary notwithstanding.

         SECTION  3.30.  Indemnification  of the Initial  Seller,  the Seller,  the  Indenture  Trustee,  the Owner
                         Trustee, the Master Servicer and the Securities Administrator.

         (a)  In addition to any indemnity  required  pursuant to Section 3.22 hereof,  the Master  Servicer agrees
to indemnify  the  Indemnified  Persons  for, and to hold them  harmless  against,  any loss,  liability or expense
(except as otherwise provided herein with respect to expenses)  (including  reasonable legal fees and disbursements
of counsel)  incurred on their part that may be sustained in connection  with,  arising out of, or relating to this
Agreement or the Securities (i) related to the Master  Servicer's  failure to perform its duties in compliance with
this  Agreement  (except as any such loss,  liability or expense shall be otherwise  reimbursable  pursuant to this
Agreement) or (ii) incurred by reason of the Master Servicer's willful  misfeasance,  bad faith or gross negligence
in the  performance of duties  hereunder or by reason of reckless  disregard of obligations  and duties  hereunder,
provided,  in each case,  that with  respect to any such claim or legal action (or pending or  threatened  claim or
legal  action),  an  Indemnified  Person shall have given the Master  Servicer  and the  Depositor  written  notice
thereof  promptly  after such  Indemnified  Person shall have with respect to such claim or legal action  knowledge
thereof.  The Indemnified  Person's failure to give such notice shall not affect the Indemnified  Person's right to
indemnification  hereunder.  This indemnity shall survive the resignation or removal of the Indenture Trustee,  the
Owner Trustee, the Master Servicer or the Securities Administrator and the termination of this Agreement.

         (b)  The  Issuer  will  indemnify  any  Indemnified  Person  for any loss,  liability  or  expense  of any
Indemnified Person not otherwise indemnified by the Master Servicer as referred to in Subsection (a) above.

         (c)  In addition to any indemnity required pursuant to Section 3.22 hereof,  the Securities  Administrator
agrees to  indemnify  the  Indemnified  Persons  (other than the  Securities  Administrator)  for, and to hold them
harmless  against,  any loss,  liability or expense (except as otherwise  provided herein with respect to expenses)
(including  reasonable  legal fees and  disbursements  of counsel)  incurred on their part (i) in connection  with,
arising out of, or relating to the  Securities  Administrator's  failure to file any  Exchange Act report which the
Securities  Administrator  is  responsible  for  filing in  accordance  with  Section  3.19,  (ii) by reason of the
Securities  Administrator's  negligence or willful  misconduct in the performance of such  obligations  pursuant to
Section 3.19 or (iii) by reason of the Securities  Administrator's  reckless disregard of such obligations pursuant
to Section  3.19,  provided,  in each case,  that with  respect  to any such claim or legal  action (or  pending or
threatened  claim or legal action),  an Indemnified  Person shall have given the Securities  Administrator  written
notice  thereof  promptly  after such  Indemnified  Person  shall have with  respect to such claim or legal  action
knowledge  thereof.  The  Indemnified  Person's  failure  to give such  notice  shall not  affect  the  Indemnified
Person's  right to  indemnification  hereunder.  This  indemnity  shall survive the  resignation  or removal of the
Indenture Trustee,  the Owner Trustee,  the Master Servicer or the Securities  Administrator and the termination of
this Agreement.

         SECTION 3.31.  Limitations on Liability of the Master  Servicer and Others;  Indemnification  of Indenture
                        Trustee and Others.

         Subject to the  obligation  of the Master  Servicer  to  indemnify  the  Indemnified  Persons  pursuant to
Section 3.30:

         (a)  Neither the Master  Servicer nor any of the  directors,  officers,  employees or agents of the Master
Servicer  shall  be  under  any  liability  to  the  Indemnified  Persons,   the  Depositor,   the  Issuer  or  the
Securityholders  for taking any action or for  refraining  from  taking any action in good faith  pursuant  to this
Agreement,  or for  errors in  judgment;  provided,  however,  that this  provision  shall not  protect  the Master
Servicer or any such Person  against  any breach of  warranties  or  representations  made herein or any  liability
which would otherwise be imposed by reason of such Person's willful  misfeasance,  bad faith or gross negligence in
the performance of duties or by reason of reckless disregard of obligations and duties hereunder.

         (b)  The Master Servicer and any director,  officer,  employee or agent of the Master Servicer may rely in
good faith on any document of any kind prima facie  properly  executed and submitted by any Person  respecting  any
matters arising hereunder.

         (c)  The Master  Servicer,  the Owner  Trustee (in its  individual  capacity  and as Owner  Trustee),  the
Indenture Trustee (in its individual  corporate capacity and as Indenture  Trustee),  the Custodian  (including for
such purpose,  the Indenture  Trustee acting in its capacity as Custodian) and any director,  officer,  employee or
agent of the Master  Servicer,  the Owner Trustee,  the Indenture  Trustee or the Custodian shall be indemnified by
the Issuer and held harmless  thereby against any loss,  liability or expense (except as otherwise  provided herein
with respect to expenses)  (including  reasonable legal fees and  disbursements of counsel)  incurred on their part
that may be sustained in connection  with,  arising out of, or relating to, this  Agreement,  the Securities or any
Servicing  Agreement  or the  transactions  contemplated  hereby or  thereby  (except,  with  respect to the Master
Servicer,  to the extent that the Master Servicer is indemnified by the Servicer  thereunder),  other than (i) with
respect to the Master Servicer only, any such loss,  liability or expense related to the Master Servicer's  failure
to perform its duties in compliance  with this  Agreement or (ii) with respect to the Master  Servicer or Custodian
only, any such loss,  liability or expense incurred by reason of the Master  Servicer's or the Custodian's  willful
misfeasance,  bad  faith or gross  negligence  in the  performance  of its own  duties  hereunder  or by  reason of
reckless disregard of its own obligations and duties hereunder or under a custodial agreement.

         (d)  The Master  Servicer  shall not be under any  obligation to appear in,  prosecute or defend any legal
action that is not  incidental  to its duties  under this  Agreement  and that in its opinion may involve it in any
expense or liability;  provided,  however,  the Master  Servicer may in its  discretion,  undertake any such action
which it may deem  necessary or desirable  with respect to this  Agreement and the rights and duties of the parties
hereto and the interests of the Issuer and the  Securityholders  hereunder.  In such event,  the legal expenses and
costs of such  action and any  liability  resulting  therefrom  shall be  expenses,  costs and  liabilities  of the
Issuer,  and the Master  Servicer  shall be entitled to be  reimbursed  therefor out of the  Collection  Account as
provided by Section  4.03.  Nothing in this  Subsection  3.31(d) shall affect the Master  Servicer's  obligation to
supervise,  or to take such actions as are necessary to ensure,  the servicing and  administration  of the Mortgage
Loans pursuant to Subsection 3.01(a).

         (e)  In taking or  recommending  any course of action  pursuant  to this  Agreement,  unless  specifically
required to do so pursuant to this  Agreement,  the Master  Servicer  shall not be required to  investigate or make
recommendations  concerning  potential  liabilities  which the  Issuer  might  incur as a result of such  course of
action by reason of the condition of the  Mortgaged  Properties  but shall give notice to the Indenture  Trustee if
it has notice of such potential liabilities.

         (f)  The  Master  Servicer  shall not be  liable  for any acts or  omissions  of any  Servicer,  except as
otherwise expressly provided herein.

         SECTION 3.32.  Master Servicer Not to Resign.

         Except as provided in Section 3.34, the Master  Servicer shall not resign from the  obligations and duties
hereby imposed on it except upon a determination  that any such duties  hereunder are no longer  permissible  under
applicable law and such  impermissibility  cannot be cured.  Any such  determination  permitting the resignation of
the Master  Servicer  shall be  evidenced by an  Independent  Opinion of Counsel  (delivered  at the expense of the
Master  Servicer) to such effect  delivered to the Indenture  Trustee.  No such  resignation by the Master Servicer
shall become effective until the Indenture  Trustee or a successor to the Master Servicer  reasonably  satisfactory
to the  Indenture  Trustee  shall have  assumed the  responsibilities  and  obligations  of the Master  Servicer in
accordance  with Section 7.02 hereof.  The Indenture  Trustee shall notify each Rating Agency of the resignation of
the Master Servicer.

         SECTION 3.33.  Successor Master Servicer.

         In connection  with the  appointment of any successor  master  servicer or the assumption of the duties of
the Master  Servicer,  the Indenture  Trustee may make such  arrangements  for the  compensation  of such successor
master servicer out of payments on the Mortgage Loans as the Indenture  Trustee and such successor  master servicer
shall agree which in no case shall  exceed the Master  Servicing  Fee,  plus the  portion of  investment  income on
amounts  on  deposit  in the  Collection  Account  to which the  Master  Servicer  is  entitled  hereunder.  If the
successor  master servicer does not agree that the proposed  compensation  is fair, such successor  master servicer
shall  obtain two  quotations  of market  compensation  from third  parties  actively  engaged in the  servicing of
single-family  mortgage  loans;  provided,  however,  that  Thornburg,  as a Servicer of a portion of the  Mortgage
Loans,  shall have the right, but not the obligation,  to be appointed  successor master servicer in the event that
the Indenture  Trustee,  in its sole  discretion,  decides not to assume the duties of the Master Servicer  itself;
and  provided,  further,  that each Rating  Agency  shall  confirm in writing that any  appointment  of a successor
Master  Servicer  (other than the Indenture  Trustee) will not result in a downgrade in the then current  rating of
any Class of Notes.

         SECTION 3.34.  Sale and Assignment of Master Servicing.

         The Master  Servicer  may sell and assign its rights  and  delegate  its duties and  obligations  in their
entirety as Master  Servicer  under this  Agreement,  with the written  consent of  Thornburg  in its capacity as a
Servicer of a portion of the Mortgage Loans,  to be given in its sole  discretion,  and provided  further that: (i)
the  purchaser  or  transferee  accepting  such  assignment  and  delegation  (a) shall be a Person  which shall be
qualified  to service  mortgage  loans for Fannie Mae or Freddie  Mac;  (b) shall have a net worth of not less than
$10,000,000  (unless  otherwise  approved  by each Rating  Agency  pursuant  to clause  (ii)  below);  (c) shall be
reasonably  satisfactory  to Thornburg and the Indenture  Trustee (as evidenced in writing  signed by Thornburg and
the  Indenture  Trustee);  and (d) shall execute and deliver to the  Indenture  Trustee an  agreement,  in form and
substance  reasonably  satisfactory  to the Indenture  Trustee,  which contains an assumption by such Person of the
due and punctual  performance  and  observance  of each covenant and condition to be performed or observed by it as
master  servicer  under  this  Agreement,  any  custodial  agreement  from and  after  the  effective  date of such
agreement;  (ii) each Rating Agency shall be given prior written  notice of the identity of the proposed  successor
to the  Master  Servicer  and each  Rating  Agency's  ratings  of the  Notes in  effect  immediately  prior to such
assignment,  sale and  delegation  will not be downgraded,  qualified or withdrawn as a result of such  assignment,
sale and  delegation,  as evidenced by a letter to such effect  delivered to the Master  Servicer and the Indenture
Trustee;  and (iii) the Master Servicer  assigning and selling the master  servicing shall deliver to the Indenture
Trustee an  Officer's  Certificate  and an  Independent  Opinion of Counsel,  (delivered  at the Master  Servicer's
expense) each stating that all  conditions  precedent to such action under this  Agreement  have been completed and
such action is  permitted  by and complies  with the terms of this  Agreement.  No such  assignment  or  delegation
shall affect any liability of the Master Servicer arising prior to the effective date thereof.

                                                    ARTICLE IV

                                                     ACCOUNTS

         SECTION 4.01.  Servicing Accounts.

         (a)  The Master  Servicer  shall enforce the  obligation of each Servicer to establish and maintain one or
more custodial  accounts (the "Servicing  Accounts") in accordance with the applicable  Servicing  Agreement,  with
records to be kept with respect  thereto on a Mortgage Loan by Mortgage Loan basis,  into which  accounts  shall be
deposited  within 48 hours (or as of such other time specified in the related  Servicing  Agreement) of receipt all
collections  of  principal  and interest on any  Mortgage  Loan and with respect to any REO Property  received by a
Servicer,  including Principal  Prepayments,  Insurance Proceeds,  Liquidation Proceeds,  Subsequent Recoveries and
advances  made  from the  Servicer's  own funds  (less,  in the case of each  Servicer,  the  applicable  servicing
compensation,  in whatever  form and amounts as  permitted by the  applicable  Servicing  Agreement)  and all other
amounts to be deposited in each such  Servicing  Account.  The Servicer is hereby  authorized  to make  withdrawals
from and deposits to the related  Servicing  Account for purposes  required or permitted by this  Agreement and the
applicable  Servicing  Agreement.  For the purposes of this Agreement,  Servicing  Accounts shall also include such
other accounts as the Servicer  maintains for the escrow of certain  payments,  such as taxes and  insurance,  with
respect to certain  Mortgaged  Properties.  Each Servicing  Agreement sets forth the criteria for the  segregation,
maintenance and investment of each related Servicing  Account,  the contents of which are acceptable to the parties
hereto as of the date hereof and changes to which  shall not be made  unless  such  changes are made in  accordance
with the provisions of Section 12.01 hereof.

         (b)  [Reserved];

         (c)  To the extent  provided  in the related  Servicing  Agreement  and subject to this  Article IV, on or
before each  Servicer  Remittance  Date,  each  Servicer  shall  withdraw or shall cause to be  withdrawn  from the
related  Servicing  Accounts  and shall  immediately  deposit or cause to be deposited  in the  Collection  Account
amounts  representing  the following  collections and payments (other than with respect to principal of or interest
on the  Mortgage  Loans due on or before  the  Cut-off  Date)  with  respect  to each of the  Mortgage  Loans it is
servicing:

                 (i) Monthly  Payments on the Mortgage Loans received or any related  portion  thereof  advanced by
     the Servicers  pursuant to the Servicing  Agreements  which were due on or before the related Due Date but net
     of the amount thereof comprising the Servicing Fees;

                 (ii)Principal  Prepayments  in full and any  Liquidation  Proceeds  received by the Servicers with
     respect to such Mortgage Loans in the related  Prepayment  Period,  with interest to the date of prepayment or
     liquidation,  net of the amount thereof comprising the Servicing Fees and any Subsequent  Recoveries  received
     in the related Prepayment Period;

                 (iii)     Principal  Prepayments  in part received by the Servicers for such Mortgage Loans in the
     related Prepayment Period;

                 (iv)Prepayment  Penalty  Amounts,  if any,  and  only if  required  under  the  related  Servicing
     Agreement; and

             (v)     any amount to be used as a  delinquency  advance or to pay any  Interest  Shortfalls,  in each
     case, as required to be paid under the related Servicing Agreement.

         (d)  Withdrawals  may be made from a Servicing  Account  only to make  remittances  as provided in Section
4.01(c),  4.02 and 4.03; to reimburse the Master  Servicer or a Servicer for Advances  which have been recovered by
subsequent  collection from the related  Mortgagor;  to remove amounts deposited in error; to remove fees,  charges
or other such amounts  deposited on a temporary  basis; or to clear and terminate the account at the termination of
this  Agreement in accordance  with Section 10.01.  As provided in Sections  4.01(c) and 4.02(b),  certain  amounts
otherwise due to the Servicers may be retained by them and need not be deposited in the Collection Account.

         Notwithstanding  anything  herein to the  contrary,  the  Master  Servicer  shall not be  responsible  for
verifying the accuracy of any Prepayment Penalty.

         SECTION 4.02.  Collection Account.

         (a)  The  Securities   Administrator   shall  establish  and  maintain  in  the  name  of  the  Securities
Intermediary  for the  benefit of the  Indenture  Trustee  and the  Securityholders,  the  Collection  Account as a
segregated  account or accounts,  each of which shall be an Eligible  Account.  If an existing  Collection  Account
ceases to be an Eligible Account,  the Securities  Administrator  shall establish a new Collection  Account that is
an  Eligible  Account  within  ten (10) days and  transfer  all funds and  investment  property  on deposit in such
existing  Collection Account into the new Collection  Account.  So long as Wells Fargo shall act as both the Master
Servicer  and the  Securities  Administrator,  the  Collection  Account may be a  sub-account  of the Note  Payment
Account.  To the extent that the  Collection  Account is not a  sub-account  of the Note Payment  Account,  on each
Deposit  Date,  the  Securities  Administrator  shall  withdraw from the  Collection  Account and remit to the Note
Payment  Account the Available  Funds for the related  Payment Date, to the extent received by it or required to be
funded by the Master  Servicer.  The  Collection  Account  shall  constitute  an account of the  Indenture  Trustee
segregated on the books of the Securities  Intermediary  and held by the Securities  Administrator  in trust in its
Corporate Trust Office,  and the Collection  Account and the funds  deposited  therein shall not be subject to, and
shall be protected from, all claims,  liens,  and  encumbrances  of any creditors or depositors of the Issuer,  the
Indenture Trustee, the Securities  Administrator,  the Securities Intermediary or the Master Servicer (whether made
directly,  or indirectly  through a liquidator or receiver of the Issuer,  the Indenture  Trustee,  the  Securities
Administrator,  the  Securities  Intermediary  or the  Master  Servicer).  The amount at any time  credited  to the
Collection  Account  shall be (i) fully  insured  by the FDIC to the  maximum  coverage  provided  thereby  or (ii)
invested by the  Securities  Administrator,  in Permitted  Investments,  in accordance  with Section  4.02(c).  All
Permitted  Investments  shall mature or be subject to  redemption  or  withdrawal  on or before,  and shall be held
until,  the immediately  succeeding  Deposit Date.  With respect to the Collection  Account and the funds deposited
therein,  the  Securities  Administrator  shall take such action as may be  necessary to ensure that the Issuer and
the  Securityholders  shall be entitled  to the  priorities  afforded  to such an account  (in  addition to a claim
against the estate of the  Securities  Administrator,  the  Securities  Intermediary  or the Indenture  Trustee) as
provided by 12 U.S.C. § 92a(e),  and applicable  regulations  pursuant  thereto,  if applicable,  or any applicable
comparable  state statute  applicable to state  chartered  banking  corporations,  if  applicable.  The  Securities
Administrator,  the Indenture  Trustee or their affiliates are permitted to receive  additional  compensation  that
could be deemed to be in the their economic  self-interest  for (i) serving as investment  adviser,  administrator,
servicing  agent,  custodian or  sub-custodian  with respect to certain of the  Permitted  Investments,  (ii) using
affiliates to effect  transactions in certain  Permitted  Investments  and (iii) effecting  transactions in certain
Permitted  Investments.  The Master  Servicer  and the  Securities  Administrator  will  deposit in the  Collection
Account as  identified  by the Master  Servicer  or the  Securities  Administrator  and as  received  by the Master
Servicer or the Securities Administrator, the following amounts:

                 (i) any amounts withdrawn from a Servicing Account pursuant to Section 4.01(c);

                 (ii)any  Advance  and any  Compensating  Interest  Payments  required  to be  made  by the  Master
     Servicer to the extent required but not made by a Servicer;

                 (iii)     any Insurance  Proceeds,  Liquidation  Proceeds or Subsequent  Recoveries received by or
     on behalf of the Master Servicer or which were not deposited in a Servicing Account;

                 (iv)the Purchase Price with respect to any Mortgage  Loans  purchased by the Initial Seller or the
     Seller pursuant to Section 2.04 of this Agreement,  any Substitution  Adjustments  pursuant to Section 2.04 of
     this Agreement,  the Purchase Price with respect to any Mortgage Loans  purchased by Thornburg,  the Seller or
     TMI  pursuant to Section  3.25,  and all  proceeds of any  Mortgage  Loans or property  acquired  with respect
     thereto repurchased by Thornburg (or its assignee) or the Master Servicer pursuant to Section 10.01;

                 (v) any amounts  required to be  deposited  with respect to losses on  investments  of deposits in
     the Collection Account; and

                 (vi)any  other  amounts  received  by or on  behalf  of the  Master  Servicer  or  the  Securities
     Administrator and required to be deposited in the Collection Account pursuant to this Agreement.

         (b)  All amounts deposited to the Collection  Account shall be held by the Securities  Intermediary in the
name of the  Indenture  Trustee in trust for the  benefit  of the  Indenture  Trustee  and the  Securityholders  in
accordance  with the terms and  provisions  of this  Agreement.  The  requirements  for  crediting  the  Collection
Account  shall be  exclusive,  it being  understood  and  agreed  that,  without  limiting  the  generality  of the
foregoing,  payments in the nature of (i) late payment  charges or assumption,  tax service,  statement  account or
payoff,  substitution,  satisfaction,  release  and other  like fees and  charges  (but  including,  in the case of
Thornburg,  all Prepayment Penalty Amounts) and (ii) the items enumerated in Subsections  4.03(a)(i),  (ii), (iii),
(iv), (vi),  (vii), (ix) and (x) and with respect to the Securities  Administrator  item (xi), need not be credited
by the Master  Servicer or the related  Servicer to the Collection  Account.  In the event that the Master Servicer
shall deposit or cause to be deposited to the  Collection  Account any amount not required to be credited  thereto,
the  Securities  Intermediary , upon receipt of a written  request  therefor  signed by a Servicing  Officer of the
Master Servicer,  shall promptly transfer such amount to the Master Servicer,  any provision herein to the contrary
notwithstanding.

         (c)  The amount at any time  credited to the  Collection  Account  shall be  invested,  in the name of the
Securities  Intermediary,  or its nominee,  for the benefit of the Indenture  Trustee and the  Securityholders,  in
Permitted  Investments  as  follows.  All net  earnings  on  Permitted  Investments  shall  be for the  benefit  of
Thornburg,  in its  capacity  as  Servicer,  except  that to the  extent  the  Collection  Account  is treated as a
sub-account  of the Note Payment  Account,  the  investment  income with respect to  investment of the funds in the
Collection  Account  on the  Business  Day  prior to each  Payment  Date  shall be for the  benefit  of the  Master
Servicer.  All Permitted  Investments  made for the benefit of Thornburg shall be made at the written  direction of
Thornburg to the  Securities  Administrator  (or, if no such written  direction is received,  in investments of the
type  specified  in clause  (vi) of the  definition  of  Permitted  Investments),  shall  mature or be  subject  to
redemption  or  withdrawal  on or before,  and shall be held until,  the Business Day prior to the next  succeeding
Deposit Date.  Any and all  investment  earnings from such Permitted  Investments  shall be paid to Thornburg,  and
the risk of loss of  moneys  resulting  from  such  investments  shall  be  borne by and be the risk of  Thornburg.
Thornburg  shall deposit the amount of any such loss in the Collection  Account within two Business Days of receipt
of notification of such loss but not later than the next succeeding Payment Date.

         SECTION 4.03.  Permitted Withdrawals and Transfers from the Collection Account.

         (a)  The Securities  Administrator  will, from time to time on demand of a Servicer,  the Master Servicer,
or for its own  account  as set  forth  below,  make or cause to be made such  withdrawals  or  transfers  from the
Collection  Account,  in the case of a demand by a Servicer,  as the  applicable  Servicer has  designated for such
transfer or withdrawal  pursuant to the applicable  Servicing  Agreement,  or in the case of the Master Servicer as
set forth below in this Section 4.03, or as the  Securities  Administrator  has  determined  to be  appropriate  in
accordance herewith, for the following purposes:

                 (i) to reimburse  the Master  Servicer or any Servicer for any Advance of its own funds or of such
     Servicer's  own funds,  the right of the Master  Servicer  or a Servicer  to  reimbursement  pursuant  to this
     subclause (i) being limited to amounts received on a particular  Mortgage Loan  (including,  for this purpose,
     the Purchase Price therefor,  Insurance  Proceeds and  Liquidation  Proceeds) which represent late payments or
     recoveries of the principal of or interest on such Mortgage Loan respecting which such Advance was made;

                 (ii)to  reimburse  the Master  Servicer or any Servicer  from  Insurance  Proceeds or  Liquidation
     Proceeds  relating to a particular  Mortgage Loan for amounts expended by the Master Servicer or such Servicer
     in good faith in connection  with the  restoration of the related  Mortgaged  Property which was damaged by an
     Uninsured Cause or in connection with the liquidation of such Mortgage Loan;

                 (iii)     to reimburse the Master Servicer or any Servicer from Insurance  Proceeds  relating to a
     particular  Mortgage  Loan for insured  expenses  incurred with respect to such Mortgage Loan and to reimburse
     the  Master  Servicer  or such  Servicer  from  Liquidation  Proceeds  from a  particular  Mortgage  Loan  for
     Liquidation Expenses incurred with respect to such Mortgage Loan;

                 (iv)to pay the Master  Servicer or any Servicer,  as  appropriate,  from  Liquidation  Proceeds or
     Insurance  Proceeds  received in connection  with the liquidation of any Mortgage Loan, the amount which it or
     such  Servicer  would have been  entitled to receive  under  subclause  (viii) of this  Subsection  4.03(a) as
     servicing  compensation  on account of each  defaulted  Monthly  Payment  on such  Mortgage  Loan if paid in a
     timely manner by the related Mortgagor;

                 (v) to pay the Master  Servicer or any  Servicer  from the Purchase  Price for any Mortgage  Loan,
     the amount  which it or such  Servicer  would have been  entitled to receive  under  subclause  (viii) of this
     Subsection (a) as servicing compensation;

                 (vi)to reimburse  the Master  Servicer or any Servicer for  servicing  related  advances of funds,
     the right to  reimbursement  pursuant  to this  subclause  being  limited to amounts  received  on the related
     Mortgage Loan (including,  for this purpose,  the Purchase Price therefor,  Insurance Proceeds and Liquidation
     Proceeds) which represent late recoveries of the payments for which such servicing advances were made;

                 (vii)     to reimburse  the Master  Servicer or any  Servicer for any Advance or advance,  after a
     Realized Loss has been allocated  with respect to the related  Mortgage Loan if the Advance or advance has not
     been reimbursed pursuant to clauses (i) and (vi);

                 (viii)    to pay the Master  Servicer its monthly Master  Servicing Fee and any investment  income
     and other additional servicing compensation payable pursuant to Section 3.14;

                 (ix)to  reimburse  the  Master  Servicer  or  the  Securities   Administrator   for  any  expenses
     recoverable by the Master Servicer or the Securities Administrator pursuant to Sections 3.03 and 3.31;

                 (x) to pay Thornburg,  as a Servicer,  any  Prepayment  Penalty  Amounts and any earnings  payable
     pursuant to Section  4.02(c),  and to reimburse or pay any Servicer any such amounts as are due thereto  under
     the  applicable  Servicing  Agreement  and have not been  retained by or paid to the  Servicer,  to the extent
     provided in the related Servicing Agreement;

                 (xi)to reimburse the Indenture  Trustee,  the Owner Trustee and the Securities  Administrator  for
     expenses,  costs and  liabilities  incurred  by or  reimbursable  to it from funds of the Issuer  pursuant  to
     Sections 3.30, 3.31 or 8.05 (including  those related to the Custodian,  to the extent not paid by Thornburg),
     and to reimburse the Indenture  Trustee for any fees,  costs and expenses costs incurred by or reimbursable to
     it pursuant to Section 2.03(a), 7.01(b), 8.02, 8.05 or 8.07, to the extent not otherwise reimbursed to it;

                 (xii)     to make  distributions  of Retained  Interest to the  Retained  Interest  Holder on each
     Payment Date;

                 (xiii)    to pay to Thornburg (in its capacity as a Servicer) all  investment  earnings on amounts
     on deposit in the Collection Account to which it is entitled under Section 4.02(c);

                 (xiv)     to remove amounts deposited in error; and

                 (xv)to clear and terminate the Collection Account pursuant to Section 10.01.

         (b)  In addition,  on or before the Business  Day  immediately  preceding  each Deposit  Date,  the Master
Servicer shall deposit in the Collection  Account (or remit to the Securities  Administrator  for deposit  therein)
any Advances or Compensating  Interest  Payments,  to the extent required but not made by the related  Servicer and
required to be made by the Master Servicer with respect to the Mortgage Loans.

         (c)  The Securities  Administrator or the Master Servicer shall keep and maintain separate accounting,  on
a Mortgage Loan by Mortgage Loan basis, for the purpose of accounting for any payments or  reimbursements  from the
Collection  Account pursuant to subclauses (i) through (vii),  inclusive,  (ix) and (x) or with respect to any such
amounts which would have been covered by such  subclauses had the amounts not been retained by the Master  Servicer
without being deposited in the Collection Account under Section 4.02(b).

         (d)  In order to comply with its duties under the USA PATRIOT Act of 2001,  the  Securities  Administrator
shall obtain and verify certain  information and documentation  from the other parties hereto,  including,  but not
limited to, each such party's name, address and other identifying information.

         SECTION 4.04.  The Note Payment Account.

         The Securities  Administrator shall establish and maintain in the name of the Securities  Intermediary for
the benefit of the  Indenture  Trustee and the  Noteholders,  the Note Payment  Account  which shall be an Eligible
Account.  On each  Deposit  Date,  to the  extent  that the  Collection  Account is not a  sub-account  of the Note
Payment  Account,  the  Securities  Administrator  shall  withdraw,  on behalf of the Indenture  Trustee,  from the
Collection  Account the aggregate  Available  Funds for the related  Payment Date for deposit into the Note Payment
Account.  The Securities  Administrator  shall also deposit into the Note Payment  Account all amounts  received on
behalf of the Issuer under the Yield Maintenance Agreements.

         In the event that the Securities  Administrator  shall remit into the Note Payment  Account any amount not
required  to be  remitted  by it, it may at any time  withdraw  such  amount  from the Note  Payment  Account,  any
provision  herein to the contrary  notwithstanding.  All funds  deposited in the Note Payment Account shall be held
by the Securities  Intermediary in trust for the Noteholders,  until disbursed in accordance with this Agreement or
withdrawn in accordance with Section 5.01.

         If the Note  Payment  Account  ceases  to be an  Eligible  Account,  the  Securities  Administrator  shall
establish  a new Note  Payment  Account  that is an  Eligible  Account  within 10 days and  transfer  all funds and
investment property on deposit in such existing Note Payment Account into such new Note Payment Account.

         All  funds  on  deposit  in the Note  Payment  Account  may be  invested  as  directed  by the  Securities
Administrator  in  Permitted  Investments  in the  name  of the  Securities  Intermediary  for the  benefit  of the
Indenture  Trustee and the  Noteholders  which  shall  mature no later than the Payment  Date,  provided  that such
Permitted  Investment is an  obligation  of the  Securities  Administrator  or otherwise  managed or advised by the
Securities  Administrator or an affiliate  thereof.  All income and gain net of realized losses on such investments
shall be paid to the Master  Servicer as additional  master  servicing  compensation  except to the extent that the
Collection  Account is treated as a sub-account of the Note Payment Account,  in which case only investment  income
earned  on the  Business  Day  prior to each  Payment  Date  shall be paid to the  Master  Servicer  as  additional
servicing  compensation and any remaining  investment income shall be paid to Thornburg in its capacity as Servicer
as  specified in Section  4.02(c).  The amount of any  realized  losses in the Note  Payment  Account in respect of
such investments shall promptly be deposited therein by the Master Servicer.

         The  Indenture  Trustee in its fiduciary  capacity  shall not be liable for the amount of loss incurred in
respect of any  investment  or lack of  investment  of funds  held in the  Collection  Account or the Note  Payment
Account.

         SECTION 4.05.  The Certificate Distribution Account

         The Securities Administrator,  for the benefit of the Certificateholders,  shall establish and maintain in
the name of the Issuer an account (the  "Certificate  Distribution  Account")  entitled  "Certificate  Distribution
Account,  Wells Fargo Bank, N.A., as Securities  Administrator,  in trust for the holders of the Thornburg Mortgage
Securities  Trust  2007-3  Ownership  Certificates.  The  Certificate  Distribution  Account  shall be an  Eligible
Account.  If an  existing  Certificate  Distribution  Account  ceases to be an  Eligible  Account,  the  Securities
Administrator  shall establish a new Certificate  Distribution  Account that is an Eligible  Account within 10 days
and transfer all funds and investment property on deposit in such existing  Certificate  Distribution  Account into
such new Certificate Distribution Account.

         On each Payment Date,  the  Securities  Administrator  shall  withdraw  from the Note Payment  Account all
amounts required to be deposited in the Certificate  Distribution  Account pursuant to Section  5.01(a)(iv)(P)  and
deposit  such  amounts  into  the  Certificate   Distribution   Account.  On  each  Payment  Date,  the  Securities
Administrator,  on behalf of the Issuer,  shall  distribute all amounts on deposit in the Certificate  Distribution
Account in  accordance  with the  provisions  of the Trust  Agreement.  On the Payment Date on which the  aggregate
Class Principal Amount of the Notes is reduced to zero, the Securities  Administrator  shall distribute all amounts
remaining  on deposit in the  Certificate  Distribution  Account in  accordance  with the  provisions  of the Trust
Agreement in order to clear and terminate the Certificate  Distribution  Account in connection with the termination
of this Agreement.

         SECTION 4.06.  The Reserve Fund; The Group 3 Final Maturity Reserve Account

         (a)      The  Securities  Administrator  shall  establish  and  maintain  in the  name  of the  Securities
Intermediary  for the benefit of the  Indenture  Trustee  and the  Noteholders  the Reserve  Fund which shall be an
Eligible  Account.  If an Existing  Reserve Fund ceases to be an Eligible  Account,  the  Securities  Administrator
shall  establish  a new  Reserve  Fund  that is an  Eligible  Account  within  10 days and  transfer  all funds and
investment  property on deposit in the existing  Reserve Fund into such new Reserve Fund.  Amounts  deposited  into
the Reserve Fund pursuant to Section  5.01(f)(i)  may be invested in Permitted  Investments  for the benefit of the
Securityholders  at the written  direction  of Thornburg to the  Securities  Administrator  (or, if no such written
direction  is  received,  in  investments  of the type  specified  in clause (vi) of the  definition  of  Permitted
Investments  (which  investments  shall mature on or before,  and shall be held until, the next succeeding  Payment
Date).  Any risk of loss of moneys  resulting  from such Permitted  Investments  shall be borne by, and be the risk
of Thornburg and  Thornburg  shall deposit the amount of any such loss in the Reserve Fund within two Business Days
of receipt of  notification  of such loss from the  Securities  Administrator,  but not later than the Business Day
prior to the next succeeding  Payment Date. The Securities  Administrator  will keep records by Mortgage Loan Group
of the source of deposits  made into the Reserve  Fund  pursuant to Section  5.01(f)(i).  Amounts on deposit in the
Reserve Fund will be applied in accordance with Section 5.01(f)(i).

         (b)      The  Securities  Administrator  shall  establish  and  maintain  in the  name  of the  Securities
Intermediary  for the benefit of the Indenture  Trustee,  the Group 3  Noteholders  and the  Certificateholders  an
account (the "Group 3 Final Maturity  Reserve  Account") which shall be an Eligible  Account.  If an existing Group
3 Final Maturity Reserve Account ceases to be an Eligible Account,  the Securities  Administrator shall establish a
new Group 3 Final  Maturity  Reserve  Account  that is an Eligible  Account  within ten (10) days and  transfer all
funds and  investment  property on deposit in such existing Group 3 Final  Maturity  Reserve  Account into such new
Group 3 Final  Maturity  Reserve  Account.  The  Securities  Administrator  shall  deposit  into the  Group 3 Final
Maturity  Reserve  Account the Group 3 Final Maturity  Reserve  Amount  pursuant to Section  5.01(a)(iii)(A)  . The
Securities  Administrator  shall distribute the funds in the Group 3 Final Maturity Reserve Account pursuant to the
priorities  set forth in Section  5.01(a) (vi).  Amounts on deposit in the Group 3 Final Maturity  Reserve  Account
may be  invested  in  Permitted  Investments  by the  Securities  Administrator  for  the  benefit  of the  Group 3
Noteholders  at the  written  direction  of  Thornburg  (or if no such  written  instructions  are  received by the
Securities  Administrator from Thornburg,  in investments of the type specified in clause (vi) of the definition of
Permitted  Investments),  which investments shall mature on or before,  and shall be held until the next succeeding
Payment Date. Any investment  earning on such  Permitted  Investments  shall remain on deposit in the Group 3 Final
Maturity  Reserve  Account and be distributed in accordance  with the priorities set forth in Section  5.01(a)(vi).
Any risk of loss of  monies  resulting  from such  Permitted  Investments  shall be borne  by,  and be the risk of,
Thornburg and Thornburg  shall deposit the amount of any such loss into the Group 3 Final Maturity  Reserve Account
within two  Business  Days of receipt of  notification  of such loss by the  Securities  Administrator,  but in any
event not later than the Business Day prior to the next Payment Date.  Upon the earlier of the  termination  of the
Trust and July 2037 (the Stated  Maturity  Date of the Group 3 Notes),  any amounts  still  remaining on deposit in
the Group 3 Final Maturity  Reserve  Account shall be  distributed  in accordance  with the priorities set forth in
Section 5.01(a) (vi)

         SECTION 4.07.  The Collateral Account

         (a)      The Securities Administrator shall establish and maintain in the name of the Securities
Intermediary for the benefit of the Indenture Trustee and the Noteholders one or more accounts (the "Collateral
Account") which shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from,
and shall not be commingled with, any other monies, including, without limitation, other monies of the Trust held
by the Securities Administrator pursuant to this Agreement.  If an existing Collateral Account ceases to be an
Eligible Account, the Securities Administrator shall establish a new Collateral Account that is an Eligible
Account within ten (10) days and transfer all funds and investment property on deposit in such existing
Collateral Account into such new Collateral Account.  Funds required to be held pursuant to any of the Credit
Support Annexes shall be deposited into the Collateral Account.  Funds posted by the Yield Maintenance
Counterparty (or its credit support provider) in the Collateral Account shall be invested in Permitted
Investments as directed by the Yield Maintenance Counterparty (or its credit support provider) and any investment
earnings on such amounts shall be remitted to the Yield Maintenance Counterparty (or its credit support provider)
pursuant to the terms of the related Credit Support Annex. Neither the Securities Administrator nor the Trust
shall have any liability for any losses incurred on such investments.  In the absence of written instructions
from the Yield Maintenance Counterparty (or its credit support provider) as to the investment of funds in the
Collateral Account, such funds shall remain uninvested.

