Document:

BEAR STEARNS ASSET BACKED SECURITIES I LLC,

                                   Depositor,

                            EMC MORTGAGE CORPORATION,

                           Seller and Master Servicer,

                                       and

                       LASALLE BANK NATIONAL ASSOCIATION,

                                     Trustee

                              ____________________

                         POOLING AND SERVICING AGREEMENT

                          Dated as of February 1, 2005
                    ________________________________________

              BEAR STEARNS ASSET BACKED SECURITIES I TRUST 2005-HE2

                   ASSET-BACKED CERTIFICATES, SERIES 2005-HE2

<PAGE>

                                TABLE OF CONTENTS

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                                                                                                               PAGE
                                    ARTICLE I

                                   DEFINITIONS

<S>                   <C>                                                                                       <C>
Section 1.01          Defined Terms...............................................................................6
Section 1.02          Allocation of Certain Interest Shortfalls..................................................75

                                   ARTICLE II

             CONVEYANCE OF TRUST FUND REPRESENTATIONS AND WARRANTIES

Section 2.01          Conveyance of Trust Fund...................................................................77
Section 2.02          Acceptance of the Mortgage Loans...........................................................79
Section 2.03          Representations, Warranties and Covenants of the Master Servicer and the Seller............81
Section 2.04          Representations and Warranties of the Depositor............................................86
Section 2.05          Delivery of Opinion of Counsel in Connection with Substitutions and Repurchases............87
Section 2.06          Countersignature and Delivery of Certificates..............................................88

                                   ARTICLE III

               ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS

Section 3.01          The Master Servicer to act as Master Servicer..............................................90
Section 3.02          Due-on-Sale Clauses; Assumption Agreements.................................................91
Section 3.03          Subservicers...............................................................................92
Section 3.04          Documents, Records and Funds in Possession of the Master Servicer To Be Held for
                      Trustee....................................................................................93
Section 3.05          Maintenance of Hazard Insurance............................................................93
Section 3.06          Presentment of Claims and Collection of Proceeds...........................................94
Section 3.07          Maintenance of the Primary Mortgage Insurance Policies.....................................94
Section 3.08          Fidelity Bond, Errors and Omissions Insurance..............................................95
Section 3.09          Realization Upon Defaulted Mortgage Loans; Determination of Excess Liquidation
                      Proceeds and Realized Losses; Repurchases of Certain Mortgage Loans........................95
Section 3.10          Servicing Compensation.....................................................................98
Section 3.11          REO Property...............................................................................98
Section 3.12          Liquidation Reports........................................................................99
Section 3.13          Annual Certificate as to Compliance........................................................99
Section 3.14          Annual Independent Certified Public Accountants' Servicing Report..........................99
Section 3.15          Books and Records.........................................................................100
Section 3.16          Reports Filed with Securities and Exchange Commission.....................................100
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                                     i

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<S>                   <C>                                                                                       <C>
Section 3.17          UCC.......................................................................................102
Section 3.18          Optional Purchase of Certain Mortgage Loans...............................................102
Section 3.19          Obligations of the Master Servicer in Respect of Mortgage Rates and Scheduled
                      Payments..................................................................................103
Section 3.20          Reserve Fund; Payments to and from Swap Administrator.....................................103
Section 3.21          Advancing Facility........................................................................106

                                   ARTICLE IV

                                    ACCOUNTS

Section 4.01          Collection of Mortgage Loan Payments; Protected Account...................................108
Section 4.02          Permitted Withdrawals From the Protected Account..........................................110
Section 4.03          Collection of Taxes; Assessments and Similar Items; Escrow Accounts.......................112
Section 4.04          Distribution Account......................................................................112
Section 4.05          Permitted Withdrawals and Transfers from the Distribution Account.........................113
Section 4.06          Class P Certificate Account...............................................................113

                                    ARTICLE V

                           DISTRIBUTIONS AND ADVANCES

Section 5.01          Advances..................................................................................114
Section 5.02          Compensating Interest Payments............................................................115
Section 5.03          REMIC Distributions.......................................................................115
Section 5.04          Distributions.............................................................................115
Section 5.05          Allocation of Realized Losses.............................................................121
Section 5.06          Monthly Statements to Certificateholders..................................................124
Section 5.07          REMIC Designations and REMIC Distributions................................................127

                                   ARTICLE VI

                                THE CERTIFICATES

Section 6.01          The Certificates..........................................................................133
Section 6.02          Certificate Register; Registration of Transfer and Exchange of Certificates...............134
Section 6.03          Mutilated, Destroyed, Lost or Stolen Certificates.........................................138
Section 6.04          Persons Deemed Owners.....................................................................139
Section 6.05          Access to List of Certificateholders' Names and Addresses.................................139
Section 6.06          Book-Entry Certificates...................................................................139
Section 6.07          Notices to Depository.....................................................................140
Section 6.08          Definitive Certificates...................................................................140
Section 6.09          Maintenance of Office or Agency...........................................................141

                                       ii
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<S>                   <C>                                                                                       <C>
                                   ARTICLE VII

                      THE DEPOSITOR AND THE MASTER SERVICER

Section 7.01          Liabilities of the Depositor and the Master Servicer......................................142
Section 7.02          Merger or Consolidation of the Depositor or the Master Servicer...........................142
Section 7.03          Indemnification of the Trustee and the Master Servicer....................................142
Section 7.04          Limitations on Liability of the Depositor, the Master Servicer and Others.................143
Section 7.05          Master Servicer Not to Resign.............................................................144
Section 7.06          Successor Master Servicer.................................................................144
Section 7.07          Sale and Assignment of Master Servicing...................................................144

                                  ARTICLE VIII

                     DEFAULT; TERMINATION OF MASTER SERVICER

Section 8.01          Events of Default.........................................................................146
Section 8.02          Trustee to Act; Appointment of Successor..................................................148
Section 8.03          Notification to Certificateholders........................................................149
Section 8.04          Waiver of Defaults........................................................................149

                                   ARTICLE IX

                             CONCERNING THE TRUSTEE

Section 9.01          Duties of Trustee.........................................................................151
Section 9.02          Certain Matters Affecting the Trustee.....................................................152
Section 9.03          Trustee Not Liable for Certificates or Mortgage Loans.....................................155
Section 9.04          Trustee May Own Certificates..............................................................155
Section 9.05          Trustee's Fees and Expenses...............................................................155
Section 9.06          Eligibility Requirements for Trustee......................................................156
Section 9.07          Insurance.................................................................................156
Section 9.08          Resignation and Removal of Trustee........................................................156
Section 9.09          Successor Trustee.........................................................................157
Section 9.10          Merger or Consolidation of Trustee........................................................158
Section 9.11          Appointment of Co-Trustee or Separate Trustee.............................................158
Section 9.12          Tax Matters...............................................................................159

                                    ARTICLE X

                                   TERMINATION

Section 10.01         Termination upon Liquidation or Repurchase of all Mortgage Loans..........................162
Section 10.02         Final Distribution on the Certificates....................................................162
Section 10.03         Additional Termination Requirements.......................................................165

                                       iii
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<S>                   <C>                                                                                       <C>
                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

Section 11.01         Amendment.................................................................................167
Section 11.02         Recordation of Agreement; Counterparts....................................................168
Section 11.03         Governing Law.............................................................................169
Section 11.04         Intention of Parties......................................................................169
Section 11.05         Notices...................................................................................169
Section 11.06         Severability of Provisions................................................................170
Section 11.07         Assignment................................................................................170
Section 11.08         Limitation on Rights of Certificateholders................................................170
Section 11.09         Inspection and Audit Rights...............................................................172
Section 11.10         Certificates Nonassessable and Fully Paid.................................................172
Section 11.11         Third Party Rights........................................................................172

EXHIBITS
--------

Exhibit A-1                         Form of Class A Certificates
Exhibit A-2                         Form of Class M Certificates
Exhibit A-3                         Form of Class P Certificates
Exhibit A-4                         Form of Class CE Certificates
Exhibit A-5                         Form of Class R Certificates
Exhibit B                           Mortgage Loan Schedule
Exhibit C                           Form of Transfer Affidavit
Exhibit D                           Form of Transferor Certificate
Exhibit E                           Form of Investment Letter (Non-Rule 144A)
Exhibit F                           Form of Rule 144A and Related Matters Certificate
Exhibit G                           Form of Request for Release
Exhibit H                           DTC Letter of Representations
Exhibit I                           Schedule of Mortgage Loans with Lost Notes
Exhibit J                           Form of Custodial Agreement
Exhibit K                           Form of Back-Up Certification
Exhibit L                           Form of Mortgage Loan Purchase Agreement
Exhibit M                           Swap Agreement

                                       iv
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<PAGE>

         POOLING AND SERVICING AGREEMENT, dated as of February 1, 2005, among
BEAR STEARNS ASSET BACKED SECURITIES I LLC, a Delaware limited liability
company, as depositor (the "Depositor"), EMC MORTGAGE CORPORATION, a Delaware
corporation, as seller (in such capacity, the "Seller") and as master servicer
(in such capacity, the "Master Servicer") and LASALLE BANK NATIONAL ASSOCIATION,
a national banking association, not in its individual capacity, but solely as
trustee (the "Trustee").

                              PRELIMINARY STATEMENT

         The Depositor is the owner of the Trust Fund that is hereby conveyed to
the Trustee in return for the Certificates.

                                     REMIC I
                                     -------

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the Mortgage Loans and certain other related assets
subject to this Agreement (other than the Reserve Fund, the Swap Agreement, the
Swap Account and any rights or obligations in respect of the Swap Administration
Agreement) as a REMIC for federal income tax purposes, and such segregated pool
of assets will be designated as "REMIC I". The Class R-1 Certificates will be
the sole class of "residual interests" in REMIC I for purposes of the REMIC
Provisions (as defined herein). The following table irrevocably sets forth the
designation, the Uncertificated REMIC I Pass-Through Rate, the initial
Uncertificated Principal Balance and, for purposes of satisfying Treasury
Regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity date" for
each of the REMIC I Regular Interests (as defined herein). None of the REMIC I
Regular Interests will be certificated.

                   UNCERTIFICATED            INITIAL
                       REMIC I           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION     PASS-THROUGH RATE     PRINCIPAL BALANCE    MATURITY DATE (1)
---------------  -------------------   -------------------  -------------------
     I-1-A           Variable(2)       $      1,176,508.43   February 25, 2035
     I-1-B           Variable(2)       $      1,176,508.43   February 25, 2035
     I-2-A           Variable(2)       $      1,512,976.07   February 25, 2035
     I-2-B           Variable(2)       $      1,512,976.07   February 25, 2035
     I-3-A           Variable(2)       $      1,849,089.61   February 25, 2035
     I-3-B           Variable(2)       $      1,849,089.61   February 25, 2035
     I-4-A           Variable(2)       $      2,181,990.40   February 25, 2035
     I-4-B           Variable(2)       $      2,181,990.40   February 25, 2035
     I-5-A           Variable(2)       $      2,508,686.84   February 25, 2035
     I-5-B           Variable(2)       $      2,508,686.84   February 25, 2035
     I-6-A           Variable(2)       $      2,825,229.97   February 25, 2035
     I-6-B           Variable(2)       $      2,825,229.97   February 25, 2035
     I-7-A           Variable(2)       $      3,129,485.85   February 25, 2035
     I-7-B           Variable(2)       $      3,129,485.85   February 25, 2035
     I-8-A           Variable(2)       $      3,417,728.76   February 25, 2035
     I-8-B           Variable(2)       $      3,417,728.76   February 25, 2035
     I-9-A           Variable(2)       $      3,684,708.89   February 25, 2035
     I-9-B           Variable(2)       $      3,684,708.89   February 25, 2035

<PAGE>

                   UNCERTIFICATED            INITIAL
                       REMIC I           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION     PASS-THROUGH RATE     PRINCIPAL BALANCE    MATURITY DATE (1)
---------------  -------------------   -------------------  -------------------
    I-10-A           Variable(2)       $      3,892,233.20   February 25, 2035
    I-10-B           Variable(2)       $      3,892,233.20   February 25, 2035
    I-11-A           Variable(2)       $      3,818,218.86   February 25, 2035
    I-11-B           Variable(2)       $      3,818,218.86   February 25, 2035
    I-12-A           Variable(2)       $      3,647,101.99   February 25, 2035
    I-12-B           Variable(2)       $      3,647,101.99   February 25, 2035
    I-13-A           Variable(2)       $      3,481,997.75   February 25, 2035
    I-13-B           Variable(2)       $      3,481,997.75   February 25, 2035
    I-14-A           Variable(2)       $      3,324,458.70   February 25, 2035
    I-14-B           Variable(2)       $      3,324,458.70   February 25, 2035
    I-15-A           Variable(2)       $      3,174,135.22   February 25, 2035
    I-15-B           Variable(2)       $      3,174,135.22   February 25, 2035
    I-16-A           Variable(2)       $      3,030,692.07   February 25, 2035
    I-16-B           Variable(2)       $      3,030,692.07   February 25, 2035
    I-17-A           Variable(2)       $      2,893,815.37   February 25, 2035
    I-17-B           Variable(2)       $      2,893,815.37   February 25, 2035
    I-18-A           Variable(2)       $      2,763,194.74   February 25, 2035
    I-18-B           Variable(2)       $      2,763,194.74   February 25, 2035
    I-19-A           Variable(2)       $      2,638,552.04   February 25, 2035
    I-19-B           Variable(2)       $      2,638,552.04   February 25, 2035
    I-20-A           Variable(2)       $      2,519,605.97   February 25, 2035
    I-20-B           Variable(2)       $      2,519,605.97   February 25, 2035
    I-21-A           Variable(2)       $      2,406,093.75   February 25, 2035
    I-21-B           Variable(2)       $      2,406,093.75   February 25, 2035
    I-22-A           Variable(2)       $      2,297,784.91   February 25, 2035
    I-22-B           Variable(2)       $      2,297,784.91   February 25, 2035
    I-23-A           Variable(2)       $      2,190,104.73   February 25, 2035
    I-23-B           Variable(2)       $      2,190,104.73   February 25, 2035
    I-24-A           Variable(2)       $     32,945,914.54   February 25, 2035
    I-24-B           Variable(2)       $     32,945,914.54   February 25, 2035
    I-25-A           Variable(2)       $        538,570.39   February 25, 2035
    I-25-B           Variable(2)       $        538,570.39   February 25, 2035
    I-26-A           Variable(2)       $        517,956.06   February 25, 2035
    I-26-B           Variable(2)       $        517,956.06   February 25, 2035
    I-27-A           Variable(2)       $        498,161.83   February 25, 2035
    I-27-B           Variable(2)       $        498,161.83   February 25, 2035
    I-28-A           Variable(2)       $        479,153.83   February 25, 2035
    I-28-B           Variable(2)       $        479,153.83   February 25, 2035
    I-29-A           Variable(2)       $        460,899.64   February 25, 2035
    I-29-B           Variable(2)       $        460,899.64   February 25, 2035
    I-30-A           Variable(2)       $        443,368.21   February 25, 2035
    I-30-B           Variable(2)       $        443,368.21   February 25, 2035
    I-31-A           Variable(2)       $        426,529.84   February 25, 2035
    I-31-B           Variable(2)       $        426,529.84   February 25, 2035
    I-32-A           Variable(2)       $        410,356.05   February 25, 2035

                                       2

<PAGE>
                   UNCERTIFICATED            INITIAL
                       REMIC I           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION     PASS-THROUGH RATE     PRINCIPAL BALANCE    MATURITY DATE (1)
---------------  -------------------   -------------------  -------------------
    I-32-B           Variable(2)       $        410,356.05   February 25, 2035
    I-33-A           Variable(2)       $        394,819.61   February 25, 2035
    I-33-B           Variable(2)       $        394,819.61   February 25, 2035
    I-34-A           Variable(2)       $        379,783.36   February 25, 2035
    I-34-B           Variable(2)       $        379,783.36   February 25, 2035
    I-35-A           Variable(2)       $        365,066.46   February 25, 2035
    I-35-B           Variable(2)       $        365,066.46   February 25, 2035
    I-36-A           Variable(2)       $      3,063,660.58   February 25, 2035
    I-36-B           Variable(2)       $      3,063,660.58   February 25, 2035
    I-37-A           Variable(2)       $        209,701.36   February 25, 2035
    I-37-B           Variable(2)       $        209,701.36   February 25, 2035
    I-38-A           Variable(2)       $        203,091.55   February 25, 2035
    I-38-B           Variable(2)       $        203,091.55   February 25, 2035
    I-39-A           Variable(2)       $        196,688.95   February 25, 2035
    I-39-B           Variable(2)       $        196,688.95   February 25, 2035
    I-40-A           Variable(2)       $        190,487.08   February 25, 2035
    I-40-B           Variable(2)       $        190,487.08   February 25, 2035
    I-41-A           Variable(2)       $        184,479.68   February 25, 2035
    I-41-B           Variable(2)       $        184,479.68   February 25, 2035
    I-42-A           Variable(2)       $        178,660.67   February 25, 2035
    I-42-B           Variable(2)       $        178,660.67   February 25, 2035
    I-43-A           Variable(2)       $        173,024.18   February 25, 2035
    I-43-B           Variable(2)       $        173,024.18   February 25, 2035
    I-44-A           Variable(2)       $        167,564.50   February 25, 2035
    I-44-B           Variable(2)       $        167,564.50   February 25, 2035
    I-45-A           Variable(2)       $        162,276.11   February 25, 2035
    I-45-B           Variable(2)       $        162,276.11   February 25, 2035
    I-46-A           Variable(2)       $        157,153.66   February 25, 2035
    I-46-B           Variable(2)       $        157,153.66   February 25, 2035
    I-47-A           Variable(2)       $        152,191.97   February 25, 2035
    I-47-B           Variable(2)       $        152,191.97   February 25, 2035
    I-48-A           Variable(2)       $        147,386.01   February 25, 2035
    I-48-B           Variable(2)       $        147,386.01   February 25, 2035
    I-49-A           Variable(2)       $        142,730.91   February 25, 2035
    I-49-B           Variable(2)       $        142,730.91   February 25, 2035
    I-50-A           Variable(2)       $        138,221.98   February 25, 2035
    I-50-B           Variable(2)       $        138,221.98   February 25, 2035
    I-51-A           Variable(2)       $        133,854.62   February 25, 2035
    I-51-B           Variable(2)       $        133,854.62   February 25, 2035
    I-52-A           Variable(2)       $        129,624.42   February 25, 2035
    I-52-B           Variable(2)       $        129,624.42   February 25, 2035
    I-53-A           Variable(2)       $        125,527.09   February 25, 2035
    I-53-B           Variable(2)       $        125,527.09   February 25, 2035
    I-54-A           Variable(2)       $        121,558.49   February 25, 2035
    I-54-B           Variable(2)       $        121,558.49   February 25, 2035

                                       3

<PAGE>
                   UNCERTIFICATED            INITIAL
                       REMIC I           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION     PASS-THROUGH RATE     PRINCIPAL BALANCE    MATURITY DATE (1)
---------------  -------------------   -------------------  -------------------
    I-55-A           Variable(2)       $        117,714.57   February 25, 2035
    I-55-B           Variable(2)       $        117,714.57   February 25, 2035
    I-56-A           Variable(2)       $        113,991.45   February 25, 2035
    I-56-B           Variable(2)       $        113,991.45   February 25, 2035
    I-57-A           Variable(2)       $        110,385.34   February 25, 2035
    I-57-B           Variable(2)       $        110,385.34   February 25, 2035
    I-58-A           Variable(2)       $        106,921.99   February 25, 2035
    I-58-B           Variable(2)       $        106,921.99   February 25, 2035
    I-59-A           Variable(2)       $        103,765.47   February 25, 2035
    I-59-B           Variable(2)       $        103,765.47   February 25, 2035
    I-60-A           Variable(2)       $      3,137,735.85   February 25, 2035
    I-60-B           Variable(2)       $      3,137,735.85   February 25, 2035
    II-1-A           Variable(2)       $      1,466,874.99   February 25, 2035
    II-1-B           Variable(2)       $      1,466,874.99   February 25, 2035
    II-2-A           Variable(2)       $      1,886,384.06   February 25, 2035
    II-2-B           Variable(2)       $      1,886,384.06   February 25, 2035
    II-3-A           Variable(2)       $      2,305,451.65   February 25, 2035
    II-3-B           Variable(2)       $      2,305,451.65   February 25, 2035
    II-4-A           Variable(2)       $      2,720,513.56   February 25, 2035
    II-4-B           Variable(2)       $      2,720,513.56   February 25, 2035
    II-5-A           Variable(2)       $      3,127,839.87   February 25, 2035
    II-5-B           Variable(2)       $      3,127,839.87   February 25, 2035
    II-6-A           Variable(2)       $      3,522,506.99   February 25, 2035
    II-6-B           Variable(2)       $      3,522,506.99   February 25, 2035
    II-7-A           Variable(2)       $      3,901,854.33   February 25, 2035
    II-7-B           Variable(2)       $      3,901,854.33   February 25, 2035
    II-8-A           Variable(2)       $      4,261,236.63   February 25, 2035
    II-8-B           Variable(2)       $      4,261,236.63   February 25, 2035
    II-9-A           Variable(2)       $      4,594,108.43   February 25, 2035
    II-9-B           Variable(2)       $      4,594,108.43   February 25, 2035
    II-10-A          Variable(2)       $      4,852,850.49   February 25, 2035
    II-10-B          Variable(2)       $      4,852,850.49   February 25, 2035
    II-11-A          Variable(2)       $      4,760,569.14   February 25, 2035
    II-11-B          Variable(2)       $      4,760,569.14   February 25, 2035
    II-12-A          Variable(2)       $      4,547,220.01   February 25, 2035
    II-12-B          Variable(2)       $      4,547,220.01   February 25, 2035
    II-13-A          Variable(2)       $      4,341,367.45   February 25, 2035
    II-13-B          Variable(2)       $      4,341,367.45   February 25, 2035
    II-14-A          Variable(2)       $      4,144,947.19   February 25, 2035
    II-14-B          Variable(2)       $      4,144,947.19   February 25, 2035
    II-15-A          Variable(2)       $      3,957,523.32   February 25, 2035
    II-15-B          Variable(2)       $      3,957,523.32   February 25, 2035
    II-16-A          Variable(2)       $      3,778,677.89   February 25, 2035
    II-16-B          Variable(2)       $      3,778,677.89   February 25, 2035
    II-17-A          Variable(2)       $      3,608,019.52   February 25, 2035

                                       4
<PAGE>
                   UNCERTIFICATED            INITIAL
                       REMIC I           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION     PASS-THROUGH RATE     PRINCIPAL BALANCE    MATURITY DATE (1)
---------------  -------------------   -------------------  -------------------
    II-17-B          Variable(2)       $      3,608,019.52   February 25, 2035
    II-18-A          Variable(2)       $      3,445,161.25   February 25, 2035
    II-18-B          Variable(2)       $      3,445,161.25   February 25, 2035
    II-19-A          Variable(2)       $      3,289,756.27   February 25, 2035
    II-19-B          Variable(2)       $      3,289,756.27   February 25, 2035
    II-20-A          Variable(2)       $      3,141,453.88   February 25, 2035
    II-20-B          Variable(2)       $      3,141,453.88   February 25, 2035
    II-21-A          Variable(2)       $      2,999,926.43   February 25, 2035
    II-21-B          Variable(2)       $      2,999,926.43   February 25, 2035
    II-22-A          Variable(2)       $      2,864,886.58   February 25, 2035
    II-22-B          Variable(2)       $      2,864,886.58   February 25, 2035
    II-23-A          Variable(2)       $      2,730,630.54   February 25, 2035
    II-23-B          Variable(2)       $      2,730,630.54   February 25, 2035
    II-24-A          Variable(2)       $     41,077,085.95   February 25, 2035
    II-24-B          Variable(2)       $     41,077,085.95   February 25, 2035
    II-25-A          Variable(2)       $        671,491.53   February 25, 2035
    II-25-B          Variable(2)       $        671,491.53   February 25, 2035
    II-26-A          Variable(2)       $        645,789.49   February 25, 2035
    II-26-B          Variable(2)       $        645,789.49   February 25, 2035
    II-27-A          Variable(2)       $        621,109.98   February 25, 2035
    II-27-B          Variable(2)       $        621,109.98   February 25, 2035
    II-28-A          Variable(2)       $        597,410.73   February 25, 2035
    II-28-B          Variable(2)       $        597,410.73   February 25, 2035
    II-29-A          Variable(2)       $        574,651.35   February 25, 2035
    II-29-B          Variable(2)       $        574,651.35   February 25, 2035
    II-30-A          Variable(2)       $        552,793.10   February 25, 2035
    II-30-B          Variable(2)       $        552,793.10   February 25, 2035
    II-31-A          Variable(2)       $        531,798.95   February 25, 2035
    II-31-B          Variable(2)       $        531,798.95   February 25, 2035
    II-32-A          Variable(2)       $        511,633.41   February 25, 2035
    II-32-B          Variable(2)       $        511,633.41   February 25, 2035
    II-33-A          Variable(2)       $        492,262.52   February 25, 2035
    II-33-B          Variable(2)       $        492,262.52   February 25, 2035
    II-34-A          Variable(2)       $        473,515.27   February 25, 2035
    II-34-B          Variable(2)       $        473,515.27   February 25, 2035
    II-35-A          Variable(2)       $        455,166.19   February 25, 2035
    II-35-B          Variable(2)       $        455,166.19   February 25, 2035
    II-36-A          Variable(2)       $      3,819,783.14   February 25, 2035
    II-36-B          Variable(2)       $      3,819,783.14   February 25, 2035
    II-37-A          Variable(2)       $        261,456.42   February 25, 2035
    II-37-B          Variable(2)       $        261,456.42   February 25, 2035
    II-38-A          Variable(2)       $        253,215.29   February 25, 2035
    II-38-B          Variable(2)       $        253,215.29   February 25, 2035
    II-39-A          Variable(2)       $        245,232.50   February 25, 2035
    II-39-B          Variable(2)       $        245,232.50   February 25, 2035

                                       5

<PAGE>
                   UNCERTIFICATED            INITIAL
                       REMIC I           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION     PASS-THROUGH RATE     PRINCIPAL BALANCE    MATURITY DATE (1)
---------------  -------------------   -------------------  -------------------
    II-40-A          Variable(2)       $        237,499.98   February 25, 2035
    II-40-B          Variable(2)       $        237,499.98   February 25, 2035
    II-41-A          Variable(2)       $        230,009.94   February 25, 2035
    II-41-B          Variable(2)       $        230,009.94   February 25, 2035
    II-42-A          Variable(2)       $        222,754.77   February 25, 2035
    II-42-B          Variable(2)       $        222,754.77   February 25, 2035
    II-43-A          Variable(2)       $        215,727.18   February 25, 2035
    II-43-B          Variable(2)       $        215,727.18   February 25, 2035
    II-44-A          Variable(2)       $        208,920.03   February 25, 2035
    II-44-B          Variable(2)       $        208,920.03   February 25, 2035
    II-45-A          Variable(2)       $        202,326.45   February 25, 2035
    II-45-B          Variable(2)       $        202,326.45   February 25, 2035
    II-46-A          Variable(2)       $        195,939.76   February 25, 2035
    II-46-B          Variable(2)       $        195,939.76   February 25, 2035
    II-47-A          Variable(2)       $        189,753.50   February 25, 2035
    II-47-B          Variable(2)       $        189,753.50   February 25, 2035
    II-48-A          Variable(2)       $        183,761.41   February 25, 2035
    II-48-B          Variable(2)       $        183,761.41   February 25, 2035
    II-49-A          Variable(2)       $        177,957.42   February 25, 2035
    II-49-B          Variable(2)       $        177,957.42   February 25, 2035
    II-50-A          Variable(2)       $        172,335.66   February 25, 2035
    II-50-B          Variable(2)       $        172,335.66   February 25, 2035
    II-51-A          Variable(2)       $        166,890.42   February 25, 2035
    II-51-B          Variable(2)       $        166,890.42   February 25, 2035
    II-52-A          Variable(2)       $        161,616.20   February 25, 2035
    II-52-B          Variable(2)       $        161,616.20   February 25, 2035
    II-53-A          Variable(2)       $        156,507.64   February 25, 2035
    II-53-B          Variable(2)       $        156,507.64   February 25, 2035
    II-54-A          Variable(2)       $        151,559.56   February 25, 2035
    II-54-B          Variable(2)       $        151,559.56   February 25, 2035
    II-55-A          Variable(2)       $        146,766.96   February 25, 2035
    II-55-B          Variable(2)       $        146,766.96   February 25, 2035
    II-56-A          Variable(2)       $        142,124.95   February 25, 2035
    II-56-B          Variable(2)       $        142,124.95   February 25, 2035
    II-57-A          Variable(2)       $        137,628.84   February 25, 2035
    II-57-B          Variable(2)       $        137,628.84   February 25, 2035
    II-58-A          Variable(2)       $        133,310.72   February 25, 2035
    II-58-B          Variable(2)       $        133,310.72   February 25, 2035
    II-59-A          Variable(2)       $        129,375.17   February 25, 2035
    II-59-B          Variable(2)       $        129,375.17   February 25, 2035
    II-60-A          Variable(2)       $      3,912,140.46   February 25, 2035
    II-60-B          Variable(2)       $      3,912,140.46   February 25, 2035
    III-1-A          Variable(2)       $        767,796.30   February 25, 2035
    III-1-B          Variable(2)       $        767,796.30   February 25, 2035
    III-2-A          Variable(2)       $        987,377.05   February 25, 2035

                                       6
<PAGE>

                   UNCERTIFICATED            INITIAL
                       REMIC I           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION     PASS-THROUGH RATE     PRINCIPAL BALANCE    MATURITY DATE (1)
---------------  -------------------   -------------------  -------------------
    III-2-B          Variable(2)       $        987,377.05   February 25, 2035
    III-3-A          Variable(2)       $      1,206,726.72   February 25, 2035
    III-3-B          Variable(2)       $      1,206,726.72   February 25, 2035
    III-4-A          Variable(2)       $      1,423,979.72   February 25, 2035
    III-4-B          Variable(2)       $      1,423,979.72   February 25, 2035
    III-5-A          Variable(2)       $      1,637,183.73   February 25, 2035
    III-5-B          Variable(2)       $      1,637,183.73   February 25, 2035
    III-6-A          Variable(2)       $      1,843,761.63   February 25, 2035
    III-6-B          Variable(2)       $      1,843,761.63   February 25, 2035
    III-7-A          Variable(2)       $      2,042,320.80   February 25, 2035
    III-7-B          Variable(2)       $      2,042,320.80   February 25, 2035
    III-8-A          Variable(2)       $      2,230,429.81   February 25, 2035
    III-8-B          Variable(2)       $      2,230,429.81   February 25, 2035
    III-9-A          Variable(2)       $      2,404,662.61   February 25, 2035
    III-9-B          Variable(2)       $      2,404,662.61   February 25, 2035
   III-10-A          Variable(2)       $      2,540,094.19   February 25, 2035
   III-10-B          Variable(2)       $      2,540,094.19   February 25, 2035
   III-11-A          Variable(2)       $      2,491,791.99   February 25, 2035
   III-11-B          Variable(2)       $      2,491,791.99   February 25, 2035
   III-12-A          Variable(2)       $      2,380,120.12   February 25, 2035
   III-12-B          Variable(2)       $      2,380,120.12   February 25, 2035
   III-13-A          Variable(2)       $      2,272,372.13   February 25, 2035
   III-13-B          Variable(2)       $      2,272,372.13   February 25, 2035
   III-14-A          Variable(2)       $      2,169,561.22   February 25, 2035
   III-14-B          Variable(2)       $      2,169,561.22   February 25, 2035
   III-15-A          Variable(2)       $      2,071,459.24   February 25, 2035
   III-15-B          Variable(2)       $      2,071,459.24   February 25, 2035
   III-16-A          Variable(2)       $      1,977,847.40   February 25, 2035
   III-16-B          Variable(2)       $      1,977,847.40   February 25, 2035
   III-17-A          Variable(2)       $      1,888,520.87   February 25, 2035
   III-17-B          Variable(2)       $      1,888,520.87   February 25, 2035
   III-18-A          Variable(2)       $      1,803,277.08   February 25, 2035
   III-18-B          Variable(2)       $      1,803,277.08   February 25, 2035
   III-19-A          Variable(2)       $      1,721,934.52   February 25, 2035
   III-19-B          Variable(2)       $      1,721,934.52   February 25, 2035
   III-20-A          Variable(2)       $      1,644,309.62   February 25, 2035
   III-20-B          Variable(2)       $      1,644,309.62   February 25, 2035
   III-21-A          Variable(2)       $      1,570,230.88   February 25, 2035
   III-21-B          Variable(2)       $      1,570,230.88   February 25, 2035
   III-22-A          Variable(2)       $      1,499,547.90   February 25, 2035
   III-22-B          Variable(2)       $      1,499,547.90   February 25, 2035
   III-23-A          Variable(2)       $      1,429,275.18   February 25, 2035
   III-23-B          Variable(2)       $      1,429,275.18   February 25, 2035
   III-24-A          Variable(2)       $     21,500,696.84   February 25, 2035
   III-24-B          Variable(2)       $     21,500,696.84   February 25, 2035

                                       7
<PAGE>

                   UNCERTIFICATED            INITIAL
                       REMIC I           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION     PASS-THROUGH RATE     PRINCIPAL BALANCE    MATURITY DATE (1)
---------------  -------------------   -------------------  -------------------
   III-25-A          Variable(2)       $        351,474.19   February 25, 2035
   III-25-B          Variable(2)       $        351,474.19   February 25, 2035
   III-26-A          Variable(2)       $        338,021.16   February 25, 2035
   III-26-B          Variable(2)       $        338,021.16   February 25, 2035
   III-27-A          Variable(2)       $        325,103.33   February 25, 2035
   III-27-B          Variable(2)       $        325,103.33   February 25, 2035
   III-28-A          Variable(2)       $        312,698.59   February 25, 2035
   III-28-B          Variable(2)       $        312,698.59   February 25, 2035
   III-29-A          Variable(2)       $        300,785.81   February 25, 2035
   III-29-B          Variable(2)       $        300,785.81   February 25, 2035
   III-30-A          Variable(2)       $        289,344.69   February 25, 2035
   III-30-B          Variable(2)       $        289,344.69   February 25, 2035
   III-31-A          Variable(2)       $        278,355.87   February 25, 2035
   III-31-B          Variable(2)       $        278,355.87   February 25, 2035
   III-32-A          Variable(2)       $        267,800.76   February 25, 2035
   III-32-B          Variable(2)       $        267,800.76   February 25, 2035
   III-33-A          Variable(2)       $        257,661.59   February 25, 2035
   III-33-B          Variable(2)       $        257,661.59   February 25, 2035
   III-34-A          Variable(2)       $        247,848.84   February 25, 2035
   III-34-B          Variable(2)       $        247,848.84   February 25, 2035
   III-35-A          Variable(2)       $        238,244.51   February 25, 2035
   III-35-B          Variable(2)       $        238,244.51   February 25, 2035
   III-36-A          Variable(2)       $      1,999,362.84   February 25, 2035
   III-36-B          Variable(2)       $      1,999,362.84   February 25, 2035
   III-37-A          Variable(2)       $        136,852.34   February 25, 2035
   III-37-B          Variable(2)       $        136,852.34   February 25, 2035
   III-38-A          Variable(2)       $        132,538.74   February 25, 2035
   III-38-B          Variable(2)       $        132,538.74   February 25, 2035
   III-39-A          Variable(2)       $        128,360.36   February 25, 2035
   III-39-B          Variable(2)       $        128,360.36   February 25, 2035
   III-40-A          Variable(2)       $        124,312.98   February 25, 2035
   III-40-B          Variable(2)       $        124,312.98   February 25, 2035
   III-41-A          Variable(2)       $        120,392.52   February 25, 2035
   III-41-B          Variable(2)       $        120,392.52   February 25, 2035
   III-42-A          Variable(2)       $        116,595.00   February 25, 2035
   III-42-B          Variable(2)       $        116,595.00   February 25, 2035
   III-43-A          Variable(2)       $        112,916.59   February 25, 2035
   III-43-B          Variable(2)       $        112,916.59   February 25, 2035
   III-44-A          Variable(2)       $        109,353.58   February 25, 2035
   III-44-B          Variable(2)       $        109,353.58   February 25, 2035
   III-45-A          Variable(2)       $        105,902.34   February 25, 2035
   III-45-B          Variable(2)       $        105,902.34   February 25, 2035
   III-46-A          Variable(2)       $        102,559.40   February 25, 2035
   III-46-B          Variable(2)       $        102,559.40   February 25, 2035
   III-47-A          Variable(2)       $         99,321.37   February 25, 2035

                                       8
<PAGE>

                   UNCERTIFICATED            INITIAL
                       REMIC I           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION     PASS-THROUGH RATE     PRINCIPAL BALANCE    MATURITY DATE (1)
---------------  -------------------   -------------------  -------------------
   III-47-B          Variable(2)       $         99,321.37   February 25, 2035
   III-48-A          Variable(2)       $         96,184.97   February 25, 2035
   III-48-B          Variable(2)       $         96,184.97   February 25, 2035
   III-49-A          Variable(2)       $         93,147.03   February 25, 2035
   III-49-B          Variable(2)       $         93,147.03   February 25, 2035
   III-50-A          Variable(2)       $         90,204.47   February 25, 2035
   III-50-B          Variable(2)       $         90,204.47   February 25, 2035
   III-51-A          Variable(2)       $         87,354.31   February 25, 2035
   III-51-B          Variable(2)       $         87,354.31   February 25, 2035
   III-52-A          Variable(2)       $         84,593.66   February 25, 2035
   III-52-B          Variable(2)       $         84,593.66   February 25, 2035
   III-53-A          Variable(2)       $         81,919.72   February 25, 2035
   III-53-B          Variable(2)       $         81,919.72   February 25, 2035
   III-54-A          Variable(2)       $         79,329.78   February 25, 2035
   III-54-B          Variable(2)       $         79,329.78   February 25, 2035
   III-55-A          Variable(2)       $         76,821.22   February 25, 2035
   III-55-B          Variable(2)       $         76,821.22   February 25, 2035
   III-56-A          Variable(2)       $         74,391.49   February 25, 2035
   III-56-B          Variable(2)       $         74,391.49   February 25, 2035
   III-57-A          Variable(2)       $         72,038.12   February 25, 2035
   III-57-B          Variable(2)       $         72,038.12   February 25, 2035
   III-58-A          Variable(2)       $         69,777.91   February 25, 2035
   III-58-B          Variable(2)       $         69,777.91   February 25, 2035
   III-59-A          Variable(2)       $         67,717.96   February 25, 2035
   III-59-B          Variable(2)       $         67,717.96   February 25, 2035
   III-60-A          Variable(2)       $      2,047,704.80   February 25, 2035
   III-60-B          Variable(2)       $      2,047,704.80   February 25, 2035
       P                   0.00%       $            100.00   February 25, 2035
___________________________
(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date immediately following the maturity
         date for the Mortgage Loan with the latest maturity date has been
         designated as the "latest possible maturity date" for each REMIC I
         Regular Interest.
(2)      Calculated in accordance with the definition of "Uncertificated REMIC I
         Pass-Through Rate" herein.

                                    REMIC II
                                    --------

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the REMIC I Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
"REMIC II". The Class R-2 Certificates will be the sole class of "residual
interests" in REMIC II for purposes of the REMIC Provisions. The following table
irrevocably sets forth the designation, the Uncertificated REMIC II Pass-Through
Rate, the initial Uncertificated Principal Balance and, for purposes of
satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the "latest possible
maturity date" for each of the REMIC II Regular Interests (as defined herein).
None of the REMIC II Regular Interests will be certificated.

                                       9
<PAGE>

                   UNCERTIFICATED            INITIAL
                      REMIC II           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION     PASS-THROUGH RATE     PRINCIPAL BALANCE    MATURITY DATE (1)
---------------  -------------------   -------------------  -------------------
      AA             Variable(2)       $    317,936,211.97   February 25, 2035
     I-A-1           Variable(2)       $        552,440.00   February 25, 2035
     I-A-2           Variable(2)       $        261,405.00   February 25, 2035
     I-A-3           Variable(2)       $         68,995.00   February 25, 2035
    II-A-1           Variable(2)       $        880,580.00   February 25, 2035
    II-A-2           Variable(2)       $        220,145.00   February 25, 2035
    III-A-1          Variable(2)       $        460,915.00   February 25, 2035
    III-A-2          Variable(2)       $        115,230.00   February 25, 2035
      M-1            Variable(2)       $        215,745.00   February 25, 2035
      M-2            Variable(2)       $        173,570.00   February 25, 2035
      M-3            Variable(2)       $         47,040.00   February 25, 2035
      M-4            Variable(2)       $         48,665.00   February 25, 2035
      M-5            Variable(2)       $         37,310.00   February 25, 2035
      M-6            Variable(2)       $         32,440.00   February 25, 2035
      M-7            Variable(2)       $         32,440.00   February 25, 2035
      M-8            Variable(2)       $         32,440.00   February 25, 2035
      ZZ             Variable(2)       $      3,309,134.12   February 25, 2035
       P                   0.00%       $            100.00   February 25, 2035
      IO                     (2)                   (3)       February 25, 2035
      1A             Variable(2)       $          4,721.87   February 25, 2035
      1B             Variable(2)       $         22,378.67   February 25, 2035
      2A             Variable(2)       $          5,887.31   February 25, 2035
      2B             Variable(2)       $         27,901.81   February 25, 2035
      3A             Variable(2)       $          3,081.55   February 25, 2035
      3B             Variable(2)       $         14,604.45   February 25, 2035
      XX             Variable(2)       $    324,346,130.41   February 25, 2035
___________________________
(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date immediately following the maturity
         date for the Mortgage Loan with the latest maturity date has been
         designated as the "latest possible maturity date" for each REMIC II
         Regular Interest.
(2)      Calculated in accordance with the definition of "Uncertificated REMIC
         II Pass-Through Rate" herein.
(3)      REMIC II Regular Interest IO will not have an Uncertificated Principal
         Balance but will accrue interest on its uncertificated notional amount
         calculated in accordance with the definition of "Uncertificated
         Notional Amount" herein.

                                    REMIC III
                                    ---------

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the REMIC II Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
"REMIC III". The Class R-3 Certificates will represent the sole class of
"residual interests" in REMIC III for purposes of the REMIC Provisions.

                                       1
<PAGE>

         The following table irrevocably sets forth the designation,
Pass-Through Rate, Initial Certificate Principal Balance (or Uncertificated
Principal Balance, in the case of the Class CE, P and IO Interests) and, for
purposes of satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the
"latest possible maturity date" for each class of Certificates and interests
that represents ownership of one or more of the "regular interests" in REMIC III
created hereunder.

         Each Certificate, other than the the Class P Certificate, the Class CE
Certificate and the Class R Certificates, represents ownership of a regular
interest in REMIC III and also represents (i) the right to receive payments with
respect to the Basis Risk Shortfall Carry Forward Amount and (ii) the obligation
to pay Class IO Distribution Amount (as defined herein). The entitlement to
principal of the REMIC III regular interest which corresponds to each
Certificate shall be equal in amount and timing to the entitlement to principal
of such Certificate.

                                        INITIAL CERTIFICATE
                                         OR UNCERTIFICATED     LATEST POSSIBLE
  DESIGNATION       PASS-THROUGH RATE    PRINCIPAL BALANCE     MATURITY DATE(1)
---------------   -------------------- --------------------   ------------------
   I-A-1(2)            Variable(3)      $    110,488,000.00    February 25, 2035
   I-A-2(2)            Variable(3)      $     52,281,000.00    February 25, 2035
   I-A-3(2)            Variable(3)      $     13,799,000.00    February 25, 2035
   II-A-1(2)           Variable(3)      $    176,116,000.00    February 25, 2035
   II-A-2(2)           Variable(3)      $     44,029,000.00    February 25, 2035
  III-A-1(2)           Variable(3)      $     92,183,000.00    February 25, 2035
  III-A-2(2)           Variable(3)      $     23,046,000.00    February 25, 2035
    M-1(2)             Variable(3)      $     43,149,000.00    February 25, 2035
    M-2(2)             Variable(3)      $     34,714,000.00    February 25, 2035
    M-3(2)             Variable(3)      $      9,408,000.00    February 25, 2035
    M-4(2)             Variable(3)      $      9,733,000.00    February 25, 2035
    M-5(2)             Variable(3)      $      7,462,000.00    February 25, 2035
    M-6(2)             Variable(3)      $      6,488,000.00    February 25, 2035
    M-7(2)             Variable(3)      $      6,488,000.00    February 25, 2035
    M-8(2)             Variable(3)      $      6,488,000.00    February 25, 2035
Class CE Interest    Variable(3)(4)     $     12,977,412.18    February 25, 2035
Class P Interest        0.00%(5)        $            100.00    February 25, 2035
Class IO Interest                                       (6)                  (7)

---------------------------------
(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury

         regulations, the Distribution Date in the month following the maturity
         date for the Mortgage Loan with the latest maturity date has been
         designated as the "latest possible maturity date" for each REMIC III
         Regular Interest.
(2)      This Class of Certificates represents ownership of a "regular interest"
         in REMIC III. Any amount distributed on this Class of Certificates on
         any Distribution Date in excess of the amount distributable on the
         related REMIC III Regular Interest on such Distribution Date shall be
         treated for federal income tax purposes as having been paid from the
         Reserve Fund or the Swap Account, as applicable, and any amount

                                       2
<PAGE>
         distributable on such REMIC III Regular Interest on such Distribution
         Date in excess of the amount distributable on such Class of
         Certificates on such Distribution Date shall be treated as having been
         paid to the Swap Account, all pursuant to and as further provided in
         Section 3.20 hereof.
(3)      Calculated in accordance with the definition of "Pass-Through Rate"
         herein. Each REMIC III Regular Interest which corresponds to a
         Certificate will have the same Pass-Through Rate as such Certificate,
         except with respect to the Net Rate Cap. The Net Rate Cap for each such
         REMIC III Regular Interest and Certificate are specified in the
         definition of Net Rate Cap.
(4)      The Class CE Interest will accrue interest at its variable Pass-Through
         Rate on the Uncertificated Notional Amount of the Class CE Interest
         outstanding from time to time which shall equal the Uncertificated
         Principal Balance of the REMIC II Regular Interests (other than REMIC
         II Regular Interest P). The Class CE Interest will not accrue interest
         on its Uncertificated Principal Balance.
(5)      The Class P Interest is not entitled to distributions in respect of
         interest.
(6)      For federal income tax purposes, the Class IO Interest will not have a
         Pass-Through Rate, but will be entitled to 100% of the amounts
         distributed on REMIC II Regular Interest IO.
(7)      For federal income tax purposes, the Class IO Interest will not have a
         Uncertificated Principal Balance, but will have a notional amount equal
         to the Uncertificated Notional Amount of REMIC II Regular Interest IO.

                                    REMIC IV
                                    --------

         As provided herein, the Trustee shall elect to treat the segregated
pool of assets consisting of the Class CE Interest as a REMIC for federal income
tax purposes, and such segregated pool of assets will be designated as "REMIC
IV." The Class R-4 Interest represents the sole class of "residual interests" in
REMIC IV for purposes of the REMIC Provisions.

         The following table sets forth the Class designation, Pass-Through
Rate, Initial Certificate Principal Balance and, for purposes of satisfying
Treasury Regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for the indicated Class of Certificates that represents a "regular
interest" in REMIC IV created hereunder:

                       PASS-THROUGH     INITIAL CERTIFICATE     LATEST POSSIBLE
CLASS DESIGNATION          RATE          PRINCIPAL BALANCE     MATURITY DATE(1)
-----------------      ------------      -----------------     ----------------
      CE                Variable(2)     $    648,849,412.18    February 25, 2035

(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date immediately following the maturity
         date for the Mortgage Loan with the latest maturity date has been
         designated as the "latest possible maturity date" for the Class CE
         Certificates.

(2)      The Class CE Certificates will receive 100% of amounts received in
         respect of the Class CE Interest.

                                     REMIC V
                                     -------

         As provided herein, the Trustee shall elect to treat the segregated
pool of assets consisting of the Class P Interest as a REMIC for federal income
tax purposes, and such segregated pool of assets will be designated as "REMIC
V." The Class R-5 Interest represents the sole class of "residual interests" in
REMIC V for purposes of the REMIC Provisions.

         The following table sets forth the Class designation, Pass-Through
Rate, Initial Certificate Principal Balance and, for purposes of satisfying
Treasury Regulation Section

                                       3
<PAGE>

1.860G-1(a)(4)(iii), the "latest possible maturity date" for the indicated Class
of Certificates that represents a "regular interest" in REMIC V created
hereunder:

                                         INITIAL AGGREGATE
                                        CERTIFICATE PRINCIPAL   LATEST POSSIBLE
CLASS DESIGNATION   PASS-THROUGH RATE         BALANCE          MATURITY DATE(1)
-----------------   -----------------   --------------------   ----------------
       P               0.00%(2)         $            100.00    February 25, 2035

___________________
(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date immediately following the maturity
         date for the Mortgage Loan with the latest maturity date has been
         designated as the "latest possible maturity date" for the Class P
         Certificates.

(2)      The Class P Certificates will receive 100% of amounts received in
         respect of the Class P Interest.

                                    REMIC VI
                                    --------

         As provided herein, the Trustee shall elect to treat the segregated
pool of assets consisting of the Class IO Interest as a REMIC for federal income
tax purposes, and such segregated pool of assets will be designated as "REMIC
VI." The Class R-6 Interest represents the sole class of "residual interests" in
REMIC VI for purposes of the REMIC Provisions.

         The following table sets forth the designation, Pass-Through Rate,
initial Uncertificated Principal Balance and, for purposes of satisfying
Treasury Regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for the indicated class of interests that represents a "regular interest"
in REMIC VI created hereunder:

                                               INITIAL
                                           UNCERTIFICATED       LATEST POSSIBLE
  DESIGNATION    PASS-THROUGH RATE        PRINCIPAL BALANCE    MATURITY DATE(1)
     IO(2)             (3)                       (4)           February 25, 2035

___________________
(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date immediately following the maturity
         date for the Mortgage Loan with the latest maturity date has been
         designated as the "latest possible maturity date" for REMIC VI Regular
         Interest IO.
(2)      REMIC VI Regular Interest IO will be held as an asset of the Swap
         Account established by the Swap Administrator.
(3)      REMIC VI Regular Interest IO will not have a Pass-Through Rate, but
         will receive 100% of amounts received in respect of the Class IO
         Interest.
(4)      REMIC VI Regular Interest IO will not have an Uncertificated Principal
         Balance, but will have a notional amount equal to the Uncertificated
         Notional Amount of the Class IO Interest.

         The Trust Fund shall be named, and may be referred to as, the "Bear
Stearns Asset Backed Securities I Trust 2005-HE2." The Certificates issued
hereunder may be referred to as "Asset-Backed Certificates, Series 2005-HE2"
(including for purposes of any endorsement or assignment of a Mortgage Note or
Mortgage).

                                       4
<PAGE>

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

                                       5
<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

         Section 1.01 DEFINED TERMS.

         In addition to those terms defined in Section 1.02, whenever used in
this Agreement, the following words and phrases, unless the context otherwise
requires, shall have the following meanings:

         ACCEPTED SERVICING PRACTICES: With respect to each Mortgage Loan, those
mortgage servicing practices (including collection procedures) that are in
accordance with all applicable statutes, regulations and prudent mortgage
banking practices for similar mortgage loans.

         ACCOUNT: The Distribution Account, the Reserve Fund, the Class P
Certificate Account and the Protected Account.

         ACCRUAL PERIOD: With respect to the Certificates (other than the Class
CE, Class P and the Residual Certificates) and any Distribution Date, the period
from and including the immediately preceding Distribution Date (or with respect
to the first Accrual Period, the Closing Date) to and including the day prior to
such Distribution Date. With respect to the Class CE Certificates and any
Distribution Date, the calendar month immediately preceding such Distribution
Date. All calculations of interest on the Certificates (other than the Class CE,
Class P and the Residual Certificates) will be made on the basis of the actual
number of days elapsed in the related Accrual Period. All calculations of
interest on the Class CE Certificates will be made on the basis of a 360-day
year consisting of twelve 30-day months.

         ADVANCE: An advance of delinquent payments of principal or interest in
respect of a Mortgage Loan required to be made by the Master Servicer as
provided in Section 5.01 hereof.

         AFFECTED PARTY: As defined in the Swap Agreement.

         AGREEMENT: This Pooling and Servicing Agreement and any and all
amendments or supplements hereto made in accordance with the terms herein.

         ADJUSTABLE RATE MORTGAGE LOAN: Each of the Mortgage Loans identified in
the Mortgage Loan Schedule as having a Mortgage Rate that is subject to
adjustment.

         ADJUSTMENT DATE: With respect to each Adjustable Rate Mortgage Loan,
the first day of the month in which the Mortgage Rate of an Adjustable Rate
Mortgage Loan changes pursuant to the related Mortgage Note. The first
Adjustment Date following the Cut-off Date as to each Adjustable Rate Mortgage
Loan is set forth in the Mortgage Loan Schedule.

         AMOUNT HELD FOR FUTURE DISTRIBUTION: As to any Distribution Date, the
aggregate amount held in the Protected Account at the close of business on the
immediately preceding

                                       6
<PAGE>

Determination Date on account of (i) all Scheduled Payments or portions thereof
received in respect of the Mortgage Loans due after the related Due Period and
(ii) Principal Prepayments, Liquidation Proceeds, Subsequent Recoveries and
Insurance Proceeds received in respect of such Mortgage Loans after the last day
of the related Prepayment Period.

         APPLIED REALIZED LOSS AMOUNT: With respect to any Distribution Date and
a Class of Class A Certificates and Class M Certificates, the sum of the
Realized Losses with respect to the Mortgage Loans which have been applied in
reduction of the Certificate Principal Balance of a Class of Certificates
pursuant to Section 5.05 of this Agreement which have not previously been
reimbursed or reduced by any Subsequent Recoveries applied to such Applied
Realized Loss Amount.

         APPRAISED VALUE: With respect to any Mortgage Loan originated in
connection with a refinancing, the appraised value of the Mortgaged Property
based upon the appraisal made at the time of such refinancing or, with respect
to any other Mortgage Loan, the lesser of (x) the appraised value of the
Mortgaged Property based upon the appraisal made by a fee appraiser at the time
of the origination of the related Mortgage Loan, and (y) the sales price of the
Mortgaged Property at the time of such origination.

         BASIS RISK SHORTFALL CARRY FORWARD AMOUNT: With respect to any
Distribution Date and any Class of Class A Certificates and Class M Certificates
and any Distribution Date for which the Pass-Through Rate for such Certificates
is equal to the related Net Rate Cap, an amount equal to the sum of (A) the
excess, if any, of (a) the amount of Current Interest that such Class would have
been entitled to receive on such Distribution Date had the Pass-Though Rate
applicable to such Class been calculated at a per annum rate equal to One-Month
LIBOR plus the related Certificate Margin, over (b) the amount of Current
Interest that such Class received on such Distribution Date at a per annum rate
equal to the related Net Rate Cap and (B) the amount in clause (A) for all
previous Distribution Dates not previously paid, together with interest thereon
at a rate equal to the related Pass-Through Rate for such Distribution Date.

         BANKRUPTCY CODE:  Title 11 of the United States Code.

         BOOK-ENTRY CERTIFICATES: Any of the Certificates that shall be
registered in the name of the Depository or its nominee, the ownership of which
is reflected on the books of the Depository or on the books of a person
maintaining an account with the Depository (directly, as a "Depository
Participant", or indirectly, as an indirect participant in accordance with the
rules of the Depository and as described in Section 6.06). As of the Closing
Date, each Class of Regular Certificates (other than the Class M-7, Class M-8,
Class CE and Class P Certificates) constitutes a Class of Book-Entry
Certificates.

         BUSINESS DAY: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which banking institutions in The City of New York, New York, Chicago,
Illinois, Minneapolis, Minnesota or the city in which the Corporate Trust Office
of the Trustee or the principal office of the Master Servicer is located are
authorized or obligated by law or executive order to be closed.

                                       7
<PAGE>

         CERTIFICATE: Any one of the certificates of any Class executed and
authenticated by the Trustee in substantially the forms attached hereto as
Exhibits A-1 through A-5.

         CERTIFICATE MARGIN: With respect to the Class I-A-1 Certificates and,
for purposes of the definition of "One-Month LIBOR Pass-Through Rate", REMIC II
Regular Interest I-A-1, 0.110%.

         With respect to the Class I-A-2 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
I-A-2, 0.240% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 0.480% in the case of each
Distribution Date thereafter.

         With respect to the Class I-A-3 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
I-A-3, 0.350% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 0.700% in the case of each
Distribution Date thereafter.

         With respect to the Class II-A-1 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
II-A-1, 0.250% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 0.500% in the case of each
Distribution Date thereafter.

         With respect to the Class II-A-2 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
II-A-2, 0.310% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 0.620% in the case of each
Distribution Date thereafter.

         With respect to the Class III-A-1 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
III-A-1, 0.240% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 0.480% in the case of each
Distribution Date thereafter.

         With respect to the Class III-A-2 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
III-A-2, 0.290% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 0.580% in the case of each
Distribution Date thereafter.

         With respect to the Class M-1 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
M-1, 0.500% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 0.750% in the case of each
Distribution Date thereafter.

         With respect to the Class M-2 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
M-2, 0.750% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 1.125% in the case of each
Distribution Date thereafter.

                                       8
<PAGE>

         With respect to the Class M-3 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
M-3, 0.790% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 1.185% in the case of each
Distribution Date thereafter.

         With respect to the Class M-4 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
M-4, 1.200% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 1.800% in the case of each
Distribution Date thereafter.

         With respect to the Class M-5 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
M-5, 1.300% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 1.950% in the case of each
Distribution Date thereafter.

         With respect to the Class M-6 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
M-6, 2.100% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 3.150% in the case of each
Distribution Date thereafter.

         With respect to the Class M-7 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
M-7, 3.000% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 4.500% in the case of each
Distribution Date thereafter.

         With respect to the Class M-8 Certificates and, for purposes of the
definition of "One-Month LIBOR Pass-Through Rate", REMIC II Regular Interest
M-8, 3.000% in the case of each Distribution Date through and including the
first possible Optional Termination Date and 4.500% in the case of each
Distribution Date thereafter.

         CERTIFICATE NOTIONAL AMOUNT: With respect to the Class CE Certificates
and any Distribution Date, an amount equal to the Stated Principal Balance of
the Mortgage Loans at the beginning of the related Due Period. The initial
Certificate Notional Amount of the Class CE Certificates shall be
$648,849,412.18. For federal income tax purposes, the Certificate Notional
Amount for any Distribution Date shall be an amount equal to the Uncertificated
Principal Balance of the REMIC II Regular Interests (other than REMIC II Regular
Interest P) for such Distribution Date.

         CERTIFICATE OWNER: With respect to a Book-Entry Certificate, the Person
that is the beneficial owner of such Book-Entry Certificate.

         CERTIFICATE PRINCIPAL BALANCE: As to any Certificate (other than any
Class CE Certificate or Class R Certificate) and as of any Distribution Date,
the Initial Certificate Principal Balance of such Certificate plus, in the case
of a Class A Certificate and Class M Certificate, any Subsequent Recoveries
added to the Certificate Principal Balance of such Certificate pursuant to
Section 5.04(b), less the sum of (i) all amounts distributed with respect to
such Certificate in

                                       9
<PAGE>

reduction of the Certificate Principal Balance thereof on previous Distribution
Dates pursuant to Section 5.04, and (ii) any Applied Realized Loss Amounts
allocated to such Certificate on previous Distribution Dates.

         CERTIFICATE REGISTER: The register maintained pursuant to Section 6.02
hereof.

         CERTIFICATEHOLDER OR HOLDER: The person in whose name a Certificate is
registered in the Certificate Register (initially, Cede & Co., as nominee for
the Depository, in the case of any Book-Entry Certificates).

         CLASS: All Certificates bearing the same Class designation as set forth
in Section 6.01 hereof.

         CLASS A CERTIFICATES: Any of the Class I-A-1, Class I-A-2, Class I-A-3,
Class II-A-1, Class II-A-2, Class III-A-1 and Class III-A-2 Certificates.

         CLASS A PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an
amount equal to the lesser of (x) the Principal Distribution Amount for such
Distribution Date and (y) the excess, if any, of (i) the aggregate Certificate
Principal Balance of the Class A Certificates immediately prior to such
Distribution Date, over (ii) the lesser of (a) the product of (1) 57.80% and (2)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period, and (b) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period minus $3,244,247.

         CLASS I-A CERTIFICATES: Any of the Class I-A-1, Class I-A-2 and Class
I-A-3 Certificates.

         CLASS I-A-1 CERTIFICATE: Any Certificate designated as a "Class I-A-1
Certificate" on the face thereof, in the form of Exhibit A-1 hereto,
representing the right to the Percentage Interest of distributions provided for
the Class I-A-1 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS I-A-2 CERTIFICATE: Any Certificate designated as a "Class I-A-2
Certificate" on the face thereof, in the form of Exhibit A-1 hereto,
representing the right to the Percentage Interest of distributions provided for
the Class I-A-2 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS I-A-3 CERTIFICATE: Any Certificate designated as a "Class I-A-3
Certificate" on the face thereof, in the form of Exhibit A-1 hereto,
representing the right to the Percentage Interest of distributions provided for
the Class I-A-3 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS I-A PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date,
with respect to the Class I-A Certificates and any Distribution Date, is the
product of the Class A Principal Distribution Amount and a fraction, the
numerator of which is the Principal Funds for Loan

                                       10
<PAGE>

Group I for such Distribution Date and the denominator of which is the Principal
Funds for all Loan Groups for such Distribution Date.

         CLASS II-A CERTIFICATES: Any of the Class II-A-1 Certificates and Class
II-A-2 Certificates.

         CLASS II-A-1 CERTIFICATE: Any Certificate designated as a "Class II-A-1
Certificate" on the face thereof, in the form of Exhibit A-1 hereto,
representing the right to the Percentage Interest of distributions provided for
the Class II-A-1 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS II-A-2 CERTIFICATE: Any Certificate designated as a "Class II-A-2
Certificate" on the face thereof, in the form of Exhibit A-1 hereto,
representing the right to the Percentage Interest of distributions provided for
the Class II-A-2 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS II-A PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date,
with respect to the Class II-A Certificates and any Distribution Date, is the
product of the Class A Principal Distribution Amount and a fraction, the
numerator of which is the Principal Funds for Loan Group II for such
Distribution Date and the denominator of which is the Principal Funds for all
Loan Groups for such Distribution Date.

         CLASS III-A CERTIFICATES: Any of the Class III-A-1 Certificates and
Class III-A-2 Certificates.

         CLASS III-A-1 CERTIFICATE: Any Certificate designated as a "Class
III-A-1 Certificate" on the face thereof, in the form of Exhibit A-1 hereto,
representing the right to the Percentage Interest of distributions provided for
the Class III-A-1 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS III-A-2 CERTIFICATE: Any Certificate designated as a "Class
III-A-2 Certificate" on the face thereof, in the form of Exhibit A-1 hereto,
representing the right to the Percentage Interest of distributions provided for
the Class III-A-2 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS III-A PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date,
with respect to the Class III-A Certificates and any Distribution Date, is the
product of the Class A Principal Distribution Amount and a fraction, the
numerator of which is the Principal Funds for Loan Group III for such
Distribution Date and the denominator of which is the Principal Funds for all
Loan Groups for such Distribution Date.

         CLASS CE CERTIFICATE: Any Certificate designated as a "Class CE
Certificate" on the face thereof, in the form of Exhibit A-4 hereto,
representing the right to its Percentage Interest of

                                       11
<PAGE>

distributions provided for the Class CE Certificates herein and evidencing a
Regular Interest in REMIC IV.

         CLASS CE DISTRIBUTION AMOUNT: With respect to any Distribution Date,
the sum of (i) the Current Interest for the Class CE Interest for such
Distribution Date, (ii) any Overcollateralization Release Amount for such
Distribution Date and (iii) without duplication, any Subsequent Recoveries not
distributed to the Class A Certificates and Class M Certificates on such
Distribution Date; provided, however that on any Distribution Date after the
Distribution Date on which the Certificate Principal Balances of the Class A
Certificates and Class M Certificates have been reduced to zero, the Class CE
Distribution Amount shall include the Overcollateralization Amount.

         CLASS CE INTEREST: An uncertificated interest in the Trust Fund held by
the Trustee on behalf of the Holders of the Class CE Certificates, evidencing
(i) a Regular Interest in REMIC III for purposes of the REMIC Provisions, (ii)
the obligation to pay Basis Risk Shortfall Amounts and Swap Termination Payments
and (iii) the right to receive the Class IO Distribution Amount.

         CLASS IO DISTRIBUTION AMOUNT: As defined in Section 3.20 hereof. For
purposes of clarity, the Class IO Distribution Amount for any Distribution Date
shall equal the amount payable to the Swap Administrator on such Distribution
Date in excess of the amount payable on REMIC VI Regular Interest IO on such
Distribution Date, all as further provided in Section 3.20 hereof.

         CLASS IO INTEREST: An uncertificated interest in the Trust Fund held by
the Trustee on behalf of the Holders of REMIC VI Regular Interest IO, evidencing
a Regular Interest in REMIC III for purposes of the REMIC Provisions.

         CLASS M CERTIFICATES: Any of the Class M-1, Class M-2, Class M-3, Class
M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Certificates.

         CLASS M-1 CERTIFICATE: Any Certificate designated as a "Class M-1
Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to its Percentage Interest of distributions provided for
the Class M-1 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS M-1 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an
amount equal to the lesser of (x) the remaining Principal Distribution Amount
for such Distribution Date after distribution of the Class A Principal
Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the
aggregate Certificate Principal Balance of the Class A Certificates (after
taking into account the distribution of the Class A Principal Distribution
Amount on such Distribution Date) and (2) the Certificate Principal Balance of
the Class M-1 Certificates immediately prior to such Distribution Date, over (b)
the lesser of (1) the product of (x) 71.10% and (y) the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans as
of the last day of the related Due Period minus $3,244,247.

                                       12
<PAGE>

         CLASS M-2 CERTIFICATE: Any Certificate designated as a "Class M-2
Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to its Percentage Interest of distributions provided for
the Class M-2 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS M-2 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an
amount equal to the lesser of (x) the remaining Principal Distribution Amount
for such Distribution Date after distribution of the Class A Principal
Distribution Amount and the Class M-1 Principal Distribution Amount and (y) the
excess, if any, of (a) the sum of (1) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account the distribution
of the Class A Principal Distribution Amount on such Distribution Date), (2) the
Certificate Principal Balance of the Class M-1 Certificates (after taking into
account the distribution of the Class M-1 Principal Distribution Amount on such
Distribution Date) and (3) the Certificate Principal Balance of the Class M-2
Certificates immediately prior to such Distribution Date, over (b) the lesser of
(1) the product of (x) 81.80% and (y) the aggregate Stated Principal Balance of
the Mortgage Loans as of the last day of the related Due Period, and (2) the
aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period minus $3,244,247.

         CLASS M-3 CERTIFICATE: Any Certificate designated as a "Class M-3
Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to its Percentage Interest of distributions provided for
the Class M-3 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS M-3 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an
amount equal to the lesser of (x) the remaining Principal Distribution Amount
for such Distribution Date after distribution of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount and the Class
M-2 Principal Distribution Amount and (y) the excess, if any, of (a) the sum of
(1) the aggregate Certificate Principal Balance of the Class A Certificates
(after taking into account the distribution of the Class A Principal
Distribution Amount on such Distribution Date), (2) the Certificate Principal
Balance of the Class M-1 Certificates (after taking into account the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
(after taking into account the distribution of the Class M-2 Principal
Distribution Amount on such Distribution Date) and (4) the Certificate Principal
Balance of the Class M-3 Certificates immediately prior to such Distribution
Date, over (b) the lesser of (1) the product of (x) 84.70% and (y) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans
as of the last day of the related Due Period minus $3,244,247.

         CLASS M-4 CERTIFICATE: Any Certificate designated as a "Class M-4
Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to its Percentage Interest of distributions provided for
the Class M-4 Certificates as set forth herein and evidencing (i) a

                                       13
<PAGE>

Regular Interest in REMIC III, (ii) the right to receive the Basis Risk
Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO
Distribution Amount.

         CLASS M-4 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an
amount equal to the lesser of (x) the remaining Principal Distribution Amount
for such Distribution Date after distribution of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2
Principal Distribution Amount and the Class M-3 Principal Distribution Amount
and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Class A Principal Distribution Amount on such Distribution
Date), (2) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (3) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (4) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date) and (5) the Certificate Principal
Balance of the Class M-4 Certificates immediately prior to such Distribution
Date, over (b) the lesser of (1) the product of (x) 87.70% and (y) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans
as of the last day of the related Due Period minus $3,244,247.

         CLASS M-5 CERTIFICATE: Any Certificate designated as a "Class M-5
Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to its Percentage Interest of distributions provided for
the Class M-5 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS M-5 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an
amount equal to the lesser of (x) the remaining Principal Distribution Amount
for such Distribution Date after distribution of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2
Principal Distribution Amount, the Class M-3 Principal Distribution Amount and
the Class M-4 Principal Distribution Amount and (y) the excess, if any, of (a)
the sum of (1) the aggregate Certificate Principal Balance of the Class A
Certificates (after taking into account the distribution of the Class A
Principal Distribution Amount on such Distribution Date), (2) the Certificate
Principal Balance of the Class M-1 Certificates (after taking into account the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
(after taking into account the distribution of the Class M-2 Principal
Distribution Amount on such Distribution Date), (4) the Certificate Principal
Balance of the Class M-3 Certificates (after taking into account the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date), (5) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the distribution of the Class M-4 Principal
Distribution Amount on such Distribution Date) and (6) the Certificate Principal
Balance of the Class M-5 Certificates immediately prior to such Distribution
Date, over (b) the lesser of (1) the product of (x) 90.00% and (y) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period, and

                                       14
<PAGE>

(2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period minus $3,244,247.

         CLASS M-6 CERTIFICATE: Any Certificate designated as a "Class M-6
Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to its Percentage Interest of distributions provided for
the Class M-6 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS M-6 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an
amount equal to the lesser of (x) the remaining Principal Distribution Amount
for such Distribution Date after distribution of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2
Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the
Class M-4 Principal Distribution Amount and the Class M-5 Principal Distribution
Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account the distribution of the Class A Principal Distribution Amount on such
Distribution Date), (2) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the distribution of the Class M-1
Principal Distribution Amount on such Distribution Date), (3) the Certificate
Principal Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (4) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (5) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (6) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date) and (7) the Certificate Principal
Balance of the Class M-6 Certificates immediately prior to such Distribution
Date, over (b) the lesser of (1) the product of (x) 92.00% and (y) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans
as of the last day of the related Due Period minus $3,244,247.

         CLASS M-7 CERTIFICATE: Any Certificate designated as a "Class M-7
Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to its Percentage Interest of distributions provided for
the Class M-7 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS M-7 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an
amount equal to the lesser of (x) the remaining Principal Distribution Amount
for such Distribution Date after distribution of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2
Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the
Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution
Amount and the Class M-6 Principal Distribution Amount and (y) the excess, if
any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the
Class A Certificates (after taking

                                       15
<PAGE>

into account the distribution of the Class A Principal Distribution Amount on
such Distribution Date), (2) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the distribution of the Class M-1
Principal Distribution Amount on such Distribution Date), (3) the Certificate
Principal Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (4) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (5) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (6) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date) (7) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date) and (8) the Certificate Principal Balance of the Class M-7 Certificates
immediately prior to such Distribution Date, over (b) the lesser of (1) the
product of (x) 94.00% and (y) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period, and (2) the
aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period minus $3,244,247.

         CLASS M-8 CERTIFICATE: Any Certificate designated as a "Class M-7
Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to its Percentage Interest of distributions provided for
the Class M-7 Certificates as set forth herein and evidencing (i) a Regular
Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry
Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

         CLASS M-8 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, an
amount equal to the lesser of (x) the remaining Principal Distribution Amount
for such Distribution Date after distribution of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2
Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the
Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution
Amount, the Class M-6 Principal Distribution Amount and the Class M-8 Principal
Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the
aggregate Certificate Principal Balance of the Class A Certificates (after
taking into account the distribution of the Class A Principal Distribution
Amount on such Distribution Date), (2) the Certificate Principal Balance of the
Class M-1 Certificates (after taking into account the distribution of the Class
M-1 Principal Distribution Amount on such Distribution Date), (3) the
Certificate Principal Balance of the Class M-2 Certificates (after taking into
account the distribution of the Class M-2 Principal Distribution Amount on such
Distribution Date), (4) the Certificate Principal Balance of the Class M-3
Certificates (after taking into account the distribution of the Class M-3
Principal Distribution Amount on such Distribution Date), (5) the Certificate
Principal Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (6) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date) (7) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date), (8) the Certificate Principal Balance of the

                                       16
<PAGE>

Class M-7 Certificates immediately prior to such Distribution Date (after taking
into account the distribution of the Class M-7 Principal Distribution Amount on
such Distribution Date), and (9) the Certificate Principal Balance of the Class
M-8 Certificates immediately prior to such Distribution Date, over (b) the
lesser of (1) the product of (x) 96.00% and (y) the aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period, and
(2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period minus $3,244,247.

         CLASS P CERTIFICATE: Any Certificate designated as a "Class P
Certificate" on the face thereof, in the form of Exhibit A-3 hereto,
representing the right to its Percentage Interest of distributions provided for
the Class P Certificates as set forth herein and evidencing a Regular Interest
in REMIC V.

         CLASS P INTEREST: An uncertificated interest in the Trust Fund held by
the Trustee on behalf of the Holders of the Class P Certificates, evidencing a
Regular Interest in REMIC III for purposes of the REMIC Provisions.

         CLASS P CERTIFICATE ACCOUNT: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 4.05 in the name of the Trustee
for the benefit of the Class P Certificateholders.

         CLASS R-1 CERTIFICATE: Any Certificate designated a "Class R-1
Certificate" on the face thereof, in substantially the form set forth in Exhibit
A-5 hereto, evidencing the Residual Interest in REMIC I and representing the
right to the Percentage Interest of distributions provided for the Class R-1
Certificates as set forth herein.

         CLASS R-2 CERTIFICATE: Any Certificate designated a "Class R-2
Certificate" on the face thereof, in substantially the form set forth in Exhibit
A-5 hereto, evidencing the Residual Interest in REMIC II and representing the
right to the Percentage Interest of distributions provided for the Class R-2
Certificates as set forth herein.

         CLASS R-3 CERTIFICATE: Any Certificate designated a "Class R-3
Certificate" on the face thereof, in substantially the form set forth in Exhibit
A-5 hereto, evidencing the Residual Interest in REMIC III and representing the
right to the Percentage Interest of distributions provided for the Class R-3
Certificates as set forth herein.

         CLASS RX CERTIFICATE: Any Certificate designated a "Class RX
Certificate" on the face thereof, in substantially the form set forth in Exhibit
A-5 hereto, evidencing the ownership of the Class R-4 Interest, Class R-5
Interest and Class R-6 Interest and representing the right to the Percentage
Interest of distributions provided for the Class RX Certificates as set forth
herein.

         CLASS R-4 INTEREST:  The uncertificated Residual Interest in REMIC IV.

         CLASS R-5 INTEREST:  The uncertificated Residual Interest in REMIC V.

         CLASS R-6 INTEREST:  The uncertificated Residual Interest in REMIC VI.

                                       17
<PAGE>

         CLOSING DATE: February 28, 2005.

         CODE: The Internal Revenue Code of 1986, including any successor or
amendatory provisions.

         COMPENSATING INTEREST: An amount, not to exceed the Servicing Fee, to
be deposited in the Protected Account by the Master Servicer to the payment of a
Prepayment Interest Shortfall on a Mortgage Loan subject to this Agreement.

         CORPORATE TRUST OFFICE: The designated office of the Trustee where at
any particular time its corporate trust business with respect to this Agreement
shall be administered, which office at the date of the execution of this
Agreement is located at 135 South LaSalle Street, Suite 1625, Chicago, Illinois,
Attention: Global Securitization Trust Services Group - Bear Stearns Asset
Backed Securities I LLC, Series 2005-HE2, or at such other address as the
Trustee may designate from time to time.

         CORRESPONDING CERTIFICATE: With respect to each REMIC II Regular
Interest (other than REMIC II Regular Interests AA, ZZ, 1A, 1B, 2A, 2B, 3A, 3B,
XX, IO and P), the Certificate with the corresponding designation. With respect
to each REMIC III Regular Interest (other than the Class CE Interest, the Class
P Interest and the Class IO Interest), the related Certificate representing an
ownership therein.

         CURRENT INTEREST: As of any Distribution Date, with respect to the
Certificates of each Class (other than the Class P Certificates and the Residual
Certificates), (i) the interest accrued on the Certificate Principal Balance or
Certificate Notional Amount or Uncertificated Notional Amount, as applicable,
during the related Accrual Period at the applicable Pass-Through Rate plus any
amount previously distributed with respect to interest for such Certificate that
has been recovered as a voidable preference by a trustee in bankruptcy minus
(ii) the sum of (a) any Prepayment Interest Shortfall for such Distribution
Date, to the extent not covered by Compensating Interest and (b) any Relief Act
Interest Shortfalls during the related Due Period, provided, however, that for
purposes of calculating Current Interest for any such Class, amounts specified
in clause (ii) hereof for any such Distribution Date shall be allocated first to
the Class CE Certificates and Residual Certificates in reduction of amounts
otherwise distributable to such Certificates on such Distribution Date and then
any excess shall be allocated to each Class of Class A Certificates and Class M
Certificates pro rata based on the respective amounts of interest accrued
pursuant to clause (i) hereof for each such Class on such Distribution Date.

         CURRENT SPECIFIED ENHANCEMENT PERCENTAGE: With respect to any
Distribution Date, the percentage obtained by dividing (x) the sum of (i) the
aggregate Certificate Principal Balance of the Class M Certificates and (ii) the
Overcollateralization Amount, in each case prior to the distribution of the
Principal Distribution Amount on such Distribution Date, by (y) the aggregate
Stated Principal Balance of the Mortgage Loans as of the end of the related Due
Period.

         CUSTODIAL AGREEMENT: An agreement, dated as of February 28, 2005, among
the Depositor, the Seller, the Master Servicer, the Trustee and the Custodian in
substantially the form of Exhibit J hereto.

                                       18
<PAGE>

         CUSTODIAN: LaSalle Bank National Association, or any successor
custodian appointed pursuant to the provisions hereof and the Custodial
Agreement.

         CUT-OFF DATE:  The close of business on February 1, 2005.

         CUT-OFF DATE PRINCIPAL BALANCE: As to any Mortgage Loan, the unpaid
principal balance thereof as of the close of business on the Cut-off Date after
application of all Principal Prepayments received prior to the Cut-off Date and
scheduled payments of principal due on or before the Cut-off Date, whether or
not received, but without giving effect to any installments of principal
received in respect of Due Dates after the Cut-off Date. The aggregate Cut-off
Date Principal Balance of the Mortgage Loans is $648,849,412.18.

         DEBT SERVICE REDUCTION: With respect to any Mortgage Loan, a reduction
by a court of competent jurisdiction in a proceeding under the Bankruptcy Code
in the Scheduled Payment for such Mortgage Loan that became final and
non-appealable, except such a reduction resulting from a Deficient Valuation or
any other reduction that results in a permanent forgiveness of principal.

         DEFAULTING PARTY:  As defined in the Swap Agreement.

         DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation by
a court of competent jurisdiction of the Mortgaged Property in an amount less
than the then outstanding indebtedness under such Mortgage Loan, or any
reduction in the amount of principal to be paid in connection with any Scheduled
Payment that results in a permanent forgiveness of principal, which valuation or
reduction results from an order of such court that is final and non-appealable
in a proceeding under the Bankruptcy Code.

         DEFINITIVE CERTIFICATES:  As defined in Section 6.06.

         DELETED MORTGAGE LOAN: A Mortgage Loan replaced or to be replaced by a
Replacement Mortgage Loan.

         DELINQUENCY EVENT: A Delinquency Event shall have occurred and be
continuing if at any time, (x) the percent equivalent of a fraction, the
numerator of which is the aggregate Stated Principal Balance of the Mortgage
Loans that are 60 days or more Delinquent (including for this purpose any such
Mortgage Loans in bankruptcy or foreclosure and Mortgage Loans with respect to
which the related Mortgaged Property is REO Property), and the denominator of
which is the aggregate Stated Principal Balance of all of the Mortgage Loans as
of the last day of the related Due Period exceeds (y) 37% of the Current
Specified Enhancement Percentage.

         DELINQUENT: A Mortgage Loan is "delinquent" if any payment due thereon
is not made pursuant to the terms of such Mortgage Loan by the close of business
on the day such payment is scheduled to be due. A Mortgage Loan is "30 days
delinquent" if such payment has not been received by the close of business on
the corresponding day of the month immediately succeeding the month in which
such payment was due, or, if there is no such corresponding day (e.g., as when a
30-day month follows a 31-day month in which a payment was due on the 31st day
of

                                       19
<PAGE>

such month), then on the last day of such immediately succeeding month.
Similarly for "60 days delinquent," "90 days delinquent" and so on.

         DENOMINATION: With respect to each Certificate, the amount set forth on
the face thereof as the "Initial Principal Balance or Initial Notional Amount of
this Certificate".

         DEPOSITOR: Bear Stearns Asset Backed Securities I LLC, a Delaware
limited liability company, or its successor in interest.
         DEPOSITORY: The initial Depository shall be The Depository Trust
Company ("DTC"), the nominee of which is Cede & Co., or any other organization
registered as a "clearing agency" pursuant to Section 17A of the Securities
Exchange Act of 1934, as amended. The Depository shall initially be the
registered Holder of the Book-Entry Certificates. The Depository shall at all
times be a "clearing corporation" as defined in Section 8-102(a)(5) of the
Uniform Commercial Code of the State of New York.

         DEPOSITORY AGREEMENT: With respect to the Class of Book-Entry
Certificates, the agreement among the Depositor, the Trustee and the initial
Depository, dated as of the Closing Date, substantially in the form of Exhibit
H.

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

         DETERMINATION DATE: With respect to any Distribution Date, the 15th day
of the month of such Distribution Date or, if such 15th day is not a Business
Day, the immediately preceding Business Day.

         DISTRIBUTION ACCOUNT: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 4.04 in the name of the Trustee
for the benefit of the Certificateholders designated "LaSalle Bank National
Association, in trust for registered holders of Bear Stearns Asset Backed
Securities I LLC, Asset-Backed Certificates, Series 2005-HE2". Funds in the
Distribution Account shall be held in trust for the Certificateholders for the
uses and purposes set forth in this Agreement.

         DISTRIBUTION ACCOUNT DEPOSIT DATE: The Business Day prior to each
Distribution Date.

         DISTRIBUTION DATE: The 25th day of each calendar month after the
initial issuance of the Certificates, or if such 25th day is not a Business Day,
the next succeeding Business Day, commencing in March 2005.

         DUE DATE: As to any Mortgage Loan, the date in each month on which the
related Scheduled Payment is due, as set forth in the related Mortgage Note.

         DUE PERIOD: With respect to any Distribution Date, the period from the
second day of the calendar month preceding the calendar month in which such
Distribution Date occurs through close of business on the first day of the
calendar month in which such Distribution Date occurs.

                                       20
<PAGE>

         ELIGIBLE ACCOUNT: Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company, the
long-term unsecured debt obligations and 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 debt obligations of such
holding company, so long as Moody's is not a Rating Agency) are rated by each
Rating Agency in one of its two highest long-term and its highest short-term
rating categories, respectively, at the time any amounts are held on deposit
therein, or (ii) an account or accounts in a depository institution or trust
company in which such accounts are insured by the FDIC (to the limits
established by the FDIC) and the uninsured deposits in which accounts are
otherwise secured such that, as evidenced by an Opinion of Counsel delivered to
the Trustee and to each Rating Agency, the Certificateholders have a claim with
respect to the funds in such account or a perfected first priority security
interest against any collateral (which shall be limited to Permitted
Investments) securing such funds that is superior to claims of any other
depositors or creditors of the depository institution or trust company in which
such account is maintained, or (iii) a trust account or accounts maintained with
the corporate trust department of a federal or state chartered depository
institution or trust company having capital and surplus of not less than
$50,000,000, acting in its fiduciary capacity or (iv) any other account
acceptable to the Rating Agencies, as evidenced in writing. Eligible Accounts
may bear interest, and may include, if otherwise qualified under this
definition, accounts maintained with the Trustee.

         EMC: EMC Mortgage Corporation, a Delaware corporation, and its
successors and assigns.

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

         ERISA RESTRICTED CERTIFICATES: Prior to the termination of the Swap
Agreement, all of the Certificates. Subsequent to the termination of the Swap
Agreement, any of the Class CE, Class P and Residual Certificates.

         EVENT OF DEFAULT: As defined in Section 8.01 hereof.

         EXCESS CASHFLOW: With respect to any Distribution Date, an amount, if
any, equal to the sum of (a) the Remaining Excess Spread for such Distribution
Date and (b) the Overcollateralization Release Amount for such Distribution
Date.

         EXCESS LIQUIDATION PROCEEDS: To the extent not required by law to be
paid to the related Mortgagor, the excess, if any, of any Liquidation Proceeds
with respect to a Mortgage Loan over the Stated Principal Balance of such
Mortgage Loan and accrued and unpaid interest at the related Mortgage Rate
through the last day of the month in which the Mortgage Loan has been
liquidated.

         EXCESS SPREAD: With respect to any Distribution Date, the excess, if
any, of (i) the Interest Funds for such Distribution Date over (ii) the sum of
the Current Interest on the Class A Certificates and Class M Certificates and
Interest Carry Forward Amounts on the Class A Certificates (other than Interest
Carry Forward Amounts paid pursuant to Section 5.04(a)(4)(A)), in each case for
such Distribution Date.

                                       21
<PAGE>

         EXEMPTION: Prohibited Transaction Exemption 90-30, as amended from time
to time.

         EXTRA PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Distribution
Date, the lesser of (i) the excess, if any, of the Overcollateralization Target
Amount for such Distribution Date over the Overcollateralization Amount for such
Distribution Date (after giving effect to distributions of principal on the
Certificates other than any Extra Principal Distribution Amount) and (ii) the
Excess Spread for such Distribution Date.

         FANNIE MAE: Fannie Mae (formerly, Federal National Mortgage
Association), or any successor thereto.

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

         FINAL CERTIFICATION: The certification substantially in the form of
Exhibit Three to the Custodial Agreement.

         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 Seller pursuant to or as contemplated by Section 2.03(c) or Section
10.01), a determination made by the Master Servicer that all Insurance Proceeds,
Liquidation Proceeds and other payments or recoveries which the Master Servicer,
in its reasonable good faith judgment, expects to be finally recoverable in
respect thereof have been so recovered. The Trustee shall maintain records,
based solely on information provided by the Master Servicer, of each Final
Recovery Determination made thereby.

         FIRREA: The Financial Institutions Reform, Recovery, and Enforcement
Act of 1989.

         FISCAL QUARTER: December 1 to February 29 (or the last day in such
month), March 1 to May 31, June 1 to August 31, or September 1 to November 30,
as applicable.

         FREDDIE MAC: Federal Home Loan Mortgage Corporation, or any successor
thereto.

         GROSS MARGIN: With respect to each Adjustable Rate Mortgage Loan, the
fixed percentage set forth in the related Mortgage Note that is added to the
Index on each Adjustment Date in accordance with the terms of the related
Mortgage Note used to determine the Mortgage Rate for such Mortgage Loan.

         GROUP I LOANS: The Mortgage Loans identified as such on the Mortgage
Loan Schedule.

         GROUP I PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Distribution
Date, the product of the Principal Distribution Amount for such Distribution
Date and a fraction, the numerator of which is the Principal Funds for Loan
Group I for such Distribution Date and the denominator of which is the Principal
Funds for all Loan Groups for such Distribution Date.

         GROUP II LOANS: The Mortgage Loans identified as such on the Mortgage
Loan Schedule.

                                       22
<PAGE>

         GROUP II PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date, the product of the Principal Distribution Amount for such
Distribution Date and a fraction, the numerator of which is the Principal Funds
for Loan Group II for such Distribution Date and the denominator of which is the
Principal Funds for all Loan Groups for such Distribution Date.

         GROUP II SEQUENTIAL TRIGGER EVENT: With respect to any Distribution
Date, a trigger event is in effect if, on any Distribution Date before the 37th
Distribution Date, the aggregate amount of Realized Losses incurred since the
Cut-off Date through the last day of the related Prepayment Period divided by
the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date exceeds 3.50% or if, on or after the 37th Distribution Date, a Trigger
Event is in effect.

         GROUP III LOANS: The Mortgage Loans identified as such on the Mortgage
Loan Schedule.

         GROUP III PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date, the product of the Principal Distribution Amount for such
Distribution Date and a fraction, the numerator of which is the Principal Funds
for Loan Group III for such Distribution Date and the denominator of which is
the Principal Funds for all Loan Groups for such Distribution Date.

         GROUP III SEQUENTIAL TRIGGER EVENT: With respect to any Distribution
Date, a trigger event is in effect if, on any Distribution Date before the 37th
Distribution Date, the aggregate amount of Realized Losses incurred since the
Cut-off Date through the last day of the related Prepayment Period divided by
the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date exceeds 3.50% or if, on or after the 37th Distribution Date, a Trigger
Event is in effect.

         INDEMNIFIED PERSONS: The Trustee, the Master Servicer, the Trust Fund
and their officers, directors, agents and employees and, with respect to the
Trustee, any separate co-trustee and its officers, directors, agents and
employees.

         INDEX: With respect to each Adjustable Rate Mortgage Loan and with
respect to each related Adjustment Date, the index as specified in the related
Mortgage Note.

         INITIAL CERTIFICATION: The certification substantially in the form of
Exhibit One to the Custodial Agreement.

         INITIAL CERTIFICATE PRINCIPAL BALANCE: With respect to any Certificate,
the Certificate Principal Balance of such Certificate or any predecessor
Certificate on the Closing Date.

         INSTITUTIONAL ACCREDITED INVESTOR: Any Person meeting the requirements
of Rule 501(a)(l), (2), (3) or (7) of Regulation D under the Securities Act or
any entity all of the equity holders in which come within such paragraphs.

         INSURANCE PROCEEDS: Proceeds paid in respect of the Mortgage Loans
pursuant to any Insurance Policy and any other insurance policy covering a
Mortgage Loan, to the extent such proceeds are payable to the mortgagee under
the Mortgage, the Master Servicer or the trustee under the deed of trust and are
not applied to the restoration of the related Mortgaged Property or

                                       23
<PAGE>

released to the Mortgagor in accordance with the procedures that the Master
Servicer would follow in servicing mortgage loans held for its own account, in
each case other than any amount included in such Insurance Proceeds in respect
of Insured Expenses.

         INSURED EXPENSES: Expenses covered by any insurance policy with respect
to the Mortgage Loans.

         INTEREST CARRY FORWARD AMOUNT: As of any Distribution Date and with
respect to each Class of Certificates (other than the Class CE, Class P and the
Residual Certificates), the sum of (i) the excess of (a) the Current Interest
for such Class with respect to such Distribution Date and any prior Distribution
Dates over (b) the amount actually distributed to such Class of Certificates
with respect to interest on such Distribution Dates and (ii) interest thereon
(to the extent permitted by applicable law) at the applicable Pass-Through Rate
for such Class for the related Accrual Period including the Accrual Period
relating to such Distribution Date.

         INTEREST DETERMINATION DATE: Shall mean the second LIBOR Business Day
preceding the commencement of each Accrual Period.

         INTEREST FUNDS: With respect to each Loan Group and any Distribution
Date (i) the sum, without duplication, of (a) all scheduled interest during the
related Due Period with respect to the related Mortgage Loans less the Servicing
Fee, the Trustee Fee and the LPMI Fee, if any, (b) all Advances relating to
interest with respect to the related Mortgage Loans made on or prior to the
related Distribution Account Deposit Date, (c) all Compensating Interest with
respect to the related Mortgage Loans and required to be remitted by the Master
Servicer pursuant to this Agreement with respect to such Distribution Date, (d)
Liquidation Proceeds and Subsequent Recoveries with respect to the related
Mortgage Loans collected during the related Prepayment Period (to the extent
such Liquidation Proceeds and Subsequent Recoveries relate to interest), and (e)
all amounts relating to interest with respect to each Mortgage Loan in such Loan
Group repurchased by the Seller pursuant to Sections 2.02 and 2.03 and by EMC
pursuant to Section 3.18, in each case to the extent remitted by the Master
Servicer to the Distribution Account pursuant to this Agreement, minus (ii) all
amounts relating to interest required to be reimbursed pursuant to Sections 4.02
and 4.05 or as otherwise set forth in this Agreement, and (iii) any Net Swap
Payments or Swap Termination Payments (not due to a Swap Provider Trigger Event)
owed to the Swap Administrator for payment to the Swap Provider.

         INTERIM CERTIFICATION: The certification substantially in the form of
Exhibit Two to the Custodial Agreement.

         LASALLE:  LaSalle Bank National Association, and any successor thereto.

         LAST SCHEDULED DISTRIBUTION DATE: Solely for purposes of the face of
the Certificates as follows: with respect to the Certificates, other than the
Class I-A-1 Certificates and Class I-A-2 Certificates, the Distribution Date in
February 2035; with respect to the Class I-A-1 Certificates and Class I-A-2
Certificates, the Distribution Date in July 2027 and August 2033, respectively.

                                       24
<PAGE>

         LATEST POSSIBLE MATURITY DATE: The Distribution Date in the month
following the final scheduled maturity date of the Mortgage Loan in the Trust
Fund having the latest scheduled maturity date as of the Cut-off Date. For
purposes of the Treasury regulations under Code sections 860A through 860G, the
latest possible maturity date of each Regular Interest issued by REMIC I, REMIC
II, REMIC III, REMIC IV, REMIC V and REMIC VI shall be the Latest Possible
Maturity Date.

         LIBOR BUSINESS DAY: Shall mean a day on which banks are open for
dealing in foreign currency and exchange in London and New York City.

         LIQUIDATED LOAN: With respect to any Distribution Date, a defaulted
Mortgage Loan that has been liquidated through deed-in-lieu of foreclosure,
foreclosure sale, trustee's sale or other realization as provided by applicable
law governing the real property subject to the related Mortgage and any security
agreements and as to which the Master Servicer has made a Final Recovery
Determination with respect thereto.

         LIQUIDATION PROCEEDS: Amounts, other than Insurance Proceeds, received
in connection with the partial or complete liquidation of a Mortgage Loan,
whether through trustee's sale, foreclosure sale or otherwise, or in connection
with any condemnation or partial release of a Mortgaged Property and any other
proceeds received with respect to an REO Property, less the sum of related
unreimbursed Advances, Servicing Fees and Servicing Advances and all expenses of
liquidation, including property protection expenses and foreclosure and sale
costs, including court and reasonable attorneys fees.

         LOAN-TO-VALUE RATIO: The fraction, expressed as a percentage, the
numerator of which is the original principal balance of the related Mortgage
Loan and the denominator of which is the Appraised Value of the related
Mortgaged Property.

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

         LOAN GROUP I: The Mortgage Loans included as such on the Mortgage Loan
Schedule.

         LOAN GROUP II: The Mortgage Loans included as such on the Mortgage Loan
Schedule.

         LOAN GROUP II: The Mortgage Loans included as such on the Mortgage Loan
Schedule.

         LOSS ALLOCATION LIMITATION: The meaning specified in Section 5.05(b)
hereof.

         LPMI FEE: The fee payable to the insurer for each Mortgage Loan subject
to an LPMI Policy as set forth in such LPMI Policy.

         LPMI POLICY: A policy of mortgage guaranty insurance issued by an
insurer meeting the requirements of Fannie Mae and Freddie Mac in which the
Master Servicer or the related subservicer of the related Mortgage Loan is
responsible for the payment of the LPMI Fee thereunder from collections on the
related Mortgage Loan.

                                       25
<PAGE>

         MAJORITY CLASS CE CERTIFICATEHOLDER: The Holder of a 50.01% or greater
Percentage Interest in the Class CE Certificates.

         MARKER RATE: With respect to the Class CE Interest and any Distribution
Date, a per annum rate equal to two (2) times the weighted average of the
Uncertificated REMIC II Pass-Through Rates for the REMIC II Regular Interests
(other than REMIC II Regular Interests AA, 1A, 1B, 2A, 2B, 3A, 3B, XX, IO, and
P), with the rate on each such REMIC II Regular Interest (other than REMIC II
Regular Interest ZZ) subject to a cap equal to the lesser of (i) the One-Month
LIBOR Pass-Through Rate for the Corresponding Certificate and (ii) the Net Rate
Cap for the REMIC III Regular Interest the ownership of which is represented by
the Corresponding Certificate for the purpose of this calculation for such
Distribution Date, and with the rate on REMIC II Regular Interest ZZ subject to
a cap of zero for the purpose of this calculation.

         MASTER SERVICER: EMC Mortgage Corporation, in its capacity as master
servicer, and its successors and assigns.

         MASTER SERVICER CERTIFICATION: A written certification covering
servicing of the Mortgage Loans by the Master Servicer 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) the February 21, 2003 Statement by the Staff
of the Division of Corporation Finance of the Securities and Exchange Commission
Regarding Compliance by Asset-Backed Issuers with Exchange Act Rules 13a-14 and
15d-14, 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 Statement referred to in
clause (ii) is modified or superceded by any subsequent statement, rule or
regulation of the Securities and Exchange 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 Master Servicer Certification shall be as agreed to by the
Master Servicer, the Depositor and the Seller following a negotiation in good
faith to determine how to comply with any such new requirements.

         MAXIMUM MORTGAGE RATE: With respect to each Adjustable Rate Mortgage
Loan, the percentage set forth in the related Mortgage Note as the maximum
Mortgage Rate thereunder.

         MAXIMUM UNCERTIFICATED ACCRUED INTEREST DEFERRAL AMOUNT: With respect
to any Distribution Date, the excess of (i) accrued interest at the
Uncertificated REMIC II Pass-Through Rate applicable to REMIC II Regular
Interest ZZ for such Distribution Date on a balance equal to the Uncertificated
Principal Balance of REMIC II Regular Interest ZZ minus the REMIC II
Overcollateralized Amount, in each case for such Distribution Date, over (ii)
the aggregate amount of Uncertificated Accrued Interest for such Distribution
Date on the REMIC II Regular Interests (other than REMIC II Regular Interests
AA, ZZ, 1A, 1B, 2A, 2B, 3A, 3B, XX and P), with the rate on each such REMIC II
Regular Interest subject to a cap equal to the lesser of (x) the One-Month LIBOR
Pass-Through Rate for the Corresponding Certificate and (y) the Net

                                       26
<PAGE>

Rate Cap for the REMIC III Regular Interest the ownership of which is
represented by the Corresponding Certificate for the purpose of this calculation
for such Distribution Date.

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

         MERS(R) SYSTEM: The system of recording transfers of Mortgages
electronically maintained by MERS.

         MIN: The Mortgage Identification Number for Mortgage Loans registered
with MERS on the MERS(R) System.

         MINIMUM MORTGAGE RATE: With respect to each Adjustable Rate Mortgage
Loan, the percentage set forth in the related Mortgage Note as the minimum
Mortgage Rate thereunder.

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

         MONTHLY STATEMENT: The statement delivered to the Certificateholders
pursuant to Section 5.06.

         MOODY'S: Moody's Investors Service, Inc., and any successor thereto.

         MORTGAGE: The mortgage, deed of trust or other instrument creating a
first or second lien on or first or second priority ownership interest in an
estate in fee simple in real 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 delivered
to the Custodian to be added to the Mortgage File pursuant to this Agreement and
the Custodial Agreement.

         MORTGAGE LOANS: Such of the Mortgage Loans transferred and assigned to
the Trustee pursuant to the provisions hereof, as from time to time are held as
a part of the Trust Fund (including any REO Property), the mortgage loans so
held being identified in the Mortgage Loan Schedule, notwithstanding foreclosure
or other acquisition of title of the related Mortgaged Property.

         MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement,
dated as of February 28, 2005, between the Seller, as seller and the Depositor,
as purchaser, in the form attached hereto as Exhibit L.

         MORTGAGE LOAN PURCHASE PRICE: The price, calculated as set forth in
Section 10.01, to be paid in connection with the repurchase of the Mortgage
Loans pursuant to Section 10.01.

         MORTGAGE LOAN SCHEDULE: The list of Mortgage Loans (as from time to
time amended by the Seller or the Master Servicer to reflect the deletion of
Deleted Mortgage Loans and the

                                       27
<PAGE>

addition of Replacement Mortgage Loans pursuant to the provisions of this
Agreement) transferred to the Trustee as part of the Trust Fund and from time to
time subject to this Agreement, the initial Mortgage Loan Schedule being
attached hereto as Exhibit B, setting forth the following information with
respect to each Mortgage Loan:

                           (i) the Mortgage Loan identifying number;

                           (ii) the current gross mortgage rate;

                           (iii) the Servicing Fee Rate;

                           (iv) the master servicing fee rate, if applicable;

                           (v) the LPMI Fee, if applicable;

                           (vi) the Trustee Fee Rate;

                           (vii) the current net mortgage rate;

                           (viii) the maturity date;

                           (ix) the original principal balance;

                           (x) the current principal balance;

                           (xi) the stated original term to maturity;

                           (xii) the stated remaining term to maturity;

                           (xiii) the property type;

                           (xiv) the MIN with respect to each MOM Loan;

                           (xv) with respect to each Adjustable Rate Mortgage
                  Loan, the Minimum Mortgage Rate;

                           (xvi) with respect to each Adjustable Rate Mortgage
                  Loan, the Maximum Mortgage Rate;

                           (xvii) with respect to each Adjustable Rate Mortgage
                  Loan, the Gross Margin;

                           (xviii) with respect to each Adjustable Rate Mortgage
                  Loan, the next Adjustment Date;

                           (xix) with respect to each Adjustable Rate Mortgage
                  Loan, the Periodic Rate Cap;

                                       28
<PAGE>

                           (xx) the Loan Group; and

                           (xxi) a code indicating whether such Mortgage Loan is
                  a first lien Mortgage Loan or a second lien Mortgage Loan.

         Such schedule shall also set forth the aggregate Cut-off Date Principal
Balance for all of the Mortgage Loans.

         MORTGAGE NOTE: The original executed note or other evidence of
indebtedness of a Mortgagor under a Mortgage Loan.

         MORTGAGE RATE: With respect to each fixed rate Mortgage Loan, the rate
set forth in the related Mortgage Note. With respect to each Adjustable Rate
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, which rate (A) as of any date of determination until the first Adjustment
Date following the Cut-off Date shall be the rate set forth in the Mortgage Loan
Schedule as the Mortgage Rate in effect immediately following the Cut-off Date
and (B) as of any date of determination thereafter shall be the rate as adjusted
on the most recent Adjustment Date, to equal the sum, rounded to the next
highest or nearest 0.125% (as provided in the Mortgage Note), of the Index,
determined as set forth in the related Mortgage Note, plus the related Gross
Margin subject to the limitations set forth in the related Mortgage Note. With
respect to each Mortgage Loan that becomes an REO Property, as of any date of
determination, the annual rate determined in accordance with the immediately
preceding sentence as of the date such Mortgage Loan became an REO Property.

         MORTGAGED PROPERTY:  The underlying property securing a Mortgage Loan.

         MORTGAGOR:  The obligors on a Mortgage Note.

         NET MORTGAGE RATE: As to each Mortgage Loan, and at any time, the per
annum rate equal to the Mortgage Rate less the sum of (i) the Servicing Fee
Rate, (ii) the Trustee Fee Rate and (iii) the rate at which the LPMI Fee is
calculated, if any.

         NET RATE CAP: With respect to any Distribution Date and the Class
I-A-1, Class I-A-2 and Class I-A-3 Certificates, the excess of (A) a rate per
annum equal to the product of (x) the weighted average of the Net Mortgage Rates
on the then outstanding Mortgage Loans in Loan Group I, weighted based on the
Stated Principal Balances of such Mortgage Loans as of the first day of the
calendar month preceding the month in which the Distribution Date occurs and (y)
a fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period, over (B) the sum of
(1) an amount, expressed as a per annum rate, equal to the Net Swap Payment
payable to the Swap Provider on such Distribution Date, divided by the aggregate
outstanding Stated Principal Balance of the Mortgage Loans as of the first day
of the calendar month

                                       29
<PAGE>

preceding the month in which the Distribution Date occurs, multiplied by 12, and
(2) an amount equal to the Swap Termination Payment not due to a Swap Provider
Trigger Event payable to the Swap Provider, divided by the aggregate outstanding
Stated Principal Balance of the Mortgage Loans as of the first day of the
calendar month preceding the month in which the Distribution Date occurs. With
respect to any Distribution Date and the REMIC III Regular Interests the
ownership of which is represented by the Class I-A-1, Class I-A-2 and Class
I-A-3 Certificates, a per annum rate equal to the weighted average (adjusted for
the actual number of days elapsed in the related Accrual Period) of the
Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 1B,
weighted on the basis of the Uncertificated Principal Balance of such REMIC II
Regular Interest immediately prior to such Distribution Date.

         With respect to any Distribution Date and the Class II-A-1 Certificates
and Class II-A-2 Certificates, the excess of (A) a rate per annum equal to the
product of (x) the weighted average of the Net Mortgage Rates on the then
outstanding Mortgage Loans in Loan Group II, weighted based on the Stated
Principal Balances of such Mortgage Loans as of the first day of the calendar
month preceding the month in which the Distribution Date occurs and (y) a
fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period, over (B) the sum of
(1) an amount, expressed as a per annum rate, equal to the Net Swap Payment
payable to the Swap Provider on such Distribution Date, divided by the aggregate
outstanding Stated Principal Balance of the Mortgage Loans as of the first day
of the calendar month preceding the month in which the Distribution Date occurs,
multiplied by 12, and (2) an amount equal to the Swap Termination Payment not
due to a Swap Provider Trigger Event payable to the Swap Provider, divided by
the aggregate outstanding Stated Principal Balance of the Mortgage Loans as of
the first day of the calendar month preceding the month in which the
Distribution Date occurs. With respect to any Distribution Date and the REMIC
III Regular Interests the ownership of which is represented by the Class II-A-1
Certificates and Class II-A-2 Certificates, the weighted average (adjusted for
the actual number of days elapsed in the related Accrual Period) of the
Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 2B,
weighted on the basis of the Uncertificated Principal Balance of such REMIC II
Regular Interest immediately prior to such Distribution Date.

         With respect to any Distribution Date and the Class III-A-1
Certificates and Class III-A-2 Certificates, the excess of (A) a rate per annum
equal to the product of (x) the weighted average of the Net Mortgage Rates on
the then outstanding Mortgage Loans in Loan Group III, weighted based on the
Stated Principal Balances of such Mortgage Loans as of the first day of the
calendar month preceding the month in which the Distribution Date occurs and (y)
a fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period, over (B) the sum of
(1) an amount, expressed as a per annum rate, equal to the Net Swap Payment
payable to the Swap Provider on such Distribution Date, divided by the aggregate
outstanding Stated Principal Balance of the Mortgage Loans as of the first day
of the calendar month preceding the month in which the Distribution Date occurs,
multiplied by 12, and (2) an amount equal to the Swap Termination Payment not
due to a Swap Provider Trigger Event payable to the Swap Provider, divided by
the aggregate outstanding Stated Principal Balance of the Mortgage Loans as of
the first day of the calendar month preceding the month in which the
Distribution Date occurs. With respect to any Distribution Date and the REMIC
III Regular Interests the ownership of which is represented by the Class III-A-1
Certificates and Class III-A-2 Certificates, the weighted average (adjusted for
the actual number of days elapsed in the related Accrual Period) of the
Uncertificated REMIC II Pass-Through Rate

                                       30
<PAGE>

on REMIC II Regular Interest 3B, weighted on the basis of the Uncertificated
Principal Balance of such REMIC II Regular Interest immediately prior to such
Distribution Date.

         With respect to any Distribution Date and the Class M Certificates, the
excess of (A) a rate per annum equal to the product of (x) the weighted average
of the weighted average of the Net Mortgage Rates on the then outstanding
Mortgage Loans in each Loan Group, weighted in proportion to the results of
subtracting from the aggregate Stated Principal Balance of each such Loan Group
as of the first day of the calendar month preceding the month in which the
Distribution Date occurs, the aggregate Certificate Principal Balance of the
related Class or Classes of Senior Certificates and (y) a fraction, the
numerator of which is 30 and the denominator of which is the actual number of
days elapsed in the related Accrual Period, over (B) the sum of (1) an amount,
expressed as a per annum rate, equal to the Net Swap Payment payable to the Swap
Provider on such Distribution Date, divided by the aggregate outstanding Stated
Principal Balance of the Mortgage Loans as of the first day of the calendar
month preceding the month in which the Distribution Date occurs, multiplied by
12, and (2) an amount equal to the Swap Termination Payment not due to a Swap
Provider Trigger Event payable to the Swap Provider, divided by the aggregate
outstanding Stated Principal Balance of the Mortgage Loans as of the first day
of the calendar month preceding the month in which the Distribution Date occurs.
With respect to any Distribution Date and the REMIC III Regular Interests the
ownership of which is represented by the Class M Certificates, a per annum rate
equal to the weighted average (adjusted for the actual number of days elapsed in
the related Accrual Period) of the Uncertificated REMIC II Pass-Through Rates on
(a) REMIC II Regular Interest 1A, subject to a cap and a floor equal to the
Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 1B, (b)
REMIC II Regular Interest 2A, subject to a cap and a floor equal to the
Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 2B and
(c) REMIC II Regular Interest 3A, subject to a cap and a floor equal to the
Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 3B, in
each case as determined for such Distribution Date, weighted on the basis of the
Uncertificated Principal Balance of each such REMIC II Regular Interest
immediately prior to such Distribution Date.

         NET SWAP PAYMENT: With respect to each Distribution Date, the net
payment required to be made pursuant to the terms of the Swap Agreement by
either the Swap Provider or the Swap Administrator, which net payment shall not
take into account any Swap Termination Payment.

         NON-BOOK-ENTRY CERTIFICATE: Any Certificate other than a Book-Entry
Certificate.

         NONRECOVERABLE ADVANCE: Any portion of an Advance previously made or
proposed to be made by the Master Servicer pursuant to this Agreement, that, in
the good faith judgment of the Master Servicer, will not or, in the case of a
proposed advance, would not, be ultimately recoverable by it from the related
Mortgagor, related Liquidation Proceeds, Insurance Proceeds or otherwise.

         NOTIONAL AMOUNT: With respect to each Distribution Date and the Swap
Agreement, the notional amount for the related calculation period as set forth
in the related schedule set forth in Exhibit M.

                                       31
<PAGE>

         OFFICER'S CERTIFICATE: A certificate (i) signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a Vice President (however
denominated), an Assistant Vice President, the Treasurer, the Secretary, or one
of the assistant treasurers or assistant secretaries of the Depositor or the
Master Servicer (or any other officer customarily performing functions similar
to those performed by any of the above designated officers and also to whom,
with respect to a particular matter, such matter is referred because of such
officer's knowledge of and familiarity with a particular subject) or (ii), if
provided for in this Agreement, signed by a Servicing Officer, as the case may
be, and delivered to the Depositor, the Seller and/or the Trustee, as the case
may be, as required by this Agreement.

         ONE-MONTH LIBOR: With respect to any Accrual Period, the rate
determined by the Trustee on the related Interest Determination Date on the
basis of the rate for U.S. dollar deposits for one month that appears on
Telerate Screen Page 3750 as of 11:00 a.m. (London time) on such Interest
Determination Date; provided that the parties hereto acknowledge that One-Month
LIBOR for the first Accrual Period shall equal [2.65]% per annum. If such rate
does not appear on such page (or such other page as may replace that page on
that service, or if such service is no longer offered, such other service for
displaying One-Month LIBOR or comparable rates as may be reasonably selected by
the Trustee), One-Month LIBOR for the applicable Accrual Period will be the
Reference Bank Rate. If no such quotations can be obtained by the Trustee and no
Reference Bank Rate is available, One-Month LIBOR will be One-Month LIBOR
applicable to the preceding Accrual Period. The establishment of One-Month LIBOR
on each Interest Determination Date by the Trustee and the Trustee's calculation
of the rate of interest applicable to the Class A Certificates and Class M
Certificates for the related Accrual Period shall, in the absence of manifest
error, be final and binding.

         ONE-MONTH LIBOR PASS-THROUGH RATE: With respect to the Class I-A-1
Certificates and, for purposes of the definition of "Marker Rate" and "Maximum
Uncertificated Accrued Interest Deferral Amount", REMIC II Regular Interest
I-A-1, a per annum rate equal to One-Month LIBOR plus the related Certificate
Margin.

         With respect to the Class I-A-2 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest I-A-2, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class I-A-3 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest I-A-3, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class II-A-1 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest II-A-1, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class II-A-2 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II

                                       32
<PAGE>

Regular Interest II-A-2, a per annum rate equal to One-Month LIBOR plus the
related Certificate Margin.

         With respect to the Class III-A-1 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest III-A-1, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class III-A-2 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest III-A-2, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class M-1 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest M-1, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class M-2 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest M-2, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class M-3 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest M-3, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class M-4 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest M-4, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class M-5 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest M-5, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class M-6 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest M-6, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class M-7 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest M-7, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         With respect to the Class M-8 Certificates and, for purposes of the
definition of "Marker Rate" and "Maximum Uncertificated Accrued Interest
Deferral Amount", REMIC II Regular Interest M-8, a per annum rate equal to
One-Month LIBOR plus the related Certificate Margin.

         OPINION OF COUNSEL: A written opinion of counsel, who may be counsel
for the Seller, the Depositor or the Master Servicer, reasonably acceptable to
each addressee of such opinion;

                                       33
<PAGE>

provided that with respect to Section 2.05, 7.05, 7.07 or 11.01, or the
interpretation or application of the REMIC Provisions, such counsel must (i) in
fact be independent of the Seller, Depositor and the Master Servicer, (ii) not
have any direct financial interest in the Seller, the Depositor or the Master
Servicer or in any affiliate of either, and (iii) not be connected with the
Seller, the Depositor or the Master Servicer as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions.

         OPTIONAL TERMINATION: The termination of the Trust Fund created
hereunder as a result of the purchase of all of the Mortgage Loans and any REO
Property pursuant to the last sentence of Section 10.01 hereof.

         OPTIONAL TERMINATION DATE: The Distribution Date on which the Stated
Principal Balance of all of the Mortgage Loans is equal to or less than 10% of
the Stated Principal Balance of all of the Mortgage Loans as of the Cut-off
Date.

         ORIGINAL VALUE: The value of the property underlying a Mortgage Loan
based, in the case of the purchase of the underlying Mortgaged Property, on the
lower of an appraisal or the sales price of such property or, in the case of a
refinancing, on an appraisal.

         OTS: The Office of Thrift Supervision.

         OUTSTANDING: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except:

         (a) Certificates theretofore canceled by the Trustee or delivered to
the Trustee for cancellation; and

         (b) Certificates in exchange for which or in lieu of which other
Certificates have been executed and delivered by the Trustee pursuant to this
Agreement.

         OUTSTANDING MORTGAGE LOAN: As of any date of determination, a Mortgage
Loan with a Stated Principal Balance greater than zero that was not the subject
of a Principal Prepayment in full, and that did not become a Liquidated Loan,
prior to the end of the related Prepayment Period.

         OVERCOLLATERALIZATION AMOUNT: With respect to any Distribution Date,
the excess, if any, of the aggregate Stated Principal Balances of the Mortgage
Loans as of the last day of the related Due Period (including any reduction due
to Realized Losses) over the Certificate Principal Balances of the Certificates
on such Distribution Date (after taking into account the payment of principal
other than any Extra Principal Distribution Amount on such Certificates).

         OVERCOLLATERALIZATION RELEASE AMOUNT: With respect to any Distribution
Date, the lesser of (x) the Principal Remittance Amount for such Distribution
Date and (y) the excess, if any, of (i) the Overcollateralization Amount for
such Distribution Date (assuming that 100% of the Principal Remittance Amount is
applied as a principal payment on such Distribution Date) over (ii) the
Overcollateralization Target Amount for such Distribution Date (with the amount

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<PAGE>

pursuant to clause (y) deemed to be $0 if the Overcollateralization Amount is
less than or equal to the Overcollateralization Target Amount on that
Distribution Date).