         (b)      On any Payment Date as to which a shortfall exists with respect to a Yield Maintenance Amount
owed by the Yield Maintenance Counterparty as a result of its failure to make payments pursuant to the related
Yield Maintenance Agreement, amounts necessary to cover such shortfall shall be removed from the Collateral
Account and remitted to the Note Payment Account to be applied, together with Available Funds for the related
Payment Date with respect to the related Mortgage Loan Group, in accordance with the priorities set forth in
Section 5.01(a).  Upon termination of the Trust, any amounts remaining in the Collateral Account shall be
distributed as required pursuant to the terms of the related Credit Support Annex.

         SECTION 4.08.  Control of the Trust Accounts

         (a)  The Depositor, the Issuer and the Indenture Trustee (is hereby directed to and does) hereby appoint
Wells Fargo Bank, N.A., as Securities Intermediary with respect to each of the Trust Accounts, and the Issuer
has, pursuant to the Indenture, granted to the Indenture Trustee, for the benefit of the Noteholders, a security
interest to secure all amounts due Noteholders hereunder in and to the Trust Accounts and the Security
Entitlements to all Financial Assets credited to the Trust Accounts, including without limitation all amounts,
securities, investments, Financial Assets, investment property and other property from time to time deposited in
or credited to the Trust Accounts and all proceeds thereof.  Amounts held from time to time in the Trust Accounts
will continue to be held by the Securities Intermediary for the benefit of the Indenture Trustee, as collateral
agent, for the benefit of the Noteholders.  Upon the termination of the Issuer or the discharge of the Indenture,
the Securities Administrator on behalf of the Indenture Trustee shall inform the Securities Intermediary of such
termination.  By acceptance of their Securities or interests therein, the Securityholders shall be deemed to have
appointed Wells Fargo Bank N.A. as Securities Intermediary.  Wells Fargo Bank N.A. hereby accepts such
appointment as Securities Intermediary;

         (b)  With respect to the Trust Account Property credited to the Trust Accounts, the Securities
Intermediary agrees that:

                  (i)      with respect to any Trust Account Property that is held in deposit accounts, each such
         deposit account shall be subject to the exclusive custody and control of the Securities Intermediary,
         and the Securities Intermediary shall have sole signature authority with respect thereto;

                  (ii)     all assets in the Trust Accounts are agreed by the Securities Intermediary to be
         treated as Financial Assets; and

                  (iii)    any such Trust Account Property that is, or is treated as, a Financial Asset shall be
         physically delivered (accompanied by any required endorsements) to, or credited to an account in the
         name of, the Securities Intermediary or other eligible institution maintaining any Trust Accounts in
         accordance with the Securities Intermediary's customary procedures such that the Securities Intermediary
         or such other institution establishes a Security Entitlement in favor of the Indenture Trustee with
         respect thereto over which the Securities Intermediary or such other institution has Control,

         (c)  The Securities Intermediary hereby confirms that (A) each Trust Account is an account to which
Financial Assets are or may be credited, and the Securities Intermediary shall, subject to the terms of this
Agreement, treat the Indenture Trustee, as collateral agent, and the Securities Administrator on behalf of the
Indenture Trustee as entitled to exercise the rights that comprise any Financial Asset credited to any Trust
Account, (B) all Trust Account Property in respect of any Trust Account will be promptly credited by the
Securities Intermediary to the applicable account, and (C) all securities or other property underlying any
Financial Assets credited to any Trust Account shall be registered in the name of the Securities Intermediary,
endorsed to the Securities Intermediary or in blank or credited to another securities account maintained in the
name of the Securities Intermediary and in no case will any Financial Asset credited to any Trust Account be
registered in the name of the Issuer, payable to the order of the Issuer or specially endorsed to the Issuer,
except to the extent the foregoing have been specially endorsed to the Securities Intermediary or in blank.

         (d)  The Securities Intermediary hereby agrees that each item of property (whether investment property,
Financial Asset, security, instrument or cash) credited to any Trust Account shall be treated as a Financial
Asset.

         (e)  If at any time the Securities Intermediary shall receive an Entitlement Order from the Indenture
Trustee or from the Securities Administrator on its behalf directing transfer or redemption of any Financial
Asset relating to any Trust Account, the Securities Intermediary shall comply with such Entitlement Order without
further consent by the Issuer, the Securities Administrator or any other Person.  If at any time the Indenture
Trustee or Securities Administrator on its behalf notifies the Securities Intermediary in writing that the Issuer
has been terminated or the Indenture discharged in accordance herewith and with the Trust Agreement or the
Indenture, as applicable, and the security interest granted pursuant to the Indenture has been released, then
thereafter if the Securities Intermediary shall receive any order from the Issuer directing transfer or
redemption of any Financial Asset relating to any Trust Account, the Securities Intermediary shall comply with
such Entitlement Order without further consent by the Indenture Trustee or any other Person.

         (f)  In the event that the Securities Intermediary has or subsequently obtains by agreement, operation
of law or otherwise a security interest in any Trust Account or any Financial Asset credited thereto, the
Securities Intermediary hereby agrees that such security interest shall be subordinate to the security interest
of the Indenture Trustee.  The Financial Assets credited to the Trust Accounts will not be subject to deduction,
set-off, banker's lien, or any other right in favor of any Person other than the Indenture Trustee (except that
the Securities Intermediary may set-off the face amount of any checks which have been credited to any Trust
Account but are subsequently returned unpaid because of uncollected or insufficient funds).

         (g)  There are no other agreements entered into between the Securities Intermediary in such capacity and
the Depositor or the Issuer with respect to any Trust Account.  In the event of any conflict between this
Agreement (or any provision of this Agreement) and any other agreement now existing or hereafter entered into,
the terms of this Agreement shall prevail.

         (h)  The rights and powers granted under the Indenture and herein to the Indenture Trustee and the
Securities Administrator on behalf of the Indenture Trustee have been granted in order to perfect its security
interest in the Trust Accounts and the Security Entitlements to the Financial Assets credited thereto, and are
powers coupled with an interest and will neither be affected by the bankruptcy of the Issuer nor by the lapse of
time.  The obligations of the Securities Intermediary hereunder shall continue in effect until the security
interest of the Indenture Trustee in the Trust Accounts, and in such Security Entitlements, has been terminated
pursuant to the terms of this Agreement and the Securities Administrator on behalf of the Indenture Trustee has
notified the Securities Intermediary of such termination in writing.

         (i)  Notwithstanding anything else contained herein, the Issuer agrees that the Trust Accounts will be
established only with the Securities Intermediary or another institution meeting the requirements of this
Section, which by acceptance of its appointment as Securities Intermediary agrees substantially as follows:  (1)
it will comply with Entitlement Orders related to the Trust Accounts issued by the Indenture Trustee, as
collateral agent, or the Securities Administrator acting on its behalf, without further consent by the Issuer;
(2) until termination of the Issuer or discharge of the Indenture, it will not enter into any other agreement
related to such accounts pursuant to which it agrees to comply with Entitlement Orders of any Person other than
the Indenture Trustee, as collateral agent with respect to the Trust Accounts or the Securities Administrator
acting on its behalf; and (3) all assets delivered or credited to it in connection with such Trust Accounts and
all investments thereof will be promptly credited to the applicable account.

         (j)  Notwithstanding the foregoing, the Issuer shall have the power to instruct the Indenture Trustee
and the Securities Administrator, as applicable, to make withdrawals and distributions from the Trust Accounts
for the purpose of permitting the Indenture Trustee and the Securities Administrator, as applicable, to carry out
its duties under the Indenture.

         (k)  The Issuer agrees to take or cause to be taken such further actions, to execute, deliver and file
or cause to be executed, delivered and filed such further documents and instruments (including, without
limitation, any financing statements under the Uniform Commercial Code or this Agreement) as may be necessary to
perfect the interests created by this Section in favor of the Indenture Trustee and otherwise fully to effectuate
the purposes, terms and conditions of this Section.  The Issuer shall promptly execute and deliver to the
Securities Administrator for filing any financing statements, amendments, continuation statements, assignments,
certificates and other documents with respect to such interests and perform all such other acts as may be
necessary in order to perfect or to maintain the perfection of the Indenture Trustee's security interest in the
Trust Account Property.

         In  connection  with the  transactions  contemplated  by the  Operative  Agreements  relating to the Trust
Account Property,  the Issuer authorizes the Securities  Administrator on behalf of the Indenture Trustee,  to file
in any filing office any initial financing  statements,  any amendments to financing  statements,  any continuation
statements, or any other statements or filings described in this Section 5.09.

         None of the  Securities  Intermediary  or any  director,  officer,  employee  or agent  of the  Securities
Intermediary  shall be under any liability to the Indenture  Trustee or the  Noteholders or any other person or for
any action taken,  or not taken,  in good faith pursuant to this  Agreement,  or for errors in judgment;  provided,
however,  that this provision shall not protect the Securities  Intermediary against any liability to the Indenture
Trustee,   the  Issuer  or  the  Noteholders  which  would  otherwise  be  imposed  by  reason  of  the  Securities
Intermediary's  willful  misconduct,  bad faith or  negligence  in the  performance  of its  obligations  or duties
hereunder.  The  Securities  Intermediary  and  any  director,   officer,  employee  or  agent  of  the  Securities
Intermediary  may rely in good faith on any  document of any kind which,  prima  facie,  is properly  executed  and
submitted by any Person respecting any matters arising  hereunder.  The Securities  Intermediary  shall be under no
duty to  inquire  into or  investigate  the  validity,  accuracy  or  content of such  document.  The Issuer  shall
indemnify the Securities  Intermediary for and hold it harmless against any loss,  liability or expense arising out
of or in connection  with this  Agreement and carrying out its duties  hereunder,  including the costs and expenses
of defending  itself against any claim of liability,  except in those cases where the Securities  Intermediary  has
been guilty of bad faith,  negligence  or willful  misconduct.  The  foregoing  indemnification  shall  survive any
termination of this Agreement or the resignation or removal of the Securities Intermediary.

         The  Securities  Intermediary  shall be  entitled  to all of the  protections,  immunities,  benefits  and
indemnities afforded to the Indenture Trustee under Articles VII  and VIII of the Indenture.

                                                     ARTICLE V

                                                   FLOW OF FUNDS

         SECTION 5.01.  Payments.

         (a)  On each Payment  Date,  the  Securities  Administrator  shall  withdraw  funds on deposit in the Note
Payment  Account to the extent of Available  Funds for each Mortgage Loan Group for such Payment Date and, based on
the Payment Date Statement, make the following disbursements and transfers in the following order of priority:

                 (i) from the  Available  Funds for  Mortgage  Loan Group 1 and amounts  received  from the Group 1
     Yield  Maintenance  Agreement  the  following  shall be paid on each  Payment Date in the  following  order of
     priority to the Holders of the Class 1A-1 and Class 1A-2 Notes:

                          (A)       Current  Interest  on the Class 1A-1 and Class  1A-2  Notes for such date,  pro
                                    rata  (based on the  amount of  Current  Interest  to which  each such Class is
                                    entitled); and

                          (B)       principal  in an amount up to the  Senior  Principal  Distribution  Amount  for
                                    Mortgage  Loan Group 1 for that Payment  Date, to the Holders of the Class 1A-1
                                    and Class  1A-2  Notes,  pro rata,  in  proportion  to their  respective  Class
                                    Principal  Amounts,  until the  Class  Principal  Amount of each such  Class is
                                    reduced to zero;

                 (ii)from the  Available  Funds for Mortgage  Loan Group 2 and amounts  received  under the Group 2
     Yield  Maintenance  Agreement  the  following  shall be paid on each  Payment Date in the  following  order of
     priority to the Holders of the Class 2A-1 and Class 2-A2 Notes:

                          (A)       Current  Interest  on the Class 2A-1 and Class 2-A2  Notes,  pro rata (based on
                                    the amount of Current Interest to which each such Class is entitled); and

                          (B)       principal  in an amount up to the  Senior  Principal  Distribution  Amount  for
                                    Mortgage  Loan Group 2 for that Payment  Date, to the Holders of the Class 2A-1
                                    and Class  2-A2  Notes,  pro rata,  in  proportion  to their  respective  Class
                                    Principal  Amounts,  until the  Class  Principal  Amount of each such  Class is
                                    reduced to zero;

                 (iii)     from the  Available  Funds for  Mortgage  Loan Group 3 and  amounts  received  under the
     Group 3 Yield  Maintenance  Agreement the following  shall be paid on each Payment Date in the following order
     of priority to the Holders of the Class 3A-1 and Class 3A-2 Notes:

                           (A)      beginning with the Payment Date in July 2017 and each Payment Date  thereafter,
                                    to the Group 3 Final  Maturity  Reserve  Account,  the  Group 3 Final  Maturity
                                    Reserve Amount;

                           (B)      Current  Interest  on the Class 3A-1 and Class 3A-2  Notes,  pro rata (based on
                                    the amount of Current Interest to which each such Class is entitled); and

                           (C)      principal  in an amount up to the  Senior  Principal  Distribution  Amount  for
                                    Mortgage  Loan Group 3 for that Payment  Date, to the Holders of the Class 3A-1
                                    and Class  3A-2  Notes,  pro rata,  in  proportion  to their  respective  Class
                                    Principal  Amounts,  until the  Class  Principal  Amount of each such  Class is
                                    reduced to zero;

                 (iv)from the  Available  Funds for Mortgage  Loan Group 4 and amounts  received  under the Group 4
     Yield  Maintenance  Agreement  the  following  shall be paid on each  Payment Date in the  following  order of
     priority to the Holders of the Class 4A-1, Class 4A-2, Class 4A-3 and Class 4A-4 Notes:

                           (A)      Current  Interest  on the Class  4A-1,  Class  4A-2,  Class 4A-3 and Class 4A-4
                                    Notes,  pro rata  (based on the amount of Current  Interest  to which each such
                                    Class is entitled); and

                           (B)      principal  in an amount up to the  Senior  Principal  Distribution  Amount  for
                                    Mortgage  Loan Group 4 for that Payment Date, to the Holders of the Class 4A-1,
                                    Class 4A-2,  Class 4A-3 and Class 4A-4 Notes,  pro rata, in proportion to their
                                    respective  Class Principal  Amounts,  until the Class Principal Amount of each
                                    such Class is reduced to zero;

                 (v) from amounts  remaining  after  giving  effect to the payments  specified in  subsections  (i)
     through (iv) above,  the following  amounts  shall be paid to the  Securityholders  in the following  order of
     priority:

                           (A)      to the Holders of the Class A-X Notes, Current Interest for that date;

                           (B)      to the Holders of the Class B-1 Notes, Current Interest for that date;

                           (C)      to the Holders of the Class B-1 Notes,  an amount  allocable to principal equal
                                    to its Pro Rata Share for such  Payment Date until the Class  Principal  Amount
                                    of such Class is reduced to zero;

                           (D)      to the Holders of the Class B-2 Notes, Current Interest for that date;

                           (E)      to the Holders of the Class B-2 Notes,  an amount  allocable to principal equal
                                    to its Pro Rata Share for such  Payment Date until the Class  Principal  Amount
                                    of such Class is reduced to zero;

                           (F)      to the Holders of the Class B-3 Notes, Current Interest for that date;

                           (G)      to the Holders of the Class B-3 Notes,  an amount  allocable to principal equal
                                    to its Pro Rata Share for such  Payment Date until the Class  Principal  Amount
                                    of such Class is reduced to zero;

                           (H)      to the Holders of the Class B-4 Notes, Current Interest for that date;

                           (I)      to the Holders of the Class B-4 Notes,  an amount  allocable to principal equal
                                    to its Pro Rata Share for such  Payment Date until the Class  Principal  Amount
                                    of such Class is reduced to zero;

                           (J)      to the Holders of the Class B-5 Notes Current Interest for that date;

                           (K)      to the Holders of the Class B-5 Notes,  an amount  allocable to principal equal
                                    to its Pro Rata Share for such  Payment Date until the Class  Principal  Amount
                                    of such Class is reduced to zero;

                           (L)      to the Holders of the Class B-6 Notes, Current Interest for that date;

                           (M)      to the Holders of the Class B-6 Notes,  an amount  allocable to principal equal
                                    to its Pro Rata Share for such  Payment Date until the Class  Principal  Amount
                                    of such Class is reduced to zero;

                           (N)      to the Holders of the Offered Notes,  on a pro rata basis (based on the Class A
                                    Available  Funds Cap  Shortfalls  to which  each such Class is  entitled),  any
                                    Class A Available Funds Shortfalls with respect to each such Class;

                           (O)      to the Holders of the Offered Notes,  on a pro rata basis (based on the Class A
                                    Deferred  Amounts to which each such Class is  entitled),  the Class A Deferred
                                    Amounts with respect to each such Class; and

                           (P)      to the Securities  Administrator for deposit into the Certificate  Distribution
                                    Account for  distribution  to  Certificateholders  in accordance with the Trust
                                    Agreement, any Available Funds then remaining,

                 (vi)On the  earlier  of the  Payment  Date in July  2037 and the  termination  of the  Trust,  the
     Securities  Administrator  shall distribute all funds on deposit in the Group 3 Final Maturity Reserve Account
     (including any investment earnings on deposit therein) in the following order of priority:

                           (A)      to  the  Group  3  Notes,  concurrently,  in  proportion  to  their  respective
                                    outstanding  Class  Principal  Amounts,  after giving  effect to all  principal
                                    distributions  made on such  Payment Date  pursuant to Section  5.01(a)(iii)(C)
                                    hereof,  in reduction of their  respective Class Principal  Amounts,  until the
                                    Class Principal Amount of each such Class has been reduced to zero;

                           (B)      to the Group 3 Notes,  to pay any Current  Interest for each such Class, to the
                                    extent  unpaid,  in the manner and in accordance  with the priorities set forth
                                    in Section 5.01(a)(iiii)(B);

                           (C)      to the Group 3 Notes,  to pay any Class A Available  Funds Cap  Shortfalls  for
                                    each such Class,  to the extent  unpaid,  in the manner and in accordance  with
                                    the priorities set forth in Section 5.01(a) (v) (N);

                           (D)      to the  Group 3 Notes,  to pay any  Class A  Deferred  Amounts  for  each  such
                                    Class,  to  the  extent  unpaid,  in the  manner  and in  accordance  with  the
                                    priorities set forth in Section 5.01(a)(v)(O); and

                           (E)      any  remaining  amounts in the Group 3 Final  Maturity  Reserve  Account  after
                                    making  the  payments  set forth in  clauses  (A)  through  (D) above  shall be
                                    distributed to the Securities  Administrator  for deposit into the  Certificate
                                    Distribution Account for distribution to the  Certificateholders  in accordance
                                    with the provisions of the Trust Agreement.

         (b)  Amounts to be paid to the Holders of a Class of Notes shall be payable  with  respect to all Notes of
that Class, pro rata, based on the Note Principal  Amount or Note Notional Amount,  as applicable,  of each Note of
that Class.

         (c)  [Reserved].

         (d)  [Reserved].

         (e)  Notwithstanding  the priority and allocation set forth in Section  5.01(a)(v)  above, if with respect
to any Class of  Subordinate  Notes on any Payment Date the sum of the related Class  Subordination  Percentages of
all Classes of Subordinate  Notes which have a higher numerical Class  designation than such Class (the "Applicable
Credit Support  Percentage")  is less than the Original  Applicable  Credit Support  Percentage for such Class,  no
payment of Principal  Prepayments  or  Subsequent  Recoveries  will be made to any such  Classes  (the  "Restricted
Classes") and the amount of such Principal  Prepayment  otherwise  distributable to the Restricted Classes shall be
distributed to the remaining  Classes of Subordinate  Notes, pro rata, based on the Class Principal  Amounts of the
respective  Classes  immediately  prior to such  Payment  Date and shall be  distributed  in the  sequential  order
provided in Section 5.01(a)(v) above.

         (f)  (i)  Notwithstanding  the priority and allocation set forth in Section  5.01(a)(i) through (v) above,
on each Payment Date prior to the Senior Credit  Support  Depletion  Date but after the date on which the aggregate
Class  Principal  Amount of the Offered  Notes related to a Mortgage Loan Group has been reduced to zero, if either
(i) the  Aggregate  Subordinate  Percentage  on that  Payment Date is less than 200% of the  Aggregate  Subordinate
Percentage as of the Closing Date or (ii) the  outstanding  principal  balance of all Mortgage Loans  delinquent 60
days or more (including  Mortgage Loans in foreclosure and REO Property)  averaged over the prior six months,  as a
percentage of the aggregate  Class  Principal  Amount of the  Subordinate  Notes,  is greater than or equal to 50%,
100% of the amounts  payable to the  Subordinate  Notes (as provided under clauses (2) and (3) of the definition of
Subordinate  Principal  Distribution  Amount with respect to the Mortgage  Loans in the Mortgage Loan Group related
to such retired Class of Offered Notes)  otherwise  distributable  to each Class of  Subordinate  Notes pursuant to
Section  5.01(a)(v),  in reverse order of priority,  shall instead be deposited  into the Reserve Fund.  Amounts on
deposit  in  the  Reserve  Fund  (including  all  net  investment  earnings  from  amounts  invested  in  Permitted
Investments)  will be applied on future  Payment Dates to make  principal  payments on the Offered Notes related to
an  Undercollateralized  Group in the same  amounts and manner  described  in  subsection  (f)(ii) of this  Section
5.01.  If any amounts  remain in the Reserve  Fund after the Class  Principal  Amounts of all of the Offered  Notes
have been reduced to zero,  such amounts shall be allocated to the  Subordinate  Notes in the same  priorities that
the  Subordinate  Principal  Distribution  Amount is  distributed  to such Classes  pursuant to Section  5.01(a)(v)
above;  provided,  however, if after making such payments,  the aggregate Class Principal Amount of the Subordinate
Notes exceeds the Pool Balance,  the Class Principal Amount of the Subordinate  Notes will be reduced by the amount
of such excess in inverse order of priority (i.e.,  beginning with the Class of Subordinate  Notes then outstanding
with the highest numerical Class designation) in accordance with Section 5.03(c).

                  (ii)     On any Payment Date on which any of the Group 1 Notes,  Group 2 Notes,  Group 3 Notes or
         Group 4 Notes constitutes an  Undercollateralized  Group (or Groups), all amounts otherwise  distributable
         as principal on the  Subordinate  Notes,  in reverse  order of priority  (or,  following the Senior Credit
         Support  Depletion Date,  such other amounts  described in the immediately  following  sentence),  will be
         paid as principal  to the Offered  Notes of such  Undercollateralized  Group  pursuant to Section  5.01(a)
         first, up to the Principal  Deficiency Amount for the  Undercollateralized  Group (such  distribution,  an
         "Undercollateralization  Payment")  and  second,  to  pay to  the  Subordinate  Notes  and  the  Ownership
         Certificates  in the same order and priority as provided in Section  5.01(a)(v).  In the event that any of
         the  Group 1 Notes,  Group 2 Notes,  Group 3 Notes or  Group 4 Notes  constitutes  an  Undercollateralized
         Group  (or  Groups)  on  any  Payment  Date  following  the  Senior  Credit  Support  Depletion  Date,  an
         Undercollateralization   Payment  will  be  made  from  the  excess  of  the  Available   Funds  from  the
         Overcollateralized  Group (or Groups)  remaining after all required  amounts have been paid to the related
         Class  or  Classes  of  Offered  Notes  of such  Overcollateralized  Group.  In the  event  there  are two
         Undercollateralized  Groups,  any amounts  paid from the  Overcollateralized  Group will be  allocated  in
         proportion  to the amount of  undercollateralization  for each such  Undercollateralized  Group.  All such
         payments shall be made in accordance with the priorities set forth in Section 5.01(a) above.

         (g)   [Reserved]

         (h)  [Reserved].

         SECTION 5.02.  [Reserved].

         SECTION 5.03.  Allocation of Realized Losses.

         (a)  On or prior to each Determination  Date, the Securities  Administrator shall aggregate the loan-level
information  provided by the Master  Servicer  with respect to the total amount of Realized  Losses,  if any,  with
respect  to the  Mortgage  Loans in each  Mortgage  Loan  Group  for the  related  Payment  Date and  include  such
information in the Payment Date Statement.

         (b)  Realized  Losses with respect to each  Mortgage  Loan Group shall be allocated on any Payment Date as
follows:

                  first,  to  the  Subordinate  Notes  in  reverse  order  of  their  respective   numerical  Class
                  designations  (beginning  with the Class of Subordinate  Notes with the highest  numerical  Class
                  designation) until the Class Principal Amount of each such Class is reduced to zero; and

                  second,  but only to the extent that any  Realized  Losses  remaining  after the  allocations  in
                  clause first exceeds amounts then on deposit in the Reserve Fund for such Payment Date,

                           (A)      with respect to Mortgage Loan Group 1, to the Class 1A-1 Notes and the Class
                  1A-2 Notes, until the Class Principal Amount of such Class is reduced to zero; provided,
                  however, the amounts of any Realized Losses to be so allocated to the Class 1A-1 Notes shall
                  instead be allocated to the Class 1A-2 Notes until the Class Principal Amount of the Class 2A-2
                  Notes has been reduced to zero;

                           (B)      with respect to Mortgage Loan Group 2, to the Class 2A-1 Notes and Class 2A-2
                  Notes, pro rata, until the Class Principal Amount of each such Class is reduced to zero;
                  provided, however, the amount of any Realized Losses to be so allocated to the Class 2A-1 Notes
                  shall instead be allocated to the Class 2A-2 Notes until the Class Principal Amount of the
                  Class A-2B Notes has been reduced to zero;

                           (C)      with respect to Mortgage Loan Group 3, to the Class 3A-1  Notes and Class 3A-2
                  Notes, pro rata, until the Class Principal Amount of each such Class is reduced to zero;
                  provided, however, the amount of any Realized Losses to be so allocated to the Class 3A-1
                  Notes, shall instead be allocated to the Class 3A-2 Notes until the Class Principal Amount of
                  the Class 3A-2 Notes has been reduced to zero; and

                           (D)      with respect to Mortgage Loan Group 4, to the Class 4A-1 Notes, Class 4A-2
                  Notes, Class 4A-3 Notes and Class 4A-4 Notes, pro rata, until the Class Principal Amount of
                  each such Class is reduced to zero; provided, however, the amount of any Realized Losses to be
                  so allocated to the Class 4A-1 Notes, shall instead be allocated to the Class 4A-2 Notes until
                  the Class 4A-2 Notes has been reduced to zero and the amount of any Realized Losses to be so
                  allocated  to the Class 4A-3 Notes shall instead be allocated to the Class 4A-4 Notes until the
                  Class Principal Amount of the Class 4A-4 Notes has been reduced to zero.

         (c)  The Class  Principal  Amount of the Class of  Subordinate  Notes then  outstanding  with the  highest
numerical  Class  designation  shall be reduced on each Payment Date by the amount,  if any, by which the aggregate
of the Class  Principal  Amounts of all  outstanding  Classes of Notes  (after  giving  effect to the  payments  of
principal and the  allocation of Realized  Losses on such Payment Date) exceeds the aggregate of the sum of (i) the
Scheduled  Principal  Balances of all the Mortgage  Loans for the  following  Payment Date and (ii) amounts then on
deposit in the Reserve Fund.

         (d)  Any Realized Loss allocated to a Class of Notes or any reduction in the Class  Principal  Amount of a
Class of Notes pursuant to Section  5.03(b) or (c) shall be allocated  among the Notes of such Class,  pro rata, in
proportion to their respective Note Principal Amounts.

         (e)  Any allocation of Realized  Losses to a Note or any reduction in the Note Principal  Amount of a Note
pursuant  to  Section  5.03(b)  or (c)  shall be  accomplished  by  reducing  the  Note  Principal  Amount  thereof
immediately  following the payments made on the related  Payment Date in  accordance  with the  definition of "Note
Principal Amount."

         SECTION 5.04.  Statements.

         (a)  Two Business Days prior to the applicable  Auction Payment Date, the Securities  Administrator  shall
make available to the Auction  Administrator,  and  concurrently  with each payment to Noteholders,  the Securities
Administrator  shall make available to each Noteholder,  the Seller, the Initial Seller,  the Master Servicer,  the
Indenture Trustee,  the Yield Maintenance  Counterparty and the Rating Agencies,  a statement based, as applicable,
on loan-level  information  provided to it by the Master Servicer and the Servicers (the "Payment Date  Statement")
as to the  payments to be made or made,  as  applicable,  on such  Payment  Date.  Information  in the Payment Date
Statement  relating to or based on amounts to be received under the Yield Maintenance  Agreements shall be based on
information provided by the Yield Maintenance  Counterparty  regarding any Yield Maintenance Amounts required to be
paid by the Yield  Maintenance  Counterparty  for the  related  Payment  Date  pursuant  to the  Yield  Maintenance
Agreements.  The Payment Date Statement shall include the following:

                 (i) the amount of the  payment  made on such  Payment  Date to the  Holders of each Class of Notes
     allocable to principal;

                 (ii)the amount of the  payment  made on such  Payment  Date to the  Holders of each Class of Notes
     allocable to interest;

                 (iii)     the  Senior  Percentage,  Senior  Prepayment  Percentage,   Subordinate  Percentage  and
     Subordinate Prepayment Percentage with respect to each Mortgage Loan Group for the following Payment Date;

                 (iv)the  aggregate  amount of Advances  for the related Due Period and the amount of  unreimbursed
     Advances;

                 (v) each  Mortgage  Loan Group  Balance and related  Available  Funds Cap for each  Mortgage  Loan
     Group at the Close of Business at the end of the related Due Period;

                 (vi)the  aggregate  Principal  Balance  of the 1-Year CMT  Indexed  Mortgage  Loans and 3-Year CMT
     Indexed Mortgage Loans at the Close of Business at the end of the related Due Period;

                 (vii)     the aggregate  Principal  Balance of the 6-Month LIBOR Indexed  Mortgage Loans,  1-Month
     LIBOR Indexed  Mortgage  Loans and 1-Year LIBOR Indexed  Mortgage Loans at the Close of Business at the end of
     the related Due Period;

                 (viii)    the aggregate  Principal  Balance of the 1-Year MTA Indexed  Mortgage Loans at the Close
     of Business at the end of the related Due Period;

                 (ix)the amount of the Master Servicing Fees paid to or retained by the Master Servicer;

                 (x) the  aggregate amount of Servicer Fees paid to or retained by the Servicers;

                 (xi)to the extent such  amounts are paid out of any Trust  Account,  the amount of fees,  expenses
     or  indemnification  amounts paid by the Issuer with an  identification of the general purpose of such amounts
     and the party receiving such amounts;

                 (xii)     for each Mortgage Loan Group, the number,  weighted average  remaining term to maturity,
     weighted  average life and weighted  average Mortgage Rate of the related Mortgage Loans as of the related Due
     Date;

                 (xiii)    the number and aggregate  unpaid  principal  balance of Mortgage Loans, in the aggregate
     and for each  Mortgage  Loan Group,  using the "MBA" method  (a) 30 to 59 days  Delinquent,  (b) 60 to 89 days
     Delinquent,  (c) 90 or more days Delinquent,  (d) as to which foreclosure  proceedings have been commenced and
     (e) in bankruptcy, in each case as of the close of business on the last day of the preceding calendar month;

                 (xiv)     the rolling six-month delinquency rate for that Payment Date;

                 (xv)the total number and  cumulative  principal  balance of all REO  Properties  in each  Mortgage
     Loan Group as of the Close of Business of the last day of the preceding Due Period;

                 (xvi)     the  aggregate  amount of Principal  Prepayments  and  Prepayment  Penalty  Amounts with
     respect to each Mortgage Loan Group made during the related Prepayment Period;

                 (xvii)    the aggregate  amount of Realized  Losses for each  Mortgage  Loan Group and  Subsequent
     Recoveries  incurred  during  the  related  Due  Period  and the  cumulative  amount of  Realized  Losses  and
     Subsequent Recoveries as of such Payment Date;

                 (xviii)   the cumulative amount of Realized Losses for each Mortgage Loan Group;

                 (xix)     the  Realized  Losses and  Subsequent  Recoveries,  if any,  allocated  to each Class of
     Notes on the related Payment Date;

                 (xx)the Class  Principal  Amount of each Class of Notes after giving  effect to any  distributions
     made thereon, on such Payment Date;

                 (xxi)     the Current  Interest in respect of each Class of Notes,  for such  Payment Date and the
     respective  portions  thereof,  if any,  remaining unpaid following the payments made in respect of such Notes
     on such Payment Date;

                 (xxii)    the amount of Deferred  Interest and Net Deferred  Interest  with respect to the Group 1
     Notes;

                 (xxiii)   the Available Funds with respect to each Mortgage Loan Group;

                 (xxiv)    the Note  Interest  Rate for each Class of Notes for such  Payment Date and the level of
     One-Month LIBOR or One-Year LIBOR, as applicable, used to determine the applicable Note Interest Rate;

                 (xxv)     the aggregate  Principal  Balance of Mortgage Loans  purchased  hereunder by the Initial
     Seller,  the Seller or TMI during the  related  Due  Period,  and  indicating  the  Section of this  Agreement
     requiring or allowing the purchase of each such Mortgage Loan;

                 (xxvi)    the amount of any Principal  Deficiency  Amounts or accrued  interest amounts paid to an
     Undercollateralized Group or amounts paid pursuant to Section 5.01(f)(i);

                 (xxvii)   (A) the  amounts  paid to each Class of Offered  Notes  from Yield  Maintenance  Amounts
     received from the Yield  Maintenance  Counterparty  for such period,  expressed as a dollar amount and (B) the
     Yield  Maintenance  Amount and applicable  Strike Rate for each Yield  Maintenance  Agreement for such Payment
     Date;

                 (xxviii)  on the  applicable  Auction  Payment  Date,  the Par Price (as  defined  in the  Auction
     Administration  Agreement)  for each  Class of  Auction  Notes  as  reported  to the  Master  Servicer  by the
     Securities Administrator;

                 (xxix)    the  total  number  of  Mortgage  Loans in the  aggregate  and the  aggregate  Scheduled
     Principal  Balance  in the  aggregate  and  separately  for the Group 1 Mortgage  Loans,  the Group 2 Mortgage
     Loans,  the Group 3 Mortgage  Loans and the Group 4 Mortgage  Loans,  in each case at the close of business at
     the end of the related Due Period;

                 (xxx)     the amount, if any, remaining on deposit in the Reserve Fund; and

                 (xxxi)    the amount, if any, remaining on deposit in the Group 3 Final Maturity Reserve Account.

         The  Securities  Administrator  will make the Payment Date Statement  (and, at its option,  any additional
files containing the same information in an alternative  format)  available each month to  Securityholders  and the
other  parties  to  this  Agreement  via  the  Securities   Administrator's   internet   website.   The  Securities
Administrator's  internet  website  shall  initially  be  located  at  "www.ctslink.com."  Assistance  in using the
website  can be obtained  by calling  the  Securities  Administrator's  customer  service  desk at  1-866-846-4526.
Parties that are unable to use the above  distribution  option are entitled to have a paper copy mailed to them via
first class mail by calling the customer  service desk and  indicating  such. The  Securities  Administrator  shall
have the right to change the way such reports are  distributed in order to make such  distribution  more convenient
and/or more  accessible  to the  parties,  and the  Securities  Administrator  shall  provide  timely and  adequate
notification to all parties regarding any such change.

         In the case of  information  furnished  pursuant to  subclauses  (i) and (ii) above,  the amounts shall be
expressed in a separate  section of the report as a dollar  amount for each Class for each $1,000  original  dollar
amount as of the Cut-Off Date.

         (b)  Within  a  reasonable   period  of  time  after  the  end  of  each  calendar  year,  the  Securities
Administrator  shall,  upon written request,  furnish to each Person who at any time during the calendar year was a
Noteholder,  if requested in writing by such Person,  such  information  as is  reasonably  necessary to provide to
such Person a statement  containing  the  information  set forth in subclauses  (i) and (ii) above,  aggregated for
such  calendar  year or  applicable  portion  thereof  during  which such  Person was a  Noteholder  and such other
customary  information which a Securityholder  reasonably  requests to prepare its tax returns.  Such obligation of
the Securities  Administrator  shall be deemed to have been satisfied to the extent that  substantially  comparable
information  shall be prepared and furnished by the Securities  Administrator  to  Securityholders  pursuant to any
requirements of the Code as are in force from time to time.

         (c)  On each Payment Date,  the  Securities  Administrator  shall supply an  electronic  tape to Bloomberg
Financial Markets,  Inc. in a format acceptable to Bloomberg Financial Markets,  Inc. on a monthly basis, and shall
supply an electronic tape to Loan  Performance and Intex Solutions in a format  acceptable to Loan  Performance and
Intex Solutions on a monthly basis.

         SECTION 5.05.  Remittance Reports; Advances.

         (a)  No later than the second  Business Day following each  Determination  Date, the Master Servicer shall
deliver to the  Securities  Administrator  by  telecopy  or  electronic  mail (or by such other means as the Master
Servicer and the Securities  Administrator  may agree from time to time) the Remittance  Report with respect to the
related  Payment Date.  Not later than the Close of Business New York time three Business Days prior to the related
Payment  Date,  the Master  Servicer  shall  deliver or cause to be delivered to the  Securities  Administrator  in
addition to the  information  provided on the  Remittance  Report,  such other  loan-level  information  reasonably
available  to it with respect to the Mortgage  Loans as the  Securities  Administrator  may  reasonably  require to
perform the calculations necessary to make the payments contemplated by Section 5.01.

         (b)  If the  Monthly  Payment on a  Mortgage  Loan that was due on a related  Due Date and is  delinquent,
other than as a result of  application  of the Relief Act or similar  state or local law, and for which the related
Servicer was required to make an advance pursuant to the related  Servicing  Agreement exceeds the amount deposited
in the  Collection  Account  which  will be used for an advance  with  respect to such  Mortgage  Loan,  the Master
Servicer will deposit in the Collection  Account not later than the Business Day immediately  preceding the related
Payment Date an amount equal to such  deficiency,  net of the Servicing Fee and the Master  Servicing Fee, for such
Mortgage  Loan except to the extent the Master  Servicer  determines  any such  Advance to be  Nonrecoverable  from
Liquidation  Proceeds,  Insurance  Proceeds or future  payments  on the  Mortgage  Loan for which such  Advance was
made.  Subject to the foregoing,  the Master  Servicer  shall continue to make such Advances  through the date that
the related  Servicer is required to do so under its  Servicing  Agreement.  If  applicable,  on the  Business  Day
immediately  preceding the related Payment Date, the Master Servicer shall present an Officer's  Certificate to the
Securities  Administrator  and the  Indenture  Trustee (i) stating  that the Master  Servicer  elects not to make a
Advance in a stated amount and (ii) detailing the reason it deems the advance to be Nonrecoverable.

         SECTION 5.06.  Compensating Interest Payments.

         The amount of the Master  Servicing  Fee payable to the Master  Servicer  in respect of any  Payment  Date
shall be reduced (but not below zero) by the amount of any  Compensating  Interest  Payment for such Payment  Date,
but only to the extent that Interest  Shortfalls  relating to such Payment Date are required to be paid but are not
actually  paid by the related  Servicers  on the  applicable  Servicer  Remittance  Date.  Such amount shall not be
treated as an Advance and shall not be reimbursable to the Master Servicer.

         SECTION 5.07.  [Reserved].

         SECTION 5.08.  [Reserved].

         SECTION 5.09.  Yield Maintenance Amounts.

         (a)  The  Securities  Administrator  is hereby  directed by the Depositor to execute and deliver the Yield
Maintenance  Agreements  on  behalf  of the  Issuer,  for the  benefit  of the  Group 1 Notes  (the  "Group 1 Yield
Maintenance  Agreement"),  the Group 2 Notes (the "Group 2 Yield  Maintenance  Agreement"),  the Group 3 Notes (the
"Group 3 Yield  Maintenance  Agreement")  and for the benefit of the Group 4 Notes (the "Group 4 Yield  Maintenance
Agreement"),  in the forms  presented to it by the  Depositor  and shall have no  responsibility  for the contents,
adequacy or sufficiency of the Yield Maintenance  Agreements,  including,  without limitation,  the representations
and  warranties  contained  therein.  Each Holder of an Offered  Note is deemed,  by  acceptance  of such Note,  to
authorize the Securities Administrator to execute and deliver the Yield Maintenance Agreements.

         (b)  Pursuant  to each  Yield  Maintenance  Agreement,  the  Yield  Maintenance  Counterparty  shall  have
provided the  Securities  Administrator,  the  Indenture  Trustee and the Master  Servicer with notice of the Yield
Maintenance  Amount, if any, to be paid by the Yield Maintenance  Counterparty to the Securities  Administrator for
the  account  of the  Issuer  pursuant  to such  Yield  Maintenance  Agreement  for each  Payment  Date.  Any Yield
Maintenance  Amount  received by the  Securities  Administrator  pursuant  to any Yield  Maintenance  Agreement  in
connection  with each such Payment Date shall be  deposited  into the Note Payment  Account and shall be applied on
each Payment  Date,  together  with  Available  Funds for such date with respect to each  Mortgage  Loan Group,  in
accordance with the priorities set forth in Section 5.01(a).

         SECTION 5.10.  Subsequent Recoveries.

         (a)  The  Class  Principal  Amount  of any  Class of Notes to  which a  Realized  Loss has been  allocated
(including  any such  Class for which  the  related  Class  Principal  Amount  has been  reduced  to zero)  will be
increased up to the amount of Subsequent Recoveries for such Payment Date as follows:

                      (i) first,  to increase  the Class  Principal  Amount of each such Class of Offered  Notes of
         the related  Mortgage Loan Group,  pro rata, up to the amount of Realized Losses  previously  allocated to
         reduce the Class Principal Amount for each such Class, and

                      (ii)second,  to increase the Class Principal Amount of each such Class of Subordinate  Notes,
         in order of  seniority,  up to the amount of  Realized  Losses  previously  allocated  to reduce the Class
         Principal Amount for each such Class.

         (b)  Any increase to the Class  Principal  Amount of a Class of Notes shall  increase  the Note  Principal
Amount of each Note of the related Class pro rata in accordance with the applicable Percentage Interest.

                                                    ARTICLE VI

                                                    [Reserved]

                                                    ARTICLE VII

                                                      DEFAULT

         SECTION 7.01.  Event of Default.

         (a)  If any one of the following events (each, an "Event of Default") shall occur and be continuing:

                 (i) the failure by the Master  Servicer to (A) make any Advance on the  Business  Day  immediately
     preceding  the related  Payment Date or (B) to deposit in the  Collection  Account any deposit  required to be
     made under the terms of this Agreement,  and in either case such failure continues  unremedied for a period of
     three  Business  Days after the date upon  which  written  notice of such  failure,  requiring  the same to be
     remedied,  shall have been given to the Master  Servicer  (or, if  applicable,  such shorter time period as is
     provided in the penultimate sentence of Section 7.01(c)); or

                 (ii)the failure by the Master Servicer duly to observe or perform,  in any material  respect,  any
     other  covenants,  obligations  or agreements  of the Master  Servicer as set forth in this  Agreement,  which
     failure  continues  unremedied  for a period  of 60 days,  in each case  after  the date (A) on which  written
     notice of such  failure,  requiring the same to be remedied,  shall have been given to the Master  Servicer by
     the Indenture Trustee or to the Master Servicer and the Indenture  Trustee by Noteholders  evidencing at least
     25% of the Voting Rights or (B) on which a Servicing  Officer of the Master  Servicer has actual  knowledge of
     such failure (or, in the case of a breach of its obligation  beyond any  applicable  cure period to provide an
     assessment of compliance,  an attestation report or a Sarbanes-Oxley  Certification  pursuant to Sections 3.16
     and 3.18, respectively); or

                 (iii)     the  entry  against  the  Master  Servicer  of a decree or order by a court or agency or
     supervisory  authority  having  jurisdiction  in the premises for the  appointment of a trustee,  conservator,
     receiver or liquidator in any insolvency,  conservatorship,  receivership,  readjustment of debt,  marshalling
     of assets and  liabilities or similar  proceedings,  or for the winding up or liquidation of its affairs,  and
     the continuance of any such decree or order unstayed and in effect for a period of 60 days; or

                 (iv)the Master  Servicer shall  voluntarily go into  liquidation,  consent to the appointment of a
     conservator or receiver or liquidator or similar person in any insolvency,  readjustment of debt,  marshalling
     of assets and  liabilities or similar  proceedings of or relating to the Master  Servicer or of or relating to
     all or substantially all of its property;  or a decree or order of a court or agency or supervisory  authority
     having  jurisdiction  in the premises for the  appointment of a conservator,  receiver,  liquidator or similar
     person  in  any  insolvency,   readjustment  of  debt,  marshalling  of  assets  and  liabilities  or  similar
     proceedings,  or for the winding-up or liquidation of its affairs,  shall have been entered against the Master
     Servicer  and such  decree or order  shall have  remained in force  undischarged,  unbonded or unstayed  for a
     period of 60 days; or the Master  Servicer shall admit in writing its inability to pay its debts  generally as
     they become due, file a petition to take advantage of any  applicable  insolvency or  reorganization  statute,
     make an assignment for the benefit of its creditors or voluntarily suspend payment of its obligations;

         (b)  then,  and in each and every such case,  so long as an Event of Default  shall not have been remedied
within the  applicable  grace  period,  the  Indenture  Trustee  shall,  at the written  direction  of the Majority
Securityholders,  or at its option may, with the consent of Thornburg (not to be unreasonably  withheld), by notice
then given in writing to the Master  Servicer,  terminate all of the rights and  obligations of the Master Servicer
as master  servicer  under  this  Agreement.  Any such  notice to the Master  Servicer  shall also be given to each
Rating Agency,  the Depositor,  the Owner Trustee and the Sellers.  On or after the receipt by the Master  Servicer
(and by the  Indenture  Trustee if such notice is given by the Holders) of such written  notice,  all authority and
power of the Master  Servicer  under this  Agreement,  whether with  respect to the Notes or the Mortgage  Loans or
otherwise,  shall pass to and be vested in the  Indenture  Trustee and the Indenture  Trustee is hereby  authorized
and empowered to execute and deliver, on behalf of the Master Servicer,  as attorney-in-fact or otherwise,  any and
all documents and other  instruments,  and to do or accomplish all other acts or things necessary or appropriate to
effect the  purposes of such notice of  termination,  whether to complete  the  transfer  and  endorsement  of each
Mortgage  Loan and related  documents or  otherwise.  The Master  Servicer  agrees to cooperate  with the Indenture
Trustee  in  effecting  the  termination  of the  responsibilities  and rights of the  Master  Servicer  hereunder,
including,  without limitation,  the delivery to the Indenture Trustee of all documents and records requested by it
to enable it to assume the Master  Servicer's  functions  under this Agreement  within ten Business Days subsequent
to such notice and the transfer  within one Business Day  subsequent  to such notice to the  Indenture  Trustee for
the  administration  by it of all cash  amounts  that  shall at the time be held by the Master  Servicer  and to be
deposited by it in the  Collection  Account,  any REO Account or any Servicing  Account or that have been deposited
by the Master  Servicer  in such  accounts  or  thereafter  received  by the Master  Servicer  with  respect to the
Mortgage Loans or any REO Property  received by the Master Servicer.  All reasonable costs and expenses  (including
attorneys' fees) incurred in connection with  transferring the Master  Servicer's  duties and the Mortgage Files to
the successor  Master Servicer and amending this Agreement to reflect such  succession as Master Servicer  pursuant
to this Section shall be paid by the  predecessor  Master  Servicer (or if the  predecessor  Master Servicer is the
Indenture  Trustee,  the initial Master Servicer) upon  presentation of reasonable  documentation of such costs and
expenses.  The  termination of the rights and  obligations of the Master Servicer shall not affect any liability it
may have incurred prior to such  termination.  To the extent that such costs and expenses of the Indenture  Trustee
are not fully and timely  reimbursed by the predecessor  Master Servicer,  the Indenture  Trustee shall be entitled
to reimbursement of such costs and expenses from the Collection Account.

         (c)  The  Securities  Administrator  shall  not later  than the  close of  business  on the  Business  Day
immediately  preceding the related  Payment Date notify the Indenture  Trustee in writing of the Master  Servicer's
failure  to make any  Advance  required  to be made  under  this  Agreement  on such  date and the  amount  of such
Advance.  By no later than 10:00 A.M.  (Chicago time) on the relevant  Payment Date,  the Securities  Administrator
shall notify the  Indenture  Trustee of the  continuance  of such failure or that the Master  Servicer has made the
Advance,  as the case may be.  Notwithstanding  the terms of the Event of  Default  described  in clause  (i)(A) of
Section  7.01(a),  the Indenture  Trustee,  upon receipt of written  notice on the Payment Date from the Securities
Administrator  of the  continuance of the failure of the Master  Servicer to make an Advance,  shall,  by notice in
writing to the Master  Servicer,  which may be  delivered by  telecopy,  immediately  suspend all of the rights and
obligations of the Master Servicer  thereafter  arising under this Agreement,  but without  prejudice to any rights
it may have as a Securityholder  or to reimbursement of outstanding  Advances or other amounts for which the Master
Servicer was entitled to  reimbursement  as of the date of suspension,  and the Indenture  Trustee,  subject to the
cure provided for in this  paragraph,  if available,  shall act as provided in Section 7.02 to carry out the duties
of the Master  Servicer,  including  the  obligation  to make any Advance the  nonpayment  of which is described in
clause (i)(A) of Section  7.01(a).  Any such action taken by the Indenture  Trustee must be prior to the payment on
the relevant  Payment Date,  and shall have all of the rights  incidental  thereto.  If the Master  Servicer  shall
within two Business Days following  such  suspension  remit to the Indenture  Trustee the amount of any Advance the
nonpayment  of which by the Master  Servicer is described in clause  (i)(A) of Section  7.01(a),  together with all
other amounts necessary to reimburse the Indenture  Trustee for actual,  necessary and reasonable costs incurred by
the Indenture  Trustee  because of action taken pursuant to this subsection  (including  interest on any Advance or
other amounts paid by the Indenture  Trustee (from and including the respective  dates thereof) at a per annum rate
equal to the prime rate for U.S. money center  commercial banks as published in the Wall Street Journal),  then the
Indenture  Trustee,  subject to the last two  sentences  of this  paragraph,  shall  permit the Master  Servicer to
resume its rights and  obligations as Master  Servicer  hereunder.  If the Master Servicer shall fail to remit such
amounts to the Indenture  Trustee  within such two Business  Days after the Payment Date,  then an Event of Default
shall  occur and such  notice of  suspension  shall be deemed to be a notice of  termination  without  any  further
action on the part of the  Indenture  Trustee.  The  Master  Servicer  agrees  that if it fails to make a  required
Advance by 10:00  A.M.  (Chicago  time) on the  related  Payment  Date on more than two  occasions  in any 12 month
period,  the Indenture  Trustee shall be under no obligation to permit the Master Servicer to resume its rights and
obligations as Master Servicer hereunder,  and  notwithstanding the cure period provided in Section  7.01(a)(i)(A),
an Event of Default shall be deemed to have occurred on the relevant Payment Date.

         SECTION 7.02.  Indenture Trustee to Act.

         (a)  From and after the date the Master  Servicer  (and the  Indenture  Trustee,  if notice is sent by the
Holders)  receives a notice of termination  pursuant to Section 7.01, the Indenture  Trustee shall be the successor
in all  respects  to the  Master  Servicer  in its  capacity  as  master  servicer  under  this  Agreement  and the
transactions  set forth or  provided  for  herein  and shall be  subject  to all the  responsibilities,  duties and
liabilities  relating  thereto  placed on the Master  Servicer by the terms and  provisions  hereof  arising on and
after its succession.  As compensation  therefor,  the Indenture  Trustee shall be entitled to such compensation as
the Master  Servicer  would have been  entitled  to  hereunder  if no such  notice of  termination  had been given.
Notwithstanding  the above,  (i) if the Indenture  Trustee is unwilling to act as successor Master Servicer or (ii)
if the  Indenture  Trustee is legally  unable so to act,  subject to the rights of  Thornburg  under  Section  3.33
hereof,  the  Indenture  Trustee  shall  appoint or petition a court of  competent  jurisdiction  to  appoint,  any
established housing and home finance  institution,  bank or other mortgage loan or home equity loan servicer having
a net worth of not less than  $15,000,000  as the successor to the Master  Servicer  hereunder in the assumption of
all or any part of the  responsibilities,  duties or liabilities of the Master Servicer hereunder;  provided,  that
the  appointment  of any such  successor  Master  Servicer  shall not  result in the  qualification,  reduction  or
withdrawal  of the  ratings  assigned to the Notes by each Rating  Agency as  evidenced  by a letter to such effect
from each  Rating  Agency.  Pending  appointment  of a  successor  to the  Master  Servicer  hereunder,  unless the
Indenture  Trustee is  prohibited  by law from so acting,  the  Indenture  Trustee  shall act in such  capacity  as
hereinabove  provided.  In connection  with such  appointment  and  assumption,  the successor shall be entitled to
receive  compensation  out of payments on Mortgage  Loans in an amount equal to the  compensation  which the Master
Servicer would  otherwise have received  pursuant to Section 3.19. The  appointment of a successor  Master Servicer
shall not affect any  liability of the  predecessor  Master  Servicer  which may have arisen  under this  Agreement
prior to its  termination as Master  Servicer to pay any deductible  under an insurance  policy pursuant to Section
3.14 or to indemnify the Indenture  Trustee  pursuant to Section 8.05, nor shall any successor  Master  Servicer be
liable for any acts or omissions of the  predecessor  Master  Servicer or for any breach by such Master Servicer of
any of its  representations or warranties  contained herein or in any related document or agreement.  The Indenture
Trustee and such  successor  shall take such  action,  consistent  with this  Agreement,  as shall be  necessary to
effectuate any such succession.

         (b)  Any  successor,  including the Indenture  Trustee,  to the Master  Servicer as Master  Servicer shall
during the term of its service as Master  Servicer  continue to service and  administer  the Mortgage Loans for the
benefit of  Securityholders,  and maintain in force a policy or policies of insurance covering errors and omissions
in the  performance  of its  obligations  as Master  Servicer  hereunder  and a  Fidelity  Bond in  respect  of its
officers, employees and agents to the same extent as the Master Servicer is so required pursuant to Section 3.04.

         (c)  Notwithstanding  anything  else herein to the contrary,  in no event shall the  Indenture  Trustee be
liable for any servicing  fee or for any  differential  in the amount of the  servicing fee paid  hereunder and the
amount  necessary to induce any successor  Master Servicer to act as successor Master Servicer under this Agreement
and the transactions set forth or provided for herein.

         SECTION 7.03.  Waiver of Event of Default.

         The  Majority  Securityholders  may,  on  behalf of all  Securityholders,  by  notice  in  writing  to the
Indenture  Trustee,  direct the Indenture  Trustee to waive any events  permitting  removal of any Master  Servicer
under this Agreement,  provided,  however, that the Majority Securityholders may not waive an event that results in
a failure to make any required  payment on a Note  without the consent of the Holder of such Note.  Upon any waiver
of an Event of  Default,  such event  shall  cease to exist and any Event of  Default  arising  therefrom  shall be
deemed to have been remedied for every  purpose of this  Agreement.  No such waiver shall extend to any  subsequent
or other event 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 each Rating Agency.

         SECTION 7.04.  Notification to Securityholders.

         (a)  Upon any  termination or appointment of a successor to any Master  Servicer  pursuant to this Article
VII or  Section  3.34,  the Note  Registrar  or the  Indenture  Trustee,  if the Master  Servicer  is also the Note
Registrar and  Securities  Administrator,  shall give prompt  written  notice  thereof to the  Noteholders at their
respective addresses appearing in the Note Register and to each Rating Agency.

         (b)  No later than 60 days after the occurrence of any event which  constitutes  or which,  with notice or
a lapse of time or both,  would  constitute  an Event of Default of which a  Responsible  Officer of the  Indenture
Trustee  becomes aware of the  occurrence of such an event,  the  Indenture  Trustee shall  transmit by mail to all
Noteholders notice of such occurrence unless such Event of Default shall have been waived or cured.

         SECTION 7.05.  Action Upon Master Servicer Event of Default.

         If an Event of Default has occurred (which has not been cured or waived) of which a Responsible Officer
has actual knowledge, the Indenture Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use
under the circumstances in the conduct of his own affairs, unless the Indenture Trustee is acting as successor
Master Servicer, in which case it shall use the same degree of care and skill as the Master Servicer hereunder
with respect to the exercise of the rights and powers of the Master Servicer hereunder; provided, however, the
Indenture Trustee shall not be charged with knowledge of any Event of Default or any other event or matter that
may require it to take action or omit to take action hereunder unless a Responsible Officer of the Indenture
Trustee at the Corporate Trust Office obtains actual knowledge of such failure or the Indenture Trustee receives
written notice of such Event of Default.

         SECTION 7.06.  Additional Remedies of Indenture Trustee Upon Event of Default.

         In case an Event of Default or a default by the Depositor hereunder shall occur and be continuing, the
Indenture Trustee may proceed to protect and enforce its rights and the rights of the Noteholders under this
Agreement, as the case may be, by a suit, action or proceeding in equity or at law or otherwise, whether for the
specific performance of any covenant or agreement contained in this Agreement or in aid of the execution of any
power granted in this Agreement or for the enforcement of any other legal, equitable or other remedy, as the
Indenture Trustee, being advised by counsel, and subject to the foregoing, shall deem most effectual to protect
and enforce any of the rights of the Indenture Trustee and the Noteholders.

                                                   ARTICLE VIII

                              THE INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

         SECTION 8.01.  Duties of Indenture Trustee and Securities Administrator.

         The Indenture  Trustee and the Securities  Administrator,  upon receipt of all resolutions,  certificates,
statements,  opinions,  reports,  documents, orders or other instruments furnished to the Indenture Trustee and the
Securities  Administrator,  which are  specifically  required to be  furnished  pursuant to any  provision  of this
Agreement,  shall examine them to determine  whether they conform to the requirements of this Agreement;  provided,
however,  that neither the Indenture Trustee nor the Securities  Administrator will be responsible for the accuracy
or content of any such resolutions,  certificates,  statements,  opinions, reports, documents or other instruments.
If any such  instrument  is found not to conform to the  requirements  of this  Agreement in a material  manner the
Indenture  Trustee and the  Securities  Administrator  shall take such action as it deems  appropriate  to have the
instrument corrected.

         On each Payment Date, the Securities  Administrator  shall make monthly  payments to the Noteholders  from
funds in the Note  Payment  Account  and to the  Certificateholders  from  funds  in the  Certificate  Distribution
Account,  in each case as provided in Sections  5.01,  5.09 and 10.01 hereof based on the report of the  Securities
Administrator.

         No provision of this  Agreement  shall be construed  to relieve the  Indenture  Trustee or the  Securities
Administrator  from  liability for its own negligent  action,  its own negligent  failure to act or its own willful
misconduct; provided, however, that:

                 (i) prior to the  occurrence  of an Event of  Default,  and after the curing of all such Events of
     Default  which may have  occurred,  the duties and  obligations  of the Indenture  Trustee and the  Securities
     Administrator  shall be determined  solely by the express  provisions of this Agreement and the Indenture,  in
     the  case  of the  Indenture  Trustee,  and  this  Agreement,  the  Indenture,  the  Trust  Agreement  and the
     Administration Agreement, in the case of the Securities  Administrator,  neither the Indenture Trustee nor the
     Securities  Administrator  shall be liable except for the performance of such of its duties and obligations as
     are specifically set forth in this those  agreements,  no implied  covenants or obligations shall be read into
     such  agreements  against the Indenture  Trustee or the  Securities  Administrator  and, in the absence of bad
     faith on the part of the  Indenture  Trustee or the  Securities  Administrator,  respectively,  the  Indenture
     Trustee or the  Securities  Administrator  may  conclusively  rely, as to the truth of the  statements and the
     correctness of the opinions  expressed  therein,  upon any certificates or opinions furnished to the Indenture
     Trustee or the Securities  Administrator,  respectively,  and conforming to the requirements of this Agreement
     or such other agreements, as applicable;

                 (ii)neither the Indenture  Trustee nor the Securities  Administrator  shall be liable for an error
     of  judgment  made in good  faith by a  Responsible  Officer  of the  Indenture  Trustee  or an officer of the
     Securities  Administrator,  respectively,  unless  it  shall  be  proved  that the  Indenture  Trustee  or the
     Securities  Administrator,  respectively,  was negligent in  ascertaining or  investigating  the facts related
     thereto; and

                 (iii)     neither the  Indenture  Trustee nor the  Securities  Administrator  shall be  personally
     liable with  respect to any action  taken,  suffered or omitted to be taken by it in good faith in  accordance
     with the consent or at the direction of  Securityholders  as provided herein relating to the time,  method and
     place of conducting  any remedy  pursuant to this  Agreement,  or exercising or omitting to exercise any trust
     or power  conferred  upon the Indenture  Trustee or the  Securities  Administrator,  respectively,  under this
     Agreement;

         The  Securities  Administrator  shall pay any and all tax related  expenses (not  including  taxes) of the
Issuer,  including but not limited to any professional fees or expenses related to audits or any  administrative or
judicial  proceedings  with  respect  to the  Issuer  that  involve  the  Internal  Revenue  Service  or state  tax
authorities,  but only to the extent that (i) such expenses are ordinary or routine  expenses,  including  expenses
of a routine  audit but not  expenses  of  litigation  (except as  described  in (ii));  or (ii) such  expenses  or
liabilities  (including  taxes and  penalties)  are  attributable  to the  negligence or willful  misconduct of the
Securities  Administrator in fulfilling its duties hereunder  (including the Securities  Administrator's  duties as
tax return preparer).

         The Securities  Administrator  shall prepare and file, and the Owner Trustee shall sign the tax returns of
the Issuer,  to the extent that a tax return is required to be filed by the Issuer.  The expenses of preparing  and
filing  such tax  returns  shall be borne by the  Securities  Administrator.  Notwithstanding  the  foregoing,  the
Securities  Administrator  shall have no  obligation  to  prepare,  file or  otherwise  deal with  partnership  tax
information  or returns.  In the event that  partnership  tax  information  or returns are required by the Internal
Revenue Service, the Initial Seller, at its own cost and expense, will prepare and file all necessary returns.

         The  Securities  Administrator  shall  perform  on  behalf  of the  Issuer  all  reporting  and  other tax
compliance duties that are the  responsibility of the Issuer under the Code or other compliance  guidance issued by
the Internal  Revenue Service or any state or local taxing  authority.  Among its other duties,  if required by the
Code or other such guidance,  the Securities  Administrator shall provide to the  Securityholders  such information
or reports as are required by the Code.

         Neither the Indenture  Trustee nor the  Securities  Administrator  shall be required to expend or risk its
own funds or otherwise incur financial or other  liability in the  performance of any of its duties  hereunder,  or
in the exercise of any of its rights or powers,  if there is reasonable  ground for believing that the repayment of
such funds or  indemnity  satisfactory  to it against  such risk or liability is not assured to it, and none of the
provisions  contained  in this  Agreement  shall in any event  require  the  Indenture  Trustee  or the  Securities
Administrator  to perform,  or be  responsible  for the manner of  performance  of, any of the  obligations  of the
Master  Servicer  under this  Agreement,  except during such time,  if any, as the  Indenture  Trustee shall be the
successor to, and be vested with the rights,  duties,  powers and privileges of, the Master  Servicer in accordance
with the terms of this Agreement.

         SECTION 8.02.  Certain Matters Affecting the Indenture Trustee and the Securities Administrator.

         Except as otherwise provided in Section 8.01 hereof:

                 (i) the Indenture  Trustee and the  Securities  Administrator  may request and  conclusively  rely
     upon,  and shall be fully  protected in acting or  refraining  from acting  upon,  any  resolution,  Officers'
     Certificate,  certificate  of auditors  or any other  certificate,  statement,  instrument,  opinion,  report,
     notice, request,  consent,  order, appraisal,  bond or other paper or document reasonably believed by it to be
     genuine and to have been signed or  presented  by the proper  party or  parties,  and the manner of  obtaining
     consents and of evidencing the authorization of the execution thereof by  Securityholders  shall be subject to
     such reasonable regulations as the Indenture Trustee and the Securities Administrator may prescribe;

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

                 (iii)     neither  the  Indenture  Trustee  nor the  Securities  Administrator  shall be under any
     obligation to exercise any of the rights or powers vested in it by this  Agreement,  or to institute,  conduct
     or defend any litigation  hereunder or in relation  hereto,  at the request,  order or direction of any of the
     Securityholders,  pursuant  to the  provisions  of this  Agreement,  unless  such  Securityholders  shall have
     offered to the  Indenture  Trustee or the  Securities  Administrator,  respectively,  reasonable  security  or
     indemnity  satisfactory  to it against the costs,  expenses and liabilities  which may be incurred  therein or
     thereby;  the right of the Indenture Trustee or the Securities  Administrator to perform any discretionary act
     enumerated  in this  Agreement  shall not be  construed  as a duty,  and the  Indenture  Trustee  shall not be
     answerable for other than its negligence or willful misconduct in the performance of any such act;

                 (iv)neither the Indenture  Trustee nor the  Securities  Administrator  shall be personally  liable
     for any action  taken,  suffered or omitted by it in good faith and believed by it to be  authorized or within
     the discretion or rights or powers conferred upon it by this Agreement;

                 (v) prior to the  occurrence  of an Event of Default  and after the curing or waiver of all Events
     of Default which may have occurred,  the Indenture Trustee shall not be bound to make any  investigation  into
     the facts or matters stated in any resolution,  certificate,  statement,  instrument, opinion, report, notice,
     request,  consent,  order,  approval,  bond or other paper or documents,  unless requested in writing to do so
     Holders  of the Notes  representing  not less than 25% of the  Outstanding  Balance  of the  Notes;  provided,
     however,  that if the payment  within a reasonable  time to the  Indenture  Trustee of the costs,  expenses or
     liabilities  likely to be  incurred  by it in the  making of such  investigation  is,  in the  opinion  of the
     Indenture  Trustee,  not  reasonably  assured to the Indenture  Trustee by the security  afforded to it by the
     terms of this Agreement,  the Indenture Trustee may require  reasonable  indemnity against such cost,  expense
     or  liability as a condition to such  proceeding.  If the Master  Servicer  fails to reimburse  the  Indenture
     Trustee in respect of the reasonable  expense of every such examination  relating to the Master Servicer,  the
     Indenture Trustee shall be reimbursed by the Trust Estate;

                 (vi)the  Indenture  Trustee  shall  not be  accountable,  shall  have no  liability  and  makes no
     representation  as to any acts or omissions  hereunder of the Owner Trustee,  the Securities  Administrator or
     the Master  Servicer  until such time as the Indenture  Trustee may be required to act as the Master  Servicer
     pursuant to Section 7.02 hereof and  thereupon  only for the acts or omissions of the  Indenture  Trustee as a
     successor Master Servicer; and

                 (vii)     the Indenture  Trustee and the  Securities  Administrator  may execute any of the trusts
     or powers  hereunder  or perform  any duties  hereunder  either  directly or by or through  agents,  nominees,
     attorneys or a custodian,  and shall not be responsible  for any willful  misconduct or negligence on the part
     of  any  agent,  nominee,  attorney  or  custodian  appointed  by the  Indenture  Trustee  or  the  Securities
     Administrator in good faith.

         SECTION 8.03.  Indenture  Trustee and the Securities  Administrator  Not Liable for  Securities,  Mortgage
                        Loans or Additional Collateral.

         The recitals  contained  herein and in the  Securities  (other than the  authentication  of the Securities
Administrator  on the  Securities)  shall be taken as the statements of the Sellers,  and the neither the Indenture
Trustee nor the Securities  Administrator  assumes  responsibility  for the  correctness  of the same.  Neither the
Indenture  Trustee nor the  Securities  Administrator  makes  representations  or  warranties as to the validity or
sufficiency of this Agreement or of the Securities  (other than the signature and  authentication of the Securities
Administrator  on the  Securities) or of any Mortgage Loan or related  document or of MERS or the MERS System.  The
Indenture  Trustee shall not be accountable  for the use or application by the Master  Servicer,  or for the use or
application  of any funds paid to the Master  Servicer  in respect of related  Mortgage  Loans or  deposited  in or
withdrawn  from the  Collection  Account  by the Master  Servicer  or the  Securities  Administrator.  Neither  the
Indenture Trustee nor the Securities  Administrator  shall at any time have any  responsibility or liability for or
with respect to the legality,  validity and  enforceability of any Mortgage or any Mortgage Loan, or the perfection
and priority of any Mortgage or the  maintenance  of any such  perfection  and priority,  or for or with respect to
the  sufficiency  of the Issuer or its ability to generate  the payments to be paid to  Securityholders  under this
Agreement,  including,  without limitation:  the existence,  condition and ownership of any Mortgaged Property; the
existence and  enforceability  of any hazard  insurance  thereon (other than if the Indenture  Trustee shall assume
the duties of the Master  Servicer  pursuant  to Section  7.02  hereof);  the  validity  of the  assignment  of any
Mortgage Loan to the Indenture  Trustee or of any intervening  assignment;  the  completeness of any Mortgage Loan;
the  performance or  enforcement of any Mortgage Loan (other than if the Indenture  Trustee shall assume the duties
of the Master  Servicer  pursuant to Section 7.02 hereof);  the compliance by the Depositor or the Sellers with any
warranty  or  representation  made under this  Agreement  or in any related  document  or the  accuracy of any such
warranty  or  representation  prior  to the  Indenture  Trustee's  receipt  of  notice  or other  discovery  of any
non-compliance  therewith or any breach  thereof;  any  investment  of monies by or at the  direction of the Master
Servicer or in the case of the Indenture Trustee the Securities  Administrator or any loss resulting therefrom,  it
being  understood that the Indenture  Trustee shall remain  responsible for any Issuer property that it may hold in
its individual  capacity and the Securities  Administrator shall remain responsible for any Issuer property that it
may  hold  in its  individual  capacity;  the  acts or  omissions  of the  Master  Servicer  (other  than as to the
Securities  Administrator,  if it is also the Master Servicer,  and as to the Indenture  Trustee,  if the Indenture
Trustee  shall assume the duties of the Master  Servicer  pursuant to Section  7.02  hereof,  and then only for the
acts or omissions of the  Indenture  Trustee as the  successor  Master  Servicer),  or any acts or omissions of any
Servicer or any Mortgagor;  any action of the Master  Servicer (other than as to the Securities  Administrator,  if
it is also the Master Servicer,  and as to the Indenture Trustee,  if the Indenture Trustee shall assume the duties
of the Master  Servicer  pursuant to Section 7.02 hereof),  or in the case of the Indenture  Trustee the Securities
Administrator  or any Servicer taken in the name of the Indenture  Trustee;  the failure of the Master  Servicer or
any  Servicer to act or perform any duties  required  of it as agent or on behalf of the  Indenture  Trustee or the
Issuer  hereunder;  or any action by the Indenture  Trustee taken at the  instruction of the Master Servicer (other
than if the Indenture Trustee shall assume the duties of the Master Servicer  pursuant to Section 7.02 hereof,  and
then only for the actions of the Indenture Trustee as the successor Master Servicer);  provided,  however, that the
foregoing  shall not relieve the Indenture  Trustee of its  obligation to perform its duties under this  Agreement,
including,  without limitation,  the Indenture Trustee's duty to review the Mortgage Files, if so required pursuant
to Section 2.01 of this Agreement.

         SECTION 8.04.  Owner Trustee, Master Servicer and Securities Administrator May Own Notes.

         The Owner Trustee,  the Master Servicer and the Securities  Administrator in their  respective  individual
capacities,  or in any  capacity  other  than  as  Owner  Trustee,  Master  Servicer  or  Securities  Administrator
hereunder,  may become the owner or  pledgee  of any Notes  with the same  rights  they would have if they were not
Owner  Trustee,  Master  Servicer or Securities  Administrator,  as  applicable,  and may  otherwise  deal with the
parties hereto.

         SECTION 8.05. Indenture Trustee's,  Custodian's,  Owner Trustee's and Securities  Administrator's Fees and
                              Expenses.

         The Indenture  Trustee shall be  compensated by the Master  Servicer for its services  hereunder on behalf
of the Issuer,  including  payment of the  Indenture  Trustee Fee. The Owner Trustee  shall be  compensated  by the
Master  Servicer  for  its  services  hereunder,  including  payment  of the  Owner  Trustee  Fee.  The  Securities
Administrator  shall be compensated by the Master Servicer for its services  hereunder from a portion of the Master
Servicing  Fee.  The fees and  expenses of the  Custodian  will be paid by the Initial  Seller.  In  addition,  the
Indenture  Trustee (as  Indenture  Trustee and in its  individual  corporate  capacity),  the Owner Trustee and the
Securities  Administrator  will be entitled to recover from the Collection  Account pursuant to Section 4.05(a) all
reasonable  out-of-pocket  expenses,  disbursements  and  advances  and  the  expenses  of  the  Indenture  Trustee
(including for such purpose,  any fees and expenses  relating to its capacity as Custodian  hereunder to the extent
not paid by the Initial  Seller),  the Owner Trustee,  and the Securities  Administrator,  respectively,  including
without  limitation,  in connection  with any Event of Default,  any breach of this Agreement or any claim or legal
action  (including  any pending or threatened  claim or legal action)  incurred or made by the Owner  Trustee,  the
Indenture  Trustee  or the  Securities  Administrator,  respectively,  in the  performance  of  its  duties  or the
administration  of the trusts  hereunder or under the Yield  Maintenance  Agreements or the Auction Swap  Agreement
(including  the  reasonable  compensation,  expenses and  disbursements  of its counsel)  except any such  expense,
disbursement  or advance as may arise from its negligence (or in the case of the Owner Trustee,  gross  negligence)
or intentional  misconduct or which is specifically  designated herein as the responsibility of the Depositor,  the
Sellers,  the Master Servicer,  the  Securityholders,  the Owner Trustee or the Issuer hereunder or thereunder.  If
funds in the  Collection  Account  are  insufficient  therefor,  the  Indenture  Trustee,  the Owner  Trustee,  the
Custodian and the  Securities  Administrator  shall recover such expenses from future  collections  on the Mortgage
Loans or as  otherwise  agreed  by such  parties  and the  Securityholders.  Such  compensation  and  reimbursement
obligation  shall not be limited by any provision of law in regard to the  compensation  of a trustee of an express
trust.

         SECTION 8.06.  Eligibility Requirements for Indenture Trustee and Securities Administrator.

         The  eligibility  requirements  for the Indenture  Trustee are set forth in Section 6.11 of the Indenture.
The Securities  Administrator  hereunder shall at all times be an entity duly organized and validly  existing under
the laws of the United States of America or any state  thereof,  authorized  under such laws to exercise  corporate
trust powers,  having a combined  capital and surplus of at least  $50,000,000 and a minimum  long-term debt rating
in the third  highest  rating  category by each Rating  Agency and in each Rating  Agency's two highest  short-term
rating  categories,  and  subject to  supervision  or  examination  by federal or state  authority.  If such entity
publishes  reports  of  condition  at least  annually,  pursuant  to law or to the  requirements  of the  aforesaid
supervising or examining  authority,  then for the purposes of this Section 8.06, 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  Securities  Administrator  shall  cease  to be  eligible  in
accordance with the provisions of this Section 8.06, the Securities  Administrator  shall resign immediately in the
manner and with the effect specified in Section 8.07 hereof.

         SECTION 8.07.  Resignation or Removal of the Indenture Trustee or the Securities Administrator.