         OVERCOLLATERALIZATION TARGET AMOUNT: With respect to any Distribution
Date (a) prior to the Stepdown Date, 2.00% of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date, (b) on or after the
Stepdown Date and if a Trigger Event is not in effect, the greater of (i) the
lesser of (1) 2.00% of the aggregate Stated Principal Balance of the Mortgage
Loans as of the Cut-off Date and (2) 4.00% of the then current aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period and (ii) $3,244,247 or (c) on or after the Stepdown Date and if a Trigger
Event is in effect, the Overcollateralization Target Amount for the immediately
preceding Distribution Date.

         OWNERSHIP INTEREST: As to any Certificate, any ownership interest in
such Certificate including any interest in such Certificate as the Holder
thereof and any other interest therein, whether direct or indirect, legal or
beneficial.

         PASS-THROUGH RATE: With respect to the Class A Certificates and Class M
Certificates and any Distribution Date, a rate per annum equal to the lesser of
(i) the related One-Month LIBOR Pass-Through Rate for such Distribution Date and
(ii) the related Net Rate Cap for such Distribution Date. The initial
Pass-Through Rates for the Class I-A-1, Class I-A-2, Class I-A-3, Class II-A-1,
Class II-A-2, Class III-A-1, Class III-A-2, Class M-1, Class M-2, Class M-3,
Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Certificates will be
2.760%, 2.890%, 3.000%, 2.900%, 2.960%, 2.890%, 2.940%, 3.150%, 3.400%, 3.440%,
3.850%, 3.950%, 4.750%, 5.650% and 5.650% per annum, respectively.

         With respect to the Class CE Interest and any Distribution Date, a rate
per annum equal to the percentage equivalent of a fraction, the numerator of
which is the sum of the amount determined for each REMIC II Regular Interest
(other than REMIC II Regular Interests 1A, 1B, 2A, 2B, 3A, 3B, XX, IO and P)
equal to (x) the excess of the Uncertificated REMIC II Pass-Through Rate for
such REMIC II Regular Interest over the Marker Rate, applied to (y) a notional
amount equal to the Uncertificated Principal Balance of such REMIC II Regular
Interest, and the denominator of which is the aggregate Uncertificated Principal
Balances of such REMIC II Regular Interests.

         With respect to the Class CE Certificates: the Class CE Certificates
shall not have a Pass-Through Rate, but Current Interest for such Certificates
and each Distribution Date shall be an amount equal to 100% of the amounts
distributable to the Class CE Interest for such Distribution Date.

         With respect to the Class P Certificates, 0.00% per annum.

         With respect to REMIC VI Regular Interest IO: REMIC VI Regular Interest
IO shall not have a Pass-Through Rate, but Current Interest for such regular
interest and each Distribution Date shall be an amount equal to 100% of the
amounts distributable to the Class IO Interest for such Distribution Date.

                                       35
<PAGE>

         PERCENTAGE INTEREST: With respect to any Certificate of a specified
Class, the Percentage Interest set forth on the face thereof or the percentage
obtained by dividing the Denomination of such Certificate by the aggregate of
the Denominations of all Certificates of such Class.

         PERIODIC RATE CAP: With respect to each Adjustable Rate Mortgage Loan
and any Adjustment Date therefor, the fixed percentage set forth in the related
Mortgage Note, which is the maximum amount by which the Mortgage Rate for such
Mortgage Loan may increase or decrease (without regard to the Maximum Mortgage
Rate or the Minimum Mortgage Rate) on such Adjustment Date from the Mortgage
Rate in effect immediately prior to such Adjustment Date.

         PERMITTED INVESTMENTS: At any time, any one or more of the following
obligations and securities:

                           (i) obligations of the United States or any agency
                  thereof, provided such obligations are backed by the full
                  faith and credit of the United States;

                           (ii) general obligations of or obligations guaranteed
                  by any state of the United States or the District of Columbia
                  receiving the highest long-term debt rating of each Rating
                  Agency, or such lower rating as will not result in the
                  downgrading or withdrawal of the ratings then assigned to the
                  Certificates by each Rating Agency, as evidenced in writing;

                           (iii) commercial or finance company paper which is
                  then receiving the highest commercial or finance company paper
                  rating of each Rating Agency, or such lower rating as will not
                  result in the downgrading or withdrawal of the ratings then
                  assigned to the Certificates by each Rating Agency, as
                  evidenced in writing;

                           (iv) certificates of deposit, demand or time
                  deposits, or bankers' acceptances issued by any depository
                  institution or trust company incorporated under the laws of
                  the United States or of any state thereof and subject to
                  supervision and examination by federal and/or state banking
                  authorities (including the Trustee in its commercial banking
                  capacity), provided that the commercial paper and/or long term
                  unsecured debt obligations of such depository institution or
                  trust company are then rated one of the two highest long-term
                  and the highest short-term ratings of each such Rating Agency
                  for such securities, or such lower ratings as will not result
                  in the downgrading or withdrawal of the rating then assigned
                  to the Certificates by any Rating Agency, as evidenced in
                  writing;

                           (v) guaranteed reinvestment agreements issued by any
                  bank, insurance company or other corporation containing, at
                  the time of the issuance of such agreements, such terms and
                  conditions as will not result in the downgrading or withdrawal
                  of the rating then assigned to the Certificates by any such
                  Rating Agency, as evidenced in writing;

                                       36
<PAGE>

                           (vi) repurchase obligations with respect to any
                  security described in clauses (i) and (ii) above, in either
                  case entered into with a depository institution or trust
                  company (acting as principal) described in clause (v) above;

                           (vii) securities (other than stripped bonds, stripped
                  coupons or instruments sold at a purchase price in excess of
                  115% of the face amount thereof) bearing interest or sold at a
                  discount issued by any corporation incorporated under the laws
                  of the United States or any state thereof which, at the time
                  of such investment, have one of the two highest short term
                  ratings of each Rating Agency (except if the Rating Agency is
                  Moody's, such rating shall be the highest commercial paper
                  rating of Moody's for any such securities), or such lower
                  rating as will not result in the downgrading or withdrawal of
                  the rating then assigned to the Certificates by any Rating
                  Agency, as evidenced by a signed writing delivered by each
                  Rating Agency;

                           (viii) interests in any money market fund (including
                  any such fund managed or advised by the Trustee or any
                  affiliate thereof) which at the date of acquisition of the
                  interests in such fund and throughout the time such interests
                  are held in such fund has the highest applicable short term
                  rating by each Rating Agency or such lower rating as will not
                  result in the downgrading or withdrawal of the ratings then
                  assigned to the Certificates by each Rating Agency, as
                  evidenced in writing;

                           (ix) short term investment funds sponsored by any
                  trust company or banking association incorporated under the
                  laws of the United States or any state thereof (including any
                  such fund managed or advised by the Trustee or the Master
                  Servicer or any affiliate thereof) which on the date of
                  acquisition has been rated by each Rating Agency in their
                  respective highest applicable rating category or such lower
                  rating as will not result in the downgrading or withdrawal of
                  the ratings then assigned to the Certificates by each Rating
                  Agency, as evidenced in writing; and

                           (x) such other investments having a specified stated
                  maturity and bearing interest or sold at a discount acceptable
                  to each Rating Agency and as will not result in the
                  downgrading or withdrawal of the rating then assigned to the
                  Certificates by any Rating Agency, as evidenced by a signed
                  writing delivered by each Rating Agency;

provided, that no such instrument shall be a Permitted Investment if such
instrument (i) evidences the right to receive interest only payments with
respect to the obligations underlying such instrument, (ii) is purchased at a
premium or (iii) is purchased at a deep discount; provided further that no such
instrument shall be a Permitted Investment (A) if such instrument evidences
principal and interest payments derived from obligations underlying such
instrument and the interest payments with respect to such instrument provide a
yield to maturity of greater than 120% of the yield to maturity at par of such
underlying obligations, or (B) if it may be redeemed at a price below the
purchase price (the foregoing clause (B) not to apply to investments in units

                                       37
<PAGE>

of money market funds pursuant to clause (viii) above); provided further that no
amount beneficially owned by any REMIC may be invested in investments (other
than money market funds) treated as equity interests for federal income tax
purposes, unless the Master Servicer shall receive an Opinion of Counsel, at the
expense of the Master Servicer, to the effect that such investment will not
adversely affect the status of any such REMIC as a REMIC under the Code or
result in imposition of a tax on any such REMIC. Permitted Investments that are
subject to prepayment or call may not be purchased at a price in excess of par.

         PERMITTED TRANSFEREE: Any person other than (i) the United States, any
State or political subdivision thereof, any possession of the United States or
any agency or instrumentality of any of the foregoing, (ii) a foreign
government, International Organization or any agency or instrumentality of
either of the foregoing, (iii) an organization (except certain farmers'
cooperatives described in section 521 of the Code) that is exempt from tax
imposed by Chapter 1 of the Code (including the tax imposed by section 511 of
the Code on unrelated business taxable income) on any excess inclusions (as
defined in section 860E(c)(1) of the Code) with respect to any Residual
Certificate, (iv) rural electric and telephone cooperatives described in section
1381(a)(2)(C) of the Code, (v) a Person that is not a citizen or resident of the
United States, a corporation, partnership (other than a partnership that has any
direct or indirect foreign partners) or other entity (treated as a corporation
or a partnership for federal income tax purposes), created or organized in or
under the laws of the United States, any state thereof or the District of
Columbia, an estate whose income from sources without the United States is
includible in gross income for United States federal income tax purposes
regardless of its connection with the conduct of a trade or business within the
United States, or a trust if a court within the United States is able to
exercise primary supervision over the administration of the trust and one or
more United States persons have authority to control all substantial decisions
of the trustor and (vi) any other Person so designated by the Trustee based upon
an Opinion of Counsel addressed to the Trustee (which shall not be an expense of
the Trustee) that states that the Transfer of an Ownership Interest in a
Residual Certificate to such Person may cause REMIC I, REMIC II, REMIC III,
REMIC IV, REMIC V or REMIC VI to fail to qualify as a REMIC at any time that any
Certificates are Outstanding. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in section 7701
of the Code or successor provisions. A corporation will not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof for these purposes if all of its activities are subject to tax and, with
the exception of Freddie Mac, a majority of its board of directors is not
selected by such government unit.

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

         PREPAYMENT ASSUMPTION: The applicable rate of prepayment as described
in the Prospectus Supplement.

         PREPAYMENT CHARGE: Any prepayment premium, penalty or charge payable by
a Mortgagor in connection with any Principal Prepayment on a Mortgage Loan
pursuant to the terms of the related Mortgage Note.

                                       38
<PAGE>

         PREPAYMENT INTEREST SHORTFALL: With respect to any Distribution Date,
for each Mortgage Loan that was the subject of a partial Principal Prepayment, a
Principal Prepayment in full, or that became a Liquidated Loan during the
related Prepayment Period, (other than a Principal Prepayment in full resulting
from the purchase of a Mortgage Loan pursuant to Section 2.02, 2.03, 3.18 or
10.01 hereof), the amount, if any, by which (i) one month's interest at the
applicable Net Mortgage Rate on the Stated Principal Balance of such Mortgage
Loan immediately prior to such prepayment (or liquidation) or in the case of a
partial Principal Prepayment on the amount of such prepayment (or liquidation
proceeds) exceeds (ii) the amount of interest paid or collected in connection
with such Principal Prepayment or such liquidation proceeds less the sum of (a)
the Trustee Fee, (b) the Servicing Fee and (c) the LPMI Fee, if any.

         PREPAYMENT PERIOD: As to any Distribution Date, the period commencing
on the 16th day of the month prior to the month in which the related
Distribution Date occurs and ending on the 15th day of the month in which such
Distribution Date occurs.

         PRIMARY MORTGAGE INSURANCE POLICY: Any primary mortgage guaranty
insurance policy issued in connection with a Mortgage Loan which provides
compensation to a Mortgage Note holder in the event of default by the obligor
under such Mortgage Note or the related security instrument, if any or any
replacement policy therefor through the related Accrual Period for such Class
relating to a Distribution Date.

         PRINCIPAL DISTRIBUTION AMOUNT: With respect to each Distribution Date,
an amount equal to (x) the Principal Funds for such Distribution Date plus (y)
any Extra Principal Distribution Amount for such Distribution Date, less (z) any
Overcollateralization Release Amount.

         PRINCIPAL FUNDS: With respect to each Loan Group and any Distribution
Date, (i) the sum, without duplication, of (a) all scheduled principal collected
during the related Due Period, (b) all Advances relating to principal made on or
before the Distribution Account Deposit Date, (c) Principal Prepayments
exclusive of prepayment charges or penalties collected during the related
Prepayment Period, (d) the Stated Principal Balance of each Mortgage Loan in the
related Loan Group that was repurchased by the Seller pursuant to Sections 2.02
and 2.03 or by EMC pursuant to Section 3.18, (e) the aggregate of all
Substitution Adjustment Amounts for the related Determination Date in connection
with the substitution of Mortgage Loans pursuant to Section 2.03(c), (f) all
Liquidation Proceeds and Subsequent Recoveries collected during the related
Prepayment Period (to the extent such Liquidation Proceeds and Subsequent
Recoveries relate to principal), in each case to the extent remitted by the
Master Servicer to the Distribution Account pursuant to this Agreement and (g)
amounts in respect of principal paid by the Majority Class CE Certificateholder
or the Master Servicer, as applicable, pursuant to Section 10.01, minus (ii) all
amounts required to be reimbursed pursuant to Sections 4.02 and 4.05 or as
otherwise set forth in this Agreement and (iii) any Net Swap Payments or Swap
Termination Payments (not due to a Swap Provider Trigger Event) owed to the Swap
Administrator for payment to the Swap Provider to the extent not paid from
Interest Funds.

         PRINCIPAL PREPAYMENT: Any Mortgagor payment or other recovery of (or
proceeds with respect to) principal on a Mortgage Loan (including loans
purchased or repurchased under Sections 2.02, 2.03, 3.18 and 10.01 hereof) that
is received in advance of its scheduled Due Date

                                       39
<PAGE>

and is not accompanied by an amount as to interest representing scheduled
interest due on any date or dates in any month or months subsequent to the month
of prepayment. Partial Principal Prepayments shall be applied by the Master
Servicer, as appropriate, in accordance with the terms of the related Mortgage
Note.

         PRINCIPAL REMITTANCE AMOUNT: With respect to each Distribution Date,
the sum of the amounts listed in clauses (a) through (f) of the definition of
Principal Funds.

         PRIVATE CERTIFICATES: Any of the Class M-7, Class M-8, Class P, Class
CE and Residual Certificates.

         PROSPECTUS SUPPLEMENT: The Prospectus Supplement dated February 24,
2005 relating to the public offering of the Class I-A-1, Class I-A-2, Class
I-A-3, Class II-A-1, Class II-A-2, Class III-A-1, Class III-A-2, Class M-1,
Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6 Certificates.

         PROTECTED ACCOUNT: The separate Eligible Account established and
maintained by the Master Servicer with respect to the Mortgage Loans and REO
Property in accordance with Section 4.01 hereof.

         PUD:  A Planned Unit Development.

         PURCHASE PRICE: With respect to any Mortgage Loan (x) required to be
repurchased by the Seller pursuant to Section 2.02 or 2.03 hereof or (y) that
EMC has a right to purchase pursuant to Section 3.18 hereof, an amount equal to
the sum of (i) 100% of the outstanding principal balance of the Mortgage Loan as
of the date of such purchase (or if the related Mortgaged Property was acquired
with respect thereto, 100% of the Outstanding Principal Balance at the date of
the acquisition), plus (ii) accrued interest thereon at the applicable Mortgage
Rate through the first day of the month in which the Purchase Price is to be
distributed to Certificateholders, reduced by any portion of the Servicing Fee,
Servicing Advances and Advances payable to the purchaser of the Mortgage Loan
plus (iii) any costs and damages (if any) incurred by the Trust in connection
with any violation of such Mortgage Loan of any anti-predatory lending laws.

         QIB: A Qualified Institutional Buyer as defined in Rule 144A
promulgated under the Securities Act.

         RATING AGENCY: Each of Moody's and S&P. If any such organization or its
successor is no longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization, or other comparable Person,
designated by the Depositor, notice of which designation shall be given to the
Trustee. References herein to a given rating category of a Rating Agency shall
mean such rating category without giving effect to any modifiers.

         REALIZED LOSS: With respect to each Mortgage Loan as to which a Final
Recovery Determination has been made, an amount (not less than zero) equal to
(i) the unpaid principal balance of such Mortgage Loan as of the commencement of
the calendar month in which the Final Recovery Determination was made, plus (ii)
accrued interest from the Due Date as to which interest was last paid by the
Mortgagor through the end of the calendar month in which

                                       40
<PAGE>

such Final Recovery Determination was made, calculated in the case of each
calendar month during such period (A) at an annual rate equal to the annual rate
at which interest was then accruing on such Mortgage Loan and (B) on a principal
amount equal to the Stated Principal Balance of such Mortgage Loan as of the
close of business on the Distribution Date during such calendar month, minus
(iii) the proceeds, if any, received in respect of such Mortgage Loan during the
calendar month in which such Final Recovery Determination was made, net of
amounts that are payable therefrom to the Master Servicer pursuant to this
Agreement. In addition, to the extent the Master Servicer receives Subsequent
Recoveries with respect to any Mortgage Loan, the amount of the Realized Loss
with respect to that Mortgage Loan will be reduced to the extent such recoveries
are distributed to any Class of Certificates or applied to increase Excess
Spread on any Distribution Date.

         With respect to any REO Property as to which a Final Recovery
Determination has been made, an amount (not less than zero) equal to (i) the
unpaid principal balance of the related Mortgage Loan as of the date of
acquisition of such REO Property on behalf of REMIC I, plus (ii) accrued
interest from the Due Date as to which interest was last paid by the Mortgagor
in respect of the related Mortgage Loan through the end of the calendar month
immediately preceding the calendar month in which such REO Property was
acquired, calculated in the case of each calendar month during such period (A)
at an annual rate equal to the annual rate at which interest was then accruing
on the related Mortgage Loan and (B) on a principal amount equal to the Stated
Principal Balance of the related Mortgage Loan as of the close of business on
the Distribution Date during such calendar month, plus (iii) 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 Final Recovery Determination was made, minus (iv)
the aggregate of all unreimbursed Advances and Servicing Advances.

         With respect to each Mortgage Loan which has become the subject of a
Deficient Valuation, the difference between the principal balance of the
Mortgage Loan outstanding immediately prior to such Deficient Valuation and the
principal balance of the Mortgage Loan as reduced by the Deficient Valuation.

         With respect to each Mortgage Loan which has become the subject of a
Debt Service Reduction, the portion, if any, of the reduction in each affected
Monthly Payment attributable to a reduction in the Mortgage Rate imposed by a
court of competent jurisdiction. Each such Realized Loss shall be deemed to have
been incurred on the Due Date for each affected Monthly Payment.

         RECORD DATE: With respect to any Distribution Date and the Certificates
(other than the Class M-7, Class M-8, Class CE, Class P and Residual
Certificates), so long as such Classes of Certificates are Book-Entry
Certificates, the Business Day preceding such Distribution Date, and otherwise,
the close of business on the last Business Day of the month preceding the month
in which such Distribution Date occurs. With respect to the Class M-7, Class
M-8, Class CE, Class P and Residual Certificates, so long as such Classes of
Certificates remain non Book-Entry Certificates, the close of business on the
last Business Day of the month preceding the month in which such Distribution
Date occurs.

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<PAGE>

         REFERENCE BANKS: Shall mean leading banks selected by the Trustee and
engaged in transactions in Eurodollar deposits in the international Eurocurrency
market (i) with an established place of business in London, (ii) which have been
designated as such by the Trustee and (iii) which are not controlling,
controlled by, or under common control with, the Depositor, the Seller or the
Master Servicer.

         REFERENCE BANK RATE: With respect to any Accrual Period shall mean the
arithmetic mean, rounded upwards, if necessary, to the nearest whole multiple of
0.03125%, of the offered rates for United States dollar deposits for one month
that are quoted by the Reference Banks as of 11:00 a.m., New York City time, on
the related Interest Determination Date to prime banks in the London interbank
market for a period of one month in an amount approximately equal to the
aggregate Certificate Principal Balance of the Class A Certificates and Class M
Certificates for such Accrual Period, provided that at least two such Reference
Banks provide such rate. If fewer than two offered rates appear, the Reference
Bank Rate will be the arithmetic mean, rounded upwards, if necessary, to the
nearest whole multiple of 0.03125%, of the rates quoted by one or more major
banks in New York City, selected by the Trustee, as of 11:00 a.m., New York City
time, on such date for loans in United States dollars to leading European banks
for a period of one month in amounts approximately equal to the aggregate
Certificate Principal Balance of the Class A Certificates and Class M
Certificates for such Accrual Period.

         REGULAR CERTIFICATE: Any Certificate other than a Residual Certificate.

         REGULAR INTEREST: A "regular interest" in a REMIC within the meaning of
Section 860G(a)(1) of the Code.

         RELIEF ACT: The Servicemembers Civil Relief Act, as amended, or similar
state law.

         RELIEF ACT INTEREST SHORTFALL: With respect to any Distribution Date
and any Mortgage Loan, any reduction in the amount of interest collectible on
such Mortgage Loan for the most recently ended Due Period as a result of the
application of the Relief Act.

         REMAINING EXCESS SPREAD: With respect to any Distribution Date, the
Excess Spread less any Extra Principal Distribution Amount, in each case for
such Distribution Date.

         REMIC: A "real estate mortgage investment conduit" within the meaning
of section 860D of the Code.

         REMIC I: The segregated pool of assets described in the Preliminary
Statement and Section 5.07(a).

         REMIC REGULAR INTERESTS: the REMIC I Regular Interests and REMIC II
Regular Interests.

         REMIC I GROUP I REGULAR INTERESTS: REMIC I Regular Interest I-1-A
through REMIC I Regular Interest I-60-B as designated in the Preliminary
Statement hereto.

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<PAGE>

         REMIC I GROUP II REGULAR INTERESTS: REMIC I Regular Interest II-1-A
through REMIC I Regular Interest II-60-B as designated in the Preliminary
Statement hereto.

         REMIC I GROUP III REGULAR INTERESTS: REMIC I Regular Interest III-1-A
through REMIC I Regular Interest III-60-B as designated in the Preliminary
Statement hereto.

         REMIC I REGULAR INTEREST: Any of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
"regular interest" in REMIC I. Each REMIC I Regular Interest shall accrue
interest at the related Uncertificated REMIC I Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto. The designations for the respective REMIC I Regular Interests are set
forth in the Preliminary Statement hereto. The REMIC I Regular Interests consist
of the REMIC I Group I Regular Interests, REMIC I Group II Regular Interests,
REMIC I Group III Regular Interests and REMIC I Regular Interest P.

         REMIC II: The segregated pool of Assets described in the Preliminary
Statement and Section 5.07(a).

         REMIC II INTEREST LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount (subject to adjustment based on the actual number
of days elapsed in the respective Accrual Period) equal to (a) the product of
(i) 50% of the aggregate Stated Principal Balance of the Mortgage Loans and REO
Properties then outstanding and (ii) the Uncertificated REMIC II Pass-Through
Rate for REMIC II Regular Interest AA minus the Marker Rate, divided by (b) 12.

         REMIC II MARKER ALLOCATION PERCENTAGE: 50% of any amount payable or
loss attributable from the Mortgage Loans, which shall be allocated to REMIC II
Regular Interest AA, REMIC II Regular Interest I-A-1, REMIC II Regular Interest
I-A-2, REMIC II Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC
II Regular Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular
Interest III-A-2, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2,
REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular
Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest M-7,
REMIC II Regular Interest M-8 and REMIC II Regular Interest ZZ.

         REMIC II OVERCOLLATERALIZATION AMOUNT: With respect to any date of
determination, (i) 0.50% of the aggregate Uncertificated Principal Balances of
the REMIC II Regular Interests (other than REMIC II Regular Interest P) minus
(ii) the aggregate of the Uncertificated Principal Balances of REMIC II Regular
Interest I-A-1, REMIC II Regular Interest I-A-2, REMIC II Regular Interest
I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular Interest II-A-2, REMIC
II Regular Interest III-A-1, REMIC II Regular Interest III-A-2,REMIC II Regular
Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3,
REMIC II Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular
Interest M-6, REMIC II Regular Interest M-7 and REMIC II Regular Interest M-8,
in each case as of such date of determination.

                                       43
<PAGE>

         REMIC II PRINCIPAL LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount equal to (a) the product of (i) 50% of the
aggregate Stated Principal Balance of the Mortgage Loans and REO Properties then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate of the Uncertificated Principal Balances of REMIC II Regular Interest
I-A-1, REMIC II Regular Interest I-A-2, REMIC II Regular Interest I-A-3, REMIC
II Regular Interest II-A-1, REMIC II Regular Interest II-A-2, REMIC II Regular
Interest III-A-1, REMIC II Regular Interest III-A-2, REMIC II Regular Interest
M-1, REMIC II Regular Interest M-2, REMIC II Regular Interest M-3, REMIC II
Regular Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular Interest
M-6, REMIC II Regular Interest M-7, REMIC II Regular Interest M-8 and the
denominator of which is the aggregate of the Uncertificated Principal Balances
of REMIC II Regular Interest I-A-1, REMIC II Regular Interest I-A-2, REMIC II
Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular
Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular Interest
III-A-2, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II
Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest
M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest M-7, REMIC II
Regular Interest M-8 and REMIC II Regular Interest ZZ.

         REMIC II SUB WAC ALLOCATION PERCENTAGE: 50% of any amount payable or
loss attributable from the Mortgage Loans, which shall be allocated to REMIC II
Regular Interest 1A, REMIC II Regular Interest 1B, REMIC II Regular Interest 2A,
REMIC II Regular Interest 2B, REMIC II Regular Interest 3A, REMIC II Regular
Interest 3B and REMIC II Regular Interest XX.

         REMIC II SUBORDINATED BALANCE RATIO: The ratio among the Uncertificated
Principal Balances of each REMIC II Regular Interest ending with the designation
"A" (other than REMIC II Regular Interest AA), equal to the ratio among, with
respect to each such REMIC II Regular Interest, the excess of (x) the aggregate
Stated Principal Balance of the Mortgage Loans in Loan Group I or the Mortgage
Loans in Loan Group II or the Mortgage Loans in Loan Group III, as applicable
over (y) the current Certificate Principal Balance of the related Class A
Certificates.

         REMIC II REQUIRED OVERCOLLATERALIZATION AMOUNT: 0.50% of the
Overcollateralization Target Amount.

         REMIC II REGULAR INTEREST: Any of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
"regular interest" in REMIC II. Each REMIC II Regular Interest shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto. The designations for the respective REMIC II Regular Interests are set
forth in the Preliminary Statement hereto.

         REMIC III: The segregated pool of assets described in the Preliminary
Statement and Section 5.07(a).

                                       44
<PAGE>

         REMIC III CERTIFICATE: Any Regular Certificate (other than the Class CE
Certificates and Class P Certificates).

         REMIC III CERTIFICATEHOLDER:  The Holder of any REMIC III Certificate.

         REMIC III REGULAR INTEREST: Any Class A Certificate, Class M
Certificate, Class CE Interest, Class P Interest or Class IO Interest.

         REMIC IV: The segregated pool of assets consisting of the Class CE
Interest conveyed in trust to the Trustee, for the benefit of the Holders of the
Class CE Certificates and the Class RX Certificate (in respect of the Class R-4
Interest), with respect to which a separate REMIC election is to be made.

         REMIC IV CERTIFICATE: Any Class CE Certificate or Class RX Certificate
(in respect of the Class R-4 Interest).

         REMIC V: The segregated pool of assets consisting of the Class P
Interest conveyed in trust to the Trustee, for the benefit of the Holders of the
Class P Certificates and the Class RX Certificate (in respect of the Class R-5
Interest), with respect to which a separate REMIC election is to be made.

         REMIC V CERTIFICATE: Any Class P Certificate or Class RX Certificate
(in respect of the Class R-5 Interest).

         REMIC VI: The segregated pool of assets consisting of the Class IO
Interest conveyed in trust to the Trustee, for the benefit of the Holders of
REMIC VI Regular Interest IO and the Class RX Certificate (in respect of the
Class R-6 Interest), with respect to which a separate REMIC election is to be
made.

         REMIC VI INTERESTS: The REMIC VI Regular Interest IO and any Class RX
Certificate (in respect of the Class R-6 Interest).

         REMIC OPINION: Shall mean an Opinion of Counsel to the effect that the
proposed action will not cause any of REMIC I, REMIC II, REMIC III, REMIC IV,
REMIC V or REMIC VI to fail to qualify as a REMIC at any time that any
Certificates are outstanding.

         REMIC PROVISIONS: Provisions of the federal income tax law relating to
real estate mortgage investment conduits, which appear at sections 860A through
860G of Subchapter M of Chapter 1 of the Code, and related provisions, and
proposed, temporary and final regulations and published rulings, notices and
announcements promulgated thereunder, as the foregoing may be in effect from
time to time as well as provisions of applicable state laws.

         REMITTANCE DATE: Shall mean the Business Day immediately preceding the
Distribution Account Deposit Date.

         REO IMPUTED INTEREST: As to any REO Property, for any calendar month
during which such REO Property was at any time part of REMIC I, one month's
interest at the applicable Net

                                       45
<PAGE>

Mortgage Rate on the Stated 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 Distribution Date in such
calendar month.

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

         REPLACEMENT MORTGAGE LOAN: A Mortgage Loan or Mortgage Loans in the
aggregate substituted by the Seller for a Deleted Mortgage Loan, which must, on
the date of such substitution, as confirmed in a Request for Release, (i) have a
Stated Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of substitution, not in excess of, and not
less than 90% of, the Stated Principal Balance of the Deleted Mortgage Loan;
(ii) if the Replacement Mortgage Loan is a fixed rate Mortgage Loan, have a
fixed Mortgage Rate not less than or more than 1% per annum higher than the
Mortgage Rate of the Deleted Mortgage Loan; (iii) have the same or higher credit
quality characteristics than that of the Deleted Mortgage Loan; (iv) have a
Loan-to-Value Ratio no higher than that of the Deleted Mortgage Loan; (v) have a
remaining term to maturity no greater than (and not more than one year less
than) that of the Deleted Mortgage Loan; (vi) not permit conversion of the
Mortgage Rate from a fixed rate to a variable rate; (vii) have the same lien
priority as the Deleted Mortgage Loan; (viii) constitute the same occupancy type
as the Deleted Mortgage Loan or be owner occupied; (ix) if the Replacement
Mortgage Loan is an Adjustable Rate Mortgage Loan, have a Maximum Mortgage Rate
not less than the Maximum Mortgage Rate on the Deleted Mortgage Loan, (x) if the
Replacement Mortgage Loan is an Adjustable Rate Mortgage Loan, have a Minimum
Mortgage Rate not less than the Minimum Mortgage Rate of the Deleted Mortgage
Loan, (xi) if the Replacement Mortgage Loan is an Adjustable Rate Mortgage Loan,
have a Gross Margin equal to or greater than the Gross Margin of the Deleted
Mortgage Loan, (xii) if the Replacement Mortgage Loan is an Adjustable Rate
Mortgage Loan, have a next Adjustment Date not more than two months later than
the next Adjustment Date on the Deleted Mortgage Loan, (xiii) comply with each
representation and warranty set forth in Section 7 of the Mortgage Loan Purchase
Agreement and (xiv) the Custodian has delivered a Final Certification noting no
defects or exceptions.

         REQUEST FOR RELEASE: The Request for Release to be submitted by the
Seller or the Master Servicer to the Custodian substantially in the form of
Exhibit G. Each Request for Release furnished to the Custodian by the Seller or
the Master Servicer shall be in duplicate and shall be executed by an officer of
such Person or a Servicing Officer (or, if furnished electronically to the
Custodian, shall be deemed to have been sent and executed by an officer of such
Person or a Servicing Officer) of the Master Servicer.

         REQUIRED INSURANCE POLICY: With respect to any Mortgage Loan, any
insurance policy that is required to be maintained from time to time under this
Agreement.

         RESERVE FUND: Shall mean the separate trust account created and
maintained by the Trustee pursuant to Section 3.20 hereof.

                                       46
<PAGE>

         RESIDUAL CERTIFICATES: The Class R-1, Class R-2, Class R-3 and Class RX
Certificates (representing ownership of the Class R-4 Interest, Class R-5
Interest and Class R-6 Interest) each evidencing the sole class of "residual
interests" (within the meaning of Section 860G(a)(2) of the Code) in the related
REMIC.

         RESIDUAL INTEREST: The sole class of "residual interests" in a REMIC
within the meaning of Section 860G(a)(2) of the Code.

         RESPONSIBLE OFFICER: With respect to the Trustee, any Vice President,
any Assistant Vice President, the Secretary, any Assistant Secretary, or any
Trust Officer with specific responsibility for the transactions contemplated
hereby, any other officer customarily performing functions similar to those
performed by any of the above designated officers or other officers of the
Trustee specified by the Trustee, as to whom, with respect to a particular
matter, such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.

         S&P: Standard & Poor's, a division of The McGraw-Hill Companies, Inc.,
and any successor thereto.

         SCHEDULED PAYMENT: The scheduled monthly payment on a Mortgage Loan due
on any Due Date allocable to principal and/or interest on such Mortgage Loan.

         SECURITIES ACT: The Securities Act of 1933, as amended.

         SELLER: EMC Mortgage Corporation, a Delaware corporation, and its
successors and assigns, in its capacity as seller of the Mortgage Loans to the
Depositor.

         SENIOR CERTIFICATES: Any of the Class I-A-1, Class I-A-2, Class I-A-3,
Class II-A-1 and Class II-A-2, Class III-A-1 and Class III-A-2 Certificates.

         SERVICING ADVANCES: All customary, reasonable and necessary "out of
pocket" costs and expenses (including reasonable legal fees) incurred in the
performance by the Master Servicer of its servicing obligations hereunder,
including, but not limited to, the cost of (i) the preservation, restoration and
protection of a Mortgaged Property, (ii) any enforcement or judicial
proceedings, including foreclosures, and including any expenses incurred in
relation to any such proceedings that result from the Mortgage Loan being
registered in the MERS(R) System, (iii) the management and liquidation of any
REO Property (including, without limitation, realtor's commissions) and (iv)
compliance with any obligations under Section 3.07 hereof to cause insurance to
be maintained.

         SERVICING FEE: As to each Mortgage Loan and any Distribution Date, an
amount equal to 1/12th of the Servicing Fee Rate multiplied by the Stated
Principal Balance of such Mortgage Loan as of the last day of the related Due
Period or, in the event of any payment of interest that accompanies a Principal
Prepayment in full during the related Due Period made by the Mortgagor
immediately prior to such prepayment, interest at the Servicing Fee Rate on the
Stated Principal Balance of such Mortgage Loan for the period covered by such
payment of interest.

                                       47
<PAGE>

         SERVICING FEE RATE:  0.500% per annum.

         SERVICING MODIFICATION: With respect to any Mortgage Loan that is in
default or, in the reasonable judgment of the Master Servicer, as to which
default is reasonably foreseeable, any modification which is effected by the
Master Servicer in accordance with the terms of this Agreement which results in
any change in the outstanding Stated Principal Balance, any change in the
Mortgage Rate or any extension of the term of such Mortgage Loan.

         SERVICING OFFICER: Any officer of the Master Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
name and facsimile signature appear on a list of servicing officers furnished to
the Trustee by the Master Servicer on the Closing Date pursuant to this
Agreement, as such list may from time to time be amended.

         STARTUP DAY: The Startup Day for each REMIC formed hereunder shall be
the Closing Date.

         STATED PRINCIPAL BALANCE: With respect to any Mortgage Loan or related
REO Property and any Distribution Date, the Cut-off Date Principal Balance
thereof minus the sum of (i) the principal portion of the Scheduled Payments due
with respect to such Mortgage Loan during each Due Period ending prior to such
Distribution Date (and irrespective of any delinquency in their payment), (ii)
all Principal Prepayments with respect to such Mortgage Loan received prior to
or during the related Prepayment Period, and all Liquidation Proceeds to the
extent applied by the Master Servicer as recoveries of principal in accordance
with Section 3.09 with respect to such Mortgage Loan, that were received by the
Master Servicer as of the close of business on the last day of the Prepayment
Period related to such Distribution Date and (iii) any Realized Losses on such
Mortgage Loan incurred during the related Prepayment Period. The Stated
Principal Balance of a Liquidated Loan equals zero.

         STEPDOWN DATE: The later to occur of (a) the Distribution Date in March
2008 and (b) the first Distribution Date on which the Current Specified
Enhancement Percentage (calculated for this purpose only, prior to distributions
on the Certificates but following distributions on the Mortgage Loans for the
related Due Period) is greater than or equal to 42.20%.

         SUBORDINATED CERTIFICATES: The Class M Certificates, Class CE
Certificates and Residual Certificates.

         SUBSEQUENT RECOVERIES: As of any Distribution Date, amounts received by
the Master Servicer (net of any related expenses permitted to be reimbursed
pursuant to Section 4.02) or surplus amounts held by the Master Servicer to
cover estimated expenses (including, but not limited to, recoveries in respect
of the representations and warranties made by the Seller pursuant to the
Mortgage Loan Purchase Agreement) specifically related to a Mortgage Loan that
was the subject of a liquidation or final disposition of any REO Property prior
to the related Prepayment Period that resulted in a Realized Loss.

                                       48
<PAGE>

         SUBSERVICING AGREEMENT: Any agreement entered into between the Master
Servicer and a subservicer with respect to the subservicing of any Mortgage Loan
hereunder by such subservicer.

         SUBSTITUTION ADJUSTMENT AMOUNT: The meaning ascribed to such term
pursuant to Section 2.03(c).

         SUCCESSOR MASTER SERVICER: The meaning ascribed to such term pursuant
to Section 8.02.

         SWAP ADMINISTRATION AGREEMENT: The swap administration agreement, dated
February 28, 2005, pursuant to which the Swap Administrator will make payments
to the Swap Provider and the Trust Fund, and certain other payments.

         SWAP AGREEMENT: The interest rate swap agreement between the Swap
Provider and the Swap Administrator, which agreement provides for Net Swap
Payments and Swap Termination Payments to be paid, as provided therein, together
with any schedules, confirmations or other agreements relating thereto, attached
hereto as Exhibit M.

         SWAP ACCOUNT: The separate trust account created and maintained by the
Swap Administrator pursuant to the Swap Administration Agreement.

         SWAP LIBOR: LIBOR as determined pursuant to the Swap Agreement.

         SWAP PROVIDER: The swap provider under the Swap Agreement either (a)
entitled to receive payments from the Swap Administrator from amounts payable by
the Trust Fund under this Agreement or (b) required to make payments to the Swap
Administrator for payment to the Trust Fund, in either case pursuant to the
terms of the Swap Agreement, and any successor in interest or assign. Initially,
the Swap Provider shall be Bear Stearns Financial Products Inc.

         SWAP PROVIDER TRIGGER EVENT: With respect to any Distribution Date, (i)
an Event of Default under the Interest Rate Swap Agreement with respect to which
the Swap Provider is a Defaulting Party, (ii) a Termination Event under the
Interest Rate Swap Agreement with respect to which the Swap Provider is the sole
Affected Party, or (iii) an Additional Termination Event under the interest rate
Swap Agreement with respect to which the Swap Provider is the sole Affected
Party.

         SWAP TERMINATION PAYMENT: Upon the designation of an "Early Termination
Date" as defined in the Swap Agreement, the payment to be made by the Swap
Administrator to the Swap Provider from payments from the Trust Fund, or by the
Swap Provider to the Swap Administrator for payment to the Trust Fund, as
applicable, pursuant to the terms of the Swap Agreement.

         TAX MATTERS PERSON: The person designated as "tax matters person" in
the manner provided under Treasury Regulation Sections 1.860F-4(d) and
301.6231(a)(7)-1T. The holder of the greatest Percentage Interest in a Class of
Residual Certificates shall be the Tax Matters Person for the related REMIC. The
Trustee, or any successor thereto or assignee thereof shall serve as tax
administrator hereunder and as agent for the related Tax Matters Person.

                                       49
<PAGE>

         TRANSFER: Any direct or indirect transfer or sale of any Ownership
Interest in a Certificate.

         TRANSFER AFFIDAVIT: As defined in Section 6.02(c).

         TRIGGER EVENT: With respect to any Distribution Date, a Trigger Event
exists if (i) a Delinquency Event shall have occurred and be continuing or (ii)
the aggregate amount of Realized Losses on the Mortgage Loans since the Cut-off
Date as a percentage of the Cut-off Date Principal Balance exceeds the
applicable percentages set forth below with respect to such Distribution Date:

             DISTRIBUTION DATE                   PERCENTAGE
        ---------------------------        ----------------------

        March 2008 to February 2009                3.50%
        March 2009 to February 2010                5.25%
        March 2010 to February 2011                6.75%
        March 2011 and thereafter                  7.75%

         TRUST FUND: The corpus of the trust created hereunder consisting of (i)
the Mortgage Loans and all interest accruing and principal due with respect
thereto after the Cut-off Date to the extent not applied in computing the
Cut-off Date Principal Balance thereof; (ii) the Distribution Account, the Class
P Certificate Account, the Reserve Fund and the Protected Account and all
amounts deposited therein pursuant to the applicable provisions of this
Agreement; (iii) property that secured a Mortgage Loan and has been acquired by
foreclosure, deed in lieu of foreclosure or otherwise; (iv) the mortgagee's
rights under the Insurance Policies with respect to the Mortgage Loans; (v) the
rights under the Swap Administration Agreement; (vi) the rights under the
Mortgage Loan Purchase Agreement; and (vii) all proceeds of the foregoing,
including proceeds of conversion, voluntary or involuntary, of any of the
foregoing into cash or other liquid property.

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

         TRUSTEE FEE: As to each Mortgage Loan and any Distribution Date, a per
annum fee equal to 0.0053% multiplied by the Stated Principal Balance of such
Mortgage Loan as of the last day of the related Due Period.

         UNCERTIFICATED ACCRUED INTEREST: With respect to each REMIC Regular
Interest on each Distribution Date, an amount equal to one month's interest at
the related Uncertificated Pass-

                                       50
<PAGE>

Through Rate on the related Uncertificated Principal Balance of such REMIC
Regular Interest. In each case, Uncertificated Accrued Interest will be reduced
by any Prepayment Interest Shortfalls and Relief Act Interest Shortfalls
(allocated to such REMIC Regular Interests as set forth in Section 5.07).

         UNCERTIFICATED NOTIONAL AMOUNT: With respect to the Class CE Interest
and any Distribution Date, an amount equal to the aggregate Uncertificated
Principal Balance of the REMIC II Regular Interests (other than REMIC II Regular
Interest P) for such Distribution Date.

         With respect to REMIC II Regular Interest IO and each Distribution Date
listed below, the aggregate Uncertificated Principal Balance of the REMIC I
Regular Interests ending with the designation "A" listed below:

<TABLE>
<CAPTION>
DISTRIBUTION
    DATE                                 REMIC I REGULAR INTERESTS
------------  ------------------------------------------------------------------------------
<S>          <C>
      1          I-1-A through I-60-A, II-1-A through II-60-A and III-1-A through III-60-A
      2          I-2-A through I-60-A, II-2-A through II-60-A and III-2-A through III-60-A
      3          I-3-A through I-60-A, II-3-A through II-60-A and III-3-A through III-60-A
      4          I-4-A through I-60-A, II-4-A through II-60-A and III-4-A through III-60-A
      5          I-5-A through I-60-A, II-5-A through II-60-A and III-5-A through III-60-A
      6          I-6-A through I-60-A, II-6-A through II-60-A and III-6-A through III-60-A
      7          I-7-A through I-60-A, II-7-A through II-60-A and III-7-A through III-60-A
      8          I-8-A through I-60-A, II-8-A through II-60-A and III-8-A through III-60-A
      9          I-9-A through I-60-A, II-9-A through II-60-A and III-9-A through III-60-A
     10        I-10-A through I-60-A, II-10-A through II-60-A and III-10-A through III-60-A
     11        I-11-A through I-60-A, II-11-A through II-60-A and III-11-A through III-60-A
     12        I-12-A through I-60-A, II-12-A through II-60-A and III-12-A through III-60-A
     13        I-13-A through I-60-A, II-13-A through II-60-A and III-13-A through III-60-A
     14        I-14-A through I-60-A, II-14-A through II-60-A and III-14-A through III-60-A
     15        I-15-A through I-60-A, II-15-A through II-60-A and III-15-A through III-60-A
     16        I-16-A through I-60-A, II-16-A through II-60-A and III-16-A through III-60-A
     17        I-17-A through I-60-A, II-17-A through II-60-A and III-17-A through III-60-A
     18        I-18-A through I-60-A, II-18-A through II-60-A and III-18-A through III-60-A
     19        I-19-A through I-60-A, II-19-A through II-60-A and III-19-A through III-60-A
     20        I-20-A through I-60-A, II-20-A through II-60-A and III-20-A through III-60-A
     21        I-21-A through I-60-A, II-21-A through II-60-A and III-21-A through III-60-A
     22        I-22-A through I-60-A, II-22-A through II-60-A and III-22-A through III-60-A
     23        I-23-A through I-60-A, II-23-A through II-60-A and III-23-A through III-60-A
     24        I-24-A through I-60-A, II-24-A through II-60-A and III-24-A through III-60-A
     25        I-25-A through I-60-A, II-25-A through II-60-A and III-25-A through III-60-A
     26        I-26-A through I-60-A, II-26-A through II-60-A and III-26-A through III-60-A
     27        I-27-A through I-60-A, II-27-A through II-60-A and III-27-A through III-60-A
     28        I-28-A through I-60-A, II-28-A through II-60-A and III-28-A through III-60-A
     29        I-29-A through I-60-A, II-29-A through II-60-A and III-29-A through III-60-A
     30        I-30-A through I-60-A, II-30-A through II-60-A and III-30-A through III-60-A
     31        I-31-A through I-60-A, II-31-A through II-60-A and III-31-A through III-60-A
     32        I-32-A through I-60-A, II-32-A through II-60-A and III-32-A through III-60-A
     33        I-33-A through I-60-A, II-33-A through II-60-A and III-33-A through III-60-A
     34        I-34-A through I-60-A, II-34-A through II-60-A and III-34-A through III-60-A
     35        I-35-A through I-60-A, II-35-A through II-60-A and III-35-A through III-60-A
     36        I-36-A through I-60-A, II-36-A through II-60-A and III-36-A through III-60-A
     37        I-37-A through I-60-A, II-37-A through II-60-A and III-37-A through III-60-A
</TABLE>

                                       51
<PAGE>
<TABLE>
<CAPTION>
DISTRIBUTION
    DATE                                 REMIC I REGULAR INTERESTS
------------  ------------------------------------------------------------------------------
<S>          <C>
     38        I-38-A through I-60-A, II-38-A through II-60-A and III-38-A through III-60-A
     39        I-39-A through I-60-A, II-39-A through II-60-A and III-39-A through III-60-A
     40        I-40-A through I-60-A, II-40-A through II-60-A and III-40-A through III-60-A
     41        I-41-A through I-60-A, II-41-A through II-60-A and III-41-A through III-60-A
     42        I-42-A through I-60-A, II-42-A through II-60-A and III-42-A through III-60-A
     43        I-43-A through I-60-A, II-43-A through II-60-A and III-43-A through III-60-A
     44        I-44-A through I-60-A, II-44-A through II-60-A and III-44-A through III-60-A
     45        I-45-A through I-60-A, II-45-A through II-60-A and III-45-A through III-60-A
     46        I-46-A through I-60-A, II-46-A through II-60-A and III-46-A through III-60-A
     47        I-47-A through I-60-A, II-47-A through II-60-A and III-47-A through III-60-A
     48        I-48-A through I-60-A, II-48-A through II-60-A and III-48-A through III-60-A
     49        I-49-A through I-60-A, II-49-A through II-60-A and III-49-A through III-60-A
     50        I-50-A through I-60-A, II-50-A through II-60-A and III-50-A through III-60-A
     51        I-51-A through I-60-A, II-51-A through II-60-A and III-51-A through III-60-A
     52        I-52-A through I-60-A, II-52-A through II-60-A and III-52-A through III-60-A
     53        I-53-A through I-60-A, II-53-A through II-60-A and III-53-A through III-60-A
     54        I-54-A through I-60-A, II-54-A through II-60-A and III-54-A through III-60-A
     55        I-55-A through I-60-A, II-55-A through II-60-A and III-55-A through III-60-A
     56        I-56-A through I-60-A, II-56-A through II-60-A and III-56-A through III-60-A
     57        I-57-A through I-60-A, II-57-A through II-60-A and III-57-A through III-60-A
     58        I-58-A through I-60-A, II-58-A through II-60-A and III-58-A through III-60-A
     59         I-59-A through I-60-A, II-59-A through II-60-Aand III-59-A through III-60-A
     60                                I-60-A, II-60-A and III-60-A
 thereafter                                       $0.00
</TABLE>

         With respect to the Class IO Interest and any Distribution Date, an
amount equal to the Uncertificated Notional Amount of the REMIC II Regular
Interest IO. With respect to REMIC VI Regular Interest IO, an amount equal to
the Uncertificated Notional Amount of the Class IO Interest.

         UNCERTIFICATED PASS-THROUGH RATE: the Uncertificated REMIC I
Pass-Through Rate and Uncertificated REMIC II Pass-Through Rate.

         UNCERTIFICATED PRINCIPAL BALANCE: The amount of REMIC Regular Interests
outstanding as of any date of determination. As of the Closing Date, the
Uncertificated Principal Balance of each REMIC Regular Interest shall equal the
amount set forth in the Preliminary Statement hereto as its initial
uncertificated principal balance. On each Distribution Date, the Uncertificated
Principal Balance of the REMIC Regular Interests shall be reduced by all
distributions of principal made on such REMIC Regular Interests on such
Distribution Date pursuant to Section 5.07 and, if and to the extent necessary
and appropriate, shall be further reduced on such Distribution Date by Realized
Losses as provided in Section 5.05, and the Uncertificated Principal Balance of
REMIC II Regular Interest ZZ shall be increased by interest deferrals as
provided in Section 5.07(c)(1)(ii). The Uncertificated Principal Balance of each
REMIC Regular Interest shall never be less than zero. With respect to the Class
CE Interest as of any date of determination, an amount equal to the excess, if
any, of (A) the then aggregate Uncertificated Principal Balances of the REMIC II
Regular Interests over (B) the then aggregate Certificate Principal Balances of
the Class A Certificates, the Class M Certificates and the Class P Interest then
outstanding.

                                       52
<PAGE>

         UNCERTIFICATED REMIC I PASS-THROUGH RATE: With respect to each REMIC I
Group I Regular Interest ending with the designation "A", a per annum rate equal
to the weighted average Net Mortgage Rate of Loan Group I multiplied by 2,
subject to a maximum rate of 7.5240%. With respect to each REMIC I Group I
Regular Interest ending with the designation "B", the greater of (x) a per annum
rate equal to the excess, if any, of (i) 2 multiplied by the weighted average
Net Mortgage Rate of Loan Group I over (ii) 7.5240% and (y) 0.00%. With respect
to each REMIC I Group II Regular Interest ending with the designation "A", a per
annum rate equal to the weighted average Net Mortgage Rate of Loan Group II
multiplied by 2, subject to a maximum rate of 7.5240%. With respect to each
REMIC I Group II Regular Interest ending with the designation "B", the greater
of (x) a per annum rate equal to the excess, if any, of (i) 2 multiplied by the
weighted average Net Mortgage Rate of Loan Group II over (ii) 7.5240% and (y)
0.00%. With respect to each REMIC I Group III Regular Interest ending with the
designation "A", a per annum rate equal to the weighted average Net Mortgage
Rate of Loan Group III multiplied by 2, subject to a maximum rate of 7.5240%.
With respect to each REMIC I Group III Regular Interest ending with the
designation "B", the greater of (x) a per annum rate equal to the excess, if
any, of (i) 2 multiplied by the weighted average Net Mortgage Rate of Loan Group
III over (ii) 7.5240%, and (y) 0.00%. With respect to REMIC I Regular Interest
P, 0.00%.

         UNCERTIFICATED REMIC II PASS-THROUGH RATE: With respect to REMIC II
Regular Interest AA, REMIC II Regular Interest I-A-1, REMIC II Regular Interest
I-A-2, REMIC II Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC
II Regular Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular
Interest III-A-2, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2,
REMIC II Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular
Interest M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest M-7,
REMIC II Regular Interest M-8, REMIC II Regular Interest ZZ, REMIC II Regular
Interest 1-A, REMIC II Regular Interest 2-A, REMIC II Regular Interest 3-A and
REMIC II Regular Interest XX, a per annum rate (but not less than zero) equal to
the weighted average of (x) with respect to REMIC I Regular Interests ending
with the designation "B", the weighted average of the Uncertificated REMIC I
Pass-Through Rates for such REMIC I Regular Interests, weighted on the basis of
the Uncertificated Principal Balance of such REMIC I Regular Interests for each
such Distribution Date and (y) with respect to REMIC I Regular Interests ending
with the designation "A", for each Distribution Date listed below, the weighted
average of the rates listed below for each such REMIC I Regular Interest listed
below, weighted on the basis of the Uncertificated Principal Balance of each
such REMIC I Regular Interest for each such Distribution Date:

                                       53
<PAGE>

<TABLE>
<CAPTION>
 DISTRIBUTION DATE   REMIC I REGULAR INTEREST                                               RATE
 -----------------   ------------------------      ---------------------------------------------------------------------------------
<S>                 <C>                           <C>
         1           I-1-A through I-60-A          2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-1-A through II-60-A        2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-1-A through III-60-A      2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
         2           I-2-A through I-60-A          2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-2-A through II-60-A        2 multiplied by Swap LIBOR, subject to a maximum rate Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-2-A through III-60-A      2 multiplied by Swap LIBOR, subject to a maximum rate Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A                         Uncertificated REMIC I Pass-Through Rate

                     II-1-A                        Uncertificated REMIC I Pass-Through Rate

                     III-1-A                       Uncertificated REMIC I Pass-Through Rate

         3           I-3-A through I-60-A          2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-3-A through II-60-A        2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-3-A through III-60-A      2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A and I-2-A               Uncertificated REMIC I Pass-Through Rate

                     II-1-A and II-2-A             Uncertificated REMIC I Pass-Through Rate

                     III-1-A and III-2-A           Uncertificated REMIC I Pass-Through Rate

         4           I-4-A through I-60-A          2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-4-A through II-60-A        2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-4-A through III-60-A      2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-3-A           Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-3-A         Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-3-A       Uncertificated REMIC I Pass-Through Rate

         5           I-5-A through I-60-A          2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-5-A through II-60-A        2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-5-A through III-60-A      2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-4-A           Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-4-A         Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-4-A       Uncertificated REMIC I Pass-Through Rate

         6           I-6-A through I-60-A          2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-6-A through II-60-A        2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-6-A through III-60-A      2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-5-A           Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-5-A         Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-5-A       Uncertificated REMIC I Pass-Through Rate

         7           I-7-A through I-60-A          2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-7-A through II-60-A        2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-7-A through III-60-A      2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-6-A           Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-6-A         Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-6-A       Uncertificated REMIC I Pass-Through Rate

         8           I-8-A through I-60-A          2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-8-A through II-60-A        2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-8-A through III-60-A      2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate

                                       54
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
 DISTRIBUTION DATE   REMIC I REGULAR INTEREST                                               RATE
 -----------------   ------------------------      ---------------------------------------------------------------------------------
<S>                 <C>                           <C>
                     I-1-A through I-7-A           Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-7-A         Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-7-A       Uncertificated REMIC I Pass-Through Rate

         9           I-9-A through I-60-A          2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-9-A through II-60-A        2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-9-A through III-60-A      2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-8-A           Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-8-A         Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-8-A       Uncertificated REMIC I Pass-Through Rate

        10           I-10-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-10-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-10-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-9-A           Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-9-A         Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-9-A       Uncertificated REMIC I Pass-Through Rate

        11           I-11-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-11-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-11-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-10-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-10-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-10-A      Uncertificated REMIC I Pass-Through Rate

        12           I-12-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-12-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-12-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-11-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-11-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-11-A      Uncertificated REMIC I Pass-Through Rate

        13           I-13-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-13-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-13-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-12-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-12-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-12-A      Uncertificated REMIC I Pass-Through Rate

        14           I-14-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-14-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-14-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-13-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-13-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-13-A      Uncertificated REMIC I Pass-Through Rate

        15           I-15-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-15-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-15-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-14-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-14-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-14-A      Uncertificated REMIC I Pass-Through Rate

                                       55
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
 DISTRIBUTION DATE   REMIC I REGULAR INTEREST                                               RATE
 -----------------   ------------------------      ---------------------------------------------------------------------------------
<S>                 <C>                           <C>
        16           I-16-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-16-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-16-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-15-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-15-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-15-A      Uncertificated REMIC I Pass-Through Rate

        17           I-17-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-17-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-17-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-16-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-16-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-16-A      Uncertificated REMIC I Pass-Through Rate

        18           I-18-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-18-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-18-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-17-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-17-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-17-A      Uncertificated REMIC I Pass-Through Rate

        19           I-19-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-19-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-19-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-18-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-18-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-18-A      Uncertificated REMIC I Pass-Through Rate

        20           I-20-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-20-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-20-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-19-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-19-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-19-A      Uncertificated REMIC I Pass-Through Rate

        21           I-21-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-21-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-21-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-20-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-20-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-20-A      Uncertificated REMIC I Pass-Through Rate

        22           I-22-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-22-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-22-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-21-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-21-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-21-A      Uncertificated REMIC I Pass-Through Rate

        23           I-23-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-23-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate

                                       56
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
 DISTRIBUTION DATE   REMIC I REGULAR INTEREST                                               RATE
 -----------------   ------------------------      ---------------------------------------------------------------------------------
<S>                 <C>                           <C>

                     III-23-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-22-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-22-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-22-A      Uncertificated REMIC I Pass-Through Rate

        24           I-24-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-24-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-24-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-23-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-23-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-23-A      Uncertificated REMIC I Pass-Through Rate

        25           I-25-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-25-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-25-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-24-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-24-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-24-A      Uncertificated REMIC I Pass-Through Rate

        26           I-26-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-26-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-26-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-25-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-25-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-25-A      Uncertificated REMIC I Pass-Through Rate

        27           I-27-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-27-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-27-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-26-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-26-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-26-A      Uncertificated REMIC I Pass-Through Rate

        28           I-28-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-28-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-28-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-27-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-27-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-27-A      Uncertificated REMIC I Pass-Through Rate

        29           I-29-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-29-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-29-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-28-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-28-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-28-A      Uncertificated REMIC I Pass-Through Rate

        30           I-30-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-30-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-30-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-29-A          Uncertificated REMIC I Pass-Through Rate

                                       57
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
 DISTRIBUTION DATE   REMIC I REGULAR INTEREST                                               RATE
 -----------------   ------------------------      ---------------------------------------------------------------------------------
<S>                 <C>                           <C>
                     II-1-A through II-29-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-29-A      Uncertificated REMIC I Pass-Through Rate

        31           I-31-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-31-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-31-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-30-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-30-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through II-30-A       Uncertificated REMIC I Pass-Through Rate

        32           I-32-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-32-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-32-A through II-60-A      2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-31-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-31-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-31-A      Uncertificated REMIC I Pass-Through Rate

        33           I-33-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-33-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-33-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-32-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-32-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-32-A      Uncertificated REMIC I Pass-Through Rate

        34           I-34-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-34-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-34-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-33-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-33-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-33-A      Uncertificated REMIC I Pass-Through Rate

        35           I-35-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-35-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-35-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-34-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-34-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-34-A      Uncertificated REMIC I Pass-Through Rate

        36           I-36-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-36-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-36-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-35-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-35-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-35-A      Uncertificated REMIC I Pass-Through Rate

        37           I-37-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-37-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-37-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-36-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-36-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-36-A      Uncertificated REMIC I Pass-Through Rate

        38           I-38-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I

                                       58
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
 DISTRIBUTION DATE   REMIC I REGULAR INTEREST                                               RATE
 -----------------   ------------------------      ---------------------------------------------------------------------------------
<S>                 <C>                           <C>
                                                   Pass-Through Rate
                     II-38-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-38-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-37-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-37-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-37-A      Uncertificated REMIC I Pass-Through Rate

        39           I-39-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-39-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-39-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-38-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-38-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-38-A      Uncertificated REMIC I Pass-Through Rate

        40           I-40-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-40-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-40-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-39-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-39-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-39-A      Uncertificated REMIC I Pass-Through Rate

        41           I-41-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-41-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-41-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-40-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-40-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-40-A      Uncertificated REMIC I Pass-Through Rate

        42           I-42-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-42-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-42-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-41-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-41-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-41-A      Uncertificated REMIC I Pass-Through Rate

        43           I-43-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-43-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-43-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-42-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-42-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-42-A      Uncertificated REMIC I Pass-Through Rate

        44           I-44-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-44-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-44-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-43-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-43-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-43-A      Uncertificated REMIC I Pass-Through Rate

        45           I-45-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-45-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate

                                       59
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
 DISTRIBUTION DATE   REMIC I REGULAR INTEREST                                               RATE
 -----------------   ------------------------      ---------------------------------------------------------------------------------
<S>                 <C>                           <C>
                     III-45-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-44-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-44-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-44-A      Uncertificated REMIC I Pass-Through Rate

        46           I-46-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-46-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-46-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-45-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-45-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-45-A      Uncertificated REMIC I Pass-Through Rate

        47           I-47-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-47-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-47-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-46-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-46-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-46-A      Uncertificated REMIC I Pass-Through Rate

        48           I-48-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-48-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-48-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-47-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-47-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-47-A      Uncertificated REMIC I Pass-Through Rate

        49           I-49-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-49-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-49-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-48-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-48-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-48-A      Uncertificated REMIC I Pass-Through Rate

        50           I-50-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-50-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-50-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-49-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-49-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-49-A      Uncertificated REMIC I Pass-Through Rate

        51           I-51-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-51-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-51-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-50-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-50-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-50-A      Uncertificated REMIC I Pass-Through Rate

        52           I-52-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-52-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-52-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-51-A          Uncertificated REMIC I Pass-Through Rate

                                       60
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
 DISTRIBUTION DATE   REMIC I REGULAR INTEREST                                               RATE
 -----------------   ------------------------      ---------------------------------------------------------------------------------
<S>                 <C>                           <C>
                     II-1-A through II-51-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-51-A      Uncertificated REMIC I Pass-Through Rate

        53           I-53-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-53-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-53-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-52-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-52-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-52-A      Uncertificated REMIC I Pass-Through Rate

        54           I-54-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-54-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-54-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-53-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-53-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-53-A      Uncertificated REMIC I Pass-Through Rate

        55           I-55-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-55-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-55-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-54-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-54-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-54-A      Uncertificated REMIC I Pass-Through Rate

        56           I-56-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-56-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-56-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-55-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-55-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-55-A      Uncertificated REMIC I Pass-Through Rate

        57           I-57-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-57-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-57-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-56-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-56-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-56-A      Uncertificated REMIC I Pass-Through Rate

       58            I-58-A through I-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-58-A through II-60-A       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-58-A through III-60-A     2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate

                     I-1-A through I-57-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-57-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-57-A      Uncertificated REMIC I Pass-Through Rate

        59           I-59-A and I-60-A             2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     II-59-A and II-60-A           2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-59-A and III-60-A         2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate

                     I-1-A through I-58-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-58-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through III-58-A      Uncertificated REMIC I Pass-Through Rate

        60           I-60-A                        2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate

                                       61
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
 DISTRIBUTION DATE   REMIC I REGULAR INTEREST                                               RATE
 -----------------   ------------------------      ---------------------------------------------------------------------------------
<S>                 <C>                           <C>
                     II-60-A                       2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     III-60-A                      2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I
                                                   Pass-Through Rate
                     I-1-A through I-59-A          Uncertificated REMIC I Pass-Through Rate

                     II-1-A through II-59-A        Uncertificated REMIC I Pass-Through Rate

                     III-1-A through II-59-A       Uncertificated REMIC I Pass-Through Rate

thereafter           I-1-A through I-60-A          Uncertificated REMIC I Pass-Through Rate

thereafter           II-1-A through II-60-A        Uncertificated REMIC I Pass-Through Rate

thereafter           III-1-A through II-60-A       Uncertificated REMIC I Pass-Through Rate
</TABLE>

         With respect to REMIC II Regular Interest 1B, a per annum rate (but not
less than zero) equal to the weighted average of (x) with respect to REMIC I
Group I Regular Interests ending with the designation "B", the weighted average
of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular
Interests, weighted on the basis of the Uncertificated Principal Balance of each
such REMIC I Regular Interest for each such Distribution Date and (y) with
respect to REMIC I Group I Regular Interests ending with the designation "A",
for each Distribution Date listed below, the weighted average of the rates
listed below for such REMIC I Regular Interests listed below, weighted on the
basis of the Uncertificated Principal Balance of each such REMIC I Regular
Interest for each such Distribution Date:

<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
        1          I-1-A through I-60-A             2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate

        2          I-2-A through I-60-A             2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A                            Uncertificated REMIC I Pass-Through Rate

        3          I-3-A through I-60-A             2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A and I-2-A                  Uncertificated REMIC I Pass-Through Rate

        4          I-4-A through I-60-A             2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-3-A              Uncertificated REMIC I Pass-Through Rate

        5          I-5-A through I-60-A             2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-4-A              Uncertificated REMIC I Pass-Through Rate

        6          I-6-A through I-60-A             2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-5-A              Uncertificated REMIC I Pass-Through Rate

        7          I-7-A through I-60-A             2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-6-A              Uncertificated REMIC I Pass-Through Rate

        8          I-8-A through I-60-A             2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-7-A              Uncertificated REMIC I Pass-Through Rate

        9          I-9-A through I-60-A             2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate

                                       62
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
                   I-1-A through I-8-A              Uncertificated REMIC I Pass-Through Rate

       10          I-10-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-9-A              Uncertificated REMIC I Pass-Through Rate

       11          I-11-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-10-A             Uncertificated REMIC I Pass-Through Rate

       12          I-12-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-11-A             Uncertificated REMIC I Pass-Through Rate

       13          I-13-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-12-A             Uncertificated REMIC I Pass-Through Rate

       14          I-14-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-13-A             Uncertificated REMIC I Pass-Through Rate

       15          I-15-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-14-A             Uncertificated REMIC I Pass-Through Rate

       16          I-16-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-15-A             Uncertificated REMIC I Pass-Through Rate

       17          I-17-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-16-A             Uncertificated REMIC I Pass-Through Rate

       18          I-18-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-17-A             Uncertificated REMIC I Pass-Through Rate

       19          I-19-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-18-A             Uncertificated REMIC I Pass-Through Rate

       20          I-20-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-19-A             Uncertificated REMIC I Pass-Through Rate

       21          I-21-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-20-A             Uncertificated REMIC I Pass-Through Rate

       22          I-22-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-21-A             Uncertificated REMIC I Pass-Through Rate

       23          I-23-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-22-A             Uncertificated REMIC I Pass-Through Rate

       24          I-24-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-23-A             Uncertificated REMIC I Pass-Through Rate

                                       63
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>

       25          I-25-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-24-A             Uncertificated REMIC I Pass-Through Rate

       26          I-26-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-25-A             Uncertificated REMIC I Pass-Through Rate

       27          I-27-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-26-A             Uncertificated REMIC I Pass-Through Rate

       28          I-28-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-27-A             Uncertificated REMIC I Pass-Through Rate

       29          I-29-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-28-A             Uncertificated REMIC I Pass-Through Rate

       30          I-30-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-29-A             Uncertificated REMIC I Pass-Through Rate

       31          I-31-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-30-A             Uncertificated REMIC I Pass-Through Rate

       32          I-32-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-31-A             Uncertificated REMIC I Pass-Through Rate

       33          I-33-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-32-A             Uncertificated REMIC I Pass-Through Rate

       34          I-34-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-33-A             Uncertificated REMIC I Pass-Through Rate

       35          I-35-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-34-A             Uncertificated REMIC I Pass-Through Rate

       36          I-36-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-35-A             Uncertificated REMIC I Pass-Through Rate

       37          I-37-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-36-A             Uncertificated REMIC I Pass-Through Rate

       38          I-38-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-37-A             Uncertificated REMIC I Pass-Through Rate

       39          I-39-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-38-A             Uncertificated REMIC I Pass-Through Rate

       40          I-40-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-39-A             Uncertificated REMIC I Pass-Through Rate

                                       64
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
       41          I-41-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-40-A             Uncertificated REMIC I Pass-Through Rate

       42          I-42-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-41-A             Uncertificated REMIC I Pass-Through Rate

       43          I-43-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-42-A             Uncertificated REMIC I Pass-Through Rate

       44          I-44-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-43-A             Uncertificated REMIC I Pass-Through Rate

       45          I-45-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-44-A             Uncertificated REMIC I Pass-Through Rate

       46          I-46-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-45-A             Uncertificated REMIC I Pass-Through Rate

       47          I-47-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-46-A             Uncertificated REMIC I Pass-Through Rate

       48          I-48-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-47-A             Uncertificated REMIC I Pass-Through Rate

       49          I-49-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-48-A             Uncertificated REMIC I Pass-Through Rate

       50          I-50-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-49-A             Uncertificated REMIC I Pass-Through Rate

       51          I-51-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-50-A             Uncertificated REMIC I Pass-Through Rate

       52          I-52-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-51-A             Uncertificated REMIC I Pass-Through Rate

       53          I-53-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-52-A             Uncertificated REMIC I Pass-Through Rate

       54          I-54-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-53-A             Uncertificated REMIC I Pass-Through Rate

       55          I-55-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-54-A             Uncertificated REMIC I Pass-Through Rate

       56          I-56-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate

                                       65
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
                   I-1-A through I-55-A             Uncertificated REMIC I Pass-Through Rate

       57          I-57-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-56-A             Uncertificated REMIC I Pass-Through Rate

       58          I-58-A through I-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-57-A             Uncertificated REMIC I Pass-Through Rate

       59          I-59-A and I-60-A                2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-58-A             Uncertificated REMIC I Pass-Through Rate

       60          I-60-A                           2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   I-1-A through I-59-A             Uncertificated REMIC I Pass-Through Rate

thereafter         I-1-A through I-60-A             Uncertificated REMIC I Pass-Through Rate

</TABLE>

         With respect to REMIC II Regular Interest 2B, a per annum rate (but not
less than zero) equal to the weighted average of: (x) with respect to REMIC I
Group II Regular Interests ending with the designation "B", the weighted average
of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular
Interests, weighted on the basis of the Uncertificated Principal Balance of each
such REMIC I Regular Interest for each such Distribution Date and (y) with
respect to REMIC I Group III Regular Interests ending with the designation "A",
for each Distribution Date listed below, the weighted average of the rates
listed below for such REMIC I Regular Interests listed below, weighted on the
basis of the Uncertificated Principal Balance of each such REMIC I Regular
Interest for each such Distribution Date:

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
        1          II-1-A through II-60-A           2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate

        2          II-2-A through II-60-A           2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A                           Uncertificated REMIC I Pass-Through Rate

        3          II-3-A through II-60-A           2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A and II-2-A                Uncertificated REMIC I Pass-Through Rate

        4          II-4-A through II-60-A           2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-3-A            Uncertificated REMIC I Pass-Through Rate

        5          II-5-A through II-60-A           2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-4-A            Uncertificated REMIC I Pass-Through Rate

        6          II-6-A through II-60-A           2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-5-A            Uncertificated REMIC I Pass-Through Rate

                                       66
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
        7          II-7-A through II-60-A           2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-6-A            Uncertificated REMIC I Pass-Through Rate

        8          II-8-A through II-60-A           2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-7-A            Uncertificated REMIC I Pass-Through Rate

        9          II-9-A through II-60-A           2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-8-A            Uncertificated REMIC I Pass-Through Rate

       10          II-10-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-9-A            Uncertificated REMIC I Pass-Through Rate

       11          II-11-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-10-A           Uncertificated REMIC I Pass-Through Rate

       12          II-12-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-11-A           Uncertificated REMIC I Pass-Through Rate

       13          II-13-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-12-A           Uncertificated REMIC I Pass-Through Rate

       14          II-14-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-13-A           Uncertificated REMIC I Pass-Through Rate

       15          II-15-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-14-A           Uncertificated REMIC I Pass-Through Rate

       16          II-16-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-15-A           Uncertificated REMIC I Pass-Through Rate

       17          II-17-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-16-A           Uncertificated REMIC I Pass-Through Rate

       18          II-18-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-17-A           Uncertificated REMIC I Pass-Through Rate

       19          II-19-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-18-A           Uncertificated REMIC I Pass-Through Rate

       20          II-20-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-19-A           Uncertificated REMIC I Pass-Through Rate

       21          II-21-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-20-A           Uncertificated REMIC I Pass-Through Rate

       22          II-22-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-21-A           Uncertificated REMIC I Pass-Through Rate

                                       67
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
       23          II-23-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-22-A           Uncertificated REMIC I Pass-Through Rate

       24          II-24-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-23-A           Uncertificated REMIC I Pass-Through Rate

       25          II-25-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-24-A           Uncertificated REMIC I Pass-Through Rate

       26          II-26-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-25-A           Uncertificated REMIC I Pass-Through Rate

       27          II-27-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-26-A           Uncertificated REMIC I Pass-Through Rate

       28          II-28-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-27-A           Uncertificated REMIC I Pass-Through Rate

       29          II-29-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-28-A           Uncertificated REMIC I Pass-Through Rate

       30          II-30-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-29-A           Uncertificated REMIC I Pass-Through Rate

       31          II-31-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-30-A           Uncertificated REMIC I Pass-Through Rate

       32          II-32-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-31-A           Uncertificated REMIC I Pass-Through Rate

       33          II-33-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-32-A           Uncertificated REMIC I Pass-Through Rate

       34          II-34-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-33-A           Uncertificated REMIC I Pass-Through Rate

       35          II-35-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-34-A           Uncertificated REMIC I Pass-Through Rate

       36          II-36-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-35-A           Uncertificated REMIC I Pass-Through Rate

       37          II-37-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-36-A           Uncertificated REMIC I Pass-Through Rate

       38          II-38-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
</TABLE>

                                       68
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
                   II-1-A through II-37-A           Uncertificated REMIC I Pass-Through Rate

       39          II-39-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-38-A           Uncertificated REMIC I Pass-Through Rate

       40          II-40-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-39-A           Uncertificated REMIC I Pass-Through Rate

       41          II-41-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-40-A           Uncertificated REMIC I Pass-Through Rate

       42          II-42-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-41-A           Uncertificated REMIC I Pass-Through Rate

       43          II-43-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-42-A           Uncertificated REMIC I Pass-Through Rate

       44          II-44-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-43-A           Uncertificated REMIC I Pass-Through Rate

       45          II-45-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-44-A           Uncertificated REMIC I Pass-Through Rate

       46          II-46-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-45-A           Uncertificated REMIC I Pass-Through Rate

       47          II-47-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-46-A           Uncertificated REMIC I Pass-Through Rate

       48          II-48-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-47-A           Uncertificated REMIC I Pass-Through Rate

       49          II-49-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-48-A           Uncertificated REMIC I Pass-Through Rate

       50          II-50-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-49-A           Uncertificated REMIC I Pass-Through Rate

       51          II-51-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-50-A           Uncertificated REMIC I Pass-Through Rate

       52          II-52-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-51-A           Uncertificated REMIC I Pass-Through Rate

       53          II-53-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-52-A           Uncertificated REMIC I Pass-Through Rate

                                       69
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
       54          II-54-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-53-A           Uncertificated REMIC I Pass-Through Rate

       55          II-55-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-54-A           Uncertificated REMIC I Pass-Through Rate

       56          II-56-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-55-A           Uncertificated REMIC I Pass-Through Rate

       57          II-57-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-56-A           Uncertificated REMIC I Pass-Through Rate

       58          II-58-A through II-60-A          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-57-A           Uncertificated REMIC I Pass-Through Rate

       59          II-59-A and II-60-A              2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-58-A           Uncertificated REMIC I Pass-Through Rate

       60          II-60-A                          2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   II-1-A through II-59-A           Uncertificated REMIC I Pass-Through Rate

thereafter         II-1-A through II-60-A           Uncertificated REMIC I Pass-Through Rate

</TABLE>

         With respect to REMIC II Regular Interest 3B, a per annum rate (but not
less than zero) equal to the weighted average of (x) with respect to REMIC I
Group III Regular Interests ending with the designation "B", the weighted
average of the Uncertificated REMIC I Pass-Through Rates for such REMIC I
Regular Interests, weighted on the basis of the Uncertificated Principal Balance
of each such REMIC I Regular Interest for each such Distribution Date and (y)
with respect to REMIC I Group III Regular Interests ending with the designation
"A", for each Distribution Date listed below, the weighted average of the rates
listed below for such REMIC I Regular Interests listed below, weighted on the
basis of the Uncertificated Principal Balance of each such REMIC I Regular
Interest for each such Distribution Date:

<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
        1          III-1-A through III-60-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate

        2          III-2-A through III-60-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A                          Uncertificated REMIC I Pass-Through Rate

        3          III-3-A through III-60-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A and III-2-A              Uncertificated REMIC I Pass-Through Rate

        4          III-4-A through III-60-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I

                                       70
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
                                                    Pass-Through Rate

                   III-1-A through III-3-A          Uncertificated REMIC I Pass-Through Rate

        5          III-5-A through III-60-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-4-A          Uncertificated REMIC I Pass-Through Rate

        6          III-6-A through III-60-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-5-A          Uncertificated REMIC I Pass-Through Rate

        7          III-7-A through III-60-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-6-A          Uncertificated REMIC I Pass-Through Rate

        8          III-8-A through III-60-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-7-A          Uncertificated REMIC I Pass-Through Rate

        9          III-9-A through III-60-A         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-8-A          Uncertificated REMIC I Pass-Through Rate

       10          III-10-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-9-A          Uncertificated REMIC I Pass-Through Rate

       11          III-11-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-10-A         Uncertificated REMIC I Pass-Through Rate

       12          III-12-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-11-A         Uncertificated REMIC I Pass-Through Rate

       13          III-13-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-12-A         Uncertificated REMIC I Pass-Through Rate

       14          III-14-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-13-A         Uncertificated REMIC I Pass-Through Rate

       15          III-15-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-14-A         Uncertificated REMIC I Pass-Through Rate

       16          III-16-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-15-A         Uncertificated REMIC I Pass-Through Rate

       17          III-17-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-16-A         Uncertificated REMIC I Pass-Through Rate

       18          III-18-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-17-A         Uncertificated REMIC I Pass-Through Rate

       19          III-19-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-18-A         Uncertificated REMIC I Pass-Through Rate

                                       71
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
       20          III-20-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-19-A         Uncertificated REMIC I Pass-Through Rate

       21          III-21-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-20-A         Uncertificated REMIC I Pass-Through Rate
                                                    ---------------------------------------------------------------

       22          III-22-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-21-A         Uncertificated REMIC I Pass-Through Rate

       23          III-23-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-22-A         Uncertificated REMIC I Pass-Through Rate

       24          III-24-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-23-A         Uncertificated REMIC I Pass-Through Rate

       25          III-25-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-24-A         Uncertificated REMIC I Pass-Through Rate

       26          III-26-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-25-A         Uncertificated REMIC I Pass-Through Rate

       27          III-27-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-26-A         Uncertificated REMIC I Pass-Through Rate

       28          III-28-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-27-A         Uncertificated REMIC I Pass-Through Rate

       29          III-29-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-28-A         Uncertificated REMIC I Pass-Through Rate

       30          III-30-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-29-A         Uncertificated REMIC I Pass-Through Rate

       31          III-31-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-30-A         Uncertificated REMIC I Pass-Through Rate

       32          III-32-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-31-A         Uncertificated REMIC I Pass-Through Rate

       33          III-33-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-32-A         Uncertificated REMIC I Pass-Through Rate

       34          III-34-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-33-A         Uncertificated REMIC I Pass-Through Rate

       35          III-35-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-34-A         Uncertificated REMIC I Pass-Through Rate

                                       72
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
       36          III-36-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-35-A         Uncertificated REMIC I Pass-Through Rate

       37          III-37-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-36-A         Uncertificated REMIC I Pass-Through Rate

       38          III-38-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-37-A         Uncertificated REMIC I Pass-Through Rate

       39          III-39-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-38-A         Uncertificated REMIC I Pass-Through Rate

       40          III-40-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-39-A         Uncertificated REMIC I Pass-Through Rate

       41          III-41-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-40-A         Uncertificated REMIC I Pass-Through Rate

       42          III-42-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-41-A         Uncertificated REMIC I Pass-Through Rate

       43          III-43-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-42-A         Uncertificated REMIC I Pass-Through Rate

       44          III-44-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-43-A         Uncertificated REMIC I Pass-Through Rate

       45          III-45-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-44-A         Uncertificated REMIC I Pass-Through Rate

       46          III-46-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-45-A         Uncertificated REMIC I Pass-Through Rate

       47          III-47-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-46-A         Uncertificated REMIC I Pass-Through Rate

       48          III-48-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-47-A         Uncertificated REMIC I Pass-Through Rate

       49          III-49-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-48-A         Uncertificated REMIC I Pass-Through Rate

       50          III-50-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-49-A         Uncertificated REMIC I Pass-Through Rate

                                       73
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
DISTRIBUTION DATE     REMIC I REGULAR INTEREST                                   RATE
-----------------  -----------------------------    ------------------------------------------------------------------
<S>                <C>                             <C>
       51          III-51-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-50-A         Uncertificated REMIC I Pass-Through Rate

       52          III-52-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-51-A         Uncertificated REMIC I Pass-Through Rate

       53          III-53-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-52-A         Uncertificated REMIC I Pass-Through Rate

       54          III-54-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-53-A         Uncertificated REMIC I Pass-Through Rate

       55          III-55-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-54-A         Uncertificated REMIC I Pass-Through Rate

       56          III-56-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-55-A         Uncertificated REMIC I Pass-Through Rate

       57          III-57-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-56-A         Uncertificated REMIC I Pass-Through Rate

       58          III-58-A through III-60-A        2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-57-A         Uncertificated REMIC I Pass-Through Rate

       59          III-59-A and III-60-A            2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-58-A         Uncertificated REMIC I Pass-Through Rate

       60          III-60-A                         2  multiplied  by Swap  LIBOR,  subject  to a  maximum  rate of
                                                    Uncertificated REMIC I Pass-Through Rate
                   III-1-A through III-59-A         Uncertificated REMIC I Pass-Through Rate

thereafter         III-1-A through III-60-A         Uncertificated REMIC I Pass-Through Rate
</TABLE>

         With respect to REMIC II Regular Interest IO, the excess of (i) the
weighted average of the Uncertificated REMIC I Pass-Through Rates for REMIC I
Regular Interests ending with the designation "A", over (ii) 2 multiplied by
Swap LIBOR.

         With respect to REMIC II Regular Interest P, 0.00%.

         UNPAID REALIZED LOSS AMOUNT: With respect to any Class A Certificates
and as to any Distribution Date, is the excess of Applied Realized Loss Amounts
with respect to such Class over the sum of all distributions in reduction of the
Applied Realized Loss Amounts on all previous Distribution Dates. Any amounts
distributed to the Class A Certificates in respect of any Unpaid Realized Loss
Amount shall not be applied to reduce the Certificate Principal Balance of such
Class.

                                       74
<PAGE>

         VOTING RIGHTS: The portion of the voting rights of all the Certificates
that is allocated to any Certificate for purposes of the voting provisions
hereunder. Voting Rights shall be allocated (i) 92% to the Class A Certificates
and Class M Certificates, (ii) 3% to the Class CE Certificates until paid in
full, and (iii) 1% and 1% to each of the Class R-1 Certificates and Class R-2
Certificates, respectively, and 1% to each of the Class R-3, Class RX and Class
P Certificates, with the allocation among the Certificates (other than the Class
CE, Class P and Residual Certificates) to be in proportion to the Certificate
Principal Balance of each Class relative to the Certificate Principal Balance of
all other such Classes. Voting Rights will be allocated among the Certificates
of each such Class in accordance with their respective Percentage Interests.

         Section 1.02 ALLOCATION OF CERTAIN INTEREST SHORTFALLS.

         For purposes of calculating the amount of Current Interest for the
Class A Certificates, the Class M Certificates and the Class CE Certificates for
any Distribution Date, the aggregate amount of any Prepayment Interest
Shortfalls (to the extent not covered by payments by the Master Servicer
pursuant to Section 5.02) and any Relief Act Interest Shortfalls incurred in
respect of the Mortgage Loans for any Distribution Date shall be allocated
first, to the Class CE Interest based on, and to the extent of, one month's
interest at the then applicable respective Pass-Through Rate on the
Uncertificated Notional Amount thereof and, thereafter, among the Class A
Certificates and Class M Certificates, in each case on a pro rata basis based
on, and to the extent of, one month's interest at the then applicable respective
Pass-Through Rates on the respective Certificate Principal Balances of each such
Certificate.

         For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC I Regular Interests for any Distribution Date:

         (a) For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC I Group I Regular Interests for any Distribution Date the
aggregate amount of any Prepayment Interest Shortfalls (to the extent not
covered by payments by the Master Servicer pursuant to Section 5.02) and any
Relief Act Interest Shortfalls incurred in respect of Loan Group I shall be
allocated first, to REMIC I Group I Regular Interests ending with the
designation "B", PRO RATA based on, and to the extent of, one month's interest
at the then applicable respective Uncertificated REMIC I Pass-Through Rates on
the respective Uncertificated Principal Balances of each such REMIC I Regular
Interest , and then, to REMIC I Group I Regular Interests ending with the
designation "A", pro rata based on, and to the extent of, one month's interest
at the then applicable respective Uncertificated REMIC I Pass-Through Rates on
the respective Uncertificated Principal Balances of each such REMIC I Regular
Interest. For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC I Group II Regular Interests for any Distribution Date
the aggregate amount of any Prepayment Interest Shortfalls (to the extent not
covered by payments by the Master Servicer pursuant to Section 5.02) and any
Relief Act Interest Shortfalls incurred in respect of Loan Group II shall be
allocated first, to REMIC I Group II Regular Interests ending with the
designation "B", PRO RATA based on, and to the extent of, one month's interest
at the then applicable respective Uncertificated REMIC I Pass-Through Rates on
the respective Uncertificated Principal Balances of each such REMIC I Regular
Interest, and then, to REMIC I Group II Regular Interests ending with the
designation "A", pro rata based on, and to the extent of, one month's interest
at the then applicable respective Uncertificated REMIC I Pass-Through Rates on
the respective Uncertificated Principal Balances of each such REMIC I Regular
Interest. For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC I Group III Regular Interests for any Distribution Date
the aggregate amount of any Prepayment Interest Shortfalls (to the extent not
covered by payments by the Master Servicer pursuant to Section 5.02) and any
Relief Act Interest Shortfalls incurred in respect of Loan Group III shall be
allocated first, to REMIC I Group III Regular Interests ending with the
designation "B", PRO RATA based on, and to the extent of, one month's interest
at the then applicable respective Uncertificated REMIC I Pass-Through Rates on
the respective Uncertificated Principal Balances of each such REMIC I Regular
Interest, and then, to REMIC I Group III Regular Interests ending with the
designation "A", pro rata based on, and to the extent of, one month's interest
at the then applicable respective Uncertificated REMIC I Pass-

                                       75
<PAGE>

Through Rates on the respective Uncertificated Principal Balances of each such
REMIC I Regular Interest.

         (b) The REMIC II Marker Allocation Percentage of the aggregate amount
of any Prepayment Interest Shortfalls (to the extent not covered by payments by
the Master Servicer pursuant to Section 5.02) and the REMIC II Marker Allocation
Percentage of any Relief Act Interest Shortfalls incurred in respect of the
Mortgage Loans for any Distribution Date shall be allocated first, to
Uncertificated Accrued Interest payable to REMIC II Regular Interest AA and
REMIC II Regular Interest ZZ up to an aggregate amount equal to the REMIC II
Interest Loss Allocation Amount, 98% and 2%, respectively, and thereafter among
REMIC II Regular Interest I-A-1, REMIC II Regular Interest I-A-2, REMIC II
Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular
Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular Interest
III-A-2, REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II
Regular Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest
M-5, REMIC II Regular Interest M-6, REMIC II Regular Interest M-7, REMIC II
Regular Interest M-8 and REMIC II Regular Interest ZZ, PRO RATA, based on, and
to the extent of, one month's interest at the then applicable respective
Uncertificated REMIC II Pass-Through Rates on the respective Uncertificated
Principal Balances of each such REMIC II Regular Interest.

         (c) The REMIC II Sub WAC Allocation Percentage of the aggregate amount
of any Prepayment Interest Shortfalls (to the extent not covered by payments by
the Master Servicer pursuant to Section 5.02) and the REMIC II Sub WAC
Allocation Percentage of any Relief Act Interest Shortfalls incurred in respect
of the Mortgage Loans for any Distribution Date shall be allocated to
Uncertificated Accrued Interest payable to REMIC II Regular Interest 1A, REMIC
II Regular Interest 1B, REMIC II Regular Interest 2A, REMIC II Regular Interest
2B, REMIC II Regular Interest 3A, REMIC II Regular Interest 3B and REMIC II
Regular Interest XX, pro rata, based on, and to the extent of, one month's
interest at the then applicable respective Uncertificated REMIC II Pass-Through
Rates on the respective Uncertificated Principal Balances of each such REMIC II
Regular Interest.

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                                   ARTICLE II

                            CONVEYANCE OF TRUST FUND
                         REPRESENTATIONS AND WARRANTIES

         Section 2.01 CONVEYANCE OF TRUST FUND.

         Pursuant to the Mortgage Loan Purchase Agreement, the Seller sold,
transferred, assigned, set over and otherwise conveyed to the Depositor, without
recourse, all the right, title and interest of the Seller in and to the assets
in the Trust Fund.

         The Seller has entered into this Agreement in consideration for the
purchase of the Mortgage Loans by the Depositor pursuant to the Mortgage Loan
Purchase Agreement and has agreed to take the actions specified herein.

         The Depositor, concurrently with the execution and delivery hereof,
hereby sells, transfers, assigns, sets over and otherwise conveys to the Trustee
for the use and benefit of the Certificateholders, without recourse, all the
right, title and interest of the Depositor in and to the Trust Fund.

         In connection with such sale, the Depositor has delivered to, and
deposited with, the Trustee or the Custodian, as its agent, the following
documents or instruments with respect to each Mortgage Loan so assigned: (i) the
original Mortgage Note, including any riders thereto, endorsed without recourse
(A) to the order of "LaSalle Bank National Association, as Trustee for
certificateholders of Bear Stearns Asset Backed Securities I LLC Asset Backed
Certificates, Series 2005-HE2," or (B) in the case of a loan registered on the
MERS system, in blank, and in each case showing an unbroken chain of
endorsements from the original payee thereof to the Person endorsing it to the
Trustee, (ii) the original Mortgage and, if the related Mortgage Loan is a MOM
Loan, noting the presence of the MIN and language indicating that such Mortgage
Loan is a MOM Loan, which shall have been recorded (or if the original is not
available, a copy), with evidence of such recording indicated thereon (or if
clause (x) in the proviso below applies, shall be in recordable form), (iii)
unless the Mortgage Loan is a MOM Loan, the assignment (either an original or a
copy, which may be in the form of a blanket assignment if permitted in the
jurisdiction in which the Mortgaged Property is located) to the Trustee of the
Mortgage with respect to each Mortgage Loan in the name of "LaSalle Bank
National Association, as Trustee for certificateholders of Bear Stearns Asset
Backed Securities I LLC Asset Backed Certificates, Series 2005-HE2," which shall
have been recorded (or if clause (x) in the proviso below applies, shall be in
recordable form) (iv) an original or a copy of all intervening assignments of
the Mortgage, if any, with evidence of recording thereon, (v) the original
policy of title insurance or mortgagee's certificate of title insurance or
commitment or binder for title insurance, if available, or a copy thereof, or,
in the event that such original title insurance policy is unavailable, a
photocopy thereof, or in lieu thereof, a current lien search on the related
Mortgaged Property and (vi) originals or copies of all available assumption,
modification or substitution agreements, if any; provided, however, that in lieu
of the foregoing, the Seller may deliver the following

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documents, under the circumstances set forth below: (x) if any Mortgage,
assignment thereof to the Trustee or intervening assignments thereof have been
delivered or are being delivered to recording offices for recording and have not
been returned in time to permit their delivery as specified above, the Depositor
may deliver a true copy thereof with a certification by the Seller or the title
company issuing the commitment for title insurance, on the face of such copy,
substantially as follows: "Certified to be a true and correct copy of the
original, which has been transmitted for recording"; and (y) in lieu of the
Mortgage Notes relating to the Mortgage Loans identified in the list set forth
in Exhibit I, the Depositor may deliver a lost note affidavit and indemnity and
a copy of the original note, if available; and provided, further, however, that
in the case of Mortgage Loans which have been prepaid in full after the Cut-Off
Date and prior to the Closing Date, the Depositor, in lieu of delivering the
above documents, may deliver to the Trustee and the Custodian a certification of
a Servicing Officer to such effect and in such case shall deposit all amounts
paid in respect of such Mortgage Loans, in the Protected Account or in the
Distribution Account on the Closing Date. In the case of the documents referred
to in clause (x) above, the Depositor shall deliver such documents to the
Trustee or the Custodian promptly after they are received. The Seller shall
cause, at its expense, the Mortgage and intervening assignments, if any, and to
the extent required in accordance with the foregoing, the assignment of the
Mortgage to the Trustee to be submitted for recording promptly after the Closing
Date; provided that the Seller need not cause to be recorded (a) any assignment
in any jurisdiction under the laws of which, as evidenced by an Opinion of
Counsel addressed to the Trustee delivered by the Seller to the Trustee and the
Rating Agencies, the recordation of such assignment is not necessary to protect
the Trustee's interest in the related Mortgage Loan or (b) if MERS is identified
on the Mortgage or on a properly recorded assignment of the Mortgage as the
mortgagee of record solely as nominee for Seller and its successors and assigns.
In the event that the Seller, the Depositor or the Master Servicer gives written
notice to the Trustee that a court has recharacterized the sale of the Mortgage
Loans as a financing, the Seller shall submit or cause to be submitted for
recording as specified above each such previously unrecorded assignment to be
submitted for recording as specified above at the expense of the Trust. In the
event a Mortgage File is released to the Master Servicer as a result of such
Person having completed a Request for Release, the Custodian shall, if not so
completed, complete the assignment of the related Mortgage in the manner
specified in clause (iii) above.

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

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         Section 2.02 ACCEPTANCE OF THE MORTGAGE LOANS.

         (a) Based on the Initial Certification received by it from the
Custodian, the Trustee acknowledges receipt of, subject to the further review
and exceptions reported by the Custodian pursuant to the procedures described
below, the documents (or certified copies thereof) delivered to the Trustee or
the Custodian on its behalf pursuant to Section 2.01 and declares that it holds
and will continue to hold directly or through a custodian those documents and
any amendments, replacements or supplements thereto and all other assets of the
Trust Fund delivered to it in trust for the use and benefit of all present and
future Holders of the Certificates. On the Closing Date, the Trustee or the
Custodian on its behalf will deliver an Initial Certification, in the form of
Exhibit One to the Custodial Agreement, confirming whether or not it has
received the Mortgage File for each Mortgage Loan, but without review of such
Mortgage File, except to the extent necessary to confirm whether such Mortgage
File contains the original Mortgage Note or a lost note affidavit and indemnity
in lieu thereof. No later than 90 days after the Closing Date, the Trustee or
the Custodian on its behalf shall, for the benefit of the Certificateholders,
review each Mortgage File delivered to it and execute and deliver to the Seller
and the Master Servicer and, if reviewed by the Custodian or the Trustee, an
Interim Certifications, substantially in the form of Exhibit Two to the
Custodial Agreement. In conducting such review, the Trustee or the Custodian on
its behalf will ascertain whether all required documents have been executed and
received and whether those documents relate, determined on the basis of the
Mortgagor name, original principal balance and loan number, to the Mortgage
Loans identified in Exhibit B to this Agreement, as supplemented (provided,
however, that with respect to those documents described in subclauses (iv) and
(vi) of Section 2.01, such obligations shall extend only to documents actually
delivered pursuant to such subclauses). In performing any such review, the
Trustee and the Custodian may conclusively rely on the purported due execution
and genuineness of any such document and on the purported genuineness of any
signature thereon. If the Trustee or the Custodian on its behalf finds any
document constituting part of the Mortgage File not to have been executed or
received, or to be unrelated to the Mortgage Loans identified in Exhibit B or to
appear to be defective on its face, the Trustee or the Custodian on its behalf
shall include such information in the exception report attached to the Interim
Certification. The Seller shall correct or cure any such defect or, if prior to
the end of the second anniversary of the Closing Date, the Seller may substitute
for the related Mortgage Loan a Replacement Mortgage Loan, which substitution
shall be accomplished in the manner and subject to the conditions set forth in
Section 2.03 or shall deliver to the Trustee an Opinion of Counsel addressed to
the Trustee to the effect that such defect does not materially or adversely
affect the interests of the Certificateholders in such Mortgage Loan within 60
days from the date of notice from the Trustee of the defect and if the Seller
fails to correct or cure the defect or deliver such opinion within such period,
the Seller will, subject to Section 2.03, within 90 days from the notification
of the Trustee purchase such Mortgage Loan at the Purchase Price; provided,
however, that if such defect relates solely to the inability of the Seller to
deliver the Mortgage, assignment thereof to the Trustee, or intervening
assignments thereof with evidence of recording thereon because such documents
have been submitted for recording and have not been returned by the applicable
jurisdiction, the Seller shall not be required to purchase such Mortgage Loan if
the Seller delivers such documents promptly upon receipt, but in no event later
than 360 days after the Closing Date.

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<PAGE>

         (b) No later than 180 days after the Closing Date, the Trustee or the
Custodian on its behalf will review, for the benefit of the Certificateholders,
the Mortgage Files and will execute and deliver or cause to be executed and
delivered to the Seller and the Master Servicer and, if reviewed by the
Custodian or the Trustee, a Final Certification, substantially in the form of
Exhibit Three to the Custodial Agreement. In conducting such review, the Trustee
or the Custodian on its behalf will ascertain whether each document required to
be recorded has been returned from the recording office with evidence of
recording thereon and the Trustee or the Custodian on its behalf has received
either an original or a copy thereof, as required in Section 2.01 (provided,
however, that with respect to those documents described in subclauses (iv) and
(vi) of Section 2.01, such obligations shall extend only to documents actually
delivered pursuant to such subclauses). If the Trustee or the Custodian on its
behalf finds any document with respect to a Mortgage Loan has not been received,
or to be unrelated, determined on the basis of the Mortgagor name, original
principal balance and loan number, to the Mortgage Loans identified in Exhibit B
or to appear defective on its face, the Trustee or the Custodian on its behalf
shall note such defect in the exception report attached to the Final
Certification and shall promptly notify the Seller. The Seller shall correct or
cure any such defect or, if prior to the end of the second anniversary of the
Closing Date, the Seller may substitute for the related Mortgage Loan a
Replacement Mortgage Loan, which substitution shall be accomplished in the
manner and subject to the conditions set forth in Section 2.03 or shall deliver
to the Trustee an Opinion of Counsel addressed to the Trustee to the effect that
such defect does not materially or adversely affect the interests of
Certificateholders in such Mortgage Loan within 60 days from the date of notice
from the Trustee of the defect and if the Seller is unable within such period to
correct or cure such defect, or to substitute the related Mortgage Loan with a
Replacement Mortgage Loan or to deliver such opinion, the Seller shall, subject
to Section 2.03, within 90 days from the notification of the Trustee, purchase
such Mortgage Loan at the Purchase Price; provided, however, that if such defect
relates solely to the inability of the Seller to deliver the Mortgage,
assignment thereof to the Trustee or intervening assignments thereof with
evidence of recording thereon, because such documents have not been returned by
the applicable jurisdiction, the Seller shall not be required to purchase such
Mortgage Loan, if the Seller delivers such documents promptly upon receipt, but
in no event later than 360 days after the Closing Date. Notwithstanding anything
to the contrary, the Trustee shall have no responsibility with respect to the
custody or review of Mortgage Files held by the Custodian pursuant to the
Custodial Agreement. The Trustee shall have no liability for the failure of the
Custodian to perform its obligations under the Custodial Agreement.

         (c) In the event that a Mortgage Loan is purchased by the Seller in
accordance with subsections 2.02(a) or (b) above or Section 2.03, the Seller
shall remit the applicable Purchase Price to the Master Servicer for deposit in
the Protected Account and shall provide written notice to the Trustee detailing
the components of the Purchase Price, signed by a Servicing Officer. Upon
deposit of the Purchase Price in the Protected Account and upon receipt of a
Request for Release with respect to such Mortgage Loan, the Trustee or the
Custodian will release to the Seller the related Mortgage File and the Trustee
shall execute and deliver all instruments of transfer or assignment, without
recourse, representation or warranty furnished to it by the Seller, as are
necessary to vest in the Seller title to and rights under the Mortgage Loan.
Such purchase shall be deemed to have occurred on the date on which the deposit
into the Protected Account was made. The Trustee shall promptly notify the
Rating Agencies of such repurchase. The

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obligation of the Seller to cure, repurchase or substitute for any Mortgage Loan
as to which a defect in a constituent document exists shall be the sole remedies
respecting such defect available to the Certificateholders or to the Trustee on
their behalf.

         (d) The Seller shall deliver to the Trustee or the Custodian on its
behalf, and Trustee agrees to accept the Mortgage Note and other documents
constituting the Mortgage File with respect to any Replacement Mortgage Loan,
which the Trustee or the Custodian will review as provided in subsections
2.02(a) and 2.02(b), provided, that the Closing Date referred to therein shall
instead be the date of delivery of the Mortgage File with respect to each
Replacement Mortgage Loan.

         Section 2.03 REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE MASTER
SERVICER AND THE SELLER.

         (a) The Master Servicer hereby represents and warrants to the Depositor
and the Trustee as follows, as of the Closing Date:

                           (i) It is duly organized and is validly existing and
                  in good standing under the laws of the State of Delaware and
                  is duly authorized and qualified to transact any and all
                  business contemplated by this Agreement to be conducted by it
                  in any state in which a Mortgaged Property is located or is
                  otherwise not required under applicable law to effect such
                  qualification and, in any event, is in compliance with the
                  doing business laws of any such state, to the extent necessary
                  to ensure its ability to enforce each Mortgage Loan, to
                  service the Mortgage Loans in accordance with the terms of the
                  Mortgage Loan Purchase Agreement and to perform any of its
                  other obligations under this Agreement in accordance with the
                  terms hereof or thereof.

                           (ii) It has the full corporate power and authority to
                  service each Mortgage Loan, and to execute, deliver and
                  perform, and to enter into and consummate the transactions
                  contemplated by this Agreement and has duly authorized by all
                  necessary corporate action on its part the execution, delivery
                  and performance of this Agreement; and this Agreement,
                  assuming the due authorization, execution and delivery hereof
                  by the other parties hereto or thereto, as applicable,
                  constitutes its legal, valid and binding obligation,
                  enforceable against it in accordance with its terms, except
                  that (a) the enforceability hereof may be limited by
                  bankruptcy, insolvency, moratorium, receivership and other
                  similar laws relating to creditors' rights generally and (b)
                  the remedy of specific performance and injunctive and other
                  forms of equitable relief may be subject to equitable defenses
                  and to the discretion of the court before which any proceeding
                  therefor may be brought.

                           (iii) The execution and delivery of this Agreement,
                  the servicing of the Mortgage Loans by it under this
                  Agreement, the consummation of any other of the transactions
                  contemplated by this Agreement, and the fulfillment of or
                  compliance with the terms hereof and thereof are in its
                  ordinary course of

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<PAGE>

                  business and will not (A) result in a breach of any term or
                  provision of its charter or by-laws or (B) conflict with,
                  result in a breach, violation or acceleration of, or result in
                  a default under, the terms of any other material agreement or
                  instrument to which it is a party or by which it may be bound,
                  or (C) constitute a violation of any statute, order or
                  regulation applicable to it of any court, regulatory body,
                  administrative agency or governmental body having jurisdiction
                  over it; and it is not in breach or violation of any material
                  indenture or other material agreement or instrument, or in
                  violation of any statute, order or regulation of any court,
                  regulatory body, administrative agency or governmental body
                  having jurisdiction over it which breach or violation may
                  materially impair its ability to perform or meet any of its
                  obligations under this Agreement.

                           (iv) It is an approved servicer of conventional
                  mortgage loans for Fannie Mae or Freddie Mac and is a
                  mortgagee approved by the Secretary of Housing and Urban
                  Development pursuant to sections 203 and 211 of the National
                  Housing Act.

                           (v) No litigation is pending or, to the best of its
                  knowledge, threatened, against it that would materially and
                  adversely affect the execution, delivery or enforceability of
                  this Agreement or its ability to service the Mortgage Loans or
                  to perform any of its other obligations under this Agreement
                  in accordance with the terms hereof.

                           (vi) No consent, approval, authorization or order of
                  any court or governmental agency or body is required for its
                  execution, delivery and performance of, or compliance with,
                  this Agreement or the consummation of the transactions
                  contemplated hereby or thereby, or if any such consent,
                  approval, authorization or order is required, it has obtained
                  the same.

                           (vii) The Master Servicer has and will fully furnish
                  for each Group II Loan, in accordance with the Fair Credit
                  Reporting Act and its implementing regulations, accurate and
                  complete information (i.e., favorable and unfavorable) on its
                  borrower credit files to Equifax, Experian, and Trans Union
                  Credit Information Company (three of the credit repositories),
                  on a monthly basis.

         (b) The Seller hereby represents and warrants to the Depositor and the
Trustee as follows, as of the Closing Date:

                           (i) The Seller is duly organized as a Delaware
                  corporation and is validly existing and in good standing under
                  the laws of the State of Delaware and is duly authorized and
                  qualified to transact any and all business contemplated by
                  this Agreement to be conducted by the Seller in any state in
                  which a Mortgaged Property is located or is otherwise not
                  required under applicable law to effect such qualification
                  and, in any event, is in compliance with the doing business
                  laws of any such state, to the extent necessary to ensure

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                  its ability to enforce each Mortgage Loan, to sell the
                  Mortgage Loans in accordance with the terms of the Mortgage
                  Loan Purchase Agreement and to perform any of its other
                  obligations under this Agreement in accordance with the terms
                  hereof.

                           (ii) The Seller has the full corporate power and
                  authority to sell each Mortgage Loan, and to execute, deliver
                  and perform, and to enter into and consummate the transactions
                  contemplated by this Agreement and has duly authorized by all
                  necessary corporate action on the part of the Seller the
                  execution, delivery and performance of this Agreement,
                  assuming the due authorization, execution and delivery hereof
                  by the other parties hereto or thereto, as applicable,
                  constitutes a legal, valid and binding obligation of the
                  Seller, enforceable against the Seller in accordance with its
                  terms, except that (a) the enforceability hereof may be
                  limited by bankruptcy, insolvency, moratorium, receivership
                  and other similar laws relating to creditors' rights generally
                  and (b) the remedy of specific performance and injunctive and
                  other forms of equitable relief may be subject to equitable
                  defenses and to the discretion of the court before which any
                  proceeding therefor may be brought.

                           (iii) The execution and delivery of this Agreement by
                  the Seller, the sale of the Mortgage Loans by the Seller under
                  the Mortgage Loan Purchase Agreement, the consummation of any
                  other of the transactions contemplated by this Agreement, and
                  the fulfillment of or compliance with the terms hereof and
                  thereof are in the ordinary course of business of the Seller
                  and will not (A) result in a material breach of any term or
                  provision of the charter or by-laws of the Seller or (B)
                  conflict with, result in a breach, violation or acceleration
                  of, or result in a default under, the terms of any other
                  material agreement or instrument to which the Seller is a
                  party or by which it may be bound, or (C) constitute a
                  violation of any statute, order or regulation applicable to
                  the Seller of any court, regulatory body, administrative
                  agency or governmental body having jurisdiction over the
                  Seller; and the Seller is not in breach or violation of any
                  material indenture or other material agreement or instrument,
                  or in violation of any statute, order or regulation of any
                  court, regulatory body, administrative agency or governmental
                  body having jurisdiction over it which breach or violation may
                  materially impair the Seller's ability to perform or meet any
                  of its obligations under this Agreement.

                           (iv) The Seller is an approved seller of conventional
                  mortgage loans for Fannie Mae or Freddie Mac and is a
                  mortgagee approved by the Secretary of Housing and Urban
                  Development pursuant to sections 203 and 211 of the National
                  Housing Act.

                           (v) No litigation is pending or, to the best of the
                  Seller's knowledge, threatened, against the Seller that would
                  materially and adversely affect the execution, delivery or
                  enforceability of this Agreement or the ability of the

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                  Seller to sell the Mortgage Loans or to perform any of its
                  other obligations under this Agreement in accordance with the
                  terms hereof or thereof.

                           (vi) 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 hereby, or if
                  any such consent, approval, authorization or order is
                  required, the Seller has obtained the same.

                           (vii) With respect to each Mortgage Loan as of the
                  Closing Date (or such other date as may be specified in
                  Section 7 of the Mortgage Loan Purchase Agreement), the Seller
                  hereby remakes and restates each of the representations and
                  warranties set forth in Section 7 of the Mortgage Loan
                  Purchase Agreement to the Depositor and the Trustee to the
                  same extent as if fully set forth herein.

         (c) Upon discovery by any of the parties hereto of a breach of a
representation or warranty set forth in the Mortgage Loan Purchase Agreement
with respect to the Mortgage Loans that materially and adversely affects the
interests of the Certificateholders in any Mortgage Loan, the party discovering
such breach shall give prompt written notice thereof to the other parties. Any
breach of a representation or warranty contained in clauses (gg), (hh) and (nn)
through (rr) of Section 7 of the Mortgage Loan Purchase Agreement in respect of
a Group II Loan, shall be deemed to materially adversely affect the interests of
the related Certificateholders. The Seller hereby covenants with respect to the
representations and warranties set forth in the Mortgage Loan Purchase Agreement
with respect to the Mortgage Loans, that within 90 days of the discovery of a
breach of any representation or warranty set forth therein that materially and
adversely affects the interests of the Certificateholders in any Mortgage Loan,
it shall cure such breach in all material respects and, if such breach is not so
cured, (i) if such 90 day period expires prior to the second anniversary of the
Closing Date, remove such Mortgage Loan (a "Deleted Mortgage Loan") from the
Trust Fund and substitute in its place a Replacement Mortgage Loan, in the
manner and subject to the conditions set forth in this Section; or (ii)
repurchase the affected Mortgage Loan or Mortgage Loans from the Trustee at the
Purchase Price in the manner set forth below; provided that any such
substitution pursuant to (i) above or repurchase pursuant to (ii) above shall
not be effected prior to the delivery to the Trustee of an Opinion of Counsel if
required by Section 2.05 hereof and any such substitution pursuant to (i) above
shall not be effected prior to the additional delivery to the Trustee of a
Request for Release. The Trustee shall give prompt written notice to the parties
hereto of the Seller's failure to cure such breach as set forth in the preceding
sentence. The Seller shall promptly reimburse the Master Servicer and the
Trustee for any expenses reasonably incurred by the Master Servicer or the
Trustee in respect of enforcing the remedies for such breach. To enable the
Master Servicer to amend the Mortgage Loan Schedule, the Seller shall, unless it
cures such breach in a timely fashion pursuant to this Section 2.03, promptly
notify the Master Servicer whether it intends either to repurchase, or to
substitute for, the Mortgage Loan affected by such breach. With respect to the
representations and warranties with respect to the Mortgage Loans that are made
to the best of the Seller's knowledge, if it is discovered by any of the

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Depositor, the Master Servicer, the Seller, the Trustee or the Custodian that
the substance of such representation and warranty is inaccurate and such
inaccuracy materially and adversely affects the value of the related Mortgage
Loan, notwithstanding the Seller's lack of knowledge with respect to the
substance of such representation or warranty, the Seller shall nevertheless be
required to cure, substitute for or repurchase the affected Mortgage Loan in
accordance with the foregoing.

         With respect to any Replacement Mortgage Loan or Loans, the Seller
shall deliver to the Trustee or the Custodian on its behalf for the benefit of
the Certificateholders such documents and agreements as are required by Section
2.01. No substitution will be made in any calendar month after the Determination
Date for such month. Scheduled Payments due with respect to Replacement Mortgage
Loans in the Due Period related to the Distribution Date on which such proceeds
are to be distributed shall not be part of the Trust Fund and will be retained
by the Seller. For the month of substitution, distributions to
Certificateholders will include the Scheduled Payment due on any Deleted
Mortgage Loan for the related Due Period and thereafter the Seller shall be
entitled to retain all amounts received in respect of such Deleted Mortgage
Loan. The Master Servicer shall amend the Mortgage Loan Schedule for the benefit
of the Certificateholders to reflect the removal of such Deleted Mortgage Loan
and the substitution of the Replacement Mortgage Loan or Loans and the Master
Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee and the
Custodian. Upon such substitution, the Replacement Mortgage Loan or Loans shall
be subject to the terms of this Agreement in all respects, and the Seller shall
be deemed to have made with respect to such Replacement Mortgage Loan or Loans,
as of the date of substitution, the representations and warranties set forth in
Section 7 of the Mortgage Loan Purchase Agreement with respect to such Mortgage
Loan. Upon any such substitution and the deposit into the Protected Account of
the amount required to be deposited therein in connection with such substitution
as described in the following paragraph and receipt by the Trustee of a Request
for Release for such Mortgage Loan, the Trustee or the Custodian shall release
to the Seller the Mortgage File relating to such Deleted Mortgage Loan and held
for the benefit of the Certificateholders and the Trustee shall execute and
deliver at the Seller's direction such instruments of transfer or assignment as
have been prepared by the Seller, in each case without recourse, representation
or warranty as shall be necessary to vest in the Seller, or its respective
designee, title to the Trustee's interest in any Deleted Mortgage Loan
substituted for pursuant to this Section 2.03.

         For any month in which the Seller substitutes one or more Replacement
Mortgage Loans for a Deleted Mortgage Loan, the Master Servicer will determine
the amount (if any) by which the aggregate principal balance of all the
Replacement Mortgage Loans as of the date of substitution is less than the
Stated Principal Balance (after application of the principal portion of the
Scheduled Payment due in the month of substitution) of such Deleted Mortgage
Loan. An amount equal to the aggregate of such deficiencies, described in the
preceding sentence for any Distribution Date (such amount, the "Substitution
Adjustment Amount") shall be deposited into the Protected Account, by the Seller
delivering such Replacement Mortgage Loan on the Determination Date for the
Distribution Date relating to the Prepayment Period during which the related
Mortgage Loan became required to be purchased or replaced hereunder.

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         In the event that the Seller shall have repurchased a Mortgage Loan,
the Purchase Price therefor shall be deposited into the Protected Account, on
the Determination Date for the Distribution Date in the month following the
month during which the Seller became obligated to repurchase or replace such
Mortgage Loan and upon such deposit of the Purchase Price, the delivery of an
Opinion of Counsel if required by Section 2.05 and the receipt of a Request for
Release, the Trustee or the Custodian shall release the related Mortgage File
held for the benefit of the Certificateholders to the Seller, and the Trustee
shall execute and deliver at such Person's direction the related instruments of
transfer or assignment prepared by the Seller, in each case without recourse, as
shall be necessary to transfer title from the Trustee for the benefit of the
Certificateholders and transfer the Trustee's interest to the Seller to any
Mortgage Loan purchased pursuant to this Section 2.03. It is understood and
agreed that the obligation under this Agreement of the Seller to cure,
repurchase or replace any Mortgage Loan as to which a breach has occurred and is
continuing shall constitute the sole remedies against the Seller respecting such
breach available to the Certificateholders, the Depositor or the Trustee.

         (d) The representations and warranties set forth in this Section 2.03
hereof shall survive delivery of the respective Mortgage Loans and Mortgage
Files to the Trustee or the Custodian for the benefit of the Certificateholders.

         Section 2.04 REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR.

         The Depositor hereby represents and warrants to the Master Servicer and
the Trustee as follows, as of the date hereof and as of the Closing Date:

                           (i) The Depositor is duly organized and is validly
                  existing as a limited liability company in good standing under
                  the laws of the State of Delaware and has full power and
                  authority necessary to own or hold its properties and to
                  conduct its business as now conducted by it and to enter into
                  and perform its obligations under this Agreement.