         The  circumstances  causing  resignation  and removal of the  Indenture  Trustee are set forth in Sections
6.08 and 6.09 of the Indenture.  The  Securities  Administrator  may at any time resign and be discharged  from the
trusts hereby  created by giving written notice  thereof to the  Depositor,  the Sellers,  the Master  Servicer and
each Rating Agency.  Upon receiving  such notice of  resignation  of the  Securities  Administrator,  the Indenture
Trustee shall promptly  appoint a successor  Securities  Administrator  that meets the requirements in Section 8.06
by written  instrument,  in  duplicate,  one copy of which  instrument  shall be delivered to each of the resigning
Securities  Administrator  and one copy to the  successor  Securities  Administrator.  If no  successor  Securities
Administrator  shall have been so  appointed  and having  accepted  appointment  within 30 days after the giving of
such  notice  of  resignation,  the  resigning  Securities  Administrator  may  petition  any  court  of  competent
jurisdiction for the appointment of a successor Securities Administrator.

         If at any time the Securities  Administrator  shall cease to be eligible in accordance with the provisions
of Section 8.06 hereof or if at any time the Securities  Administrator  shall be legally unable to act, or shall be
adjudged a bankrupt or  insolvent,  or a receiver  of the  Securities  Administrator  or of its  property  shall be
appointed,  or any public officer shall take charge or control of the Securities  Administrator  or of its property
or affairs for the purpose of  rehabilitation,  conservation  or  liquidation,  or if the Securities  Administrator
fails to provide an  assessment  of  compliance  or an  attestation  report  required  under Section 3.16 within 15
calendar  days of March 1 of each  calendar  year in which  Exchange  Act reports are required  then the  Indenture
Trustee may remove the Securities  Administrator.  If the Indenture  Trustee removes the Securities  Administrator,
under the authority of the  immediately  preceding  sentence,  the Initial  Seller or the  Indenture  Trustee shall
promptly  appoint a successor  Securities  Administrator  that meets the  requirements  of Section  8.06 by written
instrument,  in triplicate,  one copy of which  instrument  shall be delivered to the Securities  Administrator  so
removed, one copy to the successor Securities Administrator and one copy to the Master Servicer.

         The Majority  Securityholders  may at any time remove the Securities  Administrator by written  instrument
or  instruments  delivered to the Indenture  Trustee;  the Initial  Seller shall  thereupon use its best efforts to
appoint a successor Securities Administrator in accordance with this Section.

         Any  resignation  or removal of the Securities  Administrator  and  appointment of a successor  Securities
Administrator,  pursuant to any of the provisions of this Section 8.07 shall not become  effective until acceptance
of  appointment by the successor  Securities  Administrator  as provided in Section 8.08 hereof.  If the Securities
Administrator  is removed  pursuant to this Section 8.07, it shall be reimbursed  any  outstanding  and unpaid fees
and  expenses,  and if  removed  under  the  authority  of the  immediately  preceding  paragraph,  the  Securities
Administrator shall also be reimbursed any outstanding and unpaid costs and expenses.

         Notwithstanding  anything to the contrary  contained herein, in the event that the Master Servicer resigns
or is  removed  as  Master  Servicer  hereunder,  the  Securities  Administrator  shall  have the  right to  resign
immediately as Securities  Administrator by giving written notice to the Sellers and the Indenture Trustee,  with a
copy to each  Rating  Agency;  provided  that such  resignation  shall not become  effective  until  acceptance  of
appointment  by a successor  Securities  Administrator.  Notwithstanding  anything to the contrary  herein,  in the
event that the Securities  Administrator resigns or is removed as Securities  Administrator  hereunder,  the Master
Servicer  shall have the right to resign  immediately  as Master  Servicer by giving  written notice to the Sellers
and the Indenture  Trustee,  with a copy to each Rating  Agency;  provided that such  resignation  shall not become
effective until acceptance of appointment by a successor Master Servicer.

         SECTION 8.08.  Successor Securities Administrator.

         Any  successor  Securities  Administrator  appointed  as provided in Section  8.07 hereof  shall  execute,
acknowledge and deliver to the Depositor,  the Sellers and the Master  Servicer and to its  predecessor  Securities
Administrator an instrument accepting such appointment  hereunder,  and thereupon the resignation or removal of the
Securities Administrator shall become effective, and such successor Securities  Administrator,  without any further
act, deed or  conveyance,  shall become fully vested with all the rights,  powers,  duties and  obligations  of its
predecessor  hereunder  (including,  without  limitation,  its rights,  powers,  duties and  obligations as Auction
Administrator  under the Auction  Administration  Agreement),  with like effect as if originally  named  Securities
Administrator.  The  Depositor,  the Sellers,  the Master  Servicer and the  predecessor  Securities  Administrator
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  Securities  Administrator,  as  applicable,  all such rights,
powers, duties and obligations.

         No successor  Securities  Administrator  shall accept  appointment as provided in this Section 8.08 unless
at the time of such acceptance such successor  Securities  Administrator  shall be eligible under the provisions of
Section  8.06  hereof  and the  appointment  of such  successor  Securities  Administrator  shall  not  result in a
downgrading of the Offered Notes by either Rating Agency, as evidenced by a letter from each Rating Agency.

         Upon acceptance of appointment by a successor  Securities  Administrator as provided in this Section 8.08,
the  successor  Securities   Administrator  shall  mail  notice  of  the  appointment  of  a  successor  Securities
Administrator  hereunder to all  Securityholders  at their  addresses as shown in the  Certificate  Register or the
Note Register, as applicable, and to each Rating Agency.

         SECTION 8.09.  Merger or Consolidation of Indenture Trustee or Securities Administrator.

         The  consequences  of merger or  consolidation  of the Indenture  Trustee are set forth in Section 6.09 of
the  Indenture.  Any entity into which the  Securities  Administrator  may be merged or  converted or with which it
may be consolidated,  or any entity resulting from any merger,  conversion or consolidation to which the Securities
Administrator  shall be a party,  or any entity  succeeding  to the  corporate  trust  business  of the  Securities
Administrator,  shall be the successor of the Securities  Administrator,  as applicable,  hereunder,  provided such
entity shall be eligible under the  provisions of Section 8.06 and 8.08 hereof,  without the execution or filing of
any  paper  or any  further  act on  the  part  of any of the  parties  hereto,  anything  herein  to the  contrary
notwithstanding.

         SECTION 8.10.  [Reserved].

         SECTION 8.11.  [Reserved].

         SECTION 8.12.  Trustee May Enforce Claims Without Possession of Notes.

         (a)  All rights of action and claims under this  Agreement or the Notes may be prosecuted  and enforced by
the Indenture  Trustee  without the  possession  of any of the Notes or the  production  thereof in any  proceeding
relating  thereto,  and such proceeding  instituted by the Indenture Trustee shall be brought in its own name or in
its capacity as Indenture  Trustee for the benefit of all Holders of such Notes,  subject to the provisions of this
Agreement and the  Indenture.  Any recovery of judgment  shall,  after  provision for the payment of the reasonable
compensation,  expenses,  disbursement  and advances of the Indenture  Trustee (for the avoidance of doubt,  in its
individual  capacity and as Indenture Trustee on behalf of the Issuer),  its agents and counsel, be for the ratable
benefit or the Noteholders in respect of which such judgment has been recovered.

         (b)  The  Indenture  Trustee  shall  afford  the  Sellers,  the  Depositor  and each  Securityholder  upon
reasonable  notice during normal  business  hours at its Corporate  Trust Office or other office  designated by the
Indenture  Trustee,  access to all records  maintained by the Indenture  Trustee in respect of its duties hereunder
and access to officers of the Indenture  Trustee  responsible  for performing  such duties.  The Indenture  Trustee
shall  cooperate  fully with the Sellers,  the Depositor and such  Securityholder  and shall,  subject to the first
sentence of this Section 8.12(b),  make available to the Sellers,  the Depositor and such Securityholder for review
and copying such books,  documents or records as may be requested  with respect to the Indenture  Trustee's  duties
hereunder.  The Sellers,  the Depositor and the Securityholders  shall not have any responsibility or liability for
any action or failure to act by the Indenture  Trustee and are not obligated to supervise  the  performance  of the
Indenture Trustee under this Agreement or otherwise.

         (c)  The  Securities  Administrator  shall afford the Sellers,  the Depositor,  the Indenture  Trustee and
each  Securityholder  upon  reasonable  notice  during normal  business  hours at its offices at 9062 Old Annapolis
Road, Columbia,  Maryland 21045 or other office designated by the Securities  Administrator,  access to all records
maintained  by the  Securities  Administrator  in respect of its duties  hereunder  and access to  officers  of the
Securities  Administrator  responsible  for performing  such duties.  Upon request,  the  Securities  Administrator
shall furnish the Depositor and any requesting  Securityholder  with its most recent audited financial  statements.
The Securities  Administrator  shall cooperate  fully with the Sellers,  the Depositor,  the Indenture  Trustee and
such  Securityholder  and shall,  subject to the first  sentence of this  Section  8.12(c),  make  available to the
Sellers,  the Depositor and such  Securityholder for review and copying such books,  documents or records as may be
requested  with respect to the  Securities  Administrator's  duties  hereunder.  The Sellers,  the  Depositor,  the
Indenture  Trustee  and the  Securityholders  shall not have any  responsibility  or  liability  for any  action or
failure  to act by the  Securities  Administrator  and  are not  obligated  to  supervise  the  performance  of the
Securities Administrator under this Agreement or otherwise.

         SECTION 8.13.  Suits for Enforcement.

         In case an Event of Default or a default by the Depositor  hereunder  shall occur and be  continuing,  the
Indenture  Trustee may proceed to protect and enforce its rights and the rights of the  Securityholders  under this
Agreement,  as the case may be, by a suit,  action or proceeding in equity or at law or otherwise,  whether for the
specific  performance  of any covenant or agreement  contained in this  Agreement or in aid of the execution of any
power  granted in this  Agreement or for the  enforcement  of any other legal,  equitable or other  remedy,  as the
Indenture  Trustee,  being advised by counsel,  and subject to the foregoing,  shall deem most effectual to protect
and enforce any of the rights of the Indenture Trustee and the Securityholders.

         SECTION 8.14.  Waiver of Bond Requirements.

         The Indenture  Trustee shall be relieved of, and each  Securityholder  hereby waives,  any  requirement of
any jurisdiction in which the Trust Estate,  or any part thereof,  may be located that the Indenture Trustee post a
bond or other surety with any court, agency or body whatsoever.

         SECTION 8.15.  Waiver of Inventory, Accounting and Appraisal Requirement.

         The Owner Trustee shall be relieved of, and each  Securityholder  hereby  waives,  any  requirement of any
jurisdiction  in which the Issuer,  or any part thereof,  may be located that the Owner Trustee file any inventory,
accounting or appraisal of the Issuer with any court, agency or body at any time or in any manner whatsoever.

         SECTION 8.16.  Appointment of Custodian.

         LaSalle Bank is hereby  appointed  Custodian of the Mortgage Files.  The Indenture  Trustee shall have the
right upon prior written notice to the Issuer and the Master  Servicer,  to appoint one or more  sub-custodians  to
hold all or a portion  of the  related  Mortgage  Files as agent for the  Indenture  Trustee,  by  entering  into a
custodial  agreement.  If the  Indenture  Trustee is removed or becomes  ineligible  to serve as Indenture  Trustee
pursuant  to  the  provisions  of  the  Indenture,  it  shall  also  resign  its  appointment  as  Custodian.   Any
sub-custodian  may at any time be terminated  and a substitute  sub-custodian  appointed  therefor by the Indenture
Trustee.  The Indenture  Trustee agrees to enforce the terms and provisions of any custodial  agreement against the
sub-custodian  for  the  benefit  of the  Noteholders  having  an  interest  in any  Mortgage  File  held  by  such
sub-custodian.  Each  Custodian or  sub-custodian  shall be a depository  institution  or trust company  subject to
supervision by federal or state  authority,  shall have combined  capital and surplus of at least  $15,000,000  and
shall be  qualified to do business in the  jurisdiction  in which it holds any Mortgage  File.  The Initial  Seller
shall pay from its own funds,  without any right to  reimbursement,  the fees, costs and expenses of each custodian
(including  the  costs  of  Custodian's  counsel).  The  Custodian  shall  have the same  rights,  protections  and
immunities which are afforded to the Indenture Trustee under Article VI of the Indenture.

         SECTION 8.17.  Auction Administration Agreement; Auction Swap Agreement.

         (a)  Concurrently  with the  execution  and  delivery  hereof,  at the  direction  of the  Depositor,  the
Securities  Administrator,  acting solely as an agent (the "Auction  Administrator") for the Holders of the Auction
Notes and not on behalf of the Issuer,  shall  execute and deliver  the Auction  Administration  Agreement  and the
Auction Swap  Agreement  in the forms  presented by the Auction Swap  Counterparty.  The  Securities  Administrator
shall have no duty to review or otherwise  determine  the adequacy of the Auction  Administration  Agreement or the
Auction Swap Agreement.

         (b)  Each  Holder of an  Auction  Note is  deemed,  by  acceptance  of such  Note,  (i) to  authorize  the
Securities  Administrator  to execute  and  deliver  the Auction  Administration  Agreement  and the  Auction  Swap
Agreement  as their  agent  and (ii) to  acknowledge  and  accept  and agree to be bound by the  provisions  of the
Auction  Administration  Agreement  and the  Auction  Swap  Agreement.  The  Securities  Administrator,  as Auction
Administrator,  agrees not to consent to any  amendments  to the Auction  Administration  Agreement or Auction Swap
Agreement  without the consent of 100% of the Auction  Notes,  except in the case where such  amendment  is to cure
any ambiguity in either  agreement,  to correct or supplement any provision  therein which may be inconsistent with
other  provisions  in such  agreements  or the  other  Operative  Agreements,  or to cause the  provisions  in such
agreements to conform or be consistent  with the  statements  made with respect to such  agreements in the Offering
Documents.

         SECTION 8.18.  Yield Maintenance Counterparty Tax Form.

         The Depositor hereby directs the Security  Administrator to enter into the Yield  Maintenance  Agreements.
The Securities  Administrator  agrees that so long as the Yield Maintenance  Agreements remains in effect, it shall
request  that the Yield  Maintenance  Counterparty  provide to it an Internal  Revenue  Service Form W-8ECI (or any
successor  form) at the end of each three year  period  following  the Closing  Date as  provided  for in the Yield
Maintenance Agreements.

                                                    ARTICLE IX

                                                    [Reserved]

                                                     ARTICLE X

                                                    TERMINATION

         SECTION 10.01.  Termination; Clean-Up Call.

         (a)  The respective  obligations and  responsibilities of the Seller, the Depositor,  the Master Servicer,
the  Securities  Administrator,  the Owner  Trustee  and the  Indenture  Trustee  created  hereby  (other  than the
obligation of the Securities  Administrator  to make certain  payments to Noteholders  after the final Payment Date
and the obligation of the Master  Servicer to send certain  notices as hereinafter  set forth) shall terminate upon
notice to the  Indenture  Trustee and the  Securities  Administrator  upon the earliest of (i) the  Payment Date on
which the Class  Principal  Amount (or Class  Notional  Amount in the case of the Class A-X Notes) of each Class of
Notes has been reduced to zero,  (ii) the final payment or other  liquidation of the last Mortgage Loan,  (iii) the
optional  purchase of the Mortgage  Loans as described in the following  paragraphs  and (iv) the  Stated  Maturity
Date.

         Thornburg  (solely in its capacity as a Servicer of the Mortgage  Loans) may, at its option  (which option
is  assignable),  terminate  this  Agreement on any Payment  Date on which the  aggregate  amount of the  Scheduled
Principal  Balances of the  Mortgage  Loans as of the end of the  immediately  preceding  Due Period is equal to or
less than 10% of the Cut-Off Date  Aggregate  Principal  Balance (such Payment Date, the "10% Clean-Up Call Date"),
by purchasing,  on such Payment Date, all of the outstanding  Mortgage Loans and REO Properties at a price equal to
the sum of (i) the  outstanding  Scheduled  Principal  Balances of the Mortgage Loans (other than in respect of REO
Properties),  (ii) the lesser of (x) the  appraised  value of any REO Property as  determined  by the higher of two
appraisals  completed by two  independent  appraisers  approved by the  Depositor  and at the expense of the Person
exercising  the Clean-Up Call Option less the good faith estimate of the Master  Servicer or the related  Servicer,
as  applicable,  of  Liquidation  Expenses to be incurred in  connection  with its disposal  and (y) the  Principal
Balance of each  Mortgage  Loan  related to any REO Property  and (iii) in all cases,  accrued and unpaid  interest
thereon at the  applicable  Loan Rate through the end of the Due Period  preceding  the final  Payment  Date,  plus
unreimbursed  Servicing  Advances and Advances and any unpaid Master Servicing Fees and Servicing Fees allocable to
such Mortgage  Loans and REO  Properties,  plus all amounts,  if any, then due and owing to the Indenture  Trustee,
the Master Servicer and the Securities Administrator (the "Clean-Up Call Purchase Price").

         In addition,  Wells Fargo Bank, N.A.  (solely in its capacity as the Master  Servicer) may, at its option,
terminate this Agreement on any Payment Date on which the aggregate amount of the Scheduled  Principal  Balances of
the  Mortgage  Loans as of the end of the  immediately  preceding  Due  Period  is equal to or less  than 5% of the
Cut-Off Date Aggregate  Principal  Balance (such Payment Date, the "Master  Servicer  Clean-Up Call Date"; and each
of the Master  Servicer  Clean-Up Call Date and the 10% Clean-Up Call Date  individually,  a "Clean-Up Call Date"),
by  purchasing,  on such  Master  Servicer  Clean-Up  Call  Date,  all of the  outstanding  Mortgage  Loans and REO
Properties at a price equal to the Clean-Up Call Purchase Price;  provided,  that the Master Servicer Clean-Up Call
Right shall be exercisable only if the 10% Clean-Up Call Right is not exercised on or before such date.

         (b)  Notice  of  any  termination  pursuant  to  the  second  or  third  paragraphs  of  Section 10.01(a),
specifying  the Clean-Up  Call Date (which shall be a date that would  otherwise be a Payment  Date) upon which the
Noteholders may surrender their Notes to the Securities  Administrator  for payment of the final  distribution  and
cancellation,  shall be given by the Securities  Administrator to the Noteholders  pursuant to Section 10.02 of the
Indenture and to the Owner Trustee  promptly upon the Securities  Administrator  receiving  notice of such Clean-Up
Call Date from Thornburg or Wells Fargo Bank, N.A., as applicable.

         (c)  Upon  presentation  and  surrender  of the Notes,  the  Securities  Administrator  shall  cause to be
distributed  to the Holders of the Notes on the Payment  Date for such final  distribution,  in  proportion  to the
Percentage  Interests of their  respective  Class and to the extent that funds are available  for such purpose,  an
amount  equal to the amount  required to be  distributed  to such  Holders in  accordance  with the  provisions  of
Section 5.01 hereof for such Payment Date.

         (d)  In  the  event  that  all  Noteholders  shall  not  surrender  their  Notes  for  final  payment  and
cancellation  on or before such final Payment Date, the  Securities  Administrator  shall  promptly  following such
date cause all funds in the  Collection  Account to which  Noteholders  are entitled and not  distributed  in final
distribution  to  Noteholders  to be withdrawn  therefrom and credited to the remaining  Noteholders  by depositing
such funds in a separate account for the benefit of such Noteholders,  and the Securities  Administrator shall give
a second written  notice to the remaining  Noteholders to surrender  their Notes for  cancellation  and receive the
final  distribution  with respect  thereto.  If within nine 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  Securities  Administrator  upon  transfer  of such  funds  to the
Certificate  Distribution  Account for payment to the  Certificateholders  in accordance with the provisions of the
Trust Agreement shall be discharged of any responsibility for such funds.

         SECTION 10.02.  [Reserved].

         SECTION 10.03.  Optional Purchase of Notes.

         (a)  All but not less than all of the  Notes  are  subject  to  purchase  by TMI,  at its  option,  on any
Payment Date on or after the Optional  Notes  Purchase Date from the then Holders  thereof.  The purchase price for
each Note  (other  than the Class A-X Notes)  shall be equal to the sum of (i) the  Note  Principal  Amount of such
Note and (ii) any  accrued but unpaid  interest  thereon at the applicable  Note Interest Rate with respect thereto
for such Payment  Date.  The purchase  price for the Class A-X Notes shall be an amount equal to the sum of (x) any
Current  Interest due (after  taking into account  payments  made on such date from Current  Interest) on the Class
A-X Notes, and (y) the present value, as of the date of such termination,  of the remaining  payments  scheduled to
be made on the Class  A-X Notes  (such  present  value to be based on a  discount  rate that will  approximate  the
expected yield to maturity of the Class A-X Notes).  In order to exercise the Optional Notes  Purchase  Right,  TMI
must,  no later than the eighth  Business  Day prior to the  applicable  Payment  Date,  deliver to the  Securities
Administrator  (with copies to the Rating Agencies and the Master Servicer)  written notice, in the form of Exhibit
O  hereto,  of its  intent to  purchase  the Notes and of the  Payment  Date on which it  intends  to do so and the
Securities  Administrator  will verify in writing to TMI the cash amount required of TMI to effect such purchase no
later than the third  Business  Day prior to the Payment Date on which such  purchase is  scheduled  to occur.  The
Securities  Administrator  shall  furnish  notice of the  exercise  of the  Optional  Notes  Purchase  Right to the
applicable  Noteholders in compliance  with  Section 10.02  of the Indenture.  On the day prior to the Payment Date
on which the Optional  Notes  Purchase Right will be exercised,  TMI shall deposit the  appropriate  amount in cash
with the Securities  Administrator.  Such amount shall be deposited by the Securities  Administrator  into the Note
Payment  Account.  Such amounts shall be paid by the Securities  Administrator  to Holders of the applicable  Notes
as provided in Section 10.03(c).

         (b)  In the case of an exercise of the Optional  Notes  Purchase  Right,  TMI shall be solely  responsible
for the costs and expenses of the Indenture Trustee, the Securities Administrator and the Master Servicer.

         (c)  The Notes shall,  following  notice to Noteholders as required by Section  10.03(a),  be purchased on
the applicable  Payment Date by TMI at the price  specified in Section  10.03(a),  and (unless TMI shall default in
the  payment of such  amount)  no  interest  shall  accrue on such  amount  for any period  after the date to which
accrued interest is calculated for purposes of calculating such amount.

         (d)  Subsequent to the purchase of the Notes  following  exercise of the Optional  Notes  Purchase  Right,
TMI shall be the sole Holder of the Notes.  TMI may  subsequently  transfer some or all of the Notes acquired by it
in accordance with the provisions of the Indenture.  All Notes issued to the  Noteholders  prior to exercise of the
Optional Securities Purchase Right shall be deemed cancelled (other than those Notes held by TMI).

                                                    ARTICLE XI

                                                    [Reserved]

                                                    ARTICLE XII

                                             MISCELLANEOUS PROVISIONS

         SECTION 12.01.  Amendment.

         This Agreement may be amended from time to time by the Initial  Seller,  the Seller,  the  Depositor,  the
Master  Servicer,  the  Securities  Administrator,  the Owner  Trustee and the Indenture  Trustee,  and without the
consent  of any of the  Securityholders,  the Yield  Maintenance  Counterparty  or the  Auction  Swap  Counterparty
(except  to the  extent  that the  rights or  obligations  of the Yield  Maintenance  Counterparty  under the Yield
Maintenance  Agreements  or of the Auction  Swap  Counterparty  under the Auction  Swap  Agreement,  are  adversely
affected  thereby or the ability of the Securities  Administrator  on behalf of the Trust to perform its respective
obligations under the Yield Maintenance  Agreements or under the Auction Swap Agreement are adversely affected,  in
which case the consent of the Yield Maintenance  Counterparty or the Auction Swap Counterparty,  as applicable,  is
required)  (i) to cure any ambiguity,  (ii) to  correct or supplement any provisions  herein which may be defective
or inconsistent  with any other  provisions  herein,  (iii) 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 or
(iv) to cause the provisions  herein to conform to or be consistent  with or in furtherance of the statements  made
with  respect  to the  Securities,  the  Issuer or this  Agreement  in any  Offering  Document,  or to  correct  or
supplement  any  provision  herein  which  may be  inconsistent  with any other  provisions  herein or in any other
Operative  Agreement;  provided,  however,  that any such action shall not adversely affect in any material respect
the interest of any Noteholder;  provided,  further,  that any such action listed in clauses (i) through (iv) above
shall be deemed not to adversely affect in any material respect the interests of any  Securityholder,  if evidenced
by  (i) written  notice to the  Indenture  Trustee from each Rating  Agency that such action will not result in the
reduction  or  withdrawal  of the rating of any  outstanding  Class of Notes  with  respect to which it is a Rating
Agency or (ii) an  Opinion of Counsel  stating  that such  amendment  shall not  adversely  affect in any  material
respect the interests of any  Securityholder,  is permitted by the Agreement and all the conditions  precedent,  if
any have been complied  with,  delivered to the Master  Servicer,  the Securities  Administrator  and the Indenture
Trustee.

         In addition,  this  Agreement  may be amended  from time to time by the Initial  Seller,  the Seller,  the
Depositor,  the Master Servicer,  the Securities  Administrator,  the Owner Trustee and the Indenture  Trustee (but
without the consent of the Yield Maintenance  Counterparty or the Auction Swap  Counterparty,  except to the extent
that the rights or obligations of the Yield Maintenance  Counterparty under the Yield Maintenance  Agreements or of
the Auction Swap Counterparty  under the Auction Swap Agreement,  are adversely  affected thereby or the ability of
the  Securities  Administrator  on  behalf of the  Trust to  perform  its  respective  obligations  under the Yield
Maintenance  Agreements or under the Auction Swap  Agreement are adversely  affected,  in which case the consent of
the Yield  Maintenance  Counterparty  or the Auction Swap  Counterparty,  as applicable,  is required) and with the
consent of a majority  in  interest  of the  Certificateholders  and a majority  in interest of each Class of Notes
affected by such  amendment for the purpose of adding any  provisions  to or changing in any manner or  eliminating
any of the  provisions  of this  Agreement or of  modifying in any manner the rights of the Holders of  Securities;
provided,  however,  that no such  amendment or waiver shall  (x) reduce  in any manner the amount of, or delay the
timing  of,  payments  on the Notes or  Ownership  Certificates  that are  required  to be made on any such Note or
Ownership  Certificate  without the consent of the Holder of such  Security,  (y) adversely  affect in any material
respect the  interests  of the Holders of any Class of Notes or  Ownership  Certificates  in a manner other than as
described  in  clause  (x)  above,  without  the  consent  of the  Holders  of  Notes of such  Class  or  Ownership
Certificates  evidencing at least a 66?% Percentage Interest in such Class of Notes or the Ownership  Certificates,
or (z) reduce  the percentage of Voting Rights  required by clause (y)  above without the consent of the Holders of
all Notes of such Class then  outstanding.  Upon approval of an amendment,  a copy of such amendment  shall be sent
to each Rating Agency.

         Notwithstanding  any provision of this  Agreement to the contrary,  neither the Indenture  Trustee nor the
Securities  Administrator  shall consent to any amendment to this Agreement  unless it shall have first received an
Opinion of Counsel,  delivered by and at the expense of the Person  seeking such  Amendment  (unless such Person is
the  Indenture  Trustee or the  Securities  Administrator,  in which case the Indenture  Trustee or the  Securities
Administrator  shall be  entitled  to be  reimbursed  for such  expenses  by the Issuer  pursuant  to Section  8.05
hereof),  to the effect that such  amendment  will not result in the imposition of federal income tax on the Issuer
and that the  amendment is being made in  accordance  with the terms  hereof,  such  amendment is permitted by this
Agreement and all conditions precedent, if any, have been complied with.

         Promptly  after the execution of any such  amendment the Securities  Administrator  shall furnish,  at the
expense of the Person that  requested the  amendment if such Person is the Initial  Seller or the Seller (but in no
event at the expense of the Indenture  Trustee or the  Securities  Administrator),  otherwise at the expense of the
Issuer, a copy of such amendment and the Opinion of Counsel referred to in the immediately  preceding  paragraph to
the Master Servicer and each Rating Agency.

         It shall not be  necessary  for the consent of  Securityholders  under this  Section 12.01  to approve the
particular  form of any  proposed  amendment;  instead it shall be  sufficient  if such consent  shall  approve the
substance  thereof.  The manner of obtaining  such consents and of evidencing  the  authorization  of the execution
thereof by  Securityholders  shall be subject to such reasonable  regulations as the Securities  Administrator  may
prescribe.

         The  Indenture  Trustee and  Securities  Administrator  may, but shall not be obligated to, enter into any
amendment  pursuant to this  12.01 Section  that affects its rights,  duties and immunities under this Agreement or
otherwise.

         SECTION 12.02.  Recordation of Agreement; Counterparts.

         To the extent  permitted by applicable  law, this Agreement is subject to  recordation in all  appropriate
public  offices for real property  records in all the counties or other  comparable  jurisdictions  in which any or
all of the Mortgaged  Properties are situated,  and in any other appropriate  public recording office or elsewhere,
such recordation to be effected by the Indenture  Trustee at the expense of the Issuer,  but only upon direction of
Noteholders  accompanied by an Opinion of Counsel to the effect that such  recordation  materially and beneficially
affects the interests of the Noteholders.

         For the purpose of  facilitating  the  recordation  of this  Agreement  as herein  provided  and for other
purposes, this Agreement may be executed  simultaneously in any number of counterparts,  each of which counterparts
shall  be  deemed  to be an  original,  and  such  counterparts  shall  together  constitute  but one and the  same
instrument.

         SECTION 12.03.  [Reserved].

         SECTION 12.04.  Governing Law; Jurisdiction.

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

         SECTION 12.05.  Notices.

         All  directions,  demands and notices  hereunder shall be in writing and shall be deemed to have been duly
given if personally  delivered at or mailed by first class mail,  postage  prepaid,  or by express delivery service
or delivered via telecopy,  to (a) in the case of the Initial Seller, to Thornburg  Mortgage Home Loans,  Inc., 150
Washington  Avenue,   Suite  302,  Santa  Fe,  New  Mexico  87501,   Attention:   Deborah  Burns  (telecopy  number
(505) 467-5215),  or such other  address or telecopy  number as may  hereafter  be  furnished  to the  Seller,  the
Depositor,  the Master  Servicer,  the  Securities  Administrator,  the Indenture  Trustee and the Owner Trustee in
writing by the Initial Seller,  (b) in the case of the Seller,  Thornburg  Mortgage  Funding,  Inc., 150 Washington
Avenue,  Suite 302, Santa Fe, New Mexico 87501,  Attention:  Deborah Burns  (telecopy  number  (505) 467-5215),  or
such other  address or telecopy  number as may hereafter be furnished to the Initial  Seller,  the  Depositor,  the
Master  Servicer,  the  Securities  Administrator,  the  Indenture  Trustee and the Owner Trustee in writing by the
Seller, (c) in the case of the Indenture  Trustee,  to the Corporate Trust Office or such other address or telecopy
number as may hereafter be furnished to the Initial Seller,  the Seller,  the Depositor,  the Master Servicer,  the
Securities  Administrator  and the Owner  Trustee  in  writing  by the  Indenture  Trustee,  (d) in the case of the
Depositor,  to Structured  Asset  Mortgage  Investments  II, Inc.,  383 Madison  Avenue,  New York, New York 10179,
Attention:  Thornburg  2007-3,  or such other address or telecopy number as may be furnished to the Initial Seller,
the Seller,  the Master Servicer,  the Owner Trustee and the Indenture Trustee in writing by the Depositor,  (e) in
the case of the  Owner  Trustee,  Wilmington  Trust  Company,  Rodney  Square  North,  1100  North  Market  Street,
Wilmington,  Delaware  19890,  Attention:  Thornburg  2007-3  or such  other  address  or  telecopy  number  as may
hereinafter be furnished to the Initial Seller,  the Seller,  the Depositor,  the Master  Servicer,  the Securities
Administrator,  and the  Indenture  Trustee  in  writing  by the Owner  Trustee;  and (f) in the case of the Master
Servicer or Securities  Administrator,  for certificate  transfer  purposes,  at its Corporate Trust Office and for
all other purposes at P.O. Box 98,  Columbia,  Maryland  21046,  or for overnight  delivery,  at 9062 Old Annapolis
Road,  Columbia,  Maryland  21045  (Attention:  Thornburg  2007-3),  Facsimile  no: (410)  715-2380,  or such other
address or telecopy  number as may be  furnished  to the  Depositor,  the Seller,  the  Initial  Seller,  the Owner
Trustee and the Indenture  Trustee in writing by the Master  Servicer or the Securities  Administrator.  Any notice
required or permitted to be mailed to a  Securityholder  shall be given by first class mail,  postage  prepaid,  at
the address of such Holder as shown in the Note Register or  Certificate  Register,  as  applicable.  Notice of any
Event of  Default  shall be given by  telecopy  and by  certified  mail.  Any  notice  so  mailed  within  the time
prescribed in this Agreement  shall be  conclusively  presumed to have duly been given when mailed,  whether or not
the  Securityholder  receives such notice.  A copy of any notice required to be telecopied  hereunder shall also be
mailed to the appropriate party in the manner set forth above.

         SECTION 12.06.  Severability of Provisions.

         If any one or more of the  covenants,  agreements,  provisions  or terms of this  Agreement  shall for any
reason whatsoever be held invalid, then such covenants,  agreements,  provisions or terms shall be deemed severable
from the remaining  covenants,  agreements,  provisions  or terms of this  Agreement and shall in no way affect the
validity or enforceability  of the other provisions of this Agreement or of the Notes or the Ownership  Certificate
or the rights of the Noteholders or the Certificateholders.

         SECTION 12.07.  Article and Section References.

         All article and section  references used in this Agreement,  unless  otherwise  provided,  are to articles
and sections in this Agreement.

         SECTION 12.08.  Notice to the Rating Agencies.

         (a)  The Securities  Administrator  shall be obligated to use its best reasonable  efforts promptly to
provide notice to the Rating  Agencies with respect to each of the following of which a Responsible  Officer of the
Securities Administrator has actual knowledge:

                 (i)     any material change or amendment to this Agreement;

                 (ii)    the occurrence of any Event of Default that has not been cured or waived;

                 (iii)   the resignation or termination of the Master Servicer,  the Securities  Administrator or
     the Indenture Trustee;

                 (iv)    the final payment to Holders of the Notes of any Class; and

                 (v)     any change in the location of any Account.

         (b)  In addition,  the Securities  Administrator  shall promptly  furnish to the Rating Agencies copies of
each  Statement  to  Securityholders  described in Section 5.04  hereof;  if the  Indenture  Trustee is acting as a
successor Master Servicer  pursuant to Section 7.02 hereof,  the Indenture Trustee shall notify the Rating Agencies
of any event that would result in the inability of the Indenture  Trustee to make Advances and the Master  Servicer
shall promptly furnish to each Rating Agency copies of the following:

                 (i)     each annual statement as to compliance described in Section 3.17 hereof;

                 (ii)    each annual  assessment  of  compliance  and  attestation  report  described  in Section  3.16
     hereof; and

                 (iii)   each notice  delivered  pursuant to Section  5.05(b)  hereof  which  relates to the fact
     that the Master Servicer has not made an Advance.

         (c)  All notices to the Rating  Agencies  provided for in this  Agreement  shall be in writing and sent by
first class mail, telecopy or overnight courier, as follows:

              If to Moody's, to:

              Moody's Investors Service, Inc.
              99 Church Street
              New York, New York 10007
              Attention:  Residential Mortgages

              If to S&amp;P, to:

              55 Water Street
              New York, New York  10041
              Attention: Residential Mortgages

         SECTION 12.09.  Further Assurances.

         Notwithstanding  any other  provision of this  Agreement,  neither the  Securityholders  nor the Indenture
Trustee shall have any obligation to consent to any amendment or  modification  of this Agreement  unless they have
been  provided  reasonable  security or  indemnity  against  their  out-of-pocket  expenses  (including  reasonable
attorneys' fees) to be incurred in connection therewith.

         SECTION 12.10.  Benefits of Agreement.

         Nothing in this  Agreement or in the  Securities,  expressed or implied,  shall give to any Person,  other
than the  Securityholders  and the  parties  hereto and their  successors  hereunder,  any  benefit or any legal or
equitable right, remedy or claim under this Agreement.

         SECTION 12.11.  [Reserved].

         SECTION 12.12.  Successors and Assigns.

         The  provisions  of this  Agreement  shall be  binding  upon and inure to the  benefit  of the  respective
successors and assigns of the parties hereto.

         SECTION 12.13.  [Reserved].

         SECTION 12.14.  Execution by the Issuer.

         It is expressly understood and agreed by the parties hereto that (a) this Agreement is executed and
delivered by Wilmington Trust Company, not individually or personally but solely as Owner Trustee of the Issuer,
in the exercise of the powers and authority conferred and vested in it as trustee, (b) each of the
representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as
personal representations, undertakings and agreements by Wilmington Trust Company but is made and intended for
the purpose of binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability
on Wilmington Trust Company, 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 (d) under no circumstances shall Wilmington Trust Company be
personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this
Agreement or any other document.

         IN WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto by their respective
officers thereunto duly authorized, all as of the day and year first above written.

                                                     THORNBURG MORTGAGE SECURITIES TRUST 2007-3

                                                     By: WILMINGTON TRUST COMPANY, not in its individual capacity
                                                               but solely as
                                                               Owner Trustee

                                                     By:  /s/ James P. Lawler                     
                                                        Name: James P. Lawler
                                                        Title: Vice President

                                                     STRUCTURED ASSET MORTGAGE INVESTMENTS II INC., as Depositor

                                                     By:  /s/ Baron Silverstein                   
                                                        Name: Baron Silverstein
                                                        Title: Senior Managing Director

                                                     LASALLE BANK NATIONAL ASSOCIATION, as Indenture Trustee and
                                                          Custodian

                                                     By:  /s/ Rita Lopez                          
                                                        Name: Rita Lopez
                                                        Title: Vice President

                                                     WELLS FARGO BANK, N.A.,
                                                          as Master Servicer

                                                     By:  /s/ Carla S. Walker                     
                                                        Name: Carla S. Walker
                                                        Title: Vice President

                                                     WELLS FARGO BANK, N.A.,
                                                          as Securities Administrator

                                                     By:  /s/ Carla S. Walker                     
                                                        Name: Carla S. Walker
                                                        Title: Vice President

                                                     THORNBURG MORTGAGE HOME LOANS, INC., as Initial Seller

                                                     By:  /s/ Deborah J. Burns                    
                                                        Name:  Deborah J. Burns
                                                        Title:    Senior Vice President

                                                     THORNBURG MORTGAGE FUNDING, INC., as Seller

                                                     By:  /s/ Nathan Fellers                      
                                                        Name:  Nathan Fellers
                                                        Title:    Senior Vice President

Solely for the purposes of Section 3.25,
accepted and agreed to by:

THORNBURG MORTGAGE, INC.

By:  /s/ Deborah J. Burns                        
     Name:  Deborah J. Burns
     Title:    Senior Vice President

STATE OF NEW YORK                   )
                                    ) ss.:
COUNTY OF NEW YORK                  )

         On the 1st day of July  2007,  before  me, a notary  public  in and for said  State,  personally
appeared  Baron Silverstein, known to me to be a Senior Managing Director of Structured  Asset Mortgage  Investments II Inc., a
Delaware  corporation,  that executed the within instrument,  and also known to me to be the person who executed it
on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument.

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

                                                        /s/ Michelle Sterling                  
                                                              Notary Public

STATE OF NEW MEXICO                 )
                                    ) ss.:
COUNTY OF SANTA FE                  )

         On the 1st day of July  2007,  before  me, a notary  public  in and for said  State,  personally
appeared  Deborah J. Burns known to me to be a Senior Vice  President of  Thornburg  Mortgage  Home Loans,  Inc., a
Delaware  corporation,  that executed the within instrument,  and also known to me to be the person who executed it
on behalf of said corporation, and acknowledged to me that such corporation executed the within instrument.

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

                                                        /s/ Jane C. Yates                      
                                                              Notary Public

STATE OF NEW MEXICO                 )
                                    ) ss.:
COUNTY OF SANTA FE                  )

         On the 1st day of July 2007,  before  me, a notary  public  in and for said  State,  personally
appeared Nathan Fellers known to me to be a Senior Vice President of Thornburg  Mortgage Funding,  Inc., a Delaware
corporation,  that executed the within instrument,  and also known to me to be the person who executed it on behalf
of said corporation, and acknowledged to me that such corporation executed the within instrument.

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

                                                        /s/ Jane C. Yates                      
                                                              Notary Public

STATE OF ILLINOIS       )
                        ) ss.:
COUNTY OF COOK          )

         On the 1st day of July 2007,  before  me, a notary  public  in and for said  State,  personally
appeared Rita Lopez known to me to be Vice President of LaSalle Bank National  Association  that executed the
within  instrument,  and also known to me to be the  person  who  executed  it on behalf of said  corporation,  and
acknowledged to me that such corporation executed the within instrument.

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

                                                        /s/ Christine M. Orsi                  
                                                              Notary Public

STATE OF DELAWARE                           )
                                            ) ss.:
COUNTY OF WILMINGTON                        )

         On the 1st day of July 2007,  before  me, a notary  public  in and for said  State,  personally
appeared  James P. Lawler,  known to me to be Vice President of  Wilmington  Trust  Company,  a  national  banking
association  that executed the within  instrument,  and also known to me to be the person who executed it on behalf
of said corporation, and acknowledged to me that such corporation executed the within instrument.

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

                                                        /s/ Amanda E. Gamble                   
                                                              Notary Public

STATE OF MARYLAND                   )
                                    ) ss.:
COUNTY OF HOWARD                    )

         On the 1st day of July 2007,  before  me, a notary  public  in and for said  State,  personally
appeared  Carla S. Walker,  known to me to be a Vice President of Wells Fargo Bank, N.A., and also known to me
to be the person who  executed  it on behalf of said  corporation,  and  acknowledged  to me that such  corporation
executed the within instrument.

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

                                                        /s/ Graham M. Oglesby                  
                                                              Notary Public