                           (ii) The Depositor has the full power and authority
                  to execute, deliver and perform, and to enter into and
                  consummate the transactions contemplated by, this Agreement
                  and has duly authorized, by all necessary corporate action on
                  its part, the execution, delivery and performance of this
                  Agreement, assuming the due authorization, execution and
                  delivery hereof by the other parties hereto, constitutes a
                  legal, valid and binding obligation of the Depositor,
                  enforceable against the Depositor in accordance with its
                  terms, subject, as to enforceability, to (i) bankruptcy,
                  insolvency, reorganization, moratorium and other similar laws
                  affecting creditors' rights generally and (ii) general
                  principles of equity, regardless of whether enforcement is
                  sought in a proceeding in equity or at law.

                           (iii) The execution and delivery of this Agreement by
                  the Depositor, the consummation of the transactions
                  contemplated by this Agreement, and the fulfillment of or
                  compliance with the terms hereof and thereof are in the
                  ordinary course of business of the Depositor and will not (A)
                  result in a

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                  material breach of any term or provision of the certificate of
                  formation or limited liability company agreement of the
                  Depositor or (B) conflict with, result in a breach, violation
                  or acceleration of, or result in a default under, the terms of
                  any other material agreement or instrument to which the
                  Depositor is a party or by which it may be bound or (C)
                  constitute a violation of any statute, order or regulation
                  applicable to the Depositor of any court, regulatory body,
                  administrative agency or governmental body having jurisdiction
                  over the Depositor; and the Depositor is not in breach or
                  violation of any material indenture or other material
                  agreement or instrument, or in violation of any statute, order
                  or regulation of any court, regulatory body, administrative
                  agency or governmental body having jurisdiction over it which
                  breach or violation may materially impair the Depositor's
                  ability to perform or meet any of its obligations under this
                  Agreement.

                           (iv) No litigation is pending, or, to the best of the
                  Depositor's knowledge, threatened, against the Depositor that
                  would materially and adversely affect the execution, delivery
                  or enforceability of this Agreement or the ability of the
                  Depositor to perform its obligations under this Agreement in
                  accordance with the terms hereof or thereof.

                           (v) No consent, approval, authorization or order of
                  any court or governmental agency or body is required for the
                  execution, delivery and performance by the Depositor of, or
                  compliance by the Depositor with this Agreement or the
                  consummation of the transactions contemplated hereby or
                  thereby, or if any such consent, approval, authorization or
                  order is required, the Depositor has obtained the same.

         The Depositor hereby represents and warrants to the Trustee as of the
Closing Date, following the transfer of the Mortgage Loans to it by the Seller,
the Depositor had good title to the Mortgage Loans and the related Mortgage
Notes were subject to no offsets, claims, defenses or counterclaims.

         It is understood and agreed that the representations and warranties set
forth in this Section 2.04 shall survive delivery of the Mortgage Files to the
Trustee or the Custodian for the benefit of the Certificateholders. Upon
discovery by the Depositor or the Trustee of a breach of such representations
and warranties, the party discovering such breach shall give prompt written
notice to the others and to each Rating Agency.

         Section 2.05 DELIVERY OF OPINION OF COUNSEL IN CONNECTION WITH
SUBSTITUTIONS AND REPURCHASES.

         (a) Notwithstanding any contrary provision of this Agreement, with
respect to any Mortgage Loan that is not in default or as to which default is
not imminent, no repurchase or substitution pursuant to Sections 2.02 or 2.03
shall be made unless the Seller delivers to the Trustee an Opinion of Counsel,
addressed to the Trustee, to the effect that such repurchase or substitution
would not (i) result in the imposition of the tax on "prohibited transactions"
of

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REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI or contributions
after the Closing Date, as defined in sections 860F(a)(2) and 860G(d) of the
Code, respectively or (ii) cause any of REMIC I, REMIC II, REMIC III, REMIC IV,
REMIC V or REMIC VI to fail to qualify as a REMIC at any time that any
Certificates are outstanding. Any Mortgage Loan as to which repurchase or
substitution was delayed pursuant to this paragraph shall be repurchased or the
substitution therefor shall occur (subject to compliance with Sections 2.02 or
2.03) upon the earlier of (a) the occurrence of a default or imminent default
with respect to such Mortgage Loan and (b) receipt by the Trustee of an Opinion
of Counsel addressed to the Trustee to the effect that such repurchase or
substitution, as applicable, will not result in the events described in clause
(i) or clause (ii) of the preceding sentence.

         (b) Upon discovery by the Depositor, the Seller or the Master Servicer
that any Mortgage Loan does not constitute a "qualified mortgage" within the
meaning of section 860G(a)(3) of the Code, the party discovering such fact shall
promptly (and in any event within 5 Business Days of discovery) give written
notice thereof to the other parties and the Trustee. In connection therewith,
the Trustee shall require the Seller, at the Seller's option, to either (i)
substitute, if the conditions in Section 2.03 with respect to substitutions are
satisfied, a Replacement Mortgage Loan for the affected Mortgage Loan, or (ii)
repurchase the affected Mortgage Loan within 90 days of such discovery in the
same manner as it would a Mortgage Loan for a breach of representation or
warranty in accordance with Section 2.03. The Trustee shall reconvey to the
Seller the Mortgage Loan to be released pursuant hereto (and the Custodian shall
deliver the related Mortgage File) in the same manner, and on the same terms and
conditions, as it would a Mortgage Loan repurchased for breach of a
representation or warranty in accordance with Section 2.03.

         Section 2.06 COUNTERSIGNATURE AND DELIVERY OF CERTIFICATES.

         (a) The Trustee acknowledges the sale, transfer and assignment to it of
the Trust Fund and, concurrently with such transfer and assignment, has
executed, countersigned and delivered, to or upon the order of the Depositor,
the Certificates in authorized denominations evidencing the entire ownership of
the Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the
rights referred to above for the benefit of all present and future Holders of
the Certificates and to perform the duties set forth in this Agreement in
accordance with its terms.

         (b) The Depositor concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey in trust to the
Trustee without recourse all the right, title and interest of the Depositor in
and to the REMIC I Regular Interests, and the other assets of REMIC II for the
benefit of the holders of the REMIC II Regular Interests and the Class R-2
Certificates. The Trustee acknowledges receipt of the REMIC I Regular Interests
(which are uncertificated) and the other assets of REMIC II and declares that it
holds and will hold the same in trust for the exclusive use and benefit of the
holders of the REMIC II Regular Interests and the Class R-2 Certificates.

         (c) The Depositor concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey in trust to the
Trustee without recourse all the right, title and interest of the Depositor in
and to the REMIC II Regular Interests, and the other

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assets of REMIC III for the benefit of the holders of the REMIC III Regular
Interests and the Class R-3 Certificates. The Trustee acknowledges receipt of
the REMIC II Regular Interests (which are uncertificated) and the other assets
of REMIC III and declares that it holds and will hold the same in trust for the
exclusive use and benefit of the holders of the REMIC III Regular Interests and
the Class R-3 Certificates.

         (d) The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey in trust to the
Trustee without recourse all the right, title and interest of the Depositor in
and to the Class CE Interest for the benefit of the holders of the REMIC IV
Certificates. The Trustee acknowledges receipt of the Class CE Interest (which
are uncertificated) and declares that it holds and will hold the same in trust
for the exclusive use and benefit of the holders of the REMIC IV Certificates.

         (e) The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey in trust to the
Trustee without recourse all the right, title and interest of the Depositor in
and to the Class P Interest for the benefit of the holders of the REMIC V
Certificates. The Trustee acknowledges receipt of the Class P Interest (which
are uncertificated) and declares that it holds and will hold the same in trust
for the exclusive use and benefit of the holders of the REMIC V Certificates.

         (f) The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey in trust to the
Trustee without recourse all the right, title and interest of the Depositor in
and to the Class IO Interest for the benefit of the holders of the REMIC VI
Interests. The Trustee acknowledges receipt of the Class IO Interest (which are
uncertificated) and declares that it holds and will hold the same in trust for
the exclusive use and benefit of the holders of the REMIC VI Interests.

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                                  ARTICLE III

               ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS

         Section 3.01 THE MASTER SERVICER TO ACT AS MASTER SERVICER.

         The Master Servicer shall service and administer the Mortgage Loans in
accordance with customary and usual standards of practice of prudent mortgage
loan servicers in the respective states in which the related Mortgaged
Properties are located. In connection with such servicing and administration,
the Master Servicer shall have full power and authority, acting alone and/or
through subservicers as provided in Section 3.03, to do or cause to be done any
and all things that it may deem necessary or desirable in connection with such
servicing and administration, including but not limited to, the power and
authority, subject to the terms hereof (i) to execute and deliver, on behalf of
the Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any related Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages (but only
in the manner provided herein), (iii) to collect any Insurance Proceeds and
other Liquidation Proceeds or Subsequent Recoveries, and (iv) subject to Section
3.09, to effectuate foreclosure or other conversion of the ownership of the
Mortgaged Property securing any Mortgage Loan; provided that the Master Servicer
shall take no action that is inconsistent with or prejudices the interests of
the Trust Fund or the Certificateholders in any Mortgage Loan or the rights and
interests of the Depositor or the Trustee under this Agreement.

         Without limiting the generality of the foregoing, the Master Servicer,
in its own name or in the name of the Trust, the Depositor or the Trustee, is
hereby authorized and empowered by the Trust, the Depositor and the Trustee,
when the Master Servicer believes it appropriate in its reasonable judgment, to
execute and deliver, on behalf of the Trustee, the Depositor, the
Certificateholders or any of them, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge and all other
comparable instruments, with respect to the Mortgage Loans, and with respect to
the Mortgaged Properties held for the benefit of the Certificateholders. The
Master Servicer shall prepare and deliver to the Depositor and/or the Trustee
such documents requiring execution and delivery by any or all of them as are
necessary or appropriate to enable the Master Servicer to service and administer
the Mortgage Loans. Upon receipt of such documents, the Depositor and/or the
Trustee shall execute such documents and deliver them to the Master Servicer.

         In accordance with the standards of the first paragraph of this Section
3.01, the Master Servicer shall advance or cause to be advanced funds as
necessary for the purpose of effecting the payment of taxes and assessments on
the Mortgaged Properties, which advances shall be reimbursable in the first
instance from related collections from the Mortgagors pursuant to Section 5.03,
and further as provided in Section 5.02. All costs incurred by the Master
Servicer, if any, in effecting the timely payments of taxes and assessments on
the Mortgaged Properties and related insurance premiums shall not, for the
purpose of calculating monthly distributions to the Certificateholders, be added
to the Stated Principal Balance under the related Mortgage Loans,
notwithstanding that the terms of such Mortgage Loans so permit.

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         Section 3.02 DUE-ON-SALE CLAUSES; ASSUMPTION AGREEMENTS.

         (a) Except as otherwise provided in this Section 3.02, when any
property subject to a Mortgage has been or is about to be conveyed by the
Mortgagor, the Master Servicer shall to the extent that it has knowledge of such
conveyance, enforce any due-on-sale clause contained in any Mortgage Note or
Mortgage, to the extent permitted under applicable law and governmental
regulations, but only to the extent that such enforcement will not adversely
affect or jeopardize coverage under any Required Insurance Policy.
Notwithstanding the foregoing, the Master Servicer is not required to exercise
such rights with respect to a Mortgage Loan if the Person to whom the related
Mortgaged Property has been conveyed or is proposed to be conveyed satisfies the
terms and conditions contained in the Mortgage Note and Mortgage related thereto
and the consent of the mortgagee under such Mortgage Note or Mortgage is not
otherwise so required under such Mortgage Note or Mortgage as a condition to
such transfer. In the event that the Master Servicer is prohibited by law from
enforcing any such due-on-sale clause, or if coverage under any Required
Insurance Policy would be adversely affected, or if nonenforcement is otherwise
permitted hereunder, the Master Servicer is authorized, subject to Section
3.02(b), to take or enter into an assumption and modification agreement from or
with the person to whom such property has been or is about to be conveyed,
pursuant to which such person becomes liable under the Mortgage Note and, unless
prohibited by applicable state law, the Mortgagor remains liable thereon,
provided that the Mortgage Loan shall continue to be covered (if so covered
before the Master Servicer enters such agreement) by the applicable Required
Insurance Policies. The Master Servicer, subject to Section 3.02(b), is also
authorized with the prior approval of the insurers under any Required Insurance
Policies to enter into a substitution of liability agreement with such Person,
pursuant to which the original Mortgagor is released from liability and such
Person is substituted as Mortgagor and becomes liable under the Mortgage Note.
Notwithstanding the foregoing, the Master Servicer shall not be deemed to be in
default under this Section 3.02(a) by reason of any transfer or assumption that
the Master Servicer reasonably believes it is restricted by law from preventing.

         (b) Subject to the Master Servicer's duty to enforce any due-on-sale
clause to the extent set forth in Section 3.02(a), in any case in which a
Mortgaged Property has been conveyed to a Person by a Mortgagor, and such Person
is to enter into an assumption agreement or modification agreement or supplement
to the Mortgage Note or Mortgage that requires the signature of the Trustee, or
if an instrument of release signed by the Trustee is required releasing the
Mortgagor from liability on the related Mortgage Loan, the Master Servicer shall
prepare and deliver or cause to be prepared and delivered to the Trustee for
signature and shall direct, in writing, the Trustee to execute the assumption
agreement with the Person to whom the Mortgaged Property is to be conveyed and
such modification agreement or supplement to the Mortgage Note or Mortgage or
other instruments as are reasonable or necessary to carry out the terms of the
Mortgage Note or Mortgage or otherwise to comply with any applicable laws
regarding assumptions or the transfer of the Mortgaged Property to such Person.
In connection with any such assumption, no material term of the Mortgage Note
(including, but not limited to, the Mortgage Rate, the amount of the Scheduled
Payment and any other term affecting the amount or timing of payment on the
Mortgage Loan) may be changed. In addition, the substitute Mortgagor and the
Mortgaged Property must be acceptable to the Master Servicer in accordance with
its servicing standards as then in effect. The Master Servicer shall notify the
Trustee that

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any such substitution or assumption agreement has been completed by forwarding
to the Trustee the original of such substitution or assumption agreement, which
in the case of the original shall be added to the related Mortgage File and
shall, for all purposes, be considered a part of such Mortgage File to the same
extent as all other documents and instruments constituting a part thereof. Any
fee collected by the Master Servicer for entering into an assumption or
substitution of liability agreement will be retained by the Master Servicer as
additional servicing compensation.

         Section 3.03 SUBSERVICERS.

         The Master Servicer shall perform all of its servicing responsibilities
hereunder or may cause a subservicer to perform any such servicing
responsibilities on its behalf, but the use by the Master Servicer of a
subservicer shall not release the Master Servicer from any of its obligations
hereunder and the Master Servicer shall remain responsible hereunder for all
acts and omissions of each subservicer as fully as if such acts and omissions
were those of the Master Servicer. The Master Servicer shall pay all fees of
each subservicer from its own funds, and a subservicer's fee shall not exceed
the Servicing Fee payable to the Master Servicer hereunder.

         At the cost and expense of the Master Servicer, without any right of
reimbursement from its Protected Account, the Master Servicer shall be entitled
to terminate the rights and responsibilities of a subservicer and arrange for
any servicing responsibilities to be performed by a successor subservicer;
provided, however, that nothing contained herein shall be deemed to prevent or
prohibit the Master Servicer, at the Master Servicer's option, from electing to
service the related Mortgage Loans itself. In the event that the Master
Servicer's responsibilities and duties under this Agreement are terminated
pursuant to Section 8.03, the Master Servicer shall at its own cost and expense
terminate the rights and responsibilities of each subservicer effective as of
the date of termination of the Master Servicer. The Master Servicer shall pay
all fees, expenses or penalties necessary in order to terminate the rights and
responsibilities of each subservicer from the Master Servicer's own funds
without reimbursement from the Trust Fund.

         Notwithstanding the foregoing, the Master Servicer shall not be
relieved of its obligations hereunder and shall be obligated to the same extent
and under the same terms and conditions as if it alone were servicing and
administering the Mortgage Loans. The Master Servicer shall be entitled to enter
into an agreement with a subservicer for indemnification of the Master Servicer
by the subservicer and nothing contained in this Agreement shall be deemed to
limit or modify such indemnification.

         Any subservicing agreement and any other transactions or services
relating to the Mortgage Loans involving a subservicer shall be deemed to be
between such subservicer and the Master Servicer alone, and the Trustee shall
not have any obligations, duties or liabilities with respect to such subservicer
including any obligation, duty or liability of the Trustee to pay such
subservicer's fees and expenses. Each subservicing agreement shall provide that
such agreement may be assumed or terminated without cause or penalty by the
Trustee or other Successor Master Servicer in the event the Master Servicer is
terminated in accordance with this Agreement. For purposes of remittances to the
Trustee pursuant to this Agreement, the Master Servicer shall be

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deemed to have received a payment on a Mortgage Loan when a subservicer has
received such payment.

         Section 3.04 DOCUMENTS, RECORDS AND FUNDS IN POSSESSION OF THE MASTER
SERVICER TO BE HELD FOR TRUSTEE.

         Notwithstanding any other provisions of this Agreement, the Master
Servicer shall transmit to the Trustee or the Custodian on behalf of the Trustee
as required by this Agreement all documents and instruments in respect of a
Mortgage Loan coming into the possession of the Master Servicer from time to
time and shall account fully to the Trustee for any funds received by the Master
Servicer or that otherwise are collected by the Master Servicer as Liquidation
Proceeds, Insurance Proceeds or Subsequent Recoveries in respect of any such
Mortgage Loan. 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
or Subsequent Recoveries, including but not limited to, any funds on deposit in
the Protected Account, shall be held by the Master Servicer for and on behalf of
the Trustee and shall be and remain the sole and exclusive property of the
Trustee, subject to the applicable provisions of this Agreement. The Master
Servicer also agrees that it shall not create, incur or subject any Mortgage
File or any funds that are deposited in the Protected Account or in any Escrow
Account, or any funds that otherwise are or may become due or payable to the
Trustee for the benefit of the Certificateholders, to any claim, lien, security
interest, judgment, levy, writ of attachment or other encumbrance, or assert by
legal action or otherwise any claim or right of set off against any Mortgage
File or any funds collected on, or in connection with, a Mortgage Loan, except,
however, that the Master Servicer shall be entitled to set off against and
deduct from any such funds any amounts that are properly due and payable to the
Master Servicer under this Agreement.

         Section 3.05 MAINTENANCE OF HAZARD INSURANCE.

         The Master Servicer shall cause to be maintained, for each Mortgage
Loan, hazard insurance on buildings upon, or comprising part of, the Mortgaged
Property against loss by fire, hazards of extended coverage and such other
hazards as are customary in the area where the related Mortgaged Property is
located with an insurer which is licensed to do business in the state where the
related Mortgaged Property is located. Each such policy of standard hazard
insurance shall contain, or have an accompanying endorsement that contains, a
standard mortgagee clause. The Master Servicer shall also cause flood insurance
to be maintained on property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan, to the extent described below. Pursuant to
Section 4.01, any amounts collected by the Master Servicer under any such
policies (other than the amounts to be applied to the restoration or repair of
the related Mortgaged Property or property thus acquired or amounts released to
the Mortgagor in accordance with the Master Servicer's normal servicing
procedures) shall be deposited in the Protected Account. Any cost incurred by
the Master Servicer in maintaining any such insurance shall not, for the purpose
of calculating monthly distributions to the Certificateholders or remittances to
the Trustee for their benefit, be added to the principal balance of the Mortgage
Loan, notwithstanding that the terms of the Mortgage Loan so permit. Such costs
shall be recoverable by the Master Servicer out of late payments by the related
Mortgagor or out of Liquidation Proceeds to the extent

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permitted by Section 4.02. It is understood and agreed that no earthquake or
other additional insurance is to be required of any Mortgagor or maintained on
property acquired in respect of a Mortgage other than pursuant to such
applicable laws and regulations as shall at any time be in force and as shall
require such additional insurance. If the Mortgaged Property is located at the
time of origination of the Mortgage Loan in a federally designated special flood
hazard area and such area is participating in the national flood insurance
program, the Master Servicer shall cause flood insurance to be maintained with
respect to such Mortgage Loan. Such flood insurance shall be in an amount equal
to the least of (i) the Stated Principal Balance of the related Mortgage Loan,
(ii) minimum amount required to compensate for damage or loss on a replacement
cost basis or (iii) the maximum amount of such insurance available for the
related Mortgaged Property under the Flood Disaster Protection Act of 1973, as
amended.

         In the event that the Master Servicer shall obtain and maintain a
blanket policy insuring against hazard losses on all of the Mortgage Loans, it
shall conclusively be deemed to have satisfied its obligations as set forth in
the first sentence of this Section 3.05, it being understood and agreed that
such policy may contain a deductible clause on terms substantially equivalent to
those commercially available and maintained by comparable servicers. If such
policy contains a deductible clause, the Master Servicer shall, in the event
that there shall not have been maintained on the related Mortgaged Property a
policy complying with the first sentence of this Section 3.05, and there shall
have been a loss that would have been covered by such policy, deposit in the
Protected Account the amount not otherwise payable under the blanket policy
because of such deductible clause. Such deposit shall be from the Master
Servicer's own funds without reimbursement therefor. In connection with its
activities as administrator and servicer of the Mortgage Loans, the Master
Servicer agrees to present, on behalf of itself, the Depositor and the Trustee
for the benefit of the Certificateholders claims under any such blanket policy.

         Section 3.06 PRESENTMENT OF CLAIMS AND COLLECTION OF PROCEEDS.

         The Master Servicer shall prepare and present on behalf of the Trustee
and the Certificateholders 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 Insurance
Policies. Any proceeds disbursed to the Master Servicer in respect of such
Insurance Policies shall be promptly deposited in the Protected 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 3.07 MAINTENANCE OF THE PRIMARY MORTGAGE INSURANCE POLICIES.

         (a) The Master Servicer shall not take any action that would result in
noncoverage under any applicable Primary Mortgage Insurance Policy of any loss
which, but for the actions of the Master Servicer would have been covered
thereunder. The Master Servicer shall use its best efforts to keep in force and
effect (to the extent that the Mortgage Loan requires the Mortgagor to maintain
such insurance), Primary Mortgage Insurance applicable to each Mortgage Loan.
The Master Servicer shall not cancel or refuse to renew any such Primary
Mortgage Insurance Policy

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that is in effect at the date of the initial issuance of the Mortgage Note and
is required to be kept in force hereunder.

         (b) The Master Servicer agrees to present on behalf of the Trustee, the
Certificateholders claims to the insurer under any Primary Mortgage Insurance
Policies and, in this regard, to take such reasonable action as shall be
necessary to permit recovery under any Primary Mortgage Insurance Policies
respecting defaulted Mortgage Loans. Pursuant to Section 4.01, any amounts
collected by the Master Servicer under any Primary Mortgage Insurance Policies
shall be deposited in the Protected Account, subject to withdrawal pursuant to
Section 4.02 hereof.

         Section 3.08 FIDELITY BOND, ERRORS AND OMISSIONS INSURANCE.

         The Master Servicer shall maintain, at its own expense, a blanket
fidelity bond and an errors and omissions insurance policy, with broad coverage
with responsible companies on all officers, employees or other persons acting in
any capacity with regard to the Mortgage Loans and who handle funds, money,
documents and papers relating to the Mortgage Loans. The fidelity bond and
errors and omissions insurance shall be in the form of the Mortgage Banker's
Blanket Bond and shall protect and insure the Master Servicer against losses,
including forgery, theft, embezzlement, fraud, errors and omissions and
negligent acts of such persons. Such fidelity bond shall also protect and insure
the Master Servicer against losses in connection with the failure to maintain
any insurance policies required pursuant to this Agreement and the release or
satisfaction of a Mortgage Loan which is not in accordance with Accepted
Servicing Practices. No provision of this Section 3.08 requiring the fidelity
bond and errors and omissions insurance shall diminish or relieve the Master
Servicer from its duties and obligations as set forth in this Agreement. The
minimum coverage under any such bond and insurance policy shall be at least
equal to the corresponding amounts required by Accepted Servicing Practices. The
Master Servicer shall deliver to the Trustee a certificate from the surety and
the insurer as to the existence of the fidelity bond and errors and omissions
insurance policy and shall obtain a statement from the surety and the insurer
that such fidelity bond or insurance policy shall in no event be terminated or
materially modified without thirty days prior written notice to the Trustee. The
Master Servicer shall notify the Trustee within five business days of receipt of
notice that such fidelity bond or insurance policy will be, or has been,
materially modified or terminated. The Trustee for the benefit of the
Certificateholders must be named as loss payees on the fidelity bond and as
additional insured on the errors and omissions policy.

         Section 3.09 REALIZATION UPON DEFAULTED MORTGAGE LOANS; DETERMINATION
OF EXCESS LIQUIDATION PROCEEDS AND REALIZED LOSSES; REPURCHASES OF CERTAIN
MORTGAGE LOANS.

         (a) The Master Servicer shall use reasonable efforts to foreclose upon
or otherwise comparably convert the ownership of properties securing such of the
Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments. In
connection with such foreclosure or other conversion, the Master Servicer shall
follow such practices and procedures as it shall deem necessary or advisable and
as shall be normal and usual in its general mortgage servicing activities and
the requirements of the insurer under any Required Insurance Policy; provided
that the Master

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Servicer shall not be required to expend its own funds in connection with any
foreclosure or towards the restoration of any property unless it shall determine
(i) that such restoration and/or foreclosure will increase the proceeds of
liquidation of the Mortgage Loan after reimbursement to itself of such expenses
and (ii) that such expenses will be recoverable to it through Insurance
Proceeds, Liquidation Proceeds (respecting which it shall have priority for
purposes of withdrawals from the Protected Account pursuant to Section 4.02). If
the Master Servicer reasonably believes that Liquidation Proceeds with respect
to any such Mortgage Loan would not be increased as a result of such foreclosure
or other action, such Mortgage Loan will be charged-off and will become a
Liquidated Loan. The Master Servicer will give notice of any such charge-off to
the Trustee. The Master Servicer shall be responsible for all other costs and
expenses incurred by it in any such proceedings; provided that such costs and
expenses shall be Servicing Advances and that it shall be entitled to
reimbursement thereof from the proceeds of liquidation of the related Mortgaged
Property, as contemplated in Section 4.02. If the Master Servicer has knowledge
that a Mortgaged Property that the Master Servicer is contemplating acquiring in
foreclosure or by deed- in-lieu of foreclosure is located within a one-mile
radius of any site with environmental or hazardous waste risks known to the
Master Servicer, the Master Servicer will, prior to acquiring the Mortgaged
Property, consider such risks and only take action in accordance with its
established environmental review procedures.

         With respect to any REO Property, the deed or certificate of sale shall
be taken in the name of the Trustee for the benefit of the Certificateholders
(or the Trustee's nominee on behalf of the Certificateholders). The Trustee's
name shall be placed on the title to such REO Property solely as the Trustee
hereunder and not in its individual capacity. The Master Servicer shall ensure
that the title to such REO Property references this Agreement and the Trustee's
capacity hereunder. Pursuant to its efforts to sell such REO Property, the
Master Servicer shall either itself or through an agent selected by the Master
Servicer protect and conserve such REO Property in the same manner and to such
extent as is customary in the locality where such REO Property is located and
may, incident to its conservation and protection of the interests of the
Certificateholders, rent the same, or any part thereof, as the Master Servicer
deems to be in the best interest of the Master Servicer and the
Certificateholders for the period prior to the sale of such REO Property. The
Master Servicer shall prepare for and deliver to the Trustee a statement with
respect to each REO Property that has been rented showing the aggregate rental
income received and all expenses incurred in connection with the management and
maintenance of such REO Property at such times as is necessary to enable the
Trustee to comply with the reporting requirements of the REMIC Provisions. The
net monthly rental income, if any, from such REO Property shall be deposited in
the Protected Account no later than the close of business on each Determination
Date. The Master Servicer shall perform the tax reporting and withholding
related to foreclosures, abandonments and cancellation of indebtedness income as
specified by Sections 1445, 6050J and 6050P of the Code by preparing and filing
such tax and information returns, as may be required.

         In the event that the Trust Fund acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property
prior to three years after its acquisition by the Trust Fund or, at the expense
of the Trust Fund, request more than 60 days prior to the day on which such
three-year period would otherwise expire, an extension of the three-year grace
period

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unless the Trustee shall have been supplied with an Opinion of Counsel addressed
to the Trustee (such opinion not to be an expense of the Trustee) to the effect
that the holding by the Trust Fund of such Mortgaged Property subsequent to such
three-year period will not result in the imposition of taxes on "prohibited
transactions" of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI as
defined in section 860F of the Code or cause any of REMIC I, REMIC II, REMIC
III, REMIC IV, REMIC V or REMIC VI to fail to qualify as a REMIC at any time
that any Certificates are outstanding, in which case the Trust Fund may continue
to hold such Mortgaged Property (subject to any conditions contained in such
Opinion of Counsel). Notwithstanding any other provision of this Agreement, no
Mortgaged Property acquired by the Trust Fund shall be rented (or allowed to
continue to be rented) or otherwise used for the production of income by or on
behalf of the Trust Fund in such a manner or pursuant to any terms that would
(i) cause such Mortgaged Property to fail to qualify as "foreclosure property"
within the meaning of section 860G(a)(8) of the Code or (ii) subject any of
REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to the imposition of
any federal, state or local income taxes on the income earned from such
Mortgaged Property under section 860G(c) of the Code or otherwise, unless the
Master Servicer has agreed to indemnify and hold harmless the Trust Fund with
respect to the imposition of any such taxes.

         The decision of the Master Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Master Servicer that
the proceeds of such foreclosure would exceed the costs and expenses of bringing
such a proceeding. The income earned from the management of any Mortgaged
Properties acquired through foreclosure or other judicial proceeding, net of
reimbursement to the Master Servicer for expenses incurred (including any
property or other taxes) in connection with such management and net of
unreimbursed Servicing Fees, Advances, Servicing Advances and any management fee
paid or to be paid with respect to the management of such Mortgaged Property,
shall be applied to the payment of principal of, and interest on, the related
defaulted Mortgage Loans (with interest accruing as though such Mortgage Loans
were still current) and all such income shall be deemed, for all purposes in the
Agreement, to be payments on account of principal and interest on the related
Mortgage Notes and shall be deposited into the Protected Account. To the extent
the income received during a Prepayment Period is in excess of the amount
attributable to amortizing principal and accrued interest at the related
Mortgage Rate on the related Mortgage Loan, such excess shall be considered to
be a partial Principal Prepayment for all purposes hereof.

         The Liquidation Proceeds from any liquidation of a Mortgage Loan, net
of any payment to the Master Servicer as provided above, shall be deposited in
the Protected Account on the next succeeding Determination Date following
receipt thereof for distribution on the related Distribution Date, except that
any Excess Liquidation Proceeds shall be retained by the Master Servicer as
additional servicing compensation.

         The proceeds of any Liquidated Loan, as well as any recovery resulting
from a partial collection of Liquidation Proceeds or any income from an REO
Property, will be applied in the following order of priority: first, to
reimburse the Master Servicer for any related unreimbursed Servicing Advances
and Servicing Fees, pursuant to Section 4.02 or this Section 3.09; second, to
reimburse the Master Servicer for any unreimbursed Advances, pursuant to Section
4.02 or this Section 3.09; third, to accrued and unpaid interest (to the extent
no Advance has been made for

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such amount) on the Mortgage Loan or related REO Property, at the Net Mortgage
Rate to the first day of the month in which such amounts are required to be
distributed; and fourth, as a recovery of principal of the Mortgage Loan.

         (b) On each Determination Date, the Master Servicer shall determine the
respective aggregate amounts of Excess Liquidation Proceeds and Realized Losses,
if any, for the related Prepayment Period.

         (c) The Master Servicer has no intent to foreclose on any Mortgage Loan
based on the delinquency characteristics as of the Closing Date; provided, that
the foregoing does not prevent the Master Servicer from initiating foreclosure
proceedings on any date hereafter if the facts and circumstances of such
Mortgage Loans including delinquency characteristics in the Master Servicer's
discretion so warrant such action.

         Section 3.10 SERVICING COMPENSATION.

         As compensation for its activities hereunder, the Master Servicer shall
be entitled to retain or withdraw from the Protected Account out of each payment
of interest on a Mortgage Loan included in the Trust Fund an amount equal to the
Servicing Fee.

         Additional servicing compensation in the form of any Excess Liquidation
Proceeds, assumption fees, late payment charges, all income and gain net of any
losses realized from Permitted Investments with respect to funds in or credited
to the Protected Account shall be retained by the Master Servicer to the extent
not required to be deposited in the Protected Account pursuant to Section 4.02.
The Master Servicer shall be required to pay all expenses incurred by it in
connection with its servicing activities hereunder (including payment of any
premiums for hazard insurance, as required by Section 3.05 and maintenance of
the other forms of insurance coverage required by Section 3.07) and shall not be
entitled to reimbursement therefor except as specifically provided in Section
4.02.

         Section 3.11 REO PROPERTY.

         (a) In the event the Trust Fund acquires ownership of any REO Property
in respect of any related Mortgage Loan, the deed or certificate of sale shall
be issued to the Trustee, or to its nominee, on behalf of the related
Certificateholders. The Master Servicer shall sell any REO Property as
expeditiously as possible and in accordance with the provisions of this
Agreement. Pursuant to its efforts to sell such REO Property, the Master
Servicer shall protect and conserve such REO Property in the manner and to the
extent required herein, in accordance with the REMIC Provisions.

         (b) The Master Servicer shall deposit all funds collected and received
in connection with the operation of any REO Property into the Protected Account.

         (c) The Master Servicer, upon the final disposition of any REO
Property, shall be entitled to reimbursement for any related unreimbursed
Advances, unreimbursed Servicing Advances or Servicing Fees from Liquidation
Proceeds received in connection with the final disposition of such REO Property;
provided, that any such unreimbursed Advances or Servicing

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Fees 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.

         Section 3.12 LIQUIDATION REPORTS.

         Upon the foreclosure of any Mortgaged Property or the acquisition
thereof by the Trust Fund pursuant to a deed-in-lieu of foreclosure, the Master
Servicer shall submit a liquidation report to the Trustee containing such
information as shall be mutually acceptable to the Master Servicer and the
Trustee with respect to such Mortgaged Property.

         Section 3.13 ANNUAL CERTIFICATE AS TO COMPLIANCE.

         (a) The Master Servicer will deliver to the Trustee and the Rating
Agencies not later than March 1, 2006 and not later than March 1 of each year
thereafter, a certificate of a Servicing Officer stating, as to each signatory
thereof, that (i) a review of the activities of the Master Servicer during the
preceding calendar year or portion thereof and of its performance under this
Agreement has been made under such officer's supervision, and (ii) to the best
of such officer's knowledge, based on such review, the Master Servicer has
fulfilled all of its obligations under this Agreement in all material respects
throughout such year or portion thereof, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such
officer and the nature and status thereof except for such defaults as such
officer in its good faith judgment believe to be immaterial.

         (b) Copies of such statements shall be provided to any
Certificateholder upon request by the Master Servicer or by the Trustee at the
Master Servicer's expense if the Master Servicer failed to provide such copies
(unless (i) the Master Servicer shall have failed to provide the Trustee with
such statement or (ii) the Trustee shall be unaware of the Master Servicer's
failure to provide such statement).

         Section 3.14 ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS' SERVICING
REPORT.

         Not later than March 1, 2006 and not later than March 1 of each year
thereafter, the Master Servicer at its expense shall cause a firm of independent
public accountants which is a member of the American Institute of Certified
Public Accountants to furnish a statement to the Trustee and the Rating Agencies
to the effect that, with respect to the preceding calendar year, such firm has
examined certain documents and records relating to the Master Servicer's
servicing of mortgage loans of the same type as the Mortgage Loans pursuant to
servicing agreements substantially similar to this Agreement, which agreements
may include this Agreement, and that, on the basis of such an examination,
conducted substantially in compliance with the Uniform Single Attestation
Program for Mortgage Bankers, such firm is of the opinion that the Master
Servicer's servicing has been conducted in compliance with the agreements
examined pursuant to this Section 3.14, except for (i) such exceptions as such
firm shall believe to be immaterial,(ii) such other exceptions as shall be set
forth in such statement and (iii) such exceptions that the Uniform Single
Attestation Program for Mortgage Bankers requires it to report. Copies of such
statements shall be provided to any Certificateholder upon request by the

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Master Servicer or by the Trustee at the Master Servicer's expense if the Master
Servicer failed to provide such copies (unless (i) the Master Servicer shall
have failed to provide the Trustee with such statement or (ii) the Trustee shall
be unaware of the Master Servicer's failure to provide such statement).

         Section 3.15 BOOKS AND RECORDS.

         The Master Servicer shall be responsible for maintaining, and shall
maintain, a complete set of books and records for the Mortgage Loans which shall
be appropriately identified in the Master Servicer's computer system to clearly
reflect the ownership of the Mortgage Loans by the Trust. In particular, the
Master Servicer shall maintain in its possession, available for inspection by
the Trustee and shall deliver to the Trustee upon demand, evidence of compliance
with all federal, state and local laws, rules and regulations. To the extent
that original documents are not required for purposes of realization of
Liquidation Proceeds or Insurance Proceeds, documents maintained by the Master
Servicer may be in the form of microfilm or microfiche or such other reliable
means of recreating original documents, including, but not limited to, optical
imagery techniques so long as the Master Servicer complies with the requirements
of Accepted Servicing Practices.

         The Master Servicer shall maintain with respect to each Mortgage Loan
and shall make available for inspection by the Trustee the related servicing
file during the time such Mortgage Loan is subject to this Agreement and
thereafter in accordance with applicable law.

         Section 3.16 REPORTS FILED WITH SECURITIES AND EXCHANGE COMMISSION.

         (a) The Depositor shall prepare or cause to be prepared the initial
current report on Form 8-K. Within 15 days after each Distribution Date, the
Trustee shall, in accordance with industry standards, file with the Commission
via the Electronic Data Gathering and Retrieval System ("EDGAR"), a Form 8-K
with a copy of the monthly statement to be furnished by the Trustee to the
Certificateholders for such Distribution Date as an exhibit thereto. Prior to
January 30 in each year commencing in 2006, the Trustee shall, in accordance
with industry standards, file a Form 15 Suspension Notice with respect to the
Trust Fund, if applicable. Prior to (i) March 15, 2006 and (ii) unless and until
a Form 15 Suspension Notice shall have been filed, prior to March 15 of each
year thereafter, the Master Servicer shall provide the Trustee with a Master
Servicer Certification, together with a copy of the annual independent
accountant's servicing report and annual statement of compliance to be delivered
by the Master Servicer pursuant to Sections 3.13 and 3.14. Prior to (i) March
31, 2006 and (ii) unless and until a Form 15 Suspension Notice shall have been
filed, March 31 of each year thereafter, the Trustee shall, subject to
subsection (d) below, file a Form 10-K, in substance conforming to industry
standards, with respect to the Trust Fund. Such Form 10-K shall include the
Master Servicer Certification and other documentation provided by the Master
Servicer pursuant to the second preceding sentence and the Form 10-K
certification signed by the Depositor. The Depositor hereby grants to the
Trustee a limited power of attorney to execute and file each such document on
behalf of the Depositor. Such power of attorney shall continue until either the
earlier of (i) receipt by the Trustee from the Depositor of written termination
of such power of attorney and (ii) the termination of the Trust Fund. The
Depositor agrees to promptly furnish to the Trustee, from

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time to time upon request, such further information, reports and financial
statements within its control related to this Agreement, the Mortgage Loans as
the Trustee reasonably deems appropriate to prepare and file all necessary
reports with the Commission. The Trustee shall have no responsibility to file
any items other than those specified in this Section 3.16; provided, however,
the Trustee will cooperate with the Depositor in connection with any additional
filings with respect to the Trust Fund as the Depositor deems necessary under
the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Copies of
all reports filed by the Trustee under the Exchange Act shall be sent to: the
Depositor c/o Bear, Stearns & Co. Inc., Attn: Managing Director-Analysis and
Control, One Metrotech Center North, Brooklyn, New York 11202-3859. Fees and
expenses incurred by the Trustee in connection with this Section 3.16 shall not
be reimbursable from the Trust Fund.

         (b) In connection with the filing of any 10-K hereunder, the Trustee
shall sign a certification (in the form attached hereto as Exhibit K) for the
Depositor regarding certain aspects of the Form 10-K certification signed by the
Depositor, provided, however, that the Trustee shall not be required to
undertake an analysis of any accountant's report attached as an exhibit to the
Form 10-K.

         (c) (i)The Trustee shall indemnify and hold harmless the Depositor and
its officers, directors and affiliates from and against any losses, damages,
penalties, fines, forfeitures, reasonable and necessary legal fees and related
costs, judgments and other costs and expenses arising out of or based upon a
breach of the Trustee's obligations under this Section 3.16 or the Trustee's
negligence, bad faith or willful misconduct in connection therewith.

                           (ii) The Depositor shall indemnify and hold harmless
                  the Trustee and its officers, directors and affiliates from
                  and against any losses, damages, penalties, fines,
                  forfeitures, reasonable and necessary legal fees and related
                  costs, judgments and other costs and expenses arising out of
                  or based upon a breach of the obligations of the Depositor
                  under this Section 3.16 or the Depositor's negligence, bad
                  faith or willful misconduct in connection therewith.

                           (iii) The Master Servicer shall indemnify and hold
                  harmless the Trustee and the Depositor and their respective
                  officers, directors and affiliates from and against any
                  losses, damages, penalties, fines, forfeitures, reasonable and
                  necessary legal fees and related costs, judgments and other
                  costs and expenses arising out of or based upon a breach of
                  the obligations of the Master Servicer under this Section 3.16
                  or the Master Servicer's negligence, bad faith or willful
                  misconduct in connection therewith.

                           (iv) If the indemnification provided for herein is
                  unavailable or insufficient to hold harmless the Depositor or
                  the Trustee, as applicable, then the defaulting party, in
                  connection with a breach of its respective obligations under
                  this Section 3.16 or its respective negligence, bad faith or
                  willful misconduct in connection therewith, agrees that it
                  shall contribute to the amount paid or payable by the other
                  parties as a result of the losses, claims,

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                  damages or liabilities of the other party in such proportion
                  as is appropriate to reflect the relative fault and the
                  relative benefit of the Depositor on the one hand and the
                  Trustee on the other.

         (d) Nothing shall be construed from the foregoing subsections (a), (b)
and (c) to require the Trustee or any officer, director or Affiliate thereof to
sign any Form 10-K or any certification contained therein. Furthermore, the
inability of the Trustee to file a Form 10-K as a result of the lack of required
information as set forth in Section 3.16(a) or required signatures on such Form
10-K or any certification contained therein shall not be regarded as a breach by
the Trustee of any obligation under this Agreement.

         (e) Notwithstanding the provisions of Section 11.01, this Section 3.16
may be amended without the consent of the Certificateholders.

         Section 3.17 UCC.

         The Trustee agrees to file continuation statements for any Uniform
Commercial Code financing statements which the Seller has informed the Trustee
were filed on the Closing Date in connection with the Trust. The Seller shall
file any financing statements or amendments thereto required by any change in
the Uniform Commercial Code.

         Section 3.18 OPTIONAL PURCHASE OF CERTAIN MORTGAGE LOANS.

         With respect to any Mortgage Loans which as of the first day of a
Fiscal Quarter is delinquent in payment by 90 days or more or is an REO
Property, EMC shall have the right to purchase any Mortgage Loan from the Trust
which becomes 90 days or more delinquent or becomes 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 Fiscal 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 Fiscal Quarter.

         In addition, EMC shall, at its option, purchase any Mortgage Loan from
the Trust if the first Due Date for such Mortgage Loan is subsequent to the
Cut-off Date and the initial Scheduled Payment is not made within thirty (30)
days of such Due Date. Such purchase shall be made at a price equal to the
Purchase Price.

         If at any time EMC remits to the Master Servicer a payment for deposit
in the Protected Account covering the amount of the Purchase Price for such a
Mortgage Loan, and EMC provides to the Trustee a certification signed by a
Servicing Officer stating that the amount of such payment has been deposited in
the Protected Account, then the Trustee shall execute the assignment of such
Mortgage Loan prepared and delivered to the Trustee, at the request of EMC,
without recourse, representation or warranty, to EMC which shall succeed to all
the Trustee's right, title and interest in and to such Mortgage Loan, and all
security and documents relative

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thereto. Such assignment shall be an assignment outright and not for security.
EMC will thereupon own such Mortgage, and all such security and documents, free
of any further obligation to the Trustee or the Certificateholders with respect
thereto.

         Section 3.19 OBLIGATIONS OF THE MASTER SERVICER IN RESPECT OF MORTGAGE
RATES AND SCHEDULED PAYMENTS.

         In the event that a shortfall in any collection on or liability with
respect to any Mortgage Loan results from or is attributable to adjustments to
Mortgage Rates, Scheduled Payments or Stated Principal Balances that were made
by the Master Servicer in a manner not consistent with the terms of the related
Mortgage Note and this Agreement, the Master Servicer, upon discovery or receipt
of notice thereof, immediately shall deliver to the Trustee for deposit in the
Distribution Account from its own funds the amount of any such shortfall and
shall indemnify and hold harmless the Trust Fund, the Trustee, the Depositor and
any successor Master Servicer in respect of any such liability. Such indemnities
shall survive the termination or discharge of this Agreement. Notwithstanding
the foregoing, this Section 3.19 shall not limit the ability of the Master
Servicer to seek recovery of any such amounts from the related Mortgagor under
the terms of the related Mortgage Note and Mortgage, to the extent permitted by
applicable law.

         Section 3.20 RESERVE FUND; PAYMENTS TO AND FROM SWAP ADMINISTRATOR.

         (a) On or before the Closing Date, the Trustee shall establish a
Reserve Fund on behalf of the Holders of the Certificates. The Reserve Fund must
be an Eligible Account. The Reserve Fund shall be entitled "Reserve Fund,
LaSalle Bank National Association as Trustee for the benefit of holders of Bear
Stearns Asset Backed Securities I LLC, Asset-Backed Certificates, Series
2005-HE2". The Trustee shall deposit in the Reserve Fund all payments received
from the Swap Administrator that are payable to the Trust Fund pursuant to the
Swap Administration Agreement. On each Distribution Date the Trustee shall remit
such amounts received from the Swap Administrator to the Holders of the Class A
Certificates, Class M Certificates and Class CE Certificates in the manner
provided in clause (b) below. In addition, on each Distribution Date as to which
there is a Basis Risk Shortfall Carry Forward Amount payable to any Class of
Class A Certificates and/or Class M Certificates, the Trustee shall deposit the
amounts distributable pursuant to clauses (C) and (D) of Section 5.04(a)(4) into
the Reserve Fund and the Trustee has been directed by the Class CE
Certificateholder to distribute such amounts to the Holders of the Class A
and/or Class M Certificates in the amounts and priorities set forth in clauses
(C) and (D) of Section 5.04(a)(4). Any amount paid to the Holders of Class A
Certificates and/or Class M Certificates pursuant to the preceding sentence in
respect of Basis Risk Shortfall Carry Forward Amount shall be treated as
distributed to the Class CE Certificateholder in respect of the Class CE
Certificates and paid by the Class CE Certificateholder to the Holders of the
Class A Certificates and/or Class M Certificates. Any payments to the Holders of
the Class A Certificates and/or Class M Certificates in respect of Basis Risk
Shortfall Carry Forward Amount, whether pursuant to the second preceding
sentence or pursuant to subsection (b) below, shall not be payments with respect
to a "regular interest" in a REMIC within the meaning of Code Section
860(G)(a)(1).

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         (b) Net Swap Payments and Swap Termination Payments (other than Swap
Termination Payments resulting from a Swap Provider Trigger Event) payable by
the Swap Administrator to the Swap Provider pursuant to the Swap Agreement shall
be deducted from Interest Funds, and to the extent of any such remaining amounts
due, from Principal Funds, prior to any distributions to the Certificateholders.
On each Distribution Date, such amounts will be remitted to the Swap
Administrator, first to make any Net Swap Payment owed to the Swap Provider
pursuant to the Swap Agreement for such Distribution Date, and second to make
any Swap Termination Payment (not due to a Swap Provider Trigger Event) owed to
the Swap Provider pursuant to the Swap Agreement for such Distribution Date. For
federal income tax purposes, such amounts paid to the Swap Administrator on each
Distribution Date shall first be deemed paid to the Swap Administrator in
respect of REMIC VI Regular Interest IO to the extent of the amount
distributable on such REMIC VI Regular Interest IO on such Distribution Date,
and any remaining amount shall be deemed paid to the Swap Administrator in
respect of a Class IO Distribution Amount. Any Swap Termination Payment
triggered by a Swap Provider Trigger Event owed to the Swap Provider pursuant to
the Swap Agreement will be subordinated to distributions to the Holders of the
Offered Certificates and shall be paid as set forth under Section 5.04(a)(4).

         (c) Net Swap Payments payable by the Swap Provider to the Swap
Administrator pursuant to the Swap Agreement will be deposited by the Swap
Administrator into the Swap Account pursuant to the Swap Administration
Agreement. The Swap Administrator shall, to the extent provided in the Swap
Administration Agreement, remit amounts on deposit in the Swap Account to the
Trustee for deposit into the Reserve Fund. On each Distribution Date, to the
extent required, the Trustee shall withdraw such amounts from the Reserve Fund
to distribute to the Certificates in the following order of priority:

                           (i) first, to each Class of Class A Certificates, to
                  pay any Interest Carry Forward Amount, on a pro rata basis, to
                  the extent not fully paid pursuant to Section 5.04(a)(1) as a
                  result of a Realized Loss;

                           (ii) second, sequentially to the Class M-1, Class
                  M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and
                  Class M-8 Certificates, in that order, to pay Current Interest
                  and any Interest Carry Forward Amount to the extent not fully
                  paid pursuant to Section 5.04(a)(1) as a result of a Realized
                  Loss;

                           (iii) third, to pay, first to the Class A
                  Certificates, on a pro rata basis, based on the amount of
                  Basis Risk Shortfall Carry Forward Amount for each such class,
                  and second, sequentially to the Class M-1, Class M-2, Class
                  M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8
                  Certificates, in that order, any Basis Risk Shortfall Carry
                  Forward Amounts for such Distribution Date; and

                           (iv) fourth, to pay as principal to the Class A
                  Certificates and Class M Certificates as part of the Extra
                  Principal Distribution Amount payable under Section 5.04(a)(2)
                  until the Overcollateralization Target Amount has been
                  reached, to the extent not paid from Excess Cashflow pursuant
                  to Section 5.04(a)(2) for such Distribution Date. For the
                  avoidance of doubt, any amounts

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                  distributable pursuant to this clause fourth shall be limited
                  to rebuilding overcollateralization to the extent
                  overcollateralization has been reduced through Realized
                  Losses.

         Any amounts payable to the Trust Fund under the Swap Agreement as
described in clauses (i), (ii) and (iv) above shall not exceed an amount equal
to $64,800,000 in the aggregate.

         (d) The Reserve Fund is an "outside reserve fund" within the meaning of
Treasury Regulation Section 1.860G-2(h) and shall be an asset of the Trust Fund
but not an asset of any REMIC. The Trustee on behalf of the Trust shall be the
nominal owner of the Reserve Fund. The Class CE Certificateholder shall be the
beneficial owner of the Reserve Fund, subject to the power of the Trustee to
transfer amounts under Section 5.04. Amounts in the Reserve Fund shall, at the
direction of the Class CE Certificateholder, be invested in Permitted
Investments that mature no later than the Business Day prior to the next
succeeding Distribution Date. All net income and gain from such investments
shall be distributed to the Class CE Certificateholder, not as a distribution in
respect of any interest in any REMIC, on such Distribution Date. All amounts
earned on amounts on deposit in the Reserve Fund shall be taxable to the Class
CE Certificateholder. Any losses on such investments shall be deposited in the
Reserve Fund by the Class CE Certificateholder out of its own funds immediately
as realized. The Swap Account, which is created and maintained by the Swap
Administrator pursuant to the Swap Administration Agreement, is an "outside
reserve fund" within the meaning of Treasury Regulation Section 1.860G-2(h) and
shall not be an asset of any REMIC created hereunder. The beneficial owner of
the Swap Account is identified, and other matters relating to the Swap Account
are addressed, in the Swap Administration Agreement.

         (e) The Trustee shall treat the holders of Certificates (other than the
Class P, Class CE and Class R Certificates) as having entered into a notional
principal contract with respect to the holders of the Class CE Certificates.
Pursuant to each such notional principal contract, all holders of Certificates
(other than the Class P, Class CE and Class R Certificates) shall be treated as
having agreed to pay, on each Distribution Date, to the holder of the Class CE
Certificates an aggregate amount equal to the excess, if any, of (i) the amount
payable on such Distribution Date on the REMIC III Regular Interest
corresponding to such Class of Certificates over (ii) the amount payable on such
Class of Certificates on such Distribution Date (such excess, a "Class IO
Distribution Amount"). A Class IO Distribution Amount payable from interest
collections shall be allocated pro rata among such Certificates based on the
amount of interest otherwise payable to such Certificates, and a Class IO
Distribution Amount payable from principal collections shall be allocated to the
most subordinate Class of Certificates with an outstanding principal balance to
the extent of such balance. In addition, pursuant to such notional principal
contract, the holder of the Class CE Certificates shall be treated as having
agreed to pay Basis Risk Shortfall Carry Forward Amounts to the holders of the
Certificates (other than the Class P and Class R Certificates) in accordance
with the terms of this Agreement. Any payments to the Certificates from amounts
deemed received in respect of this notional principal contract shall not be
payments with respect to a "regular interest" in a REMIC within the meaning of
Code Section 860G(a)(1). However, any payment from the Certificates (other than
the Class CE, Class P and Class R Certificates) of a Class IO Distribution
Amount shall be treated for tax purposes as having been received by the holders
of such Certificates in respect of their interests in REMIC III and as having
been paid by such holders to

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the Swap Administrator pursuant to the notional principal contract. Thus, each
Certificate (other than the Class P and Class R Certificates) shall be treated
as representing not only ownership of regular interests in REMIC III, but also
ownership of an interest in, and obligations with respect to, a notional
principal contract.

         Section 3.21 ADVANCING FACILITY.

         (a) The Master Servicer and/or the Trustee on behalf of the Trust Fund,
in either case, with the consent of the Master Servicer in the case of the
Trustee and, in each case, with notice to the Rating Agencies, is hereby
authorized to enter into a facility (the "Advancing Facility") with any Person
which provides that such Person (an "Advancing Person") may fund Advances and/or
Servicing Advances to the Trust Fund under this Agreement, although no such
facility shall reduce or otherwise affect the Master Servicer's obligation to
fund such Advances and/or Servicing Advances. If the Master Servicer enters into
such an Advancing Facility pursuant to this Section 3.21, upon reasonable
request of the Advancing Person, the Trustee shall execute a letter of
acknowledgment, confirming its receipt of notice of the existence of such
Advancing Facility. To the extent that an Advancing Person funds any Advance or
any Servicing Advance and provides the Trustee with notice acknowledged by the
Servicer that such Advancing Person is entitled to reimbursement, such Advancing
Person shall be entitled to receive reimbursement pursuant to this Agreement for
such amount to the extent provided in Section 3.21(b). Such notice from the
Advancing Person must specify the amount of the reimbursement, the Section of
this Agreement that permits the applicable Advance or Servicing Advance to be
reimbursed and the section(s) of the Advancing Facility that entitle the
Advancing Person to request reimbursement from the Trustee, rather than the
Master Servicer, and include the Master Servicer's acknowledgment thereto or
proof of an Event of Default under the Advancing Facility. The Trustee shall
have no duty or liability with respect to any calculation of any reimbursement
to be paid to an Advancing Person and shall be entitled to rely without
independent investigation on the Advancing Person's notice provided pursuant to
this Section 3.21. An Advancing Person whose obligations hereunder are limited
to the funding of Advances and/or Servicing Advances shall not be required to
meet the qualifications of a Master Servicer or a subservicer pursuant to
Section 8.02 hereof and will not be deemed to be a subservicer under this
Agreement.

         (b) If an Advancing Facility is entered into, then the Master Servicer
shall not be permitted to reimburse itself therefor under Section 4.02(a)(ii),
Section 4.02(a)(iii) and Section 4.02(a)(v) prior to the remittance to the Trust
Fund, but instead the Master Servicer shall include such amounts in the
applicable remittance to the Trustee made pursuant to Section 4.02. The Trustee
is hereby authorized to pay to the Advancing Person, reimbursements for Advances
and Servicing Advances from the Distribution Account to the same extent the
Master Servicer would have been permitted to reimburse itself for such Advances
and/or Servicing Advances in accordance with Section 4.02(a)(ii), Section
4.02(a)(iii) or Section 4.02(a)(v), as the case may be, had the Master Servicer
itself funded such Advance or Servicing Advance. The Trustee is hereby
authorized to pay directly to the Advancing Person such portion of the Servicing
Fee as the parties to any advancing facility agree.

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         (c) All Advances and Servicing Advances made pursuant to the terms of
this Agreement shall be deemed made and shall be reimbursed on a "first in-first
out" (FIFO) basis.

         (d) Any amendment to this Section 3.21 or to any other provision of
this Agreement that may be necessary or appropriate to effect the terms of an
Advancing Facility as described generally in this Section 3.21, including
amendments to add provisions relating to a successor master servicer, may be
entered into by the Trustee and the Master Servicer without the consent of any
Certificateholder, notwithstanding anything to the contrary in this Agreement.

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                                   ARTICLE IV

                                    ACCOUNTS

     Section 4.01 COLLECTION OF MORTGAGE LOAN PAYMENTS; PROTECTED ACCOUNT.

         (a) The Master Servicer shall make reasonable efforts in accordance
with customary and usual standards of practice of prudent mortgage lenders in
the respective states in which the Mortgaged Properties are located to collect
all payments called for under the terms and provisions of the Mortgage Loans to
the extent such procedures shall be consistent with this Agreement and the terms
and provisions of any related Required Insurance Policy. Consistent with the
foregoing, the Master Servicer may in its discretion (i) waive any late payment
charge and (ii) extend the due dates for payments due on a Mortgage Note for a
period not greater than 125 days. In the event of any such arrangement, the
Master Servicer shall make Advances on the related Mortgage Loan during the
scheduled period in accordance with the amortization schedule of such Mortgage
Loan without modification thereof by reason of such arrangements, and shall be
entitled to reimbursement therefor in accordance with Section 5.01. The Master
Servicer shall not be required to institute or join in litigation with respect
to collection of any payment (whether under a Mortgage, Mortgage Note or
otherwise or against any public or governmental authority with respect to a
taking or condemnation) if it reasonably believes that enforcing the provision
of the Mortgage or other instrument pursuant to which such payment is required
is prohibited by applicable law. In addition, if (x) a Mortgage Loan is in
default or default is imminent or (y) the Master Servicer delivers to the
Trustee a certification addressed to the Trustee, based on the advice of counsel
or certified public accountants, in either case, that have a national reputation
with respect to taxation of REMICs, that a modification of such Mortgage Loan
will not result in the imposition of taxes on or disqualify any of REMIC I,
REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI, the Master Servicer may, (A)
amend the related Mortgage Note to reduce the Mortgage Rate applicable thereto,
provided that such reduced Mortgage Rate shall in no event be lower than 5.00%
with respect to any Mortgage Loan and (B) amend any Mortgage Note to extend to
the maturity thereof.

         The Master Servicer shall not waive (or permit a sub-servicer to waive)
any Prepayment Charge unless: (i) the enforceability thereof shall have been
limited by bankruptcy, insolvency, moratorium, receivership and other similar
laws relating to creditors' rights generally, (ii) the enforcement thereof is
illegal, or any local, state or federal agency has threatened legal action if
the prepayment penalty is enforced, (iii) the collectability thereof shall have
been limited due to acceleration in connection with a foreclosure or other
involuntary payment or (iv) such waiver is standard and customary in servicing
similar Mortgage Loans and relates to a default or a reasonably foreseeable
default and would, in the reasonable judgment of the Master Servicer, maximize
recovery of total proceeds taking into account the value of such Prepayment
Charge and the related Mortgage Loan. If a Prepayment Charge is waived, but does
not meet the standards described above, then the Master Servicer is required to
pay the amount of such waived Prepayment Charge, for the benefit of the Class P
Certificates, by remitting such amount to the Trustee by the Distribution
Account Deposit Date.

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         (b) The Master Servicer shall establish and maintain a Protected
Account (which shall at all times be an Eligible Account) with a depository
institution in the name of the Master Servicer for the benefit of the Trustee on
behalf of the Certificateholders and designated "EMC Mortgage Corporation, as
Master Servicer, for the benefit of LaSalle Bank National Association, in trust
for registered holders of Bear Stearns Asset Backed Securities I LLC,
Asset-Backed Certificates Series 2005-HE2". The Master Servicer shall deposit or
cause to be deposited into the Protected Account on a daily basis within one
Business Day of receipt, except as otherwise specifically provided herein, the
following payments and collections remitted by subservicers or received by it in
respect of the Mortgage Loans subsequent to the Cut-off Date (other than in
respect of principal and interest due on the Mortgage Loans on or before the
Cut-off Date) and the following amounts required to be deposited hereunder:

                           (i) all payments on account of principal, including
                  Principal Prepayments, on the Mortgage Loans;

                           (ii) all payments on account of interest on the
                  Mortgage Loans net of the Servicing Fee permitted under
                  Section 3.10 and LPMI Fees, if any;

                           (iii) all Liquidation Proceeds, Subsequent Recoveries
                  and Insurance Proceeds, other than proceeds to be applied to
                  the restoration or repair of the Mortgaged Property or
                  released to the Mortgagor in accordance with the Master
                  Servicer's normal servicing procedures;

                           (iv) any amount required to be deposited by the
                  Master Servicer pursuant to Section 4.01(c) in connection with
                  any losses on Permitted Investments;

                           (v) any amounts required to be deposited by the
                  Master Servicer pursuant to Section 3.05;

                           (vi) any Prepayment Charges collected on the Mortgage
                  Loans; and

                           (vii) any other amounts required to be deposited
                  hereunder.

         The foregoing requirements for remittance by the Master Servicer into
the Protected Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, payments in the nature of late
payment charges or assumption fees, if collected, need not be remitted by the
Master Servicer. In the event that the Master Servicer shall remit any amount
not required to be remitted and not otherwise subject to withdrawal pursuant to
Section 4.02, it may at any time withdraw or direct the institution maintaining
the Protected Account, to withdraw such amount from the Protected Account, any
provision herein to the contrary notwithstanding. Such withdrawal or direction
may be accomplished by delivering written notice thereof to the institution
maintaining the Protected Account, that describes the amounts deposited in error
in the Protected Account. The Master Servicer shall maintain adequate records
with respect to all withdrawals made pursuant to this Section. All funds

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deposited in the Protected Account shall be held in trust for the
Certificateholders until withdrawn in accordance with Section 4.02.

         (c) The institution that maintains the Protected Account shall invest
the funds in the Protected Account, in the manner directed by the Master
Servicer, in Permitted Investments which shall mature not later than the
Remittance Date and shall not be sold or disposed of prior to its maturity. All
such Permitted Investments shall be made in the name of the Trustee, for the
benefit of the Certificateholders. All income and gain net of any losses
realized from any such investment shall be for the benefit of the Master
Servicer as servicing compensation and shall be remitted to it monthly as
provided herein. The amount of any losses incurred in the Protected Account in
respect of any such investments shall be deposited by the Master Servicer into
the Protected Account, out of the Master Servicer's own funds.

         (d) The Master Servicer shall give at least 30 days advance notice to
the Trustee, the Seller, each Rating Agency and the Depositor of any proposed
change of location of the Protected Account prior to any change thereof.

         Section 4.02 PERMITTED WITHDRAWALS FROM THE PROTECTED ACCOUNT.

         (a) The Master Servicer may from time to time make withdrawals from the
Protected Account for the following purposes:

                           (i) to pay itself (to the extent not previously paid
                  to or withheld by the Master Servicer), as servicing
                  compensation in accordance with Section 3.10, that portion of
                  any payment of interest that equals the Servicing Fee for the
                  period with respect to which such interest payment was made,
                  and, as additional servicing compensation, those other amounts
                  set forth in Section 3.10;

                           (ii) to reimburse the Master Servicer for Advances
                  made by it with respect to the Mortgage Loans, provided,
                  however, that the Master Servicer's right of reimbursement
                  pursuant to this subclause (ii) shall be limited to amounts
                  received on particular Mortgage Loan(s) (including, for this
                  purpose, Liquidation Proceeds, Insurance Proceeds and
                  Subsequent Recoveries) that represent late recoveries of
                  payments of principal and/or interest on such particular
                  Mortgage Loan(s) in respect of which any such Advance was
                  made;

                           (iii) to reimburse the Master Servicer for any
                  previously made portion of a Servicing Advance or an Advance
                  made by the Master Servicer that, in the good faith judgment
                  of the Master Servicer, will not be ultimately recoverable by
                  it from the related Mortgagor, any related Liquidation
                  Proceeds, Insurance Proceeds or otherwise (a "Nonrecoverable
                  Advance"), to the extent not reimbursed pursuant to clause
                  (ii) or clause (v);

                           (iv) to reimburse the Master Servicer from Insurance
                  Proceeds for Insured Expenses covered by the related Insurance
                  Policy;

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                           (v) to pay the Master Servicer any unpaid Servicing
                  Fees and to reimburse it for any unreimbursed Servicing
                  Advances, provided, however, that the Master Servicer's right
                  to reimbursement for Servicing Advances pursuant to this
                  subclause (v) with respect to any Mortgage Loan shall be
                  limited to amounts received on particular Mortgage Loan(s)
                  (including, for this purpose, Liquidation Proceeds, Insurance
                  Proceeds, Subsequent Recoveries and purchase and repurchase
                  proceeds) that represent late recoveries of the payments for
                  which such Servicing Advances were made;

                           (vi) to pay to the Seller, the Depositor or itself,
                  as applicable, with respect to each Mortgage Loan or property
                  acquired in respect thereof that has been purchased pursuant
                  to Section 2.02, 2.03 or 3.18 of this Agreement, all amounts
                  received thereon and not taken into account in determining the
                  related Stated Principal Balance of such repurchased Mortgage
                  Loan;

                           (vii) to pay any expenses recoverable by the Master
                  Servicer pursuant to Section 7.04 of this Agreement;

                           (viii) to withdraw pursuant to Section 4.01 any
                  amount deposited in the Protected Account and not required to
                  be deposited therein; and

                           (ix) to clear and terminate the Protected Account
                  upon termination of this Agreement pursuant to Section 10.01
                  hereof.

         In addition, no later than 1:00 p.m. Eastern time on the Distribution
Account Deposit Date, the Master Servicer shall withdraw from the Protected
Account and remit to the Trustee the amount of Interest Funds for each Loan
Group (without taking into account any reduction in the amount of Interest Funds
attributable to the application of clause (c) of the definition thereof
contained in Article I of this Agreement) and Principal Funds for each Loan
Group collected, to the extent on deposit, and the Trustee shall deposit such
amount in the Distribution Account. In addition, on or before the Distribution
Account Deposit Date, the Master Servicer shall remit to the Trustee for deposit
in the Distribution Account any Advances or any payments of Compensating
Interest required to be made by the Master Servicer with respect to the Mortgage
Loans. Furthermore, on each Distribution Account Deposit Date, the Master
Servicer shall remit to the Trustee all Prepayment Charges collected by the
Master Servicer with respect to the Mortgage Loans during the related Prepayment
Period.

         The Master Servicer shall keep and maintain separate accounting, on a
Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any
withdrawal from the Protected Account pursuant to subclauses (i), (ii), (iv),
(v), (vi) and (vii) above. Prior to making any withdrawal from the Protected
Account pursuant to subclause (iii), the Master Servicer shall deliver to the
Trustee an Officer's Certificate of a Servicing Officer indicating the amount of
any previous Advance or Servicing Advance determined by the Master Servicer to
be a Nonrecoverable Advance and identifying the related Mortgage Loan(s), and
their respective portions of such Nonrecoverable Advance.

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         Section 4.03 COLLECTION OF TAXES; ASSESSMENTS AND SIMILAR ITEMS; ESCROW
ACCOUNTS.

         With respect to each Mortgage Loan, to the extent required by the
related Mortgage Note, the Master Servicer shall establish and maintain one or
more accounts (each, an "Escrow Account") and deposit and retain therein all
collections from the Mortgagors (or advances by the Master Servicer) for the
payment of taxes, assessments, hazard insurance premiums or comparable items for
the account of the Mortgagors. Nothing herein shall require the Master Servicer
to compel a Mortgagor to establish an Escrow Account in violation of applicable
law.

         Withdrawals of amounts so collected from the Escrow Accounts may be
made only to effect timely payment of taxes, assessments, hazard insurance
premiums, condominium or PUD association dues, or comparable items, to reimburse
the Master Servicer out of related collections for any payments made with
respect to each Mortgage Loan pursuant to Section 3.01 (with respect to taxes
and assessments and insurance premiums) and Section 3.05 (with respect to hazard
insurance), to refund to any Mortgagors for any Mortgage Loans any sums as may
be determined to be overages, to pay interest, if required by law or the terms
of the related Mortgage or Mortgage Note, to such Mortgagors on balances in the
Escrow Account or to clear and terminate the Escrow Account at the termination
of this Agreement in accordance with Section 10.01 thereof. The Escrow Account
shall not be a part of the Trust Fund.

         Section 4.04 DISTRIBUTION ACCOUNT.

         (a) The Trustee shall establish and maintain in the name of the
Trustee, for the benefit of the Certificateholders, the Distribution Account as
a segregated trust account or accounts.

         (b) All amounts deposited to the Distribution Account shall be held by
the Trustee in the name of the Trustee in trust for the benefit of the
Certificateholders in accordance with the terms and provisions of this
Agreement.

         (c) The Distribution Account shall constitute an Eligible Account of
the Trust Fund segregated on the books of the Trustee and held by the Trustee
and the Distribution 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 Trustee (whether made directly, or indirectly
through a liquidator or receiver of the Trustee). The amount at any time
credited to the Distribution Account may be invested in the name of the Trustee,
in such Permitted Investments, or deposited in demand deposits with such
depository institutions, as determined by the Trustee. All Permitted Investments
shall mature or be subject to redemption or withdrawal on or before, and shall
be held until, the next succeeding Distribution Date if the obligor for such
Permitted Investment is the Trustee or, if such obligor is any other Person, the
Business Day preceding such Distribution Date. All investment earnings on
amounts on deposit in the Distribution Account or benefit from funds uninvested
therein from time to time shall be for the account of the Trustee. The Trustee
shall be permitted to withdraw or receive distribution of any and all investment
earnings from the Distribution Account on each Distribution Date. If there is
any loss on a Permitted Investment or demand deposit, the Trustee shall deposit
the amount of the loss in the Distribution Account not later than the applicable
Distribution Date on which the moneys so

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invested are required to be distributed to the Certificateholders. With respect
to the Distribution Account and the funds deposited therein, the Trustee shall
take such action as may be necessary to ensure that the Certificateholders shall
be entitled to the priorities afforded to such a trust account (in addition to a
claim against the estate of the Trustee) as provided by 12 U.S.C. ss. 92a(e),
and applicable regulations pursuant thereto, if applicable, or any applicable
comparable state statute applicable to state chartered banking corporations.

         Section 4.05 PERMITTED WITHDRAWALS AND TRANSFERS FROM THE DISTRIBUTION
ACCOUNT.

         (a) The Trustee will make or cause to be made such withdrawals or
transfers from the Distribution Account for the following purposes:

                           (i) to pay to itself the Trustee Fee;

                           (ii) to reimburse the Trustee or the Swap
                  Administrator for expenses, costs and liabilities incurred by
                  or reimbursable to it pursuant to this Agreement;

                           (iii) to pay investment income to the Trustee;

                           (iv) to remove amounts deposited in error;

                           (v) to make distributions to the Swap Administrator
                  for payment to the Swap Provider as provided in this
                  Agreement; and

                           (vi) to clear and terminate the Distribution Account
                  pursuant to Section 10.01.

         (b) On each Distribution Date, the Trustee shall distribute Interest
Funds and Principal Funds in the Distribution Account for each Loan Group to the
holders of the Certificates in accordance with Section 5.04.

         Section 4.06 CLASS P CERTIFICATE ACCOUNT.

         (a) The Trustee shall establish and maintain in the name of the
Trustee, for the benefit of the Class P Certificateholders, the Class P
Certificate Account as a segregated trust account or accounts.

         (b) On the Closing Date, the Depositor will deposit, or cause to be
deposited in the Class P Certificate Account, an amount equal to $100. All
amounts deposited to the Class P Certificate Account shall be held by the
Trustee in the name of the Trustee in trust for the benefit of the Class P
Certificateholders in accordance with the terms and provisions of this
Agreement. The amount on deposit in the Class P Certificate Account shall be
held uninvested.

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                                   ARTICLE V

                           DISTRIBUTIONS AND ADVANCES

         Section 5.01 ADVANCES.

         The Master Servicer shall, or shall cause the related subservicer
pursuant to the Subservicing Agreement to, make an Advance and deposit such
Advance in the Protected Account. Each such Advance shall be remitted to the
Distribution Account no later than 1:00 p.m. Eastern time on the Distribution
Account Deposit Date in immediately available funds. The Master Servicer shall
be obligated to make any such Advance only to the extent that such advance would
not be a Nonrecoverable Advance. If the Master Servicer shall have determined
that it has made a Nonrecoverable Advance or that a proposed Advance or a lesser
portion of such Advance would constitute a Nonrecoverable Advance, the Master
Servicer shall deliver (i) to the Trustee for the benefit of the
Certificateholders funds constituting the remaining portion of such Advance, if
applicable, and (ii) to the Depositor, each Rating Agency and the Trustee an
Officer's Certificate setting forth the basis for such determination. Subject to
the Master Servicer's recoverability determination, in the event that a
subservicer fails to make a required Advance, the Master Servicer shall be
required to remit the amount of such Advance to the Distribution Account.

         In lieu of making all or a portion of such Advance from its own funds,
the Master Servicer may (i) cause to be made an appropriate entry in its records
relating to the Protected Account that any Amount Held for Future Distributions
has been used by the Master Servicer in discharge of its obligation to make any
such Advance and (ii) transfer such funds from the Protected Account to the
Distribution Account. Any funds so applied and transferred shall be replaced by
the Master Servicer by deposit in the Distribution Account, no later than the
close of business on the Business Day immediately preceding the Distribution
Date on which such funds are required to be distributed pursuant to this
Agreement.

         The Master Servicer shall be entitled to be reimbursed from the
Protected Account for all Advances of its own funds made pursuant to this
Section as provided in Section 4.02. The obligation to make Advances with
respect to any Mortgage Loan shall continue until such Mortgage Loan is paid in
full or the related Mortgaged Property or related REO Property has been
liquidated or until the purchase or repurchase thereof (or substitution
therefor) from the Trust Fund pursuant to any applicable provision of this
Agreement, except as otherwise provided in this Section 5.01.

         Subject to and in accordance with the provisions of Article VIII
hereof, in the event the Master Servicer fails to make such Advance, then the
Trustee, as Successor Master Servicer, shall be obligated to make such Advance,
subject to the provisions of this Section 5.01.

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         Section 5.02 COMPENSATING INTEREST PAYMENTS.

         In the event that there is a Prepayment Interest Shortfall arising from
a voluntary Principal Prepayment in part or in full by the Mortgagor with
respect to any Mortgage Loan, the Master Servicer shall, to the extent of the
Servicing Fee for such Distribution Date, deposit into the Distribution Account,
as a reduction of the Servicing Fee for such Distribution Date, no later than
the close of business on the Business Day immediately preceding such
Distribution Date, an amount equal to the Prepayment Interest Shortfall; and in
case of such deposit, the Master Servicer shall not be entitled to any recovery
or reimbursement from the Depositor, the Trustee, the Seller, the Trust Fund or
the Certificateholders.

         Section 5.03 REMIC DISTRIBUTIONS.

         On each Distribution Date the Trustee shall be deemed to have allocated
distributions to the REMIC I Regular Interests, REMIC II Regular Interests,
Class CE Interest, Class P Interest and Class IO Interest in accordance with
Section 5.07 hereof.

         Section 5.04 DISTRIBUTIONS.

         (a) On each Distribution Date, an amount equal to the Interest Funds
and Principal Funds for each Loan Group for such Distribution Date shall be
withdrawn by the Trustee from the Distribution Account and distributed in the
following order of priority:

         (1) Interest Funds shall be distributed in the following manner and
order of priority:

                  (A) From Interest Funds in respect of:

                  (i) Loan Group I, to the Class I-A-1, Class I-A-2 and Class
                  I-A-3 Certificates, the Current Interest and any Interest
                  Carry Forward Amount for each such Class, on a pro rata basis
                  based on the entitlement of each such Class; and

                  (ii) Loan Group II, to the Class II-A-1 Certificates and Class
                  II-A-2 Certificates, the Current Interest and any Interest
                  Carry Forward Amount for each such Class, on a pro rata basis
                  based on the entitlement of each such Class; and

                  (iii) Loan Group III, to the Class III-A-1 Certificates and
                  Class III-A-2 Certificates, the Current Interest and any
                  Interest Carry Forward Amount for each such Class, on a pro
                  rata basis based on the entitlement of each such Class; and

                  (B) From remaining Interest Funds in respect of the
         non-related Loan Groups, to the Class I-A, Class II-A and Class III-A
         Certificates, the remaining Current Interest, if any, and the remaining
         Interest Carry Forward Amount, if any, for such Classes, pro rata based
         on the entitlement of each such Class; and

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                  (C) From remaining Interest Funds in respect of all Loan
         Groups, sequentially, to the Class M-1, Class M-2, Class M-3, Class
         M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Certificates, in
         that order, the Current Interest for each such Class.

         Any Excess Spread to the extent necessary to meet a level of
overcollateralization equal to the Overcollateralization Target Amount will be
the Extra Principal Distribution Amount and will be included as part of the
Principal Distribution Amount. Any Remaining Excess Spread together with any
Overcollateralization Release Amount will be applied as Excess Cashflow and
distributed pursuant to clauses (4)(A) through (G) below.

         On any Distribution Date, any Relief Act Interest Shortfalls and any
Prepayment Interest Shortfalls to the extent not covered by Compensating
Interest will be allocated as set forth in the definition of "Current Interest"
herein.

         (2) Principal Funds, including any Extra Principal Distribution Amount,
shall be distributed in the following manner and order of priority:

                  (A) For each Distribution Date (i) prior to the Stepdown Date
         or (ii) on which a Trigger Event is in effect:

                  (i) To the Class A Certificates, the Principal Distribution
                  Amount for such Distribution Date to be distributed as
                  follows:

                           (1) from the Group I Principal Distribution Amount
                           for such Distribution Date, sequentially, to the
                           Class I-A-1, Class I-A-2 and Class I-A-3
                           Certificates, in that order, in each case until the
                           Certificate Principal Balance thereof is reduced to
                           zero;

                           (2) from the Group II Principal Distribution Amount
                           for such Distribution Date, pro rata to the Class
                           II-A-1 Certificates and Class II-A-2 Certificates,
                           until the Certificate Principal Balances thereof are
                           reduced to zero; provided, however, that if a Group
                           II Sequential Trigger Event is in effect, the Group
                           II Principal Distribution Amount for such
                           Distribution Date shall be distributed sequentially
                           to the Class II-A-1 Certificates and Class II-A-2
                           Certificates, in that order, in each case until the
                           Certificate Principal Balance thereof is reduced to
                           zero; and

                           (3) from the Group III Principal Distribution Amount
                           for such Distribution Date, pro rata to the Class
                           III-A-1 Certificates and Class III-A-2 Certificates,
                           until the Certificate Principal Balances thereof are
                           reduced to zero; provided, however, that if a Group
                           III Sequential Trigger Event is in effect, the Group
                           III Principal Distribution Amount for such
                           Distribution Date shall be distributed sequentially
                           to the Class III-A-1 Certificates and Class III-A-2
                           Certificates, in that order, in each case until the
                           Certificate Principal Balance thereof is reduced to
                           zero;

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                  (ii) To the Class M-1 Certificates, from any remaining
                  Principal Funds in respect of all Loan Groups for such
                  Distribution Date, the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance thereof is
                  reduced to zero;

                  (iii) To the Class M-2 Certificates, from any remaining
                  Principal Funds in respect of all Loan Groups for such
                  Distribution Date, the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance thereof is
                  reduced to zero;

                  (iv) To the Class M-3 Certificates, from any remaining
                  Principal Funds in respect of all Loan Groups for such
                  Distribution Date, the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance thereof is
                  reduced to zero;

                  (v) To the Class M-4 Certificates, from any remaining
                  Principal Funds in respect of all Loan Groups for such
                  Distribution Date, the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance thereof is
                  reduced to zero;

                  (vi) To the Class M-5 Certificates, from any remaining
                  Principal Funds in respect of all Loan Groups for such
                  Distribution Date, the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance thereof is
                  reduced to zero;

                  (vii) To the Class M-6 Certificates, from any remaining
                  Principal Funds in respect of all Loan Groups for such
                  Distribution Date, the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance thereof is
                  reduced to zero;

                  (viii) To the Class M-7 Certificates, from any remaining
                  Principal Funds in respect of all Loan Groups for such
                  Distribution Date, the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance thereof is
                  reduced to zero; and

                  (ix) To the Class M-8 Certificates, from any remaining
                  Principal Funds in respect of all Loan Groups for such
                  Distribution Date, the remaining Principal Distribution
                  Amount, until the Certificate Principal Balance thereof is
                  reduced to zero.

                  (B) For each Distribution Date on or after the Stepdown Date,
         so long as a Trigger Event is not in effect:

                  (i) To the Class A Certificates, the Principal Distribution
                  Amount for such Distribution Date to be distributed as
                  follows:

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                           (1) from the Group I Principal Distribution Amount
                           for such Distribution Date, sequentially, to the
                           Class I-A-1, Class I-A-2 and Class I-A-3
                           Certificates, in that order, the Class I-A Principal
                           Distribution Amount for such Distribution Date, in
                           each case until the Certificate Principal Balance
                           thereof is reduced to zero;

                           (2) from the Group II Principal Distribution Amount
                           for such Distribution Date, pro rata to the Class
                           II-A-1 Certificates and Class II-A-2 Certificates,
                           the Class II-A Principal Distribution Amount for such
                           Distribution Date, until the Certificate Principal
                           Balances thereof are reduced to zero; and

                           (3) from the Group III Principal Distribution Amount
                           for such Distribution Date, pro rata to the Class
                           III-A-1 Certificates and Class III-A-2 Certificates,
                           the Class III-A Principal Distribution Amount for
                           such Distribution Date, until the Certificate
                           Principal Balances thereof are reduced to zero.

                  (ii) To the Class M-1 Certificates, from any remaining
                  Principal Distribution Amount in respect of all Loan Groups
                  for such Distribution Date, the Class M-1 Principal
                  Distribution Amount, until the Certificate Principal Balance
                  thereof is reduced to zero;

                  (iii) To the Class M-2 Certificates, from any remaining
                  Principal Distribution Amount in respect of all Loan Groups
                  for such Distribution Date, the Class M-2 Principal
                  Distribution Amount, until the Certificate Principal Balance
                  thereof is reduced to zero;

                  (iv) To the Class M-3 Certificates, from any remaining
                  Principal Distribution Amount in respect of all Loan Groups
                  for such Distribution Date, the Class M-3 Principal
                  Distribution Amount, until the Certificate Principal Balance
                  thereof is reduced to zero;

                  (v) To the Class M-4 Certificates, from any remaining
                  Principal Distribution Amount in respect of all Loan Groups
                  for such Distribution Date, the Class M-4 Principal
                  Distribution Amount, until the Certificate Principal Balance
                  thereof is reduced to zero;

                  (vi) To the Class M-5 Certificates, from any remaining
                  Principal Distribution Amount in respect of all Loan Groups
                  for such Distribution Date, the Class M-5 Principal
                  Distribution Amount, until the Certificate Principal Balance
                  thereof is reduced to zero;

                  (vii) To the Class M-6 Certificates, from any remaining
                  Principal Distribution Amount in respect of all Loan Groups
                  for such Distribution Date,

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                  the Class M-6 Principal Distribution Amount, until the
                  Certificate Principal Balance thereof is reduced to zero;

                  (viii) To the Class M-7 Certificates, from any remaining
                  Principal Distribution Amount in respect of all Loan Groups
                  for such Distribution Date, the Class M-7 Principal
                  Distribution Amount, until the Certificate Principal Balance
                  thereof is reduced to zero; and

                  (ix) To the Class M-8 Certificates, from any remaining
                  Principal Distribution Amount in respect of all Loan Groups
                  for such Distribution Date, the Class M-8 Principal
                  Distribution Amount, until the Certificate Principal Balance
                  thereof is reduced to zero.

         (3) Notwithstanding the provisions of clauses (2)(A) and (B) above, if
on any Distribution Date the Class A Certificates related to a Loan Group are no
longer outstanding, the pro rata portion of the Principal Distribution Amount or
the applicable Class A Principal Distribution Amount, as applicable, otherwise
allocable to such Class A Certificates will be allocated among the remaining
group or groups of Class A Certificates pro rata and among the Classes of each
such certificate group in the same manner and order of priority described above;
and

         (4) Any Excess Cashflow shall be distributed in the following manner
and order of priority:

                  (A) from any remaining Excess Cashflow, to the Class A
         Certificates, (a) first, any remaining Interest Carry Forward Amount
         for such Classes, pro rata, in accordance with the Interest Carry
         Forward Amount due with respect to each such Class, to the extent not
         fully paid pursuant to clauses (1) (A) and (B) above and Section
         3.20(c) and (b) second, any Unpaid Realized Loss Amount for such
         Classes for such Distribution Date, pro rata, in accordance with the
         Applied Realized Loss Amount allocated to each such Class;

                  (B) from any remaining Excess Cashflow, sequentially, to the
         Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
         M-7 and Class M-8 Certificates, in that order, an amount equal to the
         Interest Carry Forward Amount for each such Class for such Distribution
         Date to the extent not fully paid pursuant to Section 3.20(c);

                  (C) from any remaining Excess Cashflow otherwise distributable
         to the Class CE Interest and the Class CE Certificates, to the Reserve
         Fund to pay to the Class I-A, Class II-A and Class III-A Certificates,
         any Basis Risk Shortfall Carry Forward Amount for each such Class for
         such Distribution Date, on a pro rata basis, based on the amount of the
         Basis Risk Shortfall Carry Forward Amount for each such Class and to
         the extent not paid pursuant to Section 3.20;

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                  (D) from any remaining Excess Cashflow otherwise distributable
         to the Class CE Interest and the Class CE Certificates, to the Reserve
         Fund to pay to the Class M-1, Class M-2, Class M-3, Class M-4, Class
         M-5, Class M-6, Class M-7 and Class M-8 Certificates, sequentially in
         that order, any Basis Risk Shortfall Carry Forward Amount for each such
         Class for such Distribution Date, if any, in each case to the extent
         not paid pursuant to Section 3.20;

                  (E) from any remaining Excess Cashflow, to the Class A
         Certificates, on a pro rata basis, based on the entitlement of each
         such Class, and then sequentially to the Class M-1, Class M-2, Class
         M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8
         Certificates, in that order, the amount of Relief Act Shortfalls and
         any Prepayment Interest Shortfalls allocated to such Classes of
         Certificates, to the extent not previously reimbursed;

                  (F) from any remaining Excess Cashflow, to the Swap
         Administrator for payment to the Swap Provider, any Swap Termination
         Payments due to a Swap Provider Trigger Event owed by the Trust Fund;

                  (G) from any remaining Excess Cashflow, to the Class CE
         Interest and Class CE Certificates, an amount equal to the Class CE
         Distribution Amount reduced by amounts distributed in clauses (C) and
         (D) above; and

                  (H) any remaining amounts to each of the Class R-1, Class R-2,
         Class R-3 and Class RX Certificates, based on the related REMIC in
         which such amounts remain.

         On each Distribution Date, all amounts in respect of Prepayment Charges
shall be distributed to the Holders of the Class P Interest and the Class P
Certificates, provided that such distributions shall not be in reduction of the
principal balance thereof. On the Distribution Date immediately following the
expiration of the latest Prepayment Charge term as identified on the Mortgage
Loan Schedule, any amount on deposit in the Class P Certificate Account will be
distributed to the Holders of the Class P Interest and the Class P Certificates
in reduction of the Certificate Principal Balance thereof.

         In addition, notwithstanding the foregoing, on any Distribution Date
after the Distribution Date on which the Certificate Principal Balance of a
Class of Class A Certificates or Class M Certificates has been reduced to zero,
that Class of Certificates will be retired and will no longer be entitled to
distributions, including distributions in respect of Prepayment Interest
Shortfalls or Basis Risk Shortfall Carry Forward Amounts.

         (b) In addition to the foregoing distributions, with respect to any
Subsequent Recoveries, the Master Servicer shall deposit such funds into the
Protected Account pursuant to Section 4.01(b)(iii). If, after taking into
account such Subsequent Recoveries, the amount of a Realized Loss is reduced,
the amount of such Subsequent Recoveries will be applied to increase the
Certificate Principal Balance of the Class of Certificates with the highest
payment priority to which Realized Losses have been allocated, but not by more
than the amount of Realized Losses previously allocated to that Class of
Certificates pursuant to Section 5.05; provided, however, to

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the extent that no reductions to a Certificate Principal Balance of any Class of
Certificates currently exists as the result of a prior allocation of a Realized
Loss, such Subsequent Recoveries will be applied as Excess Spread. The amount of
any remaining Subsequent Recoveries will be applied to increase the Certificate
Principal Balance of the Class of Certificates with the next highest payment
priority, up to the amount of such Realized Losses previously allocated to that
Class of Certificates pursuant to Section 5.05, and so on. Holders of such
Certificates will not be entitled to any payment in respect of Current Interest
on the amount of such increases for any Interest Accrual Period preceding the
Distribution Date on which such increase occurs. Any such increases shall be
applied to the Certificate Principal Balance of each Certificate of such Class
in accordance with its respective Percentage Interest.

         (c) Subject to Section 10.02 hereof respecting the final distribution,
on each Distribution Date the Trustee shall make distributions to each
Certificateholder of record on the preceding Record Date either by wire transfer
in immediately available funds to the account of such holder at a bank or other
entity having appropriate facilities therefor, if such Holder has so notified
the Trustee at least 5 Business Days prior to the related Record Date, or, if
not, by check mailed by first class mail to such Certificateholder at the
address of such holder appearing in the Certificate Register. Notwithstanding
the foregoing, but subject to Section 10.02 hereof respecting the final
distribution, distributions with respect to Certificates registered in the name
of a Depository shall be made to such Depository in immediately available funds.

         (d) On or before 5:00 p.m. Eastern time on the fifth Business Day
immediately preceding each Distribution Date, the Master Servicer shall deliver
a report to the Trustee in electronic form (or by such other means as the Master
Servicer and the Trustee may agree from time to time) containing such data and
information, as agreed to by the Master Servicer and the Trustee such as to
permit the Trustee to prepare the Monthly Statement to Certificateholders and to
make the required distributions for the related Distribution Date.

         Section 5.05 ALLOCATION OF REALIZED LOSSES.

(a) All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular
Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by
the Trustee on each Distribution Date as follows: first, to Excess Spread;
second, to the Class CE Interest and Class CE Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; third, to the
Class M-8 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero; fourth, to the Class M-7 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero; fifth, to the Class M-6
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; seventh, to the Class M-4
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero; tenth,
to the Class M-1 Certificates, until the Certificate Principal Balance thereof
has been reduced to zero; eleventh, to related Class or Classes of Class A
Certificates, on a pro rata basis, until the Certificate Principal Balances
thereof have been reduced to zero; and twelfth, to the unrelated Class or
Classes of Class A Certificates, on a pro rata basis, until the

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Certificate Principal Balances thereof have been reduced to zero; provided,
however, any such Realized Losses otherwise allocable to the Class II-A-1
Certificates shall be allocated first to the Class II-A-2 Certificates, until
the Certificate Principal Balance thereof has been reduced to zero, and then to
the Class II-A-1 Certificates, and any such Realized Losses otherwise allocable
to the Class III-A-1 Certificates shall be allocated first to the Class III-A-2
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero, and then to the Class III-A-1 Certificates. All Realized Losses to be
allocated to the Certificate Principal Balances of all Classes on any
Distribution Date shall be so allocated after the actual distributions to be
made on such date as provided above. All references above to the Certificate
Principal Balance of any Class of Certificates shall be to the Certificate
Principal Balance of such Class immediately prior to the relevant Distribution
Date, before reduction thereof by any Realized Losses, in each case to be
allocated to such Class of Certificates, on such Distribution Date.

         (b) Any allocation of Realized Losses to a Class of Certificates on any
Distribution Date shall be made by reducing the Certificate Principal Balance
thereof by the amount so allocated; any allocation of Realized Losses to a Class
CE Interest and Class CE Certificates shall be made by reducing the amount
otherwise payable in respect thereof pursuant to clause (G) of Section
5.04(a)(4). No allocations of any Realized Losses shall be made to the
Certificate Principal Balance of the Class P Interest and the Class P
Certificates.

Notwithstanding the foregoing, no such allocation of any Realized Loss shall be
made on a Distribution Date to any Class of Certificates to the extent that such
allocation would result in the reduction of the aggregate Certificate Principal
Balance of all the Certificates as of such Distribution Date, after giving
effect to all distributions and prior allocations of Realized Losses on the
Mortgage Loans on such date, to an amount less than the aggregate Stated
Principal Balance of all of the Mortgage Loans as of the first day of the month
of such Distribution Date (such limitation, the "Loss Allocation Limitation").
In addition in no event will the Certificate Principal Balance of any
Certificate be reduced more than once in respect of any particular amount both
(i) allocable to such Certificate in respect of Realized Losses and (ii) payable
as principal to the holder of such Certificate from Remaining Excess Spread.

         As used herein, an allocation of a Realized Loss on a "pro rata basis"
among two or more specified Classes of Certificates means an allocation on a pro
rata basis, among the various Classes so specified, to each such Class of
Certificates on the basis of their then outstanding Certificate Principal
Balances prior to giving effect to distributions to be made on such Distribution
Date. All Realized Losses and all other losses allocated to a Class of
Certificates hereunder will be allocated among the Certificates of such Class in
proportion to the Percentage Interests evidenced thereby.

         (c) (i) All Realized Losses on the Group I Loans shall be allocated on
each Distribution Date to REMIC I Regular Interest I-1-A through REMIC I Regular
Interest I-60-B, starting with the lowest numerical denomination until such
REMIC I Regular Interest has been reduced to zero, provided that, for REMIC I
Regular Interests with the same numerical denomination, such Realized Losses
shall be allocated pro rata between such REMIC I Regular Interests. All Realized
Losses on the Group II Loans shall be allocated on each Distribution Date to
REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-60-B,
starting

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with the lowest numerical denomination until such REMIC I Regular
Interest has been reduced to zero, provided that, for REMIC I Regular Interests
with the same numerical denomination, such Realized Losses shall be allocated
pro rata between such REMIC I Regular Interests. All Realized Losses on the
Group III Loans shall be allocated on each Distribution Date to REMIC I Regular
Interest III-1-A through REMIC I Regular Interest III-60-B, starting with the
lowest numerical denomination until such REMIC I Regular Interest has been
reduced to zero, provided that, for REMIC I Regular Interests with the same
numerical denomination, such Realized Losses shall be allocated pro rata between
such REMIC I Regular Interests.

                           (ii) The REMIC II Marker Percentage of all Realized
                  Losses on the Mortgage Loans (without duplication of losses
                  allocated pursuant to Section 1.02) shall be allocated by the
                  Trustee on each Distribution Date to the following REMIC II
                  Regular Interests in the specified percentages, as follows:
                  first, to Uncertificated Accrued Interest payable to the REMIC
                  II Regular Interest AA and REMIC II Regular Interest ZZ up to
                  an aggregate amount equal to the REMIC II Interest Loss
                  Allocation Amount, 98.00% and 2.00%, respectively; second, to
                  the Uncertificated Principal Balances of the REMIC II Regular
                  Interest AA and REMIC II Regular Interest ZZ up to an
                  aggregate amount equal to the REMIC II Principal Loss
                  Allocation Amount, 98.00% and 2.00%, respectively; third, to
                  the Uncertificated Principal Balances of REMIC II Regular
                  Interest AA, REMIC II Regular Interest M-8 and REMIC II
                  Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively,
                  until the Uncertificated Principal Balance of REMIC II Regular
                  Interest M-8 has been reduced to zero; fourth, to the
                  Uncertificated Principal Balances of REMIC II Regular Interest
                  AA, REMIC II Regular Interest M-7 and REMIC II Regular
                  Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the
                  Uncertificated Principal Balance of REMIC II Regular Interest
                  M-7 has been reduced to zero; fifth, to the Uncertificated
                  Principal Balances of REMIC II Regular Interest AA, REMIC II
                  Regular Interest M-6 and REMIC I Regular Interest ZZ, 98.00%,
                  1.00% and 1.00%, respectively, until the Uncertificated
                  Principal Balance of REMIC II Regular Interest M-6 has been
                  reduced to zero; sixth, to the Uncertificated Principal
                  Balances of REMIC II Regular Interest AA, REMIC II Regular
                  Interest M-5 and REMIC II Regular Interest ZZ, 98.00%, 1.00%
                  and 1.00%, respectively, until the Uncertificated Principal
                  Balance of REMIC II Regular Interest M-5 has been reduced to
                  zero; seventh, to the Uncertificated Principal Balances of
                  REMIC II Regular Interest AA, REMIC II Regular Interest M-4
                  and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
                  respectively, until the Uncertificated Principal Balance of
                  REMIC II Regular Interest M-4 has been reduced to zero;
                  eighth, to the Uncertificated Principal Balances of REMIC II
                  Regular Interest AA, REMIC II Regular Interest M-3 and REMIC
                  II Regular Interest ZZ, 98.00%, 1.00%, and 1.00%,
                  respectively, until the Uncertificated Principal Balance of
                  REMIC II Regular Interest M-3 has been reduced to zero; ninth,
                  to the Uncertificated Principal Balances of REMIC II Regular
                  Interest AA, REMIC II Regular Interest M-2 and REMIC II
                  Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively,
                  until the Uncertificated Principal Balance of REMIC II Regular
                  Interest M-2 has been

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                  reduced to zero; tenth, to the Uncertificated Principal
                  Balances of REMIC II Regular Interest AA, REMIC II Regular
                  Interest M-1 and REMIC II Regular Interest ZZ, 98.00%, 1.00%
                  and 1.00%, respectively, until the Uncertificated Principal
                  Balance of REMIC II Regular Interest M-1 has been reduced to
                  zero; eleventh, with respect to any Realized Losses on the
                  Mortgage Loans, to the Uncertificated Principal Balance of
                  REMIC II Regular Interest AA, 98.00%, to the Uncertificated
                  Principal Balances of the related REMIC II Regular Interests
                  I-A-1, I-A-2, I-A-3, II-A-1, II-A-2, III-A-1 and III-A-2,
                  1.00% pro rata, and to the Uncertificated Principal Balance of
                  REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated
                  Principal Balances of such REMIC II Regular Interests I-A-1,
                  I-A-2, I-A-3, II-A-1, II-A-2, Class III-A-1 and Class III-A-2
                  have been reduced to zero; and twelfth with respect to any
                  Realized Losses on the Mortgage Loans, to the Uncertificated
                  Principal Balance of REMIC II Regular Interest AA, 98.00%, to
                  the Uncertificated Principal Balances of the unrelated REMIC
                  II Regular Interests I-A-1, I-A-2, I-A-3, II-A-1, II-A-2,
                  III-A-1 and III-A-2, 1.00% pro rata, and to the Uncertificated
                  Principal Balance of REMIC II Regular Interest ZZ, 1.00%,
                  until the Uncertificated Principal Balances of such REMIC II
                  Regular Interests I-A-1, I-A-2, I-A-3, II-A-1, II-A-2, Class
                  III-A-1 and Class III-A-2 have been reduced to zero; provided,
                  however, any such Realized Losses otherwise allocable to REMIC
                  II Regular Interest II-A-1 shall be allocated first to REMIC
                  II Regular Interest II-A-2, until the Uncertificated Principal
                  Balance thereof has been reduced to zero, and then to REMIC II
                  Regular Interest II-A-1, and any such Realized Losses
                  otherwise allocable to REMIC II Regular Interest III-A-1 shall
                  be allocated first to REMIC II Regular Interest III-A-2, until
                  the Uncertificated Principal Balance thereof has been reduced
                  to zero, and then to REMIC II Regular Interest III-A-1.

                           (iii) The REMIC II Sub WAC Allocation Percentage of
                  all Realized Losses shall be applied after all distributions
                  have been made on each Distribution Date first, so as to keep
                  the Uncertificated Principal Balance of each REMIC II Regular
                  Interest ending with the designation "B" equal to 0.01% of the
                  aggregate Stated Principal Balance of the Mortgage Loans in
                  the related Loan Group; second, to each REMIC II Regular
                  Interest ending with the designation "A" so that the
                  Uncertificated Principal Balance of each such REMIC II Regular
                  Interest is equal to 0.01% of the excess of (x) the aggregate
                  Stated Principal Balance of the Mortgage Loans in the related
                  Loan Group over (y) the current Certificate Principal Balance
                  of the Class A Certificates related to such Loan Group (except
                  that if any such excess is a larger number than in the
                  preceding distribution period, the least amount of Realized
                  Losses shall be applied to such REMIC II Regular Interests
                  such that the REMIC II Subordinated Balance Ratio is
                  maintained); and third, any remaining Realized Losses shall be
                  allocated to REMIC II Regular Interest XX.

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         Section 5.06 MONTHLY STATEMENTS TO CERTIFICATEHOLDERS.

         (a) Not later than each Distribution Date, the Trustee shall prepare
and make available to each Holder of Certificates, the Master Servicer and the
Depositor a statement setting forth for the Certificates:

                           (i) the amount of the related distribution to Holders
                  of each Class allocable to principal, separately identifying
                  (A) the aggregate amount of any Principal Prepayments included
                  therein, (B) the aggregate of all scheduled payments of
                  principal included therein and (C) the Extra Principal
                  Distribution Amount (if any);

                           (ii) the amount of such distribution to Holders of
                  each Class A Certificates and Class M Certificates allocable
                  to interest and the portion thereof, if any, provided by the
                  Swap Administration Agreement;

                           (iii) the Interest Carry Forward Amount and any Basis
                  Risk Shortfall Carry Forward Amount for each Class of
                  Certificates;

                           (iv) the Certificate Principal Balance or Certificate
                  Notional Amount, as applicable, of each Class after giving
                  effect (i) to all distributions allocable to principal on such
                  Distribution Date and (ii) the allocation of any Applied
                  Realized Loss Amounts for such Distribution Date;

                           (v) for each Loan Group, the aggregate of the Stated
                  Principal Balance of (A) all of the Mortgage Loans in such
                  Loan Group, (B) the first lien Mortgage Loans in such Loan
                  Group, (C) the second lien Mortgage Loans in such Loan Group,
                  and (D) the Adjustable Rate Mortgage Loans in such Loan Group,
                  for the following Distribution Date;

                           (vi) the related amount of the Servicing Fees paid to
                  or retained by the Master Servicer for the related Due Period;

                           (vii) the Pass-Through Rate for each Class of Class A
                  Certificates and Class M Certificates with respect to the
                  current Accrual Period, and, if applicable, whether such
                  Pass-Through Rate was limited by the applicable Net Rate Cap;

                           (viii) the amount of Advances included in the
                  distribution on such Distribution Date;

                           (ix) the cumulative amount of Applied Realized Loss
                  Amounts to date;

                           (x) the number and aggregate Stated Principal Balance
                  of the Mortgage Loans in each Loan Group (A) Delinquent
                  (exclusive of Mortgage Loans in foreclosure and bankruptcy)
                  (1) 31 to 60 days, (2) 61 to 90 days and (3) 91 or more days,
                  (B) in foreclosure and delinquent (1) 31 to 60 days, (2) 61 to
                  90 days and (3) 91 or more days and (C) in bankruptcy and
                  delinquent (1) 31 to 60 days, (2) 61

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                  to 90 days and (3) 91 or more days, in each case as of the
                  close of business on the last day of the calendar month
                  preceding such Distribution Date and separately identifying
                  such information for the (1) first lien Mortgage Loans, (2)
                  second lien Mortgage Loans, and (3) Adjustable Rate Mortgage
                  Loans, in each such Loan Group;

                           (xi) with respect to any Mortgage Loan that was
                  liquidated during the preceding calendar month, the loan
                  number and Stated Principal Balance of, and Realized Loss on,
                  such Mortgage Loan as of the close of business on the
                  Determination Date preceding such Distribution Date;

                           (xii) the total number and principal balance of any
                  real estate owned or REO Properties as of the close of
                  business on the Determination Date preceding such Distribution
                  Date;

                           (xiii) the three month rolling average of the percent
                  equivalent of a fraction, the numerator of which is the
                  aggregate Stated Principal Balance of the Mortgage Loans in
                  each Loan Group that are 60 days or more delinquent or are in
                  bankruptcy or foreclosure or are REO Properties, and the
                  denominator of which is the aggregate Stated Principal Balance
                  of all of the Mortgage Loans in such Loan Group as of the last
                  day of such Distribution Date and separately identifying such
                  information for the (1) first lien Mortgage Loans, (2) second
                  lien Mortgage Loans, and (3) Adjustable Rate Mortgage Loans,
                  in each such Loan Group;

                           (xiv) the Realized Losses during the related
                  Prepayment Period and the cumulative Realized Losses through
                  the end of the preceding month;

                           (xv) whether a Trigger Event exists;

                           (xvi) the amount of any Net Swap Payment payable to
                  the Swap Administrator, any Net Swap Payment payable to the
                  Swap Provider, any Swap Termination Payment payable to the
                  Swap Administrator and any Swap Termination Payment payable to
                  the Swap Provider; and

                           (xvii) the amount of the distribution made on such
                  Distribution Date to the Holders of the Class P Certificates
                  allocable to Prepayment Charges.

         The Trustee may make the foregoing Monthly Statement (and, at its
option, any additional files containing the same information in an alternative
format) available each month to Certificateholders via the Trustee's internet
website. The Trustee's internet website shall initially be located at
"www.etrustee.net". Assistance in using the website can be obtained by calling
the Trustee's customer service desk at (312) 904-4839. Parties that are unable
to use the above distribution options are entitled to have a paper copy mailed
to them via first class mail by

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calling the customer service desk and indicating such. The Trustee may change
the way Monthly Statements are distributed in order to make such distributions
more convenient or more accessible to the above parties.

         (b) The Trustee's responsibility for making the above information
available to the Certificateholders is limited to the availability, timeliness
and accuracy of the information derived from the Master Servicer. The Trustee
will make available a copy of each statement provided pursuant to this Section
5.06 to each Rating Agency.

         (c) Within a reasonable period of time after the end of each calendar
year, the Trustee shall cause to be furnished upon request to each Person who at
any time during the calendar year was a Certificateholder, a statement
containing the information set forth in clauses (a)(i) and (a)(ii) of this
Section 5.06 aggregated for such calendar year or applicable portion thereof
during which such Person was a Certificateholder. Such obligation of the Trustee
shall be deemed to have been satisfied to the extent that substantially
comparable information shall be provided by the Trustee pursuant to any
requirements of the Code as from time to time in effect.

         (d) Upon filing with the Internal Revenue Service, the Trustee shall
furnish to the Holders of the Residual Certificates the applicable Form 1066 and
each applicable Form 1066Q and shall respond promptly to written requests made
not more frequently than quarterly by any Holder of a Residual Certificate with
respect to the following matters:

                           (i) The original projected principal and interest
                  cash flows on the Closing Date on each Class of regular and
                  residual interests created hereunder and on the Mortgage
                  Loans, based on the Prepayment Assumption;

                           (ii) The projected remaining principal and interest
                  cash flows as of the end of any calendar quarter with respect
                  to each Class of regular and residual interests created
                  hereunder and the Mortgage Loans, based on the Prepayment
                  Assumption;

                           (iii) The applicable Prepayment Assumption and any
                  interest rate assumptions used in determining the projected
                  principal and interest cash flows described above;

                           (iv) The original issue discount (or, in the case of
                  the Mortgage Loans, market discount) or premium accrued or
                  amortized through the end of such calendar quarter with
                  respect to each Class of regular or residual interests created
                  hereunder and to the Mortgage Loans, together with each
                  constant yield to maturity used in computing the same;

                           (v) The treatment of Realized Losses with respect to
                  the Mortgage Loans or the regular interests created hereunder,
                  including the timing and amount of any cancellation of
                  indebtedness income of a REMIC with respect to such regular
                  interests or bad debt deductions claimed with respect to the
                  Mortgage Loans;

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                           (vi) The amount and timing of any non-interest
                  expenses of a REMIC; and

                           (vii) Any taxes (including penalties and interest)
                  imposed on the REMIC, including, without limitation, taxes on
                  "prohibited transactions," "contributions" or "net income from
                  foreclosure property" or state or local income or franchise
                  taxes.

         The information pursuant to clauses (i), (ii), (iii) and (iv) above
shall be provided by the Depositor pursuant to Section 9.12.

         Section 5.07 REMIC DESIGNATIONS AND REMIC DISTRIBUTIONS.

         (a) The Trustee shall elect that each of REMIC I, REMIC II, REMIC III,
REMIC IV, REMIC V and REMIC VI shall be treated as a REMIC under Section 860D of
the Code. Any inconsistencies or ambiguities in this Agreement or in the
administration of this Agreement shall be resolved in a manner that preserves
the validity of such REMIC elections. The assets of REMIC I shall include the
Mortgage Loans and all interest owing in respect of and principal due thereon,
the Distribution Account, the Protected Account, any REO Property, any proceeds
of the foregoing and any other assets subject to this Agreement (other than the
Reserve Fund, the Swap Agreement, the Swap Account and any rights or obligations
in respect of the Swap Administration Agreement). The REMIC I Regular Interests
shall constitute the assets of REMIC II. The REMIC II Regular Interests shall
constitute the assets of REMIC III. The Class CE Interest shall constitute the
assets of REMIC IV. The Class P Interest shall constitute the assets of REMIC V.
The Class IO Interest shall constitute the assets of REMIC VI.

         (b) (1) On each Distribution Date, the following amounts, in the
following order of priority, shall be distributed by REMIC I to REMIC II on
account of REMIC I Regular Interests I-1-A through I-60-B or withdrawn from the
Distribution Account and distributed to the holders of the Class R-1
Certificates, as the case may be:

                  (i) to Holders of each REMIC I Regular Interest I-1-A through
                  I-60-B, pro rata, in an amount equal to (A) Uncertificated
                  Accrued Interest for such REMIC I Regular Interests for such
                  Distribution Date, plus (B) any amounts payable in respect
                  thereof remaining unpaid from previous Distribution Dates.

                  (ii) to the extent of amounts remaining after the
                  distributions made pursuant to clause (i) above, payments of
                  principal shall be allocated as follows: to REMIC I Regular
                  interests I-1-A through I-60-B starting with the lowest
                  numerical denomination until the Uncertificated Principal
                  Balance of each such REMIC I Regular Interest is reduced to
                  zero, provided that, for REMIC I Regular Interests with the
                  same numerical denomination, such payments of principal shall
                  be allocated pro rata between such REMIC I Regular Interests.

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                  (2) On each Distribution Date, the following amounts, in the
following order of priority, shall be distributed by REMIC I to REMIC II on
account of REMIC I Regular Interests II-1-A through II-60-B or withdrawn from
the Distribution Account and distributed to the holders of the Class R-1
Certificates, as the case may be:

                           (i) to the Holders of each REMIC I Regular Interest
                           II-1-A through II-60-B, pro rata, in an amount equal
                           to (A) Uncertificated Accrued Interest for such REMIC
                           I Regular Interests for such Distribution Date, plus
                           (B) any amounts payable in respect thereof remaining
                           unpaid from previous Distribution Dates.

                           (ii) to the extent of amounts remaining after the
                           distributions made pursuant to clause (i) above,
                           payments of principal shall be allocated as follows:
                           to REMIC I Regular interests II-1-A through II-60-B
                           starting with the lowest numerical denomination until
                           the Uncertificated Principal Balance of each such
                           REMIC I Regular Interest is reduced to zero, provided
                           that, for REMIC I Regular Interests with the same
                           numerical denomination, such payments of principal
                           shall be allocated pro rata between such REMIC I
                           Regular Interests.

                  (3) On each Distribution Date, the following amounts, in the
following order of priority, shall be distributed by REMIC I to REMIC II on
account of REMIC I Regular Interests III-1-A through III-60-B or withdrawn from
the Distribution Account and distributed to the holders of the Class R-1
Certificates, as the case may be:

                           (i) to the Holders of each REMIC I Regular Interest
                           III-1-A through II-60-B, pro rata, in an amount equal
                           to (A) Uncertificated Accrued Interest for such REMIC
                           I Regular Interests for such Distribution Date, plus
                           (B) any amounts payable in respect thereof remaining
                           unpaid from previous Distribution Dates.

                           (ii) to the extent of amounts remaining after the
                           distributions made pursuant to clause (i) above,
                           payments of principal shall be allocated as follows:
                           to REMIC I Regular interests III-1-A through III-60-B
                           starting with the lowest numerical denomination until
                           the Uncertificated Principal Balance of each such
                           REMIC I Regular Interest is reduced to zero, provided
                           that, for REMIC I Regular Interests with the same
                           numerical denomination, such payments of principal
                           shall be allocated pro rata between such REMIC I
                           Regular Interests.

                  (4) On each Distribution Date, amounts representing Prepayment
Charges on the Mortgage loans shall be deemed distributed to REMIC I Regular
Interest P, provided that such amounts shall not reduce the Uncertificated
Principal Balance of REMIC I Regular Interest P. On the Distribution Date
immediately following the expiration of the latest Prepayment Charge term as
identified on the Mortgage Loan Schedule, $100 shall be deemed distributed in

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respect of REMIC I Regular Interest P in reduction of the Uncertificated
Principal Balance thereof.

         (c) (1) On each Distribution Date, the following amounts, in the
following order of priority, shall be distributed by REMIC II to REMIC III on
account of the REMIC II Regular Interests or withdrawn from the Distribution
Account and distributed to the holders of the Class R-2 Certificates, as the
case may be:

                  (i) to the Holders of REMIC II Regular Interest IO, in an
                  amount equal to (A) Uncertificated Accrued Interest for such
                  REMIC II Regular Interest for such Distribution Date, plus (B)
                  any amounts in respect thereof remaining unpaid from previous
                  Distribution Dates.