                                                    SCHEDULE I

                                              MORTGAGE LOAN SCHEDULE

        Note Date                  Type                  Amount                Status             Stage
_____________________________________________________________________________________________________________________
        09/11/2006                 WARE                700,000.00                OH                 IC
        10/13/2006                 WARE                280,000.00                OH                 IC
        07/06/2006                 WARE                625,000.00                OH                 IC
        12/18/2006                 WARE               1,760,000.00               OH                 IC
        09/06/2006                 WARE                975,000.00                OH                 FP
        08/11/2006                 WARE               1,125,000.00               OH                 FP
        09/01/2006                 WARE                760,000.00                OH                 FC
        01/03/2007                 WARE                975,000.00                OH                 FP
        12/11/2006                 WARE               1,882,000.00               OH                 FP
        12/27/2006                 WARE               1,096,000.00               OH                 FP
        03/08/2007                 WARE                862,500.00                OH                 IC
        12/21/2006                 WARE                674,798.00                OH                 IC
        02/19/2007                 WARE               1,137,500.00               OH                 IC
        02/21/2007                 WARE                720,000.00                OH                 IC
        02/16/2007                 WARE                336,000.00                OH                 IC
        03/12/2007                 WARE                645,000.00                OH                 IC
        02/28/2007                 WARE                770,000.00                OH                 IC
        03/06/2007                 WARE                246,000.00                OH                 IC
        04/18/2007                 WARE                250,000.00                OH                 IC
        03/23/2007                 WARE               1,057,400.00               OH                 IC
        02/16/2007                 WARE                712,500.00                OH                 IC
        06/22/2006                 WARE                399,200.00                OH                 FP
        02/23/2007                 WARE                204,000.00                OH                 IC
        02/08/2007                 WARE                555,000.00                OH                 FP
        02/26/2007                 WARE                530,000.00                OH                 IC
        03/26/2007                 WARE                344,000.00                OH                 IC
        02/26/2007                 WARE               2,252,500.00               OH                 IC
        03/26/2007                 WARE               1,400,000.00               OH                 IC
        03/27/2007                 WARE                850,000.00                OH                 IC
        02/16/2007                 WARE               1,950,000.00               OH                 IC
        04/25/2007                 WARE               1,550,000.00               OH                 IC
        04/27/2007                 WARE               1,039,920.00               OH                 IC
        04/04/2007                 WARE               1,235,000.00               OH                 IC
        02/27/2007                 WARE                650,000.00                OH                 IC
        03/16/2007                 WARE               1,880,000.00               OH                 IC
        03/15/2007                 WARE                106,300.00                OH                 IC
        03/19/2007                 WARE                221,250.00                OH                 IC
        03/12/2007                 WARE               1,800,000.00               OH                 IC
        03/09/2007                 WARE                310,000.00                OH                 IC
        03/08/2007                 WARE               1,256,250.00               OH                 IC
        03/27/2007                 WARE                406,400.00                OH                 IC
        03/02/2007                 WARE               1,388,000.00               OH                 IC
        02/26/2007                 WARE                108,000.00                OH                 IC
        03/26/2007                 WARE                340,000.00                OH                 IC
        03/08/2007                 WARE               1,293,750.00               OH                 IC
        03/21/2007                 WARE                806,400.00                OH                 IC
        03/26/2007                 WARE               1,000,000.00               OH                 IC
        03/01/2007                 WARE                728,000.00                OH                 IC
        02/27/2007                 WARE               1,000,000.00               OH                 IC
        03/09/2007                 WARE                960,000.00                OH                 IC
        02/22/2007                 WARE                560,000.00                OH                 IC
        03/02/2007                 WARE                920,600.00                OH                 IC
        04/10/2007                 WARE                525,000.00                OH                 IC
        03/07/2007                 WARE                200,000.00                OH                 IC
        03/27/2007                 WARE                251,100.00                OH                 IC
        03/19/2007                 WARE                945,000.00                OH                 IC
        03/29/2007                 WARE               1,160,000.00               OH                 IC
        03/23/2007                 WARE                864,000.00                OH                 IC
        03/26/2007                 WARE               1,060,000.00               OH                 IC
        03/20/2007                 WARE                130,800.00                OH                 IC
        03/28/2007                 WARE                625,000.00                OH                 IC
        03/29/2007                 WARE                500,000.00                OH                 IC
        03/19/2007                 WARE                760,000.00                OH                 IC
        03/25/2007                 WARE                780,000.00                OH                 IC
        03/23/2007                 WARE                832,000.00                OH                 IC
        03/29/2007                 WARE               1,320,000.00               OH                 IC
        03/19/2007                 WARE               1,400,000.00               OH                 IC
        03/16/2007                 WARE               1,406,981.00               OH                 IC
        03/19/2007                 WARE               2,000,000.00               OH                 IC
        03/22/2007                 WARE                370,000.00                OH                 IC
        03/08/2007                 WARE               2,200,000.00               OH                 IC
        04/02/2007                 WARE               2,850,000.00               OH                 IC
        03/23/2007                 WARE                900,000.00                OH                 IC
        03/23/2007                 WARE                688,000.00                OH                 IC
        03/13/2007                 WARE                300,000.00                OH                 IC
        03/30/2007                 WARE                230,000.00                OH                 IC
        03/19/2007                 WARE                626,500.00                OH                 IC
        03/19/2007                 WARE               1,200,000.00               OH                 IC
        03/23/2007                 WARE               1,102,000.00               OH                 IC
        03/30/2007                 WARE                944,000.00                OH                 IC
        03/20/2007                 WARE                472,000.00                OH                 IC
        03/20/2007                 WARE                191,190.00                OH                 IC
        03/19/2007                 WARE                150,000.00                OH                 IC
        03/30/2007                 WARE               1,856,000.00               OH                 IC
        03/19/2007                 WARE                481,550.00                OH                 IC
        03/22/2007                 WARE                145,800.00                OH                 IC
        03/23/2007                 WARE               2,094,800.00               OH                 IC
        04/03/2007                 WARE                532,500.00                OH                 IC
        03/27/2007                 WARE                123,600.00                OH                 IC
        04/25/2007                 WARE                871,000.00                OH                 IC
        04/18/2007                 WARE               1,960,000.00               OH                 IC
        04/03/2007                 WARE                536,000.00                OH                 IC
        03/23/2007                 WARE                840,000.00                OH                 IC
        04/23/2007                 WARE               2,080,000.00               OH                 IC
        04/20/2007                 WARE               1,436,000.00               OH                 IC
        03/27/2007                 WARE               1,000,000.00               OH                 IC
        03/23/2007                 WARE               2,200,000.00               OH                 IC
        04/04/2007                 WARE                148,000.00                OH                 IC
        04/30/2007                 WARE                476,000.00                OH                 IC
        03/22/2007                 WARE                278,720.00                OH                 IC
        04/23/2007                 WARE               1,260,000.00               OH                 IC
        05/08/2007                 WARE               1,390,112.00               OH                 IC
        04/27/2007                 WARE               1,510,000.00               OH                 IC
        04/30/2007                 WARE               1,087,000.00               OH                 IC
        04/24/2007                 WARE                565,600.00                OH                 IC
        05/04/2007                 WARE                800,000.00                OH                 IC
        04/17/2007                 WARE                556,400.00                OH                 IC
        04/27/2007                 WARE               1,119,920.00               OH                 IC
        05/03/2007                 WARE               3,250,000.00               OH                 IC
        04/24/2007                 WARE                678,848.00                OH                 IC
        05/02/2007                 WARE                815,000.00                OH                 IC
        04/26/2007                 WARE                388,000.00                OH                 IC
        05/04/2007                 WARE                479,200.00                OH                 IC
        04/02/2007                 WARE                299,200.00                OH                 IC
        04/25/2007                 WARE                600,000.00                OH                 IC
        04/16/2007                 WARE                980,000.00                OH                 IC
        04/25/2007                 WARE               1,283,200.00               OH                 IC
        04/18/2007                 WARE                920,000.00                OH                 IC
        04/30/2007                 WARE                345,000.00                OH                 IC
        04/26/2007                 WARE               1,495,000.00               OH                 IC
        04/26/2007                 WARE               1,253,625.00               OH                 IC
        04/23/2007                 WARE               1,275,000.00               OH                 IC
        04/16/2007                 WARE                980,000.00                OH                 IC
        04/27/2007                 WARE                633,420.00                OH                 IC
        04/26/2007                 WARE                112,000.00                OH                 IC
        05/10/2007                 WARE               1,000,000.00               OH                 IC
        04/20/2007                 WARE               1,188,000.00               OH                 IC
        04/25/2007                 WARE               1,000,000.00               OH                 IC
        04/19/2007                 WARE                474,500.00                OH                 IC
        04/13/2007                 WARE                291,500.00                OH                 IC
        05/18/2007                 WARE               1,308,000.00               OH                 IC
        04/26/2007                 WARE                350,000.00                OH                 IC
        05/10/2007                 WARE               1,747,500.00               OH                 IC
        04/24/2007                 WARE               1,250,000.00               OH                 IC
        05/01/2007                 WARE                282,000.00                OH                 IC
        05/04/2007                 WARE                520,000.00                OH                 IC
        05/17/2007                 WARE                88,000.00                 OH                 IC
        05/02/2007                 WARE               5,225,000.00               OH                 IC
        05/16/2007                 WARE               1,640,000.00               OH                 IC
        05/07/2007                 WARE               2,200,000.00               OH                 IC
        05/17/2007                 WARE               1,400,000.00               OH                 IC
        04/18/2007                 WARE                202,400.00                OH                 IC
        04/20/2007                 WARE                206,000.00                OH                 IC
        05/18/2007                 WARE               2,423,750.00               OH                 IC
        05/11/2007                 WARE                98,875.00                 OH                 IC
        05/09/2007                 WARE               1,050,000.00               OH                 IC
        04/30/2007                 WARE                220,000.00                OH                 IC
        05/15/2007                 WARE                750,000.00                OH                 IC
        05/17/2007                 WARE                369,449.00                OH                 IC
        05/09/2007                 WARE               2,480,000.00               OH                 IC
        05/15/2007                 WARE                674,353.00                OH                 IC
        05/15/2007                 WARE               1,000,000.00               OH                 IC
        05/11/2007                 WARE                542,750.00                OH                 IC
        05/10/2007                 WARE               2,096,250.00               OH                 IC
        05/11/2007                 WARE               2,000,000.00               OH                 IC
        05/15/2007                 WARE                599,200.00                OH                 IC
        05/14/2007                 WARE                350,000.00                OH                 IC
        05/25/2006                 WARE                565,040.00                OH                 FC
        04/21/2006                 WARE                295,369.00                OH                 FC
        04/12/2006                 WARE                440,000.00                OH                 FC
        06/27/2006                 WARE               2,520,000.00               OH                 FP
        07/07/2006                 WARE               2,800,000.00               OH                 FP
        06/02/2006                 WARE               3,500,000.00               OH                 FP
        06/05/2006                 WARE               7,000,000.00               OH                 FP
        06/27/2006                 WARE               9,999,999.00               OH                 FC
        06/15/2006                 WARE               2,670,000.00               OH                 FP
        06/02/2006                 WARE               3,780,000.00               OH                 FP
        06/27/2006                 WARE               3,000,000.00               OH                 FP
        06/26/2006                 WARE               3,300,000.00               OH                 FP
        04/28/2006                 WARE               5,600,000.00               OH                 FC
        05/24/2006                 WARE               3,640,000.00               OH                 FP
        06/16/2006                 WARE               4,100,000.00               OH                 FP
        08/25/2006                 WARE               3,000,000.00               OH                 FP
        07/24/2006                 WARE               3,960,000.00               OH                 FC
        07/21/2006                 WARE               2,812,500.00               OH                 FC
        05/25/2006                 WARE               5,160,000.00               OH                 FC
        07/10/2006                 WARE               2,765,000.00               OH                 FC
        01/04/2007                 WARE               3,750,000.00               OH                 FP
        07/07/2006                 WARE               3,430,000.00               OH                 FC
        06/19/2006                 WARE               4,125,000.00               OH                 FP
        06/22/2006                 WARE               2,870,000.00               OH                 FP
        05/15/2006                 WARE               2,800,000.00               OH                 FP
        08/10/2006                 WARE               3,920,000.00               OH                 FC
        07/26/2006                 WARE               2,628,000.00               OH                 FC
        08/01/2006                 WARE               2,865,000.00               OH                 FP
        08/11/2006                 WARE               2,740,000.00               OH                 FC
        08/10/2006                 WARE               4,462,500.00               OH                 FC
        07/17/2006                 WARE               2,610,000.00               OH                 FP
        08/11/2006                 WARE               2,550,000.00               OH                 FC
        06/29/2006                 WARE                60,900.00                 OH                 FP
        07/07/2006                 WARE               2,625,000.00               OH                 FP
        06/21/2006                 WARE               2,798,900.00               OH                 FC
        06/16/2006                 WARE               2,730,000.00               OH                 FC
        05/15/2006                 WARE               5,250,000.00               OH                 FP
        05/12/2006                 WARE               2,900,000.00               OH                 FP
        07/25/2006                 WARE               2,625,000.00               OH                 FC
        08/18/2006                 WARE               3,556,000.00               OH                 FP
        07/07/2006                 WARE               2,625,000.00               OH                 FP
        08/08/2006                 WARE               3,750,000.00               OH                 FC
        08/22/2006                 WARE               4,078,500.00               OH                 FC
        07/03/2006                 WARE               3,600,000.00               OH                 FP
        08/15/2006                 WARE               2,950,000.00               OH                 FC
        08/03/2006                 WARE               3,187,500.00               OH                 FC
        08/17/2006                 WARE               3,804,000.00               OH                 FP
        10/03/2006                 WARE               3,059,027.00               OH                 FC
        08/25/2006                 WARE               2,946,840.00               OH                 FC
        10/09/2006                 WARE               3,220,000.00               OH                 FC
        10/06/2003                 WARE               2,770,000.00               OH                 FC
        10/16/2006                 WARE               2,814,167.00               OH                 FC
        10/10/2006                 WARE               3,000,000.00               OH                 FC
        09/07/2006                 WARE               2,850,000.00               OH                 FC
        09/13/2006                 WARE               3,600,000.00               OH                 FC
        09/27/2006                 WARE               3,000,000.00               OH                 FC
        09/25/2006                 WARE               6,000,000.00               OH                 FC
        06/20/2006                 WARE               4,620,000.00               OH                 FC
        06/29/2006                 WARE               2,659,000.00               OH                 FP
        05/23/2006                 WARE               5,503,200.00               OH                 FP
        08/21/2006                 WARE               5,300,000.00               OH                 FC
        08/09/2006                 WARE               3,800,000.00               OH                 FC
        07/28/2006                 WARE               4,500,000.00               OH                 FC
        07/12/2006                 WARE               3,850,000.00               OH                 FC
        08/25/2006                 WARE               6,900,000.00               OH                 FP
        07/18/2006                 WARE               4,300,000.00               OH                 FC
        07/31/2006                 WARE               5,100,000.00               OH                 FP
        07/27/2006                 WARE               4,165,000.00               OH                 FC
        10/27/2006                 WARE               3,354,000.00               OH                 FC
        10/26/2006                 WARE               2,900,000.00               OH                 FC
        10/10/2006                 WARE               3,885,000.00               OH                 FC
        10/18/2006                 WARE               2,534,500.00               OH                 FC
        09/21/2006                 WARE               3,360,000.00               OH                 FC
        07/25/2006                 WARE               7,000,000.00               OH                 FC
        09/12/2006                 WARE               2,880,000.00               OH                 FC
        10/02/2006                 WARE               2,987,000.00               OH                 FC
        10/04/2006                 WARE               3,629,000.00               OH                 FC
        10/02/2006                 WARE               2,999,999.00               OH                 FC
        10/13/2006                 WARE               3,050,000.00               OH                 FC
        10/17/2006                 WARE               3,650,000.00               OH                 FC
        09/29/2006                 WARE               2,560,000.00               OH                 FC
        10/30/2006                 WARE               2,992,500.00               OH                 FC
        07/31/2006                 WARE               2,600,000.00               OH                 FC
        09/22/2006                 WARE               4,375,000.00               OH                 FC
        09/25/2006                 WARE               3,000,000.00               OH                 FC
        09/15/2006                 WARE               3,120,448.00               OH                 FC
        12/22/2006                 WARE               2,000,000.00               OH                 IC
        03/28/2007                 WARE                300,000.00                OH                 IC
        01/15/2007                 WARE                210,000.00                OH                 IC
        01/22/2007                 WARE                345,000.00                OH                 IC
        01/19/2007                 WARE                454,400.00                OH                 FP
        03/20/2007                 WARE               2,650,000.00               OH                 IC
        08/09/2006                 WARE               2,502,500.00               OH                 FP
        08/04/2006                 WARE               2,640,000.00               OH                 FP
        07/26/2006                 WARE               4,057,000.00               OH                 FC
        08/11/2006                 WARE               3,000,000.00               OH                 FP
        07/19/2006                 WARE               2,625,000.00               OH                 FP
        08/18/2006                 WARE               6,200,000.00               OH                 FC
        07/25/2006                 WARE               2,700,000.00               OH                 FP
        01/24/2007                 WARE                376,000.00                OH                 FP
        02/16/2007                 WARE               2,400,000.00               OH                 IC
        07/01/2006                 WARE                401,718.00                OH                 FP
        08/22/2006                 WARE               1,950,000.00               OH                 FP
        02/16/2007                 WARE                380,000.00                OH                 IC
        02/26/2007                 WARE                900,000.00                OH                 FP
        02/08/2007                 WARE                177,000.00                OH                 IC
        03/16/2007                 WARE                640,000.00                OH                 IC
        04/05/2007                 WARE               2,895,000.00               OH                 IC
        03/21/2007                 WARE                400,000.00                OH                 IC
        03/08/2007                 WARE                210,000.00                OH                 IC
        03/26/2007                 WARE                512,000.00                OH                 IC
        03/25/2007                 WARE                576,000.00                OH                 IC
        03/19/2007                 WARE                750,000.00                OH                 IC
        03/29/2007                 WARE                585,000.00                OH                 IC
        03/30/2007                 WARE                206,800.00                OH                 IC
        03/27/2007                 WARE                489,000.00                OH                 IC
        03/16/2007                 WARE                650,000.00                OH                 IC
        03/22/2007                 WARE               2,000,000.00               OH                 IC
        03/22/2007                 WARE                806,400.00                OH                 IC
        03/17/2007                 WARE                505,000.00                OH                 IC
        03/29/2007                 WARE                664,000.00                OH                 IC
        03/21/2007                 WARE                323,200.00                OH                 IC
        03/15/2007                 WARE               1,500,000.00               OH                 IC
        03/30/2007                 WARE                375,000.00                OH                 IC
        03/15/2007                 WARE                144,000.00                OH                 IC
        03/22/2007                 WARE                215,200.00                OH                 IC
        03/21/2007                 WARE               2,035,200.00               OH                 IC
        03/22/2007                 WARE               1,581,444.00               OH                 IC
        04/03/2007                 WARE               4,500,000.00               OH                 IC
        03/29/2007                 WARE               2,340,000.00               OH                 IC
        03/09/2007                 WARE                152,700.00                OH                 IC
        04/06/2007                 WARE                620,000.00                OH                 IC
        04/02/2007                 WARE                126,700.00                OH                 IC
        03/23/2007                 WARE               1,270,000.00               OH                 IC
        03/14/2007                 WARE               1,440,000.00               OH                 IC
        03/23/2007                 WARE               1,000,000.00               OH                 IC
        03/30/2007                 WARE               3,000,000.00               OH                 IC
        03/19/2007                 WARE                954,800.00                OH                 IC
        03/19/2007                 WARE                712,000.00                OH                 IC
        03/13/2007                 WARE                628,000.00                OH                 IC
        03/28/2007                 WARE                720,000.00                OH                 IC
        03/28/2007                 WARE               1,563,200.00               OH                 IC
        03/20/2007                 WARE               1,179,000.00               OH                 IC
        04/02/2007                 WARE                268,000.00                OH                 IC
        04/04/2007                 WARE               1,320,000.00               OH                 IC
        04/06/2007                 WARE                160,800.00                OH                 IC
        04/06/2007                 WARE                160,800.00                OH                 IC
        03/19/2007                 WARE                880,000.00                OH                 IC
        03/30/2007                 WARE                439,200.00                OH                 IC
        03/23/2007                 WARE               1,600,000.00               OH                 IC
        04/05/2007                 WARE                940,000.00                OH                 IC
        04/04/2007                 WARE                720,000.00                OH                 IC
        03/20/2007                 WARE               1,465,000.00               OH                 IC
        03/23/2007                 WARE               1,108,000.00               OH                 IC
        03/27/2007                 WARE                450,000.00                OH                 IC
        04/03/2007                 WARE               1,388,000.00               OH                 IC
        03/26/2007                 WARE                440,000.00                OH                 IC
        04/10/2007                 WARE                50,000.00                 OH                 IC
        03/30/2007                 WARE                188,000.00                OH                 IC
        03/22/2007                 WARE               1,800,000.00               OH                 IC
        03/22/2007                 WARE                503,960.00                OH                 IC
        03/21/2007                 WARE                757,000.00                OH                 IC
        03/26/2007                 WARE                584,000.00                OH                 IC
        04/03/2007                 WARE                675,000.00                OH                 IC
        03/30/2007                 WARE                489,000.00                OH                 IC
        03/28/2007                 WARE                563,950.00                OH                 IC
        03/29/2007                 WARE                223,800.00                OH                 IC
        03/23/2007                 WARE               1,400,000.00               OH                 IC
        03/23/2007                 WARE               1,600,000.00               OH                 IC
        03/23/2007                 WARE                578,400.00                OH                 IC
        03/23/2007                 WARE               1,430,250.00               OH                 IC
        04/02/2007                 WARE               1,280,000.00               OH                 IC
        04/03/2007                 WARE                220,000.00                OH                 IC
        03/30/2007                 WARE                265,930.00                OH                 IC
        03/27/2007                 WARE                743,000.00                OH                 IC
        04/02/2007                 WARE                664,000.00                OH                 IC
        03/28/2007                 WARE                528,500.00                OH                 IC
        03/30/2007                 WARE                612,000.00                OH                 IC
        03/29/2007                 WARE                174,500.00                OH                 IC
        04/03/2007                 WARE               2,760,000.00               OH                 IC
        03/26/2007                 WARE               2,320,000.00               OH                 IC
        03/29/2007                 WARE               1,760,000.00               OH                 IC
        05/02/2007                 WARE               1,250,000.00               OH                 IC
        03/28/2007                 WARE               3,000,000.00               OH                 IC
        04/04/2007                 WARE               1,432,500.00               OH                 IC
        03/28/2007                 WARE                680,000.00                OH                 IC
        03/30/2007                 WARE               2,400,000.00               OH                 IC
        04/05/2007                 WARE                172,000.00                OH                 IC
        02/28/2005                 WARE                258,000.00                OH                 IP
        04/05/2007                 WARE                768,000.00                OH                 IC
        02/21/2007                 WARE                200,000.00                OH                 IC
        01/29/2007                 WARE                299,250.00                OH                 IC
        03/16/2007                 WARE                309,600.00                OH                 IC
        03/23/2007                 WARE                356,000.00                OH                 IC
        01/16/2004                 WARE                460,000.00                OH                 IP
        04/04/2007                 WARE               7,837,500.00               OH                 IC
        04/24/2007                 WARE                413,000.00                OH                 IC
        04/19/2007                 WARE               1,800,000.00               OH                 FP
        03/29/2007                 WARE                604,000.00                OH                 IC
        03/26/2007                 WARE                588,000.00                OH                 IC
        04/20/2007                 WARE                252,000.00                OH                 IC
        04/20/2007                 WARE                975,000.00                OH                 IC
        04/23/2007                 WARE                332,000.00                OH                 IC
        05/14/2007                 WARE                676,000.00                OH                 IC
        01/14/2002                 WARE               1,220,000.00               OH                 IP
        04/26/2002                 WARE                400,000.00                OH                 IP
        11/01/2001                 WARE                390,000.00                OH                 IP
        03/27/2003                 WARE                790,000.00                OH                 IP
        06/02/2003                 WARE                476,000.00                OH                 IP
        02/27/2004                 WARE                251,350.00                OH                 IP
        05/02/2003                 WARE                162,500.00                OH                 IP
        12/17/2003                 WARE                350,000.00                OH                 IP
        02/03/2004                 WARE                90,400.00                 OH                 IP
        02/13/2004                 WARE                401,700.00                OH                 IP
        03/23/2004                 WARE                271,000.00                OH                 IP
        09/15/2003                 WARE                737,600.00                OH                 IP
        11/14/2003                 WARE               2,984,000.00               OH                 IP
        12/15/2003                 WARE                500,000.00                OH                 IP
        01/23/2004                 WARE                220,000.00                OH                 IP
        01/30/2004                 WARE                900,000.00                OH                 IP
        02/20/2004                 WARE                227,000.00                OH                 IP
        02/17/2004                 WARE                650,000.00                OH                 IP
        03/03/2004                 WARE                945,000.00                OH                 IP
        03/04/2004                 WARE                239,950.00                OH                 IP
        03/17/2004                 WARE                275,600.00                OH                 IP
        03/23/2004                 WARE                577,500.00                OH                 IP
        03/26/2004                 WARE                350,000.00                OH                 IP
        03/19/2004                 WARE                366,400.00                OH                 IP
        04/13/2004                 WARE                239,200.00                OH                 IP
        03/24/2004                 WARE                568,000.00                OH                 IP
        04/09/2004                 WARE                155,600.00                OH                 IP
        04/20/2004                 WARE                143,900.00                OH                 IP
        04/19/2004                 WARE                780,000.00                OH                 IP
        04/19/2004                 WARE                860,000.00                OH                 IP
        04/01/2004                 WARE                452,500.00                OH                 IP
        04/28/2004                 WARE                540,000.00                OH                 IP
        12/02/2004                 WARE               2,000,000.00               OH                 IP
        09/03/2002                 WARE               1,300,000.00               OH                 IP
        09/24/2002                 WARE                157,000.00                OH                 IP
        01/09/2003                 WARE                303,200.00                OH                 IP
        07/09/2002                 WARE                277,700.00                OH                 IP
        05/24/2002                 WARE                93,000.00                 OH                 IP
        07/18/2002                 WARE                225,000.00                OH                 IP
        01/02/2002                 WARE                140,000.00                OH                 IP
        10/11/2002                 WARE                350,000.00                OH                 IP
        01/10/2003                 WARE                480,000.00                OH                 IP
        02/19/2003                 WARE               2,000,000.00               OH                 IP
        03/26/2003                 WARE                515,000.00                OH                 IP
        01/29/2004                 WARE                222,265.00                OH                 IP
        05/29/2003                 WARE                174,000.00                OH                 IP
        01/20/2004                 WARE                236,200.00                OH                 IP
        03/04/2004                 WARE                160,000.00                OH                 IP
        02/27/2004                 WARE                145,100.00                OH                 IP
        03/18/2004                 WARE                212,000.00                OH                 IP
        03/26/2004                 WARE                107,200.00                OH                 IP
        04/12/2004                 WARE                555,000.00                OH                 IP
        04/07/2004                 WARE                564,400.00                OH                 IP
        01/29/2004                 WARE                584,500.00                OH                 IP
        02/19/2004                 WARE                650,000.00                OH                 IP
        03/18/2004                 WARE                289,750.00                OH                 IP
        03/22/2004                 WARE                206,400.00                OH                 IP
        03/12/2004                 WARE                205,500.00                OH                 IP
        03/19/2004                 WARE                264,000.00                OH                 IP
        04/02/2004                 WARE                975,000.00                OH                 IP
        04/14/2004                 WARE                464,000.00                OH                 IP
        03/31/2004                 WARE                156,000.00                OH                 IP
        04/14/2004                 WARE                420,000.00                OH                 IP
        04/30/2004                 WARE                238,400.00                OH                 IP
        04/26/2004                 WARE               4,750,000.00               OH                 IP
        04/20/2004                 WARE               1,200,000.00               OH                 IP
        04/21/2004                 WARE                203,100.00                OH                 IP
        03/22/2004                 WARE                607,900.00                OH                 IP
        04/12/2004                 WARE                420,000.00                OH                 IP
        04/30/2004                 WARE                500,000.00                OH                 IP
        04/09/2004                 WARE                62,100.00                 OH                 IP
        04/09/2004                 WARE                329,000.00                OH                 IP
        04/20/2004                 WARE                282,700.00                OH                 IP
        04/20/2004                 WARE                333,800.00                OH                 IP
        05/06/2004                 WARE                166,400.00                OH                 IP
        04/23/2004                 WARE                450,000.00                OH                 IP
        04/29/2004                 WARE                252,000.00                OH                 IP
        04/16/2004                 WARE                599,700.00                OH                 IP
        05/14/2004                 WARE                216,000.00                OH                 IP
        04/12/2004                 WARE                285,100.00                OH                 IP
        06/04/2004                 WARE                180,700.00                OH                 IP
        06/28/2004                 WARE                165,000.00                OH                 IP
        08/23/2004                 WARE                495,700.00                OH                 IP
        07/26/2006                 WARE               1,448,000.00               OH                 FC
        08/07/2006                 WARE               1,320,000.00               OH                 FP
        08/17/2004                 WARE               1,100,000.00               OH                 FC
        12/14/2006                 WARE                746,250.00                OH                 IC
        11/20/2006                 WARE               3,045,000.00               OH                 FP
        09/27/2006                 WARE                222,400.00                OH                 FP
        10/30/2006                 WARE                200,000.00                OH                 FP
        12/18/2006                 WARE                417,000.00                OH                 FP
        12/15/2006                 WARE                570,950.00                OH                 IC
        12/15/2006                 WARE                216,000.00                OH                 IC
        12/14/2006                 WARE                317,000.00                OH                 IC
        11/21/2006                 WARE                199,200.00                OH                 FP
        11/28/2006                 WARE                524,000.00                OH                 FP
        12/14/2006                 WARE                860,000.00                OH                 FP
        12/22/2006                 WARE               5,700,000.00               OH                 FP
        12/01/2006                 WARE                424,000.00                OH                 FC
        12/06/2006                 WARE                750,000.00                OH                 FP
        12/26/2006                 WARE                800,000.00                OH                 FP
        12/29/2006                 WARE               1,960,000.00               OH                 FC
        12/26/2006                 WARE                500,000.00                OH                 FP
        05/17/2006                 WARE                440,000.00                OH                 IC
        03/23/2007                 WARE               1,500,000.00               OH                 IC
        12/15/2006                 WARE                72,000.00                 OH                 FP
        03/20/2007                 WARE               1,485,000.00               OH                 IC
        03/02/2007                 WARE                520,000.00                OH                 IC
        04/02/2007                 WARE               1,925,000.00               OH                 IC
        02/15/2007                 WARE               1,750,000.00               OH                 FP
        01/19/2007                 WARE               1,000,000.00               OH                 IC
        01/29/2007                 WARE                192,500.00                OH                 FC
        01/25/2007                 WARE                880,281.00                OH                 FP
        04/19/2007                 WARE               1,569,000.00               OH                 IC
        02/15/2007                 WARE                960,000.00                OH                 FC
        01/15/2007                 WARE                400,000.00                OH                 FC
        05/11/2007                 WARE                427,500.00                OH                 IC
        10/25/2006                 WARE                200,000.00                OH                 FP
        03/09/2007                 WARE               2,021,250.00               OH                 FP
        02/23/2007                 WARE                488,000.00                OH                 IC
        03/14/2007                 WARE               1,475,000.00               OH                 FP
        07/20/2006                 WARE               1,000,000.00               OH                 FP
        08/09/2006                 WARE                200,000.00                OH                 FP
        08/07/2006                 WARE               1,359,200.00               OH                 FC
        08/05/2006                 WARE               3,000,000.00               OH                 FP
        08/11/2006                 WARE                643,200.00                OH                 FP
        02/28/2007                 WARE                765,000.00                OH                 FP
        02/26/2007                 WARE               2,650,000.00               OH                 FP
        03/01/2007                 WARE               1,220,000.00               OH                 FP
        02/26/2007                 WARE               1,560,000.00               OH                 FC
        01/26/2007                 WARE                550,000.00                OH                 FC
        03/09/2007                 WARE                114,800.00                OH                 FP
        04/11/2007                 WARE               1,680,000.00               OH                 IC
        04/03/2007                 WARE                352,000.00                OH                 IC
        03/14/2007                 WARE                216,000.00                OH                 FP
        03/09/2007                 WARE               1,750,000.00               OH                 FP
        03/02/2007                 WARE               3,100,000.00               OH                 FP
        02/15/2007                 WARE                720,000.00                OH                 FP
        03/02/2007                 WARE               1,577,050.00               OH                 FP
        02/05/2007                 WARE                329,600.00                OH                 FP
        04/13/2007                 WARE                231,000.00                OH                 IC
        02/10/2007                 WARE                106,000.00                OH                 IC
        03/05/2007                 WARE                196,000.00                OH                 FP
        03/08/2007                 WARE               1,125,000.00               OH                 FP
        03/27/2007                 WARE               2,437,500.00               OH                 IC
        02/23/2007                 WARE               2,590,000.00               OH                 FP
        03/12/2007                 WARE                583,200.00                OH                 FP
        02/22/2007                 WARE                656,250.00                OH                 FP
        02/15/2007                 WARE               1,110,000.00               OH                 FC
        03/05/2007                 WARE               2,300,000.00               OH                 IC
        03/14/2007                 WARE               1,280,000.00               OH                 IC
        02/14/2007                 WARE               3,500,000.00               OH                 IC
        03/14/2007                 WARE                716,000.00                OH                 FP
        04/09/2007                 WARE               2,400,000.00               OH                 IC
        02/16/2007                 WARE                515,000.00                OH                 IC
        02/28/2007                 WARE                599,740.00                OH                 FP
        03/01/2007                 WARE                352,000.00                OH                 IC
        02/28/2007                 WARE                181,600.00                OH                 FP
        03/14/2007                 WARE                548,000.00                OH                 FP
        02/15/2007                 WARE                99,600.00                 OH                 FP
        03/27/2007                 WARE               2,000,000.00               OH                 IC
        03/16/2007                 WARE                950,000.00                OH                 FP
        03/12/2007                 WARE                913,600.00                OH                 FP
        03/23/2007                 WARE                999,000.00                OH                 IC
        03/14/2007                 WARE                248,000.00                OH                 FP
        03/30/2007                 WARE                600,000.00                OH                 IC
        03/02/2007                 WARE               1,000,000.00               OH                 IC
        03/01/2007                 WARE                218,000.00                OH                 FP
        04/09/2007                 WARE                599,900.00                OH                 IC
        04/02/2007                 WARE                540,000.00                OH                 IC
        03/05/2007                 WARE               1,781,250.00               OH                 FP
        03/20/2007                 WARE                448,000.00                OH                 FP
        03/06/2007                 WARE                252,400.00                OH                 FP
        04/02/2007                 WARE                234,000.00                OH                 IC
        03/05/2007                 WARE                487,500.00                OH                 FC
        03/08/2007                 WARE                456,000.00                OH                 FP
        03/21/2007                 WARE               2,659,600.00               OH                 FP
        03/30/2007                 WARE                524,000.00                OH                 IC
        02/26/2007                 WARE                208,000.00                OH                 FP
        03/27/2007                 WARE                876,000.00                OH                 FP
        03/05/2007                 WARE               1,025,000.00               OH                 IC
        03/09/2007                 WARE                950,000.00                OH                 FP
        03/01/2007                 WARE                450,000.00                OH                 FP
        02/22/2007                 WARE               2,168,000.00               OH                 IC
        02/27/2007                 WARE                250,800.00                OH                 IC
        03/30/2007                 WARE                206,800.00                OH                 IC
        03/14/2007                 WARE               1,360,000.00               OH                 FP
        03/06/2007                 WARE                630,000.00                OH                 FP
        02/27/2007                 WARE                436,000.00                OH                 IC
        03/30/2007                 WARE               2,224,000.00               OH                 IC
        03/19/2007                 WARE                407,900.00                OH                 IC
        03/19/2007                 WARE                231,908.00                OH                 IC
        03/07/2007                 WARE                236,000.00                OH                 IC
        03/16/2007                 WARE                825,000.00                OH                 IC
        03/08/2007                 WARE               1,520,000.00               OH                 FP
        04/25/2007                 WARE               1,000,000.00               OH                 IC
        03/21/2007                 WARE               1,025,000.00               OH                 FP
        04/04/2007                 WARE               2,000,000.00               OH                 IC
        04/23/2007                 WARE                96,050.00                 OH                 IC
        03/12/2007                 WARE                870,000.00                OH                 IC
        03/29/2007                 WARE               1,572,000.00               OH                 IC
        04/04/2007                 WARE               1,304,000.00               OH                 IC
        03/27/2007                 WARE                345,000.00                OH                 IC
        03/28/2007                 WARE                107,200.00                OH                 IC
        03/28/2007                 WARE               1,885,000.00               OH                 IC
        03/22/2007                 WARE                280,000.00                OH                 FP
        03/15/2007                 WARE                180,000.00                OH                 FP
        04/10/2007                 WARE                377,200.00                OH                 IC
        02/23/2007                 WARE                600,000.00                OH                 FP
        03/16/2007                 WARE                256,800.00                OH                 IC
        03/09/2007                 WARE                458,400.00                OH                 FP
        04/10/2007                 WARE               1,336,500.00               OH                 IC
        03/20/2007                 WARE               3,000,000.00               OH                 IC
        05/03/2007                 WARE                567,000.00                OH                 IC
        03/29/2007                 WARE               1,462,500.00               OH                 IC
        04/03/2007                 WARE               1,875,000.00               OH                 IC
        03/22/2007                 WARE               1,179,200.00               OH                 IC
        03/16/2007                 WARE               1,308,750.00               OH                 FP
        03/14/2007                 WARE                750,000.00                OH                 IC
        03/23/2007                 WARE                935,000.00                OH                 IC
        04/09/2007                 WARE               1,568,000.00               OH                 IC
        04/06/2007                 WARE                810,000.00                OH                 IC
        03/09/2007                 WARE               1,612,500.00               OH                 FP
        04/05/2007                 WARE               3,770,000.00               OH                 IC
        04/10/2007                 WARE                660,000.00                OH                 IC
        04/18/2007                 WARE               1,680,000.00               OH                 IC
        03/08/2007                 WARE                680,000.00                OH                 IC
        04/02/2007                 WARE                197,600.00                OH                 IC
        03/13/2007                 WARE               2,000,000.00               OH                 FP
        03/12/2007                 WARE                700,000.00                OH                 FP
        03/30/2007                 WARE                296,000.00                OH                 IC
        04/06/2007                 WARE               1,080,000.00               OH                 IC
        03/21/2007                 WARE                512,000.00                OH                 IC
        03/26/2007                 WARE                338,000.00                OH                 IC
        03/30/2007                 WARE               2,212,500.00               OH                 IC
        03/26/2007                 WARE               1,000,000.00               OH                 IC
        03/27/2007                 WARE                219,600.00                OH                 IC
        04/06/2007                 WARE                631,200.00                OH                 IC
        04/24/2007                 WARE               3,377,500.00               OH                 IC
        04/30/2007                 WARE               1,160,000.00               OH                 IC
        04/18/2007                 WARE               1,276,000.00               OH                 IC
        03/21/2007                 WARE               1,200,000.00               OH                 IC
        03/28/2007                 WARE                426,800.00                OH                 IC
        03/30/2007                 WARE               3,044,100.00               OH                 IC
        03/19/2007                 WARE               1,470,000.00               OH                 IC
        03/08/2007                 WARE               1,020,000.00               OH                 IC
        03/30/2007                 WARE               1,000,000.00               OH                 IC
        04/06/2007                 WARE                800,000.00                OH                 IC
        03/30/2007                 WARE                652,409.00                OH                 IC
        04/03/2007                 WARE               1,226,160.00               OH                 IC
        04/19/2007                 WARE                409,600.00                OH                 IC
        04/09/2007                 WARE               1,604,000.00               OH                 IC
        03/13/2007                 WARE                248,000.00                OH                 FP
        04/02/2007                 WARE               1,875,000.00               OH                 IC
        04/18/2007                 WARE               1,016,000.00               OH                 IC
        04/11/2007                 WARE               1,200,000.00               OH                 IC
        03/29/2007                 WARE                273,900.00                OH                 IC
        04/06/2007                 WARE                480,000.00                OH                 IC
        03/29/2007                 WARE               2,200,000.00               OH                 IC
        03/21/2007                 WARE                460,000.00                OH                 IC
        03/16/2007                 WARE                260,000.00                OH                 IC
        03/21/2007                 WARE               1,140,800.00               OH                 IC
        03/14/2007                 WARE               2,000,000.00               OH                 IC
        04/27/2007                 WARE                292,000.00                OH                 IC
        03/30/2007                 WARE               1,125,000.00               OH                 IC
        04/03/2007                 WARE               1,200,000.00               OH                 IC
        04/24/2007                 WARE                330,000.00                OH                 IC
        03/26/2007                 WARE                696,000.00                OH                 IC
        04/06/2007                 WARE                260,000.00                OH                 IC
        04/24/2007                 WARE                800,000.00                OH                 IC
        04/04/2007                 WARE                975,000.00                OH                 IC
        04/04/2007                 WARE                525,000.00                OH                 IC
        04/02/2007                 WARE               3,445,000.00               OH                 IC
        04/09/2007                 WARE                990,900.00                OH                 IC
        04/02/2007                 WARE               1,400,000.00               OH                 IC
        03/16/2007                 WARE                748,000.00                OH                 FP
        03/13/2007                 WARE                501,000.00                OH                 FP
        03/21/2007                 WARE               1,400,000.00               OH                 FP
        03/15/2007                 WARE                612,700.00                OH                 FP
        03/14/2007                 WARE                700,000.00                OH                 FP
        03/15/2007                 WARE               4,750,000.00               OH                 IC
        04/05/2007                 WARE                256,000.00                OH                 IC
        04/02/2007                 WARE                928,800.00                OH                 IC
        04/06/2007                 WARE               1,440,000.00               OH                 IC
        03/29/2007                 WARE                762,966.00                OH                 IC
        04/12/2007                 WARE                126,240.00                OH                 IC
        03/23/2007                 WARE                647,500.00                OH                 IC
        04/06/2007                 WARE               1,516,000.00               OH                 IC
        04/05/2007                 WARE               1,640,000.00               OH                 IC
        03/27/2007                 WARE                197,400.00                OH                 IC
        03/27/2007                 WARE                225,600.00                OH                 IC
        03/30/2007                 WARE                186,400.00                OH                 IC
        04/05/2007                 WARE                468,000.00                OH                 IC
        03/28/2007                 WARE               1,960,000.00               OH                 IC
        04/05/2007                 WARE                700,000.00                OH                 IC
        03/16/2007                 WARE               1,350,000.00               OH                 IC
        04/03/2007                 WARE               1,017,500.00               OH                 IC
        03/29/2007                 WARE               1,847,800.00               OH                 IC
        03/06/2007                 WARE                588,000.00                OH                 FP
        03/20/2007                 WARE               2,470,000.00               OH                 IC
        03/28/2007                 WARE                399,000.00                OH                 IC
        03/29/2007                 WARE               2,005,000.00               OH                 IC
        03/22/2007                 WARE               2,000,000.00               OH                 IC
        03/20/2007                 WARE               2,159,250.00               OH                 IC
        04/09/2007                 WARE               1,124,400.00               OH                 IC
        04/27/2007                 WARE                680,000.00                OH                 IC
        03/19/2007                 WARE               2,174,250.00               OH                 IC
        04/17/2007                 WARE                681,300.00                OH                 IC
        04/06/2007                 WARE                614,000.00                OH                 IC
        03/16/2007                 WARE               1,240,000.00               OH                 FP
        04/05/2007                 WARE               1,000,000.00               OH                 IC
        04/10/2007                 WARE                620,000.00                OH                 IC
        03/30/2007                 WARE                122,400.00                OH                 IC
        03/28/2007                 WARE                937,500.00                OH                 IC
        04/23/2007                 WARE               1,520,000.00               OH                 IC
        04/06/2007                 WARE                107,200.00                OH                 IC
        04/11/2007                 WARE               1,593,750.00               OH                 IC
        04/09/2007                 WARE               1,300,000.00               OH                 IC
        03/20/2007                 WARE                425,000.00                OH                 FP
        03/23/2007                 WARE                464,000.00                OH                 IC
        04/11/2007                 WARE                384,800.00                OH                 IC
        04/27/2007                 WARE                557,300.00                OH                 IC
        04/02/2007                 WARE                396,824.00                OH                 IC
        04/06/2007                 WARE                800,000.00                OH                 IC
        04/04/2007                 WARE               1,218,000.00               OH                 IC
        04/16/2007                 WARE                310,464.00                OH                 IC
        04/03/2007                 WARE               1,840,000.00               OH                 IC
        03/29/2007                 WARE                540,000.00                OH                 IC
        03/21/2007                 WARE                379,500.00                OH                 IC
        04/20/2007                 WARE               2,280,000.00               OH                 IC
        03/22/2007                 WARE               1,596,000.00               OH                 IC
        03/27/2007                 WARE               1,787,500.00               OH                 IC
        03/19/2007                 WARE               3,000,000.00               OH                 IC
        04/25/2007                 WARE                607,000.00                OH                 IC
        03/30/2007                 WARE               1,113,750.00               OH                 IC
        03/28/2007                 WARE                624,000.00                OH                 IC
        04/16/2007                 WARE               1,530,000.00               OH                 IC
        04/17/2007                 WARE               2,000,000.00               OH                 IC
        03/07/2007                 WARE                820,000.00                OH                 FP
        03/27/2007                 WARE                436,750.00                OH                 IC
        04/18/2007                 WARE               1,684,000.00               OH                 IC
        02/27/2007                 WARE                382,400.00                OH                 IC
        04/30/2007                 WARE                552,000.00                OH                 IC
        04/05/2007                 WARE                352,000.00                OH                 IC
        03/30/2007                 WARE               3,190,000.00               OH                 IC
        04/17/2007                 WARE                450,000.00                OH                 IC
        04/16/2007                 WARE                368,000.00                OH                 IC
        03/28/2007                 WARE                540,000.00                OH                 IC
        04/02/2007                 WARE               3,100,000.00               OH                 IC
        03/26/2007                 WARE                892,000.00                OH                 IC
        04/05/2007                 WARE                187,200.00                OH                 IC
        04/13/2007                 WARE                192,984.00                OH                 IC
        04/11/2007                 WARE                58,160.00                 OH                 IC
        04/20/2007                 WARE               2,137,500.00               OH                 IC
        04/12/2007                 WARE                232,000.00                OH                 IC
        04/06/2007                 WARE               1,000,000.00               OH                 IC
        03/21/2007                 WARE                880,000.00                OH                 IC
        04/25/2007                 WARE                650,000.00                OH                 IC
        04/13/2007                 WARE               2,312,000.00               OH                 IC
        03/29/2007                 WARE               2,765,000.00               OH                 IC
        04/11/2007                 WARE               1,800,000.00               OH                 IC
        04/02/2007                 WARE               1,425,000.00               OH                 IC
        04/02/2007                 WARE               2,485,000.00               OH                 IC
        04/02/2007                 WARE                937,500.00                OH                 IC
        04/02/2007                 WARE                500,000.00                OH                 IC
        03/28/2007                 WARE               3,750,000.00               OH                 IC
        04/06/2007                 WARE               1,000,000.00               OH                 IC
        04/24/2007                 WARE               1,300,000.00               OH                 IC
        03/29/2007                 WARE                480,000.00                OH                 IC
        03/21/2007                 WARE                584,000.00                OH                 FP
        04/05/2007                 WARE               1,312,500.00               OH                 IC
        04/20/2007                 WARE                486,000.00                OH                 IC
        04/16/2007                 WARE               1,000,000.00               OH                 IC
        04/13/2007                 WARE                510,000.00                OH                 IC
        04/04/2007                 WARE                460,000.00                OH                 IC
        03/30/2007                 WARE               2,625,000.00               OH                 IC
        04/13/2007                 WARE                228,750.00                OH                 IC
        04/02/2007                 WARE               1,300,000.00               OH                 IC
        04/20/2007                 WARE                483,000.00                OH                 IC
        04/23/2007                 WARE                124,000.00                OH                 IC
        04/13/2007                 WARE                799,200.00                OH                 IC
        04/05/2007                 WARE               3,388,000.00               OH                 IC
        04/05/2007                 WARE                593,550.00                OH                 IC
        04/10/2007                 WARE                417,000.00                OH                 IC
        04/02/2007                 WARE                767,200.00                OH                 IC
        01/26/2007                 WARE               1,000,000.00               OH                 IC
        01/26/2007                 WARE                720,000.00                OH                 IC
        03/02/2007                 WARE                510,400.00                OH                 IC
        04/05/2007                 WARE                823,500.00                OH                 IC
        01/16/2007                 WARE                472,000.00                OH                 FC
        02/08/2007                 WARE                162,800.00                OH                 IC
        02/06/2007                 WARE                416,800.00                OH                 IC
        04/09/2007                 WARE               3,000,000.00               OH                 IC
        04/11/2007                 WARE                360,000.00                OH                 IC
        04/04/2007                 WARE                628,800.00                OH                 IC
        04/12/2007                 WARE               1,500,000.00               OH                 IC
        04/05/2007                 WARE                225,000.00                OH                 FP
        04/12/2007                 WARE               1,412,000.00               OH                 IC
        04/03/2007                 WARE                335,000.00                OH                 IC
        04/03/2007                 WARE                525,000.00                OH                 IC
        04/04/2007                 WARE                950,000.00                OH                 IC
        04/09/2007                 WARE                182,250.00                OH                 IC
        04/27/2007                 WARE               1,628,000.00               OH                 IC
        04/11/2007                 WARE               3,500,000.00               OH                 IC
        04/09/2007                 WARE               1,200,000.00               OH                 IC
        04/24/2007                 WARE                694,000.00                OH                 IC
        04/13/2007                 WARE               1,950,000.00               OH                 IC
        04/13/2007                 WARE                540,000.00                OH                 IC
        04/10/2007                 WARE                279,300.00                OH                 IC
        04/13/2007                 WARE                608,000.00                OH                 IC
        04/30/2007                 WARE                423,200.00                OH                 IC
        05/03/2007                 WARE               1,150,000.00               OH                 IC
        04/11/2007                 WARE               1,720,000.00               OH                 IC
        04/19/2007                 WARE                255,200.00                OH                 IC
        04/17/2007                 WARE                688,000.00                OH                 IC
        04/12/2007                 WARE               1,000,000.00               OH                 IC
        04/12/2007                 WARE                232,000.00                OH                 IC
        04/12/2007                 WARE                110,000.00                OH                 IC
        04/12/2007                 WARE                179,600.00                OH                 IC
        04/16/2007                 WARE               1,500,000.00               OH                 IC
        04/18/2007                 WARE                702,000.00                OH                 IC
        03/27/2007                 WARE               1,820,000.00               OH                 IC
        04/05/2007                 WARE                500,000.00                OH                 IC
        04/05/2007                 WARE                417,500.00                OH                 IC
        04/11/2007                 WARE                620,000.00                OH                 IC
        04/24/2007                 WARE               1,552,000.00               OH                 IC
        04/20/2007                 WARE                620,000.00                OH                 IC
        03/28/2007                 WARE               1,425,000.00               OH                 IC
        04/20/2007                 WARE                530,000.00                OH                 IC
        04/16/2007                 WARE                245,520.00                OH                 IC
        04/27/2007                 WARE                900,000.00                OH                 IC
        04/20/2007                 WARE                360,000.00                OH                 IC
        04/30/2007                 WARE                119,000.00                OH                 IC
        04/16/2007                 WARE                570,000.00                OH                 IC
        04/19/2007                 WARE               1,700,000.00               OH                 IC
        04/05/2007                 WARE                575,000.00                OH                 IC
        04/04/2007                 WARE                260,000.00                OH                 IC
        03/29/2007                 WARE               1,610,000.00               OH                 IC
        04/13/2007                 WARE                135,000.00                OH                 IC
        04/17/2007                 WARE               1,481,250.00               OH                 IC
        04/20/2007                 WARE                165,000.00                OH                 IC
        04/13/2007                 WARE                600,000.00                OH                 FP
        04/06/2007                 WARE                476,250.00                OH                 IC
        04/05/2007                 WARE                256,000.00                OH                 IC
        04/09/2007                 WARE               1,200,000.00               OH                 IC
        02/23/2007                 WARE                550,000.00                OH                 IC
        05/04/2007                 WARE                868,000.00                OH                 IC
        04/25/2007                 WARE               1,500,000.00               OH                 IC
        04/23/2007                 WARE               1,900,000.00               OH                 IC
        04/18/2007                 WARE                272,000.00                OH                 IC
        04/16/2007                 WARE               1,480,000.00               OH                 IC
        04/19/2007                 WARE                250,000.00                OH                 IC
        04/17/2007                 WARE               2,640,000.00               OH                 IC
        04/18/2007                 WARE               2,235,000.00               OH                 IC
        04/25/2007                 WARE                999,950.00                OH                 IC
        04/16/2007                 WARE               1,600,000.00               OH                 FP
        04/26/2007                 WARE                451,250.00                OH                 IC
        04/19/2007                 WARE                532,500.00                OH                 IC
        04/23/2007                 WARE               1,135,200.00               OH                 IC
        04/25/2007                 WARE               1,000,000.00               OH                 IC
        04/19/2007                 WARE                796,000.00                OH                 FP
        04/20/2007                 WARE                800,000.00                OH                 IC
        04/25/2007                 WARE               1,107,000.00               OH                 IC
        04/20/2007                 WARE                650,000.00                OH                 IC
        04/25/2007                 WARE                724,000.00                OH                 IC
        04/19/2007                 WARE                384,000.00                OH                 IC
        04/23/2007                 WARE               3,330,000.00               OH                 IC
        05/17/2007                 WARE               1,237,000.00               OH                 IC
        04/26/2007                 WARE               2,132,500.00               OH                 IC
        04/23/2007                 WARE               1,237,500.00               OH                 IC
        04/19/2007                 WARE                190,000.00                OH                 IC
        04/18/2007                 WARE               6,900,000.00               OH                 IC
        03/23/2007                 WARE                383,500.00                OH                 FP
        04/23/2007                 WARE               1,475,000.00               OH                 IC
        04/23/2007                 WARE                520,000.00                OH                 IC
        04/12/2007                 WARE                320,000.00                OH                 FP
        04/24/2007                 WARE                700,000.00                OH                 IC
        04/19/2007                 WARE               1,675,000.00               OH                 IC
        04/13/2007                 WARE                618,750.00                OH                 IC
        05/02/2007                 WARE               1,417,500.00               OH                 IC
        04/20/2007                 WARE                429,000.00                OH                 IC
        04/11/2007                 WARE               1,200,000.00               OH                 IC
        05/08/2007                 WARE               1,999,990.00               OH                 IC
        04/18/2007                 WARE                690,000.00                OH                 IC
        05/03/2007                 WARE               4,700,000.00               OH                 IC
        05/09/2007                 WARE               1,800,000.00               OH                 IC
        05/15/2007                 WARE                809,000.00                OH                 IC
        05/09/2007                 WARE                784,000.00                OH                 IC
        05/11/2007                 WARE               2,560,000.00               OH                 IC
        05/14/2007                 WARE                650,000.00                OH                 IC
        04/24/2007                 WARE                542,500.00                OH                 IC
        02/03/2004                 WARE               1,700,000.00               OH                 IP
        03/31/2004                 WARE                136,000.00                OH                 IP
        05/16/2007                 WARE               1,800,000.00               OH                 IC
        05/18/2007                 WARE                216,500.00                OH                 IC
        05/18/2007                 WARE                108,800.00                OH                 IC
        05/04/2007                 WARE                164,000.00                OH                 IC
        05/18/2007                 WARE                560,000.00                OH                 IC
        07/17/2002                 WARE                175,000.00                OH                 IP
        07/26/2006                 WHOL                304,000.00                OH                 RD
        01/05/2007                 WHOL                228,000.00                OH                 RD
        04/01/2004                 WHOL               2,240,000.00               OH                 IP
        04/06/2007                 WHOL               2,800,000.00               OH                 IP
        03/26/2007                 WHOL               4,775,950.00               OH                 RD
        07/06/2006                 WHOL               1,662,500.00               OH                 FP
        10/27/2006                 WHOL               1,000,000.00               OH                 IC
        11/30/2006                 WHOL                225,000.00                OH                 FP
        06/26/2006                 WHOL               1,397,500.00               OH                 FC
        04/20/2006                 WHOL                945,000.00                OH                 FC
        07/07/2006                 WHOL                281,700.00                OH                 FP
        07/12/2006                 WHOL                525,000.00                OH                 FC
        08/17/2006                 WHOL                472,000.00                OH                 FP
        09/22/2006                 WHOL                272,300.00                OH                 FP
        10/11/2006                 WHOL                458,000.00                OH                 FC
        10/10/2006                 WHOL                212,111.00                OH                 FC
        10/24/2006                 WHOL               1,000,000.00               OH                 FP
        10/23/2006                 WHOL                640,000.00                OH                 FC
        07/06/2006                 WHOL               4,000,000.00               OH                 FC
        06/12/2006                 WHOL               4,620,000.00               OH                 IP
        11/15/2006                 WHOL                524,000.00                OH                 FC
        12/08/2006                 WHOL                246,800.00                OH                 IC
        11/27/2006                 WHOL                700,000.00                OH                 FP
        11/22/2006                 WHOL               3,975,000.00               OH                 FP
        12/06/2006                 WHOL               1,540,000.00               OH                 FP
        06/16/2006                 WHOL               3,840,000.00               OH                 FP
        03/28/2007                 WHOL                692,000.00                OH                 FP
        03/27/2007                 WHOL                866,000.00                OH                 FP
        03/22/2007                 WHOL                250,000.00                OH                 FP
        04/27/2007                 WHOL                528,000.00                OH                 IC
        03/02/2007                 WHOL               1,693,500.00               OH                 FP
        02/14/2007                 WHOL                413,000.00                OH                 FP
        01/23/2007                 WHOL                223,440.00                OH                 IC
        04/23/2007                 WHOL               1,575,000.00               OH                 IC
        04/02/2007                 WHOL                200,000.00                OH                 FP
        03/21/2007                 WHOL               1,500,000.00               OH                 FP
        02/14/2007                 WHOL                200,000.00                OH                 FP
        03/09/2007                 WHOL                647,000.00                OH                 FP
        04/09/2007                 WHOL                280,000.00                OH                 FP
        03/02/2007                 WHOL                397,100.00                OH                 IC
        04/19/2007                 WHOL                604,000.00                OH                 FP
        03/08/2007                 WHOL               1,000,000.00               OH                 FP
        02/15/2007                 WHOL                399,200.00                OH                 FP
        04/01/2007                 WHOL                495,000.00                OH                 IC
        04/17/2007                 WHOL               3,150,000.00               OH                 IC
        04/06/2007                 WHOL                520,000.00                OH                 FP
        03/23/2007                 WHOL                216,650.00                OH                 IC
        03/16/2007                 WHOL                332,500.00                OH                 FP
        03/16/2007                 WHOL                343,000.00                OH                 FP
        03/16/2007                 WHOL                409,500.00                OH                 FP
        03/16/2007                 WHOL                409,500.00                OH                 FP
        03/16/2007                 WHOL                404,000.00                OH                 FP
        02/26/2007                 WHOL               1,150,000.00               OH                 FP
        03/13/2007                 WHOL                608,000.00                OH                 FP
        04/05/2007                 WHOL               2,630,000.00               OH                 FP
        03/12/2007                 WHOL                305,000.00                OH                 FP
        03/19/2007                 WHOL               1,148,000.00               OH                 IC
        04/12/2007                 WHOL                300,000.00                OH                 FP
        04/03/2007                 WHOL                507,985.00                OH                 FP
        03/09/2007                 WHOL                500,000.00                OH                 FP
        04/05/2007                 WHOL                563,190.00                OH                 FP
        04/03/2007                 WHOL               1,440,000.00               OH                 FP
        04/13/2007                 WHOL                242,000.00                OH                 IC
        03/26/2007                 WHOL               1,000,000.00               OH                 IC
        03/14/2007                 WHOL                693,000.00                OH                 IC
        04/18/2007                 WHOL                380,000.00                OH                 FP
        04/20/2007                 WHOL               1,170,000.00               OH                 IC
        04/25/2007                 WHOL               1,760,000.00               OH                 FP
        03/28/2007                 WHOL                500,000.00                OH                 FP
        03/21/2007                 WHOL                880,000.00                OH                 FP
        04/19/2007                 WHOL               3,200,000.00               OH                 IC
        03/13/2007                 WHOL                561,600.00                OH                 FP
        03/26/2007                 WHOL               1,180,000.00               OH                 FP
        03/23/2007                 WHOL                340,000.00                OH                 IC
        05/15/2007                 WHOL                262,000.00                OH                 IC
        03/22/2007                 WHOL                584,200.00                OH                 IC
        04/18/2007                 WHOL                900,000.00                OH                 IC
        03/12/2007                 WHOL               1,225,000.00               OH                 IC
        03/22/2007                 WHOL                631,000.00                OH                 FP
        04/13/2007                 WHOL                940,000.00                OH                 FP
        04/09/2007                 WHOL               2,500,000.00               OH                 FP
        04/27/2007                 WHOL               2,400,000.00               OH                 FP
        04/17/2007                 WHOL                461,000.00                OH                 IC
        03/12/2007                 WHOL                360,000.00                OH                 FP
        04/16/2007                 WHOL                350,000.00                OH                 FP
        03/12/2007                 WHOL               2,240,000.00               OH                 IC
        04/10/2007                 WHOL                332,000.00                OH                 FP
        04/20/2007                 WHOL                700,000.00                OH                 FP
        04/02/2007                 WHOL               3,040,000.00               OH                 FP
        04/02/2007                 WHOL                460,000.00                OH                 FP
        03/21/2007                 WHOL                555,000.00                OH                 IC
        03/23/2007                 WHOL                993,750.00                OH                 FP
        04/06/2007                 WHOL               1,190,000.00               OH                 FP
        04/19/2007                 WHOL               1,632,000.00               OH                 IC
        04/21/2007                 WHOL               2,800,000.00               OH                 IC
        04/24/2007                 WHOL               1,890,000.00               OH                 FP
        04/02/2007                 WHOL               1,272,800.00               OH                 FP
        03/22/2007                 WHOL               1,660,000.00               OH                 FP
        03/29/2007                 WHOL                200,000.00                OH                 FP
        04/06/2007                 WHOL               2,250,000.00               OH                 FP
        03/21/2007                 WHOL                300,000.00                OH                 FP
        04/05/2007                 WHOL                508,200.00                OH                 FP
        03/28/2007                 WHOL                775,000.00                OH                 FP
        04/13/2007                 WHOL                800,000.00                OH                 FP
        04/19/2007                 WHOL               1,000,000.00               OH                 FP
        03/20/2007                 WHOL                482,400.00                OH                 FP
        04/09/2007                 WHOL               1,000,000.00               OH                 FP
        05/02/2007                 WHOL                382,000.00                OH                 IC
        03/26/2007                 WHOL                150,000.00                OH                 FP
        04/06/2007                 WHOL               1,381,100.00               OH                 FP
        04/02/2007                 WHOL                512,500.00                OH                 FP
        04/18/2007                 WHOL                926,000.00                OH                 IC
        05/04/2007                 WHOL                67,500.00                 OH                 IC
        04/13/2007                 WHOL                311,200.00                OH                 FP
        04/23/2007                 WHOL               1,600,701.00               OH                 IC
        03/29/2007                 WHOL                800,000.00                OH                 IC
        04/09/2007                 WHOL                750,000.00                OH                 IC
        04/23/2007                 WHOL               1,347,500.00               OH                 IC
        03/30/2007                 WHOL                900,000.00                OH                 IC
        04/17/2007                 WHOL                580,000.00                OH                 FP
        04/06/2007                 WHOL               2,000,000.00               OH                 FP
        04/18/2007                 WHOL               3,250,000.00               OH                 IC
        04/24/2007                 WHOL                900,000.00                OH                 FP
        04/05/2007                 WHOL                663,200.00                OH                 FP
        03/22/2007                 WHOL                908,100.00                OH                 IC
        04/16/2007                 WHOL               1,650,000.00               OH                 FP
        04/12/2007                 WHOL                264,000.00                OH                 IC
        04/20/2007                 WHOL                176,000.00                OH                 IC
        03/29/2007                 WHOL                213,000.00                OH                 FP
        04/13/2007                 WHOL               1,756,000.00               OH                 FP
        04/10/2007                 WHOL               4,165,000.00               OH                 FP
        04/03/2007                 WHOL                212,440.00                OH                 IC
        03/30/2007                 WHOL               2,314,000.00               OH                 IC
        04/25/2007                 WHOL               1,997,500.00               OH                 FP
        03/29/2007                 WHOL               1,900,000.00               OH                 FP
        04/19/2007                 WHOL               1,050,000.00               OH                 FP
        04/20/2007                 WHOL                488,000.00                OH                 IC
        04/13/2007                 WHOL               1,502,800.00               OH                 IC
        04/13/2007                 WHOL                532,000.00                OH                 FP
        04/04/2007                 WHOL                975,000.00                OH                 IC
        04/03/2007                 WHOL                924,000.00                OH                 FP
        03/30/2007                 WHOL                341,250.00                OH                 IC
        04/27/2007                 WHOL               1,402,500.00               OH                 IC
        04/30/2007                 WHOL               1,750,000.00               OH                 IC
        04/06/2007                 WHOL               1,312,500.00               OH                 FP
        03/19/2007                 WHOL               1,100,000.00               OH                 FP
        04/30/2007                 WHOL                400,000.00                OH                 IC
        04/12/2007                 WHOL               1,055,000.00               OH                 IC
        04/09/2007                 WHOL                705,000.00                OH                 IC
        04/10/2007                 WHOL               1,012,500.00               OH                 IC
        04/12/2007                 WHOL                496,000.00                OH                 FP
        04/05/2007                 WHOL               1,280,000.00               OH                 FP
        03/28/2007                 WHOL               1,280,000.00               OH                 IC
        03/28/2007                 WHOL                675,000.00                OH                 FP
        04/25/2007                 WHOL                233,400.00                OH                 IC
        04/12/2007                 WHOL                308,000.00                OH                 IC
        04/03/2007                 WHOL                880,000.00                OH                 FP
        04/13/2007                 WHOL                750,000.00                OH                 IC
        04/12/2007                 WHOL                90,000.00                 OH                 IC
        04/03/2007                 WHOL                550,000.00                OH                 FP
        04/13/2007                 WHOL                545,000.00                OH                 IC
        04/13/2007                 WHOL               3,400,000.00               OH                 IC
        04/26/2007                 WHOL               1,211,840.00               OH                 FP
        04/20/2007                 WHOL               2,348,000.00               OH                 FP
        04/12/2007                 WHOL                388,000.00                OH                 FP
        04/20/2007                 WHOL                508,000.00                OH                 IC
        04/04/2007                 WHOL               1,000,000.00               OH                 FP
        04/11/2007                 WHOL               1,500,000.00               OH                 FP
        03/29/2007                 WHOL                708,000.00                OH                 FP
        04/18/2007                 WHOL                960,000.00                OH                 IC
        03/30/2007                 WHOL                800,000.00                OH                 FP
        04/13/2007                 WHOL                756,000.00                OH                 IC
        05/02/2007                 WHOL               2,100,000.00               OH                 IC
        04/12/2007                 WHOL                504,000.00                OH                 FP
        04/01/2007                 WHOL               1,100,000.00               OH                 FP
        04/04/2007                 WHOL                240,000.00                OH                 IC
        04/12/2007                 WHOL                431,960.00                OH                 IC
        04/13/2007                 WHOL                625,000.00                OH                 FP
        05/01/2007                 WHOL               1,428,000.00               OH                 IC
        04/18/2007                 WHOL                445,000.00                OH                 FP
        04/03/2007                 WHOL               1,097,000.00               OH                 FP
        04/09/2007                 WHOL                210,000.00                OH                 FP
        04/13/2007                 WHOL                340,000.00                OH                 IC
        04/12/2007                 WHOL               2,485,000.00               OH                 FP
        04/16/2007                 WHOL               4,000,000.00               OH                 IC
        04/13/2007                 WHOL               4,550,000.00               OH                 FP
        04/20/2007                 WHOL                656,000.00                OH                 FP
        04/18/2007                 WHOL                337,500.00                OH                 IC
        04/17/2007                 WHOL                492,000.00                OH                 FP
        04/12/2007                 WHOL                260,500.00                OH                 FP
        04/09/2007                 WHOL                300,000.00                OH                 FP
        04/09/2007                 WHOL                304,000.00                OH                 FP
        04/13/2007                 WHOL                132,000.00                OH                 IC
        05/04/2007                 WHOL               1,960,000.00               OH                 IC
        04/09/2007                 WHOL               3,272,500.00               OH                 FP
        04/12/2007                 WHOL               1,248,000.00               OH                 FP
        04/20/2007                 WHOL               1,520,000.00               OH                 FP
        04/20/2007                 WHOL                500,000.00                OH                 FP
        04/25/2007                 WHOL                300,000.00                OH                 IC
        04/12/2007                 WHOL                182,400.00                OH                 FP
        04/12/2007                 WHOL                339,000.00                OH                 IC
        04/13/2007                 WHOL                416,000.00                OH                 FP
        04/30/2007                 WHOL               2,325,000.00               OH                 IC
        04/10/2007                 WHOL                258,400.00                OH                 FP
        04/25/2007                 WHOL               2,272,500.00               OH                 FP
        04/11/2007                 WHOL               1,520,000.00               OH                 FP
        04/20/2007                 WHOL               1,119,930.00               OH                 IC
        04/25/2007                 WHOL               1,920,000.00               OH                 FP
        03/23/2007                 WHOL                636,000.00                OH                 IC
        04/12/2007                 WHOL                920,500.00                OH                 FP
        04/20/2007                 WHOL                305,000.00                OH                 FP
        04/13/2007                 WHOL                905,000.00                OH                 IC
        04/05/2007                 WHOL               1,500,000.00               OH                 IC
        04/13/2007                 WHOL               1,900,000.00               OH                 FP
        04/17/2007                 WHOL                459,200.00                OH                 FP
        04/27/2007                 WHOL               2,537,500.00               OH                 FP
        04/26/2007                 WHOL                576,000.00                OH                 FP
        04/26/2007                 WHOL                348,000.00                OH                 IC
        04/17/2007                 WHOL                500,000.00                OH                 FP
        04/13/2007                 WHOL               3,000,000.00               OH                 FP
        04/12/2007                 WHOL                458,400.00                OH                 FP
        04/06/2007                 WHOL               1,625,000.00               OH                 FP
        04/19/2007                 WHOL                176,000.00                OH                 IC
        05/01/2007                 WHOL               1,554,000.00               OH                 IC
        04/03/2007                 WHOL                316,000.00                OH                 FP
        04/30/2007                 WHOL               1,081,500.00               OH                 FP
        04/26/2007                 WHOL                674,990.00                OH                 IC
        04/23/2007                 WHOL                800,000.00                OH                 IC
        04/19/2007                 WHOL                317,000.00                OH                 IC
        04/26/2007                 WHOL                500,000.00                OH                 FP
        04/19/2007                 WHOL                457,000.00                OH                 IC
        04/26/2007                 WHOL                990,000.00                OH                 IC
        04/23/2007                 WHOL               1,199,200.00               OH                 IC
        05/01/2007                 WHOL                250,000.00                OH                 IC
        04/13/2007                 WHOL                708,000.00                OH                 IC
        04/03/2007                 WHOL                962,000.00                OH                 FP
        04/05/2007                 WHOL                303,920.00                OH                 FP
        04/13/2007                 WHOL               1,024,000.00               OH                 FP
        04/23/2007                 WHOL                130,000.00                OH                 FP
        04/25/2007                 WHOL               1,820,000.00               OH                 FP
        04/04/2007                 WHOL                193,650.00                OH                 IC
        04/04/2007                 WHOL                191,200.00                OH                 IC
        05/04/2007                 WHOL               1,350,000.00               OH                 IC
        05/07/2007                 WHOL               2,062,500.00               OH                 IC
        04/27/2007                 WHOL               4,875,000.00               OH                 IC
        04/17/2007                 WHOL                484,800.00                OH                 FP
        04/12/2007                 WHOL                569,000.00                OH                 FP
        05/03/2007                 WHOL                738,500.00                OH                 IC
        04/26/2007                 WHOL               1,890,000.00               OH                 FP
        05/01/2007                 WHOL                692,000.00                OH                 IC
        04/27/2007                 WHOL               1,760,000.00               OH                 FP
        04/20/2007                 WHOL                724,800.00                OH                 IC
        05/02/2007                 WHOL               1,012,500.00               OH                 IC
        04/19/2007                 WHOL               4,690,000.00               OH                 FP
        05/04/2007                 WHOL               1,645,000.00               OH                 IC
        05/04/2007                 WHOL                423,900.00                OH                 IC
        05/17/2007                 WHOL               1,020,000.00               OH                 IC
        07/07/2006                 WHOL               1,250,000.00               OH                 FC
        06/30/2006                 WHOL               1,300,000.00               OH                 FC
        02/03/2004                 WHOL               3,750,000.00               OH                 FP
        11/24/2003                 WHOL                714,200.00                OH                 FC
        04/30/2003                 WHOL                579,750.00                OH                 FP
        10/27/2003                 WHOL                250,000.00                OH                 FP
        08/18/2003                 WHOL               1,610,000.00               OH                 FP
        09/30/2003                 WHOL               1,500,000.00               OH                 FP
        03/07/2005                 WHOL                348,700.00                OH                 FC
        03/16/2005                 WHOL                100,000.00                OH                 FC
        11/06/2001                 WHOL                428,800.00                OH                 FP
        09/17/2004                 WHOL                236,000.00                OH                 FP
        12/19/2001                 WHOL               1,000,000.00               OH                 FP
        01/25/2002                 WHOL                356,250.00                OH                 FP
        01/31/2002                 WHOL                310,500.00                OH                 FP
        02/08/2002                 WHOL               1,000,000.00               OH                 FP
        02/12/2002                 WHOL                290,000.00                OH                 FP
        02/22/2002                 WHOL                592,500.00                OH                 FP
        03/06/2002                 WHOL                560,250.00                OH                 FP
        03/15/2002                 WHOL                890,000.00                OH                 FP
        03/22/2002                 WHOL                191,800.00                OH                 FP
        03/26/2002                 WHOL                280,000.00                OH                 FP
        09/11/2002                 WHOL                956,250.00                OH                 FC
        09/02/2004                 WHOL                387,950.00                OH                 IP
        11/28/2001                 WHOL                800,000.00                OH                 RP
        12/07/2001                 WHOL                300,000.00                OH                 RP
        11/21/2001                 WHOL                66,000.00                 OH                 FP
        11/01/2002                 WHOL                528,000.00                OH                 FP
        08/26/2004                 WHOL                400,000.00                OH                 FP
        08/04/2006                 WHOL                417,000.00                OH                 FP
        08/10/2006                 WHOL                780,000.00                OH                 FP
        08/21/2006                 WHOL               1,212,800.00               OH                 FC
        09/08/2006                 WHOL                971,250.00                OH                 FP
        09/26/2006                 WHOL               2,600,000.00               OH                 FP
        11/26/2001                 WHOL                395,000.00                OH                 RP
        12/13/2001                 WHOL               1,500,000.00               OH                 RP
        12/17/2001                 WHOL                288,000.00                OH                 RP
        11/05/2003                 WHOL                148,000.00                OH                 FP
        12/23/2003                 WHOL                350,000.00                OH                 FP
        10/23/2000                 WHOL                212,000.00                OH                 IP
        05/18/2001                 WHOL                142,400.00                OH                 IP
        02/05/2002                 WHOL                105,000.00                OH                 IP
        04/17/2002                 WHOL                208,800.00                OH                 IP
        09/20/2002                 WHOL                635,000.00                OH                 IP
        07/31/2002                 WHOL                200,800.00                OH                 IP
        02/01/2002                 WHOL                193,000.00                OH                 IP
        05/16/2000                 WHOL                392,000.00                OH                 IP
        10/28/2002                 WHOL                415,000.00                OH                 IP
        11/18/2002                 WHOL                510,000.00                OH                 IP
        03/27/2003                 WHOL               1,000,000.00               OH                 IP
        04/25/2003                 WHOL                387,800.00                OH                 IP
        02/18/2004                 WHOL                144,000.00                OH                 IP
        02/11/2004                 WHOL                196,962.00                OH                 IP
        10/13/2003                 WHOL                368,000.00                OH                 IP
        02/06/2004                 WHOL                224,000.00                OH                 IP
        01/28/2004                 WHOL                139,500.00                OH                 IP
        03/01/2004                 WHOL                169,600.00                OH                 IP
        03/05/2004                 WHOL                174,000.00                OH                 IP
        02/23/2004                 WHOL                300,000.00                OH                 IP
        10/10/2003                 WHOL                611,000.00                OH                 IP
        01/13/2004                 WHOL                344,000.00                OH                 IP
        01/23/2004                 WHOL               1,100,000.00               OH                 IP
        01/16/2004                 WHOL                225,000.00                OH                 IP
        02/05/2004                 WHOL                148,000.00                OH                 IP
        02/06/2004                 WHOL                500,000.00                OH                 IP
        02/20/2004                 WHOL               1,000,000.00               OH                 IP
        02/06/2004                 WHOL                232,000.00                OH                 IP
        02/27/2004                 WHOL                135,000.00                OH                 IP
        02/17/2004                 WHOL                204,000.00                OH                 IP
        02/27/2004                 WHOL                218,300.00                OH                 IP
        03/19/2004                 WHOL               1,000,000.00               OH                 IP
        03/09/2004                 WHOL                280,000.00                OH                 IP
        03/29/2004                 WHOL                820,000.00                OH                 IP
        04/08/2004                 WHOL                204,000.00                OH                 IP
        03/29/2004                 WHOL                377,600.00                OH                 IP
        05/25/2004                 WHOL                102,400.00                OH                 IP
        08/11/2004                 WHOL                175,000.00                OH                 IP
        08/24/2004                 WHOL                118,500.00                OH                 IP
        12/15/2004                 WHOL              12,500,000.00               OH                 IP
        12/17/2004                 WHOL               2,000,000.00               OH                 IP
        09/16/2002                 WHOL                312,000.00                OH                 IP
        04/03/2002                 WHOL                223,000.00                OH                 IP
        12/30/2002                 WHOL                840,000.00                OH                 IP
        12/19/2002                 WHOL                675,000.00                OH                 IP
        05/12/2003                 WHOL                67,500.00                 OH                 IP
        03/18/2004                 WHOL                536,300.00                OH                 IP
        03/18/2004                 WHOL                269,700.00                OH                 IP
        03/17/2004                 WHOL                500,000.00                OH                 IP
        10/03/2003                 WHOL               1,387,500.00               OH                 IP
        02/11/2004                 WHOL               1,000,000.00               OH                 IP
        02/02/2004                 WHOL                485,600.00                OH                 IP
        02/19/2004                 WHOL                270,000.00                OH                 IP
        03/01/2004                 WHOL                124,800.00                OH                 IP
        03/05/2004                 WHOL                216,000.00                OH                 IP
        03/25/2004                 WHOL                800,000.00                OH                 IP
        03/19/2004                 WHOL               1,320,000.00               OH                 IP
        03/04/2004                 WHOL                333,700.00                OH                 IP
        06/23/2004                 WHOL                465,000.00                OH                 IP
        07/15/2004                 WHOL                185,000.00                OH                 IP
        08/06/2004                 WHOL                423,750.00                OH                 IP
        09/10/2004                 WHOL                268,000.00                OH                 IP
        09/30/2004                 WHOL                406,000.00                OH                 IP
        12/14/2004                 WHOL                900,000.00                OH                 IP
        02/01/2002                 WHOL                630,000.00                OH                 IP
        12/14/2001                 WHOL                840,000.00                OH                 IP
        07/15/2002                 WHOL               1,341,750.00               OH                 IP
        09/23/2002                 WHOL                195,000.00                OH                 IP
        11/18/2002                 WHOL                703,000.00                OH                 IP
        01/17/2003                 WHOL               1,400,000.00               OH                 IP
        04/23/2004                 WHOL                682,900.00                OH                 IP
        09/04/2003                 WHOL                840,000.00                OH                 IP
        04/29/2003                 WHOL                171,200.00                OH                 IP
        03/29/2004                 WHOL                77,100.00                 OH                 IP
        04/27/2004                 WHOL                232,500.00                OH                 IP
        04/29/2004                 WHOL                432,000.00                OH                 IP
        05/28/2004                 WHOL                717,500.00                OH                 IP
        05/27/2004                 WHOL                552,000.00                OH                 IP
        11/09/2004                 WHOL                170,000.00                OH                 IP
        12/01/2004                 WHOL                277,000.00                OH                 IP
        11/30/2004                 WHOL                150,000.00                OH                 IP
        10/05/2001                 WHOL                320,000.00                OH                 RP
        10/22/2001                 WHOL                293,000.00                OH                 RP
        02/05/2002                 WHOL                640,000.00                OH                 RP
        02/13/2002                 WHOL                740,000.00                OH                 RP
        12/14/2001                 WHOL               1,000,000.00               OH                 RP
        10/25/2001                 WHOL                350,000.00                OH                 RP
        10/26/2001                 WHOL                499,000.00                OH                 RP
        10/22/2001                 WHOL                650,000.00                OH                 RP
        01/08/2002                 WHOL                371,750.00                OH                 RP
        11/01/2001                 WHOL                246,700.00                OH                 RP
        11/07/2001                 WHOL                600,000.00                OH                 RP
        08/31/2000                 WHOL                288,900.00                OH                 RP
        04/19/2001                 WHOL                430,000.00                OH                 RP
        02/19/2002                 WHOL                307,000.00                OH                 RP
        12/18/2001                 WHOL                275,000.00                OH                 RP
        12/03/2001                 WHOL                91,000.00                 OH                 RP
        11/12/2001                 WHOL               1,670,000.00               OH                 RP
        10/29/2001                 WHOL                396,000.00                OH                 RP
        11/16/2001                 WHOL                364,800.00                OH                 RP
        11/16/2001                 WHOL                440,000.00                OH                 RP
        11/13/2001                 WHOL                725,000.00                OH                 RP
        11/29/2001                 WHOL                165,600.00                OH                 RP
        11/20/2001                 WHOL                216,000.00                OH                 RP
        11/21/2001                 WHOL                744,000.00                OH                 RP
        11/29/2001                 WHOL                860,000.00                OH                 RP
        11/15/2001                 WHOL                636,000.00                OH                 RP
        11/29/2001                 WHOL                350,000.00                OH                 RP
        12/04/2001                 WHOL                675,000.00                OH                 RP
        12/05/2001                 WHOL               1,600,000.00               OH                 RP
        12/14/2001                 WHOL               1,400,000.00               OH                 RP
        12/03/2001                 WHOL                494,250.00                OH                 RP
        12/11/2001                 WHOL                135,000.00                OH                 RP
        12/21/2001                 WHOL                240,750.00                OH                 RP
        01/04/2002                 WHOL                350,000.00                OH                 RP
        12/27/2001                 WHOL                316,000.00                OH                 RP
        12/14/2001                 WHOL                288,000.00                OH                 RP
        03/21/2002                 WHOL                630,000.00                OH                 RP
        03/06/2002                 WHOL                916,000.00                OH                 RP
        12/19/2001                 WHOL                400,000.00                OH                 RP
        01/16/2002                 WHOL                139,000.00                OH                 RP
        12/17/2001                 WHOL                511,000.00                OH                 RP
        01/17/2002                 WHOL                700,000.00                OH                 RP
        12/28/2001                 WHOL                122,000.00                OH                 RP
        12/18/2001                 WHOL                400,000.00                OH                 RP
        01/22/2002                 WHOL                334,000.00                OH                 RP
        01/24/2002                 WHOL                100,000.00                OH                 RP
        04/10/2002                 WHOL                535,000.00                OH                 RP
        01/22/2002                 WHOL                500,000.00                OH                 RP
        01/15/2002                 WHOL                350,000.00                OH                 RP
        01/25/2002                 WHOL                181,000.00                OH                 RP
        02/07/2002                 WHOL                279,000.00                OH                 RP
        02/01/2002                 WHOL                365,525.00                OH                 RP
        02/06/2002                 WHOL                460,000.00                OH                 RP
        02/20/2002                 WHOL                150,000.00                OH                 RP
        01/24/2002                 WHOL                296,000.00                OH                 RP
        02/04/2002                 WHOL               1,421,000.00               OH                 RP
        02/14/2002                 WHOL                169,400.00                OH                 RP
        04/04/2002                 WHOL                408,000.00                OH                 RP
        01/24/2002                 WHOL                402,000.00                OH                 RP
        03/07/2002                 WHOL                750,000.00                OH                 RP
        02/19/2002                 WHOL                150,400.00                OH                 RP
        01/30/2002                 WHOL                625,000.00                OH                 RP
        04/19/2002                 WHOL                760,000.00                OH                 RP
        03/21/2002                 WHOL                535,000.00                OH                 RP
        04/08/2002                 WHOL                303,000.00                OH                 RP
        02/22/2002                 WHOL                800,000.00                OH                 RP
        02/22/2002                 WHOL                125,600.00                OH                 RP
        02/22/2002                 WHOL                250,000.00                OH                 RP
        02/20/2002                 WHOL                910,000.00                OH                 RP
        03/08/2002                 WHOL                540,000.00                OH                 RP
        02/19/2002                 WHOL                797,900.00                OH                 RP
        03/08/2002                 WHOL                268,050.00                OH                 RP
        03/22/2002                 WHOL                787,500.00                OH                 RP
        03/08/2002                 WHOL                311,000.00                OH                 RP
        03/13/2002                 WHOL                260,000.00                OH                 RP
        02/12/2002                 WHOL                562,500.00                OH                 RP
        03/20/2002                 WHOL                500,000.00                OH                 RP
        03/21/2002                 WHOL                328,000.00                OH                 RP
        02/22/2002                 WHOL                210,000.00                OH                 RP
        03/22/2002                 WHOL                216,000.00                OH                 RP
        03/25/2002                 WHOL               1,328,000.00               OH                 RP
        03/21/2002                 WHOL                370,000.00                OH                 RP
        03/28/2002                 WHOL                236,000.00                OH                 RP
        03/29/2002                 WHOL                335,000.00                OH                 RP
        03/28/2002                 WHOL                600,000.00                OH                 RP
        03/27/2002                 WHOL                154,800.00                OH                 RP
        03/01/2002                 WHOL                548,000.00                OH                 RP
        03/20/2002                 WHOL                670,000.00                OH                 RP
        04/16/2002                 WHOL                178,500.00                OH                 RP
        02/28/2002                 WHOL                460,000.00                OH                 RP
        03/22/2002                 WHOL                320,000.00                OH                 RP
        02/12/2002                 WHOL                370,000.00                OH                 RP
        03/28/2002                 WHOL                109,900.00                OH                 RP
        04/08/2002                 WHOL                125,000.00                OH                 RP
        03/25/2002                 WHOL                484,000.00                OH                 RP
        02/13/2002                 WHOL                200,000.00                OH                 RP
        03/07/2002                 WHOL                660,600.00                OH                 RP
        12/31/2001                 WHOL                79,900.00                 OH                 RP
        03/28/2002                 WHOL                438,000.00                OH                 RP
        03/06/2002                 WHOL                60,000.00                 OH                 RP
        02/13/2002                 WHOL                654,600.00                OH                 RP
        02/15/2002                 WHOL                93,000.00                 OH                 RP
        02/06/2002                 WHOL                110,000.00                OH                 RP
        04/22/2002                 WHOL                604,000.00                OH                 RP
        02/14/2002                 WHOL                352,000.00                OH                 RP
        02/27/2002                 WHOL                148,600.00                OH                 RP
        04/05/2002                 WHOL                646,000.00                OH                 RP
        04/03/2002                 WHOL                487,600.00                OH                 RP
        04/12/2002                 WHOL                667,000.00                OH                 RP
        03/29/2002                 WHOL                328,000.00                OH                 RP
        02/08/2002                 WHOL                500,000.00                OH                 RP
        03/14/2002                 WHOL                288,000.00                OH                 RP
        02/18/2002                 WHOL                150,500.00                OH                 RP
        03/08/2002                 WHOL                200,000.00                OH                 RP
        03/25/2002                 WHOL                100,000.00                OH                 RP
        03/27/2002                 WHOL                549,300.00                OH                 RP
        02/25/2002                 WHOL                155,000.00                OH                 RP
        03/27/2002                 WHOL                397,700.00                OH                 RP
        03/04/2002                 WHOL                890,000.00                OH                 RP
        03/20/2002                 WHOL                372,500.00                OH                 RP
        04/12/2002                 WHOL                170,000.00                OH                 RP
        04/11/2002                 WHOL                425,000.00                OH                 RP
        04/23/2002                 WHOL                120,000.00                OH                 RP
        04/24/2002                 WHOL                64,700.00                 OH                 RP
        04/18/2002                 WHOL                328,000.00                OH                 RP
        12/04/2001                 WHOL                425,000.00                OH                 RP
        01/23/2002                 WHOL                421,500.00                OH                 RP
        12/18/2001                 WHOL                500,400.00                OH                 RP
        12/17/2001                 WHOL                664,000.00                OH                 RP
        11/28/2001                 WHOL                580,000.00                OH                 RP
        01/21/2002                 WHOL                285,000.00                OH                 RP
        01/16/2002                 WHOL                977,000.00                OH                 RP
        12/26/2001                 WHOL                125,000.00                OH                 RP
        03/28/2002                 WHOL                306,700.00                OH                 RP
        12/14/2001                 WHOL                280,000.00                OH                 RP
        01/03/2002                 WHOL                90,000.00                 OH                 RP
        12/20/2001                 WHOL                366,000.00                OH                 RP
        12/31/2001                 WHOL                198,500.00                OH                 RP
        03/15/2002                 WHOL                486,400.00                OH                 RP
        04/19/2002                 WHOL                970,000.00                OH                 RP
        01/10/2002                 WHOL                350,000.00                OH                 RP
        01/02/2002                 WHOL                105,000.00                OH                 RP
        11/05/1997                 WHOL                692,000.00                OH                 RP
        12/05/1997                 WHOL               1,616,875.00               OH                 RP
        09/04/2001                 WHOL                459,000.00                OH                 RP
        11/01/2001                 WHOL                250,000.00                OH                 RP
        12/18/2001                 WHOL                605,000.00                OH                 RP
        02/07/2002                 WHOL                914,000.00                OH                 RP
        01/23/2002                 WHOL                163,000.00                OH                 RP
        01/17/2002                 WHOL                284,000.00                OH                 RP
        02/07/2002                 WHOL                275,001.00                OH                 RP
        02/22/2002                 WHOL                367,200.00                OH                 RP
        02/20/2002                 WHOL                444,000.00                OH                 RP
        03/21/2002                 WHOL                365,000.00                OH                 RP
        01/15/2002                 WHOL                248,000.00                OH                 RP
        12/31/2001                 WHOL                60,000.00                 OH                 RP
        12/21/2001                 WHOL                233,000.00                OH                 RP
        12/21/2001                 WHOL                359,000.00                OH                 RP
        12/07/2001                 WHOL                55,000.00                 OH                 RP
        01/02/2002                 WHOL                299,900.00                OH                 RP
        01/02/2002                 WHOL                67,000.00                 OH                 RP
        01/30/2002                 WHOL                256,300.00                OH                 RP
        01/25/2002                 WHOL                228,000.00                OH                 RP
        01/25/2002                 WHOL                72,000.00                 OH                 RP
        01/22/2002                 WHOL                127,000.00                OH                 RP
        01/29/2002                 WHOL                80,000.00                 OH                 RP
        01/28/2002                 WHOL                360,000.00                OH                 RP
        01/29/2002                 WHOL                142,100.00                OH                 RP
        01/23/2002                 WHOL                98,300.00                 OH                 RP
        01/22/2002                 WHOL                88,000.00                 OH                 RP
        01/16/2002                 WHOL                272,000.00                OH                 RP
        01/25/2002                 WHOL                724,000.00                OH                 RP
        02/01/2002                 WHOL                443,000.00                OH                 RP
        02/01/2002                 WHOL                50,000.00                 OH                 RP
        01/28/2002                 WHOL                550,600.00                OH                 RP
        02/22/2002                 WHOL                94,400.00                 OH                 RP
        02/21/2002                 WHOL                70,000.00                 OH                 RP
        02/15/2002                 WHOL                150,000.00                OH                 RP
        02/09/2002                 WHOL                180,000.00                OH                 RP
        02/25/2002                 WHOL                950,000.00                OH                 RP
        02/27/2002                 WHOL                120,000.00                OH                 RP
        02/13/2002                 WHOL                452,000.00                OH                 RP
        02/18/2002                 WHOL                492,000.00                OH                 RP
        01/25/2002                 WHOL                361,000.00                OH                 RP
        12/27/2001                 WHOL                508,000.00                OH                 RP
        10/10/2006                 WARE                800,000.00                OH                 FP
        04/30/2007                 WARE                475,000.00                OH                 FP