                  (ii) to the extent of the REMIC II Marker Allocation
                  Percentage of the Interest Funds remaining after the
                  distributions pursuant to clause (i), to the Holders of each
                  REMIC II Regular Interest (other than REMIC II Regular
                  Interests IO, 1A, 1B, 2A, 2B, 3A, 3B, XX and P) pro rata, in
                  an amount equal to (A) Uncertificated Accrued Interest for
                  such REMIC II Regular Interest for such Distribution Date,
                  plus (B) any amounts in respect thereof remaining unpaid from
                  previous Distribution Dates. Amounts payable as Uncertificated
                  Accrued Interest in respect of REMIC II Regular Interest ZZ
                  shall be reduced when the REMIC II Overcollateralization
                  Amount is less than the REMIC II Required
                  Overcollateralization Amount, by the lesser of (x) the amount
                  of such difference and (y) the Maximum Uncertificated Accrued
                  Interest Deferral Amount, and such amount will be payable to
                  the Holders of REMIC II Regular Interest I-A-1, REMIC II
                  Regular Interest I-A-2, REMIC II Regular Interest I-A-3, REMIC
                  II Regular Interest II-A-1, REMIC II Regular Interest II-A-2,
                  REMIC II Regular Interest III-A-1, REMIC II Regular Interest
                  III-A-2, REMIC II Regular Interest M-1, REMIC II Regular
                  Interest M-2, REMIC II Regular Interest M-3, REMIC II Regular
                  Interest M-4, REMIC II Regular Interest M-5, REMIC II Regular
                  Interest M-6, REMIC II Regular Interest M-7 and REMIC II
                  Regular Interest M-8 in the same proportion as the Extra
                  Principal Distribution Amount is allocated to the
                  Corresponding Certificates, and the Uncertificated Principal
                  Balance of REMIC II Regular Interest ZZ shall be increased by
                  such amount;

                  (iii) to the extent of the REMIC II Sub WAC Allocation
                  Percentage of the Interest Funds remaining after the
                  distribution pursuant to clause (i), to the Holders of REMIC
                  II Regular Interest 1A, REMIC II Regular Interest 1B, REMIC II
                  Regular Interest 2A, REMIC II Regular Interest 2B, REMIC II
                  Regular Interest 3A, REMIC II Regular Interest 3B and REMIC II
                  Regular Interest XX, pro rata, an amount equal to (A) the
                  Uncertificated Accrued Interest for such Distribution Date,
                  plus (B) any

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<PAGE>

                  amounts in respect thereof remaining unpaid from previous
                  Distribution Dates;

                  (iv) to the Holders of REMIC II Regular Interests (other than
                  REMIC II Regular Interests IO, 1A, 1B, 2A, 2B, 3A, 3B XX and
                  P) in an amount equal to the REMIC II Marker Allocation
                  Percentage of the remainder of the Interest Funds and
                  Principal Funds for all Loan Groups for such Distribution Date
                  after the distributions made pursuant to clauses (i), (ii) and
                  (iii) above, allocated as follows:

                  (A) 98% of such remainder to the Holders of REMIC II Regular
Interest AA, until the Uncertificated Principal Balance of such REMIC II Regular
Interest is reduced to zero;

                  (B) 2% of such remainder, first, to the Holders of REMIC II
Regular Interest I-A-1, REMIC II Regular Interest I-A-2, REMIC II Regular
Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular Interest
II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular Interest III-A-2,
REMIC II Regular Interest M-1, REMIC II Regular Interest M-2, REMIC II Regular
Interest M-3, REMIC II Regular Interest M-4, REMIC II Regular Interest M-5,
REMIC II Regular Interest M-6, REMIC II Regular Interest M-7 and REMIC II
Regular Interest M-8, in an aggregate amount equal to 1% of and in the same
proportion as principal payments are allocated to the Corresponding
Certificates, until the Uncertificated Principal Balances of such REMIC II
Regular Interests are reduced to zero; and second, to the Holders of REMIC II
Regular Interest ZZ, until the Uncertificated Principal Balance of such REMIC II
Regular Interest is reduced to zero; then

                  (C) any remaining amount to the Holders of the Class R-2
Certificates;

                  (v) to the Holders of REMIC II Regular Interest 1A, REMIC II
                  Regular Interest 1B, REMIC II Regular Interest 2A, REMIC II
                  Regular Interest 2B, REMIC II Regular Interest 3A, REMIC II
                  Regular Interest 3B and REMIC II Regular Interest XX, in an
                  amount equal to the REMIC II Sub WAC Allocation Percentage of
                  the remainder of the Interest Funds and Principal Funds for
                  all Loan Groups for such Distribution Date after the
                  distributions made pursuant to clauses (i), (ii) and (iii)
                  above, first, so as to keep the Uncertificated Principal
                  Balance of each REMIC II Regular Interest ending with the
                  designation "B" equal to 0.01% of the aggregate Stated
                  Principal Balance of the Mortgage Loans in the related Loan
                  Group; second, to each REMIC II Regular Interest ending with
                  the designation "A," so that the Uncertificated Principal
                  Balance of each such REMIC II Regular Interest is equal to
                  0.01% of the excess of (x) the aggregate Stated Principal
                  Balance of the Mortgage Loans in the related Loan Group over
                  (y) the current Certificate Principal Balance of the Class A
                  Certificate related to such Loan Group (except that if any
                  such excess is a larger number than in the preceding
                  distribution period, the least amount

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<PAGE>

                  of principal shall be distributed to such REMIC II Regular
                  Interests such that the REMIC II Subordinated Balance Ratio is
                  maintained); and third, any remaining principal to REMIC II
                  Regular Interest XX.

                  (vi) to the Holders of REMIC II Regular Interest P, 100% of
                  the amounts deemed distributed on REMIC I Regular Interest P.

         (d) On each Distribution Date, an amount equal to the amounts
distributed pursuant to Sections 5.04(a)(4)(C), (D) and (G) on such date shall
be deemed distributed from REMIC III to REMIC IV in respect of the Class CE
Distribution Amount distributable to the Class CE Interest.

         (e) On each Distribution Date, 100% of the amounts deemed distributed
on REMIC II Regular Interest P shall be deemed distributed by REMIC III to REMIC
V in respect of the Class P Interest.

         (f) On each Distribution Date, 100% of the amounts deemed distributed
on REMIC II Regular Interest IO shall be deemed distributed by REMIC III to
REMIC VI in respect of the Class IO Interest. Such amounts shall be deemed
distributed by REMIC VI to the Swap Administrator for deposit into the Swap
Account.

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                                   ARTICLE VI

                                THE CERTIFICATES

                  Section 6.01 THE CERTIFICATES.

         The Certificates shall be substantially in the forms attached hereto as
Exhibits A-1 through A-5. The Certificates shall be issuable in registered form,
in the minimum dollar denominations, integral dollar multiples in excess thereof
(except that one Certificate of each Class may be issued in a different amount
which must be in excess of the applicable minimum dollar denomination) and
aggregate dollar denominations as set forth in the following table:

                   MINIMUM        INTEGRAL MULTIPLE IN     ORIGINAL CERTIFICATE
  CLASS         DENOMINATION       EXCESS OF MINIMUM        PRINCIPAL BALANCE
-----------   ----------------    --------------------     ---------------------
  I-A-1             $25,000              $1.00              $   110,488,000.00
  I-A-2             $25,000              $1.00              $    52,281,000.00
  I-A-3             $25,000              $1.00              $    13,799,000.00
 II-A-1             $25,000              $1.00              $   176,116,000.00
 II-A-2             $25,000              $1.00              $    44,029,000.00
 III-A-1            $25,000              $1.00              $    92,183,000.00
 III-A-2            $25,000              $1.00              $    23,046,000.00
   M-1              $25,000              $1.00              $    43,149,000.00
   M-2              $25,000              $1.00              $    34,714,000.00
   M-3              $25,000              $1.00              $     9,408,000.00
   M-4              $25,000              $1.00              $     9,733,000.00
   M-5              $25,000              $1.00              $     7,462,000.00
   M-6              $25,000              $1.00              $     6,488,000.00
   M-7              $25,000              $1.00              $     6,488,000.00
   M-8              $25,000              $1.00              $     6,488,000.00
   CE                10%                   1%               $    12,977,412.18
    P               $   100               N/A               $           100.00
   R-1              100%                  N/A                      N/A
   R-2              100%                  N/A                      N/A
   R-3              100%                  N/A                      N/A
   RX               100%                  N/A                      N/A

         The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer. Certificates bearing the manual
or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall bind
the Trustee, notwithstanding that such individuals or any of them have ceased to
be so authorized prior to the authentication and delivery of such Certificates
or did not hold such offices at the date of such authentication and delivery. No
Certificate shall be entitled to any benefit under this Agreement, or be valid
for any purpose, unless there appears on such Certificate the countersignature
of the Trustee by manual signature, and such countersignature upon any
Certificate shall be conclusive evidence, and the only evidence, that

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<PAGE>

such Certificate has been duly countersigned and delivered hereunder. All
Certificates shall be dated the date of their countersignature. On the Closing
Date, the Trustee shall authenticate the Certificates to be issued at the
written direction of the Depositor, or any affiliate thereof.

         The Depositor shall provide, or cause to be provided, to the Trustee on
a continuous basis, an adequate inventory of Certificates to facilitate
transfers.

         Section 6.02 CERTIFICATE REGISTER; REGISTRATION OF TRANSFER AND
EXCHANGE OF CERTIFICATES.

         (a) The Trustee shall maintain, or cause to be maintained in accordance
with the provisions of Section 6.09 hereof, a Certificate Register for the Trust
Fund in which, subject to the provisions of subsections (b) and (c) below and to
such reasonable regulations as it may prescribe, the Trustee shall provide for
the registration of Certificates and of Transfers and exchanges of Certificates
as herein provided. Upon surrender for registration of Transfer of any
Certificate, the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Certificates of the same
Class and of like aggregate Percentage Interest.

         At the option of a Certificateholder, Certificates may be exchanged for
other Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest upon surrender of the Certificates to be
exchanged at the office or agency of the Trustee. Whenever any Certificates are
so surrendered for exchange, the Trustee shall execute, authenticate, and
deliver the Certificates that the Certificateholder making the exchange is
entitled to receive. Every Certificate presented or surrendered for registration
of Transfer or exchange shall be accompanied by a written instrument of Transfer
in form satisfactory to the Trustee duly executed by the holder thereof or his
attorney duly authorized in writing.

         No service charge to the Certificateholders shall be made for any
registration of Transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any Transfer or exchange of Certificates may be required.

         All Certificates surrendered for registration of Transfer or exchange
shall be canceled and subsequently destroyed by the Trustee in accordance with
the Trustee's customary procedures.

         (b) No Transfer of a Private Certificate shall be made unless such
Transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under the Securities Act and such state securities
laws. In the event that a Transfer is to be made in reliance upon an exemption
from the Securities Act and such laws, in order to assure compliance with the
Securities Act and such laws, the Certificateholder desiring to effect such
Transfer and such Certificateholder's prospective transferee shall each certify
to the Trustee in writing the facts surrounding the Transfer by (x)(i) the
delivery to the Trustee by the Certificateholder desiring to effect such
transfer of a certificate substantially in the form set forth in Exhibit D (the
"Transferor Certificate") and (ii) the delivery by the Certificateholder's
prospective transferee of (A) a letter

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<PAGE>

in substantially the form of Exhibit E (the "Investment Letter") if the
prospective transferee is an Institutional Accredited Investor or (B) a letter
in substantially the form of Exhibit F (the "Rule 144A and Related Matters
Certificate") if the prospective transferee is a QIB or (y) there shall be
delivered to the Trustee an Opinion of Counsel addressed to the Trustee that
such Transfer may be made pursuant to an exemption from the Securities Act,
which Opinion of Counsel shall not be an expense of the Depositor, the Seller,
the Master Servicer or the Trustee. The Depositor shall provide to any Holder of
a Private Certificate and any prospective transferee designated by any such
Holder, information regarding the related Certificates 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 Certificate
without registration thereof under the Securities Act pursuant to the
registration exemption provided by Rule 144A. The Trustee and the Master
Servicer shall cooperate with the Depositor in providing the Rule 144A
information referenced in the preceding sentence, including providing to the
Depositor such information regarding the Certificates, the Mortgage Loans and
other matters regarding the Trust Fund as the Depositor shall reasonably request
to meet its obligation under the preceding sentence. Each Holder of a Private
Certificate desiring to effect such Transfer shall, and does hereby agree to,
indemnify the Trustee, the Depositor, the Seller and the Master Servicer against
any liability that may result if the Transfer is not so exempt or is not made in
accordance with such federal and state laws.

         Prior to the termination of the Swap Agreement, no Transfer of a Class
A Certificate or Class M Certificate (other than a Class M-7 Certificate or
Class M-8 Certificate) shall be made unless either (i) the Trustee and the
Master Servicer shall have received a representation from the transferee of such
Certificate acceptable to and in form and substance satisfactory to the Trustee
and the Master Servicer, to the effect that such transferee is not an employee
benefit plan subject to Section 406 of ERISA or a plan subject to Section 4975
of the Code (either a "Plan"), or a Person acting on behalf of any such plan or
using the assets of any such plan, or (ii) the transferee provides a
representation, or is deemed to represent in the case of the Global Certificate
that the proposed transfer or holding of such Certificate are eligible for
exemptive relief under an individual or class prohibited transaction exemption,
including, but not limited to, Prohibited Transaction Exemption ("PTE") 84-14,
PTE 91-38, PTE 90-1, PTE 95-60 or PTE 96-23.

         Subsequent to the termination of the Swap Agreement, each beneficial
owner of a Class M Certificate (other than a Class M-7 Certificate or Class M-8
Certificate) or any interest therein shall be deemed to have represented, by
virtue of its acquisition or holding of that certificate or interest therein,
that either (i) it is not a Plan or investing with "Plan Assets", (ii) it has
acquired and is holding such certificate in reliance on the Exemption, and that
it understands that there are certain conditions to the availability of the
Exemption, including that the certificate must be rated, at the time of
purchase, not lower than "BBB-" (or its equivalent) by S&P, Fitch Ratings or
Moody's, and the certificate is so rated or (iii) (1) it is an insurance
company, (2) the source of funds used to acquire or hold the certificate or
interest therein is an "insurance company general account," as such term is
defined in PTE 95-60, and (3) the conditions in Sections I and III of PTCE 95-60
have been satisfied.

         No Transfer of a Class CE, Class P, Residual, Class M-7 or Class M-8
Certificate shall be made unless either (i) the Trustee and the Master Servicer
shall have received a representation

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<PAGE>

from the transferee of such Certificate acceptable to and in form and substance
satisfactory to the Trustee and the Master Servicer, to the effect that such
transferee is not an employee benefit plan subject to Section 406 of ERISA or a
plan subject to Section 4975 of the Code (either a "plan"), or a Person acting
on behalf of any such plan or using the assets of any such plan, or (ii) in the
case of any such Certificate presented for registration in the name of an
employee benefit plan subject to ERISA, or a plan subject to Section 4975 of the
Code (or comparable provisions of any subsequent enactments), or a trustee of
any such plan or any other person acting on behalf of any such plan, the Trustee
shall have received an Opinion of Counsel for the benefit of the Trustee and the
Master Servicer and on which they may rely, satisfactory to the Trustee, to the
effect that the purchase and holding of such Certificate will not constitute or
result in the assets of the Trust being deemed to be "plan assets" under ERISA
or the Code, will not result in any prohibited transactions under ERISA or
Section 4975 of the Code and will not subject the Trustee, the Master Servicer
or the Depositor to any obligation in addition to those expressly undertaken in
this Agreement, which Opinion of Counsel shall not be an expense of the Trustee,
the Master Servicer or the Depositor, or (iii) in the case of a Class M-7
Certificate or Class M-8 Certificate, the transferee provides a representation,
or is deemed to represent in the case of the Global Certificate or an opinion of
counsel to the effect that the proposed transfer or holding of such Class M-7
Certificate or Class M-8 Certificate and the servicing, management and operation
of the Trust and its assets: (I) will not result in any prohibited transaction
which is not covered under PTE 84-14, PTE 91-38, PTE 90-1, PTE 95-60 or PTE
96-23 and (II) will not give rise to any obligation on the part of the
Depositor, the Master Servicer or the Trustee. Notwithstanding anything else to
the contrary herein, any purported transfer of an ERISA Restricted Certificate
to or on behalf of an employee benefit plan subject to Section 406 of ERISA or a
plan subject to Section 4975 of the Code without the delivery of the Opinion of
Counsel as described above shall be void and of no effect; provided that the
restriction set forth in this sentence shall not be applicable if there has been
delivered to the Trustee an Opinion of Counsel meeting the requirements of
clause (ii) of the first sentence of this paragraph. Neither the Trustee nor the
Master Servicer shall be required to monitor, determine or inquire as to
compliance with the transfer restrictions with respect to any ERISA Restricted
Certificate that is a Book-Entry Certificate, and neither the Trustee nor the
Master Servicer shall have any liability for transfers of any such Book-Entry
Certificates made through the book-entry facilities of any Depository or between
or among participants of the Depository or Certificate Owners made in violation
of the transfer restrictions set forth herein. Neither the Trustee nor the
Master Servicer shall be under any liability to any Person for any registration
of transfer of any ERISA Restricted Certificate that is in fact not permitted by
this Section 6.02(b) or for making any payments due on such Certificate to the
Holder thereof or taking any other action with respect to such Holder under the
provisions of this Agreement. The Trustee shall be entitled, but not obligated,
to recover from any Holder of any ERISA Restricted Certificate that was in fact
an employee benefit plan subject to Section 406 of ERISA or a plan subject to
Section 4975 of the Code or a Person acting on behalf of any such plan at the
time it became a Holder or, at such subsequent time as it became such a plan or
Person acting on behalf of such a plan, all payments made on such ERISA
Restricted Certificate at and after either such time. Any such payments so
recovered by the Trustee shall be paid and delivered by the Trustee to the last
preceding Holder of such Certificate that is not such a plan or Person acting on
behalf of a plan.

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<PAGE>

         (c) Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

                           (i) Each Person holding or acquiring any Ownership
                  Interest in a Residual Certificate shall be a Permitted
                  Transferee and shall promptly notify the Trustee of any change
                  or impending change in its status as a Permitted Transferee.

                           (ii) No Ownership Interest in a Residual Certificate
                  may be registered on the Closing Date or thereafter
                  transferred, and the Trustee shall not register the Transfer
                  of any Residual Certificate unless, in addition to the
                  certificates required to be delivered to the Trustee under
                  subparagraph (b) above, the Trustee shall have been furnished
                  with an affidavit (a "Transfer Affidavit") of the initial
                  owner or the proposed transferee in the form attached hereto
                  as Exhibit C.

                           (iii) Each Person holding or acquiring any Ownership
                  Interest in a Residual Certificate shall agree (A) to obtain a
                  Transfer Affidavit from any other Person to whom such Person
                  attempts to Transfer its Ownership Interest in a Residual
                  Certificate, (B) to obtain a Transfer Affidavit from any
                  Person for whom such Person is acting as nominee, trustee or
                  agent in connection with any Transfer of a Residual
                  Certificate and (C) not to Transfer its Ownership Interest in
                  a Residual Certificate or to cause the Transfer of an
                  Ownership Interest in a Residual Certificate to any other
                  Person if it has actual knowledge that such Person is not a
                  Permitted Transferee.

                           (iv) Any attempted or purported Transfer of any
                  Ownership Interest in a Residual Certificate in violation of
                  the provisions of this Section 6.02(c) shall be absolutely
                  null and void and shall vest no rights in the purported
                  Transferee. If any purported transferee shall become a Holder
                  of a Residual Certificate in violation of the provisions of
                  this Section 6.02(c), then the last preceding Permitted
                  Transferee shall be restored to all rights as Holder thereof
                  retroactive to the date of registration of Transfer of such
                  Residual Certificate. The Trustee shall be under no liability
                  to any Person for any registration of Transfer of a Residual
                  Certificate that is in fact not permitted by Section 6.02(b)
                  and this Section 6.02(c) or for making any payments due on
                  such Certificate to the Holder thereof or taking any other
                  action with respect to such Holder under the provisions of
                  this Agreement so long as the Transfer was registered after
                  receipt of the related Transfer Affidavit. The Trustee shall
                  be entitled but not obligated to recover from any Holder of a
                  Residual Certificate that was in fact not a Permitted
                  Transferee at the time it became a Holder or, at such
                  subsequent time as it became other than a Permitted
                  Transferee, all payments made on such Residual Certificate at
                  and after either such time. Any such

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                  payments so recovered by the Trustee shall be paid and
                  delivered by the Trustee to the last preceding Permitted
                  Transferee of such Certificate.

                           (v) The Master Servicer shall make available within
                  60 days of written request from the Trustee, all information
                  necessary to compute any tax imposed under Section 860E(e) of
                  the Code as a result of a Transfer of an Ownership Interest in
                  a Residual Certificate to any Holder who is not a Permitted
                  Transferee.

The restrictions on Transfers of a Residual Certificate set forth in this
Section 6.02(c) shall cease to apply (and the applicable portions of the legend
on a Residual Certificate may be deleted) with respect to Transfers occurring
after delivery to the Trustee of an Opinion of Counsel addressed to the Trustee,
which Opinion of Counsel shall not be an expense of the Trustee, the Seller or
the Master Servicer to the effect that the elimination of such restrictions will
not cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI, as
applicable, to fail to qualify as a REMIC at any time that the Certificates are
outstanding or result in the imposition of any tax on the Trust Fund, a
Certificateholder or another Person. Each Person holding or acquiring any
Ownership Interest in a Residual Certificate hereby consents to any amendment of
this Agreement that, based on an Opinion of Counsel addressed to the Trustee and
furnished to the Trustee, is reasonably necessary (a) to ensure that the record
ownership of, or any beneficial interest in, a Residual Certificate is not
transferred, directly or indirectly, to a Person that is not a Permitted
Transferee and (b) to provide for a means to compel the Transfer of a Residual
Certificate that is held by a Person that is not a Permitted Transferee to a
Holder that is a Permitted Transferee.

         (d) The Class CE Certificate shall not be held by more than one Holder.

         (e) The preparation and delivery of all certificates and opinions
referred to above in this Section 6.02 shall not be an expense of the Trust
Fund, the Trustee, the Depositor, the Seller or the Master Servicer.

         Section 6.03 MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.

         If (a) any mutilated Certificate is surrendered to the Trustee, or the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Certificate and of the ownership thereof and (b) there is delivered to
the Trustee such security or indemnity as may be required by them to save each
of them harmless, then, in the absence of notice to the Trustee that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute, authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
Class, tenor and Percentage Interest. In connection with the issuance of any new
Certificate under this Section 6.03, the Trustee may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of
the Trustee) connected therewith. Any replacement Certificate issued pursuant to
this Section 6.03 shall constitute complete and indefeasible evidence of
ownership in the Trust Fund, as if originally issued, whether or not the lost,
stolen or destroyed Certificate shall be found at any time. All Certificates
surrendered to the

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Trustee under the terms of this Section 6.03 shall be canceled and destroyed by
the Trustee in accordance with its standard procedures without liability on its
part.

         Section 6.04 PERSONS DEEMED OWNERS.

         The Trustee and any agent of the Trustee may treat the person in whose
name any Certificate is registered as the owner of such Certificate for the
purpose of receiving distributions as provided in this Agreement and for all
other purposes whatsoever, and neither the Trustee nor any agent of the Trustee
shall be affected by any notice to the contrary.

         Section 6.05 ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND ADDRESSES.

         If three or more Certificateholders (a) request such information in
writing from the Trustee, (b) state that such Certificateholders desire to
communicate with other Certificateholders with respect to their rights under
this Agreement or under the Certificates, and (c) provide a copy of the
communication that such Certificateholders propose to transmit or if the
Depositor or the Master Servicer shall request such information in writing from
the Trustee, then the Trustee shall, within ten Business Days after the receipt
of such request, provide the Depositor, the Master Servicer or such
Certificateholders at such recipients' expense the most recent list of the
Certificateholders of the Trust Fund held by the Trustee, if any. The Depositor
and every Certificateholder, by receiving and holding a Certificate, agree that
the Trustee shall not be held accountable by reason of the disclosure of any
such information as to the list of the Certificateholders hereunder, regardless
of the source from which such information was derived.

         Section 6.06 BOOK-ENTRY CERTIFICATES.

         The Regular Certificates (other than the Class M-7, Class M-8, Class CE
and Class P Certificates), upon original issuance, shall be issued in the form
of one or more typewritten Certificates representing the Book-Entry
Certificates, to be delivered to the Depository by or on behalf of the
Depositor. Such Certificates shall initially be registered on the Certificate
Register in the name of the Depository or its nominee, and no Certificate Owner
of such Certificates will receive a definitive certificate representing such
Certificate Owner's interest in such Certificates, except as provided in Section
6.08. Unless and until definitive, fully registered Certificates ("Definitive
Certificates") have been issued to the Certificate Owners of such Certificates
pursuant to Section 6.08:

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

         (b) the Depositor and the Trustee may deal with the Depository and the
Depository Participants for all purposes (including the making of distributions)
as the authorized representative of the respective Certificate Owners of such
Certificates;

         (c) registration of the Book-Entry Certificates may not be transferred
by the Trustee except to another Depository;

         (d) the rights of the respective Certificate Owners of such
Certificates shall be exercised only through the Depository and the Depository
Participants and shall be limited to

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those established by law and agreements between the Owners of such Certificates
and the Depository and/or the Depository Participants. Pursuant to the
Depository Agreement, unless and until Definitive Certificates are issued
pursuant to Section 6.08, the Depository will make book-entry transfers among
the Depository Participants and receive and transmit distributions of principal
and interest on the related Certificates to such Depository Participants;

         (e) the Depository may collect its usual and customary fees, charges
and expenses from its Depository Participants;

         (f) the Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its Depository
Participants; and

         (g) to the extent that the provisions of this Section conflict with any
other provisions of this Agreement, the provisions of this Section shall
control.

         For purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Certificateholders
evidencing a specified percentage of the aggregate unpaid principal amount of
any Class of Certificates, such direction or consent may be given by Certificate
Owners (acting through the Depository and the Depository Participants) owning
Book-Entry Certificates evidencing the requisite percentage of principal amount
of such Class of Certificates.

         Section 6.07 NOTICES TO DEPOSITORY.

         Whenever any notice or other communication is required to be given to
Certificateholders of a Class with respect to which Book-Entry Certificates have
been issued, unless and until Definitive Certificates shall have been issued to
the related Certificate Owners, the Trustee shall give all such notices and
communications to the Depository.

         Section 6.08 DEFINITIVE CERTIFICATES.

         If, after Book-Entry Certificates have been issued with respect to any
Certificates, (a) the Depositor or the Depository advises the Trustee that the
Depository is no longer willing or able to discharge properly its
responsibilities under the Depository Agreement with respect to such
Certificates and the Depositor is unable to locate a qualified successor or (b)
the Depositor, at its sole option, advises the Trustee that it elects to
terminate the book-entry system with respect to such Certificates through the
Depository, then the Trustee shall notify all Certificate Owners of such
Certificates, through the Depository, of the occurrence of any such event and of
the availability of Definitive Certificates to applicable Certificate Owners
requesting the same. The Depositor shall provide the Trustee with an adequate
inventory of certificates to facilitate the issuance and transfer of Definitive
Certificates. Upon surrender to the Trustee of any such Certificates by the
Depository, accompanied by registration instructions from the Depository for
registration, the Trustee shall countersign and deliver such Definitive
Certificates. Neither the Depositor nor the Trustee shall be liable for any
delay in delivery of such instructions and each may conclusively rely on, and
shall be protected in relying on, such instructions.

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         In addition, if an Event of Default has occurred and is continuing,
each Certificate Owner materially adversely affected thereby may at its option
request a Definitive Certificate evidencing such Certificate Owner's Voting
Rights in the related Class of Certificates. In order to make such request, such
Certificate Owner shall, subject to the rules and procedures of the Depository,
provide the Depository or the related Depository Participant with directions for
the Trustee to exchange or cause the exchange of the Certificate Owner's
interest in such Class of Certificates for an equivalent Voting Right in fully
registered definitive form. Upon receipt by the Trustee of instructions from the
Depository directing the Trustee to effect such exchange (such instructions to
contain information regarding the Class of Certificates and the Certificate
Principal Balance being exchanged, the Depository Participant account to be
debited with the decrease, the registered holder of and delivery instructions
for the definitive Certificate, and any other information reasonably required by
the Trustee), (i) the Trustee shall instruct the Depository to reduce the
related Depository Participant's account by the aggregate Certificate Principal
Balance of the definitive Certificate, (ii) the Trustee shall execute,
authenticate and deliver, in accordance with the registration and delivery
instructions provided by the Depository, a definitive Certificate evidencing
such Certificate Owner's Voting Rights in such Class of Certificates and (iii)
the Trustee shall execute and authenticate a new Book-Entry Certificate
reflecting the reduction in the Certificate Principal Balance of such Class of
Certificates by the amount of the definitive Certificates.

Section 6.09      MAINTENANCE OF OFFICE OR AGENCY.

         The Trustee will maintain or cause to be maintained at its expense an
office or offices or agency or agencies at the Corporate Trust Office where
Certificates may be surrendered for registration of transfer or exchange. The
Trustee initially designates its Corporate Trust Office, as the office for such
purposes. The Trustee will give prompt written notice to the Certificateholders
of any change in such location of any such office or agency.

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                                  ARTICLE VII

                      THE DEPOSITOR AND THE MASTER SERVICER

         Section 7.01 LIABILITIES OF THE DEPOSITOR AND THE MASTER SERVICER.

         Each of the Depositor, and 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 7.02 MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE MASTER
SERVICER.

         (a) Each of the Depositor and 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 Certificates or any of the Mortgage Loans
and to perform its duties under this Agreement.

         (b) Any Person into which the Depositor or the Master Servicer may be
merged or consolidated, or any corporation resulting from any merger or
consolidation to which the Depositor or the Master Servicer shall be a party, or
any Person succeeding to the business of the Depositor or the Master Servicer,
shall be the successor of the Depositor or 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 7.03 INDEMNIFICATION OF THE TRUSTEE AND THE MASTER SERVICER.

         (a) The Master Servicer agrees to indemnify the Indemnified Persons
for, and to hold them harmless against, any loss, liability or expense
(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,
any claim or legal action (including any pending or threatened claim or legal
action) relating to this Agreement, including any powers of attorney delivered
pursuant to this Agreement, the Custodial Agreement or the Certificates (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),
the Trustee shall have given the Master Servicer and the Seller written notice
thereof promptly after the Trustee shall have with respect to such claim or
legal action knowledge thereof; provided, however that the failure to give such
notice shall not relieve the Master Servicer of its indemnification obligations
hereunder. This indemnity shall survive the resignation or removal of the
Trustee or Master Servicer and the termination of this Agreement.

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         (b) The Seller will indemnify any Indemnified Person for any loss,
liability or expense of any Indemnified Person not otherwise paid or covered
pursuant to Subsection (a) above.

         Section 7.04 LIMITATIONS ON LIABILITY OF THE DEPOSITOR, THE MASTER
SERVICER AND OTHERS. Subject to the obligation of the Master Servicer to
indemnify the Indemnified Persons pursuant to Section 7.03:

         (a) Neither the Depositor, the Master Servicer nor any of the
directors, officers, employees or agents of the Depositor and the Master
Servicer shall be under any liability to the Indemnified Persons, the Trust Fund
or the Certificateholders 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 Depositor, 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 Depositor, the Master Servicer and any director, officer,
employee or agent of the Depositor and 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 Depositor, the Master Servicer, the Trustee, the Custodian and
any director, officer, employee or agent of the Depositor, the Master Servicer,
the Trustee, the Custodian shall be indemnified by the Trust and held harmless
thereby against any loss, liability or expense (including reasonable legal fees
and disbursements of counsel) incurred on their part that may be sustained in
connection with, arising out of, or related to, any claim or legal action
(including any pending or threatened claim or legal action) relating to this
Agreement, the Custodial Agreement or the Certificates, other than (i) in the
case of the Master Servicer, (x) any such loss, liability or expense 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 (y) any such loss, liability or
expense 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, (ii) in the case of
the Trustee, any such loss, liability or expense incurred by reason of the
Trustee's willful misfeasance, bad faith or negligence in the performance of its
duties hereunder, or by reason of its reckless disregard of obligations and
duties hereunder and (iii) in the case of the Custodian, any such loss,
liability or expense incurred by reason of the Custodian's willful misfeasance,
bad faith or negligence in the performance of its duties under the Custodial
Agreement, or by reason of its reckless disregard of obligations and duties
thereunder.

         (d) Neither the Depositor nor the Master Servicer shall 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, with the consent of the Trustee (which consent shall

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not be unreasonably withheld), 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 Certificateholders hereunder. In
such event, the legal expenses and costs of such action and any liability
resulting therefrom (expect any loss, liability or expense incurred by reason of
reckless disregard of obligations and duties hereunder) shall be expenses, costs
and liabilities of the Trust Fund, and the Master Servicer shall be entitled to
be reimbursed therefor out of the Protected Account as provided by Section 4.02.
Nothing in this Subsection 7.04(d) shall affect the Master Servicer's obligation
to service and administer the Mortgage Loans pursuant to Article III.

         (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 Trust 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 Trustee if it has notice of such potential liabilities.

         Section 7.05 MASTER SERVICER NOT TO RESIGN. Except as provided in
Section 7.07, the Master Servicer shall not resign from the obligations and
duties hereby imposed on it except (i) with the prior consent of the Trustee
(which consents shall not be unreasonably withheld) or (ii) 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 Opinion of Counsel,
addressed to and delivered to, the Trustee. No such resignation by the Master
Servicer shall become effective until the Trustee or a successor to the Master
Servicer reasonably satisfactory to the Trustee shall have assumed the
responsibilities and obligations of the Master Servicer in accordance with
Section 8.02 hereof. The Trustee shall notify the Rating Agencies of the
resignation of the Master Servicer.

         Section 7.06 SUCCESSOR MASTER SERVICER. In connection with the
appointment of any successor Master Servicer or the assumption of the duties of
the Master Servicer, the Trustee may make such arrangements for the compensation
of such successor master servicer out of payments on the Mortgage Loans as the
Trustee and such successor master servicer shall agree. If the successor master
servicer does not agree that such market value is a fair price, such successor
master servicer shall obtain two quotations of market value from third parties
actively engaged in the servicing of single-family mortgage loans. In no event
shall the compensation of any successor master servicer exceed that permitted
the Master Servicer hereunder without the consent of all of the
Certificateholders.

         Section 7.07 SALE AND ASSIGNMENT OF MASTER SERVICING. The Master
Servicer may sell and assign its rights and delegate its duties and obligations
in its entirety as Master Servicer under this Agreement; provided, however,
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 the Trustee (as evidenced
in a writing signed by the Trustee); and (d) shall execute and deliver to the
Trustee an agreement, in form and substance reasonably

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satisfactory to the 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 rating of the
Certificates 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, the Trustee; and (iii) the Master Servicer assigning and
selling the master servicing shall deliver to the Trustee an Officer's
Certificate and an Opinion of Counsel addressed to the Trustee, 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.

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                                  ARTICLE VIII

                     DEFAULT; TERMINATION OF MASTER SERVICER

         Section 8.01 EVENTS OF DEFAULT.

         "Event of Default," wherever used herein, means any one of the
following events:

                           (i) any failure by the Master Servicer to remit to
                  the Trustee any amounts received or collected by the Master
                  Servicer in respect of the Mortgage Loans and required to be
                  remitted by it hereunder (other than any Advance), which
                  failure shall continue unremedied for one Business Day after
                  the date on which written notice of such failure shall have
                  been given to the Master Servicer by the Trustee or the
                  Depositor, or to the Trustee and the Master Servicer by the
                  Holders of Certificates evidencing not less than 25% of the
                  Voting Rights evidenced by the Certificates;

                           (ii) any failure by the Master Servicer to observe or
                  perform in any material respect any other of the covenants or
                  agreements on the part of the Master Servicer contained in
                  this Agreement or any breach of a representation or warranty
                  by the Master Servicer, which failure or breach shall continue
                  unremedied for a period of 60 days after the date on which
                  written notice of such failure shall have been given to Master
                  Servicer by the Trustee or the Depositor, or to the Trustee
                  and the Master Servicer by the Holders of Certificates
                  evidencing not less than 25% of the Voting Rights evidenced by
                  the Certificates;

                           (iii) a decree or order of a court or agency or
                  supervisory authority having jurisdiction in the premises for
                  the appointment of a receiver or liquidator in any insolvency,
                  readjustment of debt, marshalling of assets and liabilities or
                  similar proceedings, or for the winding-up or liquidation of
                  its affairs, shall have been entered against the Master
                  Servicer and such decree or order shall have remained in force
                  undischarged or unstayed for a period of 60 consecutive days;

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

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

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                           (vi) the Master Servicer assigns or delegates its
                  duties or rights under this Agreement in contravention of the
                  provisions permitting such assignment or delegation under
                  Sections 7.05 or 7.07; or

                           (vii) The Master Servicer fails to deposit, or cause
                  to be deposited, in the Distribution Account any Advance
                  (other than a Nonrecoverable Advance) by 5:00 p.m. New York
                  City time on the Distribution Account Deposit Date.

         If an Event of Default shall occur, then, and in each and every such
case, so long as such Event of Default shall not have been remedied, the Trustee
may, and at the direction of the Holders of Certificates evidencing not less
than 25% of the Voting Rights evidenced by the Certificates, the Trustee shall
in the case of any Event of Default described in clauses (i) through (vii)
above, by notice in writing to the Master Servicer (with a copy to each Rating
Agency), terminate all of the rights and obligations of the Master Servicer
under this Agreement and in and to the Mortgage Loans and the proceeds thereof,
other than its rights as a Certificateholder hereunder. On or after the receipt
by the Master Servicer of such written notice, all authority and power of the
Master Servicer hereunder, whether with respect to the Mortgage Loans or
otherwise, shall pass to and be vested in the Trustee, or any successor
appointed pursuant to Section 8.02 (a "Successor Master Servicer"). Such
Successor Master Servicer shall thereupon if such Successor Master Servicer is a
successor to the Master Servicer, make any Advance required by Article V,
subject, in the case of the Trustee, to Section 8.02. The Trustee is hereby
authorized and empowered to execute and deliver, on behalf of the terminated
Master Servicer, as attorney- in-fact or otherwise, any and all documents and
other instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of any Mortgage Loans and
related documents, or otherwise. Unless expressly provided in such written
notice, no such termination shall affect any obligation of the Master Servicer
to pay amounts owed pursuant to Article VII or Article IX. The Master Servicer
agrees to cooperate with the Trustee in effecting the termination of the Master
Servicer's responsibilities and rights hereunder, including, without limitation,
the transfer to the applicable Successor Master Servicer of all cash amounts
which shall at the time be credited to the Protected Account maintained pursuant
to Section 4.02, or thereafter be received with respect to the applicable
Mortgage Loans. The Trustee shall promptly notify the Rating Agencies of the
occurrence of an Event of Default known to the Trustee.

         Notwithstanding any termination of the activities of the Master
Servicer hereunder, the Master Servicer shall be entitled to receive, out of any
late collection of a Scheduled Payment on a Mortgage Loan that was due prior to
the notice terminating the Master Servicer's rights and obligations as Master
Servicer hereunder and received after such notice, that portion thereof to which
the Master Servicer would have been entitled pursuant to Sections 4.02 and to
receive any other amounts payable to the Master Servicer hereunder the
entitlement to which arose prior to the termination of its activities hereunder.

         Notwithstanding the foregoing, if an Event of Default described in
clause (vii) of this Section 8.01 shall occur, the Trustee shall, by notice in
writing to the Master Servicer, which may be delivered by telecopy, immediately
terminate all of the rights and obligations of the

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Master Servicer thereafter arising under this Agreement, but without prejudice
to any rights it may have as a Certificateholder or to reimbursement of Advances
and other advances of its own funds, and the Trustee shall act as provided in
Section 8.02 to carry out the duties of the Master Servicer, including the
obligation to make any Advance the nonpayment of which was an Event of Default
described in clause (vii) of this Section 8.01. Any such action taken by the
Trustee must be prior to the distribution on the relevant Distribution Date.

         Section 8.02 TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

         On and after the time the Master Servicer receives a notice of
termination pursuant to Section 8.01 hereof the Trustee shall automatically
become the successor to the Master Servicer with respect to the transactions set
forth or provided for herein and after a transition period (not to exceed 90
days), shall be subject to all the responsibilities, duties and liabilities
relating thereto placed on the Master Servicer by the terms and provisions
hereof; provided, however that, pursuant to Article V hereof, the Trustee in its
capacity as successor Master Servicer shall be responsible for making any
Advances required to be made by the Master Servicer immediately upon the
termination of the Master Servicer and any such Advance shall be made on the
Distribution Date on which such Advance was required to be made by the
predecessor Master Servicer. Effective on the date of such notice of
termination, as compensation therefor, the Trustee shall be entitled to all
compensation, reimbursement of expenses and indemnification that the Master
Servicer would have been entitled to if it had continued to act hereunder,
provided, however, that the Trustee shall not be (i) liable for any acts or
omissions of the Master Servicer, (ii) obligated to make Advances if it is
prohibited from doing so under applicable law, (iii) responsible for expenses of
the Master Servicer pursuant to Section 2.03 or (iv) obligated to deposit losses
on any Permitted Investment directed by the Master Servicer. Notwithstanding the
foregoing, the Trustee may, if it shall be unwilling to so act, or shall, if it
is prohibited by applicable law from making Advances pursuant to Article V or if
it is otherwise unable to so act, appoint, or petition a court of competent
jurisdiction to appoint, any established mortgage loan servicing institution the
appointment of which does not adversely affect the then current rating of the
Certificates by each Rating Agency 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. Any Successor Master Servicer
shall (i) be an institution that is a Fannie Mae and Freddie Mac approved
seller/servicer in good standing, that has a net worth of at least $15,000,000,
(ii) be acceptable to the Trustee (which consent shall not be unreasonably
withheld) and (iii) be willing to act as successor servicer of any Mortgage
Loans under this Agreement, and shall have executed and delivered to the
Depositor and the Trustee an agreement accepting such delegation and assignment,
that contains an assumption by such Person of the rights, powers, duties,
responsibilities, obligations and liabilities of the Master Servicer (other than
any liabilities of the Master Servicer hereof incurred prior to termination of
the Master Servicer under Section 8.01 or as otherwise set forth herein), with
like effect as if originally named as a party to this Agreement, provided that
each Rating Agency shall have acknowledged in writing that its rating of the
Certificates in effect immediately prior to such assignment and delegation will
not be qualified or reduced as a result of such assignment and delegation. If
the Trustee assumes the duties and responsibilities of the Master Servicer in
accordance with this Section 8.02, the Trustee shall not resign as Master
Servicer until a Successor Master Servicer has been appointed and has accepted
such appointment. Pending appointment of a successor to the Master Servicer

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hereunder, the Trustee, unless the Trustee is prohibited by law from so acting,
shall act in such capacity as hereinabove provided. In connection with such
appointment and assumption, the Trustee may make such arrangements for the
compensation of such successor out of payments on Mortgage Loans or otherwise as
it and such successor shall agree; provided that no such compensation unless
agreed to by the Certificateholders shall be in excess of that permitted the
Master Servicer hereunder. The Trustee and such successor shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any
such succession. Neither the Trustee nor any other Successor Master Servicer
shall be deemed to be in default hereunder by reason of any failure to make, or
any delay in making, any distribution hereunder or any portion thereof or any
failure to perform, or any delay in performing, any duties or responsibilities
hereunder, in either case caused by the failure of the Master Servicer to
deliver or provide, or any delay in delivering or providing, any cash,
information, documents or records to it.

         The costs and expenses of the Trustee in connection with the
termination of the Master Servicer, appointment of a Successor Master Servicer
and, if applicable, any transfer of servicing, including, without limitation,
all costs and expenses associated with the complete transfer of all servicing
data and the completion, correction or manipulation of such servicing data as
may be required by the Trustee to correct any errors or insufficiencies in the
servicing data or otherwise to enable the Trustee or the Successor Master
Servicer to service the related Mortgage Loans properly and effectively, to the
extent not paid by the terminated Master Servicer, shall be payable to the
Trustee pursuant to Section 9.05. Any successor to the Master Servicer as
successor servicer under any Subservicing Agreement shall give notice to the
applicable Mortgagors of such change of servicer and shall, during the term of
its service as successor servicer maintain in force the policy or policies that
the Master Servicer is required to maintain pursuant to Section 3.08.

         Section 8.03 NOTIFICATION TO CERTIFICATEHOLDERS.

         (a) Upon any termination of or appointment of a successor to the Master
Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and to each Rating Agency.

         (b) Within 60 days after the occurrence of any Event of Default, the
Trustee shall transmit by mail to all Certificateholders notice of each such
Event of Default hereunder actually known to a Responsible Officer of the
Trustee, unless such Event of Default shall have been cured or waived.

         Section 8.04 WAIVER OF DEFAULTS.

         The Trustee shall transmit by mail to all Certificateholders, within 60
days after the occurrence of any Event of Default actually known to a
Responsible Officer of the Trustee, unless such Event of Default shall have been
cured, notice of each such Event of Default hereunder known to the Trustee. The
Holders of Certificates evidencing not less than 51% of the Voting Rights may,
on behalf of all Certificateholders, waive any default by the Master Servicer in
the performance of its obligations hereunder and the consequences thereof,
except a default in the making of or the causing to be made of any required
distribution on the Certificates. Upon any such waiver of a past default, such
default shall be deemed to cease to exist, and any Event

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of Default arising therefrom shall be deemed to have been timely remedied for
every purpose of this Agreement. No such waiver shall extend to any subsequent
or other default or impair any right consequent thereon except to the extent
expressly so waived. The Trustee shall give notice of any such waiver to the
Rating Agencies.

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                                   ARTICLE IX

                             CONCERNING THE TRUSTEE

         Section 9.01 DUTIES OF TRUSTEE.

         (a) The Trustee, prior to the occurrence of an Event of Default and
after the curing or waiver of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set
forth in this Agreement as duties of the Trustee. If an Event of Default has
occurred and has not been cured or waived, the Trustee shall exercise such of
the rights and powers vested in it by this Agreement, and the same degree of
care and skill in their exercise, as a prudent person would exercise under the
circumstances in the conduct of such Person's own affairs.

         (b) Upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments which are specifically
required to be furnished to the Trustee pursuant to any provision of this
Agreement, the Trustee shall examine them to determine whether they are in the
form required by this Agreement; provided, however, that the Trustee shall not
be responsible for the accuracy or content of any resolution, certificate,
statement, opinion, report, document, order or other instrument furnished by the
Master Servicer; provided, further, that the Trustee shall not be responsible
for the accuracy or verification of any calculation provided to it pursuant to
this Agreement.

         (c) On each Distribution Date, the Trustee shall make monthly
distributions and the final distribution to the Certificateholders from funds in
the Distribution Account as provided in Sections 5.04 and 10.01 herein.

         (d) No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct; provided, however, that:

                           (i) Prior to the occurrence of an Event of Default,
                  and after the curing or waiver of all such Events of Default
                  which may have occurred, the duties and obligations of the
                  Trustee shall be determined solely by the express provisions
                  of this Agreement, the Trustee shall not be liable except for
                  the performance of their respective duties and obligations as
                  are specifically set forth in this Agreement, no implied
                  covenants or obligations shall be read into this Agreement
                  against the Trustee and, in the absence of bad faith on the
                  part of the Trustee, the Trustee may conclusively rely, as to
                  the truth of the statements and the correctness of the
                  opinions expressed therein, upon any certificates or opinions
                  furnished to the Trustee and conforming to the requirements of
                  this Agreement;

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

                           (iii) The Trustee shall not be liable with respect to
                  any action taken, suffered or omitted to be taken by it in
                  good faith in accordance with the directions of the Holders of
                  Certificates evidencing not less than 25% of the aggregate
                  Voting Rights of the Certificates (or such other percentage as
                  specifically set forth herein), if such action or non-action
                  relates to the time, method and place of conducting any
                  proceeding for any remedy available to the Trustee or
                  exercising any trust or other power conferred upon the Trustee
                  under this Agreement;

                           (iv) The Trustee shall not be required to take notice
                  or be deemed to have notice or knowledge of any default or
                  Event of Default unless a Responsible Officer of the Trustee
                  shall have actual knowledge thereof. In the absence of such
                  knowledge, the Trustee may conclusively assume there is no
                  such default or Event of Default;

                           (v) The Trustee shall not in any way be liable by
                  reason of any insufficiency in any Account held by or in the
                  name of Trustee unless it is determined by a court of
                  competent jurisdiction in a non-appealable judgment that the
                  Trustee's negligence or willful misconduct was the primary
                  cause of such insufficiency (except to the extent that the
                  Trustee is obligor and has defaulted thereon);

                           (vi) Anything in this Agreement to the contrary
                  notwithstanding, in no event shall the 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 Trustee has been advised of the likelihood of such loss
                  or damage and regardless of the form of action; and

                           (vii) None of the Master Servicer, the Seller, the
                  Depositor or the Trustee shall be responsible for the acts or
                  omissions of the other, it being understood that this
                  Agreement shall not be construed to render them partners,
                  joint venturers or agents of one another.

The Trustee shall not be required to expend or risk its own funds or otherwise
incur financial liability in the performance of any of its duties hereunder, or
in the exercise of any of its rights or powers, if there is reasonable ground
for believing that the repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it, and none of the
provisions contained in this Agreement shall in any event require the Trustee to
perform, or be responsible for the manner of performance of, any of the
obligations of the Master Servicer.

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         (e) All funds received by the Trustee and required to be deposited in
the Distribution Account pursuant to this Agreement will be promptly so
deposited by the Trustee.

         Section 9.02 CERTAIN MATTERS AFFECTING THE TRUSTEE.

         (a) Except as otherwise provided in Section 10.01:

                           (i) The Trustee may rely and shall be protected in
                  acting or refraining from acting in reliance on any resolution
                  or certificate of the Seller or the Master Servicer, any
                  certificates of auditors or any other certificate, statement,
                  instrument, opinion, report, notice, request, consent, order,
                  appraisal, bond or other paper or document believed by it to
                  be genuine and to have been signed or presented by the proper
                  party or parties;

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

                           (iii) The Trustee shall not be under any obligation
                  to exercise any of the trusts or powers vested in it by this
                  Agreement, other than its obligation to give notices pursuant
                  to this Agreement, or to institute, conduct or defend any
                  litigation hereunder or in relation hereto at the request,
                  order or direction of any of the Certificateholders pursuant
                  to the provisions of this Agreement, unless such
                  Certificateholders shall have offered to the Trustee
                  reasonable security or indemnity against the costs, expenses
                  and liabilities which may be incurred therein or thereby.
                  Nothing contained herein shall, however, relieve the Trustee
                  of the obligation, upon the occurrence of an Event of Default
                  of which a Responsible Officer of the Trustee has actual
                  knowledge (which has not been cured or waived), to exercise
                  such of the rights and powers vested in it by this Agreement,
                  and to use the same degree of care and skill in their
                  exercise, as a prudent person would exercise under the
                  circumstances in the conduct of his own affairs;

                           (iv) The Trustee shall not be liable in its
                  individual capacity 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) The Trustee shall not be bound to make any
                  investigation into the facts or matters stated in any
                  resolution, certificate, statement, instrument, opinion,
                  report, notice, request, consent, order, approval, bond or
                  other paper or document, unless requested in writing to do so
                  by Holders of Certificates evidencing not less than 25% of the
                  aggregate Voting Rights of the Certificates and provided that
                  the payment within a reasonable time to the Trustee of the

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                  costs, expenses or liabilities likely to be incurred by it in
                  the making of such investigation is, in the opinion of the
                  Trustee reasonably assured to the Trustee by the security
                  afforded to it by the terms of this Agreement. The Trustee may
                  require reasonable indemnity against such expense or liability
                  as a condition to taking any such action. The reasonable
                  expense of every such examination shall be paid by the
                  Certificateholders requesting the investigation;

                           (vi) The Trustee may execute any of the trusts or
                  powers hereunder or perform any duties hereunder either
                  directly or through Affiliates, agents or attorneys; provided,
                  however, that the Trustee may not appoint any paying agent to
                  perform any paying agent functions under this Agreement
                  without the express written consent of the Master Servicer,
                  which consents will not be unreasonably withheld. The Trustee
                  shall not be liable or responsible for the misconduct or
                  negligence of any of the Trustee's agents or attorneys or
                  paying agent appointed hereunder by the Trustee with due care
                  and, when required, with the consent of the Master Servicer;

                           (vii) Should the Trustee deem the nature of any
                  action required on its part to be unclear, the Trustee may
                  require prior to such action that it be provided by the
                  Depositor with reasonable further instructions; the right of
                  the Trustee to perform any discretionary act enumerated in
                  this Agreement shall not be construed as a duty, and the
                  Trustee shall not be accountable for other than its negligence
                  or willful misconduct in the performance of any such act;

                           (viii) The Trustee shall not be required to give any
                  bond or surety with respect to the execution of the trust
                  created hereby or the powers granted hereunder, except as
                  provided in Subsection 9.07; and

                           (ix) The Trustee shall not have any duty to conduct
                  any affirmative investigation as to the occurrence of any
                  condition requiring the repurchase of any Mortgage Loan by any
                  Person pursuant to this Agreement, or the eligibility of any
                  Mortgage Loan for purposes of this Agreement.

         (b) The Trustee is hereby directed by the Depositor to execute and
deliver the Swap Administration Agreement. Amounts payable by the Trustee on any
Distribution Date to the Swap Administrator shall be paid by the Trustee as
provided herein. The Trustee in its individual capacity shall have no
responsibility for any of the undertakings, agreements or representations with
respect to the Swap Agreement or the Swap Administration Agreement, including,
without limitation, for making any payments thereunder.

         It is acknowledged and agreed that the Person serving as Trustee
hereunder shall also serve as Swap Administrator under the Swap Administration
Agreement and the Swap Agreement. The Swap Administrator is hereby directed by
the Depositor to execute and deliver the Swap Administration Agreement and the
Swap Agreement. The Swap Administrator shall not have any liability for any
failure or delay in payments to the Trust which are required under the Swap
Administration Agreement where such failure or delay is due to the failure or
delay of

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the Swap Provider in making such payment to the Swap Administrator. The Swap
Administrator shall be entitled to be indemnified and held harmless by the Trust
from and against any and all losses, claims, expenses or other liabilities that
arise by reason of or in connection with the performance or observance by the
Swap Administrator of its duties or obligations under the Swap Agreement or the
Swap Administration Agreement, except to the extent that the same is due to the
Swap Administrator's gross negligence, willful misconduct or fraud. Any Person
appointed as successor trustee pursuant to Section 9.09 shall also be required
to serve as successor Swap Administrator under the Swap Agreement and the Swap
Administration Agreement.

         Section 9.03 TRUSTEE NOT LIABLE FOR CERTIFICATES OR MORTGAGE LOANS.

         The recitals contained herein and in the Certificates (other than the
signature and countersignature of the Trustee on the Certificates) shall be
taken as the statements of the Depositor, and the Trustee shall not have any
responsibility for their correctness. The Trustee makes no representation as to
the validity or sufficiency of the Certificates (other than the signature and
countersignature of the Trustee on the Certificates) or of any Mortgage Loan
except as expressly provided in Sections 2.02 and 2.06 hereof; provided,
however, that the foregoing shall not relieve the Trustee, or the Custodian on
its behalf, of the obligation to review the Mortgage Files pursuant to Section
2.02 of this Agreement. The Trustee's signature and countersignature (or
countersignature of its agent) on the Certificates shall be solely in its
capacity as Trustee and shall not constitute the Certificates an obligation of
the Trustee in any other capacity. The Trustee shall not be accountable for the
use or application by the Depositor of any of the Certificates or of the
proceeds of such Certificates, or for the use or application of any funds paid
to the Depositor with respect to the Mortgage Loans. Subject to Section 2.06,
the Trustee shall not be responsible for the legality or validity of this
Agreement or any document or instrument relating to this Agreement, the validity
of the execution of this Agreement or of any supplement hereto or instrument of
further assurance, or the validity, priority, perfection or sufficiency of the
security for the Certificates issued hereunder or intended to be issued
hereunder. The Trustee shall not 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 Trust Fund or its ability to generate the
payments to be distributed to Certificateholders, under this Agreement. The
Trustee shall not be responsible for filing any financing or continuation
statement in any public office at any time or to otherwise perfect or maintain
the perfection of any security interest or lien granted to it hereunder or to
record this Agreement.

         Section 9.04 TRUSTEE MAY OWN CERTIFICATES.

         The Trustee in its individual capacity or in any capacity other than as
Trustee hereunder may become the owner or pledgee of any Certificates with the
same rights it would have if it were not the Trustee and may otherwise deal with
the parties hereto.

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         Section 9.05 TRUSTEE'S FEES AND EXPENSES.

         The Trustee will be entitled to recover from the Distribution Account
pursuant to Section 4.05, the Trustee Fee, all reasonable out-of-pocket
expenses, disbursements and advances and the expenses of the Trustee in
connection with any Event of Default (or anything related thereto, including any
determination that an Event of Default does or does not exist), 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 Trustee in the administration of
the trusts hereunder (including the reasonable compensation, expenses and
disbursements of its counsel) except any such expense, disbursement or advance
as may arise from its negligence or intentional misconduct or which is the
responsibility of the Certificateholders hereunder. If funds in the Distribution
Account are insufficient therefor, the Trustee shall recover such expenses,
disbursements or advances from the Depositor and the Depositor hereby agrees to
pay such expenses, disbursements or advances. 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 9.06 ELIGIBILITY REQUIREMENTS FOR TRUSTEE.

         The Trustee and any successor Trustee shall during the entire duration
of this Agreement be a state bank or trust company or a national banking
association organized and doing business under the laws of a state or the United
States of America, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus and undivided profits of at least
$50,000,000, subject to supervision or examination by federal or state authority
and rated "BBB" or higher by Fitch with respect to their long-term rating and
rated "BBB" or higher by S&P and "Baa2" or higher by Moody's with respect to any
outstanding long-term unsecured unsubordinated debt, and, in the case of a
successor Trustee other than pursuant to Section 9.10, rated in one of the two
highest long-term debt categories by each Rating Agency (at least "AA-" in the
case of S&P) or otherwise acceptable to, each of the Rating Agencies and have a
short-term debt rating of at least "A-1" from S&P, or otherwise acceptable to,
S&P. The Trustee shall not be an Affiliate of the Master Servicer. If the
Trustee 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 9.06 the combined capital and surplus of such
corporation shall be deemed to be its total equity capital (combined capital and
surplus) as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 9.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 9.08.

         Section 9.07 INSURANCE.

         The Trustee, at its own expense, shall at all times maintain and keep
in full force and effect: (i) fidelity insurance, (ii) theft of documents
insurance and (iii) forgery insurance (which may be collectively satisfied by a
"Financial Institution Bond" and/or a "Bankers' Blanket Bond"); provided, that
such insurance may be provided through self-insurance so long as the Trustee is
rated "A" or better by S&P and "A1" or better by Moody's. All such insurance
shall be in amounts, with standard coverage and subject to deductibles, as are
customary for insurance typically maintained by banks or their affiliates which
act as custodians for investor-owned

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mortgage pools. A certificate of an officer of the Trustee as to the Trustee's
compliance with this Section 9.07 shall be furnished to any Certificateholder
upon reasonable written request.

         Section 9.08 RESIGNATION AND REMOVAL OF TRUSTEE.

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

         If at any time (i) the Trustee shall cease to be eligible in accordance
with the provisions of Section 9.06 hereof and shall fail to resign after
written request thereto by the Depositor, (ii) the Trustee shall become
incapable of acting, or shall be adjudged as bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, or
(iii)(A) a tax is imposed with respect to the Trust Fund by any state in which
the Trustee or the Trust Fund is located, (B) the imposition of such tax would
be avoided by the appointment of a different trustee and (C) the Trustee fails
to indemnify the Trust Fund against such tax, then the Depositor or the Master
Servicer may remove the Trustee and appoint a successor trustee by written
instrument, in multiple copies, a copy of which instrument shall be delivered to
the Trustee, the Master Servicer and the successor trustee.

         The Holders evidencing at least 51% of the Voting Rights of each Class
of Certificates may at any time remove the Trustee and appoint a successor
trustee by written instrument or instruments, in multiple copies, signed by such
Holders or their attorneys-in-fact duly authorized, one complete set of which
instruments shall be delivered by the successor trustee to the Master Servicer,
the Trustee so removed and the successor trustee so appointed. Notice of any
removal of the Trustee shall be given to each Rating Agency by the Trustee or
successor trustee.

         Any resignation or removal of LaSalle Bank National Association as
Trustee shall also result in the resignation or removal, as applicable, of
LaSalle Bank National Association as Swap Administrator. Any resignation or
removal of the Trustee and appointment of a successor trustee pursuant to any of
the provisions of this Section 9.08 shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 9.09 hereof and upon
acceptance of appointment by a successor swap administrator under the Swap
Administration Agreement.

         Section 9.09 SUCCESSOR TRUSTEE.

         Any successor trustee appointed as provided in Section 9.08 hereof
shall execute, acknowledge and deliver to the Depositor, to its predecessor
trustee, the Master Servicer an instrument accepting such appointment hereunder
and thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee without any further act,

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deed or conveyance, shall become fully vested with all the rights, powers,
duties and obligations of its predecessor hereunder, with the like effect as if
originally named as trustee herein.

         No successor trustee shall accept appointment as provided in this
Section 9.09 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 9.07 hereof and its appointment
shall not adversely affect the then current rating of the Certificates.

         Upon acceptance of appointment by a successor trustee as provided in
this Section 9.09, the successor trustee shall mail notice of the succession of
such trustee hereunder to all Holders of Certificates. If the successor trustee
fails to mail such notice within ten days after acceptance of appointment, the
Depositor shall cause such notice to be mailed at the expense of the Trust Fund.

         Section 9.10 MERGER OR CONSOLIDATION OF TRUSTEE.

         Any corporation, state bank or national banking association into which
the Trustee may be merged or converted or with which it may be consolidated or
any corporation, state bank or national banking association resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation, state bank or national banking association succeeding to
substantially all of the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided that such corporation shall be
eligible under the provisions of Section 9.06 hereof 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 9.11 APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.

         Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Fund or property securing any Mortgage Note may at the
time be located, the Master Servicer and the Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee to act as co-trustee or co-trustees jointly with
the Trustee, or separate trustee or separate trustees, of all or any part of the
Trust Fund, and to vest in such Person or Persons, in such capacity and for the
benefit of the Certificateholders, such title to the Trust Fund or any part
thereof, whichever is applicable, and, subject to the other provisions of this
Section 9.11, such powers, duties, obligations, rights and trusts as the Master
Servicer and the Trustee may consider necessary or desirable. If the Master
Servicer shall not have joined in such appointment within 15 days after the
receipt by it of a request to do so, or in the case an Event of Default shall
have occurred and be continuing, the Trustee alone shall have the power to make
such appointment. No co-trustee or separate trustee hereunder shall be required
to meet the terms of eligibility as a successor trustee under Section 9.06 and
no notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 9.09.

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

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                           (i) All rights, powers, duties and obligations
                  conferred or imposed upon the Trustee, except for the
                  obligation of the Trustee under this Agreement to advance
                  funds on behalf of the Master Servicer, shall be conferred or
                  imposed upon and exercised or performed by the 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 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 (whether a Trustee hereunder or as a Successor
                  Master Servicer hereunder), the Trustee shall be incompetent
                  or unqualified to perform such act or acts, in which event
                  such rights, powers, duties and obligations (including the
                  holding of title to the Trust Fund or any portion thereof in
                  any such jurisdiction) shall be exercised and performed singly
                  by such separate trustee or co-trustee, but solely at the
                  direction of the Trustee;

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

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

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

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

         Section 9.12 TAX MATTERS.

         It is intended that the Trust Fund shall constitute, and that the
affairs of the Trust Fund shall be conducted so that each REMIC formed hereunder
qualifies as, a "real estate mortgage investment conduit" as defined in and in
accordance with the REMIC Provisions. In furtherance of such intention, the
Trustee covenants and agrees that it shall act as agent (and the Trustee is
hereby appointed to act as agent) on behalf of the Trust Fund. The Trustee, as
agent on behalf of

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the Trust Fund, shall do or refrain from doing, as applicable, the following:
(a) the Trustee shall prepare and file, or cause to be prepared and filed, in a
timely manner, U.S. Real Estate Mortgage Investment Conduit Income Tax Returns
(Form 1066 or any successor form adopted by the Internal Revenue Service) and
prepare and file or cause to be prepared and filed with the Internal Revenue
Service and applicable state or local tax authorities income tax or information
returns for each taxable year with respect to each such REMIC containing such
information and at the times and in the manner as may be required by the Code or
state or local tax laws, regulations, or rules, and furnish or cause to be
furnished to Certificateholders the schedules, statements or information at such
times and in such manner as may be required thereby; (b) the Trustee shall apply
for an employer identification number with the Internal Revenue Service via a
Form SS-4 or other comparable method for each REMIC that is or becomes a taxable
entity, and within thirty days of the Closing Date, furnish or cause to be
furnished to the Internal Revenue Service, on Forms 8811 or as otherwise may be
required by the Code, the name, title, address, and telephone number of the
Person that the holders of the Certificates may contact for tax information
relating thereto, together with such additional information as may be required
by such Form, and update such information at the time or times in the manner
required by the Code for the Trust Fund; (c) the Trustee shall make or cause to
be made elections, on behalf of each REMIC formed hereunder to be treated as a
REMIC on the federal tax return of such REMIC for its first taxable year (and,
if necessary, under applicable state law); (d) the Trustee shall prepare and
forward, or cause to be prepared and forwarded, to the Certificateholders and to
the Internal Revenue Service and, if necessary, state tax authorities, all
information returns and reports as and when required to be provided to them in
accordance with the REMIC Provisions, including without limitation, the
calculation of any original issue discount using the Prepayment Assumption; (e)
the Trustee shall provide information necessary for the computation of tax
imposed on the Transfer of a Residual Certificate to a Person that is not a
Permitted Transferee, or an agent (including a broker, nominee or other
middleman) of a Person that is not a Permitted Transferee, or a pass-through
entity in which a Person that is not a Permitted Transferee is the record holder
of an interest (the reasonable cost of computing and furnishing such information
may be charged to the Person liable for such tax); (f) the Trustee shall, to the
extent under its control, conduct the affairs of the Trust Fund at all times
that any Certificates are outstanding so as to maintain the status of each REMIC
formed hereunder as a REMIC under the REMIC Provisions; (g) the Trustee shall
not knowingly or intentionally take any action or omit to take any action that
would cause the termination of the REMIC status of any REMIC formed hereunder;
(h) the Trustee shall pay, from the sources specified in the penultimate
paragraph of this Section 9.12, the amount of any federal, state and local
taxes, including prohibited transaction taxes as described below, imposed on any
REMIC formed hereunder prior to the termination of the Trust Fund when and as
the same shall be due and payable (but such obligation shall not prevent the
Trustee or any other appropriate Person from contesting any such tax in
appropriate proceedings and shall not prevent the Trustee from withholding
payment of such tax, if permitted by law, pending the outcome of such
proceedings); (i) the Trustee shall maintain records relating to each REMIC
formed hereunder including but not limited to the income, expenses, assets and
liabilities of each such REMIC and adjusted basis of the Trust Fund property
determined at such intervals as may be required by the Code, as may be necessary
to prepare the foregoing returns, schedules, statements or information; (j) the
Trustee shall, for federal income tax purposes, maintain books and records with
respect to the REMICs on a

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calendar year and on an accrual basis; (k) the Trustee shall not enter into any
arrangement not otherwise provided for in this Agreement by which the REMICs
will receive a fee or other compensation for services nor permit the REMICs to
receive any income from assets other than "qualified mortgages" as defined in
Section 860G(a)(3) of the Code or "permitted investments" as defined in Section
860G(a)(5) of the Code; and (l) as and when necessary and appropriate, the
Trustee, at the expense of the Trust Fund, shall represent the Trust Fund in any
administrative or judicial proceedings relating to an examination or audit by
any governmental taxing authority, request an administrative adjustment as to
any taxable year of any REMIC formed hereunder, enter into settlement agreements
with any governmental taxing agency, extend any statute of limitations relating
to any tax item of the Trust Fund, and otherwise act on behalf of each REMIC
formed hereunder in relation to any tax matter involving any such REMIC.

         In order to enable the Trustee to perform its duties as set forth
herein, the Depositor shall provide, or cause to be provided, to the Trustee
within 10 days after the Closing Date all information or data that the Trustee
requests in writing and determines to be relevant for tax purposes to the
valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
to the Trustee promptly upon written request therefor, any such additional
information or data that the Trustee may, from time to time, request in order to
enable the Trustee to perform its duties as set forth herein. The Depositor
hereby indemnifies the Trustee for any losses, liabilities, damages, claims or
expenses of the Trustee arising from any errors or miscalculations of the
Trustee that result from any failure of the Depositor to provide, or to cause to
be provided, accurate information or data to the Trustee on a timely basis.

         In the event that any tax is imposed on "prohibited transactions" of
any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI as defined in
Section 860F(a)(2) of the Code, on the "net income from foreclosure property" of
the Trust Fund as defined in Section 860G(c) of the Code, on any contribution to
any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI after the
Startup Day pursuant to Section 860G(d) of the Code, or any other tax is
imposed, including, without limitation, any federal, state or local tax or
minimum tax imposed upon any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V
or REMIC VI, and is not paid as otherwise provided for herein, such tax shall be
paid by (i) the Trustee, if any such other tax arises out of or results from a
breach by the Trustee of any of its obligations under this Agreement, (ii) any
party hereto (other than the Trustee) to the extent any such other tax arises
out of or results from a breach by such other party of any of its obligations
under this Agreement or (iii) in all other cases, or in the event that any
liable party hereto fails to honor its obligations under the preceding clauses
(i) or (ii), any such tax will be paid first with amounts otherwise to be
distributed to the Class R Certificateholders, and second with amounts otherwise
to be distributed to all other Certificateholders in the following order of
priority: first, to the Class M-8 Certificates, second, to the Class M-7
Certificates, third, to the Class M-6 Certificates, fourth, to the Class M-5
Certificates, fifth, to the Class M-4 Certificates, sixth, to the Class M-3
Certificates, seventh, to the Class M-2 Certificates, eighth, to the Class M-1
Certificates, and ninth, to the Class A Certificates (pro rata based on the
amounts to be distributed). Notwithstanding anything to the contrary contained
herein, to the extent that such tax is payable by the Holder of any
Certificates, the Trustee is hereby authorized to retain on any

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Distribution Date, from the Holders of the Class R Certificates (and, if
necessary, second, from the Holders of the other Certificates in the priority
specified in the preceding sentence), funds otherwise distributable to such
Holders in an amount sufficient to pay such tax. The Trustee shall promptly
notify in writing the party liable for any such tax of the amount thereof and
the due date for the payment thereof.

         The Trustee agrees that, in the event it should obtain any information
necessary for the other party to perform its obligations pursuant to this
Section 9.12, it will promptly notify and provide such information to such other
party.

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                                   ARTICLE X

                                   TERMINATION

         Section 10.01 TERMINATION UPON LIQUIDATION OR REPURCHASE OF ALL
MORTGAGE LOANS.

         Subject to Section 10.03, the obligations and responsibilities of the
Depositor, the Master Servicer, the Seller and the Trustee created hereby with
respect to the Trust Fund shall terminate upon the earlier of (a) the purchase
by the Majority Class CE Certificateholder (or its designee) or the Master
Servicer, as applicable, of all of the Mortgage Loans (and REO Properties)
remaining in the Trust Fund at a price (the "Mortgage Loan Purchase Price")
equal to the sum of (i) 100% of the Stated Principal Balance of each Mortgage
Loan (other than in respect of REO Property), (ii) accrued interest thereon at
the applicable Mortgage Rate to, but not including, the first day of the month
of such purchase, (iii) the appraised value of any REO Property in the Trust
Fund (up to the Stated Principal Balance of the related Mortgage Loan), such
appraisal to be conducted by an appraiser mutually agreed upon by the Master
Servicer and the Trustee, (iv) unreimbursed out-of pocket costs of the Master
Servicer, including unreimbursed servicing advances and the principal portion of
any unreimbursed Advances, made on the Mortgage Loans prior to the exercise of
such repurchase right, (v) any unreimbursed costs and expenses of the Trustee
payable pursuant to Section 9.05 and (b) the later of (i) the maturity or other
liquidation (or any Advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund and the disposition of all REO Property and (ii) the
distribution to Certificateholders of all amounts required to be distributed to
them pursuant to this Agreement, as applicable. In no event shall the trusts
created hereby continue beyond the earlier of (i) the expiration of 21 years
from the death of the last survivor of the descendants of Joseph P. Kennedy, the
late Ambassador of the United States to the Court of St. James, living on the
date hereof and (ii) the Latest Possible Maturity Date.

         The right to repurchase all Mortgage Loans and REO Properties by the
Majority Class CE Certificateholder pursuant to clause (a) in the preceding
paragraph shall be conditioned upon the Stated Principal Balance of all of the
Mortgage Loans in the Trust Fund, at the time of any such repurchase,
aggregating 10% or less of the aggregate Cut-off Date Principal Balance of all
of the Mortgage Loans. If the Majority Class CE Certificateholder does not
exercise this option, the Master Servicer has the right to repurchase all
Mortgage Loans and REO Properties pursuant to clause (a) in the preceding
paragraph, conditioned upon the Stated Principal Balance of all of the Mortgage
Loans in the Trust Fund, at the time of any such repurchase, aggregating 5% or
less of the aggregate Cut-off Date Principal Balance of all of the Mortgage
Loans.

         Section 10.02 FINAL DISTRIBUTION ON THE CERTIFICATES.

         If on any Determination Date, (i) the Master Servicer determines that
there are no Outstanding Mortgage Loans and no other funds or assets in the
Trust Fund other than the funds in the Protected Account, the Master Servicer
shall direct the Trustee to send a final distribution notice promptly to each
Certificateholder or (ii) the Trustee determines that a Class of

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Certificates shall be retired after a final distribution on such Class, the
Trustee shall notify the Certificateholders within five (5) Business Days after
such Determination Date that the final distribution in retirement of such Class
of Certificates is scheduled to be made on the immediately following
Distribution Date. Any final distribution made pursuant to the immediately
preceding sentence will be made only upon presentation and surrender of the
related Certificates at the Corporate Trust Office of the Trustee. If the
Majority Class CE Certificateholder or the Master Servicer, as applicable,
elects to terminate the Trust Fund pursuant to Section 10.01, at least 20 days
prior to the date notice is to be mailed to the Certificateholders, the Majority
Class CE Certificateholder or the Master Servicer, as applicable, shall notify
the Depositor and the Trustee of the date the Majority Class CE
Certificateholder or the Master Servicer, as applicable, intends to terminate
the Trust Fund. The Master Servicer shall remit the Mortgage Loan Purchase Price
to the Trustee on the Business Day prior to the Distribution Date for such
Optional Termination by the Majority Class CE Certificateholder or the Master
Servicer, as applicable.

         Notice of any termination of the Trust Fund, specifying the
Distribution Date on which Certificateholders may surrender their Certificates
for payment of the final distribution and cancellation, shall be given promptly
by the Trustee by letter to Certificateholders mailed not later than two
Business Days after the Determination Date in the month of such final
distribution. Any such notice shall specify (a) the Distribution Date upon which
final distribution on the Certificates will be made upon presentation and
surrender of Certificates at the office therein designated, (b) the amount of
such final distribution, (c) the location of the office or agency at which such
presentation and surrender must be made and (d) that the Record Date otherwise
applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of the Certificates at the office therein
specified. The Trustee will give such notice to each Rating Agency at the time
such notice is given to Certificateholders.

         In the event such notice is given, the Master Servicer shall cause all
funds in the Protected Account to be remitted to the Trustee for deposit in the
Distribution Account on the Business Day prior to the applicable Distribution
Date in an amount equal to the final distribution in respect of the
Certificates. Upon such final deposit with respect to the Trust Fund and the
receipt by the Trustee of a Request for Release therefor, the Trustee or the
Custodian shall promptly release to EMC as applicable the Mortgage Files for the
Mortgage Loans and the Trustee shall execute and deliver any documents prepared
and delivered to it which are necessary to transfer any REO Property.

         Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to Certificateholders of each Class the amounts
allocable to such Certificates held in the Distribution Account in the order and
priority set forth in Section 5.04 hereof on the final Distribution Date and in
proportion to their respective Percentage Interests.

         In the event that any affected Certificateholders shall not surrender
Certificates for cancellation within six months after the date specified in the
above mentioned written notice, the Trustee shall give a second written notice
to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice all the applicable Certificates shall not
have been surrendered for

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cancellation, the Trustee may take appropriate steps, or may appoint an agent to
take appropriate steps, to contact the remaining Certificateholders concerning
surrender of their Certificates, and the cost thereof shall be paid out of the
funds and other assets that remain a part of the Trust Fund. If within one year
after the second notice all Certificates shall not have been surrendered for
cancellation, the Class R Certificateholders shall be entitled to all unclaimed
funds and other assets of the Trust Fund that remain subject hereto.

         Section 10.03 ADDITIONAL TERMINATION REQUIREMENTS.

         (a) Upon exercise by the Majority Class CE Certificateholder or the
Master Servicer, as applicable, of its purchase option as provided in Section
10.01, the Trust Fund shall be terminated in accordance with the following
additional requirements, unless the Trustee has been supplied with an Opinion of
Counsel addressed to the Trustee, at the expense of the Majority Class CE
Certificateholder or the Master Servicer, as applicable, to the effect that the
failure of the Trust Fund to comply with the requirements of this Section 10.03
will not (i) result in the imposition of taxes on "prohibited transactions" of a
REMIC, or (ii) cause a REMIC to fail to qualify as a REMIC at any time that any
Certificates are outstanding:

         (1) The Majority Class CE Certificateholder or the Master Servicer, as
applicable, shall establish a 90-day liquidation period and notify the Trustee
thereof, and the Trustee shall in turn specify the first day of such period in a
statement attached to the tax return for any of REMIC I, REMIC II, REMIC III,
REMIC IV, REMIC V or REMIC VI pursuant to Treasury Regulation Section 1.860F-1.
The Majority Class CE Certificateholder or the Master Servicer, as applicable,
shall satisfy all the requirements of a qualified liquidation under Section 860F
of the Code and any regulations thereunder, as evidenced by an Opinion of
Counsel obtained at the expense of the Majority Class CE Certificateholder or
the Master Servicer, as applicable;

         (2) During such 90-day liquidation period, and at or prior to the time
of making the final payment on the Certificates, the Trustee shall sell all of
the assets of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI for
cash; and

         (3) At the time of the making of the final payment on the Certificates,
the Trustee shall distribute or credit, or cause to be distributed or credited,
to the Holders of the Residual Certificates all cash on hand (other than cash
retained to meet claims), and REMIC I shall terminate at that time.

         (b) By their acceptance of the Certificates, the Holders thereof hereby
authorize the adoption of a 90-day liquidation period and the adoption of a plan
of complete liquidation for REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or
REMIC VI, which authorization shall be binding upon all successor
Certificateholders.

         (c) The Trustee as agent for each REMIC hereby agrees to adopt and sign
such a plan of complete liquidation meeting the requirements for a qualified
liquidation under Section 860F of the Code and any regulations thereunder upon
the written request of the Majority Class CE Certificateholder or the Master
Servicer, as applicable, and the receipt of the Opinion of Counsel referred to
in Section 10.03(a)(1) and to take such other action in connection therewith as
may be

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reasonably requested by the Majority Class CE Certificateholder or the Master
Servicer, as applicable.

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                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

         Section 11.01 AMENDMENT.

         This Agreement may be amended from time to time by parties hereto
without the consent of any of the Certificateholders to cure any ambiguity, to
correct or supplement any provisions herein (including to give effect to the
expectations of investors), to change the manner in which the Protected Account
is maintained or to make such other provisions with respect to matters or
questions arising under this Agreement as shall not be inconsistent with any
other provisions herein if such action shall not, as evidenced by an Opinion of
Counsel addressed to the Trustee, adversely affect in any material respect the
interests of any Certificateholder; provided that any such amendment shall be
deemed not to adversely affect in any material respect the interests of the
Certificateholders and no such Opinion of Counsel shall be required if the
Person requesting such amendment obtains a letter from each Rating Agency
stating that such amendment would not result in the downgrading or withdrawal of
the respective ratings then assigned to the Certificates.

         Notwithstanding the foregoing, without the consent of the
Certificateholders, the parties hereto may at any time and from time to time
amend this Agreement to modify, eliminate or add to any of its provisions to
such extent as shall be necessary or appropriate to maintain the qualification
of any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI as a REMIC
under the Code or to avoid or minimize the risk of the imposition of any tax on
any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI pursuant to
the Code that would be a claim against any of REMIC I, REMIC II, REMIC III,
REMIC IV, REMIC V or REMIC VI at any time prior to the final redemption of the
Certificates, provided that the Trustee has been provided an Opinion of Counsel
addressed to the Trustee, which opinion shall be an expense of the party
requesting such opinion but in any case shall not be an expense of the Trustee
or the Trust Fund, to the effect that such action is necessary or appropriate to
maintain such qualification or to avoid or minimize the risk of the imposition
of such a tax.

         This Agreement may also be amended from time to time by the parties
hereto with the consent of the Holders of each Class of Certificates affected
thereby evidencing over 50% of the Voting Rights of such Class or Classes 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 Swap Administrator or the Holders of Certificates; provided that no such
amendment shall (i) reduce in any manner the amount of, or delay the timing of,
payments required to be distributed on any Certificate without the consent of
the Holder of such Certificate, (ii) cause any of REMIC I, REMIC II, REMIC III,
REMIC IV, REMIC V or REMIC VI to cease to qualify as a REMIC or (iii) reduce the
aforesaid percentages of Certificates of each Class the Holders of which are
required to consent to any such amendment without the consent of the Holders of
all Certificates of such Class then outstanding.

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         Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel addressed to the Trustee, which opinion shall be
an expense of the party requesting such amendment but in any case shall not be
an expense of the Trustee, to the effect that such amendment will not (other
than an amendment pursuant to clause (ii) of, and in accordance with, the
preceding paragraph) cause the imposition of any tax on any of REMIC I, REMIC
II, REMIC III, REMIC IV, REMIC V or REMIC VI or the Certificateholders or cause
any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to cease to
qualify as a REMIC at any time that any Certificates are outstanding. Further,
nothing in this Agreement shall require the Trustee to enter into an amendment
without receiving an Opinion of Counsel, satisfactory to the Trustee that (i)
such amendment is permitted and is not prohibited by this Agreement and that all
requirements for amending this Agreement (including any consent of the
applicable Certificateholders) have been complied with.

         Notwithstanding any of the other provisions of this Section 11.01, none
of the Depositor, the Master Servicer or the Trustee shall enter into any
amendment to Section 3.20 or Section 5.04(a)(4)(F) of this Agreement without the
prior written consent of the Swap Provider.

         Promptly after the execution of any amendment to this Agreement
requiring the consent of Certificateholders, the Trustee shall furnish written
notification of the substance of such amendment to each Certificateholder and
each Rating Agency.

         It shall not be necessary for the consent of Certificateholders under
this Section to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

         Section 11.02 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
of 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. The Master Servicer shall effect such recordation at the
Trust's expense upon the request in writing of a Certificateholder, but only if
such direction is accompanied by an Opinion of Counsel (provided at the expense
of the Certificateholder requesting recordation) to the effect that such
recordation would materially and beneficially affect the interests of the
Certificateholders or is required by law.

         For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.

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         Section 11.03 GOVERNING LAW.

         THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES
THEREOF (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAWS).

         Section 11.04 INTENTION OF PARTIES.

         It is the express intent of the parties hereto that the conveyance of
the Mortgage Notes, Mortgages, assignments of Mortgages, title insurance
policies and any modifications, extensions and/or assumption agreements and
private mortgage insurance policies relating to the Mortgage Loans by the Seller
to the Depositor, and by the Depositor to the Trustee be, and be construed as,
an absolute sale thereof to the Depositor or the Trustee, as applicable. It is,
further, not the intention of the parties that such conveyance be deemed a
pledge thereof by the Seller to the Depositor, or by the Depositor to the
Trustee. However, in the event that, notwithstanding the intent of the parties,
such assets are held to be the property of the Seller or the Depositor, as
applicable, or if for any other reason the Mortgage Loan Purchase Agreement or
this Agreement is held or deemed to create a security interest in such assets,
then (i) the Mortgage Loan Purchase Agreement and this Agreement shall each be
deemed to be a security agreement within the meaning of the Uniform Commercial
Code of the State of New York and (ii) the conveyance provided for in the
Mortgage Loan Purchase Agreement from the Seller to the Depositor, and the
conveyance provided for in this Agreement from the Depositor to the Trustee,
shall be deemed to be an assignment and a grant by the Seller or the Depositor,
as applicable, for the benefit of the Certificateholders of a security interest
in all of the assets that constitute the Trust Fund, whether now owned or
hereafter acquired.

         The Depositor for the benefit of the Certificateholders shall, to the
extent consistent with this Agreement, take such actions as may be necessary to
ensure that, if this Agreement were deemed to create a security interest in the
assets of the Trust Fund, 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 the Agreement.

         Section 11.05 NOTICES.

         (a) The Trustee shall use its best efforts to promptly provide notice
to each Rating Agency with respect to each of the following of which a
Responsible Officer of the Trustee 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;

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                           (iii) The resignation or termination of the Master
                  Servicer or the Trustee and the appointment of any successor;

                           (iv) The repurchase or substitution of Mortgage Loans
                  pursuant to Sections 2.02, 2.03, 3.18 and 10.01; and

                           (v) The final payment to Certificateholders.

         (b) All directions, demands and notices hereunder shall be in writing
and shall be deemed to have been duly given when delivered at or mailed by
registered mail, return receipt requested, postage prepaid, or by recognized
overnight courier, or by facsimile transmission to a number provided by the
appropriate party if receipt of such transmission is confirmed to (i) in the
case of the Depositor, Bear Stearns Asset Backed Securities I LLC, 383 Madison
Avenue, New York, New York 10179, Attention: Chief Counsel; (ii) in the case of
the Seller or the Master Servicer, EMC Mortgage Corporation, 909 Hidden Ridge
Drive, Irving, Texas 75038, Attention: Ralene Ruyle or such other address as may
be hereafter furnished to the other parties hereto by the Master Servicer in
writing; (iii) in the case of the Trustee, at each Corporate Trust Office or
such other address as the Trustee may hereafter furnish to the other parties
hereto and (iv) in the case of the Rating Agencies, (x) Moody's Investors
Service, Inc., 99 Church Street, New York, New York 10007, Attention: Home
Equity Monitoring and (y) Standard & Poor's, 55 Water Street, 41st Floor, New
York, New York 10041, Attention: Mortgage Surveillance Group. Any notice
delivered to the Seller, the Master Servicer or the Trustee under this Agreement
shall be effective only upon receipt. Any notice required or permitted to be
mailed to a Certificateholder, unless otherwise provided herein, shall be given
by first-class mail, postage prepaid, at the address of such Certificateholder
as shown in the Certificate Register; any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Certificateholder receives such notice.

         Section 11.06 SEVERABILITY OF PROVISIONS.

         If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

         Section 11.07 ASSIGNMENT.

         Notwithstanding anything to the contrary contained herein, except as
provided pursuant to Section 7.02, this Agreement may not be assigned by the
Master Servicer, the Seller or the Depositor.

         Section 11.08 LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS.

         The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, nor entitle such Certificateholder's
legal representative or heirs to claim an accounting or to take any action or
commence any proceeding in any court for a petition

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or winding up of the Trust Fund, or otherwise affect the rights, obligations and
liabilities of the parties hereto or any of them.

         No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything herein
set forth or contained in the terms of the Certificates be construed so as to
constitute the Certificateholders from time to time as partners or members of an
association; nor shall any Certificateholder be under any liability to any third
party by reason of any action taken by the parties to this Agreement pursuant to
any provision hereof.

         No Certificateholder shall have any right by virtue or by availing
itself of any provisions of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Agreement,
unless such Holder previously shall have given to the Trustee a written notice
of an Event of Default and of the continuance thereof, as hereinbefore provided,
the Holders of Certificates evidencing not less than 25% of the Voting Rights
evidenced by the Certificates shall also have made written request to the
Trustee to institute such action, suit or proceeding in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses, and liabilities to be incurred therein
or thereby, and the Trustee for 60 days after its receipt of such notice,
request and offer of indemnity shall have neglected or refused to institute any
such action, suit or proceeding; it being understood and intended, and being
expressly covenanted by each Certificateholder with every other
Certificateholder and the Trustee, that no one or more Holders of Certificates
shall have any right in any manner whatever by virtue or by availing itself or
themselves of any provisions of this Agreement to affect, disturb or prejudice
the rights of the Holders of any other of the Certificates, or to obtain or seek
to obtain priority over or preference to any other such Holder or to enforce any
right under this Agreement, except in the manner herein provided and for the
common benefit of all Certificateholders. For the protection and enforcement of
the provisions of this Section 11.08, each and every Certificateholder or the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

                                      171
<PAGE>

         Section 11.09 INSPECTION AND AUDIT RIGHTS. The Master Servicer agrees
that, on reasonable prior notice, it will permit any representative of the
Depositor or the Trustee during the Master Servicer's normal business hours, to
examine all the books of account, records, reports and other papers of the
Master Servicer relating to the Mortgage Loans, to make copies and extracts
therefrom, to cause such books to be audited by independent certified public
accountants selected by the Depositor and the Trustee and to discuss its
affairs, finances and accounts relating to such Mortgage Loans with its
officers, employees and independent public accountants (and by this provision
the Master Servicer hereby authorizes such accountants to discuss with such
representative such affairs, finances and accounts), all at such reasonable
times and as often as may be reasonably requested. Any out-of-pocket expense
incident to the exercise by the Depositor or the Trustee of any right under this
Section 11.09 shall be borne by the party requesting such inspection, subject to
such party's right to reimbursement hereunder (in the case of the Trustee,
pursuant to Section 9.05 hereof. Section 11.10 CERTIFICATES NONASSESSABLE AND
FULLY PAID.

         It is the intention of the Depositor that Certificateholders shall not
be personally liable for obligations of the Trust Fund, that the interests in
the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

Section 11.11     THIRD PARTY RIGHTS.

         The Swap Provider and the Swap Administrator shall be third-party
beneficiaries of this Agreement to the same extent as if they were parties
hereto, and shall have the right to enforce the provisions of this Agreement.

                                 *     *     *

                                      172
<PAGE>

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

                                 BEAR STEARNS ASSET BACKED SECURITIES I LLC,
                                          as Depositor

                                 By:  /s/ Baron Silverstein
                                    --------------------------------------------
                                 Name:    Baron Silverstein
                                 Title:   Vice President

                                 EMC MORTGAGE CORPORATION,
                                          as Seller and Master Servicer

                                 By:  /s/ Sue Stepanek
                                    --------------------------------------------
                                 Name:    Sue Stepanek
                                 Title:   Executive Vice President

                                 LASALLE BANK NATIONAL ASSOCIATION,
                                          as Trustee

                                 By:  /s/ Christopher Lewis
                                    --------------------------------------------
                                 Name:    Christopher Lewis
                                 Title:   Assistant Vice President

<PAGE>

STATE OF NEW YORK        )
                         ) ss.:
COUNTY OF NEW YORK       )

         On this 28th day of February, 2005, before me, a notary public in and
for said State, appeared Baron Silverstein, personally known to me on the basis
of satisfactory evidence to be an authorized representative of Bear Stearns
Asset Backed Securities I LLC, one of the companies that executed the within
instrument, and also known to me to be the person who executed it on behalf of
such limited liability company and acknowledged to me that such limited
liability company executed the within instrument.

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

                                                  ______________________________
                                                  Notary Public

[Notarial Seal]

<PAGE>

STATE OF TEXAS     )
                   ) ss.:
COUNTY OF DALLAS   )

         On this 28th day of February, 2005, before me, a notary public in and
for said State, appeared _______________, personally known to me on the basis of
satisfactory evidence to be an authorized representative of EMC Mortgage
Corporation, one of the corporations that executed the within instrument, and
also known to me to be the person who executed it on behalf of such corporation
and acknowledged to me that such corporation executed the within instrument.

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

                                                  ______________________________
                                                  Notary Public

[Notarial Seal]

<PAGE>

STATE OF ILLINOIS       )
                        ) ss.:
COUNTY OF COOK          )

         On this 28th day of January, 2005, before me, a notary public in and
for said State, appeared _________________ , personally known to me on the basis
of satisfactory evidence to be an authorized representative 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 such corporation, and acknowledged
to me that such corporation executed the within instrument.

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

                                                  ______________________________
                                                  Notary Public

[Notarial Seal]

<PAGE>
                                   EXHIBIT A-1

                          Form of Class A Certificates

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE
DECREASED BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO.
ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE
PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION
SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE
PRINCIPAL BALANCE BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

                                      A-1-1

<PAGE>

<TABLE>
<CAPTION>
<S>                                                         <C>
Certificate No. 1                                            Variable Pass-Through Rate

Class [I-A-1][I-A-2][I-A-3][II-A-1][II-A-2]
[III-A-1][III-A-2] Senior

Date of Pooling and Servicing Agreement                      Aggregate  Initial  Certificate  Principal  Balance of
and Cut-off Date: February 1, 2005                           this Certificate as of the Cut-off Date:
                                                             $[__________]

First Distribution Date:                                     Initial   Certificate   Principal   Balance   of  this
March 25, 2005                                               Certificate as of the Cut-off Date:
                                                             $[__________]

Master Servicer:                                             CUSIP: [_____]
EMC Mortgage Corporation

Last Scheduled Distribution Date:
[___________ , ___]
</TABLE>

                            ASSET-BACKED CERTIFICATE
                                 SERIES 2005-HE2

         evidencing a fractional undivided interest in the distributions
         allocable to the Class
         [I-A-1][I-A-2][I-A-3][II-A-1][II-A-2][III-A-1][III-A-2] Certificates
         with respect to a Trust Fund consisting primarily of a pool of
         conventional, closed-end, first and second lien, one- to four-family
         fixed and adjustable interest rate mortgage loans sold by BEAR STEARNS
         ASSET BACKED SECURITIES I LLC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Bear Stearns
Asset Backed Securities I LLC, the Master Servicer or the Trustee or any of
their affiliates or any other person. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental entity
or by Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the
Trustee or any of their affiliates or any other person. None of Bear Stearns
Asset Backed Securities I LLC, the Master Servicer or any of their affiliates
will have any obligation with respect to any certificate or other obligation
secured by or payable from payments on the Certificates.

                  This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in a trust (the "Trust Fund")
generally consisting of conventional, closed-end first and

                                     A-1-2
<PAGE>

second lien, fixed and adjustable rate mortgage loans secured by one- to
four- family residences (collectively, the "Mortgage Loans") sold by Bear
Stearns Asset Backed Securities I LLC ("BSABS I"). The Mortgage Loans were sold
by EMC Mortgage Corporation ("EMC") to BSABS I. EMC will act as master servicer
of the Mortgage Loans (the "Master Servicer," which term includes any successors
thereto under the Agreement referred to below). The Trust Fund was created
pursuant to the Pooling and Servicing Agreement, dated as of the Cut-off Date
specified above (the "Agreement"), among BSABS I, as depositor (the
"Depositor"), EMC Mortgage Corporation as seller and Master Servicer and LaSalle
Bank National Association, as trustee (the "Trustee"), a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, capitalized terms used herein shall have the meaning ascribed to
them in the Agreement. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Certificate by virtue of its acceptance hereof assents and by which such
Holder is bound.

                  Interest on this Certificate will accrue from and including
the immediately preceding Distribution Date (or with respect to the First
Distribution Date, the Closing Date) to and including the day prior to the
current Distribution Date on the Certificate Principal Balance hereof at a per
annum rate equal to the Pass-Through Rate set forth above. The Trustee will
distribute on the 25th day of each month, or, if such 25th day is not a Business
Day, the immediately following Business Day (each, a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered at the close of business on the
Business Day immediately preceding such Distribution Date so long as such
Certificate remains in book-entry form (and otherwise, the close of business on
the last Business Day of the month immediately preceding the month of such
Distribution Date), an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount (of interest and principal, if any)
required to be distributed to the Holders of Certificates of the same Class as
this Certificate. The Assumed Final Distribution Date is the Distribution Date
in the month following the latest scheduled maturity date of any Mortgage Loan.

                  Each holder of a Certificate or beneficial ownership shall be
deemed to have made the representations set forth in Section 6.02(b) of the
Pooling Agreement.

                  Distributions on this Certificate will be made by the Trustee
by check mailed to the address of the Person entitled thereto as such name and
address shall appear on the Certificate Register or, if such Person so requests
by notifying the Trustee in writing as specified in the Agreement.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose and designated in such notice. The
initial Certificate Principal Balance of this Certificate is set forth above.
The Certificate Principal Balance hereof will be reduced to the extent of
distributions allocable to principal hereon and any Realized Losses applicable
hereto.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                                     A-1-3
<PAGE>

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
the Trustee is not liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Trustee.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of each Class of Certificates affected thereby evidencing over 50% of
the Voting Rights of such Class or Classes. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Trustee upon surrender of this Certificate for registration of transfer
at the offices or agencies maintained by the Trustee for such purposes, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Percentage Interest
will be issued to the designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Depositor, the Master Servicer, the Trustee and any agent of any
of them may treat the Person in whose name this Certificate is registered as the
owner hereof for all purposes, and none of Depositor, the Master Servicer, the
Trustee or any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the earlier of (i) the later of (A) the maturity or other
liquidation (or Advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund and disposition of all property acquired upon
foreclosure or deed in lieu of foreclosure of any Mortgage Loan and (B) the
remittance of all funds due under the Agreement, or (ii) the optional repurchase
by the party named in the Agreement of all the Mortgage Loans and other

                                     A-1-4
<PAGE>

assets of the Trust Fund in accordance with the terms of the Agreement. Such
optional repurchase may be made only on or after the first Distribution Date on
which the aggregate Stated Principal Balance of the Mortgage Loans is less than
a certain percentage of the aggregate Stated Principal Balance of the Mortgage
Loans as of the Cut-off Date as set forth in the Agreement. The exercise of such
right will effect the early retirement of the Certificates. In no event,
however, will the Trust Fund created by the Agreement continue beyond the
expiration of 21 years after the death of certain persons identified in the
Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Trustee by manual signature, this Certificate shall
not be entitled to any benefit under the Agreement, or be valid for any purpose.

                                     A-1-5
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: _____________, ____           LASALLE BANK NATIONAL ASSOCIATION
                                     not in its individual capacity but solely
                                     as Trustee

                                     By:________________________________________
                                             Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class [I-A-1][I-A-2][I-A-3][II-A-1][II-A-2]
[III-A-1][III-A-2] Certificates referred to in the within-mentioned Agreement.

                                     LASALLE BANK NATIONAL ASSOCIATION
                                     Authorized signatory of LaSalle Bank
                                     National Association, not in its individual
                                     capacity but solely as Trustee

                                     By:________________________________________
                                            Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Asset-Backed Certificate and hereby authorizes
the transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

                  I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:       ___________________________________________________________________
                           Signature by or on behalf of assignor

                                      __________________________________________
                                                  Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to
_____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                   EXHIBIT A-2

              Form of Class M-[1][2][3][4][5][6][7][8] Certificates

                  THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
SENIOR CERTIFICATES [,] [AND] [CLASS M-1 CERTIFICATES] [,] [AND] [CLASS M-2
CERTIFICATES] [,] [AND] [CLASS M-3 CERTIFICATES] [,] [AND] [CLASS M-4
CERTIFICATES] [,] [AND] [CLASS M-5 CERTIFICATES] [,] [AND] [CLASS M-6
CERTIFICATES] [,] [AND] [CLASS M-7 CERTIFICATES] [,] [AND] [CLASS M-8
CERTIFICATES] AS DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE
DECREASED BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES APPLICABLE
THERETO. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE
CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE
DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS
CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

                  [FOR CLASS M-1, CLASS M-2, CLASS M-3, CLASS M-4, CLASS M-5 AND
CLASS M-6] [EACH HOLDER OF A CERTIFICATE OR BENEFICIAL OWNERSHIP SHALL BE DEEMED
TO HAVE MADE THE REPRESENTATIONS SET FORTH IN SECTION 6.02(B) OF THE POOLING
AGREEMENT.]

                  [FOR CLASS M-1, CLASS M-2, CLASS M-3, CLASS M-4, CLASS M-5 AND
CLASS M-6] [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN
THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.]

                  [FOR CLASS M-7 AND CLASS M-8] [THIS CERTIFICATE HAS NOT BEEN
AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR UNDER ANY STATE SECURITIES

                                     A-2-1
<PAGE>

LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS
CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN
COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A") TO A PERSON THAT
THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE,
THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
"INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE MEANING THEREOF IN RULE
501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH
ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY
THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND
(B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE TRUSTEE
THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL
APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE
JURISDICTION.]

                  [FOR CLASS M-7 AND CLASS M-8] [EACH HOLDER OF A CERTIFICATE OR
BENEFICIAL OWNERSHIP SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS SET FORTH
IN SECTION 6.02(B) OF THE POOLING AGREEMENT.]

                                     A-2-2
<PAGE>

<TABLE>
<CAPTION>
<S>                                                          <C>
Certificate No.1                                             Variable Pass-Through Rate

Class M-[1][2][3][4][5][6][7][8] Subordinate

Date of Pooling and Servicing Agreement                      Aggregate  Initial  Certificate  Principal  Balance of
and Cut-off Date: February 1, 2005                           this Certificate as of the Cut-off Date:
                                                             $[__________]

First Distribution Date:                                     Initial   Certificate   Principal   Balance   of  this
March 25, 2005                                               Certificate as of the Cut-off Date:
                                                             $[__________]

Master Servicer:                                             CUSIP: [_____]
EMC Mortgage Corporation

Last Scheduled Distribution Date:
[________] 25, 2035
</TABLE>

                            ASSET-BACKED CERTIFICATE
                                 SERIES 2005-HE2

         evidencing a fractional undivided interest in the distributions
         allocable to the Class M-[1][2][3][4][5][6][7][8] Certificates with
         respect to a Trust Fund consisting primarily of a pool of conventional,
         closed-end one- to four-family first and second lien, fixed and
         adjustable interest rate mortgage loans sold by BEAR STEARNS ASSET
         BACKED SECURITIES I LLC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Bear Stearns
Asset Backed Securities I LLC, the Master Servicer or the Trustee or any of
their affiliates or any other person. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental entity
or by Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the
Trustee or any of their affiliates or any other person. None of Bear Stearns
Asset Backed Securities I LLC, the Master Servicer or any of their affiliates
will have any obligation with respect to any certificate or other obligation
secured by or payable from payments on the Certificates.

                  This certifies that ____________________ is the registered
owner of the Percentage Interest evidenced hereby in the beneficial ownership
interest of Certificates of the same Class as this Certificate in a trust (the
"Trust Fund") generally consisting of conventional, closed-end first and second
lien, fixed and adjustable rate mortgage loans secured by one- to

                                     A-2-3
<PAGE>

four- family residences (collectively, the "Mortgage Loans") sold by Bear
Stearns Asset Backed Securities I LLC ("BSABS I"). The Mortgage Loans were sold
by EMC Mortgage Corporation ("EMC") to BSABS I. EMC will act as master servicer
of the Mortgage Loans (in that capacity, the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust Fund was created pursuant to the Pooling and Servicing Agreement, dated as
of the Cut-off Date specified above (the "Agreement"), among BSABS I, as
depositor (the "Depositor"), EMC Mortgage Corporation as seller and Master
Servicer and LaSalle Bank National Association as trustee (the "Trustee"), a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, capitalized terms used herein shall have the
meaning ascribed to them in the Agreement. This Certificate is issued under and
is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of its acceptance hereof
assents and by which such Holder is bound.

                  [For Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and
Class M-6] [Interest on this Certificate will accrue from and including the
immediately preceding Distribution Date (or with respect to the First
Distribution Date, the Closing Date) to and including the day prior to the
current Distribution Date on the Certificate Principal Balance hereof at a per
annum rate equal to the Pass-Through Rate set forth above. The Trustee will
distribute on the 25th day of each month, or, if such 25th day is not a Business
Day, the immediately following Business Day (each, a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered at the close of business on the
Business Day immediately preceding such Distribution Date so long as such
Certificate remains in book-entry form (and otherwise, the close of business on
the last Business Day of the month immediately preceding the month of such
Distribution Date), an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount (of interest and principal, if any)
required to be distributed to the Holders of Certificates of the same Class as
this Certificate. The Assumed Final Distribution Date is the Distribution Date
in the month following the latest scheduled maturity date of any Mortgage Loan.]

                  [For Class M-7 and Class M-8] [Interest on this Certificate
will accrue from and including the immediately preceding Distribution Date (or
with respect to the First Distribution Date, the Closing Date) to and including
the day prior to the current Distribution Date on the Certificate Principal
Balance hereof at a per annum rate equal to the Pass-Through Rate set forth
above. The Trustee will distribute on the 25th day of each month, or, if such
25th day is not a Business Day, the immediately following Business Day (each, a
"Distribution Date"), commencing on the First Distribution Date specified above,
to the Person in whose name this Certificate is registered at the close of
business on the last Business Day of the month immediately preceding the month
of such Distribution date so long as this Certificate remains in non-book entry
form (and otherwise, the close of business on the Business Day immediately
preceding such Distribution Date) an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount (of interest
and principal, if any) required to be distributed to the Holders of Certificates
of the same Class as this Certificate. The Assumed Final Distribution Date is
the Distribution Date in the month following the latest scheduled maturity date
of any Mortgage Loan.]

                                     A-2-4
<PAGE>

                  Distributions on this Certificate will be made by the Trustee
by check mailed to the address of the Person entitled thereto as such name and
address shall appear on the Certificate Register or, if such Person so requests
by notifying the Trustee in writing as specified in the Agreement.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose and designated in such notice. The
initial Certificate Principal Balance of this Certificate is set forth above.
The Certificate Principal Balance hereof will be reduced to the extent of
distributions allocable to principal hereon and any Realized Losses allocable
hereto.

                  [For Class M-7 and Class M-8] [No transfer of this Class M-7
Certificate or Class M-8 Certificate will be made unless such transfer is (i)
exempt from the registration requirements of the Securities Act of 1933, as
amended, and any applicable state securities laws or is made in accordance with
said Act and laws and (ii) made in accordance with Section 6.02 of the
Agreement. In the event that such transfer is to be made the Trustee shall
register such transfer if, (i) made to a transferee who has provided the Trustee
with evidence as to its QIB status; or (ii) (A) the transferor has advised the
Trustee in writing that the Certificate is being transferred to an Institutional
Accredited Investor and (B) prior to such transfer the transferee furnishes to
the Trustee an Investment Letter; provided that if based upon an Opinion of
Counsel to the effect that (A) and (B) above are not sufficient to confirm that
such transfer is being made pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act and other
applicable laws, the Trustee shall as a condition of the registration of any
such transfer require the transferor to furnish such other certifications, legal
opinions or other information prior to registering the transfer of this
Certificate as shall be set forth in such Opinion of Counsel.]

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
the Trustee is not liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Trustee.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of the Class or Classes of Certificates affected thereby evidencing over
50% of the Voting Rights of such Class or Classes. Any such consent by the
Holder of this Certificate shall be conclusive and binding on such Holder and
upon all future Holders of this Certificate and of any Certificate issued upon
the transfer hereof or in lieu hereof whether or not notation of such

                                     A-2-5
<PAGE>

consent is made upon this Certificate. The Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Trustee upon surrender of this Certificate for registration of transfer
at the offices or agencies maintained by the Trustee for such purposes, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Percentage Interest
will be issued to the designated transferee.

                  [For Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and
Class M-6] [Each holder of a Certificate or beneficial ownership shall be deemed
to have made the representations set forth in Section 6.02(b) of the Pooling
Agreement.]

                  [For Class M-7 and Class M-8] [Each holder of a Certificate or
beneficial ownership shall be deemed to have made the representations set forth
in Section 6.02(b) of the Pooling Agreement.]

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Depositor, the Master Servicer, the Trustee and any agent of any
of them may treat the Person in whose name this Certificate is registered as the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trustee or any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the earlier of (i) the later of (A) the maturity or other
liquidation (or Advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund and disposition of all property acquired upon
foreclosure or deed in lieu of foreclosure of any Mortgage Loan and (B) the
remittance of all funds due under the Agreement, or (ii) the optional repurchase
by the party named in the Agreement of all the Mortgage Loans and other assets
of the Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans is less than a certain
percentage of the aggregate Stated Principal Balance of the Mortgage Loans as of
the Cut-off Date as set forth in the Agreement. The exercise of such right will
effect the early retirement of the Certificates. In no event, however, will the
Trust Fund created by the Agreement continue beyond the expiration of 21 years
after the death of certain persons identified in the Agreement.

                                     A-2-6
<PAGE>

                  Unless this Certificate has been countersigned by an
authorized signatory of the Trustee by manual signature, this Certificate shall
not be entitled to any benefit under the Agreement, or be valid for any purpose.

                                     A-2-7
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: _____________, ____           LASALLE BANK NATIONAL ASSOCIATION
                                     not in its individual capacity but solely
                                     as Trustee

                                     By:________________________________________
                                             Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Class M-[1][2][3][4][5][6][7][8] Certificates
referred to in the within-mentioned Agreement.

                                     LASALLE BANK NATIONAL ASSOCIATION
                                     Authorized signatory of LaSalle Bank
                                     National Association, not in its individual
                                     capacity but solely as Trustee

                                     By:________________________________________
                                            Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Asset-Backed Certificate and hereby authorizes
the transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

                  I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:

Dated:       ___________________________________________________________________
                           Signature by or on behalf of assignor

                                      __________________________________________
                                                  Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to
_____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                   EXHIBIT A-3

                           Form of Class P Certificate

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE
DECREASED BY THE PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL
ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY
INQUIRY OF THE TRUSTEE NAMED HEREIN.

                  THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY
STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES
THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY
(1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A") TO A PERSON
THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN
THE MEANING OF RULE 144A (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE,
THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
"INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE MEANING THEREOF IN RULE
501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH
ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY
THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND
(B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE TRUSTEE
THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL
APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE
JURISDICTION.

                                     A-3-1
<PAGE>

                  NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON,
UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 6.02
OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE THAT THE
PURCHASE AND HOLDING OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW,
WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA") OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, MASTER
SERVICER OR THE DEPOSITOR TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE
UNDERTAKEN IN THE AGREEMENT.

                                     A-3-2
<PAGE>

<TABLE>
<CAPTION>
<S>                                                        <C>
Certificate No.1                                           Percentage Interest: 100%

Class P

Date of Pooling and Servicing Agreement and                Aggregate Initial Certificate  Principal Balance of this
Cut-off Date:  February 1, 2005                            Certificate as of the Cut-off Date:
                                                           $100.00

First Distribution Date:                                   Initial   Certificate    Principal   Balance   of   this
March 25, 2005                                             Certificate as of the Cut-off Date:
                                                           $100.00

Master Servicer:                                           CUSIP:  [_____]
EMC Mortgage Corporation

Last Scheduled Distribution Date:
[______] 25, 2035
</TABLE>

                            ASSET-BACKED CERTIFICATE
                                 SERIES 2005-HE2

         evidencing a fractional undivided interest in the distributions
         allocable to the Class P Certificates with respect to a Trust Fund
         consisting primarily of a pool of conventional, closed-end one- to
         four-family first and second lien, fixed and adjustable interest rate
         mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Bear Stearns
Asset Backed Securities I LLC, the Master Servicer or the Trustee or any of
their affiliates or any other person. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental entity
or by Bear Stearns Asset Backed Securities I LLC, the Master Servicer, the
Trustee or any of their affiliates or any other person. None of Bear Stearns
Asset Backed Securities I LLC, the Master Servicer or any of their affiliates
will have any obligation with respect to any certificate or other obligation
secured by or payable from payments on the Certificates.

                  This certifies that ___________________ is the registered
owner of the Percentage Interest evidenced hereby in the beneficial ownership
interest of Certificates of the same Class as this Certificate in a trust (the
"Trust Fund") generally consisting primarily of a pool of fixed and adjustable
interest rate, conventional, closed-end mortgage loans that are secured by first
and second liens on one- to four-family residences (collectively, the "Mortgage
Loans") sold by Bear Stearns Asset Backed Securities I LLC ("BSABS I"). The
Mortgage Loans

                                     A-3-3
<PAGE>

were sold by EMC Mortgage Corporation ("EMC") to BSABS I. EMC will act as master
servicer of the Mortgage Loans (in that capacity, the "Master Servicer," which
term includes any successors thereto under the Agreement referred to below). The
Trust Fund was created pursuant to the Pooling and Servicing Agreement, dated as
of the Cut-off Date specified above (the "Agreement"), among BSABS I, as
depositor (the "Depositor"), EMC Mortgage Corporation as seller and Master
Servicer and LaSalle Bank National Association, as trustee (the "Trustee"), a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, capitalized terms used herein shall have the
meaning ascribed to them in the Agreement. This Certificate is issued under and
is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of its acceptance hereof
assents and by which such Holder is bound.

                  Each Holder of this Certificate will be deemed to have agreed
to be bound by the restrictions set forth in the Agreement to the effect that
(i) each person holding or acquiring any Ownership Interest in this Certificate
must be a United States Person and a Permitted Transferee, (ii) the transfer of
any Ownership Interest in this Certificate will be conditioned upon the delivery
to the Trustee of, among other things, an affidavit to the effect that it is a
United States Person and Permitted Transferee, (iii) any attempted or purported
transfer of any Ownership Interest in this Certificate in violation of such
restrictions will be absolutely null and void and will vest no rights in the
purported transferee, and (iv) if any person other than a United States Person
and a Permitted Transferee acquires any Ownership Interest in this Certificate
in violation of such restrictions, then the Depositor will have the right, in
its sole discretion and without notice to the Holder of this Certificate, to
sell this Certificate to a purchaser selected by the Depositor, which purchaser
may be the Depositor, or any affiliate of the Depositor, on such terms and
conditions as the Depositor may choose.

                  The Trustee will distribute on the 25th day of each month, or,
if such 25th day is not a Business Day, the immediately following Business Day
(each, a "Distribution Date"), commencing on the First Distribution Date
specified above, to the Person in whose name this Certificate is registered at
the close of business on the last day (or if such last day is not a Business
Day, the Business Day immediately preceding such last day) of the calendar month
immediately preceding the month in which the Distribution Date occurs, an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amounts required to be distributed to the Holders of Certificates of the
same Class as this Certificate.

                  Distributions on this Certificate will be made by the Trustee
by check mailed to the address of the Person entitled thereto as such name and
address shall appear on the Certificate Register or, if such Person so requests
by notifying the Trustee in writing as specified in the Agreement.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose and designated in such notice.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is

                                     A-3-4
<PAGE>

made in a transaction that does not require such registration or qualification.
In the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee shall require receipt of (i) if such
transfer is purportedly being made in reliance upon Rule 144A under the 1933
Act, written certifications from the Holder of the Certificate desiring to
effect the transfer, and from such Holder's prospective transferee,
substantially in the forms attached to the Agreement as Exhibit D and either
Exhibit E or Exhibit F, as applicable, and (ii) in all other cases, an Opinion
of Counsel satisfactory to it that such transfer may be made without such
registration or qualification (which Opinion of Counsel shall not be an expense
of the Trust Fund or of the Depositor, the Trustee or the Master Servicer in
their respective capacities as such), together with copies of the written
certification(s) of the Holder of the Certificate desiring to effect the
transfer and/or such Holder's prospective transferee upon which such Opinion of
Counsel is based. Neither the Depositor nor the Trustee is obligated to register
or qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Depositor, the
Seller and the Master Servicer against any liability that may result if the
transfer is not so exempt or is not made in accordance with such federal and
state laws.

                  No transfer of this Class P Certificate will be made unless
the Trustee shall have received either (i) the opinion of counsel set forth in
Section 6.02(b) of the Agreement or (ii) a representation letter under Section
6.02 of the Agreement, in the form as described by the Agreement, stating that
the transferee is not an employee benefit or other plan subject to the
prohibited transaction provisions of ERISA or Section 4975 of the Code (a
"Plan"), or any other person (including an investment manager, a named fiduciary
or a trustee of any Plan) acting, directly or indirectly, on behalf of or
purchasing any Certificate with "plan assets" of any Plan.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
the Trustee is not liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Trustee.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of the Class or Classes of Certificates affected thereby evidencing over
50% of the Voting Rights of such Class or Classes. Any such consent by the
Holder of this Certificate shall be conclusive and binding on such Holder and
upon all future Holders of this Certificate and of

                                     A-3-5
<PAGE>

any Certificate issued upon the transfer hereof or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Trustee upon surrender of this Certificate for registration of transfer
at the offices or agencies maintained by the Trustee for such purposes, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Percentage Interest
will be issued to the designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Depositor, the Master Servicer, the Trustee and any agent of any
of them may treat the Person in whose name this Certificate is registered as the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trustee or any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the earlier of (i) the later of (A) the maturity or other
liquidation (or Advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund and disposition of all property acquired upon
foreclosure or deed in lieu of foreclosure of any Mortgage Loan and (B) the
remittance of all funds due under the Agreement, or (ii) the optional repurchase
by the party named in the Agreement of all the Mortgage Loans and other assets
of the Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans is less than or equal
to a certain percentage of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date as set forth in the Agreement. The
exercise of such right will effect the early retirement of the Certificates. In
no event, however, will the Trust Fund created by the Agreement continue beyond
the expiration of 21 years after the death of certain persons identified in the
Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Trustee by manual signature, this Certificate shall
not be entitled to any benefit under the Agreement, or be valid for any purpose.

                                     A-3-6
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: _____________, ____           LASALLE BANK NATIONAL ASSOCIATION
                                     not in its individual capacity but solely
                                     as Trustee

                                     By:________________________________________
                                             Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class P Certificates referred to in the
within-mentioned Agreement.

                                     LASALLE BANK NATIONAL ASSOCIATION
                                     Authorized signatory of LaSalle Bank
                                     National Association, not in its individual
                                     capacity but solely as Trustee

                                     By:________________________________________
                                            Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Asset-Backed Certificate and hereby authorizes
the transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

                  I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:       ___________________________________________________________________
                           Signature by or on behalf of assignor

                                      __________________________________________
                                                  Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to
_____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                   EXHIBIT A-4

                          Form of Class CE Certificates

                  THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
SENIOR CERTIFICATES AND THE CLASS M CERTIFICATES AS DESCRIBED IN THE AGREEMENT
(AS DEFINED BELOW).