                                                    SCHEDULE II

                                 Aggregate Scheduled Principal Balance of Group 3
                                             Forty-Year Mortgage Loans

                                               Aggregate Scheduled Principal
                                              Balance of the Group 3 Mortgage
                                                       Loans Having
                                                   Forty-Year Original
        Payment Date occurring in:                Terms to Maturity ($)*
______________________________________________________________________________________
August 2017..........................                   116,872.00
September 2017.......................                   115,106.00
October 2017.........................                   113,365.00
November 2017........................                   111,650.00
December 2017........................                   109,961.00
January 2018.........................                   108,297.00
February 2018........................                   106,657.00
March 2018...........................                   105,042.00
April 2018...........................                   103,450.00
May 2018.............................                   101,881.00
June 2018............................                   100,336.00
July 2018............................                    98,814.00
August 2018..........................                    97,314.00
September 2018.......................                    95,837.00
October 2018.........................                    94,381.00
November 2018........................                    92,947.00
December 2018........................                    91,534.00
January 2019.........................                    90,143.00
February 2019........................                    88,771.00
March 2019...........................                    87,421.00
April 2019...........................                    86,090.00
May 2019.............................                    84,779.00
June 2019............................                    83,488.00
July 2019............................                    82,217.00
August 2019..........................                    80,964.00
September 2019.......................                    79,729.00
October 2019.........................                    78,513.00
November 2019........................                    77,315.00
December 2019........................                    76,135.00
January 2020.........................                    74,973.00
February 2020........................                    73,827.00
March 2020...........................                    72,699.00
April 2020...........................                    71,588.00
May 2020.............................                    70,493.00
June 2020............................                    69,415.00
July 2020............................                    68,352.00
August 2020..........................                    67,306.00
September 2020.......................                    66,275.00
October 2020.........................                    65,259.00
November 2020........................                    64,259.00
December 2020........................                    63,273.00
January 2021.........................                    62,302.00
February 2021........................                    61,346.00
March 2021...........................                    60,404.00
April 2021...........................                    59,476.00
May 2021.............................                    58,561.00
June 2021............................                    57,660.00
July 2021............................                    56,773.00
August 2021..........................                    55,899.00
September 2021.......................                    55,038.00
October 2021.........................                    54,190.00
November 2021........................                    53,354.00
December 2021........................                    52,531.00
January 2022.........................                    51,720.00
February 2022........................                    50,921.00
March 2022...........................                    50,135.00
April 2022...........................                    49,359.00
May 2022.............................                    48,596.00
June 2022............................                    47,844.00
July 2022............................                    47,103.00
August 2022..........................                    46,374.00
September 2022.......................                    45,655.00
October 2022.........................                    44,947.00
November 2022........................                    44,249.00
December 2022........................                    43,562.00
January 2023.........................                    42,886.00
February 2023........................                    42,219.00
March 2023...........................                    41,563.00
April 2023...........................                    40,916.00
May 2023.............................                    40,279.00
June 2023............................                    39,651.00
July 2023............................                    39,033.00
August 2023..........................                    38,425.00
September 2023.......................                    37,825.00
October 2023.........................                    37,234.00
November 2023........................                    36,653.00
December 2023........................                    36,080.00
January 2024.........................                    35,515.00
February 2024........................                    34,959.00
March 2024...........................                    34,412.00
April 2024...........................                    33,872.00
May 2024.............................                    33,341.00
June 2024............................                    32,818.00
July 2024............................                    32,303.00
August 2024..........................                    31,795.00
September 2024.......................                    31,295.00
October 2024.........................                    30,803.00
November 2024........................                    30,318.00
December 2024........................                    29,840.00
January 2025.........................                    29,370.00
February 2025........................                    28,907.00
March 2025...........................                    28,450.00
April 2025...........................                    28,001.00
May 2025.............................                    27,558.00
June 2025............................                    27,122.00
July 2025............................                    26,692.00
August 2025..........................                    26,269.00
September 2025.......................                    25,853.00
October 2025.........................                    25,442.00
November 2025........................                    25,038.00
December 2025........................                    24,640.00
January 2026.........................                    24,248.00
February 2026........................                    23,862.00
March 2026...........................                    23,482.00
April 2026...........................                    23,108.00
May 2026.............................                    22,739.00
June 2026............................                    22,376.00
July 2026............................                    22,018.00
August 2026..........................                    21,666.00
September 2026.......................                    21,319.00
October 2026.........................                    20,977.00
November 2026........................                    20,641.00
December 2026........................                    20,309.00
January 2027.........................                    19,983.00
February 2027........................                    19,662.00
March 2027...........................                    19,345.00
April 2027...........................                    19,034.00
May 2027.............................                    18,727.00
June 2027............................                    18,424.00
July 2027............................                    18,127.00
August 2027..........................                    17,834.00
September 2027.......................                    17,545.00
October 2027.........................                    17,261.00
November 2027........................                    16,981.00
December 2027........................                    16,705.00
January 2028.........................                    16,434.00
February 2028........................                    16,167.00
March 2028...........................                    15,904.00
April 2028...........................                    15,645.00
May 2028.............................                    15,390.00
June 2028............................                    15,138.00
July 2028............................                    14,891.00
August 2028..........................                    14,647.00
September 2028.......................                    14,408.00
October 2028.........................                    14,171.00
November 2028........................                    13,939.00
December 2028........................                    13,710.00
January 2029.........................                    13,485.00
February 2029........................                    13,263.00
March 2029...........................                    13,044.00
April 2029...........................                    12,829.00
May 2029.............................                    12,617.00
June 2029............................                    12,408.00
July 2029............................                    12,203.00
August 2029..........................                    12,001.00
September 2029.......................                    11,801.00
October 2029.........................                    11,605.00
November 2029........................                    11,412.00
December 2029........................                    11,222.00
January 2030.........................                    11,035.00
February 2030........................                    10,851.00
March 2030...........................                    10,669.00
April 2030...........................                    10,491.00
May 2030.............................                    10,315.00
June 2030............................                    10,142.00
July 2030............................                    9,972.00
August 2030..........................                    9,804.00
September 2030.......................                    9,639.00
October 2030.........................                    9,476.00
November 2030........................                    9,316.00
December 2030........................                    9,158.00
January 2031.........................                    9,003.00
February 2031........................                    8,851.00
March 2031...........................                    8,700.00
April 2031...........................                    8,552.00
May 2031.............................                    8,407.00
June 2031............................                    8,263.00
July 2031............................                    8,122.00
August 2031..........................                    7,983.00
September 2031.......................                    7,847.00
October 2031.........................                    7,712.00
November 2031........................                    7,579.00
December 2031........................                    7,449.00
January 2032.........................                    7,321.00
February 2032........................                    7,194.00
March 2032...........................                    7,070.00
April 2032...........................                    6,948.00
May 2032.............................                    6,827.00
June 2032............................                    6,708.00
July 2032............................                    6,592.00
August 2032..........................                    6,477.00
September 2032.......................                    6,364.00
October 2032.........................                    6,253.00
November 2032........................                    6,143.00
December 2032........................                    6,035.00
January 2033.........................                    5,929.00
February 2033........................                    5,825.00
March 2033...........................                    5,722.00
April 2033...........................                    5,621.00
May 2033.............................                    5,522.00
June 2033............................                    5,424.00
July 2033............................                    5,327.00
August 2033..........................                    5,232.00
September 2033.......................                    5,139.00
October 2033.........................                    5,047.00
November 2033........................                    4,957.00
December 2033........................                    4,868.00
January 2034.........................                    4,780.00
February 2034........................                    4,694.00
March 2034...........................                    4,610.00
April 2034...........................                    4,526.00
May 2034.............................                    4,444.00
June 2034............................                    4,363.00
July 2034............................                    4,284.00
August 2034..........................                    4,206.00
September 2034.......................                    4,129.00
October 2034.........................                    4,053.00
November 2034........................                    3,979.00
December 2034........................                    3,906.00
January 2035.........................                    3,834.00
February 2035........................                    3,763.00
March 2035...........................                    3,693.00
April 2035...........................                    3,624.00
May 2035.............................                    3,557.00
June 2035............................                    3,490.00
July 2035............................                    3,425.00
August 2035..........................                    3,361.00
September 2035.......................                    3,298.00
October 2035.........................                    3,236.00
November 2035........................                    3,174.00
December 2035........................                    3,114.00
January 2036.........................                    3,055.00
February 2036........................                    2,997.00
March 2036...........................                    2,940.00
April 2036...........................                    2,883.00
May 2036.............................                    2,828.00
June 2036............................                    2,773.00
July 2036............................                    2,720.00
August 2036..........................                    2,667.00
September 2036.......................                    2,615.00
October 2036.........................                    2,564.00
November 2036........................                    2,514.00
December 2036........................                    2,465.00
January 2037.........................                    2,417.00
February 2037........................                    2,369.00
March 2037...........................                    2,322.00
April 2037...........................                    2,276.00
May 2037.............................                    2,231.00
June 2037............................                    2,186.00
July 2037............................                    2,142.00

                                                   EXHIBIT A

                                                  [Reserved]

                                                   EXHIBIT B

                                                  [Reserved]

                                                   EXHIBIT C

                                                  [Reserved]

                                                   EXHIBIT D

                                                  [Reserved]

                                                   EXHIBIT E

                                                  [Reserved]

                                                   EXHIBIT F

                                              REQUEST FOR RELEASE

                                                                         _______________________
                                                                                  Date

[Addressed to Indenture Trustee
or, if applicable, the Custodian]

In connection with the administration of the mortgages held by you as Indenture Trustee under a certain Sale
and Servicing Agreement dated as of July 1, 2007 by and among Structured Asset Mortgage Investments II Inc.,
as Depositor, Thornburg Mortgage Home Loans, Inc., as Initial Seller, Thornburg Mortgage Funding Inc., as
Seller, Wells Fargo Bank, N.A., as Master Servicer and Securities Administrator, Wilmington Trust Company, as
Owner Trustee and you, as Indenture Trustee and Custodian (the "Sale and Servicing Agreement"), the
undersigned [Master Servicer] [Servicer] hereby requests a release of the Mortgage File held by you as
Indenture Trustee with respect to the following described Mortgage Loan for the reason indicated below.

        Mortgagor's Name:

        Address:

        Loan No.:

        Reason for requesting file:

         1.       Mortgage  Loan  paid in full.  (The  [Master  Servicer]  hereby  certifies  that all  amounts
received in  connection  with the loan have been or will be credited to the  Collection  Account  (whichever is
applicable) pursuant to the Sale and Servicing Agreement.)

         2.       The Mortgage Loan is being foreclosed.

         3.       Mortgage  Loan  substituted.  (The  [Master  Servicer]  [Servicer]  hereby  certifies  that a
Qualified  Substitute  Mortgage  Loan has been  assigned and  delivered to you along with the related  Mortgage
File pursuant to the Sale and Servicing Agreement.)

         4.       Mortgage Loan  repurchased.  (The [Master  Servicer]  [Servicer]  hereby  certifies  that the
Purchase Price has been credited to the Servicing Account or the Collection  Account  (whichever is applicable)
pursuant to the Sale and Servicing Agreement.)

         5.       Other. (Describe)

The undersigned acknowledges that the above Mortgage File will be held by the undersigned in accordance with
the provisions of the Sale and Servicing Agreement and will be returned to you within ten (10) days of our
receipt of the Mortgage File, except if the Mortgage Loan has been paid in full, or repurchased or
substituted for a Qualified Substitute Mortgage Loan (in which case the Mortgage File will be retained by us
without obligation to return to you).

Capitalized terms used herein shall have the meanings ascribed to them in the Sale and Servicing Agreement.

                                                              _____________________________________________
                                                                 [Name of [Master Servicer] [Servicer]]

                                                              By:__________________________________________
                                                                 Name:
                                                                 Title:     Servicing Officer

                                                  EXHIBIT G-1

                                       FORM OF RECEIPT OF MORTGAGE NOTE

                                           RECEIPT OF MORTGAGE NOTE

Structured Asset Mortgage Investments II Inc.
383 Madison Avenue
New York, New York  10179

Thornburg Mortgage Securities Trust 2007-3
Wilmington Trust Company, as Owner Trustee
1100 North Market Street
Wilmington, Delaware 19890

         Re:      Thornburg Mortgage Securities Trust 2007-3,
                  Mortgage-Backed Notes, Series 2007-3

Ladies and Gentlemen:

         Pursuant to Section 2.01 of the Sale and Servicing Agreement, dated as of July 1, 2007, among
Structured Asset Mortgage Investments II Inc., as Depositor, Thornburg Mortgage Home Loans, Inc., as Initial
Seller, Thornburg Mortgage Funding, Inc., as Seller, Wells Fargo Bank, N.A., as Master Servicer and
Securities Administrator, Wilmington Trust Company, as Owner Trustee and LaSalle Bank National Association,
as Indenture Trustee and Custodian, we hereby acknowledge the receipt of the original Mortgage Note with
respect to each Mortgage Loan listed on Exhibit 1, with any exceptions thereto listed on Exhibit 2.

                                                    LASALLE BANK NATIONAL ASSOCIATION, as Indenture Trustee

                                                    By:____________________________________________________
                                                    Name:
                                                    Title:

Dated:

                                                   EXHIBIT 1

                                            MORTGAGE LOAN SCHEDULE

                                                   EXHIBIT 2

                                               EXCEPTION REPORT

                                                  EXHIBIT G-2

                              FORM OF INTERIM CERTIFICATION OF INDENTURE TRUSTEE

                                  INTERIM CERTIFICATION OF INDENTURE TRUSTEE

                                                                                                         [date]

Structured Asset Mortgage Investments II Inc.
383 Madison Avenue
New York, New York  10179

Thornburg Mortgage Home Loans, Inc.
150 Washington Avenue, Suite 302
Santa Fe, New Mexico 87501

Thornburg Mortgage Funding, Inc.
150 Washington Avenue, Suite 302
Santa Fe, New Mexico 87501

Thornburg Mortgage Securities Trust 2007-3
Wilmington Trust Company, as Owner Trustee
1100 North Market Street
Wilmington, Delaware 19890

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045

         Re:      Sale and Servicing Agreement by and among Structured Asset Mortgage Investments II Inc., as
                  Depositor, Thornburg Mortgage Home Loans, Inc., as Initial Seller, Thornburg Mortgage Funding,
                  Inc., as Seller, Wells Fargo Bank, N.A., as Master Servicer and Securities Administrator,
                  Wilmington Trust Company, as Owner Trustee and LaSalle Bank National Association, as Indenture
                  Trustee and Custodian, Thornburg Mortgage Securities Trust 2007-3 Mortgage-Backed Notes, Series
                  2007-3

Ladies and Gentlemen:

         In accordance with Section 2.02 of the above-captioned Sale and Servicing Agreement (the "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 listed on the attached
schedule) it has received:

         1.       all documents  required to be delivered to the Indenture  Trustee pursuant to Section 2.01 of
                  the Sale and Servicing Agreement are in its possession;

         2.       such  documents  have been  reviewed by the  Indenture  Trustee and have not been  mutilated,
                  damaged or torn and relate to such Mortgage Loan; and

         3.       based on the Indenture  Trustee's  examination and only as to the foregoing,  the information
                  set forth in the Mortgage Loan Schedule that corresponds to items (i), (ii),  (iii),  (xiii),
                  (xiv) and (xviii) of the Mortgage Loan Schedule accurately reflects  information set forth in
                  the Mortgage File.

         Based on its review and examination and only as to the foregoing documents, such documents appear
regular on their face and related to such Mortgage Loan.

         The Indenture Trustee has made no independent examination of any documents contained in each
Mortgage File beyond the review specifically required in the Sale and Servicing Agreement. The Indenture
Trustee makes no representations as to: (i) the validity, legality, sufficiency, enforceability or
genuineness of any of the documents contained in each Mortgage File of any of the Mortgage Loans identified
on the Mortgage Loan Schedule, or (ii) the collectibility, 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
Sale and Servicing Agreement.