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY
STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES
THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY
(1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A") TO A PERSON
THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN
THE MEANING OF RULE 144A (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE,
THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
"INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE MEANING THEREOF IN RULE
501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH
ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY
THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND
(B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE TRUSTEE
THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL
APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE
JURISDICTION.

                  NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON,
UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION
6.02(B) OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE MASTER
SERVICER AND THE TRUSTEE THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE IS
PERMISSIBLE

                                     A-4-1
<PAGE>

UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE
TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
AGREEMENT.

                                     A-4-2
<PAGE>

<TABLE>
<CAPTION>
<S>                                                        <C>
Certificate No.1                                           Percentage Interest: 100%

Class CE                                                   Variable Pass-Through Rate

Date of Pooling and Servicing Agreement                    Initial Certificate  Notional Amount of this Certificate
and Cut-off Date: February 1, 2005                         as of the Cut-off Date:
                                                           $[__________]

First Distribution Date:                                   Aggregate Certificate Notional Amount of this
March 25, 2005                                             Certificate as of the Cut-off Date:
                                                           $[__________]

Master Servicer:                                           CUSIP: [_____]
EMC Mortgage Corporation

Last Scheduled Distribution Date:
[_________] 25, 2035

</TABLE>

                            ASSET-BACKED CERTIFICATE
                                 SERIES 2005-HE2

         evidencing a fractional undivided interest in the distributions
         allocable to the Class CE Certificates with respect to a Trust Fund
         consisting primarily of a pool of fixed and adjustable interest rate,
         conventional, closed-end mortgage loans that are secured by first and
         second liens on one- to four-family residences sold by BEAR STEARNS
         ASSET BACKED SECURITIES I LLC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Bear Stearns
Asset Backed Securities I LLC, the Master Servicer or the Trustee or any of
their affiliates or any other person. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental entity
or by Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the
Trustee or any of their affiliates or any other person. None of Bear Stearns
Asset Backed Securities I LLC, the Master Servicer or any of their affiliates
will have any obligation with respect to any certificate or other obligation
secured by or payable from payments on the Certificates.

                  This certifies that __________________ is the registered owner
of the Percentage Interest evidenced hereby in the beneficial ownership interest
of Certificates of the same Class as this Certificate in a trust (the "Trust
Fund") generally consisting primarily of a pool of fixed and adjustable interest
rate, conventional, closed-end mortgage loans that are secured by first and
second liens on one- to four-family residences (collectively, the "Mortgage
Loans") sold by Bear Stearns Asset Backed Securities I LLC ("BSABS I"). The
Mortgage Loans were sold by EMC

                                     A-4-3
<PAGE>

Mortgage Corporation ("EMC") to BSABS I. EMC will act as master servicer of the
Mortgage Loans (in that capacity, the "Master Servicer," which term includes any
successors thereto under the Agreement referred to below). The Trust Fund was
created pursuant to the Pooling and Servicing Agreement, dated as of the Cut-off
Date specified above (the "Agreement"), among BSABS I, as depositor (the
"Depositor"), EMC Mortgage Corporation as seller and Master Servicer and LaSalle
Bank National Association, as trustee (the "Trustee"), a summary of certain of
the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, capitalized terms used herein shall have the meaning ascribed to
them in the Agreement. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Certificate by virtue of its acceptance hereof assents and by which such
Holder is bound.

                  The Trustee will distribute on the 25th day of each month, or,
if such 25th day is not a Business Day, the immediately following Business Day
(each, a "Distribution Date"), commencing on the First Distribution Date
specified above, to the Person in whose name this Certificate is registered at
the close of business on the last day (or if such last day is not a Business
Day, the Business Day immediately preceding such last day) of the calendar month
immediately preceding the month in which the Distribution Date occurs, an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amounts required to be distributed to the Holders of Certificates of the
same Class as this Certificate.

                  Distributions on this Certificate will be made by the Trustee
by check mailed to the address of the Person entitled thereto as such name and
address shall appear on the Certificate Register or, if such Person so requests
by notifying the Trustee in writing as specified in the Agreement.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose and designated in such notice.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee shall require receipt of (i) if such
transfer is purportedly being made in reliance upon Rule 144A under the 1933
Act, written certifications from the Holder of the Certificate desiring to
effect the transfer, and from such Holder's prospective transferee,
substantially in the forms attached to the Agreement as Exhibit D and either
Exhibit E or Exhibit F, as applicable, and (ii) in all other cases, an Opinion
of Counsel satisfactory to it that such transfer may be made without such
registration or qualification (which Opinion of Counsel shall not be an expense
of the Trust Fund or of the Depositor, the Trustee, or the Master Servicer in
their respective capacities as such), together with copies of the written
certification(s) of the Holder of the Certificate desiring to effect the
transfer and/or such Holder's prospective transferee upon which such Opinion of
Counsel is based. Neither the Depositor nor the Trustee is obligated to register
or qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such

                                     A-4-4
<PAGE>

Certificates without registration or qualification. Any Holder desiring to
effect a transfer of this Certificate shall be required to indemnify the
Trustee, the Depositor, the Seller and the Master Servicer against any liability
that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.

                  No transfer of this Class CE Certificate will be made unless
the Trustee shall have received the opinion of counsel set forth in section
6.02(b) of the Agreement or (ii) a representation letter under Section 6.02 of
the Agreement, in the form as described by the Agreement, stating that the
transferee is not an employee benefit or other plan subject to the prohibited
transaction provisions of ERISA or Section 4975 of the Code (a "Plan"), or any
other person (including an investment manager, a named fiduciary or a trustee of
any Plan) acting, directly or indirectly, on behalf of or purchasing any
Certificate with "plan assets" of any Plan.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
the Trustee is not liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Trustee.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of the Class or Classes of Certificates affected thereby evidencing over
50% of the Voting Rights of such Class or Classes. Any such consent by the
Holder of this Certificate shall be conclusive and binding on such Holder and
upon all future Holders of this Certificate and of any Certificate issued upon
the transfer hereof or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Trustee upon surrender of this Certificate for registration of transfer
at the offices or agencies maintained by the Trustee for such purposes, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Percentage Interest
will be issued to the designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more

                                     A-4-5
<PAGE>

new Certificates evidencing the same Class and in the same aggregate Percentage
Interest, as requested by the Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Depositor, the Master Servicer, the Trustee and any agent of any
of them may treat the Person in whose name this Certificate is registered as the
owner hereof for all purposes, and none of the Depositor, the Master Servicer,
the Trustee or any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the earlier of (i) the later of (A) the maturity or other
liquidation (or Advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund and disposition of all property acquired upon
foreclosure or deed in lieu of foreclosure of any Mortgage Loan and (B) the
remittance of all funds due under the Agreement, or (ii) the optional repurchase
by the party named in the Agreement of all the Mortgage Loans and other assets
of the Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans is less than a certain
percentage of the aggregate Stated Principal Balance of the Mortgage Loans as of
the Cut-off Date as set forth in the Agreement. The exercise of such right will
effect the early retirement of the Certificates. In no event, however, will the
Trust Fund created by the Agreement continue beyond the expiration of 21 years
after the death of certain persons identified in the Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Trustee by manual signature, this Certificate shall
not be entitled to any benefit under the Agreement, or be valid for any purpose.

                                     A-4-6
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: _____________, ____           LASALLE BANK NATIONAL ASSOCIATION
                                     not in its individual capacity but solely
                                     as Trustee

                                     By:________________________________________
                                             Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Class CE Certificates referred to in the
within-mentioned Agreement.

                                     LASALLE BANK NATIONAL ASSOCIATION
                                     Authorized signatory of LaSalle Bank
                                     National Association, not in its individual
                                     capacity but solely as Trustee

                                     By:________________________________________
                                            Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Asset-Backed Certificate and hereby authorizes
the transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

                  I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:       ___________________________________________________________________
                           Signature by or on behalf of assignor

                                      __________________________________________
                                                  Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to
_____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                   EXHIBIT A-5

                   Form of Class R[-1][-2][-3][X] Certificates

                  THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A
NON-UNITED STATES PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON,
UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION
6.02(B) OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE
THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE IS PERMISSIBLE UNDER
APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE
MASTER SERVICER OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO
THOSE UNDERTAKEN IN THE AGREEMENT.

                  ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE
MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE
MASTER SERVICER AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT (A) THE UNITED
STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED
STATES, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN
INSTRUMENTALITY WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT TO
TAX AND EXCEPT FOR FREDDIE MAC, A MAJORITY OF ITS BOARD OF DIRECTORS IS NOT
SELECTED BY SUCH GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL
ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING, (C)
ANY ORGANIZATION (OTHER THAN CERTAIN FARMERS' COOPERATIVES DESCRIBED IN SECTION
521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE
CODE (INCLUDING THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS
TAXABLE INCOME), (D) RURAL ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED IN
SECTION 1381(A)(2)(C) OF THE CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER
SECTION 775(A) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE

                                     A-5-1
<PAGE>

FOREGOING CLAUSES (A), (B), (C), (D) OR (E) BEING HEREIN REFERRED TO AS A
"DISQUALIFIED ORGANIZATION"), OR (F) AN AGENT OF A DISQUALIFIED ORGANIZATION,
(2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX
AND (3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE
FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION
IN THE CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS
CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED
ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR
EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER
FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE
OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

                                     A-5-2
<PAGE>

<TABLE>
<CAPTION>
<S>                                                        <C>
Certificate No.1

Class R[-1][-2][-3][X]                                     Percentage Interest: 100%

Date of Pooling and Servicing  Agreement and
Cut-off Date: February 1, 2005

First Distribution Date:
March 25, 2005

Master Servicer:                                           CUSIP: [_____]
EMC Mortgage Corporation

Last Scheduled Distribution Date:
[_________] 25, 2035
</TABLE>

                            ASSET-BACKED CERTIFICATE
                                 SERIES 2005-HE2

         evidencing a fractional undivided interest in the distributions
         allocable to the Class R[-1][-2][-3][X] Certificates with respect to a
         Trust Fund consisting primarily of a pool of conventional, closed-end
         first and second lien one- to four-family fixed and adjustable interest
         rate mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Bear Stearns
Asset Backed Securities I LLC, the Master Servicer or the Trustee or any of
their affiliates or any other person. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental entity
or by Bear Stearns Asset Backed Securities I LLC, the Master Servicer, the
Trustee or any of their affiliates or any other person. None of Bear Stearns
Asset Backed Securities I LLC, the Master Servicer or any of their affiliates
will have any obligation with respect to any certificate or other obligation
secured by or payable from payments on the Certificates.

                  This certifies that Bear, Stearns Securities Corp. is the
registered owner of the Percentage Interest evidenced hereby in the beneficial
ownership interest of Certificates of the same Class as this Certificate in a
trust (the "Trust Fund") generally consisting of conventional, closed-end first
and second lien, fixed and adjustable rate mortgage loans secured by one- to
four- family residences (collectively, the "Mortgage Loans") sold by Bear
Stearns Asset Backed Securities I LLC ("BSABS I"). The Mortgage Loans were sold
by EMC Mortgage Corporation ("EMC") to BSABS I. EMC will act as master servicer
of the Mortgage Loans (in that capacity, the "Master Servicer," which term
includes any successors thereto under the Agreement referred

                                     A-5-3
<PAGE>

to below). The Trust Fund was created pursuant to the Pooling and Servicing
Agreement, dated as of the Cut-off Date specified above (the "Agreement"), among
BSABS I, as depositor (the "Depositor"), EMC Mortgage Corporation as seller and
Master Servicer and LaSalle Bank National Association as trustee (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, capitalized terms used herein
shall have the meaning ascribed to them in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of its
acceptance hereof assents and by which such Holder is bound.

                 Each Holder of this Certificate will be deemed to have agreed
to be bound by the restrictions set forth in the Agreement to the effect that
(i) each person holding or acquiring any Ownership Interest in this Certificate
must be a United States Person and a Permitted Transferee, (ii) the transfer of
any Ownership Interest in this Certificate will be conditioned upon the delivery
to the Trustee of, among other things, an affidavit to the effect that it is a
United States Person and Permitted Transferee, (iii) any attempted or purported
transfer of any Ownership Interest in this Certificate in violation of such
restrictions will be absolutely null and void and will vest no rights in the
purported transferee, and (iv) if any person other than a United States Person
and a Permitted Transferee acquires any Ownership Interest in this Certificate
in violation of such restrictions, then the Depositor will have the right, in
its sole discretion and without notice to the Holder of this Certificate, to
sell this Certificate to a purchaser selected by the Depositor, which purchaser
may be the Depositor, or any affiliate of the Depositor, on such terms and
conditions as the Depositor may choose.

                  The Trustee will distribute on the 25th day of each month, or,
if such 25th day is not a Business Day, the immediately following Business Day
(each, a "Distribution Date"), commencing on the First Distribution Date
specified above, to the Person in whose name this Certificate is registered at
the close of business on the last day (or if such last day is not a Business
Day, the Business Day immediately preceding such last day) of the calendar month
immediately preceding the month in which the Distribution Date occurs, an amount
equal to the product of the Percentage Interest evidenced by this Certificate
and the amounts required to be distributed to the Holders of Certificates of the
same Class as this Certificate.

                  Distributions on this Certificate will be made by the Trustee
by check mailed to the address of the Person entitled thereto as such name and
address shall appear on the Certificate Register or, if such Person so requests
by notifying the Trustee in writing as specified in the Agreement.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose and designated in such notice.

                  No transfer of this Class R[-1][-2][-3][X] Certificate will be
made unless the Trustee shall have received either (i) the opinion of counsel
set forth in section 6.02 of the Agreement or (ii) a representation letter, in
the form as described by the Agreement, stating that the transferee is not an
employee benefit or other plan subject to the prohibited transaction provisions
of ERISA or Section 4975 of the Code (a "Plan"), or any other person (including
an

                                     A-5-4
<PAGE>

investment manager, a named fiduciary or a trustee of any Plan) acting, directly
or indirectly, on behalf of or purchasing any Certificate with "plan assets" of
any Plan.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
the Trustee is not liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Trustee.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of the Class or Classes of Certificates affected thereby evidencing over
50% of the Voting Rights of such Class or Classes. Any such consent by the
Holder of this Certificate shall be conclusive and binding on such Holder and
upon all future Holders of this Certificate and of any Certificate issued upon
the transfer hereof or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Trustee upon surrender of this Certificate for registration of transfer
at the offices or agencies maintained by the Trustee for such purposes, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Percentage Interest
will be issued to the designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Depositor, the Master Servicer, the Trustee and any agent of any
of them may treat the Person in whose name this Certificate is registered as the
owner hereof for all purposes, and none of Depositor, the Master Servicer, the
Trustee or any such agent shall be affected by notice to the contrary.

                                     A-5-5
<PAGE>

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the earlier of (i) the later of (A) the maturity or other
liquidation (or Advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund and disposition of all property acquired upon
foreclosure or deed in lieu of foreclosure of any Mortgage Loan and (B) the
remittance of all funds due under the Agreement, or (ii) the optional repurchase
by the party named in the Agreement of all the Mortgage Loans and other assets
of the Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans is less than or equal
to 10% of the aggregate Stated Principal Balance of the Mortgage Loans at the
Cut-off Date. The exercise of such right will effect the early retirement of the
Certificates. In no event, however, will the Trust Fund created by the Agreement
continue beyond the expiration of 21 years after the death of certain persons
identified in the Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Trustee by manual signature, this Certificate shall
not be entitled to any benefit under the Agreement, or be valid for any purpose.

                                     A-5-6
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: _____________, ____           LASALLE BANK NATIONAL ASSOCIATION
                                     not in its individual capacity but solely
                                     as Trustee

                                     By:________________________________________
                                             Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Class R[-1][-2][-3][X] Certificates referred to in
the within-mentioned Agreement.

                                     LASALLE BANK NATIONAL ASSOCIATION
                                     Authorized signatory of LaSalle Bank
                                     National Association, not in its individual
                                     capacity but solely as Trustee

                                     By:________________________________________
                                            Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Asset-Backed Certificate and hereby authorizes
the transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

                  I (We) further direct the Certificate Registrar to issue a new
Certificate of a like denomination and Class, to the above named assignee and
deliver such Certificate to the following address:

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:       ___________________________________________________________________
                           Signature by or on behalf of assignor

                                      __________________________________________
                                                  Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to
_____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                             [provided upon request]

                                       B-1

<PAGE>

                                    EXHIBIT C

                           FORM OF TRANSFER AFFIDAVIT

                                                Affidavit pursuant to Section
                                                860E(e)(4) of the Internal
                                                Revenue Code of 1986, as
                                                amended, and for other purposes

STATE OF          )
                  )ss:
COUNTY OF         )

         [NAME OF OFFICER], being first duly sworn, deposes and says:

         1. That he/she is [Title of Officer] of [Name of Investor] (the
"Investor"), a [savings institution] [corporation] duly organized and existing
under the laws of [the State of _____] [the United States], on behalf of which
he makes this affidavit.

         2. That (i) the Investor is not a "disqualified organization" as
defined in Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended
(the "Code"), and will not be a disqualified organization as of [Closing Date]
[date of purchase]; (ii) it is not acquiring the Bear Stearns Asset Backed
Securities I LLC Asset-Backed Certificates, Series 2005-HE2, Class
R[-1][-2][-3][X] Certificates (the "Residual Certificates") for the account of a
disqualified organization; (iii) it consents to any amendment of the Pooling and
Servicing Agreement that shall be deemed necessary by Bear Stearns Asset Backed
Securities I LLC (upon advice of counsel) to constitute a reasonable arrangement
to ensure that the Residual Certificates will not be owned directly or
indirectly by a disqualified organization; and (iv) it will not transfer such
Residual Certificates unless (a) it has received from the transferee an
affidavit in substantially the same form as this affidavit containing these same
four representations and (b) as of the time of the transfer, it does not have
actual knowledge that such affidavit is false.

         3. That the Investor is one of the following: (i) a citizen or resident
of the United States, (ii) a corporation or partnership (including an entity
treated as a corporation or partnership for federal income tax purposes) created
or organized in, or under the laws of, the United States or any state thereof or
the District of Columbia (except, in the case of a partnership, to the extent
provided in regulations), provided that no partnership or other entity treated
as a partnership for United States federal income tax purposes shall be treated
as a United States Person unless all persons that own an interest in such
partnership either directly or through any entity that is not a corporation for
United States federal income tax purposes are United States Persons, (iii) an
estate whose income is subject to United States federal income tax regardless of
its source, or (iv) a trust other than a "foreign trust," as defined in Section
7701 (a)(31) of the Code.

         4. That the Investor's taxpayer identification number is
______________________.

         5. That no purpose of the acquisition of the Residual Certificates is
to avoid or impede the assessment or collection of tax.

                                      C-1
<PAGE>

         6. That the Investor understands that, as the holder of the Residual
Certificates, the Investor may incur tax liabilities in excess of any cash flows
generated by such Residual Certificates.

         7. That the Investor intends to pay taxes associated with holding the
Residual Certificates as they become due.

         IN WITNESS WHEREOF, the Investor has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer] this ____ day of _________, 20__.

                                     [NAME OF INVESTOR]

                                     By:________________________________________
                                        [Name of Officer]
                                        [Title of Officer]
                                        [Address of Investor for receipt of
                                        distributions]

                                        Address of Investor for receipt of tax
                                        information:

                                       C-2

<PAGE>

         Personally appeared before me the above-named [Name of Officer], known
or proved to me to be the same person who executed the foregoing instrument and
to be the [Title of Officer] of the Investor, and acknowledged to me that he/she
executed the same as his/her free act and deed and the free act and deed of the
Investor.

         Subscribed and sworn before me this ___ day of _________, 20___.

NOTARY PUBLIC

COUNTY OF

STATE OF

My commission expires the ___ day of ___________________, 20___.

<PAGE>

                                    EXHIBIT D

                         FORM OF TRANSFEROR CERTIFICATE

                              ______________,200___

Bear Stearns Asset Backed Securities I LLC
383 Madison Avenue
New York, New York 10179

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Attention: Bear Stearns Asset Backed Securities Trust 2005-HE2

         Re:      Bear Stearns Asset Backed Securities I LLC
                  ASSET-BACKED CERTIFICATES, SERIES 2005-HE2, CLASS[ ]_
                  -----------------------------------------------------

Ladies and Gentlemen:

         In connection with the sale by ___________ (the "Seller") to ________
(the "Purchaser") of $_________ Initial Certificate Principal Balance of
Asset-Backed Certificates, Series 2005-HE2, Class _____ (the "Certificates"),
issued pursuant to the Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement"), dated as of February 1, 2005, among Bear Stearns Asset
Backed Securities I LLC, as depositor (the "Depositor"), EMC Mortgage
Corporation, as seller and master servicer and LaSalle Bank National
Association, as trustee (the "Trustee"). The Seller hereby certifies, represents
and warrants to, a covenants with, the Depositor and the Trustee that:

         Neither the Seller nor anyone acting on its behalf has (a) offered,
pledged, sold, disposed of or otherwise transferred any Certificate, any
interest in any Certificate or any other similar security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate, any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise approached or
negotiated with respect to any Certificate, any interest in any Certificate or
any other similar security with any person in any manner, (d) has made any
general solicitation by means of general advertising or in any other manner, or
(e) has taken any other action, that (as to any of (a) through (e) above) would
constitute a distribution of the Certificates under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of
Section 5 of the Act or any state securities law, or that would require
registration or qualification pursuant thereto. The Seller will not act in any
manner set forth in the foregoing sentence with respect to any Certificate. The
Seller has not and will not sell or otherwise transfer any of the Certificates,
except in compliance with the provisions of the Pooling and Servicing Agreement.

                                       D-1

<PAGE>

                                    Very truly yours,

                                    _____________________________________
                                    (Seller)

                                    By:___________________________

                                    Name:_________________________

                                    Title:________________________

<PAGE>

                                    EXHIBIT E

                     FORM OF INVESTMENT LETTER-NON RULE 144A

                                                                          [Date]
[SELLER]

Bear Stearns Asset Backed Securities I LLC
383 Madison Avenue
New York, New York 10179

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

         Re:      Bear Stearns Asset Backed Securities I Trust 2005-HE2,
                  Asset-Backed Certificates, Series 2005-HE2 (the
                  "Certificates"), including the Class __
                  CERTIFICATES (THE "PRIVATELY OFFERED CERTIFICATES")
                  ------------------------------------------------------

Dear Ladies and Gentlemen:

         In connection with our purchase of Privately Offered Certificates, we
confirm that:

                  (i)      we understand that the Privately Offered Certificates
                           are not being registered under the Securities Act of
                           1933, as amended (the "Act") or any applicable state
                           securities or "Blue Sky" laws, and are being sold to
                           us in a transaction that is exempt from the
                           registration requirements of such laws;

                  (ii)     any information we desired concerning the
                           Certificates, including the Privately Offered
                           Certificates, the trust in which the Certificates
                           represent the entire beneficial ownership interest
                           (the "Trust") or any other matter we deemed relevant
                           to our decision to purchase Privately Offered
                           Certificates has been made available to us;

                  (iii)    we are able to bear the economic risk of investment
                           in Privately Offered Certificates; we are an
                           institutional "accredited investor" as defined in
                           Section 501(a) of Regulation D promulgated under the
                           Act and a sophisticated institutional investor;

                  (iv)     we are acquiring Privately Offered Certificates for
                           our own account, not as nominee for any other person,
                           and not with a present view to any distribution or
                           other disposition of the Privately Offered
                           Certificates;

                  (v)      we agree the Privately Offered Certificates must be
                           held indefinitely by us (and may not be sold,
                           pledged, hypothecated or in any way disposed of)
                           unless subsequently registered under the Act and any
                           applicable state securities or "Blue Sky" laws or an
                           exemption from the registration

                                       E-1

<PAGE>

                           requirements of the Act and any applicable state
                           securities or "Blue Sky" laws is available;

                  (vi)     we agree that in the event that at some future time
                           we wish to dispose of or exchange any of the
                           Privately Offered Certificates (such disposition or
                           exchange not being currently foreseen or
                           contemplated), we will not transfer or exchange any
                           of the Privately Offered Certificates unless:

                                    (A) (1) the sale is to an Eligible Purchaser
                           (as defined below), (2) if required by the Pooling
                           and Servicing Agreement (as defined below) a letter
                           to substantially the same effect as either this
                           letter or, if the Eligible Purchaser is a Qualified
                           Institutional Buyer as defined under Rule 144A of the
                           Act, the Rule 144A and Related Matters Certificate in
                           the form attached to the Pooling and Servicing
                           Agreement (as defined below) (or such other
                           documentation as may be acceptable to the Trustee) is
                           executed promptly by the purchaser and delivered to
                           the addressees hereof and (3) all offers or
                           solicitations in connection with the sale, whether
                           directly or through any agent acting on our behalf,
                           are limited only to Eligible Purchasers and are not
                           made by means of any form of general solicitation or
                           general advertising whatsoever; and

                                    (B) if the Privately Offered Certificate is
                           not registered under the Act (as to which we
                           acknowledge you have no obligation), the Privately
                           Offered Certificate is sold in a transaction that
                           does not require registration under the Act and any
                           applicable state securities or "blue sky" laws and,
                           if LaSalle Bank National Association (the "Trustee")
                           so requests, a satisfactory Opinion of Counsel is
                           furnished to such effect, which Opinion of Counsel
                           shall be an expense of the transferor or the
                           transferee;

                  (vii)    we agree to be bound by all of the terms (including
                           those relating to restrictions on transfer) of the
                           Pooling and Servicing, pursuant to which the Trust
                           was formed; we have reviewed carefully and understand
                           the terms of the Pooling and Servicing Agreement;

                  (viii)   we either: (i) are not acquiring the Privately
                           Offered Certificate directly or indirectly by, or on
                           behalf of, an employee benefit plan or other
                           retirement arrangement which is subject to Title I of
                           the Employee Retirement Income Security Act of 1974,
                           as amended, and/or section 4975 of the Internal
                           Revenue Code of 1986, as amended, or (ii) in the case
                           of the Privately Offered Certificates, have provided
                           the Opinion of Counsel required by the Agreement.

                  (ix)     We understand that each of the Privately Offered
                           Certificates bears, and will continue to bear, a
                           legend to substantiate the following effect: THIS
                           CERTIFICATE HAS NOT BEEN AND WILL NOT BE

                                      E-2
<PAGE>

                           REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                           AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE
                           SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING
                           THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE
                           REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
                           ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER
                           APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A
                           UNDER THE SECURITIES ACT ("RULE 144A") TO A PERSON
                           THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED
                           INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
                           (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
                           PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER
                           HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
                           PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
                           RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM
                           REGISTRATION PROVIDED BY RULE 144 UNDER THE
                           SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED
                           FORM TO AN "INSTITUTIONAL ACCREDITED INVESTOR" WITHIN
                           THE MEANING THEREOF IN RULE 501(A)(1), (2), (3) OR
                           (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN
                           WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH
                           PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN
                           VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE
                           RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN
                           THE FORM PROVIDED IN THE AGREEMENT AND (B) THE
                           RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE
                           ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE,
                           PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
                           SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH
                           CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES
                           LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE
                           JURISDICTION. [In the case of the Class M-7
                           Certificates and the Class M-8 Certificates]: THIS
                           CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR
                           INDIRECTLY BY, OR ON BEHALF OF, AN EMPLOYEE BENEFIT
                           PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT
                           TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY
                           ACT OF 1974, AS AMENDED, OR SECTION 4975 OF THE
                           INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE
                           TRANSFEREE CERTIFIES OR REPRESENTS THAT THE PROPOSED
                           TRANSFER AND HOLDING OF A CERTIFICATE AND THE
                           SERVICING, MANAGEMENT AND OPERATION OF THE TRUST AND
                           ITS ASSETS: (I) WILL NOT RESULT IN ANY PROHIBITED
                           TRANSACTION WHICH IS NOT COVERED

                                      E-3
<PAGE>

                           UNDER AN INDIVIDUAL OR CLASS PROHIBITED TRANSACTION
                           EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED
                           TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE
                           90-1, PTE 95-60 OR PTE 96-23 AND (II) WILL NOT GIVE
                           RISE TO ANY ADDITIONAL OBLIGATIONS ON THE PART OF THE
                           DEPOSITOR, THE MASTER SERVICER OR THE TRUSTEE, WHICH
                           WILL BE DEEMED REPRESENTED BY AN OWNER OF A
                           BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE OR
                           UNLESS THE OPINION SPECIFIED IN SECTION 6.02 OF THE
                           AGREEMENT IS PROVIDED.

                           [In the case of the Class P Certificates and Class CE
                           Certificates]: NO TRANSFER OF THIS CERTIFICATE MAY BE
                           MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES
                           EITHER A CERTIFICATION PURSUANT TO SECTION 6.02 OF
                           THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY
                           TO THE TRUSTEE THAT THE PURCHASE AND HOLDING OF THIS
                           CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL
                           NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
                           TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE
                           RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
                           ("ERISA") OR SECTION 4975 OF THE CODE AND WILL NOT
                           SUBJECT THE TRUSTEE, MASTER SERVICER OR THE DEPOSITOR
                           TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE
                           UNDERTAKEN IN THE AGREEMENT.]

         "ELIGIBLE PURCHASER" means a corporation, partnership or other entity
which we have reasonable grounds to believe and do believe (i) can make
representations with respect to itself to substantially the same effect as the
representations set forth herein, and (ii) is either a Qualified Institutional
Buyer as defined under Rule 144A of the Act or an institutional "Accredited
Investor" as defined under Rule 501 of the Act.

         Terms not otherwise defined herein shall have the meanings assigned to
them in the Pooling and Servicing Agreement, dated as of February 1, 2005, among
Bear Stearns Asset Backed Securities I LLC, as depositor, EMC Mortgage
Corporation, as seller and master servicer and LaSalle Bank National
Association, as Trustee (the "Pooling and Servicing Agreement').

         If the Purchaser proposes that its Certificates be registered in the
name of a nominee on its behalf, the Purchaser has identified such nominee
below, and has caused such nominee to complete the Nominee Acknowledgment at the
end of this letter.

Name of Nominee (if any):____________________________

                                      E-4
<PAGE>

         IN WITNESS WHEREOF, this document has been executed by the undersigned
who is duly authorized to do so on behalf of the undersigned Eligible Purchaser
on the ___ day of ________, 20___.

                                          Very truly yours,

                                          [PURCHASER]

                                          By:___________________________________
                                                   (Authorized Officer)

                                          By:___________________________________
                                                   (Attorney-in-fact)

<PAGE>

                             Nominee Acknowledgment

         The undersigned hereby acknowledges and agrees that as to the
Certificates being registered in its name, the sole beneficial owner thereof is
and shall be the Purchaser identified above, for whom the undersigned is acting
as nominee.

                                          [NAME OF NOMINEE]

                                          By:___________________________________
                                                   (Authorized Officer)

                                          By:___________________________________
                                                   (Attorney-in-fact)

<PAGE>

                                    EXHIBIT F

                FORM OF RULE 144A AND RELATED MATTERS CERTIFICATE

[SELLER]

Bear Stearns Asset Backed Securities I LLC
383 Madison Avenue
New York, New York 10179

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

         Re:      Bear Stearns Asset Backed Securities I Trust 2005-HE2,
                  Asset-Backed Certificates, Series 2005-HE2 (the
                  "Certificates"), including the Class __
                  CERTIFICATES (THE "PRIVATELY OFFERED CERTIFICATES")
                  -------------------------------------------------------

Dear Ladies and Gentlemen:

         In connection with our purchase of Privately Offered Certificates, the
undersigned certifies to each of the parties to whom this letter is addressed
that it is a qualified institutional buyer (as defined in Rule 144A under the
Securities Act of 1933, as amended (the "Act")) as follows:

1. It owned and/or invested on a discretionary basis eligible securities
(excluding affiliate's securities, bank deposit notes and CD's, loan
participations, repurchase agreements, securities owned but subject to a
repurchase agreement and swaps), as described below:

         Date: ______________, 20__ (must be on or after the close of its most
         recent fiscal year)

         Amount: $ _____________________; and

2. The dollar amount set forth above is:

         a. greater than $100 million and the undersigned is one of the
following entities:

                  (x)      [_}      an insurance company as defined in Section
                                    2(13) of the Act1; or

                  (y)      [_}      an investment company registered under the
                                    Investment Company Act or any business
                                    development company as defined in Section
                                    2(a)(48) of the Investment Company Act of
                                    1940; or

__________________
1   A purchase by an insurance company for one or more of its separate accounts,
as defined by Section 2(a)(37) of the Investment Company Act of 1940, which are
neither registered nor required to be registered thereunder, shall be deemed to
be a purchase for the account of such insurance company.

                                      F-1
<PAGE>

                  (z)      [_}      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; or

                  (aa)     [_}       a plan (i) established and maintained by a
                                    state, its political subdivisions, or any
                                    agency or instrumentality of a state or its
                                    political subdivisions, the laws of which
                                    permit the purchase of securities of this
                                    type, for the benefit of its employees and
                                    (ii) the governing investment guidelines of
                                    which permit the purchase of securities of
                                    this type; or

                  (bb)     [_}      a business development company as defined
                                    in Section 202(a)(22) of the Investment
                                    Advisers Act of 1940; or

                  (cc)     [_}      a corporation (other than a U.S. bank,
                                    savings and loan association or equivalent
                                    foreign institution), partnership,
                                    Massachusetts or similar business trust, or
                                    an organization described in Section
                                    501(c)(3) of the Internal Revenue Code; or

                  (dd)     [_}      a U.S. bank, savings and loan association
                                    or equivalent foreign institution, which has
                                    an audited net worth of at least $25 million
                                    as demonstrated in its latest annual
                                    financial statements; or

                  (ee)     [_}      an investment adviser registered under the
                                    Investment Advisers Act; or

         b.       [_}      greater than $10 million, and the undersigned is a
                           broker-dealer registered with the SEC; or

         c.       [_}      less than $10 million, and the undersigned is a
                           broker-dealer registered with the SEC and will only
                           purchase Rule 144A securities in transactions in
                           which it acts as a riskless principal (as defined in
                           Rule 144A); or

         d.       [_}      less than $100 million, and the undersigned is an
                           investment company registered under the Investment
                           Company Act of 1940, which, together with one or more
                           registered investment companies having the same or an
                           affiliated investment adviser, owns at least $100
                           million of eligible securities; or

         e.       [_}      less than $100 million, and the undersigned is an
                           entity, all the equity owners of which are qualified
                           institutional buyers.

         The undersigned further certifies that it is purchasing a Privately
Offered Certificate for its own account or for the account of others that
independently qualify as "Qualified Institutional Buyers" as defined in Rule
144A. It is aware that the sale of the Privately Offered Certificates is being
made in reliance on its continued compliance with Rule 144A. It is aware that
the transferor may rely on the exemption from the provisions of Section 5 of the
Act provided by

                                      F-2
<PAGE>

Rule 144A. The undersigned understands that the Privately Offered Certificates
may be resold, pledged or transferred only to (i) 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 in Rule 144A, or (ii) an
institutional "accredited investor," as such term is defined under Rule 501 of
the Act in a transaction that otherwise does not constitute a public offering.

         The undersigned agrees that if at some future time it wishes to dispose
of or exchange any of the Privately Offered Certificates, it will not transfer
or exchange any of the Privately Offered Certificates to a Qualified
Institutional Buyer without first obtaining a Rule 144A and Related Matters
Certificate in the form hereof from the transferee and delivering such
certificate to the addressees hereof. Prior to making any transfer of Privately
Offered Certificates, if the proposed Transferee is an institutional "accredited
investor," the transferor shall obtain from the transferee and deliver to the
addressees hereof an Investment Letter in the form attached to the Pooling and
Servicing Agreement, dated as of February 1, 2005, among Bear Stearns Asset
Backed Securities I LLC, EMC Mortgage Corporation and LaSalle Bank National
Association, as Trustee, pursuant to which the Certificates were issued.

         The undersigned certifies that it either: (i) is not acquiring the
Privately Offered Certificate directly or indirectly by, or on behalf of, an
employee benefit plan or other retirement arrangement which is subject to Title
I of the Employee Retirement Income Security Act of 1974, as amended, and/or
section 4975 of the Internal Revenue Code of 1986, as amended, or (ii) in the
case of the Privately Offered Certificates, has provided the Opinion of Counsel
required by the Agreement.

         If the Purchaser proposes that its Certificates be registered in the
name of a nominee on its behalf, the Purchaser has identified such nominee
below, and has caused such nominee to complete the Nominee Acknowledgment at the
end of this letter.

Name of Nominee (if any):___________________

                                      F-3
<PAGE>

IN WITNESS WHEREOF, this document has been executed by the undersigned who is
duly authorized to do so on behalf of the undersigned Eligible Purchaser on the
____ day of ___________, 20___.

                                        Very truly yours,

                                        [PURCHASER]

                                        By:_____________________________________
                                                 (Authorized Officer)

                                        By:_____________________________________
                                                  (Attorney-in-fact)

<PAGE>

                             Nominee Acknowledgment

         The undersigned hereby acknowledges and agrees that as to the
Certificates being registered in its name, the sole beneficial owner thereof is
and shall be the Purchaser identified above, for whom the undersigned is acting
as nominee.

                                        [NAME OF NOMINEE]

                                        By:_____________________________________
                                                 (Authorized Officer)

                                        By:_____________________________________
                                                  (Attorney-in-fact)

<PAGE>

                                    EXHIBIT G

                           FORM OF REQUEST FOR RELEASE

To:      LaSalle Bank National Association
         135 South LaSalle Street, Suite 1625
         Chicago, Illinois 60603

RE:      Pooling and Servicing Agreement, dated as of February 1, 2005, among
         Bear Stearns Asset Backed Securities I LLC, as Depositor, EMC Mortgage
         Corporation, as seller and MASTER SERVICER AND LASALLE BANK NATIONAL
         ASSOCIATION, AS TRUSTEE
         --------------------------------------------------------------------

         In connection with the administration of the Mortgage Loans held by you
pursuant to the above-captioned Pooling and Servicing Agreement, we request the
release, and hereby acknowledge receipt, of the Mortgage File for the Mortgage
Loan described below, for the reason indicated.

MORTGAGE LOAN NUMBER:
---------------------

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

_____          1.       Mortgage Paid in Full and proceeds have been deposited
                        into the Custodial Account

_____          2.       Foreclosure

_____          3.       Substitution

_____          4.       Other Liquidation

_____          5.       Nonliquidation               Reason:____________________

_____          6.       California Mortgage Loan paid in full

                                       By:______________________________________
                                                (authorized signer)

                                       Issuer:__________________________________
                                       Address:_________________________________

                                       Date:____________________________________

                                      G-1
<PAGE>

                                    EXHIBIT H

                          DTC Letter of Representations
                             [provided upon request]

                                       H-1

<PAGE>

                                    EXHIBIT I

                   Schedule of Mortgage Loans with Lost Notes
                             [provided upon request]

                                       I-1

<PAGE>

                                    EXHIBIT J

                           FORM OF CUSTODIAL AGREEMENT
                           ---------------------------

                  THIS CUSTODIAL AGREEMENT (as amended and supplemented from
time to time, the "Agreement"), dated as of February 28, 2005, by and among
LASALLE BANK NATIONAL ASSOCIATION, not individually but solely as trustee under
the Pooling and Servicing Agreement defined below (including its successors
under the Pooling and Servicing Agreement defined below, in that capacity, the
"Trustee") and as custodian (together with any successor in interest or any
successor appointed hereunder, in that capacity, the "Custodian"), BEAR STEARNS
ASSET BACKED SECURITIES I LLC, as depositor (together with any successor in
interest, the "Depositor") and EMC MORTGAGE CORPORATION, as seller (in that
capacity, the "Seller") and master servicer (together with any successor in
interest or successor under the Pooling and Servicing Agreement referred to
below, the "Master Servicer").

                                WITNESSETH THAT:
                                ----------------

                  WHEREAS, the Depositor, the Seller, the Master Servicer and
the Trustee have entered into a Pooling and Servicing Agreement, dated as of
February 1, 2005, relating to the issuance of Bear Stearns Asset Backed
Securities I Trust 2005-HE2, Asset-Backed Certificates, Series 2005-HE21 (as in
effect on the date of this Agreement, the "Original Pooling and Servicing
Agreement," and as amended and supplemented from time to time, the "Pooling and
Servicing Agreement"); and all custodian obligations are defined herein. In the
event any custodian obligations are defined in the Pooling and Servicing
Agreement, this custodial agreement shall supercede.

                  WHEREAS, the Custodian has agreed to act as agent for the
Trustee on behalf of the Certificateholders for the purposes of receiving and
holding certain documents and other instruments delivered by the Depositor, the
Seller or the Master Servicer under the Pooling and Servicing Agreement and the
Servicers, if any, under their respective Servicing Agreements, all upon the
terms and conditions and subject to the limitations hereinafter set forth;

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements hereinafter set forth, the Trustee, the
Depositor, the Seller, the Master Servicer and the Custodian hereby agree as
follows:

                                   ARTICLE I.
                                   DEFINITIONS

DEFINITIONS. For the purposes of this Agreement, the following terms shall have
the indicated meanings unless the context or use indicates another or different
meaning and intent, the definitions of such terms are equally applicable to the
singular and the plural forms of such terms, the words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Agreement as a whole
and not to any particular section or other subdivision, and section references
refer to sections of this Agreement.

         "AGREEMENT" shall mean this Custodial Agreement, as further
supplemented or amended from time to time.

                                       J-1

<PAGE>

         "BUSINESS DAY" shall mean any day other than (i) a Saturday or a
Sunday, or (ii) a day on which banking institutions in The City of New York, New
York, Chicago, Illinois, Minneapolis, Minnesota or the city in which the
Corporate Trust Office of the Trustee or the principal office of the Master
Servicer is located are authorized or obligated by law or executive order to be
closed.

         "CLOSING DATE" shall mean February 28, 2005.

         "MASTER SERVICER" shall mean EMC Mortgage Corporation, in its capacity
as master servicer, and its successors and assigns.

         "MERS" shall mean 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" shall mean any Mortgage Loan registered with MERS
on the MERS(R) system.

         "MERS(R) SYSTEM" shall mean the system of recording transfers of
Mortgages electronically maintained by MERS.

         "MIN" shall mean the Mortgage Identification Number for Mortgage Loans
registered with MERS on the MERS System.

         "MOM LOAN" shall mean with respect to any Mortgage Loan, MERS acting as
the mortgagee of such Mortgage Loan, solely as nominee for the originator of
such Mortgage Loan and its successors and assigns, at the origination thereof.

         "MORTGAGE" shall mean the mortgage, deed of trust or other instrument
creating a first or second lien on or first or second priority ownership
interest in an estate in fee simple in real property securing a Mortgage Note.

         "MORTGAGE ASSIGNMENT" shall mean an assignment of the Mortgage in
recordable form, sufficient under the laws of the jurisdiction wherein the
related Mortgaged Property is located to reflect the sale of the Mortgage.

         "MORTGAGE FILE" shall have the meaning set forth in Section 2 hereof.

         "MORTGAGE LOAN" shall mean a first or subordinate lien mortgage loan on
a one-to-four family residential property.

         "MORTGAGE LOAN SCHEDULE" shall mean the electronic schedule of Mortgage
Loans identified in Schedule A.

         "MORTGAGED PROPERTY" shall mean the real property securing repayment of
a Mortgage Loan.

         "MORTGAGOR" shall mean the obligor on a Mortgage Note.

                                      J-2
<PAGE>

         "NOTE" shall mean any promissory note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

         "SERVICER" shall mean the related servicer of the Mortgage Loans as
designated by Owner.

         "TRUSTEE" shall mean LaSalle Bank National Association, a national
banking association, not in its individual capacity, but solely in its capacity
as trustee for the benefit of the Certificateholders under this Agreement, and
any successor thereto, and any corporation or national banking association
resulting from or surviving any consolidation or merger to which it or its
successors may be a party and any successor trustee as may from time to time be
serving as successor trustee hereunder.

         Any Capitalized terms used in this Agreement and not defined herein
shall have the meanings assigned in the Original Pooling and Servicing
Agreement, unless otherwise required by the context herein.

                                  ARTICLE II.
                          CUSTODY OF MORTGAGE DOCUMENTS

                  Section 2.1. CUSTODIAN TO ACT AS AGENT: ACCEPTANCE OF MORTGAGE
FILES. The Custodian, as the duly appointed custodial agent of the Trustee for
these purposes, acknowledges (subject to any exceptions noted in the Initial
Certification referred to in Section 2.3(a)) receipt of the Mortgage Files
relating to the Mortgage Loans identified on the Schedule attached hereto (the
"Mortgage Loan Schedule") and declares that it holds and will hold such Mortgage
Files as agent for the Trustee, in trust, for the use and benefit of all present
and future Certificateholders.

                  Section 2.2. RECORDATION OF ASSIGNMENTS. If any Mortgage File
includes one or more assignments of Mortgage that have not been recorded and the
related Mortgage Loan is not a MERS Loan or the Custodian has not received
written instructions from the Seller or the Trustee that the related Mortgaged
Properties are located in jurisdictions under the laws of which the recordation
of such assignment is not necessary to protect the Trustee's interest therein,
each such assignment shall be delivered by the Custodian to the Seller for the
purpose of recording it in the appropriate public office for real property
records, and the Seller, at no expense to the Custodian, shall promptly cause to
be recorded in the appropriate public office for real property records each such
assignment of Mortgage and, upon receipt thereof from such public office, shall
return each such assignment of Mortgage to the Custodian.

                  Section 2.3. REVIEW OF MORTGAGE FILES.

                  (a) The documents set forth in the definition "Mortgage File"
herein shall be delivered and released to the Custodian relating to each of the
Mortgage Loans to be purchased on a Closing Date. The related Mortgage Loans
shall be identified in the Mortgage Loan Schedule in electronic format which
shall be delivered to the Custodian at least two Business Days prior to each
Closing Date. On or prior to the Closing Date, the Custodian shall deliver to
the Seller and the Trustee an Initial Certification in the form annexed hereto
as Exhibit

                                       J-3

<PAGE>

One evidencing receipt (subject to any exceptions noted therein) of a Mortgage
File for each of the Mortgage Loans listed on Schedule A attached hereto (the
"Mortgage Loan Schedule").

                  (b) Within 90 days thereafter, the Custodian agrees, for the
benefit of Certificateholders, to review each such document, and shall deliver
to the Seller, the Master Servicer and the Trustee an Interim Certification in
the form annexed hereto as Exhibit Two to the effect that all such documents
have been executed and received and that such documents relate to the Mortgage
Loans identified on the Mortgage Loan Schedule, except for any exceptions listed
on Schedule A attached to such Interim Certification. The Custodian shall be
under no duty or obligation to inspect, review or examine said documents,
instruments, certificates or other papers to determine that the same 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.

                  (c) Not later than 180 days after the Closing Date, the
Custodian shall review, for the benefit of Certificateholders, the Mortgage
Files and deliver to the Seller, the Master Servicer and the Trustee a Final
Certification in the form annexed hereto as Exhibit Three evidencing whether
each document required to be recorded has been returned from the recording
office with evidence of recording thereon and the Custodian has received either
an original or a copy thereof. If the Custodian finds any document missing, or
to be unrelated, determined on the basis of the mortgagor name, original
principal balance and loan number, to the mortgage loans identified on the
Mortgage Loan Schedule or to appear defective on its face, the Custodian shall
note such defect in the exception report attached to the Final Certification and
shall promptly notify the Trustee.

                  (d) In reviewing the Mortgage Files as provided herein, the
Custodian shall make no representation as to and shall not be responsible to
verify (i) the validity, legality, enforceability, due authorization,
recordability, sufficiency or genuineness of any of the documents included in
any Mortgage File or (ii) the collectibility, insurability, effectiveness or
suitability of any of the documents in any Mortgage File.

         In performing any such review, the Custodian may conclusively rely on
the purported due execution and genuineness of any such document and on the
purported genuineness of any signature thereon.

         Upon receipt of written request from the Trustee, the Custodian shall
as soon as practicable supply the Trustee with a list of all of the documents
relating to the Mortgage Loans missing from the Mortgage Files.

                  Section 2.4. CUSTODIAN TO COOPERATE: RELEASE OF MORTGAGE
FILES. Upon receipt of written notice per Exhibit Four or Electronic Release
Request per Exhibit Five from the Trustee that the Seller has repurchased a
Mortgage Loan pursuant to Article II of the Pooling and Servicing Agreement, and
a request for release (a "Request for Release") confirming that the purchase
price therefore has been paid as required under the Pooling and Servicing
Agreement, then the Custodian agrees to promptly release to the Seller the
related Mortgage File.

                                      J-4
<PAGE>

                  Upon the Custodian's receipt of a Request for Release
substantially in the form of Exhibit Four or Three attached hereto or Electronic
Release Request per Exhibit Five, stating that it has received payment in full
of a Mortgage Loan or that payment in full will be escrowed in a manner
customary for such purposes, the Custodian agrees promptly to release to the
Master Servicer, the related Mortgage File. The Depositor shall deliver to the
Custodian and the Custodian agrees to review in accordance with the provisions
of the Custodial Agreement the Mortgage Note and other documents constituting
the Mortgage File with respect to any Replacement Mortgage Loan.

                  From time to time as is appropriate for the servicing or
foreclosure of any Mortgage Loan, the Master Servicer shall deliver to the
Custodian a Request for Release per Exhibit Four or Electronic Release Request
per Exhibit Five requesting that possession of all of the Mortgage File be
released to the Master Servicer and certifying as to the reason for such
release. Upon receipt of the foregoing, the Custodian shall deliver the Mortgage
File to the Master Servicer. The Master Servicer shall cause each Mortgage File
or any document therein so released to be returned to the Custodian when the
need therefore by the Master Servicer no longer exists, unless (i) the Mortgage
Loan has been liquidated, or (ii) the Mortgage File or such document has been
delivered to an attorney, or to a public trustee or other public official as
required by law, for purposes of initiating or pursuing legal action or other
proceedings for the foreclosure of the Mortgaged Property.

                  Section 2.5. ASSUMPTION AGREEMENTS. In the event that any
assumption agreement, substitution of liability agreement or sale of servicing
agreement is entered into with respect to any Mortgage Loan subject to this
Agreement, the Master Servicer shall notify the Custodian that such assumption
or substitution agreement has been completed by forwarding to the Custodian the
original of such assumption or substitution agreement, which shall be added to
the related Mortgage File and, for all purposes, shall be considered a part of
such Mortgage File to the same extent as all other documents and instruments
constituting parts thereof.

                                  ARTICLE III.
                            CONCERNING THE CUSTODIAN

                  Section 3.1. CUSTODIAN A BAILEE AND AGENT OF THE TRUSTEE. With
respect to each Mortgage Note, Mortgage and other documents constituting each
Mortgage File which are delivered to the Custodian, the Custodian is exclusively
the bailee and custodial agent of the Trustee and has no instructions to hold
any Mortgage Note or Mortgage for the benefit of any person other than the
Trustee and the Certificateholders and undertakes to perform such duties and
only such duties as are specifically set forth in this Agreement. Except upon
compliance with the provisions of Section 2.4 of this Agreement, no Mortgage
Note, Mortgage or Mortgage File shall be delivered by the Custodian to the
Seller, the Depositor or the Master Servicer or otherwise released from the
possession of the Custodian.

                  Section 3.2. CUSTODIAN MAY OWN CERTIFICATES. The Custodian in
its individual or any other capacity may become the owner or pledgee of
interests in the Mortgage Loans with the same rights it would have if it were
not Custodian.

                                      J-5
<PAGE>

                  Section 3.3. MASTER SERVICER TO PAY CUSTODIAN'S FEES AND
EXPENSES. The Master Servicer covenants and agrees to pay to the Custodian from
time to time, and the Custodian shall be entitled to, reasonable compensation
for all services rendered by it in the exercise and performance of any of the
powers and duties hereunder of the Custodian, and the Master Servicer will pay
or reimburse the Custodian upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Custodian in accordance with
any of the provisions of this Agreement (including the reasonable compensation
and the expenses and disbursements of its counsel and of all persons not
regularly in its employ), except any such expense, disbursement or advance as
may arise from its negligence or bad faith. A separate fee schedule will apply
between the Custodian and the Master Servicer.

                  Section 3.4. CUSTODIAN MAY RESIGN; TRUSTEE MAY REMOVE
CUSTODIAN. The Custodian may resign from the obligations and duties hereby
imposed upon it as such obligations and duties relate to its acting as Custodian
of the Mortgage Loans. Upon receiving such written notice of resignation, the
Trustee shall either take custody of the Mortgage Files itself and give prompt
written notice thereof to the Depositor, the Master Servicer and the Custodian,
or promptly appoint a successor Custodian by written instrument, in duplicate,
one copy of which instrument shall be delivered to the resigning Custodian and
one copy to the successor Custodian. If the Trustee shall not have taken custody
of the Mortgage Files and no successor Custodian shall have been so appointed
and have accepted appointment within 30 days after the giving of such written
notice of resignation, the resigning Custodian may petition any court of
competent jurisdiction for the appointment of a successor Custodian.

                  The Trustee may remove the Custodian at any time upon 60 days
prior written notice to Custodian. In such event, the Trustee shall appoint, or
petition a court of competent jurisdiction to appoint, a successor Custodian
hereunder. Any successor Custodian shall be a depository institution subject to
supervision or examination by federal or state authority shall be able to
satisfy the other requirements contained in Section 3.7 and shall be
unaffiliated with the Master Servicer and the Depositor.

                  Any resignation or removal of the Custodian and appointment of
a successor Custodian pursuant to any of the provisions of this Section 3.4
shall become effective upon acceptance of appointment by the successor
Custodian. The Trustee shall give prompt notice to the Depositor and the Master
Servicer of the appointment of any successor Custodian. Notwithstanding anything
to the contrary set forth herein, no successor Custodian shall be appointed by
the Trustee without the prior approval of the Depositor and the Master Servicer.

                  Section 3.5. MERGER OR CONSOLIDATION OF CUSTODIAN. Any Person
into which the Custodian may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Custodian shall be a party, or any Person succeeding
to the business of the Custodian, shall be the successor of the Custodian
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

                  Section 3.6. REPRESENTATIONS OF THE CUSTODIAN. The Custodian
hereby represents that it is a depository institution subject to supervision or
examination by a federal or

                                      J-6
<PAGE>

state authority, has a combined capital and surplus of at least $15,000,000 and
is qualified to do business in the jurisdictions in which it will hold any
Mortgage File.

                  Section 3.7. LIMITATION ON LIABILITY. Neither the Custodian
nor any of its directors, officers, agents or employees, shall be liable for any
action taken or omitted to be taken by it or them hereunder or in connection
herewith in good faith and believed (which belief may be based upon the opinion
or advice of counsel selected by it in the exercise of reasonable care) by it or
them to be within the purview of this Agreement, except for its or their own
negligence, lack of good faith or willful misconduct. The Custodian and any
director, officer, employee or agent of the Custodian 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. In no event shall the Custodian
or its directors, officers, agents and employees be held liable for any special,
indirect or consequential damages resulting from any action taken or omitted to
be taken by it or them hereunder or in connection herewith even if advised of
the possibility of such damages.

                  Notwithstanding anything herein to the contrary, the Custodian
agrees to indemnify the Trust Fund, the Trustee and each of their respective
officers, directors and agents for any and all liabilities, obligations, losses,
damages, payments, costs or expenses of any kind whatsoever that may be imposed
on, incurred by or asserted against the Trustee or Trust Fund, due to any
negligent performance by the Custodian of its duties and responsibilities under
this Agreement; provided, however, that the Custodian shall not be liable to any
of the foregoing Persons for any amount and any portion of any such amount
resulting from the willful misfeasance, bad faith or negligence of such person,
and the Custodian's reliance on instructions from the Trustee or the Master
Servicer. The provisions of this Section 3.7 shall survive the termination of
this Custodial Agreement.

                  The Custodian and its directors, officers, employees and
agents shall be entitled to indemnification and defense from the Trust Fund for
any loss, liability or expense incurred without negligence, willful misconduct,
bad faith on their part, arising out of, or in connection with, the acceptance
or administration of the custodial arrangement created hereunder, including the
costs and expenses of defending themselves against any claim or liability in
connection with the exercise or performance of any of their powers or duties
hereunder.

                  Section 3.8. LIMITATION OF DUTIES. THE CUSTODIAN IN ITS
CAPACITY AS SUCH:

                  (a) in the course of its review of the Mortgage Files, shall
not be required to make determinations (1) of a legal nature or (2) as to the
authority of any officer or agent of the Master Servicer, Trustee or other
entity who has executed (or certified with respect to) any document which is
part of the Mortgage File;

                  (b) shall have no duties or obligations other than those
specifically set forth herein or as may subsequently be agreed upon in writing
by the parties hereto and shall use the same degree of care and skill as is
reasonably expected of financial institutions acting in comparable capacities;

                                      J-7
<PAGE>

                  (c) will be regarded as making no representations and having
no responsibilities as to the validity, sufficiency, value, genuineness,
ownership or transferability of any Mortgage Loans and will not be required to
and will not make any representations as to the validity, value or genuineness
of the Mortgage Loans;

                  (d) shall not be obligated to take any legal action hereunder
which might in its judgment involve any expense or liability unless it has been
furnished with reasonable indemnity;

                  (e) may rely on and shall be protected in acting upon any
certificate, instrument, opinion, notice, letter, telegram or other document, or
any security, delivered to it and reasonably believed by it to be genuine and to
have been signed by the Master Servicer or the Trustee;

                  (f) may rely on and shall be protected in acting upon the
written instructions of the Master Servicer or the Trustee and such employees
and representatives of the Master Servicer and the Trustee, as applicable, may
hereinafter designate in writing;

                  (g) may consult counsel satisfactory to it (including counsel
for the Trustee or the Master Servicer) and the opinion of such counsel shall be
full and complete authorization and protection in respect of any action taken,
suffered, or omitted by it hereunder in good faith and in accordance with the
opinion of such counsel (provided that the fees of such counsel in connection
with such consultation and opinion shall be paid by the Custodian); and

                  (h) shall not be liable for any error of judgment, or for any
act done or step taken or omitted by it, in good faith, or for any mistake of
fact or law, or for anything which it may do or refrain from doing in connection
therewith, except in the case of a breach of any of the Custodian's obligations
hereunder, negligence or willful misconduct.

                  The Custodian shall be held to the same standard of conduct,
and shall be entitled to the same protections, privileges and immunities as
other custodians acting in a custodial capacity are generally afforded.

                  No covenant or agreement contained herein shall be deemed to
be the covenant or agreement of any member of the Board of Directors, or any
director, officer, agent, employee or representative of the Trustee, Master
Servicer or the Custodian in his or her individual capacity and none of such
persons shall be subject to any personal liability or accountability by reason
of the execution of this Agreement, whether by virtue of any constitution,
statute or rule of law or by the enforcement of any assessment or penalty, or
otherwise.

                                  ARTICLE IV.
                            MISCELLANEOUS PROVISIONS

                  Section 4.1. NOTICES. All notices, requests, consents and
demands and other communications required under this Agreement or pursuant to
any other instrument or document delivered hereunder shall be in writing and,
unless otherwise specifically provided, may be delivered personally, by telegram
or telex, or by registered or certified mail, postage prepaid, return receipt
requested, at the addresses specified on the signature page hereof (unless
changed

                                      J-8
<PAGE>

by the particular party whose address is stated herein by similar notice
in writing), in which case the notice will be deemed delivered when received.

                  Section 4.2. AMENDMENTS. No modification or amendment of or
supplement to this Agreement shall be valid or effective unless the same is in
writing and signed by all parties hereto. The Trustee shall give prompt notice
to the Custodian of any amendment or supplement to the Pooling and Servicing
Agreement and furnish the Custodian with written copies thereof.

                  Section 4.3. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW.

                  Section 4.4. RECORDATION OF AGREEMENT. To the extent permitted
by applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere,
such recordation to be effected by the Depositor and at the Trust's expense, but
only upon direction accompanied by an Opinion of Counsel reasonably satisfactory
to the Depositor to the effect that the failure to effect such recordation is
likely to materially and adversely affect the interests of the
Certificateholders.

                  For the purpose of facilitating the recordation of this
Agreement as herein provided and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such counterparts shall
constitute but one and the same instrument.

                  Section 4.5. SEVERABILITY OF PROVISIONS. If any one or more of
the covenants, agreements, provisions or terms of this Agreement shall be for
any reason whatsoever held invalid, then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the holders thereof.

                            [Signature Page Attached]

                                      J-9
<PAGE>

                  IN WITNESS WHEREOF, this Agreement is executed as of the date
first above written.

<TABLE>
<CAPTION>
<S>                                                         <C>
Address:                                                    LASALLE BANK NATIONAL ASSOCIATION, not individually
                                                            but solely as Trustee
135 South LaSalle Street
Chicago, IL 60603
                                                            By:___________________________________________________
Attention:  BSABS I 2005-HE2                                Name:
Telecopy:                                                   Title:
Confirmation:

Address:                                                    LASALLE BANK NATIONAL ASSOCIATION, as Custodian

2571 Busse Rd., Suite 200                                   By:___________________________________________________
Elk Grove Village, IL 60007                                 Name:
                                                            Title:

Address:                                                    BEAR STEARNS ASSET BACKED SECURITIES I LLC

383 Madison Avenue
New York, New York 10179                                    By:___________________________________________________
                                                            Name:
                                                            Title:

Address:                                                    EMC MORTGAGE CORPORATION

909 Hidden Ridge Drive, Suite 200
Irving, Texas 75038                                         By:___________________________________________________
                                                            Name:
                                                            Title:
</TABLE>

<PAGE>

STATE OF ILLINOIS         )
                          ) ss:
COUNTY OF COOK            )

                  On the 28th day of February 2005 before me, a notary public in
and for said State, personally appeared _____________________________________ ,
known to me to be a(n) __________________________ of LaSalle Bank National
Association, one of the parties that executed the within agreement, and also
known to me to be the person who executed the within agreement on behalf of said
party and acknowledged to me that such party executed the within instrument.

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

                                              __________________________________
                                                      Notary Public

[SEAL]

<PAGE>

STATE OF ILLINIOS           )
                            ) ss:
COUNTY OF                   )

                  On the 28th day of February 2005 before me, a notary public in
and for said State, personally appeared _____________________________________,
known to me to be a(n) ____________________________ of LaSalle Bank National
Association, one of the parties that executed the within instrument, and also
known to me to be the person who executed it on behalf of said party, and
acknowledged to me that such party executed the within instrument.

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

                                              __________________________________
                                                      Notary Public

[Notarial Seal]

<PAGE>

STATE OF NEW YORK            )
                             ) ss:
COUNTY OF NEW YORK           )

                  On the 28th day of February 2005 before me, a notary public in
and for said State, personally appeared Baron Silverstein, known to me to be a
Vice President of Bear Stearns Asset Backed Securities I LLC, and also known to
me to be the person who executed the within instrument on behalf of said party,
and acknowledged to me that such party executed the within instrument.

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

                                              __________________________________
                                                      Notary Public

[SEAL]

<PAGE>

STATE OF TEXAS              )
                            ) ss:
COUNTY OF DALLAS            )

                  On the 28th day of February 2005 before me, a notary public in
and for said State, personally appeared __________________, known to me to be
a/an ___________________ of EMC Mortgage Corporation, one of the parties that
executed the within instrument, and also known to me to be the person who
executed the within instrument on behalf of said party, and acknowledged to me
that such party executed the within instrument.

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

                                              __________________________________
                                                      Notary Public

[Notarial Seal]

<PAGE>

                                   SCHEDULE A
                             (Provided upon request)

                                      J-A-1

<PAGE>

                                   EXHIBIT ONE

                     FORM OF CUSTODIAN INITIAL CERTIFICATION

                                            February 28, 2005

LaSalle Bank National Association
135 South LaSalle Street
Chicago, IL 60603

EMC Mortgage Corporation
909 Hidden Ridge Drive, Suite 200
Irving, Texas 75038

Attention: Bear Stearns Asset Backed Securities I LLC, Series 2005-HE2

         Re:      Custodial Agreement, dated as of February 28, 2005, by and
                  among LaSalle Bank National Association, as trustee and as
                  Custodian, Bear Stearns Asset Backed Securities I LLC, as
                  depositor and EMC Mortgage Corporation, as seller and as
                  master servicer relating to Bear Stearns Asset Backed
                  Securities I Trust 2005-HE2, Asset-Backed
                  CERTIFICATES, SERIES 2005-HE2
                  ----------------------------------------------------------

Ladies and Gentlemen:

                  In accordance with Section 2.3(a) of the above-captioned
Custodial Agreement, the undersigned, as Custodian, hereby certifies that it has
received the following documents with respect to each Mortgage Loan listed in
the Mortgage Loan Schedule, with any exceptions listed on Schedule A attached
hereto: (i) an original note, including any riders thereto, endorsed without
recourse to the order of LaSalle Bank National Association, as Trustee for
certificateholders of ___________________________ and showing an unbroken chain
of endorsements from the original payee thereof to the person endorsing it to
the Trustee; (ii) an original mortgage and, if the related mortgage loan is a
MERS Loan, registered with MERS, noting the presence of the mortgage
identification number and language indicating that such mortgage loan is a MERS
Loan, which shall have been recorded (or if the original is not available, a
copy) with evidence of such recording indicated thereon (or if clause (x) in the
proviso below applies, shall be in recordable form); (iii) unless the mortgage
loan is a MERS Loan, the assignment (either an original or a copy, which may be
in the form of a blanket assignment if permitted in the jurisdiction in which
the mortgage property is located) to the Trustee of the mortgage with respect to
each mortgage loan in the name of ___________________________, which shall have
been recorded (of if clause (x) in the proviso below applies, shall be in
recordable form); (iv) an original or a copy of all intervening assignments of
the mortgage, if any, with evidence of recording thereon; (v) the original
policy of title insurance or mortgagee's certificate of title insurance or
commitment or binder for title insurance, if available, or a copy thereof, or,
in the event that such original title insurance policy is unavailable, a
photocopy thereof, or in lieu thereof, a current lien search on the related

                                      J-1-1

<PAGE>

mortgaged property; and (vi) originals or copies of all available assumption,
modification or substitution agreements, if any; provided, however, that in lieu
of the foregoing, the Seller may deliver the following documents, under the
circumstances set forth below: (x) if any mortgage, assignment thereof to the
Trustee or intervening assignments thereof have been delivered or are being
delivered to recording offices for recording and have not been returned in time
to permit their delivery as specified above, the Depositor may deliver a true
copy thereof with a certification by the Seller or the title company issuing the
commitment for title insurance, on the face of such copy, substantially as
follows: "Certified to be a true and correct copy of the original, which has
been transmitted for recording"; and (y) in lieu of the mortgage notes relating
to the mortgage loans identified in the list attached hereto, the Depositor may
deliver a lost note affidavit and indemnity and a copy of the original note, if
available.

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement.

                                           LASALLE BANK NATIONAL ASSOCIATION

                                           By:__________________________________
                                           Name:________________________________
                                           Title:_______________________________

                                      J-1-2

<PAGE>

                                   SCHEDULE A

                             (PROVIDED UPON REQUEST)

                                      J-1-3

<PAGE>

                                   EXHIBIT TWO

                     FORM OF CUSTODIAN INTERIM CERTIFICATION

                                                    [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Chicago, IL 60603

EMC Mortgage Corporation
909 Hidden Ridge Drive, Suite 200
Irving, Texas 75038

Attention: Bear Stearns Asset Backed Securities I LLC, Series 2005-HE2

         Re:      Custodial Agreement, dated as of February 28, 2005, by and
                  among LaSalle Bank National Association, as trustee and as
                  Custodian, Bear Stearns Asset Backed Securities I LLC, as
                  depositor and EMC Mortgage Corporation, as seller and as
                  master servicer relating to Bear Stearns Asset Backed
                  Securities I Trust 2005-HE2, Asset-Backed
                  CERTIFICATES, SERIES 2005-HE2
                  ----------------------------------------------------------

Ladies and Gentlemen:

                  In accordance with Section 2.3(b) of the above-captioned
Custodial Agreement, the undersigned, as Custodian, hereby certifies that it has
received and reviewed the documents described in its initial certification dated
February 28, 2005 and has determined that: all documents have been executed and
received and that such documents relate to the Mortgage Loans identified on the
Mortgage Loan Schedule, with any exceptions listed on Schedule A attached
hereto.

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement.

                                           LASALLE BANK NATIONAL ASSOCIATION

                                           By:__________________________________
                                           Name:________________________________
                                           Title:_______________________________

                                     J-2-1
<PAGE>

                                   SCHEDULE A

                             (PROVIDED UPON REQUEST)

                                     J-2-2
<PAGE>

                                  EXHIBIT THREE

                      FORM OF CUSTODIAN FINAL CERTIFICATION

                                                           [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Chicago, IL 60603

EMC Mortgage Corporation
909 Hidden Ridge Drive, Suite 200
Irving, Texas 75038

Attention: Bear Stearns Asset Backed Securities I LLC, Series 2005-HE2

         Re:      Custodial Agreement, dated as of February 28, 2005, by and
                  among LaSalle Bank National Association, as trustee and as
                  Custodian, Bear Stearns Asset Backed Securities I LLC, as
                  depositor and EMC Mortgage Corporation, as seller and as
                  master servicer relating to Bear Stearns Asset Backed
                  Securities I Trust 2005-HE2, Asset-Backed
                  CERTIFICATES, SERIES 2005-HE2
                  ----------------------------------------------------------

Ladies and Gentlemen:

                  In accordance with Section 2.3(c) of the above-captioned
Custodial Agreement, the undersigned, as Custodian, hereby certifies that it has
received and reviewed the documents described in its initial certification dated
February 28, 2005 and has determined that: all documents have been executed and
received and that such documents relate to the Mortgage Loans identified on the
Mortgage Loan Schedule, with any exceptions listed on Schedule A attached
hereto.

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Custodial Agreement.

                                           LASALLE BANK NATIONAL ASSOCIATION

                                           By:__________________________________
                                           Name:________________________________
                                           Title:_______________________________

                                     J-3-1

<PAGE>

                                   SCHEDULE A

                             (PROVIDED UPON REQUEST)

                                      J-3-2

<PAGE>

                                  EXHIBIT FOUR

              FORM OF REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT

To:      [Name/Address of Owner]

Attention:

         Re:      Custodial Agreement, dated as of February 28, 2005 (the
                  "Custodial Agreement"), by and among LaSalle Bank National
                  Association (the "Trustee") as trustee and as Custodian, Bear
                  Stearns Asset Backed Securities I LLC, as depositor and EMC
                  Mortgage Corporation, as seller and as master servicer
                  relating to Bear Stearns Asset Backed Securities I Trust
                  2005-HE2, Asset-Backed Certificates,
                  SERIES 2005-HE2
                  -------------------------------------------------------------

         In connection with the Mortgage Files that you hold pursuant to the
Custodial Agreement, we request the release, and acknowledge receipt of the
Mortgage file/[specify document] for the Mortgage Loan described below, the
reason indicated.

Mortgagor's Name, Address and Zip Code:

Mortgage Loan Number:

Reason for Requesting Documents:  (check one)

         _____ 1. Mortgage Loan paid in full. ([The Master Servicer] [A
Servicer] [the Trustee] hereby certifies that all amounts received in connection
therewith have been credited to

__________________________________________________________________________.)

         _____ 2.  Mortgage Loan in foreclosure.

         _____ 3. Repurchase. (The [Master Servicer] [Trustee] hereby certifies
that the repurchase price has been credited to
_____________________________________________.)

         _____ 4. Mortgage Loan liquidated by _________________________________.
([The Master Servicer] [A Servicer] [The Trustee] hereby certifies that all
proceeds of the

                                     J-4-1
<PAGE>

foreclosure, insurance, condemnation or other liquidation have
been finally received and credited to _____________________________________.

         _____ 5.  Other (explain):

                                     J-4-2
<PAGE>

                                  EXHIBIT FIVE

                       EELECTRONIC RELEASE REQUEST (Excel)
--------------------------------------------------------------------------------
Collateral Release Tasks
--------------------------------------------------------------------------------
Required Field Header              Description
--------------------------------------------------------------------------------
CUSTOMER                           Value can be constant of '1018'
--------------------------------------------------------------------------------
POOLNUM                            pool number if available, can be left blank
                                   as well
--------------------------------------------------------------------------------
LOANID                             EMC loan#, required field
--------------------------------------------------------------------------------
LOC_CODE                           Codes must be mutually agreed upon with
                                   custodian. Examples are PDPO= loans released
                                   for payoff, FORC = loans released for
                                   foreclosure, OLIQ= loans released for
                                   repurchase, NLIQ = loans released for
                                   non-liquidation/correction.
--------------------------------------------------------------------------------
REL_CODE                           Codes must be mutually agreed upon with
                                   custodian. Examples are 1 = payoff, 2 =
                                   foreclosure, 4 = repurchase, 5 =
                                   non-liquidation.
--------------------------------------------------------------------------------
REL_DOCLIST                        Can be left blank
--------------------------------------------------------------------------------
NOTATION                           "Name of Person File Being Released To @
                                   Company Name" (i.e. Sharon Ayers@EMC)
--------------------------------------------------------------------------------
REQSTR                             Can be left blank
--------------------------------------------------------------------------------
REQSTR_SIG                         Signatory code assigned to requestor, TBD
--------------------------------------------------------------------------------
AMEND                              0 = new release request, 1= amend an existing
                                   released record (ie. FORC to PDPO)
--------------------------------------------------------------------------------

                                     J-5-1

<PAGE>

                                    EXHIBIT K

             FORM OF BACK-UP CERTIFICATION TO FORM 10-K CERTIFICATE

         This certificate is being delivered pursuant to Section 3.16 of the
Pooling and Servicing Agreement, dated as of February 1, 2005 (the "Agreement"),
among Bear Stearns Asset Backed Securities I LLC, as depositor (the
"Depositor"), EMC Mortgage Corporation as seller (in that capacity, the
"Seller") and master servicer (in that capacity, the "Master Servicer") and
LaSalle Bank National Association as trustee (the "Trustee"). Capitalized terms
used herein and not otherwise defined have the meanings set forth in the
Agreement.

         I, [identify the certifying individual], on behalf of LaSalle Bank
National Association, as trustee (the "Trustee") certify that:

         1. I have reviewed the annual report on Form 10-K for the fiscal year
[___], and all reports on Form 8-K containing distribution or servicing reports
filed in respect of periods included in the year covered by that annual report,
of the trust (the "Trust") created pursuant to the Pooling and Servicing
Agreement, dated February 1, 2005 (the "P&S Agreement"); and

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

                                  Date:_______________________________________

                                  [Signature]
                                  Name:
                                  Title:

                                      K-1

<PAGE>

                                    EXHIBIT L

                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT
                    ----------------------------------------

                  MORTGAGE LOAN PURCHASE AGREEMENT, dated as of February 28,
2005, as amended and supplemented by any and all amendments hereto
(collectively, "THIS AGREEMENT"), by and between EMC MORTGAGE CORPORATION, a
Delaware corporation (the "MORTGAGE LOAN SELLER") and BEAR STEARNS ASSET BACKED
SECURITIES I LLC, a Delaware limited liability company (the "PURCHASER").

                  Upon the terms and subject to the conditions of this
Agreement, the Mortgage Loan Seller agrees to sell, and the Purchaser agrees to
purchase, certain conventional, closed-end, fixed rate and adjustable rate,
first and second lien mortgage loans secured by one- to four-family residences
(collectively, the "MORTGAGE Loans") as described herein. The Purchaser intends
to deposit the Mortgage Loans into a trust fund (the "TRUST Fund") and create
Bear Stearns Asset Backed Securities I Trust 2005-HE2, Asset-Backed
Certificates, Series 2005-HE2 (the "CERTIFICATES"), under a pooling and
servicing agreement, to be dated as of February 1, 2005 (the "POOLING AND
SERVICING AGREEMENT"), among the Purchaser, as depositor, the Mortgage Loan
Seller, as seller and master servicer (in that capacity, the "MASTER SERVICER")
and LaSalle Bank National Association, as trustee (the "TRUSTEE").

                  The Purchaser has filed with the Securities and Exchange
Commission (the "COMMISSION") a registration statement on Form S-3 (Number
333-113636) relating to its Mortgage Pass-Through Certificates and the offering
of certain series thereof (including certain classes of the Certificates) from
time to time in accordance with Rule 415 under the Securities Act of 1933, as
amended, and the rules and regulations of the Commission promulgated thereunder
(the "SECURITIES ACT"). Such registration statement, when it became effective
under the Securities Act, and the prospectus relating to the public offering of
certain classes of the Certificates by the Purchaser (the "PUBLIC OFFERING"), as
each may be amended or supplemented from time to time pursuant to the Securities
Act or otherwise, are referred to herein as the "REGISTRATION STATEMENT" and the
"PROSPECTUS," respectively. The "PROSPECTUS SUPPLEMENT" shall mean that
supplement, dated February [___], 2005, to the Prospectus, dated April 26, 2004,
relating to certain classes of the Certificates. With respect to the Public
Offering of certain classes of the Certificates, Bear, Stearns & Co. Inc. ("BEAR
STEARNS") and the Purchaser have entered into a terms agreement, dated as of
February [___], 2005, to an underwriting agreement, dated January 25, 2005
(together, the "UNDERWRITING AGREEMENT") between Bear Stearns and the Purchaser.

                  Now, therefore, in consideration of the premises and the
mutual agreements set forth herein, the parties hereto agree as follows:

                         SECTION 1. DEFINITIONS. Certain terms are defined
herein. Capitalized terms used herein but not defined herein shall have the
meanings specified in the Pooling and Servicing Agreement. The following other
terms are defined as follows:

                                       L-1

<PAGE>

                  ACQUISITION PRICE: Cash in an amount equal to $ * (plus $ * in
accrued interest) and the retained certificates.

                  BEAR STEARNS: Bear, Stearns & Co. Inc.

                  CLOSING DATE: February 28, 2005.

                  CUSTODIAL AGREEMENT: An agreement, dated as of February 28,
2005, among the Depositor, the Seller, the Master Servicer, the Trustee and the
Custodian.

                  CUT-OFF DATE: February 1, 2005.

                  CUT-OFF DATE BALANCE: Shall mean $648,849,412.18.

                  DELETED MORTGAGE LOAN: A Mortgage Loan replaced or to be
replaced by a Replacement Mortgage Loan.

                  DUE DATE: As to any Mortgage Loan, the date in each month on
which the related Scheduled Payment is due, as set forth in the related Mortgage
Note.

                  LASALLE: LaSalle Bank National Association, or its successors
in interest.

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

                  MERS(R) SYSTEM: The system of recording transfers of Mortgages
electronically maintained by MERS.

                  MOODY'S: Moody's Investors Service, Inc., or its successors in
interest.

                  MORTGAGE: The mortgage, deed of trust or other instrument
creating a first or second lien on or first or second priority ownership
interest in an estate in fee simple in real property securing a Mortgage Note.

                  MORTGAGE FILE: The items referred to in EXHIBIT 1 pertaining
to a particular Mortgage Loan and any additional documents required to be added
to such documents pursuant to this Agreement.

                  MORTGAGE RATE: The annual rate of interest borne by a Mortgage
Note as stated herein.

                  MORTGAGOR: The obligor(s) on a Mortgage Note.

                  NET MORTGAGE RATE: As to each Mortgage Loan, and at any time,
the per annum rate equal to the Mortgage Rate less the sum of (i) the Servicing
Fee Rate, (ii) the Trustee Fee Rate and (iii) the rate at which the LPMI Fee is
calculated, if any.

________________________
* Please contact Bear Stearns for pricing information.

                                       L-2
<PAGE>

                  OPINION OF COUNSEL: A written opinion of counsel, who may be
counsel for the Mortgage Loan Seller or the Purchaser, reasonably acceptable to
the Trustee.

                  PERSON: Any legal person, including any individual,
corporation, partnership, joint venture, association, joint stock company,
trust, unincorporated organization or government or any agency or political
subdivision thereof.

                  PURCHASE PRICE: With respect to any Mortgage Loan required to
be purchased by the Mortgage Loan Seller pursuant to the applicable provisions
of this Agreement, an amount equal to the sum of (i) 100% of the principal
remaining unpaid on such Mortgage Loan as of the date of purchase (including if
a foreclosure has already occurred, the principal balance of the related
Mortgage Loan at the time the Mortgaged Property was acquired), (ii) accrued and
unpaid interest thereon at the Mortgage Interest Rate through and including the
last day of the month of purchase and (iii) any costs and damages (if any)
incurred by the Trust in connection with any violation of such Mortgage Loan of
any anti-predatory lending laws.

                  RATING AGENCIES: Standard & Poor's and Moody's, each a "RATING
AGENCY."

                  REPLACEMENT MORTGAGE LOAN: A mortgage loan substituted for a
Deleted Mortgage Loan which must meet on the date of such substitution the
requirements stated herein and in the Pooling and Servicing Agreement; upon such
substitution, such mortgage loan shall be a "Mortgage Loan" hereunder.

                  SECURITIES ACT: The Securities Act of 1933, as amended.

                  STANDARD & POOR'S: Standard & Poor's, a division of The
McGraw-Hill Companies, Inc. or its successors in interest.

                  VALUE: The value of the Mortgaged Property at the time of
origination of the related Mortgage Loan, such value being the lesser of (i) the
value of such property set forth in an appraisal accepted by the applicable
originator of the Mortgage Loan or (ii) the sales price of such property at the
time of origination.

                         SECTION 2. PURCHASE AND SALE OF THE MORTGAGE LOANS AND
RELATED RIGHTS. (a) Upon satisfaction of the conditions set forth in Section 10
hereof, the Mortgage Loan Seller agrees to sell, and the Purchaser agrees to
purchase Mortgage Loans having an aggregate outstanding principal balance as of
the Cut-off Date equal to the Cut-off Date Balance.

                  (b) The closing for the purchase and sale of the Mortgage
Loans and the closing for the issuance of the Certificates will take place on
the Closing Date at the office of the Purchaser's counsel in New York, New York
or such other place as the parties shall agree.

                  (c) Upon the satisfaction of the conditions set forth in
Section 10 hereof, on the Closing Date, the Purchaser shall pay to the Mortgage
Loan Seller the Acquisition Price for the Mortgage Loans in immediately
available funds by wire transfer to such account or accounts as shall be
designated by the Mortgage Loan Seller.

                                      L-3
<PAGE>

                         SECTION 3. MORTGAGE LOAN SCHEDULES. The Mortgage Loan
Seller agrees to provide to the Purchaser as of the date hereof a preliminary
listing of the Mortgage Loans (the "PRELIMINARY MORTGAGE LOAN SCHEDULE") setting
forth the information listed on EXHIBIT 2 to this Agreement with respect to each
of the Mortgage Loans being sold by the Mortgage Loan Seller. If there are
changes to the Preliminary Mortgage Loan Schedule, the Mortgage Loan Seller
shall provide to the Purchaser as of the Closing Date a final schedule (the
"FINAL MORTGAGE LOAN Schedule") setting forth the information listed on EXHIBIT
2 to this Agreement with respect to each of the Mortgage Loans being sold by the
Mortgage Loan Seller to the Purchaser. The Final Mortgage Loan Schedule shall be
delivered to the Purchaser on the Closing Date, shall be attached to an
amendment to this Agreement to be executed on the Closing Date by the parties
hereto and shall be in form and substance mutually agreed to by the Mortgage
Loan Seller and the Purchaser (the "AMENDMENT"). If there are no changes to the
Preliminary Mortgage Loan Schedule, the Preliminary Mortgage Loan Schedule shall
be the Final Mortgage Loan Schedule for all purposes hereof.

                         SECTION 4. MORTGAGE LOAN TRANSFER.

                  (a) The Purchaser will be entitled to all scheduled payments
of principal and interest on the Mortgage Loans due after the Cut-off Date
(regardless of when actually collected) and all payments thereof. The Mortgage
Loan Seller will be entitled to all scheduled payments of principal and interest
on the Mortgage Loans due on or before the Cut-off Date (including payments
collected after the Cut-off Date) and all payments thereof. Such principal
amounts and any interest thereon belonging to the Mortgage Loan Seller as
described above will not be included in the aggregate outstanding principal
balance of the Mortgage Loans as of the Cut-off Date as set forth on the Final
Mortgage Loan Schedule.

                  (b) Pursuant to various conveyancing documents to be executed
on the Closing Date and pursuant to the Pooling and Servicing Agreement, the
Purchaser will assign on the Closing Date all of its right, title and interest
in and to the Mortgage Loans to the Trustee for the benefit of the
Certificateholders. In connection with the transfer and assignment of the
Mortgage Loans, the Mortgage Loan Seller has delivered or will deliver or cause
to be delivered to the Trustee, or the Custodian on behalf of the Trustee, by
the Closing Date or such later date as is agreed to by the Purchaser and the
Mortgage Loan Seller (each of the Closing Date and such later date is referred
to as a "MORTGAGE FILE DELIVERY DATE"), the items of the Custodian's Mortgage
File, PROVIDED, HOWEVER, that in lieu of the foregoing, the Mortgage Loan Seller
may deliver the following documents, under the circumstances set forth below:
(x) in lieu of the original Mortgage, assignments to the Trustee or intervening
assignments thereof which have been delivered, are being delivered or will upon
receipt of recording information relating to the Mortgage required to be
included thereon, be delivered to recording offices for recording and have not
been returned in time to permit their delivery as specified above, the Mortgage
Loan Seller may deliver a true copy thereof with a certification by the Mortgage
Loan Seller or the Master Servicer, on the face of such copy, substantially as
follows: "Certified to be a true and correct copy of the original, which has
been transmitted for recording;" (y) in lieu of the Mortgage, assignments to the
Trustee or intervening assignments thereof, if the applicable jurisdiction
retains the originals of such documents or if the originals are lost (in each
case, as evidenced by a certification from the Mortgage Loan Seller or the
Master Servicer to such

                                      L-4
<PAGE>

effect), the Mortgage Loan Seller may deliver photocopies of such documents
containing an original certification by the judicial or other governmental
authority of the jurisdiction where such documents were recorded; and (z) in
lieu of the Mortgage Notes relating to the Mortgage Loans, each identified in
the list delivered by the Purchaser to the Trustee on the Closing Date and
attached hereto as EXHIBIT 5 the Mortgage Loan Seller may deliver lost note
affidavits and indemnities of the Mortgage Loan Seller; and provided further,
however, that in the case of Mortgage Loans which have been prepaid in full
after the Cut-off Date and prior to the Closing Date, the Mortgage Loan Seller,
in lieu of delivering the above documents, may deliver to the Trustee a
certification by the Mortgage Loan Seller or the Master Servicer to such effect.
The Mortgage Loan Seller shall deliver such original documents (including any
original documents as to which certified copies had previously been delivered)
or such certified copies to the Trustee, or the Custodian on behalf of the
Trustee, promptly after they are received. The Mortgage Loan Seller shall cause
the Mortgage and intervening assignments, if any, and the assignment of the
Mortgage to be recorded not later than 180 days after the Closing Date unless
such assignment is not required to be recorded under the terms set forth in
Section 6(a) hereof.

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

                  (d) The Mortgage Loan Seller and the Purchaser acknowledge
hereunder that all of the Mortgage Loans will ultimately be assigned to LaSalle
Bank National Association, as Trustee for the benefit of the Certificateholders,
on the date hereof.

                         SECTION 5. EXAMINATION OF MORTGAGE FILES.

                  (a) On or before the Mortgage File Delivery Date, the Mortgage
Loan Seller will have made the Mortgage Files available to the Purchaser or its
agent for examination which may be at the offices of the Trustee or the Mortgage
Loan Seller and/or the Mortgage Loan Seller's custodian. The fact that the
Purchaser or its agent has conducted or has failed to conduct any partial or
complete examination of the Mortgage Files shall not affect the Purchaser's
rights to demand cure, repurchase, substitution or other relief as provided in
this Agreement. In furtherance of the foregoing, the Mortgage Loan Seller shall
make the Mortgage Files available to the Purchaser or its agent from time to
time so as to permit the Purchaser to confirm the Mortgage Loan Seller's
compliance with the delivery and recordation requirements of this

                                      L-5
<PAGE>

Agreement and the Pooling and Servicing Agreement. In addition, upon request of
the Purchaser, the Mortgage Loan Seller agrees to provide to the Purchaser, Bear
Stearns and to any investors or prospective investors in the Certificates
information regarding the Mortgage Loans and their servicing, to make the
Mortgage Files available to the Purchaser, Bear Stearns, and to such investors
or prospective investors (which may be at the offices of the Mortgage Loan
Seller and/or the Mortgage Loan Seller's custodian) and to make available
personnel knowledgeable about the Mortgage Loans for discussions with the
Purchaser, Bear Stearns and such investors or prospective investors, upon
reasonable request during regular business hours, sufficient to permit the
Purchaser, Bear Stearns and such investors or potential investors to conduct
such due diligence as any such party reasonably believes is appropriate.

                  (b) Pursuant to the Pooling and Servicing Agreement, on the
Closing Date the Trustee (or the Custodian as obligated under the Custodial
Agreement) for the benefit of the Certificateholders will review items of the
Mortgage Files as set forth on EXHIBIT 1 and will deliver to the Mortgage Loan
Seller an initial certification in the form attached as Exhibit One to the
Custodial Agreement.

                  (c) Within 90 days of the Closing Date, the Trustee or the
Custodian on its behalf shall, in accordance with the provisions of Section 2.02
of the Pooling and Servicing Agreement, deliver to the Mortgage Loan Seller and
the Trustee an Interim Certification in the form attached as Exhibit Two to the
Custodial Agreement to the effect that all such documents have been executed and
received and that such documents relate to the Mortgage Loans identified on the
Mortgage Loan Schedule, except for any exceptions listed on Schedule A attached
to such Interim Certification. The Custodian shall be under no duty or
obligation to inspect, review or examine said documents, instruments,
certificates or other papers to determine that the same 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.

                  (d) The Trustee or the Custodian on its behalf will review the
Mortgage Files within 180 days of the Closing Date and will deliver to the
Mortgage Loan Seller and the Master Servicer, and if reviewed by the Custodian,
the Trustee, a final certification substantially in the form of Exhibit Three to
the Custodial Agreement. If the Trustee or the Custodian on its behalf is unable
to deliver a final certification with respect to the items listed in EXHIBIT 1
due to any document that is missing, has not been executed, is unrelated,
determined on the basis of the Mortgagor name, original principal balance and
loan number, to the Mortgage Loans identified in the Final Mortgage Loan
Schedule (a "MATERIAL DEFECT"), the Trustee or the Custodian on its behalf shall
notify the Mortgage Loan Seller of such Material Defect. The Mortgage Loan
Seller shall correct or cure any such Material Defect within 90 days from the
date of notice from the Trustee, the Depositor or the Master Servicer of the
Material Defect and if the Mortgage Loan Seller does not correct or cure such
Material Defect within such period and such defect materially and adversely
affects the interests of the Certificateholders in the related Mortgage Loan,
the Mortgage Loan Seller will, in accordance with the terms of the Pooling and
Servicing Agreement, within 90 days of the date of notice, provide the Trustee
with a Replacement Mortgage Loan (if within two years of the Closing Date) or
purchase the related Mortgage Loan at the applicable Purchase Price; PROVIDED,
HOWEVER, that if such defect relates solely to the inability of the Mortgage
Loan Seller to deliver the original security instrument or intervening

                                      L-6
<PAGE>

assignments thereof, or a certified copy because the originals of such
documents, or a certified copy, have not been returned by the applicable
jurisdiction, the Mortgage Loan Seller shall not be required to purchase such
Mortgage Loan if the Mortgage Loan Seller delivers such original documents or
certified copy promptly upon receipt, but in no event later than 360 days after
the Closing Date. The foregoing repurchase obligation shall not apply in the
event that the Mortgage Loan Seller cannot deliver such original or copy of any
document submitted for recording to the appropriate recording office in the
applicable jurisdiction because such document has not been returned by such
office; provided that the Mortgage Loan Seller shall instead deliver a recording
receipt of such recording office or, if such receipt is not available, a
certificate of Mortgage Loan Seller or a Servicing Officer confirming that such
documents have been accepted for recording, and delivery to the Trustee shall be
effected by the Mortgage Loan Seller within thirty days of its receipt of the
original recorded document.

                  (e) At the time of any substitution, the Mortgage Loan Seller
shall deliver or cause to be delivered the Replacement Mortgage Loan, the
related Mortgage File and any other documents and payments required to be
delivered in connection with a substitution pursuant to the Pooling and
Servicing Agreement. At the time of any purchase or substitution, the Trustee
shall (i) assign the selected Mortgage Loan to the Mortgage Loan Seller and
shall release or cause the Custodian to release the documents (including, but
not limited to, the Mortgage, Mortgage Note and other contents of the Mortgage
File) in the possession of the Trustee or the Custodian, as applicable relating
to the Deleted Mortgage Loan and (ii) execute and deliver such instruments of
transfer or assignment, in each case without recourse, as shall be necessary to
vest in the Mortgage Loan Seller title to such Deleted Mortgage Loan.

                         SECTION 6. RECORDATION OF ASSIGNMENTS OF MORTGAGE.

                  (a) The Mortgage Loan Seller will, promptly after the Closing
Date, cause each Mortgage and each assignment of Mortgage from the Mortgage Loan
Seller to the Trustee, and all unrecorded intervening assignments, if any,
delivered on or prior to the Closing Date, to be recorded in all recording
offices in the jurisdictions where the related Mortgaged Properties are located;
PROVIDED, HOWEVER, the Mortgage Loan Seller need not cause to be recorded any
assignment which relates to a Mortgage Loan that is a MOM Loan or for which the
related Mortgaged Property is located in any jurisdiction under the laws of
which, as evidenced by an Opinion of Counsel delivered by the Mortgage Loan
Seller to the Trustee and the Rating Agencies, the recordation of such
assignment is not necessary to protect the Trustee's interest in the related
Mortgage Loan; PROVIDED, HOWEVER, notwithstanding the delivery of any Opinion of
Counsel, each assignment of Mortgage shall be submitted for recording by the
Mortgage Loan Seller in the manner described above, at no expense to the Trust
Fund or Trustee, upon the earliest to occur of (i) reasonable direction by the
Holders of Certificates evidencing Percentage Interests aggregating not less
than 25% of the Trust, (ii) the occurrence of an Event of Default, (iii) the
occurrence of a bankruptcy, insolvency or foreclosure relating to the Mortgage
Loan Seller under the Pooling and Servicing Agreement, (iv) the occurrence of a
servicing transfer or an assignment of the servicing as described in Section
7.07 of the Pooling and Servicing Agreement or (iv) with respect to any one
assignment of Mortgage, the occurrence of a bankruptcy, insolvency or
foreclosure relating to the Mortgagor under the related Mortgage.

                                      L-7
<PAGE>

                  While each such Mortgage or assignment is being recorded, if
necessary, the Mortgage Loan Seller shall leave or cause to be left with the
Trustee or the Custodian on its behalf a certified copy of such Mortgage or
assignment. In the event that, within 180 days of the Closing Date, the Trustee
has not been provided with an Opinion of Counsel as described above or received
evidence of recording with respect to each Mortgage Loan delivered to the
Purchaser pursuant to the terms hereof or as set forth above and the related
Mortgage Loan is not a MOM Loan, the failure to provide evidence of recording or
such Opinion of Counsel shall be considered a Material Defect, and the
provisions of Section 5(c) and (d) shall apply. All customary recording fees and
reasonable expenses relating to the recordation of the assignments of mortgage
to the Trustee or the Opinion of Counsel, as the case may be, shall be borne by
the Mortgage Loan Seller.

                  (b) It is the express intent of the parties hereto that the
conveyance of the Mortgage Loans by the Mortgage Loan Seller to the Purchaser,
as contemplated by this Agreement be, and be treated as, a sale. It is, further,
not the intention of the parties that such conveyance be deemed a pledge of the
Mortgage Loans by the Mortgage Loan Seller to the Purchaser to secure a debt or
other obligation of the Mortgage Loan Seller. However, in the event that,
notwithstanding the intent of the parties, the Mortgage Loans are held by a
court to continue to be property of the Mortgage Loan Seller, then (a) this
Agreement shall also be deemed to be a security agreement within the meaning of
Articles 8 and 9 of the applicable Uniform Commercial Code; (b) the transfer of
the Mortgage Loans provided for herein shall be deemed to be a grant by the
Mortgage Loan Seller to the Purchaser of a security interest in all of the
Mortgage Loan Seller's right, title and interest in and to the Mortgage Loans
and all amounts payable to the holders of the Mortgage Loans in accordance with
the terms thereof and all proceeds of the conversion, voluntary or involuntary,
of the foregoing into cash, instruments, securities or other property, to the
extent the Purchaser would otherwise be entitled to own such Mortgage Loans and
proceeds pursuant to Section 4 hereof, including all amounts, other than
investment earnings, from time to time held or invested in any accounts created
pursuant to the Pooling and Servicing Agreement, whether in the form of cash,
instruments, securities or other property; (c) the possession by the Purchaser
or the Trustee (or the Custodian on its behalf) 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" for
purposes of perfecting the security interest pursuant to Section 9-305 (or
comparable provision) of the applicable Uniform Commercial Code; 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 Purchaser for the
purpose of perfecting such security interest under applicable law. Any
assignment of the interest of the Purchaser pursuant to any provision hereof or
pursuant to the Pooling and Servicing Agreement shall also be deemed to be an
assignment of any security interest created hereby. The Mortgage Loan Seller and
the Purchaser shall, to the extent consistent with this Agreement, take such
actions as may be reasonably necessary to ensure that, if this Agreement were
deemed to create a security interest in the Mortgage Loans, 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 the
Pooling and Servicing Agreement.

                                      L-8
<PAGE>

                         SECTION 7. REPRESENTATIONS AND WARRANTIES OF MORTGAGE
LOAN SELLER CONCERNING THE MORTGAGE LOANS. The Mortgage Loan Seller hereby
represents and warrants to the Purchaser as of the Closing Date or such other
date as may be specified below with respect to each Mortgage Loan being sold by
it:

                  (a) The information set forth in the Mortgage Loan Schedule on
the Closing Date is complete, true and correct.

                  (b) All payments required to be made prior to the Cut-off Date
with respect to each Mortgage Loan have been made and no Mortgage Loan is
delinquent thirty one or more days; and the Mortgage Loan Seller has not
advanced funds, or induced, solicited or knowingly received any advance of funds
from a party other than the owner of the Mortgaged Property subject to the
Mortgage, directly or indirectly, for the payment of any amount required under
any Mortgage Loan.

                  (c) If any of the Mortgage Loans are secured by a leasehold
interest, with respect to each leasehold interest: the use of leasehold estates
for residential properties is an accepted practice in the area where the related
Mortgaged Property is located; residential property in such area consisting of
leasehold estates is readily marketable; the lease is recorded and no party is
in any way in breach of any provision of such lease; the leasehold is in full
force and effect and is not subject to any prior lien or encumbrance by which
the leasehold could be terminated or subject to any charge or penalty; and the
remaining term of the lease does not terminate less than ten years after the
maturity date of such Mortgage Loan.

                  (d) Except with respect to taxes, insurance and other amounts
previously advanced by a prior servicer with respect to any Mortgage Loan, there
are no delinquent taxes, water charges, sewer rents, assessments, insurance
premiums, leasehold payments, including assessments payable in future
installments, or other outstanding charges affecting the related Mortgaged
Property.

                  (e) The terms of the Mortgage Note and the Mortgage have not
been impaired, waived, altered or modified in any respect, except by written
instruments which in the case of the Mortgage Loans are in the Mortgage File and
have been or will be recorded, if necessary to protect the interests of the
Trustee, and which have been or will be delivered to the Trustee, all in
accordance with this Agreement. The substance of any such waiver, alteration or
modification has been approved by the title insurer, to the extent required by
the related policy. No Mortgagor has been released, in whole or in part, except
in connection with an assumption agreement approved by the title insurer, to the
extent required by the policy, and which assumption agreement in the case of the
Mortgage Loans is part of the Mortgage File.

                  (f) The Mortgage Note and the Mortgage are not subject to any
right of rescission, set-off, counterclaim or defense, including the defense of
usury, nor will the operation of any of the terms of the Mortgage Note and the
Mortgage, or the exercise of any right thereunder, render the Mortgage
unenforceable, in whole or in part, or subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury and no such
right of rescission, set-off, counterclaim or defense has been asserted with
respect thereto.

                                      L-9
<PAGE>

                  (g) All buildings upon, or comprising part of, the Mortgaged
Property are insured by an insurer acceptable to Fannie Mae and Freddie Mac
against loss by fire, hazards of extended coverage and such other hazards as are
customary in the area where the Mortgaged Property is located, and such insurer
is licensed to do business in the state where the Mortgaged Property is located.
All such insurance policies contain a standard mortgagee clause naming the
originator, its successors and assigns as mortgagee and Mortgage Loan Seller has
received no notice that all premiums thereon have not been paid. If upon
origination of the Mortgage Loan, the Mortgaged Property was, or was
subsequently deemed to be, in an area identified in the Federal Register by the
Federal Emergency Management Agency as having special flood hazards (and such
flood insurance has been made available), which require under applicable law
that a flood insurance policy meeting the requirements of the current guidelines
of the Federal Insurance Administration (or any successor thereto) be obtained,
such flood insurance policy is in effect which policy is with a generally
acceptable carrier in an amount representing coverage not less than the least of
(A) the Stated Principal Balance of the related Mortgage Loan, (B) the minimum
amount required to compensate for damage or loss on a replacement cost basis, or
(C) the maximum amount of insurance that is available under the Flood Disaster
Protection Act of 1973. The Mortgage obligates the Mortgagor thereunder to
maintain all such insurance at Mortgagor's cost and expense and, on the
Mortgagor's failure to do so, authorizes the holder of the Mortgage to maintain
such insurance at Mortgagor's cost and expense and to obtain reimbursement
therefor from the Mortgagor.

                  (h) Each loan at the time it was made complied in all material
respects with applicable local, state, and federal laws, including, but not
limited to, all applicable anti-predatory and abusive lending laws.

                  (i) The Mortgage has not been satisfied, canceled,
subordinated, or rescinded, in whole or in part, and the Mortgaged Property has
not been released from the lien of the Mortgage, in whole or in part, nor has
any instrument been executed that would effect any such release, cancellation,
subordination or rescission.

                  (j) The Mortgage is a valid, existing and enforceable first or
second lien on the Mortgaged Property, including all improvements on the
Mortgaged Property, if any, subject only to (1) the lien of current real
property taxes and assessments not yet due and payable, (2) covenants,
conditions and restrictions, rights of way, easements and other matters of the
public record as of the date of recording being acceptable to mortgage lending
institutions generally and specifically referred to in the lender's title
insurance policy delivered to the originator of the Mortgage Loan and which do
not adversely affect the Appraised Value of the Mortgaged Property and (3) other
matters to which like properties are commonly subject which do not materially
interfere with the benefits of the security intended to be provided by the
Mortgage. The Mortgage Loan Seller has full right to sell and assign the
Mortgage to the Purchaser.

                  (k) The Mortgage Note and the related Mortgage are genuine and
each is the legal, valid and binding obligation of the maker thereof,
enforceable in accordance with its terms, except as the enforceability thereof
may be limited by bankruptcy, insolvency or reorganization or general principles
of equity.

                                      L-10
<PAGE>

                  (l) All parties to the Mortgage Note and the Mortgage had the
legal capacity to enter into the Mortgage Loan transaction and to execute and
deliver the Mortgage Note and the Mortgage, and the Mortgage Note and the
Mortgage have been duly and properly executed by such parties.

                  (m) The proceeds of the Mortgage Loan have been fully
disbursed and there is no requirement for future advances thereunder and any and
all requirements as to completion of any on-site or off-site improvement and as
to disbursements of any escrow funds therefor have been complied with. All
costs, fees and expenses incurred in making or closing the Mortgage Loan and the
recording of the Mortgage were paid, and the Mortgagor is not entitled to any
refund of any amounts paid or due under the Mortgage Note or Mortgage.

                  (n) Immediately prior to the conveyance of the Mortgage Loans
by the Mortgage Loan Seller to the Purchaser hereunder, the Mortgage Loan Seller
was the sole owner and holder of the Mortgage Loan; the related Originator or
the Mortgage Loan Seller was the custodian of the related escrow account, if
applicable; the Mortgage Loan had neither been assigned nor pledged, and the
Mortgage Loan Seller had good and marketable title thereto, and had full right
to transfer and sell the Mortgage Loan and the related servicing rights to the
Purchaser free and clear of any encumbrance, equity, lien, pledge, charge, claim
or security interest subject to the applicable servicing agreement and had full
right and authority subject to no interest or participation of, or agreement
with, any other party, to sell and assign the Mortgage Loan and the related
servicing rights, subject to the applicable servicing agreement, to the
Purchaser pursuant to the terms of this Agreement.

                  (o) All parties which have had any interest in the Mortgage,
whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period
in which they held and disposed of such interest, were) (1) in compliance with
any and all applicable licensing requirements of the laws of the state wherein
the Mortgaged Property is located, and (2) organized under the laws of such
state, qualified to do business in such state, a federal savings and loan
association or national bank having principal offices in such state or not
deemed to be doing business in such state under applicable law.

                  (p) The Mortgage Loan is covered by an ALTA lender's title
insurance policy or equivalent form acceptable to the Department of Housing and
Urban Development, or any successor thereto, and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to the
exceptions contained in clause (i) above) the Mortgage Loan Seller (as
assignee), its successors and assigns as to the first priority lien of the
Mortgage in the original principal amount of the Mortgage Loan. Additionally,
such lender's title insurance policy affirmatively insures ingress and egress,
and against encroachments by or upon the Mortgaged Property or any interest
therein. With respect to each Mortgage Loan, the Mortgage Loan Seller (as
assignee) is the sole insured of such lender's title insurance policy, and such
lender's title insurance policy is in full force and effect. No claims have been
made under such lender's title insurance policy, and no prior holder of the
related Mortgage, including the Mortgage Loan Seller, has done, by act or
omission, anything which would impair the coverage of such lender's title
insurance policy.

                                      L-11
<PAGE>

                  (q) Except as provided in clause (b), immediately prior to the
Cut-off Date, there was no default, breach, violation or event of acceleration
existing under the Mortgage or the Mortgage Note and there was no event which,
with the passage of time or with notice and the expiration of any grace or cure
period, would constitute a default, breach, violation or event of acceleration,
and the Mortgage Loan Seller has not waived any default, breach, violation or
event of acceleration.

                  (r) There are no mechanics' or similar liens or claims which
have been filed for work, labor or material (and no rights are outstanding that
under law could give rise to such lien) affecting the related Mortgaged Property
which are or may be liens prior to or equal with, the lien of the related
Mortgage.

                  (s) At the time of origination, each Mortgaged Property was
the subject of an appraisal which conformed to the underwriting requirements of
the originator of the Mortgage Loan and, the appraisal is in a form acceptable
to Fannie Mae or FHLMC.

                  (t) The origination, servicing and collection practices with
respect to each Mortgage Note and Mortgage including, the establishment,
maintenance and servicing of the escrow accounts and escrow payments, if any,
since origination, have been conducted in all respects in accordance with the
terms of Mortgage Note and in compliance with all applicable laws and
regulations and, unless otherwise required by law or Fannie Mae/Freddie Mac
standards, in accordance with the proper, prudent and customary practices in the
mortgage origination and servicing business. With respect to the escrow accounts
and escrow payments, if any, and a Mortgage Loan all such payments are in the
possession or under the control of the Mortgage Loan Seller (including pursuant
to a Subservicing Agreement) and there exists no deficiencies in connection
therewith for which customary arrangements for repayment thereof have not been
made. Any interest required to be paid pursuant to state and local law has been
properly paid and credited.

                  (u) The Mortgaged Property is free of material damage and
waste and there is no proceeding pending for the total or partial condemnation
thereof.

                  (v) The Mortgage contains customary and enforceable provisions
to render the rights and remedies of the holder thereof adequate for the
realization against the Mortgaged Property of the benefits of the security
intended to be provided thereby, including, (1) in the case of a Mortgage
designated as a deed of trust, by trustee's sale, and (2) otherwise by judicial
foreclosure. There is no other exemption available to the Mortgagor which would
interfere with the right to sell the Mortgaged Property at a trustee's sale or
the right to foreclose the Mortgage. The Mortgagor has not notified the Mortgage
Loan Seller and the Mortgage Loan Seller has no knowledge of any relief
requested or allowed to the Mortgagor under the Servicemembers Civil Relief Act.

                  (w) The Mortgage Note is not and has not been secured by any
collateral except the lien of the applicable Mortgage.

                  (x) In the event the Mortgage constitutes a deed of trust, a
trustee, duly qualified under applicable law to serve as such, has been properly
designated and currently so

                                      L-12
<PAGE>

serves and is named in the Mortgage, and no fees or expenses are or will become
payable by the Certificateholders to the trustee under the deed of trust, except
in connection with a trustee's sale after default by the Mortgagor.

                  (y) No Mortgage Loan contains a permanent or temporary
"buydown" provision. The Mortgage Loan is not a graduated payment mortgage loan.

                  (z) The Mortgagor has received all disclosure materials
required by applicable law with respect to the making of the Mortgage Loan.

                  (aa) No Mortgage Loan was made in connection with the
construction or rehabilitation of a Mortgaged Property.

                  (bb) To the best of Mortgage Loan Seller's knowledge, the
Mortgaged Property is lawfully occupied under applicable law and all
inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect to
the use and occupancy of the same, including but not limited to certificates of
occupancy, have been made or obtained from the appropriate authorities.

                  (cc) The assignment of Mortgage with respect to a Mortgage
Loan is in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located.

                  (dd) The Mortgaged Property consists of a single parcel of
real property with or without a detached single family residence erected
thereon, or an individual condominium unit, or a 2-4 family dwelling, or an
individual unit in a planned unit development as defined by Fannie Mae or a
townhouse, each structure of which is permanently affixed to the Mortgaged
Property, and is legally classified as real estate.

                  (ee) Each Mortgage Loan at the time of origination was
underwritten in general in accordance with guidelines not inconsistent with the
guidelines set forth in the Prospectus Supplement and generally accepted credit
underwriting guidelines.

                  (ff) No error, omission, misrepresentation, fraud or similar
occurrence with respect to a Mortgage Loan has taken place on the part of the
Mortgage Loan Seller or the related Originator.

                  (gg) None of the Mortgage Loans are (a) loans subject to 12
CFR Part 226.31, 12 CFR Part 226.32 or 12 CFR Part 226.34 of Regulation Z, the
regulation implementing TILA, which implements the Home Ownership and Equity
Protection Act of 1994 ("HOEPA") or (b) classified and/or defined as a "high
cost home loan" (or a similarly classified loan using different terminology
under a law imposing heightened regulatory scrutiny or additional legal
liability for residential mortgage loans having high interest rates, points
and/or fees) under any federal, state, or local law, including, but not limited
to, the States of Georgia or North Carolina.

                  (hh) None of the Mortgage Loans originated on or after October
1, 2002 and before March 7, 2003 was secured by property located in the State of
Georgia.

                                      L-13
<PAGE>

                  (ii) None of the Mortgage Loans that are secured by property
located in the State of Illinois are in violation of the provisions of the
Illinois Interest Act.

                  (jj) None of the Mortgage Loans contains provisions pursuant
to which monthly payments are (a) paid or partially paid with funds deposited in
any separate account established by the Mortgage Loan Seller, the mortgagor, or
anyone on behalf of the mortgagor, (b) paid by any source other than the
mortgagor or (c) contains any other similar provisions which may constitute a
"buydown" provision. None of the Mortgage Loans is a graduated payment mortgage
loan and no Mortgage Loan has a shared appreciation or other contingent interest
feature;

                  (kk) Each Mortgage Loan that contains a provision for the
assumption substitution of liability, pursuant to which the original mortgagor
is released from liability and another person is substituted as the mortgagor
and becomes liable under the Mortgage Note, shall be effective only if such
person satisfies the then current underwriting practices and procedures of
prudent mortgage lenders in a state in which the mortgaged property is located.

                  (ll) The Mortgaged Property and all improvements thereon
comply with all requirements of any applicable zoning and subdivision laws and
ordinances.

                  (mm) Each Mortgage is a valid and enforceable first or second
lien, as applicable on the property securing the related Mortgage Note and each
Mortgaged Property is owned by the Mortgagor in fee simple (except with respect
to common areas in the case of condominiums, PUDs and de minimis PUDs) or by
leasehold for a term longer than the term of the related Mortgage, subject only
to (i) the lien of current real property taxes and assessments, (ii) covenants,
conditions and restrictions, rights of way, easements and other matters of
public record as of the date of recording of such Mortgage, such exceptions
being acceptable to mortgage lending institutions generally or specifically
reflected in the appraisal obtained in connection with the origination of the
related Mortgage Loan or referred to in the lender's title insurance policy
delivered to the originator of the related Mortgage Loan and (iii) other matters
to which like properties are commonly subject which do not materially interfere
with the benefits of the security intended to be provided by such Mortgage
Appraisal Form 1004 or Form 2055 with an interior inspection for first lien
Mortgage Loans has been obtained. Form 704, 2065 or 2055 with an exterior only
inspection for junior lien Mortgage Loans has been obtained.

                  (nn) Each Group II Mortgage Loan is a "qualified mortgage"
under Section 860G(a)(3) of the Code.

                  (oo) With respect to any mortgage loans in Loan Group II
originated on or after August 1, 2004, neither the related mortgage nor the
related mortgage note requires the borrower to submit to arbitration to resolve
any dispute arising out of or relating in any way to the mortgage loan
transaction;

                  (pp) None of the Group II Loans originated before October 1,
2002 imposes a Prepayment Charge for a term exceeding five years; none of the
Group II Loans originated on or after October 1, 2002 imposes a Prepayment
Charge for a term exceeding three years.

                                      L-14
<PAGE>

                  (qq) With respect to each Group II mortgage loan, no borrower
obtained a prepaid single-premium credit-life, credit disability, credit
unemployment or credit property insurance policy in connection with the
origination of the mortgage loan.

                  (rr) The conforming one- to four-family mortgage loans in Loan
Group II, which may include the balance of any subordinated lien, each have an
original principal balance that does not exceed Freddie Mac's dollar amount
limits.

                  (ss) Each Prepayment Charge is enforceable and was originated
in compliance with all applicable federal, state and local laws.

                  (tt) With respect to any Mortgage Loan that contains a
provision permitting imposition of a premium upon a prepayment prior to
maturity, the prepayment premium is disclosed to the borrower in the loan
documents pursuant to applicable state and federal law.

                  (uu) No Mortgage Loan is a High Cost Loan or Covered Loan, as
applicable (as such terms are defined in Appendix E of the Standard & Poor's
Glossary For File Format For LEVELS(R) Version 5.6 Revised attached hereto as
EXHIBIT 6).

                  It is understood and agreed that the representations and
warranties set forth in this Section 7 will inure to the benefit of the
Purchaser, its successors and assigns, notwithstanding any restrictive or
qualified endorsement on any Mortgage Note or assignment of Mortgage or the
examination of any Mortgage File. Upon any substitution for a Mortgage Loan, the
representations and warranties set forth above shall be deemed to be made by the
Mortgage Loan Seller as to any Replacement Mortgage Loan as of the date of
substitution.

                  Upon discovery or receipt of notice by the Mortgage Loan
Seller, the Purchaser or the Trustee of a breach of any representation or
warranty of the Mortgage Loan Seller set forth in this Section 7 which
materially and adversely affects the value of the interests of the Purchaser,
the Certificateholders or the Trustee in any of the Mortgage Loans delivered to
the Purchaser pursuant to this Agreement, the party discovering or receiving
notice of such breach shall give prompt written notice to the others. It is
understood and agreed that a breach of any one of the representations contained
in clauses (gg), (hh) and (nn) through (rr) above in respect of a Group II Loan
will be deemed to materially adversely affect the interests of the related
Certificateholders. In the case of any such breach of a representation or
warranty set forth in this Section 7, within 90 days from the date of discovery
by the Mortgage Loan Seller, or the date the Mortgage Loan Seller is notified by
the party discovering or receiving notice of such breach (whichever occurs
earlier), the Mortgage Loan Seller will (i) cure such breach in all material
respects, (ii) purchase the affected Mortgage Loan at the applicable Purchase
Price or (iii) if within two years of the Closing Date, substitute a qualifying
Replacement Mortgage Loan in exchange for such Mortgage Loan; provided that, (A)
in the case of a breach of the representation and warranty concerning the
Mortgage Loan Schedule contained in clause (a) of this Section 7, if such breach
is material and relates to any field on the Mortgage Loan Schedule which
identifies any Prepayment Charge or (B) in the case of a breach of the
representation contained in clause (ss) of this Section 7, then, in each case,
in lieu of purchasing such Mortgage Loan from the Trust Fund at the Purchase
Price, the Mortgage Loan Seller shall pay the amount of the Prepayment Charge
(net of any amount previously collected by or paid to the Trust Fund

                                      L-15
<PAGE>

in respect of such Prepayment Charge) from its own funds and without
reimbursement therefor, and the Mortgage Loan Seller shall have no obligation to
repurchase or substitute for such Mortgage Loan. The obligations of the Mortgage
Loan Seller to cure, purchase or substitute a qualifying Replacement Mortgage
Loan shall constitute the Purchaser's, the Trustee's and the Certificateholder's
sole and exclusive remedy under this Agreement or otherwise respecting a breach
of representations or warranties hereunder with respect to the Mortgage Loans,
except for the obligation of the Mortgage Loan Seller to indemnify the Purchaser
for such breach as set forth in and limited by Section 13 hereof.

                  Any cause of action against the Mortgage Loan Seller or
relating to or arising out of a breach by the Mortgage Loan Seller of any
representations and warranties made in this Section 7 shall accrue as to any
Mortgage Loan upon (i) discovery of such breach by the Mortgage Loan Seller or
notice thereof by the party discovering such breach and (ii) failure by the
Mortgage Loan Seller to cure such breach, purchase such Mortgage Loan or
substitute a qualifying Replacement Mortgage Loan pursuant to the terms hereof.

                         SECTION 8. REPRESENTATIONS AND WARRANTIES CONCERNING
THE MORTGAGE LOAN SELLER. As of the date hereof and as of the Closing Date, the
Mortgage Loan Seller represents and warrants to the Purchaser as to itself in
the capacity indicated as follows:

                  (a) the Mortgage Loan Seller (i) is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware and (ii) is qualified and in good standing to do business in each
jurisdiction where such qualification is necessary, except where the failure so
to qualify would not reasonably be expected to have a material adverse effect on
the Mortgage Loan Seller's business as presently conducted or on the Mortgage
Loan Seller's ability to enter into this Agreement and to consummate the
transactions contemplated hereby;

                  (b) the Mortgage Loan Seller has full power to own its
property, to carry on its business as presently conducted and to enter into and
perform its obligations under this Agreement;

                  (c) the execution and delivery by the Mortgage Loan Seller of
this Agreement has been duly authorized by all necessary action on the part of
the Mortgage Loan Seller; and neither the execution and delivery of this
Agreement, nor the consummation of the transactions herein contemplated, nor
compliance with the provisions hereof or thereof, will conflict with or result
in a breach of, or constitute a default under, any of the provisions of any law,
governmental rule, regulation, judgment, decree or order binding on the Mortgage
Loan Seller or its properties or the charter or by-laws of the Mortgage Loan
Seller, except those conflicts, breaches or defaults which would not reasonably
be expected to have a material adverse effect on the Mortgage Loan Seller's
ability to enter into this Agreement and to consummate the transactions
contemplated hereby;

                  (d) the execution, delivery and performance by the Mortgage
Loan Seller of this Agreement and the consummation of the transactions
contemplated hereby do not require the consent or approval of, the giving of
notice to, the registration with, or the taking of any other action in respect
of, any state, federal or other governmental authority or agency, except those

                                      L-16
<PAGE>

consents, approvals, notices, registrations or other actions as have already
been obtained, given or made and, in connection with the recordation of the
Mortgages, powers of attorney or assignments of Mortgages not yet completed;

                  (e) this Agreement has been duly executed and delivered by the
Mortgage Loan Seller and, assuming due authorization, execution and delivery by
the Purchaser or the parties thereto, constitutes a valid and binding obligation
of the Mortgage Loan Seller enforceable against it in accordance with its terms
(subject to applicable bankruptcy and insolvency laws and other similar laws
affecting the enforcement of the rights of creditors generally);

                  (f) there are no actions, suits or proceedings pending or, to
the knowledge of the Mortgage Loan Seller, threatened against the Mortgage Loan
Seller, before or by any court, administrative agency, arbitrator or
governmental body (i) with respect to any of the transactions contemplated by
this Agreement or (ii) with respect to any other matter which in the judgment of
the Mortgage Loan Seller could reasonably be expected to be determined adversely
to the Mortgage Loan Seller and if determined adversely to the Mortgage Loan
Seller materially and adversely affect the Mortgage Loan Seller's ability to
perform its obligations under this Agreement; and the Mortgage Loan Seller is
not in default with respect to any order of any court, administrative agency,
arbitrator or governmental body so as to materially and adversely affect the
transactions contemplated by this Agreement; and

                  (g) the Mortgage Loan Seller's Information (as defined in
Section 13(a) hereof) does not include any untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements made,
in light of the circumstances under which they were made, not misleading.

                         SECTION 9. REPRESENTATIONS AND WARRANTIES CONCERNING
THE PURCHASER. As of the date hereof and as of the Closing Date, the Purchaser
represents and warrants to the Mortgage Loan Seller as follows:

                  (a) the Purchaser (i) is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Delaware and (ii) is qualified and in good standing to do business in each
jurisdiction where such qualification is necessary, except where the failure so
to qualify would not reasonably be expected to have a material adverse effect on
the Purchaser's business as presently conducted or on the Purchaser's ability to
enter into this Agreement and to consummate the transactions contemplated
hereby;

                  (b) the Purchaser has full power to own its property, to carry
on its business as presently conducted and to enter into and perform its
obligations under this Agreement;

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

                                      L-17
<PAGE>

formation or limited liability company agreement of the Purchaser, except those
conflicts, breaches or defaults which would not reasonably be expected to have a
material adverse effect on the Purchaser's ability to enter into this Agreement
and to consummate the transactions contemplated hereby;

                  (d) the execution, delivery and performance by the Purchaser
of this Agreement and the consummation of the transactions contemplated hereby
do not require the consent or approval of, the giving of notice to, the
registration with, or the taking of any other action in respect of, any state,
federal or other governmental authority or agency, except those consents,
approvals, notices, registrations or other actions as have already been
obtained, given or made;

                  (e) this Agreement has been duly executed and delivered by the
Purchaser and, assuming due authorization, execution and delivery by the
Mortgage Loan Seller, constitutes a valid and binding obligation of the
Purchaser enforceable against it in accordance with its terms (subject to
applicable bankruptcy and insolvency laws and other similar laws affecting the
enforcement of the rights of creditors generally);

                  (f) there are no actions, suits or proceedings pending or, to
the knowledge of the Purchaser, threatened against the Purchaser, before or by
any court, administrative agency, arbitrator or governmental body (i) with
respect to any of the transactions contemplated by this Agreement or (ii) with
respect to any other matter which in the judgment of the Purchaser could
reasonably be expected to be determined adversely to the Purchaser and if
determined adversely to the Purchaser materially and adversely affect the
Purchaser's ability to perform its obligations under this Agreement; and the
Purchaser is not in default with respect to any order of any court,
administrative agency, arbitrator or governmental body so as to materially and
adversely affect the transactions contemplated by this Agreement; and

                  (g) the Purchaser's Information (as defined in Section 13(b)
hereof) does not include any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements made, in light
of the circumstances under which they were made, not misleading.

                         SECTION 10. CONDITIONS TO CLOSING.

                  (a) The obligations of the Purchaser under this Agreement will
be subject to the satisfaction, on or prior to the Closing Date, of the
following conditions:

                              (1) Each of the obligations of the Mortgage Loan
Seller required to be performed at or prior to the Closing Date pursuant to the
terms of this Agreement shall have been duly performed and complied with in all
material respects; all of the representations and warranties of the Mortgage
Loan Seller under this Agreement shall be true and correct as of the date or
dates specified in all material respects; and no event shall have occurred
which, with notice or the passage of time, would constitute a default under this
Agreement or the Pooling and Servicing Agreement; and the Purchaser shall have
received certificates to that effect signed by authorized officers of the
Mortgage Loan Seller.

                                      L-18
<PAGE>

                              (2) The Purchaser shall have received all of the
following closing documents, in such forms as are agreed upon and reasonably
acceptable to the Purchaser, duly executed by all signatories other than the
Purchaser as required pursuant to the respective terms thereof:

                                    (i) If required pursuant to Section 3
hereof, the Amendment dated as of the Closing Date and any documents referred to
therein;

                                    (ii) If required pursuant to Section 3
hereof, the Final Mortgage Loan Schedule containing the information set forth on
EXHIBIT 2 hereto, one copy to be attached to each counterpart of the Amendment;

                                    (iii) The Pooling and Servicing Agreement,
in form and substance reasonably satisfactory to the Trustee and the Purchaser,
and all documents required thereby duly executed by all signatories;

                                    (iv) A certificate of an officer of the
Mortgage Loan Seller dated as of the Closing Date, in a form reasonably
acceptable to the Purchaser, and attached thereto the resolutions of the
Mortgage Loan Seller authorizing the transactions contemplated by this
Agreement, together with copies of the articles of incorporation, by-laws and
certificate of good standing of the Mortgage Loan Seller;

                                    (v) One or more opinions of counsel from the
Mortgage Loan Seller's counsel otherwise in form and substance reasonably
satisfactory to the Purchaser, the Trustee and each Rating Agency;

                                    (vi) A letter from each of the Rating
Agencies giving each Class of Certificates set forth on Schedule A hereto the
rating set forth therein; and

                                    (vii) Such other documents, certificates
(including additional representations and warranties) and opinions as may be
reasonably necessary to secure the intended ratings from each Rating Agency for
the Certificates.

                              (3) The Certificates to be sold to Bear Stearns
pursuant to the Underwriting Agreement and the Purchase Agreement shall have
been issued and sold to Bear Stearns.

                              (4) The Mortgage Loan Seller shall have furnished
to the Purchaser such other certificates of its officers or others and such
other documents and opinions of counsel to evidence fulfillment of the
conditions set forth in this Agreement and the transactions contemplated hereby
as the Purchaser and its counsel may reasonably request.

                  (b) The obligations of the Mortgage Loan Seller under this
Agreement shall be subject to the satisfaction, on or prior to the Closing Date,
of the following conditions:

                              (1) The obligations of the Purchaser required to
be performed by it on or prior to the Closing Date pursuant to the terms of this
Agreement shall have been duly

                                      L-19
<PAGE>

performed and complied with in all material respects, and all of the
representations and warranties of the Purchaser under this Agreement shall be
true and correct in all material respects as of the date hereof and as of the
Closing Date, and no event shall have occurred which would constitute a breach
by it of the terms of this Agreement or the Pooling and Servicing Agreement, and
the Mortgage Loan Seller shall have received a certificate to that effect signed
by an authorized officer of the Purchaser.

                              (2) The Mortgage Loan Seller shall have received
copies of all of the following closing documents, in such forms as are agreed
upon and reasonably acceptable to the Mortgage Loan Seller, duly executed by all
signatories other than the Mortgage Loan Seller as required pursuant to the
respective terms thereof:

                                    (i) If required pursuant to Section 3
hereof, the Amendment dated as of the Closing Date and any documents referred to
therein;

                                    (ii) The Pooling and Servicing Agreement, in
form and substance reasonably satisfactory to the Mortgage Loan Seller and the
Trustee, and all documents required thereby duly executed by all signatories;

                                    (iii) A certificate of an officer of the
Purchaser dated as of the Closing Date, in a form reasonably acceptable to the
Mortgage Loan Seller, and attached thereto the written consent of the member of
the Purchaser authorizing the transactions contemplated by this Agreement and
the Pooling and Servicing Agreement, together with copies of the Purchaser's
certificate of formation, limited liability company agreement and evidence as to
the good standing of the Purchaser dated as of a recent date;

                                    (iv) One or more opinions of counsel from
the Purchaser's counsel in form and substance reasonably satisfactory to the
Mortgage Loan Seller, the Trustee and the Rating Agencies; and

                                    (v) Such other documents, certificates
(including additional representations and warranties) and opinions as may be
reasonably necessary to secure the intended rating from each Rating Agency for
the Certificates.

                         SECTION 11. FEES AND EXPENSES. Subject to Section 16
hereof, the Mortgage Loan Seller shall pay on the Closing Date or such later
date as may be agreed to by the Purchaser (i) the fees and expenses of the
Mortgage Loan Seller's attorneys and the reasonable fees and expenses of the
Purchaser's attorneys, (ii) the fees and expenses of Deloitte & Touche LLP,
(iii) the fee for the use of Purchaser's Registration Statement based on the
aggregate original principal amount of the Certificates and the filing fee of
the Commission as in effect on the date on which the Registration Statement was
declared effective, (iv) the fees and expenses including counsel's fees and
expenses in connection with any "blue sky" and legal investment matters, (v) the
fees and expenses of the Trustee which shall include without limitation the fees
and expenses of the Trustee (and the fees and disbursements of its counsel) with
respect to (A) legal and document review of this Agreement, the Pooling and
Servicing Agreement, the Certificates and related agreements, (B) attendance at
the Closing and (C) review of the Mortgage Loans to be performed by the Trustee
or the Custodian on its behalf, (vi) the expenses

                                      L-20
<PAGE>

for printing or otherwise reproducing the Certificates, the Prospectus and the
Prospectus Supplement, (vii) the fees and expenses of each Rating Agency (both
initial and ongoing), (viii) the fees and expenses relating to the preparation
and recordation of mortgage assignments (including intervening assignments, if
any and if available, to evidence a complete chain of title from the originator
to the Trustee) from the Mortgage Loan Seller to the Trustee or the expenses
relating to the Opinion of Counsel referred to in Section 6(a) hereof, as the
case may be and (ix) Mortgage File due diligence expenses and other
out-of-pocket expenses incurred by the Purchaser in connection with the purchase
of the Mortgage Loans and by Bear Stearns in connection with the sale of the
Certificates. The Mortgage Loan Seller additionally agrees to pay directly to
any third party on a timely basis the fees provided for above which are charged
by such third party and which are billed periodically.

                         SECTION 12. ACCOUNTANTS' LETTERS.

                  (a) Deloitte & Touche LLP will review the characteristics of a
sample of the Mortgage Loans described in the Final Mortgage Loan Schedule and
will compare those characteristics to the description of the Mortgage Loans
contained in the Prospectus Supplement under the captions "Summary--The Mortgage
Loans" and "The Mortgage Pool" and in Schedule A thereto. The Mortgage Loan
Seller will cooperate with the Purchaser in making available all information and
taking all steps reasonably necessary to permit such accountants to complete the
review and to deliver the letters required of them under the Underwriting
Agreement. Deloitte & Touche LLP will also confirm certain calculations as set
forth under the caption "Yield, Prepayment and Maturity Considerations" in the
Prospectus Supplement.

                  (b) To the extent statistical information with respect to the
Mortgage Loan Seller's servicing portfolio is included in the Prospectus
Supplement under the caption "Servicing of the Mortgage Loans--The Master
Servicer--Delinquency and Foreclosure Experience of EMC," a letter from the
certified public accountant for the Mortgage Loan Seller will be delivered to
the Purchaser dated the date of the Prospectus Supplement, in the form
previously agreed to by the Mortgage Loan Seller and the Purchaser, with respect
to such statistical information.

                         SECTION 13. INDEMNIFICATION.

                  (a) The Mortgage Loan Seller shall indemnify and hold harmless
the Purchaser and its directors, officers and controlling persons (as defined in
Section 15 of the Securities Act) from and against any loss, claim, damage or
liability or action in respect thereof, to which they or any of them may become
subject, under the Securities Act or otherwise, insofar as such loss, claim,
damage, liability or action arises out of, or is based upon (i) any untrue
statement of a material fact contained in the MORTGAGE LOAN SELLER'S INFORMATION
as identified in EXHIBIT 3, the omission to state in the Prospectus Supplement
or Prospectus (or any amendment thereof or supplement thereto approved by the
Mortgage Loan Seller and in which additional Mortgage Loan Seller's Information
is identified), in reliance upon and in conformity with Mortgage Loan Seller's
Information a material fact required to be stated therein or necessary to make
the statements therein in light of the circumstances in which they were made,
not misleading, (ii) any representation or warranty assigned or made by the
Mortgage Loan Seller in Section 7 or Section 8 hereof being, or alleged to be,
untrue or incorrect, or (iii) any failure by

                                      L-21
<PAGE>

the Mortgage Loan Seller to perform its obligations under this Agreement; and
the Mortgage Loan Seller shall reimburse the Purchaser and each other
indemnified party for any legal and other expenses reasonably incurred by them
in connection with investigating or defending or preparing to defend against any
such loss, claim, damage, liability or action.

                  The foregoing indemnity agreement is in addition to any
liability which the Mortgage Loan Seller otherwise may have to the Purchaser or
any other such indemnified party.

                  (b) The Purchaser shall indemnify and hold harmless the
Mortgage Loan Seller and its respective directors, officers and controlling
persons (as defined in Section 15 of the Securities Act) from and against any
loss, claim, damage or liability or action in respect thereof, to which they or
any of them may become subject, under the Securities Act or otherwise, insofar
as such loss, claim, damage, liability or action arises out of, or is based upon
(i) any untrue statement of a material fact contained in the PURCHASER'S
INFORMATION as identified in EXHIBIT 4, the omission to state in the Prospectus
Supplement or Prospectus (or any amendment thereof or supplement thereto
approved by the Purchaser and in which additional Purchaser's Information is
identified), in reliance upon and in conformity with the Purchaser's
Information, a material fact required to be stated therein or necessary to make
the statements therein in light of the circumstances in which they were made,
not misleading, (ii) any representation or warranty made by the Purchaser in
Section 9 hereof being, or alleged to be, untrue or incorrect, or (iii) any
failure by the Purchaser to perform its obligations under this Agreement; and
the Purchaser shall reimburse the Mortgage Loan Seller, and each other
indemnified party for any legal and other expenses reasonably incurred by them
in connection with investigating or defending or preparing to defend any such
loss, claim, damage, liability or action. The foregoing indemnity agreement is
in addition to any liability which the Purchaser otherwise may have to the
Mortgage Loan Seller, or any other such indemnified party.

                  (c) Promptly after receipt by an indemnified party under
subsection (a) or (b) above of notice of the commencement of any action, such
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under such subsection, notify each party against whom
indemnification is to be sought in writing of the commencement thereof (but the
failure so to notify an indemnifying party shall not relieve it from any
liability which it may have under this Section 13 except to the extent that it
has been prejudiced in any material respect by such failure or from any
liability which it may have otherwise). In case any such action is brought
against any indemnified party, and it notifies an indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent it may elect by written notice delivered to the
indemnified party promptly (but, in any event, within 30 days) after receiving
the aforesaid notice from such indemnified party, to assume the defense thereof
with counsel reasonably satisfactory to such indemnified party. Notwithstanding
the foregoing, the indemnified party or parties shall have the right to employ
its or their own counsel in any such case, but the fees and expenses of such
counsel shall be at the expense of such indemnified party or parties unless (i)
the employment of such counsel shall have been authorized in writing by one of
the indemnifying parties in connection with the defense of such action, (ii) the
indemnifying parties shall not have employed counsel to have charge of the
defense of such action within a reasonable time after notice of commencement of
the action, or (iii) such indemnified party or parties shall have reasonably
concluded that there is a

                                      L-22
<PAGE>

conflict of interest between itself or themselves and the indemnifying party in
the conduct of the defense of any claim or that the interests of the indemnified
party or parties are not substantially co-extensive with those of the
indemnifying party (in which case the indemnifying parties shall not have the
right to direct the defense of such action on behalf of the indemnified party or
parties), in any of which events such fees and expenses shall be borne by the
indemnifying parties (PROVIDED, HOWEVER, that the indemnifying party shall be
liable only for the fees and expenses of one counsel in addition to one local
counsel in the jurisdiction involved. Anything in this subsection to the
contrary notwithstanding, an indemnifying party shall not be liable for any
settlement or any claim or action effected without its written consent;
PROVIDED, HOWEVER, that such consent was not unreasonably withheld.

                  (d) If the indemnification provided for in paragraphs (a) and
(b) of this Section 13 shall for any reason be unavailable to an indemnified
party in respect of any loss, claim, damage or liability, or any action in
respect thereof, referred to in Section 13, then the indemnifying party shall in
lieu of indemnifying the indemnified party contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or
liability, or action in respect thereof, in such proportion as shall be
appropriate to reflect the relative benefits received by the Mortgage Loan
Seller on the one hand and the Purchaser on the other from the purchase and sale
of the Mortgage Loans, the offering of the Certificates and the other
transactions contemplated hereunder. No person found liable for a fraudulent
misrepresentation shall be entitled to contribution from any person who is not
also found liable for such fraudulent misrepresentation.

                  (e) The parties hereto agree that reliance by an indemnified
party on any publicly available information or any information or directions
furnished by an indemnifying party shall not constitute negligence, bad faith or
willful misconduct by such indemnified party.

                         SECTION 14. NOTICES. All demands, notices and
communications hereunder shall be in writing but may be delivered by facsimile
transmission subsequently confirmed in writing. Notices to the Mortgage Loan
Seller shall be directed to EMC Mortgage Corporation, 909 Hidden Ridge Drive,
Suite 200 Irving, Texas 75038, (Telecopy: (972-444-2880)), and notices to the
Purchaser shall be directed to Bear Stearns Asset Backed Securities I LLC, 383
Madison Avenue, New York, New York 10179, (Telecopy: (212-272-7206)), Attention:
Chief Counsel; or to any other address as may hereafter be furnished by one
party to the other party by like notice. Any such demand, notice or
communication hereunder shall be deemed to have been received on the date
received at the premises of the addressee (as evidenced, in the case of
registered or certified mail, by the date noted on the return receipt) provided
that it is received on a business day during normal business hours and, if
received after normal business hours, then it shall be deemed to be received on
the next business day.

                         SECTION 15. TRANSFER OF MORTGAGE LOANS. The Purchaser
retains the right to assign the Mortgage Loans and any or all of its interest
under this Agreement to the Trustee without the consent of the Mortgage Loan
Seller, and, upon such assignment, the Trustee shall succeed to the applicable
rights and obligations of the Purchaser hereunder; provided, however, the
Purchaser shall remain entitled to the benefits set forth in Sections 11, 13 and
17 hereto and as provided in Section 2(a). Notwithstanding the foregoing, the
sole and exclusive

                                      L-23
<PAGE>

right and remedy of the Trustee with respect to a breach of representation or
warranty of the Mortgage Loan Seller shall be the cure, purchase or substitution
obligations of the Mortgage Loan Seller contained in Sections 5 and 7 hereof.

                         SECTION 16. TERMINATION. This Agreement may be
terminated (a) by the mutual consent of the parties hereto prior to the Closing
Date, (b) by the Purchaser, if the conditions to the Purchaser's obligation to
close set forth under Section 10(a) hereof are not fulfilled as and when
required to be fulfilled or (c) by the Mortgage Loan Seller, if the conditions
to the Mortgage Loan Seller's obligation to close set forth under Section 10(b)
hereof are not fulfilled as and when required to be fulfilled. In the event of
termination pursuant to clause (b), the Mortgage Loan Seller shall pay, and in
the event of termination pursuant to clause (c), the Purchaser shall pay, all
reasonable out-of-pocket expenses incurred by the other in connection with the
transactions contemplated by this Agreement. In the event of a termination
pursuant to clause (a), each party shall be responsible for its own expenses.

                         SECTION 17. REPRESENTATIONS, WARRANTIES AND AGREEMENTS
TO SURVIVE DELIVERY. All representations, warranties and agreements contained in
this Agreement, or contained in certificates of officers of the Mortgage Loan
Seller submitted pursuant hereto, shall remain operative and in full force and
effect and shall survive delivery of the Mortgage Loans to the Purchaser (and by
the Purchaser to the Trustee). Subsequent to the delivery of the Mortgage Loans
to the Purchaser, each of the Mortgage Loan Seller's representations and
warranties contained herein with respect to the Mortgage Loans shall be deemed
to relate to the Mortgage Loans actually delivered to the Purchaser and included
in the Final Mortgage Loan Schedule and any Replacement Mortgage Loan and not to
those Mortgage Loans deleted from the Preliminary Mortgage Loan Schedule
pursuant to Section 3 hereof prior to the Closing.

                         SECTION 18. SEVERABILITY. If any provision of this
Agreement shall be prohibited or invalid under applicable law, this Agreement
shall be ineffective only to such extent, without invalidating the remainder of
this Agreement.

                         SECTION 19. COUNTERPARTS. This Agreement may be
executed in counterparts, each of which will be an original, but which together
shall constitute one and the same agreement.

                         SECTION 20. AMENDMENT. This Agreement cannot be amended
or modified in any manner without the prior written consent of each party.

                         SECTION 21. GOVERNING LAW. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF OTHER THAN SECTION
5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

                         SECTION 22. FURTHER ASSURANCES. Each of the parties
agrees to execute and deliver such instruments and take such actions as another
party may, from time to time, reasonably request in order to effectuate the
purpose and to carry out the terms of this Agreement including any amendments
hereto which may be required by either Rating Agency.

                                      L-24
<PAGE>

                         SECTION 23. SUCCESSORS AND ASSIGNS.

                  (a) This Agreement shall bind and inure to the benefit of and
be enforceable by the Mortgage Loan Seller and the Purchaser and their permitted
successors and assigns and, to the extent specified in Section 13 hereof, Bear
Stearns, and their directors, officers and controlling persons (within the
meaning of federal securities laws), to the extent of its rights as a third
party beneficiary hereunder. The Mortgage Loan Seller acknowledges and agrees
that the Purchaser may assign its rights under this Agreement (including,
without limitation, with respect to the Mortgage Loan Seller's representations
and warranties respecting the Mortgage Loans) to the Trustee. Any person into
which the Mortgage Loan Seller may be merged or consolidated (or any person
resulting from any merger or consolidation involving the Mortgage Loan Seller),
any person resulting from a change in form of the Mortgage Loan Seller or any
person succeeding to the business of the Mortgage Loan Seller, shall be
considered the "successor" of the Mortgage Loan Seller hereunder and shall be
considered a party hereto without the execution or filing of any paper or any
further act or consent on the part of any party hereto. Except as provided in
the two preceding sentences, this Agreement cannot be assigned, pledged or
hypothecated by either party hereto without the written consent of the other
parties to this Agreement and any such assignment or purported assignment shall
be deemed null and void.

                         SECTION 24. THE MORTGAGE LOAN SELLER. The Mortgage Loan
Seller will keep in full force and effect its existence, all 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 necessary to
perform its obligations under this Agreement.

                         SECTION 25. ENTIRE AGREEMENT. This Agreement contains
the entire agreement and understanding between the parties with respect to the
subject matter hereof, and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or written,
of any nature whatsoever with respect to the subject matter hereof.

                         SECTION 26. NO PARTNERSHIP. Nothing herein contained
shall be deemed or construed to create a partnership or joint venture between
the parties hereto.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      L-25
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused their names
to be signed hereto by their respective duly authorized officers as of the date
first above written.

                                        EMC MORTGAGE CORPORATION

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________

                                        BEAR STEARNS ASSET BACKED
                                        SECURITIES I LLC

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________

<PAGE>

                                    EXHIBIT 1
                                    ---------
                            CONTENTS OF MORTGAGE FILE
                            -------------------------

         With respect to each Mortgage Loan, the Mortgage File shall include
each of the following items, which shall be available for inspection by the
Purchaser or its designee, and which shall be delivered to the Purchaser or its
designee pursuant to the terms of this Agreement.

                           (i) The original Mortgage Note, including any riders
         thereto, endorsed without recourse to the order of "LaSalle Bank
         National Association", as Trustee for certificateholders of Bear
         Stearns Asset Backed Securities I LLC Asset- Backed Certificates,
         Series 2005-HE2," and showing to the extent available to the Mortgage
         Loan Seller an unbroken chain of endorsements from the original payee
         thereof to the Person endorsing it to the Trustee;

                           (ii) the original Mortgage and, if the related
         Mortgage Loan is a MOM Loan, noting the presence of the MIN and
         language indicating that such Mortgage Loan is a MOM Loan, which shall
         have been recorded (or if the original is not available, a copy), with
         evidence of such recording indicated thereon (or if clause (x) in the
         proviso below applies, shall be in recordable form);

                           (iii) unless the Mortgage Loan is a MOM Loan, the
         assignment (either an original or a copy, which may be in the form of a
         blanket assignment if permitted in the jurisdiction in which the
         Mortgaged Property is located) to the Trustee of the Mortgage with
         respect to each Mortgage Loan in the name of "LaSalle Bank National
         Association", as Trustee for certificateholders of Bear Stearns Asset
         Backed Securities I LLC Asset-Backed Certificates, Series 2005-HE2,"
         which shall have been recorded (or if clause (x) in the proviso below
         applies, shall be in recordable form);

                           (iv) an original or a copy of all intervening
         assignments of the Mortgage, if any, to the extent available to the
         Mortgage Loan Seller, with evidence of recording thereon;

                           (v) the original policy of title insurance or
         mortgagee's certificate of title insurance or commitment or binder for
         title insurance, if available, or a copy thereof, or, in the event that
         such original title insurance policy is unavailable, a photocopy
         thereof, or in lieu thereof, a current lien search on the related
         Mortgaged Property and

                           (vi) originals or copies of all available assumption,
         modification or substitution agreements, if any; provided, however,
         that in lieu of the foregoing, the Mortgage Loan Seller may deliver the
         following documents, under the circumstances set forth below: x) if any
         Mortgage, assignment thereof to the Trustee or intervening assignments
         thereof have been delivered or are being delivered to recording offices
         for recording and have not been returned in time to permit their
         delivery as specified above, the Purchaser may deliver a true copy
         thereof with a certification by the Mortgage Loan Seller or the title
         company issuing the commitment for title insurance, on the face of such
         copy, substantially as follows: "Certified to be a true and correct
         copy of the original,

                                      L-1-1
<PAGE>

         which has been transmitted for recording"; and (y) in lieu of the
         Mortgage Notes relating to the Mortgage Loans identified in the list
         set forth in Exhibit J to the Pooling and Servicing Agreement, the
         Purchaser may deliver a lost note affidavit and indemnity and a copy of
         the original note, if available; and provided, further, however, that
         in the case of Mortgage Loans which have been prepaid in full after the
         Cut-Off Date and prior to the Closing Date, the Purchaser, in lieu of
         delivering the above documents, may deliver to the Trustee and its
         Custodian a certification of a Servicing Officer to such effect and in
         such case shall deposit all amounts paid in respect of such Mortgage
         Loans, in the Protected Account or in the Distribution Account on the
         Closing Date. In the case of the documents referred to in clause (x)
         above, the Purchaser shall deliver such documents to the Trustee or its
         Custodian promptly after they are received. The Mortgage Loan Seller
         shall cause, at its expense, the Mortgage and intervening assignments,
         if any, and to the extent required in accordance with the foregoing,
         the assignment of the Mortgage to the Trustee to be submitted for
         recording promptly after the Closing Date; provided that the Mortgage
         Loan Seller need not cause to be recorded any assignment (a) in any
         jurisdiction under the laws of which, as evidenced by an Opinion of
         Counsel addressed to the Trustee delivered by the Mortgage Loan Seller
         to the Trustee and the Rating Agencies, the recordation of such
         assignment is not necessary to protect the Trustee's interest in the
         related Mortgage Loan or (b) if MERS is identified on the Mortgage or
         on a properly recorded assignment of the Mortgage as mortgagee of
         record solely as nominee for Mortgage Loan Seller and its successors
         and assigns. In the event that the Mortgage Loan Seller, the Purchaser
         or the Master Servicer gives written notice to the Trustee that a court
         has recharacterized the sale of the Mortgage Loans as a financing, the
         Mortgage Loan Seller shall submit or cause to be submitted for
         recording as specified above or, should the Mortgage Loan Seller fail
         to perform such obligations, the Master Servicer shall cause each such
         previously unrecorded assignment to be submitted for recording as
         specified above at the expense of the Trust. In the event a Mortgage
         File is released to the Mortgage Loan Seller or the Master Servicer as
         a result of such Person having completed a Request for Release, the
         Custodian shall, if not so completed, complete the assignment of the
         related Mortgage in the manner specified in clause (iii) above.

                                      L-1-2

<PAGE>

                                    EXHIBIT 2
                                    ---------
                       MORTGAGE LOAN SCHEDULE INFORMATION
                       ----------------------------------

         The Preliminary and Final Mortgage Loan Schedules shall set forth the
following information with respect to each Mortgage Loan:

                       (i)     the loan sequence number;

                       (ii)    the Mortgage Loan identifying number;

                       (iii)   the EMC Loan identifying number;

                       (iv)    the current gross coupon;

                       (v)     the Servicing Fee Rate;

                       (vi)    the master servicing fee rate, if applicable;

                       (vii)   the LPMI Fee, if applicable;

                       (viii)  the Trustee Fee Rate;

                       (ix)    the current net coupon;

                       (x)     the maturity date;

                       (xi)    the original principal balance;

                       (xii)   the current principal balance;

                       (xiii)  the stated original term to maturity;

                       (xiv)   the stated remaining term to maturity;

                       (xv)    the property type;

                       (xvi)   the MIN with respect to each MOM Loan;

                       (xvii)  with respect to each Adjustable Rate Mortgage
                               Loan, the Minimum Mortgage Rate;

                       (xviii) with respect to each Adjustable Rate Mortgage
                               Loan, the Maximum Mortgage Rate;

                       (xix)   with respect to each Adjustable Rate Mortgage
                               Loan, the Gross Margin;

                                      L-2-1
<PAGE>

                       (xx)    with respect to each Adjustable Rate Mortgage
                               Loan, the next Adjustment Date;

                       (xxi)   with respect to each Adjustable Rate Mortgage
                               Loan, the Periodic Rate Cap;

                       (xxii)  the Loan Group; and

                       (xxiii) a code indicating whether such Mortgage Loan is a
                               first lien Mortgage Loan or a second lien
                               Mortgage Loan.

                                      L-2-2

<PAGE>

                                    EXHIBIT 3
                                    ---------
                       MORTGAGE LOAN SELLER'S INFORMATION
                       ----------------------------------

         All information in the Prospectus Supplement described under the
following captions: "SUMMARY -- The Mortgage Loans," "THE MORTGAGE POOL" and
"SCHEDULE A -- Mortgage Loan Statistical Data."

                                      L-3-1
<PAGE>

                                    EXHIBIT 4
                                    ---------
                             PURCHASER'S INFORMATION
                             -----------------------

         All information in the Prospectus Supplement and the Prospectus, except
the Mortgage Loan Seller's Information.

                                      L-4-1

<PAGE>

                                    EXHIBIT 5
                                    ---------
                             SCHEDULE OF LOST NOTES
                             ----------------------

                             Available Upon Request

                                      L-5-1

<PAGE>

                                    EXHIBIT 6
                                    ---------

                                                       REVISED February 07, 2005

APPENDIX E - STANDARD & POOR'S ANTI-PREDATORY LENDING CATEGORIZATION

Standard & Poor's has categorized loans governed by anti-predatory lending laws
in the Jurisdictions listed below into three categories based upon a combination
of factors that include (a) the risk exposure associated with the assignee
liability and (b) the tests and thresholds set forth in those laws. Note that
certain loans classified by the relevant statute as Covered are included in
Standard & Poor's High Cost Loan Category because they included thresholds and
tests that are typical of what is generally considered High Cost by the
industry.

<TABLE>
<CAPTION>
STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
-----------------------------------------------

-------------------------------------------------------------------------------------------------------------------------
       STATE/JURISDICTION           NAME OF ANTI-PREDATORY LENDING                     CATEGORY UNDER APPLICABLE
                                          LAW/EFFECTIVE DATE                           ANTI-PREDATORY LENDING LAW
-------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                  <C>
Arkansas                           Arkansas Home Loan Protection Act, Ark. Code         High Cost Home Loan
                                   Ann. ss.ss. 23-53-101 ET SEQ. Effective July
                                   16, 2003
-------------------------------------------------------------------------------------------------------------------------
Cleveland Heights, OH              Ordinance No. 72-2003 (PSH), Mun. Code ss.ss.        Covered Loan
                                   757.01 ET SEQ.
                                   Effective June 2, 2003
-------------------------------------------------------------------------------------------------------------------------
Colorado                           Consumer Equity Protection, Colo. Stat. Ann. ss.ss.  Covered Loan
                                   5-3.5-101 ET SEQ.

                                   Effective for covered loans offered or
                                   entered into on or after January 1, 2003.
                                   Other provisions of the Act took effect on
                                   June 7, 2002
-------------------------------------------------------------------------------------------------------------------------
Connecticut                        Connecticut Abusive Home Loan Lending                High Cost Home Loan
                                   Practices Act, Conn. Gen. Stat. ss.ss.
                                   36a-746 ET SEQ. Effective October 1, 2001

-------------------------------------------------------------------------------------------------------------------------
District of Columbia               Home Loan Protection Act, D.C. Code ss.ss.           Covered Loan
                                   26-1151.01 ET SEQ.

                                   Effective for loans closed on or after
                                   January 28, 2003
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      L-6-1
<PAGE>

<TABLE>
<CAPTION>
STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
-----------------------------------------------

-------------------------------------------------------------------------------------------------------------------------
       STATE/JURISDICTION           NAME OF ANTI-PREDATORY LENDING                     CATEGORY UNDER APPLICABLE
                                          LAW/EFFECTIVE DATE                           ANTI-PREDATORY LENDING LAW
-------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                  <C>
Florida                            Fair Lending Act, Fla. Stat. Ann. ss.ss.             High Cost Home Loan
                                   494.0078 et SEQ.

                                   Effective October 2, 2002
-------------------------------------------------------------------------------------------------------------------------
Georgia (Oct. 1, 2002 -            Georgia Fair Lending Act, Ga. Code Ann. ss.ss.       High Cost Home Loan
Mar. 6, 2003)                      7-6A-1 ET SEQ.

                                   Effective October 1, 2002 - March 6, 2003
-------------------------------------------------------------------------------------------------------------------------
Georgia as amended (Mar. 7, 2003   Georgia Fair Lending Act,  Ga.  Code Ann.  ss.ss.    High Cost Home Loan
- current)                         7-6A-1 ET SEQ.
                                   Effective  for loans closed on or after March 7,
                                   2003
-------------------------------------------------------------------------------------------------------------------------
HOEPA Section 32                   Home  Ownership  and  Equity  Protection  Act of     High Cost Loan
                                   1994, 15 U.S.C. ss. 1639, 12 C.F.R.  ss.ss.
                                   226.32 and 226.34

                                   Effective October 1, 1995, amendments October
                                   1, 2002
-------------------------------------------------------------------------------------------------------------------------
Illinois                           High Risk Home Loan Act, Ill. Comp.  Stat.  tit.     High Risk Home Loan
                                   815, ss.ss. 137/5 ET SEQ.

                                   Effective  January 1, 2004  (prior to this date,
                                   regulations under  Residential  Mortgage License
                                   Act effective from May 14, 2001)
-------------------------------------------------------------------------------------------------------------------------
Indiana                            Indiana Home Loan  Practices Act, Ind. Code Ann.     High Cost Home Loan
                                   ss.ss. 24-9-1-1 ET SEQ.
                                   Effective for loans originated on or after
                                   January 1, 2005.
-------------------------------------------------------------------------------------------------------------------------
Kansas                             Consumer Credit Code, Kan. Stat. Ann. ss.ss.         High Loan to Value Consumer
                                   16a-1-101 ET SEQ.                                    Loan (ID. ss. 16a-3-207) and;
                                                                                        ---------------------------------
                                   Sections 16a-1-301 and 16a-3-207 became              High APR Consumer Loan (ID. ss.
                                   effective April 14, 1999; Section 16a-3-308a         16a-3-308a)
                                   became effective July 1, 1999
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                     L-6-2
<PAGE>

<TABLE>
<CAPTION>
STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
-----------------------------------------------

-------------------------------------------------------------------------------------------------------------------------
       STATE/JURISDICTION           NAME OF ANTI-PREDATORY LENDING                     CATEGORY UNDER APPLICABLE
                                          LAW/EFFECTIVE DATE                           ANTI-PREDATORY LENDING LAW
-------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                  <C>
Kentucky                           2003 KY H.B. 287 - High Cost Home Loan Act, Ky.      High Cost Home Loan
                                   Rev. Stat. ss.ss. 360.100 ET SEQ.
                                   Effective June 24, 2003
-------------------------------------------------------------------------------------------------------------------------
Maine                              Truth in Lending, Me. Rev. Stat. tit. 9-A, ss.ss.    High Rate High Fee Mortgage
                                   8-101 ET SEQ.

                                   Effective September 29, 1995 and as amended
                                   from time to time
-------------------------------------------------------------------------------------------------------------------------
Massachusetts                      Part 40 and Part  32, 209 C.M.R. ss.ss.              High Cost Home Loan
                                   32.00 ET seq. and 209 C.M.R. ss.ss. 40.01
                                   ET SEQ.

                                   Effective March 22, 2001 and amended from
                                   time to time
-------------------------------------------------------------------------------------------------------------------------
                                   Massachusetts Predatory Home Loan Practices Act      High Cost Home Mortgage Loan
                                   Mass. Gen. Laws ch. 183C,  ss.ss. 1 ET SEQ.
                                   Effective November 7, 2004
-------------------------------------------------------------------------------------------------------------------------
Nevada                             Assembly Bill No. 284, Nev. Rev. Stat. ss.ss.        Home Loan
                                   598D.010 ET SEQ.
                                   Effective October 1, 2003
-------------------------------------------------------------------------------------------------------------------------
New Jersey                         New Jersey Home Ownership  Security Act of 2002,     High Cost Home Loan
                                   N.J. Rev. Stat. ss.ss. 46:10B-22 ET SEQ.

                                   Effective for loans closed on or after
                                   November 27, 2003
-------------------------------------------------------------------------------------------------------------------------
New Mexico                         Home Loan  Protection Act, N.M. Rev.                 High Cost Home Loan
                                   Stat. ss.ss. 58-21A-1 ET SEQ.

                                   Effective  as of January 1, 2004; Revised
                                   as of February 26, 2004
-------------------------------------------------------------------------------------------------------------------------
New York                           N.Y. Banking Law Article 6-l                         High Cost Home Loan

                                   Effective for applications made on or
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                     L-6-3
<PAGE>

<TABLE>
<CAPTION>
STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
-----------------------------------------------

-------------------------------------------------------------------------------------------------------------------------
       STATE/JURISDICTION           NAME OF ANTI-PREDATORY LENDING                     CATEGORY UNDER APPLICABLE
                                          LAW/EFFECTIVE DATE                           ANTI-PREDATORY LENDING LAW
-------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                  <C>
                                   after April 1, 2003
-------------------------------------------------------------------------------------------------------------------------
North Carolina                     Restrictions  and  Limitations on High Cost Home     High Cost Home Loan
                                   Loans, N.C. Gen. Stat. ss.ss. 24-1.1E ET SEQ.

                                   Effective July 1, 2000;  amended October 1, 2003
                                   (adding open-end lines of credit)
-------------------------------------------------------------------------------------------------------------------------
Ohio                               H.B. 386  (codified  in various  sections of the     Covered Loan
                                   Ohio Code), Ohio Rev. Code Ann. ss.ss. 1349.25 ET
                                   SEQ.

                                   Effective May 24, 2002
-------------------------------------------------------------------------------------------------------------------------
Oklahoma                           Consumer Credit Code  (codified in                   Subsection 10 Mortgage
                                   various sections of Title 14A)

                                   Effective July 1, 2000; amended effective
                                   January 1, 2004
-------------------------------------------------------------------------------------------------------------------------
South Carolina                     South Carolina High Cost and                         High Cost Home Loan
                                   Consumer Home Loans Act, S.C. Code
                                   Ann. ss.ss. 37-23-10 ET SEQ.

                                   Effective  for loans  taken on or after
                                   January 1, 2004
-------------------------------------------------------------------------------------------------------------------------
West Virginia                      West Virginia Residential Mortgage Lender,           West Virginia Mortgage Loan
                                   Broker and Servicer Act, W. Va. Code Ann.            Act Loan
                                   ss.ss. 31-17-1 ET SEQ.

                                   Effective June 5, 2002
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

STANDARD & POOR'S COVERED LOAN CATEGORIZATION
---------------------------------------------

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
       STATE/JURISDICTION           NAME OF ANTI-PREDATORY LENDING                     CATEGORY UNDER APPLICABLE
                                          LAW/EFFECTIVE DATE                           ANTI-PREDATORY LENDING LAW
-------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                  <C>
Georgia (Oct. 1, 2002 -            Georgia Fair Lending Act, Ga. Code                   Covered Loan
Mar. 6, 2003)                      Ann.  ss.ss.  7-6A-1 ET SEQ.
-------------------------------------------------------------------------------------------------------------------------

                                     L-6-4
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                  <C>
                                   Effective October 1, 2002 - March 6, 2003
-------------------------------------------------------------------------------------------------------------------------
New Jersey                         New Jersey Home Ownership  Security Act of 2002,     Covered Home Loan
                                   N.J. Rev. Stat. ss.ss. 46:10B-22 ET SEQ.

                                   Effective November 27, 2003 - July 5, 2004
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

STANDARD & POOR'S HOME LOAN CATEGORIZATION
------------------------------------------

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
       STATE/JURISDICTION           NAME OF ANTI-PREDATORY LENDING                     CATEGORY UNDER APPLICABLE
                                          LAW/EFFECTIVE DATE                           ANTI-PREDATORY LENDING LAW
-------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                  <C>
Georgia (Oct. 1, 2002 -            Georgia Fair Lending Act, Ga. Code Ann. ss.ss.       Home Loan
Mar. 6, 2003)                      7-6A-1 ET SEQ.

                                   Effective October 1, 2002 - March 6, 2003
-------------------------------------------------------------------------------------------------------------------------
New Jersey                         New Jersey Home Ownership  Security Act of 2002,     Home Loan
                                   N.J. Rev. Stat. ss.ss. 46:10B-22 ET SEQ.

                                   Effective for loans closed on or after
                                   November 27, 2003
-------------------------------------------------------------------------------------------------------------------------
New Mexico                         Home Loan Protection Act, N.M. Rev. Stat. ss.ss.     Home Loan
                                   58-21A-1 ET SEQ.

                                   Effective  as of January 1, 2004;  Revised as of
                                   February 26, 2004
-------------------------------------------------------------------------------------------------------------------------
North Carolina                     Restrictions  and  Limitations on High Cost Home     Consumer Home Loan
                                   Loans, N.C. Gen. Stat. ss.ss. 24-1.1E ET SEQ.

                                   Effective July 1, 2000;  amended October 1, 2003
                                   (adding open-end lines of credit)
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                     L-6-5
<PAGE>

<TABLE>
<CAPTION>
STANDARD & POOR'S HOME LOAN CATEGORIZATION
------------------------------------------

-------------------------------------------------------------------------------------------------------------------------
       STATE/JURISDICTION           NAME OF ANTI-PREDATORY LENDING                     CATEGORY UNDER APPLICABLE
                                          LAW/EFFECTIVE DATE                           ANTI-PREDATORY LENDING LAW
-------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                  <C>
-------------------------------------------------------------------------------------------------------------------------
South Carolina                     South Carolina High Cost and Consumer Home           Consumer Home Loan
                                   Loans Act, S.C. Code Ann. ss.ss. 37-23-10 ET SEQ.

                                   Effective for loans taken on or after
                                   January 1, 2004
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                     L-6-6
<PAGE>

                                   SCHEDULE A

                 REQUIRED RATINGS FOR EACH CLASS OF CERTIFICATES

                               PUBLIC CERTIFICATES
                               -------------------

           Class                          S&P                     Moody's
       ------------                 --------------           ----------------
           I-A-1                          AAA                       Aaa
           I-A-2                          AAA                       Aaa
           I-A-3                          AAA                       Aaa
          II-A-1                          AAA                       Aaa
          II-A-2                          AAA                       Aaa
          III-A-1                         AAA                       Aaa
          III-A-2                         AAA                       Aaa
            M-1                           AA                        Aa2
            M-2                            A                         A2
            M-3                           A-                         A3
            M-4                          BBB+                       Baa1
            M-5                           BBB                       Baa2
            M-6                          BBB-                       Baa3

None of the above ratings has been lowered, qualified or withdrawn since the
dates of issuance of such ratings by the Rating Agencies.

                              PRIVATE CERTIFICATES

           Class                          S&P                     Moody's
       ------------                 --------------           ----------------
            M-7                           BB+                       Ba1
            M-8                           BB                        Ba2
            CE                         Not Rated                 Not Rated
             P                         Not Rated                 Not Rated
            R-1                        Not Rated                 Not Rated
            R-2                        Not Rated                 Not Rated
            R-3                        Not Rated                 Not Rated
            RX                         Not Rated                 Not Rated

                                      L-A-1EXHIBIT 4.1

<PAGE>

                          BEAR STEARNS ARM TRUST 2005-2

                                     Issuer,

                     WELLS FARGO BANK, NATIONAL ASSOCIATION

                            Securities Administrator

                                       and

                         U.S. BANK NATIONAL ASSOCIATION

                                Indenture Trustee

         --------------------------------------------------------------

                                    INDENTURE

                          Dated as of February 28, 2005

         --------------------------------------------------------------

                              MORTGAGE-BACKED NOTES

                             ----------------------

<PAGE>

<TABLE>
<CAPTION>
                                                 TABLE OF CONTENTS
                                                 -----------------

Section                                                                                                        Page
-------                                                                                                        ----
<S>                                                                                                            <C>

ARTICLE I
Definitions
         Section 1.01      Definitions............................................................................2
         Section 1.02      Incorporation by Reference of Trust Indenture Act......................................2
         Section 1.03      Rules of Construction..................................................................2

ARTICLE II
Original Issuance of Notes
         Section 2.01      Form...................................................................................4
         Section 2.02      Execution, Authentication and Delivery.................................................4

ARTICLE III
Covenants
         Section 3.01      Payment Account; Collection of Payments With Respect to the
                           Grantor Trust Certificate..............................................................5
         Section 3.02      Existence..............................................................................5
         Section 3.03      Payment of Principal and Interest......................................................6
         Section 3.04      Protection of Trust Estate............................................................10
         Section 3.05      Opinions as to Trust Estate...........................................................11
         Section 3.06      Performance of Obligations............................................................11
         Section 3.07      Negative Covenants....................................................................12
         Section 3.08      Annual Statement as to Compliance.....................................................12
         Section 3.09      [Reserved]............................................................................12
         Section 3.10      Representations and Warranties Concerning the Grantor
                           Trust Certificate.....................................................................12
         Section 3.11      Investment Company Act................................................................13
         Section 3.12      Issuer May Consolidate, etc...........................................................13
         Section 3.13      Successor or Transferee...............................................................15
         Section 3.14      No Other Business.....................................................................15
         Section 3.15      No Borrowing..........................................................................15
         Section 3.16      Guarantees, Loans, Monthly Advances and Other Liabilities.............................15
         Section 3.17      Capital Expenditures..................................................................15
         Section 3.18      Determination of Note Index...........................................................15
         Section 3.19      Restricted Payments...................................................................16
         Section 3.20      Notice of Events of Default...........................................................17
         Section 3.21      Further Instruments and Acts..........................................................17
         Section 3.22      Actions by the Investor...............................................................17
         Section 3.23      Certain Representations Regarding the Trust Estate....................................17
         Section 3.24      Allocation of Realized Losses.........................................................17
         Section 3.25      Permitted Withdrawals and Transfers from the Payment Account..........................19

                                                         i

<PAGE>

ARTICLE IV
The Notes; Satisfaction and Discharge of Indenture
         Section 4.01      The Notes.............................................................................22
         Section 4.02      Registration of and Limitations on Transfer and Exchange of
                           Notes; Appointment of Note Registrar and Certificate Registrar........................22
         Section 4.03      Mutilated, Destroyed, Lost or Stolen Notes............................................24
         Section 4.04      Persons Deemed Owners.................................................................25
         Section 4.05      Cancellation..........................................................................25
         Section 4.06      Book-Entry Notes......................................................................26
         Section 4.07      Notices to Depository.................................................................27
         Section 4.08      Definitive Notes......................................................................27
         Section 4.09      Tax Treatment.........................................................................28
         Section 4.10      Satisfaction and Discharge of Indenture...............................................28
         Section 4.11      Application of Trust Money............................................................29
         Section 4.12      [Reserved.............................................................................29
         Section 4.13      Repayment of Monies Held by Paying Agent..............................................29
         Section 4.14      Temporary Notes.......................................................................29
         Section 4.15      Representation Regarding ERISA........................................................30

ARTICLE V
Default and Remedies
         Section 5.01      Events of Default.....................................................................32
         Section 5.02      Acceleration of Maturity; Rescission and Annulment....................................32
         Section 5.03      Collection of Indebtedness and Suits for Enforcement by
                           Indenture Trustee.....................................................................33
         Section 5.04      Remedies; Priorities..................................................................35
         Section 5.05      Optional Preservation of the Trust Estate.............................................37
         Section 5.06      Limitation of Suits...................................................................37
         Section 5.07      Unconditional Rights of Noteholders To Receive Principal and
                           Interest..............................................................................38
         Section 5.08      Restoration of Rights and Remedies....................................................38
         Section 5.09      Rights and Remedies Cumulative........................................................38
         Section 5.10      Delay or Omission Not a Waiver........................................................38
         Section 5.11      Control By Noteholders................................................................39
         Section 5.12      Waiver of Past Defaults...............................................................39
         Section 5.13      Undertaking for Costs.................................................................39
         Section 5.14      Waiver of Stay or Extension Laws......................................................40
         Section 5.15      Sale of Trust Estate..................................................................40
         Section 5.16      Action on Notes.......................................................................41

ARTICLE VI
The Indenture Trustee and The Securities Administrator
         Section 6.01      Duties of Indenture Trustee and Securities Administrator..............................43
         Section 6.02      Rights of Indenture Trustee and Securities Administrator..............................44
         Section 6.03      Individual Rights of Indenture Trustee................................................46
         Section 6.04      [Reserved]............................................................................47

                                                        ii

<PAGE>

         Section 6.05      Indenture Trustee's and Securities Administrator's Disclaimer.........................47
         Section 6.06      Notice of Event of Default............................................................47
         Section 6.07      Reports to Holders and Tax Administration.............................................47
         Section 6.08      Compensation..........................................................................47
         Section 6.09      Replacement of Indenture Trustee and the Securities Administrator.....................48
         Section 6.10      Successor Indenture Trustee and Securities Administrator by Merger....................49
         Section 6.11      Appointment of Co-Indenture Trustee or Separate Indenture Trustee.....................50
         Section 6.12      Eligibility; Disqualification.........................................................51
         Section 6.13      [Reserved]............................................................................51
         Section 6.14      Representations and Warranties........................................................51
         Section 6.15      Directions to Indenture Trustee and the Securities Administrator......................51
         Section 6.16      The Agents............................................................................52

ARTICLE VII
Noteholders' Lists and Reports
         Section 7.01      Issuer To Furnish Securities Administrator Trustee Names and Addresses of
         Noteholders.............................................................................................53
         Section 7.02      Preservation of Information; Communications to Noteholders............................53
         Section 7.03      Financial Information.................................................................53
         Section 7.04      Statements to Noteholders.............................................................53
         Section 7.05      Reports Filed with Securities and Exchange Commission.................................55

ARTICLE VIII
Accounts, Disbursements and Releases
         Section 8.01      Collection of Money...................................................................57
         Section 8.02      Officer's Certificate.................................................................57
         Section 8.03      Termination Upon Distribution to Noteholders..........................................57
         Section 8.04      Release of Trust Estate...............................................................57
         Section 8.05      Surrender of Notes Upon Final Payment.................................................58
         Section 8.06      Optional Redemption of the Mortgage Loans.............................................58

ARTICLE IX
Supplemental Indentures
         Section 9.01      Supplemental Indentures Without Consent of Noteholders................................60
         Section 9.02      Supplemental Indentures With Consent of Noteholders...................................61
         Section 9.03      Execution of Supplemental Indentures..................................................63
         Section 9.04      Effect of Supplemental Indenture......................................................63
         Section 9.05      Conformity with Trust Indenture Act...................................................63
         Section 9.06      Reference in Notes to Supplemental Indentures.........................................63

ARTICLE X
Miscellaneous
         Section 10.01     Compliance Certificates and Opinions, etc.............................................64
         Section 10.02     Form of Documents Delivered to Indenture Trustee......................................65
         Section 10.03     Acts of Noteholders...................................................................66
         Section 10.04     Notices etc., to Indenture Trustee Issuer, Securities Administrator  and

                                                        iii

<PAGE>

                           Rating Agencies.......................................................................66
         Section 10.05     Notices to Noteholders; Waiver........................................................67
         Section 10.06     Conflict with Trust Indenture Act.....................................................68
         Section 10.07     Effect of Headings....................................................................68
         Section 10.08     Successors and Assigns................................................................68
         Section 10.09     Separability..........................................................................68
         Section 10.10     Legal Holidays........................................................................68
         Section 10.11     GOVERNING LAW.........................................................................68
         Section 10.12     Counterparts..........................................................................68
         Section 10.13     Recording of Indenture................................................................68
         Section 10.14     Issuer Obligation.....................................................................69
         Section 10.15     No Petition...........................................................................69
         Section 10.16     Inspection............................................................................69
</TABLE>

                  EXHIBITS

         Exhibit A-1    --    Form of Class A-[1][2] Notes
         Exhibit A-2    --    Form of Class A-[3][4] Notes
         Exhibit A-3    --    Form of Class X-1 Notes
         Exhibit A-4    --    Form of Class B Notes
         Exhibit B      --    Mortgage Loan Schedule
         Exhibit C      --    Form of Rule 144A Investment Representation Letter
         Exhibit D      --    Form of Transferee Letter
         Exhibit E      --    Form of Transferor Certificate
         Exhibit F      --    Form of Transferee Letter (REIT)
         Exhibit G      --    Form of Transferor Letter

         Appendix A     --    Definitions

                                       iv

<PAGE>

                                  RECONCILIATION AND TIE BETWEEN TRUST INDENTURE
                                       ACT OF 1939 AND INDENTURE PROVISIONS*

           Act Section     Indenture Section

<TABLE>
<CAPTION>
         Trust Indenture
            Act Section    Indenture Section
            -----------    -----------------
<S>                                                                                                            <C>
         310(a)(1).............................................................................................6.11
                  (a)(2).......................................................................................6.11
                  (a)(3).......................................................................................6.10
                  (a)(4).............................................................................Not Applicable
                  (a)(5).......................................................................................6.11
                  (b)....................................................................................6.08, 6.11
                  (c)................................................................................Not Applicable
         311(a)................................................................................................6.12
                  (b)..........................................................................................6.12
                  (c)................................................................................Not Applicable
         312(a).......................................................................................7.01, 7.02(a)
                  (b).......................................................................................7.02(b)
                  (c).......................................................................................7.02(c)
         313(a)......................................................................................Not Applicable
                  (b)................................................................................Not Applicable
                  (c)................................................................................Not Applicable
                  (d)................................................................................Not Applicable
         314(a)................................................................................................3.10
                   (b).........................................................................................3.07
                  (c)(1)..........................................................................8.05(c), 10.01(a)
                  (c)(2)..........................................................................8.05(c), 10.01(a)
                  (c)(3)............................................................................Not Applicable
                  (d)(1)..........................................................................8.05(c), 10.01(b)
                  (d)(2)..........................................................................8.05(c), 10.01(b)
                  (d)(3)..........................................................................8.05(c), 10.01(b)
                  (e)......................................................................................10.01(a)
         315(a).............................................................................................6.01(b)
                  (b)..........................................................................................6.05
                  (c).......................................................................................6.01(a)
                  (d).......................................................................................6.01(c)
                  (d)(1)....................................................................................6.01(c)
                  (d)(2)....................................................................................6.01(c)
                  (d)(3)....................................................................................6.01(c)
                  (e)..........................................................................................5.13
         316(a)(1)(A)..........................................................................................5.11
         316(a)(1)(B)..........................................................................................5.12
         316(a)(2)...................................................................................Not Applicable
         316(b)................................................................................................5.07

                                                         v

<PAGE>

         317(a)(1).............................................................................................5.04
         317(a)(2)..........................................................................................5.03(d)
         317(b)..........................................................................................3.03(a)(i)
         318(a)...............................................................................................10.07
</TABLE>

                                                        vi

<PAGE>

                  This Indenture, dated as of February 28, 2005, is entered into
among Bear Stearns ARM Trust 2005-2, a Delaware statutory trust, as Issuer (the
"Issuer"), Wells Fargo Bank, National Association, as Securities Administrator
(the "Securities Administrator") and U.S. Bank National Association, as
Indenture Trustee (the "Indenture Trustee").

                                WITNESSETH THAT:

                  Each party hereto agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the Issuer's
Mortgage-Backed Notes, Series 2005-2 (the "Notes").

                                 GRANTING CLAUSE

                  The Issuer hereby Grants to the Indenture Trustee at the
Closing Date, as trustee for the benefit of the Holders of the Notes, all of the
Issuer's right, title and interest in and to, whether now existing or hereafter
created, (a) the Grantor Trust Certificate representing the entire beneficial
interest in the Mortgage Loans, (b) all funds on deposit from time to time in
the Payment Account excluding any investment income from such funds; and (c) all
present and future claims, demands, causes and choses in action in respect of
any or all of the foregoing and all payments on or under, and all proceeds of
every kind and nature whatsoever in respect of, any or all of the foregoing and
all payments on or under, and all proceeds of every kind and nature whatsoever
in the conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, checks, deposit accounts, rights to payment of any and every kind,
and other forms of obligations and receivables, instruments and other property
which at any time constitute all or part of or are included in the proceeds of
any of the foregoing (collectively, the "Trust Estate" or the "Collateral").

                  The foregoing Grant is made in trust to secure the payment of
principal of and interest on, and any other amounts owing in respect of, the
Notes, subject to the priority set forth herein, and to secure compliance with
the provisions of this Indenture, all as provided in this Indenture.

                  The Indenture Trustee, as trustee on behalf of the Holders of
the Notes, acknowledges such Grant, accepts the trust under this Indenture in
accordance with the provisions hereof and each of the Indenture Trustee and the
Securities Administrator agree to perform their respective duties as Indenture
Trustee and Securities Administrator as required herein.

<PAGE>

                                    ARTICLE I

                                   Definitions

         Section 1.01 DEFINITIONS. For all purposes of this Indenture, except as
otherwise expressly provided herein or unless the context otherwise requires,
capitalized terms not otherwise defined herein shall have the meanings assigned
to such terms in the Definitions attached hereto as Appendix A which is
incorporated by reference herein. All other capitalized terms used herein shall
have the meanings specified herein.

         Section 1.02 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
Whenever this Indenture refers to a provision of the Trust Indenture Act (the
"TIA"), 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.

         All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rules have
the 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;

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<PAGE>

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

                           (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.

                                        3

<PAGE>

                                   ARTICLE II

                           Original Issuance of Notes

         Section 2.01 FORM. The Class A-1, Class A-2, Class A-3, Class A-4,
Class B-1, Class B-2, Class B-3, Class X-1, Class B-4, Class B-5 and Class B-6
Notes, together with the Securities Administrator's certificate of
authentication, shall be in substantially the form set forth in Exhibits A-1,
A-2, A-3 and A-4 to this Indenture, respectively, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture.

         The Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders).

         The terms of the Notes set forth in Exhibits A-1, A-2, A-3 and A-4 to
this Indenture are part of the terms of this Indenture.

         Section 2.02 EXECUTION, AUTHENTICATION AND DELIVERY. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile.

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

         The Securities Administrator shall upon Issuer Request authenticate and
deliver each Class of Notes for original issue in an aggregate initial principal
amount equal to the Initial Note Principal Balance or Initial Notional Amount,
as applicable, for such Class of Notes.

         Each of the Notes shall be dated the date of its authentication. The
Class A-1 Notes and Class A-2 Notes shall be issuable as registered Notes in
book-entry form and the Notes shall be issuable in the minimum initial Note
Principal Balances of $25,000 and in integral multiples of $1 in excess thereof.
The Class X-1 Notes shall be issuable as registered Notes in physical form and
the Notes shall be issuable in the minimum initial Notional Amount of $25,000
and in integral multiples of $1 in excess thereof. The Class A-3, Class A-4,
Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Notes shall
be issuable as registered Notes in physical form and the Notes shall be issuable
in the minimum initial Note Principal Balances of $25,000 and in integral
multiples of $1 in excess thereof.

         No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
executed by the 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.

                                        4

<PAGE>

                                   ARTICLE III

                                    Covenants

         Section 3.01 PAYMENT ACCOUNT; COLLECTION OF PAYMENTS WITH RESPECT TO
THE GRANTOR TRUST CERTIFICATE. (a) On or prior to the Closing Date, the Issuer
shall cause the Securities Administrator to establish and maintain, in the name
of the Securities Administrator, for the benefit of the Noteholders and the
Class B Grantor Trust Certificateholder and the Certificate Paying Agent, on
behalf of the Certificateholder, the Payment Account.

         (b) The Securities Administrator shall, subject to the terms of this
paragraph, deposit in the Payment Account, on the same day as it is received
from the Master Servicer, each remittance received by the Securities
Administrator on each Payment Account Deposit Date. On each Payment Date, the
Securities Administrator shall distribute all amounts on deposit in the Payment
Account (other than amounts payable to the Holder of the Class B Grantor Trust
Certificate) to Noteholders in respect of the Notes, and in its capacity as
Certificate Paying Agent, to the Certificateholder in the order of priority set
forth in Section 3.03 (except as otherwise provided in Section 5.04(b)). On the
third Business Day of each month, the Securities Administrator will pay to the
Holder of the Class B Grantor Trust Certificate the investment income in respect
of the Payment Account and the Master Servicer Collection Account, to the extent
received by it from the Master Servicer, with respect to such Payment Date.

         (c) All monies deposited from time to time in the Payment Account
pursuant to the Servicing Agreement and the Grantor Trust Agreement and all
deposits therein pursuant to this Indenture are for the benefit of the
Noteholders and the Class B Grantor Trust Certificateholder and the Certificate
Paying Agent, on behalf of the Certificateholder.

         All investments made with such monies including all income or other
gain from such investments are for the benefit of the holder of the Class B
Grantor Trust Certificates as provided in the Grantor Trust Agreement. The
Securities Administrator shall invest any funds in the Payment Account in
Permitted Investments maturing no later than 10:00 a.m. New York time on each
Payment Date and shall not be sold or disposed of prior to the maturity. The
risk of loss from such investments shall be borne by and be the risk of the
Class B Grantor Trust Certificateholder. The Class B Grantor Trust
Certificateholder shall deposit the amount of any such loss in the Payment
Account not later than 10:00 a.m. New York time on the related Payment Date.

         Section 3.02 EXISTENCE. The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other state or of the United States of
America, in which case the Issuer will keep in full effect its existence, rights
and franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Grantor Trust Certificate and
each other instrument or agreement included in the Trust Estate.

                                        5

<PAGE>

         Section 3.03 PAYMENT OF PRINCIPAL AND INTEREST. (a) On each Payment
Date, and to the extent of the funds in the Payment Account available therefor,
the Group I Available Funds and Group II Available Funds will be distributed by
the Securities Administrator as follows:

(I)      On each Payment Date, the Group I Available Funds for such Payment Date
         shall be distributed as follows:

         (A)      first, from the Group I Interest Funds, to the Class A-1
                  Notes, the Accrued Note Interest on such Class for such
                  Payment Date (subject to Net Interest Shortfalls allocated to
                  such Class);

         (B)      SECOND, from the remaining Group I Interest Funds, to the
                  Class A-1 Notes, the Accrued Note Interest thereon remaining
                  undistributed from any previous Payment Dates, with accrued
                  interest thereon;

         (C)      THIRD, from the Group I Principal Funds, to the Class A-1
                  Notes, in reduction of the Note Principal Balance thereof, the
                  Senior Optimal Principal Amount for such Class for such
                  Payment Date, until the Note Principal Balance thereof has
                  been reduced to zero;

         (D)      FOURTH, from the remaining Group I Interest Funds, to the
                  Class A-1 Notes, in an amount equal to any Basis Risk
                  Shortfall Carryover Amounts on such Class for such Payment
                  Date;

         (E)      FIFTH, to the Class A-3 Notes, to the extent of remaining
                  Available Funds for Loan Group I: (a) the Accrued Note
                  Interest on such Class for such Payment Date (subject to Net
                  Interest Shortfalls allocated to such Class) to the extent of
                  any remaining Group I Interest Funds; (b) the Accrued Note
                  Interest thereon remaining undistributed from any previous
                  Payment Dates, with accrued interest thereon, to the extent of
                  any remaining Group I Interest Funds; and (c) the Senior
                  Optimal Principal Amount for such Class for such Payment Date
                  to the extent of remaining Group I Principal Funds, until the
                  Note Principal Balance thereof has been reduced to zero;

         (F)      SIXTH, from the remaining Group I Interest Funds, to the Class
                  A-3 Notes, in an amount equal to any Basis Risk Shortfall
                  Carryover Amounts on such Class for such Payment Date;

(II)     On each Payment Date, the Group II Available Funds for such Payment
         Date shall be distributed as follows:

         (A)      first, from Group II Interest Funds, to the Class A-2 Notes,
                  the Accrued Note Interest on such Class for such Payment Date
                  (subject to Net Interest Shortfalls allocated to such Class);

<PAGE>

         (B)      SECOND, from the remaining Group II Interest Funds, to the
                  Class A-2 Notes, the Accrued Note Interest thereon remaining
                  undistributed from any previous Payment Dates, with accrued
                  interest thereon;

         (C)      THIRD, from the Group II Principal Funds, to the Class A-2
                  Notes, in reduction of the Note Principal Balance thereof, the
                  Senior Optimal Principal Amount for such Class for such
                  Payment Date, until the Note Principal Balance thereof has
                  been reduced to zero;

         (D)      FOURTH, from the remaining Group II Interest Funds, to the
                  Class A-2 Notes, in an amount equal to any Basis Risk
                  Shortfall Carryover Amounts on such Class for such Payment
                  Date;

         (E)      FIFTH, to the Class A-4 Notes, to the extent of remaining
                  Available Funds for Loan Group II: (a) the Accrued Note
                  Interest on such Class for such Payment Date (subject to Net
                  Interest Shortfalls allocated to such Class) to the extent of
                  any remaining Group II Interest Funds; (b) the Accrued Note
                  Interest thereon remaining undistributed from any previous
                  Payment Dates, with accrued interest thereon, to the extent of
                  any remaining Group II Interest Funds; and (c) the Senior
                  Optimal Principal Amount for such Class for such Payment Date
                  to the extent of remaining Group II Principal Funds, until the
                  Note Principal Balance thereof has been reduced to zero;

         (F)      SIXTH, from the remaining Group II Interest Funds, to the
                  Class A-4 Notes, in an amount equal to any Basis Risk
                  Shortfall Carryover Amounts on such Class for such Payment
                  Date;

(III)    On each Payment Date, the Group I Available Funds and Group II
         Available Funds remaining after the payments made in clauses (I) and
         (II) for such Payment Date shall be distributed as follows:

         (A)      FIRST, sequentially to the Class B-1, Class B-2 and Class B-3
                  Notes, in that order, up to an amount equal to and in the
                  following order with respect to each such Class: (a) the
                  Accrued Note Interest thereon for such Payment Date (subject
                  to Net Interest Shortfalls allocated to such Class) to the
                  extent of any remaining Interest Funds; (b) any Accrued Note
                  Interest thereon remaining undistributed from previous Payment
                  Dates, with accrued interest thereon, to the extent of any
                  remaining Interest Funds; and (c) such Class's Allocable Share
                  for such Payment Date, in each case to the extent of any
                  remaining Principal Funds and until the Note Principal Balance
                  thereof has been reduced to zero;

         (B)      SECOND, from any remaining Interest Funds, to the Class X-1
                  Notes, in an amount equal to the Accrued Note Interest on such
                  Class for such Payment Date (subject to Net Interest
                  Shortfalls allocated to such Class);

         (C)      FIRST, sequentially to the Class B-4, Class B-5 and Class B-6
                  Notes, in that order, up to an amount equal to and in the
                  following order with respect to each such Class: (a)

                                        7

<PAGE>

                  the Accrued Note Interest thereon for such Payment Date
                  (subject to Net Interest Shortfalls allocated to such Class)
                  to the extent of any remaining Interest Funds; (b) any Accrued
                  Note Interest thereon remaining undistributed from previous
                  Payment Dates, with accrued interest thereon, to the extent of
                  any remaining Interest Funds; and (c) such Class's Allocable
                  Share for such Payment Date, in each case to the extent of any
                  remaining Principal Funds and until the Note Principal Balance
                  thereof has been reduced to zero;

         (D)      SECOND, to the Class X-1 Notes, any remaining Interest Funds;
                  and

         (E)      THIRD, to the Certificate Paying Agent for distribution to the
                  Owner Trust Certificates as set forth in the Trust Agreement.

         (b)      On each Payment Date prior to the Cross-Over Date but after
                  the reduction of the Note Principal Balance of all of the
                  Senior Notes of a Note Group to zero, the remaining Class or
                  Classes of Senior Notes in the remaining Note Group will be
                  entitled to receive in reduction of their Notes Principal
                  Balances, pro rata based upon their Note Principal Balances
                  immediately prior to such Payment Date, in addition to any
                  Principal Prepayments related to such remaining Senior Notes'
                  respective Loan Group allocated to such Senior Notes, 100% of
                  the Principal Prepayments on any Mortgage Loan in the Loan
                  Group relating to the Class or Classes of Senior Notes of the
                  fully repaid Note Group; provided, however, that if (A) the
                  weighted average of the Subordinate Percentages on such
                  Payment Date equals or exceeds two times the initial weighted
                  average of the Subordinate Percentages and (B) the aggregate
                  Scheduled Principal Balance of the Mortgage Loans delinquent
                  60 days or more (including for this purpose any such Mortgage
                  Loans in foreclosure and bankruptcy and Mortgage Loans with
                  respect to which the related Mortgaged Property has been
                  acquired by the Trust), averaged over the last six months, as
                  a percentage of the aggregate Note Principal Balance of the
                  Subordinate Notes does not exceed 100%, then the additional
                  allocation of Principal Prepayments to the Senior Notes in
                  accordance with this clause (b) will not be made and 100% of
                  the Principal Prepayments on any Mortgage Loan in the Loan
                  Group relating to the fully repaid Class or Classes of Senior
                  Notes will be allocated to the Subordinate Notes.

         (c)      If on any Payment Date on which the aggregate Note Principal
                  Balance of Senior Notes in a Note Group would be greater than
                  the aggregate Scheduled Principal Balance of the Mortgage
                  Loans in the related Loan Group and any Subordinate Notes are
                  still outstanding, in each case after giving effect to
                  distributions to be made on such Payment Date, (A) 100% of
                  amounts otherwise allocable to the Subordinate Notes in
                  respect of principal will be distributed to such Class or
                  Classes of Senior Notes in reduction of the Note Principal
                  Balances thereof, until the aggregate Note Principal Balance
                  of such Class or Classes of Senior Notes is an amount equal to
                  the aggregate Scheduled Principal Balance of the Mortgage
                  Loans in the related Loan Group, and (B) the Accrued Note
                  Interest otherwise allocable to the Subordinate Notes on such
                  Payment Date will be reduced, if necessary, and distributed to
                  such Class or Classes of Senior Notes in an amount equal to
                  the Accrued Note Interest for such Payment Date on the excess
                  of (x) the aggregate Note Principal Balance of such Class or
                  Classes of Senior Notes over (y) the aggregate Scheduled
                  Principal Balance of the Mortgage Loans in the related Loan
                  Group. Any such reduction in the Accrued Note Interest on the
                  Subordinate Certificates will be allocated in reverse order of
                  the Subordinate Certificates numerical designations,
                  commencing with the Class B-6 Notes.

                                        8

<PAGE>

         (d) If, after distributions have been made pursuant to priorities FIRST
and SECOND of clauses (a)(I) and (II) above on any Payment Date, the remaining
Group I Available Funds and Group II Available Funds are less than the Group I
Senior Optimal Principal Amount and Group II Senior Optimal Principal Amount,
respectively, the Senior Optimal Principal Amount for such Loan Group shall be
reduced, and such remaining Available Funds for a Loan Group will be distributed
on the related Senior Notes, on a pro rata basis, on the basis of such reduced
amount.

         (e) No Accrued Note Interest will be payable with respect to any Class
of Notes after the Payment Date on which the Note Principal Balance or Notional
Amount of such Note has been reduced to zero.

         (f) If on any Payment Date the Interest Funds for the Senior Notes in
any Note Group is less than the Accrued Note Interest on the related Senior
Notes for such Payment Date prior to reduction for Net Interest Shortfalls and
the interest portion of Realized Losses, the shortfall will be allocated among
the holders of each Class of Senior Notes in such Note Group in proportion to
the respective amounts of Accrued Note Interest that would have been allocated
thereto in the absence of such Net Interest Shortfalls and/or Realized Losses
for such Payment Date. In addition, the amount of any interest shortfalls will
constitute unpaid Accrued Note Interest and will be distributable to holders of
the Notes of the related Classes entitled to such amounts on subsequent Payment
Dates, to the extent of the applicable Available Funds after current interest
distributions as required herein. Any such amounts so carried forward will bear
interest. Shortfalls in interest payments will not be offset by a reduction in
the servicing compensation of the Master Servicer or otherwise, except to the
extent of applicable Compensating Interest Payments.

         (g) Each distribution with respect to a Book-Entry Note shall be paid
to the Depository, as Holder thereof, and the Depository shall be responsible
for crediting the amount of such distribution to the accounts of its Depository
Participants in accordance with its normal procedures. Each Depository
Participant shall be responsible for disbursing such distribution to the Note
Owners that it represents and to each indirect participating brokerage firm (a
"brokerage firm" or "indirect participating firm") for which it acts as agent.
Each brokerage firm shall be responsible for disbursing funds to the Note Owners
that it represents. None of the Securities Administrator, the Note Registrar,
the Paying Agent, the Depositor or the Master Servicer shall have any
responsibility therefor.

         (h) On each Payment Date, the Certificate Paying Agent shall deposit in
the Certificate Distribution Account all amounts it received pursuant to this
Section 3.03 for the purpose of distributing such funds to the
Certificateholders. The Certificate Paying Agent shall make distributions to the
Certificateholders under the Trust Agreement as directed by the Securities
Administrator hereunder.

         (i) Any installment of interest or principal, if any, payable on any
Note that is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall, if such Holder shall have so requested at least
five Business Days prior to the related Record Date, be paid to each Holder of
record on the preceding Record Date, by wire transfer to an account specified in
writing by such Holder as of the preceding Record Date or in all other cases or
if no such instructions have been delivered to the Securities Administrator, by
check to such Noteholder mailed to such Holder's address as it appears in the
Note Register in the amount required to be distributed to such Holder on

                                        9

<PAGE>

such Payment Date pursuant to such Holder's Notes; PROVIDED, HOWEVER, that the
Securities Administrator shall not pay to such Holders any amount required to be
withheld from a payment to such Holder by the Code.

         (j) The Note Principal Balance of each Note shall be due and payable in
full on the Final Scheduled Payment Date for such Note as provided in the forms
of Note set forth in Exhibits A-1, A-2, A-3 and A-4 to this Indenture. All
principal payments on the Notes shall be made to the Noteholders entitled
thereto in accordance with the Percentage Interests represented by such Notes.
Upon notice to the Securities Administrator by the Issuer, the Securities
Administrator shall notify the Person in whose name a Note is registered at the
close of business on the Record Date preceding the Final Scheduled Payment Date
or other final Payment Date (including any final Payment Date resulting from any
redemption pursuant to Section 8.06 hereof). Such notice shall to the extent
practicable be mailed no later than five Business Days prior to such Final
Scheduled Payment Date or other final Payment Date and shall specify that
payment of the principal amount and any interest due with respect to such Note
at the Final Scheduled Payment Date or other final Payment Date 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 such final payment. No
interest shall accrue on the Notes on or after the Final Scheduled Payment Date
or any such other final Payment Date.

         Section 3.04 PROTECTION OF TRUST ESTATE. (a) The Issuer will from time
to time prepare, execute and deliver all such supplements and amendments hereto
and all such financing statements, continuation statements, instruments of
further assurance and other instruments, and will take such other action
necessary or advisable to:

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

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

                           (iii) enforce any provision of the Grantor Trust
         Certificate or Grantor Trust Agreement; or

                           (iv) preserve and defend title to the Trust Estate
         and the rights of the Indenture Trustee and the Noteholders in such
         Trust Estate against the claims of all persons and parties.

         (b) Except as otherwise provided in this Indenture, the Indenture
Trustee shall not remove or permit the Custodian to remove any portion of the
Trust Estate that consists of money or is evidenced by an instrument,
certificate or other writing from the jurisdiction in which it was held at the
date of the most recent Opinion of Counsel delivered pursuant to Section 3.05
hereof (or from the jurisdiction in which it was held as described in the
Opinion of Counsel delivered on the Closing Date pursuant to Section 3.05(a)
hereof, if no Opinion of Counsel has yet been delivered pursuant to Section
3.05(b) hereof), unless the Indenture Trustee shall have first received an
Opinion of Counsel to the effect that the lien and security interest created by
this Indenture with respect to such property will continue to be maintained
after giving effect to such action or actions.

                                       10

<PAGE>

         The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to sign any financing statement, continuation statement or
other instrument required to be signed pursuant to this Section 3.04 upon the
Issuer's preparation thereof and delivery to the Indenture Trustee.

         Section 3.05 OPINIONS AS TO TRUST ESTATE. (a) On the Closing Date, the
Issuer shall furnish to the Indenture Trustee and the Owner Trustee an Opinion
of Counsel either stating that, 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 perfect and make effective the lien and first
priority security interest in the Collateral and reciting the details of such
action, or stating that, in the opinion of such counsel, no such action is
necessary to make such lien and first priority security interest effective.

         (b) On or before December 31st in each calendar year, beginning in
2005, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel at
the expense of the Issuer either stating that, in the opinion of such counsel,
such action has been taken with respect to the recording, filing, rerecording
and refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as is necessary to maintain the
lien and security interest in the Collateral and reciting the details of such
action or stating that in the opinion of such counsel no such action is
necessary to maintain such lien and security interest. Such Opinion of Counsel
shall also describe the recording, filing, re-recording and refiling of this
Indenture, any indentures supplemental hereto and any other requisite documents
and the execution and filing of any financing statements and continuation
statements that will, in the opinion of such counsel, be required to maintain
the lien and security interest in the Collateral until December 31 in the
following calendar year.

         Section 3.06 PERFORMANCE OF OBLIGATIONS. (a) The Issuer will punctually
perform and observe all of its obligations and agreements contained in this
Indenture, the Basic Documents and in the instruments and agreements included in
the Trust Estate.

         (b) The Issuer may contract with other Persons to assist it in
performing its duties under this Indenture, and any performance of such duties
by a Person identified to the Indenture Trustee in an Officer's Certificate of
the Issuer shall be deemed to be action taken by the Issuer.

         (c) The Issuer will not take any action or permit any action to be
taken by others which would release any Person from any of such Person's
covenants or obligations under any of the documents relating to the Grantor
Trust Certificate or under any instrument included in the Trust Estate, or which
would result in the amendment, hypothecation, subordination, termination or
discharge of, or impair the validity or effectiveness of, any of the documents
relating to the Grantor Trust Certificate or any such instrument, except such
actions as the Master Servicer is expressly permitted to take in the Servicing
Agreement.

         (d) The Issuer may retain an administrator and may enter into contracts
with other Persons for the performance of the Issuer's obligations hereunder,
and performance of such obligations by such Persons shall be deemed to be
performance of such obligations by the Issuer.

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<PAGE>

         Section 3.07 NEGATIVE COVENANTS. So long as any Notes are Outstanding
or the Majority Certificateholder owns 100% of the Securities, the Issuer shall
not:

                           (i) except as expressly permitted by this Indenture,
         sell, transfer, exchange or otherwise dispose of the Trust Estate.

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

                           (iii) (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 Trust Estate or any part thereof or any interest therein or
         the proceeds thereof or (C) permit the lien of this Indenture not to
         constitute a valid first priority security interest in the Trust
         Estate; or

                           (iv) waive or impair, or fail to assert rights under,
         the Grantor Trust Certificate, or impair or cause to be impaired the
         Issuer's interest in the Grantor Trust Certificate, the Mortgage Loan
         Purchase Agreement or in any Basic Document, if any such action would
         materially and adversely affect the interests of the Noteholders.

         Section 3.08 ANNUAL STATEMENT AS TO COMPLIANCE. The Issuer will deliver
to the Indenture Trustee, by March 1 of each year commencing with the calendar
year 2006, 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
         the previous calendar year and of its performance under this Indenture
         and the Owner Trust Agreement 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 and the provisions of the
         Owner Trust Agreement throughout such year, or, if there has been a
         default in its compliance with any such condition or covenant,
         specifying each such default known to such Authorized Officer and the
         nature and status thereof.

         Section 3.09 [RESERVED]

         Section 3.10 REPRESENTATIONS AND WARRANTIES CONCERNING THE GRANTOR
TRUST CERTIFICATE. The Indenture Trustee, as pledgee of the Class A Grantor
Trust Certificate, has the benefit of the representations and warranties made by
the Seller in Section 7 of the Mortgage Loan Purchase Agreement concerning the
Mortgage Loans and the right to enforce the remedies against the Seller

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<PAGE>

provided in such Section 5 or Section 7 to the same extent as though such
representations and warranties were made directly to the Indenture Trustee. If a
Responsible Officer of the Indenture Trustee has actual knowledge of any breach
of any representation or warranty made by the Seller in the Mortgage Loan
Purchase Agreement, the Indenture Trustee shall promptly notify the Seller of
such finding and of the Seller's obligation to cure such defect or repurchase or
substitute for the related Mortgage Loan.

         Section 3.11 INVESTMENT COMPANY ACT. The Issuer shall not become an
"investment company" or be under the "control" of an "investment company" as
such terms are defined in the Investment Company Act of 1940, as amended (or any
successor or amendatory statute), and the rules and regulations thereunder
(taking into account not only the general definition of the term "investment
company" but also any available exceptions to such general definition);
PROVIDED, HOWEVER, that the Issuer shall be in compliance with this Section 3.11
if it shall have obtained an order exempting it from regulation as an
"investment company" so long as it is in compliance with the conditions imposed
in such order.

         Section 3.12 ISSUER MAY CONSOLIDATE, ETC. (a) The Issuer shall not
consolidate or merge with or into any other Person, unless:

                           (i) the Person (if other than the Issuer) formed by
         or surviving such consolidation or merger shall be a Person organized
         and existing under the laws of the United States of America or any
         state or the District of Columbia and shall expressly assume, by an
         indenture supplemental hereto, executed and delivered to the Indenture
         Trustee, in form reasonably satisfactory to the Indenture Trustee, the
         due and punctual payment of the principal of and interest on all Notes,
         and all amounts payable to the Indenture Trustee and the Securities
         Administrator, the payment to the Certificate Paying Agent of all
         amounts due to the Certificateholders, and the performance or
         observance of every agreement and covenant of this Indenture on the
         part of the Issuer to be performed or observed, all as provided herein;

                           (ii) immediately after giving effect to such
         transaction, no Default or Event of Default shall have occurred and be
         continuing;

                           (iii) each of the Rating Agencies shall have notified
         the Issuer that such transaction shall not cause the rating of the
         Notes to be reduced, qualified, suspended or withdrawn or to be
         considered by either Rating Agency to be below investment grade;

                           (iv) the Issuer shall have received an Opinion of
         Counsel (and shall have delivered a copy thereof to the Indenture
         Trustee and the Securities Administrator) to the effect that such
         transaction will not (A) result in a "substantial modification" of the
         Notes under Treasury Regulation Section 1.1001-3, or cause the Classes
         of Notes characterized as indebtedness for federal income tax purposes
         to cease to be characterized as such, and (B) if 100% of the
         Certificates and Notes (other than any Class of Notes with respect to
         which a "will be debt" opinion has been rendered by nationally
         recognized tax counsel) are not owned by the Investor, cause the Trust
         to be subject to an entity level tax for federal income tax purposes;

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<PAGE>

                           (v) any action that is necessary to maintain the lien
         and security interest created by this Indenture shall have been taken;

                           (vi) the Issuer shall have delivered to the Indenture
         Trustee an Officer's Certificate and an Opinion of Counsel each stating
         that such consolidation or merger and such supplemental indenture
         comply with this Article III and that all conditions precedent herein
         provided for or relating to such transaction have been complied with
         (including any filing required by the Exchange Act), and that such
         supplemental indenture is enforceable.

         (b) The Issuer shall not convey or transfer any of its properties or
assets, including those included in the Trust Estate, to any Person, unless:

                           (i) the Person that acquires by conveyance or
         transfer the properties and assets of the Issuer, the conveyance or
         transfer of which is hereby restricted, shall (A) be a United States
         citizen or a Person organized and existing under the laws of the United
         States of America or any state thereof, (B) expressly assume, by an
         indenture supplemental hereto, executed and delivered to the Indenture
         Trustee, in form satisfactory to the Indenture Trustee, the due and
         punctual payment of the principal of and interest on all Notes and the
         performance or observance of every agreement and covenant of this
         Indenture on the part of the Issuer to be performed or observed, all as
         provided herein, (C) expressly agree by means of such supplemental
         indenture that all right, title and interest so conveyed or transferred
         shall be subject and subordinate to the rights of the Holders of the
         Notes, (D) unless otherwise provided in such supplemental indenture,
         expressly agree to indemnify, defend and hold harmless the Issuer and
         the Indenture Trustee against and from any loss, liability or expense
         arising under or related to this Indenture and the Notes and (E)
         expressly agree by means of such supplemental indenture that such
         Person (or if a group of Persons, then one specified Person) shall make
         all filings with the Commission (and any other appropriate Person)
         required by the Exchange Act in connection with the Notes;

                           (ii) immediately after giving effect to such
         transaction, no Default or Event of Default shall have occurred and be
         continuing;

                           (iii) each of the Rating Agencies shall have notified
         the Issuer that such transaction shall not cause the ratings of the
         Notes to be reduced, qualified, suspended or withdrawn;

                           (iv) the Issuer shall have received an Opinion of
         Counsel (and shall have delivered a copy thereof to the Indenture
         Trustee) to the effect that such transaction will not (A) result in a
         "substantial modification" of the Notes under Treasury Regulation
         Section 1.1001-3, or cause the Classes of Notes characterized as
         indebtedness for federal income tax purposes to cease to be
         characterized as such, and (B) if 100% of the Certificates and Notes
         (other than any Class of Notes with respect to which a "will be debt"
         opinion has been rendered by nationally recognized tax counsel) are not
         owned by the Investor, cause the Trust to be subject to an entity level
         tax for federal income tax purposes;

                                       14

<PAGE>

                           (v) any action that is necessary to maintain the lien
         and security interest created by this Indenture shall have been taken;

                           (vi) the Issuer shall have delivered to the Indenture
         Trustee an Officer's Certificate and an Opinion of Counsel each stating
         that such conveyance or transfer and such supplemental indenture comply
         with this Article III and that all conditions precedent herein provided
         for relating to such transaction have been complied with (including any
         filing required by the Exchange Act).

         Section 3.13 SUCCESSOR OR TRANSFEREE. (a) Upon any consolidation or
merger of the Issuer in accordance with Section 3.12(a), the Person formed by or
surviving such consolidation or merger (if other than the Issuer) shall,
following the Issuer's satisfaction of all of the conditions precedent set forth
therein with respect thereto, succeed to, and be substituted for, and may
exercise every right and power of, the Issuer under this Indenture with the same
effect as if such Person had been named as the Issuer herein.

         (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.12(b), the Issuer, following its satisfaction
of all of the conditions precedent set forth herein with respect thereto, will
be released from every covenant and agreement of this Indenture to be observed
or performed on the part of the Issuer with respect to the Notes immediately
upon the delivery of written notice to the Indenture Trustee of such conveyance
or transfer.

         Section 3.14 NO OTHER BUSINESS. The Issuer shall not engage in any
business other than as set forth with respect thereto in the Trust Agreement and
other than financing, purchasing, owning and selling and managing the Grantor
Trust Certificate and the issuance of the Certificates in the manner
contemplated by this Indenture and the Basic Documents and all activities
incidental thereto.

         Section 3.15 NO BORROWING. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Notes under this Indenture.

         Section 3.16 GUARANTEES, LOANS, MONTHLY ADVANCES AND OTHER LIABILITIES.
Except as contemplated by this Indenture or the Basic Documents, the Issuer
shall not make any loan or advance or credit to, or guarantee (directly or
indirectly or by an instrument having the effect of assuring another's payment
or performance on any obligation or capability of so doing or otherwise),
endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase,
repurchase or acquire (or agree contingently to do so) any stock, obligations,
assets or securities of, or any other interest in, or make any capital
contribution to, any other Person.

         Section 3.17 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 3.18 DETERMINATION OF NOTE INDEX.

                                       15

<PAGE>

         On each Interest Determination Date, the Securities Administrator will
determine the One-Year U.S. Treasury Note Index for the next Interest Accrual
Period for the Class A-1 Notes and the Class A-3 Notes and the One-Year LIBOR
Note Index for the next Interest Accrual Period for the Class A-2 Notes and the
Class A-4 Notes.

         On each Interest Determination Date for the Class A-1 Notes and the
Class A-3 Notes, the One-Year U.S. Treasury Note Index will be based on the
weekly average yield on U.S. Treasury securities adjusted to a constant maturity
of one year as reported in the Release on the related Interest Determination
Date or, if not so available, as most recently available immediately prior to
such Interest Determination Date.

         On each Interest Determination Date for the Class A-2 Notes and the
Class A-4 Notes, the One-Year U.S. LIBOR Note Index will be based on the London
interbank offered rate for one-year United States dollar deposits as such rate
appears on the Telerate Screen Page 3750, as of 11:00 a.m. (London time) on such
Interest Determination Date. If the rate for the One-Year LIBOR Note Index does
not appear or is not available on Telerate Screen Page 3750, the One-Year LIBOR
Note Index for the related Interest Accrual Period for the Class A-2 Notes and
the Class A-4 Notes will be established by the Securities Administrator as
follows:

         (a) If on such Interest Determination Date two or more Reference Banks
provide such offered quotations, the One-Year LIBOR Note Index for the related
Interest Accrual Period shall be the arithmetic mean of such offered quotations
(rounded upwards if necessary to the nearest whole multiple of 0.0625%).

         (b) If on such Interest Determination Date fewer than two Reference
Banks provide such offered quotations, the One-Year LIBOR Note Index for the
related Interest Accrual Period shall be the higher of (x) the One-Year LIBOR
Note Index as determined on the previous Interest Determination Date and (y) the
Reserve Interest Rate.

         The establishment of the One-Year U.S. Treasury Note Index and the
One-Year LIBOR Note Index on each Interest Determination Date by the Securities
Administrator and the Securities Administrator's calculation of the rate of
interest applicable to the related Class of Notes for the related Interest
Accrual Period shall (in the absence of manifest error) be final and binding.

         Section 3.19 RESTRICTED PAYMENTS. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for
value any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose; PROVIDED, HOWEVER, that
the Issuer may make, or cause to be made, (x) distributions and payments to the
Owner Trustee, the Indenture Trustee, the Securities Administrator, the Master
Servicer, the Servicer, the Certificate Registrar, the Certificate Paying Agent,
the Noteholders and the Certificateholders as contemplated by, and to the extent
funds are available for such purpose under this Indenture and the Basic
Documents and (y) payments to the Master Servicer and the Servicer pursuant to
the terms of the Servicing Agreement and the Wells Fargo Servicing Agreement.
The Issuer will not, directly or

                                       16

<PAGE>

indirectly, make payments to or distributions from the Master Servicer
Collection Account or the Payment Account except in accordance with this
Indenture and the Basic Documents.

         Section 3.20 NOTICE OF EVENTS OF DEFAULT. The Issuer shall give the
Indenture Trustee, the Securities Administrator and each Rating Agency prompt
written notice of each Event of Default hereunder.

         Section 3.21 FURTHER INSTRUMENTS AND ACTS. Upon request of the
Indenture Trustee, 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 3.22 ACTIONS BY THE INVESTOR. So long as the Investor owns 100%
of the Securities, the Investor shall not amend, modify or otherwise change the
activities permitted by the Issuer hereunder.

         Section 3.23      CERTAIN REPRESENTATIONS REGARDING THE TRUST ESTATE.

         (a) With respect to that portion of the Collateral described in clauses
(a) through (c) of the definition of Trust Estate, the Issuer represents to the
Indenture Trustee that:

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

                  (ii) The Collateral constitutes "deposit accounts" or
"instruments," as applicable within the meaning of the applicable UCC.

                  (iii) The Issuer owns and has good and marketable title to the
Collateral, free and clear of any lien, claim or encumbrance of any Person.

                  (iv) The Issuer has taken all steps necessary to cause the
Indenture Trustee to become the account holder of the Collateral.

                  (v) 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.

                  (vi) The Collateral is not in the name of any Person other
than the Issuer or the Indenture Trustee. The Issuer has not consented to the
bank maintaining the Collateral to comply with instructions of any Person other
than the Indenture Trustee.

         Section 3.24 ALLOCATION OF REALIZED LOSSES. (a) On or prior to each
Payment Date, the Master Servicer shall determine, based solely on information
provided to it by the related Servicer the amount of any Realized Loss in
respect of each Mortgage Loan that occurred during the immediately preceding
calendar month.

                                       17

<PAGE>

         (b) With respect to any Notes (other than the Class X-1 Notes) on any
Payment Date, the principal portion of each Realized Loss on a Mortgage Loan
shall be allocated as follows:

         FIRST, to the Class B-6 Notes until the Note Principal Balance thereof
has been reduced to zero;

         SECOND, to the Class B-5 Notes until the Note Principal Balance thereof
has been reduced to zero;

         THIRD, to the Class B-4 Notes until the Note Principal Balance thereof
has been reduced to zero;

         FOURTH, to the Class B-3 Notes until the Note Principal Balance thereof
has been reduced to zero;

         FIFTH, to the Class B-2 Notes until the Note Principal Balance thereof
has been reduced to zero; and

         SIXTH, to the Class B-1 Notes until the Note Principal Balance thereof
has been reduced to zero; and

         SEVENTH, with respect to the principal portion of Realized Losses on
the Group I Loans, first, to the Class A-3 Notes until the Note Principal
Balance thereof has been reduced to zero and second, to the Class A-1 Notes
until the Note Principal Balance thereof has been reduced to zero; and with
respect to the principal portion of Realized Losses on the Group II Loans,
first, to the Class A-4 Notes until the Note Principal Balance thereof has been
reduced to zero and second, to the Class A-2 Notes until the Note Principal
Balance thereof has been reduced to zero.

         (c) Notwithstanding the foregoing clause (b), no such allocation of any
Realized Loss shall be made on a Payment Date to any Class or Classes of Notes
to the extent that such allocation would result in the reduction of the
aggregate Note Principal Balance of all of the Classes of Notes as of such
Payment Date, after giving effect to all distributions and prior allocations of
Realized Losses on such date, to an amount less than the aggregate Scheduled
Principal Balance of the Mortgage Loans as of the related Due Date (such
limitation, the "Loss Allocation Limitation").

         (d) The principal portion of any Realized Losses allocated to a Class
of Notes shall be allocated among the Notes of such Class (other than the Class
X-1 Notes) in proportion to their respective Note Principal Balances. Any
allocation of Realized Losses shall be accomplished by reducing the Note
Principal Balance of the Notes on the related Payment Date.

         (e) Realized Losses shall be allocated on the Payment Date in the month
following the month in which such loss was incurred and, in the case of the
principal portion thereof, after giving effect to distributions made on such
Payment Date.

         (f) On each Payment Date, the Securities Administrator shall determine
the Subordinate Writedown Amount. Any such Subordinate Writedown Amount shall
effect a corresponding reduction in the Note Principal Balance of (i) with
respect to the Subordinate Writedown Amount,

                                       18

<PAGE>

if prior to the Cross-Over Date, the Class B-6, Class B-5, Class B-4, Class B-3,
Class B-2 and Class B-1 Notes, in that order, and (iii) from and after the
Cross-Over Date, to the Senior Notes, in accordance with priorities set forth in
clause (b) above, in each case, on such Payment Date after giving effect to
distributions made on such Payment Date.

         (g) Any Net Interest Shortfalls shall be allocated sequentially to the
Class B-6, Class B-5, Class B-4, Class X-1, Class B-3, Class B-2, Class B-1,
Class A-2 and Class A-1 Notes, in that order, in proportion to the respective
amounts of Accrued Note Interest that would have been allocated thereto in the
absence of such Net Interest Shortfalls for such Payment Date. The interest
portion of any Realized Losses with respect to the Mortgage Loans occurring on
or prior to the Cross-Over Date will be borne sequentially to the Class B-6,
Class B-5, Class B-4, Class X-1, Class B-3, Class B-2 and Class B-1, in that
order. Once the aggregate Note Principal Balance or Notional amount, as
applicable, of the Subordinate Notes have been reduced to zero, the interest
portion of Realized Losses on the Group I Loans will be allocated first to the
Class A-3 Notes, and then to the Class A-1 Notes, and the interest portion of
Realized Losses on the Group II Loans will be allocated first to the Class A-4
Notes, and then to the Class A-2 Notes, in each case in reduction Accrued Note
Interest on such Class.

         (h) In addition, in the event that the Securities Administrator
receives any Subsequent Recoveries from the Servicer or Master Servicer, the
Securities Administrator shall deposit such funds into the Payment Account
pursuant to Section 3.01 of this Indenture. If, after taking into account such
Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of
such Subsequent Recoveries will be applied to increase the Note Principal
Balance of the Notes with the highest payment priority to which Realized Losses
have been allocated, but not by more than the amount of Realized Losses
previously allocated to that Class or Classes of Notes pursuant to this Section
3.24. The amount of any Subsequent Recoveries following the application set
forth in the immediately preceding sentence will be applied to sequentially
increase the Note Principal Balance of the Notes, beginning with the Class of
Notes with the next highest payment priority, up to the amount of such Realized
Losses previously allocated to such Class or Classes of Notes pursuant to this
Section 3.24. Holders of such Notes will not be entitled to any payments in
respect of Accrued Note Interest on the amount of such increases for any
Interest Accrual Period preceding the Payment Date on which such increase
occurs. Any such increases shall be applied to the Note Principal Balance of the
Notes of such Class in accordance with its respective Percentage Interest.

         Section 3.25 PERMITTED WITHDRAWALS AND TRANSFERS FROM THE PAYMENT
ACCOUNT. (a) The Securities Administrator will, from time to time on demand of
the Master Servicer, make or cause to be made such withdrawals or transfers from
the Payment Account as the Master Servicer has designated for such transfer or
withdrawal pursuant to the Servicing Agreement or as the Securities
Administrator has instructed hereunder for the following purposes (limited in
the case of amounts due the Master Servicer to those not withdrawn from the
Master Servicer Collection Account) but not in any order of priority:

                  (i) to reimburse the Master Servicer or the Servicer for any
 Monthly Advance of its own funds, the right of the Master Servicer or the
 Servicer to reimbursement pursuant to this
subclause (i) being limited to amounts received on a particular Mortgage Loan
(including, for this purpose, the Repurchase Price therefor, Insurance Proceeds
and Liquidation Proceeds) which

                                       19

<PAGE>

represent late payments or recoveries of the principal of or interest on such
Mortgage Loan respecting which such Monthly Advance was made;

                  (ii) to reimburse the Master Servicer or the 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 the 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 the Servicer from Liquidation Proceeds from a particular Mortgage Loan for
Liquidation Expenses incurred with respect to such Mortgage Loan; provided that
the Master Servicer shall not be entitled to reimbursement for Liquidation
Expenses with respect to a Mortgage Loan to the extent that (i) any amounts with
respect to such Mortgage Loan were paid as Excess Liquidation Proceeds pursuant
to clause (viii) of this Subsection 3.25 (a) to the Master Servicer; and (ii)
such Liquidation Expenses were not included in the computation of such Excess
Liquidation Proceeds;

                  (iv) to reimburse the Master Servicer or the Servicer for
advances of funds (other than Monthly Advances) made with respect to the
Mortgage Loans, and the right to reimbursement pursuant to this subclause being
limited to amounts received on the related Mortgage Loan (including, for this
purpose, the Repurchase Price therefor, Insurance Proceeds and Liquidation
Proceeds) which represent late recoveries of the payments for which such
advances were made;

                  (v) to reimburse the Master Servicer or the Servicer for any
Monthly Advance or advance, after a Realized Loss has been allocated with
respect to the related Mortgage Loan if the Monthly Advance or advance has not
been reimbursed pursuant to clauses (i) and (iv);

                  (vi) to pay the Master Servicer as set forth in Section 2.13
of the Servicing Agreement; provided however, that the Master Servicer shall be
obligated to pay from its own funds any amounts which it is required to pay
under Section 4.03 of the Servicing Agreement;

                  (vii) to reimburse the Master Servicer for expenses, costs and
liabilities incurred by and reimbursable to it pursuant to the Servicing
Agreement, to the extent that the Master Servicer has not already reimbursed
itself for such amounts from the Master Servicer Collection Account;

                  (viii) to pay to the Master Servicer, as additional servicing
compensation, any Excess Liquidation Proceeds to the extent not retained by the
Servicer;

                  (ix) to reimburse or pay the Servicer any such amounts as are
due thereto under the Wells Fargo Servicing Agreement and have not been retained
by or paid to the Servicer, to the extent provided in the Wells Fargo Servicing
Agreement;

                  (x) to reimburse or pay the Indenture Trustee, the Grantor
Trustee, the Owner

                                       20

<PAGE>

Trustee, the Securities Administrator and the Master Servicer any amounts due or
expenses, costs and liabilities incurred by or reimbursable to such Persons
pursuant to this Agreement or any other Basic Documents, to the extent such
amounts have not already been previously paid or reimbursed to such party from
the Master Servicer Collection Account;

                  (xi) to remove amounts deposited in error; and

                  (xii) to pay to the Holder of the Class B Grantor Trust
                  Certificate any investment income due and payable to it
                  pursuant to this Indenture or the Servicing Agreement.

                                       21

<PAGE>

                                   ARTICLE IV

               The Notes; Satisfaction and Discharge of Indenture

         Section 4.01 THE NOTES. Each Class of Class A-1 Notes and Class A-2
Notes shall be registered in the name of a nominee designated by the Depository.
Beneficial Owners will hold interests in the Class A-1 Notes and Class A-2 Notes
through the book-entry facilities of the Depository in minimum initial Note
Principal Balances of $25,000 and integral multiples of $1 in excess thereof.
Registered Holders will hold interests in the Class X-1 Notes in physical form
in minimum initial Notional Amount of $25,000 and integral multiples of $1 in
excess thereof. Registered Holders will hold interests in the Class A-3, Class
A-4, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Notes
in physical form in minimum initial Note Principal Balances of $25,000 and
integral multiples of $1 in excess thereof.

         The Indenture Trustee and Securities Administrator may for all purposes
(including the making of payments due on the Notes) deal with the Depository as
the authorized representative of the Beneficial Owners with respect to the Notes
for the purposes of exercising the rights of Holders of the Notes hereunder.
Except as provided in the next succeeding paragraph of this Section 4.01, the
rights of Beneficial Owners with respect to the Notes shall be limited to those
established by law and agreements between such Beneficial Owners and the
Depository and Depository Participants. Except as provided in Section 4.08
hereof, Beneficial Owners shall not be entitled to definitive certificates for
the Notes as to which they are the Beneficial Owners. Requests and directions
from, and votes of, the Depository as Holder of the Notes shall not be deemed
inconsistent if they are made with respect to different Beneficial Owners. The
Securities Administrator may establish a reasonable record date in connection
with solicitations of consents from or voting by Noteholders and give notice to
the Depository of such record date. Without the consent of the Issuer and the
Securities Administrator, no Note may be transferred by the Depository except to
a successor Depository that agrees to hold such Note for the account of the
Beneficial Owners.

         In the event the Depository Trust Company resigns or is removed as
Depository, the Depositor may appoint a successor Depository. If no successor
Depository has been appointed within 30 days of the effective date of the
Depository's resignation or removal, each Beneficial Owner shall be entitled to
certificates representing the Notes it beneficially owns in the manner
prescribed in Section 4.08.

         The Notes shall, on original issue, be executed on behalf of the Issuer
by the Owner Trustee, not in its individual capacity but solely as Owner
Trustee, authenticated by the Securities Administrator and delivered by the
Securities Administrator to or upon the order of the Issuer.

         Section 4.02 REGISTRATION OF AND LIMITATIONS ON TRANSFER AND EXCHANGE
OF NOTES; APPOINTMENT OF NOTE REGISTRAR AND CERTIFICATE REGISTRAR. The Issuer
shall cause to be kept at the Corporate Trust Office of the Securities
Administrator a Note Register in which, subject to such reasonable regulations
as it may prescribe, the Note Registrar shall provide for the registration of
Notes and of transfers and exchanges of Notes as herein provided.

                                       22

<PAGE>

         Subject to the restrictions and limitations set forth below, upon
surrender for registration of transfer of any Note at the Corporate Trust Office
of the Securities Administrator, the Issuer shall execute and the Note Registrar
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Notes in authorized initial Note Principal Balances
evidencing the same Class and aggregate Percentage Interests.

         No transfer, sale, pledge or other disposition of any Privately Offered
Note or interest therein shall be made unless that transfer, sale, pledge or
other disposition is exempt from the registration and/or qualification
requirements of the Securities Act and any applicable state securities laws, or
is otherwise made in accordance with the Securities Act and such state
securities laws. If a transfer of any Privately Offered Note is to be made
without registration under the Securities Act (other than in connection with the
initial issuance thereof or a transfer thereof to the Depositor or one of its
Affiliates), then the Note Registrar shall refuse to register such transfer
unless (i) it receives (and upon receipt, may conclusively rely upon) a
certificate substantially in the form attached as Exhibit C hereto (provided,
however, that in the case of the Book-Entry Notes, the Noteholder and the
Noteholder's prospective transferee will be deemed to have made the
representations set forth in such certification) or (ii) (a) it receives a
written Opinion of Counsel acceptable to and in form and substance satisfactory
to the Note Registrar, the Securities Administrator and the Indenture Trustee
that such transfer may be made pursuant to an exemption, describing the
applicable exemption and the basis therefor, from the Securities Act and any
applicable state securities laws or is being made pursuant to the Securities Act
and any applicable state securities laws, which Opinion of Counsel shall not be
an expense of the Issuer, the Seller, the Owner Trustee, the Indenture Trustee,
the Securities Administrator, the Master Servicer or any Servicer and (b) the
transferee executes a representation letter, substantially in the form of
Exhibit D attached hereto, and transferor executes a representation letter,
substantially in the form of Exhibit E hereto, each acceptable to and in form
and substance satisfactory to the Note Registrar, the Securities Administrator
and the Indenture Trustee certifying the facts surrounding such transfer, which
representation letters shall not be an expense of the Issuer, the Seller, the
Owner Trustee, the Indenture Trustee, the Securities Administrator, the Master
Servicer or any Servicer. None of the Issuer, the Depositor, the Indenture
Trustee, the Securities Administrator or the Note Registrar is obligated to
register or qualify any Notes under the Securities Act or any other securities
law or to take any action not otherwise required under this Indenture to permit
the transfer of any Note or interest therein without registration or
qualification. Any Noteholder desiring to effect a transfer of Notes or
interests therein shall, and does hereby agree to, indemnify the Issuer, the
Depositor, the Owner Trustee, the Indenture Trustee, the Securities
Administrator and the Note Registrar against any liability that may result if
the transfer is not so exempt or is not made in accordance with such federal and
state laws or in accordance with any restrictions on transfer set forth in this
Indenture. Notwithstanding the foregoing, the provisions of this paragraph shall
not apply to the initial transfer of the Notes to the Depositor or any Affiliate
thereof.

         No transfer, sale, pledge or other disposition of any Class A-3 Notes,
Class A-4 Notes or Subordinate Notes (other than any Class A-3 Notes, Class A-4
Notes or Subordinate Notes with respect to which a "will be debt" opinion has
been rendered by nationally recognized tax counsel and furnished to the
Securities Administrator) or interest therein shall be made, and the Note
Registrar shall refuse to register any such transfer, sale, pledge or other
disposition, so long as the Class A-1 Notes and Class A-2 Notes, and any Class
A-3 Notes, Class A-4 Notes or Subordinate Notes with

                                       23

<PAGE>

respect to which a "will be debt" opinion has been rendered by nationally
recognized tax counsel, are outstanding, unless the transferee shall have
delivered to the Owner Trustee, the Note Registrar, the Securities Administrator
and the Indenture Trustee a certificate substantially in the form of Exhibit F
hereto certifying that (i) it is a real estate investment trust ("REIT") or a
qualified REIT subsidiary ("QRS") within the meaning of Section 856(a) or
Section 856(i) of the Code or an entity disregarded as an entity separate from a
REIT or a QRS and (ii) following the transfer, 100% of the Certificates and
Class A-3 Notes, Class A-4 Notes and Subordinate Notes (other than any Class A-3
Notes, Class A-4 Notes or Subordinate Notes with respect to which a "will be
debt" opinion has been rendered by nationally recognized tax counsel and
furnished to the Securities Administrator) will be owned by a REIT, directly or
indirectly through one or more qualified QRSs of such REIT or one or more
entities disregarded as entities separate from such REIT or such QRSs; provided
that (x) any Class A-3 Notes, Class A-4 Notes or Subordinate Notes may be
pledged to secure indebtedness and may be the subject of repurchase agreements
treated as secured indebtedness for federal income tax purposes, and (y) any
Class A-3 Notes, Class A-4 Notes or Subordinate Notes may be transferred by the
related lender under any such related loan agreement or repurchase agreement
upon a default under any such indebtedness, in which case the transferor shall
deliver to the Note Registrar, the Securities Administrator, the Owner Trustee
and the Indenture Trustee a certificate substantially in the form attached
hereto as Exhibit G certifying to such effect.

         Subject to the foregoing, and Section 4.08, Notes may be exchanged for
other Notes of like tenor and in authorized initial Note Principal Balances
evidencing the same Class and aggregate Percentage Interests upon surrender of
the Notes to be exchanged at the Corporate Trust Office of the Note Registrar.
Whenever any Notes are so surrendered for exchange, the Issuer shall execute and
the Securities Administrator shall authenticate and deliver the Notes which the
Noteholder making the exchange is entitled to receive. Each Note presented or
surrendered for registration of transfer or exchange shall (if so required by
the Note Registrar) be duly endorsed by, or be accompanied by a written
instrument of transfer in form reasonably satisfactory to the Note Registrar
duly executed by the Holder thereof or his attorney duly authorized in writing
with such signature guaranteed by a commercial bank or trust company located or
having a correspondent located in the city of New York. Notes delivered upon any
such transfer or exchange will evidence the same obligations, and will be
entitled to the same rights and privileges, as the Notes surrendered.

         No service charge shall be made for any registration of transfer or
exchange of Notes, but the Note Registrar shall require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes.

         The Issuer hereby appoints the Securities Administrator as (i)
Certificate Registrar to keep at its Corporate Trust Office a Certificate
Register pursuant to Section 3.08 of the Trust Agreement in which, subject to
such reasonable regulations as it may prescribe, the Certificate Registrar shall
provide for the registration of Certificates and of transfers and exchanges
thereof pursuant to Section 3.04 of the Trust Agreement and (ii) Note Registrar
under this Indenture. The Securities Administrator hereby accepts such
appointments.

         Section 4.03 MUTILATED, DESTROYED, LOST OR STOLEN NOTES. If (i) any
mutilated Note is surrendered to the Securities Administrator, or the Securities
Administrator receives evidence to its

                                       24

<PAGE>

satisfaction of the destruction, loss or theft of any Note, and (ii) there is
delivered to the Securities Administrator such security or indemnity as may be
required by it to hold the Issuer and the Securities Administrator harmless,
then, in the absence of notice to the Issuer, the Note Registrar or the
Securities Administrator that such Note has been acquired by a bona fide
purchaser, and provided that the requirements of Section 8-405 of the UCC are
met, the Issuer shall execute, and upon its request the Securities Administrator
shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note; PROVIDED,
HOWEVER, that if any such destroyed, lost or stolen Note, but not a mutilated
Note, shall have become or within seven days shall be due and payable, instead
of issuing a replacement Note, the Issuer may pay such destroyed, lost or stolen
Note when so due or payable without surrender thereof. If, after the delivery of
such replacement Note or payment of a destroyed, lost or stolen Note pursuant to
the proviso to the preceding sentence, a bona fide purchaser of the original
Note in lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer and the Securities Administrator 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 Securities Administrator in
connection therewith.