                                                    LASALLE BANK NATIONAL ASSOCIATION, as Indenture Trustee

                                                    By:___________________________________________________
                                                    Name:
                                                    Title:

                                                  EXHIBIT G-3

                                    FORM OF FINAL CERTIFICATION OF TRUSTEE

                                        FINAL CERTIFICATION OF TRUSTEE

                                                                                                         [date]

Structured Asset Mortgage Investments II Inc.
383 Madison Avenue
New York, New York  10179

Thornburg Mortgage Home Loans, Inc.
150 Washington Avenue, Suite 302
Santa Fe, New Mexico 87501

Thornburg Mortgage Funding, Inc.
150 Washington Avenue, Suite 302
Santa Fe, New Mexico 87501

Thornburg Mortgage Securities Trust 2007-3
Wilmington Trust Company, as Owner Trustee
1100 North Market Street
Wilmington, Delaware 19890

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045

         Re:      Sale and Servicing Agreement among Structured Asset Mortgage Investments II Inc., as Depositor,
                  Thornburg Mortgage Home Loans, Inc., as Initial Seller, Thornburg Mortgage Funding, Inc., as
                  Seller, Wells Fargo Bank, N.A., as Master Servicer and Securities Administrator, Wilmington
                  Trust Company, as Owner Trustee and LaSalle Bank National Association, as Indenture Trustee and
                  Custodian, Thornburg Mortgage Securities Trust 2007-3 Mortgage Backed Notes, Series 2007-3

Ladies and Gentlemen:

         In accordance with Section 2.02 of the above-captioned Sale and Servicing Agreement (the "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 listed on the attached
Document Exception Report) it has received all documents required to be delivered to the Indenture Trustee
pursuant to Section 2.01 of the Sale and Servicing Agreement.

         Based on its review and examination and only as to the foregoing documents, (a) such documents
appear regular on their face and related to such Mortgage Loan, and (b) the information set forth in items
(i), (ii), (iii), (xiii), (xiv) and (xviii) of the definition of the "Mortgage Loan Schedule" in Section 1.01
of the Sale and Servicing Agreement accurately reflects information set forth in the Mortgage File.

         The Indenture Trustee has made no independent examination of any documents contained in each
Mortgage File beyond the review specifically required in the Sale and Servicing Agreement. The Indenture
Trustee makes no representations as to: (i) the validity, legality, sufficiency, enforceability or
genuineness of any of the documents contained in each Mortgage File of any of the Mortgage Loans identified
on the Mortgage Loan Schedule, or (ii) the collectibility, 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
Sale and Servicing Agreement.

                                                    LASALLE BANK NATIONAL ASSOCIATION, as Indenture Trustee

                                                    By:_____________________________________________________
                                                    Name:
                                                    Title:

                                                   EXHIBIT H

                                          FORM OF LOST NOTE AFFIDAVIT

         Personally appeared before me the undersigned authority to administer oaths, ______________________
who first being duly sworn deposes and says:  Deponent is ______________________ of Thornburg Mortgage Home
Loans, Inc. (the "Initial Seller") and who has personal knowledge of the facts set out in this affidavit.

         On ___________________, _________________________ did execute and deliver a promissory note in the
principal amount of $__________ (the "Note").

         That said note has been misplaced or lost through causes unknown and is currently lost and
unavailable after diligent search has been made.  The Initial Seller's records show that an amount of
principal and interest on said Note is still presently outstanding, due, and unpaid, and such Seller is still
owner and holder in due course of said lost Note.

         The Seller executes this Affidavit for the purpose of inducing LaSalle Bank National Association, as
indenture trustee on behalf of Thornburg Mortgage Securities Trust 2007-3, Mortgage Loan Pass-Through
Certificates, Series 2007-3, to accept the transfer of the above described loan from the Initial Seller.

         The Initial Seller agrees to indemnify LaSalle Bank National Association and Structured Asset
Securities Corporation and hold them harmless for any losses incurred by such parties resulting from the fact
that the above described Note has been lost or misplaced.

By: ___________________________
_______________________________

STATE OF                                      )
                                              )   ss:
COUNTY OF                                     )

On this ____ day of ___________ 20__, before me, a Notary Public, in and for said County and State, appeared
________________________, who acknowledged the extension of the foregoing and who, having been duly sworn,
states that any representations therein contained are true.

Witness my hand and Notarial Seal this ____ day of _______ 20__.

________________________________________
________________________________________
My commission expires __________________.

                                                   EXHIBIT I

                                                  [Reserved]

                                                  EXHIBIT J-1

                                                  [Reserved]

                                                  EXHIBIT J-2

                                                  [Reserved]

                                                   EXHIBIT K

                                                  [Reserved]

                                                   EXHIBIT L

                                                  [Reserved]

                                                   EXHIBIT M

                                         FORM OF CERTIFICATE OF TRUST

         This Certificate of Trust of Thornburg Mortgage Securities Trust 2007-3 (the "Trust") is being duly
executed and filed by the undersigned, as owner trustee, to form a statutory trust under the Delaware
Statutory Trust Act, 12 Del. C. §§ 3801 et seq. (the "Act").

         1.       Name. The name of the statutory trust formed hereby is Thornburg  Mortgage  Securities  Trust
2007-3.

         2.       Delaware  Trustee.  The name and the  business  address  of the  trustee  of the Trust with a
principal  place of business in the State of Delaware  and County of New Castle is  Wilmington  Trust  Company,
1100 North Market Street, Wilmington, Delaware 19890.

         3.       Effective Date.  This  Certificate of Trust shall be effective upon filing with the Secretary
of State of the State of Delaware.

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

                                                    Wilmington Trust Company,
                                                    as Owner Trustee

                                                    By:____________________________________
                                                       Name:
                                                       Title:

                                                   EXHIBIT N

                                  LIST OF SERVICERS AND SERVICING AGREEMENTS

     1.  a)  Servicing  Agreement,  dated as of March 1,  2002,  among  Thornburg  Mortgage  Home  Loans,  Inc.
         ("Thornburg"),  as seller and servicer and Wells Fargo Bank N.A. ("Wells Fargo"),  as master servicer,
         as amended by the Amendment to Servicing  Agreement,  dated as of December 1, 2002,  and as amended by
         the Second  Amendment to Servicing  Agreement,  dated as of January 1, 2006, and (b) the  Subservicing
         Acknowledgement  Agreement,  dated as of March 1, 2002,  between  Thornburg,  as servicer,  and Cenlar
         FSB,  as  sub-servicer  ("Cenlar"),  as  amended  by the  Amendment  to  Subservicing  Acknowledgement
         Agreement,  dated as of December 1, 2002, and by the Second Amendment to Subservicing  Acknowledgement
         Agreement,  dated as of January 1, 2006,  including the related Transfer Notice,  dated July 27, 2007,
         from Thornburg,  as seller, to Thornburg,  as initial seller, and Thornburg Mortgage Funding, Inc., as
         Seller ("TMFI"), and Cenlar, as sub-servicer.

     2.  Amended and Restated  Correspondent  Loan  Purchase  Agreement,  dated as of March 25,  2002,  between
         Thornburg  Mortgage  Home Loans,  Inc.  ("Thornburg")  and First  Republic  Bank  ("First  Republic"),
         including the related Transfer Notice, dated July 27, 2007, from Thornburg to First Republic.

     3.  Amended and Restated  Correspondent  Loan  Purchase  Agreement,  dated as of March 27,  2002,  between
         Thornburg Mortgage Home Loans, Inc. ("Thornburg") and Colonial Savings, F.A.  ("Colonial"),  including
         the related Transfer Notice, dated July 27, 2007, from Thornburg to Colonial.

     4.  Correspondent Loan Purchase  Agreement,  dated as of January 31, 2006, between Thornburg Mortgage Home
         Loans, Inc.  ("Thornburg")  and Mellon Trust of New England,  N.A.  ("Mellon"),  including the related
         Transfer Notice, dated July 27, 2007, from Thornburg to Mellon.

     5.  Correspondent  Loan Purchase  Agreement,  dated as of April 6, 2006,  between Thornburg  Mortgage Home
         Loans, Inc.  ("Thornburg") and First Horizon Home Loan Corp. ("First Horizon"),  including the related
         Transfer Notice, dated July 27, 2007, from Thornburg to First Horizon.

     6.  Reconstituted  Servicing  Agreement,  dated  as of  July  1,  2007,  by  and  among  Thornburg,  TMFI,
         Countrywide Home Loans Servicing LP ("Countrywide"),  as servicer,  LaSalle Bank National Association,
         as trustee,  and acknowledged by Wells Fargo Bank, N.A., as master servicer,  relating to the Mortgage
         Loan  Purchase and  Servicing  Agreement  dated as of  September  1, 2005 as amended by the  Amendment
         Number Two dated as of June 19, 2006 by and between  Thornburg  and  Countrywide  and by the Amendment
         Reg AB dated as of July 1, 2006 by and between Thornburg and Countrywide.

     7.  Reconstituted  Servicing  Agreement,  dated  as of  July  1,  2007,  by  and  among  Thornburg,  TMFI,
         Countrywide,  as servicer,  LaSalle Bank National  Association,  as trustee, and acknowledged by Wells
         Fargo Bank, N.A., as master servicer,  relating to the Mortgage Loan Purchase and Servicing  Agreement
         between  Thornburg and Countrywide as seller,  dated as of April 25, 2002, as amended by the Amendment
         Reg AB dated as of July 1, 2006, by and between Thornburg and Countrywide.

     8.  Reconstituted  Servicing  Agreement  dated as of July 1, 2007, by and among  Thornburg,  TMFI,  Morgan
         Stanley Credit  Corporation  ("Morgan  Stanley"),  as servicer,  Thornburg  Mortgage  Securities Trust
         2007-3,  and  acknowledged  by Wells  Fargo Bank,  N.A.,  as master  servicer,  relating to the Master
         Servicing  Agreement  between Thornburg and Morgan Stanley,  as servicer,  dated as of May 1, 2001, as
         amended by that certain  Amendment to Master  Servicing  Agreement dated as of January 1, 2003, by and
         between  Thornburg  and Morgan  Stanley,  and by the  Amendment  Reg AB dated as of  November  1, 2006
         between Thornburg and Morgan Stanley.

     9.  Reconstituted  Servicing  Agreement  dated as of July 1, 2007,  by and among  Thornburg,  TMFI,  Wells
         Fargo    Bank,  N.A., as servicer,  and Thornburg  Mortgage  Securities Trust 2007-3 (the "Trust") and
         acknowledged by   Wells  Fargo  Bank,  N.A.,  as master  servicer,  relating  to the  Master  Seller's
         Warranties  and Servicing  Agreement  between  Lehman  Brothers  Bank,  FSB ("Lehman") and Wells Fargo
         dated as of May 1,  2006,  as  amended  by  Amendment  No. 1 to the  Master  Seller's  Warranties  and
         Servicing Agreement dated as of    August  1,  2006,   as   modified  by  that   certain   Assignment,
         Assumption and Recognition Agreement dated as of August 25, 2006.

                                                   EXHIBIT O

                              NOTICE OF EXERCISE OF OPTIONAL NOTES PURCHASE RIGHT

                                                                       Date__________________

[INDENTURE TRUSTEE]

[SECURITIES ADMINISTRATOR]

[RATING AGENCIES]

[MASTER SERVICER]

         Re:      Thornburg Mortgage Securities Trust 2007-3

Ladies and Gentlemen:

         Pursuant to the terms of the Sale and Servicing Agreement (the "Agreement"), dated as of July 1,
2007, among Structured Asset Mortgage Investments II Inc., as depositor, Thornburg Mortgage Home Loans, Inc.,
as initial seller, Thornburg Mortgage Funding, Inc., as seller, Wells Fargo Bank, N.A., as master servicer
and securities administrator, LaSalle Bank National Association, as indenture trustee and custodian, and
Wilmington Trust Company, as owner trustee, we hereby give notice of our exercise of the Optional Notes
Purchase Right.  We intend to purchase the outstanding Notes on the Payment Date in ______ 20__.

                                                    Very truly yours,

                                                    THORNBURG MORTGAGE, INC.

                                                    By:___________________________________
                                                        Authorized Officer

                                                   EXHIBIT P

                                                  [Reserved]

                                                   EXHIBIT Q

                                              SERVICING CRITERIA

         The assessment of compliance to be delivered by Wells Fargo Bank, N.A. ("Wells Fargo"), in its
capacities as Master Servicer and Securities Administrator, and LaSalle Bank National Association, in its
capacity as Custodian, shall address, at a minimum, the criteria identified below as "Applicable Servicing
Criteria":

______________________________________________________________________________________________________________________
                                                                                     Applicable        Applicable
                                                                                     Servicing          Servicing
                                                                                    Criteria for      Criteria for
                               Servicing Criteria                                   Wells Fargo          LaSalle
______________________________________________________________________________________________________________________

     Reference                                Criteria
______________________________________________________________________________________________________________________

                                  General Servicing Considerations
______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________
   1122(d)(1)(i)     Policies and procedures are instituted to monitor any               X
                     performance or other triggers and events of default in
                     accordance with the transaction agreements.
______________________________________________________________________________________________________________________
  1122(d)(1)(ii)                                                                         X
                     If any material servicing activities are outsourced to
                     third parties, policies and procedures are instituted to
                     monitor the third party's performance and compliance with
                     such servicing activities.
______________________________________________________________________________________________________________________

  1122(d)(1)(iii)    Any requirements in the transaction agreements to maintain
                     a back-up servicer for the mortgage loans are maintained.
______________________________________________________________________________________________________________________

                     A fidelity bond and errors and omissions policy is in
                     effect on the party participating in the servicing
  1122(d)(1)(iv)     function throughout the reporting period in the amount of           X
                     coverage required by and otherwise in accordance with the
                     terms of the transaction agreements.
______________________________________________________________________________________________________________________

                                 Cash Collection and Administration
______________________________________________________________________________________________________________________

                     Payments on mortgage loans are deposited into the
                     appropriate custodial bank accounts and related bank
   1122(d)(2)(i)     clearing accounts no more than two business days following          X
                     receipt, or such other number of days specified in the
                     transaction agreements.
______________________________________________________________________________________________________________________

                     Disbursements made via wire transfer on behalf of an
  1122(d)(2)(ii)     obligor or to an investor are made only by authorized               X
                     personnel.
______________________________________________________________________________________________________________________

                     Advances of funds or guarantees regarding collections,
  1122(d)(2)(iii)    cash flows or distributions, and any interest or other              X
                     fees charged for such advances, are made, reviewed and
                     approved as specified in the transaction agreements.
______________________________________________________________________________________________________________________

                     The related accounts for the transaction, such as cash
                     reserve accounts or accounts established as a form of
  1122(d)(2)(iv)     overcollateralization, are separately maintained (e.g.,             X
                     with respect to commingling of cash) as set forth in the
                     transaction agreements.
______________________________________________________________________________________________________________________

                     Each custodial account is maintained at a federally
                     insured depository institution as set forth in the
                     transaction agreements. For purposes of this criterion,
   1122(d)(2)(v)     "federally insured depository institution" with respect to          X
                     a foreign financial institution means a foreign financial
                     institution that meets the requirements of Rule
                     13k-1(b)(1) of the Securities Exchange Act.
______________________________________________________________________________________________________________________

  1122(d)(2)(vi)     Unissued checks are safeguarded so as to prevent
                     unauthorized access.
______________________________________________________________________________________________________________________

                     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
  1122(d)(2)(vii)    transaction agreements; (C) reviewed and approved by                X
                     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.
______________________________________________________________________________________________________________________

                                 Investor Remittances and Reporting
______________________________________________________________________________________________________________________

                     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
   1122(d)(3)(i)     the transaction agreements; (B) provide information
                     calculated in accordance with the terms specified in the            X
                     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 mortgage loans
                     serviced by the Servicer.
______________________________________________________________________________________________________________________

                     Amounts due to investors are allocated and remitted in
  1122(d)(3)(ii)     accordance with timeframes, distribution priority and               X
                     other terms set forth in the transaction agreements.
______________________________________________________________________________________________________________________

                     Disbursements made to an investor are posted within two
  1122(d)(3)(iii)    business days to the Servicer's investor records, or such
                     other number of days specified in the transaction                   X
                     agreements.
______________________________________________________________________________________________________________________

                     Amounts remitted to investors per the investor reports
  1122(d)(3)(iv)     agree with cancelled checks, or other form of payment, or           X
                     custodial bank statements.
______________________________________________________________________________________________________________________

                                      Pool Asset Administration
______________________________________________________________________________________________________________________
   1122(d)(4)(i)
                     Collateral or security on mortgage loans is maintained as
                     required by the transaction agreements or related mortgage
                     loan documents.                                                                        X
______________________________________________________________________________________________________________________

  1122(d)(4)(ii)     Mortgage loan and related documents are safeguarded as
                     required by the transaction agreements.                                                X
______________________________________________________________________________________________________________________

                     Any additions, removals or substitutions to the asset pool
  1122(d)(4)(iii)    are made, reviewed and approved in accordance with any                                 X
                     conditions or requirements in the transaction agreements.
______________________________________________________________________________________________________________________
  1122(d)(4)(iv)
                     Payments on mortgage loans, including any payoffs, made in
                     accordance with the related mortgage loan 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 mortgage loan
                     documents.
______________________________________________________________________________________________________________________

                     The Servicer's records regarding the mortgage loans agree
   1122(d)(4)(v)     with the Servicer's records with respect to an obligor's
                     unpaid principal balance.
______________________________________________________________________________________________________________________

                     Changes with respect to the terms or status of an
                     obligor's mortgage loans (e.g., loan modifications or
  1122(d)(4)(vi)     re-agings) are made, reviewed and approved by authorized
                     personnel in accordance with the transaction agreements
                     and related pool asset documents.
______________________________________________________________________________________________________________________

                     Loss mitigation or recovery actions (e.g., forbearance
                     plans, modifications and deeds in lieu of foreclosure,
  1122(d)(4)(vii)    foreclosures and repossessions, as applicable) are
                     initiated, conducted and concluded in accordance with the
                     timeframes or other requirements established by the
                     transaction agreements.
______________________________________________________________________________________________________________________
 1122(d)(4)(viii)
                     Records documenting collection efforts are maintained
                     during the period a mortgage loan 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
                     mortgage loans including, for example, phone calls,
                     letters and payment rescheduling plans in cases where
                     delinquency is deemed temporary (e.g., illness or
                     unemployment).
______________________________________________________________________________________________________________________

                     Adjustments to interest rates or rates of return for
  1122(d)(4)(ix)     mortgage loans with variable rates are computed based on
                     the related mortgage loan documents.
______________________________________________________________________________________________________________________
   1122(d)(4)(x)
                     Regarding any funds held in trust for an obligor (such as
                     escrow accounts): (A) such funds are analyzed, in
                     accordance with the obligor's mortgage loan 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 mortgage loan documents and state laws; and (C)
                     such funds are returned to the obligor within 30 calendar
                     days of full repayment of the related mortgage loans, or
                     such other number of days specified in the transaction
                     agreements.
______________________________________________________________________________________________________________________
  1122(d)(4)(xi)
                     Payments made on behalf of an obligor (such as tax or
                     insurance payments) are made on or before the related
                     penalty or expiration dates, as indicated on the
                     appropriate bills or notices for such payments, provided
                     that such support has been received by the servicer at
                     least 30 calendar days prior to these dates, or such other
                     number of days specified in the transaction agreements.
______________________________________________________________________________________________________________________

                     Any late payment penalties in connection with any payment
                     to be made on behalf of an obligor are paid from the
  1122(d)(4)(xii)    servicer's funds and not charged to the obligor, unless
                     the late payment was due to the obligor's error or
                     omission.
______________________________________________________________________________________________________________________

                     Disbursements made on behalf of an obligor are posted
 1122(d)(4)(xiii)    within two business days to the obligor's records
                     maintained by the servicer, or such other number of days
                     specified in the transaction agreements.
______________________________________________________________________________________________________________________

                     Delinquencies, charge-offs and uncollectible accounts are
  1122(d)(4)(xiv)    recognized and recorded in accordance with the transaction          X
                     agreements.
______________________________________________________________________________________________________________________
  1122(d)(4)(xv)                                                                         X
                     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.
______________________________________________________________________________________________________________________

                                                   EXHIBIT R

                                        ADDITIONAL FORM 10-D DISCLOSURE

______________________________________________________________________________________________________________________

                                         ADDITIONAL FORM 10-D DISCLOSURE
______________________________________________________________________________________________________________________
                     Item on Form 10-D                                         Party Responsible
______________________________________________________________________________________________________________________
Item 1: Distribution and Pool Performance Information
______________________________________________________________________________________________________________________
Information included in the Payment Date Statement                                  Servicer
                                                                                Master Servicer
                                                                            Securities Administrator
______________________________________________________________________________________________________________________
Any information required by 1121 which is NOT included on                          Depositor
the Payment Date Statement
______________________________________________________________________________________________________________________
                 Item 2: Legal Proceedings

Any legal proceeding  pending against the following entities
or  their   respective   property,   that  is   material  to
Noteholders,   including   any   proceeding   known   to  be
contemplated by governmental authorities:
______________________________________________________________________________________________________________________
• Issuing Entity (Trust)                                         Indenture Trustee, Master Servicer, Securities
                                                                          Administrator and Depositor
______________________________________________________________________________________________________________________
• Sponsor (Initial Seller) (Seller)                                   Initial Seller, Seller or Depositor
______________________________________________________________________________________________________________________
• Depositor                                                                        Depositor
______________________________________________________________________________________________________________________
• Indenture Trustee                                                            Indenture Trustee
______________________________________________________________________________________________________________________
• Securities Administrator                                                  Securities Administrator
______________________________________________________________________________________________________________________
• Master Servicer                                                               Master Servicer
______________________________________________________________________________________________________________________
• Custodian                                                                        Custodian
______________________________________________________________________________________________________________________
• 1110(b) Originator                                                               Depositor
______________________________________________________________________________________________________________________
• Any 1108(a)(2) Servicer (other than the Master Servicer                           Servicer
or Securities Administrator)
______________________________________________________________________________________________________________________
• Any other party contemplated by 1100(d)(1)                                       Depositor
______________________________________________________________________________________________________________________
       Item 3: Sale of Securities and Use of Proceeds                              Depositor
Information from Item 2(a) of Part II of Form 10-Q:
With  respect  to any  sale of  securities  by the  sponsor,
depositor  or  issuing  entity,  that are backed by the same
asset pool or are  otherwise  issued by the issuing  entity,
whether  or not  registered,  provide  the  sales and use of
proceeds   information  in  Item  701  of  Regulation   S-K.
Pricing  information  can be omitted if securities  were not
registered.
______________________________________________________________________________________________________________________
             Item 4: Defaults Upon Senior Notes                             Securities Administrator
                                                                     Indenture Trustee (in the event of the
                                                                         Master Servicer's termination)
Information from Item 3 of Part II of Form 10-Q:
Report  the  occurrence  of  any  Event  of  Default  (after
expiration   of  any  grace  period  and  provision  of  any
required notice)
______________________________________________________________________________________________________________________
Item 5: Submission of Matters to a Vote of Security Holders                 Securities Administrator
                                                                               Indenture Trustee
Information from Item 4 of Part II of Form 10-Q
______________________________________________________________________________________________________________________
        Item 6: Significant Obligors of Pool Assets                                Depositor
Item 1112(b) - Significant Obligor Financial Information*
______________________________________________________________________________________________________________________
*This  information  need only be  reported  on the Form 10-D
for the  payment  period  in which  updated  information  is
required pursuant to the Item.
______________________________________________________________________________________________________________________
    Item 7: Significant Enhancement Provider Information
Item 1114(b)(2) - Credit Enhancement Provider Financial
Information*
______________________________________________________________________________________________________________________
• Determining applicable disclosure threshold                                      Depositor
______________________________________________________________________________________________________________________
• Requesting required financial  information  (including any                       Depositor
required   accountants'  consent  to  the  use  thereof)  or
effecting incorporation by reference
______________________________________________________________________________________________________________________
      Item 1115(b) - Derivative Counterparty Financial
                        Information*
______________________________________________________________________________________________________________________
• Determining current maximum probable exposure                                    Depositor
______________________________________________________________________________________________________________________
• Determining current significance percentage                                      Depositor
______________________________________________________________________________________________________________________
• Requesting required financial  information  (including any                       Depositor
required   accountants'  consent  to  the  use  thereof)  or
effecting incorporation by reference
______________________________________________________________________________________________________________________
  *This information need only be reported on the Form 10-D
   for the payment period in which updated information is
              required pursuant to the Items.
______________________________________________________________________________________________________________________
                 Item 8: Other Information                     Any party responsible for the applicable Form 8-K
                                                                                Disclosure item
Disclose  any  information  required  to be reported on Form
8-K  during  the  period  covered  by the Form  10-D but not
reported
______________________________________________________________________________________________________________________
                      Item 9: Exhibits
           Payment Date Statement to Noteholders                            Securities Administrator
  Exhibits required by Item 601 of Regulation S-K, such as                         Depositor
                    material agreements
______________________________________________________________________________________________________________________

                                                   EXHIBIT S

                                        ADDITIONAL FORM 10-K DISCLOSURE

______________________________________________________________________________________________________________________

                                         ADDITIONAL FORM 10-K DISCLOSURE
______________________________________________________________________________________________________________________
                    Item on Form 10-K                                         Party Responsible
______________________________________________________________________________________________________________________
           Item 1B: Unresolved Staff Comments                                     Depositor
______________________________________________________________________________________________________________________
               Item 9B: Other Information                  Any party responsible for disclosure items on Form 8-K
Disclose any information  required to be reported on Form
8-K during the  fourth  quarter  covered by the Form 10-K
but not reported
______________________________________________________________________________________________________________________
    Item 15: Exhibits, Financial Statement Schedules                      Securities Administrator
                                                                                  Depositor
______________________________________________________________________________________________________________________
Reg AB Item 1112(b): Significant Obligors of Pool Assets
______________________________________________________________________________________________________________________
Significant Obligor Financial Information*                                        Depositor
______________________________________________________________________________________________________________________
*This  information need only be reported on the Form 10-D
for the payment  period in which updated  information  is
required pursuant to the Item.
______________________________________________________________________________________________________________________
   Reg AB Item 1114(b)(2): Credit Enhancement Provider
                  Financial Information
______________________________________________________________________________________________________________________
• Determining applicable disclosure threshold                                     Depositor
______________________________________________________________________________________________________________________
• Requesting  required financial  information  (including                         Depositor
any required  accountants' consent to the use thereof) or
effecting incorporation by reference
______________________________________________________________________________________________________________________
*This  information need only be reported on the Form 10-D
for the payment  period in which updated  information  is
required pursuant to the Items.
______________________________________________________________________________________________________________________
 Reg AB Item 1115(b): Derivative Counterparty Financial
                       Information
______________________________________________________________________________________________________________________
• Determining current maximum probable exposure                                   Depositor
______________________________________________________________________________________________________________________
• Determining current significance percentage                                     Depositor
______________________________________________________________________________________________________________________
• Requesting  required financial  information  (including                         Depositor
any required  accountants' consent to the use thereof) or
effecting incorporation by reference
______________________________________________________________________________________________________________________
*This  information need only be reported on the Form 10-D
for the payment  period in which updated  information  is
required pursuant to the Items.
______________________________________________________________________________________________________________________
           Reg AB Item 1117: Legal Proceedings
Any  legal  proceeding   pending  against  the  following
entities or their respective  property,  that is material
to  Noteholders,  including  any  proceeding  known to be
contemplated by governmental authorities:
______________________________________________________________________________________________________________________
• Issuing Entity (Trust)                                       Indenture Trustee, Master Servicer, Securities
                                                                         Administrator and Depositor
______________________________________________________________________________________________________________________
• Sponsor (Initial Seller)                                               Initial Seller or Depositor
______________________________________________________________________________________________________________________
• Depositor                                                                       Depositor
______________________________________________________________________________________________________________________
• Indenture Trustee                                                           Indenture Trustee
______________________________________________________________________________________________________________________
• Securities Administrator                                                Securities Administrator
______________________________________________________________________________________________________________________
• Master Servicer                                                              Master Servicer
______________________________________________________________________________________________________________________
• Custodian                                                                       Custodian
______________________________________________________________________________________________________________________
• 1110(b) Originator                                                              Depositor
______________________________________________________________________________________________________________________
• Any 1108(a)(2) Servicer (other than the Master                                  Servicer
Servicer or Securities Administrator)
______________________________________________________________________________________________________________________
• Any other party contemplated by 1100(d)(1)                                      Depositor
______________________________________________________________________________________________________________________
    Reg AB Item 1119: Affiliations and Relationships
______________________________________________________________________________________________________________________
Whether  (a)  the  Sponsor  (Initial  Seller)   (Seller),     Depositor as to Depositor and Issuing Entity (a)
Depositor  or  Issuing  Entity  is an  affiliate  of  the    Sponsor/Initial Seller/Seller as to Sponsor/Initial
following  parties,  and  (b) to  the  extent  known  and                     Seller/Seller (a)
material,  any of the  following  parties are  affiliated
with one another:

______________________________________________________________________________________________________________________
• Master Servicer                                                              Master Servicer
______________________________________________________________________________________________________________________
• Securities Administrator                                                Securities Administrator
______________________________________________________________________________________________________________________
• Indenture Trustee                                                           Indenture Trustee
______________________________________________________________________________________________________________________
• Any other 1108(a)(3) servicer                                                   Servicer
______________________________________________________________________________________________________________________
• Any 1110 Originator                                                         Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any 1112(b) Significant Obligor                                             Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any 1114 Credit Enhancement Provider                                        Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any 1115 Derivate Counterparty Provider                                     Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any other 1101(d)(1) material party                                         Depositor/Sponsor
______________________________________________________________________________________________________________________
Whether  there  are  any  "outside  the  ordinary  course     Depositor as to Depositor and Issuing Entity (a)
business  arrangements"  other than would be  obtained in    Sponsor/Initial Seller/Seller as to Sponsor/Initial
an  arm's  length  transaction  between  (a) the  Sponsor                     Seller/Seller (a)
(Initial  Seller)  (Seller),  Depositor or Issuing Entity
on the one  hand,  and (b) any of the  following  parties
(or their  affiliates)  on the  other  hand,  that  exist
currently  or  within  the  past two  years  and that are
material to a Noteholder's understanding of the Notes:

______________________________________________________________________________________________________________________
• Master Servicer                                                              Master Servicer
______________________________________________________________________________________________________________________
• Securities Administrator                                                Securities Administrator
______________________________________________________________________________________________________________________
• Indenture Trustee                                                           Indenture Trustee
______________________________________________________________________________________________________________________
• Any other 1108(a)(3) servicer                                                   Servicer
______________________________________________________________________________________________________________________
• Any 1110 Originator                                                         Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any 1112(b) Significant Obligor                                             Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any 1114 Credit Enhancement Provider                                        Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any 1115 Derivate Counterparty Provider                                     Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any other 1101(d)(1) material party                                         Depositor/Sponsor
______________________________________________________________________________________________________________________
Whether  there are any specific  relationships  involving       Depositor as to Depositor and Issuing Entity
the  transaction  or the  pool  assets  between  (a)  the    Sponsor/Initial Seller/Seller as to Sponsor/Initial
Sponsor (Initial Seller)  (Seller),  Depositor or Issuing                       Seller/Seller
Entity  on the one  hand,  and  (b) any of the  following
parties (or their  affiliates)  on the other  hand,  that
exist  currently  or  within  the past two years and that
are material:
______________________________________________________________________________________________________________________
• Master Servicer                                                              Master Servicer
______________________________________________________________________________________________________________________
• Securities Administrator                                                Securities Administrator
______________________________________________________________________________________________________________________
• Indenture Trustee                                                           Indenture Trustee
______________________________________________________________________________________________________________________
• Any other 1108(a)(3) servicer                                                   Servicer
______________________________________________________________________________________________________________________
• Any 1110 Originator                                                         Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any 1112(b) Significant Obligor                                             Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any 1114 Credit Enhancement Provider                                        Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any 1115 Derivate Counterparty Provider                                     Depositor/Sponsor
______________________________________________________________________________________________________________________
• Any other 1101(d)(1) material party                                         Depositor/Sponsor
______________________________________________________________________________________________________________________

                                                   EXHIBIT T

                                        ADDITIONAL FORM 8-K DISCLOSURE

______________________________________________________________________________________________________________________

                                         FORM 8-K DISCLOSURE INFORMATION
______________________________________________________________________________________________________________________
                    Item on Form 8-K                                          Party Responsible
______________________________________________________________________________________________________________________
  Item 1.01- Entry into a Material Definitive Agreement                          All parties
Disclosure is required regarding entry into or amendment
of any definitive agreement that is material to the
securitization, even if depositor is not a party.
Examples: servicing agreement, custodial agreement.

Note:   disclosure   not   required   as  to   definitive
agreements that are fully disclosed in the prospectus
______________________________________________________________________________________________________________________
Item 1.02- Termination of a Material Definitive Agreement                        All parties
Disclosure is required regarding termination of  any
definitive agreement that is material to the
securitization (other than expiration in accordance with
its terms), even if depositor is not a party.
Examples: servicing agreement, custodial agreement.
______________________________________________________________________________________________________________________
          Item 1.03- Bankruptcy or Receivership                                   Depositor
Disclosure  is  required   regarding  the  bankruptcy  or
receivership, with respect to any of the following:

______________________________________________________________________________________________________________________
• Sponsor (Initial Seller) (Seller)                                   Sponsor (Initial Seller) (Seller)
______________________________________________________________________________________________________________________
• Depositor                                                                       Depositor
______________________________________________________________________________________________________________________
• Master Servicer                                                              Master Servicer
______________________________________________________________________________________________________________________
• Affiliated Servicer                                                             Servicer
______________________________________________________________________________________________________________________
•  Other  Servicer  servicing  20% or  more  of the  pool                         Servicer
assets at the time of the report
______________________________________________________________________________________________________________________
• Other material servicers                                                        Servicer
______________________________________________________________________________________________________________________
• Indenture Trustee                                                           Indenture Trustee
______________________________________________________________________________________________________________________
• Securities Administrator                                                Securities Administrator
______________________________________________________________________________________________________________________
• Significant Obligor                                                             Depositor
______________________________________________________________________________________________________________________
• Credit Enhancer (10% or more)                                                   Depositor
______________________________________________________________________________________________________________________
• Derivative Counterparty                                                         Depositor
______________________________________________________________________________________________________________________
• Custodian                                                                       Custodian
______________________________________________________________________________________________________________________
Item 2.04- Triggering Events that Accelerate or Increase                          Depositor
 a Direct Financial Obligation or an Obligation under an                       Master Servicer
              Off-Balance Sheet Arrangement                               Securities Administrator

Includes an early  amortization,  performance  trigger or
other  event,  including  event of  default,  that  would
materially  alter the  payment  priority/distribution  of
cash flows/amortization schedule.

Disclosure  will be made of events  other than  waterfall
triggers   which  are   disclosed  in  the  Payment  Date
Statements to the noteholders.
______________________________________________________________________________________________________________________
 Item 3.03- Material Modification to Rights of Security                   Securities Administrator
                         Holders                                                  Depositor

Disclosure  is required of any material  modification  to
documents  defining  the  rights  of  Certificateholders,
including the Sale and Servicing Agreement.
______________________________________________________________________________________________________________________
  Item 5.03- Amendments of Articles of Incorporation or                           Depositor
              Bylaws; Change of Fiscal Year
Disclosure   is  required  of  any   amendment   "to  the
governing documents of the issuing entity".
______________________________________________________________________________________________________________________
 Item 6.01- ABS Informational and Computational Material                          Depositor

______________________________________________________________________________________________________________________
Item 6.02- Change of Servicer or Securities Administrator    Master Servicer/Securities Administrator/Depositor/
                                                                Servicer/Indenture Trustee (if change of the
Requires   disclosure   of  any   removal,   replacement,                 Securities Administrator)
substitution   or  addition   of  any  master   servicer,
affiliated  servicer,  other  servicer  servicing  10% or
more of pool  assets at time of  report,  other  material
servicers or trustee.
______________________________________________________________________________________________________________________
Reg AB  disclosure  about  any  new  servicer  or  master            Servicer/Master Servicer/Depositor
servicer is also required.
______________________________________________________________________________________________________________________
Reg AB  disclosure  about any new  Indenture  Trustee  is                     Indenture Trustee
also required.
______________________________________________________________________________________________________________________
   Item 6.03- Change in Credit Enhancement or External               Depositor/Securities Administrator
                         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.
______________________________________________________________________________________________________________________
Reg AB disclosure about any new enhancement provider is                           Depositor
also required.
______________________________________________________________________________________________________________________
   Item 6.04- Failure to Make a Required Distribution                     Securities Administrator
______________________________________________________________________________________________________________________
      Item 6.05- Securities Act Updating Disclosure                               Depositor
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.
______________________________________________________________________________________________________________________
If there are any new  servicers or  originators  required                         Depositor
to be disclosed  under  Regulation  AB as a result of the
foregoing,  provide the  information  called for in Items
1108 and 1110 respectively.
______________________________________________________________________________________________________________________
              Item 7.01- Reg FD Disclosure                                       All parties
______________________________________________________________________________________________________________________
                 Item 8.01- Other Events                                          Depositor
   Any event, with respect to which information is not
  otherwise called for in Form 8-K, that the registrant
       deems of importance to certificateholders.
______________________________________________________________________________________________________________________
      Item 9.01- Financial Statements and Exhibits             Responsible party for reporting/disclosing the
                                                                       financial statement or exhibit
______________________________________________________________________________________________________________________

                                                   EXHIBIT U

                                  FORM OF ADDITIONAL DISCLOSURE NOTIFICATION

Wells Fargo Bank, N.A. as Securities Administrator
9062 Old Annapolis Road
Columbia, Maryland 21045
Fax: (410) 715-2380
E-mail:  cts.sec.notifications@wellsfargo.com

Attn:  Corporate Trust Services - THORNBURG MORTGAGE TRUST 2007-3-SEC REPORT PROCESSING

RE:  Additional Form [  ] Disclosure Required

Ladies and Gentlemen:

         In accordance with Section 3.19(a)(ii) of the Sale and Servicing Agreement dated as of July 1, 2007
by and among the Structured Asset Mortgage Investments II Inc., as depositor, Thornburg Mortgage Home Loans,
Inc., as initial seller, Thornburg Mortgage Funding, Inc., as seller, Wells Fargo Bank, N.A., as master
servicer and securities administrator, the Wilmington Trust Company, as owner trustee and LaSalle Bank
National Association, as indenture trustee and custodian, 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 [  ] Disclosure:

         Any inquiries related to this notification should be directed to [  ], phone number:  [  ]; email
address:  [  ].

                                                    [NAME OF PARTY]
                                                    as [role]

                                                    By:_________________________________________
                                                       Name:
                                                       Title:

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