         Upon the issuance of any replacement Note under this Section 4.03, the
Issuer may require the payment by the Holder of such Note of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including the fees and expenses of
the Securities Administrator) connected therewith.

         Every replacement Note issued pursuant to this Section 4.03 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

         The provisions of this Section 4.03 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

         Section 4.04 PERSONS DEEMED OWNERS. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Securities Administrator,
the Paying Agent and any agent of the Issuer or the Securities Administrator or
the Paying Agent may treat the Person in whose name any Note is registered (as
of the day of determination) as the owner of such Note for the purpose of
receiving payments of principal of and interest, if any, on such Note and for
all other purposes whatsoever, whether or not such Note be overdue, and none of
the Issuer, the Indenture Trustee, the Securities Administrator, the Paying
Agent or any agent of the Issuer, the Securities Administrator, the Indenture
Trustee or the Paying Agent shall be affected by notice to the contrary.

         Section 4.05 CANCELLATION. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Securities Administrator,

                                       25

<PAGE>

be delivered to the Securities Administrator and shall be promptly cancelled by
the Securities Administrator. The Issuer may at any time deliver to the
Securities Administrator 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 Securities
Administrator. No Notes shall be authenticated in lieu of or in exchange for any
Notes cancelled as provided in this Section 4.05, except as expressly permitted
by this Indenture. All cancelled Notes may be held or disposed of by the
Securities Administrator in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Request that they be destroyed or returned to it; PROVIDED, HOWEVER, that such
Issuer Request is timely and the Notes have not been previously disposed of by
the Securities Administrator.

         Section 4.06 BOOK-ENTRY NOTES. The Class A-1 Notes and Class A-2 Notes,
upon original issuance, will be issued in the form of typewritten Notes
representing the Book-Entry Notes, to be delivered to The Depository Trust
Company, the initial Depository, by, or on behalf of, the Issuer. The Notes
shall initially be registered on the Note Register in the name of Cede & Co.,
the nominee of the initial Depository, and no Beneficial Owner will receive a
Definitive Note representing such Beneficial Owner's interest in such Note,
except as provided in Section 4.08. With respect to such Notes, unless and until
definitive, fully registered Notes (the "Definitive Notes") have been issued to
Beneficial Owners pursuant to Section 4.08:

                           (i) the provisions of this Section 4.06 shall be in
         full force and effect;

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

                           (iii) to the extent that the provisions of this
         Section 4.06 conflict with any other provisions of this Indenture, the
         provisions of this Section 4.06 shall control;

                           (iv) the rights of Beneficial Owners shall be
         exercised only through the Depository and shall be limited to those
         established by law and agreements between such Owners of Notes and the
         Depository and/or the Depository Participants. Unless and until
         Definitive Notes are issued pursuant to Section 4.08, the initial
         Depository will make book- entry transfers among the Depository
         Participants and receive and transmit payments of principal of and
         interest on the Notes to such Depository Participants; and

                           (v) whenever this Indenture requires or permits
         actions to be taken based upon instructions or directions of Holders of
         Notes evidencing a specified percentage of the Note Principal Balances
         of the Notes, the Depository shall be deemed to represent such
         percentage with respect to the Notes only to the extent that it has
         received instructions to such effect from Beneficial Owners and/or
         Depository Participants owning or representing, respectively, such
         required percentage of the beneficial interest in the Notes and has
         delivered such instructions to the Securities Administrator and the
         Indenture Trustee.

                                       26

<PAGE>

         None of the Depositor, the Issuer, the Master Servicer, the Seller, the
Securities Administrator, the Indenture Trustee, the Note Registrar and the
Owner Trustee shall have any liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests in the Book- Entry
Notes or for maintaining, supervising or reviewing any records relating to
beneficial ownership interests or transfers thereof.

         The Class A-3, Class A-4, Class X-1, Class B-1, Class B-2, Class B-3,
Class B-4, Class B-5 and Class B-6 Notes will be registered in full definitive
form.

         Section 4.07 NOTICES TO DEPOSITORY. Whenever a notice or other
communication to the Note Holders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Beneficial Owners pursuant to
Section 4.08, the Indenture Trustee or Securities Administrator, as applicable,
shall give all such notices and communications specified herein to be given to
Holders of the Notes to the Depository, and shall have no obligation to the
Beneficial Owners.

         Section 4.08 DEFINITIVE NOTES. If (i) the Depositor advises the
Securities Administrator in writing that the Depository is no longer willing or
able to properly discharge its responsibilities with respect to the Book-Entry
Notes and the Depositor is unable to locate a qualified successor within 30 days
or (ii) the Depositor, at its option (with the consent of the Securities
Administrator, such consent not to be unreasonably withheld) elects to terminate
the book-entry system through the Depository, then the Securities Administrator
shall request that the Depository notify all Beneficial Owners of the occurrence
of any such event and of the availability of Definitive Notes to Beneficial
Owners requesting the same. Upon surrender to the Securities Administrator of
the typewritten Notes representing the Book-Entry Notes by the Depository,
accompanied by registration instructions, the Issuer shall execute and the
Securities Administrator shall authenticate the Definitive Notes in accordance
with the instructions of the Depository. None of the Issuer, the Note Registrar
or the Securities Administrator shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Notes, the
Securities Administrator shall recognize the Holders of the Definitive Notes as
Noteholders.

         In addition, if an Event of Default has occurred and is continuing,
each Note Owner materially adversely affected thereby may at its option request
a Definitive Note evidencing such Noteholder's interest in the related Class of
Notes. In order to make such request, such Noteholder shall, subject to the
rules and procedures of the Depository, provide the Depository or the related
Depository Participant with directions for the Securities Administrator to
exchange or cause the exchange of the Noteholder's interest in such Class of
Notes for an equivalent interest in fully registered definitive form. Upon
receipt by the Securities Administrator of instructions from the Depository
directing the Securities Administrator to effect such exchange (such
instructions to contain information regarding the Class of Notes and the Note
Principal Balance being exchanged, the Depository Participant account to be
debited with the decrease, the registered holder of and delivery instructions
for the Definitive Note, and any other information reasonably required by the
Securities Administrator), (i) the Securities Administrator shall instruct the
Depository to reduce the related Depository Participant's account by the
aggregate Note Principal Balance of the Definitive Note, (ii) the Securities
Administrator shall execute, authenticate and deliver, in accordance with the
registration

                                       27

<PAGE>

and delivery instructions provided by the Depository, a Definitive Note
evidencing such Noteholder's interest in such Class of Notes and (iii) the
Issuer shall execute and the Securities Administrator shall authenticate a new
Book-Entry Note reflecting the reduction in the Note Principal Balance of such
Class of Notes by the amount of the Definitive Notes.
         Section 4.09 TAX TREATMENT. The Issuer has entered into this Indenture,
and the Class A-1 Notes and Class A-2 Notes will be issued with the intention
that, for federal, state and local income, single business and franchise tax
purposes, such Classes of Notes will qualify as indebtedness. The Issuer and the
Securities Administrator (in accordance with Section 6.07 hereof), by entering
into this Indenture, and each Class A-1 Noteholder and Class A-2 Noteholder, by
its acceptance of its Note (and each Beneficial Owner by its acceptance of an
interest in the applicable Book-Entry Note), agree to treat such Classes of
Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness.

         Section 4.10 SATISFACTION AND DISCHARGE OF INDENTURE. (a) This
Indenture shall cease to be of further effect with respect to the Notes except
as to (i) rights of registration of transfer and exchange, (ii) substitution of
mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
receive payments of principal thereof and interest thereon, (iv) Sections 3.03,
3.04, 3.06, 3.09, 3.17, 3.19 and 3.20, (v) the rights, obligations and
immunities of the Indenture Trustee and Securities Administrator hereunder
(including the rights of the Securities Administrator under Section 6.08 and the
obligations of the Securities Administrator under Section 4.11), and (vi) the
rights of Noteholders as beneficiaries hereof with respect to the property so
deposited with 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 and shall release and deliver, or cause the
Custodian to deliver, the Collateral to or upon the order of the Issuer, when

                  (A)      either

                  (1)      all Notes theretofore authenticated and delivered
                           (other than (i) Notes that have been destroyed, lost
                           or stolen and that have been replaced or paid as
                           provided in Section 4.03 hereof 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

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

                           a. have become due and payable,

                           b.       will become due and payable at the Final
                                    Scheduled Payment Date within one year, or

                           c.       have been called for early redemption and
                                    the Trust has been terminated pursuant to
                                    Section 8.06 hereof,

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<PAGE>

and the Issuer, in the case of a. or b. 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 then outstanding not theretofore delivered to the
Securities Administrator for cancellation when due on the Final Scheduled
Payment Date or other final Payment Date and has delivered to the Securities
Administrator and the Indenture Trustee a verification report from a nationally
recognized accounting firm certifying that the amounts deposited with the
Securities Administrator are sufficient to pay and discharge the entire
indebtedness of such Notes, or, in the case of c. above, the Issuer shall have
complied with all requirements of Section 8.06 hereof,

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

                  (C) the Issuer has delivered to the Indenture Trustee an
         Officer's Certificate and an Opinion of Counsel, each meeting the
         applicable requirements of Section 10.01 hereof, each stating that all
         conditions precedent herein provided for relating to the satisfaction
         and discharge of this Indenture have been complied with and, if the
         Opinion of Counsel relates to a deposit made in connection with Section
         4.10(A)(2)b. above, such opinion shall further be to the effect that
         such deposit will constitute an "in-substance defeasance" within the
         meaning of Revenue Ruling 85-42, 1985-1 C.B. 36, and in accordance
         therewith, the Issuer will be the owner of the assets deposited in
         trust for federal income tax purposes.

         (b) Notwithstanding the foregoing, so long as the Investor owns 100% of
the Securities, the Investor shall not be permitted to discharge the Indenture
as set forth in this Section 4.10.

         Section 4.11 APPLICATION OF TRUST MONEY. All monies deposited with the
Securities Administrator pursuant to Section 4.10 hereof shall be held in trust
and applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent or the
Certificate Paying Agent as designee of the Issuer, as the Securities
Administrator may determine, to the Holders of Securities, of all sums due and
to become due thereon for principal and interest or otherwise; but such monies
need not be segregated from other funds except to the extent required herein or
required by law.

         Section 4.12 [RESERVED].

         Section 4.13 REPAYMENT OF MONIES HELD BY PAYING AGENT. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all monies then held by any Person 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 Person shall be released from all
further liability with respect to such monies.

         Section 4.14 TEMPORARY NOTES. Pending the preparation of any Definitive
Notes, the Issuer may execute and upon its written direction, the Securities
Administrator may authenticate and make available for delivery, temporary Notes
that are printed, lithographed, typewritten, photocopied or otherwise produced,
in any denomination, substantially of the tenor of the Definitive Notes in lieu
of

                                       29

<PAGE>

which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Notes may
determine, as evidenced by their execution of such Notes.

         If temporary Notes are issued, the Issuer will cause Definitive Notes
to be prepared without unreasonable delay. After the preparation of the
Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes
upon surrender of the temporary Notes at the Corporate Trust Office of the
Securities Administrator, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Notes, the Issuer shall execute and
the Securities Administrator shall authenticate and make available for delivery,
in exchange therefor, Definitive Notes of authorized denominations and of like
tenor, class and aggregate principal amount. Until so exchanged, such temporary
Notes shall in all respects be entitled to the same benefits under this
Indenture as Definitive Notes.

         Section 4.15 REPRESENTATION REGARDING ERISA. By acquiring a Class A-1
Note and Class A-2 Note or interest therein, each Holder of such Note or
Beneficial Owner of any such interest will be deemed to represent that either
(1) it is not acquiring such Note with Plan Assets or (2) (A) the acquisition,
holding and transfer of such Note will not give rise to a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code and (B) the
Notes are rated investment grade or better and such person believes that the
Notes are properly treated as indebtedness without substantial equity features
for purposes of the Department of Labor regulation 29 C.F.R. ss. 2510.3- 101,
and agrees to so treat the Notes. Alternatively, regardless of the rating of the
Notes, such person may provide the Securities Administrator and the Note
Registrar with an opinion of counsel, which opinion of counsel will not be at
the expense of the Issuer, the Seller, the Owner Trustee, the Indenture Trustee,
the Securities Administrator, the Note Registrar, the Master Servicer or any
servicer which opines that the acquisition, holding and transfer of such Note or
interest therein is permissible under applicable law, will not constitute or
result in a non-exempt prohibited transaction under ERISA or Section 4975 of the
Code and will not subject the Issuer, the Seller, the Depositor, the Owner
Trustee, the Indenture Trustee, the Securities Administrator, the Master
Servicer or the Servicer to any obligation in addition to those undertaken in
the Indenture and the other Basic Documents.

         No transfer of any Class A-3, Class A-4, Class X-1, Class B-1, Class
B-2, Class B-3, Class B-4, Class B-5 or Class B-6 Notes or any interest therein
shall be made to any Person unless the Indenture Trustee and the Note Registrar
are provided with an Opinion of Counsel which establishes to the satisfaction of
the Indenture Trustee and the Note Registrar that the purchase of the Notes is
permissible under applicable law, will not constitute or result in any
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Issuer, the Seller, the Owner Trustee, the Indenture Trustee, the
Master Servicer or the Note Registrar to any obligation or liability (including
obligations or liabilities under ERISA or Section 4975 of the Code) in addition
to those undertaken in this Agreement, which Opinion of Counsel shall not be an
expense of the Depositor, the Owner Trustee, the Indenture Trustee, the
Securities Administrator, the Notes Registrar or the Master Servicer. In lieu of
such Opinion of Counsel, a Person acquiring the Notes may provide a
certification in the form each attached hereto as paragraph 3 of Exhibit C or
clause (d) of Exhibit D, which the Issuer, the Seller, the Owner Trustee, the
Indenture Trustee, the Master Servicer and the Note Registrar may rely upon
without further inquiry or investigation. Neither an Opinion of Counsel nor

                                       30

<PAGE>

a certification will be required in connection with the initial transfer of any
such Notes by the Depositor to an affiliate of the Depositor (in which case, the
Depositor or any affiliate thereof shall be deemed to have represented that such
affiliate is not a Plan or a Person investing Plan Assets of any Plan) and the
Owner Trustee, the Indenture Trustee, the Master Servicer and the Note Register
shall be entitled to conclusively rely upon a representation (which, upon the
request of the Owner Trustee, the Indenture Trustee, the Master Servicer and the
Note Register, shall be a written representation) from the Depositor of the
status of such transferee as an affiliate of the Depositor.

                                       31

<PAGE>

                                    ARTICLE V

                              Default and Remedies

         Section 5.01 EVENTS OF DEFAULT. The Issuer shall deliver to the
Indenture Trustee, within five days after learning of the occurrence of a
Default, 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 (ii), (iii) or (iv) of the definition of "Event of
Default", its status and what action the Issuer is taking or proposes to take
with respect thereto. The Indenture Trustee shall not be deemed to have
knowledge of any Default or Event of Default unless a Responsible Officer has
actual knowledge thereof or unless written notice of such Default or Event of
Default is received by a Responsible Officer and such notice references the
Notes, the Trust Estate or this Indenture.

         Section 5.02 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee at the written direction of the Holders of Notes representing
not less than a majority of the aggregate Note Principal Balance of the Notes
may declare the Notes to be immediately due and payable, by a notice in writing
to the Issuer (and to the Indenture Trustee if such notice is given by
Noteholders), and upon any such declaration the unpaid Note Principal Balance of
the Notes, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable.

         At any time after such declaration of acceleration of maturity with
respect to an Event of Default has been made and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, Holders of the Notes representing not
less than a majority of the aggregate Note Principal Balance of each Class of
Notes, by written notice to the Issuer and the Indenture Trustee, may, subject
to Section 5.12, waive the related Event of Default and rescind and annul such
declaration and its consequences if:

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

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

                           (B) 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.

                                       32

<PAGE>

         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 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 of or any installment of the principal of any Note when the same
becomes due and payable, the Issuer shall, upon demand of the Indenture Trustee,
acting at the direction of the Holders of a majority of the aggregate Note
Principal Balances of the Notes, pay to the Securities Administrator, for the
benefit of the Holders of Notes, the whole amount then due and payable on the
Notes for principal and interest, with interest at the applicable Note Interest
Rate upon the overdue principal, and in addition thereto such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel.

         (b) In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee, in its own name and as trustee of an express
trust, subject to the provisions of Section 10.15 hereof, may institute a
Proceeding for the collection of the sums so due and unpaid, and may prosecute
such Proceeding to judgment or final decree, and may enforce the same against
the Issuer or other obligor upon the Notes and collect in the manner provided by
law out of the property of the Issuer or other obligor upon the Notes, wherever
situated, the monies adjudged or decreed to be payable.

         (c) If an Event of Default occurs and is continuing, the Indenture
Trustee, subject to the provisions of Section 10.15 hereof, may, as more
particularly provided in Section 5.04 hereof, in its discretion, proceed to
protect and enforce its rights and the rights of the Noteholders by such
appropriate Proceedings as directed in writing by Holders of a majority of the
aggregate Note Principal Balances of each Class of Notes, 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 Trust Estate, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or 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, as directed in writing by Holders
of a majority of the aggregate Note Principal Balances of each Class of Notes,
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

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<PAGE>

         documents as may be necessary or advisable in order to have the claims
         of the Indenture Trustee (including any claim for reasonable
         compensation to the Indenture Trustee and each predecessor Indenture
         Trustee, and their respective agents, attorneys and counsel, and for
         reimbursement of all expenses and liabilities incurred, and all
         advances made, by the Indenture Trustee and each predecessor Indenture
         Trustee, except as a result of negligence, willful misconduct or bad
         faith) and of the Noteholders allowed in such Proceedings;

                           (ii) unless prohibited by applicable law and
         regulations, to vote on behalf of the 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 monies or other
         property payable or deliverable on any such claims and to distribute
         all amounts received with respect to the claims of the Noteholders and
         of the Indenture Trustee on their behalf, and

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

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 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, and all advances made, by the Indenture
Trustee and each predecessor Indenture Trustee.

         (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, subject to Section 5.05 hereof.

         (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

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<PAGE>

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 and if an acceleration has been declared and not
rescinded pursuant to Section 5.02 hereof, the Indenture Trustee, subject to the
provisions of Section 10.15 hereof, may, and shall, at the written direction of
the Holders of a majority of the aggregate Note Principal Balances of the Notes,
do one or more of the following (subject to Section 5.05 hereof):

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

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

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

                           (iv) exercise its rights as Holder of the Class A
         Grantor Trust Certificate pursuant to Section 7.02 of the Grantor Trust
         Agreement (provided, that the Indenture Trustee shall not exercise its
         rights under such Section 7.02 unless and until an Event of Default has
         occurred and is continuing); and

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

PROVIDED, HOWEVER, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee obtains the consent of the Holders of 100% of the aggregate
Note Principal Balance of the Notes then outstanding, (B) the proceeds of such
sale or liquidation distributable to the Holders of the Notes 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 Mortgage Loans
will not continue to provide sufficient funds for the payment of principal of
and interest on the applicable 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 the Holders of 66 2/3% of the aggregate Note Principal Balance of
each Class of Notes then outstanding, voting separately; provided that, so long
as the Investor owns 100% of the Securities, the Investor shall not be permitted
to consent to such sale or liquidation of the Trust Estate. In determining such
sufficiency or insufficiency with respect to clause (B) and (C), the Indenture
Trustee may, but need not, obtain and rely upon an opinion (obtained at the
expense of the Trust) of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Trust Estate for such purpose. Notwithstanding the foregoing,
any Sale of the Trust Estate shall be made subject to the continued servicing of
the Mortgage Loans by the Servicer (other

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<PAGE>

than any Servicer as to which an Event of Servicer Termination has occurred and
is continuing) as provided in the Wells Fargo Servicing Agreement.

         (b) If the Indenture Trustee or the Securities Administrator collects
any money or property pursuant to this Article V, the Securities Administrator
shall pay out the money or property in the following order:

                  FIRST: to the Indenture Trustee, the Securities Administrator,
         Master Servicer the Custodian and the Servicer for amounts due and not
         previously paid pursuant to the Indenture and the other Basic
         Documents;

                  SECOND: to the Class A-1 Noteholders and Class A-2
         Noteholders, pro rata, for amounts due and unpaid on such Notes with
         respect to interest (not including any Basis Risk Shortfall Carryover
         Amounts), according to the amounts due and payable on each such Notes
         for interest;

                  THIRD: to the Class A-1 Noteholders and Class A-2 Noteholders,
         pro rata, for amounts due and unpaid on such Notes with respect to
         principal, and to each such Noteholder ratably, without preference or
         priority of any kind, according to the amounts due and payable on such
         Notes for principal, until the Note Principal Balance of each such
         Class is reduced to zero;

                  FOURTH: to the Class A-1 Noteholders and Class A-2
         Noteholders, pro rata, in each case based on the amount of any Basis
         Risk Shortfall Carryover Amounts not previously paid;

                  FIFTH: to the Class A-3 Noteholders and Class A-4 Noteholders,
         pro rata, for amounts due and unpaid on such Notes with respect to
         interest (not including any Basis Risk Shortfall Carryover Amounts),
         according to the amounts due and payable on each such Notes for
         interest;

                  SIXTH: to the Class A-3 Noteholders and Class A-4 Noteholders,
         pro rata, for amounts due and unpaid on such Notes with respect to
         principal, and to each such Noteholder ratably, without preference or
         priority of any kind, according to the amounts due and payable on such
         Notes for principal, until the Note Principal Balance of each such
         Class is reduced to zero;

                  SEVENTH: to the Class A-3 Noteholders and Class A-4
         Noteholders, pro rata, in each case based on the amount of any Basis
         Risk Shortfall Carryover Amounts not previously paid;

                  EIGHTH: first, to the Class B-1 Noteholders, second, to the
         Class B-2 Noteholders, and third, to the Class B-3 Noteholders,
         according to the amounts due and payable on such Classes of Notes for
         interest and principal;

                  NINTH: to the Class X-1 Noteholders for amounts due and unpaid
         on such Notes with respect to interest;

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<PAGE>

                  TENTH: first, to the Class B-4 Noteholders, second, to the
         Class B-5 Noteholders and third, to the Class B-6 Noteholders,
         according to the amounts due and payable on such Classes of Notes for
         interest and principal; and

                  ELEVENTH: to the holders of the Owner Trust Certificates on
         behalf of the Issuer.

         The Securities Administrator may fix a record date and Payment Date for
any payment to Noteholders pursuant to this Section 5.04. At least 15 days
before such record date, the Securities Administrator shall mail to each
Noteholder a notice that states the record date, the Payment Date and the amount
to be paid.

         Section 5.05 OPTIONAL PRESERVATION OF THE TRUST ESTATE. If the Notes
have been declared 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 elect to take and maintain possession of the
Trust Estate. It is the desire of the parties hereto and the Noteholders that
there be at all times sufficient funds for the payment of principal of and
interest on the Notes and other obligations of the Issuer, and the Indenture
Trustee shall take such desire into account when determining whether or not to
take and maintain possession of the Trust Estate. In determining whether to take
and maintain possession of the Trust Estate, the Indenture Trustee may, but need
not, obtain and rely upon an opinion of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

         Section 5.06 LIMITATION OF SUITS. So long as the Investor owns 100% of
the Securities, 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. 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 and subject to the
foregoing and the provisions of Section 10.15 hereof:

                           (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
         aggregate Note Principal Balance of the Notes have made a 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 of request and offer of indemnity, has failed to
         institute such Proceedings; and

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<PAGE>

                           (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 Note Principal Balances 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.

         Subject to the last paragraph of Section 5.11 herein, 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 Note Principal Balances of the Notes, the Indenture
Trustee shall take such action as requested by the Holders representing the
highest amount (in the aggregate) of the Note Principal Balances,
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 and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note or in this
Indenture and to institute suit for the enforcement of any such payment, and
such right shall not be impaired without the consent of such 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 Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article V or by law to the Indenture
Trustee or to the Noteholders may be exercised from time to time, and as often
as may be deemed expedient, by the Indenture Trustee or by the Noteholders, as
the case may be.

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<PAGE>

         Section 5.11 CONTROL BY NOTEHOLDERS. The Holders of a majority of the
aggregate Note Principal Balances of Notes shall have the right to direct the
time, method and place of conducting any Proceeding for any remedy available to
the Indenture Trustee with respect to the Notes or exercising any trust or power
conferred on the Indenture Trustee; provided that:

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

                           (ii) any direction to the Indenture Trustee to sell
         or liquidate the Trust Estate shall be by Holders of Notes representing
         not less than 100% of the aggregate Note Principal Balance of the Notes
         or the Holders of 66 2/3% of the aggregate Note Principal Balance of
         each Class of Notes then outstanding, voting separately as set forth in
         Section 5.04(a) hereof; and

                           (iii) the Indenture Trustee may take any other action
         deemed proper by the Indenture Trustee that is not inconsistent with
         such direction of the Holders of Notes representing a majority of the
         Note Principal Balances of the Notes.

Notwithstanding the rights of Noteholders set forth in this Section 5.11 the
Indenture Trustee need not take any action that it determines might involve it
in liability.

         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 hereof,
the Holders of Notes representing not less than a majority of the aggregate Note
Principal Balance of each Class of Notes may waive any past Event of Default and
its consequences except an Event of Default (a) with respect to payment of
principal of or interest on any of the Notes, or (b) in respect of a covenant or
provision hereof 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 Event of Default or impair any right consequent thereto.

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

         Section 5.13 UNDERTAKING FOR COSTS. All parties to this Indenture
agree, and each Holder of any Note and each Beneficial Owner of any interest
therein by such Holder's or Beneficial Owner'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 5.13 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 Note
Principal Balances of the Notes or (c) any suit

                                       39

<PAGE>

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.

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

         Section 5.15 SALE OF TRUST ESTATE. (a) The power to effect any sale or
other disposition (a "Sale") of any portion of the Trust Estate pursuant to
Section 5.04 hereof is expressly subject to the provisions of Sections 5.05 and
5.11(ii) hereof and this Section 5.15. The power to effect any such Sale shall
not be exhausted by any one or more Sales as to any portion of the Trust Estate
remaining unsold, but shall continue unimpaired until the entire Trust Estate
shall have been sold or all amounts payable on the Notes and under this
Indenture shall have been paid. The Indenture Trustee may from time to time
postpone any public Sale by public announcement made at the time and place of
such Sale. The Indenture Trustee hereby expressly waives its right to any amount
fixed by law as compensation for any Sale.

         (b) The Indenture Trustee shall not in any private Sale sell the Trust
Estate, or any portion thereof, unless

                  (1) the Holders of all Notes consent to or direct the
         Indenture Trustee to make, such Sale, or

                  (2) the proceeds of such Sale would be not less than the
         entire amount which would be payable to the Noteholders under the
         Notes, in full payment thereof in accordance with Section 5.02 hereof,
         on the Payment Date next succeeding the date of such Sale, or

                  (3) the Indenture Trustee determines that the conditions for
         retention of the Trust Estate set forth in Section 5.05 hereof cannot
         be satisfied (in making any such determination, the Indenture Trustee
         may rely upon an opinion of an Independent investment banking firm
         obtained and delivered as provided in Section 5.05 hereof), and the
         Holders of Notes representing at least 100% of the Note Principal
         Balances of the Notes consent to such Sale.

The purchase by the Indenture Trustee of all or any portion of the Trust Estate
at a private Sale shall not be deemed a Sale or other disposition thereof for
purposes of this Section 5.15(b).

         (c) Subject to this Section 5.15, unless the Holders representing at
least 100% of the aggregate Note Principal Balance of the Notes or the Holders
of 66 2/3% of the aggregate Note Principal Balance of each Class of Notes then
outstanding, voting separately as set forth in Section 5.04(a) hereof, have
otherwise consented or directed the Indenture Trustee, at any public Sale of all
or any portion of the Trust Estate at which a minimum bid equal to or greater
than the amount

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<PAGE>

described in paragraph (2) of subsection (b) of this Section 5.15 has not been
established by the Indenture Trustee and no Person bids an amount equal to or
greater than such amount, the Indenture Trustee, as trustee for the benefit of
the Holders of the Notes, shall bid an amount (which shall include the Indenture
Trustee's right, in its capacity as Indenture Trustee, to credit bid) at least
$1.00 more than the highest other bid in order to preserve the Trust Estate on
behalf of the Noteholders.

         (d) In connection with a Sale of all or any portion of the Trust
Estate,

                  (1) any Holder or Holders of Notes may bid for and purchase
         the property offered for sale, and upon compliance with the terms of
         sale may hold, retain and possess and dispose of such property, without
         further accountability, and may, in paying the purchase money therefor,
         deliver any Notes or claims for interest thereon in lieu of cash up to
         the amount which shall, upon distribution of the net proceeds of such
         sale, be payable thereon, and such Notes, in case the amounts so
         payable thereon shall be less than the amount due thereon, shall be
         returned to the Holders thereof after being appropriately stamped to
         show such partial payment;

                  (2) the Indenture Trustee may bid for and acquire the property
         offered for Sale in connection with any Sale thereof, and, subject to
         any requirements of, and to the extent permitted by, applicable law in
         connection therewith, may purchase all or any portion of the Trust
         Estate in a private sale, and, in lieu of paying cash therefor, may
         make settlement for the purchase price by crediting the gross Sale
         price against the sum of (A) the amount which would be distributable to
         the Holders of the Notes and Holders of Certificates on the Payment
         Date next succeeding the date of such Sale and (B) the expenses of the
         Sale and of any Proceedings in connection therewith which are
         reimbursable to it, without being required to produce the Notes in
         order to complete any such Sale or in order for the net Sale price to
         be credited against such Notes, and any property so acquired by the
         Indenture Trustee shall be held and dealt with by it in accordance with
         the provisions of this Indenture;

                  (3) the Indenture Trustee shall execute and deliver an
         appropriate instrument of conveyance, prepared by the Issuer and
         satisfactory to the Indenture Trustee, transferring its interest in any
         portion of the Trust Estate in connection with a Sale thereof;

                  (4) the Indenture Trustee is hereby irrevocably appointed the
         agent and attorney- in-fact of the Issuer to transfer and convey its
         interest in any portion of the Trust Estate in connection with a Sale
         thereof, and to take all action necessary to effect such Sale; and

                  (5) no purchaser or transferee at such a Sale shall be bound
         to ascertain the Indenture Trustee's authority, inquire into the
         satisfaction of any conditions precedent or see to the application of
         any monies.

         (e) So long as the Investor owns 100% of the Securities, the Investor
shall not consent to any Sale of the Trust Estate as set forth herein.

         Section 5.16 ACTION ON NOTES. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of

                                       41

<PAGE>

any other relief under or with respect to this Indenture. Neither the lien of
this Indenture nor any rights or remedies of the Indenture Trustee or the
Noteholders shall be impaired by the recovery of any judgment by the Indenture
Trustee against the Issuer or by the levy of any execution under such judgment
upon any portion of the Trust Estate or upon any of the assets of the Issuer.
Any money or property collected by the Indenture Trustee or the Securities
Administrator shall be applied by the Securities Administrator in accordance
with Section 5.04(b) hereof.

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<PAGE>

                                   ARTICLE VI

             The Indenture Trustee and The Securities Administrator

         Section 6.01 DUTIES OF INDENTURE TRUSTEE AND SECURITIES ADMINISTRATOR.
(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 of which the
Indenture Trustee has actual knowledge or has received written notice, in the
case of the Indenture Trustee and, at any time, in the case of the Securities
Administrator:

                           (i) the Indenture Trustee and the Securities
         Administrator undertakes to perform such duties and only such duties as
         are specifically set forth in this Indenture and the other Basic
         Documents to which it is a party and no implied covenants or
         obligations shall be read into this Indenture and the other Basic
         Documents against the Indenture Trustee or the Securities
         Administrator; and

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

         (c) The Indenture Trustee and the Securities Administrator may not be
relieved from liability for each of its own negligent action, its own negligent
failure to act or its own willful misconduct, except that:

                           (i) this paragraph does not limit the effect of
         paragraph (b) of this Section 6.01;

                           (ii) neither the Indenture Trustee nor the Securities
         Administrator 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 or the Securities Administrator, as applicable, was
         negligent in ascertaining the pertinent facts; and

                           (iii) neither the Indenture Trustee nor the
         Securities Administrator shall be liable with respect to any action it
         takes or omits to take in good faith in accordance with a direction
         received by it from Noteholders, the Certificateholders or from the
         Issuer, which they are entitled to give under the Basic Documents.

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<PAGE>

         (d) The Indenture Trustee shall not be liable for interest on any money
received by it except as set forth in the Basic Documents and as the Indenture
Trustee may agree in writing with the Issuer.

         (e) Money held in trust by the Indenture Trustee need not be segregated
from other trust funds except to the extent required by law or the terms of this
Indenture or the Trust Agreement.

         (f) No provision of this Indenture shall require the Indenture Trustee
or the Securities Administrator to expend or risk its own funds or otherwise
incur financial liability in the performance of any of its duties hereunder or
in the exercise of any of its rights or powers, if it shall have reasonable
grounds to believe that repayment of such funds or indemnity satisfactory to it
against such risk or liability is not reasonably assured to it.

         (g) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Indenture Trustee
shall be subject to the provisions of this Section.

         (h) The Indenture Trustee shall not be deemed to have notice or
knowledge of any Default or Event of Default unless a Responsible Officer of the
Indenture Trustee has actual knowledge thereof or unless written notice of any
such event that is in fact an Event of Default or Default is received by the
Indenture Trustee at its Corporate Trust Office and such notice references the
Notes or Certificates generally, the Issuer, the Trust Estate or this Indenture.

         Section 6.02 RIGHTS OF INDENTURE TRUSTEE AND SECURITIES ADMINISTRATOR.
(a) The Indenture Trustee and the Securities Administrator may rely on any
document believed by it to be genuine and to have been signed or presented by
the proper person. The Indenture Trustee and the Securities Administrator need
not investigate any fact or matter stated in the document.

         (b) Before the Indenture Trustee or the Securities Administrator acts
or refrains from acting, it may require an Officer's Certificate or an Opinion
of Counsel. Neither the Indenture Trustee nor the Securities Administrator shall
be liable for any action it takes or omits to take in good faith in reliance on
and in accordance with an Officer's Certificate or Opinion of Counsel.

         (c) Neither the Indenture Trustee nor the Securities Administrator
shall 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.

         (d) The Indenture Trustee or the Securities Administrator may consult
with counsel, and the written advice or Opinion of Counsel (which shall not be
at the expense of the Indenture Trustee or the Securities Administrator) with
respect to legal matters relating to this Indenture, the other Basic Documents
and the Notes shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder in
good faith and in accordance with the written advice or opinion of such counsel.

         (e) For the limited purpose of effecting any action to be undertaken by
each of the Indenture Trustee and the Securities Administrator, but not
specifically as a duty of the Indenture Trustee or the Securities Administrator
in the Indenture, each of the Indenture Trustee and the

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Securities Administrator may execute any of the trusts or powers hereunder or
perform any duties hereunder, either directly or by or through agents,
attorneys, custodians or nominees appointed with due care, and shall not be
responsible for any willful misconduct or negligence on the part of any agent,
attorney, custodian or nominee so appointed.

         (f) The Securities Administrator or its Affiliates are permitted to
receive additional compensation that could be deemed to be in the Securities
Administrator's economic self-interest for (i) serving as investment adviser,
administrator, shareholder servicing agent, custodian or sub- custodian with
respect to certain of the Permitted Investments, (ii) using Affiliates to effect
transactions in certain Permitted Investments and (iii) effecting transactions
in certain Permitted Investments. Such compensation shall not be considered an
amount that is reimbursable or payable to the Securities Administrator (i) as
part of the compensation hereunder or (ii) out of Available Funds.

         (g) Anything in this Indenture to the contrary notwithstanding, in no
event shall the Indenture Trustee or the Securities Administrator 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 or
the Securities Administrator has been advised of the likelihood of such loss or
damage and regardless of the form of action.

         (h) None of the Securities Administrator, the Issuer or the Indenture
Trustee shall be responsible for the acts or omissions of the other, it being
understood that this Indenture shall not be construed to render them partners,
joint venturers or agents of one another.

         (i) Neither the Indenture Trustee nor the Securities Administrator
shall be required to expend or risk its own funds or otherwise incur financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if there is reasonable ground for believing that
the repayment of such funds or indemnity reasonably satisfactory to it against
such risk or liability is not reasonably assured to it, and none of the
provisions contained in this Indenture 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
the Servicing 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 the
Servicing Agreement.

         (j) Except for those actions that the Indenture Trustee or the
Securities Administrator are required to take hereunder, neither the Indenture
Trustee nor the Securities Administrator shall have any obligation or liability
to take any action or to refrain from taking any action hereunder in the absence
of written direction as provided hereunder.

         (k) Neither the Indenture Trustee nor the Securities Administrator
shall be under any obligation to exercise any of the trusts or powers vested in
it by this Indenture, other than its obligation to give notices pursuant to this
Indenture, or to institute, conduct or defend any litigation hereunder or in
relation hereto at the request, order or direction of any of the Noteholders
pursuant to the provisions of this Indenture, unless such Noteholders shall have
offered to the Indenture Trustee or the Securities Administrator, as applicable,
reasonable security or indemnity against the costs,

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<PAGE>

expenses and liabilities which may be incurred therein or thereby. Nothing
contained herein shall, however, relieve the Indenture Trustee of the
obligation, upon the occurrence of an Event of Default of which a Responsible
Officer of the Indenture Trustee has actual knowledge (which has not been cured
or waived), to exercise such of the rights and powers vested in it by this
Indenture and to use the same degree of care and skill in their exercise as a
prudent person would exercise under the circumstances in the conduct of his own
affairs.

         (l) Neither the Indenture Trustee nor the Securities Administrator
shall be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond or other paper or document, unless
requested in writing to do so by Holders of Notes representing not less than 25%
of the Note Principal Balance of the Notes and provided that the payment within
a reasonable time to the Indenture Trustee or the Securities Administrator, as
applicable, 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 or
the Securities Administrator, as applicable, reasonably assured to the Indenture
Trustee by the security afforded to it by the terms of this Indenture. The
Indenture Trustee or the Securities Administrator may require reasonable
indemnity against such expense or liability as a condition to taking any such
action. The reasonable expense of every such examination shall be paid by the
Noteholders requesting the investigation.

         (m) Should the Indenture Trustee or the Securities Administrator deem
the nature of any action required on its part to be unclear, the Indenture
Trustee or the Securities Administrator, respectively, may require prior to such
action that it be provided by the Depositor with reasonable further
instructions.

         (n) The right of the Indenture Trustee or the Securities Administrator
to perform any discretionary act enumerated in this Indenture shall not be
construed as a duty, and neither the Indenture Trustee nor the Securities
Administrator shall be accountable for other than its negligence or willful
misconduct in the performance of any such act.

         (o) Neither the Indenture Trustee nor the Securities Administrator
shall be required to give any bond or surety with respect to the execution of
the trust created hereby or the powers granted hereunder.

         (p) Neither the Indenture Trustee nor the Securities Administrator
shall have any duty to conduct any affirmative investigation as to the
occurrence of any condition requiring the repurchase of any Mortgage Loan by the
Seller pursuant to this Indenture or the Mortgage Loan Purchase Agreement, as
applicable, or the eligibility of any Mortgage Loan for purposes of this
Indenture.

         (q) The Indenture Trustee shall not be deemed to have notice or actual
knowledge of any Default or Event of Default unless actually known to a
Responsible Officer of the Indenture Trustee or written notice thereof (making
reference to this Indenture or the Notes) is received by the Indenture Trustee
at the Corporate Trust Office.

         Section 6.03 INDIVIDUAL RIGHTS OF INDENTURE TRUSTEE. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the

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Issuer or its Affiliates with the same rights it would have if it were not
Indenture Trustee, subject to the requirements of the Trust Indenture Act. Any
Note Registrar, co-registrar or co-paying agent may do the same with like
rights. However, the Indenture Trustee must comply with Section 6.12 hereof.

         Section 6.04 [RESERVED].

         Section 6.05 INDENTURE TRUSTEE'S AND SECURITIES ADMINISTRATOR'S
DISCLAIMER. Neither the Indenture Trustee nor the Securities Administrator shall
be responsible for and makes no representation as to the validity or adequacy of
this Indenture, the Notes or any other Basic Document, it shall not be
accountable for the Issuer's use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Issuer in the Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Securities Administrator's certificate of authentication.

         Section 6.06 NOTICE OF EVENT OF DEFAULT. Subject to Section 5.01, the
Indenture Trustee shall promptly mail to each Noteholder notice of the Event of
Default after it is known to a Responsible Officer of the Indenture Trustee,
unless such Event of Default shall have been waived or cured. Except in the case
of an Event of Default in payment of principal of or interest on any Note, the
Indenture Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the best interests of Noteholders.

         Section 6.07 REPORTS TO HOLDERS AND TAX ADMINISTRATION.

         The Securities Administrator shall deliver to each Noteholder such
information as may be required and such other customary information as the
Securities Administrator may determine and/or be required by the Internal
Revenue Service or by a federal or state law or rules or regulations to enable
such holder to prepare its federal and state income tax returns.

         The Securities Administrator shall prepare and file (or cause to be
prepared and filed), on behalf of the Owner Trustee, all tax returns (if any)
and information reports, tax elections and such annual or other reports of the
Issuer as are necessary for preparation of tax returns and information reports
as provided in Section 5.03 of the Trust Agreement, including without limitation
Form 1099. All tax returns and information reports shall be signed by the Owner
Trustee or, to the extent permitted by law, the Securities Administrator as
provided in Section 5.03 of the Trust Agreement.

         Section 6.08 COMPENSATION. An annual fee shall be paid to the Indenture
Trustee by the Master Servicer pursuant to a separate agreement between the
Indenture Trustee and the Master Servicer. In addition, the Indenture Trustee
and the Securities Administrator will each be entitled to recover from the
Payment Account pursuant to Section 3.25 of this Indenture all reasonable
out-of-pocket expenses, disbursements and advances and the expenses of the
Indenture Trustee and the Securities Administrator, respectively, in connection
with any breach of this Agreement or any claim or legal action (including any
pending or threatened claim or legal action) or otherwise incurred or made by
the Indenture Trustee or the Securities Administrator, respectively, in the
administration of the trusts hereunder (including the reasonable compensation,
expenses and disbursements of its counsel) except any such expense, disbursement
or advance as may arise from its own negligence or intentional misconduct or
which is the responsibility of the Noteholders as provided herein. Such

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<PAGE>

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.
Additionally, each of the Indenture Trustee and the Securities Administrator and
any director, officer, employee or agent of the Indenture Trustee or the
Securities Administrator shall be indemnified by the Trust and held harmless
against any loss, liability or expense (including reasonable attorney's fees and
expenses) incurred in the administration of this Agreement (other than its
ordinary out of pocket expenses incurred hereunder) or in connection with any
claim or legal action relating to (a) the Basic Documents or (b) the Notes,
other than any loss, liability or expense incurred by reason of its own
negligence or intentional misconduct, or which is the responsibility of the
Noteholders as provided herein.

         The Issuer's payment obligations to the Indenture Trustee and
Securities Administrator pursuant to this Section 6.08 shall survive the
discharge of this Indenture and the termination or resignation of the Indenture
Trustee or Securities Administrator. When the Indenture Trustee or the
Securities Administrator incurs expenses after the occurrence of an Event of
Default 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 6.09 REPLACEMENT OF INDENTURE TRUSTEE AND THE SECURITIES
ADMINISTRATOR. No resignation or removal of the Indenture Trustee or the
Securities Administrator and no appointment of a successor Indenture Trustee or
a successor Securities Administrator shall become effective until the acceptance
of appointment by the successor Indenture Trustee pursuant to this Section 6.09.
The Indenture Trustee or the Securities Administrator may resign at any time by
so notifying the Issuer. In the event that the Indenture Trustee determines that
a conflict of interest exists between the Holders of the Class A Notes and the
Holders of any Class of Subordinate Notes, then the Indenture Trustee shall be
entitled to resign as the indenture trustee for all Classes of Notes other than
the Class A Notes. In such event the Holders of a majority of Note Principal
Balances of all of the Subordinate Notes shall designate a separate indenture
trustee to represent their interests hereunder. Holders of a majority of Note
Principal Balances of each Class of Notes may remove the Indenture Trustee by so
notifying the Indenture Trustee and may appoint a successor Indenture Trustee.
The Issuer shall remove the Indenture Trustee or the Securities Administrator,
as applicable, if:

                           (i) the Indenture Trustee or the Securities
         Administrator fails to comply with or qualify pursuant to the
         provisions of Section 6.12 hereof;

                           (ii) the Indenture Trustee or the Securities
         Administrator is adjudged a bankrupt or insolvent;

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

                           (iv) the Indenture Trustee or the Securities
         Administrator otherwise becomes incapable of acting; or

                           (v) the Master Servicer is terminated pursuant to
         Section 5.01 of the Servicing Agreement.

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<PAGE>

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

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

         If a successor Indenture Trustee or successor Securities Administrator
does not take office within 60 days after the retiring Indenture Trustee or the
retiring Securities Administrator, as applicable, resigns or is removed, the
retiring Indenture Trustee or the retiring Securities Administrator, the Issuer
or the Holders of a majority of Note Principal Balances of the Notes may
petition any court of competent jurisdiction for the appointment of a successor
Indenture Trustee or successor Securities Administrator.

         Notwithstanding the replacement of the Indenture Trustee or the
Securities Administrator pursuant to this Section, the Issuer's obligations
under Section 6.07 shall continue for the benefit of the retiring Indenture
Trustee or the retiring Securities Administrator.

         Section 6.10 SUCCESSOR INDENTURE TRUSTEE AND SECURITIES ADMINISTRATOR
BY MERGER. If the Indenture Trustee or the Securities Administrator consolidates
with, merges or converts into, or transfers all or substantially all of its
corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation, without any
further act, shall be the successor Indenture Trustee or successor Securities
Administrator, as applicable; provided, that such corporation or banking
association shall be otherwise qualified and eligible under Section 6.12 hereof.
The Indenture Trustee and the Securities Administrator shall provide the Rating
Agencies and the Issuer with prior written notice, and the Noteholders with
prompt written notice, of any such transaction.

         If at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture and any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the certificate
of authentication of any predecessor trustee and deliver such Notes so
authenticated; and if at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full

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<PAGE>

force which is in the Notes or in this Indenture provided that the certificate
of the Indenture Trustee shall have.

         Section 6.11 APPOINTMENT OF CO-INDENTURE TRUSTEE OR SEPARATE INDENTURE
TRUSTEE. (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust Estate may at 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 Trust Estate, or any part hereof, and, subject to
the other provisions of this Section, such powers, duties, obligations, rights
and trusts as the Indenture Trustee may consider necessary or desirable. No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.12 hereof.

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

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

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

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

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

         (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority,
to the extent not prohibited by law, to do any

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<PAGE>

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.

         Section 6.12 ELIGIBILITY; DISQUALIFICATION. The Indenture Trustee shall
at all times be an entity that meets the requirements of Section 3(c)(3) under
the Investment Company Act of 1940 applicable to a trustee, and shall have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition and it or its parent shall have a
long-term debt rating of Baa3 or better by Moody's.

         Section 6.13 [RESERVED].

         Section 6.14 REPRESENTATIONS AND WARRANTIES. The Indenture Trustee
hereby represents that:

                           (i) 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;

                           (ii) 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;

                           (iii) 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 incorporation 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

                           (iv) 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: (A) asserting the invalidity of this Indenture, (B) seeking
         to prevent the consummation of any of the transactions contemplated by
         this Indenture or (C) seeking any determination or ruling that might
         materially and adversely affect the performance by the Indenture
         Trustee of its obligations under, or the validity or enforceability of,
         this Indenture.

                           (v) The Indenture Trustee does not have notice of any
         adverse claim (as such terms are used in Delaware UCC Section 8-302)
         with respect to the Grantor Trust Certificate.

         Section 6.15 DIRECTIONS TO INDENTURE TRUSTEE AND THE SECURITIES
ADMINISTRATOR. The Indenture Trustee is hereby directed:

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<PAGE>

         (a) to accept the pledge of the Grantor Trust Certificate and hold the
assets of the Trust in trust for the Noteholders;

         (b) the Securities Administrator is hereby directed to (i) authenticate
and deliver the Notes substantially in the form prescribed by Exhibits A-1, A-2,
A-3 and A-4 to this Indenture in accordance with the terms of this Indenture;
and

         (c) to take all other actions as shall be required to be taken by the
Securities Administrator pursuant to the terms of this Indenture and the other
Basic Documents.

         Section 6.16 THE AGENTS. The provisions of this Indenture relating to
the limitations of the Indenture Trustee's liability and to its rights and
protections shall inure also to the Paying Agent, Note Registrar and Certificate
Registrar.

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                                   ARTICLE VII

                         Noteholders' Lists and Reports

         Section 7.01 ISSUER TO FURNISH SECURITIES ADMINISTRATOR TRUSTEE NAMES
AND ADDRESSES OF NOTEHOLDERS. The Issuer will furnish or cause to be furnished
to the Securities Administrator (a) not more than five days after each Record
Date, a list, in such form as 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 Securities Administrator may request in
writing, within 30 days after receipt by the Issuer of any such request, a list
of similar form and content as of a date not more than 10 days prior to the time
such list is furnished; PROVIDED, HOWEVER, that so long as the Securities
Administrator is the Note Registrar, no such list shall be required to be
furnished to the Securities Administrator.

         Section 7.02 PRESERVATION OF INFORMATION; COMMUNICATIONS TO
NOTEHOLDERS. (a) The Securities Administrator 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 Securities
Administrator as provided in Section 7.01 hereof and the names and addresses of
Holders of Notes received by the Securities Administrator in its capacity as
Note Registrar. The Securities Administrator may destroy any list furnished to
it as provided in such Section 7.01 upon receipt of a new list so furnished.

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

         Section 7.03 FINANCIAL INFORMATION. For so long as any of the Notes
bearing a restrictive legend remains outstanding and is a "restricted security"
within the meaning of Rule 144(a)(3) under the Securities Act, the Issuer shall,
during any period in which it is not subject to Section 13 or 15(d) of the
Exchange Act nor exempt from reporting pursuant to Rule 12g3-2(b) under such
Act, cause the Securities Administrator to make available to any Holder of any
such Note in connection with any sale thereof and to any prospective purchaser
of any such Note from such Holder, in each case upon request, the information
specified in, and meeting the requirements of, Rule 144A(d)(4) under the
Securities Act that is in the Securities Administrator's possession or
reasonably obtainable by it, if requested, from the Master Servicer (and to the
extent such information is in the Master Servicer's possession or is reasonably
obtainable by it from the Servicers).

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

         Section 7.04 STATEMENTS TO NOTEHOLDERS. (a) With respect to each
Payment Date, the Securities Administrator shall make available via the
Securities Administrator's website, initially located at www.ctslink.com, to
each Noteholder and each Certificateholder, the Depositor, the Issuer, the
Seller, the Owner Trustee, the Certificate Paying Agent and the Rating Agencies,
a statement setting forth the following information as to the Notes, to the
extent applicable:

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<PAGE>

                           (i) the Available Funds, the Basis Risk Shortfall
         Carryover Amount on each Class of Notes (other than the Class X-1 Notes
         and Class B Notes) for such Payment Date and the aggregate Net Interest
         Shortfall on each Class of Notes for such Payment Date;

                           (ii) (a) the amount of such distribution to each
         Class of Notes (other than the Class X-1 Notes) applied to reduce the
         Note Principal Balance thereof, and (b) the aggregate amount included
         therein representing Principal Prepayments;

                           (iii) the amount of such distribution to Holders of
         each Class of Notes allocable to interest;

                           (iv) the amount of any distribution to the
         Certificates;

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

                           (vi) the number and the aggregate Scheduled Principal
         Balance of the Mortgage Loans as of the end of the related Due Period;

                           (vii) the aggregate Note Principal Balance of each
         Class of Notes, after giving effect to the amounts distributed on such
         Payment Date, separately identifying any reduction thereof due to
         Realized Losses and the aggregate Note Principal Balance of the Notes
         after giving effect to the distribution of principal on such Payment
         Date;

                           (viii) the number and aggregate Scheduled Principal
         Balance of Mortgage Loans (a) as to which the Monthly Payment is
         delinquent for 31-60 days, 61-90 days, 91 or more days, respectively,
         (b) in foreclosure and (c) that have become REO Property, in each case
         as of the end of the preceding calendar month;

                           (ix) the amount of any Monthly Advances and
         Compensating Interest payments;

                           (x) the aggregate Realized Losses with respect to the
         related Payment Date and cumulative Realized Losses since the Closing
         Date;

                           (xi) the number and aggregate Scheduled Principal
         Balance of Mortgage Loans repurchased pursuant to the Mortgage Loan
         Purchase Agreement for the related Payment Date and cumulatively since
         the Closing Date;

                           (xii) the book value (if available) of any REO
         Property;

                           (xiii) the amount of any Prepayment Interest
         Shortfalls or Relief Act Shortfalls for such Payment Date; and

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<PAGE>

                           (xiv) the aggregate Scheduled Principal Balance of
         Mortgage Loans purchased pursuant to Section 2.19 of the Servicing
         Agreement for the related Payment Date and cumulatively since the
         Closing Date.

         Items (iii) and (iv) above shall be presented on the basis of a Note
having a $1,000 denomination. In addition, by January 31 of each calendar year
following any year during which the Notes are outstanding, the Securities
Administrator shall furnish a report to each Noteholder of record if so
requested in writing at any time during each calendar year as to the aggregate
of amounts reported pursuant to (iii) and (iv) with respect to the Notes for
such calendar year.

         The Securities Administrator may conclusively rely upon the information
provided by the Master Servicer to the Securities Administrator in accordance
with Section 2.02 of the Servicing Agreement in its preparation of monthly
statements to Noteholders.

         The Securities Administrator will make the monthly statements provided
for in this section (and, at its option, any additional files containing the
same information in an alternative format) available each month to Noteholders,
each Noteholder and each Certificateholder, the Depositor, the Issuer, the
Seller, the Owner Trustee, the Certificate Paying Agent and the Rating Agency
via the Securities Administrator's website. The Securities Administrator's
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 (301) 815-6600. Parties that are unable to use the website are
entitled to have a paper copy mailed to them via first class mail by calling the
Securities Administrator's customer service desk and indicating such. The
Securities Administrator may have the right to change the way the monthly
statements are distributed in order to make such distribution more convenient
and/or more accessible to the above parties and the Securities Administrator
shall provide timely and adequate notification to all above parties regarding
any such changes.

         The Securities Administrator shall be entitled to rely on but shall not
be responsible for the content or accuracy of any information provided by third
parties for purposes of preparing the monthly statement, and may affix thereto
any disclaimer it deems appropriate in its reasonable discretion (without
suggesting liability on the part of any other party hereto).

         Section 7.05 REPORTS FILED WITH SECURITIES AND EXCHANGE COMMISSION.
Within 15 days after each Payment Date, the Securities Administrator shall, in
accordance with industry standards, file with the Commission via the Electronic
Data Gathering and Retrieval System ("EDGAR"), a Form 8-K (or other comparable
Form containing the same or comparable information or other information mutually
agreed upon) with a copy of the statement to the Noteholders for such Payment
Date as an exhibit thereto. Prior to January 30 in any year, the Securities
Administrator shall, in accordance with industry standards and only if
instructed by the Depositor, file a Form 15 Suspension Notice with respect to
the Trust Estate, if applicable. Prior to (i) March 31, 2006, or such earlier
filing date as may be required by the Commission, and (ii) unless and until a
Form 15 Suspension Notice shall have been filed, March 31 of each year
thereafter, or such earlier filing date as may be required by the Commission,
the Securities Administrator shall file a Form 10-K, in substance conforming to
industry standards, with respect to the Trust. Such Form 10-K shall include the
Master Servicer Certification and other documentation provided by the Master
Servicer pursuant to Section 2.16 of the Servicing Agreement. The Depositor
hereby grants to the Securities Administrator a limited power of attorney

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to execute and file each such document on behalf of the Depositor. Such power of
attorney shall continue until either the earlier of (i) receipt by the
Securities Administrator from the Depositor of written termination of such power
of attorney and (ii) the termination of the Trust Estate. The Depositor agrees
to promptly furnish to the Securities Administrator, from time to time upon
request, such further information, reports and financial statements within its
control related to this Agreement and the Mortgage Loans as the Securities
Administrator reasonably deems appropriate to prepare and file all necessary
reports with the Commission. The Securities Administrator shall have no
responsibility to file any items other than those specified in this Section
7.05; provided, however, the Securities Administrator will cooperate with the
Depositor and the Issuer in connection with any additional filings with respect
to the Trust Estate as the Depositor deems necessary under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Fees and expenses
incurred by the Securities Administrator in connection with this Section 7.05
shall not be reimbursable from the Trust Estate.

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                                  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 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 Trust Estate, the Indenture Trustee
may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate
Proceedings. Any such action shall be without prejudice to any right to claim a
Default or Event of Default under this Indenture and any right to proceed
thereafter as provided in Article V.

         Section 8.02 OFFICER'S CERTIFICATE. The Indenture Trustee shall receive
at least seven Business Days' notice when requested by the Issuer to take any
action pursuant to Section 8.06(a) hereof, accompanied by copies of any
instruments to be executed, and the Indenture Trustee shall also require, as a
condition to such action, an Officer's Certificate, in form and substance
satisfactory to the Indenture Trustee, stating the legal effect of any such
action, outlining the steps required to complete the same, and concluding that
all conditions precedent to the taking of such action have been complied with.

         Section 8.03 TERMINATION UPON DISTRIBUTION TO NOTEHOLDERS. This
Indenture and the respective obligations and responsibilities of the Issuer, the
Securities Administrator and the Indenture Trustee created hereby shall
terminate upon the distribution to Noteholders, the Certificate Paying Agent on
behalf of the Certificateholders, the Securities Administrator and the Indenture
Trustee of all amounts required to be distributed pursuant to Article III;
PROVIDED, HOWEVER, that in no event shall the trust created hereby continue
beyond the expiration of 21 years from the death of the survivor of the
descendants of Joseph P. Kennedy, the late ambassador of the United States to
the Court of St. James, living on the date hereof.

         Section 8.04 RELEASE OF TRUST ESTATE. (a) Subject to the payment of its
fees and expenses, the Indenture Trustee may, and when required by the
provisions of this Indenture 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, including for the purposes of any purchase of a
Mortgage Loan by the Majority Certificateholder pursuant to Section 8.06 of this
Indenture. No party relying upon an instrument executed by the Indenture Trustee
as provided in Article VIII hereunder shall be bound to ascertain the Indenture
Trustee's authority, inquire into the satisfaction of any conditions precedent,
or see to the application of any monies.

         (b) The Indenture Trustee shall, at such time as (i) it is notified by
the Securities Administrator that there are no Notes Outstanding and (ii) all
sums then due and unpaid to the

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Indenture Trustee pursuant to this Indenture have been paid, release any
remaining portion of the Trust Estate that secured the Notes from the lien of
this Indenture.

         (c) The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 8.05 only upon receipt of a request from the
Issuer.

         Section 8.05 SURRENDER OF NOTES UPON FINAL PAYMENT. By acceptance of
any Note, the Holder thereof agrees to surrender such Note to the Securities
Administrator promptly, prior to such Noteholder's receipt of the final payment
thereon.

         Section 8.06 OPTIONAL REDEMPTION OF THE MORTGAGE LOANS. (a) The
Majority Certificateholder shall have the option to purchase the assets of the
Trust and thereby cause the redemption of the Notes, in whole, but not in part,
on or after the Payment Date on which the aggregate Scheduled Principal Balance
of the Mortgage Loans as of the end of the prior Due Period is less than or
equal to 10% of the aggregate Scheduled Principal Balance of the Mortgage Loans
as of Cut-off Date. The aggregate redemption price (the "Redemption Price") for
the Notes will be equal to 100% of the aggregate outstanding Note Principal
Balance of the Notes as of the Payment Date on which the proposed redemption
will take place in accordance with the foregoing, together with accrued and
unpaid interest thereon at the applicable Note Interest Rate through such
Payment Date (including any related Net Interest Shortfall, Basis Risk Shortfall
Carryover Amount), plus an amount sufficient to pay in full all amounts owing to
the Indenture Trustee, the Master Servicer and the Securities Administrator,
pursuant to any Basic Document (which amounts shall be specified in writing upon
request of the Issuer, the Indenture Trustee, the Master Servicer and the
Securities Administrator, as applicable).

         (b) In order to exercise the foregoing option, the Majority
Certificateholder shall provide written notice of its exercise of such option to
the Securities Administrator, the Issuer, the Owner Trustee and the Master
Servicer at least 15 days prior to its exercise. Following receipt of the
notice, the Securities Administrator shall provide written notice to the
Noteholders of the final payment on the Notes. In addition, the Majority
Certificateholder shall, not less than one Business Day prior to the proposed
Payment Date on which such redemption is to be made, deposit the Redemption
Price specified in (a) above with the Securities Administrator, who shall
deposit the Redemption Price into the Payment Account and shall, on the Payment
Date after receipt of the funds, apply such funds to make final payments of
principal and interest on the Notes in accordance with Section 3.03 hereof and
payment to the Securities Administrator and the Master Servicer as set forth in
(a) above, and this Indenture shall be discharged subject to the provisions of
Section 4.10 hereof. If for any reason the amount deposited by the Majority
Certificateholder is not sufficient to make such redemption or such redemption
cannot be completed for any reason, (a) the amount so deposited by the Majority
Certificateholder with the Securities Administrator shall be immediately
returned to the Majority Certificateholder in full and shall not be used for any
other purpose or be deemed to be part of the Trust Estate and (b) the Note
Principal Balance of the Notes shall continue to bear interest at the related
Note Interest Rate.

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                                       59

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                                   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 the
Rating Agencies, the Issuer, the Indenture Trustee and the Securities
Administrator, when authorized by an Issuer Request, at any time and from time
to time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Indenture Trustee and 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) to cure any ambiguity, to correct or supplement
         any provision herein or in any supplemental indenture that may be
         inconsistent with any other provision herein or in any supplemental
         indenture;

                           (vi) to make any other provisions with respect to
         matters or questions arising under this Indenture or in any
         supplemental indenture; provided, that such action shall not materially
         and adversely affect the interests of the Holders of the Notes;
         provided further, that such supplemental indenture will be deemed to
         not materially and adversely affect the interests of the Holders of the
         Notes if a Rating Confirmation is received with respect to such
         supplemental indenture; or

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

provided, however, that no such indenture supplements shall be entered into
unless the Indenture Trustee and the Securities Administrator shall have
received an Opinion of Counsel not at the expense of the Indenture Trustee or
the Securities Administrator as to the enforceability of any such indenture
supplement and to the effect that (i) such indenture supplement is permitted
hereunder and will not

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materially and adversely affect the Holders of the Notes and (ii) entering into
such indenture supplement will not result in a "substantial modification" of the
Notes under Treasury Regulation Section 1.1001-3 or adversely affect the
indebtedness status of the Class A-1 Notes and Class A-2 Notes and any of the
Notes with respect to which a "will be debt" opinion has been rendered by
nationally recognized tax counsel and furnished to the Securities Administrator.

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

         (b) The Issuer, the Securities Administrator and the Indenture Trustee,
when authorized by an Issuer Request, in the case of the Securities
Administrator and the Indenture Trustee may, also without the consent of any of
the Holders of the Notes and prior notice to the Rating Agency, enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, this Indenture or of modifying in any manner the rights of the Holders of
the Notes under this Indenture; provided, however, that such action as evidenced
by an Opinion of Counsel, (i) is permitted by this Indenture, (ii) shall not
adversely affect in any material respect the interests of any Noteholder and
(iii) if 100% of the Certificates and Class A-3 Notes, Class A-4 Notes and
Subordinate Notes (other than any Class A-3 Notes, Class A-4 Notes or
Subordinate Notes with respect to which a "will be debt" opinion has been
rendered by nationally recognized tax counsel and furnished to the Securities
Administrator) are not owned by the Investor, cause the Issuer to be subject to
an entity level tax for federal income tax purposes.

         Section 9.02 SUPPLEMENTAL INDENTURES WITH CONSENT OF NOTEHOLDERS. The
Issuer, the Securities Administrator and the Indenture Trustee, when authorized
by an Issuer Request in the case of the Securities Administrator and the
Indenture Trustee, also may, with prior notice to the Rating Agencies and, with
the consent Holders of not less than a majority of the Note Principal Balance of
each Class of Notes affected thereby, by Act (as defined in Section 10.03
hereof) of such Holders delivered to the Issuer, the Securities Administrator
and the Indenture Trustee, enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Holders of the Notes under this Indenture; PROVIDED,
HOWEVER, that no such supplemental indenture shall, without the consent of the
Holder of each 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 or 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 Trust Estate and 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;

                           (ii) reduce the percentage of the Note Principal
         Balances of the Notes, or any Class of Notes, the consent of the
         Holders of which is required for any such supplemental indenture, or
         the consent of the Holders of which is required for any waiver of
         compliance

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         with certain provisions of this Indenture or certain defaults hereunder
         and their consequences provided for in this Indenture;

                           (iii) modify or alter the provisions of the proviso
         to the definition of the term "Outstanding" or modify or alter the
         exception in the definition of the term "Holder";

                           (iv) reduce the percentage of the Note Principal
         Balances of the Notes, or any Class of Notes, required to direct the
         Indenture Trustee to direct the Issuer to sell or liquidate the Trust
         Estate pursuant to Section 5.04 hereof;

                           (v) modify any provision of this Section 9.02 except
         to increase any percentage specified herein or to provide that certain
         additional provisions of this Indenture or the Basic Documents cannot
         be modified or waived without the consent of the Holder of each Note
         affected thereby;

                           (vi) modify any of the provisions of this Indenture
         in such manner as to affect the calculation of the amount of any
         payment of interest or principal due on any Note on any Payment Date
         (including the calculation of any of the individual components of such
         calculation); or

                           (vii) permit the creation of any lien ranking prior
         to or on a parity with the lien of this Indenture with respect to any
         part of the Trust Estate or, except as otherwise permitted or
         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;

and PROVIDED, FURTHER, that such action shall not, as evidenced by an Opinion of
Counsel, cause the Issuer, if 100% of the Certificates and Class A-3 Notes,
Class A-4 Notes and Subordinate Notes (other than any Class A-3 Notes, Class A-4
Notes or Subordinate Notes with respect to which a "will be debt" opinion has
been rendered by nationally recognized tax counsel and furnished to the
Securities Administrator) are not owned by the investor to be subject to an
entity level tax for federal income tax purposes.

         Any such action shall not adversely affect in any material respect the
interest of any Holder (other than a Holder who shall consent to such
supplemental indenture) as evidenced by an Opinion of Counsel (provided by the
Person requesting such supplemental indenture) delivered to the Indenture
Trustee and the Securities Administrator.

         It shall not be necessary for any Act of Noteholders under this Section
9.02 to approve the particular form of any proposed supplemental indenture, but
it shall be sufficient if such Act shall approve the substance thereof.

         Promptly after the execution by the Issuer, the Securities
Administrator and the Indenture Trustee of any supplemental indenture pursuant
to this Section 9.02, the Securities Administrator 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. Any
failure of the

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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 Indenture Trustee and the Securities Administrator shall
be entitled to receive, and subject to Sections 6.01 and 6.02 hereof, shall be
fully protected in relying upon, an Opinion of Counsel not at the expense of the
Indenture Trustee or the Securities Administrator stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The
Indenture Trustee and the Securities Administrator each may, but shall not be
obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's or the Securities Administrator'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 Securities Administrator, 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 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 Securities Administrator 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.

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                                    ARTICLE X

                                  Miscellaneous

         Section 10.01 COMPLIANCE CERTIFICATES AND OPINIONS, ETC. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee (i) an Officer's Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with and (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that, in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture,
no additional certificate or opinion need be furnished.

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

                  (1) 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;

                  (2) 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;

                  (3) 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;

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

                  (5) if the signatory of such certificate or opinion is
         required to be Independent, the statement required by the definition of
         the term "Independent".

         (b) (i) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 10.01 (a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer's
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days prior to such deposit) to the
Issuer of the Collateral or other property or securities to be so deposited and
a report from a nationally recognized accounting firm verifying such value.

                           (ii) Whenever the Issuer is required to furnish to
         the Indenture Trustee an Officer's Certificate certifying or stating
         the opinion of any signer thereof as to the matters described in clause
         (i) above, the Issuer shall also deliver to the Indenture Trustee an
         Independent Certificate from a nationally recognized accounting firm as
         to the same matters, if the fair value of the securities to be so
         deposited and of all other such securities made the basis of any such
         withdrawal or release since the commencement of the then current fiscal

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         year of the Issuer, as set forth in the certificates delivered pursuant
         to clause (i) above and this clause (ii), is 10% or more of the Note
         Principal Balances of the Notes, but such a certificate need not be
         furnished with respect to any securities so deposited, if the fair
         value thereof as set forth in the related Officer's Certificate is less
         than $25,000 or less than one percent of the then outstanding Note
         Principal Balances of the Notes.

                           (iii) Whenever any property or securities are to be
         released from the lien of this Indenture, the Issuer shall also furnish
         to the Indenture Trustee an Officer's Certificate certifying or stating
         the opinion of each person signing such certificate as to the fair
         value (within 90 days prior to such release) of the property or
         securities proposed to be released and stating that in the opinion of
         such person the proposed release will not impair the security under
         this Indenture in contravention of the provisions hereof.

                           (iv) Whenever the Issuer is required to furnish to
         the Indenture Trustee an Officer's Certificate certifying or stating
         the opinion of any signer thereof as to the matters described in clause
         (iii) above, the Issuer shall also furnish to the Indenture Trustee an
         Independent Certificate as to the same matters if the fair value of the
         property or securities and of all other property or securities released
         from the lien of this Indenture since the commencement of the
         then-current calendar year, as set forth in the certificates required
         by clause (iii) above and this clause (iv), equals 10% or more of the
         Note Principal Balances of the Notes, but such certificate need not be
         furnished in the case of any release of property or securities if the
         fair value thereof as set forth in the related Officer's Certificate is
         less than $25,000 or less than one percent of the then outstanding Note
         Principal Balances of the Notes.

         Section 10.02 FORM OF DOCUMENTS DELIVERED TO INDENTURE TRUSTEE. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

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

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

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

         Section 10.03 ACTS OF NOTEHOLDERS. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Noteholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Indenture Trustee, and,
where it is hereby expressly required, to the Issuer. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the "Act" of the Noteholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 6.01 hereof) conclusive in favor of the Indenture
Trustee and the Issuer, if made in the manner provided in this Section 10.03
hereof.

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

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

         (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 10.04 NOTICES ETC., TO INDENTURE TRUSTEE ISSUER, SECURITIES
ADMINISTRATOR 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 the
         Corporate Trust Office. The Indenture Trustee shall promptly transmit
         any notice received by it from the Noteholders to the Issuer;

                           (ii) the Securities Administrator by any Noteholder
         or by the Issuer shall be sufficient for every purpose hereunder if
         made, given, furnished or filed in writing to or

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         with the Securities Administrator at Wells Fargo Bank, National
         Association, P.O. Box 98, Columbia Maryland 21046 (or, in the case of
         overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland
         21045), Attn: BART 2005-2, or such other address as may hereafter be
         furnished to the other parties hereto in writing. The Securities
         Administrator shall promptly transmit any notice received by it from
         the Noteholders to the Issuer; or

                           (iii) the Issuer by the Indenture Trustee or by any
         Noteholder shall be sufficient for every purpose hereunder if made,
         given, furnished or filed in writing and mailed first-class, postage
         prepaid to the Issuer addressed to: Bear Stearns ARM Trust 2005-2, in
         care of Wilmington Trust Company, Rodney Square North, 1100 North
         Market Street, Wilmington, Delaware 19990-0001, Attention: Corporate
         Trust Administration, 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, mailed first-class postage pre-paid: in the case of Moody's, to
Moody's, at the following address: Moody's Investors Service, Inc., 99 Church
Street, New York, New York 10007; and in the case of S&P, Standard & Poor's, a
division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York
10041; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties.

         Section 10.05 NOTICES TO NOTEHOLDERS; WAIVER. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if made, given,
furnished or filed in writing and mailed, first-class, postage prepaid to each
Noteholder affected by such event, at such Person's address as it appears on the
Note Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to
Noteholders is given by mail, neither the failure to mail such notice nor any
defect in any notice so mailed to any particular Noteholder shall affect the
sufficiency of such notice with respect to other Noteholders, and any notice
that is mailed in the manner herein provided shall conclusively be presumed to
have been duly given regardless of whether such notice is in fact actually
received.

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

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

                                       67

<PAGE>

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

         Section 10.06 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 ss.ss. 310 through 317 that impose duties on any
Person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

         Section 10.07 EFFECT OF HEADINGS. The Article and Section headings
herein are for convenience only and shall not affect the construction hereof.

         Section 10.08 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 10.09 SEPARABILITY. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         Section 10.10 LEGAL HOLIDAYS. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

         Section 10.11 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW
YORK GENERAL OBLIGATIONS LAWS, WHICH SHALL APPLY HERETO), AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

         Section 10.12 COUNTERPARTS. This Indenture may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

         Section 10.13 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
at its expense (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.

                                       68

<PAGE>

         Section 10.14 ISSUER OBLIGATION. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Securities Administrator on the Notes or under this Indenture or any
certificate or other writing delivered in connection herewith or therewith,
against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director, employee or agent of the
Securities Administrator, the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Securities Administrator, 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 individual
capacity) 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 Article
VI, VII and VIII of the Trust Agreement.

         Section 10.15 NO PETITION. The Indenture Trustee and the Securities
Administrator, by entering into this Indenture, each Noteholder, by accepting a
Note and each Certificateholder, by accepting a Certificate, hereby covenant and
agree that they will not at any time prior to one year from the date of
termination hereof, 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 Basic Documents; provided however, that nothing herein shall prohibit the
Indenture Trustee from filing proofs of claim in any proceeding.

         Section 10.16 INSPECTION. The Issuer agrees that, at its expense, on
reasonable prior notice, it shall permit any representative of the Indenture
Trustee or the Securities Administrator, 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 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 or the Securities Administrator may reasonably determine that
such disclosure is consistent with its obligations hereunder.

                                       69

<PAGE>

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

                                   BEAR STEARNS ARM TRUST 2005-2, as
                                   Issuer
                                   Wilmington Trust Company, not in its
                                   individual capacity but solely as Owner
                                   Trustee

                                   By: /s/ Joann A. Rozell
                                       -----------------------------------
                                   Name:   Joann A. Rozell
                                   Title:  Assistant Vice President

                                   WELLS FARGO BANK, NATIONAL
                                   ASSOCIATION, as Securities Administrator

                                   By: /s/ Stacey Taylor
                                       -----------------------------------
                                   Name:   Stacey Taylor
                                   Title:  Assistant Vice President

                                   U.S. Bank National Association, as Indenture
                                   Trustee

                                   By: /s/ Vaneta Bernard
                                       -----------------------------------
                                   Name:   Vaneta Bernard
                                   Title:  Vice President

<PAGE>

STATE OF MARYLAND           )
                            ) ss.:
COUNTY OF HOWARD            )

         On the 28th day of February 2005 before me, a notary public in and for
said State, personally appeared Stacey M. Taylor, known to me to be an Assistant
Vice President of Wells Fargo Bank, National Association, the entity that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said entity, and acknowledged to me that such entity
executed the within instrument.

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

                                                              __________________
                                                              Notary Public

[Notarial Seal]

<PAGE>

STATE OF DELAWARE             )
                              ) ss.:
COUNTY OF NEW CASTLE          )

         On this 28th day of February, 2005, before me personally appeared
____________________ to me known, who being by me duly sworn, did depose and
say, that he is a Financial Services Officer of the Owner Trustee, one of the
entities described in and which executed the above instrument; and that he
signed her name thereto by like order.

                                                              Notary Public

                                                              __________________
                                                              Notary Public

[NOTARIAL SEAL]

<PAGE>

STATE OF MASSACHUSETTS          )
                                ) ss.:
COUNTY OF SUFFOLK               )

         On this 28th day of February, 2005, before me personally appeared
________________ to me known, who being by me duly sworn, did depose and say,
that she is the _______________ of the Indenture Trustee, one of the
corporations described in and which executed the above instrument; and that he
signed his name thereto by like order.

                                                              Notary Public

                                                              __________________
                                                              Notary Public

[NOTARIAL SEAL]

<PAGE>

                                   EXHIBIT A-1

                          FORM OF CLASS A-[1][2] NOTES

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

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN IS DEEMED TO
REPRESENT THAT EITHER (1) IT IS NOT ACQUIRING THE NOTE WITH PLAN ASSETS OR (2)
(A) THE ACQUISITION, HOLDING AND TRANSFER OF A NOTE WILL NOT GIVE RISE TO A
NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE AND (B) THE NOTES ARE RATED INVESTMENT GRADE OR BETTER AND SUCH PERSON
BELIEVES THAT THE NOTES ARE PROPERLY TREATED AS INDEBTEDNESS WITHOUT SUBSTANTIAL
EQUITY FEATURES FOR PURPOSES OF THE DOL REGULATIONS, AND AGREES TO SO TREAT THE
NOTES. ALTERNATIVELY, REGARDLESS OF THE RATING OF THE NOTES, SUCH PERSON MAY
PROVIDE THE INDENTURE TRUSTEE AND THE NOTE REGISTRAR WITH AN OPINION OF COUNSEL,
WHICH OPINION OF COUNSEL WILL NOT BE AT THE EXPENSE OF THE ISSUER, THE SELLER,
THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE SECURITIES ADMINISTRATOR, THE NOTE
REGISTRAR, THE MASTER SERVICER OR ANY SERVICER, WHICH OPINES THAT THE
ACQUISITION, HOLDING AND TRANSFER OF SUCH NOTE OR INTEREST THEREIN IS
PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE AND WILL NOT
SUBJECT THE ISSUER, THE SELLER, THE DEPOSITOR, THE OWNER TRUSTEE, THE INDENTURE
TRUSTEE, THE SECURITIES ADMINISTRATOR, THE NOTE REGISTRAR, THE MASTER SERVICER
OR ANY SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE
INDENTURE.

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

                                      A-1-1

<PAGE>

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

                                      A-1-2

<PAGE>

                          BEAR STEARNS ARM TRUST 2005-2
                      MORTGAGE-BACKED NOTES, SERIES 2005-2
                                 CLASS A-[1][2]

AGGREGATE NOTE PRINCIPAL                             NOTE INTEREST
BALANCE: $[________________]                         RATE: Adjustable Rate

INITIAL NOTE PRINCIPAL                               NOTE NO. 1
BALANCE OF THIS NOTE: $[_____________]

                                                     CUSIP NO: [_______________]

                  BEAR STEARNS ARM TRUST 2005-2 (the "Issuer"), a Delaware
statutory trust, for value received, hereby promises to pay to Cede & Co. or
registered assigns, the principal sum of $[____________________] in monthly
installments on the twenty-fifth day of each month or, if such day is not a
Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in March 2005 and ending on or before the Payment Date occurring in
[__________ 20___] (the "Final Scheduled Payment Date") and to pay interest on
the Note Principal Balance of this Note (this "Note") outstanding from time to
time as provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2005-2 (the "Notes"), issued under an Indenture
dated as of February 28, 2005 (the "Indenture"), among the Issuer, Wells Fargo
Bank, National Association, as Securities Administrator and U.S. Bank National
Association, as indenture trustee (the "Indenture Trustee", which term includes
any successor Indenture Trustee under the Indenture) and to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights thereunder of the Issuer, the Indenture Trustee, and the
Holders of the Notes and the terms upon which the Notes are to be authenticated
and delivered. All terms used in this Note which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, minus (i) all amounts distributed in
respect of principal with respect to such Class of Notes and (ii) the aggregate
amount of any reductions in the Note Principal Balance thereof deemed to have
occurred in connection with allocations of Realized Losses on all prior Payment
Dates in accordance with the Indenture, taking account of its applicable Loss
Allocation Limitation, plus (iii) any Subsequent Recoveries allocated thereto.

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, 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

                                      A-1-3

<PAGE>

to this Note shall be equal to this Note's pro rata share of the aggregate
payments on all Class A- [1][2] Notes as described above, and shall be applied
as between interest and principal as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         The Mortgage Loans are subject to purchase in whole, but not in part,
by the Majority Certificateholder on any Payment Date on or after the Payment
Date on which the aggregate Scheduled Principal Balance of the Mortgage Loans as
of the end of the prior Due Period is less than or equal to 10% of the aggregate
Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date.

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class A-[1][2] Notes,
and each Holder hereof, by its acceptance of this Note, agrees that (i) such
Note will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the
Seller, the Master Servicer, the Securities Administrator or any of their
respective affiliates, or to the assets of any of the foregoing entities, except
the assets of the Issuer pledged to secure the Class A-[1][2] Notes pursuant to
the Indenture and the rights conveyed to the Issuer under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Securities
Administrator at least five Business Days prior to the Record Date, any payment
of principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all Holders of this Note and of any Note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. The final payment of this Note shall be payable
upon presentation and surrender thereof on or after the Payment Date thereof at
the office designated by the Securities Administrator or the Office or agency of
the Issuer maintained by it for such purpose pursuant to Section 4.02 of the
Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

                                      A-1-4

<PAGE>

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this Note,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         The failure to pay any Net Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Notes are rated investment grade or better and such
person believes that the Notes are properly treated as indebtedness without
substantial equity features for purposes of the DOL Regulations, and agrees to
so treat the Notes. Alternatively, regardless of the rating of the Notes, such
person may provide the Indenture Trustee and the Note Registrar with an opinion
of counsel, which opinion of counsel will not be at the expense of the Issuer,
the Seller, the Owner Trustee, the Indenture Trustee, the Master Servicer, the
Securities Administrator, the Note Registrar or any servicer, which opines that
the acquisition, holding and transfer of such Note or interest therein is
permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Issuer, the Seller, the Depositor, the Owner Trustee, the Indenture
Trustee, the Note Registrar, the Securities Administrator, the Master Servicer
or any servicer to any obligation in addition to those undertaken in the
Indenture and the other Basic Documents.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Securities Administrator, one or more new
Notes of any authorized denominations and of a like aggregate then outstanding
Note Principal Balance, will be issued to the designated transferee or
transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee, the Securities Administrator and any agent of
the Issuer, the Securities Administrator or the Indenture Trustee may treat the
Person in whose name this Note is registered as the owner of such Note (i) on
the applicable Record Date for the purpose of making payments and interest of
such Note, and (ii) on any other date for all other purposes whatsoever, as the
owner hereof, whether or not this Note be overdue, and none of the Issuer, the
Securities

                                      A-1-5

<PAGE>

Administrator, the Indenture Trustee nor any such agent of the Issuer, the
Securities Administrator or the Indenture Trustee 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 by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes, to waive any past Event of Default and its consequences except an
Event of Default (a) with respect to payment of principal of or interest on any
of the Notes, or (b) in respect of a covenant or provision of the Indenture
which cannot be modified or amended without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof, of this
Note (or any one or more predecessor Notes) shall bind the Holder of every 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 such
Note. The Indenture also permits the Issuer, the Indenture Trustee and the
Securities Administrator, following prior notice to the Rating Agencies, to
amend or waive certain terms and conditions set forth in the Indenture without
the consent of the Holders of the Notes issued thereunder.

         Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The
Notes will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Notes
are exchangeable for a like aggregate then outstanding Note Principal Balance of
Notes of different authorized denominations, as requested by the Holder
surrendering same.

         Unless the Certificate of Authentication hereon has been executed by
the Securities Administrator by manual signature, this Note shall not be
entitled to any benefit under the Indenture, or be valid or obligatory for any
purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

                                      A-1-6

<PAGE>

                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed.

Dated: February 28, 2005

                                              BEAR STEARNS ARM TRUST 2005-2

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

                                              By: ______________________________
                                                  Authorized Signatory

            SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-[1][2] Notes referred to in the within-mentioned
Indenture.

                                               WELLS FARGO BANK, NATIONAL
                                               ASSOCIATION, as Securities
                                               Administrator

                                               BY:  ________________________
                                                    Authorized Signatory

                                      A-1-7

<PAGE>

                                  ABBREVIATIONS
                                  -------------

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

         TEN COM            --      as tenants in common
         TEN ENT            --      as tenants by the entireties
         JT TEN             --      as joint tenants with right of survivorship
                                    and not as tenants in common
UNIF GIFT MIN ACT           --      __________ Custodian

                                    ------------------------------
                                      (Cust)           (Minor)

                                    under Uniform Gifts to Minor Act
                                    ---------------------
                                                           (State)

     Additional abbreviations may also be used though not in the above list.

                                      A-1-8

<PAGE>

                                   ASSIGNMENT
                                   ----------

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

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

                      ____________________________________

                      ____________________________________

                      ____________________________________
  (Please print or typewrite name and address, including zip code, 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 by
                           -----------------------------------------------------

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

                                      A-1-9

<PAGE>

                                   EXHIBIT A-2

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE [CLASS A-1 NOTES][CLASS A-2
NOTES] AS DESCRIBED IN THE INDENTURE.

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR
TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR
TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE
PROVISIONS OF THE INDENTURE.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE TRANSFEREE IS NOT ACQUIRING
THE NOTE WITH PLAN ASSETS OR UNLESS THE INDENTURE TRUSTEE AND THE NOTE REGISTRAR
ARE PROVIDED WITH AN OPINION OF COUNSEL TO THE EFFECT THAT THE PURCHASE OF THE
NOTES IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN ANY
PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE AND WILL NOT
SUBJECT THE INDENTURE TRUSTEE, THE ISSUER, THE SELLER, THE SECURITIES
ADMINISTRATOR, THE MASTER SERVICER, ANY SERVICER OR THE NOTE REGISTRAR TO ANY
OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER ERISA OR
SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE INDENTURE,
WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE DEPOSITOR, THE OWNER
TRUSTEE, THE INDENTURE TRUSTEE, THE NOTE REGISTRAR OR THE SECURITIES
ADMINISTRATOR.

NO TRANSFER OF THIS NOTE SHALL BE MADE, SO LONG AS THE CLASS A-1 NOTES AND CLASS
A-2 NOTES, AND ANY CLASS A-3 NOTES, CLASS A-4 NOTES AND SUBORDINATE NOTES WITH
RESPECT TO WHICH A "WILL BE DEBT" OPINION HAS BEEN RENDERED BY NATIONALLY
RECOGNIZED TAX COUNSEL ARE OUTSTANDING, UNLESS (A) A "WILL BE DEBT" OPINION
SHALL HAVE BEEN RENDERED BY NATIONALLY RECOGNIZED TAX COUNSEL WITH RESPECT TO IT
AND FURNISHED TO THE SECURITIES ADMINISTRATOR, OR (B) THE TRANSFEREE SHALL HAVE
DELIVERED TO THE OWNER TRUSTEE, THE NOTE REGISTRAR, THE SECURITIES ADMINISTRATOR
AND THE INDENTURE TRUSTEE A CERTIFICATE CERTIFYING THAT (1) IT IS A REAL
INVESTMENT TRUST ("REIT") OR A QUALIFIED REIT SUBSIDIARY ("QRS") WITHIN THE
MEANING OF SECTION 856(A) OR SECTION 856(I) OF THE CODE OR AN ENTITY DISREGARDED
AS AN ENTITY SEPARATE FROM A REIT OR A QRS AND (2) FOLLOWING THE TRANSFER, 100%
OF THE CERTIFICATES AND CLASS A-3 NOTES, CLASS A-4 NOTES AND SUBORDINATE NOTES
(OTHER THAN ANY CLASS A-3 NOTES, CLASS A-4 NOTES AND SUBORDINATE NOTES WITH
RESPECT TO WHICH A "WILL BE DEBT" OPINION HAS BEEN RENDERED BY NATIONALLY
RECOGNIZED TAX COUNSEL AND FURNISHED TO THE SECURITIES

                                      A-2-1

<PAGE>

ADMINISTRATOR) WILL BE OWNED BY A REIT, DIRECTLY OR INDIRECTLY THROUGH ONE OR
MORE QRSS OF SUCH REIT OR ONE OR MORE ENTITIES DISREGARDED AS ENTITIES SEPARATE
FROM SUCH REIT OR SUCH QRSS; PROVIDED THAT (X) THIS NOTE MAY BE PLEDGED TO
SECURE INDEBTEDNESS AND MAY BE THE SUBJECT OF REPURCHASE AGREEMENTS TREATED AS
SECURED INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES, AND (Y) THIS NOTE MAY BE
TRANSFERRED BY A RELATED LENDER UNDER ANY SUCH RELATED LOAN AGREEMENT OR
REPURCHASE AGREEMENT UPON A DEFAULT UNDER ANY SUCH INDEBTEDNESS, IN WHICH CASE
THE TRANSFEROR SHALL DELIVER TO THE NOTE REGISTRAR, THE SECURITIES
ADMINISTRATOR, THE OWNER TRUSTEE AND THE INDENTURE TRUSTEE A CERTIFICATE
CERTIFYING TO SUCH EFFECT.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

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

                                      A-2-2

<PAGE>

                          BEAR STEARNS ARM TRUST 2005-2
                      MORTGAGE-BACKED NOTES, SERIES 2005-2
                                 CLASS A-[3][4]

AGGREGATE NOTE PRINCIPAL                                  NOTE INTEREST
BALANCE: $ [________]                                     RATE: Variable Rate

INITIAL NOTE PRINCIPAL                                    NOTE NO. 1
BALANCE OF THIS NOTE: $ [________]

PERCENTAGE INTEREST: 100%                                 CUSIP NO: [________]

         BEAR STEARNS ARM TRUST 2005-2 (the "Issuer"), a Delaware statutory
trust, for value received, hereby promises to pay to Bear, Stearns Securities
Corp. or registered assigns, the principal sum of $[________]in monthly
installments on the twenty-fifth day of each month or, if such day is not a
Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in March 2005 and ending on or before the Payment Date occurring in
March 2035 (the "Final Scheduled Payment Date") and to pay interest on the Note
Principal Balance of this Note (this "Note") outstanding from time to time as
provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2005-2 (the "Notes"), issued under an Indenture
dated as of February 28, 2005 (the "Indenture"), among the Issuer, Wells Fargo
Bank, N.A., as securities administrator and U.S. Bank National Association as
indenture trustee (the "Indenture Trustee", which term includes any successor
Indenture Trustee under the Indenture) to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights thereunder of the Issuer, the Indenture Trustee, and the Holders of the
Notes and the terms upon which the Notes are to be authenticated and delivered.
All terms used in this Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, minus (i) all amounts distributed in
respect of principal with respect to such Class of Notes and (ii) the aggregate
amount of any reductions in the Note Principal Balance thereof deemed to have
occurred in connection with allocations of Realized Losses on all prior Payment
Dates in accordance with the Indenture, taking account of its applicable Loss
Allocation Limitation, plus (iii) any Subsequent Recoveries allocated thereto.

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, 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

                                      A-2-3

<PAGE>

be equal to this Note's pro rata share of the aggregate payments on all Class
A-[3][4] Notes as described above, and shall be applied as between interest and
principal as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         The Mortgage Loans are subject to purchase in whole, but not in part,
by the Majority Certificateholder, on any Payment Date on or after the Payment
Date on which the aggregate Scheduled Principal Balance of the Mortgage Loans as
of the end of the prior Due Period is less than or equal to 10% of the aggregate
Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date.

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class A-[3][4] Notes,
and each Holder hereof, by its acceptance of this Note, agrees that (i) such
Note will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the
Seller, the Master Servicer the Securities Administrator or any of their
respective affiliates, or to the assets of any of the foregoing entities, except
the assets of the Issuer pledged to secure the Class A-[3][4] Notes pursuant to
the Indenture and the rights conveyed to the Issuer under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Securities
Administrator at least five Business Days prior to the Record Date, any payment
of principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all Holders of this Note and of any Note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. The final payment of this Note shall be payable
upon presentation and surrender thereof on or after the Payment Date thereof at
the Office designated by the Securities Administrator or the office or agency of
the Issuer maintained by it for such purpose pursuant to the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the

                                      A-2-4

<PAGE>

entire unpaid Note Principal Balance of the Notes, the amount payable to the
Holder of this Note will be equal to the sum of the unpaid Note Principal
Balance of this Note, together with accrued and unpaid interest thereon as
described in the Indenture. The Indenture provides that, notwithstanding the
acceleration of the maturity of the Notes, under certain circumstances specified
therein, all amounts collected as proceeds of the Trust Estate securing the
Notes or otherwise shall continue to be applied to payments of principal of and
interest on the Notes as if they had not been declared due and payable.

         The failure to pay any Net Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         No transfer, sale, pledge or other disposition of this Note or interest
herein shall be made unless that transfer, sale, pledge or other disposition is
exempt from the registration and/or qualification requirements of the Securities
Act and any applicable state securities laws, or is otherwise made in accordance
with the Securities Act and such state securities laws. If a transfer of this
Note is to be made without registration under the Securities Act (other than in
connection with the initial issuance thereof or a transfer thereof by the
Depositor or one of its Affiliates), then the Note Registrar shall refuse to
register such transfer unless (i) it receives (and upon receipt, may
conclusively rely upon) a certificate substantially in the form attached as
Exhibit C to the Indenture or (ii) it receives a written Opinion of Counsel
acceptable to and in form and substance satisfactory to the Note Registrar and
the Indenture Trustee and the transferee executes a representation letter
substantially in the form of Exhibit D attached to the Indenture, and transferor
executes a representation letter substantially in the form of Exhibit E attached
to the Indenture, each acceptable to and in form and substance satisfactory to
the Note Registrar and the Indenture Trustee. None of the Issuer, the Depositor,
the Indenture Trustee or the Note Registrar is obligated to register or qualify
any Notes under the Securities Act or any other securities law or to take any
action not otherwise required under the Indenture to permit the transfer of this
Note or interest herein without registration or qualification. Any Noteholder
desiring to effect a transfer of this Note or interest herein shall, and does
hereby agree to, indemnify the Issuer, the Depositor, the Owner Trustee, the
Indenture Trustee and the Note Registrar against any liability that may result
if the transfer is not so exempt or is not made in accordance with such federal
and state laws.

         No transfer of this Class A-[3][4] Note or any interest therein shall
be made to any Person unless the Indenture Trustee and the Note Registrar are
provided with an Opinion of Counsel which establishes to the satisfaction of the
Indenture Trustee and the Note Registrar that the purchase of a Class A-[3][4]
Note is permissible under applicable law, will not constitute or result in any
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Issuer, the Seller, the Owner Trustee, the Indenture Trustee, the
Master Servicer, any Servicer or the Note Registrar to any obligation or
liability (including obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those undertaken in this Agreement, which Opinion of
Counsel shall not be an expense of the Issuer, the Seller, the Owner Trustee,
the Indenture Trustee, the Securities Administrator, the Master Servicer, any
Servicer and the Note Registrar. In lieu of such Opinion of Counsel, a Person
acquiring a Class A-[3][4] Note may provide a certification in the form attached
to the Indenture, which the Depositor, the Owner Trustee, the Certificate
Registrar and the Master Servicer may rely upon without further inquiry or
investigation.

                                      A-2-5

<PAGE>

         No transfer of this Class A-[3][4] Note or any interest therein shall
be made to any Person , and the Note Registrar shall refuse to register any such
transfer, so long as the Class A-1 Notes and Class A-2 Notes, and any Class A-3
Notes, Class A-4 Notes or Subordinate Notes with respect to which a "will be
debt" opinion has been rendered by nationally recognized tax counsel, are
outstanding, unless (A) a "will be debt" opinion shall have been rendered by
nationally recognized tax counsel with respect to it and furnished to the
Securities Administrator, or (B) the transferee shall have delivered to the
Owner Trustee, the Note Registrar, the Securities Administrator and the
Indenture Trustee a certificate certifying that (i) it is a real estate
investment trust ("REIT") or a qualified REIT subsidiary ("QRS") within the
meaning of Section 856(a) or Section 856(i) of the Code or an entity disregarded
as an entity separate from a REIT or a QRS and (ii) following the transfer, 100%
of the Certificates and Class A-3 Notes, Class A-4 Notes and Subordinate Notes
(other than any Class A-3 Notes, Class A-4 Notes or Subordinate Notes with
respect to which a "will be debt" opinion has been rendered by nationally
recognized tax counsel and furnished to the Securities Administrator) will be
owned by a REIT, directly or indirectly through one or more qualified QRSs of
such REIT or one or more entities disregarded as entities separate from such
REIT or such QRSs; provided that (x) this Class A-[3][4] Note may be pledged to
secure indebtedness and may be the subject of repurchase agreements treated as
secured indebtedness for federal income tax purposes, and (y) this Class
A-[3][4] Note may be transferred by the related lender under any such related
loan agreement or repurchase agreement upon a default under any such
indebtedness, in which case the transferor shall deliver to the Note Registrar,
the Securities Administrator, the Owner Trustee and the Indenture Trustee a
certificate certifying to such effect.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Securities Administrator, one or more new
Notes of any authorized denominations and of a like aggregate then outstanding
Note Principal Balance, will be issued to the designated transferee or
transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee, the Securities Administrator and any agent of
the Issuer, the Securities Administrator or the Indenture Trustee may treat the
Person in whose name this Note is registered as the owner of such Note (i) on
the applicable Record Date for the purpose of making payments and interest of
such Note, and (ii) on any other date for all other purposes whatsoever, as the
owner hereof, whether or not this Note be overdue, and none of the Issuer, the
Securities Administrator, the Indenture Trustee nor any such agent of the
Issuer, Securities Administrator or the Indenture Trustee 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 by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes, to waive

                                      A-2-6

<PAGE>

any past Event of Default and its consequences except an Event of Default (a)
with respect to payment of principal of or interest on any of the Notes, or (b)
in respect of a covenant or provision of the Indenture which cannot be modified
or amended without the consent of the Holder of each Note. Any such waiver by
the Holder, at the time of the giving thereof, of this Note (or any one or more
predecessor Notes) shall bind the Holder of every 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 such Note. The Indenture
also permits the Issuer, the Indenture Trustee and the Securities Administrator,
following prior notice to the Rating Agencies, to amend or waive certain terms
and conditions set forth in the Indenture without the consent of the Holders of
the Notes issued thereunder.

         The Notes are exchangeable for a like aggregate then outstanding Note
Principal Balance of Notes of different authorized denominations, as requested
by the Holder surrendering same.

         Unless the Certificate of Authentication hereon has been executed by
the Securities Administrator by manual signature, this Note shall not be
entitled to any benefit under the Indenture, or be valid or obligatory for any
purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

                                      A-2-7

<PAGE>

                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed.

Dated: February 28, 2005

                                              BEAR STEARNS ARM TRUST 2005-2

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

                                              By: ______________________________
                                                  Authorized Signatory

            SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

This is one of the Class A-[3][4] Notes referred to in the within-mentioned
Indenture.

                                               WELLS FARGO BANK, NATIONAL
                                               ASSOCIATION, as Securities
                                               Administrator

                                               BY:  ________________________
                                                    Authorized Signatory

                                      A-2-8

<PAGE>

                                  ABBREVIATIONS
                                  -------------

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

         TEN COM            --      as tenants in common
         TEN ENT            --      as tenants by the entireties
         JT TEN             --      as joint tenants with right of survivorship
                                    and not as tenants in common
UNIF GIFT MIN ACT           --      __________ Custodian

                                    ------------------------------
                                      (Cust)           (Minor)

                                    under Uniform Gifts to Minor Act
                                    ---------------------
                                                           (State)

     Additional abbreviations may also be used though not in the above list.

                                      A-2-9

<PAGE>

                                   ASSIGNMENT
                                   ----------

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

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

                      ____________________________________

                      ____________________________________

                      ____________________________________
  (Please print or typewrite name and address, including zip code, 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 by
                           -----------------------------------------------------

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

                                     A-2-10

<PAGE>

                                   EXHIBIT A-3

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-1, CLASS A-2, CLASS
A-3, CLASS A-4, CLASS B-1, CLASS B-2 AND CLASS B-3 NOTES AS DESCRIBED IN THE
INDENTURE.

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR
TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR
TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE
PROVISIONS OF THE INDENTURE.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE TRANSFEREE IS NOT ACQUIRING
THE NOTE WITH PLAN ASSETS OR UNLESS THE INDENTURE TRUSTEE AND THE NOTE REGISTRAR
ARE PROVIDED WITH AN OPINION OF COUNSEL TO THE EFFECT THAT THE PURCHASE OF THE
NOTES IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN ANY
PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE AND WILL NOT
SUBJECT THE INDENTURE TRUSTEE, THE ISSUER, THE SELLER, THE MASTER SERVICER, ANY
SERVICER OR THE NOTE REGISTRAR TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER ERISA OR SECTION 4975 OF THE CODE) IN ADDITION
TO THOSE UNDERTAKEN IN THE INDENTURE, WHICH OPINION OF COUNSEL SHALL NOT BE AN
EXPENSE OF THE DEPOSITOR, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE NOTE
REGISTRAR OR THE SECURITIES ADMINISTRATOR.

NO TRANSFER OF THIS NOTE SHALL BE MADE, SO LONG AS THE CLASS A-1 NOTES AND CLASS
A-2 NOTES, AND ANY CLASS A-3 NOTES, CLASS A-4 NOTES AND SUBORDINATE NOTES WITH
RESPECT TO WHICH A "WILL BE DEBT" OPINION HAS BEEN RENDERED BY NATIONALLY
RECOGNIZED TAX COUNSEL ARE OUTSTANDING, UNLESS (A) A "WILL BE DEBT" OPINION
SHALL HAVE BEEN RENDERED BY NATIONALLY RECOGNIZED TAX COUNSEL WITH RESPECT TO IT
AND FURNISHED TO THE SECURITIES ADMINISTRATOR, OR (B) THE TRANSFEREE SHALL HAVE
DELIVERED TO THE OWNER TRUSTEE, THE NOTE REGISTRAR, THE SECURITIES ADMINISTRATOR
AND THE INDENTURE TRUSTEE A CERTIFICATE CERTIFYING THAT (1) IT IS A REAL
INVESTMENT TRUST ("REIT") OR A QUALIFIED REIT SUBSIDIARY ("QRS") WITHIN THE
MEANING OF SECTION 856(A) OR SECTION 856(I) OF THE CODE OR AN ENTITY DISREGARDED
AS AN ENTITY SEPARATE FROM A REIT OR A QRS AND (2) FOLLOWING THE TRANSFER, 100%
OF THE CERTIFICATES AND CLASS A-3 NOTES, CLASS A-4 NOTES AND SUBORDINATE NOTES
(OTHER THAN ANY CLASS A-3 NOTES, CLASS A-4 NOTES AND SUBORDINATE NOTES WITH
RESPECT TO WHICH A "WILL BE DEBT" OPINION HAS BEEN RENDERED BY NATIONALLY
RECOGNIZED TAX COUNSEL AND FURNISHED TO THE SECURITIES

                                      A-3-1

<PAGE>

ADMINISTRATOR) WILL BE OWNED BY A REIT, DIRECTLY OR INDIRECTLY THROUGH ONE OR
MORE QRSS OF SUCH REIT OR ONE OR MORE ENTITIES DISREGARDED AS ENTITIES SEPARATE
FROM SUCH REIT OR SUCH QRSS; PROVIDED THAT (X) THIS NOTE MAY BE PLEDGED TO
SECURE INDEBTEDNESS AND MAY BE THE SUBJECT OF REPURCHASE AGREEMENTS TREATED AS
SECURED INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES, AND (Y) THIS NOTE MAY BE
TRANSFERRED BY A RELATED LENDER UNDER ANY SUCH RELATED LOAN AGREEMENT OR
REPURCHASE AGREEMENT UPON A DEFAULT UNDER ANY SUCH INDEBTEDNESS, IN WHICH CASE
THE TRANSFEROR SHALL DELIVER TO THE NOTE REGISTRAR, THE SECURITIES
ADMINISTRATOR, THE OWNER TRUSTEE AND THE INDENTURE TRUSTEE A CERTIFICATE
CERTIFYING TO SUCH EFFECT.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

                                      A-3-2

<PAGE>

                          BEAR STEARNS ARM TRUST 2005-2
                      MORTGAGE-BACKED NOTES, SERIES 2005-2
                                    CLASS X-1

AGGREGATE NOTIONAL AMOUNT: $[______]                     NOTE INTEREST
                                                         RATE: Variable Rate
INITIAL NOTIONAL AMOUNT OF THIS NOTE:                    NOTE NO. 1
$[----------]

PERCENTAGE INTEREST: 100%                                CUSIP NO: [______]

         BEAR STEARNS ARM TRUST 2005-2 (the "Issuer"), a Delaware statutory
trust, for value received, hereby promises to pay to Bear, Stearns Securities
Corp. or registered assigns, interest hereon in monthly installments on the
twenty-fifth day of each month or, if such day is not a Business Day, the next
succeeding Business Day (each a "Payment Date"), commencing in March 2005 and
ending on or before the Payment Date occurring in March 2035 (the "Final
Scheduled Payment Date") and to pay interest on the Note Principal Balance of
this Note (this "Note") outstanding from time to time as provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2005-2 (the "Notes"), issued under an Indenture,
dated as of February 28, 2005 (the "Indenture"), among the Issuer, Wells Fargo
Bank, N.A. as securities administrator and U.S. Bank National Association as
indenture trustee (the "Indenture Trustee", which term includes any successor
Indenture Trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights thereunder of the Issuer, the Indenture Trustee and the Holders of the
Notes and the terms upon which the Notes are to be authenticated and delivered.
All terms used in this Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

         Payments of interest on this Note will be made on each Payment Date to
the Noteholder of record as of the related Record Date. The "Notional Amount" of
this Note as of any date of determination shall be calculated as set forth under
the Indenture.

         The interest on this Note are due and payable as described in the
Indenture, 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 as
provided in the Indenture.

         The Mortgage Loans are subject to purchase in whole, but not in part,
by the Majority Certificateholder, on any Payment Date on or after the Payment
Date on which the aggregate Scheduled Principal Balance of the Mortgage Loans as
of the end of the prior Due Period is less than or equal to 10% of aggregate
Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date.

                                      A-3-3

<PAGE>

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class X-1 Notes, and
each Holder hereof, by its acceptance of this Note, agrees that (i) such Note
will be limited in right of payment to amounts available from the Trust Estate
as provided in the Indenture and (ii) such Holder shall have no recourse to the
Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the Seller, the
Master Servicer, the Securities Administrator or any of their respective
affiliates, or to the assets of any of the foregoing entities, except the assets
of the Issuer pledged to secure the Class X-1 Notes pursuant to the Indenture
and the rights conveyed to the Issuer under the Indenture.

         Any payment of interest payable on this Note which is punctually paid
on the applicable Payment Date shall be paid to the Person in whose name such
Note is registered at the close of business on the Record Date for such Payment
Date by check mailed to such person's address as it appears in the Note Register
on such Record Date, except for the final installment of interest payable with
respect to such Note, which shall be payable as provided below. Notwithstanding
the foregoing, upon written request with appropriate instructions by the Holder
of this Note delivered to the Securities Administrator at least five Business
Days prior to the Record Date, any payment of principal or interest, other than
the final installment of interest, shall be made by wire transfer to an account
in the United States designated by such Holder. All reductions in the principal
amount of a Note effected by payments of principal made on any Payment Date
shall be binding upon all Holders of this Note and of any note issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof,
whether or not such payment is noted on such Note. The final payment of this
Note shall be payable upon presentation and surrender thereof on or after the
Payment Date thereof at the Office designated by the Securities Administrator or
the office or agency of the Issuer maintained by it for such purpose pursuant to
the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. The
Indenture provides that, notwithstanding the acceleration of the maturity of the
Notes, under certain circumstances specified therein, all amounts collected as
proceeds of the Trust Estate securing the Notes or otherwise shall continue to
be applied to payments of principal and interest on the Notes as if they had not
been declared due and payable.

         The failure to pay Accrued Note Interest on the Class X-1 Notes, shall
not constitute an Event of Default under the Indenture.

         No transfer, sale, pledge or other disposition of this Note or interest
herein shall be made unless that transfer, sale, pledge or other disposition is
exempt from the registration and/or qualification requirements of the Securities
Act and any applicable state securities laws, or is otherwise made in accordance
with the Securities Act and such state securities laws. If a transfer of this
Note is to be made without registration under the Securities Act (other than in
connection with

                                      A-3-4

<PAGE>

the initial issuance thereof or a transfer thereof by the Depositor or one of
its Affiliates), then the Note Registrar shall refuse to register such transfer
unless (i) it receives (and upon receipt, may conclusively rely upon) a
certificate substantially in the form attached as Exhibit C to the Indenture or
(ii) it receives a written Opinion of Counsel acceptable to and in form and
substance satisfactory to the Note Registrar and the Indenture Trustee and the
transferee executes a representation letter substantially in the form of Exhibit
D attached to the Indenture, and transferor executes a representation letter
substantially in the form of Exhibit E attached to the Indenture, each
acceptable to and in form and substance satisfactory to the Note Registrar and
the Indenture Trustee. None of the Issuer, the Depositor, the Indenture Trustee
or the Note Registrar is obligated to register or qualify any Notes under the
Securities Act or any other securities law or to take any action not otherwise
required under the Indenture to permit the transfer of this Note or interest
herein without registration or qualification. Any Noteholder desiring to effect
a transfer of this Note or interest herein shall, and does hereby agree to,
indemnify the Issuer, the Depositor, the Owner Trustee, the Indenture Trustee
and the Note Registrar against any liability that may result if the transfer is
not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Class X-1 Note or any interest therein shall be
made to any Person unless the Indenture Trustee and the Note Registrar are
provided with an Opinion of Counsel which establishes to the satisfaction of the
Indenture Trustee and the Note Registrar that the purchase of a Class X-1 Note
is permissible under applicable law, will not constitute or result in any
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Depositor, the Owner Trustee, the Indenture Trustee, the Securities
Administrator, the Note Registrar, any Servicer or the Master Servicer to any
obligation or liability (including obligations or liabilities under ERISA or
Section 4975 of the Code) in addition to those undertaken in this Agreement,
which Opinion of Counsel shall not be an expense of the Issuer, the Seller, the
Owner Trustee, the Indenture Trustee, the Master Servicer or the Note Registrar.
In lieu of such Opinion of Counsel, a Person acquiring a Class X-1 Note may
provide a certification in the form attached to the Indenture, which the
Indenture Trustee and the Note Registrar may rely upon without further inquiry
or investigation.

         No transfer of this Class X-1 Note or any interest therein shall be
made to any Person , and the Note Registrar shall refuse to register any such
transfer, so long as the Class A-1 Notes and Class A-2 Notes, and any Class A-3
Notes, Class A-4 Notes or Subordinate Notes with respect to which a "will be
debt" opinion has been rendered by nationally recognized tax counsel, are
outstanding, unless (A) a "will be debt" opinion shall have been rendered by
nationally recognized tax counsel with respect to it and furnished to the
Securities Administrator, or (B) the transferee shall have delivered to the
Owner Trustee, the Note Registrar, the Securities Administrator and the
Indenture Trustee a certificate certifying that (i) it is a real estate
investment trust ("REIT") or a qualified REIT subsidiary ("QRS") within the
meaning of Section 856(a) or Section 856(i) of the Code or an entity disregarded
as an entity separate from a REIT or a QRS and (ii) following the transfer, 100%
of the Certificates and Class A-3 Notes, Class A-4 Notes and Subordinate Notes
(other than any Class A-3 Notes, Class A-4 Notes or Subordinate Notes with
respect to which a "will be debt" opinion has been rendered by nationally
recognized tax counsel and furnished to the Securities Administrator) will be
owned by a REIT, directly or indirectly through one or more qualified QRSs of
such REIT or one or more entities disregarded as entities separate from such
REIT or such QRSs; provided that (x) this Class X-1 Note may be pledged to
secure indebtedness and may be the subject of repurchase agreements treated as
secured indebtedness for federal income tax purposes, and (y) this Class X-1

                                      A-3-5

<PAGE>

Note may be transferred by the related lender under any such related loan
agreement or repurchase agreement upon a default under any such indebtedness, in
which case the transferor shall deliver to the Note Registrar, the Securities
Administrator, the Owner Trustee and the Indenture Trustee a certificate
certifying to such effect.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Securities Administrator, one or more new
Notes of any authorized denominations and of a like aggregate then outstanding
Note Principal Balance, will be issued to the designated transferee or
transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee, the Securities Administrator and any agent of
the Issuer, the Securities Administrator or the Indenture Trustee may treat the
Person in whose name this Note is registered as the owner of such Note (i) on
the applicable Record Date for the purpose of making payments and interest of
such Note, and (ii) on any other date for all other purposes whatsoever, as the
owner hereof, whether or not this Note be overdue, and none of the Issuer, the
Securities Administrator, the Indenture Trustee nor any such agent of the
Issuer, Securities Administrator or the Indenture Trustee 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 by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes, to waive any past Event of Default and its consequences except an
Event of Default (a) with respect to payment of principal of or interest on any
of the Notes, or (b) in respect of a covenant or provision of the Indenture
which cannot be modified or amended without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof, of this
Note (or any one or more predecessor Notes) shall bind the Holder of every 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 such
Note. The Indenture also permits the Issuer, the Indenture Trustee and the
Securities Administrator, following prior notice to the Rating Agencies, to
amend or waive certain terms and conditions set forth in the Indenture without
the consent of the Holders of the Notes issued thereunder.

         The Notes are exchangeable for a like aggregate then outstanding Note
Principal Balance of Notes of different authorized denominations, as requested
by the Holder surrendering same.

         Unless the Certificate of Authentication hereon has been executed by
the Securities Administrator by manual signature, this Note shall not be
entitled to any benefit under the Indenture, or be valid or obligatory for any
purpose.

                                      A-3-6

<PAGE>

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

                                      A-3-7

<PAGE>

                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed.

Dated: February 28, 2005

                                              BEAR STEARNS ARM TRUST 2005-2

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

                                              By: ______________________________
                                                  Authorized Signatory

            SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

This is one of the Class X-1 Notes referred to in the within-mentioned
Indenture.

                                               WELLS FARGO BANK, NATIONAL
                                               ASSOCIATION, as Securities
                                               Administrator

                                               BY:  ________________________
                                                    Authorized Signatory

                                      A-3-8

<PAGE>

                                  ABBREVIATIONS
                                  -------------

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

         TEN COM            --      as tenants in common
         TEN ENT            --      as tenants by the entireties
         JT TEN             --      as joint tenants with right of survivorship
                                    and not as tenants in common
UNIF GIFT MIN ACT           --      __________ Custodian

                                    ------------------------------
                                      (Cust)           (Minor)

                                    under Uniform Gifts to Minor Act
                                    ---------------------
                                                           (State)

     Additional abbreviations may also be used though not in the above list.

                                      A-3-9

<PAGE>

                                   ASSIGNMENT
                                   ----------

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

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

                      ____________________________________

                      ____________________________________

                      ____________________________________
  (Please print or typewrite name and address, including zip code, 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 by
                           -----------------------------------------------------

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

                                     A-3-10

<PAGE>

                                   EXHIBIT A-4

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A-1, CLASS A-2, CLASS
A-3, CLASS A-4, [CLASS B-1][CLASS B-2][CLASS B-3][CLASS X-1][CLASS B-4] AND
[CLASS B-5] NOTES AS DESCRIBED IN THE INDENTURE.

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR
TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR
TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT
AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE
PROVISIONS OF THE INDENTURE.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE TRANSFEREE IS NOT ACQUIRING
THE NOTE WITH PLAN ASSETS OR UNLESS THE INDENTURE TRUSTEE AND THE NOTE REGISTRAR
ARE PROVIDED WITH AN OPINION OF COUNSEL TO THE EFFECT THAT THE PURCHASE OF THE
NOTES IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN ANY
PROHIBITED TRANSACTION UNDER ERISA OR SECTION 4975 OF THE CODE AND WILL NOT
SUBJECT THE INDENTURE TRUSTEE, THE ISSUER, THE SELLER, THE SECURITIES
ADMINISTRATOR, THE MASTER SERVICER, ANY SERVICER OR THE NOTE REGISTRAR TO ANY
OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER ERISA OR
SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE INDENTURE,
WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE DEPOSITOR, THE OWNER
TRUSTEE, THE INDENTURE TRUSTEE, THE NOTE REGISTRAR OR THE SECURITIES
ADMINISTRATOR.

NO TRANSFER OF THIS NOTE SHALL BE MADE, SO LONG AS THE CLASS A-1 NOTES AND CLASS
A-2 NOTES, AND ANY CLASS A-3 NOTES, CLASS A-4 NOTES AND SUBORDINATE NOTES WITH
RESPECT TO WHICH A "WILL BE DEBT" OPINION HAS BEEN RENDERED BY NATIONALLY
RECOGNIZED TAX COUNSEL ARE OUTSTANDING, UNLESS (A) A "WILL BE DEBT" OPINION
SHALL HAVE BEEN RENDERED BY NATIONALLY RECOGNIZED TAX COUNSEL WITH RESPECT TO IT
AND FURNISHED TO THE SECURITIES ADMINISTRATOR, OR (B) THE TRANSFEREE SHALL HAVE
DELIVERED TO THE OWNER TRUSTEE, THE NOTE REGISTRAR, THE SECURITIES ADMINISTRATOR
AND THE INDENTURE TRUSTEE A CERTIFICATE CERTIFYING THAT (1) IT IS A REAL
INVESTMENT TRUST ("REIT") OR A QUALIFIED REIT SUBSIDIARY ("QRS") WITHIN THE
MEANING OF SECTION 856(A) OR SECTION 856(I) OF THE CODE OR AN ENTITY DISREGARDED
AS AN ENTITY SEPARATE FROM A REIT OR A QRS AND (2) FOLLOWING THE TRANSFER, 100%
OF THE CERTIFICATES AND CLASS A-3 NOTES, CLASS A-4 NOTES AND SUBORDINATE NOTES
(OTHER THAN ANY CLASS A-3 NOTES, CLASS A-4 NOTES AND SUBORDINATE NOTES WITH
RESPECT TO WHICH A "WILL BE DEBT" OPINION HAS BEEN RENDERED BY

                                      A-4-1

<PAGE>

NATIONALLY RECOGNIZED TAX COUNSEL AND FURNISHED TO THE SECURITIES ADMINISTRATOR)
WILL BE OWNED BY A REIT, DIRECTLY OR INDIRECTLY THROUGH ONE OR MORE QRSS OF SUCH
REIT OR ONE OR MORE ENTITIES DISREGARDED AS ENTITIES SEPARATE FROM SUCH REIT OR
SUCH QRSS; PROVIDED THAT (X) THIS NOTE MAY BE PLEDGED TO SECURE INDEBTEDNESS AND
MAY BE THE SUBJECT OF REPURCHASE AGREEMENTS TREATED AS SECURED INDEBTEDNESS FOR
FEDERAL INCOME TAX PURPOSES, AND (Y) THIS NOTE MAY BE TRANSFERRED BY A RELATED
LENDER UNDER ANY SUCH RELATED LOAN AGREEMENT OR REPURCHASE AGREEMENT UPON A
DEFAULT UNDER ANY SUCH INDEBTEDNESS, IN WHICH CASE THE TRANSFEROR SHALL DELIVER
TO THE NOTE REGISTRAR, THE SECURITIES ADMINISTRATOR, THE OWNER TRUSTEE AND THE
INDENTURE TRUSTEE A CERTIFICATE CERTIFYING TO SUCH EFFECT.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

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

                                      A-4-2

<PAGE>

                          BEAR STEARNS ARM TRUST 2005-2
                      MORTGAGE-BACKED NOTES, SERIES 2005-2
                           CLASS B-[1][2][3][4][5][6]

AGGREGATE NOTE PRINCIPAL                                  NOTE INTEREST
BALANCE: $[_______]                                       RATE: Variable Rate

INITIAL NOTE PRINCIPAL                                    NOTE NO. 1
BALANCE OF THIS NOTE: $28,966,100

PERCENTAGE INTEREST: 100%                                 CUSIP NO: [_______]

         BEAR STEARNS ARM TRUST 2005-2 (the "Issuer"), a Delaware statutory
trust, for value received, hereby promises to pay to Bear, Stearns Securities
Corp. or registered assigns, the principal sum of $[______] in monthly
installments on the twenty-fifth day of each month or, if such day is not a
Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in March 2005 and ending on or before the Payment Date occurring in
March 2035 (the "Final Scheduled Payment Date") and to pay interest on the Note
Principal Balance of this Note (this "Note") outstanding from time to time as
provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2005-2 (the "Notes"), issued under an Indenture,
dated as of February 28, 2005 (the "Indenture"), among the Issuer, Wells Fargo
Bank, N.A. as securities administrator and U.S. Bank National Association as
indenture trustee (the "Indenture Trustee", which term includes any successor
Indenture Trustee), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights thereunder of
the Issuer, the Indenture Trustee and the Holders of the Notes and the terms
upon which the Notes are to be authenticated and delivered. All terms used in
this Note which are defined in the Indenture shall have the meanings assigned to
them in the Indenture.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, minus (i) all amounts distributed in
respect of principal with respect to such Class of Notes, (ii) the aggregate
amount of any reductions in the Note Principal Balance thereof deemed to have
occurred in connection with allocations of Realized Losses on all prior Payment
Dates in accordance with the Indenture, taking account of its applicable Loss
Allocation Limitation, and (iii) such Class's pro rata share, if any, of the
applicable Subordinate Writedown Amount for previous Payment Dates, plus (iv)
any Subsequent Recoveries allocated thereto.

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for

                                      A-4-3

<PAGE>

payment of public and private debts. All payments made by the Issuer with
respect to this Note shall be equal to this Note's pro rata share of the
aggregate payments on all Class B-[1][2][3][4][5][6] Notes as described above,
and shall be applied as between interest and principal as provided in the
Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         The Mortgage Loans are subject to purchase in whole, but not in part,
by the Majority Certificateholder, on any Payment Date on or after the Payment
Date on which the aggregate Scheduled Principal Balance of the Mortgage Loans as
of the end of the prior Due Period is less than or equal to 10% of the aggregate
Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date.

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class
B-[1][2][3][4][5][6] Notes, and each Holder hereof, by its acceptance of this
Note, agrees that (i) such Note will be limited in right of payment to amounts
available from the Trust Estate as provided in the Indenture and (ii) such
Holder shall have no recourse to the Issuer, the Owner Trustee, the Indenture
Trustee, the Depositor, the Seller, the Master Servicer, the Securities
Administrator or any of their respective affiliates, or to the assets of any of
the foregoing entities, except the assets of the Issuer pledged to secure the
Class B-[1][2][3][4][5][6] Notes pursuant to the Indenture and the rights
conveyed to the Issuer under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Securities
Administrator at least five Business Days prior to the Record Date, any payment
of principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all Holders of this Note and of any note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. The final payment of this Note shall be payable
upon presentation and surrender thereof on or after the Payment Date thereof at
the Office designated by the Securities Administrator or the office or agency of
the Issuer maintained by it for such purpose pursuant to the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

                                      A-4-4

<PAGE>

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this Note,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         The failure to pay any Net Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         No transfer, sale, pledge or other disposition of this Note or interest
herein shall be made unless that transfer, sale, pledge or other disposition is
exempt from the registration and/or qualification requirements of the Securities
Act and any applicable state securities laws, or is otherwise made in accordance
with the Securities Act and such state securities laws. If a transfer of this
Note is to be made without registration under the Securities Act (other than in
connection with the initial issuance thereof or a transfer thereof by the
Depositor or one of its Affiliates), then the Note Registrar shall refuse to
register such transfer unless (i) it receives (and upon receipt, may
conclusively rely upon) a certificate substantially in the form attached as
Exhibit C to the Indenture or (ii) it receives a written Opinion of Counsel
acceptable to and in form and substance satisfactory to the Note Registrar and
the Indenture Trustee and the transferee executes a representation letter
substantially in the form of Exhibit D attached to the Indenture, and transferor
executes a representation letter substantially in the form of Exhibit E attached
to the Indenture, each acceptable to and in form and substance satisfactory to
the Note Registrar and the Indenture Trustee. None of the Issuer, the Depositor,
the Indenture Trustee or the Note Registrar is obligated to register or qualify
any Notes under the Securities Act or any other securities law or to take any
action not otherwise required under the Indenture to permit the transfer of this
Note or interest herein without registration or qualification. Any Noteholder
desiring to effect a transfer of this Note or interest herein shall, and does
hereby agree to, indemnify the Issuer, the Depositor, the Owner Trustee, the
Indenture Trustee and the Note Registrar against any liability that may result
if the transfer is not so exempt or is not made in accordance with such federal
and state laws.

         No transfer of this Class B-[1][2][3][4][5][6] Note or any interest
therein shall be made to any Person unless the Indenture Trustee and the Note
Registrar are provided with an Opinion of Counsel which establishes to the
satisfaction of the Indenture Trustee and the Note Registrar that the purchase
of a Class B-[1][2][3][4][5][6] Note is permissible under applicable law, will
not constitute or result in any prohibited transaction under ERISA or Section
4975 of the Code and will not subject the Issuer, the Seller, the Owner Trustee,
the Indenture Trustee, the Master Servicer, any Servicer or the Note Registrar
to any obligation or liability (including obligations or liabilities under ERISA
or Section 4975 of the Code) in addition to those undertaken in this Agreement,
which Opinion of Counsel shall not be an expense of the Issuer, the Seller, the
Owner Trustee, the Indenture Trustee, the Securities Administrator, the Master
Servicer, any Servicer and the Note Registrar. In lieu of such

                                      A-4-5

<PAGE>

Opinion of Counsel, a Person acquiring a Class B-1 Note may provide a
certification in the form attached to the Indenture, which the Depositor, the
Owner Trustee, the Certificate Registrar and the Master Servicer may rely upon
without further inquiry or investigation.

         No transfer of this Class B-[1][2][3][4][5][6] Note or any interest
therein shall be made to any Person, and the Note Registrar shall refuse to
register any such transfer, so long as the Class A-1 Notes and Class A-2 Notes,
and any Class A-3 Notes, Class A-4 Notes or Subordinate Notes with respect to
which a "will be debt" opinion has been rendered by nationally recognized tax
counsel, are outstanding, unless (A) a "will be debt" opinion shall have been
rendered by nationally recognized tax counsel with respect to it and furnished
to the Securities Administrator, or (B) the transferee shall have delivered to
the Owner Trustee, the Note Registrar, the Securities Administrator and the
Indenture Trustee a certificate certifying that (i) it is a real estate
investment trust ("REIT") or a qualified REIT subsidiary ("QRS") within the
meaning of Section 856(a) or Section 856(i) of the Code or an entity disregarded
as an entity separate from a REIT or a QRS and (ii) following the transfer, 100%
of the Certificates and Class A-3 Notes, Class A-4 Notes and Subordinate Notes
(other than any Class A-3 Notes, Class A-4 Notes or Subordinate Notes with
respect to which a "will be debt" opinion has been rendered by nationally
recognized tax counsel and furnished to the Securities Administrator) will be
owned by a REIT, directly or indirectly through one or more qualified QRSs of
such REIT or one or more entities disregarded as entities separate from such
REIT or such QRSs; provided that (x) this Class B-[1][2][3][4][5][6] Note may be
pledged to secure indebtedness and may be the subject of repurchase agreements
treated as secured indebtedness for federal income tax purposes, and (y) this
Class B-[1][2][3][4][5][6] Note may be transferred by the related lender under
any such related loan agreement or repurchase agreement upon a default under any
such indebtedness, in which case the transferor shall deliver to the Note
Registrar, the Securities Administrator, the Owner Trustee and the Indenture
Trustee a certificate certifying to such effect.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Securities Administrator, one or more new
Notes of any authorized denominations and of a like aggregate then outstanding
Note Principal Balance, will be issued to the designated transferee or
transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee, the Securities Administrator and any agent of
the Issuer, the Securities Administrator or the Indenture Trustee may treat the
Person in whose name this Note is registered as the owner of such Note (i) on
the applicable Record Date for the purpose of making payments and interest of
such Note, and (ii) on any other date for all other purposes whatsoever, as the
owner hereof, whether or not this Note be overdue, and none of the Issuer, the
Securities Administrator, the Indenture Trustee nor any such agent of the
Issuer, the Securities Administrator or the Indenture Trustee 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 by the Issuer and the Holders of a majority of each Class of

                                      A-4-6

<PAGE>

Notes affected thereby. The Indenture also contains provisions permitting the
Holders of Notes representing not less than a majority of the aggregate Note
Principal Balance of the Notes, to waive any past Event of Default and its
consequences except an Event of Default (a) with respect to payment of principal
of or interest on any of the Notes, or (b) in respect of a covenant or provision
of the Indenture which cannot be modified or amended without the consent of the
Holder of each Note. Any such waiver by the Holder, at the time of the giving
thereof, of this Note (or any one or more predecessor Notes) shall bind the
Holder of every 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 such Note. The Indenture also permits the Issuer, the
Indenture Trustee and the Securities Administrator, following prior notice to
the Rating Agencies, to amend or waive certain terms and conditions set forth in
the Indenture without the consent of the Holders of the Notes issued thereunder.

         The Notes are exchangeable for a like aggregate then outstanding Note
Principal Balance of Notes of different authorized denominations, as requested
by the Holder surrendering same.

         Unless the Certificate of Authentication hereon has been executed by
the Securities Administrator by manual signature, this Note shall not be
entitled to any benefit under the Indenture, or be valid or obligatory for any
purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

                                      A-4-7

<PAGE>

                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed.

Dated: February 28, 2005

                                              BEAR STEARNS ARM TRUST 2005-2

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

                                              By: ______________________________
                                                  Authorized Signatory

            SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

This is one of the Class B-[1][2][3][4][5][6] Notes referred to in the
within-mentioned Indenture.

                                               WELLS FARGO BANK, NATIONAL
                                               ASSOCIATION, as Securities
                                               Administrator

                                               BY:  ________________________
                                                    Authorized Signatory

                                      A-4-8

<PAGE>

                                  ABBREVIATIONS
                                  -------------

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

         TEN COM            --      as tenants in common
         TEN ENT            --      as tenants by the entireties
         JT TEN             --      as joint tenants with right of survivorship
                                    and not as tenants in common
UNIF GIFT MIN ACT           --      __________ Custodian

                                    ------------------------------
                                      (Cust)           (Minor)

                                    under Uniform Gifts to Minor Act
                                    ---------------------
                                                           (State)

     Additional abbreviations may also be used though not in the above list.

                                      A-4-9

<PAGE>

                                   ASSIGNMENT
                                   ----------

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

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

                      ____________________________________

                      ____________________________________

                      ____________________________________
  (Please print or typewrite name and address, including zip code, 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 by
                           -----------------------------------------------------

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

                                     A-4-10

<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                                       B-1

<PAGE>

                                    EXHIBIT C

                  [FORM OF RULE 144A INVESTMENT REPRESENTATION]

             Description of Rule 144A Securities, including numbers:

         --------------------------------------------------------------

         --------------------------------------------------------------

         --------------------------------------------------------------

         --------------------------------------------------------------

                  The undersigned seller, as registered holder (the "Seller"),
intends to transfer the Rule 144A Securities described above to the undersigned
buyer (the "Buyer").

                  1. In connection with such transfer and in accordance with the
agreements pursuant to which the Rule 144A Securities were issued, the Seller
hereby certifies the following facts: Neither the Seller nor anyone acting on
its behalf has offered, transferred, pledged, sold or otherwise disposed of the
Rule 144A Securities, any interest in the Rule 144A Securities or any other
similar security to, or solicited any offer to buy or accept a transfer, pledge
or other disposition of the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security from, or otherwise approached or
negotiated with respect to the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general solicitation by means of general advertising or in any other
manner, or taken any other action, that would constitute a distribution of the
Rule 144A Securities under the Securities Act of 1933, as amended (the "1933
Act"), or that would render the disposition of the Rule 144A Securities a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or another "qualified institutional buyer" as defined in Rule
144A under the 1933 Act.

                  2. The Buyer warrants and represents to, and covenants with,
the Indenture Trustee pursuant to Section 4.02 of the Indenture (the
"Indenture"), dated as of February 28, 2005, among Bear Stearns ARM Trust
2005-2, as Issuer, and Wells Fargo Bank, National Association, as Securities
Administrator and U.S. Bank National Association, as Indenture Trustee, as
follows:

                           a. The Buyer understands that the Rule 144A
         Securities have not been registered under the 1933 Act or the
         securities laws of any state.

                           b. The Buyer considers itself a substantial,
         sophisticated institutional investor having such knowledge and
         experience in financial and business matters that it is capable of
         evaluating the merits and risks of investment in the Rule 144A
         Securities.

                                       C-1

<PAGE>

                           c. The Buyer has been furnished with all information
         regarding the Rule 144A Securities that it has requested from the
         Seller, the Indenture Trustee, the Owner Trustee or the Master
         Servicer.

                           d. Neither the Buyer nor anyone acting on its behalf
         has offered, transferred, pledged, sold or otherwise disposed of the
         Rule 144A Securities, any interest in the Rule 144A Securities or any
         other similar security to, or solicited any offer to buy or accept a
         transfer, pledge or other disposition of the Rule 144A Securities, any
         interest in the Rule 144A Securities or any other similar security
         from, or otherwise approached or negotiated with respect to the Rule
         144A Securities, any interest in the Rule 144A Securities or any other
         similar security with, any person in any manner, or made any general
         solicitation by means of general advertising or in any other manner, or
         taken any other action, that would constitute a distribution of the
         Rule 144A Securities under the 1933 Act or that would render the
         disposition of the Rule 144A Securities a violation of Section 5 of the
         1933 Act or require registration pursuant thereto, nor will it act, nor
         has it authorized or will it authorize any person to act, in such
         manner with respect to the Rule 144A Securities.

                           e. The Buyer is a "qualified institutional buyer" as
         that term is defined in Rule 144A under the 1933 Act and has completed
         either of the forms of certification to that effect attached hereto as
         Annex 1 or Annex 2. The Buyer is aware that the sale to it is being
         made in reliance on Rule 144A. The Buyer is acquiring the Rule 144A
         Securities for its own account or the accounts of other qualified
         institutional buyers, understands that such Rule 144A Securities may be
         resold, pledged or transferred only (i) to a person reasonably believed
         to be a qualified institutional buyer that purchases for its own
         account or for the account of a qualified institutional buyer to whom
         notice is given that the resale, pledge or transfer is being made in
         reliance on Rule 144A, or (ii) pursuant to another exemption from
         registration under the 1933 Act.

                  3. The Buyer warrants and represents to, and covenants with,
the Seller, the Indenture Trustee, Owner Trustee, the Certificate Registrar,
Master Servicer and the Depositor that either (1) the Buyer is (A) not an
employee benefit plan (within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA")), or a plan (within
the meaning of Section 4975(e)(1) of the Internal Revenue Code of 1986
("Code")), which (in either case) is subject to ERISA or Section 4975 of the
Code (both a "Plan"), and (B) is not directly or indirectly purchasing the Rule
144A Securities on behalf of, as investment manager of, as named fiduciary of,
as trustee of, or with "plan assets" of a Plan, or (2) the Buyer understands
that registration of transfer of any Rule 144A Securities to any Plan, or to any
Person acting on behalf of any Plan, will not be made unless such Plan delivers
an opinion of its counsel, addressed and satisfactory to the Certificate
Registrar, the Owner Trustee, the Indenture Trustee, the Master Servicer and the
Depositor, to the effect that the purchase and holding of the Rule 144A
Securities by, on behalf of or with "plan assets" of any Plan is permissible
under applicable law, would not constitute or result in a prohibited transaction
under ERISA or Section 4975 of the Code, and would not subject the Depositor,
the Owner Trustee, the Indenture Trustee, the Certificate Registrar or the
Master Servicer to any obligation or liability (including liabilities under
ERISA or Section 4975 of the Code) in addition to those undertaken in the
Agreement, which Opinion of Counsel shall not be an expense of the Depositor,
the Owner Trustee, the Indenture Trustee, the Certificate Registrar or the
Master Servicer.

                                       C-2

<PAGE>

                  4. This document may be executed in one or more counterparts
and by the different parties hereto on separate counterparts, each of which,
when so executed, shall be deemed to be an original; such counterparts,
together, shall constitute one and the same document.

         IN WITNESS WHEREOF, each of the parties has executed this document as
of the date set forth below.

_________________________________       ______________________________
Print Name of Seller                    Print Name of Buyer

By:                                     By:
    -----------------------------           --------------------------
    Name:                               Name:
    Title:                              Title:

Taxpayer Identification:                Taxpayer Identification:

No.                                     No.
    -----------------------------           --------------------------
Date:                                   Date:
      ---------------------------            -------------------------

                                      C-3

<PAGE>

                                                            ANNEX 1 TO EXHIBIT C
                                                            --------------------

            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 in its
         latest annual financial statements.

  ___    BROKER-DEALER. The Buyer is a dealer registered pursuant to Section 15
         of the Securities Exchange Act of 1934.

  ___    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

--------

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.

                                       C-4

<PAGE>

         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 ADVISER. 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 or H.R. 10 plans.

            3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) bank deposit Notes and certificates of deposit, (iv) loan
participations, (v) repurchase agreements, (vi) securities owned but subject to
a repurchase agreement and (vii) currency, interest rate and commodity swaps.

            4. For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the Buyer used the
cost of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

            5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

                                       C-5

<PAGE>

___             ___             Will the Buyer be purchasing the Rule 144A
Yes             No              Securities only for the Buyer's own account?

            6. If the answer to the foregoing question is "no", the Buyer agrees
that, in connection with any purchase of securities sold to the Buyer for the
account of a third party (including any separate account) in reliance on Rule
144A, the Buyer will only purchase for the account of a third party that at the
time is a "qualified institutional buyer" within the meaning of Rule 144A. In
addition, the Buyer agrees that the Buyer will not purchase securities for a
third party unless the Buyer has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

            7. The Buyer will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of Rule 144A Securities will
constitute a reaffirmation of this certification as of the date of such
purchase.

                                            ___________________________________
                                            Print Name of Buyer

                                            By:
                                                     --------------------------
                                                     Name:
                                                     Title:

                                            Date:
                                                  -----------------------------

                                       C-6

<PAGE>

                                                            ANNEX 2 TO EXHIBIT C
                                                            --------------------

            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 or the Buyer's Family of Investment Companies, the cost of such securities
was used.

  ____            The Buyer owned $____________________________ in securities
                  (other than the excluded securities referred to below) as of
                  the end of the Buyer's most recent fiscal year (such amount
                  being calculated in accordance with Rule 144A).

  ____            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 adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  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

                                       C-7

<PAGE>

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:
                                                           ---------------------

                                       C-8

<PAGE>

                                    EXHIBIT D

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                     [DATE]

Wilmington Trust Company
1100 North Market Street
Rodney Square North
Wilmington, Delaware 19890

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

         Re:      Bear Stearns ARM Trust 2005-2 Mortgage-Backed Notes,
                  Series 2005-2, [Class A][class X-1] [Class B] (The "Notes")
                  -----------------------------------------------------------

Ladies and Gentlemen:

         In connection with our acquisition of the above-captioned Notes, we
certify that (a) we understand that the Notes are not being 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 are an
"accredited investor," as defined in Regulation D under the Act, and 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 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 are not an employee benefit plan that is subject to the Employee
Retirement Income Security Act of 1974, as amended, or a plan that is subject to
Section 4975 of the Internal Revenue Code of 1986, as amended, nor are we acting
on behalf of any such plan, (e) we are acquiring the Notes for investment for
our own account and not with a view to any distribution of such Notes (but
without prejudice to our right at all times to sell or otherwise dispose of the
Notes in accordance with clause (g) below), (f) we have not offered or sold any
Notes to, or solicited offers to buy any Notes from, any person, or otherwise
approached or negotiated with any person with respect thereto, or taken any
other action which would result in a violation of Section 5 of the Act, and (h)
we will not sell, transfer or otherwise dispose of any Notes unless (1) such
sale, transfer or other disposition is made pursuant to an effective
registration statement under the Act or is exempt from such registration
requirements, and if requested, we will at our expense provide an Opinion of
Counsel satisfactory to the addressees of this certificate that such sale,
transfer or other disposition may be made pursuant to an exemption from the Act,
(2) the purchaser or transferee of such Note has executed and delivered to you a
certificate to substantially the same effect as this certificate, and (3) the
purchaser or transferee has otherwise complied with any conditions for transfer
set forth in the Indenture.

                                       D-1

<PAGE>

                                             Very truly yours,

                                             [TRANSFEREE]

                                             By:
                                                 -------------------------------
                                                      Authorized Officer

                                       D-2

<PAGE>

                                    EXHIBIT E

                             TRANSFEROR CERTIFICATE
                             ----------------------

Wilmington Trust Company
1100 North Market Street
Rodney Square North
Wilmington, Delaware 19890

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

         Re:     Proposed Transfer of [Class A][class X-1 Notes] [Class B Notes]
                 Bear Stearns Arm Trust 2005-2
                 ---------------------------------------------------------------

Gentlemen:

         This certification is being made by ____________________ (the
"Transferor") in connection with the proposed Transfer to _____________________
(the "Transferee") of the [Class A Notes][Class X-1 Notes] [Class B Notes] (the
"Notes") issued pursuant to the Indenture, dated February 28, 2005, being
referred to herein as the "Indenture") among Bear Stearns ARM Trust 2005- 2, as
issuer, Wells Fargo Bank, National Association, as securities administrator and
U.S. Bank National Association as indenture trustee (the "Indenture"). Initially
capitalized terms used but not defined herein have the meanings assigned to them
in the Indenture. The Transferor hereby certifies, represents and warrants to,
and covenants with, the Owner Trustee and the Indenture Trustee that:

         Neither the Transferor nor anyone acting on its behalf has (a) offered,
pledged, sold, disposed of or otherwise transferred any Note, any interest in
any Note or any other similar security to any person in any manner, (b) has
solicited any offer to buy or to accept a pledge, disposition or other transfer
of any Note, any interest in any Note or any other similar security from any
person in any manner, (c) has otherwise approached or negotiated with respect to
any Note, any interest in any Note or any other similar security with any person
in any manner, (d) has made any general solicitation by means of general
advertising or in any other manner, or (e) has taken any other action, that (as
to any of (a) through (e) above) would constitute a distribution of the Notes
under the Securities Act of 1933 (the "Act"), that would render the disposition
of any Note a violation of Section 5 of the Act or any state securities law, or
that would require registration or qualification pursuant thereto. The
Transferor will not act in any manner set forth in the foregoing sentence with
respect to any Note. The Transferor has not and will not sell or otherwise
transfer any of the Notes, except in compliance with the provisions of the
Indenture.

                                       E-1

<PAGE>

Date:
      ---------------------                        ___________________________
                                                        Name of Transferor

                                                   ___________________________
                                                        Signature

                                                   ___________________________
                                                        Name

                                                   ___________________________
                                                        Title

                                       E-2

<PAGE>

                                    EXHIBIT F

                         FORM OF TRANSFEREE CERTIFICATE
                         ------------------------------

Wilmington Trust Company
1100 North Market Street
Rodney Square North
Wilmington, Delaware 19890

U.S. Bank National Association
One Federal Street, 3rd Floor
Boston, MA 02110

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

         Re:      Proposed Transfer of [Class A-3][Class A-4][Class X-1] [Class
                  B] Notes, Bear Stearns Arm Trust 2005-2
                  -------------------------------------------------------------

Gentlemen:

         This certification is being made by _________ (the "Transferee") in
connection with the proposed transfer (the "Transfer") by _________ of a [Class
A-3] [Class A-4] [Class X-1] [Class B] Note issued pursuant to the Indenture,
dated as of February 28, 2005 (the "Indenture"), among Bear Stearns ARM Trust
2005-2, as issuer, Wells Fargo Bank, N.A., as securities administrator (the
"Securities Administrator"), and U.S. Bank National Association, as indenture
trustee (the "Indenture Trustee"). Initially capitalized terms used but not
defined herein have the meanings assigned to them in the Indenture. The
Transferee hereby certifies, represents and warrants to, and covenants with, the
Owner Trustee, the Note Registrar, the Securities Administrator and the
Indenture Trustee that:

         (a) The Transferee is a REIT or a QRS within the meaning of Section
856(a) or Section 856(i) of the Code or an entity disregarded as an entity
separate from a REIT or a QRS.

         (b) Following the Transfer, 100% of the Certificates and Class A-3
Notes, Class A-4 Notes and Subordinate Notes (other than any Class A-3 Notes,
Class A-4 Notes or Subordinate Notes with respect to which a "will be debt"
opinion has been rendered by nationally recognized tax counsel and furnished to
the Securities Administrator) will be owned by a REIT, directly or indirectly
through one or more QRSs of such REIT or one or more entities disregarded as
entities separate from such REIT or such QRSs.

Date:
      ---------------------                         ____________________________
                                                          Name of Transferee

                                                    ____________________________
                                                          Signature

                                       F-1

<PAGE>

                                                        ________________________
                                                                  Name

                                                        ________________________
                                                                  Title

                                       F-1

<PAGE>

                                    EXHIBIT G

                         FORM OF TRANSFEROR CERTIFICATE
                         ------------------------------

Wilmington Trust Company, as Owner Trustee
1100 North Market Street
Rodney Square North
Wilmington, Delaware 19890

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

U.S. Bank National Association
One Federal Street, 3rd Floor
Boston, MA 02110

         Re:      Proposed Transfer of [Class A][Class X-1] [Class B] Notes,
                  Bear Stearns Arm Trust 2005-2 (The "Notes")
                  ----------------------------------------------------------

Gentlemen:

         This certification is being made by (the "Transferor") in connection
with the proposed transfer or pledge by the Transferor of a [Class A][Class X-1]
[Class B] Note issued pursuant to the Indenture, dated as of February 28, 2005
(the "Indenture") among Bear Stearns ARM Trust 2005-2, as issuer, Wells Fargo
Bank, National Association, as securities administrator (the "Securities
Administrator") and U.S. Bank National Association, as indenture trustee (the
"Indenture Trustee"). Initially capitalized terms used but not defined herein
have the meanings assigned to them in the Indenture. The Transferor hereby
certifies, represents and warrants to, and covenants with, the Securities
Administrator, the Owner Trustee, the Indenture Trustee and the Note Registrar
that:

         (a) The Class [A][X-1][B] Notes are being pledged by the Transferor to
secure indebtedness of [___________] or is the subject of a loan agreement or
repurchase agreement treated as secured indebtedness of [___________] for
federal income tax purposes as permitted under the Indenture; or

         (b) The Class [A][X-1][B] Notes are being transferred by the related
lender under a loan agreement or repurchase agreement upon a default under any
such indebtedness as permitted under the Indenture.

Date:
      ---------------------                            _________________________
                                                           Name of Transferor

                                                       _________________________
                                                           Signature

                                       G-1

<PAGE>

                                                        ________________________
                                                                  Name

                                                        ________________________
                                                                  Title

                                       G-2

<PAGE>

                                   APPENDIX A
                                   DEFINITIONS

                  ACCEPTED MASTER SERVICING PRACTICES: With respect to any
Mortgage Loan, 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 Master Servicer (except in
its capacity as successor to the Servicer).

                  ACCOUNT: The Master Servicer Collection Account and the
Payment Account as the context may require.

                  ACCRUAL PERIOD: With respect to the Notes and any Payment
Date, the calendar month preceding the month in which such Payment Date occurs.

                  ACCRUED NOTE INTEREST: With respect to any Class of Notes and
any Payment Date, the amount of interest accrued during the related Accrual
Period at the applicable Note Interest Rate on the Note Principal Balance or
Notional Amount of such Note immediately prior to such Payment Date, less (1) in
the case a Senior Note, such Class's share of (a) Prepayment Interest
Shortfalls, to the extent not covered by Compensating Interest paid by the
Servicer or the Master Servicer, (b) interest shortfalls on the Mortgage Loans
resulting from the application of the Relief Act or similar state law and (c)
after the Cross-Over Date, the interest portion of any Realized Losses on the
Mortgage Loans and (2) in the case of a Subordinate Note, such Class's share of
(a) Prepayment Interest Shortfalls on the mortgage loans, to the extent not
covered by Compensating Interest paid by the Servicer or the Master Servicer,
(b) interest shortfalls on the Mortgage Loans resulting from the application of
the Relief Act or similar state law and (c) the interest portion of any Realized
Losses on the mortgage loans. Prepayment Interest Shortfalls and interest
shortfalls resulting from the application of the Relief Act will be allocated
among the Notes in proportion to the amount of Accrued Note Interest that would
have been allocated thereto in the absence of such shortfalls. Accrued Note
Interest on the Notes will be calculated on the basis of a 360-day year
consisting of 30-day months.

                  ADMINISTRATION AGREEMENT: The Administration Agreement, dated
as of February 28, 2005, among the Issuer, the Depositor, the Owner Trustee and
the Securities Administrator.

                  ADJUSTMENT DATE: As to each Mortgage Loan, each date set forth
in the related Mortgage Note on which an adjustment to the interest rate on such
Mortgage Loan becomes effective.

                  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.

<PAGE>

                  AGGREGATE MASTER SERVICING COMPENSATION: For any Payment Date,
any investment income on funds on deposit in the Master Servicer Collection
Account that is payable to the Master Servicer on such Payment Date pursuant to
Section 2.13 of the Servicing Agreement.

                  ALLOCABLE SHARE:  With respect to each Class of Class B Notes:

                  (a) as to any Payment Date and amounts distributable pursuant
to clauses (1) and (4) of the definition of Subordinate Optimal Principal
Amount, the fraction, expressed as a percentage, the numerator of which is the
Note Principal Balance of such Class and the denominator of which is the
aggregate Note Principal Balance of all Classes of Class B Notes; and

                  (b) as to any Payment Date and amounts distributable pursuant
to clauses (2), (3) and (5) of the definition of Subordinate Optimal Principal
Amount and as to each Class of Class B Notes (other than the Class of Class B
Notes having the lowest numerical designation as to which the Class Prepayment
Distribution Trigger shall not be applicable) for which (x) the related Class
Prepayment Distribution Trigger has been satisfied on such Payment Date, the
fraction, expressed as a percentage, the numerator of which is the Note
Principal Balance of such Class and the denominator of which is the aggregate of
the Note Principal Balances of all such Classes of Subordinate Notes and (y) the
related Class Prepayment Distribution Trigger has not been satisfied on such
Payment Date, 0%; provided that if on a Payment Date, the Note Principal Balance
of any Class of Class B Notes for which the related Class Prepayment
Distribution Trigger was satisfied on such Payment Date is reduced to zero, any
amounts distributed pursuant to this clause (b), to the extent of such Class's
remaining Allocable Share, shall be distributed to the remaining Class or
Classes of Subordinate Securities which satisfy the related Class Prepayment
Distribution Trigger and to the Class B-6, Class B-5, Class B-4, Class B-3,
Class B-2 and Class B-1 Notes, in that order, in reduction of their respective
Note Principal Balances.

                  ALLOCATED REALIZED LOSS AMOUNT: With respect to any of the
Class A Notes and Class B Notes and any Payment Date, an amount equal to the sum
of any Realized Loss allocated to that Class of Notes on that Payment Date and
any Allocated Realized Loss Amount for that Class remaining unpaid from the
previous Payment Date, in each case, with interest thereon at the applicable
Note Interest Rate for such Payment Date for such Class for the related Accrual
Period.

                  APPLICABLE CREDIT RATING: For any long-term deposit or
security, a credit rating of AAA from S&P. For any short-term deposit or
security, a rating of A-l+ from S&P.

                  APPRAISED VALUE: For any Mortgaged Property related to a
Mortgage Loan, the amount set forth as the appraised value of such Mortgaged
Property in an appraisal made for the mortgage originator in connection with its
origination of the related Mortgage Loan.

                  ASSIGNED CONTRACTS: Any pledged asset loan agreement governing
the pledge of the Pledged Assets.

                  ASSIGNMENT AGREEMENT: The agreement attached as Exhibit G to
the Servicing Agreement, whereby the Wells Fargo Servicing Agreement was
assigned to the Grantor Trustee for the benefit of the Securityholders.

                                        2

<PAGE>

                  ASSIGNMENT OF MORTGAGE: An assignment of Mortgage, notice of
transfer or equivalent instrument, in recordable form, which is sufficient under
the laws of the jurisdiction wherein the related Mortgaged Property is located
to reflect of record the sale of the Mortgage, which assignment, notice of
transfer or equivalent instrument may be in the form of one or more blanket
assignments covering Mortgages secured by Mortgaged Properties located in the
same county, if permitted by law.

                  AUTHORIZED NEWSPAPER: A newspaper of general circulation in
the Borough of Manhattan, The City of New York, printed in the English language
and customarily published on each Business Day, whether or not published on
Saturdays, Sundays or holidays.

                  AUTHORIZED OFFICER: With respect to the Issuer, any officer of
the Owner Trustee who is authorized to act for the Owner Trustee in matters
relating to the Issuer and who is identified on the list of Authorized Officers
delivered by the Owner Trustee to the Indenture Trustee and Securities
Administrator on the Closing Date (as such list may be modified or supplemented
from time to time thereafter).

                  AVAILABLE FUNDS: For any Payment Date with respect to each
Loan Group, the related Interest Funds and Principal Funds.

                  AVAILABLE FUNDS RATE: With respect to any Payment Date and the
Class A-1 Notes, a per annum rate, expressed as a percentage, equal to a
fraction, the numerator of which is the Interest Funds for Loan Group I,
multiplied by 12, and the denominator of which is the Note Principal Balance of
the Class A-1 Notes immediately prior to such Payment Date. With respect to any
Payment Date and the Class A-2 Notes, a per annum rate, expressed as a
percentage, equal to a fraction, the numerator of which is the Interest Funds
for Loan Group II, multiplied by 12, and the denominator of which is the Note
Principal Balance of the Class A-2 Notes immediately prior to such Payment Date.
With respect to any Payment Date and the Class A-3 Notes, a per annum rate,
expressed as a percentage, equal to a fraction, the numerator of which is the
Interest Funds for Loan Group I less interest payable to the Class A-1 Notes for
such Payment Date (including any Basis Risk Shortfall Carryover Amounts payable
thereto), multiplied by 12, and the denominator of which is the Note Principal
Balance of the Class A-3 Notes immediately prior to such Payment Date. With
respect to any Payment Date and the Class A-4 Notes, a per annum rate, expressed
as a percentage, equal to a fraction, the numerator of which is the Interest
Funds for Loan Group II less interest payable to the Class A-2 Notes for such
Payment Date (including any Basis Risk Shortfall Carryover Amounts payable
thereto), multiplied by 12, and the denominator of which is the Note Principal
Balance of the Class A-4 Notes immediately prior to such Payment Date.

                  AVERAGE LOSS SEVERITY PERCENTAGE: With respect to any Payment
Date, the percentage equivalent of a fraction, the numerator of which is the sum
of the Loss Severity Percentages for each Mortgage Loan which had a Realized
Loss and the denominator of which is the number of Mortgage Loans which had
Realized Losses.

                  BANKRUPTCY CODE: The United States Bankruptcy Code, as amended
as codified in 11 U.S.C. ss.ss. 101-1330.

                                        3

<PAGE>

                  BANKRUPTCY LOSS: With respect to any Mortgage Loan, any
Deficient Valuation or Debt Service Reduction related to such Mortgage Loan as
reported by the Servicer to the Master Servicer.

                  BASIC DOCUMENTS: The Trust Agreement, the Certificate of
Trust, the Indenture, the Servicing Agreement, the Grantor Trust Agreement, the
Administration Agreement, the Wells Fargo Servicing Agreement, the Mortgage Loan
Purchase Agreement, the Custodial Agreement and the other documents and
certificates delivered in connection with any of the above.

                  BASIS RISK SHORTFALL: With respect to any Class of Senior
Notes on each Payment Date where the related Accrued Note Interest is calculated
at the Available Funds Rate, the excess, if any, of (x) the aggregate Accrued
Note Interest thereon for such Payment Date calculated pursuant to clause (a)(i)
or (b)(i) or (b)(ii) of the definition of "Note Interest Rate", as applicable,
for such Payment Date over (y) interest accrued on the Mortgage Loans at the
related Available Funds Rate.

                  BASIS RISK SHORTFALL CARRYOVER AMOUNT: If on any Payment Date,
the Note Interest Rate of the Class A-1, Class A-2, Class A-3 and Class A-4
Notes is subject to their respective Available Funds Rate, such notes become
entitled to payment of an amount equal to the excess of the (i) interest accrued
at their respective Note Interest Rate (without giving effect to the related
Available Funds Rate) over (ii) the amount of interest received on such Notes
based on the related Available Funds Rate, together with the unpaid portion of
any such excess from previous Payment Dates (and any interest thereon at the
then applicable Note Interest Rate without giving effect to the related
Available Funds Rate).

                  BENEFICIAL OWNER: With respect to any Note, the Person who is
the beneficial owner of such Note as reflected on the books of the Depository or
on the books of a Person maintaining an account with such Depository (directly
as a Depository Participant or indirectly through a Depository Participant, in
accordance with the rules of such Depository).

                  BOOK-ENTRY NOTES: Beneficial interests in the Class A-1 Notes
and Class A-2 Notes, ownership and transfers of which shall be made through book
entries by the Depository as described in Section 4.06 of the Indenture.

                  BUSINESS DAY: Any day other than (i) a Saturday or a Sunday,
or (ii) a day on which the New York Stock Exchange or Federal Reserve is closed
or on which banking institutions in the jurisdiction in which the Indenture
Trustee, the Master Servicer, the Servicer or the Securities Administrator is
located are authorized or obligated by law or executive order to be closed.

                  CERTIFICATE PAYING AGENT: Initially, the Securities
Administrator, in its capacity as Certificate Paying Agent, or any successor to
Securities Administrator in such capacity.

                  CERTIFICATE DISTRIBUTION ACCOUNT: The account or accounts
created and maintained pursuant to Section 3.09(c) of the Trust Agreement. The
Certificate Payment Account shall be an Eligible Account.

                                        4

<PAGE>

                  CERTIFICATE PERCENTAGE INTEREST: With respect to the Owner
Trust Certificate and the Grantor Trust Certificates and any date of
determination, the percentage interest as stated on the face of any Owner Trust
Certificate or Grantor Trust Certificate, which percentage may be recalculated
in accordance with Section 3.03 of the Owner Trust Agreement or 5.02 of the
Grantor Trust Agreement, as applicable.

                  CERTIFICATE REGISTER: The register maintained by the
Certificate Registrar in which the Certificate Registrar shall provide for the
registration of Certificates and of transfers and exchanges of Certificates.

                  CERTIFICATE REGISTRAR: Initially, the Securities
Administrator, in its capacity as Certificate Registrar, or any successor to the
Securities Administrator in such capacity pursuant to the Trust Agreement.

                  CERTIFICATE OF TRUST: The Certificate of Trust filed for the
Trust pursuant to Section 3810(a) of the Statutory Trust Statute.

                  CERTIFICATES OR TRUST CERTIFICATES: The Bear Stearns ARM Trust
2005-2 Trust Certificates, Series 2005-2, evidencing the beneficial ownership
interest in the Issuer and executed by the Owner Trustee in substantially the
form set forth in Exhibit A to the Trust Agreement.

                  CERTIFICATEHOLDER: The Person in whose name a Certificate is
registered in the Certificate Register. Owners of Certificates that have been
pledged in good faith may be regarded as Holders if the pledgee establishes to
the satisfaction of the Securities Administrator or the Owner Trustee, as the
case may be, the pledgee's right so to act with respect to such Certificates and
that the pledgee is not the Issuer, any other obligor upon the Certificates or
any Affiliate of any of the foregoing Persons.

                  CLASS: Any of the Class A, Class B or Class X-1 Notes.

                  CLASS A GRANTOR TRUST CERTIFICATE: The certificate issued
pursuant to the Grantor Trust Agreement and designated as the Grantor Trust
Certificate evidencing a 100% ownership interest in the Mortgage Loans and the
proceeds thereof (other than those amounts that are payable in respect of the
Class B Grantor Trust Certificates).

                  CLASS A NOTES: The Class A-1, Class A-2, Class A-3 and Class
A-4 Notes in the form attached as Exhibit A-1 to the Indenture.

                  CLASS B GRANTOR TRUST CERTIFICATE: The Class B Grantor Trust
Certificate evidences the right to receive any and all income and gain realized
from any investment of funds in the Master Servicer Collection Account in excess
of the two Business Days of investment income payable to the Master Servicer,
and all income and gain realized from any investment of funds in the Payment
Account.

                                        5

<PAGE>

                  CLASS B GRANTOR TRUST CERTIFICATE PAYMENT AMOUNT: With respect
to any Payment Date, the amount as defined in Section 5.01 of the Grantor Trust
Agreement.

                  CLASS B NOTES: The Class B-1, Class B-2, Class B-3 Class B-4,
Class B-5 and Class B-6 Notes in the form attached as Exhibit A-4 to the
Indenture.

                  CLASS X-1 NOTES: The Class X-1 Notes in the form attached as
Exhibit A-3 to the Indenture.

                  CLASS PREPAYMENT DISTRIBUTION TRIGGER: For a Class of
Subordinate Notes for any Payment Date, the Class Prepayment Distribution
Trigger is satisfied if the fraction (expressed as a percentage), the numerator
of which is the aggregate Note Principal Balance of such Class and each Class of
Class B Notes subordinate thereto, if any, and the denominator of which is the
Scheduled Principal Balance of all of the Mortgage Loans as of the related Due
Date, equals or exceeds such percentage calculated as of the Closing Date. If on
any Payment Date the Note Principal Balance of any Class or Classes of Class B
Notes for which the related Class Prepayment Distribution Trigger was satisfied
on such Payment Date is reduced to zero, any amounts distributable to such Class
or Classes pursuant to clauses (2), (3) and (5) of the definition of
"Subordinate Optimal Principal Amount," to the extent of such Class's remaining
Allocable Share, shall be distributed to the remaining Class or Classes of
Subordinate Notes in reduction of their respective Note Principal Balances,
sequentially, Class B-6, Class B-5, Class B-4, Class B-3, Class B-2 and Class
B-1 Notes, in that order.

                  CLOSING DATE: February 28, 2005.

                  CODE: The Internal Revenue Code of 1986, as amended, and the
rules and regulations promulgated thereunder.

                  COLLATERAL: The meaning specified in the Granting Clause of
the Indenture.

                  COMMISSION: The Securities and Exchange Commission.

                  COMPENSATING INTEREST PAYMENT: As defined in Section 2.21 of
the Servicing Agreement with respect to amounts payable by the Master Servicer,
and any amounts in respect of Interest Shortfalls required to be paid by the
Servicer pursuant to the Wells Fargo Servicing Agreement.

                  CORPORATE TRUST OFFICE: With respect to the Indenture Trustee
and Grantor Trustee, the principal corporate trust office of the Indenture
Trustee and Grantor Trustee at which at any particular time its corporate trust
business shall be administered, which office at the date of the execution of
this instrument is located at U.S. Bank Corporate Trust Services, One Federal
Street, 3rd Floor, Boston, MA 02110. With respect to the Owner Trustee, the
principal corporate trust office of the Owner Trustee at which at any particular
time its corporate trust business shall be administered, which office at the
date of the execution of this Trust Agreement is located at Wilmington Trust
Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware
19801, Attention: Structured Asset Mortgage Investments II Inc. Trust 2005-2.
With

                                        6

<PAGE>

respect to the Securities Administrator, Certificate Registrar, Note Registrar
and Paying Agent, the Corporate Trust Office of the Note Registrar and the
Certificate Registrar for purposes of presentment and surrender of the Notes and
the Certificates for the final payment or distribution thereon and for transfer
is located at Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479,
Attention Bear Stearns ARM Trust 2005-2, and for all other purposes is located
at P.O. Box 98, Columbia, Maryland 21046 (or, for overnight deliveries, 9062 Old
Annapolis Road, Columbia, Maryland, 21045), Attn: Bart 2005-2, or any other
address that the Securities Administrator may designate from time to time by
notice to the Noteholders and the Certificateholders.

                  CROSS-OVER DATE: The first Payment Date on which the aggregate
Note Principal Balance of the Class B Notes has been reduced to zero (after
giving effect to all distributions on such Payment Date).

                  CUSTODIAL AGREEMENT: The custodial agreement, dated as of
February 28, 2005, among the Grantor Trustee, the Depositor, the Master Servicer
and the Custodian, relating to the Bear Stearns ARM Trust 2005-2,
Mortgage-Backed Notes, Series 2005-2.

                  CUSTODIAN: Wells Fargo Bank, National Association, and its
successors and assigns.

                  CUT-OFF DATE: With respect to the Mortgage Loans, February 1,
2005.

                  CUT-OFF DATE BALANCE: $2,633,284,752.83.

                  CUT-OFF DATE PRINCIPAL BALANCE: With respect to any Mortgage
Loan, the unpaid principal balance thereof as of the Cut-off Date after applying
the principal portion of Monthly Payments due on or before such date, whether or
not received, and without regard to any payments due after such date.

                  DEBT SERVICE REDUCTION: Any reduction of the Scheduled
Payments which a Mortgagor is obligated to pay with respect to a Mortgage Loan
as a result of any proceeding under the Bankruptcy Code or any other similar
state law or other proceeding.

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

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

                  DEFINITIVE NOTES: The meaning specified in Section 4.08 of the
Indenture.

                  DELETED MORTGAGE LOAN: A Mortgage Loan replaced or to be
replaced with an Substitute Mortgage Loan.

                                        7

<PAGE>

                  DEPOSITOR: Structured Asset Mortgage Investments II Inc., a
Delaware corporation, or its successor in interest.

                  DEPOSITORY: The Depository Trust Company, the nominee of which
is Cede & Co., or any successor thereto.

                  DEPOSITORY PARTICIPANT: A Person for whom, from time to time,
the Depository effects book-entry transfers and pledges of securities deposited
with the Depository.

                  DESIGNATED DEPOSITORY INSTITUTION: A depository institution
(commercial bank, federal savings bank, mutual savings bank or savings and loan
association) or trust company (which may include the Indenture Trustee), the
deposits of which are fully insured by the FDIC to the extent provided by law.

                  DETERMINATION DATE: With respect to any Payment Date, the 15th
day of the related month, or if the 15th day of such month is not a Business
Day, the immediately preceding Business Day.

                  DUE DATE: With respect to each Mortgage Loan, the day of the
month on which each scheduled Monthly Payment is due.

                  DUE PERIOD: With respect to any Payment Date and the Mortgage
Loans, the period commencing on the second day of the month immediately
preceding the month of such Payment Date (or, with respect to the first Due
Period, the day following the Cut-off Date) and ending on the first day of the
month of such Payment Date.

                  ELIGIBLE ACCOUNT: An account that is any of the following: (i)
maintained with a depository institution the short-term debt obligations of
which have been rated by each Rating Agency in its highest rating category
available, or (ii) an account or accounts in a depository institution in which
such accounts are fully insured to the limits established by the FDIC, provided
that any deposits not so insured shall, to the extent acceptable to each Rating
Agency, as evidenced in writing, be maintained such that (as evidenced by an
Opinion of Counsel delivered to the Indenture Trustee and each Rating Agency)
the Indenture Trustee have a claim with respect to the funds in such account or
a perfected first priority security interest against any collateral (which shall
be limited to Permitted Investments) securing such funds that is superior to
claims of any other depositors or creditors of the depository institution with
which such account is maintained, or (iii) in the case of the Master Servicer
Collection Account and the Payment Account, a trust account or accounts
maintained in the corporate trust division of the Master Servicer or Securities
Administrator, or (iv) an account or accounts of a depository institution
acceptable to each Rating Agency (as evidenced in writing by each Rating Agency
that use of any such account as the Master Servicer Collection Account or the
Payment Account will not reduce the rating assigned to any of the Notes by such
Rating Agency as of the Closing Date by such Rating Agency).

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

                                        8

<PAGE>

                  EVENT OF DEFAULT: With respect to the Indenture, any one of
the following events (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

                           (i) a failure by the Issuer to pay (a) Accrued Note
                  Interest on any Class of Notes and reduce the Note Principal
                  Balance of any Class of the Class A Notes or Class B Notes to
                  zero on the Final Scheduled Payment Date; or

                           (ii) the failure by the Issuer on the Final Scheduled
                  Payment Date to pay all Accrued Note Interest of any of the
                  Notes, all remaining Basis Risk Shortfall Carryover Amounts to
                  any of the Class A Notes and to reduce the Note Principal
                  Balance of any of the Class A Notes to zero; or

                           (iii) there occurs a default in the observance or
                  performance of any covenant or agreement of the Issuer made in
                  the Indenture, or any representation or warranty of the Issuer
                  made in the Indenture or in any certificate 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 30 days after there shall have been given, by
                  registered or certified mail, to the Issuer by the Indenture
                  Trustee or to the Issuer and the Indenture Trustee by the
                  Holders of at least 25% of the aggregate Note Principal
                  Balance of the Outstanding 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; or

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

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

                                        9

<PAGE>

                  debts become due, or the taking of any action by the Issuer in
                  furtherance of any of the foregoing.

                  EVENT OF SERVICER TERMINATION: The occurrence of an event, as
defined in the Wells Fargo Servicing Agreement, permitting termination or
removal of the Servicer thereunder as servicer of the Mortgage Loans.

                  EXCESS LIQUIDATION PROCEEDS: To the extent that such amount is
not required by law to be paid to the related Mortgagor, the amount, if any, by
which Liquidation Proceeds with respect to a Liquidated Mortgage Loan exceed the
sum of (i) the Outstanding Principal Balance of such Mortgage Loan and accrued
but unpaid interest at the related Mortgage Interest Rate through the last day
of the month in which the related Liquidation Date occurs, (ii) related
Liquidation Expenses (including Liquidation Expenses which are payable therefrom
to the Servicer or the Master Servicer in accordance with the Wells Fargo
Servicing Agreement or the Servicing Agreement) and (iii) unreimbursed advances
by the Servicer or the Master Servicer and Monthly Advances.

                  EXCHANGE ACT: The Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

                  EXPENSES: The meaning specified in Section 7.02 of the Trust
Agreement.

                  EXPIRATION NOTICE: The notice to be delivered by the Master
Servicer to the Servicer (pursuant to the Wells Fargo Servicing Agreement),
stating that it has received notice from the Certificate Registrar that (i) the
Investor no longer holds all of the Certificates and Privately Offered Notes or
(ii) the Investor has forfeited its rights set forth in Section 4.02 of the
Wells Fargo Servicing Agreement.

                  FANNIE MAE: Fannie Mae (formerly, the Federal National
Mortgage Association), or any successor thereto.

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

                  FINAL CERTIFICATION: The final certification delivered by the
Custodian pursuant to Section 2.3(c) of the Custodial Agreement in the form
attached thereto as Exhibit Three.

                  FINAL SCHEDULED PAYMENT DATE: With respect to each Class of
Notes, the Payment Date in March 2035.

                  FORECLOSURE NOTICE: The notice to be delivered by the Servicer
to the Master Servicer (pursuant to the Wells Fargo Servicing Agreement) no
later than five Business Days prior to the Servicer's commencement of
foreclosure proceedings with respect to a Mortgage Loan, of its intention to
commence such foreclosure proceedings.

                  FREDDIE MAC: Freddie Mac (formerly, the Federal Home Loan
Mortgage Corporation), or any successor thereto.

                                       10

<PAGE>

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

                  GRANTOR TRUST: Grantor Trust 2005-2, a New York trust, created
pursuant to the Grantor Trust Agreement.

                  GRANTOR TRUST AGREEMENT: The Grantor Trust Agreement dated as
of February 28, 2005, among the Depositor, the Securities Administrator and the
Grantor Trustee.

                  GRANTOR TRUST CERTIFICATE: Any of the Class A Grantor Trust
Certificate or Class B Grantor Trust Certificate.

                  GRANTOR TRUST CERTIFICATEHOLDER: The Person in whose name a
Grantor Trust Certificate is registered in the Grantor Trust Certificate
Register.

                  GRANTOR TRUST CERTIFICATE REGISTRAR: Initially, the Securities
Administrator, in its capacity as Grantor Trust Certificate Registrar, or any
successor to the Securities Administrator in such capacity.

                  GRANTOR TRUST CERTIFICATE REGISTER: The register maintained by
the Grantor Trust Certificate Registrar in which the Grantor Trust Certificate
Registrar shall provide for the registration and of transfers and exchanges of
the Grantor Trust Certificate.

                  GRANTOR TRUSTEE: U.S. Bank National Association, and its
successors and assigns or any successor indenture trustee appointed pursuant to
the terms of the Grantor Trust Agreement.

                  GROSS MARGIN: As to each Mortgage Loan, the fixed percentage
set forth in the related Mortgage Note and indicated on the Mortgage Loan
Schedule which percentage is added to the related Index on each Interest
Adjustment Date to determine (subject to rounding, the minimum and maximum
Mortgage Interest Rate and the Periodic Rate Cap) the Mortgage Interest Rate
until the next Interest Adjustment Date.

                  GROUP I OR GROUP II INTEREST FUNDS: The Interest Funds for
such Loan Group for any Payment Date.

                  GROUP I OR GROUP II PRINCIPAL FUNDS: The Principal Funds for
such Loan Group for any Payment Date.

                  GROUP I SENIOR NOTES: Any of the Class A-1 Notes or Class A-3
Notes.

                                       11

<PAGE>

                  GROUP II SENIOR NOTES: Any of the Class A-2 Notes or Class A-4
Notes.

                  GROUP I SENIOR OPTIMAL PRINCIPAL AMOUNT or GROUP II SENIOR
OPTIMAL PRINCIPAL AMOUNT: With respect to each Payment Date and the related
group of Senior Notes, an amount equal to the sum, without duplication, of the
following (but in no event greater than the aggregate Note Principal Balance of
the related Senior Notes immediately prior to such Payment Date):

                  (1) the applicable Senior Percentage of all scheduled payments
of principal allocated to the Scheduled Principal Balance due on each
Outstanding Mortgage Loan in the related Loan Group on the related Due Date as
specified in the amortization schedule at the time applicable thereto (after
adjustments for previous Principal Prepayments but before any adjustment to such
amortization schedule by reason of any bankruptcy or similar proceeding or any
moratorium or similar waiver or grace period);

                  (2) the applicable Senior Prepayment Percentage of the
Scheduled Principal Balance of each Mortgage Loan in the related Loan Group
which was the subject of a Principal Prepayment in full received by the Servicer
during the related Prepayment Period;

                  (3) the applicable Senior Prepayment Percentage of all
Principal Prepayments in part received by the Servicer during the related
Prepayment Period with respect to each Mortgage Loan in the related Loan Group;

                  (4) the lesser of (a) the applicable Senior Prepayment
Percentage of the sum of (i) all Net Liquidation Proceeds allocable to principal
received in respect of each Mortgage Loan in the related Loan Group which became
a Liquidated Mortgage Loan during the related Prepayment Period (other than
Mortgage Loans described in the immediately following clause (ii)) and all
Subsequent Recoveries received in respect of each Liquidated Mortgage Loan
during the related Due Period and (ii) the Scheduled Principal Balance of each
such Mortgage Loan purchased by an insurer from the Grantor Trustee during the
related Prepayment Period pursuant to the related Primary Mortgage Insurance
Policy, if any, or otherwise; and (b) the applicable Senior Percentage of the
sum of (i) the Scheduled Principal Balance of each Mortgage Loan in the related
Loan Group which became a Liquidated Mortgage Loan during the related Prepayment
Period (other than the Mortgage Loans described in the immediately following
clause (ii)) and all Subsequent Recoveries received in respect of each
Liquidated Mortgage Loan during the related Due Period and (ii) the Scheduled
Principal Balance of each such Mortgage Loan in the related Loan Group that was
purchased by an insurer from the Grantor Trustee during the related Prepayment
Period pursuant to the related Primary Mortgage Insurance Policy, if any or
otherwise; and

                  (5) the applicable Senior Prepayment Percentage of the sum of
(a) the Scheduled Principal Balance of each Mortgage Loan in the related Loan
Group which was repurchased by the Seller in connection with such Payment Date
and (b) the excess, if any, of the Scheduled Principal Balance of a Mortgage
Loan that in the related Loan Group has been replaced by the Seller with an
Eligible Substitute Mortgage Loan pursuant to the Mortgage Loan Purchase
Agreement in connection with such Payment Date over the Scheduled Principal
Balance of such Eligible Substitute Mortgage Loan.

                                       12

<PAGE>

                  GROUP I SENIOR PERCENTAGE: With respect to Loan Group I, the
lesser of (a) 100% and (b) the percentage (carried to six places rounded up)
obtained by dividing the Note Principal Balance of the Group I Senior Notes
immediately prior to such Payment Date, by the aggregate Scheduled Principal
Balance of the Mortgage Loans in Loan Group I as of the beginning of the related
Due Period. The initial Senior Percentage for Loan Group I will be equal to
approximately 97.45%.

                  GROUP II SENIOR PERCENTAGE: With respect to Loan Group II, the
lesser of (a) 100% and (b) the percentage (carried to six places rounded up)
obtained by dividing the Note Principal Balance of the Group II Senior Notes
immediately prior to such Payment Date, by the aggregate Scheduled Principal
Balance of the Mortgage Loans in Loan Group II as of the beginning of the
related Due Period. The initial Senior Percentage for Loan Group II will be
equal to approximately 97.45%.

                  GROUP I SENIOR PREPAYMENT PERCENTAGE or GROUP II SENIOR
PREPAYMENT PERCENTAGE: With respect to the Group I Senior Notes and Group II
Senior Notes on any Payment Date occurring during the periods set forth below,
as follows:

<TABLE>
<CAPTION>
Period (dates inclusive)                              Senior Prepayment Percentage
----------------------------------------------------- -------------------------------------------------------------
<S>                                                   <C>
March 25, 2005 - February 25, 2012                    100%

March 25, 2012 - February 25, 2013                    related Senior Percentage plus 70% of the related
                                                      Subordinate Percentage

March 25, 2013 - February 25, 2014                    related Senior Percentage plus 60% of the related
                                                      Subordinate Percentage

March 25, 2014 - February 25, 2015                    related Senior Percentage plus 40% of the related
                                                      Subordinate Percentage

March 25, 2015 - February 25, 2016                    related Senior Percentage plus 20% of the related
                                                      Subordinate Percentage

March 25, 2016 and thereafter                         related Senior Percentage
</TABLE>

                  Any scheduled reduction to the Senior Prepayment Percentage
for the related Senior Notes shall not be made as of any Payment Date unless, as
of the last day of the month preceding such Payment Date (1) the aggregate
Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more
(including for this purpose any such Mortgage Loans in foreclosure and
bankruptcy and such Mortgage Loans with respect to which the related mortgaged
property has been acquired by the Grantor Trust) averaged over the last six
months, as a percentage of the aggregate Note Principal Balance of the
Subordinate Notes does not exceed 50% and (2) cumulative Realized Losses on the
Mortgage Loans do not exceed (a) 30% of the aggregate Note Principal Balance of
the Original Subordinate Principal Balance if such Payment Date occurs between
and including March 2012 and February 2013, (b) 35% of the Original Subordinate
Principal Balance if such Payment Date occurs between and including March 2013
and February 2014, (c) 40% of the Original Subordinate Principal Balance if such
Payment Date occurs between and including March 2014 and February 2015, (d) 45%
of the Original Subordinate Principal Balance if such Payment Date occurs
between and including March 2015 and February 2016, and (e) 50% of the Original
Subordinate Principal Balance if such Payment Date occurs during or after March
2016.

                                       13

<PAGE>

                  In addition, if on any Payment Date the current weighted
average of the Subordinate Percentages is equal to or greater than two times the
weighted average of the initial Subordinate Percentage, and (a) the aggregate
Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more
(including for this purpose any such Mortgage Loans in foreclosure and
bankruptcy and such Mortgage Loans with respect to which the related mortgaged
property has been acquired by the Grantor Trust), averaged over the last six
months, as a percentage of the aggregate Note Principal Balance of the
Subordinate Notes does not exceed 50% and (b)(i) on or prior to the Payment Date
occurring in February 2008, cumulative Realized Losses on the Mortgage Loans as
of the end of the related Prepayment Period do not exceed 20% of the Original
Subordinate Principal Balance and (ii) after the Payment Date occurring in
February 2008, cumulative Realized Losses on the Mortgage Loans as of the end of
the related Prepayment Period do not exceed 30% of the Original Subordinate
Principal Balance, then, in each case, the Senior Prepayment Percentage for the
Senior Notes for such Payment Date will equal the Senior Percentage for such
Classes of Senior Notes; provided, however, if on such Payment Date the current
weighted average of the Subordinate Percentages is equal to or greater than two
times the weighted average of the initial Subordinate Percentages on or prior to
the Payment Date occurring in February 2008 and the above delinquency and loss
tests are met, then the Senior Prepayment Percentage for the Senior Notes for
such Payment Date, will equal the Senior Percentage for such Classes of Senior
Notes plus 50% of the related Subordinate Percentage on such Payment Date.

                  Notwithstanding the foregoing, if on any Payment Date, the
percentage, the numerator of which is the aggregate Note Principal Balance of
the Senior Notes of a Note Group immediately preceding such Payment Date, and
the denominator of which is the Scheduled Principal Balance of the Mortgage
Loans in the related Loan Group as of the beginning of the related Due Period,
exceeds such percentage as of the Cut-off Date, then the related Senior
Prepayment Percentage for such Payment Date will equal 100%.

                  HOLDER: Any Certificateholder, any Noteholder, or any Grantor
Trust Certificateholder, as the context requires.

                  INDEMNIFIED PARTY: The meaning specified in Section 7.02 of
the Trust Agreement.

                  INDENTURE: The indenture, dated as of February 28, 2005, among
the Issuer, the Indenture Trustee and the Securities Administrator, relating to
the Bear Stearns ARM Trust 2005-2 Mortgage-Backed Notes.

                  INDENTURE TRUSTEE: U.S. Bank National Association, and its
successors and assigns or any successor indenture trustee appointed pursuant to
the terms of the Indenture.

                  INDEPENDENT: When used with respect to any specified Person,
the Person (i) is in fact independent of the Issuer, any other obligor on the
Notes, the Seller, the Master Servicer, the Depositor and any Affiliate of any
of the foregoing Persons, (ii) does not have any direct financial interest or
any material indirect financial interest in the Issuer, any such other obligor,
the Seller, the Master Servicer, the Depositor or any Affiliate of any of the
foregoing Persons and (iii) is not connected with the Issuer, any such other
obligor, the Seller, the Master Servicer, the Depositor or

                                       14

<PAGE>

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 10.01 of the
Indenture, made by an independent appraiser or other expert appointed by an
Issuer Request and approved by the Indenture Trustee in the exercise of
reasonable care, and such opinion or certificate shall state that the signer has
read the definition of "Independent" in this Indenture and that the signer is
Independent within the meaning thereof.

                  INDEX: The index, if any, specified in a Mortgage Note by
reference to which the related Mortgage Interest Rate will be adjusted from time
to time.

                  INITIAL CERTIFICATION: The initial certification delivered by
the Custodian pursuant to Section 2.3(a) of the Custodial Agreement in the form
attached thereto as Exhibit One.

                  INITIAL NOTE PRINCIPAL BALANCE: With respect to the Class A-1
Notes, $1,661,650,700.00, with respect to the Class A-2 Notes, $866,300,200.00,
with respect to the Class A-3 Notes, $25,100,000.00, with respect to the Class
A-4 Notes, $28,966,100, with respect to the Class B-1 Notes, $13,085,000.00,
with respect to the Class B-2 Notes, $18,432,900.00, with respect to the Class
B-3 Notes, $6,583,300.00, with respect to the Class B-4 Notes, $3,949,900.00,
with respect to the Class B-5 Notes, $2,633,300.00 and with respect to the Class
B-6 Notes, $6,583,352.83.

                  INITIAL NOTIONAL AMOUNT: With respect to the Class X-1 Notes,
$2,566,135,900.

                  INSURANCE POLICY: With respect to any Mortgage Loan, any
standard hazard insurance policy, flood insurance policy or title insurance
policy.

                  INSURANCE PROCEEDS: Amounts paid by the insurer under any
Insurance Policy covering any Mortgage Loan or Mortgaged Property other than
amounts required to be paid over to the Mortgagor pursuant to law or the related
Mortgage Note or Security Instrument and other than amounts used to repair or
restore the Mortgaged Property or to reimburse insured expenses.

                  INTEREST ADJUSTMENT DATE: With respect to a Mortgage Loan, the
date, if any, specified in the related Mortgage Note on which the Mortgage
Interest Rate is subject to adjustment.

                  INTEREST DETERMINATION DATE: With respect the Class A-1 Notes
and Class A-3 Notes following the Note Rate Change Date and (i) the Accrual
Periods for the first twelve Payment Dates commencing on the Payment Date in
February 2009, the last Business Day of the Accrual Period for the Payment Date
in February 2009, and (ii) with respect to any subsequent twelve Accrual
Periods, the last Business Day of the Interest Accrual Period for the Payment
Date occurring on the anniversary of the Payment Date related to the preceding
Interest Determination Date. With respect the Class A-2 Notes and Class A-4
Notes following the Note Rate Change Date and (i) the Interest Accrual Periods
for the first twelve Payment Dates commencing on the Payment Date in January
2009, the last LIBOR Business Day of the Accrual Period for the Payment Date in
January 2009, and

                                       15

<PAGE>

(ii) with respect to any subsequent twelve Interest Accrual Periods, the last
LIBOR Business Day of the Interest Accrual Period for the Payment Date occurring
on the anniversary of the Payment Date related to the preceding Interest
Determination Date.

                  INTEREST FUNDS: With respect to each Loan Group and any
Payment Date (i) the sum, without duplication, of (a) all scheduled interest
during the related Due Period with respect to the related Mortgage Loans less
the Servicing Fee, (b) all Advances relating to interest with respect to the
related Mortgage Loans made on or prior to the related Distribution Account
Deposit Date, (c) all Compensating Interest with respect to the related Mortgage
Loans and required to be remitted by the Master Servicer pursuant to this
Agreement with respect to such Payment Date, (d) Liquidation Proceeds, including
the proceeds from the liquidation of Pledged Assets for any Pledged Asset Loan,
and Subsequent Recoveries with respect to the related Mortgage Loans collected
during the related Prepayment Period (to the extent such Liquidation Proceeds
and Subsequent Recoveries relate to interest), and (e) all amounts relating to
interest with respect to each Mortgage Loan in such Loan Group repurchased by
the Seller pursuant to Sections 2.02 and 2.03 of the Grantor Trust Agreement and
by the Investor pursuant to Section 4.02 of the Wells Fargo Servicing Agreement,
in each case to the extent remitted by the Master Servicer to the Payment
Account pursuant to the Servicing Agreement, minus (ii) all amounts required to
be reimbursed or paid pursuant to the Indenture or as otherwise set forth in any
Basic Document, to the extent related to such Loan Group (or, if such
reimbursement or payment not related to a Loan Group, then such Loan Group's pro
rata share (based on aggregate Scheduled Principal Balance) of such
reimbursement or payment).

                  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 constitutes a Relief Act Mortgage Loan, an amount
determined as follows:

                  (a) Partial principal prepayments received during the relevant
Prepayment Period: The difference between (i) one month's interest at the
applicable Net 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 Rate) received at the time of such prepayment;

                  (b) Principal prepayments in full received during the relevant
Prepayment Period: The difference between (i) one month's interest at the
applicable Net 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 Rate) received
at the time of such prepayment; and

                  (c) Relief Act Mortgage Loans: As to any Relief Act Mortgage
Loan, the excess of (i) 30 days' interest (or, in the case of a principal
prepayment in full, interest to the date of prepayment) on the Scheduled
Principal Balance thereof (or, in the case of a principal prepayment in part, on
the amount so prepaid) at the related Net Rate over (ii) 30 days' interest (or,
in the case of a principal prepayment in full, interest to the date of
prepayment) on such Scheduled Principal Balance (or, in the case of a Principal
Prepayment in part, on the amount so prepaid) at the Net Rate required to be
paid by the Mortgagor as limited by application of the Relief Act.

                  INTERIM CERTIFICATION: The interim certification delivered by
the Custodian pursuant to Section 2.3(b) of the Custodial Agreement in the form
attached thereto as Exhibit Two.

                                       16

<PAGE>

                  INVESTMENT COMPANY ACT: The Investment Company Act of 1940, as
amended, and any amendments thereto.

                  INVESTOR: KKR Financial Corp.

                  IRS: The Internal Revenue Service.

                  ISSUER: Bear Stearns ARM Trust 2005-2, a Delaware statutory
trust, or its successor in interest.

                  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.

                  LIBOR BUSINESS DAY: A day on which banks are open for dealing
in foreign currency and exchange in London and New York City.

                  LIEN: Any mortgage, deed of trust, pledge, conveyance,
hypothecation, assignment, participation, deposit arrangement, encumbrance, lien
(statutory or other), preference, priority right or interest or other security
agreement or preferential arrangement of any kind or nature whatsoever,
including, without limitation, any conditional sale or other title retention
agreement, any financing lease having substantially the same economic effect as
any of the foregoing and the filing of any financing statement under the UCC
(other than any such financing statement filed for informational purposes only)
or comparable law of any jurisdiction to evidence any of the foregoing.

                  LIQUIDATED MORTGAGE LOAN: With respect to any Payment Date, a
defaulted Mortgage Loan that has been liquidated through deed-in-lieu of
foreclosure, foreclosure sale, indenture trustee's sale or other realization as
provided by applicable law governing the real property subject to the related
Mortgage and any security agreements and as to which the Servicer has certified
in the related Prepayment Period that it has received all amounts it expects to
receive in connection with such liquidation.

                  LIQUIDATION DATE: With respect to any Liquidated Mortgage
Loan, the date on which the Master Servicer or the Servicer has certified that
such Mortgage Loan has become a Liquidated Mortgage Loan.

                  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 Servicer in connection with the liquidation of such
Mortgage Loan and the related Mortgage Property, 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: Cash received in connection with the
liquidation of a defaulted Mortgage Loan, whether through trustee's sale,
foreclosure sale, Insurance Proceeds, condemnation proceeds or otherwise.

                                       17

<PAGE>

                  LOAN-TO-VALUE RATIO: With respect to any Mortgage Loan, the
fraction, expressed as a percentage, the numerator of which is the original
principal balance of the related Mortgage Loan and the denominator of which is
the Original Value of the related Mortgaged Property.

                  LOAN GROUP: Loan Group I or Loan Group II, as applicable.

                  LOAN GROUP I: The group of Mortgage Loans designated as
belonging to Loan Group I on the Mortgage Loan Schedule.

                  LOAN GROUP II: The group of Mortgage Loans designated as
belonging to Loan Group II on the Mortgage Loan Schedule.

                  LOSS ALLOCATION AMOUNT: With respect to any Payment Date, the
amount payable by each of the Class B Grantor Trust Certificateholder and the
Master Servicer for losses resulting from any investment of funds in the Master
Servicer Collection Account required to be paid pursuant to the Servicing
Agreement and the Grantor Trust Agreement on such Payment Date, which shall be
the product of (i) the aggregate amount of any such losses and (ii) a fraction,
the numerator of which is the number of days of investment income the Class B
Grantor Trust Certificateholder or the Master Servicer, as applicable, are
entitled to and the denominator of which is the total number of days of
investment income for such Payment Date.

                  LOSS SEVERITY PERCENTAGE: With respect to any Payment Date,
the percentage equivalent of a fraction, the numerator of which is the amount of
Realized Losses incurred on a Mortgage Loan and the denominator of which is the
Scheduled Principal Balance of such Mortgage Loan immediately prior to the
liquidation of such Mortgage Loan.

                  LOST NOTES: The original Mortgage Notes that have been lost,
as indicated on the Mortgage Loan Schedule.

                  MAJORITY CERTIFICATEHOLDER: A Holder of a 50.01% or greater
Certificate Percentage Interest of the Trust Certificates.

                  MASTER SERVICER: Wells Fargo Bank, National Association, and
its successors and assigns.

                  MASTER SERVICER CERTIFICATION: A written certification
covering servicing of the Mortgage Loans by the Servicer 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) the February 21, 2003 Statement by
the Staff of the Division of Corporation Finance of the Securities and Exchange
Commission Regarding Compliance by Asset-Backed Issuers with Exchange Act Rules
13a-14 and 15d-14, 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 Statement
referred to in clause (ii) is modified or superceded by any subsequent
statement, rule or regulation of the Securities and Exchange 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

                                       18

<PAGE>

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 Master Servicer Certification shall be as agreed to by the
Master Servicer and the Depositor following a negotiation in good faith to
determine how to comply with any such new requirements.

                  MASTER SERVICER COLLECTION ACCOUNT: The trust account or
accounts created and maintained pursuant to Section 3.02 of the Servicing
Agreement. The Master Servicer Collection Account shall be an Eligible Account.

                  MASTER SERVICER COMPENSATION: As defined in Section 2.13 of
the Servicing Agreement.

                  MASTER SERVICER EVENT OF DEFAULT: Has the meaning assigned to
such term in Section 5.01 of the Servicing Agreement.

                  MATERIAL DEFECT: The meaning specified in Section 2.02(a) of
the Grantor Trust Agreement.

                  MAXIMUM LIFETIME MORTGAGE RATE: The maximum level to which a
Mortgage Interest Rate can adjust in accordance with its terms, regardless of
changes in the applicable Index.

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

                  MERS(R) SYSTEM: The system of recording transfers of Mortgages
electronically maintained by MERS.

                  MIN: The Mortgage Identification Number for Mortgage Loans
registered with MERS on the MERS(R) System.

                  MINIMUM LIFETIME MORTGAGE RATE: The minimum level to which a
Mortgage Interest Rate can adjust in accordance with its terms, regardless of
changes in the applicable Index.

                  MOM LOAN: With respect to any Mortgage Loan, MERS acting as
the mortgagee of such Mortgage Loan, solely as nominee for the originator of
such Mortgage Loan and its successors and assigns, at the origination thereof,
or as nominee for any subsequent assignee of the originator pursuant to an
assignment of mortgage to MERS.

                  MONTHLY ADVANCE: An advance of principal or interest required
to be made by the Servicer pursuant to the Wells Fargo Servicing Agreement or
the Master Servicer pursuant to the Servicing Agreement.

                  MONTHLY PAYMENT: With respect to any Mortgage Loan (including
any REO Property) and any Due Date, the payment of principal and interest due
thereon in accordance with the amortization schedule at the time applicable
thereto (after adjustment, if any, for partial Principal Prepayments and for
Deficient Valuations occurring prior to such Due Date but before any

                                       19

<PAGE>

adjustment to such amortization schedule by reason of any bankruptcy, other than
a Deficient Valuation, or similar proceeding or any moratorium or similar waiver
or grace period).

                  MOODY'S: Moody's Investors Service, Inc.

                  MORTGAGE: The mortgage, deed of trust or other instrument
reflected on the Mortgage Loan Schedule as securing a Mortgage Loan.

                  MORTGAGE FILE: The file containing the Related Documents
pertaining to a particular Mortgage Loan and any additional documents required
to be added to the Mortgage File pursuant to the Grantor Trust Agreement.

                  MORTGAGE INTEREST RATE: The annual rate at which interest
accrues from time to time on any Mortgage Loan pursuant to the related Mortgage
Note, which rate is initially equal to the "Mortgage Interest Rate" set forth
with respect thereto on the Mortgage Loan Schedule.

                  MORTGAGE LOAN: A mortgage loan transferred and assigned to the
Grantor Trust pursuant to Section 2.01 or Section 2.04 of the Grantor Trust
Agreement, as identified in the Mortgage Loan Schedule, including a mortgage
loan the property securing which has become an REO Property.

                  MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase
Agreement, dated as of February 28, 2005, between EMC Mortgage Corporation, as
seller, and Structured Asset Mortgage Investments II Inc., as purchaser, and all
amendments thereof and supplements thereto, attached to the Grantor Trust
Agreement as Exhibit H.

                  MORTGAGE LOAN SCHEDULE: With respect to any date, the schedule
of Mortgage Loans held by the Issuer on such date. The schedule of Mortgage
Loans as of the Cut-off Date is the schedule set forth in Exhibit A to the
Servicing Agreement, which schedule sets forth as to each Mortgage Loan:

                           (i)      the loan number,

                           (ii)     the city, state and zip code of the
                                    Mortgaged Property;

                           (iii)    the Mortgage Rate;

                           (iv)     the Servicing Fee Rate;

                           (v)      the Net Rate;

                           (vi)     the original term to maturity;

                           (vii)    the maturity date;

                           (viii)   the stated remaining term to maturity;

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                           (ix)     the original principal balance;

                           (x)      the first Payment Date;

                           (xi)     the Monthly Payment in effect as of the
                                    Cut-off Date;

                           (xii)    the Cut-off Date Principal Balance;

                           (xiii)   the Loan-to-Value Ratio at origination;

                           (xiv)    the paid-through date of the Mortgage Loan;

                           (xv)     the Issuer of any Primary Mortgage Insurance
                                    Policy;

                           (xvi)    the Index and the Gross Margin, if
                                    applicable;

                           (xvii)   the Maximum Lifetime Mortgage Rate, if
                                    applicable;

                           (xviii)  the Minimum Lifetime Mortgage Rate, if
                                    applicable;

                           (xix)    the Adjustment Date frequency and Payment
                                    Date frequency, if applicable;

                           (xx)     the Loan Group; and

                           (xxi)    the number of days delinquent, if any.

                  The Mortgage Loan Schedule shall also set forth the total
number of Mortgage Loans, the total of each of the amounts described under (ix)
and (xii) above for all of the Mortgage Loans, the weighted average by principal
balance of each of the rates described under (iii), (iv) and (v) above for all
of the Mortgage Loans and the weighted average remaining term to maturity by
unpaid principal balance as of the Cut-off Date for all of the Mortgage Loans.

                  MORTGAGE NOTE: The originally executed note or other evidence
of the indebtedness of a Mortgagor under the related Mortgage Loan.

                  MORTGAGED PROPERTY: Land and improvements securing the
indebtedness of a Mortgagor under the related Mortgage Loan or, in the case of
REO Property, such REO Property.

                  MORTGAGOR: The obligor on a Mortgage Note.

                  NET COLLECTIONS: With respect to any Liquidated Mortgage Loan,
an amount equal to all payments on account of interest and principal on such
Mortgage Loan.

                  NET INTEREST SHORTFALL: With respect to any Payment Date, the
Interest Shortfall, if any, for such Payment Date net of Compensating Interest
made with respect to such Payment Date.

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<PAGE>

                  NET LIQUIDATION PROCEEDS: With respect to any Liquidated
Mortgage Loan, Liquidation Proceeds and Subsequent Recoveries net of
unreimbursed advances by the Servicer, Monthly Advances, expenses incurred by
the Servicer in connection with the liquidation of such Mortgage Loan and the
related Mortgaged Property, and any other amounts payable to the Servicer under
the Wells Fargo Servicing Agreement.

                  NET RATE or NET MORTGAGE RATE: For any Mortgage Loan, the then
applicable Mortgage Rate thereon less the Servicing Fee Rate.

                   NON-FORECLOSURE NOTICE: The notice to be delivered by the
Servicer to the Master Servicer (pursuant to the Wells Fargo Servicing
Agreement) in the event that the Servicer determines not to proceed with
foreclosure proceedings with respect to a Mortgage Loan that becomes 60 days' or
more delinquent, pursuant to which notice the Servicer shall specify that it
does not intend to proceed with such foreclosure proceedings and shall state
such other action as it intends to take with respect to such Mortgage Loan.

                  NONRECOVERABLE ADVANCE: Any advance or Monthly Advance (i)
which was previously made or is proposed to be made by the Master Servicer, the
Grantor Trustee solely as successor Master Servicer, or the Servicer and (ii)
which, in the good faith judgment of the Master Servicer, the Grantor Trustee as
successor Master Servicer or the Servicer, will not or, in the case of a
proposed advance or Monthly Advance, would not, be ultimately recoverable by the
Master Servicer, the Grantor Trustee as successor Master Servicer, or the
Servicer from Liquidation Proceeds, Insurance Proceeds or future payments on the
Mortgage Loan for which such advance or Monthly Advance was made or is proposed
to be made.

                  NOTE: A Class A, Class B or Class X-1 Note.

                  NOTEHOLDER: The Person in whose name a Note is registered in
the Note Register, except that, any Note registered in the name of the
Depositor, the Issuer, the Indenture Trustee, the Seller, the Securities
Administrator or the Master Servicer or any Affiliate of any of them shall be
deemed not to be a holder or holders, nor shall any so owned be considered
outstanding, for purposes of giving any request, demand, authorization,
direction, notice, consent or waiver under the Indenture or the Trust Agreement;
provided that, in determining whether the Indenture Trustee or Securities
Administrator 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 Securities Administrator has
actual knowledge to be so owned shall be so disregarded. Owners of Notes that
have been pledged in good faith may be regarded as Holders if the pledgee
establishes to the satisfaction of the Securities Administrator or the Owner
Trustee 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 or any Affiliate of
any of the foregoing Persons.

                  NOTE INTEREST RATE: With respect to Class A-1 Notes and Class
A-3 Notes (a) on or prior to the related Note Rate Change Date, the lesser of
(i) 4.125% per annum and (ii) the related Available Funds Rate; and (b)
thereafter, the least of (i) One-Year LIBOR Note Index plus 2.45% per annum (ii)
9.185% per annum and (iii) the related Available Funds Rate. With respect to
Class A-2 Notes and Class A-4 Notes (a) on or prior to the related Note Rate
Change Date, the lesser of

                                       22

<PAGE>

(i) 4.125% per annum and (ii) the related Available Funds Rate; and (b)
thereafter, the least of (i) One-Year U.S. Treasury Note Index plus 1.95% per
annum (ii) 9.180% per annum and (iii) the related Available Funds Rate. With
respect to each Class of Class B Notes, the weighted average of the weighted
average of the Net Rates of the Mortgage Loans in each Loan Group, weighted in
proportion to the results of subtracting from the aggregate Scheduled Principal
Balance of the Mortgage Loans of each such Loan Group the Note Principal Balance
of the related Classes of Senior Notes. With respect to the Class X-1 Notes, the
lesser of (a) zero and (b) the excess, if any, of (i) the weighted average of
the Net Rates of the Mortgage Loans over (ii) the weighted average of the Note
Interest Rates on the Senior Notes.

                  NOTE OWNER: The Beneficial Owner of a Note.

                  NOTE PRINCIPAL BALANCE: With respect to any Note (other than
the Class X-1 Notes) as of any Payment Date, the initial principal amount of
such Note reduced by (i) all amounts distributed on previous Payment Dates on
such Note with respect to principal, (ii) the principal portion of all Realized
Losses allocated prior to such Payment Date to such Note, taking account of the
Loss Allocation Amount and (iii) in the case of a Subordinate Note, such Class's
pro rata share, if any, of the applicable Subordinate Writedown Amount for
previous Payment Dates, plus any Subsequent Recoveries added to the Note
Principal Balance of such Note. With respect to any Class of Notes (other than
the Class X-1 Notes), the Note Principal Balance thereof shall be equal to the
sum of the Note Principal Balances of all Outstanding Notes of such Class.

                  NOTE RATE CHANGE DATE: With respect to the Class A-3 Notes,
the Payment Date in January 2009 and with respect to the Class A-4 Notes, the
Payment Date in December 2008.

                  NOTE REGISTER: The register maintained by the Note Registrar
in which the Note Registrar shall provide for the registration of Notes and of
transfers and exchanges of Notes.

                  NOTE REGISTRAR: The Securities Administrator, in its capacity
as Note Registrar, or any successor to the Securities Administrator in such
capacity.

                  NOTIONAL AMOUNT: With respect to the Class X-1 Notes and each
Payment Date, an amount equal to the aggregate Note Principal Balance of the
Class A-1, Class A-2, Class A-3 and Class A-4 Notes before giving effect to
distributions to be made on such Payment Date.

                  OFFICER'S CERTIFICATE: With respect to the Master Servicer, a
certificate signed by the President, Managing Director, a Director, a Vice
President or an Assistant Vice President, of the Master Servicer and delivered
to the Indenture Trustee or the Securities Administrator, as applicable. With
respect to the Issuer, a certificate signed by any Authorized Officer of the
Issuer, under the circumstances described in, and otherwise complying with, the
applicable requirements of Section 10.01 of the Indenture, and delivered to the
Indenture Trustee. Unless otherwise specified, any reference in the Indenture to
an Officer's Certificate shall be to an Officer's Certificate of any Authorized
Officer of the Issuer.

                  ONE-YEAR LIBOR NOTE INDEX: With respect to any Accrual Period,
the rate determined by the Securities Administrator on the related Interest
Determination Date on the basis of the London interbank offered rate for
one-year United States dollar deposits, as such rates appear on the Telerate
Screen Page 3750, as of 11:00 a.m. (London time) on such Interest Determination
Date.

                                       23

<PAGE>

                  In the event that on any Interest Determination Date, Telerate
Screen 3750 fails to indicate the London interbank offered rate for one-year
United States dollar deposits, then the One-Year LIBOR Note Index for the
related Accrual Period will be established by the Securities Administrator as
follows:

                           (i) If on such Interest Determination Date two or
                  more Reference Banks provide such offered quotations, the
                  One-Year LIBOR Note Index for the related Accrual Period shall
                  be the arithmetic mean of such offered quotations (rounded
                  upwards if necessary to the nearest whole multiple of 1/16%).

                           (ii) If on such Interest Determination Date fewer
                  than two Reference Banks provide such offered quotations, the
                  One-Year LIBOR Note Index for the related Accrual Period shall
                  be the higher of (i) the One-Year LIBOR Note Index as
                  determined on the previous Interest Determination Date and
                  (ii) the Reserve Interest Rate.

                  ONE-YEAR U.S. TREASURY NOTE INDEX: With respect to any Accrual
Period, the rate determined by the Securities Administrator on the related
Interest Determination Date on the basis of the weekly average yield on U.S.
Treasury securities adjusted to a constant maturity of one year as reported in
the Release on the related Interest Determination Date or, if not so available,
as most recently available immediately prior to such Interest Determination
Date.

                  OPINION OF COUNSEL: A written opinion of counsel acceptable to
the Indenture Trustee in its reasonable discretion which counsel may be in-house
counsel for the Depositor or the Seller if acceptable to the Indenture Trustee,
the Grantor Trustee and the Rating Agencies or outside counsel for the
Depositor, the Seller, the Issuer or the Master Servicer, as the case may be.

                  OPTIONAL TERMINATION DATE: The Payment Date occurring after
the first Payment Date for which the aggregate Scheduled Principal Balance of
the Mortgage Loans as of the end of the related Due Period has been reduced to
10% or less of the Cut-off Date Balance.

                  ORIGINAL SUBORDINATE PRINCIPAL BALANCE: The aggregate Note
Principal Balance of the Class B Notes as of the Closing Date.

                  ORIGINAL VALUE: The lesser of (i) the Appraised Value or (ii)
the sales price of a Mortgaged Property at the time of origination of a Mortgage
Loan, except in instances where either clauses (i) or (ii) is unavailable, the
other may be used to determine the Original Value, or if both clauses (i) and
(ii) are unavailable, Original Value may be determined from other sources
reasonably acceptable to the Depositor.

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

                           (i) Notes theretofore canceled by the Note Registrar
                  or delivered to the Securities Administrator for cancellation;
                  and

                                       24

<PAGE>

                           (ii) Notes in exchange for or in lieu of which other
                  Notes have been executed, authenticated and delivered pursuant
                  to the Indenture unless proof satisfactory to the Securities
                  Administrator is presented that any such Notes are held by a
                  holder in due course.

                  OUTSTANDING MORTGAGE LOAN: With respect to any Due Date, a
Mortgage Loan which, prior to such Due Date, was not the subject of a Principal
Prepayment in full, did not become a Liquidated Mortgage Loan and was not
purchased or replaced.

                  OUTSTANDING PRINCIPAL BALANCE: As of the time of any
determination, the principal balance of a Mortgage Loan remaining to be paid by
the Mortgagor, or, in the case of an REO Property, the principal balance of the
related Mortgage Loan remaining to be paid by the Mortgagor at the time such
property was acquired by the Trust less any Excess Liquidation Proceeds with
respect thereto to the extent applied to principal.

                  OWNER TRUST ESTATE: The corpus of the Issuer created by the
Trust Agreement which consists of items referred to in Section 3.01 of the Trust
Agreement.

                  OWNER TRUSTEE: Wilmington Trust Company and its successors and
assigns or any successor owner trustee appointed pursuant to the terms of the
Trust Agreement.

                  PAYING AGENT: Any paying agent or co-paying agent appointed
under the Indenture, which initially shall be the Securities Administrator.

                  PAYMENT ACCOUNT: The trust account or accounts created and
maintained pursuant to Section 3.01 of the Indenture, which shall be denominated
Wells Fargo Bank, as Securities Administrator f/b/o holders of Bear Stearns ARM
Trust 2005-2, Mortgage-Backed Notes, Series 2005-2 - Payment Account." The
Payment Account shall be an Eligible Account.

                  PAYMENT ACCOUNT DEPOSIT DATE: The Business Day prior to each
Payment Date.

                  PAYMENT DATE: The 25th day of each month, or if such day is
not a Business Day, then the next Business Day, commencing in March 2005.

                  PERCENTAGE INTEREST: With respect to any Note, the percentage
obtained by dividing the Note Principal Balance of such Note by the aggregate
Note Principal Balances of all Notes of that Class. With respect to any
Certificate, the percentage as stated on the face thereof.

                  PERIODIC RATE CAP: With respect to any Mortgage Loan, the
maximum rate, if any, by which the Mortgage Rate on such Mortgage Loan can
adjust on any Adjustment Date, as stated in the related Mortgage Note or
Mortgage.

                  PERMITTED INVESTMENTS: Any one or more of the following
obligations or securities held in the name of the Indenture Trustee for the
benefit of the Noteholders:

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<PAGE>

                  (i) direct obligations of, and obligations the timely payment
of which are fully guaranteed by the United States of America or any agency or
instrumentality of the United States of America the obligations of which are
backed by the full faith and credit of the United States of America;

                  (ii) (a) demand or time deposits, federal funds or bankers'
acceptances issued by any depository institution or trust company incorporated
under the laws of the United States of America or any state thereof (including
the Indenture Trustee, Securities Administrator or the Master Servicer or its
Affiliates acting in its commercial banking capacity) and subject to supervision
and examination by federal and/or state banking authorities, provided that the
commercial paper and/or the short-term debt rating and/or the long-term
unsecured debt obligations of such depository institution or trust company at
the time of such investment or contractual commitment providing for such
investment have the Applicable Credit Rating or better from the Rating Agencies
and (b) any other demand or time deposit or certificate of deposit that is fully
insured by the Federal Deposit Insurance Corporation;

                  (iii) repurchase obligations with respect to (a) any security
described in clause (i) above or (b) any other security issued or guaranteed by
an agency or instrumentality of the United States of America, the obligations of
which are backed by the full faith and credit of the United States of America,
in either case entered into with a depository institution or trust company
(acting as principal) described in clause (ii)(a) above where the Securities
Administrator holds the security therefor;

                  (iv) securities bearing interest or sold at a discount issued
by any corporation (including the Indenture Trustee, Securities Administrator or
the Master Servicer or its Affiliates) incorporated under the laws of the United
States of America or any state thereof that have the Applicable Credit Rating or
better from the Rating Agencies at the time of such investment or contractual
commitment providing for such investment; provided, however, that securities
issued by any particular corporation will not be Permitted Investments to the
extent that investments therein will cause the then outstanding principal amount
of securities issued by such corporation and held as part of the Trust to exceed
10% of the aggregate Outstanding Principal Balances of all the Mortgage Loans
and Permitted Investments held as part of the Trust as determined by the Master
Servicer;

                  (v) commercial paper (including both non-interest-bearing
discount obligations and interest-bearing obligations payable on demand or on a
specified date not more than one year after the date of issuance thereof) having
the Applicable Credit Rating or better from the Rating Agencies at the time of
such investment;

                  (vi) a Reinvestment Agreement issued by any bank, insurance
company or other corporation or entity;

                  (vii) any other demand, money market or time deposit,
obligation, security or investment as may be acceptable to the Rating Agencies
as evidenced in writing by the Rating Agencies to the Securities Administrator;
and

                                       26

<PAGE>

                  (viii) any money market or common trust fund having the
Applicable Credit Rating or better from the Rating Agencies, including any such
fund for which the Securities Administrator or Master Servicer or any affiliate
of the Securities Administrator or Master Servicer acts as a manager or an
advisor; provided, however, that no instrument or security shall be a Permitted
Investment if such instrument or security evidences a right to receive only
interest payments with respect to the obligations underlying such instrument or
if such security provides for payment of both principal and interest with a
yield to maturity in excess of 120% of the yield to maturity at par or if such
instrument or security is purchased at a price greater than par as determined by
the Master Servicer.

                  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.

                  PLAN: Any employee benefit plan or certain other retirement
plans and arrangements, including individual retirement accounts and annuities,
Keogh plans and bank collective investment funds and insurance company general
or separate accounts in which such plans, accounts or arrangements are invested,
that are subject to ERISA or Section 4975 of the Code.

                  PLAN ASSETS: Assets of a Plan within the meaning of Department
of Labor regulation 29 C.F.R. ss. 2510.3-101.

                  PLEDGED AMOUNT: With respect to any Pledged Asset Loan, the
amount of money remitted to the related pledgor at the direction of or for the
benefit of the related Mortgagor.

                  PLEDGED ASSET LOAN: Any Mortgage Loan supported by Pledged
Assets or such other collateral, other than the related Mortgaged Property.

                  PLEDGED ASSETS: With respect to any Mortgage Loan, all money,
securities, security entitlements, accounts, general intangibles, instruments,
documents, certificates of deposit, commodities contracts and other investment
property and other property of whatever kind or description pledged by as
security in respect of any Realized Losses in connection with such Mortgage Loan
up to the Pledged Amount for such Mortgage Loan and any related collateral.

                  POOL BALANCE: With respect to any date of determination, the
aggregate of the Scheduled Principal Balances of all Mortgage Loans as of such
date.

                  PREPAYMENT INTEREST SHORTFALL: As to any Payment Date,
Interest Shortfalls, if any, of the type described in clauses (a) and (b) of the
definition thereof, for such Payment Date, net of Compensating Interest Payments
made with respect to such Payment Date.

                                       27

<PAGE>

                  PREPAYMENT PERIOD: With respect any Mortgage Loan and any
Payment Date, the calendar month immediately preceding the month in which such
payment occurs.

                  PRIMARY MORTGAGE INSURANCE POLICY: Any primary mortgage
guaranty insurance policy issued in connection with a Mortgage Loan which
provides compensation to a Mortgage Note holder in the event of default by the
obligor under such Mortgage Note or the related Security Instrument, if any, or
any replacement policy therefor through the related Accrual Period for such
Class relating to a Payment Date.

                  PRINCIPAL FUNDS: With respect to each Loan Group and any
Payment Date, (i) the sum, without duplication, of (a) all scheduled principal
collected during the related Due Period, (b) all Advances relating to principal
made on or before the Payment Account Deposit Date, (c) Principal Prepayments
exclusive of prepayment charges or penalties collected during the related
Prepayment Period, (d) the Scheduled Principal Balance of each Mortgage Loan in
the related Loan Group that was repurchased by the Seller pursuant to Sections
2.02 and 2.03 of the Grantor Trust Agreement and by the Investor pursuant to
Section 4.02 of the Wells Fargo Servicing Agreement, (e) the aggregate of all
Substitution Adjustment Amounts for the related Determination Date in connection
with the substitution of Mortgage Loans pursuant to Section 2.03(c), (f) all
Liquidation Proceeds, including the proceeds from the liquidation of Pledged
Assets for any Pledged Asset Loan, and Subsequent Recoveries collected during
the related Prepayment Period (to the extent such Liquidation Proceeds and
Subsequent Recoveries relate to principal), in each case to the extent remitted
by the Master Servicer to the Distribution Account pursuant to this Agreement
and (g) amounts in respect of principal paid by the Majority Certificateholder
pursuant to the Trust Agreement, minus (ii) all amounts required to be
reimbursed or paid pursuant to the Indenture or otherwise set forth in any Basic
Document, to the extent related to such Loan Group (or, if such reimbursement or
payment is not related to a Loan Group, then such Loan Group's pro rata share
(based on aggregate Scheduled Principal Balance) of such reimbursement or
payment), to the extent not reimbursed or paid from the related Interest Funds
for such Payment Date.

                  PRINCIPAL PREPAYMENT: Any payment (whether partial or full) or
other recovery of principal on a Mortgage Loan which is received in advance of
its scheduled Due Date to the extent that it is not accompanied by an amount as
to interest representing scheduled interest due on any date or dates in any
month or months subsequent to the month of prepayment, including Insurance
Proceeds and Repurchase Proceeds, but excluding the principal portion of Excess
Liquidation Proceeds.

                  PRIVATELY OFFERED NOTES: Any of the Class B-1, Class B-2,
Class B-3, Class B-4, Class B-5, Class B-6 and Class X-1 Notes.

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

                  PROSPECTUS: The Supplement to the Prospectus Supplement dated
March 15, the Prospectus Supplement, dated February 28, 2005, together with the
attached Prospectus, dated December 20, 2004.

                                       28

<PAGE>

                  PROTECTED ACCOUNT: An account established and maintained for
the benefit of Holders of the Grantor Trust Certificates by the Servicer with
respect to the Mortgage Loans and with respect to REO Property pursuant to the
Wells Fargo Servicing Agreement. The Protected Account shall be an Eligible
Account.

                  PUBLICLY OFFERED NOTES: Any of the Class A-1 Notes and Class
A-2 Notes.

                  PURCHASER: Structured Asset Mortgage Investments II Inc., a
Delaware corporation, and its successors and assigns.

                  QUALIFIED INSURER: Any insurance company duly qualified as
such under the laws of the state or states in which the related Mortgaged
Property or Mortgaged Properties is or are located, duly authorized and licensed
in such state or states to transact the type of insurance business in which it
is engaged and approved as an insurer by the Master Servicer, so long as the
claims paying ability of which is acceptable to the Rating Agencies for
mortgage-backed notes having the same rating as the Notes rated by the Rating
Agencies as of the Closing Date.

                  RATING AGENCY: Any nationally recognized statistical rating
organization, or its successor, that rated the Notes at the request of the
Depositor at the time of the initial issuance of the Notes. Initially, Standard
& Poor's and Moody's. If such organization or a successor is no longer in
existence, "Rating Agency" with respect to the Notes shall be such nationally
recognized statistical rating organization, or other comparable Person,
designated by the Depositor, notice of which designation shall be given to the
Indenture Trustee and Master Servicer. References herein to the highest short
term unsecured rating category of a Rating Agency shall mean A-1 or better in
the case of Standard & Poor's, P-1 in the case of Moody's and in the case of any
other Rating Agency shall mean such equivalent ratings. References herein to the
highest long-term rating category of a Rating Agency shall mean "AAA" in the
case of Standard & Poor's, "Aaa" in the case of Moody's and in the case of any
other Rating Agency, such equivalent rating.

                  REALIZED LOSS: Any (i) Bankruptcy Loss or (ii) as to any
Liquidated Mortgage Loan, (x) the Outstanding Principal Balance of such
Liquidated Mortgage Loan plus accrued and unpaid interest thereon at the
Mortgage Interest Rate through the last day of the month of such liquidation,
less (y) the related Excess Liquidation Proceeds with respect to such Mortgage
Loan and the related Mortgage Property.

                  RECORD DATE: With respect to any Class of Notes and the Trust
Certificate and any Payment Date, the close of business on the last Business Day
of the calendar month immediately preceding such Payment Date.

                  REFERENCE BANKS: Any leading banks engaged in transactions in
Eurodollar deposits in the international Eurocurrency market (i) with an
established place of business in London, (ii) whose quotations appear on the
Telerate Screen Page 3750 on the Interest Determination Date for the Class A-2
Notes and Class A-4 Notes in question, (iii) which have been designated as such
by the Securities Administrator and (iv) which are not Affiliates of the
Depositor or the Seller.

                                       29

<PAGE>

                  REGISTERED HOLDER: The Person in whose name a Note is
registered in the Note Register on the applicable Record Date.

                  RELATED DOCUMENTS: With respect to each Mortgage Loan, the
documents specified in Section 2.01(b)(i)-(vii) of the Grantor Trust Agreement
and any documents required to be added to such documents pursuant to the Grantor
Trust Agreement or the Mortgage Loan Purchase Agreement.

                  RELEASE: The Federal Reserve Board's statistical Release No.
H.15(519).

                  RELIEF ACT: Servicemembers Civil Relief Act.

                  RELIEF ACT MORTGAGE LOAN: Any Mortgage Loan as to which the
Scheduled Payment thereof has been reduced due to the application of the Relief
Act.

                  REO PROPERTY: A Mortgaged Property acquired in the name of the
Indenture Trustee, for the benefit of the Noteholders, by foreclosure or
deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan.

                  REPURCHASE PRICE: With respect to any Mortgage Loan (or any
property acquired with respect thereto) repurchased by the Seller pursuant to
the Mortgage Loan Purchase Agreement , Article II of the Grantor Trust Agreement
or Section 2.19 of the Servicing Agreement, an amount equal to the sum of (i)(a)
100% of the Outstanding Principal Balance of such Mortgage Loan as of the date
of repurchase (or if the related Mortgaged Property was acquired with respect
thereto, 100% of the Outstanding Principal Balance at the date of the
acquisition), plus (b) accrued but unpaid interest on the Outstanding Principal
Balance at the related Mortgage Interest Rate, through and including the last
day of the month of repurchase, plus (c) any unreimbursed Monthly Advances and
servicing advances payable to the Servicer or to the Master Servicer and (ii)
any costs and damages (if any) incurred by the Trust in connection with any
violation of such Mortgage Loan of any anti- predatory lending laws.

                  REPURCHASE PROCEEDS: the Repurchase Price in connection with
any repurchase of a Mortgage Loan by the Seller and any cash deposit in
connection with the substitution of a Mortgage Loan.

                  REQUEST FOR RELEASE: A request for release in the form
attached to the Custodial Agreement as Exhibit Four.

                  REQUIRED INSURANCE POLICY: With respect to any Mortgage Loan,
any insurance policy which is required to be maintained from time to time under
the Servicing Agreement with respect to such Mortgage Loan.

                  RESERVE INTEREST RATE: With respect to any Interest
Determination Date, the rate per annum that the Securities Administrator
determines to be either (i) the arithmetic mean (rounded upwards if necessary to
the nearest whole multiple of 0.0625%) of the one-year United States dollar
lending rates which New York City banks selected by the Securities Administrator
are quoting on

                                       30

<PAGE>

the relevant Interest Determination Date to the principal London offices of
leading banks in the London interbank market or (ii) in the event that the
Securities Administrator can determine no such arithmetic mean, the lowest
one-year United States dollar lending rate which New York City banks selected by
the Securities Administrator are quoting on such Interest Determination Date to
leading European banks.

                  RESPONSIBLE OFFICER: With respect to the Securities
Administrator, any officer of the Securities Administrator with direct
responsibility for the administration of the Indenture and also, with respect to
a particular matter, any other officer to whom such matter is referred because
of such officer's knowledge of and familiarity with the particular subject; and
with respect to the Indenture Trustee, any vice president, assistant vice
president, any assistant secretary, any assistant treasurer, any associate or
any other officer of the Indenture Trustee customarily performing functions
similar to those performed by any of the above designated officers who at such
time shall be officers to whom, with respect to a particular matter, such matter
is referred because of such officer's knowledge of and familiarity with the
particular subject or who shall have direct responsibility for the
administration of this Indenture.

                  SCHEDULED PAYMENT: With respect to any Mortgage Loan and any
month, the scheduled payment or payments of principal and interest due during
such month on such Mortgage Loan which either is payable by a Mortgagor in such
month under the related Mortgage Note or, in the case of REO Property, would
otherwise have been payable under the related Mortgage Note.

                  SCHEDULED PRINCIPAL: The principal portion of any Scheduled
Payment.

                  SCHEDULED PRINCIPAL BALANCE: With respect to any Mortgage Loan
and any Payment Date (1) the unpaid principal balance of such Mortgage Loan as
of the close of business on the related Due Date (taking account of the
principal payment to be made on such Due Date and irrespective of any
delinquency in its payment), as specified in the amortization schedule at the
time relating thereto (before any adjustment to such amortization schedule by
reason of any bankruptcy or similar proceeding occurring after the Cut-off Date
(other than a Deficient Valuation) or any moratorium or similar waiver or grace
period) less (2) any Principal Prepayments and the principal portion of any
Excess Liquidation Proceeds received during or prior to the immediately
preceding Prepayment Period; provided that the Scheduled Principal Balance of
any Liquidated Mortgage Loan is zero.

                  SECURITIES ACT: The Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder.

                  SECURITIES ADMINISTRATOR: Wells Fargo Bank, National
Association, or its successor in interest, or any successor securities
administrator.

                  SECURITY: Any of the Certificates or Notes.

                  SECURITYHOLDER or HOLDER: Any Noteholder or Certificateholder.

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                  SECURITY INSTRUMENT: A written instrument creating a valid
first lien on a Mortgaged Property securing a Mortgage Note, which may be any
applicable form of mortgage, deed of trust, deed to secure debt or security
deed, including any riders or addenda thereto.

                  SELLER: EMC Mortgage Corporation, and its successors and
assigns.

                  SERVICER: Wells Fargo Bank, National Association, and its
successors and assigns.

                  SERVICER REMITTANCE DATE: With respect to each Mortgage Loan,
the date set forth in the Wells Fargo Servicing Agreement.

                  SERVICING AGREEMENT: The Servicing Agreement, dated February
28, 2005, among the Depositor, the Master Servicer, the Securities Administrator
and the Grantor Trustee.

                  SERVICING FEE: The Servicer will be entitled to receive a fee
as compensation for its activities under the Wells Fargo Servicing Agreement
equal to the Servicing Fee Rate, multiplied by the Scheduled Principal Balance
of each Mortgage Loan as of the Due Date in the month preceding the month in
which such Payment Date occurs.

                  SERVICING FEE RATE: With respect to any Mortgage Loan, 0.25%
per annum.

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

                  STANDARD & POOR'S: Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., or its successor in interest.

                  STATUTORY TRUST STATUTE: Chapter 38 of Title 12 of the
Delaware Code, 12 DEL. Code ss.ss.3801 ET SEQ., as the same may be amended from
time to time.

                  SUBORDINATE NOTES: Any of the Class B-1, Class B-2, Class B-3,
Class X-1, Class B-4, Class B-5 and Class B-6 Notes.

                  SUBORDINATE OPTIMAL PRINCIPAL AMOUNT: As to any Payment Date,
an amount equal to the sum, without duplication, of the following for the
Mortgage Loans (but in no event greater than the aggregate Note Principal
Balance of the Class B Notes immediately prior to such Payment Date):

                  (1) the applicable Subordinate Percentage of the principal
portion of all Monthly Payments due on each Outstanding Mortgage Loan on the
related Due Date, as specified in the amortization schedule at the time
applicable thereto (after adjustment for previous Principal Prepayments but
before any adjustment to such amortization schedule by reason of any bankruptcy
or similar proceeding or any moratorium or similar waiver or grace period);

                                       32

<PAGE>

                  (2) the applicable Subordinate Prepayment Percentage of the
Scheduled Principal Balance of each Mortgage Loan that was the subject of a
Principal Prepayment in full during the related Prepayment Period;

                  (3) the applicable Subordinate Prepayment Percentage of all
partial prepayments of principal received during the applicable Prepayment
Period for each Mortgage Loan;

                  (4) the excess, if any, of (A) all Net Liquidation Proceeds
with respect to the Mortgage Loans allocable to principal received during the
related Prepayment Period in respect of each Liquidated Mortgage Loan over (B)
the sum of the amounts distributable pursuant to clause (4) of the definition of
Senior Optimal Principal Amount;

                  (5) the applicable Subordinate Prepayment Percentage of the
sum of (a) the Scheduled Principal Balance of each Mortgage Loan or related REO
Property which was repurchased with respect to such Payment Date and (b) the
excess, if any, of the Scheduled Principal Balance of a Mortgage Loan that has
been replaced with an Eligible Substitute Mortgage Loan pursuant to Section 2.04
of the Grantor Trust Agreement or the Mortgage Loan Purchase Agreement with
respect to such Payment Date over the Scheduled Principal Balance of such
Eligible Substitute Mortgage Loan; and

                  (6) on the Payment Date on which the Note Principal Balance of
the Class A Notes has all been reduced to zero, 100% of any applicable Senior
Optimal Principal Amount.

After the aggregate Note Principal Balance of the Class B Notes has been reduced
to zero, the Subordinate Optimal Principal Amount shall be zero.

                  SUBORDINATE PERCENTAGE: On any Payment Date, 100% minus the
related Senior Percentage. The initial Subordinate Percentage for each Loan
Group will be equal to approximately 2.55%.

                  SUBORDINATE PREPAYMENT PERCENTAGE: With respect to each Loan
Group as of any Payment Date, 100% minus the related Senior Prepayment
Percentage.

                  SUBORDINATE WRITEDOWN AMOUNT: With respect to the Subordinate
Notes, the amount by which (a) the sum of the Note Principal Balances of the
Class B Notes (after giving effect to the distribution of principal and the
allocation of applicable Realized Losses in reduction on a pro rata basis of the
Note Principal Balances of such Notes on such Payment Date) exceeds (b) the
aggregate Scheduled Principal Balances of the Mortgage Loans on the Due Date
related to such Payment Date.

                  SUBSTITUTE MORTGAGE LOAN: A mortgage loan tendered to the
Indenture Trustee pursuant to the Mortgage Loan Purchase Agreement or Section
2.04 of the Grantor Trust Agreement, as applicable, in each case, (i) which has
an Outstanding Principal Balance not greater nor materially less than the
Mortgage Loan for which it is to be substituted; (ii) which has a Mortgage
Interest Rate and Net Rate not less than, and not materially greater than, such
Mortgage Loan; (iii) which has a maturity date not materially earlier or later
than such Mortgage Loan and not later than the latest

                                       33

<PAGE>

maturity date of any Mortgage Loan; (iv) which is of the same property type and
occupancy type as such Mortgage Loan; (v) which has a Loan-to-Value Ratio not
greater than the Loan-to-Value Ratio of such Mortgage Loan; (vi) which is
current in payment of principal and interest as of the date of substitution;
(vii) as to which the payment terms do not vary in any material respect from the
payment terms of the Mortgage Loan for which it is to be substituted and (viii)
which has a Gross Margin and Maximum Lifetime Mortgage Rate no less than those
of such Mortgage Loan, has the same Index and interval between Interest
Adjustment Dates as such Mortgage Loan, and a Minimum Lifetime Mortgage Rate no
lower than that of such Mortgage Loan.

                  SUBORDINATE NOTE: Any of the Class B Notes or Class X-1 Notes.

                  SUBSEQUENT RECOVERIES: Any Liquidation Proceeds received by
the related Servicer after the final liquidation of a Mortgage Loan and remitted
by it to the Master Servicer.

                  TELERATE SCREEN PAGE 3750: The display designated as page 3750
on the Telerate Service (or such other page as may replace page 3750 on that
service for the purpose of displaying London interbank offered rates of major
banks).

                  TREASURY REGULATIONS: Regulations, including proposed or
temporary Regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

                  TRUST: The Bear Stearns ARM Trust 2005-2 to be created
pursuant to the Trust Agreement.

                  TRUST AGREEMENT: The Trust Agreement, dated as of February 24,
2005, as amended by the Amended and Restated Trust Agreement, dated as of
February 28, 2005, among the Owner Trustee, the Depositor and the Securities
Administrator, as Certificate Registrar and Certificate Paying Agent, relating
to the Trust.

                  TRUST ESTATE: The meaning specified in the Granting Clause of
the Indenture.

                  TRUST INDENTURE ACT OR TIA: The Trust Indenture Act of 1939,
as amended from time to time, as in effect on any relevant date.

                  UCC: The Uniform Commercial Code, as amended from time to
time, as in effect in any specified jurisdiction.

                  UNDERWRITER: Bear, Stearns & Co. Inc.

                  UNINSURED CAUSE: Any cause of damage to a Mortgaged Property
or related REO Property such that the complete restoration of such Mortgaged
Property or related REO Property is not fully reimbursable by the hazard
insurance policies required to be maintained pursuant to the Wells Fargo
Servicing Agreement, without regard to whether or not such policy is maintained.

                                       34

<PAGE>

                  WELLS FARGO SERVICING AGREEMENT: The Master Mortgage Loan
Purchase Agreement dated as of October 1, 2004, dated as of February 28, 2005,
between Structured Asset Mortgage Investments II. Inc. as depositor and Wells
Fargo Bank, N.A., as servicer, as modified by the Assignment Agreement.

                                       35

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